Kitsap Peninsula Business Journal 26/01

January 2013 Vol. 26 No. 1

The Voice of Kitsap Business since 1988

Workplace implications of legalized marijuana, page 30

New year, new management?

Port of Bremerton will decide soon whether to turn over management of the Bremerton Marina to a private operator

Using MRI body scans as a diagnostic tool, page 9

Inside Special Reports: Healthcare Quarterly, pp 8-15 Human Resources, pp 30-33 People, pg 2 Technology, pg 18 Real Estate, pg 23-25 Financial, pp 26, 27 Environment, pg 28 Automotive, pp 34, 35 Editorial, pp 36-38 Home Builders Newsletter, pp 19-22

By Tim Kelly, Editor The Port of Bremerton commissioners might soon select a private operator to take over management of the Bremerton Marina, because the controversial $34 million facility loses nearly $400,000 a year.

But would any businessman be able to turn things around financially if the port expects a new manager to operate the unprofitable marina the same way it's been run since it opened in 2008?

That's a question raised by some

interested parties who have reviewed the conditions in the port's Request for Proposals.

"It's a beautiful marina, it's very well built and well maintained. And that's a phenomenal boating area out there," said Kirby Scheimann of Texas-based Marinas International, who came to Bremerton for a Dec. 12 site visit the port arranged for parties interested in responding to the RFP. "But the RFP certainly has some challenges to it."

Cover Story, page 4

Short move, stylish changes for popular salon

By Rodika Tollefson Port Orchard’s Sugardaddy’s Salon completed its move in December to a roomy second-floor space at the corner of Bay Street and Sidney Avenue — but it wasn’t the usual move to a “bigger and better” location.

Sure, the salon is now all on one level, where at its previous Salon, page 4

Sugardaddy’s coowners James Harris (right) and Tim Waibel, along with general manager Lisa Chavez, were the creative minds behind the salon’s redesign in its new location.

Photo by Rodika Tollefson

AWOB to hear from entrepreneur with international business experience

2 • Kitsap Peninsula Business Journal • KPBJ.com January 2013

An international entrepreneur with local roots will be the keynote speaker at the January meeting of the Alliance of Women Owned Businesses (AWOB).

Tacoma native James Hansen has spent most of his adult life in Europe, where his career has included serving as vice-consul for the American Consulate General in

Italy, aide to the Assistant Secretary of State for European Affairs (U.S. Department of State), and foreign correspondent for The Daily Telegraph newspaper in London.

He is the CEO of Hansen Worldwide, a Milan, Italy-based consulting firm specializing in assisting companies in Italy and worldwide with planning and execution of international communications projects. In addition, Hansen represents the Wall Street Journal in Italy, and he owns and operates a news service for foreign correspondents based in Italy.

This busy entrepreneur will share his international business experiences, how the entrepreneurial world has changed and what we need to stay globally “connected” when he speaks at the AWOB meeting on Jan. 9 at the Inn at Gig Harbor.

AWOB’s monthly meetings feature a guest speaker on topics of interest to female entrepreneurs. The event is free to AWOB members and for first-time guests. The charge for all others is $25, payable at the door, and attendees can sign up to become members at the meeting.

Attendees also may bring a door prize to

get a spotlight moment to promote their business.

The business meeting starts at 5 p.m., and will be followed by AWOB Meet Me After Hours in the restaurant at the Inn at Gig Harbor, offering time for attendees to converse and continue networking in a casual setting.

For more information: www.allianceof womenownedbusinesses.com or www.facebook.com/allianceofwomenowned businesses.

Business partners open new cabinet-making company in Belfair Wayne Champion and Aaron Hughes have opened Champion Custom Cabinets, a full-service manufacturing company in Belfair.

Champion is the former owner of Champion Upholstery and Carpet Cleaning Corp. and Hughes is a secondgeneration cabinetmaker.

The company is owned by Hughes and will be co-managed with Champion. Hughes, a longtime resident of Belfair, is manager of operations and manufacturing.

Wayne "Our new cabinet Champion business follows a family tradition of building a quality relationship with our customers," Champion said. "We are focused on customer service and producing the highest quality cabinets."

The company recently installed a fully automated router table large enough to handle the largest cabinets in a variety of woods, laminates and metals. The new router makes it possible for the company to compete with larger cabinetmakers, both for residential and commercial customers, Champion said.

"We can cut all the materials for virtually any cabinets and either assemble them, or prepare them for shipping anywhere," he said.

The new company has the capability to fabricate and assemble residential and commercial cabinets, solid wood tables, architectural millwork, molding, LED lighting, display cabinets, and medical and dental cabinets. Production can work in aluminum, plexiglas, Corian and other fabrication, custom-made to order.

Champion can be reached at 360-2752872 or through the company’s website, ChampionCustomCabinets.com.

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Red Cross seeking nominations for local heroes

Nine Clearwater Casino employees completed the Tribal Enterprise Gaming Certificate program.

The American Red Cross serving King & Kitsap counties is looking for ordinary individuals who have performed extraordinary deeds. Do you know someone who used CPR to save a life, pulled a person from a burning building or raised money to help someone in need?

On May 9, 2013, the Red Cross will present awards to local heroes in Kitsap and North Mason counties who saved lives, exemplified the Red Cross mission or made significant, positive differences in their communities in the areas of emergency response, preparedness and prevention.

The nominee must be a resident of, or employed within Kitsap or North Mason counties, or the heroic act must have occurred in Kitsap or North Mason counties. The heroic act must be ongoing or have occurred between Dec. 1, 2011 and Dec. 31, 2012. Nominations are due by Jan. 7, 2013.

You can help the Red Cross recognize these extraordinary people by nominating a hero.

Information about the nominations and the form are available online at www.RedCross/org/WestSound.

Proceeds from the event will help benefit Red Cross programs and services in Kitsap and North Mason counties.

The American Red Cross operates the West Sound service center in Bremerton.

Casino employees complete Tribal Gaming Management Port Madison Enterprises (PME) recently honored nine new graduates of the Tribal Enterprise Gaming Certificate program in a ceremony held at the Suquamish Clearwater Casino Resort. The program, developed by PME in partnership with Olympic College, was launched in 2009 to provide Clearwater Casino employees with a comprehensive overview of tribal gaming operations and hone the skills necessary for career growth.

The graduates, all casino employees, comprise the second class to complete the program, bringing the current total number of graduates to 23.

The program is designed to give casino employees the opportunity to achieve their goals and to broaden their knowledge and understanding of the casino business beyond their current jobs.

“PME is always looking for ways to develop employee skill sets that are essential to the future growth of this company,” says human resources director Barbara Griffin. “This program allows casino employees to feel empowered and challenged to explore creative solutions and business ideas.”

The Tribal Enterprise Gaming Certificate program consists of six classes. Each class is taught by Olympic College instructors and takes place over a 10-week period at the PME Training and Resource Center.

Graduates receive a certificate in Tribal Gaming Management, as well as 15 college credits that can be applied toward other college programs.

PME covers the program tuition for its employees, as well as books and fees. In addition, employees are compensated for the three hours that they are in class each week.

Security business expands to larger office

New publicist joins Bainbridge Arts and Crafts Bainbridge Arts and Crafts has announced that Lindsay Latimore Masters will replace the group’s longtime publicist, Victoria Josslin, who is retiring after 10 years with the nonprofit.

Executive director Susan Jackson said Masters will take over the organization’s publications, marketing, grant writing and web-based communications.

Masters previously has worked as communications manager for the Bainbridge Island Arts & Humanities Council, and as a staff writer for the Bainbridge Review.

Bainbridge Arts and Crafts is a nonprofit organization founded in 1948 that encourages the creation and appreciation of fine contemporary art and craft by exhibiting and selling the work of Northwest artists, and by offering all-ages art education in Kitsap County. Its gallery is at 151 Winslow Way East.

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

Trio forms new coaching and consulting group Alyse McConnell of JoyWork Coaching & Consulting on Bainbridge Island is joining with Annie Fitzgerald and Judy Bloom to form ThinkWell Workplace Enrichment Coaching, a group of professional certified coaches dedicated to helping organizations foster a culture where motivation thrives and drives results.

ThinkWell offers leadership development training, through programs that focus on fun, well being, compassion, vision and action.

ThinkWell offices are located on Bainbridge Island, Mercer Island and in Ballard. The firm’s website is www.thinkwellwe.com.

Contact Theresa Mangrum; mangrum@kitsapeda.org

www.kitsapeda.org • 360-377-9499

January 2013 Kitsap Peninsula Business Journal • KPBJ.com 3

Rush Investigation & Security Services in Bremerton has expanded into a new larger office at 865 Sixth St., Suite 330.

Rush Investigation is a full-service private investigation and security guard company.

Rush Investigation, which opened in 2009, has grown to over 17 employees as its business has increased through providing security services with national contract companies.

Owner Augie Lujan is a graduate of the Washington CASH (Community Alliance for Self-Help) program.

The company can be reached at 360-286-8493 or email to info@rushsecurity.net.

15th ANNUAL

from page 1 The deadline for submitting proposals to the port was Dec. 28. Scheimann said Marinas International — which owns and/or operates 31 marinas across the country, including one on the West Coast in Emeryville, Calif. — had prepared a proposal, but executives at the company's headquarters in Dallas were still reviewing it. As of Dec. 26 they had not yet decided whether to approve it.

The person who prompted port commissioners to issue the RFP confirmed that he would submit a proposal, but Robert Wise also said developing a business plan that pencils out for the Bremerton Marina is "not an easy thing to do, based on the way (the RFP) was written."

The challenge for a potential private operator, he said, is "the port has written a document that basically says, 'run the marina the same way we've been running it, but make it successful.' That doesn’t make a lot of sense to us."

That was Jon Thompson's take on it as well, and the owner of the small Parfitt Way Marina on Bainbridge Island decided not to submit a proposal after reviewing the RFP. "I don’t get that there's enough left on the table for the private part of the publicprivate partnership to make any money," said Thompson, who's also involved with operating the Poulsbo Yacht Club's marina.

He was in Bremerton for the Dec. 12 site visit, along with Scheimann and three representatives from Wise's marine real estate management business.

"They're asking for the person that wins the RFP to take all their existing employees and their existing union contract," Thompson said. "Essentially you've got to absorb all the port’s expenses and then

4 • Kitsap Peninsula Business Journal • KPBJ.com January 2013

SALON

from page 1 location just around the corner it occupied two floors and a loft. But what really makes these new digs stand out is their design, which co-owners James Harris and Tim Waibel particularly take pride in.

“We were inspired by the Meatpacking District in New York,” Waibel said. “It’s the most sought-after district in New York. …

We really wanted that for Bay Street and I think it can be a linchpin for others. I think it really defines Port Orchard the way people have never seen.”

As the name implies, the Meatpacking

“The port has written a document that basically says, ‘run the marina the same way we’ve been running it, but make it successful.’ That doesn’t make a lot of sense to us.”

— Robert Wise to some Tim Kelly photo exceptions The Bremerton Marina was built in 2008 but has never come close to filling enough of its 300-plus moorage slips to requirements in the RFP. break even. The facility owned by the Port of Bremerton loses nearly $400,000 a year, but port commissioners will He didn't want to elaborate decide in January whether to contract with a private operator to manage the marina. on those exceptions before the port reviews all the responses to the RFP. operates the Port Hadlock Marina — take make it work as a private operator would."

"We think we've come up with some over running the Bremerton facility. Wise But for a private operator, "cutting creative ideas on how to respond, and how said he made the offer because he was expenses is as important an item as to get this thing to be a viable business concerned that commissioners might be increasing revenue." opportunity," Wise said. "If we're selected, considering closing the marina, which has He said the opportunity might have (the port commissioners) will make a an occupancy rate that averages around 30 been more attractive if the port was getting decision about whether those exceptions to 35 percent for its more than 300 out of the marina management business are acceptable to them." moorage slips. entirely, and if the RFP would have Port of Bremerton CEO Tim Thomson included taking over the other port-owned But his assessment was that the marina said the responses to the RFP will be marina in Port Orchard, which has a much needs significant changes in its marketing evaluated by a consultant, BST Associates higher occupancy rate than Bremerton. and its operations, and he said the RFP as of Kenmore. He also said that The decision by Port of Bremerton written would preclude making many commissioners might review the proposals commissioners to put out an RFP was changes to cut operating expenses. and the consultant's evaluation, and make a spurred by an unsolicited letter from Wise "We felt changes need be made in all decision as early as their next meeting on in October offering to have his company — phases," Wise said.

Jan. 8.

Marsh Andersen LLC, which owns and To do that, his proposal asks for

Open house Sugardaddy’s Salon will host a grand opening at its new location with live music, raffles and more starting at 6 p.m. on Feb. 9.

For more information, go to www.sugardaddyssalon.com.

District, located in Manhattan, was once the place for slaughterhouses as well as industrial warehouses. In the 1960s through the ’80s, the area fell into decline but later saw a resurgence, which transformed it from a seedy part of town

Coming Next Issue...

known for drug dealing and prostitution to a hip area described as New York’s most fashionable neighborhood. Now on the National Register of Historic Places, the Meatpacking District, aka MPD, is home to high-end boutiques, popular restaurants and other swanky businesses, and even some VIPs like Apple and Google.

What makes the MPD special to Harris and Waibel is one of its tenants, Bumble and bumble, a cutting-edge hair products company and salon. Sugardaddy’s switched last year from using L’Oréal products to Bumble and bumble, and is the only salon in West Sound that is dedicated to Bumble and bumble exclusively.

Following a trip by all Sugardaddy’s stylists to the Bumble and bumble University (nicknamed Bb. U) in October, the idea for the salon’s new look was born.

“We were looking for a challenge. The business required an expansion and we as owners and creative people wanted to sink our teeth into something,” Waibel said.

The new space seemed ideal for the Bb. model, thanks to its ample number of large windows. The Bb. headquarters/salon has double-height windows with sweeping views of the Hudson River and the city, and patrons sit in front of those windows instead of the customary salon mirrors. At

Salon, page 7

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January 16th

Three area Chambers of Commerce join to host Legislative Summit The Silverdale Chamber of Commerce, Port Orchard Chamber of Commerce and Bremerton Chamber of Commerce are hosting a Multi-Chamber Legislative Summit with newly elected officials on Jan. 8.

The session will be held from 6-7:30 p.m. at the Baymont Inn, 5640 Kitsap Way in Bremerton. The public is invited to attend.

From 6-6:30 there will be an opportunity to meet and mingle with chamber members, followed by a 45minute session when elected officials will address the group. The summit will conclude with closing remarks from chamber board presidents.

Anyone who would like to attend should RSVP to the Silverdale Chamber office at 360-692-6800.

Bremerton Chief Financial Officer Becky D. Swanson.

The GFOA is a nonprofit professional association serving approximately 17,500 government financial professionals.

Boxlight releases new add-on device to make projectors interactive Boxlight, the Belfair-based company that introduced embedded interactive projection technology to the market, is introducing the second- generation of its OutWrite products, the OutWrite2-.5 and the OutWrite2-1.4.

The OutWrite2 series are add-on devices that transform ordinary non-interactive projectors into interactive projectors. The device attaches to standard-throw and shortthrow projectors, and can turn any flat surface into an interactive surface.

The devices use embedded HID technology and feature built-in driver storage allowing interactivity in seconds.

With optional free LightPen3 dual-user annotation software, the OutWrite2 is now capable of multi-pen and provides splitscreen simultaneous multi-user functionality. With the multi-touch package downloaded from Microsoft, users will have all the “multi-touch” functionality included within Windows 7 and 8.

The OutWrite2 was developed for users who want interactivity, but have existing projectors, tight budgets, or specific projector requirements. The module can be mounted directly onto existing installed projectors (with the included swivel mount) or can be set on a table for portable applications.

The OutWrite2 retails for $499 and is currently shipping from Boxlight’s U.S. headquarters in Belfair.

Boxlight products and services are available online at www.boxlight.com or by calling 360.464.2119. To find a dealer in your area please contact a BOXLIGHT representative at 360.464.2119 or sales@boxlight.com.

Columbia Bank makes Forbes’ rankings of nation’s best banks

Port of Bremerton receives financial reporting award The Port of Bremerton has received the Certificate of Achievement for Excellence in Financial Reporting from the Government Finance Officers Association of the United States and Canada (GFOA) for its comprehensive annual financial report.

The Certificate of Achievement, which is the highest form of recognition in the area of governmental accounting and financial reporting, was reported to Port of

January 2013 Kitsap Peninsula Business Journal • KPBJ.com 5

Columbia Bank has been recognized as the best bank headquartered in Washington state on Forbes’ list of America’s Best and Worst Banks 2012.

Appearing on the list at No. 30, Columbia Bank moved up four rankings since its 2011 debut, and is ahead of major institutions such as JPMorgan Chase, Bank of America and Wells Fargo.

The list, ranking 100 of the largest publicly traded banks and thrifts in the country, also placed Tacoma-based Columbia Bank as the second-best headquartered in the Pacific Northwest. The news comes after the September announcement that Portlandbased West Coast Bank has agreed to merge with Columbia.

Criteria for the list was supplied by financial data provider SNL Financial.

Institutions were analyzed on eight metrics regarding asset quality, capital adequacy, and profitability. The data is based on regulatory filings of banks and thrifts through the third quarter of 2012.

Columbia Bank, owned by parent company Columbia Banking System, Inc., has 76 branches in Washington and 25 in Oregon. There are four Columbia Bank branches in Kitsap County, one in Silverdale, one in Poulsbo and two on Bainbridge Island.

Port Orchard's planning director resigns to take BI job James Weaver has resigned as Development Director and head of the Planning Department for the city of Port Orchard to take a position on Bainbridge Island.

Weaver, whose last day will be Jan. 2, was hired by former Mayor Lary Coppola in 2008.

He told the City Council at its Dec. 11 meeting that he would be leaving. James Weaver

“I was offered a position with the city of Bainbridge Island as a building official,” Weaver said. “It’s a great opportunity, and I’m very excited about it.”

He plans to take some time off before starting his new job Jan. 30.

Weaver, who previously was a senior planner in Kitsap County’s Department of Community Development, was part of a new management team that Coppola brought in to improve the city’s permitting process and business climate, and he expressed satisfaction with what he helped

achieve during his tenure in Port Orchard.

“I’ve been very happy with the work we’ve done here. It’s been a very successful five years, and I think we’ve accomplished a great deal,” Weaver said.

One of the most significant tasks he completed was overseeing completion of a state-required update to the city’s comprehensive plan, as well as working on the shoreline management plan and streamlining the process for issuing city permits.

“Really helping citizens accomplish

MADMAN Mad about real estate…

what they wanted do and helping business locate in Port Orchard, that was our goal and I think we accomplished it,” he said.

He noted that his five-year stint as Development Director is the longest of his career in one job, and said he’s enjoyed his relationships with citizens, his staff and elected officials.

But he said he’s looking forward to a new challenge on Bainbridge Island, which is closer to his home in North Kitsap County.

“I know they’ve been without a building official for some time, and I’m hoping to come in and be a positive addition to that team,” Weaver said.

Mayor Tim Matthes, in a statement issued Dec. 12 announcing Weaver’s resignation, said “Since James joined our staff in 2008, he has hired, trained, and motivated his staff to become top performers in their field.”

Weaver’s resignation marks the second departure of a city department head since Matthes became Port Orchard’s mayor in January of 2012. Former City Clerk Patti Kirkpatrick was fired about a month after Matthes took office.

Angel named to top post on House community development committee 70 FEET of low bank waterfront, pebble beach, fishing, crabbing, oysters. Private. Just a few minutes from Hwy. 16 Gig Harbor. Nearly 3/4 acre buildable lot. Great for vacation, getaway or home. $79,000

TOTAL VIDEO BUILDING 7750 sq. ft. commercial building on Kitsap Way. 2 miles from new WinCo Supermarket. $799,000

9 DOORS WAREHOUSE / Mini Storage. Property is adjacent to future Home Depot. Lots of potential.

Adjacent property also for sale to add more storage units. $399,000

PRICE REDUCED TO $200,000 12/27/12

SOL1D/12

6 • Kitsap Peninsula Business Journal • KPBJ.com January 2013

1 2/ 3 SALMONBERRY ROAD Port Orchard. Adjacent to Home Depot property. Zoned commercial in the City of Port Orchard. Excellent investment. $239,000.

(Adjacent property to 9 Door Warehouse)

VFW BUILDING for sale. Downtown Port Orchard. All kitchen equipment goes with the building. Own your own restaurant and bar. Upstairs 1 bedroom apartment.

Disabled access. Excellent potential. $395,000

QUARTER ACRE Great building lot across the street from Manchester Elementary School. $47,900

BEAUTIFUL historic building on corner of 4th & Pacific in Bremerton. 4 commercial spaces, 3 now rented. 33,000 sq. ft., 3 stories with full basement. Ready to be completed upstairs for condo or more office space. $1,800,000

40 ACRES Old Belfair Hwy. Potential for 4 10-acre lots, territorial view. Well, power, paved road. Great for equestrian community or motocross aficionados. One mile out of Belfair towards Kitsap. $399,000

I NG D N PE 24/12 12 / 2

100 FOOT of high bank waterfront on Wollochet Bay in Gig Harbor. Western view. Build your dream home.

Established upper end community. $290,000

PROPERTY+PETRO=$OLD Bryan Petro 360-621-7219 bryanpetro@hotmail.com 360-876-9600

COMMERCIAL • LAND • RESIDENTIAL

Rep. Jan Angel, R-Port Orchard, has been appointed as ranking Republican on the new Community Development, Housing and Tribal Affairs Committee in the state House of Representatives.

The committee considers issues relating to community development, veterans, parks and recreation, tourism, and government relationships between the state and Indian tribes. It also considers bills relating to accessibility and affordability of housing.

Angel said the committee fits well with her experience as a Jan Angel Realtor, past chair and board member of the Kitsap County Consolidated Housing Authority, past president of the Port Orchard Chamber of Commerce, and eight years of service as a Kitsap County commissioner.

The 26th District lawmaker also was named to the Health Care and Wellness Committee, which considers legislation related to health care, health insurance, pharmaceutical drugs and licensing of health care facilities.

In addition, Angel will remain on the Transportation Committee. An important part of her focus there will be the struggling state ferry system, she said.

