Kitsap Peninsula Business Journal 26/10

For members, the doctor is lN October 2013 Vol. 26 No. 10

•

The Voice of Kitsap Business since 1988

Bremerton Marina’s occupany rate up, pg 23

New eatery lands at Gig Harbor airport, pg 17

Inside Special Reports: Building Wealth, pp 6-13 Healthcare Quarterly, pp 26-32 People, pg 2 Real Estate, pp 23, 24 Technology, pg 25 Human Resources, pg 33 Automotive, pp 34, 35 Editorial, pp 36-38 Home Builders Newsletter, pp 19-22

By Tim Kelly, Editor Dr. Blain Crandell spent a year finding out what health care is like in another country. Now that he's back, he still isn't working in a family practice that's typical of the U.S. medical system, but that suits him just fine.

He recently joined the Bainbridge Island practice that Dr. Gregory Keyes started 10 years ago, a clinic where patients get a lot more face time with the physicians and can even call their cell phones 24/7 if an urgent need arises after business hours.

Photo courtesy Member Plus Family Health

Dr. Blain Crandell, left, recently joined the family practice that Dr. Gregory Keyes has operated for 10 years on Bainbridge Island.

The Puget Sound Naval Shipyard and Intermediate Maintenance Facility in Bremerton announced plans to hire more than 1,000 helper trainees.

Patients get what they pay for with Member Plus Family Health Care. What they pay for — in the form of an annual membership fee — is the assurance of access to their doctor whenever they need it, longer appointments when they come to Members. page 28

Tim Kelly photo

Shipyard catching up in hiring

By Tim Kelly, Editor Big jobs require a big workforce, and the Puget Sound Naval Shipyard and Intermediate Maintenance Facility is getting some much-needed help.

“We have so much work coming up on us over the next several years,” spokesperson Mary Ann Mascianica said.

A hiring freeze imposed in January

due to federal budget cuts made it tougher to maintain the staffing levels needed to keep up with the Bremerton shipyard’s workload.

But PSNS announced Sept. 19 that it would hire 1,073 helper trainees for all trades at the facility that does vital Shipyard, page 4

Poulsbo City Council candidate hosts campaign events Melody Sky Eisler, a candidate for Poulsbo City Council Position #7, is hosting two public events in October to reach out to the community. She is running against incumbent Councilman Jim Henry.

Eisler, the Silverdale branch manager for Kitsap Regional Library, will host a campaign kickoff event on Oct. 5 from 9-11 a.m. at the Poulsbohemian Coffeehouse.

She will meet with supporters, answer questions from citizens and discuss local issues at the downtown coffeehouse at 1003 Front St., and free pastries will be available.

Melody Sky A second campaign Eisler event is set for Oct. 15 from 5-7 p.m. at the One Ten Lounge downtown, with free appetizers and a door prize available.

“Poulsbo needs energetic, visionary and

dedicated leadership to ensure that our charming city continues to grow smartly and strategically, while preserving our cherished quality of life,” Eisler said.

More information is available at her campaign website: www.vote4melody.com.

Entrepreneur joins business mentoring operation as group leader Excell Puget Sound has added entrepreneur Shannon Bruce of Bremerton, founder and CEO of Story

Bridge, Inc. (storybridgecoaching.com), to its staff as the group leader for the Olympic Peninsula/Kitsap Region.

“Shannon leads with a great sense of purpose,” said David Shapiro, founder and CEO of Excell. “She brings a unique blend of curiosity and systems thinking to leadership and business that is a valued contrast to traditional wisdom.”

As a former CPA, regional and executive operations manager, and entrepreneur for the past 13 years, Bruce brings an extensive background to support companies in improving both profits and people.

Excell Puget Sound forms and leads peer mentor groups to provide profitable and sustainable growth to its member companies. Members are provided with a learning environment for the exchange of best practices, resources and solutions to their most challenging issues.

For more information about Excell, call (206) 734-7535 or email daveshapiro@excellpugetsound.com.

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

Second-generation broker joints Bradley Scott office Bradley Scott Inc. has hired Garet Gartin as a commercial leasing specialist for their office in downtown Bremerton.

Gartin, a longtime Kitsap resident, is a second-generation broker for Bradley Scott.

His father, Gary Gartin, has been working at the Garet Gartin company for over 28 years. The younger Gartin brings with him a background in education and sociology, having studied at Seattle Central Community College and The Evergreen State College.

The Bradley Scott office (www.bradleyscottinc.com) is at 400 Warren Ave., Suite 450. The phone number is 360-479-6900.

Kitsap Office Supply hires new commercial business manager Kitsap Office Supply, the commercial division of Bainbridge Island-based Paper Products Etc., has hired John Hays as commercial business manager.

A longtime Bainbridge resident, Hays is best known as the former owner of Port Madison Home, a retail home furnishing business that operated on Winslow Way until 2011.

Hays can be reached at John@KitsapOS.com or (360) 710-4134.

Kitsap Office Supply (www.KitsapOS.com) specializes in commercial/online sales of office supplies, cleaning and break room supplies, business furnishings, technology, and ink and toners.

Brown stepping down as county commissioner to head Puget Sound Regional Council

Kitsap County Department of Public Works receives national accreditation

Kitsap County Commissioner Josh Brown is resigning his position at the end of the year to become executive director of the Puget Sound Regional Council.

The PSRC announced its selection of Brown on Sept. 26 to replace Bob Drewel, who is retiring. Brown has been the county’s representative on the council the last few years and served as its president for 2012-13.

“Josh brings the perfect mix of energy, experience, and commitment to regional collaboration to the role of PSRC executive director,” said Pierce County Executive Pat McCarthy, who is the council’s current president.

“He is deeply familiar with all aspects of PSRC and has shown outstanding ability to bring people together on transportation, growth, and economic Josh Brown development issues.”

McCarthy chaired the executive director search committee, which included 11 other PSRC board members representing the region’s counties, cities, ports, and transportation agencies. There were 115 applicants for the position.

“I am honored and humbled to have been selected as PSRC’s executive director. The challenges confronting our region — from economic competiveness to protecting our quality of life — can only be solved with collaboration and partnerships,” Brown said in a news release announcing his appointment. “I am excited at the opportunity to work with the leaders of our region as PSRC’s executive director.”

The move will provide Brown, who has been a county commissioner since 2007, with a substantial pay increase. His annual salary at PSRC will be $185,000; as a county commissioner his salary was $112,000.

Besides being a past president of PSRC, Brown also had served on the council’s Transportation, Growth Management, and Economic Development District boards.

A graduate of North Kitsap High School in Poulsbo, Brown attended the University of California, Berkeley, and earned a degree in Interdisciplinary Studies and a minor in City and Regional Planning.

To replace Brown, the county’s Democratic Party will nominate three candidates for appointment to serve the final year of his term in 2014. The other two commissioners, Charlotte Garrido and Rob Gelder, will pick one of those three to fill the open position.

The Kitsap County Department of Public Works was recently awarded the prestigious American Public Works Association (APWA) accreditation. The APWA Accreditation program recognizes governmental agencies that go beyond the requirements of management practices established nationally in the public works industry.

Kitsap County’s Department of Public Works is the 87th agency in North America to achieve accreditation, and only the third county and fourth agency in Washington state to have done so. The department received the accreditation award at a presentation ceremony on Sept. 23 at the Board of County Commissioners meeting.

Accredited agencies meet or exceed standards of performance in areas such as road and bridge repair and maintenance, engineering and construction services, building and grounds maintenance, utility coordination and vehicle maintenance.

The Department of Public Works is made up of six main divisions, including Roads & Traffic, Solid Waste, Surface and Stormwater Management, Sewer Utility, Equipment Services, and Support Services.

For the accreditation review of Kitsap County Public Works (www.kitsapgov.com/pw), a team of public works professionals from three other states completed a thorough evaluation of operations during a September site visit.

Public discussion to continue on changing building height limit in downtown Gig Harbor

Leadership — The Essential Business Strategy Featuring Dora Summers-Ewing, PhD, MBA For the past 20+ years, Dr. Dora Summers-Ewing has consulted with global companies of all sizes, and across all industries on four continents. Dora will share insights and experience on leadership development in today's dynamic and ever-changing marketplace. She will also discuss the initial results of a pilot project survey of Kitsap area businesses and organizations and will showcase local examples of innovative human capital strategies that deliver results.

Date:

Thursday, October 17th, 2013

Time:

3:00 p.m. to 6:00 p.m.

Where: The Clubhouse at McCormick Woods, Port Orchard Appetizer buffet, wine & beer

Register online at kitsapeda.org

Panel Discussion: Leveraging Your Most Important Asset

Sponsorship Opportunities Available!

Kitsap Solar Tour will showcase energy-efficient homes and EVs Solar power, energy-efficient homes, and Toyota RAV 4 and Nissan Leaf electric vehicles will be on display at this year's Kitsap Solar Tour on Oct. 5.

Tour maps and other information will be available at two different tour kick-off locations, one on Bainbridge Island and one in Port Orchard.

At each tour location there will be an orientation and Solar 101: Spin Your Meter Backwards presentation beginning at 10 a.m. The homes will be available for touring from 11 a.m. to 3 p.m. There will be three homes on the tour in each community, with homeowners present acting as docents and answering questions.

The tour is free and open to the public. The Bainbridge Island starting location for the tour is the Marshall Residence at 9673 NE Northtown Loop. The Port Orchard location is the Jenson residence at 5858 SE Lake Valley Road.

For more information or to ask questions, contact Andy Cochrane of Power Trip Energy Corp. at 360-643-3080 or andy@powertripenergy.com, or visit the website www.powertripenergy.com.

$40......KEDA Investor Partners $50......Non Investor Partners $350....Table of 10/KEDA Investor Partners $450....Table of 10/Non KEDA Investor Partners

Contact Theresa Mangrum; mangrum@kitsapeda.org

www.kitsapeda.org • 360-377-9499

October 2013 Kitsap Peninsula Business Journal • KPBJ.com 3

A proposal to allow taller buildings in downtown Gig Harbor has proved controversial enough for the City Council to give itself more time to make a decision.

The proposal by the city’s planning commission would change the height restriction to 27 feet for all buildings. Currently, flat-roofed buildings in downtown cannot be higher than 16 feet, while peaked-roof buildings can be as high as 27 feet.

The proposed changes were among four amendments to the downtown business district zoning code. At its Sept. 9 meeting, the council adopted the other three amendments but left the waterfront commercial changes, related to the building height, out of the vote. The council has scheduled an open house on Oct. 14, followed by its regular meeting, where more public comment will be accepted.

The ideas for various changes to downtown have come out of a yearlong public process that looked at a new vision for downtown. The resulting Harbor Vision includes a description of downtown as a place that preserves the history and the neighborhoods, offering picturesque views and a natural environment while providing commercial and recreational services.

At the packed September meeting, many citizens expressed concerns both about changing the look of downtown and the public process. The council, in turn, expressed concern about misinformation circling about the topic.

For more information about the Oct. 14 open house and the proposed changes, go to cityofgigharbor.net.

Decision Makers II

SHIPYARD

from page 1 maintenance work on Navy ships, aircraft carriers and submarines. That will help the shipyard catch up in getting its workforce back to full strength.

“It’s catching up, but it’s also going quite a ways beyond what our population had been,” Mascianiaca said. “We’re growing.”

When the full complement of new helper trainees is brought on over the next several months, the total workforce will grow to about 11,785.

The job posting was online only from Sept. 23-25, but Masianica said shipyard officials anticipated plenty of applications for the entry-level jobs that pay $15.11 an hour.

At the time the hiring freeze took effect Jan. 28, the shipyard had 600 applicants who

had been interviewed and were going to be offered jobs. Those were a combination of engineering positions and jobs in the trades, Mascianica said.

She said the shipyard got authorization in June to fill 253 positions that were vacant because workers had retired or left.

Additionally, PSNS was able to hire 400 or so people from March t hrough June because “we had limited approval to fill certain engineering vacancies during that time period.”

But the hiring surge launched in September is for helper trainees in bluecollar trades such as marine machinery mechanics, outside machinists and welders.

“That’s where right now we have our biggest deficit in our workforce,” she said.

The process will take several weeks, she explained, for applications to be screened in

the human resources office and lists of qualified applicants sent to hiring managers for the various trades. But when the actual hiring starts later this year, about 70 new workers a week will begin training at the shipyard.

With federal budget negotiations still unsettled in Congress and the threat of a government shutdown looming as the worst-case scenario, another hiring freeze is a possibility.

But for now, there are opportunities at PSNS for more than 1,000 jobs that require no particular prior training or experience and offer possibilities for advancement into apprenticeship programs in the various trades.

“This is really good news for us, and really good news for people looking for work, because this is the first step in moving

up through the shipyard,” Mascianica said.

She noted there was a ceremony on Sept. 20 for the 2013 class of 190 graduates in the shipyard’s apprentice program. They completed a four-year program to earn journeyman certification in their trades and an associate’s degree in technical arts from Olympic College.

“We have department heads and superintendents who started out as apprentices and worked their way up,” Mascianica said.

She also said that as more older workers retire from the shipyard in the next few years, it will create a lot of openings for younger workers looking to advance.

“This is wonderful time to be coming in,” she said, “because as the baby boomers age and retire, there will be more room to move up in the organization.”

Gorst business center property goes on the market

By Rodika Tollefson If everything goes as planned, the 8.56acre site in Gorst slated for a business center will be going on the market in October. The proposed project on the sight includes 60,106 square feet of buildings including office and retail space.

The property, owned by Pat Lockhart of Port Orchard, was a rock quarry in the past (Lockhart also owns a rock quarry near the same site). The commercial center has been in the works for many years, but only recently was made viable by the construction of the sewer in Gorst. A recent shorelines permit by the Kitsap County hearings examiner allowed for the project to move ahead.

“We’ve turned it in as a binding site plan, but if someone wanted to move the buildings around, as long as they don’t add parking, it shouldn’t be a problem to make minor changes,” said project representative Gary Anderson of Port Orchard-based G Anderson Group LLC. The property is zoned “highway tourist commercial,” which is intended to provide services for traveling people. It’s the most liberal zoning in the county that allows for a variety of uses including RV dealership, storage facility, light manufacturing and professional offices.

“The property has excellent view potential and it’s a nice location, so office space could be desirable,” Anderson said.

One potential challenge is access. While it’s visible off State Route 3, it has to be accessed through Sherman Heights Road, shared with Servpro. But Anderson said the access shouldn’t be a major issue once people figure out how easy it is, and the highway visibility makes it especially enticing for a business such as RV, auto or boat dealerships.

Anderson said the goal all along was to sell the property; the work on the site infrastructure and permitting make it more marketable. With the turnaround being seen in the commercial market on top of that (albeit still slow), he said the timing is good.

“In today’s world, you have enough uncertainty the way it is. For a property like

this, where you don’t need to do much diligence, it could save a year or more (for development),” Anderson said. “We’ve done all the due diligence so the approval process can be much faster (for a new owner).”

A few minor things were still pending in September, such as fencing and work on the access road. Once the property goes on the market, no new work is anticipated to be done by the current owner.

With the property for sale, it could still be a while before a buyer comes forward and moves the project along, however. “It’s a large-scale project that will require a largescale user,” Anderson said.” “That could take some time.”

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

Revised I-502 rules would allow 10 marijuana retail shops in Kitsap County Under revised rules proposed by the Washington State Liquor Control Board, a maximum of 334 state-licensed retail outlets for recreational marijuana — including 10 in Kitsap County — would be allowed under implementation of Initiative 502. Other licensing restrictions would prevent large commercial interests from establishing monopoly control of the marijuana production, processing or retailing sectors.

The proposed rules that WSLCB refiled on Sept. 4 set a cap on the number of retail stores per county. King County, the state’s most populous, would be allowed a total of 61 retail stores, with up to 21 of those in

Seattle. Snohomish County would have a limit of 35 and Pierce County’s cap would be 31. Kitsap County’s allocation designates two store locations in Bremerton and one in Bainbridge Island, plus seven at-large locations in the rest of the county.

If there are more retail license applications in a city or in a county’s at-large area than its allotted number of locations, a lottery will be held to select the locations.

A single entity and/or the principals in an entity are limited to no more than three marijuana producer or processor licenses in the state. An entity or individual may obtain a combination of separate producer and

Coming Next Issue...

processor licenses, and the holder of a producer and a processor license would not have to pay the 25 percent tax that will be assessed on producer-to-processor sales.

There will also be a 25 percent tax on processor sales to retailers, and on marijuana purchases by retail customers.

Retail license applicants may not apply for the other two types. Retail license holders also are limited to a maximum of three, and may not hold more than 33 percent of the allowed retail licenses in any county or city.

The WSLCB will begin accepting applications for all license types for 30 days starting Nov. 16 and expects to begin

Technology for Business Annual update for the commercial user

issuing licenses, at the earliest, in December or January. Due to the anticipated high number of license applicants, the process may take longer than the projected 90 days.

The board does not plan to limit the number of producer or processor licenses it will issue. However, the statewide annual limit on marijuana production is set at 40 metric tons.

The WSLCB filed its first version of proposed rules on July 3. The board chose to revise and refile its rules after receiving additional public input at five public hearings across the state.

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Marijuana, page 5

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L&I proposes 2.7 percent average increase in 2014 workers’ comp rates The Department of Labor & Industries (L&I) has proposed an average 2.7 percent rate increase for 2014 workers’ compensation premiums, an increase of less than 2 cents per hour worked.

Over the past two years, workers’ compensation surveys have shown an increase in rates nationally. This will be L&I’s first rate increase in three years.

Cutting workers’ compensation costs “This proposal is part of a long-term plan to ensure steady and predictable rates, help injured workers heal and return to work, and reduce costs by improving operations,” L&I director Joel Sacks said.

“My goal is to reduce costs by an additional $35-70 million in 2014.”

Work underway to cut costs includes: • Helping injured workers return to work as soon as they are medically able.

• Improving L&I’s workers’ compensation claims processes.

• Improving workplace safety.

• Improving medical care and reducing long-term disability.

• Making it easy to do business with L&I.

Recession,” Sacks added.

The department’s Workers’ Compensation Advisory Committee, made up of business and labor representatives, agreed to a plan to restore reserves over the next several years.

Public hearings on the proposed rates will be held in: • Tukwila, Oct. 22, 10 a.m., Tukwila Community Center • Bellingham, Oct. 23, 10 a.m., Central Library Lecture Room • Spokane Valley, Oct. 24, 10 a.m., CenterPlace Event Center • Richland, Oct. 25, 9 a.m., Community

Center Activity Room • Tumwater, Oct. 28, 10 a.m., L&I Auditorium • Vancouver, Oct. 29, 10 a.m., Northwest Regional Training Center Rainier Auditorium Comments about the proposed rates can be made at the public hearings or in writing to Doug Stewart, Employer Services Program Manager, P. O. Box 44140, Olympia, WA 98504-4140, or by email to Doug.Stewart@Lni.wa.gov.

More information regarding the rates proposal is available at

www.Rates.Lni.wa.gov. Final rates will be adopted in early December and go into effect Jan. 1, 2014.

Workers’ Comp Facts: • The proposed rate is an average. An individual employer’s actual rate change may be more or less depending on that employer’s industry and history of claims that result in wage replacement and/or disability benefits.

• About 100,000 claims are filed each year through the Washington State Workers Compensation State Fund.

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Keeping rates steady “I want wage inflation to be our benchmark for steady and predictable rates,” said Sacks. “Wage inflation is a good benchmark because workers’ comp costs increase as wages increase.”

Washington’s most recent wage inflation number is 3.4 percent. However, because Washington’s rates are based on hours worked and not payroll like other states, Washington needs to raise rates to get the revenue that other states get automatically.

“We must also continue to restore the state’s workers’ comp reserves that were used to hold down rates during the Great

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October 2013 Kitsap Peninsula Business Journal • KPBJ.com 5

from page 4 “These rules fulfill the public expectation of creating a tightly regulated and controlled system while providing reasonable access to participation in the market,” board chair Sharon Foster said in a news release issued Sept. 4. “Importantly, we believe these rules meet the eight federal government enforcement priorities within Thursday’s guidance memo from the Department of Justice.”

