Kitsap Peninsula Business Journal 26/09

September 2013 Vol. 26 No. 9

The Voice of Kitsap Business since 1988

Community-focused housing projects p. 6

Special trees made into art A roundabout on SR 305? p. 32

Inside Special Reports: Construction, pp 6-17 People, pg 2 Financial, pp 24, 25 Human Resources, pg 28 Technology, pg 31 Automotive, pp 34, 35 Editorial, pp 36-38 Home Builders Newsletter, pp 19-22

By Tim Kelly, Editor It started with a tree that was going to be cut down six years ago to make way for the parking lot of a Rite Aid store being built in a Northern California town. The landowner selling his property for the development knew Brian Beaulaurier and called to see if he’d be interested in buying the tree.

He was, because this wasn’t just any tree; it was an enormous Bastogne walnut tree that w as a century and a half old.

“It had been planted by this gentleman’s great-grandfather in 1865,” Beaulaurier

Tim Kelly photo

Brian Beaulaurier, left, and John Breslin stand next to trunk sections of a sequoia tree at Special Trees Industries in Bremerton.

OfficeXpats creates a business hub for independents

said. “Literally within days of when Rite Aid was going to start construction, I harvested that tree.”

Six huge slabs milled from the Bastogne’s massive trunk ultimately were made into custom tables, which are not so much Special trees, page 10

Rodika Tollefson photo

Alice David, a jewelry maker who is a member of the OfficeXpats co-working community, makes preparations for a “steam punk” party the group did recently as part of an after-hours gathering.

By Rodika Tollefson When Tobias Eigen returned to Bainbridge Island after two years in Germany, the IT strategy consultant started working from home. But he felt isolated since he had a virtual team — plus, at home, he had distractions like chores.

These days, Eigen works alongside plenty of co-workers, except they are all independent agents like him, each working for a different business. He spends five days in an office without having an office, thanks to co-working.

Four days a week, he can be found at OfficeXpats on Bainbridge Island, either busy on his laptop or mingling with his

Cover Story, page 4

Port of Allyn hires new director The Port of Allyn board of commissioners hired Rusty Bonser as the new executive director, effective in September. He succeeds Bonnie Knight, who retired after 15 years with the port but will continue on a shortterm contract to help with the transition.

Bonser’s most recent job was with the Okanogan County Dispute Resolution Center, where he was executive director since 2009. His background includes land planning and economic development in

two other states besides Washington, both in the public and private sectors.

Judy Scott, chair of the port commission, said Bonser was selected out of 39 candidates, including five finalists, because of his economic development and conflict resolution experience.

“He’s had the most qualifications for the goals of the port,” she said. “He’ll add more expertise to the job.”

One of the port’s goals, she said, is to

First Federal appoints chief banking officer create a light industrial park in the North Mason area and bring more jobs. “We’d like to bring revenue to the port rather than rely on taxpayers,” she said.

Bonser said he was attracted to the port job because of the opportunities he sees for the Allyn and Belfair areas. “The job that has been done (at the port) has been impressive and I want to build on it,” he said. “I see a lot of potential (for development) now that the economy is recovering.”

PORT ANGELES — First Federal has announced the appointment of Kelly Liske as Executive Vice President and Chief Banking Officer.

Liske is responsible for direction and management of commercial, mortgage and consumer lending, commercial and Kelly Liske consumer deposit products, and nondeposit investments. She will also direct bankwide sales and service efforts designed to meet First Federal customers’ financial needs.

She has a bachelor’s degree in accounting from Western Washington University and over 18 years of banking experience. She joined First Federal in 2006 as branch manager in Port Townsend a nd was later promoted to Commercial Relationship Manager.

First Federal is a Washingtonchartered mutual savings bank primarily serving the North Olympic Peninsula region through its nine full-service branches.

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

1st Security Bank promotes staffer to branch manager in Poulsbo Gwen Woods has been promoted to the position of branch manager for the 1st Security Bank branch in Poulsbo.

A 30-year resident of Port Orchard, Woods had joined the bank in February of this year as a personal banker.

“I’m excited to join the bank at a time when we are committed to Gwen Woods supporting many local events during the summer months,” said Woods, who’s a member of various community groups.

Mountlake Terrace-based 1st Security Bank has several branches in the greater Seattle area, and the Poulsbo branch is its only one in Kitsap County.

Retired journalist publishes first book Longtime South Kitsap writer Rosie Atkinson of Port Orchard has published her first book, which is titled Albin's Letters.

The book is available on Amazon.com in both paperback and Kindle editions.

Atkinson is a former reporter and columnist for local newspapers and magazines, and this is her Rosie Atkinson first book.

Group forms to support ballot measure on change to city manager

By Tim Kelly, Editor Two former city councilmen are part of a group campaigning for passage of a ballot measure to change Port Orchard’s form of government to a council-city manager system.

Fred Olin, who served one term on the council from 2007-11, is spearheading the Citizens for Professional Government group, which also includes several local business professionals. Olin said they support having a city manager because it would provide more continuity in how the city operates, with “no four-year interruption” like there is in the transition whenever a new mayor takes office.

If voters approve the change in November’s election, the City Council would hire a manager who would oversee all city departments and operations, and would be accountable to the council.

Supporters of the ballot measure contend that having a city manager position that’s not an elected political office would mean the manager could focus more effectively on streamlining city government, local economic development, and retention of department heads and other top staff to create more stability.

“I’m bothered by the extent of really good, really competent people we have lost over the last 12 years,” Olin said, dating to when longtime city engineer and public works director Larry Curles was replaced amid disputes with city officials after a new mayor took office.

More recently, the city’s highly regarded former planning and development director, James Weaver, left

last year to take a job on Bainbridge Island, and Al Townsend, Port Orchard’s police chief since 1999, took the chief’s job in Poulsbo earlier this year.

Jim Colebank, who resigned from the City Council recently midway through his second term because he moved outside city limits, was one of six council members who voted to put the proposed change on the November ballot. He is now part of the Citizens for Professional Government group.

The ballot measure has two parts for voters to consider, though they will cast a vote either for or against the measure as a whole. Besides changing to a councilmanager form of government, approval of the ballot measure would change Port Orchard’s administrative status to a noncharter code city, which is the classification of most cities in Washington.

The measure’s second part would change the system of government from having an elected mayor who is the city’s chief administrator but is not a voting member of the City Council, to the council-city manager system.

If the change is approved in November, it would require new elections in February for all seven council seats.

Olin said that shows how much the current council members believe in the benefits of the proposed change, if they’re willing to have to run for re-election if it passes.

New council elections, if needed, would be for staggered terms so all positions would not be on the ballot at the same time in future elections. There also

Port Orchard City Council fills open seat

To that end, the group’s campaign brochure highlights city managers from six communities around the region as examples of how professional administrators have improved local governments.

Another member of the campaign group, Dick Ziglar, said the Port Orchard City Council has come up with some good plans for the city, particularly for the downtown area, “but we’ve failed in execution.”

“I think a city manager would provide professional management to guide that execution, and put the City Council in a better position to provide leadership” in setting policy, he said.

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Couple recognized with award from 35th Dist. Democrats Bill and Judy Matchett of Seabeck recently received a Lifetime Achievement Award from the 35th Legislative District Democrats.

The award was presented to the couple at the annual picnic of the Kitsap County Democrats on Aug. 11.

The Matchetts have been accorded similar recognition by the West Sound Conservation Council and the Kitsap League of Women Voters. They were also founding members of the Hood Canal Environmental Council.

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August 2013 Kitsap Peninsula Business Journal • KPBJ.com 3

Jeffrey Cartwright will join the Port Orchard City Council after he was appointed to fill the unexpired term of Jim Colebank, who resigned his seat at the end of July because he moved outside city limits.

The council announced its appointment of Cartwright, who is human resources director at Kitsap Transit, at the Aug. 27 council meeting.

He was one of three finalists selected after the council interviewed 10 applicants for the open seat. The three finalists had second interviews before the council made its decision.

All six council members at the Aug. 27 meeting approved Cartwright’s appointment for the term that runs through the end of 2015. Councilman John Clauson, who is executive director of Kitsap Transit, was not at the meeting.

The other two finalists were Kim Punt and Trish Tierney. Punt, who owns a local insurance agency, had previously filed to run in the November election for the seat being vacated by longtime Councilwoman Carolyn Powers, who is not seeking re-election. Punt’s opponent in the fall election is Port Orchad attorney Bek Ashby.

would still be a designated mayor, but the council would select one of its members to fill the mostly ceremonial position on a rotating basis.

A different mayor has been elected in Port Orchard in each of the last four elections. But Citizens for Professional Government won’t be talking about any of those individuals when the group starts doorbelling with information about the ballot measure.

“We want to keep the focus squarely on providing a highly trained, competent and professional city manager,” said Dick Davis, a local community activist who lives in McCormick Woods and is one of the group’s organizers.

wanted not only to provide that support but also build a from page 1 virtual community around those people. When he and “co-workers.” He also spends one day a Schneider, who were week at the HUB in Seattle, another cocolleagues at a company in working location.

Seattle, learned about the idea “My biggest fascination with it is the of co-working, they saw a synergies that come out of that for social business opportunity. enterprises,” said Eigen, who does a lot of “I was sold, I thought it was work with nonprofits, including one he a cool idea,” Omens said. “This founded for organizations in Africa, called online community could Kabissa. “I love the access to great people actually have a location.” and I feel like I can contribute as well.”

The pair hired a business The idea of co-working — independent consultant in November 2010, workers, telecommuters or freelancers working on financial models, sharing an office together — was the scouting a location — theirs is brainchild of a computer programmer in within walking distance from San Francisco, who created the first cothe ferry, in the Bainbridge working space eight years ago. Since then, it Pavilion — and remodeling. has become popular around When national co-working day the world. Some estimates put rolled around in July 2011, the number of co-working “There are so they weren’t quite ready for sites at 800 or more two years many amenities launch but opened up the site ago, but the concept has built here and you for a free day and a barbecue, even stronger momentum can use a little then closed it for a few more since then.

Rodika Tollefson photo weeks to finish their tenant For OfficeXpats members bit or a lot.”

OfficeXpats offers different levels of improvements. like Eigen, a big draw is the membership for people who want to use In the two years since, — Alice David, resources the co-workers not the co-working space on Bainbridge Schneider and Omens have only get from each other but OfficeXpats member Island. been making changes to their also from workshops, meetbusiness, both physical (the ups and other events. deck space is new, for example) “OfficeXpats is a business but it’s almost OfficeXpats Co-working and Conference and operational. One of their newest ideas like a library and people can get things (and Center with Jason Omens. “We have more is to offer six dedicated spaces at a certain information) here they can’t get anywhere,” than 120 members and a lot are entry-level membership level for those who want a Eigen said. because they’re here for the business permanent spot.

Among the resources they can tap, support and collaboration, not as much for “This will be a little bit of a cultural shift depending on their membership level, are co-working.” for us,” Schneider said. But not difficult to conference rooms for client meetings and a About 20 percent of the members come embrace, perhaps — within the first couple classroom for presentations. They can also from outside of Bainbridge Island, but of weeks of availability, one desk was come to weekly afterhours-style many opt for the lowest level — one day of already reserved and several other members networking sessions, free weekly seminars co-working for $25 per month — while were considering it. (available to the public for a fee) and taking advantage of the workshops and the The OfficeXpats model provides Monday morning check-in sessions where networking. flexibility for members, depending on what they can share goals and accomplishments Members come from diverse they need. Some companies, for example, and stay accountable. The OfficeXpats professions, from attorneys and architects see advantage in the presenter level, which (www.officexpats.com) space includes 21 to web designers and coaches. There are gives them access to the classroom space. work stations, a quiet telephone room even filmmakers, an archaeologist and an Other members benefit from the high-tech (nicknamed the nap room for its secondary optometrist who once used to see patients conference rooms, which include Skypeuse), a reception area, various nooks and at OfficeXpats. ready technology and flat-screen computer crannies where people can sit and chat, as Many come because of the feeling of monitors with high-definition, wide-angle well as a spacious outdoor deck. And of isolation at the home office. “By working webcams. course, like any good office, all the free here, you get hooked into a community. It’s Others, like jewelry maker Alice David, coffee (or tea) one can drink. like the working version of Cheers,” come for the business development Each co-working model is different and Schneider said. opportunities. responds, partially, to the local need and It’s that community feeling that first “Support is really important and I didn’t culture. inspired the idea of the Xpats. Omens, have that. It’s daunting, when you’re not “The market here is different from whose background is in information business-savvy and you’re trying to strike Seattle. We don’t have a lot of software technology, knew that many people who out on your own,” she said. “There are so techs that’s the primary market for cities,” work from home need IT support. He many amenities here and you can use a little said Leslie Schneider, co-founder of the

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

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bit or a lot.”

David found an unexpected bonus through the networking. She met a pen maker who has a laser cutter in his garage that she can use for her leather bracelets.

“This place is a hub and a resource,” she said.

One other option that OfficeXpats offers is co-location, as is the case with Kombi Corp., a developer of adaptive point-of-service (APoS) mobile software.

Co-working, in general, has been embraced by startups, Schneider said.

“Co-working is like the new startup garage,” she said.

OfficeXpats has also served as an incubator of sorts for new ideas — this is where Ignite Bainbridge (an annual event that includes five-minute talks by multiple presenters) and a new business-mentoring program were born.

The two business partners, who have since quit their day jobs and now co-work out of OfficeXpats, continue to look at ways to improve or expand their business model.

Omens said they learned a lot from Seattle’s Office Nomads, who mentored them through launch.

“One big thing we learned form Office Nomads is that you have to be dynamic and try new things. Sometimes things don’t work out and other times they do,” he said.

One new “thing” in the works is the addition of technology for live streaming and recording, so they can offer a professional level of delivery for virtual workshops. It’s an outgrowth of the recorded Tuesday workshop sessions, which are posted on YouTube. Another idea is to take the lessons learned about creating a physical community and replicating it online — coming full-circle to Omens’ original goal. One possibility is a hybrid online and in-office community that can have access to optimized resources and maybe even a collaborative economy where no physical money is exchanged. A prototype is under development.

Whatever new ideas come next, OfficeXpats seems to have found a niche with independent professionals looking for a place where they can feel part of a collective — an alternative to the library or the coffee shop, only with various perks.

“There’s a sense of collaborating but with different companies. It’s an education for me, and it’s networking,” said K. David Kragen, a novelist and a copywriter who keeps regular hours at OfficeXpats. “I support other people as a writer and they support me. That’s what serendipity is all about.”

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Kitsap Community Food Co-op hosting second annual Harvest Dinner fundraiser The Kitsap Community Food Co-op will hold its second annual Harvest Dinner on Sept.

7. Co-op board member Jean Clark is hosting this fundraiser in her garden and patio that were featured on the recent Manette Edible Garden Tour.

The ticket price includes a garden tour, local beer and wine, appetizers, and a four-course meal with vegetarian option. The dinner will feature local food donated by Kitsap farmers, with catering services donated by Eileen France of Sweets and Savories. Entertainment will feature the Duncan Creek String Quartet.

The dinner will be at 6 p.m., and the address will be provided when tickets are purchased.

Tickets are $65 per person or $120 per couple, and seating is limited.

For more information or to purchase tickets, call 360-813-1301 or email jess@kitsapfood.coop.

Annual book sale at Stillwaters runs for six weekends Stillwaters Environmental Center in Kingston is set for its annual used book sale, which will operate on weekends from Sept.

6 through Oct. 13.

The event runs from 9 a.m. to 4 p.m.

Fridays–Sundays at Stillwaters, 26059 Barber Cutoff Road in Kingston.

The sale will offer about 15,000 books, new and used, covering all subjects, fiction and non-fiction, and almost all are priced $2 or less. The books are sorted to make shopping easy. The Native Plant Nursery will also be open for shopping during the book sale.

The “Bag Sale” is on the event’s last weekend of Oct. 11-13. Books will be sold for $5 per grocery bag full on Friday; Saturday will be $3/bag; and on that Sunday, all books will be free.

All proceeds from the sale will support construction of trails, preservation of habitat, and environmental education for the schools and the community. For more information, please contact Stillwaters at 360-297-1226 or info@stillwatersenvironmentalcenter.org.

The Bremerton office of the Washington State Department of Revenue is hosting a free workshop for new and small business owners on Sept.

5, from 9-11 a.m. at the Sheridan Park Community Center, 680 Lebo Blvd. in Bremerton.

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

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

Holly Ridge Center, a private, nonprofit agency in Bremerton whose mission is to offer a caring and supportive environment while providing non-discriminatory services for people with disabilities, is hosting a dinner auction celebration on Sept. 26 at the Kitsap Conference Center in Bremerton.

The center’s 50th anniversary celebration includes an elegant dinner and an auction featuring items such as overnight stays at local resorts, Disneyland tickets, tickets to major-league sporting events, a one-week stay in Hawaii, and much more.

All proceeds benefit Holly Ridge Center

and help the agency guarantee its policy of turning no child away due to a family’s inability to pay for services.

Tickets are $35 per person and are available by calling 360-373-2536 or registering online at www.hollyridge.org.

Holly Ridge Center was founded in 1963 by a group of eleven parents seeking to establish better and more hands-on programs for their children with special needs. During the next 50 years, HRC has become a model of excellence as an agency that provides specialized services to adults and children with disabilities.

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Holly Ridge Center hosts dinner, auction to celebrate 50 years in community

Incentives offered to build green, affordable housing

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

By Tim Kelly, Editor The aim of the Housing Design Demonstration Project on Bainbridge Island was to create incentives for developers to build subdivisions that offer green and/or affordable housing. Four projects taking advantage of incentives such as “bonus density” offered by the ordinance are in different stages of development.

Ferncliff Village has completed 24 homes that are now mostly occupied, and the first homeowners are moving into the GROW Community, which will be the largest of the four, as it works toward completion of its first phase.

Meanwhile, the HDDP, which was adopted in 2009, is set to expire at the end of this year, but a committee has been working on revisions that will be presented soon to the City Council, and a reworked ordinance could be extended for a few more years or made permanent.

“The HDDP’s intent is to allow for clustered housing and preserving open spaces,” said Mark Blatter, executive director of the nonprofit Housing Resources Board, which developed Ferncliff Village.

Community land trust Ferncliff’s first phase showcases that concept, with the two dozen cottage-style houses on small lots, with a community garden and an open grassy area in the center of the development. Besides being shared recreational space for residents, the grassy area also handles stormwater runoff.

The six-acre site — off Ferncliff Avenue

Photos by Tim Kelly

Homes in the Ferncliff Village development on Bainbridge Island are designed to be affordable and have a small housing footprint.

A community garden is part of Ferncliff, which was developed as a community land trust by the nonprofit Housing Resources Board. half a mile north of Winslow Way — was donated to the Housing Resources Board by former City Council member Lois Curtis. The HRB developed Ferncliff as a community land trust, which means the nonprofit builds and sells the houses but retains ownership of the land, with

homeowners paying a low-cost, long-term land lease.

“That’s part of the way we make it work as affordable housing,” Blatter said.

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The two- and three-bedroom houses range from 846 to 1,138 square feet, and are priced from $195,000 to $220,000. The Ferncliff Village website says the home prices are more than $50,000 below market value. Blatter said qualified buyers are those with 80 percent to 120 percent of the area median income in King County, and additional subsidies are available for potential Ferncliff homebuyers with incomes below that range.

It’s the only one of the four HDDP developments that meets the affordability goal of the ordinance.

Charlie Wenzlau, a local architect who is Housing Resources Board chairman and also helped develop the HDDP for the city, explained that the ordinance has development standards structured in tiers on either a green building track or an affordability track, though they’re not mutually exclusive. “When you go with the affordability track, the green building requirements are still there but not as onerous,” he said.

So even though Ferncliff put more emphasis on providing affordable homes, Blatter said the houses also include various energy-efficiency elements such as ductless heat pumps, Energy Star appliances and triple-glazed windows.

“We think these houses are going to live comfortably and large, even though they are fairly compact,” Blatter said.

Changes at GROW The GROW Community, located at the corner of Wyatt Way and Grow Avenue just a couple blocks from downtown Winslow, is on the green track and has incorporated more extensive sustainability measures, such as rooftop solar panels and a charging station for a shared electric vehicle available for residents to use.