Angel can be reached through her district office in Port Orchard at (360) 4432409. During the legislative session, she maintains an office in Olympia. That phone number is (360) 786-7964.

The 2013 legislative session begins Jan. 14 and is scheduled for 105 days.

SALON

Harris said Bb. sought Sugardaddy’s out and the company’s focus on education was especially enticing. Bumble and bumble even made an exception for the Sugardaddy’s staff — their university classes are booked a year in advance, Harris said, but when they explained they wanted to do their training before moving to the new space, special class accommodations were made for the Port Orchard crew. And Harris got the opportunity to meet with every department head and the company president to “grill them for advice.”

“Bumble and bumble moved mountains for us,” Harris said.

While the pair say they have given their hearts and souls to Port Orchard, they are

also looking ahead. One dream is to open a second salon in London (Harris’ family hails from Scotland and England). For now, they opted to invest in their new Port Orchard salon instead, but have not discounted the idea completely — contingent in part, Waibel notes, on banks making loans again to small businesses.

Having a salon in London would be a major advantage, Harris said, because fashion takes root there about a year before it comes to the United States.

The two partners are pleased with the way their vision has come to life.

“People said it can’t be done and I say, how dare you shortchange Port Orchard,” Harris said. “This new place is like a rebirth.”

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from page 4 Sugardaddy’s, the styling chairs are now set up by the windows as well, and Waibel came up with a sliding-mirror system that allows the clients to use the mirrors during the consultation portion, then enjoy the window after that (but those who prefer the mirror look can keep it during the haircut).

Another feature modeled after Bb is the hair-coloring process. Previously, it was all done at individual stations. Now, after the consult at a station, customers get comfortable with a magazine (and cup of coffee or tea, perhaps) at one of two communal tables (which will soon be replaced by one, rectangular table) for the coloring itself.

It took only five weeks to complete the remodel, including permits. Walls were knocked down to turn five rooms into one open space; the ceiling was stripped down to the original shell, undoing several rounds of previous remodels; and bamboo flooring was added that is not only environmentally friendly but also does away with the need for mats for the stylists.

The color palette of the salon has changed as well, but more colors are still to be added, including fuchsia.

“Even though we turned a new leaf and created a new look, I don’t think we can lose that signature fuchsia,” said Waibel, who was the project manager for the remodel. He said it took the proverbial village to make it happen — from Kitsap Bank and Pristine Homes to Cascade Electric and flooring contractor Eric Marvin.

“One of the main things was to get all the professionals to believe in the flaws (of the space),” Waibel said. “The professionals were even impressed by what we bit off, and we wouldn’t have been able to do it without them.”

This is the third downtown location for Sugardaddy’s, which is seven years old.

Harris, a South Kitsap High School grad, started out as a two-person operation and Waibel, a North Kitsap High grad, joined the business shortly after. Harris’s background includes working for Gene Juarez in Seattle and owning another salon in Port Orchard, while Waibel has owned several restaurants and a catering company. Sugardaddy’s now has five stylists in addition to Harris. There are also two apprentices and an esthetician.

More than a year ago, Sugardaddy’s began the process of switching from a leasing salon to one that employs commissionbased stylists. Harris said they followed the advice they received in a L’Oréal business class, and the commission model gives the team more cohesiveness and continuity in making decisions. It also keeps the owners on their toes, he says, and helps the business grow.

“As the owner of the leasing salon, you tap yourself out in terms of revenue so a lot of owners are not as motivated to do marketing,” he said.

He notes the leasing model is almost unheard of on the East Coast, and not very common in urban areas on the West Coast either. They gave their stylists more than a

year to make the transition, and several chose to stay on and embrace the new model.

“We have an incredible group of people working for us and we gave them time to make the adjustment. I’m proud of the way our staff has followed us and jumped on board,” Waibel said. “We were honest and upfront with them.”

The switch to Bumble and bumble was another major move for Sugardaddy’s, especially considering the salon was in the top five for L’Oréal sales in the state. But they seem to be on pace to do the same with Bb. products, having doubled their estimated market share within the first month.

8 • Kitsap Peninsula Business Journal • KPBJ.com January 2013

Peninsula Breast Center launches fitness program for survivors

By Rodika Tollefson When Diane Digleria began radiotherapy treatment for breast cancer last year, she was ready to get back into an exercise routine. She had just finished four cycles of chemotherapy following a lumpectomy.

“Chemo drags you down a bit. Once I hit radiation, I wanted to get moving and get stronger,” she said.

The perfect opportunity presented itself in the form of Survive & Thrive, a pilot program launched last June by Peninsula Breast Center in Poulsbo, where Digleria was a patient.

Designed for breast cancer survivors who finished their treatment or were in the final stages, the 12-week program brought together a dozen women with the goal of increasing strength and energy, improving emotional and physical well-being, losing weight and receiving peer support.

Enrollment included memberships to Poulsbo Athletic Club and Kitsap CrossFit for the duration of the program. The group met for weekly workouts, Saturday walks and several workshop-style group sessions.

“It was an amazing experience. I committed 100 percent to it,” Digleria said. “I treated it like my boot camp.”

Digleria set her goal to work out six times a week, using exercise instead of taking the drug taximofen. “I heard exercise in some cases has similar outcomes. So I treated (the workouts) as my daily medicine. It was my motivator to work out,” she said.

The idea for Survive & Thrive was born after Digleria’s surgeon, Dr. Sheila Lalley, and Dr. Berit Madsen, co-founders of Peninsula Breast Center, attended a conference where evidence was presented on how exercise and weight loss significantly decrease the risk of reoccurring breast cancer. Women are also more open to making lifestyle changes after cancer treatment, Lalley said, and it felt important to give them the tools, knowledge and skills that would help them make those changes.

“In my mind, exercising by yourself is fine but it’s more fun with a friend,” Lalley said.

“Why not build that community? The women in the group had a lot of different ideas and skill sets and it was very empowering to be around each other.”

Following the success of last year’s pilot, Peninsula Breast Center is starting a new Survive & Thrive session in January. The goal is to have three sessions per year, and the program’s board — comprised of all volunteers — hopes to add a program for “graduates.” The board includes Madsen and Lalley, among other health care professionals, owners of the two health clubs and others. Digleria, also on the board, is coordinating the project.

The program is open to all breast cancer survivors, and a small monthly charge helps offset gym membership fees and

• For more information about the Survive & Thrive session, which begins Jan. 7, call nurse practitioner Ann Asher at (360) 697-8000 or go to www.peninsulabreastcenter.com. The center is accepting donations for Survive & Thrive scholarships for women who cannot afford to pay. administrative costs. Kitsap Cancer Alliance provided a grant for the pilot and is offering scholarships for new participants who cannot afford to pay the fee (scholarships are also available through Soroptimists.) Kitsap CrossFit and Poulsbo Athletic Club are contributing financially by providing the memberships at reduced cost, and the owners of both clubs are part of the board.

In addition to the focus on fitness, the new session will have more emphasis on nutrition.

Ideas include activities such as cooking classes and field trips to Central Market, located across the highway. The Saturday walks are on hold due to the weather but organizers plan to resume them — both for program participants and alumni — once the weather

improves in the spring.

“We hope to design and build a solid program and eventually spawn it to other areas,” Lalley said, “but it all depends on funding.”

Lalley hopes to see the survivor community continue to thrive beyond the program, giving Courtesy photo alumni opportunities Participants in the Survive & Thrive pilot program during one of the weekly to stay involved by sessions at Kitsap CrossFit, doing workouts designed for the women’s group. mentoring new enrollees and participating in special events. thanks to the Survive & Thrive head start, she Digleria says that connection with other was able to condition her body for handling women in similar situations has been an more challenging workouts. She is looking important part of Survive & Thrive. Digleria, forward to a reunion that’s being planned for who had been physically active in the past but the pilot program graduates. stopped due to other health issues before her “It was like my cancer support group. We cancer treatment, has been able to stick to her all wanted to be strong and healthy, and it was six-days-a-week workout commitment. She nice to be around women like that,” she said. now alternates between the two gyms and her “We hope to keep the positive changes and home gym set up in the garage, and says the momentum going.”

Thermal scans touted, doubted for early cancer detection

By Tim Kelly, Editor A thermal body scan produces colorful digital images showing heat patterns on or near the surface of a patient’s body. It’s sometimes offered at chiropractor’s offices, and is marketed as a safe, non-invasive screening that can be a key component in a preventive health care approach.

However, claims of early detection of breast cancer and other conditions draw skeptical reactions from doctors, radiologists and establishment medical organizations.

The only provider of the thermal imaging procedure on the Kitsap Peninsula — and possibly in the entire Puget Sound area — is Thermal Body Scan Northwest in Poulsbo.

“Scanning is a clinical diagnostic tool that I feel very comfortable using,” said Nicole Schluter, who recently took over the business, which operates in a rented office at the Acupuncture and Wellness Center on Eighth Avenue.

Schluter, who said she is both the scan clinician and office manager, is organizing a marketing approach to spread the word about Thermal Body Scan Northwest, which was opened about two years ago.

“Trying to get the technology out to the general public is probably the most daunting task right now,” she said. “I want to give (people) the opportunity to come in and see what I do.”

It also will be a challenge to counter dubious assessments of the benefits of a thermal body scan.

The Poulsbo business has promotional

brochures touting the procedure’s capability for early detection of breast cancer, especially Chart outside inflammatory breast cancer the Thermal in which no lumps are Body Scans Northwest formed that could be office lists detected in a self-exam or potential mammogram. The thermal benefits images show “blood flow of the scans. patterns, inflammation and asymmetries, which can assess pain and pathology anywhere in the body.”

Those could be indicators not just of cancer, but also arthritis, heart disease, stroke, diabetes, dental issues such as TMJD (temporomandibular joint disorder), sinus issues and headaches, immune dysfunction, carpal tunnel syndrome and digestive disorders, according to the brochure.

When a patient has a thermal scan, the images are sent to an out-of-state medical imaging center for review by a doctor. The patient is sent a report with the results.

On the American Cancer Society website, an article about newer and experimental breast imaging methods notes: “Thermography has been around for many years, and some scientists are still trying to improve the technology to use it in breast imaging. But no study has yet shown that it is an effective screening tool for finding breast cancer early. It should not be used as a substitute for mammograms.

“Newer versions of this test are better able

to find very small temperature differences.

They may prove to be more accurate than older versions, and are now being studied to find out if they might be useful in finding cancer.”

The federal Food and Drug Administration, which regulates medical devices, has sent warning letters to practitioners found to be marketing thermographic devices for non-approved uses.

The FDA sent out a safety communication in 2011 alerting women and health care providers about “misleading claims about thermography,” cautioning that a thermal scan "is not a replacement for screening mammography and should not be used by itself to diagnose breast cancer. The FDA is not aware of any valid scientific data to show that thermographic devices, when used on their own, are an effective screening tool for any Thermal, page 11

Body scan using MRI — helpful diagnostic tool or TMI? determining which findings are insignificant and which indicate a health threat.

“Frequently doctors will bring that up, that it’s not a good idea because we find things that might not be significant,” he said.

“That’s all true if we don’t treat the results of the exam with caution. With every physical exam or imaging exam you run into those issues: Is it something serious or not?”

He said for the scan to be beneficial requires a “responsible reading” of the results.

The MRI Plus takes about an hour, and afterward either Henne or another certified radiologist at the clinic discusses any significant findings with the patient. The images are also provided to the patient’s primary care physician, and InHealth’s marketing encourages use of the screening “as a complement to routine physician visits.”

Still, medical experts like Dr. Peter Libby caution that it’s imperative to weigh possible preventive benefits against the risk to patients of harmful complications from unneeded surgeries that could be prompted by scan results.

Libby, chief of cardiovascular medicine at the Brigham and Women’s Hospital in Boston, wrote about Kristof’s experience in an article in the New York Times that concluded, “While contemporary imaging modalities offer powerful and much needed tools for diagnosis and management when appropriately deployed, we should bear in mind the potential risks they entail if used indiscriminately.”

That’s why Dr. Michael Cook, a radiologist for more than 20 years at Advanced Medical Imaging in Silverdale, doesn’t recommend using MRI for a total body scan. Instead, AMI doctors use MRI for targeted evaluations of specific body areas that display symptoms.

“It’s probably evenly split between brains, spines and joints, and a few abdomens and pelvises,” he said.

Cook noted that an imaging clinic might get more use out of its expensive MRI machines by offering body scans as a preventive screening, but he added that many medical professionals “who have no financial incentive” have said such procedures offer minimal benefit.

“You find things that may have been there forever … and not cause the patient any harm,” he said. “You’re finding things that will never cause the patient a problem, yet you’ve uncovered it and now you have to deal with it.”

While Cook acknowledged there can be some value in giving a patient peace of mind if a body scan finds no abnormalities indicating disease, he added that the flip side is that when the screening does find something, it can make a patient very anxious.

“And the potential harm is if you had to have an invasive procedure… that the patient may never have needed in their lifetime.”

Henne maintains there’s little risk of that for his patients because of the careful analysis he provides them when reviewing images from their MRI Plus screening.

“That’s where the responsible reading comes in,” he said. “It’s not just patients being run through the mill here.

“We can tell them that something is a minor finding and does not require significant treatment.”

At the same time, “we are gaining significantly by finding diseases” before symptoms appear, when interventions or early treatment can be effective, he said.

He said the MRI Plus could be recommended for anyone, Dr. Manfred and may be particularly suitable Henne looks at images for people with high risk factors, such as smokers or anyone with from an MRI scan at his a family history of cancer. clinic.

“It’s a personal choice, if somebody wants to know Tim Kelly photo what’s going on in their body,” Henne said.

The German-born radiologist — who was profiled in the April 2011 Kitsap Peninsula Business Journal for his use of a cutting-edge test for thyroid cancer — said his decision to offer the MRI Plus had its roots in his own recovery from cancer two decades ago.

“I tossed this idea around a long time,” he said. “I had lymphoma in 1990, and I was monitoring myself by MRI.” He eventually developed a procedure that scans multiple organ systems in a reasonable time, making it easier for people to avail themselves of the screening.

“I have been doing this on myself for years, so why not offer it to the public?”

Henne said.

Tami Bloom, marketing director at InHealth Imaging, said the clinic has promoted the MRI Plus to area physicians

and has a commercial running on some cable television channels.

“We’re seeing more and more (patients) every month,” she said.

Even though health insurance doesn’t cover the cost, the clinic advertises that MRI Plus is an eligible expense for patients who have a Health Savings Account or a Flex Spending Account.

Henne doesn’t expect the MRI Plus will become a big part of his business, but he said some doctors have come in for the procedure and “they were very impressed with the potential of the exam.”

But Cook, the AMI radiologist, said he doubts many physicians will embrace the body scan approach.

“My experience with local practitioners is they’re pretty skeptical,” he said. “They want to make sure it’s right for their patients before they recommend it.”

January 2013 Kitsap Peninsula Business Journal • KPBJ.com 9

By Tim Kelly, Editor Should you be worried if a medical imaging scan of your vital organs reveals an “incidentaloma”?

That dreaded “oma” suffix is associated with cancer, but this is a term for the incidental discovery of something — a mass, tumor or lesion — in a scan done for another purpose.

A notable case a couple years ago involved New York Times columnist Nicholas Kristof, who had a CT scan for an unrelated medical reason and a tumor was found on his kidney.

Although doctors thought it highly likely the growth was malignant and he underwent surgery to remove the inchlong tumor, it turned out to be benign.

Kristof’s experience is at the heart of a critical issue around increased use of medical imaging scans. The discovery of an incidentaloma might prove to be a lifesaver if cancer or other diseases are detected at an early, treatable stage; but it also can lead to unnecessary surgery or other risky and expensive procedures.

Dr. Manfred Henne, who operates a radiology clinic in Poulsbo, is a proponent of using magnetic resonance imaging (MRI) as a diagnostic tool, because it provides a highly detailed assessment of a person’s internal organs and arteries without the radiation exposure of a CT (computerized tomography) scan.

Henne’s clinic, InHealth Imaging, recently has been marketing an “MRI Plus” exam that scans multiple organ systems. The screening, which is not covered by health insurance but is being offered at an introductory rate of $896, is pitched as a way to give people who have no outward symptoms a deeper assurance of their health.

InHealth Imaging recently sent out a marketing e-mail headlined “Thinking you’re healthy is one thing. Knowing is peace of mind.”

Henne believes the comprehensive MRI Plus is an obvious fit with an increasing emphasis on preventive health care.

“The basic approach was, we have all this fancy equipment, and typically we just use it for sick people,” he explained during a recent interview on his lunch break at the clinic, as he ate apple and grapefruit sections in between responses to his buzzing phone. “MRI was not being used for any analysis, or any prevention at all.”

The scan can potentially detect anything from an aneurysm in the brain, to a centimeter-size lesion in the ovary that could be the origin of a “sneaky” form of cancer, or a renal cell carcinoma, which is a type of kidney cancer “that doesn’t create any symptoms until it’s really large,” Henne said.

The procedure is a safe, non-invasive survey of the body using MRI to scan the brain, chest, abdomen, pelvis, spine, intracranial arteries and aorta, along with an ultrasound check of the carotid artery in the neck, the lower-extremity arteries in the ankles, and the thyroid.

As for skeptics who say such a scan is more likely to find abnormalities that are harmless but could subject a patient to further unneeded evaluations and treatment, Henne counters that an important part of the service he provides is

Diehard outdoor enthusiasts keep up fitness workouts, rain or shine he habitually stops to take photos of scenery — and regularly takes calls on his mobile phone (he conducted his interview by phone while riding a loop around Gig Harbor).

Although Turner has always maintained a membership at a fitness club, he uses it mostly in the winter. But generally, he just puts more layers on and heads out.

For beginners, Turner recommends riding in groups. He still likes doing that himself because he finds it beneficial to ride with people who are both above and below his skill level — which gives him the opportunity both to be challenged and help beginners.

“If you want to push yourself, you can do that in a group,” he says.

Being in a group can also be motivating, says Pam Holt, who currently runs with three different groups in Gig Harbor, including a class that is training for a 25k race. She meets with two different classes every week and also participates in a weekly women’s trail-running group, all under the direction of running coach Alexa Martin.

“Having the class motivates me to get out,” Holt says.

Just a little over a year ago, Holt was

LIFE’S MOST IMPORTANT SOUNDS SHOULD ALWAYS BE CLEAR.

mostly doing kickboxing, supplementing the gym with outdoor running once or twice a week. When she tried out one of Martin’s eventtraining classes, she realized if she were to run a race the way she wanted to, she would have to step up her commitment.

“It was an experiment because I was leaving the Photo by Rodika Tollefson safety net of the gym,” she says. “I was scared to do it Running coach Alexa Martin (foreground) leads a running class in but I’m very happy I did it. I a warmup during one of their weekly training sessions in December. doesn’t work out, you can always go to the have no regrets about the leap.” gym.”

Making the leap has saved her time and Lisa Ballou, coach and founder of Kitsap money because Holt was driving to TriBabes and co-owner of Expansions Yoga Tacoma for her gym. Now she only makes in Silverdale, says extending the outdoors the drive for yoga classes, while running — activity season in the Pacific Northwest is three days with a group and typically a all about the right gear. Ballou, who lives in fourth day by herself or with a friend — has Seabeck, uses triathlon training — become her main cardio activity. swimming, bicycling and walking/running The biggest change during cold — as her main form of exercise, and she weather, Holt says, was thinking about her does it mostly outdoors year-round. She’ll layering system and adding gear such as even swim outdoors in temperatures as low gloves and ear warmers. And since she’s as 60 degrees — with the proper wetsuit, of ramped up her runs for the past year, she course. has learned to go out in just about any Besides having proper gear, including weather. headlamps when it’s dark, Ballou says it’s “I’ve ran in snow and in very heavy rain,” important to understand that nutrition and she says. “The heavy rain wasn’t pleasant hydration are different in cold weather. but I became one with the mud and moved “You expend more calories in the cold through it.” because it takes X amount to do the Holt says that for anyone who wants to exercise and Y amount of calories to stay take the leap to year-round outdoor warm, so you have to adjust your nutrition running, this is a great area for it. to compensate for the cold,” she says. “In “It’s very freeing to know that in our the summertime, it’s also easy to realize community, we have these wonderful trails. you’re sweating and feeling thirsty. In the It’s like having an outdoor gym available all the time, and it’s free,” she says. “And if it Fitness, page 12

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10 • Kitsap Peninsula Business Journal • KPBJ.com January 2013

By Rodika Tollefson When the wet and cold weather descends on Puget Sound, the sightings of runners or bicyclists on local roads taper off. But for some outdoor enthusiasts, working out outdoors in the winter is part of the fun challenge — no matter how miserable the weather feels to the rest of us.

“If I get caught in a downpour, I zip up and get ready for it. I anticipate getting wet —downpours happen all the time,” says Scott Turner, a Gig Harbor resident whose main fitness activity is bicycling outdoors.

He says he missed only 25 days this past year, and typically he tried to hop on his road bike every day, riding for two to four hours at a time.

Turner switched to a road bike about 12 years ago after riding a mountain bike became too logistically tiring. He’s also taught group cycling classes at local clubs and, up until about five years ago, did several triathlons.

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Quick shaking sessions can aid in fitness Whole-body vibration machines a new twist at local storage business can derive similar benefits from using the vibration machines.

Research has shown that the vibrations sent through the body stimulate rapid contraction and relaxation of muscles, which can increase muscle strength and bone density, and improve circulation. Other claims such as weight loss through intensified fat burning are less substantiated.

Dr. Edward R. Laskowski, a Mayo Clinic physical medicine and rehabilitation specialist, wrote in an article on the clinic’s website that “Whole body vibration can offer some fitness and health benefits, but it's not clear if it's as good for you as regular exercise.”

As for shedding some pounds, Laskowski wrote “it may help with weight loss when you also cut back on calories.”

Bair said they haven’t done much promotion since adding the vibration machines last summer, relying on word-ofmouth to generate interest. They plan to hold an open house Jan. 10 from 5:30-8 p.m. to invite people who might like to shake things up.

After New Year’s seems like a good opportunity to appeal to fitness-minded people.

“That’s prime time, everybody’s got New Year’s resolutions,” Bair said. “We need to turn (our marketing) up a notch.”