That was a reference to the DOJ decision that it will not interfere with implementation of voter-approved initiatives that legalized recreational marijuana in Washington and Colorado.

Required public hearings on the final proposed rules will be held Oct. 8 in Seattle and Oct. 9 in Spokane. The board will decide whether to adopt the proposed rules on Oct. 16, and if adopted, the license application period will start the next month.

Summary documents including proposed rule highlights, answers to frequently asked questions, the allocation of retail stores and others are also available at www.liq.wa.gov.

Estate planning: Preserving wealth not just for the 1 percent

By Daryl D. Hembry Think you’re not wealthy enough for an estate? Think again. Even a child with a savings account has an estate.

Think your estate isn’t big enough to warrant an estate plan? Consider this: Where do you want your possessions to go when you pass away? Do you want to provide for your family after your death? Leave a philanthropic legacy?

Reduce taxes? Ease the transition of your business?

An estate is nothing more than possessions of value that can be transferred to another individual or entity upon death.

So essentially everything you own — property, bank accounts, investments, business interests, retirement benefits, IRAs, insurance policies, fine art, collections, jewelry, clothing and other personal belongings — comprises your estate. An estate plan determines to whom and when the proceeds of your estate will be distributed in a way that maximizes the value of the estate by minimizing and reducing taxes, liability and other expenses.

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

One percent or 99 percent, estate planning is smart Estate planning isn’t just for the wealthy.

It is just as important for a family with limited financial resources. After all, you work your whole life to acquire, develop

Nine reasons you should have an estate plan Regardless of career and earning power, the reason why most of us work is the same: to have the opportunity to provide a life of comfort for ourselves and those we love. A well-prepared estate plan helps ensure this happens … even if something happens to you. So even if you don’t think you need an estate plan, here are nine good reasons why you should want — and have — one.

1. It will allow you to keep more of your money and property in the hands of your beneficiaries by minimizing and reducing taxes, liability and other expenses.

2. It will ensure that your assets are distributed as you intend.

3. It will allow you to provide for your loved ones in the and grow your estate. It only makes sense to take the time to ensure sure your property and belongings are distributed the way in which you choose.

Estate planning can also be an allinclusive, tax-saving financial plan for the preservation of your assets when combined with savings, investments and retirement; the protection and continued operation of a business; the support and care of your children and much more.

Considerations when estate planning When it comes to transferring property after death, there are four primary methods: 1) Will. A will is a written document that provides for the transfer of all property

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ways you see fit.

4. It will allow you to designate the donation of charitable gifts, provided this is important in the distribution of your property and assets.

5. It can be set up to provide funds to cover your own funeral expenses, as well as any immediate or longterm living costs (in case you become incapacitated).

6. If you are a small business owner, you can ensure business continuity.

7. It will allow you to designate the individuals that you want to carry out your instructions and to care for your minor children.

8. It will help in providing prompt economical and private distribution of your estate.

9. It will help eliminate the likelihood of family disputes over the distribution of your estate.

owned by the person signing it upon her/his death.

2) Living trust. A living trust is similar to a will, in that it assigns transfer of assets to a trustee upon death. Even though your estate is put into the trust, you can control your assets — even revoke them — during your lifetime.

3) Joint tenancy. Joint tenancy is when two or more people own a property together and the title or interest of the person that dies automatically gets transferred to the survivor(s).

4) Community property. Community property is when all earnings and assets acquired during a marriage belong to both spouses, regardless of who earned the income. Upon death of the spouse, the community property is split equally and the survivor gets his or her share outright. The deceased spouse’s share of community property is handled through the will or living trust.

You should take the time to find a local financial advisor and schedule an appointment to create a will and discuss your estate planning. This will allow you to put into writing your intentions on the handling of your property and valuables at death. You can change your will at any time.

For parents, one of the most important parts of this process is designating guardians for your children. Determining who cares for your children upon your death is not something any parent wants to leave as an open question.

You also should choose an executor and explain how you want your property distributed. Choosing an executor is another important decision you should discuss thoroughly with your advisor. This way you can avoid some of the other methods of property and asset transfer that may be against your intentions.

Here are some additional things to consider when estate planning: • Probate. This process deals with proving in court the validity of the deceased person’s will, identifying his or her property, having it appraised, paying off debts and taxes and then finally distributing the remaining property as the will directs.

• Property transfer taxes for the transfer of title on property owned.

• The estate tax, which is a tax on the transfer of property to others. Depending on the value of the property and assets at the time of death, estate taxes may need to be paid before distribution of the estate can take place.

• The gift tax, which is a tax on the transfer of property by one individual to another while receiving nothing or less than full value in return during a person’s life.

This tax prevents the avoidance of an estate tax should a person want to give away his/her estate.

• The inheritance tax, which is similar to the estate tax, but is imposed by certain states.

Estate planning may not sound like fun — most of us don’t like to think of our own mortality — but it is an important and responsible thing to do. So take a few hours to meet with an advisor. They can work with you and your lawyer to address your specific goals and concerns about preserving your wealth. Equally important, a fiduciary advisor can provide you with economic insights and potential legislative impacts to your plan. After all, you’ve worked hard to accumulate an estate. The prudent next step is to develop and execute a plan to protect it.

• Daryl D. Hembry, JD, LLM, is a Senior Trust Officer for Key Private Bank. He can be reached at 253.305.2710 or daryl_hembry@keybank.com.

Five strategies for spending your money in retirement 5. Chill out. Stress and anxiety are quiet killers. They tend to hide inside your body for most of your life and when you get older …

POW! Stress will kill your heart, your brain, and your soul. Find a way to deal with stress if you’re prone to it. That means stop activities that stress you; seek professional help when it’s called for; and gain a perspective about what is truly the most important thing in your life.

IMPORTANT: All stress is NOT bad. In fact, stress can be really positive. The stress that will impact your health as you grow older is the invidious kind that promotes anxiety and despair.

Just like your investments, you should

appreciate in value, not depreciate. Just like in your home, age doesn’t automatically connote decline.

When my dad was 75 years old, he confided in me that he actually felt like he was a 19-year-old that one day exclaimed, “What happened?” As I inch closer to 50, I am “resembling” that comment! I think too many people believe that they will think and feel exactly the same way they do today when they retire. Like Dad, you may think the same, but the “feel” part will be predicated on how well you “invest” in your health today.

The investments you make for financial

freedom at retirement are based on smart decisions made today. Your ability to maximize your money and spend it the way you want is largely based on other “investments” that you make today.

How’s your “portfolio” looking?

• 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.

October 2013 Kitsap Peninsula Business Journal • KPBJ.com 7

By Dan Weedin I need professional help in saving and investing my money. What I enjoy is spending money. If you’re like me, that’s exactly why you go through all the gyrations of estate planning and wealth management. Yes of course you want to leave money to your estate and to charity, and so do I. Yet my goal is for my wife and I to have resources available to do all the things that we want to do in our golden years — travel to exotic places, play golf at the best courses, and eat at the coolest restaurants!

The professional you work with is skilled in helping you create that wealth and have money to do what you want. What he or she can’t do for you is ensure that you are in any condition to enjoy your nest egg as you want. That is up to you.

Certainly life holds no guarantees for any of us. We can be as industrious as possible in the methodology of saving, but we are not assured length of life. Still, we plan on being here, so we save. That’s the smart thing to do. It is also smart to heed the advice of Mickey Mantle, who once quipped, “If I knew I was going to live this long, I would have taken better care of myself.”

The last three years have provided me with new perspective on aging. My dad died two years ago from the ravages of bladder cancer and my mother moved in with us for two years as she began a battle with dementia. Four months ago, we moved her into a skilled nursing facility. My parents were fairly active and healthy well into their 80s before afflictions to their health came on as rapidly as a cheetah chasing down a gazelle.

In reviewing my parents’ lives, I realized that although they seemed active and fit, there were many behaviors and activities that might have contributed to their decline. I want to share my findings and invite you to join me in strategizing on how to spend your money in retirement, rather than on long-term care.

1. Eat better.I mean really better. The sugar intake and processed foods we as Americans consume will catch up with us someday.

Disgracefully in this country, it’s more expensive to eat healthier. Research is clear that diets high in processed foods and sugar will stimulate diseases of the brain and body.

2. Play more. I’m not talking exercise. I’m talking about real play. Take time in your life to have fun, no matter what the activity is.

Schedule it like you would a business meeting and hold it sacrosanct. Life isn’t all about work.

3. Exercise more. Okay, now I’m talking about exercise. Flabby and soft bodies deteriorate faster than strong ones.

I’m not suggesting you become Jillian Michaels. What I do suggest is you find activities you like that involve development of muscle, flexibility and endurance to improve your physical and mental health.

4. Sleep more. A recent study I saw shows that Americans are the most sleepdeprived people in the world. We average less than six hours a night of sleep. There are gobs of research showing that brains that are sleep-deprived are more likely to age poorly.

Should you pay off your mortgage before retiring?

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

By Robert Powell, MarketWatch Which is better: To retire without a mortgage or keep the mortgage and retire with a bigger nest egg?

More Americans approaching retirement face what some describe as worrisome levels of debt.

Consider: More than half (55 percent) of the American population aged 55 to 64 carry a home mortgage, according to a paper presented at the 15th annual Joint Conference of the Retirement Research Consortium in August.

What’s more, that debt isn’t going away after retirement. Among people aged 65 to 74, almost half had mortgages or other loans on their primary residences.

So what’s the better tactic? To aggressively pay down one’s mortgage before retirement, and stop or perhaps reduce saving for retirement? To keep saving for retirement and retire with a mortgage?

Or should you save a bit less for retirement and pay down one’s mortgage a bit more aggressively?

The answer depends on your personal situation.

Variables include current income,

savings, current tax rates, your Schedule A itemization before and during retirement, whether you have access to a Health Savings Account, your retirement income needs with and without a mortgage, your mortgage balance, the number of years remaining on your mortgage, and interest rates and opportunities to refinance — among many other factors.

The tax consequences of pursuing one tactic or the other must be considered.

“There are tax advantages to pension contributions, and interest payments on mortgages are tax-deductible, so one has to compare these advantages,” said Annamaria Lusardi, who, along with Olivia Mitchell, is the co-author of “Financial Literacy: Implications for Retirement Security and the Financial Marketplace.”

Kathleen Mealey, a financial counselor with Cabot Money Management, agreed, saying that contributing to a 401(k) and deducting interest payments from a mortgage could be beneficial, especially if it puts you in a lower tax bracket.

A word of warning: You are likely to lose much of the benefits of deducting mortgage-interest payments the closer you are to paying it off in full. Also, consider this

fact: You do get a tax deduction with your 401(k) contribution. But the deduction only defers your taxes.

Mealey and others also suggest you pursue the tactic that offers the highest return on your investment. “If the longterm rate of return on the 401(k) plan will be higher than the mortgage, and there is a comfort level with the risk involved, it may not be advantageous to pay off the mortgage.”

For some, this is a no-brainer. “With current low interest rates that are fixed for a number of years, a retiree can possibly have a better return on the money in a long-term objective portfolio than the 3 or 4 percent interest payment,” said Michael Callahan, president of Edu4Retirement.

On the other hand, if you aren’t earning much on your retirement investments, if you have low or negative returns, it might make sense to pay down your mortgage, Mitchell said.

Reasons not to pay down mortgage There are some general rules to follow.

For instance, Mike Kenney, a consultant with Nationwide Financial, suggests that you not pay down your mortgage unless you already have ample assets to cover all

retirement income needs and/or are making the full allowable contribution to your 401(k).

“The likely outcome of paying off a mortgage early is increased taxation on earned income now, though this would not apply with a Roth 401(k), and increased taxation due to the loss of a potential deduction later,” Kenney said.

Mitchell suggested that one’s house is a nondiversified, and potentially quite risky, asset.

“In this light, hastening to pay off the mortgage may be the wrong thing to do,” she said.

Reasons to pay down In some cases it might make sense to pay down your mortgage. For instance, if your mortgage rate is variable and you think interest rates are rising, that makes paying off more appealing, Mitchell said.

And some people believe that the “right thing to do” is to pay off the mortgage because it helps them sleep better at night, she said.

Besides, having your mortgage paid off also pays off in other ways. You’ll be able to qualify for a reverse mortgage, said Callahan.

Reasons to keep saving There’s one big reason to keep saving for retirement, advisers said. If your employer matches your contribution to your 401(k) in some form or fashion, that’s “automatic return right away,” Mitchell said.

What’s more, since many employers take the contribution out of your paycheck, “if you don’t see it, you won’t spend it, making that relatively easy,” said Mitchell.

Others, however, prefer having cash in the bank or money in the stock market rather than a paid-off mortgage.

“To me, cash is king,” said Callahan. “If you can amortize the payment of the mortgage, you have options by having the retirement savings on hand. You can always pay off the mortgage if the cash is available.”

Plus, he said, it forces a better financial plan while working because past decisions need to be completed while future decisions need planning and commitments.

And, Callahan said, having a mortgage “may keep people working longer, so that they won’t overestimate the value of their retirement savings.”

Paying down the mortgage before retirement will help you lower your expenses in retirement. That’s especially important because housing represents more than 30 percent of the expenses for people 65 and older.

Lowering expenses is a critical issue in retirement. “With finite resources, keeping expenses low is essential,” said Callahan.

“Owning a home is very expensive. Upkeep — is not cheap.”

Mortgage, page 10

Reverse mortgages tightening up “You’re offering me less on my house for a whole lot more hassle,” — that’s how clients will see it, Neumeyer said. “A lot of people are going to balk.”

He offered this example of how the reductions would work. For a 70-year-old owner with a $200,000 house, the standard version of the program would have offered a total “principal limit” — the amount available to the borrower — of $132,600. Under the revised program, that will be cut by nearly $20,000 to $112,800, provided the applicant can make it through the financial-assessment hoops.

And if the borrower wants to pull down

more than 60 percent of what’s available, he or she will get hit by higher mortgage insurance premiums.

Add in the set-asides for future property taxes and hazard insurance that may be subtracted from the initial drawdown of funds, said Neumeyer, and many borrowers will look at either selling their home or obtaining a home-equity line.

Deborah Nance, a reverse-mortgage specialist with iReverse Home Loans in the Los Angeles area, agrees that fewer seniors will qualify but believes they will be predominantly borrowers with lower incomes, higher

household debt and more marginal credit histories — “the needy people” who previously would have taken the maximum lump-sum drawdown to pay off mortgages and other obligations but now will be prevented.

Nonetheless, she said in an interview, “We’ll still be able to help a lot of people.”

Cristina Martin Firvida, director of financial security and consumer affairs for AARP, the seniors lobby, said while she understands that the FHA must cut losses, inevitably “the changes ... will bar access to reverse mortgages for many.”

• Ken Harney’s email address is kenharney@earthlink.net.

October 2013 Kitsap Peninsula Business Journal • KPBJ.com 9

Kenneth R. Harney Nation's Housing blog WASHINGTON — For homeowners looking to the federal government’s reverse-mortgage program to supply lots of cash for their retirement years, here’s a heads-up: The pipeline just got narrower.

Pressed by Congress to slash losses, the Federal Housing Administration (FHA) recently outlined steps designed to limit the maximum amounts that seniors can draw down on their homes and to make it tougher to qualify for a reverse mortgage.

Starting in January, applicants for FHAbacked reverse mortgages will for the first time have to qualify under comprehensive new “financial assessments” — covering credit history, household cash flow and debt levels — to make sure they have the “capacity and willingness” to meet their financial obligations under the terms of the loan.

At the same time, they may also be required to set aside sizable portions of their drawdowns to handle property taxes and hazard insurance for years to come. As early as October, some applicants will also be required to pay substantially higher FHA insurance premiums if they pull out hefty amounts of funds upfront at closing.

Reverse mortgages are limited to homeowners 62 and older, and allow them to use the equity in their properties to provide funds for their retirement years.

Borrowers need not repay their principal balances — plus compounded interest charges — until they move from the home, sell it or die.

The FHA’s insured reverse-mortgage program, which is hawked aggressively by TV pitchmen including former Tennessee Sen. Fred Thompson, Henry “the Fonz” Winkler and Robert Wagner, dominates the field.

But losses to the FHA’s insurance funds caused by reverse mortgages have mounted and could trigger a nearly $1 billion bailout by the Treasury.

The FHA hopes to avoid that, however.

The newly imposed eligibility and drawdown rules are intended to cut losses and help achieve greater financial stability for the program, according to FHA Commissioner Carol Galante.

Limits on the amounts that seniors can draw down, higher mortgage-insurance fees and rigorous financial vetting of applicants are worrying some lenders and brokers active in the program.

They estimate the maximum drawdowns seniors can obtain will be reduced by about 15 percent, compared with the popular “standard” version of the program that has now been phased out.

Borrowers who take more than 60 percent of the maximum amounts available to them upfront will also pay substantially higher insurance premiums.

The changes are likely to reduce the attractiveness of reverse mortgages to large numbers of seniors, according to some industry specialists.

Matt Neumeyer, owner of Premier Reverse Mortgage in Atlanta, estimates that as many as 40 percent of previously eligible borrowers will look at the reduced limits, the new financial assessments and higher fees and say no thanks.

Retirement for the self-employed may take a different path

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

By Bill Hoke If you've been self-employed and find yourself retired, you probably missed the ceremony where the office chips in to buy you a watch or gives you cruise tickets and hosts a forgettable lunch in a local restaurant.

Then they all go back to work, comment on what a fine person you are/were, how you will be missed, how much better and efficient it is with younger people now in charge, and you begin receiving pension and retirement benefits, maybe the company lets you stay on their health and dental, vision and massage and generally generous benefits package.

For the self-employed, the transition to retirement may be to work part- or halftime, come in late and go home early, try to avoid getting in the way of replacement people, come face to face with what Medicare does not cover (vision and dental, for two) and make adjustments to changes in income.

In our area where one in four (or five) retirees is working for a government entity, life may go on pretty much as usual, with steady retirement benefits the selfemployed can hardly imagine.

But for the self-employed business owner, retirement may bring real challenge, not just in income, but in the transition to a completely different lifestyle where you go from worrying and nurturing your own business to sitting wondering if you really want to read all the Stephen King books you promised you would read.

One year into my involuntary retirement for health reasons, I've had plenty of time to contemplate this new life and begin what appears to be a perpetual job, getting the garage straightened out. I looked at the pile of books I thought I wanted to read — a history of the Panama Canal, another attempt at Joyce's Ulysses, 3,000 pages of Caro's Lyndon Johnson epic biography? It's easier to go to Wikipedia for an overview, make a tuna sandwich and decide if I want to go for a walk in the rain.

One surprising fact from drifting into retirement is how poorly prepared we seem to be from going 100 miles an hour, keeping a twocolumn yellow pad list of things to do, to finding the morning email reduced from 50 to five.

I read that 10,000 Americans retire every day and I thought we would be networking, sharing our thoughts on how to feel useful, productive, how to supplement our incomes without working in fast food with teenagers, how to efficiently clean the house while our spouses are still working.

There was no network and it seems too early to go play pool in a senior center, so I suspect these 10,000 per day learn how to retire, each in their own way, AARP magazine in hand, or not. You have to write your own “Retirement for Dummies.”

My resolution was that I would make no commitments in my first year of retirement.

I put the garage cleaning first and then attacked all the files badly in need of cleaning and sorting, made a lame attempt at sorting 10,000 family photos (why?), did a few dozen household budgets based on the new financial realities and … well, I spent more time in this past year thinking about things than I did in the previous 50. I have learned some humbling lessons about how difficult it is to keep the house clean,

maintenance done, shopping … how did all this get done when we were both working?

One year later, health improved, trying to learn to Twitter, impatient with Facebook and how inconsequential so much of it is, I've applied for a governor's appointment to a state board, spent just a little time on my consulting business (hope springs eternal), and looked for one more place to volunteer.