Jonathan Davis, the architect who designed the first phase being built on three acres of the eight-acre GROW site, worked with developer Asani to create a project meeting One Planet Community standards of sustainability. BioRegional, the global sustainability organization that founded the One Planet Living program, announced GROW’s endorsement at last year’s Earth Summit in Rio de Janeiro.

“We had the land and knew we had to do something interesting with it,” Asani president Marja Preston said. “We came up with this concept for a One Planet intentional community. The HDDP ordinance the city had fit very well with that.”

The GROW Community’s first phase will have 44 housing units, with 24 freestanding single-family homes or duplexes that are currently under construction, plus Housing, page 15

Martha & Mary expands footprint in the county's north end partnerships. “There’s a rich tradition of Martha & Mary working in partnership with various community stakeholders,” he said.

Poulsbo plans Another partnership in the works is for an assisted-living complex in Poulsbo, part of the Poulsbo Place master plan. The group of Poulsbo Place developers is proposing a mix of assisted-living units and memory care units, which will be operated

by Martha & Mary. The project is in the permitting stage with the city and a concept design has been completed.

Mike Brown, owner of FPH Construction and a partner in the project, said the group is ready to formally look at financing and complete the construction drawings.

He anticipates that groundbreaking could happen next summer but it was too early to know for certain.

The site was originally planned for residential and commercial space. Brown said what made the location a fit for senior living was the proximity to various amenities including bus service.

“We thought the location is premium for that type of use,” Brown said.

Rodika Tollefson photo

Construction is nearly complete at the Martha & Mary senior apartments in Kingston, part of the Village Green hub.

August 2013 Kitsap Peninsula Business Journal • KPBJ.com 7

By Rodika Tollefson A Martha & Mary affordable senior housing complex in Kingston is nearly complete, with apartments to be available for move-in around November.

The Martha & Mary Village Green Apartments are part of a grass-roots community hub called the Village Green, which will also include a community center, library, a park and other amenities. The apartments will have private decks and many will include views of the water.

Interest has been strong in the 35 units, according to Martha & Mary CEO Chad Solvie — the interest list had 80 people and as of early August, nine deposits had been received and 25 applications were being processed.

“It is a very nice mix of amenities at a very affordable price. I think they offer a lot of value,” he said.

The Village Green hub has been in discussion for many years (see related story, page 8) and a senior housing center came to the top of the idea list about five or six years ago. Part of the land was subsequently sold to the housing project and the money went toward the development of the community center, according to Nick Jewett, executive director of the Village Green Foundation.

“Senior housing is in critical need in the north end of the county,” Jewett said. “It’s a very compatible partnership between Martha & Mary and the community to provide, on the same property, solutions for senior activities, a youth center, library and community kitchen.”

Rent for the one- and two-bedroom apartments starts at $630. There are income guidelines but Solvie said some limits are fairly high. The project was originally envisioned as a partnership between Housing Kitsap and Shelter Resources — the for-profit developer overseeing the project’s construction and financing — but Housing Kitsap had to pull out and Martha & Mary stepped in.

“Kingston is a natural part of our mission area. The idea of senior housing expansion was on our radar and it was something we wanted to be part of,” Solvie said.

Martha & Mary and Shelter Resources, Inc., a Bellevue-based developer, created a joint venture called Village Green Kingston Associates, LLP. The partnership obtained more than $7 million in tax credits in 2011 through a competitive process, and the credits helped obtain support through several government funding sources including the U.S. Department of Agriculture.

Solvie said Shelter Resources, which has a history of senior housing projects with other nonprofits and housing authorities, is assuming the risk of cost overruns as well as the risk of operations for the first 10 years.

Another stakeholder in the campus is the development arm of Key Bank, which bought the tax credits for 15 years and will likely exit the project when they expire.

Solvie notes that of the 17 locations Martha & Mary operates (including child care facilities), about half involve

Have tools, will travel: Carpenter carves niche by building on site

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

By Rodika Tollefson Scott McIntosh doesn’t have a fancy shop filled with equipment and machinery.

In fact, he doesn’t have a shop at all. But the finish and carpentry work he’s been doing over two decades has inspired quite a bit of praise. McIntosh, who owns Island Carpentry (www.islandcarpentry.com) based on Fox Island, travels around with all his tools to build cabinets, mantels, closet organizers and various other wood pieces on site. The result, he says, is much better quality because everything is made to fit just right.

“You would be very hard-pressed to find someone like Scott to come to the house to build the cabinets for you,” said Jon Liljegren, a Gig Harbor builder who’s been hiring McIntosh for all his carpentry work since 2005. “He is able to come in and you say, this is the look I’m going for, and he puts himself into it completely. He’s an amazing craftsman.”

McIntosh, who’s worked on homes as large as 7,000 square feet, does mostly residential work in the Gig Harbor area but has gone as far as Alaska. He does little advertising — it’s mostly through word of mouth and his website — but he’s stayed consistently busy even during the

POULSBO 20530 Viking Way NW 360.779-6995 ©

construction slowdown.

“Happy customers seem to talk to other customers,” he said.

He usually starts a project the oldfashioned way, sketching it out on paper or even right on the drywall. He sees the finished project in his mind, but oftentimes it’s a collaborative process with the builder, homeowner and the designer.

“I like the challenges of looking at complex jobs and figuring them out.

Sometimes I wonder how I’ll do it and that keeps me motivated,” he said. He’ll keep working it in his mind — like a virtual puzzle — and once he finds a starting point, the rest of the puzzle starts to unfold. The result is often a work of art in its own right.

With the exception of the cabinet drawers and doors, McIntosh does everything himself, down to the staining of the pieces. He charges per job, which means he can take all the extra time he needs without charging the customer more.

“I like to charge fair prices and provide better quality,” he said. “I think people respect you when you’re honest and not trying to gouge them, and you don’t cut corners while you do what you said you’ll do.”

One recent custom job was at an Olalla

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Scott McIntosh stands by a fireplace mantel he built at a home in the Canterwood community in Gig Harbor.

Homes. home that had been completely rebuilt The showcase of McIntosh’s work in after a fire. McIntosh spent several months that home was a 96-inch, round, suspended on site crafting a variety of creative pieces wood soffit (nicknamed “the donut”) for including cabinets. the kitchen. Looking at the beautiful piece, “(The homeowner) got a screaming it’s almost hard to imagine it was the work deal for the cabinets. It was less expensive than getting them from a cabinet shop,” said Liljegren, who owns Norse Custom Carpenter, page 13

New Quadrant developments aim at move-up buyers Bellevue-based Quadrant Homes has several developments still under construction in the Greater Kitsap Peninsula area, including some in Gig Harbor and Poulsbo that are looking to attract the move-up market. The company is currently selling homes in two developments in Poulsbo, one in Port Orchard and one in Gig Harbor, and another one in Gig Harbor will start construction soon.

Vinland Pointe, near the Oldhava area of Poulsbo, will include 90 homes priced in the low- to mid-$300,000 range. A few presales as well as showcase homes are already under construction, with the rest expected to be built through 2014. Liberty Hill, nearby, includes 71 homes that have been selling since mid-2011 and sold out in August.

Bonnie Geers, Quadrant vice president of community development, said Vinland Pointe and Liberty Hill have been especially attractive for military families stationed at Bangor because of the manageable commute, but there’s also been interest from move-up buyers looking for more space.

“We have seen the market heat up and the number of buyers has increased. We see good interest in both market segments (first-time and move-up buyers),” she said.

Another area that may be geared to second-time homebuyers is a new Gig

Harbor development in the Harbor Hill master planned community, which is being developed by Olympic Property Group.

Quadrant purchased 40 home sites in the MPC and plans to build homes in the 2,000- to 3,000-square-foot range. A model home will be ready next spring, with sales to start at the same time. Geers said the price range for the homes hasn’t been established yet, but it’s likely they’ll be targeted toward second-time homebuyers looking to

upgrade from the initial homes they purchased.

Another Quadrant development in Gig Harbor, The Ridge, has a total of 120 lots and is nearly sold out. Also sold out is McCormick Woods (438 lots) in Port Orchard, but construction continues at McCormick Meadows, where a total of 167 sites are planned. McCormick Meadows, which includes homes in the mid-$200,000 range, also has been popular with military

personnel from the naval base, according to Geers. She said the open space and natural areas has been especially attractive for families buying their first homes.

Geers said the housing market is looking especially strong this year. Quadrant typically sees a slowdown in the summer after a busy spring, but this summer the activity has been steady. “The fact that the interest is continuing through the summer is a good sign,” she said.

Port Orchard’s Westcoast Fitness to get new home Westcoast Fitness members will have a new Port Orchard facility this fall — a roomier, 10,600-square-foot building with a few new amenities. The gym, which also has a location in Bremerton, has been located in a leased space in a strip mall by the Safeway at Lund Avenue and Bethel Road, but will own the new site, which is on Ramsey Road overlooking Sedgwick Road just west of the Bethel intersection.

Victor Olvera, part owner and manager of the athletic club, said he expects to move to the new site around mid-October. Final construction touches still left to do as of mid-August included the parking lot and the interior walls.

The new facility is about 2,000 square feet larger than the current one. The main additions to the two-story building will be aerobics classes and a smoothie shop. The

addition of aerobics will bring the Port Orchard location on par with Bremerton.

Westcoast members can attend either location as part of their membership.

The company has been in business since 2001, and the Bremerton branch opened shortly after Tim Kelly photo Port Orchard.

Olvera, who started The new Westcoast Fitness facility is under construction in Port Orchard, just west of the Sedgwick Road/Bethel Road intersection. working for the company has about two dozen employees. company a year after opening, got an Olvera said one of the reasons for them ownership stake about four or five years to build their own facility is costs. “Rent in later. Chiropractor Brian Willyard came on Port Orchard is extremely high,” he said. board as co-owner a year ago. The

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from page 1 furniture as works of art. The live-edge style — in which the natural edge of the wood is incorporated into the design of the piece — and the marvelously varying grain of the table surfaces is complemented by sculpted copper designs on the table bases.

To see these unique creations, find your way to the warehouse at Special Trees Industries, an operation tucked away in the Port of Bremerton Industrial Park.

To buy one — say, for your extra-large dining room with a water view, your corporate boardroom, or perhaps your hunting lodge in the mountains — you’ll need to write a check with a lot of zeroes.

“These tables are $20,000 to $60,000,” said Beaulaurier, and the first customer to buy one from his business was Jason Bay of the Seattle Mariners.

Beaulaurier and his wife also operate 15 McDonald’s restaurants on the Kitsap and Olympic peninsulas. So why did the owner of a thriving fast-food enterprise decide to set up a commercial wood shop?

“I started it as a hobby because I really like wood,” he said. He has an industrial arts degree from Washington State University, and worked as a general contractor before getting into the restaurant business in 1986.

John Breslin also has a passion for woodworking. The former construction worker, who honed his skills in a cabinet shop after the recession curtailed his work for a Bainbridge Island homebuilder,

Photos by Tim Kelly

Above left: The custom table bases have copper artwork created by sculptor Walter Massey of Port Townsend, who uses a special metal dye to make the colorized patina.

Above right: John Breslin uses a router to make cuts for inlays in a tabletop at The Swimdeck, a new pub opening soon in Port Orchard. Pub owners Dave Tagert and Stacey Bronson bought an American elm slab from Special Trees to make a table long enough to seat large groups.

Left: A finished section of the same table shows the live-edge design.

Watch a video with this story at kpbj.com stopped in at Special Trees one day looking for a maple slab to use in a furniture-making project. He wound up going to work there, initially to build the custom tables.

“I ended up hiring John,” Beaulaurier said. “It was a good move for both of us.”

It’s led to the next planned move, which is for Breslin to buy the operation he’s been managing for going on two years. That

could happen by the end of this year.

For most of the five years since Beaulaurier started the enterprise — which has "kind of evolved into a furniture business" — its revenue has come primarily from selling the unique live-edge slabs of wood, as well as lumber, turning blocks that woodworkers use on lathes, and a lot of gunstocks from prized varieties of walnut

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

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such as Bastogne, English and Claro.

"We actually sell roughly 40 to 50 a month on ebay, from $50 to $250," Beaulaurier said.

His business has operated at a loss, but he didn’t get into it expecting a big return on his investment. “It’s a labor of love,” he said.

He and Breslin both take pride in the fact that all their wood is from trees salvaged from a likely fate of going through a chipper, and their custom tables are created using all recycled materials, including the copper for the base artwork made by Port Townsend sculptor Walter Massey.

“All the toes are 100 percent recycled glass,” Beaulaurier noted, referring to the quartzlike black piece a few inches thick that forms the bottom edge of the base. “It came out of recycled auto glass.”

“Even that pipe is out of the recycle yard,” Breslin said, pointing to the stabilizing segment connecting the bases at opposite ends of the tables, some as long as 16 feet.

They’ve even made some of their own customized machinery in the sawmill, such as a planer big enough for working on the tabletop surfaces. Beaulaurier bought an industrial plasma cutter, and Breslin and Fred Stites, who does all the metal fabrication for the business, converted it into the planer.

They have a 5-foot band saw for cutting slabs from logs, but for a big upcoming job they’ll have to use a specialized Alaskan Mill chainsaw to cut slabs by hand from an impressive tree that an old friend of Breslin’s delivered from Gorst.

It’s a sequoia that was cut down this spring at Jarstad Park to keep the fastgrowing tree (only about 55 years old) Special trees, page 11

SPECIAL TREES from page 10

from tangling with power lines, and Bremerton public works employee Brian Spilman arranged to haul several of the trunk sections to Special Trees. The largest of the redwood chunks is about 7 feet thick.

A bartered deal will let Breslin keep half the milled wood, and Spilman will split the rest with the city of Bremerton.

Finding other sources of special wood close to home would be a boon for Breslin as potential owner of the business. Much of the supply amassed there came from Beaulaurier’s contacts in California, including a shipment of logs salvaged a few years ago after a fire in the Sacramento River Valley. A good amount of the charred wood remains stacked in the Special Trees warehouse.

“We actually reclaimed probably 10,000 board feet of native black walnut,” Beaulaurier said.

The source of the wood is important.

"I will not work with anything illgotten," Breslin said. "It’s almost spiritual for me. All these trees have got their own story."

“I feel like we have only scratched the surface with what we have here now.”

— John Breslin, woodworker at Special Trees Industries Another noteworthy slab still at the warehouse came from a large maple tree harvested in 2006 near Beaulaurier’s home on Squamish Harbor in Jefferson County.

The tree contained a lot of spalting, the unique coloration and patterns in wood

caused by fungi, which weakens the wood but makes it aesthetically appealing for woodworkers.

"I'm still going to make a table out of it someday," said Breslin, who envisions creating something that would have been appreciated by the late George Nakashima.

The famed Japanese-American designer "was like my idol when it comes to natural live-edge furniture; …he blended dimension with Mother Nature’s natural beauty."

That pretty well expresses his mission statement for the business he hopes to own and believes can be profitable.

"I feel we have only scratched the surface with what we have here now; it’s kind of a no-brainer for me," he said. "I’m not looking

to get rich, I'm just looking to keep the doors open. I believe the market’s coming back for this kind of wood, the live-edge especially."

As a distinctive touch on the custom tables, Breslin does inlays of black "keys" that are bowtie-shaped pieces of ebony wood. He places a few at each end, across fissures in the live-edge slabs, and the braces add a decorative flourish while also holding the wood together to prevent further splitting.

It's obvious this woodworker has found his niche.

"People always say you never work a day in your life if you love what you’re doing," Breslin said. "That’s kind of how I feel out here."

Marketing consultant collects stories of his outdoor experiences in new book

Local financial advisor receives company award Pat McFadden of the financial services firm Edward Jones in Poulsbo recently won the firm's Spirit of Caring Award designed to recognize those financial advisors who exemplify the values, culture and spirit of giving back.

McFadden was one of only 213 financial advisors out of the firm's Pat McFadden more than 12,000 to receive the award.

August 2013 Kitsap Peninsula Business Journal • KPBJ.com 11

Local marketing consultant Bill Hoke has published a book of poems and “life stories” titled River Voices on the Duckabush.

Hoke's book includes poems, haiku and sketches from his hiking and mountaineering and also poems about his Bill Hoke family. He has hiked nearly 3,000 miles in the Olympic National Park and climbed most of the major peaks in Washington state.

The book was published by Scandia Press in Poulsbo and is available at Amazon.com and other online booksellers.

Hoke, who has been involved in recent years with an entrepreneurship training program that helps individuals plan and start their own businesses, lives in Manette with his wife, Patricia Graf-Hoke, who is executive director or Visit Kitsap Peninsula.

Kingston community hub moves closer to goal

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

By Rodika Tollefson When Bobbie Moore and her husband returned to Kingston after living on the East Coast for several years, the couple felt they could retire there. But something was missing. Moore wanted a community with more amenities — a nice park and modern library, among other things.

So she became involved with a nascent grass-roots effort to bring a community center to Kingston — a center that could be home not only to a state-of-the-art library but to other organizations and community events. The group has since become the Village Green Foundation and its dream has grown much closer to becoming reality.

The foundation has raised about $5 million through private and government grants, donations and fundraising events toward the Village Green hub.

“In the early years, there was a giant question mark whether it would happen but it’s a certainty now,” said Moore, who served on the Village Green Foundation board and later as executive director, and is now involved as a commissioner for the Village Green Metropolitan Park District.

The idea of a new community center in Kingston goes back as far as the 1990s but

picked up momentum within the last decade. Part of the property slated for Village Green was a 10-acre Kitsap County Public Works parcel that had a sewage treatment plant, and another 3.6 acres was once occupied by Navy housing.

The 21,000-square-foot multi-use community center, located close to downtown, will include a new home for the Kingston branch of Kitsap Regional Library, a Boys & Girls Club and a senior center. Other planned amenities include a community kitchen, p-patches and meeting rooms. The Village Green Community Park, which opened in 2009, is also part of the hub, as is an adjacent Martha & Mary senior affordable housing complex, which will be completed in October.

“The whole project provides infrastructure for the community,” said the foundation’s executive director, Nick Jewett, a longtime Kingston resident.

The current senior center in Kingston will move to the new facility, which will provide better parking and space for senior activities. The Boys and Girls Club of Snohomish County also plans to open a youth center in the space.

Funding for the center includes, among

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other contributions, $500,000 from the state Legislature, a $1 million state grant and a $1 million C. Keith Birkenfeld Memorial Trust grant. Another $750,000 was raised through local donations. About half of the 13 acres wil l be preserved as open space, as stipulated by one of the state grants. Because of state funding, the center also must be built to

LEED certification standards. Additionally, Kitsap Regional Library received a $1 million donation from an undisclosed donor for tenant improvements and furnishing of the new Kingston branch. Jewett said the exact amount that still needs to be raised is Kingston hub, page 13

Rush to start construction of new Gig Harbor development The Rush Companies will start building new homes this fall in Gig Harbor, just a few minutes away from State Route 16 and downtown. Called Bellesara, the development will include 31 homes ranging from 2,600 to 3,000 square feet. The homes will include high-end amenities and two- or three-car garages, and will be priced at $400,000-$450,000.

Development of the lots already has begun off Wollochet Drive, with house construction to commence in late fall. The short plat had been approved by the city in 2006, but the previous owner did not build and the property had gone back into bank possession. Rush made a few modifications

CARPENTER

and resubmitted the plans, according to Scott Walker, the company’s residential vice president.

The homes will be available for sale in 2014, with a model home expected to open in February. Scott estimates there will be two to three homes a month being built, with complete buildout taking one to two years.

The company is extending the city sewer line by about half a mile. The $2 million extension will cover not only Bellesara but also two other future communities planned in the same area. The other two are planned for construction around 2015-16.

KINGSTON HUB

She said there is no other place in Kingston to have events and meetings other than the White Horse Golf Club clubhouse, which is a little more upscale. She also noted that the Suquamish Tribal Council is awarding $100,000 toward the project.

“It definitely demonstrates that the project has appeal not just in Kingston,” she said. “They regard it as an important part of the development of the North End.” Jewett said if the funds are raised in the next few months, the project could break ground as early as next spring.

“There’s been a lot of help and cooperation with the state Legislature, county commissioners, Kitsap Regional Library and the Boys & Girls Club,” he said.

“We all have the same goal in mind and we know we’re in a position to meet a critical need in the community.”

from page 12 unknown because costs have changed, but at last count the estimate was at $1.7 million.