The business offers two free vibration sessions to anyone who wants to try the machines, and unlimited use is available for $39 a month.

“We have quite a few regular customers come in,” office manager LeAnn Williams said, “usually on their lunch break, or when they’re going to or from work.”

The Bairs, who opened Kitsap Lake Storage six y ears ago, have owned other businesses in Bremerton over the years, including two Baskin Robbins ice cream stores, an Ivar’s seafood bar, and most notably a uniquely branded clothing store in

THERMAL

diagnostic use of them.”

But Schluter maintains the procedure is another option for people who want to know all they can about their health.

“Do I think there’s value in it? I do,” she said. “It’s about information, like any diagnostic tool is.

“This is an opportunity to indicate more often, in a different way, what might be going on inside your body.”

The cost of a thermal scan — which is not covered by health insurance — ranges from $159 to $379, Schluter said, depending on whether it’s done on a specific area such as the chest or if it’s a full body scan. She didn’t know if the scans are eligible expenses that can be paid for with a patient’s health savings account or Flex Spending account.

Schluter had a booth at Olympic College’s health and wellness fair in December to get some exposure for Thermal Body Scan NW, and said she’s exploring the possibilities for taking her service to health clinics around the area.

“Women’s health in particular is a field I’m very interested in,” she said.

from page 8 medical condition including the early detection of breast cancer or other breast disease.”

Schluter, who said she has some background in Western medicine and previously worked with a Poulsbo-based veterinarian, said a thermal scan can be a helpful screening to detect signs of cancer, but it cannot diagnose the disease.

“The only way you can diagnose cancer is a biopsy,” she said.

“I think used in conjunction with other tools is where thermography can be beneficial,” she added. “Nobody would use only one diagnostic tool anyway.”

The reason for skepticism about diagnostic use of thermal scans is “the sensitivity and specificity (of the screening) are pretty poor,” said Dr. Michael Cook, a radiologist at Advanced Medical Imaging in Silverdale.

“They’re not very highly regarded in the radiology community,” Cook said of thermal scans. “I’m not familiar with any legitimate

the 1980s.

Sweatshirts from that store, Charly B, in bright colors with the name in distinctive calligraphy across the front, were phenomenally popular, especially with young people back in the day.

The two Charly B stores downtown and in East Bremerton, like numerous shops, didn’t survive the retail migration to the Kitsap Mall when it opened in Silverdale.

But the brand lives on, as the Bairs have shelves filled with Charly B hoodies on a wall next to the vibration fitness machines.

“We get a lot of 40-year-olds now buying them for class reunions or for gifts,” Bair said.

“It brings tears to my eyes to hear stories about how they treasure those sweatshirts.”

Tim Kelly photo

Kitsap Lake Storage offers two Proellixe vibration fitness machines for customers to use.

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January 2013 Kitsap Peninsula Business Journal • KPBJ.com 11

By Tim Kelly, Editor There’s a different vibe at Kitsap Lake Storage and U-Haul center in Bremerton, and it’s not just because you walk into a space that looks more like a stylish retail site than a typically drab truck rental office.

It’s literally a vibration.

Owners Chuck and Patty Bair recently added a new element to their business at 6400 Kitsap Way, clearing out a storage area to install two Proellixe whole-body vibration machines. They are touted as providing a 10minute, sweat-free session that can give users the equivalent fitness benefits of an hour or more of exercise or conditioning workouts at a gym.

While he agreed that it’s a bit unusual to find fitness machines in a business that rents trucks and storage units, Chuck Bair said they like offering something different.

“Storage is our main business, but we like to have some fun, too,” he said. “We’re not the same old boring storage place.”

Folks who use the vibration machines just remove shoes and socks and step on the metal plate that has lines and numbers for aligning the feet when the shaking starts.

There is a recommended progression of 10 specialized programs ranging from six to 10 minutes, and the speed and intensity of vibration change at two-minute intervals.

“It’s a remarkable machine,” Bair said.

“We’ve got quite a few clients, mostly la dies; they really love it.”

Whole body vibration fitness actually has a long history, as far back as a Michigan doctor’s use of vibrating chairs and platforms in the late 1800s. In more recent decades, it was used for training athletes in the former Soviet Union, and NASA and other countries’ space agencies have experimented with it to counter muscle atrophy and bone loss in astronauts during long space fli ghts.

Folks stopping by Kitsap Lake Storage may not have the same fitness concerns as cosmonauts or Olympic sprinters, but they

Keeping fit in the off season

12 • Kitsap Peninsula Business Journal • KPBJ.com January 2013

By Bill Hoke My mountain climbing partner waits for the beginning of Lent and then he goes on a sugar-free diet, counts his calories, heads to the gym and by early summer he has cut 20 or 30 pounds and declares himself fit to climb.

Despite our age difference — he is 10 years younger — he shows up each summer and complains that I go too fast and I note that even with all his exercise and dieting, he still carries too much weight.

I have to wonder how these annual crash diets are affecting his body.

Maybe I am genetically lucky and don’t have to count calories, but I have a different approach to seasonal exercise and that is, I try to keep in good shape all the time. I never know when someone might call to invite me to climb Mt. Ellinor — or something bigger — or I might see enough sunshine to want to go for a long, multi-day fast hike.

So my goal is to stay in good shape and

avoid crash diets, too-intense workouts or too much time in a crowded gym. I've found that as good and constructive as it might be to be a gym rat, that I can maintain good cardio and have the needed endurance to hike or climb for two or three days — long intense days — simply by lacing up my boots and going for long, hard walks, looking for steep hills to climb and trying to maintain as close to three miles an hour as I can — 15-minute miles.

At least one day a week I dial up my Walkmeter app in my iPhone and hit the streets to do a minimum of six miles — 90 minutes with stops only long enough to keep hydrated. I've also discovered some nearby logging roads in clearcuts, some with magic mountain views, and on my walks I seldom see anyone else.

I never have to wait for a turn on an exercise device or worry about getting in the way of someone jogging when I am only walking.

I can speed up to do a few 13-minute miles, stop when I want for an apple or orange, enjoy the solitude and not hear anyone complaining about my fast pace.

This year I am adding some small handweights that I can swing as I walk,

recognizing that my upper body needs to be strengthened as much as my legs. My early summer goal is to be able to walk 10 miles in under three hours carrying at least 25 pounds in my backpack.

My equipment needs are simple: good walking shoes with custom arches, a good, lightweight rain shell, a neck scarf to hold in the heat, a wool watch cap, maybe some lightweight gloves and I am off and walking.

I suggest to my business clients not to look for complicated solutions to simple problems and I feel the same way about exercise. Lace up your shoes and do some

FITNESS

good old-fashioned hard walking, looking for hills and some uneven ground, try to avoid walking 100 percent of the time on knee-crunching concrete and, if you do this year-round, you will remain in good shape and not have to go into extreme modes to be ready for any seasonal activity.

You'll always be fit!

• Bill Hoke lives in Manette, has hiked more than 2,500 miles in Olympic National Park and climbed most of the major peaks in Washington. He is a semi-retired sales and marketing consultant. He can be reached at hoke@hokeconsulting.com.

winter time, you’re still dehydrating and you really need to take in fluids — you can’t listen to from page 10 your body on the fluids as much as you can in summertime.”

Although Ballou will train outdoors in just about any weather, she does make adjustments for the wet season (she differentiates wetness from cold when it comes to exercising outdoors). For example, she may stay closer to home while on her bicycle in case of a flat tire, opt for mountain biking, run on the road instead of trails that could be impassable, and so on.

“If you’re brand new to cycling, I wouldn’t begin my cycling career in Kitsap County in the wintertime. It’s not a super-friendly area for cyclists,” she says.

Winter is a great time to do special kinds of training, or what Ballou calls controlled experiments indoors. She’ll set up her bicycle trainer in the living room — which she notes is different from riding a stationary bike since you’re actually using your own bike with the trainer — Scott Turner during a and if the weather makes cycling December outdoors too logistically bike outing. complicated, she’ll hop on the trainer instead and train on things like specific cadence levels. She does the same if she decides to run Courtesy photo on a treadmill. She’ll create specific Scott Turner programs to run a 9-minute mile, for example. She’ll also throw in some circuit training, a 20- to 30-minute workout that alternates running up and down the stairs, doing pushups, jumping rope etc.

“If you want to stay outdoors in the wintertime, you have to be willing to ask yourself, ‘What’s the best option for today?’… Most importantly, you need the right attitude for it.

Don’t do it based on whether you want to do it,” she says. “Not a lot of people jump at the idea of going outside but once you’re done, you feel great. So you have to base your motivation on how you feel after, not before or during (the outdoor workout).”

One way to look at winter training is to focus on building a good foundation for when the weather improves, according to Holt’s running coach Alexa Martin, who owns Run it by Alexa. “In the wintertime, the focus on the training will shift because you scale back to avoid injuries,” she says. “So you can get in some easy miles and do a lot more core training. … You don’t scale back in distance but in intensity. This is not the time to do a lot of anaerobic training or to push yourself to run the fastest.”

Martin, too, says much of it has to do with attitude, so she teaches her students to look at adverse elements as positive challenges: If it’s really windy and you’re running into headwind, think of it as resistance training, and if you’re caught in the rain, think of it as an opportunity to learn how to relax during a run, instead of being grumpy.

“Try feeling a part of your environment, not outside of it,” she says. “Change the words you choose to describe it, like saying, ‘interesting condition’ vs. ‘it sucks.’”

Like Turner, she suggests training with a group in the winter especially, not only because it makes you more accountable but also because being together in unpleasant weather creates deeper bonds and friendships. And, just like Ballou, she believes in flexibility.

“A lot of the challenge with winter training is getting out of the door in the first place,” Martin says. “I tell people to commit to just five minutes. And 90 percent of the time, once they’re running for five minutes, they feel good and they’re glad they’re out there. For the 5 to 10 percent when they don’t feel good, I encourage them to go home because the body needs a break. Listen to your body.”

Several milestones ahead for Harrison Medical Center in 2013

By Rodika Tollefson Harrison Medical Center is ringing in the new year with a list of several big changes, from two new facilities to the likely change to corporate ownership.

The pending affiliation with Franciscan Health System, which could happen as early as June, could perhaps be considered the biggest Joe Wilczek milestone of 2013 — considering it will change how the independent, nonprofit healthcare organization has operated for 94 years since its founding. Franciscan, which owns five hospitals including St. Anthony in Gig Harbor and St. Joseph in Tacoma, was selected by Harrison’s board of directors among 12 initial contenders and three finalists.

Harrison CEO Scott Bosch said the board looked at criteria such as financial viability, cultural structure, level of services and future growth, and Franciscan was the best choice because it’s culture and geography, among other things, are similar.

Another major factor was Franciscan’s own involvement in a planned merger with a bigger system, PeaceHealth of Vancouver, Wash.

“That was a pretty big deal for us, very attractive,” Bosch said of the PeaceHealth

affiliation. “It would give us better ability to deal with federal and state changes in health care.”

Under the affiliation, Franciscan, which is owned by Catholic Health Initiatives, will not be buying Harrison’s assets or assuming its debt. And while Harrison’s board will retain autonomy to make local decisions, Bosch would report to Franciscan CEO Joe Wilczek. Two Harrison board members would join the Franciscan board and viceversa, and Harrison Medical Center will have its own budget and balance sheet.

Harrison would remain a secular hospital but be guided by FHS’ ethical standards, which include not participating in abortions nor physician-assisted suicide (neither of which Harrison offers).

“We like the culture of faith-based organizations; however, remaining secular is important because it allows us certain flexibility,” Bosch said.

The two boards are in the process of negotiating a definitive operating agreement, following a letter of intent that was signed in October. The operating agreement could be approved by the separate boards as early as January and will include details such as ethical directives, personnel contracts and investment plans.

Until those details are worked out, Bosch said it was premature to know how operations would be consolidated, including how jobs may be affected.

“We’re still competitors today but once

we get further along through the definitive agreement, the answers to questions will come,” he said, adding that those answers could come around February or March.

Wilczek said the Affordable Care Act will result in a $3 billion loss to hospitals nationwide, and affiliations or mergers were a way to leverage resources and save money, as well as help spread the risk to a larger group of physicians under the new model, called accountable care organization (ACO), which will reimburse hospitals based on how they perform.

“We will jointly develop a strategic plan for the region and allocate resources,” Wilczek said. The joint planning cannot begin until the boards, then Federal Trade Commission antitrust regulators and other state and federal agencies approve the affiliation. One change Wilczek anticipates is expanded outpatient services because that will be an area most affected by health care reform.

If everything goes as planned, Harrison will become part of a larger organization comprised of Catholic Health Initiatives’ and PeaceHealth’s Washington, Alaska and Oregon health systems. CHI and PeaceHealth signed a letter of intent in August to create a regional network serving the Northwest. The network would include nine PeaceHealth hospitals, seven CHI hospitals, plus Harrison and Highline Medical Center in Burien, which also is in talks to affiliate with Franciscan. The yet-tobe-named network, which would also include

each organization’s clinics and physician groups, would be owned by CHI and PeaceHealth and employ more than 1,500 physicians and close to 30,000 staff.

Bainbridge Island clinic In the meantime, Harrison is moving ahead with plans to build a new medical facility on Bainbridge Island, including a 24hour urgent care clinic. Bosch said Harrison doesn’t have a physical presence on the island, creating a void in services. (Bainbridge has clinics operated by Virginia Mason and The Doctors Clinic but neither is open 24 hours.)

“Our system is in the position to do this and we have the capital to make the investment,” Bosch said.

The Bainbridge facility will include primary care as well as specialty offices that could be used both by Harrison HealthPartners providers and leased hourly by other physicians. The organization completed a purchase agreement on a 2.5acre parcel off State Route 305 and expects to break ground on the 13,000-square-foot facility in spring.

Bosch said with the changes coming from health care reform, the timing was right for an outpatient facility. “Health care legislation is radically changing how Americans will receive services in the future,” he said.

“Health care is transforming from being highly focused on inpatient to ambulatory, lower-cost setting.”

Milestones, page 14

January 2013 Kitsap Peninsula Business Journal • KPBJ.com 13

Benefits of medical and relaxation massages vary, but equally effective

By Rodika Tollefson Many people think of massage as that treat they give themselves as a luxury, but massage therapy is also becoming more and more common in medical applications, whether it’s for chronic pain, pregnancy or diseases like cancer.

Washington state, in fact, requires insurance providers to cover medical (also known as treatment) massage.

“Washington has been very progressive in terms of recognizing massage as a medical modality,” says Julie Poston, owner of Manette-based Rejuv Massage & Spa, which has seven massage therapists. “It’s such a great way to manage pain without prescription medication and invasive procedures. It’s a natural way to reduce pain.”

Kerry Murray, a licensed massage practitioner at The Doctors Clinic whose patients range in age from 16 to 90-plus, says the difference between relaxation and medical massage is that treatment massage is focused on a specific condition and it’s based on a physician’s prescription. The session has to follow the prescription in order for it to be covered by insurance (which doesn’t pay for relaxation massage). She says while

it’s not beneficial for certain things, such as kidney disease, high blood pressure and acute illness (such as flu/fevers), it’s especially helpful for people with conditions such as fibromyalgia, chronic headaches or pain, and TMJ (jaw joint) syndrome.

“I have the privilege of working for The Doctors Clinic and it’s huge to be validated in a medical setting,” she said.

“The fact they’re forward-thinking and are getting the word out to physicians shows it’s a valid modality in managing chronic pain and other medical conditions.”

A major benefit of massage is the increased circulation, “getting good nutrients to the tissue,” said licensed massage practitioner Blake Warner, who works at Harrison Medical Center’s space in the Haselwood Family YMCA center in Silverdale. Medical massage focuses on things such as lymphatic drainage and myofascial release and it feels different from relaxation massage, he said.

“It can get a little edgy and take you into a higher pain tolerance, so in the short term it can be very painful but when you get off the table, you have increased mobility and range of motion, and decrease in pain,” Warner said.

Massage has been proven to decrease recovery time after injuries and surgery (many hospitals now incorporate it before and after operations), reduce stress and anxiety, help with occupational-related pain (such as lower back in the case of firefighters), carpal tunnel and various other conditions.

Poston noted that it can also increase productivity — even a 15-minute chair massage can boost alertness.

“Even if your intention is to get a massage to relax, you’ll get the medical benefits because we’re moving the fluids and the muscle tissue,” she said. “Your heart rate drops and breathing slows, reducing anxiousness and giving the body a break.”

While medical massage has to follow doctor’s orders, when you’re paying out of pocket for a relaxation massage, you can customize the session.

“When you go in for relaxation massage, you have complete control …

It’s your time so you can make requests,” said Emily Treakle-Chase, licensed massage practitioner at the Multicare MedSpa in Gig Harbor.

She notes that there are different types of relaxation massage and every session is different not only because of requests but because one person may benefit from light strokes while another from stretching, for example. Treakle-Chase usually starts every relaxation session with Swedish massage to get the tissue ready, then moves to deep tissue or hot stone, based on the person’s preference.

“The deep tissue massage is to address the deeper muscles in the body. You go slower to make sure you’re getting through the superficial layers,” she said.

“Hot-stone massage helps relax the muscles even more.”

She said that relaxation massage is for everybody, both men and women, children and elderly. It not only promotes relaxation and increases circulation but can help with body awareness (improved posture) and overall improved well-being.

“We all live in a world where we sit with our arms in front of us, whether we’re at a computer, texting or driving, and our muscles weren’t intended to do that,” she said. “Massage helps undo some of those things you’ve done to yourself.”

14 • Kitsap Peninsula Business Journal • KPBJ.com January 2013

MILESTONES

Orthopedic Hospital Harrison’s new orthopedic hospital in from page 13 Silverdale is on schedule to open by September.

The three-story facility will be Harrison’s first one to feature private patient rooms. The hospital’s operating and patient rooms will be designed specifically for orthopedic patients, with 24 beds to be available when it opens. The third floor, which was originally planned as shelled-in space, also will be completed, providing an additional 26 beds; however, there is no timeline on when that level would actually be in operation.

“We have already started building the team of people who will be transferred,” said Dr. Gordon Cromwell. He said that everything from the room setup and staff training to patient flow at the new facility will be geared specifically to orthopedic patients, who have specific needs.

The private patient rooms will also be large enough to accommodate overnight family guests.

“It’s more patient-centric,” Cromwell said. “We should be able to continually improve the services, adjust and change as new technologies and new best practices are developed.”

Another change that Bosch expects to see this year and continuing beyond is more physician groups becoming part of Harrison HealthPartners. He said the HHP model is attractive because of lowered operating costs for physicians, especially those just coming out of medical residencies.

“We will continue talking to physician groups about potentially changing their status,” he said.

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State’s new health insurance exchange gets federal approval

Counselor offers six-week meditation class A six-week class in “Mindfulness Meditation for Health and Well-Being” will be offered starting Jan. 10 by Susan Sweetwater, a counselor in private practice in Silverdale.

The meditation classes will be on Thursday evenings at St. Paul’s Episcopal Church, 700 Callahan Drive in Bremerton.

Meditation can help bring calm and clarity to the pressures of daily life, and help to reduce stress, relieve pain, and improve focus and concentration, enhance immune function and increase compassion for self and others. The fee for the class is $150.

For more information, contact Sweetwater at sasweetwater@gmail.com or 360-616-1491. In her counseling practice, she specializes in psychotherapy, art therapy and mindfulness with adults and adolescents.

other states were Oregon, Massachusetts, Colorado, Maryland and Connecticut.

The exchange is developing certification requirements for qualified health plans that will be offered through Washington Healthplanfinder, and insurance carriers wi ll be able to submit their plans for approval once those requirements are in place.

Washington is one of only 18 states (plus District of Columbia) that chose to create a state-run health insurance exchange. Six states selected to have a partnership with the federal exchanges, and 26 opted not to establish one, which means

the federal government will operate exchanges there.

Over the next few months, the Washington exchange also will select organizations to serve as navigators that will provide customer assistance. The navigators will be trained and certified to provide unbiased information about qualified health plan options, benefits and costs to help consumers choose a plan. They will provide help in person and over the phone starting with the Oct. 1 open enrollment date.

Another upcoming milestone is the development of the website infrastructure for the marketplace, and Healthplanfinder is

working with Deloitte LLP to create the website infrastructure as well as the eligibility system for commercial and public health plans offered through the site.

The Washington Health Benefit Exchange is a public-private partnership established in accordance with the Patient Protection and Affordable Care Act of 2010 and is separate from the state, governed by an independent 11-member board appointed by Gregoire in December 2011.

For more information about Washington Healthplanfinder and the Washington Health Benefit Exchange, go to www.hca.wa.gov/hbe.

January 2013 Kitsap Peninsula Business Journal • KPBJ.com 15

The Washington Health Benefit Exchange received conditional approval of its state-based exchange blueprint from the U.S. Department of Health & Human Services in December. The blueprint outlines how the exchange will be ready to operate Washington Healthplanfinder, the state’s online health insurance marketplace, starting Oct. 1, 2013.

To receive conditional approval, the Washington Health Benefit Exchange was required to demonstrate significant progress but can take additional time to complete one or more of the approval requirements, which range from operational to legal activities needed to support the exchange. An agreement was also developed that outlines the timeline for expected milestones and regular progress reviews to ensure all remaining requirements are met.

“This is a testament to ongoing health reform efforts here in Washington state,” Washington Healthplanfinder CEO Richard Onizuka said in a statement. “While there is still much work to be done, we are confident we will meet the necessary requirements to open our doors for business on Oct. 1 of next year.”

Under the Affordable Care Act, HHS must approve or conditionally approve state-based exchanges by Jan. 1, 2013.

“We are clearly ahead of the curve and well positioned to remain a national leader on health care reform,” Gov. Christine Gregoire said in a statement. “Through our exchange, we will offer coverage to more than 200,000 uninsured Washingtonians and boost competition in the marketplace. The exchange will bring lower prices to consumers and small businesses, improve health outcomes and lower costs for all of us.”

Washington Healthplanfinder will be a new online marketplace for individuals, families and small businesses in the state to compare and enroll in health insurance coverage and gain access to tax credits, reduced cost-sharing and public programs such as Medicaid.

Washington Healthplanfinder will begin enrolling consumers on Oct. 1, 2013, for health insurance coverage beginning on Jan. 1, 2014.