A few observations from this first year: Don't get lost in trying to recreate your business life. I've yet to read anything very interesting from thes e work stories, and I see and hear people who write hundreds of thousands of words about their jobs and working lives. It may take up a year or two of your spare time, but unless you were working for the CIA/NSA, I'm betting your work history is pretty darn dull, and will appear more so in the coming years. Don't write it! Focus on a family history, genealogy, a recipe book, life stories to write, record, video, for your grandchildren.

Keep moving! Look at the retirees you know who are content to sit and eat, watch TV, go on road trips and not do much except bend an elbow. Go check out the Silver Sneakers programs (often covered by Medicare) and listen to all conventional wisdom that says you've got to remain physically and mentally active. Or else. It was very painful to watch a sedentary friend try to get into exercising after a hip replacement. Stay fit!

No daytime TV! As tempting as it was to surf the 267 channels I receive and watch CNN eight hours a day, from the beginning, I don't watch until my wife is home in the evening. One good thing: I can play my Mozart as loud as I want all day long.

Get out and mingle. It is so easy to stay home, become isolated.

Keep your brain active and, for me, this means I keep a Stephen Hawking next to my bed with the tacit understanding that while I may not ever understand even a brief history of time, I am going to read myself to sleep with this, Foreign Affairs magazine and trying to understand how Mozart could have composed 222 hours of perfect music in his life time.

And now, if you will excuse me, I have a garage to clean.

• Bill Hoke lives in Manette and describes himself as a semi-retired marketing and sales consultant. His wife, Patricia, is executive director of Visit Kitsap, the peninsula's destination tourism marketing agency. Reach him at hoke@hokeconsulting.com.

Kitsap Community Foundation offers seminar for estateplanning professionals Kitsap Community Foundation and BNY Mellon Wealth Management are partnering to offer a free seminar on “Leveraging Charitable Gifts in the Current Low Interest Rate Environment.” This continuing education seminar is intended for Kitsap County estateplanning professionals including attorneys, financial planners, CPAs and insurance brokers.

The seminar will include breakfast and a presentation by BNY Mellon wealth strategist Justin Miller. In addition to learning how the Kitsap Community Foundation can help their clients achieve their charitable goals, professional advisors and development professionals will learn practical solutions and innovative ways to introduce their clients to timely and advantageous charitable gifting solutions.

The seminar is being held on Oct. 22 at the Oxford Suites in Silverdale, from 8-9:15 a.m.

The doors open and breakfast is served at 7:30 a.m. Registration is required and must be completed by Oct. 11 by contacting Shaine Schramling at 360-698-6043 or shaine@kitsapfoundation.org.

This presentation has been approved for one CLE and one CPE credit. Space is limited.

MORTGAGE

from page 8 According to Lusardi and Mitchell’s research, early boomers, as compared with previous generations at the same age, bought more expensive homes and got close to retirement with higher mortgage debt than other generations. They also have higher credit card debt.

“This means that, in addition to deciding how to de-cumulate their wealth, this generation will also have to manage their debt well into retirement, and these decisions are not that easy and do require some basic financial literacy,” Lusardi said.

The bottom line, at least for Mitchell, is this: “I’d say do both — and keep working longer.”

What's your retirement ‘contingency plan?’

By Schelley Dyess You probably have thought about what you’d like to do during your retirement years.

But all your plans probably depend, to at least some extent, on your financial situation.

What happens if you reach the age at which you wish to retire and you just don’t have the money you thought you’d have?

If this occurs, it’s time for “Plan B.” What does that look like? Here are a couple of possibilities: Continue working. If you like your job, you may not mind working an extra year or so. You’ll be bringing in more income and contributing more to your 401(k) or other retirement account — and, perhaps almost as importantly, you may be able to avoid tapping into these retirement accounts, thus giving them more time to potentially grow.

(However, once you turn 70½, you’ll need to begin taking withdrawals from your 401(k) and a traditional IRA.) But if you are really not enamored with the idea of working any longer, you might find that even the ability to “beef up” your retirement plans for another couple of years isn’t much consolation.

Adjust your retirement lifestyle. It’s pretty simple: If you don’t save as much as you had planned for retirement, you

probably can’t do all the things you wanted to do as a retiree. For example, you may not be able to travel as much, or pursue your hobbies to the extent you’d like.

Clearly, you’d like to avoid these “retirement contingency plans.” To do so, though, you’ll need to take steps well before you retire. And the most important move you can make may be to contribute as much as you can possibly afford to your IRA and your 401(k) or other employer-sponsored retirement plan.

During the last several years before you wish to retire, you may be in a strong position to “max out” on these plans because, at this stage of your life, your income may be at its highest point, your children may be grown and you may even have “retired” your mortgage. If you still have money left with which to invest, you may want to look at other tax-advantaged vehicles that can be used for retirement.

But while it’s important to put in as much as possible to your retirement accounts, you need to do more than that — you also must put the money in the right investments within these accounts. Your exact investment mix should be based on your individual risk tolerance and time horizon, but, as a general rule, these investments must provide you with the growth potential you’ll need to accumulate sufficient resources for retirement.

Of course, as you know, investments move up and down. You can’t prevent this, but you’ll certainly want to reduce the effects of volatility

as much as possible when you enter retirement. Consequently, during your final working years, you may need to adjust your retirement accounts by shifting some of your assets (though certainly not all) from growthoriented vehicles to income-producing ones.

It’s a good idea to have contingency plans

in place for virtually every endeavor in life — and paying for your retirement years is no different. But if you can make the right moves to avoid the contingency plans in the first place, then so much the better.

• Schelley Dyess is an Edward Jones financial advisor in Port Orchard.

Morgan Stanley financial advisor receives special designation Morgan Stanley announced that Douglas Berger, a senior investment management consultant and financial advisor in the firm’s Wealth Management office in Silverdale, has earned the CPWA designation from the Investment Management Consultants Association (IMCA). The designation is the only advanced designation designed for financial advisors and consultants who work with high-net-worth clients on the life cycle of wealth.

Berger has worked at Morgan Stanley Wealth Management since 1984 and is responsible for providing financial guidance to help clients achieve their financial objectives.

The CPWA designation identifies those individuals who have met the experience requirements, have successfully completed coursework in advanced wealth management strategies and applied concepts at The University of Chicago Booth School of Business, and have passed a comprehensive examination covering the following areas: advanced tax planning, asset protection, executive compensation plans, stock options, tax-efficient portfolios, business planning, retirement planning, charitable planning, and estate planning.

IMCA was established in 1985 to set the standards and practices for the investment management consulting profession and provide investment consultants with the credentials and tools required to best serve their clients. For more information about IMCA or the CPWA designation, visit www.IMCA.org.

Morgan Stanley Wealth Management provides access to a wide range of products and services to individuals, businesses and institutions, including brokerage and investment advisory services, financial and wealth planning, credit and lending, cash management, annuities and insurance, retirement and trust services. For further information about Morgan Stanley, please visit www.morganstanley.com.

October 2013 Kitsap Peninsula Business Journal • KPBJ.com 11

Purchasing service credits for retiring teachers in Washington state

By Jason R. Parker Over the years we have worked with a lot of retired teachers. The type of teacher's retirement plan you have determines how your benefits are calculated and which components are available to you.

Many of the teachers we have met with, who are considering and transitioning into retirement, have benefits based on two parts from the Department of Retirement Systems commonly known as DRS: 1. The pension component, which is called the defined benefit program, and 2. for those in Plan 3, the retirement savings component called the defined contribution program.

One question many retiring teachers ask is, "Should I purchase the additional service credits?" At the time of this article, purchasing additional service credits is currently available for all TRS Plans 1, 2 and 3.

I've learned over the years that retirement is really all about cash flow and

not your net worth. Your income will determine your lifestyle in retirement. So we always want to look for ways to maximize cash flow. However, retirement planning is very detailed and client-specific, so we are not recommending anyone take action on any strategies we explore here until they have met with a financial professional who can review their entire financial picture to make sure any decision made is best for the them. That being said, let's take a look at this question regarding the purchase of additional service credits.

Many retiring teachers have an opportunity to purchase additional service credits at the time of their retirement to increase their guaranteed lifetime income.

Several clients have asked if this is a good deal, and I've found it to be an excellent source for guaranteeing lifetime income at very competitive payout rates.

The DRS website has a great resource that will explain the formula used for determining the monthly retirement benefit as well as how one can calculate the additional service credits and how much they cost. That link/resource can also be found at the end of this article.

You can certainly do the calculation on your own, but you might find it easier to

just call DRS and request a benefit estimate.

Below we'll explore if purchasing the service credits is a good option compared to purchasing an individual annuity from a private insurance carrier.

In the example used from the DRS website, the hypothetical retiree named Becky, age 65, would use the following steps for calculating the cost of purchasing additional service credits: 1. Calculate estimated monthly retirement benefit without the purchase of service credits.

2. Calculate how much estimated monthly benefits will increase when purchasing additional service credits.

3. Figure out the cost to purchase additional service credits.

This example illustrates that Becky could purchase 60 months of service credits for a cost of $42,981 and increase her monthly retirement benefit by $300 per month. This is an annuity payout ratio of 8.39 percent.

The question then becomes, "How does this payout ratio compare with an annuity offered by a private insurance company?

Will you be better off purchasing the service credits from the DRS system or would you be better off buying your own personal

lifetime annuity from a private insurance carrier?”

I requested quotes from three of the most competitive and highly rated companies who offer annuity payments in the form of pension payouts that we work with in the private insurance marketplace.

Here are the results using the same criteria from the example above (assuming a female age 65 with a lifetime payout, using the same $42,981).

• Company A quoted $234 per month or a 6.53 percent payout ratio • Company B quoted $230 per month or a 6.42 percent payout ratio • Company C quoted $234 per month or a 6.53 percent payout ratio The DRS offer of $300 per month is 28 percent more income than you could get if you were to use the same dollars to purchase an annuity from a private carrier.

Based on this alone, I'd say that if you are looking to guarantee more income in retirement, buying service credits is a much better deal currently then you will find in the private insurance marketplace. But remember retirement planning is very detailed and client-specific, so we are not Parker, page 13

We Understand 12 • Kitsap Peninsula Business Journal • KPBJ.com October 2013

www.edwardjones.com

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Pat McFadden

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Consider your investment strategy at each ‘season’ of your life Phase one: Planning for possibilities — When you’re young and you’re starting out in the working world, your most immediate financial concerns may be to pay off student loans and then, possibly, save for a down payment on a house. To address both these goals, you’ll need to budget carefully. And yet, even at this stage of your life, you should start thinking about saving for retirement — because time is your biggest ally. Consequently, if you work for an employer who offers a retirement plan, such as a 401(k), contribute what you can afford. At the very least, put in enough to earn your company’s matching contribution, if one is offered. You may also want to open an Individual Retirement Account (IRA).

Phase two: Gearing up for other goals — As you move through life, and possibly begin a family, you’ll likely develop other financial goals, such as helping your children pay for college. You may want to consider investing in a tax-advantaged college savings vehicle, such as a 529 plan.

Also, it’s important to have enough life insurance to protect your young family.

Phase three: Ramping up for retirement — When you reach the mid-tolater stages of your working life, you may find you have more financial resources available, as your earnings may have increased significantly, your children have grown and your mortgage may even be paid off. If you are not already doing so, “max out,” if possible, on your 401(k) and IRA.

PARKER

Department of Retirement Systems for the Teachers Retirement plans 1-3.

Links/Resources: • Formula for calculating monthly retirement benefits: http://www.drs.wa.gov/publications/me mber/multisystem/purchase.htm.

• DRS Phone Number: (360) 664-7000 or toll-free (outside the Olympia area) 1-800-547-6657 • DRS Example: http://www.drs.wa.gov/ publications/member/multisystem/ purchase.htm • Online Retirement DRS Seminar: http://ncwctc.com/index.php?option= com_content&view=article&id=183 • Washington Teachers Retirement System Handbook for plans 1-3: http://www.drs.wa.gov/member/ systems/trs/ • Inflation article: http://www.thrivingin-retirement.com/2013/06/inflationand-your-retirement.html • Budgeting article: http://www.thrivingin-retirement.com/2013/04/budgetingin-retirement.html • Social Security Timing article: http://www.thriving-inretirement.com/2012/10/socialsecurity-timing.html This article was written Sept. 16, 2013.

The article referenced from DRS was written in 2011 and it's possible that the change in the interest rate environment from then until now has skewed these numbers, and also consider that rates are subject to change.

Today it looks like the payout ratio from DRS is much better than private annuity companies, but to be safe you should request quotes from private companies to see if they have become more competitive.

We highly recommend you contact the DRS directly if you have questions regarding your retirement plan. I've found the folks at DRS to be very knowledgeable, friendly and quick to answer the phone. At the time I was researching this article, I used the phone number 1-800-547-6657 and spoke with Lee. • Editor’s Note: Article written by Jason Parker, who 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.

from page 12 recommending anyone take action on any strategies we explore here until they have met with a financial professional who can review their entire financial picture to make sure any decision made is best for the them.

How can the DRS afford to have a payout ratio that is so much higher than an individual private insurance carrier?

I called and spoke with a representative at DRS and asked if it were possible for a retiree to receive lower benefits in the future if the trust fund for the DRS were to get into trouble, and she said no. She said in the event the trust fund were to get into trouble, then the state’s general fund would have to pick up the slack. While she felt confident that current retirees would not face any cuts on benefits they were already receiving, she did say it was possible that future benefits for future retirees could be reduced in the event the trust fund were ever in financial trouble.

Be aware that with any fixed-rate product, over time, your purchasing power will be reduced as a result of inflation.

Inflation is always a risk when planning for retirement income, but especially so when buying a fixed annuity as a source of income. When designing a retirement income plan, be sure to calculate an inflation factor and determine how much more income is needed from other sources to help cover the rising costs of living.

The other big risk faced with a fixed lifetime annuity is an early death. The survivor option selected determines if the insurance company will pay any remaining benefit to the beneficiaries. In a worst-case scenario, assuming you had selected the maximum single life annuity option and only received income for one month before dying, then your heirs would not receive any additional benefit and any remaining balance would be retained by the trust fund.

The best way to create a great retirement income plan is to start with a really great budget. You may also be interested in my article on how to maximize your social security income.

Below are a few links you may find helpful when researching your retirement benefits from the Washington State

And if you still have money available to invest, you may want to look for other taxadvantaged retirement vehicles.

Phase four: Reaping the rewards — Now it’s time to enjoy the results of your lifetime of hard work and your many years of saving and investing. You may have to tap into your retirement accounts, so you’ll need to choose a sustainable annual withdrawal rate. The amount you withdraw each year from your IRA and 401(k) depends on a variety of factors: how much you’ve saved, the lifestyle you’ve chosen, your estimated longevity, how much you have available from other sources, and so on.

Phase five: Examining your estate plans — During your retirement years, if not sooner, you’ll want to review your estate plans so that you can leave the legacy you desire. If you have a need to create or update your legal documents, such as a living trust and durable power of attorney, you should consider consulting a qualified estate-planning attorney.

You’ll need to make the appropriate financial and investment decisions at many different times over the years. This may sound daunting, but with diligence and discipline, you can discover the paths to take as you move through the seasons of your life.

• Anji Sell is an Edward Jones financial advisor in Silverdale.

October 2013 Kitsap Peninsula Business Journal • KPBJ.com 13

By Anji Sell Fall is officially here — and if you’re like most people, you’re probably wondering how summer went by so fast. Those trips to the lake or the beach are fading in memory now, giving way to helping kids with homework, raking leaves and the other rites of autumn. And just as your day-to-day tasks change with the seasons, so, too, will your money management and investment activities at different phases of your life.

Here’s how these scenarios might look:

Belfair senior center to break ground, still needs funds

By Rodika Tollefson After years of planning and fundraising, a new senior and community center in Belfair is moving ahead with construction.

The HUB, a project of Faith in Action of West Sound, will break ground next April and could be ready for occupancy by late fall 2014. But the fundraising for the center continues, with the goal of raising enough money for furnishings and fixtures, as well as the completion of a second floor and the addition of an elevator.

Earlier this year, Faith in Action was pursuing a loan from the U.S. Department of Agriculture. That loan is no longer necessary, according to executive director Patti Kleist, thanks to a $500,000

appropriation from the state Legislature this past session and another $500,000 from a local anonymous contributor (half in the form of a donation and the other half as a loan). The USDA loan would have cost a lot of money in administrative costs, Kleist said.

The latest $1 million brings the total raised to date to $2.7 million, which includes another state appropriation of $1.3 million in 2011.

“The $2.7 million will get us the building up and running in the lower portion and the thrift store. We’ll have the building but nothing to sit on,” Kleist said.

Faith in Action serves seniors and the disabled from North Mason, Key Peninsula and South Kitsap. The HUB is expected to attract seniors from all those areas with services and activities such as senior meals, classes and community events. A big part of the program funding for FIA comes from its thrift shop, which will move to the first floor of the HUB and expand its space to include 4,000 square feet of retail and 2,000 square feet for the donations dock.

Another 6,000 square feet on the first floor will house a senior room, classrooms and a commercial kitchen that will be

• For more information about Faith in Action of West Sound and the HUB, go to www.fiaws.org or call (360) 275-0535. available for community use.

The second floor will include the FIA administrative offices and fitness rooms.

The idea of a senior day-care facility is still in discussion with several other agencies but is contingent on funding. Office space upstairs will be available for providers and nonprofits looking for a presence in Belfair.

Additional funding will allow the commercial kitchen to be fully outfitted, Kleist said. The need for an elevator is also adding to the costs, and the constraints of the property don’t allow the building to be one story.

The exact amount of what’s still needed has not been finalized, but Kleist estimates it to be around $500,000.

“We are really hitting it hard with new grants and more fundraisers to raise money

REI set for grand opening of Silverdale store

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

The grand opening of the REI store in Silverdale will be Oct. 4-6. The store is located at the intersection of NW Randall Way and Myhre Place NW. A number of activities, events and giveaways are scheduled throughout the weekend to celebrate the store’s opening. Doors open at 10 a.m. on Friday and Saturday, and 11 a.m. on Sunday, and early birds can enjoy a continental breakfast served one hour before the store opens all three days. REI members and customers can enter to win gear sweepstakes packages, featuring GoPro, snow sports and travel products.

REI offers a variety of educational classes, outdoor presentations and volunteer opportunities in the Puget Sound area. Event and registration information is available at www.rei.com/silverdale or www.rei.com/outdoorschool.

REI Silverdale offers gear and clothing for camping, climbing, cycling, fitness, hiking and more. The store also will provide shop services for bikes, skis and snowboards. Store hours will be 10 a.m. to 9 p.m. Monday through Friday, 10 a.m. to 7 p.m. on Saturdays, and 11 a.m. to 6 p.m. on Sundays.

so it can be done concurrently by next fall,” Kleist said. “If not, we’ll outfit the bottom and keep raising funds. … The rest of the fundraiser will mean the difference between a class-A facility and a bare-bones one and we’re shooting for class-A.” House parties have been among the successful fundraising avenues that Faith in Action has been pursuing for the past few years. As one example, a recent get-together in North Mason brought 25 people to a house party for dinner and conversation, while resulting in $2,500 toward the project.

Kleist has been trying to reach out more in the Kitsap area and hopes to find new partnerships there. She said an estimated one-third of seniors who come to Belfair for senior meals (sponsored by Senior Services for South Sound and Meals on Wheels) are from the Kitsap area. The meals, currently hosted at the Belfair Community Church, are expected to move to the HUB when it opens.

“We are a mile out of Kitsap County and we anticipate this facility will serve South Kitsap residents,” Kleist said. “We would like more involvement from Kitsap in programming and fundraising.”

HBA to launch new ‘Building Kitsap’ publication in 2014 The Home Builders Association of Kitsap County is making some changes in the trade magazines it publishes. In spring 2014, HBA will launch a new publication called “Building Kitsap” on a twice-a-year schedule.