Once it opens, the Village Green Community Center’s operations will be funded through the taxes collected by the metropolitan park district. The district began collecting taxes in 2012 (current rate is 10 cents per $1,000 of assessed property value) and is currently using some of the money to operate the park, Moore said.

Additional revenue will be provided by renting the building to community groups.

“Our intention is to have all of the space in the building used continuously from early in the morning to late evening,” she said. “We know there’s demand for it. It’s going to be a very nice facility and very affordable.”

West Sound Academy hosts photographer’s exhibition An exhibition of contemplative nature photography by John Abromowski is on display at West Sound Academy's Frodel Gallery during the month of September. Abromowski's photographs in his "Quiet Places" collection find beauty and connection to the greater world in the everyday images of ponds, streams and wetlands.

West Sound Academy in Poulsbo will host a reception for the artist on Sept. 20 from 6:30-8 p.m. at Frodel Gallery on the campus at 16571 Creative Drive NE in Poulsbo. The public is invited and light refreshments and wine will be served. Call 360-598-5954 to RSVP.

By contrast, Harbor Crossing, in the Harbor Hill area, will have homes in the $250,000-$400,000 range. The homes are expected to attract both first-time or second-time buyers and retirees looking to downsize, Walker said. As of June, there were 19 presales in Harbor Crossing.

“The community and the price is attractive to both and there’s a lot of demand from those types of buyers,” he said. “There’s a strong demand for the quality of life Gig Harbor offers both for retirees and first-time buyers.”

Art Anderson Associates adds two professionals to staff Bremerton-based engineering services firm Art Anderson Associates has hired Stephen E. Gatz as a naval architect working in the firm’s marine group, and Marc A. Derenburger as an entry-level mechanical engineer with the facilities group.

Gatz brings a diverse background in naval architecture and marine engineering design, marine research and development, and marine operations. A resident of Kitsap County, he has primarily been engaged in the project to develop what is intended to be the first hybrid ferry on Puget Sound, for Kitsap Transit.

Derenburger is a recent graduate of Washington State University’s mechanical engineering program at Olympic College. He will work closely in a mentor-protégé relationship with the chief design engineer of the firm’s facilities group, Sean Hoynes.

Art Anderson Associates is a multidisciplinary engineering services firm offering diverse expertise in the marine and landside environments.

Areas of emphasis include new and renovation design for marine vessels, waterfront infrastructure engineering, environmental and energy consulting services, and engineering services in support of U.S. government facilities. For more information, visit www.artanderson.com.

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from page 8 of one person (it took six people just to lift it into place).

“He is a one-man band but that’s what you need for someone who’s as particular as he is,” Liljegren said. “He’s extremely efficient — he can do the work of two guys.”

The soft-spoken father of two got into carpentry while in high school and the career “sort of happened,” he said. He wanted to work for himself, however. “You have to work harder but the rewards are better and the satisfaction is better,” McIntosh said of having his own business.

He notes that he could not have done it without the support of his wife, Anne, and his children, Zoe and AJ. The reason he doesn’t hire a crew is quality control, he said, but it also helps him

keep costs low. “I don’t have the mindset to let it go; I worry about the quality and the reputation,” he said.

He’s learned to let go in other ways. He recently hired an accountant and plans to delegate his future website update, too.

And while he’s content to keep being a solo traveling carpenter, he does have a dream or two. For one, he’d like to do some more public work, such as for a restaurant.

He fondly recalls fixtures he’s built for a retail shop in Gig Harbor that he still visits to see his work withstand the test of time.

His other long-term dream is to someday have a shop after all — not so he can stop building on job sites but so he could build more types of pieces.

Shop or not, McIntosh’s style is to go beyond the simple. “The art is in the details and the ideas,” he said. “I try to turn something plain into something more elaborate, something really appealing.”

“These projects on this side of Highway 16 offer an alternative to the lifestyle of Gig Harbor North’s rapidly expanding area,” Walker said. “This area is more quiet and private but will still have a good sense of community.”

Rush is also building in Gig Harbor North, including in the gated community of Canterwood. One of the Canterwood developments, Division 12, sold 18 homes in June, with 13 of 33 homes still left to be built, Walker said. The homes range in price between $475,000 and $1 million.

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

Spyglass project may be on rise in downtown Bremerton

By Tim Kelly, Editor Like the view over the water from the downtown side of Bremerton’s Manette Bridge? That’s what many residents would see out their living room windows high above the street in a planned five-story apartment building, which might be the most likely of various proposed apartment projects downtown to actually get built.

The Spyglass Hill project includes 80 apartments in a building facing Washington Avenue just south of the bridge, and there are plans for six two-story townhomes on the opposite side of the site facing Highland Avenue.

The site is in the 600 block of Washington Avenue at the highest point in downtown Bremerton, and developer Wes Larson of Sound West Group/Spyglass Hill LLC said the top of the proposed apartment building would actually be higher than the six-story Norm Dicks Government Center a few blocks away.

“The views you get are just spectacular,” Larson said. “All the views, even from the first floor, look out over the water.”

The project, which the city’s Design Review Board took its first look at in August, also would have a covered, open-air rooftop terrace on the apartment building.

According to Sound West’s presentation, the covering of the terrace would be allowed to exceed the 60-foot height limit for the occupied levels of the building.

Most of the planned 80 units are onebedroom apartments, with some studios and two-bedroom units.

At the design review hearing, a City Council member and a former member raised concerns about parking in the area, and a former mayor spoke in favor of the project.

Cary Bozeman, who was a driving force behind downtown redevelopment efforts when he was mayor from 2002 to 2009, noted that the apartment project first surfaced when he was still in office.

Spyglass was downsized from the

Sound West Group adds office manager to staff

Sound West Group illustration

An architectural rendering shows the proposed Spyglass Hill apartment building, which would have 80 units on five floors with a parking level below the building. The site is atop a retaining wall in the 600 block of Washington Avenue near the Manette Bridge in downtown Bremerton. original plan that got land-use approval for the site in 2007, which called for 132 apartments in two five-story buildings.

“I don’t believe we’ve had a new, nice apartment house built downtown in 30, 40, 50 years,” he said. The Spyglass project would increase residential density in the city’s urban core, which Bozeman said is needed draw more businesses such as a grocery store downtown.

Wendy Priest, who lives on Highland Avenue near the Spyglass site and is the current District 4 City Council member, said she’s concerned about adding more traffic on the crowded, narrow street.

Roy Runyon, who represented the district until he moved elsewhere in the city and resigned his seat in January, said the Spyglass proposal doesn’t provide any extra parking for guests, which could result in problems since on-street parking on Highland is by permit for neighborhood residents.

The Spyglass building, like existing older homes flanking the site, will be atop the retaining wall that runs alongside Washington Avenue, with stairways built into the wall allowing pedestrian access to the street. Vehicle access to Spyglass would be off Highland Avenue.

Plans show 31 surface-level parking spaces behind the apartment building, plus a 48-space parking area below the front section of the building but not underground, similar to a daylight basement.

“With the topography of the site, the building on the Washington Avenue side is on a downward slope, which will allow (residents) to drive in and park under the building,” Larson said. “We won’t have to excavate.”

That’s one factor in managing construction costs so rent for the apartments will be in line with local housing, Larson said.

He said another factor is that the project qualifies for a 10-year property tax abatement from the city for building multifamily housing. Several existing houses on the site, which Sound West Group purchased in 2008, would be torn down.

Adjacent to the Spyglass site on the north are two dilapidated old homes that may be torn down at some point. Larson said his group would be interested in acquiring the lots if they’re put up for sale, and that area could be utilized to provide more parking spaces.

The Spyglass Hill construction will be done in-house with Sound West Group

Sound West Group has hired AnnaLisa Lipka as office manager and executive assistant. Lipka has over a decade of management and administrative experience in the Kitsap County real estate industry.

Bremerton-based Sound West Group, comprised of Sound West Holdings, LLC and Sound West Realty Advisors, LLC, is a privately owned real estate company and a regional market leader in acquisitions and investments in the west Puget Sound area.

For more information on Sound West Group, contact Wes Larson at 360-850-4394 or wes@soundwestgroup.com.

partner Mike Brown’s FPH Construction.

Rice Fergus Miller architects did the design for the project. Larson said once the design review process is completed and building permits are obtained, construction of the complex could begin by next summer.

Another planned project for building a 71-unit, multistory apartment complex on top of the parking garage at Fourth Street and Burwell Avenue is on hold for now.

The developer, Lorax Partners, which built the SeeFilm Bremerton movie theater with the parking garage last year, had planned to start construction this summer, but reportedly is still working on arranging financing for the project. Lorax made its initial presentation to the Design Review Board last September, but has not yet requested a second hearing to complete the review process.

Sound West Group had been an investor in that project at one time, but Larson said his group now is focused on completing the Spyglass development.

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Photos by Tim Kelly

Architect Jonathan Davis, left, designed the first phase of GROW Community and is buying a house there. The community has a charging station for an electric vehicle that’s available for residents to use. summer program in Portland focused on environmental stewardship through design.

Cutler said the challenge at GROW was

HOUSING

Housing, page 17

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August 2013 Kitsap Peninsula Business Journal • KPBJ.com 15

from page 6 two buildings each with 10 apartments to rent. A park/play area space will be at the high side of the site near the Wyatt Avenue corner.

Only three houses had residents in August, but Preston said builder PHC Construction is finishing about three each month, and should have all of them done early next year. She and Davis are both buying houses in Phase I. "Our intent is to create a tight-knit community," the British-born Davis said.

"We created a place for that to happen. We have the potential for community here."

As for the HDDP, he said it's "a brilliant ordinance" and "what it allowed us to do that’s most beneficial, is create fee-simple lots for the homes," so they could be sold as single-family houses instead of condominiums, for which it's harder to get construction financing.

“Our density is no higher than what could have been built here” as apartments and condos, Davis noted.

While he’ll soon be living in the community, Davis won’t be as involved as the second phase at GROW starts to take shape next year. Asani decided to rework the types of housing and the site plan for the other five acres, and held a community meeting this summer to explain the changes.

Instead of homes built mostly on small but separate lots, many of the new units will be in rows of townhouses on the sides of a large central plaza where a community center will be built.

Davis isn't critical of the developer's changes, although he said "I think Phase 1 and Phase 2 will be two very different communities, with a different feel to them, and I think different population types."

He also said that "supposedly what they’re proposing will be more profitable."

Preston said the rowhouse-style arrangement was adopted in Phase 2 "so we could make better use of the space, to have more usable public open space."

There will also be more garden space,

she said, and a wider variety of unit types and sizes, including single-level homes that will meet the needs of people interested in an aging-in-place design.

There will be 87 units in Phase 2, the same as in the original design, and the redesigned project will still meet HDDP criteria.

To draw up the new Phase 2 plan, GROW worked with Jim Cutler, a renowned architect whose office is on Eagle Harbor but whose work for much of his career has been on projects in distant places.

"For a number of years I eschewed doing any work on Bainbridge Island," Cutler said. "The only thing we’ve done was Grace Church."

The builder he worked with a decade ago on the distinctive church with its high walls of windows was Marty Sievertson, president of Asani partner PHC Construction that's building the homes at GROW. He suggested bringing in Cutler, who taught a University of Oregon 2012

"I had to generate a site plan that fulfills all the requirements for family, and for community."

With a five-acre site to work with, he wondered, "would it be possible to leave three acres open and still fit 87 houses?"

Ericksen Urban Cottages The bonus density from the HDDP made a third development possible in Bainbridge’s urban core by allowing an exemption from the minimum residential lot size. Ericksen Urban Cottages is a 16-lot development on an open acre along the west side of Ericksen Avenue north of Wyatt Way. Ahn Quach, a retired engineer who came to the U.S. from China in the 1960s, said he decided to apply under HDDP to put housing on the property he bought when he moved to Bainbridge in 1998.

He said his property actually had mixed-

Engineer’s road led through Kitsap… literally

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

By Rodika Tollefson Mel Holgerson still remembers the Kitsap Peninsula when the highway was mostly a two-lane road without any overpasses. In fact, he recalls the Interstate 5 corridor only without the interstate. When I-5 opened, the drive was so nice, he and his wife would drive from their Tacoma home to Seattle just to get fish and chips at Ivar’s.

A semi-retired civil engineer, Holgerson is not a household name in Kitsap but he’s had a hand in something that impacts local residents on a daily basis. Early in his career, he was part of the small team that oversaw the building of State Route 3.

“It was a very engaging job,” he said. “It was a busy time.”

Holgerson got into engineering after serving in the Army toward the end of the Korean War. His goal was to be a project manager and when an opening came up with the state transportation department on the west side of the Tacoma Narrows Bridge, he took the job and moved from Tacoma.

With a crew of 15 to 20 people, Holgerson did contract administration for all the major highway work in the area.

When the Trident submarine base was

getting ready to move in, the team’s mission was to build the highway from Chico to Poulsbo — Holgerson’s last big project with the state. He retired in 1983, after that major undertaking was completed, and decided to give the private sector a try.

These days, Holgerson’s job seems a little less exciting. He mostly does certifications for mobile home foundations.

But he’s in high demand and travels all over the state for it.

“It’s fun work. I get to see a lot of country and meet a lot of people,” he said.

He’s had his finger in various local commercial sites, too, since opening up his own firm, Holgerson Engineering, which still has a presence in downtown Port Orchard. Springhouse Dolls & Gifts and Del’s Farm Supply in Port Orchard are some examples of his site engineering work — the design of grading, paving and drainage, among other things.

When realtors and lenders started asking about mobile home inspections, Holgerson saw the opportunity for a niche, just as the engineering regulations for new sites were becoming more and more “onerous.” The Clean Water Act, for example, resulted in a 1,200-page manual

Rodika Tollefson photo

Longtime civil engineer Mel Holgerson is semi-retired but still maintains an office in Port Orchard. filled with new requirements, he said.

“The new standards are very, very difficult to comply with and in some areas, almost to the point it would be difficult or impossible to develop new ground,” he said. “I think it will have an effect on the expansion of commercial development and, in some cases, residential development. It’s going to cost so much to put facilities underground to comply with the regulations, it would add $10-$15 per

square foot for commercial development (costs), and that’s a lot of money.”

Holgerson doesn’t have to worry about these things as much now, as he doesn’t advertise his services for site work. The main reason, he said, is because he doesn’t want to compete with the big engineering firms. He’ll still take those projects on occasion when asked, but he’s content with traveling around Washington and certifying mobile homes.

“I can do it in an expeditious manner at a reasonable rate because I’m not tied into bigger projects,” he said.

For a few years, his late wife, Linda, used to travel to the sites with him because her petite frame would allow her to crawl under the homes much easier. Now, Holgerson uses other assistants — and not only for the crawling part but also for anything that has to do with computers. He doesn’t even have one at his home office, where he does much of his work even though he still maintains his official headquarters downtown. He keeps his marketing lowkey, as well — no website, social media or any other modern bells and whistles.

“When I retired from the state, I made a choice not to invest into computers and learning, so I hire others to do it,” he said.

While Holgerson is semi-retired, he still certifies three to five mobile homes a month. At age 80, he doesn’t see a need to completely retire. Besides, the money is nice when it comes to paying for hobbies like fishing.

“I plan (to work) for as long as I can. I like my contacts with the realtors, the lenders and the people who own the homes,” he said. “There isn’t a lot of pressure, like working with government agencies.”

He said the best part about his engineering business for the past 30 years has been the people he’s met. And he still looks fondly at his days of managing the highway projects.

“It’s nice to wake up every day and look back, and see you’ve accomplished something,” he said.

HOUSING

from page 15 use zoning that would have allowed putting in a commercial development, but that hasn’t been a viable option since there are existing commercial sites sitting vacant.

“When this project comes along, we decided to down-zone ourselves and build residential only,” he said.

Work has begun on three home sites, and the first house should be finished this fall. The homes on small, narrow lots will be 1,200 to 1,700 square feet, with lots of windows and double skylights above the top floor of the “2.5-story” houses.

“We haven’t started marketing the homes; I don’t even have an asking price yet,” Quach said in August.

The project is on HDDP’s green track, and Quach said the homes will be highly energy-efficient and hopefully meet LEED silver standards. A one-way street will go from Knechtel Avenue to Wyatt Way, with parking around the site’s perimeter and in a corner area, and each house will have a porch facing an open common area in the interior of the site.

The first 2.5-story house in the Ericksen Urban Cottages development should be finished this fall. There will be 16 homes built on the one-acre site’s small, narrow lots with very little setback from the street.

Madrona plans The fourth housing project under the HDDP is planned for a block north of City Hall on Madrona Way, on a site of just less than two acres between a mobile home park and a professional building.

Like the Ericksen project, it will utilize small lot sizes to develop 48 housing units

of varying sizes — some as small as studio apartments — when attached single-family residences are built in townhouse style. The project is still in the design stage, according to one of the partners on the development, Kelly Samson.

One of the green-track features planned

Tim Kelly photo

for construction there is the use of insulated concrete forms to build walls, which have Styrofoam layers on the inside and outside of a concrete core. That high level of thermal-mass insulation not only makes the residence very energyefficient, it provides an effective sound barrier as well, keeping a home’s interior quieter.

Samson has been involved in helping the GROW Community, which is built on property he used to own, reach its goal of being a netzero community for energy use.

Through a joint venture with John Flanagan, who owns a factory in Bellingham, Samson formed a solar panel manufacturer called Itek. He said there was only one other in-state source where GROW could get solar panels, and Itek is providing more affordable panels. ”It’s going to be the largest residential solar installation in the state,” Samson said. “Through the planning process in the GROW Community, we recognized the need and the business opportunity.”

Updating, extending HDDP As for the future of a revised Housing Design and Demonstration Project ordinance, the new version likely will have more of an emphasis on creating affordable housing. That’s partly because HDDP’s

green track gives incentives for sustainability and energy-efficiency features that are becoming standard in housing construction.

“What we were concerned about as a planning commission is people getting credits for something they’re going to do anyway, or the market’s going to demand anyway,” said Maradel Green, a member of the city’s planning commission that reviewed HDDP recommendations from the local committee that she also participated in.

“Instead of two tracks for green or housing affordability, they’re now blended together but there are four tiers,” said Green, a retired professor who’s a board member of the group Sustainable Bainbridge.

She said HDDP has yielded mixed results. “It hasn't provided the number of units of affordable housing that we hoped it would, and that’s why we’re putting that now as part of all the tiers.”

Wenzlau, the architect involved with the Housing Resources Board, shares that view and said “blending green building and affordability, that’s going to bring (HDDP) closer to what was intended.”

Green said she thinks a revised version of the ordinance will become “a regular part of our city code, and will no longer be a demonstration but will be a housing diversity ordinance.”

Wenzlau favors revising and keeping the HDDP, whatever it might be called.

“I think it’s an incredibly innovative tool,” he said.

August 2013 Kitsap Peninsula Business Journal • KPBJ.com 17

West Sound Technology Association

Western Washington Summit 2013

Better Together!

Summit +Annual Individual WSTA Membership

only $99

MUSEUM OF FLIGHT PRESENTS The New Raisbeck Aviation High School Raisbeck Aviation High School is the new and permanent $43.5 million campus at The Museum of Flight, scheduled to open October 2013. Originally Aviation High School (AHS), the first college preparatory aviation-themed high school in the nation has operated out of two temporary locations since its inception in 2004. The new facility is being built on East Marginal Way, across the street from the main Museum of Flight campus and just north of the Museum’s outdoor airpark and brand, new space gallery. All subjects are taught in the context of aviation, with a focus on science, technology, engineering, and mathematics (STEM) education. Though part of the Highline Public School District, it is open to students all across the region, and approximately 50 percent of its student body comes from surrounding districts as far away as Olympia, Everett, and Bremerton.

• Join us to hear more about this giant step forward in securing the future of AHS, and its partnership with the Museum and Boeing to inspire engineers of the future.

• As we prepare students for STEM education and career pathways while fulfilling critical gaps in our nation’s workforce, take a seat at the table as we map Kitsap’s future in alignment with this vision.

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

HONORARY CHAIR: KEYNOTE SPEAKERS: OTHER SPEAKERS:

Patty Murray — U.S. Senator Douglas King — President and CEO, Museum of Flight Reba Gilman — Principal, Aviation High School Larry Seaquist — State Representative Russell Steele — Chief Executive Officer of Port Madison Enterprises Dr. David Mitchell — President, Olympic College Tim Thompson — Port of Bremerton

EVENT INFO:

Date: September 19, 2013 • Time: 11 a.m. – 1:30 p.m.