Washing ton submitted its blueprint to HHS more than a month before the original Nov. 16 deadline. As of mid-December, it was one of only six states to achieve the status. The

Volunteer project seeks to map history of Winslow businesses

16 • Kitsap Peninsula Business Journal • KPBJ.com January 2013

By Rodika Tollefson Downtown Bainbridge is much younger than traditional downtowns — many of its buildings are no older than 50 — but it has nonetheless experienced major changes, including a few lost buildings. A small group of islanders are volunteering their time to help preserve the history of Winslow Way by mapping all the businesses, past and present.

“The goal is to provide a genealogical lineage of the buildings’ tenants all the way back to when each building was built, with photos and stories,” said Kathleen Thorne, a 25-year island resident.

She said the original idea came when her sons, who grew up on Bainbridge, came home after being away for some time and

asking what happened to this business or that. Thorne herself grew up in Bellevue back when Bellevue Square was an actual “little square” and Highway 520 didn’t exist. That city is completely unrecognizable, she said, unlike Winslow, which looks much the same.

“That made me realize in Winslow we have something unique to us,” she said.

Thorne enlisted the help of Dana Berg, who owned Dana’s Showhouse for 30 years and sold it about five years ago. “There’s something really wonderful about a small town that keeps its character,” Berg said.

Berg notes that in the ’60s, Bainbridge had just one restaurant. “It was a huge deal to go out to eat, and nobody had takeout,”

Courtesy photo

Winslow Way on Bainbridge Island circa 1967. she said. The restaurant, called Martinique, now is the site of condos and shops but during its heyday, it was “the” place to go to celebrate major events like proms.

It’s those kinds of stories that Berg and Thorne have been collecting from many oldtimers, and plan to use those stories in some form as part of the final product. Thorne said they’re not certain yet how the final information will be displayed and shared — some ideas include signs at the buildings showing previous tenants, or a Rolodex of sorts that includes historic photos.

Several building inventories have been

done previously in Winslow, including one of historic buildings, and the volunteers are using that information as a starting point, along with old assessor’s data. But Thorne notes that the historic inventory doesn’t include the newer buildings like Winslow Mall, and the assessor’s database doesn’t include lease agreements, and that’s where people’s memories come in. A website, WinslowWayStorefrontHistory.com, has been set up to help collect the information.

High school yearbooks also have proved a useful resource — businesses used to Winslow, page 17

KiDiMu on Bainbridge hires new director

CPA opens his own practice in Bremerton

The Kids Discovery Museum (KiDiMu) on Bainbridge Island has hired Susie Burdick as the organization’s new executive director.

Burdick, who starts at the museum Jan. 2, comes to KiDiMu with an extensive background in nonprofit leadership and fundraising. She spent the last 12 years as chief executive officer at the Hearing, Speech and Deafness Center in Seattle.

A longtime Islander, Burdick is a member of the Association of Fundraising Professionals and in 2010 she was recognized with the Professional Achievement Award by the Northwest Development Officers Association.

Earlier in her career, she spent 15 years as artistic director of Bainbridge Performing Arts.

“Joining the Kids Discovery Museum team is such an honor and I’m so excited about this wonderful organization,” Burdick said. “Working in the community in which I’ve lived for over 30 years, and with a focus on Susie Burdick children, their education and development, is a great fit.”

Burdick will replace Susan Sivitz, who served as the museum’s executive director since 2009 and is leaving to pursue her education and complete coursework at Harvard University. Sivitz was instrumental in completing the capital campaign and managing the transition from the original rented space to the KiDiMu-owned, permanent home in the Island Gateway.

After 11 years with the Port Orchard firm of Southard Beckham Atwater & Berry, certified public accountant Chris Mutchler opened his own practice in Bremerton in December.

“I guess I’m part of that exclusive, but dying breed, of people starting their own business,” said Mutchler.” It seems that there are fewer and fewer of us because of all the government regulations."

While Mutchler will do tax preparation, tax planning, and basic CPA work, he is also a Certified Valuation Analyst (CVA) and Certified Fraud Examiner (CFE) and said he wants to primarily focus on business Chris Mutchler valuation and forensic accounting. "There are very few CPA's here who are qualified and certified to do business valuations, so I see an opportunity here on the Peninsula for work that is currently being done by Seattle and Tacoma professionals."

As a CFE, one of the areas he will specialize in is fraud prevention, and setting up internal controls for business clients.

Mutchler, 50, also has a woodworking hobby business of sorts he has owned for a number of years, Northwest Podiums.

His new CPA office is at 6611 Kitsap Way in Bremerton. He can be reached at 360-3772878, christopher@chrismutchler.com, or www.chrismutchler.com.

Leadership Kitsap accepting applications for 2014 class Leadership Kitsap is taking applications for the class of 2014. The application deadline is April 15, 2013, for this intensive 10-month training program. If you are interested in becoming more knowledgeable about the Kitsap area and learning how to make a positive impact in civic issues affecting your community, Leadership Kitsap is for you.

The mission of Leadership Kitsap is to educate, prepare and connect a new group of committed leaders for community involvement in Kitsap County. The program’s vision is to create a community where there is a diverse network of effective leaders educated in public policy issues and committed to serving as stewards.

Accordingly, its programs are designed to help participants acquire not only a fuller sense of the wide array of critical issues affecting the Kitsap community, but also the skills necessary to motivate and engage others in collaborative efforts to resolve them.

To find out more about this 10-month community leadership program or to apply, please visit www.leadershipkitsap.org . Applications also may be picked up at the Leadership Kitsap office inside the United Way office at 647 Fourth St. in Bremerton. For general questions please contact executive director Kathy Nelson at 360-782-1058 or exdir@leadershipkitsap.org.

Residents’ recycled cooking oil will go into biofuel

WINSLOW

from page 16 advertise in the back. Bainbridge High School student Makaila O’Brien has been doing research as part of her senior project, poring through yearbooks as well as archives from the Bainbridge Island Historical Museum.

The project is being done under the sponsorship of Bainbridge Island Downtown Association. Since the downtown uses a Main Street model, one of its focuses is on historic preservation.

“This project helps preserve the sense of place,” said BIDA executive director Andrea Mackin. “As we lose buildings, by preserving the history of the stores and businesses, we preserve that sense of place

and sometimes the building itself is not as significant as its meaning to the community. … Getting that sense of history connects us to the downtown; that’s the most priceless part of this project.”

Thorne feels the result of the storefront history project could be beneficial for economic development because both locals and visitors would stop in to learn about the past. “Cultural tourism is a big moneymaker,” she said. “I think people will go into the stores just to learn all the information.”

The groundwork for the project has been completed and the next stage is to make it more interactive — partly by collecting people’s stories and memories.

“I hope this project will engage people and make the town more personal,” she said.

January 2013 Kitsap Peninsula Business Journal • KPBJ.com 17

It will produce a proverbial drop in the bucket for biofuel production, but a new Kitsap County initiative aims to divert used cooking oil from household drains and sewer lines.

Recycling-minded residents can bring cooking oil, grease and fat they collect at home and pour it into two double-hull, 55-gallon drums that were placed at the Bremerton transfer station the weekend after Thanksgiving. The oil will be periodically collected by SeQuential Pacific Biodiesel, a company based in Salem, Ore. SeQuential collects used cooking oil from more than 7,000 restaurants and other businesses in the Northwest, and produces about 6 million gallons of biodiesel a year. The fuel is sold to wholesale distributors, and to some entities that have large fleets of vehicles.

The county’s pilot recycling program launched during the holiday season won’t add much to biofuel production. Program coordinator Greg Gachowsky, with the solid waste division, expects it might take two or three months for the two barrels to get filled.

But he said it’s beneficial to keep oil and grease out of kitchen drains, so it won’t coagulate and potentially clog sewer lines. The county could realize some savings on maintenance costs through less frequent need to flush sewer lines.

He said additional collection sites could be set up later this year.

‘First sale’ challenge seeks to restrict digital content uses Two pending legal cases could block sharing or resale of books, music or other downloaded content that consumers purchase Electronic Frontier Foundation (As the year draws to a close, the Electronic Frontier Foundation (EFF) is looking back at the major trends influencing digital rights in 2012 and discussing where we are in the fight for free expression, innovation, fair use, and privacy. To read other blog posts in this series, go to www.eff.org.)

The "first sale" doctrine expresses one of the most important limitations on the reach of copyright law. The idea, set out in Section 109 of the Copyright Act, is simple: once you've acquired a lawfully-made CD or book or DVD, you can lend, sell, or give it away without having to get permission from the copyright owner. In simpler terms, "you bought it, you own it" (and because first sale also applies to gifts, "they gave it to you, you own it" is also true).

Seems obvious, right? After all, without the "first sale" doctrine, libraries would be illegal, as would used bookstores, used record stores, etc.

But the copyright industries have never liked first sale, since it creates competition for their titles (you could borrow the book from a friend, pick it up at a library, or buy it from a used book seller on Amazon). It also reduces their ability to impose restrictions on how you use the work after it is sold.

Two legal cases now pending could determine the future of the doctrine. The first is Kirtsaeng v. Wiley & Sons. In that case, a textbook publisher is trying to undercut first sale by claiming the law only covers goods made in the United States.

That would mean anything that is made in a foreign country and contains copies of copyrighted material – from the textbooks at issue in the Kirtsaeng case to shampoo bottles with copyrighted labels – could be blocked from resale, lending, or gifting without the permission of the copyright owner.

That would create a nightmare for consumers and businesses, upending used goods markets and undermining what it really means to “buy” and “own” physical goods. The ruling also creates a perverse incentive for U.S. businesses to move their manufacturing operations abroad. It is difficult for us to imagine this is the outcome Congress intended.

The second is Capitol v. Redigi. Redigi

is a service that allows music fans to store and resell music they buy from iTunes.

Here’s how it works: customers download Redigi software and designate files they want to resell. Redigi's software checks to make sure the files came from iTunes (so it knows they were lawfully purchased), pulls the data files from the reseller's computer to cloud storage, and deletes them from the reseller’s hard drive. Once the music is in the cloud, other Redigi users can buy it.

When a purchase is made, Redigi transfers ownership of the file and the seller can no longer access it. At last, a way for users to exercise their traditional right to resell music they no longer want.

No way, says Capitol Records.

According to Capitol, the first sale doctrine simply doesn’t apply to digital goods, because there is no way to “transfer” them without making copies. When users upload their music to the cloud, they are making a copy of that music, whether or not they subsequently (or simultaneously) delete it from their own computers, and the first sale doctrine doesn’t protect copying.

A win for Capitol would be profoundly dangerous for consumers. Many of us “buy” music, movies, books, games etc. in purely digital form, and this is likely to be increasingly true going forward. But if

Capitol has its way, the laws we count on to protect our right to dispose of that content will be as obsolete as the VHS tape.

The Redigi case also highlights another growing problem. Not only does big content deny that first sale doctrine applies to digital goods, but they are also trying to undermine the first sale rights we do have by forcing users to license items they would rather buy. The copyright industry wants you to "license" all your music, your movies, your games — and lose your rights to sell them or modify them as you see fit. These "end user license agreements" reinforce the short-sighted policies that prevent us from lending ebooks to friends, re-selling software packages, or using text-to-speech to read ebooks aloud.

We have been worried about the future of first sale for a long time, but it seems we are reaching a new crisis point. We need to be prepared to tell elected lawmakers that we stand up for first sale, whether the threat comes from arcane import regulations, dangerous legal interpretations, or onerous End User License Agreements. EFF has joined Demand Progress and the Free Software Foundation in giving you a platform to contact your legislators to urge them to stand up for first sale. Take action today.

Mobile app SwapViva lets users trade, buy or sell items

18 • Kitsap Peninsula Business Journal • KPBJ.com January 2013

“Partners in Business” “When Olympic Radiology expanded our technology to provide real-time web access to the local medical community, NW Commnet provided an affordable, secure fiber solution.

“I appreciate the personalized service NW Commnet provides.

I know I can rely on them 24/7 to help me meet the expectations of my customers.”

— Michelle Sauer Administrator Olympic Radiology

360-613-5220 • TELEBYTE.COM

PRNewswire SEATTLE — Looking to exchange that unwanted Christmas gift with little hassle?

Forget Craigslist. There's now a free app that's easy to use on an iPhone or iPad. SwapViva allows its members to post pictures and descriptions of products and services they'd like to sell, trade or barter using their mobile device. Members receive email notifications on active items they're buying or selling.

"The idea is someone's trash is someone's treasure. Using SwapViva, buyers and sellers can interact on a clean app interface," said Mihai Draghici, SwapViva founder and developer.

"We're also big fans of the television show Barter Kings, which was the inspiration to give our members the unique option to trade merchandise and services."

Once members join SwapViva, they may browse for merchandise using the search field.

Items in a member's profile are divided into three categories: Selling It, Pending Action and Buying It. For a detailed explanation, check out the promotional video at vimeo.com/55680138.

Founded by brothers Mihai and Alex Draghici, SwapViva is a new startup in Seattle looking to be a mobile first competitor with Craigslist. Mihai Draghici has created a dozen apps, including the following now available on the App Store: Robocall Lookup Tool, Zombie Arcade Shooter and Alien Space Invasion. For more information, please visit swapviva.com.

Seminar offered on Roth IRAs and retirement

360-373-2137 • NW-COMMNET.COM

Edward Jones financial advisor Teresa Bryant will host a free 30-minute educational seminar titled "Roth IRAs: Retirement Can Be Less Taxing" at 5:30 p.m. on Jan.17 at the Edward Jones office at 555 Pacific Ave, Suite 101 in downtown Bremerton.

During the seminar, attendees will learn how they can take advantage of tax-free income in retirement. The seminar will include information about: • The differences between traditional and Roth IRAs • How a Roth IRA can give investors greater flexibility to meet their retirement income needs • Whether converting from a traditional IRA to a Roth IRA makes sense for one's retirement goals The seminar is free, but space is limited. To make a reservation, call Bryant at (360) 373-1263.

January 2013 Edition

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

Tuesday, January 1 HBA Closed Happy New Year!

Thursday, January 3, 7:30 a.m.

Developers Council Tuesday, January 8, Noon Spring Home Show Cmt. Mtg.

Friday, January 11, 6 p.m.

Installation & Awards Bash Kitsap Conference Center, Bremerton RSVP to HBA ASAP 360-479-5778

Tuesday, January 22, Noon Spring Home Show Cmt. Mtg. Thursday, January 31 Executive Cmt. Mtg., 2 p.m.

Gov. Aff. Cmt. Mtg., 2:30 p.m.

With Special Guest -Commissioner Rob Gelder Board of Directors Mtg., 3:30 p.m.

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

HBA Members Build a Beautiful Kitsap One Structure at a Time The HBA is a trade association made up of hundreds of companies in, or connected to, the construction industry. This includes contractors of course, but also lenders, real estate professionals, insurance companies, inspection firms, lead and mold specialists, cabinet makers and sellers, and the list goes on. Over the years, our Association has been recognized for its partnerships with all levels of government as well as for our commitment to building a beautiful Kitsap. Almost two decades ago, in concert with the Kitsap County Solid Waste Division, our leadership created and launched the first Built Green® program in Washington State. Now there are similar programs in almost every county in Washington, and in almost every state. More recently, we embarked on educating engineers, contractors, and local government officials about the potential benefits of Low Impact Development techniques.

While we didn’t create these tools, and other jurisdictions in our state and around the world had used them over the years, using these options in Kitsap were not recognized in codes. Because they weren’t recognized, using these environmentally friendly options (where practical) was very difficult and required an uncertain and costly “exception process.” The HBA leadership worked tirelessly in cooperation with all our local governments to create a low impact development manual and to see LID adopted in code by each of our five jurisdictional governments.

Recently, the HBA was honored as a 2012 Puget Sound Champion by the Puget Sound Partnership for the tremendous value the Low Impact Development effort has been for the Puget Sound. We are honored to receive this recognition. Builders realized long ago that Kitsap is a special place. They have settled here, raised their families here, and have built beautiful homes and buildings so others can live, work, and enjoy our beautiful County.

Recent years have proven how important construction is to the economy.

It is no surprise that when the market collapsed local government trimmed its services and its accessibility. Without a robust construction economy, every single local government has had to cut, not just its building department, but ALL services. Why? The reason is because construction pays for itself and for a significant percentage of the services (not construction related) that our communities rely on, want, and expect. It has always been imperative that elected officials understand the implications of their regulatory decisions.

The exclusion of Low Impact Development techniques in code was one example of how regulation can keep Best Practices from being used. It isn’t the only example. The continual increase of our State’s Energy Code will make it increasingly expensive for new homes to be built (or for older homes to be improved). As a result, the positive benefit that might be realized in more energy efficient home or building will be unrealized as the improvements won’t be made. Is the goal to have the stricter codes, or is the goal to have improved energy efficiency?

Whether it is Built Green, Low Impact Development, Certifying builders as Green Professionals, or helping our members become Lead Certified (as required for health safety in older homes), the HBA has a long and honored tradition of supporting construction companies, related trades and businesses, and the Kitsap community overall so that we can continue to build a beautiful Kitsap one structure at a time.

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2013 OFFICERS President . . . . . . . . . . . . . . . . . . . . Robert Baglio First Vice President . . . . . . Judy Mentor Eagleson Second Vice President . . . . . . . . . . . . . . John Leage Treasurer . . . . . . . . . . . . . . Randy Biegenwald Secretary . . . . . . . . . . . . . . Dee Coppola, CGA Immediate Past Pres. . . . Wayne Keffer, CGR, CAPS

2013 BUILDER & ASSOC. DIRECTORS Karla Cook • Judy Granlee-Gates Joe Hurtt • David Godbolt, CAPS, CGP, CGB, CGR Berni Kenworthy • Miriam Villiard Kevin Ryan • Leslie Peterson, CGA Shawnee Spencer • Jim Way, CGB

2013 STATE DIRECTORS Robert Baglio • Kevin Hancock Lary Coppola • Judy Mentor Eagleson Justin Ingalls, RCS • Wayne Keffer, CGR, CAPS John Leage • Ron Perkerewicz

2013 ALTERNATE STATE DIRECTOR John Armstrong • Walter Galitzki Brent Marmon • Greg Livdahl • Jim Heins

LIFE STATE DIRECTORS Bill Parnell

2013 NATIONAL DIRECTORS Robert Baglio • John Leage

2013 ALTERNATE NATNL. DIRECTORS Michael Brown • Jeff Coombe

LIFE DIRECTORS Rick Courson • Jim Smalley • Bob Helm Bill Parnell • Larry Ward John Schufreider • Dori Shobert

2013 COUNCIL & CHAIRS Build a Better Christmas. . . Randy Biegenwald Built Green . . . . . . . . . . . . . . . . Walter Galitzki

By Laws & Nominations . . Wayne Keffer, CGR, CAPS Developers Council. . . . . . . . . Berni Kenworthy Golf Classic . . . . . . . . . . . . . Shawnee Spencer Govt. Affairs Cmte . . . Judy Mentor Eagleson Remodelers Ccl Chair . . . . . . . Walter Galitzki Membership . . . . . . . . . . . . . . . . . . John Leage Parade of Homes . . . . . . . . . . . . . Dee Coppola Peninsula H&G Expo. . . . . . . . . . Ardi Villiard Peninsula H&R Expo . . . . . . . . . . . . . . . . . TBD

HBA STAFF Executive Vice President . . . Teresa Osinski, CGP tosinski@kitsaphba.com Events and Administrative Assistant . . . Katie Revis hbaevents@kitsaphba.com Administrative Coordinator. . . Kathleen Brosnan info@KitsapHBA.com

Home Builders Association of Kitsap County 5251 Auto Center Way, Bremerton, WA 98312 360-479-5778 • 800-200-5778 FAX 360-479-0313 www.KitsapHBA.com

January 2013 Edition

Robert Baglio

2013... The Year of the Recovery?

It certainly is hard to believe it is 2013. We just finished up an incredibly 2013 President busy election year in 2012. I for one am glad it is over.

We have some new faces on the scene, but for the most part it seems that the incumbents retained their positions, especially in the local races.

Congratulations to all the successful candidates. We look forward to the opportunity to work together with our local elected officials in an effort to improve the local economy and stimulate the construction industry. The two do go hand in hand.

So what can we do to stimulate our local economy?

• Well the simplest and easiest thing is to “Buy Local” and “Hire Local.” This applies to both the private sector as well as the public sector. Whenever possible, use local companies. I would also like to ask the local jurisdictions to always send the HBA notices of any projects out for bid, request for proposals, and/or request for qualifications. The HBA has a very diverse group of members. We have residential and commercial contractors, representing all the various construction trades from site and utility construction to HVAC and electrical. We also have many architects and engineers that are members. Keep it local.

• Make the land use and building permit processes as simple, consistent, predictable, and efficient as possible. Find ways to say yes. Work with applicants to find a way to make their plans a reality, instead of presenting barriers and obstacles as to why something will not work. We are all in this together. The more permits that are submitted, the more permits will be approved. With more perm its submitted and approved, more money will be generated for the local jurisdiction. The end result is more public sector jobs and more private sector jobs.

I must point out as an example of trying to make processes easier, is Kitsap County’s efforts to review their residential building permit and inspection process.

The implementation of the “lean process” to review and analyze the steps and procedures of these two processes has yielded great results. Please keep it up.

• Code and Ordinance Updates. When reviewing new rules, regulations, and ordinances be sure to understand and assess the true economic impacts of the proposed changes. Invite input from private companies in the affected industries. Trust me; they will be incredibly happy to provide some input. Listen to what they have to say and take this into account before making a final decision. And please remember, if the benefit does not exceed the cost, then do not adopt the new regulations.

The BJC Group

2013 will hopefully be a year of recovery, but in order to achieve this end it will be necessary that we have cooperation and collaboration, where public and private entities work together to stimulate an economic recovery.

Where there is an acknowledgment and recognition that in order for us to recover we cannot continue to absorb more restrictive regulatory changes that increase the cost of construction. These changes only retard and slow down a very difficult recovery. We are all in this together, so let’s work together to make 2013 the, Year of the Recovery.

It’s a new year and we are optimistic that this will be the beginning of a genuine recovery. During CGP 2012 we saw several key Executive market factors improve Vice President including housing prices, distressed product inventory levels, total houses sold, as well as improved permitting activity.