HBA Kitsap plans the new magazine to be a comprehensive source for consumers seeking information about residential construction, commercial construction, and both residential and commercial remodeling.

Along with that move, HBA has decided to end publication of its yearly Remodel Kitsap magazine.

“We are on the verge of a new construction economy for Kitsap and the timing allows the HBA to consider new ways to market itself, its members, and the construction industry in Kitsap,” HBA executive vice president Teresa Osinski wrote in an email to members. “The consolidation of all our construction fields into one consumer-focused publication will allow for greater reach for all advertisers.

With an active name, “Building Kitsap,” it will appeal to consumers in the same way Remodel Kitsap did.”

HBA (hbakitsap.com) has selected Wet Apple Media, publisher of the Kitsap Peninsula Business Journal and West Sound Home & Garden magazine, to publish the new magazine.

Osinski said the twice-a-year publication schedule will provide a fresh edition of the magazine at the two annual HBA Expos in spring and fall. It also will be used to distribute the organization’s Parade of Homes materials.

Businesses can benefit by hiring workers through supported employment A part-time employee who was placed at Trader Joe’s in Silverdale through a supported employment program does his job keeping merchandise properly arranged on store shelves.

Photo courtesy Trillium Employment Services

Kitsap Conference Center in Bremerton on Oct. 2.

The Outstanding Employer Award honors Washington state businesses that have made exceptional efforts to employ people with disabilities and serve as role

models in their industry and community.

Among the businesses selected for the 2013 award are these Kitsap businesses — Boat Shed Restaurant, Gold Mountain Golf Course, Hop Jacks Restaurant, The Learning Tree, Ootopia Coffee Roasters, Walgreens Bremerton, and Kitsap YMCA. Congratulations!

• Jaymie Magana is an employment consultant with Trillium Employment Services. She can be reached at 360-535-4122.

October 2013 Kitsap Peninsula Business Journal • KPBJ.com 15

By Jaymie Magana for the Kitsap Peninsula Business Journal Do you know about supported employment? Do your employees represent the diversity of the Kitsap community, including people with developmental disabilities?

The Bremerton Bar and Grill can answer yes to both of these questions.

That’s because Bremerton Bar and Grill partnered with Trillium, a nonprofit employment agency, to hire Greg as one of their dishwashers. The partnership is what makes supported employment attractive to businesses, which want to have a diverse workforce, but prefer the support in recruiting and training employees with disabilities.

For Bremerton Bar and Grill, a job coach helped train Greg when he was new and provided ongoing support, such as communication with new managers.

Ultimately, the benefit to the business is that they have a reliable dishwasher who hasn’t missed a shift since he started almost two years ago — a great asset in the restaurant industry!

Many local companies are finding that by hiring people with disabilities they are tapping into a population of workers who are excited and motivated to work. Working in partnership with an employment agency that specializes in recruiting and training people with disabilities means there is a team invested in ensuring the new employee is successful and meets the needs of the business. This partnership yields cost savings in recruitment and turnover.

Additionally, with 20 percent of the population experiencing a disability, businesses are also recognizing people with disabilities and their families as a consumer base and want to create workplaces that reflect the community where they market their products and services. According to a national survey conducted by the University of Massachusetts and the America’s Strength Foundation, 92 percent of the American public view companies that hire people with disabilities more favorably than those that do not.

Trader Joe’s in Silverdale had a hard time keeping up with facing merchandise in their busy location. They brought on an employee who now works six hours a week during their busy times to do just this. This niche position helps the store maintain the positive shopping experience for customers and allows other staff to focus their attention on customer service and cashiering.

These businesses have made a commitment to including people with developmental disabilities in their workforce, and through supported employment services, have realized several bottom-line benefits of this businesses decision.

October is National Disability Employment Awareness Month. A slate of Kitsap companies have been selected to receive an Outstanding Employer Award, presented by the Community Employment Alliance and the Association of Washington Business Institute at a luncheon at the

Funding still in flux for coalition’s land conservation goals

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

By Tim Kelly, Editor To a lot of conservation-minded folks around North Kitsap, the DOE might be regarded as Disappointment of Everyone.

The state Department of Ecology recently announced how it plans to allocate the remaining $5 million of a legislative appropriation that originally was intended to purchase a critical shoreline area of Port Gamble Bay. The Kitsap Forest & Bay Coalition had hoped to see most of that funding designated to go toward purchasing more forestland in the bay’s watershed beyond the shoreline block, for which a deal with Pope Resources is in place.

The DOE, however, after soliciting ideas earlier this year for other qualifying projects, came up with a list released in September that allocates only $500,000 to $770,000 for th e land acquisition that has long been Kitsap Forest & Bay Coalition’s goal.

Stakeholders in the coalition uniformly expressed disappointment with that outcome.

“I was taken aback that there wasn't more funding for land acquisition,” state Sen. Christine Rolfes said, “because preservation of that watershed is a once-in-a-lifetime opportunity, as well as a tried-and-true way to preserve that whole ecosystem” around Port Gamble Bay.

Rolfes, a Bainbridge Island Democrat whose 23rd District includes North Kitsap County, said she contacted Ecology officials who assured her that the funding distribution for a dozen projects represents only a “working list” that may be subject to further review.

“We are disappointed, because we did expect the lion’s share of those funds to go to land acquisition,” said Sandra StaplesBortner, executive director of the Great Peninsula Conservancy, one of the community groups active in the coalition.

The way DOE official Barry Rogowski sees it, land acquisition did get the most funding.

“We put 60 percent of the money toward land acquisition, and 40 percent to other projects of critical importance to the bay and the watershed also,” said Rogowski, who’s only been involved with the Port Gamble Bay situation since he transferred within DOE to the Toxics Control Program a few months ago.

His 60 percent calculation, however, includes the $2 million that was already committed (from the total $7 million in funding that came through DOE) to the 454-acre shoreline block purchase.

He also counts $1.5 million (out of the remaining $5 million) that DOE put in

•

DOE’s working list of funding allocations is published with this story on kpbj.com.

contingency status to cover a potential shortfall if another grant for the shoreline deal is lost. Rogowski acknowledged that if the $1.5 million isn’t needed to backfill on the shoreline block purchase, the money could go to other projects, but “I would say there’s a good chance it could go to forestland acquisition.”

Coalition members feel the funding was always intended for buying land, both for conservation to help protect the bay and for maintaining public access for outdoor recreation on the popular network of trails in the upland forest.

The proviso language in the funding bill was intentionally broad, stipulating the money must be used for "Source control, habitat preservation and cleanup sustainability."

The coalition’s land acquisition goal covers all three provisions, and may be the only project on DOE’s funding list that does, according to Linda Berry-Maraist, president of the North Kitsap Trails Association and a Poulsbo City Council member.

“Land conservation is permanent habitat preservation.

Preventing development and providing land for infiltration and protection of the aquifer is source control,” she said.

Berry-Maraist also noted that DOE official Tim Nord, during his negotiations with Pope Resources over a mill site cleanup plan that was required to secure the $7 million in state funding, consistently made public comments about the money going to land acquisition.

She cited a North Kitsap Herald article from February when DOE’s negotiations with Pope were at an impasse that jeopardized the funding. Nord was quoted as saying, “I wanted to protect the bay and shoreline for generations, and the best way to do that was to buy land.” Another quote was "We had an agreement. That agreement was for cleanup and land acquisition."

That was a big reason why Kitsap Forest & Bay Coalition members who were lobbying legislators to get the funding approved thought the $7 million would go to their conservation project.

“We wrote those letters, believed at the time, and have continued to believe that though the proviso language was vague and there might be a mix of projects, the primary intent of that money was for land conservation and the permanent ecological benefits that would come from that,” BerryMaraist said. “It was only late this spring, after DOE-Pope Resources negotiations got so heated and after DOE staff turnover, that I became aware that change might be coming.”

Others echoed that.

“I think when the Pope cleanup deal changed, these dollars changed,” StaplesBortner said.

Rogowski disputed that. “Let’s get real

about this; there are other people lobbying for this money,” he said.

That includes the Port Gamble S’Klallam Tribe, which is involved as a Kitsap Forest & Bay Coalition member supporting its land conservation goals. Yet of the other projects on DOE’s “working list” slated for funding allocations out of the remaining $5 million, five were suggested by the tribe and are allocated more than $1.8 million. Those projects include a study on restoring herring in the bay; habitat enhancement to help restore Olympia oysters; and eelgrass restoration to improve fish habitat.

Tribal chairman Jeromy Sullivan did not respond to calls seeking comment about the DOE funding allocations.

Rogowski said he and other agency staff plan to go to meet with Olympic Property Group president Jon Rose in October for a walking tour of the Pope Resources forestland above the shoreline block.

“We want to figure out which parcels are best to buy,” said Rogowski, adding that the best approach with limited funds may be to “buy prime subsections” of the larger tract, including high-priority areas such as stream and trail corridors and critical habitat and wetland areas.

He also asserted that DOE hasn’t gotten much credit for its substantial contributions toward assuring cleanup and restoration of Port Gamble Bay. “I don't think there’s been adequate recognition that Ecology has put a lot of work into this,” he said.

Noting that the money has to be spent within two years, he said the working list DOE assembled provides a starting point for all the involved parties, who may be able to find other grants — Navy mitigation funds being one possibility — for some of the projects, potentially allowing some flexibility to reallocate DOE funds.

The top priority in restoration of Port Gamble Bay — other than the mill site cleanup that Pope Resources is paying for — has always been the shoreline block south of the former mill site, and the $7 million figure came from DOE’s inquiry to Pope about purchasing that land.

“They asked me for a budget figure,” Rose said. “The property hadn’t been appraised yet, ... so I said why don’t you budget $7 million.”

The land ultimately was appraised at $4.6 million, and the coalition had secured other grants to apply to the shoreline purchase, so the full amount of DOE funding wasn’t needed for that deal. That’s what has created the current situation of conflicting views on how to spend the rest.

“A lot of folks were hoping the rest of it could go to additional land acquisition,” Rose said. “We certainly supported that idea.”

Coalition members planned a late September meeting to consider next steps.

“We are a little disappointed by this working list put out by Ecology, but we understand it is just a working list,” StaplesBortner said. “So we’re hoping to work with our community partners to leverage those Ecology dollars in a more effective way.”

New Gig Harbor restaurant aims to become local hub

By Rodika Tollefson If it’s true that the right name is everything, then the owners of the recently opened The Hub in Gig Harbor are on the way to fulfilling their dream — becoming a new destination for family dining and a gathering place. The Hub, which opened at the Tacoma Narrows Airport in midSeptember, has already created a buzz — not even a week after the opening, it already had nearly 1,000 fans for its Facebook page.

The new diner, of course, has another name recognition aspect going for it. It’s part of Tacoma-based Harmon Brewing Co. (harmonbrewingco.com), which has three other locations in Tacoma, including the original “The Hub,” after which Gig Harbor’s newest diner is modeled.

Co-owners Patrick Nagle and Carole Ford aren’t strangers to the area, either.

Ford grew up in Gig Harbor while Nagle has lived there for 10 years. They’ve been looking to branch out into a new market, and were interested when the restaurant building at the Gig Harbor airport became available.

“We’ve always looked for unique spaces,” Nagle said. “Our business model is to look for unique locations in markets that have a demographic that fits our family dining offerings and the hub concept.”

The hub concept, he explained, includes a value menu of pizza and pub grub, and Northwest staples such as steak, wild Alaska

salmon and crab cakes. Three of the four Harmon Brewing restaurants are familyfriendly; the only exception is the Harmon Tap Room, one of the brewing facilities of the microbrewery.

“Gig Harbor has changed and grown and there are more families. People want to have more places that are unique,” Nagle said.

The airport location satisfies that requirement for Nagle and Ford thanks to the built-in views of aircraft landing and taking off daily. There’s also long-term economic development potential in the area, due to efforts by Pierce County, which owns the airport, to bring in more businesses.

Harmon Brewing has two sides to its business. One is the restaurants and the other is wholesale beer sales in the Northwest. The company started out in 1997 as a microbrewery and eatery in downtown Tacoma — Nagle notes it was another unique location in an area undergoing revitalization. The Hub opened about five years ago in the Stadium District and the tap room followed three years ago.

The Hub brand is distinct, built around a bicycle theme and a pizza theme and includes a “Pie on the Fly” brand for takeout. At the Gig Harbor location, that could prove popular with the commuters who drive through the airport area to get home to Gig Harbor’s west side after work.

Photo by Rodika Tollefson

A few days before The Hub in Gig Harbor’s opening, the restaurant’s staff take a break during preparations at the space at Tacoma Narrows Airport.

For those who opt to dine in, The Hub décor to match the Hub brand. Just three in Gig Harbor will offer ample indoor and days before opening, crews were busy outdoor seating, beer on tap not just from unpacking supplies, hiring the last of the Harmon but other local microbreweries helpers and getting all the finishing touches such as Seven Seas and Silver City in place. (growlers will also be sold), a kids’ menu, a The opening of the new location has happy hour, breakfast on the weekends and been a family affair for both owners, and occasional live music.

Nagle said so far the most exciting part has About 35 people were hired for the been seeing their dream of the new concept restaurant, which has been completely and venue come to life. remodeled. The changes include new “We’re looking to branch out with our floors, moved walls to open up the space, a Hub brand,” he said. “We’ve fallen in love completely new bar, new kitchen with this location and this space.” equipment and, of course, new paint and

October 2013 Kitsap Peninsula Business Journal • KPBJ.com 17

New indoor market to open inside former Gig Harbor nursery

By Rodika Tollefson When the farmers market closes for the season at Gig Harbor’s two locations at the end of September, some of the vendors will return for a few more months — thanks to an indoor winter market. The new market will open inside the former Peninsula Gardens nursery building, which was purchased in 2011 by PenMet Parks. It will be the first public use of the facility since Peninsula Gardens, a longtime, booming year-round business, closed its doors a few years ago.

Dale Schultz, a Gig Harbor farmer and manager of the farmers market, presented a plan to the park district for leasing the building and has been working on the idea for about five months.

“It’s a good spot and a very well-traveled road,” he said.

All the 37 vendor spots have been filled and include both returning farmers market vendors and some new faces. The products that will be available for sale will range from smoked salmon, cheeses and baked goods to handmade soaps, pottery and various crafts. The market opens Oct. 5 and will operate from 10 a.m. to 3 p.m. on Saturdays through Dec. 21.

PenMet bought the 10.5-acre site, which includes the 26,000-square-foot building, with the idea of turning it into its administrative headquarters and central maintenance facility, while using part of the site as a community park. But a master plan

commissioners will have to decide at their next retreat in the spring whether they would allocate $50,000 from the 2014 budget to the master plan.

“There are 35 capital improvement projects on the list and the master plan is one of them,” Lee said, adding that the district is likely to lose another 4 cents per $1,000 valuation in 2014.

“But we anticipated to lose another 14 cents, so this indicates that it’s trending back up,” Lee said.

Rodika Tollefson photo

The former Peninsula Gardens nursery site, which was purchased in 2011 by PenMet Parks, will be used this fall by a group of vendors from the Gig Harbor farmers markets. process never went forward, after the park district lost 60 percent of its revenue for 2013.

As a junior taxing district, PenMet is at the bottom when it comes to receiving its share of the total maximum of $5.90 per $1,000 of assessed value that all taxing districts can collect. PenMet went from a $4 million budget to $1.8 million in 2013 after Pierce County claimed 35 of the 59 cents the park district needed.

“The idea of building a $1 million office complex and $300,000 maintenance site was put on the back burner,” said PenMet Parks executive director Terry Lee. The site was being leased to a sand and

gravel business for equipment storage, but that lease recently ended.

Lee said for the former nursery building to be used regularly, it would require $700,000 worth of improvements, including a new roof, restroom additions and energy and fire code upgrades. But the indoor market was given a temporary use permit by Pierce County for the former retail portion of the building (about $12,000), which allows for the market to take place without any permanent improvements.

Schultz says if all goes well, they’ll consider bringing the indoor market back next year.

In the meantime, the PenMet Parks

New specialty laser shop opens in Bremerton Sliced By Light Laser Studio and Lab is now open for business in Bremerton, located at the corner of Burwell Street and Montgomery Avenue.

The new business operated by Debby and Spencer Hughes specializes in producing high-quality, personalized merchandise using an industrial laser to cut, etch and engrave items.

Sliced By Light is the newest member of the Ries Productions family. Ries Productions has been manufacturing quality tripods for 77 years. Ries recently upgraded and relocated their factory to Bremerton, and the company’s investment in an industrial laser led to starting Sliced By Light (www.slicedbylight.com, www.riestripods.com or (360) 627-8795.

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

Windermere Real Estate/West Sound, Inc. Serving Poulsbo, Silverdale and Bremerton

PROPERTY FOR SALE OR LEASE 19362 POWDER HILL PLACE $17.00 NNN Conveniently located in Poulsbo's Powder Hill Project, this Class A office building offers up to 11,650 square feet of professional, high-tech office space. Convenient to Hwy 305, with easy access to Bainbridge Island, Silverdale and ferries. Unit includes fiber-optic connectivity, and all bandwidth is included in rent. Kelly Muldrow 206-949-3420.

Bremerton #CBA 529362 Excellent new, high quality concrete tilt-up bldg in high traffic + visibility corner location w/immediate freeway access. 4 spaces avail & sizes range from 1500–5772 sq.ft. Office, retail or industrial. $13.00/SF NNN. Mark Danielsen 360-509-1299.

Bremerton #CBA512042 $850,000 Multi use building on Pacific Ave in downtown Bremerton. 3 commercial suites and 11 residential units and the adjoining 53 space parcel parking lot. Solid cash flow investment. Victor Targett 360-731-5550.

Silverdale #NWMLS484573 $3,500,000 Fully leased, 16,200 sq.ft. office building in Silverdale.

Three great tenants with long-term, triple net leases at 7.6% cap rate. No deferred maintenance, hi-tech security system and ADA compliant with elevator.

Bob Guardino360-710-7844.

Bremerton #CBA218892 2,600 sq.ft. office on Perry Avenue. Very convenient location with good parking. Can be divided with separate entrance. Has Kitchenette.

Joe Michelsen 360-692-6102/360-509-4009.

Port Orchard #CBA503406 Great retail or office location on corner of busy intersection. Bob Guardino 360-710-7844.

Bremerton #CBA523871 $750,000 This lot is next to the new Winco Foods and enjoys great exposure to State Hwy 3. Zoned Village Commercial allows many retail and office uses. Lot size is 1.57 acre. Victor Targett 360-731-5550.

Poulsbo #CBA501452 Retail bldg in highly visible location by State Hwy 305.

Owner remodeling former auto service bldg into retail use. Space range 1,000 SF-7,200 SF. $15.00/SF/YR NNN. Mark Danielsen 360-692-6102/360-509-1299.

Bremerton #CBA485909 Excellent 9400 sq.ft. warehouse/distribution center with Hwy 3 visibility, easy access to freeway, office, dock high and PSE energy package. All at very competitive rents.

Joe Michelsen 360-692-6102/360-509-4009.

October 2013 Edition

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

Wednesday, October 2 Kitsap HBA Remodelers Council, 4 p.m.

Thursday, October 3 HBA Bremerton Office Closed HBA Staff at Expo Office Kitsap Sun Pavilion — Fairgrounds Friday, October 4 HBA Bremerton Office Closed HBA Staff at Expo Office Kitsap Sun Pavilion — Fairgrounds Pen. Home & Remodel Expo Day 1: 2 p.m. - 8 p.m. www.kitsaphbahomeshow.com Saturday, October 5 Peninsula Home & Remodel Expo Day 2: 10 a.m. - 6 p.m.

Kitsap Sun Pavilion-Fairgrounds 10 a.m. - 6 p.m. www.kitsaphbahomeshow.com Sunday, October 6 Peninsula Home & Remodel Expo Kitsap Sun Pavilion-Fairgrounds Final Day! 10 a.m. - 5 p.m. www.kitsaphbahomeshow.com Monday, October 7 HBA Bremerton Office Closed HBA Staff at Expo Office Kitsap Sun Pavilion — Fairgrounds Thursday, October 10 Annual HBA General Membership Lunch Meeting, 11:30 a.m.