Location: Suquamish Clearwater Casino Resort, Chief Kitsap Hall, 15347 Suquamish Way NE, Suquamish, WA

REGISTRATION:

By Sept. 1

(Register at WestSoundTechnology.org)

After Sept. 1 Table

Visit our website for more information on membership, registration, and sponsorships.

(10 Seats)

PREMIER SPONSORS

MEDIA SPONSORS

EVENT SPONSORS

BUSINESS SPONSORS

COLLABORATING PARTNERS • Bainbridge Island Chamber of Commerce • Bremerton Chamber of Commerce • Kingston Chamber of Commerce • Kitsap Aerospace and Defense Alliance • Kitsap Economic Development Alliance • Port Orchard Chamber of Commerce • Poulsbo Chamber of Commerce • Silverdale Chamber of Commerce

WSTA Members and Partners $40 Non-members $50 WSTA Members and Partners $50 Non-members $60 WSTA Members and Partners $420 Non-members $500

WestSoundTechnology.org

September 2013 Edition

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

Going on NOW Peninsula Home & Remodel Expo space Sales! Don’t miss out!

Visit: www.kitsaphba.com to register.

Monday, September 2 HBA Office Closed Wednesday, September 4 Kitsap HBA Remodelers Council, 4 p.m.

Thursday, September 5 Developers Council, 7:30 a.m.

Thursday, September 12 HBA Fall Social McCloud’s Grill House & Saloon RSVP to HBA “Nothin’ But Fun!” Thursday, September 26 Executive Cmt. Mtg., 2 p.m.

Government Affairs Cmt., 2:30 p.m.

Board of Directors Mtg., 3:30 p.m.

Mark Your Calendars!

October 4, 5, & 6 Peninsula Home & Remodel Expo Visit: www.kitsaphbahomeshow.com for all the details!

Thursday, October 10 Annual HBA General Membership Lunch Meeting, 11:30 a.m.

RSVP to HBA ($15.00 per person) VISIT the NEW HBA Website! www.kitsaphba.com Online Event Registrations!

Supreme Court Decision: A Significant Victory for Landowners (Originally published by the National Association of Home Builders. This version, edited for length.)

For years, local governments have pursued arrangements with developers to extract concessions in exchange for the opportunity to develop.

For example, a locality may ask a developer to improve the street in anticipation of the increased traffic that a development may bring. In some cases, this is a fair request. However, some local governments stretch the boundaries to the limit. In a victory for NAHB membership and property rights advocates, the U.S. Supreme Court on June 25 issued an opinion in Koontz v. St Johns River Water Management District (District) that directly affects the law that applies to such conditions, called “exactions.” NAHB led a coalition of 16 associations which together filed an amicus brief to the Court in opposition to exactions like the one in this case.

Koontz Case Facts — Coy A. Koontz owned 14.2 acres of vacant land and sought to improve 3.7 acres of the property. Koontz applied to the District for permits to dredge and fill 3.25 acres of wetlands. In exchange, Koontz offered to dedicate the remainder of his property — about 11 acres — to the state for conservation. The district rejected the proposal and pressed Koontz for more, demanding that Koontz pay to enhance 50 acres of wetlands on the district’s property located between 4 and 7.5 miles away, by replacing culverts and plugging some ditches. Koontz refused the district’s unreasonable demand. The district then denied outright his permit applications, and would not issue permits unless and until Koontz submitted to its conditions. Koontz brought a lawsuit against the district.

The Legal Background — Since the late 1980s, the Supreme Court has held that a permit condition (also called an “exaction”) is not constitutional unless it has a “nexus” to a governmental purpose and it is “roughly proportion” to the impacts of the project. This is known as the Nollan/Dolan test, named after two Supreme Court cases. The test protects property owners from overzealous land use permitting officials. Until its ruling in June, there were two unanswered questions: • Is there a difference between the government simply denying a permit because the land owner would not accede to an onerous condition, and when it grants a permit with conditions attached?

• Is the Nollan/Dolan test limited to exactions of land (e.g., government asks for 10% of land to be set aside for park), or does it also apply to monetary actions (e.g., government asks for $10,000 to go towards building an off-site park)?

These two questions are quite important. If the Court had decided that Nollan/Dolan did not apply in either scenario, it would give the government expanded power to force unreasonable exactions upon developers by providing an easy workaround for the Nollan/Dolan test.

The Koontz Decision — Thankfully, the Supreme Court decided in favor of Koontz. Specifically, it ruled that Nollan/Dolan applies equally to situations where the government denies a permit and where the government grants a permit with conditions. In other words, if a property owner refuses to agree to outrageous conditions in a permit, and the government denies that permit, the government cannot later argue that there was no constitutional violation because the permit was never granted. The court also ruled that monetary exactions are subject to the same Nollan/Dolan analysis as land exactions.

Thus, it makes no difference if the government demands that the landowner give up real property or money as a condition to obtaining a permit.

For more information about this item, please contact NAHB staff, Thomas Ward at 800-368-5242 x8230 or via email at tward@nahb.org.

THE 2013 FORD F-SERIES TRUCKS MORE POWERFUL, CAPABLE & ADVANCED.

PORT ORCHARD FORD

1215 Bay Street, Port Orchard, WA 98366 • 360-876-4484

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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 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 . . . . . . . . . Dee Coppola

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

September 2013 Edition

Robert Baglio

Your HBA Dollars at Work for You

In this never ceasing environment of code updates and increased regulatory 2013 President oversight, as an HBA Member, you should know that your dues support a network of people and organizations that advocate continually for the construction industry. This advocacy is extremely important and it occurs on three different levels: locally, state — wide, and nationally. This three tiered support is provided by your local HBA for issues close to home, regional and state wide issues are supported by the Building Industry Association of Washington (BIAW), and federal issues are dealt with by the National Association of Home Builders (NAHB). At any given time, these three organizations are working on numerous issues that could affect the construction industry and they are always working in the best interest of the industry, trying to save their members money. The issues and areas of attention include tax code, housing programs, building/fire codes, land use requirements, permitting, L & I, building materials, financing, appraisals, environmental laws, and many more issues. These issues can pose significant impacts to the construction industry. It is important to have organizations looking after the interest of its members by staying informed and representing the interest of the entire construction industry.

Provided below are examples of some of the more significant issues these three organizations have successfully advocated for their members.

The BJC Group

Local Issues — Kitsap HBA 1. City of Port Orchard adoption of local amendments to 2012 Fire Code. Kitsap HBA successfully convinced the City Council to rescind an ordinance that would have decreased the square footage requirement for fire sprinklers in most commercial buildings by 50%.

2. City of Bremerton adoption of local amendments to the Fire Code. Kitsap HBA sat in on a series of meetings and worked with the City of Bremerton Fire Department to revise the local amendments. They provided input and feedback to ensure the fire code does not become more restrictive and costly making it more difficult to build in the City of Bremerton.

3. Kitsap County Department of Community Development (DCD) being open on Fridays (limited time from 10:00 - 2:00). Kitsap HBA lobbied and convinced the County Commissioners and Department of Community Development (DCD) Director the importance of being open on Fridays.

4. Kitsap HBA has worked with Kitsap County to stream-line the permit review process. This was achieved by assisting in the development of an Over-The-Counter Permit process as well as through actively providing input and feedback in the Department’s Lean Process efforts. Kitsap County’s implementation of these improvements has significantly reduced the plan review time of single family building permits.

It’s Fall and that means two GREAT events are just around the corner. Be sure to mark your calendar, RSVP to the HBA CGP office, and plan to attend these two HBA events. Coming up on Executive September 12th the Fall Season Vice President Social, also known as “Nothin’ But Fun!” At just $10 per person, you have to join us at McCloud’s for this old fashioned happy hour! (Food and door prizes included; drinks on your own).

On October 10th, is the annual General Membership Luncheon Meeting. This is an informative annual event where HBA members will network, vote on the 2014 Officers and Directors as well as handle other important HBA business. This $15.00 per person lunch will be at the Kitsap Golf and Country Club.

The market continues to improve and membership numbers do too. Take advantage of your investment by participating in events at the HBA. Register for both of these events on our website (www.kitsaphba.com) or call the HBA directly at 360-479-5778.

Teresa Osinski

State Wide Issues (BIAW) 1. At BIAW’s insistence, L&I has launched an “underground economy” taskforce to further study how to combat unregistered contractors. BIAW holds a seat on that taskforce. In the next few months L&I will launch an “ap” for your phone to more easily report (and track complaints) about unregistered contractors.

Further, due to BIAW’s ROII Select program management, L&I now must allow the past injury history of a worker to be considered, even when the injury wasn’t to the same body part. Finally, BIAW was able to use the recent budget process to get L&I to agree to make certain information available to ROII Select claims management staff electronically (in other words without delay).

2. Stormwater regulations. Working to ensure the latest stormwater regulations have options and alternatives available to make the new regulations more manageable.

3. Building and Energy Code Updates. BIAW is active in the analysis and review of the building and energy code updates.

They work with the State Building Code Council providing input and information as to the impacts and repercussions of proposed building and energy code changes.

4. BIAW works to ensure the election of pro-business and proconstruction candidates that support continued economic growth of the state. They track the voting record of all the politicians and provide this information to the members, so we can hold our elected officials accountable.

Federal Issues (NAHB) 1. Challenge to EPA stormwater regulations. Following regulatory and legal challenges by NAHB, the EPA withdrew its onerous limit for stormwater discharges.

2. The NAHB successfully persuaded the EPA to reject a proposal to add third party clearance testing to the Lead Renovation, Repair, and Painting Rule.

3. Flood insurance victory. NAHB advocacy prevented the loss of approximately 10,100 new home sales that would have occurred if the National Flood Insurance Program (NFIP) had expired.

This program has been reauthorized for another 5 years; thereby preserving the sales of these newly constructed homes across the United States.

4. Fire Sprinkler requirements averted in many States. NAHB has worked to defeat the requirements for mandatory residential fire sprinklers in many States throughout the Country.

5. Elimination of accessibility porch requirements. Recently there has been a lot of pressure to include provisions in the IRC to make all homes accessible to disabled persons, regardless of whether or not a disabled person lives in the home or not.

These are just a few of the issues that your local (Kitsap HBA), State (BIAW), and Federal (NAHB) organizations are working on to ensure that our industry is protected. These organizations analyze thousand of proposed code updates and they work to prevent requirements that increase the cost of construction without adding any measureable benefits. Your dues give these organizations the staff, means, and ability to be vigilant, advocating for the construction on a daily basis. Their efforts allow us to continue to work and stay focused on our daily operations.

Thank you for your membership. To join or renew, please call the HBA or look for the easy application on our website at www.kitsaphba.com.

September 2013 Edition

In February of this year, my article was on the Majority Coalition in the State Senate — a radical new approach to government Judy Mentor Eagleson where two State Senators Mentor Company dared to be different and 2013 Chair crossed the aisle to join the Republicans in creating a new Majority Coalition Caucus. On paper, the Democrats have a 26 to 23 majority but with the coalition, the scales are tipped with 25 votes going to the Republicans.

Each of the 25 members of the Coalition committed, in writing, to five principles. To promote job growth and a vibrant economy; craft a sustainable state budget by living within our means; provide for a world-class education system through reforms and enhancements; govern collaboratively to protect our most vulnerable while prioritizing the needs of middle-class Washingtonians; and set priorities for state governmen t and hold its agencies accountable. According to the coalition leaders, citizens across our state and our nation are tired of the partisan gridlock. All principles supported by the Affordable Housing Council of the HBA of Kitsap County So how did they do?

Proposals from the Governor and the House Democrats would have required tax increases of $1.2 billion and $1.3 billion respectively. The House Democrats also proposed spending another $575 million from the state’s rainy-day account.

Because of the Majority Coalition Caucus, the new operating budget plan invests $1 billion more in K-12 education than the previous budget and prevents a tuition increase at state-run higher education institutions, yet requires no new general taxes. At least a billion dollars in tax increases were avoided and the rainy-day fund wasn’t tapped.

With the death of Senator Mike Carrell of Lakewood in May we saw the tenuous nature of the 25 vote lead Coalition. So what is the future for the Majority Coalition Caucus?

There is talk that the most important election in Washington State this year is the 26th district Jan Angel — Nathan Schlicher Senate race.

This race offers the Republican Caucus a chance to pick up a seat and sol idify the control of the Majority Coalition Caucus. Jan Angel’s commanding win in the primary election gave us an indication that the voters like the bipartisan work of the Majority Coalition Caucus.

Historically, the candidate ahead on primary night usually wins the general election. With so much at stake, expect Democrats and special interest groups to organize their forces to try and defeat her — it is estimated that the total cost of this race could exceed $1.5 million per side.

The Affordable Housing Council of the HBA of Kitsap County recognizes that Jan Angel has been an integral part of our community, understands and supports our industry and is the right person for the job and thus has given her our endorsement for Washington State Senate.

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

ALL EMPLOYERS MUST COMPLY BY OCTOBER 1, 2013 Whether you offer your employees health insurance or not, there is a notification and reporting requirement you are obligated to comply with by October 1, 2013.

With the implementation of the Affordable Care Act, the Department of Labor is requiring that every employer provide notification of the new health insurance “exchanges” or “marketplaces” to each of their employees. The BIAW Health Insurance Trust wants to be sure our members have the opportunity to be in compliance with these new requirements.

Although many aspects of the Affordable Care Act are still being finalized, as it stands now, every company is required to send one of the referenced “Notice of Exchange” documents to all employees by October 1st 2013. The Department of Labor has issued a template for this notification you can use by copying the correct URL provided below into your browser and navigating to the form appropriate for your circumstance.

The BIAW Health Insurance Program is committed to providing your company assistance and guidance through the changing environment of health care reform. Our team of dedicated professionals can assist you, not only with this notification, but with any of the changes due to health care reform. Feel free to call us with any questions at 425-641-8093. Not currently using the BIAW Health Insurance program? Call for a FREE, no obligation quote today. You do not need to be an HBA member to receive a quote, but will be required to be a member of the HBA to get and maintain health insurance offered through the BIAW Health Insurance Trust.

Employers that currently offer a health insurance option to employees should view this information: http://www.dol.gov/ebsa/newsroom/tr13-02.html for guidance on compliance.

Employers that currently DO NOT offer a health insurance option to employees should view this information: http://www.dol.gov/ebsa/pdf/FLSAwithoutplans.pdf for guidance on compliance.

Register & Vote!

It’s your responsibility.

October 7 - If you missed registration for the primary, today is last day for reg./updating October 18 - Ballots mailed out & Accessible Voting Units at available voting centers October 28 - Deadline for in-person new Washington State voter registration. NEW ONLY November 5 - General Election

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September 2013 Edition

Welcome New Members Coultas General Contracting Robert Coultas POB 549 Poulsbo, WA 98370 (360) 697-2878 robertc@coultasgeneralcontracting.com And the SPIKE goes to...

John Armstrong Armstrong Homes

Rodgers Landscaping Tracy Rodgers 2075 Seabeck Hwy Bremerton, WA 98312 (360) 478-0285 tracy@rodgerslandscaping.com And the SPIKE goes to...

Justin Ingalls Kitsap Trident Homes Inc.

Wave Broadband Justin Harrel 4519 SE Mile Hill Dr. Port Orchard, WA 98366 (360) 871-5618 jharrel@wavebroadband.com And the SPIKE goes to...

Robert Baglio The BJC Group

NewLeaf Design Build Marie Peterson 46 Village Way PMB 171 Port Ludlow, WA 98365 (360) 437-8148 marie@newleafwa.com And the SPIKE goes to...

Richard Grandy Grandy Marble & Tile Inc.

Absolute ConcreteWorks LLC Steven Silberman 5795 NE Minder Rd Poulsbo WA 98370 (360) 297-5055 steve@absoluteconcreteworks.com And the SPIKE goes to...

Jim Heins Jennings-Heins & Associates Inc.

New Century Consulting Bill Effinger 20391 Fortune Place Poulsbo, WA 98370 (760) 736-3073 bill@ncconsulting.net And the SPIKE goes to...

Kevin Hancock The Legacy Group

Get the Washington State Building Code Updates!

Get all the updates through the Washington Association of Building Officials’ webpage! Visit www.wabobookstore.org/category_s/1835.htm to order the section or sections you need. Prices range from $17.00 to $21.00 a section (IRC, MRC, etc)

Thank You Renewing Members Over 30 Years MAP Ltd (34) Viking Fence Company (32) Better Than Average Builders (31) Over 20 Years Ecklund’s Drywall & Painting (26) Pacific Northwest Title Co. The Reijnen Company 20 Years Swift Plumbing Over 15 Years H & S Construction (19) TEC Construction Inc (18) Beisley Inc. (18) Timberland Bank (18) Bainbridge Landscaping & Topsoil

Over 10 Years Ullrich Contracting Inc Bird Electric Corp.

10 Years Wayne R Keffer Construction Over 5 Years Air Management Solutions LLC (9) Peninsula Paint Company (9) Ronald C Templeton PS Over 1 Year Hanley Construction Inc.

Professional Rain Garden Workshop — With Education Credits!

Two day workshop for green industry professionals covering the design and installation of Rain Gardens: benefits, regulations, site analysis, hydrologic modeling, materials specifications, maintenance and special attention to how to market these Low Impact Development (LID) features to your clients. Class is available for total of 11 CPH and CLT credits and presented by WSU Extension Kitsap. A database of businesses that have completed the training is provided to homeowners and small business owners in Kitsap County who are seeking to hire professional firms for Rain Garden projects. Thursday and Friday, October 17 and 18, 2013; 9:30-4:30 at a location in Bremerton TBD. Early Registration by September 3rd deadline is $60 per day/$100 for both days; after September 3rd, $85 per day/$150 for both days. Box lunch and beverages included. To register online: http://bit.ly/R8t8yM For more information contact Colleen Miko cmiko@co.kitsap.wa.us 360-307-4378.

Maximize Your Membership Is your company listing up to date on our website? Visit www.kitsaphba.com & check out the “Find A Member ” tab. Does your listing include your logo, YouTube video clips, Facebook link, etc? You should add this and more! Call the HBA to learn how to maximize the website (360)479-5778.

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

Owners leaving Sugardaddy’s for new scene in London James Harris, center, who opened Sugardaddy’s salon in 2005 in downtown Port Orchard, and his partner Tim Waibel are making a longplanned move to London in September. Their goal is to eventually open a new styling salon there. Jessica Tudela will be salon manager at Sugardaddy’s.

Tim Kelly photo

“I think we’ve done what we want to do here, and now the girls are going to take the torch.”

— James Harris, owner of Sugardaddy’s salon in Port Orchard The dream of one day having a London salon traces to an earlier trip Harris and Waibel made to England a few years ago to visit aunts, uncles and cousins Harris had never met before.

Anyone who might think this is a wellheeled gay couple jetting off on a whim would be way off base … except for the gay part, of course. They are not extravagant, having scrimped and saved (and held an extended garage sale recently at their Port Orchard residence) and planned to be able to make this trans-Atlantic move while also assuring the continued success of Sugardaddy’s back home.

One thing they didn’t plan for was a lifechanging experience while preparing to embark on the adventure of a lifetime. That happened in early May when Waibel suffered a stress-related heart attack and had to be rushed to the hospital for emergency surgery.

Fortunately, he’s made a remarkable recovery, aided by some lifestyle and diet changes he and Harris made to reduce stress

Rain garden workshop offered for landscape and building professionals The 2013 Professional Rain Garden Workshop is a twoday session for green industry professionals covering the design and installation of rain gardens: benefits, regulations, site analysis, hydrologic modeling, materials specifications, maintenance and special attention to how to market these Low Impact Development (LID) features to clients.

The class is available for total of 11 CPH and CLT credits and is presented by WSU Extension Kitsap. A database of businesses that have completed the training is

and be healthier. At his most recent checkup, Waibel’s doctor significantly reduced his meds and cleared him for takeoff.

Harris, the expert stylist and nurturing trainer of apprentices, opened Sugardaddy’s in 2005, after previous attempts at establishing an avant garde salon in Port Orchard. He and Waibel, who manages the business end, met the next year at the Manette Saloon, a connection facilitated by a bartender who was a mutual friend.

The pair will try to make a go of it in London by doing what they’ve done together so well here.