The HBA appreciates its members and I want to thank the hundreds of companies that have maintained their membership during these very desperat e times. Your continued support is valued. “Together we are stronger ” sounds like just another line, but it is in fact true. During 2012, the leadership of the HBA was successful in improving our situation in Kitsap through the implementation of Over the Counter Permits at Kitsap’s DCD, a Kitsap County Shoreline Master Program that (while still restrictive) that is less burdensome on current property owne rs it would otherwise have been, as well as being instrumental in the County Auditor and Treasurer in understanding the importance of having a “virtual” way to close property sales on Fridays. The HBA leadership is able to participate in these important issues because we represent you. The more of you there are, the better we will all do.

Some of you are new to the industry. With the change in the trades over the last several years there are many companies that have formed in order to avoid unemployment all together. We are glad you’ve joined the industry and encourage you to consider supporting this Association and the work we are able to do here, at the State, and at the National level. Did you know that without the National Association of Home Builders (of which all HBA members are members) the Federa l Affordable Care Act (also known as Obama Care) would have required all home builders (regardless of company size) to offer health insurance to its employees? Thanks to NAHB, an amendment was taken up and passed that removed the special burden on home construction companies. Were you aware that our State Association was instrumental in the delay of the new stormwater permit and was a key factor in keepin g the State Building Code Council from adopting a residential fire sprinkler mandate? Locally and at all levels of government this work is being done each day for our members, and ironically, non members. Together we are stronger is not just “a line”; it is a fact.

I want to encourage all our members to renew their membership with the HBA in 2013 and I hope each newcomer, or other non-member company will take the time to view our website at www.kitsaphba.com, or call me to discuss all the reasons membership more than pays for itself. Can you afford not to join?

Teresa Osinski

January 2013 Edition

Our family usually has a jigsaw puzzle in progress during the winter months.

Last night, as I was working on the puzzle with my Judy Mentor Eagleson mother, I realized that your Mentor Company puzzle style says a lot about 2013 Chair your personality. While my Mother headed straight to the garden area of the puzzle — I headed to the thatched roof. With all the different colors in the garden area she was focused on the colors.

The thatched roof all looked the same so my focus was on the shape of the pieces. First, I organized all the pieces by shape and then tried them one by one until the roof was complete. Ok, so I tend to be methodical.

Once I finished the roof I moved to the garden and shifted my focus to the colors. So I can be flexible. At about 1:00 a.m. in the morning, as we were still working on the puzzle, we realized we were both tenacious.

T hese personality traits will guide the 2013 Government Affairs Committee. We will be methodical in our approach to this year’s elections. My binders are ready. Up for election this year are 2 Mayors, 17 City Councilmen, 1 Municipal Court Judge, 12 Fire Commissioners, 5 Park & Recreation Commissioners, 16 Port Commissioners, 1 Sewer Commissioner, 1 Utility Commissioner and 13 Water Commissioners.

We also have a special election this year for the 26th Legislative District Senate Seat. The winner in November 2013 will complete the one remaining year on Kilmers’ term. They will need to run again in 2014.

You thought this was an off election year. We will be flexible as we monitor the regulatory activities of the local jurisdictions and will be ready to address any topics that arise — remember fire flow, storm water and DCD fee increases — to protect the interests of our members.

We will reach out to our elected officials to help guide policy and shape legislation. And we will be tenacious in getting the job done.

The Government Affairs Committee meets at 3:30 the last Thursday of every month and is open to all our members — please join us.

Government Affairs Committee

NAHB Member Advantage Program is For You! All members or potential members should check out the NAHB Member Advantage program and learn about all the discounts members can benefit from. If a new GM vehicle is in your future, or your company’s future, be sure to check out the GM Special Offer. Do you buy from Office Depot? Do you have a credit card with Lowes?

Find out if you’re getting the 7% discount members are able to get.

There are many more discounts including Dell computers. Recently, Karla Cook of Cook Construction saved over $400.00 on a Dell computer. Karla had already picked and priced-out the one she wanted, when she learned she could get it and a NAHB Member Advantage discount. She was thrilled!

24 hour emergency clean-up

ACTION

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

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!

We are always looking for new and interesting vendors. Our booths are competitively priced and we invest in significant Expo promotion throughout the Kitsap region. For as little as $350 you can have a presence at this well established, annual event.

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

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.

Please UPDATE YOUR HBA Information!

With our new website there are added benefits to being a member and we want you to get all the bang for your buck! Please visit the “Find a Member” tab on the new HBA website. View your listing by searching within categories or by your company’s name. You can have a brief company description, your website, links to your social media accounts as well as a company logo. Please send us all the info so your listing can make an impact! 360-479-5778.

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January 2013 Edition

Welcome New Members A-1 Door Service Inc Cindy Opsteegh PO Box 1617 Port Orchard, WA 98366 (360) 876-2814 cindy@a-1doorservice.com

Kitsap Propane Lawrence Brooke PO Box 2092 Kingston, WA 98346 (360)638-1313 larry@kitsappropane.com

And the SPIKE goes to...

And the SPIKE goes to...

Kerry Chamberlin FPH Construction

Randy Biegenwald Randy Biegewald CPA PS

Davis Exteriors Maryann Davis PO Box 640 Seabeck, WA 98380 (360) 830-5635 davisexteriors@gmail.com

Maniilaq Services, LLC AnnaLee Todd 3690 West G Street Bremerton, WA 98312 (360)377-7773 annalee.todd@maniilaqservices.com

And the SPIKE goes to...

And the SPIKE goes to...

Randy Biegenwald Randy Biegewald CPA PS

AnnaLee Todd EHT Enterprises

Thank You Renewing Members 30 Years Kingston Lumber

Over 5 Years Sunset Electric NW Inc - 9 Years Heartstring Construction Inc. - 9 Years

Over 15 Years Gresham Well Drilling, Inc - 19 Years 5 Years Andersen Homes Timberland Bank Jose Technologies Over 10 Years 1 Year Sound Glass Sales Inc T&S Renovations LLC D Lane Homes Co Rank’s Construction Company Inc. Vern’s Organic Topsoil & Bark Strategy Real Estate Inc. T-OZ Construction Inc.

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Oldest Shredding Company in Washington On-Site & Off-Site Paper Shredding Service Certificate of Destruction Provided 100% Recycling Program for All Shredded Material – Nothing goes to the Landfill

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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.

Bremerton YMCA receives major makeover

Photo by Rodika Tollefson

The new cardio workout space, which has views of the water, is seen behind the remodeled central reception area at the Bremerton Family YMCA. The recently completed renovation added a second entrance and created a more open space where visitors enter the facility, and a new interior passageway connects the main building and the aquatic center.

“It has opened things up so it’s more lively, bright and more modern.”

— Jane Erlandsen, YMCA executive director now have a beautiful view of the water during their workout.

“I think the Y is blessed because we have this fantastic view,” Erlandsen said.

The second phase, which was finished in December, included a complete redo of three of the four rooms on the second floor.

Two were combined to create space for the youth center, and the third was changed to a new multipurpose/aerobics studio. The youth center is open to adults during the day, and dedicated to youth in the afternoon (it is also staffed during youth

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hours). The center includes computers with Internet access, table-top games, a Wii console and a kitchen. The kitchen was immediately put to use within a couple of days of its mid-December opening to

prepare food for a fundraising breakfast, which was hosted in the new aerobics studio.

Erlandsen said the studio was badly needed because the other multipurpose room, which hosts classes like cycling and yoga, was overbooked.

The locker rooms, which have been closed for months, were on schedule to open right before Christmas, following an upgrade of the shower room to include private stalls for ages 15 and up, and the addition of family changing areas on the aquatic center side.

One last part of the project is the move of the sauna and hot tub inside to the pool deck from the outdoors, and work on this last phase will be completed this summer or fall.

The Bremerton YMCA, with a little over 5,100 members, is the smallest in the Kitsap-Pierce association. The building opened in 1986 and since then has received at least five remodels, but Erlandsen said the latest one is by far the biggest, both in cost and physical transformation.

“It has opened things up so it’s more lively, bright and more modern,” she said.

“Now we look just as beautiful (as the newer Y facilities), on a small scale.”

The Results Are In...

Pacific Northwest Title is proud to announce the results of our 8th Annual Holiday Food Drive benefitting Kitsap County food banks. With support from local real estate and lending offices, Chambers of Commerce and the community —

The results by area were: 151 lbs. + $100.00 cash to Helpline House on Bainbridge Island 434 lbs. + $85.82 cash to ShareNet & Kingston Food Banks 790 lbs. to North Kitsap Fishline in Poulsbo 747 lbs. + $775.00 cash to South Kitsap Helpline 1,195 lbs. + $146.00 cash to Bremerton Foodline 7,066 lbs. + $590.00 cash to Central Kitsap Food Bank

OF KITSAP COUNTY

A grand total of 10,383 lbs. of food and $1,696.82 cash!

Thank you for your support!

SILVERDALE OFFICE

BAINBRIDGE ISLAND OFFICE

PORT ORCHARD OFFICE

360-692-4141 • 800-464-2823 2021 NW Myhre Road, Suite 300 Silverdale, WA 98383

206-842-2082 • 800-884-7636 921 NE Hildebrand, Suite 200 Bainbridge Island, WA 98110

360-895-7799 1382 SE Lund Avenue, Suite 1 Port Orchard, WA 98366

www.pnwtkitsap.com

January 2013 Kitsap Peninsula Business Journal • KPBJ.com 23

By Rodika Tollefson The Bremerton Family YMCA has a completely new look, following a phased-in remodel over the last several months. In mid-December, the second phase of the $1.4 million project was completed, while the final, much smaller phase, will be done this summer.

The biggest part of the remodel was finished in September and included a redesign and expansion of the lobby, new administrative spaces and a new cardio workout room. An entrance was added that provides access both to the Y and the adjacent Glenn Jarstad Aquatic Center, owned by the city of Bremerton and operated by the YMCA since 2010. The two buildings now have a cohesive look and appear to be part of the same facility, with a new ramp providing direct access between them.

Jane Erlandsen, executive director for the Bremerton Y, said having two buildings with separate entrances and separate greeting staff was costly and inefficient.

“We wanted the feel to be all one building, joined together,” she said, adding that the shared entrance and the enlarging of the lobby were the main goals for the remodel.

The lobby, which was completed in mid-September along with the rest of the main floor, now includes a cozy fireplace and sitting area, along with all new furniture, fixtures, counters and other furnishings.

“We have a lot more socializing than before,” Erlandsen said. “What I’ve noticed is that we’re more of a gathering space for the community.”

The cardio area, which was previously tucked away in a room on the second floor, has been moved behind the lobby to what used to be the youth center, kitchen and some office space. Erlandsen said the youth center had more space than it needed, and moving the cardio equipment right off the lobby helps the area feel more energetic. In addition, 16 new pieces of cardio equipment were added — and members

Developer buys parcel to build apartments in Harbor Hill mixed-use project in Gig Harbor

24 • Kitsap Peninsula Business Journal • KPBJ.com January 2013

Olympic Property Group, a subsdiary of Pope Resources, has sold an 11.5-acre parcel for development of the first residential component in Harbor Hill, a planned mixed-use project in Gig Harbor.

The undeveloped land sold to Landmark Development Group LLC is zoned for 172 multi-family units and represents approximately half the multifamily portion of the 244-acre project, according to a news release from Pope Resources.

“We look forward to working with Landmark and believe their project will be a great addition to the Harbor Hill development," Olympic Property Group president Jon Rose said.

The development is on the north side of Gig Harbor near the retail center where Costco, Target and Home Depot are located. It is also near the Gig Harbor YMCA, a park with Little League ballfields, and the proposed site for a community performing arts center.

The master plan for Harbor Hill includes a business park, a village center for retail, and close to 1,000 residential units when the project is completed.

"That is kind of our flagship

development," Rose said. "There are going to be about 400-500 apartments and assisted living units, and another 500 single-family homes."

Rose said OPG will have announcements about more of the residential development at Harbor Hill early in 2013.

County DCD teams with developers to improve land use review The Kitsap County Department of Community Development (DCD) continues to focus on improving service delivery to the community and overall customer satisfaction by implementing new lean processes. From Jan. 7-10 the department is teaming with local developers and other key stakeholders to analyze the Type 3 Land Use review process, specifically for Conditional Use Permit applications.

Land Use and Environmental Review staff will be unavailable during that week, as DCD focuses on identifying current processes, including identification and elimination of any non-value-added steps and streamlining the overall process. The team will deliver a final report on Jan. 17 that summarizes the event and focuses on highlights of the implementation plan.

Economists expect past year’s housing momentum to carry into 2013 PRNewswire SEATTLE — A nationwide panel of more than 100 professional forecasters expects home prices to rise 3.1 percent in 2013 after finishing 2012 up more than 4.6 percent, reflecting growing optimism in the housing market, according to the December 2012 Zillow Home Price Expectations Survey.

The survey of 105 economists, real estate experts and investment and market strategists was sponsored by real estate information marketplace Zillow, Inc. and conducted by Pulsenomics LLC. It is based on the projected path of the S&P/CaseShiller U.S. National Home Price Index during the coming five years.

Survey respondents said they expect home prices to increase in full-year 2012 by 4.6 percent, up from their more modest forecast of 2.3 percent in the September 2012 survey. Respondents also indicated they expect home prices to rise 3.1 percent in 2013, up from an expectation of 2.4 percent in September, and by more than 3 percent annually through 2017.

"An organic recovery in the housing market really took hold in the latter half of 2012, and this improvement is echoed in some of the most optimistic price

projections we've seen in years from this group," said Zillow chief economist Stan Humphries. "Record levels of affordability and an improving overall economic picture have really helped buoy the market and have us well positioned for continued growth, albeit slightly slower, in 2013 and beyond."

Mortgage interest deduction would negatively impact high-end home prices Changes to the mortgage interest deduction (MID) may be a key element of negotiating a fiscal cliff "grand bargain" in Congress, so the panel was asked to gauge how certain proposed MID changes would impact home prices in both the near and long term.

The survey examined three scenarios: Reducing the maximum MID-eligible mortgage amount to $500,000 and eliminating the allowance for second homes; capping all itemized deductions, including the MID, at $25,000 per year; and eliminating the MID over a multi-year period.

There was only one instance in which a majority of respondents indicated prices would not be negatively affected – 55 percent of respondents said the first scenario outlined above would have little to no near-term impact on overall home prices. Eliminating the MID entirely over a period of several years was expected to have the biggest negative impact on high-end home prices over the long-term, with 70 percent of respondents saying they expected such prices to fall moderately or significantly under such a scenario.

"If adopted, any measure to limit or repeal the MID will result in distinct price impacts over time and by market segment, and our survey data are consistent with this view," said Pulsenomics founder Terry Loebs. "For example, in the event that the maximum MID-eligible mortgage amount is reduced from $1 million to $500,000 and the deduction allowance for second homes is eliminated — an ingredient of the Simpson-Bowles proposal — the majority of respondents expect high-end home prices to fall while U.S. home prices overall experience little or no price impact."

Additional details regarding this portion of the survey are available at www.pulsenomics.com.

This is the 15th edition of the Home Price Expectations Survey. It was conducted from Nov. 30 through Dec. 12. For full survey results and graphics, please visit Zillow Real Estate Research at www.zillow.com/blog/research, or www.pulsenomics.com.

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Workshop on Marketing for Entrepreneurs offered to help businesses grow Branding Made Simple, a local growth and marketing firm based in Kingston, will present a workshop on “Marketing for Entrepreneurs” on Feb. 23 at the Poulsbo campus of Olympic College.

The interactive, hands-on workshop will focus on strategic growth techniques for entrepreneurs and small businesses. It is designed to provide entrepreneurs with the fundamental skills to develop successful marketing campaigns that will help their businesses grow.

The workshop will cover effective positioning strategies, techniques for building awareness and lead generation, and measurement and evaluation of results.

It also will outline trends important to customers today and help businesses with developing a strategic marketing plan.

Free materials will be distributed to participants including a customized marketing plan.

The workshop will run from 9 a.m. to 1 p.m. at the OC campus, 1000 Olympic College Way NW. The cost is $97 per person and space is limited.

Those interested in attending may register by calling Olympic College at (360) 394-2725 with class code 8923, or visit www.brandingmadesimple.net for more information.

Housing Authority makes awards to nonprofits

Kitsap Community Food Co-op to hold board elections The Kitsap Community Food Co-op will hold elections for five positions on its board of directors. Eligible member-owners can become more involved as board members and be part of the decisionmaking process on the cooperative grocery

store the co-op is working to open.

Anyone who is interested in being on the board but is not a member may join the co-op and send in a candidate statement.

Deadline for nominations is Jan. 10. Email jess@kitsapfood.coop for an elections packet or more information.

To find out more about the Kitsap Community Food Co-op, check the website at www.kitsapfood.coop.

Annual Steppin’ Up women’s conference in Gig Harbor coming up Gig Harbor's seventh annual Steppin' Up women's conference will be held Jan. 26-27, offering women a chance to be inspired, educated and empowered all while giving back to the community.

The theme for this year's conference is "She believed she could, so she did."

The keynote speaker will be Cheryl Haskins, author of "Girlfriends Don't Matter." It's not what you think — it has nothing to do with female friends, now or after marriage. Change your thinking, change your life.

Also, don't miss out on Saturday night's Heels Up, part of a weekend full of laughter, relaxation and empowerment.

Tickets are $50 and available online through Brown Paper Tickets, with a special offer of a fourth ticket free with the purchase of three tickets. All proceeds benefit Foster Kids of Washington.

The conference will be held at Best Western Plus Wesley Inn & Suites, which is offering special room rates for those attending. Call the hotel at 253-858-9690 or check online at www.wesleyinn.com.

For more information about the conference, email info@steppinupconference.com. For information about events in Gig Harbor, visit www.gigharborguide.com.

— Be seen by thousands of potential customers —

“The Biggest and Best Home Show West of Seattle!”

In 3 buildings as well as ample outdoor spaces to accommodate most every vendor.

Special guest, Cisco Morris!

Exhibit your products & services March 15–17, 2013

Sign up today!

Space is limited

For more information and registration form go to: www.kitsaphba.com/events-and-news/home-garden-expo/

Lending to Homeowners is Our Specialty Don’t miss out, refinance your home today!

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Denise Hike, VP & Loan Officer (360) 394-4763

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January 2013 Kitsap Peninsula Business Journal • KPBJ.com 25

Four Kitsap County nonprofit organizations have been awarded grants by the Bremerton Housing Authority (BHA) to support local housing-related initiatives.

Awardees are the Kitsap Housing Coalition, West Sound Treatment Center, Kitsap Legal Services, and Community Frameworks.

West Sound Treatment Center will receive $13,557 to support their Forward Bound project, which provides permanent housing and intensive case management and support for 14 chronically homeless families.

Kitsap Legal Services was granted $13,556 to fund their Housing Justice program, which provides legal assistance to tenants about to be evicted from their housing.

Community Frameworks will receive $13,556 to support their Built in Bremerton program, which helps low income families buy and renovate existing homes in the city.

Kitsap Housing Coalition will receive $10,000 to develop a website for one-stop housing-related shopping for low- and moderate-income individuals and families.

The site will provide information on affordable housing programs and services, including self-help housing affordable rentals, down payment assistance, homeowner education, and a listing of available affordable rental properties in Kitsap County.

Donations to these groups were made from the development budget for Bay Vista, the 83-acre replacement neighborhood where the former Westpark public housing

project was located in Bremerton. BHA has recently completed the fourth and final phase of development of replacement affordable housing on and off the Bay Vista site.

These donations are a requirement of the Washington State Housing Finance Commission, which provided partial financial support for the redevelopment of Westpark. With these most recent grants, BHA has awarded $141,750 to nonprofit organizations to address local housing needs.

Lower debt levels mean greater investment opportunities

By Teresa Bryant In the past few years, Americans have done a pretty good job of whittling down their debt load. If you’re in this group, you may now have a chance to use your lower level of indebtedness to your advantage — by investing for the future.

Consider the numbers: In 2007, just before the financial crisis, the country’s household debt service ratio was about 14 percent. (The debt service ratio is the ratio of debt payments, including mortgages and consumer debt, to disposable personal income.) But by 2012, this figure had dipped below 11 percent, the lowest level since 1994.

These figures are national averages, but they do translate into real-life savings for many of us. If you’re in this group — that is, if you’ve lowered your debt payments noticeably — what should you do with this “found” money?

Of course, you could spend it on material objects, which, in some cases, may make your life more pleasant today. But

you’d probably be better off by devoting your financial resources to your goals for tomorrow, such as college for your children and, eventually, a comfortable retirement lifestyle for yourself.

Consequently, you want may want to consider these suggestions: Increase your contributions to your retirement plan. Try to put more money into your employer-sponsored retirement plan, such as a 401(k), 403(b) or 457(b).

Your contributions are typically made with pretax dollars, so the more you invest, the lower your taxable income. Plus, your earnings can grow on a tax-deferred basis.

Fully fund your IRA. You can put in up to $5,000 per year (as of 2012) to a traditional or Roth IRA, or $6,000 if you’re 50 or older. A traditional IRA grows taxdeferred, while a Roth IRA can grow taxfree, provided you meet certain conditions.

Fill in “gaps” in your financial strategy. With a little extra money each month, can you find ways to fill in the “gaps” in your financial strategy? For example, do you have sufficient life insurance and disability income insurance? Or can you add some investments that can help diversify your overall portfolio? While diversification can’t guarantee profits or protect against

loss, it can help reduce the effects of volatility on your holdings.

Build an emergency fund. It’s a good idea to build an emergency fund containing six to 12 months’ worth of living expenses. Without such a fund, you may be forced to dip into long-term investments to pay for unexpected costs, such as a large bill from the doctor or a major car repair. Keep the money in a liquid, low-risk account.

Establish a 529 plan. If you have children or grandchildren whom you would like to help get through college, you might want to contribute to a 529 plan.

Your earnings grow tax-free, provided

withdrawals are used for qualified higher education expenses.

Plus, your contributions may be deductible from your state taxes. (Be aware, though, that withdrawals used for purposes other than qualified education expenses may be subject to federal and state taxes, plus a 10% penalty.)