RSVP to HBA ($15.00 per person) Tuesday, October 15 REX Entries DUE 5 p.m.

Thursday, October 31 2 p.m. Executive Cmt. Mtg. 2:30 Government Affairs Cmt. Mtg. 3:30 Board of Directors Mtg.

Kitsap HBA Remodelers Council: A great resource for consumers in Kitsap County Professional remodeler members of the Home Builders Association of Kitsap County have the added benefit and opportunity to join the Kitsap HBA Remodelers Council. This Council is focused on improving the level of professionalism among remodeling companies in Kitsap County.

The Kitsap HBA Remodelers Council is chaired by Walter Galitzki, owner of Sun Path Custom Construction. Walter is one of Washington State’s first Built Green Builders and has won numerous Remodeling Excellence Awards.

The Council meets monthly at the HBA and generally focuses on education and professional development. Topics cover a lot of territory from small business management issues to understanding regulations and codes like asbestos or lead. As summarized by Past President and twice recognized Remodeler of the Year Wayne Keffer, “I’d much rather bid a job against a well educated, professional, remodeler than some guy who hasn’t been trained on how to run a small business.” He went on to explain it this way, “Even though we are all competitors, the more educated we are about running our businesses, including the proper way to estimate a job, the better it is for the industry and ultimately for the consumer.”

Many members of the Kitsap HBA Remodelers Council have taken classes through the National Association of Home Builders to earn their designations, and further setting themselves out in front of their competitors. Many HBA members have letters that follow their name like CGP (Certified Green Professional) or GMR (Graduate Master Remodeler) and CAPS (Certified Aging In Place Specialist). There is a long list of possible designations and all require many hours of classroom instruction. If you meet a builder with letters after their name, ask them about it!

If you’re contemplating a remodel, consider attending the Peninsula Home & Remodel Expo, October 4 - 6 in the Kitsap Sun Pavilion at the Kitsap County Fairgrounds. This is a great annual event focused on helping area consumers find professional service providers ready to help them tackle their home improvement project. Always themed as “Reinvest In Your Dream,” this event will inspire you to get started on that project you have put off. Exhibitor and Council Chair Walter Galitzki said, “This Expo is the best place to meet our area’s remodeling profession als, see the array of home related services available right here in Kitsap County, and attend brief, free, high quality seminars about popular remodeling topics. It’s the only Expo of its kind on the Peninsula.” Be sure to visit www.kitsaphbahomeshow.com to see a complete list of vendors and find out how we’ve put the “remodel” back in the Peninsula Home & Remodel Expo.

Whether you can make the Expo or not, if you’re considering a remodel be sure to contact the Home Builders Association of Kitsap County with an office visit or through our website at www.kitsaphba.com. If on our site navigate to the Membership Directory and search for remodelers. If you stop by instead be sure to pick up the 2013 Remodel Kitsap magazine for on-trend articles and informative professional remodeler profiles.

Be careful about that “nice guy” who isn’t registered, insured or bonded.

Verify any contractor you hire is properly registered with the Washington State Department of Labor and Industries by looking them up on the L&I website at www.lni.wa.gov.

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

PORT ORCHARD FORD

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

brucetitus.com

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 • Joe Hurtt 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

October 2013 Edition

Robert Baglio

Building Code updates & their Impact on the cost of a New Home

This last summer all jurisdictions in Washington 2013 President State adopted the 2012 International Residential Code (IRC) and the International Building Code (IBC) Building Code. These building codes are reviewed and updated every three years. Each three year cycle includes numerous revisions and updates. These revisions and updates can significantly impact the cost of construction. According to the National Association of Home Builders (NAHB), A Home Innovations Research Lab study found that moving from the 2009 IECC (International Energy Conservation Code) to the 2012 IECC increased the average cost of construction of a single family home by more than $5,688.00.

This results in 13 year payback to the home buyer. Additionally, it is estimated that for every $1,000 increase in the price of a new home it prevents approximately 234,000 potential buyers from qualifying for a mortgage. The costs of the various codes revisions and their impacts on the ability to provide affordable housing must be considered.

With the recent adoption of the 2012 building code by all the local jurisdictions, the International Code Council (ICC) is already scheduled to gather in October to review new or modified code requirements for the 2015 code review cycle. A few of the proposed changes in the 2015 code update and their associated costs are provided below: Accessibility Requirements. This proposal would require all one and two family dwellings and townhouses to meet accessibility requirements. This would require that all dwellings be designed to allow individuals with disabilities to enter the dwelling unassisted from the public way or driveway, have a zero clearance entrance into the dwelling or be provided with an elevator or lift, an accessible bathroom, bedroom and a kitchen with 40 inches of clear floor space at all counters.

The cost of providing a zero clearance entrance and an accessible route within the dwelling could range from $2,000 $3,000. If an elevator of wheel chair lift would be required due to a steep grade or other factors that prohibit a zero clearance entrance the cost would be between $6,000 and $8.000.

Draft Stopping in Attics. This proposal would require draft stopping in attics every 1,500 square feet in all single family homes. The draft stop would require that drywall or another approved material be installed from the ceiling joist to the underside of the roof sheathing to prevent the passage of smoke from one side to the other. The cost of each draft stop is approximately $200 - $300 per draft stop.

Maximum 50 Foot Travel Distance. This proposal would require all single family homes and townhouses with multiple levels to have set of stairs or landing within 50 feet of all habitable portions of the dwelling. Currently, the code only requires a single set of stairs in all single family homes and townhouses. Depending on the size and configuration of the dwelling this could require one or more additional staircases. The cost of adding an additional staircase ranges from $10,000 -$15,000.

This information was found on the NAHB website and is just one example of how the national association is working on important matters that will impact our local members. It is extremely important that every proposed code change be considered and their impact on the affordability of new home construction be taken into account. Industry support through membership in the HBA of Kitsap County ensures that the industry has a seat at the table for important policy discussions at the local, state, and national levels. As you can see, these are just a few examples of the proposed changes that are being considered in the 2015 edition of the International Energy Conservation Code, International Residential Code and the International Building Code. Help us avoid the impact of such onerous codes by being a member of the HBA. The BJC Group

Teresa Osinski

Collateral Damage

As a trade association, the Home Builders Association of Kitsap County spends a CGP significant amount of time Executive tracking important regulatory Vice President issues throughout our County, State and sometimes at the national level. Topics of concern are vast. One day I might be working on an issue important to all small business owners and the next it might be something very specific like asbestos handling and disposal. That reality is one of the best parts of working for the Home Builders Association. The outcome of that effort is often the satisfaction of knowing the HBA was prepared and able to directly affect a process underway in one of our several jurisdictional governments in a positive way.

When we are able to impact change the results are generally beneficial to all Kitsap companies whether they are members or not. Often times our efforts directly benefit consumers because they are most often the unrepresented. It is rare that I see well organized, well informed, citizen groups engaging in public policy issues before they are affected by them. It is only after they find out a regulation has past and they find out a regulation affects them that they show up at all. Usually, by that time it is too late. This phenomena is common in construction issues because so few people pay any attention to land use or construction rules until they, later, find themselves in the market to buy or build a home or business.

Sometimes, however those efforts come with unintended consequences or collateral damage. Unfortunately, it can’t always be avoided. Regulators (staff as well as elected officials) are just people, and even though the HBA has a well practiced habit of avoiding “excessive celebration” fouls after something has gone particularly well for our members; there are professionals among the regulatory machine in Kitsap that struggle to keep their personal views out of it and focus on the common good. I’m sympathetic to that because I’m a passionate person and for others that feel passionately about the topic they advocate for it can be a lesson in restraint, tact, and discipline to move on and play nice.

This general HBA philosophy has often forced us to avoid editorials, press releases, and even using this newsletter to inform our members of important successes we’ve achieved on their behalf. We report our success but sometimes the magnitude of it; the true value to our members — and those that might be members — may be lost in our subdued reporting. Even so, it is the right practice and it is the right policy. The HBA has been, and will continue to be, the trade association in Kitsap that seeks out unique partnerships, works cooperatively toward well balanced solutions to industry problems; and extends its hand to work on common goals any time we can with any entity willing to engage.

SMOKE DETECTORS SAVE LIVES Keep you, your family, and pets safe by properly maintaining your home’s smoke detector.

1) Test your alarms each month.

2) Twice a year replace the batteries (a reminder is to swap the batteries each time we rotate the clocks forward or back, or always change them during the December holidays and then again on the 4th of July).

3) Never remove the battery when you accidentally set off a smoke detector while cooking. Chances are good you’ll forget to put it back in. Open a window or door to release the smoke instead.

Practice these 3 easy steps to protect you and your loved ones.

October 2013 Edition

Government Affairs Committee

Get Out The Vote

As Walt Washington, the Kitsap County Assessor has said in this year ’s voter pamphlet, “local elections Judy Mentor Eagleson start with you, the voters.”

Mentor Company While this is considered an 2013 Chair “off ” election year because there are no federal offices on the ballot and only one state level office up for vote in Kitsap County, the importance of the election remains pivotal in your daily life. In the Nov 5th General Election you will have the opportunity to decide who will be running your schools, your fire departments, your port districts and your cities. Voting has never been easier. On Oct 18th ballots will be mailed to all households. Read the directions, fill in the boxes and put your ballot in the mail or visit one of the seven 24-hour ballot drop boxes located throughout the county. Nov 5th is right around the corner and I would like to encourage each and every one of you to vote. With just a few more interviews to go, the Affordable Housing Council of the HBA of Kitsap County has interviewed and endorsed the following candidates for office: 25th Legislative Senate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Jan Angel Bremerton Mayor . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Patty Lent Bremerton Council Position 1 . . . . . . . . . . . . . . . . . . . . Mike Sullivan Bremerton Council Position 2 . . . . . . . . . . . . . . . . . . . . . Leslie Daugs Bremerton Council Position 4 . . . . . . . . . . . . . . . . . . . . Greg Wheeler Bremerton Council Position 5 . . . . . . . . . . . . . . . . . . . . . . Dino Davis Bremerton Council Position 6 . . . . . . . . . . . . . . . . . . . Faye Flemister Port Orchard Council Position At Large . . . . . . . . . . . . . Jerry Childs Port Orchard Council Position 2 . . . . . . . . . . . . . . . . . . . . . . Kim Punt Port Orchard Council Position 3 . . . . . . . . . . . . . . . . Rob Putaansuu Bainbridge Island Council North Ward . . . . . . . . . . . . Dick Haugen Bainbridge Island Council South Ward . . . . . . . . Roger Townsend.

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

24 hour emergency clean-up

ACTION

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

ANNOUNCEMENT!

HBA Annual General Membership Meeting All HBA members are encouraged to register and attend the annual meeting of the HBA membership. This luncheon is your opportunity to vote on the Officers and Directors for 2014 and other important business of the Association. Watch the mail for your official notification and the 2014 slate of board approved nominees.

Thursday, October 10 @ Kitsap Golf & Country Club (11:30 a.m.)

Special Guest: Representative Jan Angel ALL HBA MEMBER COMPANIES ARE ENCOURAGED TO ATTEND!

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.

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October 2013 Edition

Welcome New Members Guild Mortgage Carolyn Frame 363 Tormey Lane Bainbridge Island, WA 98110 (206) 780-6082 cframe@guildmortgage.com And the SPIKE goes to...

Randy Biegenwald Randy Biegenwald CPA PS

Royal Valley, LLC Ellen Ross-Cardoso 21350 Stottlemeyer Rd. NE Poulsbo, WA 98370 (360) 981-5858 erosscardoso@outlook.com And the SPIKE goes to...

Berni Kenworthy Team 4 Engineering

Keller Supply Co. Pat Medveckus 3701 W. Loxie Eagans Blvd.

Bremerton, WA 98312-3648 (360) 373-8868 pmedveck@kellersupply.com And the SPIKE goes to...

Dee Coppola Wet Apple Media

VECA Electric & Technologies Bill Robertson 7000 Werner Rd. Bremerton, WA 98312 (360) 917-3004 Bill.robertson@veca.com And the SPIKE goes to...

Dee Coppola Wet Apple Media

Gary Lindsey 2916 Bucklin Hill Rd. Silverdale, WA 98383 (360) 509-7649 glindsey@wavecable.com And the SPIKE goes to...

Mike Brown FPH Construction

Member Advantage!

HBA members are members of the NAHB too. NAHB has worked hard to create money saving benefits that only members can enjoy.

Check it out! Go to www.nahb.org/ma and find out all the great Member Advantage programs including: GM vehicle discounts, Dell computer deals, LOWES 7% for contractors, AVIS rental car discounts, and so much more! Take advantage of your member advantage.

Thank You Renewing Members 30 Years Port Orchard Sand & Gravel Co., Inc Over 20 Years Sun Path Custom Construction Inc (24)

Over 5 Years Michael F Wnek PE PS (8) Quadrant Homes (8) JL Homes

15 Years Advanced Heating & Cooling Inc

5 Years CleanSpace Northwest Inc. Lubas Floorcovering Inc.

Over 10 Years Port Orchard Glass LLC (14) Kimco Plumbing Inc The BJC Group Inc Peninsula Roofing LLC

Over 1 Year Whitworth Excavating Inc (4) Paul Davis Restoration & Remodeling Gale Contractor Services

10 Years Coldwell Banker Park Shore Real Estate Habitat for Humanity

1 Year Anniversary O.L.D. Land Development Inc. Allen & Charters Enterprises 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.

Daily E-mail Updates It’s FREE for everyone!

Even if you’re not a Business Journal Subscriber

It’s easy to sign up!

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

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Just visit 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.

Bremerton Marina’s occupancy rate at all-time high Consultant’s new marketing approach brought in many new boats over the summer restaurants and other things."

Another piece of the marketing plan appealed to boaters whose vessels are shorter than 36 feet. Rather than paying the monthly rate for a 36-foot slip, which is the shortest available at the Bremerton Marina, those tenants are charged a lesser pro-rated amount based on the length of their boats.

Wise said the 60-plus new tenants drawn to the marina this summer were about evenly split between those who took advantage of the small boat offer and boaters who signed up for the two-for-one deal.

Port of Bremerton conducting search for new CEO The Port of Bremerton commissioners are seeking a Chief Executive Officer to replace retiring CEO Tim Thomson. Port Commission president Larry Stokes said they will look industrywide to find the right person for this position.

The Port Commission is establishing a selection process that provides an opportunity for candidates to have equal access to be selected a s a finalist and for the commission to have a final group of applicants with outstanding qualifications.

The commission plans to fill the CEO position effective Dec. 1, for a one-month orientation period with Thomson prior to assuming full responsibilities on Jan. 1 when he retires.

Persons interested in applying for this position can find the job announcement and position requirements on the port’s website: www.portofbremerton.org.

The Port of Bremerton, one of 75 port districts in Washington state, is a special purpose district whose charter under state law is to promote economic development, to facilitate job creation, to provide for aviation and marine transportation, and to promote tourism.

Staff file photo

He and Port of Bremerton CEO Tim Thomson both noted that the marina did not actually lower its monthly moorage rates.

"What we did was change the incentive," Thomson said, by offering the two-year contract at one year's cost. "To one’s pocketbook it looks like we cut the rate in half. But I think it is important for people to know we didn't just go out there and lower our rates."

The port is already seeing increased revenue from the marina, which had been operating at a substantial loss every year since it opened. To reduce the persistent operating losses, the port had cut some positions from its marina staff last spring as part of a wider restructuring plan Thomson implemented.

The port's reported moorage revenue in July was nearly $39,000, the highest Marina, page 24

Help Feed the Need Announcing our 9th Annual Food Drive To Benefit Kitsap County Food Banks Food Drive Runs: Oct. 28 — Nov. 15

Bremerton Offices for Lease 400 Warren Ave., Downtown Bremerton • • • •

One block from Naval shipyard Walking distance to Seattle Ferry 741 SF to 11,695 SF available 2nd floor available: – Executive offices, conference room – Large open work area w/workstations • On-site parking • $20.00 full service lease

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360-479-6900 • 800-479-6903

An aggressive marketing plan over the summer has drawn more boats to the Bremerton Marina, which reported an alltime high occupancy rate of 60 percent in August.

www.bradleyscottinc.com

Donation bins will be located at participating Kitsap County Real Estate Offices, Lending Institutions, Local Chambers of Commerce and at all Pacific Northwest Title Offices.

We would love your support in helping to “Feed the Need” in Kitsap County. Thank you for your generosity!

OF KITSAP COUNTY

SILVERDALE OFFICE

BAINBRIDGE ISLAND OFFICE

PORT ORCHARD OFFICE

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

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

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

www.pnwtkitsap.com

October 2013 Kitsap Peninsula Business Journal • KPBJ.com 23

By Tim Kelly, Editor Seems like boaters know a good deal when they see one.

The Bremerton Marina signed up enough people through a special two-year moorage offer and other promotions over the summer to boost the occupancy rate at the Port of Bremerton facility to an all-time high of 60 percent.

A lot of the credit goes to Bob Wise, the consultant who was hired by the port on a temporary contract to take over marketing for the marina, which had never managed to fill more than about one-third of its 220 permanent slips since it was built in 2008.

"I think I stuck my neck out and said we're going to get 50 new boats," said Wise, who was paid $45,000 for a five-month contract.

His marketing campaign exceeded that goal by promoting the marina through some new channels using social media, and getting some coverage in boating magazines and websites.

His approach also simplified the marina’s rate structure and eliminated a complex array of promotions and discounts that had been offered previously but yielded few results.

The main attention-getter in the recruitment efforts Wise undertook was a two-for-one offer for new tenants, who would only be billed every other month if they signed a two-year moorage contract.

Fred Ahrens, one of the new marina tenants who signed up, had been keeping his family's sailboat moored in Anacortes near the San Juan Islands. But he recently moved his 36-foot Catalina sloop to Bremerton, where it will be only an hour's drive from his home in Federal Way. "It's a great deal, obviously, and we like to explore new areas," Ahrens said of his decision to make Bremerton his new home port.

"It's nice and clean," he said of the marina. "It's a good facility, and it's nice to have downtown right in back, with

Let’s take care of our own

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

By David L. Foote As United Way fast approaches another Community Campaign period, I was intrigued by a recent column by well known columnist Cal Thomas. The article was entitled “Losing faith in our government.”

Mr. Thomas cited a USA Today/Bipartisan Policy Center poll, “Americans by more than 2-1 say the best way to make positive changes in society is through volunteer organizations and charities, not by being active in government.” Later in the article after besmirching politicians, Mr. Thomas rightly states that, “Charitable organizations are addressing problems the federal government only talks about.”

He then cites World Magazine, a biweekly Christian publication that has given its annual “Hope Award for Effective Compassion” to My Safe Harbor, an organization in Anaheim, Calif., that helps single mothers break the dysfunctional cycle of broken homes. The program promotes faith, personal responsibility and accountability for one’s actions. It is an anti-poverty program that works.

Right here in Kitsap County, United Way recognizes every year nonprofit

organizations that work extremely hard to give hope and effective compassion to people and families who suffer from poverty. That is why United Way of Kitsap County has been in business for over 75 years.

It is time that we in Kitsap County and for that matter all communities realize that the times have changed and that the government dollar spigot has been turned off, and that our best hope is local charities supported by local people.

Some of you might remember when we took care of our own. Families took care of family, friends helped friends, and when that wasn’t possible we depended on churches and local charities to help.

Times have changed! More people are depending on part-time jobs to try to make ends meet. More families are having to make trips to the local food bank rather than the grocery store. More people are shopping in Goodwill or Value Village than in department stores. And I am sure that you know someone who has fallen on bad times and maybe has lost or is about to lose the roof over their head.