“What we realized,” says Waibel, a former restaurauteur, “is we love to create an experience for people.”

Their staff as well as their customers appreciate the unique experience that is Sugardaddy’s.

“They definitely changed my life,” says Billy Prannin, a stylist who benefitted from Harris’s tutelage from fall 2009 until she moved to Oklahoma this year to be near family.

provided for homeowners and small business owners in Kitsap County who are seeking to hire professional firms for rain garden projects.

This is the third year for the workshop, which will be held Oct. 17-18 from 9:30 a.m. to 4:30 p.m. at a location to be determined in Bremerton. Early registration by Sept. 3 is $60 per day or $100 for both days; after Sept. 3 it is $85 per day or $150 for both days. Box lunch and beverages will be provided. To register online: http://kitsap.wsu.edu. For more information, contact Colleen Miko at cmiko@co.kitsap.wa.us or 360-307-4378.

Harris and Waibel were accommodating when Prannin, a single mother, needed to bring her young daughter with her to work.

And she was grateful that when they changed their business structure a couple years ago from leasing stations at the salon to having stylists be Sugardaddy’s employees, they allowed her to continue on a lease basis because she had built up a large clientele.

“In two years I went from not knowing if I was going to make it, to not having enough space to book everybody” who wanted appointments, she says.

“James and Tim are really fun to work for,” Prannin adds. Sugardaddy’s provides styling services that are the equal of large urban salons like the one in Seattle where she did an apprenticeship, but with a different feel, she says. “They just created this environment that was fun. I felt like I was part of something rather than just an employee.”

The challenge of maintaining the welcoming atmosphere and spirit of Sugardaddy’s falls to Jessica Tudela. The petite salon manager who’s worked there nearly two years has known Harris since she started bringing her son, now 18, for haircuts when he was a toddler.

“We’ll still keep their values,” Tudela says, confident that clients will be kept happy even though “you just can’t replace James.”

Harris says it’s bittersweet as he hands off his clients, but he knows they’ll be in good hands with the staff he’s leaving behind.

“We’ve created a wonderful jumping-off point here,” he says, a bit wistf ully. “I think we’ve done what we want to do here, and now the girls are going to take the torch …”

“I think the most difficult part is taking that step away, and let the business run,” Waibel says.

So now the countdown’s on to Sept. 14, which will be their last day at work and the night of a send-off that’s certain to be emotional.

Occasional party nights have long been part of the Sugardaddy’s milieu, with Harris and Waibel giving all donations for free beer, wine and entertainment (which again will feature their longtime friend Jamie Nova) at the events to causes such as Relay for Life. This time, the boys are the beneficiaries, to help them on their way to whatever lies ahead.

Pulling up stakes and leaving a thriving hometown business to start a new venture in another country may seem daunting, but they’re willing to take the risk and eager to go.

“For me,” Harris says, “failure would be not ever attempting it.”

Local gourmet foods company adds sweet, spicy chocolate bars The Two Snooty Chefs line of gourmet foods has developed a new line of sweet and spicy chocolate bars. The artisan chocolate bars use the unique flavor profiles from their gourmet spice blend creations. The five distinctive chocolate bars are Mocha Molé milk and dark chocolate, Spicy Sedona milk and dark chocolate, and their Oo-La-La white chocolate.

More information on Port Orchard-based Two Snooty Chefs is available on the website: twosnootychefs.com.

August 2013 Kitsap Peninsula Business Journal • KPBJ.com 23

By Tim Kelly, Editor One partner is four months removed from a heart attack, and their 1997 Ford Windstar minivan flatlined recently, not to be resuscitated. But that won’t keep “the boys” — as Sugardaddy’s owners James Harris and Tim Waibel are known at their popular hairstyling salon in Port Orchard — from their long-planned grand adventure that will take them from Bay Street to the sophisticated suburbs of London.

They haven’t found a site yet for the salon they plan to open, but they’ve identified some London-area boroughs that seem like viable locations for Sugardaddy’s U.K. — although that won’t necessarily be what they call their new salon. (They have, however, created a Facebook page under that name.)

Home will be a 65-foot rented houseboat on the Thames River, practically in the shadow of a former royal palace once occupied by Henry VIII. Today it’s a tourist attraction that will set you back £17.60 (about $28) for admission.

But the entrepreneurs from Sugardaddy’s aren’t looking to tap into the tourist scene in Britain’s capital. The lads seek edgy, not stodgy; they’re looking to immerse themselves and their new salon in a vibrant “high street” — the Brits’ generic term for the main thoroughfare in a neighborhood or district where the principal shops and businesses are found.

“Their culture over there at night is massive,” says Harris, and an essential part of the nightlife scene is personal style, which Sugardaddy’s is all about.

The Facebook page anticipating their London salon is already previewing that marketing pitch: “Sugardaddy's U.K. is THE place for the prefunk to get your glam on!”

Besides scouting for a fashionable high street scene, there are more mundane tasks ahead when Harris, 43, and Waibel, 47, make their big move in September. “I think realistically we’re looking at a year” to get a business open, Waibel says.

“We’ll be finding out whether it would be better for us to open as an American company or a British company, with my dual citizenship,” Harris notes.

He was able to obtain British citizenship this year because his mother hails from Scotland, though she hadn’t visited her homeland in half a century until last year, when she was persuaded to overcome her intense dread of flying to go on a trip to the U.K. with her American husband, their son and his partner.

What do new investors really need to know?

By Michael Allen If you’re starting out as an investor, you might be feeling overwhelmed. After all, it seems like there’s just so much to know. How can you get enough of a handle on basic investment concepts so that you’re comfortable in making wellinformed choices?

Actually, you can get a good grip on the investment process by becoming familiar with a few basic concepts, such as these: Stocks versus Bonds — When you buy stocks, or stock-based investments, you are buying ownership shares in companies.

Generally speaking, it’s a good idea to buy shares of quality companies and to hold these shares for the long term. This strategy may help you eventually overcome shortterm price declines, which may affect all stocks. Keep in mind, though, that when buying stocks, there are no guarantees you won’t lose some or all of your investment.

By contrast, when you purchase bonds, you aren’t becoming an “owner” — rather, you are lending money to a company or a governmental unit. Barring default, you can

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

www.edwardjones.com

expect to receive regular interest payments for as long as you own your bond, and when it matures, you can expect to get your principal back. However, bond prices do rise and fall, typically moving in the opposite direction of interest rates. So if you wanted to sell a bond before it matures, and interest rates have recently risen, you may have to offer your bond at a price lower than its face value.

For the most part, stocks are purchased for their growth potential (although many stocks do offer income, in the form of dividends), while bonds are bought for the income stream provided by interest payments. Ideally, though, it is important to build a diversified portfolio containing stocks, bonds, certificates of deposit (CDs), government securities and other investments designed to meet your goals and risk tolerances. Diversification is a strategy designed to help reduce the effects of market volatility on your portfolio; keep in mind, however, that diversification, by itself, can’t guarantee a profit or protect against loss.

Risk versus Reward — All investments carry some type of risk: Stocks and bonds can decline in value, while investments such as CDs can lose purchasing power over time. One important thing to keep in mind

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is that, generally, the greater the potential reward, the higher the risk.

Setting goals — As an investor, you need to set goals for your investment portfolio, such as providing resources for retirement or helping pay for your children’s college educations.

Knowing your own investment personality — Everyone has different investment personalities — some people can accept more risk in the hopes of greater rewards, while others are not comfortable with risk at all. It’s essential that you know your investment personality when you begin investing, and throughout your years

as an investor.

Investing is a long-term process —It generally takes decades of patience, perseverance and good decisions for investors to accumulate the substantial financial resources they’ll need for their long-tem goals.

By keeping these concepts in mind as your begin your journey through the investment world, you’ll be better prepared for the twists and turns you’ll encounter along the way as you pursue your financial goals.

Michael Allen is an Edward Jones financial advisor in Silverdale.

Financial advisors present seminar on preparations Jessie Nino and Pat McFadden, Edward Jones financial advisors in Poulsbo, are hosting a free educational seminar titled Key Life Decisions: Are You Prepared? on Sept. 14 from 911:30 a.m. at Martha & Mary, 19160 Front Street NE, in Poulsbo.

Other guest speakers for this event include attorney Tony Hinson; certified public accountant Evelynda Cena; Betty Herman from Martha & Mary; and Lynn Fermstad from Lewis Funeral Home.

The seminar will focus on four major topics: • Protecting What's Important • Estate Planning • Understanding Taxes • Care Options and How to Prepare The seminar is free, but space is limited. To make a reservation, call Toby Craig at (360) 779-6450.

Do You Prepare More for Family Vacations Than You Do for College?

Having fun with your family is important.

But nothing is more vital than your child’s future. That’s why at Edward Jones, we can help you put together a strategy to save for college.

Using our education funding tool, we can estimate future expenses of more than 3,000 schools and then recommend a financial strategy based on your unique needs. True, vacations are great. But graduation ceremonies are even better.

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What are annuities?

Fixed annuities and single premium immediate annuities, which are not issued by fraternal organizations, may also be covered by a state guarantee association. So if an insurance company should fail there may be a secondary safety net to protect the owner of the contract. Each state has its own guarantee association, and you can learn more at nolhga.com.

Fluctuations in the value of variable annuities where a consumer has agreed to bear market risk are generally not covered by any guarantee association. However certain guarantees offered by variable annuities might be covered. These annuities are designed to fluctuate based on market conditions.

If you are looking for safety of your principal, then a fixed annuity would be considered safer than a variable annuity.

Who should buy an annuity?

From my experience, people who purchase annuities tend to be more conservative and do not want to gamble or risk all of their income needs in retirement to the whims of the stock market. If you think about it, when you buy an annuity contract you are basically buying insurance on your income.

We tend to insure the things that are important to us. We insure our homes so if your home burns down we would not need to deplete our life savings to rebuild our house. We insure our lives so that if we die our loved ones will have the resources they need to be able to manage the transition.

We insure our health so that if we get very sick our life savings is protected from a catastrophic loss, and we pool resources with other insureds to make sure we have the care we need and do not lose every penny we have saved due to a health crisis.

When you buy an annuity you are insuring your income needs. Generally the risks to your income are either inflation, longevity and stock market volatility. An insurance company can pool life expectancy risks to help make sure you never have to worry about running out of income in retirement.

Visit http://www.aging.senate.gov/letters/d114 00.pdf to view a report that was released in 2011 by the Government Accountability Office (GAO) that explores retirement income and the use of annuities.

How can you find the best annuity?

One of the reasons annuities are hard to shop for is because a lot of contracts, features, options and riders are available, plus annuity contracts can be complicated and hard to understand. To make matters even more confusing, they are regulated by the state you live in and not the federal government. So different annuities will be available to you depending on where you live.

The most important thing you can do is find an independent licensed insurance agent who has the ability to shop around with multiple companies to help you find the best annuity for your situation. Try to get quotes from more than one person.

Make sure you find an agent who explains both the advantages and disadvantages of

the contract you are considering.

Many times agents have a reputation for telling you all about the benefits of annuities and leave out the specifics about the downsides of the contracts. A perfect investment or insurance contract does not exist. Every financial vehicle has advantages and disadvantages, and it's important to weigh all of the benefits as well as the risks and fees to make sure the contract is not only appropriate, but also the very best option available for you.

• Jason Parker is the president of Parker Financial LLC, a fee-based registered investment advisory firm working primarily in wealth management for retirees. His office is

located in Silverdale. The opinions and information voiced in this material are not intended to provide specific advice or recommendations for any individual, and do not constitute a solicitation for any securities or insurance products. All information is believed to be from reliable sources; however, no representation is made as to its completeness or accuracy. Please consult your trusted professional for advice and further information. Jason Parker is insurance licensed and holds his series 65 securities license. He offers annuities, life and long-term care insurances as well as investment services.

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

Can you benefit from municipal bonds?

By Pat McFadden Over the past couple of years, the economic picture has brightened for many cities and states — but some of them are still facing potential financial problems. As a citizen, you may well have concerns about these issues.

And as an investor, these financial woes may affect your thinking about one particular type of investment vehicle: municipal bonds.

Specifically, given the difficulties faced by a few municipalities, should you consider adding “munis” to the fixedincome portion of your portfolio?

It is true that municipal defaults, though still rare, rose in 2012. But we haven’t experienced any sharp increases in defaults in 2013. Overall, default rates for municipal bonds are low — much lower than for corporate bonds of comparable quality, according to Moody’s Investor Services.

Of course, there are no guarantees, but if you stick with “investment-grade” Bonds, page 26

August 2013 Kitsap Peninsula Business Journal • KPBJ.com 25

By Jason R. Parker An annuity is a contract between you and an insurance company. Generally speaking, annuities are either immediate or deferred.

An immediate annuity generates income right away.

A deferred annuity may pay income in the future and is also tax-deferred.

Sometimes people buy a deferred annuity and never start the income. They just allow the account to grow in a tax-deferred status. Tax-deferred means you don’t pay taxes on the interest you earn until you withdraw money from the contract.

What are the different types of annuities?

Immediate annuities are often called single premium immediate annuities and in the industry they are referred to as a SPIA. A SPIA is designed to generate income on a guaranteed basis. Essentially you give the insurance company a lump sum of money, and they guarantee you an income stream.

The income can be guaranteed for a lifetime or for a certain number of years (known as period certain) like five years because you are laddering your income stream in retirement.

Deferred annuities generally do not produce any immediate income, although they could. Deferred annuities are designed to grow until income is needed. These deferred annuities generally come in three flavors: 1) You can purchase a deferred fixed annuity that just pays a fixed rate of interest. This type of contract is similar to a certificate of deposit offered by a bank, but of course annuities are not FDIC-insured.

2) You can purchase a variable annuity that generally works like a mutual fund and will fluctuate with the stock and bond markets.

3) Or you can purchase a newer hybrid annuity, which are called fixed indexed annuities, and guarantee a fixed interest rate but allow you to participate in the upward movement of an equity index such as the S&P 500 or the Dow Jones Industrial Average. These hybrid annuities are designed to protect your principal from a stock market decline, but allow you to earn interest based on the upward movement of the stock market index. We refer to these as hybrid annuity contracts because they combine the elements of safety found in a fixed deferred annuity and allow for greater return potential as found in a variable annuity.

Are annuities safe?

The answer is both yes and no. There are a lot of different types of annuities so it really depends on the contract you are purchasing. An annuity is a contract with an insurance company, so the degree of safety, in large part, is determined by the financial strength of the company offering the contract.

Back to school: Business and the art of being a third-grader

26 • Kitsap Peninsula Business Journal • KPBJ.com August 2013

By Dan Weedin As you are reading this column, students aged 5 to 17 are getting ready to shake off the frivolity of summer and descend into school hallways for another year of reading, writing and applied technology.

As a member of my local school board for the past four years, a former high school basketball coach, a volunteer, and a parent of two daughters that matriculated through the system, I have a pretty good insight into the workings of student life. From my surveillance, I posit that we as business leaders, executives, and entrepreneurs would do well to observe the average third-grader as a source of inspiration on how to run our own businesses and careers.

Why third-graders? Nine-year-olds have a unique perspective on life. In my experience of reading to children at schools, I find that the toughest and most candid questions come from 9-year olds. They are in the rare age between “not knowing much” and “I know it all” that affords great wisdom and perspicacity. The third-grader is the nirvana of the school-aged student for

us to study and learn from.

Here are Dan’s 7 Characteristics on the Business and the Art of Being a ThirdGrader: Don’t be afraid to ask questions. I once had someone approach me after a speech I gave to thank me. She admitted to being afraid to ask a question during the Q&A segment because she didn’t want to be ill-perceived. As we grow older, there is some unaccountable quirk that humans seem to get about asking questions. We go from a high level of self-confidence in asking anything to being frightened that we might ask something “dumb” and look bad.

The dumb part is not asking the question and failing to grow and learn. This seems to be something left over from our adolescent teenage years that teach us that we will be judged cruelly based on any perceived weakness. Third-graders understand that asking is growing.

Judge on observed behavior, not appearance. Another adolescent trait that we seem unable to shake completely.

Third-graders don’t care what you wear or if you’re having a bad hair day (for boys this is the norm.) They end up making opinions based on what others do and say. In business, we often are quick to judge based on lack of knowledge, hearsay or prejudices. Instead, we should focus on

what we observe and draw conclusions from that.

Consider nothing out of the realm of possibility. I’ve watched third-graders brainstorm and absolutely nothing is off limits. As business people, we can be reticent to think big. I mean really big. We need to take brainstorming breaks (i.e. strategy sessions) that include a peanut butter and jelly sandwich and chocolate pudding. We need to think big dreams and not readily discard them, but consider ways to make them happen.

Take time to play… Really play. Play is essential for balance and sanity. Thirdgraders never waste a recess. Never. Every second is spent playing hard. For you, I’m not referring to vacation. I’m talking about daily play. Do something that is fun and plan it in your schedule. You need to break up the demands of the day and free your mind. I play with my dogs (dogs are an awful lot like third-graders.) What will you do?

Have a passion for learning. Thirdgraders legitimately love to learn. They have not yet become jaded into thinking that learning is not cool. That’s why they ask questions. As adults and business people, we can never accept stagnation.

There is always something new to learn personally and professionally. Be like a third-grader and assertively seek out and create new learning opportunities.

Respect your teacher. Third-graders seem to love their teachers. You can tell because they are unafraid to joke with them, play with them, and be respectful of

their demands. Do you respect your customers? The simple answer is “yes.” Let me ask you, how easily accessible are you?

How quickly do you return calls and emails? How good of a listener are you?

How often do you ask questions, play with them, and add value to their lives?

Start and end your day happy. Thirdgraders start happy; learn hard; play hard; eat hard; and then go home happy and smiling. They are the ultimate self-fulfilling prophecy. How many adults roll out of bed sounding like Eeyore (the gloomy donkey from Winnie the Pooh fame) and come home as crusty as Ebenezer Scrooge with a migraine? That is also a self-fulfilling prophecy. Your attitude determines your day, week, month and year. We all know this, yet too many of us hit the gravitational pull to a default position of apathy, burnout and boredom. Maybe we need a little more of that bouncy tiger instead!

Bottom line — we can all learn from that special 9-year-old creature. The good news is that every single one of us was once a thirdgrader and that spirit still resides within us.

The best thing you can do for your career and life is to invite her or him out to play every day. You will be happy you did!

• Dan Weedin is a Poulsbo-based strategist, speaker, and mentor. He coaches business leaders and executives to become stronger leaders, grow their businesses, and enrich their lives. 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.

BONDS

most appropriate approach for your situation.

Diversification — Municipal bonds can help you diversify the fixed-income portion of your portfolio if it’s heavily weighted toward corporate bonds. And you can even diversify your municipal bond holdings by building a “ladder” consisting of munis of varying maturities.

Once you’ve built such a ladder, you can gain benefits in all interest-rate environments — when rates are low, you’ll still have your longer-term bonds working for you (longer-term bonds generally pay higher rates than shorterterm ones), and when interest rates rise, you can reinvest the proceeds of your shorter-term bonds at the higher rates.

Consult with your financial advisor to determine if municipal bonds can be an appropriate addition to your portfolio, as investing in bonds involves risks, including credit risk and market risk.

Bond investments are also subject to interest rate risk such that when interest rates rise, the prices of bonds can decrease, and the investor can lose principal value if the investment is sold prior to maturity. Investors should evaluate whether a bond ladder and the securities held within it are consistent with their investment objectives, risk tolerance and financial circumstances.

• Pat McFadden is an Edward Jones financial advisor in Poulsbo.

from page 25 municipal bonds — those that receive the highest grades from independent rating agencies — you can reduce the chances of being victimized by a default. And municipal bonds offer these benefits: Tax advantages — Municipal bond interest payments are free from federal taxes, and possibly state and local taxes, too. (However, some munis are subject to the alternative minimum tax, as well as state and local taxes.) This tax treatment means you would have to earn a much higher yield on other types of bonds to match the “taxable equivalent yield” of municipal bonds.

Civic benefits — By adding quality municipal bonds to your portfolio, you can help support worthwhile projects in your community, such as construction of schools and hospitals.