Reducing your debt level can remove some stress from your life. And you’ll gain even more benefits from debt reduction by using your savings to speed your progress toward your important financial goals.

• Teresa Bryant is a financial adviser with Edward Jones in Bremerton.

Financial advisor hosts seminar focused on women Financial advisor Donald Logan of Silverdale will host a free educational seminar titled "A Woman's Guide to Money Matters" on Jan. 24 at 5:30 p.m. at Edward Jones Investments, 2416 NW Myhre Road, Suite 102 in Silverdale.

During the seminar, participants will learn more about: • What one can do now to prepare for retirement • One's options to pay for a child's or grandchild's education • Developing a strategy to help achieve one's financial goals The seminar is free, but space is limited. To make a reservation, call Logan or Beth Halvorson at 360-692-1216.

HELP YOUR EMPLOYEES 26 • Kitsap Peninsula Business Journal • KPBJ.com January 2013

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Employee financial education benefits your entire organization. Our no-cost program can help your employees: • Get answers to their financial questions and concerns • Learn about meeting financial needs, such as retirement, education funding and insurance • Enhance their satisfaction and loyalty through demonstrated concern for the benefits and retirement plan decisions they face

You’ll find that financial education is good for your employees and your business.

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Leaving a legacy

By Jason R. Parker I remember being so nervous almost 16 years ago when I was just about to get married. I felt a great sense of responsibility, and I wanted to be a good man and a good husband. A few hours before my wedding, I called my grandparents and asked them for their advice on how to have a good marriage.

My dad's mom told me, "A family that prays together stays together."

My mom's parents told me, "Never go to bed mad."

As I write this article, I'm happy to report that I am approaching my 16th wedding anniversary to my beautiful bride, and I'm so grateful that she has put up with me for all these years.

My dad's mom passed away years ago.

And my mom's mom passed away about two years ago. I'm grateful for their

wisdom, but I wish they would have written down some of the things they had learned during their life.

While people make all kinds of plans and preparations to leave money, to simplify or to maximize their estates, they forget the most valuable pieces of their legacies: their personal stories of their triumphs and greatest achievements. Oftentimes, all that is left are the pictures of people’s lives, the careers they had, the dates and times they lived, but their stories are lost.

I know the Bible speaks about leaving a financial legacy, and I understand that importance, but the financial inheritance is actually the easier part.

What’s not so easy is taking the time to sit down and share your story. Today, the process is getting easier because of online blogs and dictation software that allow you to speak words into your computer rather than type. Let me encourage you to leave a grand legacy, one that will live forever and be more valuable to future generations than simply leaving money.

Five reasons not to be a ‘do-it-yourself’ investor many types of financial data on your own.

But do you know how to put all these pieces together into a cohesive picture? A financial professional, with years of experience and training, is generally more capable of finding the research sources and making the most sense out of the results.

Put experience to work in making portfolio recommendations. Even if you’ve been investing for many years, you might be surprised at all the underlying influences that should go into making investment decisions. But a financial professional understands market patterns, the nature of diversification and other factors necessary in helping you make the right choices for your situation.

Spend time looking for opportunities — Even if you enjoy the process of investing, the chances are quite good that you can’t spend as much time on it as a financial professional. That means, among other things, you aren’t constantly on the lookout for new investment opportunities. Nor are you always looking within your own portfolio for opportunities to rebalance or make other adjustments that can help you move forward toward your goals. But when you work closely with a financial advisor, he or she is exploring the financial markets for new investment prospects while regularly reviewing your portfolio for possibilities of upgrading quality, increasing diversification or making adjustments in resp onse to changes in your life.

The “do-it-yourself” route may be fine for home repairs. But when it comes to managing your investment situation, there are benefits to working with a professional.

• Christy Givans is a financial adviser with Edward Jones on Bainbridge Island.

quotes, a journal, blog or even a book. It could be a wonderful gift and an amazing legacy.

CORRECTION: The article headlined "Why dividends? Why now?" by Jason Parker in the December 2012 Kitsap Peninsula Business Journal erroneously states in the second paragraph: "The fact that 10 million boomers are retiring every day is reason to give pause ..." It should have been 10 thousand boomers, not 10 million. We're very sorry for any confusion.

• Article written by Jason Parker, president of Parker Financial LLC, a feebased 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 & long term care insurances as well as investment services. Follow Jason’s blog at www.thriving-in-retirement.com.

January 2013 Kitsap Peninsula Business Journal • KPBJ.com 27

By Christy Givans These days, you can go online and invest, for modest fees. You can also visit various websites for research and watch numerous cable shows for investment recommendations. So, why shouldn’t you be a “do-it-yourself” investor rather than work with a financial professional?

Actually, there are at least five good reasons why a financial advisor can help make you a better investor.

A financial advisor can: Ask the right questions — If you try to invest on your own, you may find yourself asking the wrong questions, such as: “What’s the ‘hottest’ investment out there?”

A financial professional can help frame better questions, such as: “Given my individual risk tolerance and long-term goals, which investments should I consider to help me build a balanced portfolio?” In other words, a financial professional can help you ask the questions that can lead to better results.

Look at your situation objectively — No matter how hard you try, you won’t be able to take all the emotion out of your investment choices. After all, your investment success will play a large role in some key areas of your life, such as your ability to enjoy a comfortable retirement.

Consequently, if you think you’re not making the progress you should with your investments, you may be tempted to make a hasty decision to give your portfolio a “jolt.”

Frequently, though, such choices can backfire. When it comes to investing, it’s better to invest with your head, not your heart. A financial advisor can analyze your situation, assess your risk tolerance and make appropriate recommendations.

Show a deeper understanding of investment research — You can look up

During my years of helping people plan for retirement, I have seen many families torn apart by an inheritance. I have seen brothers fall out of good favor with one another, and sisters who will no longer speak to each other because of money. One of the greatest joys in my life has been learning how to become successful financially without receiving help from family or having to wonder what I will get from them.

I do not plan to leave a lot of money to my children or grandchildren because I would hate to rob them of the awesome experience of learning how to win at the game of life. And I certainly would be deeply troubled if my children fell out of favor with one another because of a large inheritance.

I suggest that you spend your money while you are alive. Create memories.

Take your family on vacations and cruises. Take them out to eat. Spend the holidays with them. Create the relationships and share your wisdom.

More importantly, give them the most valuable gift of all: your time.

Plan to leave your loved ones some money, but not so much that it cripples their abilities to grow on their own. And if you want to leave something really special behind to those who will follow in your footsteps, then consider writing down a collection of your favorite

Busy 2012 storms with record-high tides signal climate change

28 • Kitsap Peninsula Business Journal • KPBJ.com January 2013

By Kathleen Byrne-Barrantes This year Mother Nature reminded us that, while desirable, there are undeniable risks associated with living near the coastline.

Here in the Seattle/Puget Sound region, we experienced the highest tides ever recorded on Dec. 17, while local climatechange watchers say the area could be in for more of the same — or worse — in years to come.

A powerful winter storm hit the Pacific Northwest overnight on Sunday and into Monday Dec. 17, delivering strong winds, towering waves and rain to some places with heavy snowfall and whiteout conditions in others.

High winds ranged from 60 mph with gusts up to 75 mph, which led to towering seas and up to 30-foot waves. Forecasters issued flood watches with the likelihood of tidal overflows and coastal flooding.

Many experienced the wintertime "king tide," pushed by strong winds around Puget Sound; as waves bashed docks, seawalls and structures, and spilled onto hundreds of properties. These king tides also occur naturally when the sun and the moon align, causing an increased gravitational pull on the Earth’s oceans. This winter the tides occurred in December and will again in January.

The Washington State Department of Ecology started the “Washington King Tide Photo Initiative” (found at http://www.flickr.com/groups/1611274@N 22/pool) in 2010 inviting residents and visitors to take photos of Washington’s king tides. Ecology believes that documenting how very high tides affect the environment and our coastal infrastructure will help us visualize what sea level rise might look like in the future.

Inspecting the damage that morning, I found that the high tides had lifted up all

eight of my own waterfront deck’s heavy duty supporting posts, including the concrete set in 1989.

Watching the local news channels and the national weather service reports the evening of Dec. 18, story after story told of water rising into homes leaving properties drenched in saltwater, tides and winds ripping out wiring and siding, driftwood debris closing roads, while sewer and stormwater systems backed up and spilled into basements.

The Seattle Times reported that the Dec. 17 Seattle high tide, 14.51 feet, topped the previous record of 14.49 feet set in January 1983. The article indicated that the damaging tides are magnified partly because sea level in Seattle has risen by 8 inches over the past century.

James Rufo-Hill, a Seattle Public Utilities meteorologist studying the potential effects of climate change, said such a high tide may be an everyday tide by midcentury. And the best available science tells us it is going to continue to rise and it is going to accelerate, adding that studies indicate the level of Puget Sound could rise by 2 to 4 feet by the end of this century. The article also quotes Seattle Mayor Mike McGinn, in the wake of the damage, saying "Climate change is real, and it is one of the things we've been looking at with regard to seawall design, shoreline codes and

coastal areas subject to erosion."

Climatologists say extreme weather events will become more common as our climate heats up and the earth’s weather systems are in a state of flux. Recent climate modeling results indicate that "extreme" weather events may become more common and rising average temperatures produce a more variable climate system, according to the Washington State Department of Ecology.

Nov. 30 marked the end of the 2012 Atlantic hurricane season, one that produced 19 named storms, of which 10 became hurricanes and one became a major hurricane.

The busy 2012 hurricane season continues a decades-long high activity era in the Atlantic with four U.S. land-falling storms, including devastating Sandy and Isaac, according to the U.S. National Weather Service (http://www.noaanews.noaa.gov/stories2012/ 20121129_hurricaneseasonwrapup.html or on Facebook at https://www.facebook.com/US.National.We ather.Service.gov).

Hurricane forecasters remind us that a well-established climate pattern puts us in an ongoing era of high activity for Atlantic hurricanes that began in 1995. Since that time, more than 70 percent of seasons have been above normal, including 2012.

This season marks the second consecutive year that the mid-Atlantic and Northeast suffered devastating impacts from a named storm. Sandy, and Irene last year, caused fatalities, injuries and tremendous destruction from coastal storm surge, heavy rainfall, inland flooding and wind.

“This year proved that it’s wrong to think that only major hurricanes can ruin lives and impact local economies,” said Laura Furgione, acting director of The National Oceanic and Atmospheric Administration’s (NOAA) National Weather Service. “We are hopeful that after the 2012 hurricane season, more families and businesses all along the Atlantic and Gulf Coasts become more ‘weather ready’ by understanding the risks associated with living near the coastline.”

And, the current focus of secondary education now involves teaching students to understand global issues and sustainability in a way that shows the connections between population, environment, consumption, poverty, conflict and climate change issues.

In a typical lesson, after learning vocabulary related to current environmental issues, students engage in a dialogue about fresh water scarcity. They are asked to identify cause-and-effect statements, then use the skill during activities while they read about three key environmental issues: climate change, deforestation and freshwater scarcity.

Whatever you believe — and this column was written two days before the Mayan calendar approaches its end and doomsday prophecy on Dec. 21 — no one can deny this has been a wicked weather season.

Whether you celebrate the Mayan calendar's end or ring in the New Year, I hope everyone is here to wish a healthy and prosperous 2013!

Skills gap in workforce ‘a critical long-term issue’

By Tim Kelly, Editor During the past year's seemingly endless political campaigning, candidates at all levels talked nonstop and with great urgency about creating jobs. But a related issue that got far less attention is the skills gap — a shortage of skilled workers and professionals needed to fill jobs in growth industries and to replace all those Baby Boomers heading into retirement.

It's of particular concern on the Kitsap Peninsula and across the broader region, from Boeing to the Puget Sound Naval Shipyard to small companies poised for expansion in areas such as composites manufacturing.

"Washington state is one of the more technically advanced states in the country in terms of industry," notes Jeff Brown, an engineering professor at Olympic College.

"But we rank in the 40s in terms of turning out engineering graduates."

Reducing that disparity is essential, he says, because the country will need an estimated 100,000 new engineers in the next five to 10 years.

"This country has a vital long-term need for engineers. The Boomers are retiring, and U.S. schools are just not turning out the engineers required to replace them," Brown says, adding that it's "a critical long-term issue the country has to come to grips with in order to remain competitive in the world."

Information sessions Olympic College will hold information sessions about the Air Washington programs on Jan. 30, Feb. 13 and Feb. 27 from 5-6 p.m. at the Bremerton campus. For more information or to register for a session, Contact Sarah Miksa at smiksa@ olympic.edu or 360-473-2826.

Everyone with a stake in addressing the skills gap stresses the need for a strong STEM (science, technology, engineering and math) curriculum in high schools, junior highs and even elementary schools.

Students need to take a progression of STEM courses if they want to be prepared to go into a college engineering program.

"STEM is an area of investment and concern now, and hopefully that will help turn the tide on a national basis," says Mike Fancher, an aerospace engineer who is with the National Center for Manufacturing Sciences Bremerton office. "In the meantime, engineering schools have been suffering in terms of the number of applications."

Fancher sees the skills gap as a two-track problem, with different strategies required.

He draws a distinction between the need for more college graduates who have a

four-year degree or higher in various engineering fields, and manufacturing assembly jobs that require specialized training that can be completed in less time.

"Correction of that is probably easier," he says of workforce needs in manufacturing. "Once people are enrolled or recruited, that gap can be filled with shorter-term (training) courses."

"Of particular concern is engineering, those are harder to fill," Fancher says. "A one- or two-year training program or apprentice program is not going to fill those gaps."

Olympic College in Bremerton is involved in efforts to address both aspects of the skills gap.

The college is in the third year of a partnership with Washington State University to offer a four-year degree in mechanical engineering at OC. Students can take their first two years of classes through Olympic College, then stay in Bremerton to continue their coursework in the WSU program instead of having to go outside Kitsap to attend a four-year school.

That's important for placebound students who have family and other obligations that prevent them from going away to college.

Brown says the joint program with WSU will help fill the skills gap in engineering.

The first 14 students to earn the mechanical engineering degree graduated last spring, with 18 more on track to graduate in spring

2013, and 22 students who enrolled as juniors last fall.

During the first two years of the program, students had to go to WSU in Pullman for lab courses in the summer, but this year students will be able to take those courses in an old automotive building being renovated on the OC campus.

"The class cap is 30 students a year, and I think we'll probably get to that this coming fall," says Brown, an aerospace/mechanical engineer who earned a Ph D from Purdue University and has taught at OC for 16 years.

He said all the graduates in the first OC/WSU class have jobs — nationally, the starting salary for a mechanical engineer is about $60,000 to $65,000 — and that many of them stayed in Bremerton to work at the shipyard.

"The shipyard is a huge supporter of this program because they need hundreds of engineers every year themselves," Brown says.

OC also is part of a statewide consortium of 11 community and technical colleges sharing in the Air Washington grant, $20 million in federal funding to provide training in aerospace industry sectors.

OC's share is $2.2 million, which is being used to expand training programs in composites manufacturing technology, Skills gap, page 33

January 2013 Kitsap Peninsula Business Journal • KPBJ.com 29

30 • Kitsap Peninsula Business Journal • KPBJ.com January 2013

Legalized marijuana and workplace drug testing

By Julie Tappero The election is now over and history has been made by Washington and Colorado, the first states to legalize the recreational use of marijuana. Although our state, along with 16 others and the District of Columbia, had already approved the legalization of medical marijuana, this new law is unprecedented in its scope. It appears to have employees and employers scratching their heads and asking, “What next?” as state and federal laws collide.

Let me state up front: I am not a lawyer, and this is untested legal ground. But before you throw up your hands in frustration or confusion, we can look at laws and legal precedents to provide us with some guidance.

Many businesses already conduct preemployment drug testing, as well as random and/or post-accident testing. In fact, a study in 2011 by the Society for Human Resource Management revealed that 57 percent of the organizations surveyed conducted pre-employment drug tests on all new hires. Many of those surveyed reported that drug testing improved absenteeism and productivity.

Other motivators included better safety records and lowered insurance rates.

Drug testing has been around since the mid to late 1980s, following the drugs, sex and rock’n’roll years of the ’60s and ’70s. In fact, during the 1980s, laws were passed mandating drug testing by businesses that are regulated by the U.S. Department of Transportation (such as trucking and airlines) and by the federal government. And the Drug-Free Workplace Act required federal contractors to implement drug-free workplace policies and programs. In 2010, the Department of Health and Human Services reported that 8 percent of full-time employees (9.6 million people) used illegal drugs in the previous month. Clearly the issue remains an important one for employers.

Now that our state has legalized not only medical marijuana use, but also recreational marijuana use, how do we proceed as employers, and do other laws come into play?

The Americans with Disabilities Act (ADA) provides protections to those who meet the definition of having a “disability.”

Could this include those who have substance abuse problems? As I often say in my articles, the answer is yes, and no.

Many of our employers administer preemployment drug tests. These are not considered medical exams under the ADA, and addiction to illegal drugs is not considered a disability under the ADA requiring accommodation. However, employees utilizing prescription drugs to treat a disability are protected under the ADA and must be accommodated. For example, an employee could reveal their need to use a prescription medication that inhibits their ability to drive. A reasonable accommodation could be to pair them with a co-worker to ride with to meetings and events, or to allow them to participate via teleconferencing whenever possible.

How does medical marijuana fit in? A couple years ago, a Bremerton company, Teletech, refused to hire a job-seeker who disclosed that she had a prescription for medical marijuana, which caused her to fail the pre-employment drug test. This carefully watched case wound its way through our courts. The final result was a ruling which basically stated that the use of marijuana, albeit with a medical prescription, was still the use of a drug which is illegal on the federal level. Therefore, the employer had the right, under its drug-free workplace policy, to deny employment to an applicant who tested positive for the use of illegal drugs.

There have been several other court cases challenging these practices, and the courts have consistently upheld businesses’ rights.

Recently, the liberal Ninth Circuit Court of Appeals rejected a petition to rehear an argument that medical marijuana is protected by the ADA. The court recognized the evolving views on the acceptability of medical marijuana, but in the end, stated that

“Congress has determined that, for purposes of federal law, marijuana is unacceptable for medical use.” Therefore, it was not accorded protection under the ADA. Washington voters have now created an even more complex situation for employers by passing Initiative 502, legalizing the use of recreational marijuana. While the initiative requires the state to define what constitutes impairment under the law, the fact remains that marijuana is still illegal at the federal level. The tests for THC levels in the blood may become more accurate and discerning, but in general, employers are not usually testing for impairment, but rather for usag e of the substance, and THC remains stored in fat cells for up to about 30 days.

We can only speculate about whether the new law will change what employers can require of their employees, but it is logical to expect that the courts will apply the same principles to the usage of recreational marijuana and employment as they have to medical marijuana. Until this is resolved, it appears that employers may continue their practice of weeding out applicants and employees who test positive for THC. The ADA does provide protection to recovering drug addicts. This means that employers cannot discriminate against someone based on their past usage of drugs.

For example, an employer learns that an employee is a recovering drug addict, and based on that information passes over him for a promotion to management, fearing that the increased stress would cause a relapse. This could be illegal discrimination under the ADA. Any time that an employer deals with information regarding an employee’s medical history, it is imperative that this information be kept confidential and separate from their employment records.

This includes information about drug and alcohol tests. Share the information and test results with others on a need-to-know basis only.

Worker safety, employee privacy, personal health, team productivity,

employer liability, government regulations — the list of concerns and rights seems almost endless as we ponder the issues surrounding drugs and the workplace. One thing, though, seems almost for certain: lawyers will be kept very busy over the next couple years as we sort these issues out!

As of Dec. 6, residents of Washington state have the right to use recreational marijuana.

Employers need to decide now how they will approach this. If your business does drug testing, how will you view a positive result for marijuana? Will you give marijuana-using employees and applicants a pass, or will marijuana usage be a bar to employment?

A lot of people in our state now believe they have the legal right to use marijuana. If usage violates your drug-free workplace policies, consider informing your employees now so they are aware of the consequences.

You may also need to revise your employee handbook to include specific information about marijuana usage. Letting your job applicants know upfront your company’s policy could prevent you from wasting your money on pre-employment drug tests that come back positive for marijuana usage.

The p assage of I-502 is an opportunity for all of us to review our drug-free workplace policies. And one thing is for sure, the courts will become involved as we sort through all of this. The Teamsters have already warned that a showdown between employees and businesses is coming. You, like me, probably hope to be on the sidelines watching the showdown, rather than be in the ring with those doing battle!

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

The recommendations and opinions provided are based on general human resource management fundamentals, practices and principles, and are not legal opinions, advice, or guaranteed outcomes. Consult with your legal counsel when addressing legal concerns related to human resource issues and legal contracts.

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Human Resources: A crucial cog in crisis management

By Dan Weedin Crisis certainly reared its ugly head in 2012.

Savage hurricanes and storms battered the Eastern seaboard. Deadly shootings broke out in a school, movie theater, and shopping mall. Key executives resigned in disgrace and d a m a g e d reputations.

The aftermath of a child abuse scandal rocked a major university. And in thousands of small businesses around the country, fires destroyed buildings; water damage ruined equipment; data was breached; property was stolen; power outages suspended operations, and employees lost their jobs.

The latter cases go mostly unnoticed to the public; however, they impact untold numbers of lives.

When I first started coaching high school basketball, my coaching mentor told me that I could expect at least three crises a year at a minimum. How I responded to those crises would determine the success of the season. He was right. I guarantee that in 2013, your business will suffer at least one crisis.

Three hundred and sixty-five days is an awful long time to go with everything being perfect (remember bad things happen on weekends, too).

In my experience, the majority of small businesses are not prepared to respond to crisis. The consequences of that are many, including suspension of operations, reduction in revenue, and loss of reputation. The most dire fallout lies with your most valuable asset — your employees. That’s where the human resources department comes to the rescue.

In any crisis, the most affected by the residual impact are your employees.

Depending on the crisis, they may fear for their job; fear for the jobs of their coworkers; become overly distracted and have their performance suffer; and worry about their standing in the community as a part of the organization. The last example gets overlooked a lot. Consider the employees at Penn State University.

Do you think they have all become just a little more self-conscious and embarrassed as result of the scandal? It’s human nature.