So, what do we do? Do we just stand by and watch as our neighbors, friends and maybe even our relatives suffer? I sure hope not! The USA Today and the Bipartisan Policy Center are correct; the best ways to make positive changes in society are through volunteer organizations and

charities. Whether you donate $1 or $10,000 to your favorite single charity or donate monthly through payroll deduction through your employer, your dollars will be better spent locally helping those in need.

As United Way begins its Annual Community Campaign, I hope that you will consider pledging your dollars through United Way. We can do more united than we ever can alone. Your dollars joined with others and leveraged by United Way have for over 75 years created lasting change in our community through a collaborative network of caring, compassionate health and human service organizations that professionally case-manage individuals and families, helping to put them on the road to

self-sufficiency.

Please, during this campaign period, help begin to renew our faith in ourselves as a community through a charitable gift.

Remember, a gift to United Way is multiplied hundreds of times by others in the community who give the united way.

For more information about United Way or to make a tax-deductible gift, call (360) 377-8505 or visit our website at www.unitedwaykitsap.org. We can do more united then we ever can alone! Give, Advocate, Volunteer; how do you Live United?

MARINA

some more boats from that," Wise said.

"It's a quite large event, that's primarily oriented to the larger vessel community."

There's more to the marina's turnaround than just having more boats tied up there. There was more activity over the summer using the waterfront as a location for community events, such as the Rock the Dock series of free concerts on Friday nights on the boardwalk by the marina.

"The pl ace is much more vibrant," Wise said.

The concert series, which he hopes will expand next year, was something that was "put together quickly, but we were able to pull it off for a successful six-week run," he said. "I think it was received quite well, and it's a perfect venue to do events like that and bring people down there."

Thomson, who won't be around the marina in his official capacity next summer since he's retiring from his port CEO job at the end of the year, said the marketing campaign has brought "wonderful progress" for the marina. And he thinks the new tenants will stick around beyond the two-year deal many of them got.

"We believe after two years they will see the port does a good job taking care their tenants," he said. "They'll want to stay, and it will be the quality of customer service that wi ll keep them there."

The port is planning to contract out for additional marketing services to build on this summer's momentum and hopefully push the marina closer to full occupancy.

But Wise, who owns the Port Hadlock marina and also works in the telecommunications industry, didn't say whether he might be back for another go, although he discussed plans for 2014 in a presentation he gave to port commissione rs on Aug. 27. Wise had submitted a proposal late last year when port commissioners considered — though ultimately decided against — hiring a private management firm to run the struggling marina.

For now, he said he enjoyed his relationship working with the port and marina staff the last several months.

"I'm pretty happy with the way it turned out, and I think they are too," Wise said. "They were incredibly cooperative and open to new ideas."

from page 23 monthly amount the marina's ever brought in. In August there were 134 boats moored in permanent slips, compared with 88 in August 2012, and a September sales pitch was expected to draw in a few more.

Shortly before his contract expired in mid-September, Wise went with Thomson and marina manager Kathy Garcia to the Boats Afloat Show in Seattle on South Lake Union. The two-year moorage offer had expired July 15, but it was renewed at the boat show for anyone who stopped by the Port of Bremerton booth and signed a contract by the end of September.

"I'm confident we're going pick up

• David L. Foote is executive director of United Way of Kitsap County.

Technology group’s summit focuses on STEM education

By Rodika Tollefson Washington state has 20,000 unfilled STEM (science, math, engineering and technology) jobs. The number reflects a national trend — not enough aerospace workers are being produced in the United States. To add to the problem, the STEM workforce is aging, and fewer women are interested in the four disciplines.

Those were among the challenges introduced by several speakers to a multidisciplinary audience attending the annual West Sound Technology Association summit at Suquamish Clearwater Casino Resort in September.

The summit, which focused on STEM education, brought together both local professionals and representatives from companies such as Boeing and Microsoft.

Some of the six speakers highlighted solutions to the shortage — starting with the young minds of today. Locally, for example, school districts have implemented various STEM-related programs and initiatives, said Port of Bremerton CEO Tim Thomson, who is part of the Kitsap Aerospace and Defense Alliance. Olympic College is also working on producing more STEM workers — the college recently received a $2.2 million grant (out of a total $20 million state allocation) to start three

new aerospace-related programs, OC president David Mitchell said.

Keynote speaker Doug King, CEO of the Museum of Flight in Seattle, credited aviation — and Washington state’s own Bill Boeing, a timber executive — with changing the way people lived.

“The world has changed and aviation has done that,” he said, in giving a brief history of the development of commercial aviation.

He also said it’s up to the new generations to carry forward the spirit of innovation. “The truth is, we have seen nothing yet. (Young people) will continue to change the world and how people live,” he said.

The Museum of Flight has various programs to help inspire and entice youth to pursue STEM careers. The organization is also a major supporter of Raisbeck Aviation High School, which in October will move to a new, $43.5 million facility built on the Museum of Flight campus. The high school, a public-private partnership that is part of Highline Public Schools, was the first aviation-themed college preparatory school in the country and is the only one in the Northwest. Students come from 22 school districts around the region, including from Kitsap.

“(The students) come because they want to be challenged. There’s nothing wrong with having high expectations for students because when you do, they will rise to the occasion,” Reba Gilman, principal of Raisbeck Aviation High School, told the audience.

The teachers at the school include engineers, pilots and flight instructors, including national board-certified teachers.

The students score in the top 5 percent in state tests, Gilman said, attributing the high scores to the fact that the subjects are relevant to the students.

The school uses a project-based approach to learning, and all students

complete high-profile internships before their senior year with employers such as Boeing, the Federal Aviation Administration and Kenmore Air. Graduates continue on both to community colleges such as Olympic College and Ivy League schools such as Harvard.

“We value networking, teamwork, public speaking and we begin connecting students with those opportunities from the moment they come,” Gilman said.

Other speakers at the summit included Susanna Malarkey, executive director of Technology Alliance, and Poulsbo City Councilman Ed Stern, who is on the Puget Sound Regional Council board of directors.

Suquamish Museum achieves LEED Gold designation Tim Ryan Construction, Inc. announced that the Suquamish Museum project the company completed in September 2012 has received a LEED Gold rating. The project targeted LEED Silver, but received enough credits to achieve the gold rating.

The project architect, Douglas Sharp of Mithun Architects, announced the designation.

In the efforts to achieve the LEED rating, it was a difficult task since the criteria for LEED did not conform to operating criteria for museums. It was a collaboration effort by the Suquamish Tribe, David Grein of Mithun Architects, and Tim Ryan Construction.

“TRC kept a tight jobsite, ensuring the dual intents of protecting the artifacts and achieving this certification were met,” Sharp said.

For more information on Tim Ryan Construction, contact Dan Ryan at (360) 779-7667, or visit the company’s website at http://www.TimRyanConstruction.com.

RePower program extended for Kitsap County residents

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October 2013 Kitsap Peninsula Business Journal • KPBJ.com 25

RePower program partners announced that they have received a grant extension allowing Kitsap County residents more time to save energy, increase comfort, and improve indoor environmental quality with the help of a limited-time $400 RePower Reward. RePower was originally scheduled to end on July 15 when the grant funding was set to expire, but the Department of Energy awarded RePower an extended timeline to complete home energy upgrades in Kitsap County by Dec. 31.

To help homeowners plan and make energy improvements before the grant deadline, RePower is hosting a free one-day event, RePower Now, on Oct. 12, from 10 a.m. to 4 p.m. at the Sons of Norway Oslo Lodge in Bremerton at 1018 18th St. Kitsap County residents will have an opportunity to connect with multiple contractors to review energy upgrade options, schedule a home energy assessment with EPS, and make appointments for home energyupgrade projects. At this event only, attendees will receive the $400 RePower Reward plus a special bonus from contractors when they complete two or more qualifying upgrades.

“We’re thrilled that we can continue offering a great energy-saving incentive to our communities for a few more months,” said Yvonne Kraus, RePower program manager with Conservation Services Group. “The timing could not have been more perfect for this extension with residents gearing up for the cold winter months ahead and looking for ways to keep their energy bills down.”

As part of the grant extension, residents can receive $400 cash back for installing two or more qualifying energy upgrade improvements. The RePower Reward is available on a firstcome, first-served basis through Dec. 31, and can be used in addition to other Puget Sound Energy (PSE) or Cascade Natural Gas (CNG) incentives. Homeowners are encouraged to act quickly as there are a limited number of RePower Rewards available.

Additionally, residents can get a free PSE HomePrint Assessment provided by an independent PSE-qualified specialist. This in-home assessment gives the homeowner a better understanding of basic energy consumption, practical recommendations to make their home operate more efficiently, and includes on-site installation of free high-efficiency light bulbs.

RePower is a communitywide initiative that is funded in part by U.S. Department of Energy BetterBuildings grants through the American Recovery and Reinvestment Act (ARRA) and the State Energy Program (SEP). With these grants, Kitsap County and key partners have come together to implement RePower. To date, RePower has paid more than $675,000 in cash-back incentives to Kitsap County homeowners and helped create more than 50 new green construction jobs.

For more information, visit RePowerBainbridge.org, RePowerBremerton.org, RePowerKitsap.org or call 1.877.741.4340.

Day of Hope outreach provides medical, dental assistance

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

By Rodika Tollefson More than 1,000 people are expected to flow through Gateway Fellowship in Poulsbo on Oct. 19 — not for worship services but for a special outreach event called Operation Day of Hope.

Now in its fourth year, Day of Hope is a way for the congregation to extend a helping hand to people with a variety of needs, ranging from winter clothing and haircuts to legal assistance and groceries.

Local medical professionals are also part of the event, offering medical and dental clinics.

“The biggest need is probably the free dental. But we don’t have the dental facilities so it has to be simple dentistry,” said event coordinator Ruth Tangen.

Dr. Jennifer Thornton of the Poulsbo Dental Center, a Gateway Fellowship member who has coordinated the dental clinic since Day of Hope’s inception, said that last year the team saw nearly 180 people in five hours. This year, she expects around 250 patients, which would be full

Operation Day of Hope

Courtesy photo

If you’re interested in donating for the Day of Hope free dental clinic, contact Dr. Jennifer Thornton at Poulsbo Dental Center at (360) 7793633. For West Sound Free Clinic, contact co-director Carrie Bivens at (360) 9908366. For more information about Operation Day of Hope, call Gateway Fellowship at (360) 779-5515.

Day of Hope is on Oct. 19 from 10 a.m. to 2 p.m. The church is located at 18901 Eighth Ave. NE in Poulsbo.

Dr. Jennifer Thornton and other care providers will be working in the dental van donated for the Day of Hope by the Washington Oral Health Foundation. capacity.

“We try to serve as many as we can.

Many volunteers don’t even take a lunch

break,” she said. “It was packed last year.

We could have seen more people if we had more space.”

The dental clinic has been growing every year. The second year, Thornton arranged for the Washington Oral Health Foundation to donate the use of a mobile dental van for extractions. Last year, the clinic included screenings, X-rays and cleanings as well as extractions, and this year more space is being dedicated to it, increasing the capacity for patients.

For Thornton, the free clinic is a yearround project. Not only does she spend numerous hours organizing it but she also donates a lot of supplies. “It costs thousands of dollars to do it so I try to get as many donations as possible,” she said. “The Bible says we are blessed to be a blessing, so we want to use our resources to help others.”

Last year, Thornton had 30 volunteers and this year the number is expected at 50, including at least eight dentists and six dental hygienists. Most of the dental professionals are from Kitsap but she’s also had hygienists come from as far as Seattle.

“I was really impressed how organized it was and how many people they saw,” said Beverly Frye, a 17-year dental hygienist who’ll be volunteering at the clinic for the third year. “It’s jam-packed and people line up before opening.”

Frye said the goal is to do more preventive work, so the number of hygienists involved has been growing.

“There are not a lot of services for people ages 18 to 60 and are low-income,” she said.

“It’s such a powerful thing to be able to help your community and provide a service like this. The church is amazing to do it… It is an inspiration to see someone like Dr. Jenny so driven and so compassionate.”

A medical clinic coordinated by Dr. Jim Baker has been part of Day of Hope the past three years as well. This year, volunteers from the West Sound Free Clinic are coordinating the effort, which is similar to other mobile clinics West Sound does at several locations around the county. A retired ambulance serves as the exam room and volunteer physicians provide exams, schedule x-rays (provided by InHealth Imaging) and do simple lab tests (donated

by PacLab).

“This is our first time in North Kitsap and we’re really excited because we’d like to expand both to North Kitsap and South Kitsap,” said Carrie Bivens, a registered nurse and one of the founders of West Sound Free Clinic.

Bivens expects at least three physicians, five nurses and various support staff to come. “They do it because they love people and they want to be able to help out. We are also a Christian organization and this is our way of showing God’s love,” she said.

It’s the same reason the church started Day of Hope, according to Tangen. The outreach program was inspired by a similar effort called Touched Twice United. It’s been growing every year, and last fall 400 volunteers helped out the 1,000 guests with various needs. The guests come from as far as Gig Harbor and Mason County.

Local businesses like Central Market and Albertsons contribute donations, and professionals such as photographers and hairstylists donate their services for the day.

Some volunteers work year round to do things like collecting clothes and washing them.

“People are out all over the community looking for things that may be needed,” Tangen said. “But it’s a drop in the bucket — the most important part is to show that we care.”

Retiring military medical officer brings high-level expertise to Harrison Dr. Michael Anderson is the new chief medical officer at Harrison Medical Center.

Rodika Tollefson photo

citizens while experiencing life in the outback.

It was his next assignment that introduced the Andersons to Kitsap. He joined the initial faculty at the newly established Puget Sound Family Medicine Residency at the Bremerton Navy Hospital.

“During our tour here in Bremerton, we fell in love with the Kitsap Peninsula,” he said This is also where his career in executive medicine took off — during his second tour at the Navy hospital, he was promoted to captain and identified as a person with potential to be an executive (the equivalent of an administrator).

“As a physician, I can see 20 to 30 patients a day. As a hospital administrator, if I manage well and put together a system that supports 10 physicians by giving them the resources they need, my job goes to seeing 300 patients a day by my work,” Anderson said.

It’s not unlike his new job at Harrison, making sure physicians have the resources they need and overseeing the quality of patient care. In fact, Anderson notes that his work in the military was not much different than the work he’s doing as a civilian — the main difference is the lack of a uniform and a less distinct chain of command. There are also differences in some terminology and in the regulatory bodies, but ultimately, The Joint Commission accredits both military and private health care facilities (Anderson was part of the three-year Joint Commission

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survey just two weeks into his job at Harrison).

“The mission is the same, to deliver high quality of health care to our patients,” he said.

Anderson, who has a master’s degree in health administration, has had a major firsthand impact in that mission while serving in several capacities. After assuming command at the Naval Hospital Great Lakes in 2003, he was credited with championing a “transformational relationship” within the Department of Veterans Affairs that “established a new form of joint healthcare delivery within the federal government,” according to his official Navy biography. As the deputy medical officer to the Marine Corps later, he “established new clinical standards for garrison health care within the operational forces.”

One thing Anderson didn’t expect to do as a military doctor was to serve in an ambassadorship role — yet he did on several occasions. The one he especially enjoyed, while stationed at Camp H.M. Smith in Hawaii as the U.S. Pacific Command surgeon, was being asked by the crown princess of Thailand to assist the country’s military physicians with care of blast injuries. (His responsibility during the two-year assignment was to improve

health care for all military services throughout the Pacific.)

“They approached us because of our experience in Iraq and Afghanistan,” he said. “After teaching a very large group of Thai physicians, the crown princess was so pleased, she invited me to her palace for dinner,” he said, adding that he was accompanied to the dinner in his honor by the U.S. ambassador.

But it was his last post, as the medical officer and director of health services for the Marine Corps, that Anderson considers the highlight of his military medical officer career. He had a major influence in care provided on the frontlines, especially in Afghanistan.

“Our care during this conflict was so well-established, even with injuries beyond belief we had a 98 percent survivability rate, and for the most severely injured it took just 72 hours to get back on U.S. soil,” he said. “It’s been a tremendous opportunity for me to have oversight of that system and implement improvements so we have a 100 percent rate some day.”

His work at Harrison, though more low-key, will be just as important.

Anderson will play a major role in the transition occurring after the affiliation with Franciscan Health System.

“When you go into a health care system, you look for opportunities to share common services and one of those common services is quality,” he said.

There will also be changes in data collection, as Harrison switches to a new electronic health records system, EPIC, recently adopted by Franciscan.

Anderson’s final post was at the USMC headquarters, less than two miles from the Pentagon. He didn’t plan on retiring yet — until his wife saw the Harrison job posting and he was offered the job — but is glad this opportunity to transition came up.

After spending almost six years entirely in administration, Anderson said going back into a patient setting has been enjoyable. “I did miss it,” he said.

But he’s especially happy to be back in Kitsap, ready to set down roots at last.

“It feels good to be in Kitsap,” he said.

“It’s nice to have our last move.”

October 2013 Kitsap Peninsula Business Journal • KPBJ.com 27

By Rodika Tollefson Rear Adm. Michael Anderson has served all around the country and the world during his 34-year career with the Navy and Marine Corps, moving every three years on average. But when it came to retirement, it was the Kitsap Peninsula that he and his wife, Paula, wanted to call home.

In fact, it was a position with Harrison Medical Center that convinced Dr. Anderson to retire as the medical officer and health services director for the Marine Corps. Anderson, whose official retirement date will be Nov. 1, joined the Harrison staff on July 23 as the chief medical officer and vice president of quality — two separate but complementary roles. As the chief medical officer, he acts as the liaison between the hospital and the medical staff that includes outside providers who have privileges at the hospital. As the quality officer, his job is to help improve patient care and make sure they have the best outcomes, as well as to evaluate the providers’ history for quality indicators.

He is also applying for medical staff privileges at the hospital as a family physician, which would allow him to work directly with patients, including assisting with surgeries.

“Quite often as I evaluate quality of care, I have to get into professional discussions with my peers. If I’m not a member of the staff, the conversation would not be a collaboration,” he said.

Anderson grew up in San Diego, a Navy and Marine Corps town, with a father who was a lieutenant colonel in the Marines and a mother who was a nurse. So it’s not surprising that he had aspirations to be a Navy doctor since he was young. He started working in the medical field while in high school, as a certified nursing assistant for a nursing home.

After obtaining his medical degree from the Uniformed Services University of the Health Sciences, during his residency he had the opportunity to deploy as the general medical officer on a Marine ship to the Western Pacific.

“It was a blast,” he said.

His first official assignment as a family physician was just as exciting — at the remote Naval Communication Station in Exmouth, Western Australia. As a member of a 10-person medical staff including two physicians and two nurses, Anderson provided family services for 2,000 U.S.

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

Six carriers approved to sell individual insurance plans in Kitsap The Washington Health Benefit Exchange has finished the certification process for insurance carriers that will be able to sell individual insurance plans on the Washington Healthplanfinder exchange, starting Jan. 1. Individuals will be able enroll in plans starting Oct. 1, while finding out what kind of federal government subsidies they may qualify for.

In Kitsap County, six carriers were approved: BridgeSpan, Community Health Plan of Washington, Coordinated Care, Group Health Cooperative, LifeWise Health Plan of Washington and Premera Blue Cross. In total, eight carriers will be offering 38 health plans for families and individuals in the state through the exchange, which was testing its new system in September. Additionally, five carriers will sell “standalone pediatric dental plans” in

all counties: Delta Dental of Washington, Kaiser Foundation Plan of the Northwest, LifeWise, Premera Blue Cross and Dental Health Services. There are also eight other multi-state plans, which must be certified by the U.S. Office of Personnel Management before they can be offered through Washington Healthplanfinder.

The plans have three levels, with Gold covering 80 percent of “essential health benefits” costs, Silver paying for 70 percent and Bronze for 60 percent. The premiums are calculated based on age in three categories: under 29, under 40 and under 60. All the plans cap out-of-pocket costs (deductibles and co-payments) at $6,325 for an individual and $12,700 for a family.