Steady income — Barring a default, you will receive a regular, predictable income stream for as long as you own your municipal bonds. However, if you currently own many long-term munis, you may want to consider reducing your overall position. Eventually, rising interest rates will push down bond prices, and long-term bonds carry added risk because their prices will decline more as interest rates rise. Work with your financial advisor to determine the

SAFE Boats delivers first 65-foot Coastal Command Boat to Navy

SAFE Boats International photo

The 65-foot Coastal Command Boat was built at the SAFE Boats facility in the Port of Tacoma.

Bremerton-based SAFE Boats International recently delivered the 65-foot Coastal Command Boat (CCB) to the Navy’s Coastal Riverine Group 1 in Coronado, Calif.

The CCB is the first vessel of if its kind and represents the next generation of the Naval Expeditionary Combat Command’s fleet of patrol boats and combatant craft. Its unique combination of size and agility enable it to patrol shallow littoral areas as well as deeper, open-water regions.

The 65-foot CCB is an early variant of the soon-to-be-delivered, 85-foot MKVI Patrol Boat. The CCB is powered by twin diesel engines and water jets, is capable of speeds in excess of 35 knots and can maintain cruise speed for up to 24 hours. It

features a pilothouse and a main deck cabin with shock-mitigating seating for up to 18 crew members and features integrated working stations. The CCB is equipped for crew-served and remotely operated weapon systems, advanced thermal imaging and features a hydraulic crane system.

“Delivering the CCB is a major step forward for SAFE Boats as we move into building larger boat platforms and systems,” said CEO Dennis Morris. “We are now in the unique position to offer our global customers a wide range of platform sizes to meet their broad mission needs.”

The vessel was manufactured at SAFE Boats International’s Large Craft

Production Facility at the Port of Tacoma, and is one of the largest platforms the company has produced to date. Navy personnel recently underwent specialized training at the Tacoma facility’s newly launched training center, where everything from vessel operation to advanced systems maintenance was taught. The CCB was then taken to the northern Puget Sound where extensive testing was performed prior to delivery.

SAFE Boats International is a leading provider of fast-response and security boats to state, county and municipal law enforcement as well as commercial, federal and international agencies worldwide.

Benchmarking is knowledge that can help you elevate your company one of them.

Benchmarking Isn’t a Perfect Science However, it's true. No two companies are exactly the same. There are differences in product line(s), categorization of revenue and expenses, and the specific marketplace in which companies do business.

But, there is power in the law of averages. If there are enough companies reporting, then trends begin to emerge. And those trends — or significant variances from the average — are what you need to pay attention to.

For instance, if your operating expenses are 10 percentage points above the average or you inventory turns are three times your peer group, that is probably a good place to look for opportunities.

Benefits of Benchmarking Benchmarking can help you identify areas for operational improvement, develop operating, and financial

Financial advisor hosts seminar on money management for women

During the seminar, participants will learn more about: • What one can do now to prepare for retirement • Options to pay for a child's or grandchild's education • Developing a strategy to help achieve financial goals The seminar is free, but space is limited.

To make a reservation, call Logan or Beth Halvorson at 360-692-1216.

Edward Jones financial advisor Donald Logan of Silverdale is hosting a free educational seminar titled "A Woman's Guide to Money Matters" at 5:30 pm on Sept. 26 at Edward Jones Investments, 2416 NW Myhre Road, Suite 102 in Silverdale.

BI Downtown Association recognized by national Main Street program The Bainbridge Island Downtown Association (BIDA) is one of only a dozen towns to be earn the designation as a 2013 Washington Main Street Community.

The award is granted to a limited number of accredited Main Street communities for exceptional commitment

to downtown revitalization and the Main Street 4-Point Approach.

National Main Street Center president and CEO Patrice Frey visited Bainbridge Island's downtown during her recent "On the Road" swing through Western Washington, and she presented BIDA executive director Andrea Mackin with national accreditation and state recognition as a 2013 National Main Street Program.

targets as well as provide input for strategic planning.

My guess is there will be no big surprises. You know where you excel and where you don't. But seeing and quantifying the gap can be very powerful. And, sometimes that "gap" is wider than you ever imagined.

In some areas, you might be doing well. Perhaps your collection efforts are really strong. In that case, take a moment to pat yourself on the back.

In those areas where you could use some improvement, embrace the knowledge and develop strategies and initiatives for resolution.

Benchmarking Is a Powerful Tool No matter what kind of business you are in, there is most likely meaningful data available to quantify the "gap" in key financial and operational areas between you and

your competition. Armed with this knowledge you can focus on improving those areas with the most opportunity.

A good benchmarking study can help make a poor-performing company good and a well-performing company great.

• Kelly Deis owns Turning Point Financial, a management consulting firm offering strategy, finance and operations consulting services to local businesses.

She is also a volunteer mentor for Accelerate Kitsap, a nonprofit business mentoring organization that helps local business owners grow their companies.

Accelerate Kitsap mentors are experienced business and professional people who volunteer their time to help entrepreneurs solve problems and find ways to take advantage of new opportunities. You can learn more at AccelerateKitsap.org.

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August 2013 Kitsap Peninsula Business Journal • KPBJ.com 27

By Kelly Deis, Accelerate Kitsap Benchmarking compares your performance against other similar companies. Any metric is ripe for benchmarking — financial, quality standards, service levels, time to market, you name it. If it can be quantified and measured across comparable companies, it can be benchmarked.

The trick is getting the data. With the exception of financial data, most of this information isn't public. And, you can bet, the best-in-class performers are going to keep it that way!

The good news is that financial benchmarking can be incredibly helpful and the data is easily available.

But, you say, "My business is an anomaly — no one does it exactly like us." You would be surprised how many times I have heard this.

Did you know that there are over 1,000 industry codes representing over 7 million businesses, not including the government? That's really a lot! Surely your business closely approximates

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

How to avoid negative effects of cliques in your workplace

By Julie Tappero “They whisper about me behind my back and stop talking when I enter the room. They say mean things about me and they don’t include me in their social activities. They have their little clique and they leave me out because I’m not part of it!”

Sound like something you’d hear from your kid over dinner about their school day? Or did you, as we did, just have this conversation with one of your employees? Cliques don’t just happen in high school. The mean girls have graduated and now they may very well be working in your business! What impact do cliques have on our businesses and what, if anything, should we do about it?

A recent CareerBuilder survey revealed that 43 percent of workers complained of cliques in their workplace. With so many businesses affected by cliques, it’s worth it to review the positive and negative aspects of cliques and how to manage them in your business.

Oftentimes cliques form in the workplace based on a variety of factors from shared workspaces, departments, interests, demographics, and personalities. The group forms a dynamic and pulls together, developing a bond. Because of that bond, some good things can happen.

For instance, the group develops a camaraderie which can make being at work more fun. This can result in better morale, more productivity, and better attendance. If the clique is a complete team with a job to accomplish, it can boost creativity and help the team achieve higher goals.

But obviously there are some downsides to cliques. Just by the dictionary definition of a clique, “a small group of people, with shared interests or other features in common, who spend time together and do not readily allow others to join them,” the inherent problems become apparent. By their nature, cliques are exclusive, leaving others on the outside.

Those within the clique risk being shut off from experiencing the benefits of a diverse group of opinions and perspectives.

By choosing to align themselves with a particular group of people, they may actually be limiting their own opportunities to advance within the company. If the leader in the clique is a negative person, the entire group can become toxic, spreading poison throughout the organization.

For those on the outside of the clique, they, like my employee, may complain of feeling left out and alienated. Even worse, though, is that outsiders can feel like they are being bullied and complain of a hostile work environment.

The CareerBuilder survey shed some light on what workers do when there are cliques in their workplaces. Twenty percent of employees reported they’d done something they didn’t want to do just to fit in with their co-workers. That could be something innocuous, like watching a TV show they weren’t interested in. It could also be something more harmful, such as making fun of another co-worker, or pretending to not like someone.

The survey also reveals that company leaders play a role in this issue. Almost half of the workers who report that there are cliques at their work say their boss is a part of the group. The pressure is great to participate in a clique when a supervisor is part of it. And employees outside the circle are sure to think those within receive better assignments, more money, promotions and favoritism by participating.

If your workplace has a clique problem, what can you do to ensure that it’s not creating a toxic environment for some of your employees? Start by looking at your own behavior. Are you part of a clique? It’s a part of human nature to like some people more than others, but as a leader in our organizations, it’s up to us to treat all of our employees fairly. So start by cleaning up your own house first.

Create a team environment throughout your entire organization. Recognize that work friendships will exist, and that’s not necessarily a bad thing. Allowing friendships to develop into exclusive groups to the detriment of others is a bad thing. Put people from different departments, buildings or groups together to work on projects. In other words, create some crossfunctional teams that break down the perimeters of the cliques.

Emphasize your corporate values to your staff. Let them know that every member of the team is important and is to be treated that way. Train your team members on open communication and positive methods of conflict resolution.

Sometimes, resentments and issues exist amongst a small group of people because there aren’t tools present in the workplace to effectively resolve it. Give your employees the tools they need to constructively resolve disputes without having to involve their friends.

Regularly conduct workplace training.

Make sure your supervisors have been trained to recognize and deal with bullying and harassment. Train them on the value of diversity in the workplace as well. In turn, they should train their employees on the importance of a workplace free of bullying and harassment, where a diverse workforce is valued and appreciated. Your employee handbook should reinforce these values.

Have companywide social events that give everyone a chance to participate. Some people are not joiners by nature, so they end up not being a part of a particular group.

Company-sponsored pizza lunches, or Friday afternoon barbeques can casually bring the

entire organization together and give everyone the opportunity to be included.

If your workplace has a clique, don’t stick your head in the sand. Thirteen percent of workers surveyed by CareerBuilder said the presence of office cliques had a negative impact on their career, according to Rosemary Haefner, vice president of human resources at CareerBuilder.

A negative work environment lights a fire under an employee who may already be thinking about switching jobs. Don’t lose a valuable employee because the mean girls have taken over the office!

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

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

Harrison Medical Center hires new chief nursing officer Jeanell M. Rasmussen has joined Harrison Medical Center as the organization’s new chief nursing officer.

She most recently held the same position at Providence Centralia Jeanell Hospital in Centralia, Rasmussen Wash. While there, she led interdisciplinary teams focused on developing coordination of care programs across the patient care continuum, from doctor’s office to hospital, and through post-discharge care planning.

Rasmussen succeeds Cynthia May, who left earlier this summer to take the position of specialty director for acute care at Saint Joseph’s Hospital and Emory Healthcare in Atlanta.

“I am honored to serve with the Harrison Medical Center leadership team on behalf of our patients and community,” said

Rasmussen, who received her master’s degree in nursing in June 2011 from the University of Washington, Tacoma. She also holds a master’s in organizational leadership degree and a graduate certificate in human resources from Chapman University. “I look forward to the opportunity to support and improve all aspects of the patient care experience.”

“Jeanell brings to our organization specific experience and success in ensuring deployment of electronic medical records and medication technology in the bedside nursing environment,” said Adar Palis, Harrison’s executive vice president and chief operating officer. “Her leadership in those areas, along with her commitment to fulfilling our values of empathy, innovation and accountability, will ensure her lasting contribution to quality patient care.”

Rasmussen is a member of the American College of Healthcare Executives and the American Organization of Nurse Executives.

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Waste Wise @ Work

Newsletter — September 2013

Waste Reduction for Local Businesses We Recycle!

We’d like to recognize the following businesses who have met the membership criteria and are now official members of the program:

Your company can reduce waste, too!

Complete a Waste Wise @ Work Membership Application On Our Website

Almost 100 businesses have already participated in Kitsap County’s Waste Wise @ Work program to help businesses and organizations reduce waste. Join this group of businesses by contacting Kitsap County now. Find out how your businesses can reduce waste, recycle more, and keep dollars out of the dumpster.

Here’s what you’ll get:

Get the recognition you deserve:

Business Recycling Kits Businesses can request new kits for helping to set or improve recycling. The kit includes: information about local recycler options, resources for recycling unusual items such as CFLs, and tips for reducing waste.

Recycling Containers Durable, blue, deskside recycling containers are provided as an incentive for businesses that improve or add recycling. There is a limit of ten per business, while supplies last.

Recycling Stickers Stickers with photos of items that are acceptable for recycling are available to place on containers, on employee boards, or to post above containers.

Onsite Waste Evaluations by Recycling Specialist Businesses can have a recycling specialist visit their location to do a quick onsite review, provide recommendations, and help implement new conservation strategies.

The Waste Wise @ Work program recognizes businesses with outstanding recycling and waste reduction practices.

Qualifying businesses receive local recognition, a certificate, a window cling, and rights to use the “Waste Wise @ Work” logo to show customers they recycle.

Here are some useful web pages: • What Do I Do With It? This database lists recyclers for many unusual materials, including paint, electronics, and batteries. http://www.kitsapgov.com/sw/recycle.asp • Local recyclers — Call for more information on pricing. http://www.kitsapgov.com/sw/pdf/3741_Business_Recycling.pdf • Waste Wise @ Work application: http://www.kitsapgov.com/sw/ww.htm

Eddie Bauer: Ready, Set, Go Green!

Congratulations to the Silverdale Eddie Bauer store, recently certified in the Waste Wise @ Work program.

Highlights from their waste reduction and recycling accomplishments include: • Upgrading recycling service from “cardboard only” to “commingled” (meaning paper, bottles, and cans now accepted in the same container).

• Purchasing recycled content products whenever possible, including toilet paper, paper towels, office paper, and office supplies.

• Reusing signs and store materials, instead of tossing them. Their well organized system keeps signs, hangers, and racks for reuse.

Contact Kitsap County Public Works, Solid Waste Division: 360-337-4898

www.kitsapgov.com/sw/ww.htm • solidwaste@co.kitsap.wa.us

August 2013 Kitsap Peninsula Business Journal • KPBJ.com 29

Art Anderson Associates Bainbridge Island Historical Museum Bremerton Tennis and Athletic Club Clark Whitney, PS Cox and Lucy, CPA Dispute Resolution Center of Kitsap County Ed’s Fly Meat Eddie Bauer Express Services Plumbing Fisher Distinctive Dentistry Herdman Plumbing Hope Center Island Health and Chiropractic Kitsap Sun Michael Angelo Construction, Inc. Military Air Cargo Novus Windshield Repair Office Xpats Olympic Printer Resources, Inc. Pacific Northwest Title Peace Lutheran School & Church Peninsula Fleet Services Prototype Tooling & Fabrication SC Fuels Seabeck Conference Center Sound Appraisal Group The Island School Wall Liebert & Lund P.S. Wet Apple Media

Local Businesses Reduce Waste, And How Your Company Can, Too!

Heronswood ‘re-revealed’ under tribe’s ownership of renowned garden

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

By Tim Kelly, Editor The Port Gamble S’Klallam tribal chairman admits there were some surprises that came with the tribe’s acquisition of Heronswood Gardens in Kingston.

“We knew it was a local landmark,” Jeromy Sullivan said. “I would say the tribe and tribal council didn’t have a real good idea how much passion there was around Heronswood.”

That passion has been evident in the response of volunteers — including renowned horticulturist and Heronswood co-founder Dan Hinckley — helping with restoration of the Jeromy Sullivan gardens since the tribe purchased the property at auction a year ago from the Burpee Co., which had owned it since 2000 and closed the nursery in 2006.

“Dan’s done an amazing job pulling in volunteers,” Sullivan said. That’s critical to the progress of restoration efforts at the 15acre site, he added, because the tribe doesn’t have a lot of staff to assign there.

“We’ve had a lot of volunteers, both for working in the garden and working at events,” said Laurie Mattson, executive director of the Port Gamble S’Klallam Foundation, which is overseeing fundraising efforts for maintenance of Heronswood.

The Port Gamble S’Klallam had been been considered previously as potential buyers of Heronswood as the nursery and gardens went through changes in ownership and operation.

“It had been presented to us several times for possible purchase, before I was tribal chairman,” said Sullivan, 40, who’s held the top leadership post for four years.

“We never did quite get there until it went to auction.

“The tribe always wanted to support the idea of having this kind of asset.”

The goal now is to “bring Heronswood back to its pristine condition,” he said, though he acknowledged, “That’s turned out to be a lot more than we anticipated, to be totally honest.”

The tribe anticipates Heronswood will be part of its economic development efforts through renting the site as a venue for weddings and other events such as corporate retreats, but that won’t start until next year.

Hinckley said only one wedding — for the sister of his partner and Heronswood co-founder Robert Johnson — was held there in the two decades they lived there and operated the nursery and gardens.

“We were asked a lot, but we shied away from it,” said Hinckley, who now lives in Indianola. “That was our home.”

But with the reopening of the property to the public, he sees it as an ideal spot to market for such events.

The Port Gamble S’Klallam tribe has been working on restoring the grounds at Heronswood Gardens in Kingston since buying the property at auction last year.

Staff photo

“I think there are enormous possibilities to have that used as a wedding venue with a few modifications to the structures that already exist,” he said.

For this year, the public got its first opportunity to visit Heronswood under tribal ownership at Garden Open and Plant Sale events. The first one in the spring attracted quite a crowd.

“It was terrific; I think in May we had probably 2,500 people,” Mattson said.

The garden will be open for its third such event of the year on Sept. 7. The open garden day will feature presentations by Hinckley and by Kelly Dodson and Sue Milliken, proprietors of Far Reaches Farm, a specialty plant nursery in Port Townsend.

There also are plants for sale from numerous area nurseries, although plants grown at Heronswood are not part of the sale.

“We really thought it would be a great accomplishment for the tribe to bring this back,” Sullivan said. “We do want to put our stamp on it as Port Gamble S’Klallam. We plan to incorporate some of our art, some of our language, and some native species in the garden.”

Sullivan was tactful in describing the condition of the grounds when the tribe bought Heronswood, saying “it wasn’t really cared for in a way to keep it a pristine garden.”

Hinckley, who’s on the Heronswood steering committee and a board member of the Port Gamble S'Klallam Foundation, offered this assessment of the garden’s current state: “If you had seen it in its heyday, you would see it’s kind of whiskery.”

However, Burpee CEO George Ball

offered a different view after last year’s auction of Heronswood. In a July 2012 interview with the website Garden Rant, he said, “We not only preserved the garden in excellent intact condition, the only plants removed even for research purposes were culls.

We never removed a single species from the garden.”

Still, Ball said in the interview that he was pleased the tribe acquired the property, and “I have been very impressed at the longrange view they are taking and the care.”

The tribe is working to make Heronswood “a destination for people to come to,” Sullivan said. It’s an opportunity to maintain a community treasure while also potentially deriving some economic benefit for the tribe.

“We want people to enjoy the garden in a variety of ways,” he said. “Our expectations now are a little higher, as far as economic development concerns.”

Hinckley, who created Heronswood in 1987 and developed it into a gardens and nursery with an internationally renowned collection of exotic plants, said he’s content these days to help as a volunteer and sees a bright future with the tribe’s commitment to the place.

“The leadership of the tribe is obviously very sensitive about the garden; they understand the significance of it,” he said. “I believe there’s a question mark there about how they’re going to proceed to make it a viable operation, but … I couldn't be more pleased with the people I’m working with in the tribe.”

As Heronswood is “re-revealed,” as Hinckley puts it, he said appreciation of the restoration goes far beyond the North Kitsap community.

“It is just so satisfying to me to see it and see the enthusiasm, not only in the local area, but wherever I give talks, in Canada or on the East Coast and tell audiences what is happening,” he said. “There’s a great deal of fondness for the garden outside the region.

A lot of people are thrilled beyond belief that it’s in good hands, being cared for and brought back.”

WSTA summit features presentation on new aviation-themed high school West Sound Technology Association’s 12th annual Western Washington Summit will feature a presentation by the Museum of Flight on the new Raisbeck Aviation High School.

The school’s new and permanent $43.5 million campus is at The Museum of Flight in Seattle and scheduled to open in October. Originally called Aviation High School (AHS), the first college preparatory aviation-themed high school in the nation has operated out of two temporary locations since its inception in 2004.

The new facility is being built on East Marginal Way, across the street from the main Museum of Flight campus and just north of the museum's outdoor airpark and new space gallery. All subjects are taught in the context of aviation, with a focus on science, technology, engineering and mathematics (STEM) education.

Attendees will hear more about this giant step forward in securing the future of AHS, and its partnership with the museum and Boeing to inspire engineers of the future.

Though the school is part of the Highline Public School District, it is open to students all across the region, and approximately 50 percent of its student body comes from surrounding districts as

far away as Olympia, Everett and Bremerton.