Savvy business owners have a plan to respond to any crisis. Outstanding business owners include their human resources department in the conversation and make them an integral part of the process. Here’s why…

• When a crisis occurs, there is instantly fear and uncertainty. The human resources expert(s) in your business should be a calming and reassuring influence. Even if the honest answer to many questions is “I don’t

Bainbridge bookstore hosts month of author events experience as a mountaineer to tell a tale of survival and ambition as four men attempt to climb Denali.

Jan. 20, 3 p.m.: Eagle Harbor Books will welcome back favorite Robert Michael Pyle to talk about The Tangled Bank: Writings from Orion. This is a selection of essays Pyle wrote for Orion and Orion Afield magazines over 11 years.

Jan. 24, 4-6 p.m.: This session will be held at Pegasus Coffee House, 131 Parfitt Way S.W., to meet Tacoma author and artist Marsha Glazière as she talks about her new book Eclectic Coffee Spots in Puget Sound. Glazière uses her artist’s sensibilities to capture the ambience, architectural character, motifs, furnishings, curb appeal, and distinguishing personality of 120 special coffee spots, including Pegasus. Her new book features 41 paintings of those that inspire her most.

Jan. 27, 3 p.m.: Edmonds writer Vaughn Sherman will talk about Sea Travels: Memoirs of a 20th Century Master Mariner, which chronicles the life of Nome, Alaska, native J. Holger Christensen, the son of a Danish immigrant, who grew up on Bainbridge Island after his father bought a Puget Sound workboat. Sherman, a Seattle native who worked for the CIA for more than 20 years, also will discuss his novel, Sasha Plotkin’s Deceit, in which a CIA officer is on a mission to discover what secrets a Soviet Union mole is hiding.

to be trained in how to be a part of the crisis response team. Expecting them to be proficient without proper training is like asking a defensive lineman to go in and play quarterback! It’s unfair to them and to the process. Proper training can be outsourced to professionals; you can utilize online classes and webinar trainings; and you can send them through schools or workshops.

Regardless, you need to help them develop the skills needed, and provide an opportunity to practice those skills, if you want them to truly be a support to you in the pinch.

Bottom line — you will have some sort of crisis next year. It’s inevitable.

You hope that it’s a small one, and prepare for the big one. Part of that preparation is calling up your Human Resources department and having them take care of your organization’s chief asset and strength — your employees. If you don’t take the time to prepare and train your leadership team for a crisis, you are bound to lose money, time and valuable employees. However, if you take the small investment to adequately develop a plan and form a team that includes your HR department, the likelihood of not only surviving, but also thriving out of crisis is strong.

• 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.

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January 2013 Kitsap Peninsula Business Journal • KPBJ.com 31

Eagle Harbor Book Co. on Bainbridge Island has numerous author events scheduled in January, with topics including foreign travel, reflections on consciousness, adventure in Alaska, and marvelous essays by a favorite naturalist.

Here’s the schedule: Jan. 6, 3 p.m.: Inveterate traveler and former bookstore proprietor Angie Brenner, will give a slide show and talk about her book Anatolian Days and Nights: A Love Affair with Turkey, which she coauthored with Joy Stocke. The two women spent a decade traveling in Turkey.

Jan. 10, 7:30 p.m.: Scientist Christof Koch from Seattle will discuss his book Consciousness: Confessions of a Romantic Reductionist. Part memoir, part hard science, Koch explores how psychology, physics and neurosurgery have contributed to the modern understanding of consciousness and unconsciousness.

Sunday, Jan. 13, 3 p.m.: MacArthur Fellow and UW professor of geomorphology David R. Montgomery will discuss his book Rocks Don't Lie: A Geologist Investigates Noah's Flood, which attempts to reconcile the relationship between religion and science through history and geography.

Jan. 17, 7:30 p.m.: Seattle journalist, author and adventurer Nicholas O'Connell will talk about his latest book, and first novel, Storms of Denali. He uses his

know,” at least there is a communications leader within the organization. Many times, the boss is busy putting out the fire. Someone needs to be available for the employees.

• If the emergency results in notifying family members, the HR department is the best “voice.” Because they are not dealing with the crisis directly, they can be a much more capable sounding board and empathetic communicator.

• Human Resources knows the laws and regulations that could come into play with shutdowns, terminations, re-assignments, and other employeerelated moves.

• The Human Resources director has a direct line to the morale of the employees during and after the crisis.

Most crises don’t just end quickly. The lingering effects can include uncertainty, fear, drama, lack of production, anger and depression. As the boss, you may be in the middle of dealing with your own feelings, stress, and responsibility, and need someone to be a leader for your team.

Some of you out there might be saying, “Dan, not only am I the boss, but I am the HR person, too!” Owners of small businesses may be filling multiple roles including HR, operations, sales and chief custodian. I understand that. This requires that you, more than most, really need to have a tight crisis response plan.

You don’t have a margin for error. You might also consider outsourcing many of your HR functions to consultants who offer this service. In the end, it may be a terrific investment to save you time and to aid when bad stuff happens!

Your Human Resources director (whether it’s you or someone else) needs

How local leaders motivate, inspire staff and followers

32 • Kitsap Peninsula Business Journal • KPBJ.com January 2013

By Rodika Tollefson Experts on leadership have said that one of the characteristics that sets authentic leaders apart is having authentic followers, people who follow them not because of the job title but because these leaders inspire and motivate them. For an organization, whether it’s for-profit, nonprofit or in the public sector, having motivated staff, both paid and volunteer, is key to success.

Local leaders motivate their staff in different ways, but some things many have in common include using open communication, building a strong culture and rolling up their sleeves to be part of the team.

Sunshine Nance of Boxlight says while motivating and inspiring are often used interchangeably, there’s a difference between the two.

“Motivating is getting everybody focused on a task, outlining goals and giving them the power and autonomy to succeed in their jobs. Inspiring is giving them the passion to want to succeed in their job. It seems more personal, something that comes from the heart,” said Nance, marketing and communications director and owner/ manager with her husband, Hank.

The company, headquartered in Belfair,

Sunshine Nance

Scott McFarlane

Doña Keating

Angela Sell

“I believe culture allows businesses to make good on all the talks about motivation.”

— Scott McFarlane, Avalara CEO

Tim Winter

Amy Igloi

Clif McKenzie Jon Rose them as people and doing extra things.”

• Go to kpbj.com for a video on She said employees at Boxlight are leadership, featuring interviews with motivated to begin with because of a Dona Keating and Clif McKenzie. culture of accountability. “It’s about taking care of the people who work for you, has 135 local employees and 17 in Mexico. keeping them happy and giving them “Showing people that you care is really accountability,” she said. important,” Nance said. “To motivate, the Organizational culture is also a strong biggest thing is to treat people with respect belief for Scott McFarlane, founder and and give them the power to make decisions CEO of Avalara. The company, which related to their jobs, showing interest in designs sales-tax automation software, has 330 employees worldwide, including 200 at its Bainbridge Island headquarters.

“My personal focus is, yes, on inspiring and motivating but in my humble opinion, culture has a lot to do with that — you can’t motivate and inspire without actions, and I believe culture allows businesses to make good on the promises made in all the talks about motivation,” McFarlane said.

The employees, who call themselves Avalarians, are expected to give a great deal, because for a startup that’s a necessity, he said. But in return, they’re rewarded with a fun environment — including weekly PROPERTY FOR SALE OR LEASE summertime barbecues where families are invited, a tiki lounge that has massage Commercial CBA486951 $100,000 4009. chairs, spinning classes — even an electric Downtown redevelopment in bremerton offer Silverdale CBA509502 one level Commercial retail/office space with cart that can be used to pick up people at 1,240 sF, 2 restrooms, 5 parking spaces plus on beautifully completed office space on the ground floor the ferry when it rains, for example. street parking in an area of redevelopment. of the Cavalon Place ii building (class a), in silverdale.

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Bainbridge Island. Keating is a leadership

strategist and management consultant who has worked with local and international organizations.

“I motivate by helping (people) see the possibility in the end game. I think that people who are looking for my brand of leadership are very excited about accomplishment; they like to see the process of visioning and achievement married. So I help them to vision the possibilities,” she said.

Keating said taking the team through the steps is empowering to them because it shows they can achieve their objective; but just as important is for everyone to understand the role each person plays.

“I balance servant leadership with powerful leadership,” she said. “Servant leadership to me is about caring, teamwork, involving your people and not just seeing them as followers. Certainly they are going to follow you at some level but really it's about understanding who's at the table and seeing them as equals, or at least partners in the endeavor that you're undertaking.”

Using that partnership strategy has worked for Angela Sell, immediate past president of the Silverdale Chamber of Commerce. Sell, who is a financial adviser with Edward Jones, has been involved with many nonprofit boards and projects, including the YWCA advisory committee and the Central Kitsap food bank.

“As a leader, you know when to lead and when to follow — when you let go, you’re allowing others to lead and in turn motivate,” she said. “You become one unit and you need to know when to back off and when to do the work.”

She said showing your passion as a leader is a powerful motivator and notes that it’s important for leaders to be mentors.

“I’m a good example. I started out not knowing anything about anything,” she said. “I had mentors and I got better and built confidence. The only way to get that is by having someone behind you.”

Sell likes to get down into the trenches and believes in not asking people to do something she’s not willing to do herself.

That’s a philosophy shared by Peninsula High School Principal Tim Winter, who said it’s important to lead by example, rolling up your sleeves to do what needs to be done — sometimes that can be things like picking up garbage.

He likes to use the analogy that when people know you’ll run through a brick wall for them, they would do the same for you.

“I don’t think leadership is something you act, it’s got to be authentic and real,” said Winter, who uses many of the same leadership principles he applied as a coach.

“It has to be to 24 hours a day.”

As a leader, he gets inspired himself when he sees people “doing awesome things,” whether that’s staff or students. And whether it’s working with the teens or the adults, he Leaders, page 33

LEADERS

“Our motto is to go above and beyond even for each other, not just our customers,” she said. “My way of going above and beyond is by taking time to talk to them when they have personal issues.”

She also encourages her staff to pursue things they’re passionate about, interests outside of work that help them grow, like education. She acknowledges that allows employees to move on and could mean extra cost for hiring and training new ones, but she believes in not holding people back.

“I see them choosing to work for me as a privilege,” she said.

Privilege is also a word Clif McKenzie used to describe his view of leadership. McKenzie, co-owner and president of Poulsbo-based Watson Furniture, said it’s an honor and a big responsibility to have people trust in him. That trust requires open communication and Watson shares everything from financial results and challenges to plans and opportunities with employees.

“I share my vision, first and foremost. …

I think people follow because they like your plan, because they have some trust in you,

and it's hard to have trust when you don't know what you're trusting in. We have to be willing to share as much as we can and trust that people will use that information to help themselves,” he said.

He believes leadership involves emotions because it’s all about people. “I think it involves earning people's respect so that they do things for you because they want to not because they have to,” he said.

“You can’t lead without the emotional side of things, without earning respect, leading by example and willing to fully accept responsibility (for your decisions).”

One thing that doesn’t help motivate people is bosses with big egos, said Jon Rose, president of Olympic Property Group, which has about 20 employees. He said too many times in leadership settings, especially in elected-office settings, the boss gets in the way.

“We focus on teamwork, competition and creativity,” he said. “There’s teamwork and if there’s an issue, we’ll talk about it as a group and I will challenge the group to throw out ideas. The focus is on coming up

with the best ideas, not the boss’ ego.”

The collaborative effort also requires a safety zone so people know they are free to have ideas, and his role is then to inspire employees to be better than they think they are. Rose said that often people get stifled by their insecurities.

“When people adjust their behavior and goals, they adjust them to the level of expectations and insecurity. I try to find ways to help people leave their comfort zone behind,” he said. “You need to keep people looking upwards and hold something up high for them (like the prize of achievement) to look upwards and not at each other, because employees like to compare themselves to others,” he said.

He sees OPG as an idea factory and he’ll often invite employees to “jam” with him over ideas. “Most ideas don’t work but if you don’t try anything, you won’t differentiate yourself,” he said, adding that the strategy is to try inexpensive, low-cost ideas, because they can have great results.

“Expect people to be successful and allow them to make mistakes.”

SKILLS GAP

levels of certification in the program areas that range from 12 credit hours to a twoyear Associate of Technical Arts degree.

The Air Washington program also includes "navigators" from regional Workforce Development Councils who work to connect students with job opportunities that match the skills training they receive.

Jim McKenna of Olympic Workforce Development Council says the grant to OC will put about 450 students in the training programs over the next two years, and many of those will be veterans from the area's naval bases who are making the transition out of the military and want to live and work in the Kitsap/Puget Sound region.

"They've got technical skills coming out," McKenna says. "They may need an eight-week composites class that gets them

ready for a job in the composites industry."

Fancher points out a perception problem that's another factor contributing to the skills gap, particularly with regard to manufacturing jobs.

"Young people don't tend to think of advanced manufacturing as a permanent career choice, even though it can pay well and be in a clean (workplace)," he says.

"These aren't all foundries or boring assembly line jobs."

In the Air Washington programs, "the focus is on aerospace, but they're talking about basically advanced manufacturing jobs ... clean manufacturing jobs. We're not talking about the stereotype of repetitive, assembly line work you see going on in Asia putting iPhones together."

from page 32 says motivating is about relationships. In the case of staff, that means taking the time to get to know them not only as professionals but also their personal lives and interests.

“It’s about respecting, trusting and helping people do their best,” Winter said.

“You need to build confidence in both staff and students, and give them autonomy to be themselves.”

Amy Igloi, owner of Amy’s on the Bay restaurant in Port Orchard, also believes in taking time to get to know her employees.

She makes it a point to check in with each person and acknowledge if they have personal issues going on in their lives, which makes it easier for them to “check it out at the door.”

“I look at my employees from the whole person perspective,” said Igloi, who has 17 on her staff. “We have a strong culture and that makes my job easier.”

Part of their culture is to take care of each other and build strong relationships.

from page 29 electronics, and manufacturing technology/precision machining.

"Since we started the grant funding, we've had 173 participants in the three programs," says Stephanie Thompson, Air Washington grant manager at OC. She adds that the latter two programs had faced the possibility of being eliminated in budget cuts before the Air Washington grant, which will provide funding through September 2014.

She says participating students include veterans who have recently completed military service, dislocated workers who have been on unemployment, workers who have manufacturing jobs and want to add to their skills, and recent high school graduates. They can complete various

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January 2013 Kitsap Peninsula Business Journal • KPBJ.com 33

Gary Lucy / CPA, CFP • Alison Fong • Brian Cox • Don Cox / CPA

2013 Honda Pilot: A very competent SUV for the whole family

By Bruce Caldwell The 2013 Honda Pilot is the brand’s big rig SUV (although it’s considered a midsize) that can haul eight passengers in secure comfort in all kinds of weather. It’s available in six trim levels so it can be outfitted from functional to fancy.

The Pilot leans toward the sensible side of the SUV spectrum, which is great for most consumers. It excels at quality, spaciousness and excellent engineering rather than flash and bling.

The Pilot was freshened for 2012, so 2013 changes are limited to minor trim level upgrades.

Walkaround: The 2013 Honda Pilot has a traditional rectangular SUV look along the lines of the boxier Mercedes GClass. It’s much more angular than either the Acura MDX or the Honda CR-V. That isn’t a bad thing, because many people like their SUVs to look like trucks rather than jacked-up sedans.

The box configuration provides tons of interior space. You can keep your cowboy hat on and still enjoy the sunroof. Adult headroom is great in all three seating rows.

Given the Pilot’s relatively big size a backup camera is standard. Our top-of-theline Touring model came with front and rear parking sensors. The rear view mirrors

tilt down to further aid backing. Visibility is excellent with the tall roof and big windows, so parking lot maneuverability wasn’t a problem.

Interior: We’ve come to expect a superior interior experience in all Hondas and Acuras and the Pilot was no exception.

Seating construction, materials, adjustability, comfort, and legroom are all excellent. Our test Pilot was the Touring model, so the heated leather driver’s seat was ten-way power adjustable and the front passenger seat was four-way power adjustable.

Front legroom is stretch-out generous.

Second row seating is more upright, but with plenty of knee room even with the front seats all the way back. There’s room for clunky snow boots underneath the front seats. The second row seats slide forward and back to adjust the third row legroom.

The second row’s flat floor makes the center position very livable. That position also puts you front and center for the excellent 9-inch flip-down DVD entertainment center and the rear HVAC. The entertainment screen and controls are overhead; the HVAC outlets and controls are in the back of the oversized front row console.

Adults can fit in the third row, but it’s

COME DRIVE THE NEW

locking differential feature that’s activated by a dashboard button. There is also Hill Start Assist, which isn’t as big a deal with an automatic transmission as with a manual, but it still inspires confidence in steep offroad situations. Ground clearance and approach/departure angles are impressive.

The AWD Pilots can traverse 18-inches of water, which could be helpful during seasonal downpours.

The engine features cylinder deactivation for better fuel economy. Our mixed driving conditions put us right around 17 mpg, which is the EPA city estimate.

Behind The Wheel: The 2013 Honda Pilot is a pleasant, but not very exciting vehicle to drive. Functionality tops fun, which is expected in an SUV this size. The horsepower is on the low side of the midsize SUV class, but the engine’s refinement makes it seem quicker than mere numbers would suggest.

The freeway ride is smooth and comfortable. Brakes are good and the suspension is a fine compromise between mostly paved driving and occasional dirt road jaunts. The Pilot looks tall, but it never felt top-heavy or unstable.

Whines: The Pilot is a little thirsty, but it runs on regular grade gas.

Bottom Line: The 2013 Honda Pilot is a very solid vehicle and a solid value. The spacious, multi-purpose interior is its most visible attribute, but the underlying quality construction and engineering add the longterm value and customer satisfaction that defines Honda vehicles.

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2013 HONDA PILOT

tight on knees. Kids are perfect for the rear row. The third row is considered 3-person spacious, but it’s best for three kids or two adults. Seat padding is excellent; many third row SUVs skimp here. All three rows of seating have side curtain airbags.

Pilot’s boxy design is great for cargo.

There is ample room behind the third row and when both rows are down the adjective jumps to cavernous. Both back rows split 60/40 for added versatility. The cargo floor is flat with a slight upward slope over the folded seats. There is an excellent plastic storage bin under the rear cargo floor. The power tailgate has a lift-up glass hatch for loading smaller items.

Miscellaneous interior storage is outstanding. Door bins are big and cup holder/bottle notches are plentiful. Even the third row has storage bins on both sides.

The front center console is huge.

Under The Hood: A 3.5-liter V-6 engine is the sole powerplant, but with an output of 250 horsepower and 253 lb-ft of torque it provides power for a towing capacity up to 4,500 pounds. The Pilot’s curb weight is listed as 4,300 pounds. The only transmission is a 5-speed automatic, which is smooth and efficient. Pilots can be had in either front-wheel-drive or all-wheeldrive like our tester. For resale reasons and overall performance we highly recommend the AWD Pilot.

The engine is typically very smooth and quiet as is the norm for Honda motors. An added bonus is the Active Noise Cancellation System. The seamless Honda VTM-4 four-wheel-drive system has a

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New Nissan Pathfinder becomes a unibody crossover — again bolsters and a well-cushioned bottom, with leather standard with the SL and Platinum trims. The old dashboard’s sharp edges are history, with soft-touch materials on nearly every surface. Thoughtful touches like padded leather on the doors make this Pathfinder seem more like a refined luxury sedan than a rugged off-roader.

The family-friendly second row allows you to slide the outboard passenger seat forward without needing to remove a child seat. It also offers enough leg and headroom for most adults, along with conveniences like cupholders in the door armrests and the ability to slide and recline. All seats behind the first row fold flat, revealing 79.8 cubic feet of cargo space. There’s 16 cubic feet with all seats in position, compared to 79.2 and 16.5 cubic feet in the 2012 Pathfinder.

In terms of technology, the 2013 Pathfinder abounds in it, starting with Nissan’s Around View Monitor technology, which was perfected by Infiniti, Nissan’s luxury brand. It displays views of every angle on all sides of the vehicle — excellent when parking or maneuvering in tight spaces.

Other amenities include a full navigation/infotainment system, kickass Bose premium audio (available on SL and Platinum trims only), a tri-zone DVD entertainment system, along with a host of alphanumeric safety systems and Nissan’s new Easy-Fill tire inflation system that honks the horn when tires are inflated to their optimum specification.

Under The Hood: Nissan’s 3.5-liter VQ35DE workhorse V6 — arguably the best powerplant since the small-block Chevy — is the only engine available. It delivers 260 horses at 6,400 rpm and 240 pound-feet of torque at 4,400 rpm.

The old Pathfinder’s conventional, fivespeed automatic has been replaced with Nissan’s revamped, and much improved Xtronic Continuously Variable Transmission (CVT). The new CVT is actually a surprisingly good match for the engine — and much better than the previous version which is used in the Pathfinder’s sibling Infiniti JX. Nissan used the same basic formula that improved fuel economy on the 2013 Altima sedan, with the CVT shouldering much of the burden. The V6 has been pretty much left alone, while the transmission’s 40percent reduction in internal friction and use of a drive chain specifically designed for the Pathfinder, improves overall performance. Nissan’s All-Mode 4x4-i system allows drivers to switch between front — and all-wheel drive on the fly, as well as featuring a fully automatic mode, and is available on all models.

The Pathfinder boasts best-in-class sixcylinder fuel economy — which for the front-wheel-drive version is 26/highway and 20/city. AWD numbers are 25 and 19.

Despite criticism over using a CVT on an SUV, there’s much to say for a tranny only revving the engine to 1,800 rpm’s while driving 70 miles per hour.

Behind The Wheel: We test drove the

Pathfinder on the roads in and around Napa and Sonoma Valleys, as well as on some beautiful stretches of asphalt hugging the California coast, and then did some offroading on private land just outside of Petaluma.

Overall, there’s a lot to like about this vehicle.

We drove both the front- and allwheel-drive versions. Both deliver a solid, smooth, comfortable and stable ride, that’s relatively quiet. And even with the CVT, it didn’t disappoint on some of the more engaging terrain, although in all fairness to both machine, and potential buyers, while as adequate as any crossover, this is not the go-anywhere off-road enthusiast’s machine the previous version was. But it isn’t meant to be either.