The exchange will also sell so-called catastrophic plans, which have lower monthly premiums, only for individuals

under age 30.

Below is a summary of the Kitsap plans: BridgeSpan: Premiums range from $208.12 bronze level under age 29 to $737.04 gold level age 60.

Community Health Plans: All three levels, range is $240.50 to $859.06.

Group Health: All three levels, ranging $186.15 to $744.37.

LifeWise: Three plans each at bronze and silver and two plans at gold level, ranging $198.02 to $758.42.

Premera: Three plans each at bronze and silver and two plans at gold, ranging $207.86 to $758.42.

Based on the Affordable Care Act, the essential health benefits that all plans in the individual and small group markets must provide fall into 10 categories: ambulatory services, emergency, hospitalization,

maternity and newborn care, mental health and substance abuse (including behavioral health), prescription drugs, rehabilitation, labs, preventive and wellness, and pediatric (including dental and vision).

Customers can receive assistance and enroll online as well as through registered brokers, toll-free at 1-855-WA-FINDER and in person through local community organizations across the state (locally, inperson navigators will be available at Peninsula Community Health Services in Poulsbo, Port Orchard and Bremerton; Harrison Medical Center in Silverdale and Bremerton; Kitsap Mental Health; Kitsap Public Health District; Kitsap Community Resources in Bremerton and Port Orchard; and Area Agency on Aging at the Givens Center in Port Orchard. For more information: www.wahealthplanfinder.org.

MEMBERS

“He does a remarkably good job, and the patients loved him,” Keyes said.

The model of concierge medicine — Keyes prefers the lesselite sounding term “direct primary care” — originated in Seattle in the — Dr. Blain Crandell, Member Plus 1990s. Before opening his Bainbridge clinic, Keyes spent a Family Health Care year working in such a program at Virginia Mason Medical Center.

“They were doing it at a higher explained Keyes, who also reserves one cost, and I thought there was a niche for afternoon a week to make house calls. “It’s a doing it in a more affordable way for more little higher level of service.” people,” he said.

They can even help patients who aren’t At Member Plus Family Health Care, able to come in to the clinic, such as students annual memberships range from $120 to away at college who are covered under a $780 and can be paid for in monthly family membership. “We’re in the process of installments of $10 to $65. Membership restructuring our fee schedule so it will be provides enhanced access, but the clinic more affordable for younger people,” he said. bills patients’ insurance for the cost of their The clinic offers a College Guardian care — office visits, procedures, etc. program for $15 a month, and members Virginia Mason, which has a clinic on can call any time to consult about a medical Bainbridge Island, pioneered a concierge concern. It may be an urgent matter that medicine program called the Lewis and requires a trip to the emergency room, or it John Dare Center. Membership is much might be treated simply with a doctor’s more expensive: $750 quarterly for an advice dispensed in a phone call. individual or $1,250 for a couple, and For example, Keyes said one of his members may add children ages 18-25 for patients has a daughter in Ohio who could $500 per child. The Dare Center touts the have avoided an unnecessary ER visit. benefit of access to a large staff of “She wasn’t part of our practice, and she experienced doctors and top-flight incurred a huge bill for what we probably specialists at a renowned medical center; its could have solved over the phone,” he said. website notes the ability to “integrate you The two Member Plus doctors had into Virginia Mason Hospital and Clinic known each other for several years before Specialists.”

Crandell left Bainbridge Island in 2012 to Unlike a private practice, a center such spend a year at a family practice in rural as Virginia Mason is restricted from New Zealand. bundling payment for medical services into “I was interested in experiencing its membership plan. medical care outside the U.S., and I wanted That’s a different model offered by to give my family an experience with life private practices such as Seattle Premier and culture outside the U.S.,” he said.

Health, which markets itself as a concierge Crandell had filled in at the Bainbridge medicine clinic that charges a $2,500 clinic when Keyes was on vacation, so when annual membership fee. That fee, though, Keyes decided his growing practice needed a covers the cost of primary-care physician second physician, he knew Crandell would services such as an annual physical exam be a good fit and called him in New Zealand.

and other preventive care, urgent care for colds and common illnesses, and minor inoffice procedures such as Pap smears and skin biopsies. Patients still need an insurance plan that covers major medical costs not included in the membership.

Keyes said his clinic’s direct primary care plan is a model that could be viable in places other than an affluent community such as Bainbridge Island.

“It can work well anywhere,” he said. “A lot of (patients) just perceive the need to have better access to a physician.”

The membership model in various forms is increasingly popular among physicians and patients. The American Academy of Private Physicians and other health care industry groups estimate there are 2,500 to as many as 5,000 doctors nationwide who have direct primary care practices, charging membership fees of $600 to several thousand dollars.

With Crandell coming on as a partner, Keyes changed the name of his practice to Member Plus and expanded the clinic into a separate space from the main office in the complex of buildings at 123 Bjune Drive near Eagle Harbor. Crandell is currently there two days a week, and works part time at the Virginia Mason clinic in Federal Way. “We’re hoping to be busy enough to have Blain come on full-time,” Keyes said, adding that he’d like to add a nurse practitioner or a physician’s assistant to the clinic staff within the next year. “We’d like to bring on someone specifically for women’s health care.”

Being accessible to patients 24/7 may seem daunting, but Crandell said patients “respect our time as doctors,” and aren’t likely to call at odd hours unless it’s warranted.

“It hasn’t been that much of a drain to take calls,” Keyes said. “It becomes as if you’re never on call. It’s part of the service, what we consider to be our responsibility to our patients.”

from page 1 the clinic, and overall a closer personal relationship with the doctors and clinic staff who actively communicate with patients to make sure they’re following a preventive health care plan.

Crandell said the biggest appeal of the Member Plus model — sometimes referred to as “concierge medicine” — is the opportunity for more interaction with patients. The membership fees make it possible for the doctors to see fewer patients and devote more time to them.

“Honestly, it’s about the time … the fact I don’t feel so pressured to shuffle patients through the door,” he said.

Where a traditional family practice has 1,400 to 1,600 patients per doctor, Crandell said Keyes tries to keep that between 600 and 800 at Member Plus. The practice model that he’s developed “is about getting to know his patients better, and take better care of them.”

A recent example was Crandell coming in to the clinic over the Labor Day holiday weekend to treat a patient who had a skin infection. Often the only option for someone in that situation would be an expensive emergency room visit.

But for a Member Plus patient, “As far as insurance is concerned, it’s billed as a routine office visit,” Crandell said.

The clinic’s membership plan, which also includes a secure portal patients can use for online access to their medical records and other health care information, is not a replacement for health insurance.

However, Keyes said the enhanced access that members pay for helps ensure better outcomes for patients and may even result in lower overall health care costs over the long term if patients need fewer specialist visits and hospital stays.

“The concept is we would be able to see everybody on the day they need to be seen,”

“Honestly, it’s about the time ... the fact I don’t feel so pressured to shuffle patients through the door.”

Pet therapy can help with healing, recovery Left: Poncho, a friendly golden retriever, is a favorite visitor for Darrell Rice and other residents when trainer Kari MacKenzie brings him to the Martha & Mary long-term care center in Poulsbo.

Photo courtesy Martha & Mary

people there who’ve become like my second set of grandparents,” she said. “It does so much good for the residents who can’t leave the facility. It opens all these doors for them to talk and to connect with the dog.”

Helping the sick heal Various studies have shown numerous benefits of pet therapy, both psychological and physiological. The benefits range from decreased risk of cardiovascular disease to decrease in stress and pain levels.

At Harrison Medical Center, pet therapy is part of the complementary therapies program. “It’s about treating the whole person — body, mind and spirit. It’s a great evidence-based practice,” said Tiffany Leveille, complementary therapies manager. “If you love dogs, it can be highly therapeutic. The feedback from our patients and our staff for the past six years

reinforces how important this program is.”

Harrison has five volunteer dog handlers and eight “teams” (some handlers own more than one dog). The teams see more than 400 patients in a typical year.

“We’re not about quantity but quality, and there’s no time limit to a visit because we want to meet people where they are,” Leveille said.

They have to be certified as pet therapy teams, and the hospital prefers to work with organizations that require regular recertification.

“The recertification makes sure we’re maintaining their skills. It’s important to continue getting the dogs into new situations,” said Pam Selz, who was the first pet therapy volunteer at Harrison and is a certified trainer with Seattle-based Project K-9.

Below: A young Great Dane named Levi and his handler, Pam Selz, make their first official visit with a Harrison Medical Center patient in September. Selz, who works with several dogs, has been a volunteer with the hospital's pet therapy program since its inception about six years ago.

Rodika Tollefson photo

Selz, who works as a pathologist, has three certified dogs (she lost a fourth one earlier this year). The youngest, a 9-monthold Great Dane named Levi, has been in training and made his first official patient visit at the hospital in September. Magnum, another Great Dane she started with in December 2007, is now semi-retired.

“He gets fan mail from patients,” Leveille said of Magnum.

The teams come in on a schedule and get assigned to units by staff before starting their rounds. They visit both patients and staff and sometimes Selz will specifically visit staff offices.

“Working in a health care setting is stressful. Even seeing the dog from a distance can help a person’s day,” she said.

Pet therapy, page 31

October 2013 Kitsap Peninsula Business Journal • KPBJ.com 29

By Rodika Tollefson Darrell Rice loves dogs and has always owned one. But since living at Martha & Mary’s long-term care facility in Poulsbo for the past five years, he’s missed having a pet around.

That’s why Tuesdays are special. He gets regular visits from Poncho, a golden retriever owned by volunteer Kari MacKenzie.

“Poncho rubs me the right way all the time,” Rice said. “He’s so kind and an easy dog to be around and enjoys being with people.”

His wife, Verna, who died two years ago, was also quite fond of Poncho, even requesting special visits when she was feeling very ill.

“I miss my wife a lot,” Rice said.

“Poncho fills a little bit of that gap. All the dogs do.”

While Poncho is by far the favorite — not just for Rice but for many other Martha & Mary residents — Rice enjoys visits from many other dogs on a regular basis. The facility has about 60 volunteers as part of its pet therapy program. All the pets are dogs, save for Muffin, a miniature horse.

Some of the volunteers are staff members who bring their pets — and often, kids — to visit with residents during their off-hours. Others are community members like MacKenzie, whose dogs are certified for pet therapy.

But anyone with a well-behaved dog can participate in the program after a screening and orientation process, according to Tracie Walthall, Martha & Mary director of resident life services. The pets (and their owners) simply drop in during visiting hours.

“Pets are a big part of the healing process. Animals can bring joy and purpose to the residents’ life,” Walthall said.

Karen Martinez is one of those residents. At Martha & Mary for 14 years, she’s had to place her own dog into her brother’s care. She looks forward to all the dogs’ visits, but especially to Poncho’s. She even has the golden retriever’s photo, which was part of Christmas cards MacKenzie gave residents a couple years ago. Martinez keeps dog cookies on hand and she’ll sometimes walk Poncho around the halls.

“It cheers you up since you can’t have your own around,” Martinez said. “It lets everyone feel like they’re at home; it’s fantastic.”

Poncho, who’s three and a half years old, and MacKenzie are certified through Pet Partners. They’ve been coming to Martha & Mary for more than two years.

“I know Poncho really enjoys it,” MacKenzie said. “He makes a beeline for the rooms that have treats and they’ll make him do something for it. It breaks (the residents’) day up a bit.”

But the visits are a treat not only for Poncho. MacKenzie often chats with the residents too and has created many new relationships.

“It’s a huge morale booster for them and it puts a new perspective on my day. I’ve met

• A video with this story is on our website: kpbj.com

A doctor’s approach to balancing career, leadership and family

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

By Rodika Tollefson Dr. Melissa Lo, an obstetrician/ gynecologist at The Doctors Clinic, recently became president-elect of the Kitsap County Medical Society, which also placed her in the role of president for the society’s foundation. As the leader of the foundation, Lo will steer the charitable arm of KCMS as it continues to support various programs and efforts related to medicine and fitness.

The new responsibilities will add to an already busy schedule for the mother of three who regularly works on call to deliver babies, but Lo is ready. Over her 14-year career as an OB-GYN, she has found a way to balance her work and her family, even if the lifestyle of an obstetrician can be, as she describes it, arduous.

“All the OB-GYNs in town are trying to balance their own lives and careers because all have families. It’s something we’ve all done through the years,” she said.

Lo wanted to be in the medical field since she was a child. She likes the mix that comes as part of the work as an obstetrician and gynecologist — she gets to do both surgeries and routine patient visits at the office.

Rodika Tollefson photo

Dr. Melissa Lo is an obstetrician/gynecologist with The Doctors Clinic in Silverdale, and a board member of the Kitsap County Medical Society.

“There is no shortage of intellectual stimulation. It’s never boring,” she said.

“Everybody is different and things are rarely cut and dried. It takes a lot of thinking on the feet, especially with obstetrics — things can go wrong and we need to be prepared for it.”

She has worked at The Doctors Clinic Women’s and Children’s Center in Silverdale since 2001 and is one of four OBGYNs there.

One of the reasons she selected the

practice was the proximity to Harrison Medical Center’s labor and delivery unit, which is located in the same complex and is a quick walk away. But she was also attracted by the idea of being closer to family (she has family in Tacoma) and living in a smaller community.

Lo is in her third year as a board member with Kitsap County Medical Society, a professional organization representing more than 400 physicians. She will take the reins as president next June.

The KCMS mission is to promote the art and science of medicine and the health and wellbeing of the public and patients, and a lot of the organization’s activities include advocacy. As one example, KCMS has been involved in Harrison’s transition to its affiliation with Franciscan Health System.

“The focus of the advocacy is to allow individual physicians to have a voice,” she said.

KCMS may be best known to the general public for its annual Fire & Ice fundraiser, which features a new theme each year. The pavilion at the Kitsap County Fairgrounds is transformed accordingly for the occasion, and the physicians have been known to do things such as dressing like celebrities and singing on stage. This year’s event, which took place Sept. 21, was themed after th e movie “A Night at the Museum.”

Funds raised at the event go toward nursing scholarships and various causes —

this year they include childhood obesity prevention and Kitsap Mental Health’s foster children support program.

Additionally, the KCMS foundation raises money for nursing scholarships and a fitness and nutrition program at the Silverdale Haselwood YMCA. The foundation also sponsors an annual fun run at the fairgrounds every spring.

Lo said being on the KCMS board has turned out to be a great experience. “I’ve met so many more people in the medical community,” she said.

As KCMS president-elect and foundation president, she is ready to do a little more juggling to balance her family life, too. Her husband, Poulsbo Police Chief Al Townsend, has an equally busy schedule and their three children, ages 10, 13 and 17, are in various sports.

“We spend a lot of time on the soccer field and on the football field,” Lo said. “I also feel it’s very important to spend time together at home and I’m a big proponent of family dinners.”

Lo grew up in New York, away from mountains and water, and she’s enjoyed raising a family in the Northwest. The family takes advantage of the many outdoor possibilities — they go together skiing, kayaking and paddleboarding.

“You can’t really beat this area for the natural beauty. I tell my kids how lucky they are,” she said.

Tim Kelly photo

Visitors tour an operating room for joint replacement surgeries during a recent open house at the newly opened Orthopaedic Center at Harrison in Silverdale.

New Harrison hospital offers health talk series on joint replacement, orthopaedic procedures The Orthopaedic Center at Harrison is hosting an orthopaedic health talk series entitled “Is it time?” The free seminars help attendees learn more about joint replacement and spinal surgery from surgeons, who will talk about treatment options and detail what to expect from both the surgery and the recovery process.

All health talks will be hosted at the newly opened Orthopaedic Center at

Harrison in Silverdale, 1800 NW Myhre Road. The health talks will be held on the following dates: Joint replacement Nov. 13, 6-7 pm Spinal surgery Oct. 23, 6-7 pm, and Dec. 11, 6-7 pm Call 866-844-WELL or visit harrisonmedical.org/ortho-health-talks for more information.

Local medical professionals make a difference overseas

By Rodika Tollefson Some people spend vacations traveling, others perhaps prefer to catch up on home remodeling or other projects. For many Kitsap medical providers, however, vacation time is an extension of their professional lives — helping others, only not as close to home.

Whether they are physicians, surgeons, dentists, nurses or medical technicians, these local professionals choose to spend their time doing pro bono medical work overseas.

Often times they work with orphan kids or poor families, and usually they answer a call to help in areas that have no access to their specialty or medical care altogether.

“I think all of us in this profession have an underlying sense of obligation to do what we can within our pool of resources to take care of sick and injured people. It’s built into our genetics as doctors because we feel privileged to be in this profession,” said Dr. Jeffrey Bernstein, vascular surgeon at The Doctors Clinic and Harrison Medical Center chief of surgery.

Bernstein spent two weeks this spring at the Landstuhl Medical Center in Germany to provide his expertise to soldiers returning from Afghanistan. In addition to performing trauma surgeries, making rounds and giving consultations, he gave a lecture about blunt aortic injuries.

“I have a busy practice and I thought this was a good opportunity to help our soldiers and a good professional opportunity,” said Bernstein, who’s been practicing for 25 years.

He said he was surprised to see so much trauma among soldiers from the Middle East since domestically, the news reports have tapered off. The main difference between his experience there and at his practice at the Salmon Medical Center — and the best part of the trip — was the level of collaboration with other physicians and medical staff, he said.

“I was very impressed by their compassion and their personal touch in working with the patients,” he said.

Dr. Bernie Brown of North Kitsap Pediatrics has been donating his time for years at a public health clinic in a village in Baja, Mexico. Clinics in Mexico are run by the government and often are staffed only by nurses. Some have physicians who are new medical school graduates.

Brown, who has property in Baja, has been traveling to the area at least six times a year since 1996, spending a day at the clinic.

Courtesy photo

Tanya Spoon examines children during one of her visits to Sierra Leone with Children of the Nations.

Most times, he sees children with asthma and other pulmonary conditions. When he first started at the clinic, there was a lack of asthma treatment in Mexico so Brown provided medication and nebulators.

For the past four years he’s been buying staple foods instead, along with gifts for 7580 kids at Christmas, Easter and Thanksgiving. Before going on the trips, he spends $500 or more at Costco on the foods, then makes 20 to 25 family bundles.

When he arrives in Mexico, he drives around with the nurses to give the food to poor families. He’s also received donations for the deliveries from the Kitsap County Medical Society Foundation and has recruited others to help, including board member Dr. Glen Carlson and his family.

“I’m a Christian and I feel an obligation to help my fellow men,” Brown said. “But it’s an obligation I do joyfully. …I take my time, money and expertise and I concentrate it on one area where I can make significant impact.”

The best part is the gratification from making that impact, said Brown, who’s been in practice in Kitsap for 40 years. He recommends that people who want to support that kind of work make a donation to the medical society’s foundation (they can specify the funds to go to foreign missions).

Another Kitsap-based organization that supports medical missions is Children of the Nations. Headquartered in Silverdale, the nonprofit serves orphaned and destitute children in several African countries as well as Haiti and Dominican Republic. Local medical professionals from a variety of specialties are among the volunteers.

Tanya Spoon, a registered nurse with a family practice in Silverdale, is a medical liaison for Africa and normally goes to Sierra Leone for three to four weeks in the summer with her husband, Dave, who works for the nonprofit full time. Starting this December, however, she plans to spend three months there.

“It’s something we do as a couple. It’s where we feel we need to be,” she said.

The village where Spoon works is about 200 miles into the jungle and has no running water or power. While there, she oversees nurses, provides physical exams and does outreach. “The kids we take care of are like our family. We get to build relationships in the community where we work,” she said. “The kids are the best part.”

Dr. Dale Holdren of Kitsap Eye Physicians has traveled to the Dominican Republican four times and said he does it for the same reason he went into medicine.

“I felt a calling personally, professionally and spiritually,” he said.

Holdren’s wife, Rose, is a dentist and the couple heard about the organization at church about 15 years ago. “They needed an eye doctor and a dentist. We looked at each other and said, ‘We’re being called,’” he said.