The WSTA summit will be from 11 a.m. to 1:30 p.m. on Sept. 19, with a buffet luncheon at Clearwater Casino Resort in Suquamish.

Guest speakers at the event will include U.S. Sen. Patty Murray, honorary chair; and keynote speakers Douglas King, president

and CEO of the Museum of Flight, and Reba Gilman, principal of Aviation High School.

The fee for the WSTA summit is $40 for WSTA members and $50 for non-members if paid by Sept. 1. Annual individual memberships including admission to the summit are $99. Online registration is available at westsoundtechnology.org.

• The mission of West Sound Technology Association is to educate, influence and promote an innovative and vital technology economy. WSTA envisions our community as collaborative, vibrant, and connected — where technology contributes to prosperity for our people and organizations. Visit www.westsoundtechnology.org to join, sponsor, partner, or volunteer in our efforts.

State’s wind power industry surges WASHINGTON — The U.S. Energy Department released two reports recently showcasing record growth across the nation’s wind market — increasing America’s share of clean, renewable energy and supporting tens of thousands of jobs nationwide.

In 2012, wind energy became the number-one source of new U.S. electricity generation capacity for the first time — representing 43 percent of all new electric additions and accounting for $25 billion in investment.

According to these reports, Washington state continues to be one of the country’s largest and fastest-growing wind markets. The 2012 Wind Technologies Market Report finds that

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2011. This growth helped America’s total wind power capacity surpass 60 GW at the end of 2012, representing enough capacity to power more than 15 million homes each year, or as many homes as in California and Washington state combined.

For the first time, the Energy Department and Pacific Northwest National Laboratory issued the 2012 Market Report on Wind Technologies in Distributed Applications, highlighting growth in the U.S. distributed wind energy market.

For more information on these two new reports — including infographics, video and an interactive map — visit www.energy.gov/windreport.

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“Telebyte is a local company and they go above and beyond to assist us.

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August 2013 Kitsap Peninsula Business Journal • KPBJ.com 31

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Washington state installed 235 megawatts (MW) of wind power capacity in 2012, bringing its total to about 2,800 MW. From 2009 to 2012, American electricity generation from wind and solar power more than doubled.

The growth in the U.S. wind industry has led directly to more jobs throughout a number of sectors and at factories and power plants across the country. In Washington state, the industry supported 2,000 to 3,000 direct and indirect jobs in 2012.

Nationally, over 13 gigawatts (GW) of new wind power capacity were added to the U.S. grid last year — nearly double the wind capacity deployed in

Roundabout among options for improving SR 305 backups

By Tim Kelly, Editor Building a roundabout at State Route 305 and Suquamish Way may be the most effective solution for improving traffic flow at the busy intersection, where backups of westbound traffic from Bainbridge Island routinely stretch to a mile and a half during peak afternoon commute times.

It’s also the most expensive option under consideration by the Washington State Department of Transportation, and there’s currently no funding for any potential remedy for congestion at the intersection where drivers coming off the Agate Pass bridge pass Suquamish Clearwater Casino Resort.

The Legislature did allocate $750,000 for WSDOT to “identify and design a solution” that will improve traffic flow there. Transportation officials held a public open house Aug. 21 at Clearwater to present the preliminary design engineering for three options, which were displayed on wall charts around the conference room.

Two are variations of adding a right-turn lane from westbound SR 305 onto Suquamish Way. Those options would cost considerably less than building a roundabout, but WSDOT projections show either version of the turn lane would provide only short-term impact on easing traffic congestion. Within a few years, according to the projections, the situation would return to its current condition or worse as the volume of traffic there increases.

“We’ve looked at (options) from

Tim Kelly photo

The design of a potential roundabout at State Route 305 and Suquamish Way was one of the options for traffic improvements at the busy intersection displayed at an informational open house that the Washington State Department of Transportation held recently at Suquamish Clearwater Resort Casino, which is located on the south side of the intersection. $400,000 to $4.2 million for a roundabout,” WSDOT Project Manager T.J. Nedrow said, noting that actual construction costs could vary by up to 30 percent above or below estimates. He summarized the choices as “some quick fixes vs. a longer 20year investment.”

The agency is reviewing traffic data collected at the intersection and public comments, and soon will select a preferred alternative. Final design of the chosen option will be completed next year.

Feds will allow marijuana legalization to move forward in Washington, Colorado

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with them to ensure regulations on the industry address any federal concerns. The DOJ also issued new guidelines for federal prosecutors when it comes to enforcing marijuana laws, saying they should focus mainly on crimes such as the distribution of marijuana to minors, driving while intoxicated, drug trafficking by gangs and cartels, and marijuana cultivation on public lands.

The development could have a sizable impact on both the medical and adult-use marijuana industries, clearing the way for the continued growth of the cannabis business and opening the door for legalization in more states down the road. It’s also expected to eventually relieve pressure on MMJ businesses, easing the future threat of raids, civil forfeiture warnings and other federal actions.

The guidelines are particularly notable in that they ostensibly pave the way for legit, reputable businesses that are in compliance with state marijuana laws — both on the recreational and medical sides. In essence, they extend “limited protection for growers, sellers and distributors rather than solely consumers, as has been the unstated policy until this point,” according to a release by Law Enforcement Against Prohibition, a nonprofit organization that lobbies for drug reform.

Still, professionals should move forward cautiously — though optimistically — as the announcement doesn’t change federal drug laws, and the government has released similar directives in the past only to crack down on the medical marijuana industry. The feds also left open the possibility of intervention if the states’ regulatory programs fail to prevent threats to “public safety, public health and other law enforcement interests.

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Medical Marijuana Business Daily The Department of Justice announced Aug. 29 that it will not seek to block or substantially alter adult-use marijuana laws in Colorado and Washington State at this time, a major win for the cannabis industry that signals a tipping point in the government’s approach to the drug.

Attorney Genera l Eric Holder told the governors of both states that the DOJ will take a hands-off approach to the new recreational cannabis programs for now and will work closely

It’s uncertain where construction funding would come from since most of the state’s gas tax revenue is committed to specific transportation improvement projects statewide.

Some people attending the open house had concerns about the safety of pedestrians and bicyclists using the planned two-lane roundabout. Designs showed there would be marked pedestrian crosswalks on all four sides, with center islands between the four lanes of traffic

approaching and leaving the roundabout.

With the center islands for pedestrians to use in crossing the road, “you’re only getting two drivers to stop for you instead of three or four,” Nedrow said.

Bicyclists could ride through the roundabout with vehicles or walk their bikes through crosswalks. The open house included videos showing how vehicles, bicyclists and pedestrians navigate roundabouts.

Informational materials distributed by WSDOT cited studies by the Federal Highway Administration and the Insurance Institute for Highway Safety showing significant reductions in overall collisions and collisions involving pedestrians at roundabouts compared with traditional intersections.

“We know from a hundred we’ve built around the state that roundabouts are safer for bicyclists and pedestrians than what we have today,” Nedrow said.

Another issue would be relocation of Kitsap Transit’s park-and-ride lot along the westbound side of SR 305 between the bridge and the intersection.

John Clauson, Kitsap Transit executive director, was at the open house and said the agency is in discussions with Port Madison Enterprises, the business arm of the Suquamish Tribe, about possibly providing a park-and-ride area in the new parking garage under construction as part of a planned five-year expansion of Clearwater Casino Resort.

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Architecture firm adds three to staff The architecture and design firm Rice Fergus Miller has added three employees.

Amos Callender, LEED AP, joined the company as a designer. He has worked in all aspects of the architectural field for over 10 years, from predesign through construction administration. He has experience in healthcare, hospitality and commercial tenant improvements.

Jason Barry has 13 years of experience as a designer with an emphasis on healthcare design and standards of practice. His experience includes tenant improvements, major renovations, and new construction of healthcare facilities and medical office buildings.

Yecenia DeLuca was hired as operations assistant. She previously worked at Joint Base Lewis McChord as a civilian human resources specialist.

Rice Fergus Miller is located in downtown Bremerton and can be reached at www.rfmarch.com.

Harrison finalizes affiliation with Franciscan Health System Public invited to open house at new orthopaedic hospital in Silverdale The community is invited to visit The Orthopaedic Center at Harrison in Silverdale on Sept. 13, from 2-5 p.m. Harrison is hosting a community open house celebrating the center’s opening, which is planned for the following week.

The Orthopaedic Center is the region’s first dedicated orthopaedic specialty care facility.

Built adjacent to the existing Harrison Silverdale hospital, the three-story center makes orthopaedic and rehabilitative services conveniently accessible under one roof.

The Orthopaedic Center at Harrison in Silverdale features: • four state-of-the-art, oversized surgical suites • 24 uniquely designed There will be a community open house Sept. 13 at The Orthopaedic private patient rooms Center at Harrison in Silverdale, which is scheduled to open the • spacious hallways, following week. referred to as “the track,” complete with milestone markers • a family room with views of the Olympic Mountains • a rehabilitation gym • a pre- and post-op learning center for patients and their families • a Rooftop Rehab Trail, allowing patients to get back in motion in a natural setting The center will provide spine treatment and surgery; joint replacement, reconstruction and arthroscopy for hip, knee, shoulder, elbow and ankle; clavicle and shoulder treatment and surgery; arm, elbow, wrist and hand treatment and surgery; pelvis and hip treatment and surgery; treatment for work-related injuries; orthopaedic trauma care; and sports medicine.

The Orthopaedic Center at Harrison is located at 1800 NW Myhre Road in Silverdale.

Olympic peninsula regions. Harrison will open its new orthopedic hospital on its Silverdale campus in September, and has plans to build an ambulatory care center on Bainbridge Island.

Also, Franciscan recently implemented a new electronic system for sharing medical records, and that system

has never provided services such as abortions, or physician-assisted suicide allowed under the state’s Death with Dignity Act. Harrison physicians will continue to perform such services as tubal ligations and vasectomies that Catholic ethical directives do not allow in their hospitals.

Before the state Department of Health issued its decision on the HarrisonFrancisan affiliation, Gov. Jay Inslee directed the department to update its rules for the certificate of need. He said the review process should focus on how affiliations affect patients’ access to health care, regardless of how such partnerships are structured.

is expected to include Harrison next year.

The ACLU and other groups have raised concerns about potential restrictions on patients’ access to care — particularly reproductive health choices for women and end-of-life care — when secular hospitals merge with religiousbased health systems. However, Harrison August 2013 Kitsap Peninsula Business Journal • KPBJ.com 33

KPBJ staff report The planned affiliation between Harrison Medical Center and Tacomabased Franciscan Health System was cleared to move ahead after the state Department of Health recently announced that the affiliation would not have to go through a certificate-of-need review process.

Harrison announced its plan to join with Franciscan last October, after a nearly yearlong search exploring merger or affiliation options with a larger health system.

“We can enhance the services we offer and build on the economies of scale that a larger organization can provide,” said Harrison president and Chief Executive Officer Scott Bosch. “In light of upcoming national reforms, this partnership helps ensure we keep our enduring promise of exceptional health care to the residents of the Kitsap and Olympic peninsulas and North Mason County, now and for generations to come.”

The American Civil Liberties Union and other patients-rights groups had asked the Department of Health to conduct a certificate-of-need review of the proposed arrangement, which is the latest in a string of secular institutions such as Harrison becoming part of religious-based health systems.

Franciscan, which operates six other hospitals including St. Anthony in Gig Harbor, is part of Catholic Health Initiatives, the nation’s third-largest faithbased health system.

The state health department said it did not have authority to require a certificateof-need review — a lengthy process that would have included public input — because the Harrison-Franciscan affiliation doesn’t include a sale, purchase or transfer of assets.

Harrison CEO Scott Bosch has said repeatedly that Harrison will remain secular, and that the affiliation is structured so that Harrison will be able to continue offering all the services and medical procedures it currently provides.

A joint press release stated that “This agreement will allow Harrison Medical Center to continue to operate as a secular (non-religious) nonprofit community medical center.”

The affiliation will create a new corporation called Franciscan Health Ventures that will have a combined board from the two organizations, with Franciscan CEO Joe Wilczek as CEO. A separate board will oversee Harrison’s operations, but the FHV board will decide on financial matters, appointments to the Harrison board and other major decisions.

Now that regulatory reviews are complete, Bosch and Wilczek said work is beginning on implementing collaboration between their medical staffs and facilities, and on a strategic plan for potential expansion of services in the Kitsap and

34 • Kitsap Peninsula Business Journal • KPBJ.com August 2013

All-new Ford Fusion a great looking and performing sedan

By Lary Coppola My first impression of the 2013 Ford Fusion was that it looked like the love child of an Aston Martin and an Audi. Sporting a wide, horizontal grille that’s blatantly reminiscent of when Ford owned Aston Martin, while the sleek wraparound headlamps and roofline that flows smoothly into the high deck lid have Audi written all over them.

A five-passenger, midsize sedan, the Ford Fusion comes in three trim levels — S, SE and Titanium, with standard frontwheel drive and optional all-wheel drive (AWD). Power is available from a wide range of options including gasoline, hybrid, and plug-in hybrid variations. Our test vehicle, a Titanium AWD model, was equipped with the 2.0-Liter inline fourcylinder married to a 6-speed automatic with paddle shifters, so this review will focus primarily on that powertrain.

The 2013 Fusion is built on an all-new platform riding on a wheelbase about five inches longer than the 2006-20012 firstgeneration. Overall length is only an inch longer thanks to shorter overhangs, and an inch taller and wider than previously.

Standard on the Titanium are leather upholstery, heated front sport seats, dualzone automatic climate control, keyless ignition/entry, remote ignition, autodimming side mirrors, rear parking sensors, 12-speaker Sony audio system with HD radio, sport-tuned suspension and 18-inch wheels. Options include a sunroof ($895) and 19-inch wheels ($695).

Safety features on all Fusions include front seat side airbags, front knee airbags and side curtain airbags, antilock disc brakes, traction control, electronic stability control. Emergency crash notification comes standard. Blind-spot monitoring, rearview camera, cross-traffic alert, lane departure warning and a lane-keeping function are all optional.

Walkaround: The exterior design of the Ford Fusion is very striking, and as noted earlier, combines German-type luxury styling with aggressive design cues seemingly influenced by Aston Martin.

While the Fusion is classified as midsize, it looks and feels larger than it is, although the overall measurements are very closely matched with the Honda Accord and Nissan Altima.

The base S model comes with 16-inch steel wheels, which is disappointing considering the Accord offers alloys, and even some manufacturers like General Motors, include standard alloy wheels on lower priced compact and sub-compact models.

Interior: The Fusion’s interior is roomy to say the least. There’s plenty of front legroom, along with ample shoulder and headroom, accentuated by concave door trim. Rear seats are comfortable, with adequate leg and knee room. Headroom clearance is good for passengers up to

about six feet tall. The adjustable rear headrests are comfortable, but can interfere with visibility.

The cloth seats that come standard on the Fusion Hybrid and optional on the SE are made from 100 percent recyclable materials, while the polyurethane foam in the seat cushions and head restraints are derived from the oils of plant seeds, including soybeans.

Interior materials along with fit and finish are attractive and straightforward.

The center stack on the base models uses well-positioned manual climate control knobs. Technology includes the latest version of Microsoft Sync and MyFordTouch. The touchscreen interface is much improved from its previous generation, although still quirky. The Fusion also offers active park assist, a feature normally found on high-end luxury cars, which scans parallel parking spaces and automatically maneuvers the car in on its own.

On models equipped with the MyFordTouch interface, climate and all other functions are adjusted via the 8-inch touchscreen display. Instrumentation includes an optional dual LCD display that allows drivers to toggle through a variety of functions. One cool feature is the overhead interior lighting, which can be turned on and off with a finger swipe.

The steering wheel is a command center in itself, featuring numerous buttons for vehicle information and settings, audio volume and adjustments, cruise control,

hands-free phone operation and voice activation.

The Fusion offers 16 cubic feet of trunk space — slightly more than the 15.4 in the Altima and Toyota Camry, or the 15.8 in the Accord. The battery pack in the Fusion Hybrid reduces that to 12 cubic feet, and creates a high shelf in the back half of the cargo area.

Under The Hood: The old V6 engine found on the previous Fusion is gone, replaced by several four-cylinder choices: Standard is a 175-horse, 2.5-liter fourbanger that carries over from the previous model. It’s the least expensive — and leastefficient, choice.

Two new powerplants are much more efficient: a 178-horse, turbocharged 1.6liter four-cylinder EcoBoost engine, and the turbocharged 2.0-liter four-cylinder in our test vehicle, that puts 240 ponies on the pavement with 270 pound-feet of torque.

The Fusion Hybrid marries a 2.0-liter four-cylinder to an electric motor and electronically controlled continuously variable transmission (CVT). It’s pegged at 188 net horsepower, with fuel economy rated at 47 mpg City and Highway.

The Ford Fusion Energi is plug-in hybrid using the same 2.0-liter four-banger as the Hybrid, along with an electric motor and lithium-ion battery pack. Fusion Energi is designed to run on pure electric power for short commutes and can be charged using a 120-volt or 240-volt outlet.

Behind The Wheel: Acceleration from

the 2.0-Liter 4-banger was surprisingly strong. As we found out on a trip to Portland and back, the Fusion’s roomy cabin and quietness makes the ride feel like a much bigger car. Solid handling and comfort define the Fusion, although it isn’t quite as nimble as some competitors.

While the turning radius was reduced from the previous generation, and is smaller than the Accord, it’s still pretty wide.

Steering is light and comfortable, braking is strong and smooth, and the 6speed automatic transmission shifts in all the right places.

Whines: The front seats sit low in the cockpit, and combined with the relatively high hood line, can make it difficult to find a comfortable seating position with maximum visibility. With the seat moved as high as it can go, the low roofline can make 6-footers bend abnormally getting in.

The Microsoft-engineered Sync and MyFordTouch interface is still questionable, which is too bad, because it’s perhaps the most user-friendly digital interface offered on any vehicle. The voiceactivated commands and Bluetooth phone connection were spotty at best. Typical of Microsoft in general, sometimes it worked flawlessly, sometimes not.

Bottom Line: Competition in this segment is exceptionally tough with an abundance of choices. However, if you’re motivated by sleek, European styling, comfort and handling, with a wide selection of powertrain options, the 2013 Ford Fusion is one of the best choices available.

2013 Honda Accord: Mainstream mainstay and perennial winner

even more refined thanks to active noise cancellation.

The music/entertainment/navigation/informat ion systems are all first rate and the car is well connected for modern electronic devices. A medium size sunroof lets in fresh air without a lot of turbulence.

The trunk is large with a flat floor and a modest lift-over height. The rear seat folds at a slightly uphill angle. Overall cargo capacity is very good, as is interior small items storage.

The seats are first class and our top-ofthe-line model had power driver lumbar and heated front seats. Driving comfort was excellent regardless of a trip’s duration.

Under the Hood: High quality, precision engines are another key reason Honda/Acura products are so popular. The excellent 2.4-liter four-cylinder engine and CVT transmission are powerful enough for most buyers, but if you don’t mind paying a little more and getting slightly poorer fuel economy the 3.5-liter 278 horsepower V-6 is an outstanding engine. The V-6 is only available in the sedan with an equally great 6-speed automatic, but can be paired with a 6-speed manual in the Accord V-6 coupe.

In the interest of improved fuel economy all Accord models have a conspicuous green Econ button on the dashboard. Activation of the Econ system makes throttle response more conservative and reduces the use of some accessories.

Our test car was EPA rated at 21-mpg city and 34-mpg highway with a combined rating of 25. In driving that was city-biased we averaged 25.6 miles per gallon. That’s respectable, especially for a sporty V-6 with close to 300 horsepower (a number that not too long ago was sports car territory).

Behind the Wheel: The Accord has electric power steering, but it’s very well engineered. It imparts a natural driving feel, so most drivers won’t notice any difference from traditional steering systems.

The brakes and suspension are excellent. The ride is softer than sporty, but

not sloppy or mushy. The handling characteristics match the car’s demeanor.

Whines: We appreciated the right side lane watch feature that activates a right side blind spot camera when the right turn signal is activated. It’s great on the freeway, but a little annoying when making simple right turns from a stop. The trunk to back seat pass-through could be bigger and

better shaped.

Bottom Line: It’s hard to fault any Honda Accord. Granted, they’re a little conservative, but for their target customers that’s more of a plus than a negative. The Honda Accord V-6 Touring sedan is a roomy, high quality, very comfortable family car that has been impressing customers for almost four decades.