The car-based platform leaves that traditional truck feeling and ride behind, instead, delivering a refined, dialed-in driving experience. The steering is a bit light for my personal taste, but brakes,

throttle response and handling are all good, and the Pathfinder just feels more nimble than its competitors.

Whines: Visibility is good, although the wide A-pillars make vision around some corners slightly problematic. However, some competitors have larger blind spots.

Bottom Line: Regardless of how you define a crossover SUV, The 2013 Nissan Pathfinder is a winner in the three-row, familyfriendly segment. It offers a well-appointed cabin, lots of functionality and decent driving dynamics packaged in a sleek new wrapper, We don’t see how this new Pathfinder could be anything less than successful.

THE NEW 2013

NISSAN PATHFINDER

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January 2013 Kitsap Peninsula Business Journal • KPBJ.com 35

By Lary Coppola The term “Crossover SUV” has become standard nomenclature throughout the automotive industry, without a clear definition of what, exactly, makes up such a vehicle. According to Webster, the definition of “crossover” can refer to almost anything blending various elements that create something popular with a new audience. In automotive terms, crossovers have become a blend of minivans, family sedans and traditional Sport Utility Vehicles (SUV), with manufacturers constantly seeking new audiences for these feats of engineering.

Truck-based, body-on-frame vehicles like Nissan’s own XTerra, have always defined “real” SUVs. However, is the unibody Jeep Grand Cherokee, which arguably offers as much off-road capability, a crossover or a “real” SUV? Most would agree it is. The line between crossovers and “real” SUVs has become so blurred it’s hard for the average consumer to know which is which.

The 2013 Pathfinder, which is available in both Front-Wheel and All-Wheel Drive (AWD) unibody configurations — defines the current crossover state-of-the art. It’s loaded with creature comforts and features never before found in the rugged, body-onframe Pathfinder of days past.

Walkaround: I have to admit, when I saw the first media photos of the 2013 Pathfinder, I was less than impressed.

However, photography doesn’t quite do the all-new Pathfinder justice. This model doesn’t have the same boxy styling, or truck grille, which linked the outgoing Pathfinder to the Frontier and Titan pickups as well as the larger Armada. Like most newer, carbased crossovers, the styling is softer and more rounded, with a strong character line running the length of the body, flowing from the headlights down the hood, underneath the beltline and into the LED tail lights.

The front fascia stylizes the previous truck look, and I expect you may see the Frontier and Titan sport similar changes in the future.

The 2013 Pathfinder rides on the same platform as the Infiniti JX, and is slightly larger in all dimensions than the previous version. Its 114.2-inch wheelbase is two inches longer than before with the body itself almost five total inches longer, and 4.4 inches wider.

The height is a full three inches lower, two of which were gained by reducing ground clearance to 6.5-inches for better ingress and egress.

Depending on the trim level, thanks to the switch to lighter unibody construction, the new Pathfinder has shed as much as 500 pounds from the vehicle’s overall mass.

Interior: Nissan didn’t skimp on interior size or amenities, to achieve that weight reduction, delivering a three-row cabin that’s comfortable, spacious, airy and well-appointed. It successfully makes the transition from traditional SUV to more refined crossover.

The seats are comfortable, with wide

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36 • Kitsap Peninsula Business Journal • KPBJ.com January 2013

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Time is right for Silverdale to incorporate

By Randy Biegenwald In February 2012, the Growth Management Hearings Board of Central Puget Sound stated in footnote 11 of their ruling,”…Silverdale is a densely developed commercial hub, already thoroughly urban with urban services. The GMA contemplates that cities should provide governmental services in urban areas. RCW 36.70A.110: “In general, cities are the units of local government most appropriate to provide urban governmental services.” Thus incorporation of Silverdale is appropriate.”

Silverdale is the only unincorporated Regional Growth Center recognized by the Puget Sound Regional Council. It is comprised of leaders from over 80 entities, including four counties, their cities and towns, ports, state, and local transportation agencies and tribal governments. This council was established to assure coordination and compliance of the Growth Management Act (GMA) and comprehensive planning within a four-county area (King, Pierce, Snohomish and Kitsap).

According to the Municipal Services & Research Center, Silverdale could be the 55th-largest city out of 288 in Washington state if it were to incorporate.

It’s been 13 years since the last incorporation attempt for Silverdale and understandably some people are concerned that incorporation will cause their taxes to rise. They mistakenly think they will be required to pay for “another layer of government.”

The areas of authority and responsibility of municipal government are instead of the county government, not in addition to it. There is nothing inherent in incorporating a community that would cause overall taxes to rise.

According to the Municipal Research and Services Center, most cities incorporated postGMA experienced no tax increases. Some even saw small declines. If taxes were to go up, it will only

be at the will of the local voters. Silverdale will be in sound financial condition with its existing tax base.

Silverdale is, and has been now for a number of years, an urban area and county officials expect Silverdale to be incorporated. Until it is, many issues that are the result of Silverdale’s growth over the last three decades will largely go unresolved. These issues could be properly addressed by a local municipal government. Had this happened as the problems began to arise, the necessary improvements could have been paid for years ago with existing Silverdale tax dollars.

When I set up my practice in Silverdale early in 1985, the mall had not yet opened and there was only one traffic light in town. Silverdale Way narrowed to two lanes just before Waaga Way to the north and Munson Street to the south. To the west, Anderson Hill Road was only two lanes and Bucklin Hill Road narrowed to two lanes just before the Clear Creek Bridge to the east. The population was less than 6,000 and traffic was not a serious problem — yet. That was 28 years ago.

Today, Silverdale Way and Bucklin Hill Road are essentially unchanged. Yet the traffic, especially during the holiday shopping season and peak commuting time, has grown over the years.

Because of my profession, each winter I have the pleasure of meeting with several hundred clients.

Each year these clients from all over the county tell me they avoid Silverdale because of the traffic.

They are not happy about it and I am sure the merchants in Silverdale are not either. Many of those people live here in this community.

It is reasonable to expect people to act in their own self-interest. I believe, when decisions are made locally affecting the future of Silverdale, the voters will generally act in the best interest of the community.

A review of post-GMA incorporations shows that, time after time, urban areas are improved by incorporation. If you would suffer a metaphor, consider how well a business that is managed locally performs as opposed to one with absentee management. Local voters are far less likely to tolerate mismanagement of their tax dollars.

I happen to live in the proposed city, but even if I did not, as was the case in 1999, I would still support incorporation. In February, Silverdale’s voters will have their say and I hope that, finally, they give themselves the right to vote.

• Randy Biegenwald is a Certified Public Accountant in private practice in Silverdale since 1985.

Leaning into 2013

By John Powers Kitsap Economic Development Alliance As I size up prospects for the New Year, I bear in mind that it’s been more than five years since the U.S. economy plummeted into the “Great Recession”, and about three years since we began a long, attenuated “recovery.”

As economic cycles go, this has been the most disruptive cycle (steepest decline, most shallow rise) in my 40 years in commerce.

Unusual national and global circumstances make it most difficult to forecast local economic performance in 2013. Nonetheless, from my perspective, Kitsap is in the turn and beginning to accelerate out of the corner; in

fact, I’m sensing our local and regional economy is ahead of the national curve.

Employment has steadily increased in Kitsap over the past year. Unemployment fell to a five-year low of 6.6 percent in the third quarter of 2012. Capital formation, both debt and equity, is on the rise and local banks are making business loans. Consumer debt is down and savings up. Housing is beginning to rebound; and, consumer confidence is strengthening.

Local sales tax revenues, critical to sustaining basic public services, are increasing.

As 2012 drew to a close, our largest employer, 2013, page 37

Focus is on private donors as need grows $8.3 billion, the top 10 U.S. foundations gave $8.1 billion, and the top 10 corporate foundations donated $8.7 billion.

Microsoft co-founder Paul Allen donated $372.6 million in 2011, including a $295 million gift to his Paul G. Allen Family Foundation and $70 million to the Allen Institute for Brain Science.

Like Allen, many wealthy people and companies form their own foundations. The Bill & Melinda Gates Foundation has a $37 billion endowment that funds their global charity efforts. In 2010, Gates and business magnate Warren Buffett announced that 40 of America's richest people — including themselves — had agreed to sign a "Giving Pledge" to donate at least half their wealth to charity, which works out to an estimated $115 billion.

2013

On the service side of the local economic equation, Harrison Medical Center announced a pending affiliation with Tacoma-based Franciscan Health Systems which, among other things, will help accelerate the rate at which Harrison delivers state-of-the-art health care throughout the West Sound, including recently announced plans to open a multi-specialty clinic and 24/7 urgent care facility on Bainbridge Island. Port Madison Enterprises also announced plans for a multiyear, multimillion-dollar expansion of the Clearwater Lodge and Resort, boosting our valuable tourism industry. And, two of our local community financial institutions are approaching huge milestones as their balance sheets reflect nearly $1 billion dollars in assets — congratulations Kitsap Bank and Kitsap Credit Union.

On the ever important education and workforce development news, Olympic College doubled its engineering baccalaureate cohort with WSU; and, after securing a $2 million Air Washington Department of Labor Grant, OC initiated several new certificate programs in a variety of advanced manufacturing skills, enhancing Kitsap’s position to attract companies and contribute to the aerospace and defense build-up in our region.

As you can see, from my vantage point as the executive director of the Kitsap Economic Development Alliance, I have reason to be optimistic — cautiously, yet realistically optimistic — that 2013 holds sound promise for our local economy and continued job growth in Kitsap and throughout the Central Puget Sound Regional Economy.

Nevertheless, it’s generally good practice to get a second opinion on matters of significant import, particularly when that opinion comes from a renowned expert — an expert like John Mitchell, Ph D, former chief economist for US Bank Corp. So I invite you to join me and Dr. Mitchell, and hundreds of your community peers at our Kitsap Economic Development Alliance’s 15th annual Economic Forecast and Decision Makers Breakfast on Jan. 29 at the Kitsap Conference Center. You may register online at www.kitsapeda.org.

See you on the 29th as together we figure out just how far to lean into 2013…

On Kitsap!

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

from page 36 the Puget Sound Naval Shipyard, announced plans to hire an additional 500 full-time workers early in the new year. The largest military construction project in the country is under way at Naval Base Kitsap–Bangor. This $750 million project is expected to create thousands of new jobs in our region over the next five years. Recently, KEDA’s government contracting (procurement technical assistance) classes have been busting at the seams. In 2012 our local PTAC business clients garnered over $35 million in contract work with the Navy.

In addition to robust activity in our defense sector, Kitsap’s maritime, manufacturing, technology and service sectors are growing.

SAFE Boats increased its workforce 30 percent in the last year and is expected to continue to grow to 400-plus employees in 2013.

Vigor Industrial has rapidly become the largest private shipbuilder on the West Coast. Although headquartered in Portland, over half of Vigor’s workforce (nearly 1,200 workers), is deployed and live in the Central Puget Sound Region — with nearly a quarter of those men and women assigned to Vigor’s operations in Bremerton.

Local advanced manufacturers Watson, Leader International, Tru-life, and Sage are expanding as well. And, aerospace companies in our region are beginning to explore opportunities in Kitsap as the industry’s supply chain demands experience unprecedented growth.

On the technology front, Kitsap is home to some of the most dynamic and fast-growing companies in our region. ATS of Silverdale has nearly doubled in size this past year as it secured some very large projects from the U.S. Patent Office and the Navy. Paladin Data Systems of Poulsbo has launched new cloud-based municipal planning/mapping/capital project management tools and is making significant gains with “SmartGov” in this new market. Bainbridgebased Avalara is among the fastest-growing ecommerce companies (sales tax management) in the United States, employing more than 300 at its global headquarters in Kitsap, many of which travel into Kitsap County from around the region.

Finally, 2012 saw Differential Energy Global, Ltd of Port Orchard unveil cutting-edge LED replacement lamp products that won unparalleled acclaim at the annual International LightFair trade show last spring.

Washington companies that gave generously last year include Microsoft ($105 million), Intel ($90.6 million), Starbucks ($30.5 million) and PACCAR ($5.85 million).

As impressive as those numbers are, charitable giving is not about the "big guys," it's about the local folks and small employers who consistently and quietly give back to their communities.

For example, Ed Schweitzer, who started his engineering company in his garage in 1982, now runs a multimillion dollar engineering laboratory that employs 1,700 people in Pullman. A partial list of the Schweitzer family largess includes $2.4 million to build and upgrade the city's aquatic center, $1.7 million for the Girl Scouts and $1 million to the Palouse Discovery Science Center.

In Western Washington, The Fulcrum Foundation depends on local donors and patrons to provide low-income families with tuition assistance so their kids can attend Catholic schools. In every community, fundraising drives solicit local business owners for donations for the Salvation Army, United Way and families of fallen police officers.

In Olympia, The Rants Group, a property management company owned by father and son Ron and Pat Rants, has led drives over the years to support the local Boys & Girls Clubs.

In Grays Harbor, the Quigg family, owners of Quigg Bros., Inc., led the fundraising to build a new YMCA.

January 2013 Kitsap Peninsula Business Journal • KPBJ.com 37

By Don C. Brunell, Association of Washington Business With all the class warfare these days, "rich" has become a four-letter word. To hear some tell it, high-income earners are greedy misers who don't pay their "fair share."

Well, not quite.

When it comes to taxes, the IRS reports that, in 2009, the latest year figures are available; the top 1 percent earned 17 percent of all income and paid 37 percent of federal income taxes.

As for contributing to charity, Americans are a generous people. According to the Urban Institute's Center on Nonprofits and Philanthropy, private donors contributed $202 billion to charities in 2010. The Chronicle of Philanthropy reports that last year the top 10 wealthy individuals donated

Ironically, these very donations are now being targeted by the federal government. In search of more tax revenue, President Obama is proposing to reduce the federal income tax deduction wealthy people get for their charitable gifts from 35 percent to 28 percent.

Since many small business owners file their taxes as individuals, they're defined as "wealthy." Some Republicans have suggested that, instead of searching for tax "loopholes" to close, the feds could just impose a $50,000 cap on tax deductions.

Those proposals sparked a firestorm of protests from charity managers who argue that limiting tax deductions for charitable donations would undercut support at a time when the need is greater than ever. While the changes target "the rich," the greatest impact would fall on the poor.

At its core, the notion of severely limiting charitable tax deductions presumes that the federal government will do a better job helping community groups and causes than the local people who live there.

Do we really think that's true?

• Don Brunell is president of the Association of Washington Business. Formed in 1904, AWB is Washington’s oldest and largest statewide business association, and includes more than 8,100 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.

Things that make you say, ‘Hmmm…’

One entertaining thing about writing this column, is the wide variety of so-called “news” items that cross my desk. Some are actually interesting, some are just plain stupid, others are nothing more than blatant advertising someone hopes I’m dumb enough to think is news and will hopefully write about — but some, just make me scratch my head and say, “Hmmm…”

Like this particular item that I’m not sure belongs in the “Truth is Stranger Than Fiction, Because Fiction Has To Make Sense” file, or the “I Couldn’t Make This Sh*t Up If My Life Depended On It” file.

Either way, a trade group called the Low Cost Airline Association (LCAA) recently announced a new, groundbreaking, economy potty seat they say will revolutionize air travel by offering an “exciting new perk” for low-cost airline passengers.

According to the group, the newest “trend” being embraced by the nation's low-cost carriers is a new seating design, which includes a flushable toilet at each individual passenger seat, that’s reportedly awaiting approval from the FAA. A decision is expected this month.

"We hit the jackpot here. It's a win-win for everyone,” stated the CEO of a prominent American low-cost carrier. I found it somewhat amusing that the LCAA intentionally didn’t identify him — or his airline — by name in the press release. I suspect they probably didn’t want to be accused of playing favorites by giving just one of their members the enormously valuable free publicity such monumental

news is certain to generate.

“Not only will passengers not have to disturb their seat mates by crawling over them to get to the bathroom, but we can also increase revenue by adding five additional rows where the lavatories once where," bragged the mystery LARY COPPOLA CEO. The seat The Last Word design will feature a swivel back cushion seat for easy lifting, with the flushing device installed next to the standard armrest volume control knobs at every seat. "The seats will look just like a normal economy class seat but the cushion lifts up revealing the toilet," claims Low Cost Airline Association president and spokesperson Albert Corvales. He also noted that the cushions can still be used as flotation devices in the event the airliner has to make an emergency water landing, because the cushions easily detach from their swivel if need be. That’s comforting to know.

But wait, here’s even more positive information about this groundbreaking innovation. In addition to the new seat, each aircraft will also be equipped with a state of the art vacuuming system that removes the waste from the plane in flight.

"This new system will increase our fleet's fuel efficiency by eliminating the additional weight caused by waste build-up, especially on those longer flights," boasted Corvales.

“The toilets won't even have water in

them." He conveniently neglected to comment on what actually happens to the waste after it’s been vacuumed away, or if there’s any danger to people on the ground, or to the environment.

However, the convenience of using your own seat when nature calls will come at a price. Many of the carriers who plan to install the new seats during the second quarter of 2013 also plan to up the ante on such personal luxury by excluding toilet paper. "We feel 25 cents a square is sufficient,” crowed Corvales. “We want to stay eco-friendly also, and feel if we made it free, passengers may overuse the toilet paper.” There’s no word from the LCAA on whether or not passengers will be allowed to bring their own TP on board, nor anything from the TSA on the allowable amount that could be included with your carry-on since a full roll won’t fit in a ziplock bag.

Meanwhile, opponents claim this new luxury will cause a severe health risk to all passengers on board, while advocates hotly dispute that. "We have no intention of ignoring the sanitary risks,” revealed Corvales. “We will be offering other items such as personal hand sanitizers, privacy blankets and air fresheners — at an additional cost to those who may need them.”

"We were under a lot of scrutiny from the flying public about our outrageous bag fees and felt it was time to reward them with a convenient amenity they are sure to enjoy," Corvales affirmed — with what I assume was a straight face.

For even more information on this

revolutionary new innovation, visit www.letsflycheaper.com/.

• • • More than enough has been written about the absolute tragedy at Newtown. It’s something that should have never been allowed to happen. However, what’s come out of it is a new, heightened awareness about the issue of mental health — something long buried by society as one of those problems everyone acknowledges needs attention, but no one wants to talk about, or pay for.

However, what I found despicably unconscionable was that within 60 minutes of the very first report, gun control advocates, aided by a willing Lamestream Media, had deliberately and unashamedly politicized this horrible tragedy to further their own political agenda.

No matter how you feel about gun control, to transparently exploit such a heartbreaking catastrophe for naked political gain even before the identity and number of victims had been confirmed; before their killer had been identified; or before the authorities knew for certain what had actually happened, is more than just patently contemptible, it’s simply flat-out wrong.

Once again, just as it did in the presidential election, the Lamestream Media has far exceeded its purview by influencing the news and shaping the debate, with selective coverage, rather than simply and unbiasedly reporting what happened in a factual manner. Doing that would allow each American to make up their own mind about what the outcome of any resulting national debate should be — not having it made up for us by controlling the information we receive from ideological zealots who believe they know what’s best for us.

38 • Kitsap Peninsula Business Journal • KPBJ.com January 2013

Intriguing questions waiting to be answered in 2013 Intriguing questions abound that will be answered in the new year. Some of them political, though 2013 will be blessedly free of major elections and the bombardment of foul attack ads they bring.

There will be a couple significant 2013 elections in these parts: Will voters in February decide it's time for Silverdale to incorporate?

Will the Democrat appointee who replaces Derek Kilmer in the state Senate for 2013 be able to hold that 26th District seat (for the remaining year of Kilmer's term) next November running against Rep. Jan Angel, the Port Orchard Republican who easily won re-election to her third House term representing the 26th?

It won't be decided by voters, but we don't have long to wait for an answer to one of the most compelling questions in the new year: How far can the Seahawks go in the NFL playoffs?

And will Jay Inslee prove to be as competent a new governor as rookie Russell Wilson has been at quarterback?

How will this year's state budget

negotiations — bound to be more contentious than ever because the legislature must show progress toward achieving court ordered adequate school funding — be impacted by the power shift in the Senate, where two rogue Democrats, Rodney Tom and Tim Sheldon, will TIM KELLY form a new majority Editor’s View coalition with Republicans? Is Tom, a former Republican who switched parties in 2006 and represents one of the state's most affluent districts in Seattle's eastside suburbs, just an egotist who wants to be Senate majority leader? Or is he a political maverick taking a controversial path to effectively reshape the state budget?

Will state ferry service be further diminished? Will the much-hyped Port Orchard Indoor Market come to fruition and, with completion of the long-promised Myrhe's restoration, revitalize a rundown

central block on Bay Street? Will the state be able to structure an effective system of legalized marijuana commerce without a federal crackdown? Will KEDA/KADA move beyond strategizing and singing the praises of Kitsap potential, and achieve any real, substantial economic development that brings jobs in aerospace, manufacturing or other industries?

And will a private operator be able to turn the Bremerton Marina into a profitable enterprise?

Port of Bremerton commissioners may decide Jan. 8 to have a private business take over the decidedly unprofitable marina. The commissioners do have the option of rejecting all responses to the port's RFP for marina management and keeping the status quo.

That's not tenable, though, when your $34 million marina is losing about $400,000 a year.

The key question in this expected changeover is whether the RFP allows a private operator enough leeway to turn things around and eventually turn a profit.

Some folks considering the task have wondered as much, asking how the port

expects to see a difference if a private firm has to run the marina in the same way that’s led to huge losses.

Jon Thompson, who has ties to marinas in Poulsbo and Bainbridge Island but opted not to get in the game for Bremerton, noted that the RFP requires an operator to keep all the union employees at the marina, which leaves few options for cutting expenses.

“They operate like a government entity, and government entities spend a lot of money,” he observed about the port. “Most of us in the private sector, we can’t operate that way.”

Commissioners Larry Stokes, Roger Zabinski and Axel Strakeljahn inherited this marina problem from previous port officials who passed the controversial "stealth tax" to build it. But it's their quandary now, and if they believe the solution is turning the marina over to private management, then they ought to remember that one definition of insanity is doing the same thing over and over again, and expecting different results.

• Tim Kelly is editor of the Kitsap Peninsula Business Journal.

January 2013 Kitsap Peninsula Business Journal • KPBJ.com 39