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August 2013 Kitsap Peninsula Business Journal • KPBJ.com 35

By Bruce Caldwell To say that I’m a longtime Honda Accord fan is an understatement. I’ve been driving them since they first landed on American soil.

I attended the first domestic press introduction as a representative of HOT ROD Magazine. Why I was invited baffled me, but I figured the publisher was trolling for advertising revenue. Being the junior staffer (a mere child with still brown hair) the task landed on my assignment sheet. I expected a major snooze, but a couple days driving the great roads around Monterey, California, thoroughly impressed me.

Nimble handling and excellent performance reminded me of my beloved first generation Mini Coopers, but without the quality/reliability issues.

I was so impressed that I bought one — traded in a ’65 GTO. The Accord served as my wife’s daily driver until the coupe body style made accessing multiple child safety seats a chore. Over five years of ownership maintenance consisted of one water pump and a set of tires. I was sold on Honda build quality and resale value (we sold the Accord for only $500 less than its MSRP).

Dimensions and prices have changed dramatically since the late seventies, but the initial engineering and quality characteristics have endured. Honda built their American sales successes with these first generation Accords.

The redesigned 2013 Honda Accord 4door sedan seems like a full-size luxury car compared to the diminutive early models, but a look back shows that same growth pattern for all pioneering Asian imports.

The 2013 Honda is right in the thick of the highly competitive mid-size sedan market.

The competition from both foreign and domestic manufacturers (the Accord plant is in Ohio) is fierce, but the Accord is a perennial podium participant in comparison tests.

Walkaround: We’ve driven most Accord models from the four-cylinder base sedans to the V-6/6-speed coupes and enjoyed them all. This review is based on the 2013 Accord V-6 Touring sedan with a 6-speed automatic.

As a mainstream family sedan the Accord expertly threads a conservative line between cutting edge and stodgy styling.

The new styling is crisp and contemporary, but not flashy. It blends easily in a crowd, which suits most buyers very well. The front end in particular is more handsome than some previous Hondas. That should contribute to the vehicle’s legendary resale value.

Visibility is excellent, giving the interior an even more spacious feel. The interior is light and the enhanced visibility is a safety bonus.

Interior: The 2013 Honda Accord interior is a highlight. It’s spacious, comfortable, quiet, and fitted with quality materials. Front seat legroom is excellent, but not at the expense of rear seat passengers. Rear seat room is better than many so-called luxury sedans.

The already quiet cabin has been made

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

36 • Kitsap Peninsula Business Journal • KPBJ.com August 2013

Email to pressreleases@KPBJ.com The Kitsap Peninsula Business Journal is a special interest publication dedicated exclusively to providing news, information and opinions to the business communities of the Kitsap and Key Peninsulas, and North Mason County. It is published monthly by Wet Apple Media. Copyright, 2013, with all rights reserved. Postage is paid at Tacoma, WA. The Kitsap Peninsula Business Journal is read by more than 26,000 business, professional, political and military leaders in Kitsap, Pierce, and Mason counties. Additional copies are available for $1.50 each. Annual subscriptions are available for $25.

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Member Kitsap Economic Development Alliance Kitsap Visitors and Convention Bureau Homebuilders Association of Kitsap County Bainbridge Island Chamber of Commerce North Mason Chamber of Commerce Poulsbo Chamber of Commerce Silverdale Chamber of Commerce

The future of the defense industry Kathy Cocus Kitsap Economic Development Alliance Fact: Defense is Kitsap’s economic foundation, fueling more than 50 percent of our economy.

Fact: Sequestration and continuing resolutions have created a negative impact on defense funding.

It is with these facts in mind that the Kitsap Economic Development Alliance and Pacific NW Defense Coalition present the fifth annual Pacific NW Defense Symposium on Sept. 24-25. This is the annual event where defense contractors, defense decision-makers and consultants “in the know” gather to share and hear information from the D.C. beltway, learn about specific topics in the defense industry and most importantly, make new contacts with like-minded leaders from throughout the region and northwest.

Returning this year is RDML Joe Carnevale (ret.), senior defense advisor at Shipbuilders Council of America.

Carnevale delivers information in a nononsense, insider tone that is a highlight for many repeat attendees at the annual symposium. He is well acquainted with defense acquisition issues and regularly represents his organization before Congress, the Navy, the Coast Guard and other federal agencies.

Three large prime contractors in the defense industry – Boeing, URS Corp. and Skanska – will be providing their insights on how they see the future in terms of defense contracting. These large firms are involved in construction, manufacturing, engineering and technical services and touch on the types of services and projects that regional firms perform as subcontractors. We look forward to hearing their perspective in the changing world of

defense spending and contracting.

Cybersecurity is increasingly becoming a focus for federal spending and the military has ongoing and planned projects.

According to the Department of Defense Cyber Domain website, the Defense Department named cyberspace a new domain of warfare in 2011. National cyber capabilities are in a state of transition.

Panelists in the cybersecurity industry will present their views on opportunities, challenges and changes in this fastchanging field.

How does the shipbuilding and ship repair industry look now? How will it look in five years? As with many other industries fueled by defense spending, we can expect change. Based on experience, past and current contracts and business projections, panelists will provide their insight on how this defense industry is changing and what those in this field can expect.

What do UAV, UGV and UUV have in common? They are all unmanned vehicles – one travels in the airspace, one travels on the ground and the third travels underwater. Current and future uses of unmanned vehicles will be outlined in a panel discussion from those in research and development as well as implementation areas of this growing industry.

If you are part of the defense industry, this is a must-attend event for you. Past attendees state this is one event they keep on their calendar as they make new contacts, find new contractors and come away with new knowledge. You can find more details at www.nwdefense.com. We’ll see you there as we navigate together the future of defense for the region.

• Kathy Cocus is business development director at Kitsap Economic Development Alliance.

Different strategy, same results

By Don C. Brunell, Association of Washington Business There’s an old saying, “There’s more than one way to catch a cat.” It means, if you don’t succeed one way, try again using a different strategy.

In this case, the “cat” is the Columbia River — or more precisely, eliminating the dams and commercial use of the river. The activists’ vision of a wild, freeflowing Columbia River has great emotional

appeal, but it would have dire consequences for our state.

Those dams produce 75 percent of our electricity, making Washington the largest producer of clean, affordable hydropower in the nation. How will we heat and light our offices, factories, hospitals, schools and homes with 75 percent less electricity?

In addition, the dams provide flood control and make it possible to irrigate nearly 2 million acres of farmland in Eastern Washington. According to Washington State University, two-thirds of our state’s agricultural production comes

Brunell, page 37

Port Orchard ballot measure

Change to city manager will improve local government

By Fred Olin The Port Orchard City Council voted 61 to place this measure on the ballot. Why? • Becoming a Non-Charter Code City is long overdue.

Of the 199 Washington cities eligible to become code cities, 190 have done so and none have changed back. The change will allow the city more flexibility to take actions unless specifically disallowed by state law; now we are restricted to actions allowed under state law. For example, the council could take action during a work-study session (if it were properly notified) instead of waiting until the next scheduled meeting.

The most important action the city would be able to take is to grant to the citizens of Port Orchard the power of initiative and referendum. This democratic action would allow those in disagreement with a city action (or inaction) to force the issue to a vote of all the citizens. This code city change was passed by the council in 2011 but political actions and threatened lawsuit of a few, that would have cost the city as much as $35,000 for a stand-alone election, forced an annulment.

• Changing to a Council/Manager will improve city government.

This change will align roles and responsibilities with the skills necessary to perform effectively. Strong political leadership from elected officials will set policy and direction. The professional expertise of a skilled administrator will implement that direction and administer the day-to-day operations of the city. The past 12 (or more) years have seen more than one administration where the mayor did not understand (or have the skills for) his/her role.

The City Manager will be competitively selected from a large applicant pool based on necessary skills and experience; not political “electability.” The City Manager will not be making decisions based upon their effect on his/her re-election. There will not be a lot of new faces every four years. Citizens will come to understand the difference between policy setting and administration of that policy and will soon learn the City Manager manages.

A professional city manager and an effective staff can identify grant and bonding opportunities, streamline city operations,

introduce technology improvements, recruit new businesses and plan for the fiscal health of our community. Staff turnover and program instability, with every new administration, will be minimized. Staff retention policies and activities will be more effective as they will be continuing. These changes will very easily pay for themselves.

Opponents will say a city manager costs too much. It is true that an educated and experienced person will earn around $120,000. However, our first full-time mayor made $68,000 and our current mayor $72,000. In addition, the City Clerk was designated “Assistant to the Mayor” in the previous administration. In this administration the mayor hired a full-time administrative assistant and designated her as Assistant City Clerk. These positions cost at least $40,000. A professional City Manager will do his own email and handle most of his own scheduling. The overall cost will be almost the same.

Vision, leadership and attained long-term goals will be enhanced. The City Manager will be in charge of all departments and

responsible to the council for their performance. Presently the mayor is responsible and is accountable only every four years (unless recalled) to the voters, who may or may not know of his shortcomings.

With this change, City Council can focus on setting the overall direction for the city.

Stability and consistency are essential to business and community development. A professional city manager will provide that stability and consistency. Business owners cannot tolerate changes every four years or having to wait on the results of the next election. If a change in policy or direction is needed, a majority of the council are up for re-election every two years.

Both of these actions could be taken without a vote of the people. It is to the City Council’s credit that they presented such an important change to the electorate. It makes good economic sense and deserves support.

BRUNELL

cost of $22 million per year.

The Columbia River Treaty Power Group, a coalition of 70 Northwest utilities, industry associations and other major electricity users, says the recommendations will reduce electricity generation and increase prices. Washington’s low electricity rates have — until now — been a major draw for companies to locate here.

European automaker BMW sited its $100 million carbon fiber facility in Moses Lake in 2011 specifically because of our low electricity rates. What will happen to our economy if that advantage disappears?

Former Congressman Norm Dicks says the Northwest already has ample environmental protections without the treaty.

“I am keenly aware that this region has invested billions of dollars in the Columbia River Basin during the last five decades to protect fish and water resources,” said Dicks.

In fact, the Washington Department of Fish & Wildlife is predicting the largest return of fall chinook in nearly 40 years. If the government’s recommendations are intended to improve salmon runs, we’re doing a pretty good job already.

Obviously, environmental activists have a right to press their agenda with the Obama administration. But when the U.S. Corps of Engineers and the Bonneville Power Administration make their final recommendations to the Department of State later this year, those recommendations should represent all of us.

There is much at stake for generations to come.

• Don Brunell is the president of the Association of Washington Business. Formed in 1904, the 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.

August 2013 Kitsap Peninsula Business Journal • KPBJ.com 37

from page 36 from irrigated land. What happens to us if that disappears?

Those thorny questions have largely stymied activists’ efforts to eliminate manmade constraints on the Columbia River system.

But now, they’re trying a different strategy.

It involves the Columbia River Treaty, an obscure 50-year old agreement with Canada that governs the joint management of the Columbia River. The treaty is up for renewal in 2024, and the parties must give 10 years’ notice if they want to change it.

The Obama administration wants to change it.

In draft recommendations released June 27, the U.S. says it wants to modernize the treaty to better reflect Northwest priorities.

Specifically, the feds want to add “ecosystem functions” as a third primary purpose of the treaty, alongside flood control and power generation. But as drafted, the recommendations make fish the first priority.

One recommendation is to send more water over the dams in the spring to aid salmon. But higher water levels could be a hazard to safe navigation, according to the Pacific Northwest Waterways Association (PNWA), which represents more than 130 public and private groups that use the river.

PNWA adds that releasing more water in the spring means less water would be available to augment low water levels in the summer, making the river too shallow for commercial barge traffic. Barge operators would be forced to carry lighter loads and leave hundreds of tons of Washington grain and other products sitting on the dock at a

• Fred Olin is a former Port Orchard City Councilman and chairman of Citizens for Professional Government.

Hauge’s vendetta — $338,000 and climbing Kitsap County Prosecutor Russ Hague recently filed yet another lawsuit against embattled Kitsap Rifle and Revolver Club (KRRC) Executive Director Marcus Carter. This is a civil suit against Carter personally, not against the KRRC. Carter has beaten Hauge in court three different times, without the benefit of a lawyer. When Hauge couldn’t win that way, he resorted to using the land-use code to try and shut down KRRC — which is still in litigation. Now this. Am I the only one who believes that Hauge is using our tax dollars to finance what amounts to a personal vendetta against Carter?

We filed a public records request asking just how much of our money Hauge has spent pursuing this personal vendetta. The total had exceeded $338,000! That’s prior to the land-use action — which went to Superior Count and is on appeal — and the most recent civil suit. At this point, I wouldn’t be the least bit surprised if it’s topped a half a million dollars.

This is unconscionable! There are so many other, more pressing needs that money should have been spent on — more deputies on the street; the meth problem; helping the homeless; supporting food banks; recreation for kids. The list goes on.

If you believe it’s time the taxpayers stopped financing Hauge’s personal vendetta and for the county commissioners to rein him in, call your commissioner today — 360-337-7146.

Enough is enough.

• • • As you may have heard, I’ve accepted the position of Executive Officer of the North Peninsula Building Association (NPBA), which is headquartered in Sequim. The NPBA is the equivalent of the Homebuilders Association (HBA) in Kitsap, and represents the construction industry. With almost 20 years as a member of the LARY COPPOLA Kitsap HBA, and over 15 as State The Last Word Director from Kitsap for the Building Industry Association of Washington (BIAW), including most of that time also serving on BIAW’s Legislative Policy Committee and PAC, this position is a good fit for both myself and the NPBA. A lot of people asked why I didn’t just return to editing this paper, and doing what I did before being elected mayor of Port Orchard in November of 2007.

Without going into a lot of detail, the answer is pretty simple. When I became mayor, I turned many of the duties I handled at our company over to others, as there simply wasn’t enough time for me to run the business end of the city, and run the company. My wife Dee has handled the day-to-day management very well since I left at the beginning of 2008, and frankly,

after doing this since 1988, I was bored.

After hiring Tim Kelly as editor, it freed me up to pursue new challenges — which I thrive on overcoming.

But to answer the most frequently asked questions: Yes, I will continue to write this column and the car reviews for the paper.

No, we are not moving out of Kitsap County. We did move from our downtown Port Orchard condo back to our home in Manchester. We spent five years doing a total remodel — kitchen, reconfigured two bathrooms, created a luxurious master suite, and lots more — and we intend to stay and enjoy it. I’m commuting to Sequim and telecommuting. The hour-and-10minute drive is actually pretty pleasant — especially compared to what a commute to King County could be.

My job entails running the day-to-day business operations of the association, as well as re-engaging the NPBA’s Government Affairs Committee in the local political process as a force to be reckoned with once again. Restarting the NPBA’s Future Builders Program, which trains high school and college students for jobs in construction, as well as enhancing various non-dues revenue streams are on my to do list. Running the Built Green program and also overseeing construction of a home for Corporal Ammon Lang, who lost his legs serving in Afghanistan, as part of the nationwide Homes For Our Troops effort, are also on the to-do list.

I’ve been warmly welcomed by the

Clallam County community. DCD Director Sheila Roark Miller reached out, and facilitated an introduction to the county commissioners. Commissioner Jim McEntire, a former Port of Port Angeles commissioner, took the time to acquaint me with some of the more pressing issues facing the county, and more specifically, how they impact our industry.

I attended a meeting of the Implementation Forum for the Department of Ecology’s (DOE) WRIA 18 Rule. Since much of this area is rural without water and sewer infrastructure, the rule has significant and costly impacts for property owners needing a new well, or desiring to change the use of an existing one, as well as builders and landowners with property inside the UGA not served by city water.

The group at that meeting included myself, representatives from the DOE, Realtors, property rights advocates, environmentalists, and various elected officials. What I wasn't expecting was the absolute respectful civility of the participants towards each other, or the solution-oriented spirit of cooperation among them.

If this had been Kitsap County — where I've attended more meetings like this than I care to remember — it would have been a highly contentious and combative affair at best, with the usual all or nothing, take-noprisoners, no compromise arrogance that passes for public process. I’m really not going to miss any of that...

38 • Kitsap Peninsula Business Journal • KPBJ.com August 2013

Free speech rights, and the right to exercise sound judgment Constitutional protection of freedom of speech is one of our most fundamental and cherished rights. Each of us may say or otherwise express — with hardly any restraints imposed — whatever we choose.

Whether our statements are factual or not; whether our opinion is keenly insightful or woefully uninformed; whether we are truthful and respectful as an Eagle Scout or as dissembling as the most brazen politician — we the people are free to speak our minds, for better or worse.

One example squarely in the worse category is a letter to the editor published on the Central Kitsap Reporter’s website the day before a rock band called Hell’s Belles played a concert at the Kitsap County Fair. The letter writer exercised her free speech rights by calling the all-female AC/DC tribute band “a satanic music group.” This self-proclaimed Christian also expressed her contempt for “you devil-worshippers,” though it’s not entirely clear if she was referring to the gals in the band, the taxpayer-funded fair’s organizers who booked the show, the Kitsap Sun for its feature story previewing the Hell’s Belles concert, or all of the above.

It’s understandable if you’re perhaps thinking it’s odd that it was a Kitsap Sun article that sparked this woman’s furor, yet

the vicious letter she wrote in response was published in the weekly Central Kitsap Reporter.

Well, it turns out, unsurprisingly, that she sent her letter first to the Sun but was rejected. Editor David Nelson confirmed this.

Without dissing TIM KELLY the letter writer, he tactfully said Editor’s View the letter didn’t meet the standards of what’s acceptable to publish in a community newspaper.

So the Sun exercised an important right that’s not as explicitly stated in the Constitution — the right to use good judgment. The other newspaper did not.

The Central Kitsap Reporter did gain something from publishing the letter from this tormented soul. More than 400 online comments were posted on the newspaper’s website. That’s an astonishing response for a publication that might draw a handful of comments, or more often none, on typical news stories.

The paper’s editor, Leslie Kelly (no relation to me), said she was surprised at the torrent of responses, but she characterized it

as a “debate.”

It seems more like piling on, since the vast majority of commenters rebuked, reviled and ridiculed the woman for her ad hominem attack on the women in the band.

The musicians, by the way, have local connections and have played concerts in the Bremerton area for more than a decade.

Having a strong local following partly explains the huge number of commenters (that and Facebook.)

Now you might conclude the letter writer deserved to be shamed and brought it all on herself. I would argue, however, that as mean-spirited and haughty as her tone was, she did not deserve what in essence was a public stoning on the internet. She should have been protected from herself, which would have happened if the CKR had recognized that her letter obviously would draw such derision, and not published it.

It was Kelly’s decision, and she was planning to write about the situation in an upcoming editorial. But in fairness, it should be noted that she had asked her newspaper’s publisher and fellow editors at other Sound Publishing papers in the area what they thought of the letter, and regrettably, none of them tried to dissuade her from publishing it.

Since Kelly defended publishing the letter

by saying the writer was just expressing her beliefs, I asked if she would publish a letter that makes an equally baseless claim — for instance, that President Obama is a Kenyanborn Muslim. She said no, because that can be proven to be false; but apparently the woman’s claim that the Hell’s Belles “work for the devil” can’t be definitively proven false, so she gets the benefit of the doubt. And as a result, the community newspaper did a disservice to the community by giving this misguided woman a public platform to unfairly defame the women in the band.

The notorious letter concludes with the writer’s ominous warning to all the aforementioned devil-worshippers that “your lack of love of God should scare you.”

Doubtful that will happen, nor that the woman will reconsider her views in light of all the criticism heaped upon her.

All the uproar over music, free speech and that other treasured constitutional right — to freedom of religion, and from religion — calls to mind an old favorite song by the Austin Lounge Lizards, who incidentally would be an excellent choice for next year’s fair if they’re available.

Their tune that skewers the selfrighteous is called “Jesus Loves Me, But He Can’t Stand You.”

Now Accepting Online Nominations!

We are now accepting nominations for the Kitsap Peninsula Business Journal’s annual 40 Under Forty leadership recognition program!

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August 2013 Kitsap Peninsula Business Journal • KPBJ.com 39

Do you know someone outstanding in their industry or profession who is deserving of recognition? Help us highlight the best and brightest young business leaders on the Kitsap Peninsula. Individuals must be under the age of 40 on Sept. 15, 2013 for consideration.