His most recent trip was last November.

The biggest need of his skills is for eye surgery, especially for cataracts, but he also does eye exams and other things.

Holdren gives up seven to nine days of his vacation time to serve in the villages, where there is a big shortage of specialists.

“The best part is seeing the huge impact it has on the people there,” he said. “It’s also a different atmosphere, more relaxing — we just practice medicine.”

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October 2013 Kitsap Peninsula Business Journal • KPBJ.com 31

from page 29 Being in a hospital environment can be challenging both for the dog and the handler.

That’s why the teams are evaluated to make sure they’re a good fit for the hospital and would feel comfortable being there.

“Dogs do smell sickness and death.

They pick up a lot of smells and it can be confusing for them,” Selz said.

The volunteers go through in-depth clinical training after they become part of the program, and they participate in ongoing training — including hospitalwide staff events such as safety day.

The certification process, done through agencies such as Pet Partners and Project K-9, includes both classroom instruction and testing. But first, the dogs have to go through obedience training. Part of the certification process is about evaluating the dog’s personality and ability to handle new situations and people.

“Once you get past the obedience, it’s socializing, socializing, socializing,” Selz said. “Everywhere I go with Levi, he’s exposed to something so it’s always work.”

Harrison also does annual competency testing for its complementary therapy volunteers. “For me, it’s not much different than being a staff member. They’re a huge part of our team,” Leveille said.

Selz, who also volunteers with her dogs at the library and at Martha & Mary, said it was never her plan to do pet therapy. But she noticed that Magnum was very social and attracted attention everywhere, and “it just sort of happened.”

“For me, it filled a niche for the caregiver side of me,” said Selz, who previously worked as a medical examiner for King County.

She said she’s built many deep connections through this work — often by talking with families waiting in the hospital lobby. It can be emotionally challenging, she acknowledges, which is why the teams are thoroughly prescreened.

“Even if we’re volunteers, we’re caregivers and we soak up the grief and sadness others are feeling,” she said. “If you do this work, those emotions will affect you. And the dogs can soak that up too. We teach the teams to take care of themselves and their dogs.”

The best part, she said, is seeing people smile.

“That’s huge, to know that for that split second, whatever else is going on, they’ve had a rush of happy. To make people happy is a gift. A gift for me.”

PET THERAPY

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

Residents enjoy hands-on therapy of digging in the dirt

By Tim Kelly, Editor Cleanliness is essential in a medical care facility, but patients enjoy getting their hands dirty at the Martha & Mary Health and Rehab Center.

They get the chance to do that — in a therapeutic way — with Joann Komedal, a volunteer who has returned to her roots.

When she went back to college later in life to get an associate’s degree in horticulture therapy at Edmonds Community College, she needed a place to put her knowledge and training to good use. She found it in Poulsbo.

“Martha & Mary allowed me to come here to do my practicum,” said Komedal, who wound up going to work at the senior residential care facility and starting a horticulture therapy program for the patients there.

She left Martha & Mary about 10 years ago to start her own plants business, but returned two years ago as a volunteer after she retired. She wasn’t around when a greenhouse was built to enhance the horticulture therapy program she created, but nowadays Komedal can often be found there supervising residents as they tend to an array of potted plants.

She also helps residents who are able to go outdoors take care of the 18 wheelchairaccessible raised garden boxes that produced a bountiful harvest of vegetables this summer.

“The residents love getting their hands in the soil,” she said.

Komedal explains how being a gardener is different from being a therapist.

“In gardening you're working for the benefit of the plant,” she said. “In horticulture therapy it's the opposite; you're using the plant for the benefit of the resident.”

The benefits are getting patients

Tim Kelly photo

A greenhouse at the Martha & Mary Health and Rehab Center in Poulsbo is used for the hoticulture therapy program run by volunteer Joann Komedal, left, and Tracie Walthall, resident life services director. Komedal started the program when she worked at the care center more than 10 years ago, and she returned as a volunteer at Martha & Mary after she retired two years ago. outdoors, not merely for some fresh air, but to engage in a useful, hands-on activity.

“It's purposeful,” said Tracie Walthall, resident life services director at the 190-bed facility. The residents enjoy “digging in the dirt and seeing things grow.”

She said some folks in the horticulture program entered vegetables from their garden boxes in the Kitsap County Fair.

Other fair entries came from the “victory garden” that’s cultivated outside the care unit for Alzheimer’s patients, and some of the summer’s crop was used to make salsa

and other dishes in a cooking program that residents assist with.

“We did pretty well. It was a good growing season,” Walthall said.

The greenhouse on the grounds is a well-utilized activity space for the Martha & Mary gardeners, and for any resident’s family and friends who drop by.

“It’s a destination place for when people come to visit,” Komedal said.

All the plants in the greenhouse are potted by residents, and Walthall said they often take cuttings to give plants as

Franciscan Health System launches virtual urgent care PRNewswire TACOMA — Franciscan Health System has introduced Franciscan Virtual Urgent Care, a healthcare service that allows anyone in the system’s service area to receive care for a wide range of common conditions 24/7 via phone or video chat on smartphone, tablet or PC. Tacoma-based Franciscan, which is implementing an affiliation with Bremertonbased Harrison Medical Center, is one of the first hospital systems in the U.S. to provide virtual urgent care to the public.

Utilizing the service will cost $35 per visit, which is less than the cost of an average office visit and a fraction of the average cost of an emergency room visit.

"We tested the Franciscan Virtual Urgent Care with our own employees before expanding it to the public, so we

know this model of care delivery works," said Dr. Cliff Robertson, Franciscan’s chief operating officer. "As our health care system evolves, patients have more control over their health care dollars. We are innovating to provide care more efficiently, conveniently and at a lower cost.

Franciscan Virtual Urgent Care gives patients more choices for how and when they access their medical care."

For the last four years, Franciscan has partnered with Seattle-based Carena to provide virtual urgent care to Franciscan employees as part of their health benefits package. In July 2012, Franciscan expanded the service to provide after-hours care to patients of its primary care clinics. Now Franciscan is again partnering with Carena to roll out Virtual Urgent Care to the public, with the potential to serve thousand

of patients in the South Puget Sound area.

Patients using the virtual system will have access to board-certified doctors and nurse practitioners for after-hours medical diagnosis, treatment planning and prescriptions, if appropriate. Since Virtual Urgent Care is not yet covered by insurance, Franciscan is keeping the price low so that the service is affordable and accessible to the public as part of its mission to create healthier communities.

"Virtual care is a complement, not a substitute, to the in-person services we already provide to patients," Robertson said. "It's another way for us to be there for patients who need medical care right now."

For more information on Franciscan Virtual Urgent Care, visit www.franciscancarenow.org.

• Source: Franciscan Health System

welcoming gifts to newly admitted residents.

“There’s hands-on potting and propagation going on at all times,” she said.

“The residents also plant the hanging baskets on our veranda.”

They’ll soon be busy cutting those back and repotting them for keeping in the greenhouse through the winter, Komedal said.

Flowers are part of the horticulture therapy program as well. Extra flowers donated from Central Market in Poulsbo are used by residents to make centerpieces for tables in the dining room, and floral displays for reception areas and patients' rooms.

Komedal recently joined Martha & Mary CEO Chad Solvie in presenting a framed floral paper wreath to Central Market staff on behalf of residents in appreciation for the store’s donations over the past 10 years.

Walthall said volunteers like Komedal, a retiree who’s been active in the county’s Master Gardener program and comes twice a week from her home in Seabeck, are an invaluable resource.

“She’s just a wonderful person; she loves the residents, and she loves what gardening does for them,” Walthall said. “She’s gotten back involved and we’re very blessed for that.”

Komedal said horticulture therapy can “help enhance their sense of well-being.”

For patients recovering from a stroke or other degenerative disease, “it's a way to get engaged again in life.”

Their efforts create a pleasant environment at the care center that residents, staff and visitors enjoy.

“Flowers and gardening give them a very special voice in their home at Martha & Mary,” Komedal said.

Auction event set in Port Gamble for group that helps breast cancer patients The 11th annual Kathleen Sutton Inspirational Fund auction will be held Oct. 6 in Port Gamble at the Hood Canal Vista Pavilion.

The Kingston-based nonprofit provides transportation assistance for women receiving treatment for breast cancer and other cancers.

The event will run from 4-7 p.m., with a preview at 3:30 of items in the live and silent auctions. Hors d’oeuvres, desserts and beverages will be served, and the $15 admission includes a complimentary glass of wine or beer.

For more information, contact Valerie Rotmark at vrotmark@msn.com or 360697-4176, or Vivi-Ann Parnell at viviannparnell@comcast.net or 360-6203259. Website: kathleensutton.org.

How to manage the impacts of workplace gossip So how can we manage the impacts of workplace gossip on our organizations? You can’t forbid employees from discussing things with each other. The National Labor Relations Board (NLRB) recognizes employees’ rights to talk together about their working conditions, which is a protected concerted activity. So, for example, if employees are gossiping about how much a certain employee is paid, or that a male supervisor seems to show undue favoritism to a certain female employee, this could be their right to discuss their working conditions. But this doesn’t mean you can’t have a positive workplace where information is shared appropriately, rumors are dispelled and gossip is contained. Here are some tips you can utilize in your workplace.

Have a company value statement about communication, and walk the talk. Tell your employees what is acceptable and appropriate information sharing and model that yourself. Let them know that you won’t tolerate the spread of malicious or harmful gossip and take immediate action when that happens. Don’t seek out gossip as a means of finding out for yourself what’s happening in the organization. If you do that, you send the message that gossipers have real value as information sharers.

Provide access to information and share as openly as you can. Remember that

saying, “when in doubt, make it up.”

People, especially in these uncertain times, want to know information about the company, its finances, their jobs, their departments, co-workers, sales, strategies, plans, etc. If the information doesn’t flow their way, they’ll seek it out anyway they can. Information is passed from person to person, and soon rumors are started. Facts dispel rumors, so real information sharing helps to end their spread.

Gossip can be the means for employees to build connections between themselves, to feel like they are part of the team, and to feel like they have value. It may be all built on negativity, and at the expense of someone else, but nevertheless, it can be stimulating and exciting and increase the sense of belonging for those who are participating. A company can help mitigate this by providing positive means for employees to build connections and strong teams. There are many team-building exercises you can utilize, company social events, and even casual fun events that pull the group together.

Lastly, as a leader in your organization, be accessible. All of us like to say we have an “open door” policy, but not every employee is comfortable popping into the boss’s office and taking a chair to chat a bit. Make a conscious effort to be accessible to

• 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.

CITY MANAGER

who maintains his happy-face facade with the public — would consider getting rid of the city's police department, and not consult the chief or the City Council about such a move that would have a major impact on the entire community. "When he continued to involve himself in police business without ever notifying me, consulting with me, or asking for an opinion, I had no ability to trust him," Townsend wrote.

Before the police chief's departure, Port Orchard lost another competent official when James Weaver resigned as head of the Department of Community Development and took a job on Bainbridge Island.

Weaver said having a city manager "provides continuity and professionalism that a small town, any small town, can benefit from."

One important benefit highlighted by

backers of Prop. 1 is retaining the best public employees. But in Townsend's view, the city risks further loss of capable people due to the current mayor's obstinate approach.

"If Mayor Matthes doesn’t make significant changes in the way he leads the city, he will continue to lose quality staff and leaders," the departing police chief wrote.

"The departure of tenured professionals may not affect the city so much one at a time, but if you consider over time the amount of experience, technical skills and professionalism that has left this city unnecessarily, it’s quite disturbing."

If voters take a close look at the mayor's record in office so far, they should indeed find it disturbing enough to pass Prop. 1, which will end amateur hour at City Hall and bring in a professional to manage the city's operation.

from page 38 "was based upon his dislike for Sean and not about the best decision for the city."

What's best for the city is what a professional manager would focus on, not on appeasing enough voters to win an election.

"The position of mayor is unfortunately one of popularity, rather than professional experience," Townsend noted in his letter.

However, he added that "I have worked with other mayors in the city that had a lack of knowledge of such things as police department operations, but they trusted the decision making of the professionals that were hired to manage and lead those departments."

It's especially troubling that a mayor —

everyone in the organization. Become a trusted listener, not just a one-way information source. Dispelling rumors and quelling gossip is a lot easier to do when employees feel free to ask for clarification or facts from someone who knows what’s going on.

I shop at a business owned by a Rotarian, and he has Rotary’s Four-Way Test prominently displayed for all of his customers and employees to see. It’s clear he holds himself, his employees, and his business accountable to it. If we all did that in our businesses and as employees, we’d go a long way to stopping this problem. “Is it the truth? Is it fair to all concerned? Will it build goodwill and better friendships? Will it be beneficial to all concerned?”

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October 2013 Kitsap Peninsula Business Journal • KPBJ.com 33

By Julie Tappero Is gossip wreaking havoc in your workplace? Or, have you found that gossip is an information channel and morale builder your team utilizes?

What is gossip?

One dictionary defines it as “information about the behavior and personal lives of other people.” And while we’re talking about gossip, we probably want to include rumors as well. Rumors are defined as “information or a story that is passed from person to person but has not been proven to be true.” Seems that at times they’re basically one and the same.

Why does gossip take hold and run rampant in an organization? We can start with the fact that we are social creatures with curious minds. We are a society built on information and we like to be “in the know.” And, as they say, “knowledge is power.” So employees may gossip or spread rumors when information itself is not out in the open or shared in abundance.

As leaders and managers in our organizations, we must ask ourselves what gossip and rumors cost the business, how we contribute to this culture, and what we can do to improve it.

To look at the cost to the organization, I have an example from my own company: At one of our manufacturing clients, a rumor spread that a number of our temporary employees had organized to create a side business making a drug-based concoction.

The rumor took on a life of its own, causing disruption and distraction. Our client asked that all of our temporary employees be pulled from the job and drug-tested. They were, and their tests were all negative, and the rumor was proved false. Our client returned them to the job and paid our employees for their lost wages — but, unfortunately, the client lost a couple days of productivity as a result. All because someone started a rumor! And this doesn’t take into account how demoralizing this was for the employees on the team who were falsely accused, and the impact this has had on that team going forward.

2014 Mazda 6: All-new sedan not your typical family car

By Lary Coppola With a retooled powertrain, more standard features, and a striking new design, the 2014 Mazda 6 is a worthy alternative to the plethora of boring, look alike, family sedans. Everything from bold exterior lines inspired by Mazda’s Shinari concept car, to the powertrain, to the manufacturing process, are all-new.

The front-wheel drive Mazda6 utilizes Mazda’s Skyactive technology — a collection of technologies and weight reduction strategies that debuted on the CX5 crossover. The old V6 is history, replaced with a new 2.5-liter inline-4 providing 184 horses and 185 pound-feet of torque. A new injection system and race-inspired exhaust manifold reduce emissions while delivering more power and torque than the previous powerplant. Additional changes include fully electric steering and a retooled suspension, resulting in a better ride, better handling and more braking stability.

Model Lineup: The 2014 Mazda 6 comes in three trims levels: Sport, Touring and Grand Touring. All come with the same 2.5-liter engine; all but Sport come standard with a 6-speed automatic.

The Mazda6 Sport comes standard with the 6-speed manual, A/C, cloth upholstery, manual six-way adjustable driver’s seat,

leather-wrapped tilt/telescoping steering wheel, steering-wheel mounted controls, power door locks/windows/mirrors, remote keyless entry, pushbutton start, cruise, trip computer, 6-speaker audio with CD player, auxiliary jack, USB port, 60/40 split folding rear seat, USB port, 17-inch alloy wheels. When equipped with the 6speed automatic, the Sport also features Bluetooth connectivity, HD radio, a 5.8inch color touchscreen display and a rearview camera.

Mazda6 Touring adds dual-zone automatic climate control, 6-way power driver’s seat, leatherette upholstery, center console sliding armrest, blind spot monitoring with cross-traffic alert and 19inch alloy wheels. The optional Touring Technology package includes navigation, a Bose 11-speaker audio System, Smart City Brake Support (SCBS), automatic headlights, rain-sensing wipers, autodimming rearview mirror, auto-dimming driver’s side mirror and heated side mirrors.

The Grand Touring version includes the Touring Technology package plus leather upholstery, heated front seats, 8-way power driver’s seat with power lumbar and memory function, steering-wheel mounted paddle shifters, satellite radio capability, a power sunroof, bi-xenon HID headlights,

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

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fog lamps, LED daytime running lamps, adaptive front-lighting system, alarm, rear lip spoiler and unique paint on the alloy wheels.

Safety features on all models include two-stage frontimpact airbags, front side-impact airbags, front and rear side air curtains, antilock brakes (ABS) with electronic brakeforce distribution (EBD) and brake assist, dynamic stability control (DSC), traction control, tirepressure monitor, LATCH child safety seat anchors and hill hold assist. A rearview camera is optional.

Walkaround: With many styling cues derived directly from the radical-looking Shinari concept car unveiled several years ago, the good-looking Mazda6 conveys a more dynamic, athletic, look. The result is a midsize sedan that differentiates itself from the crowd, with striking good looks that aren’t overdone like those of some competitors.

The front end features a curving, trapezoidal grille with stretched horizontal lines. From the side, the prominent nose looks almost shark-like. The athletic look carries forward with wraparound headlamps, and LED foglamps with flared, geometric housings.

The Shinari influence is seen in the deep flowing creases over the front fender that slide into the front doors. The shortened rear deck curves outward, while wraparound taillamps mimic the horizontal shapes up front. Sporty-looking twin exhaust pipes reside beneath the lower plastic bumper, and an integrated lip spoiler is added on the Grand Touring version.

Chrome is used subtly, highlighting without overwhelming.

Interior: While the cockpit is drivercentric, finish materials are a somewhat puzzling assortment. There’s good-quality, soft-touch dash and instrument panel trim, but plastic around the doors — including the window switches — have that 80’s-era GM mix-n-match parts-bin look. Still, fit and finish are good.

The center stack is clean, with easily identifiable buttons and knobs within easy reach of the driver, although many of the same functions are duplicated on the smaller steering wheel.

Instrumentation consists of a trio of simple and easy to read gauges — speedometer, tach and driver information display. On cars equipped with Navigation, (courtesy of Tom Tom), the 5.8-inch color touch screen sits front and center on the instrument panel. The 11-speaker Bose audio system kicks butt.

Visibility is good all around, with adequate head and legroom. The rear seats can accommodate six-foot passengers without any knee cramping or head bumping.

At 14.8 cubic feet, trunk space is slightly less than some competitors in its class, but the long, deep layout accommodates plenty of luggage.

Under The Hood: The Mazda6 features the aforementioned 184-horse, 2.5-liter, inline 4-banger. While the standard gearbox on the base model is a 6speed manual, it now comes standard with a hill-hold feature. However, an all-new automatic transmission is standard on the Touring and Grand Touring models. It’s a hybrid of the traditional torque converter, kicking in at speeds under 5 mph, giving that familiar automatic transmission creep, and a dual-clutch operating at higher speeds, for quick, almost seamless shifts.

EPA estimates are 25/37 City/Highway for the manual and 26/38 with the automatic.

Behind The Wheel: Thanks to MacPherson struts in front and a multi-link setup in the rear, the Mazda6 delivers a ride that’s sporty, firm and compliant, with minimal body roll around sharp curves.

The all-electric power steering is a vast improvement, and is surprisingly responsive, keeping the driver connected to the road without that overly heavy feeling.

As with all smaller displacement engines, the lack of power is obvious in demanding situations, such as climbing steep hills. But on a couple of runs to the Olympic Peninsula and back, the inline-4 handled passing situations and moderate grades with surprising power and agility.

Put the pedal to the metal and you’ll get where you want to go just fine.

Whines: Although the screen is clear and easy to read, we found some navigation functions — such as setting, changing or canceling a destination —non-intuitive, and somewhat annoying.

Bottom Line: With a stylish new design, pleasing driving dynamics and respectable fuel economy, the new Mazda6 offers a fun alternative to the usual boring suspects in the midsize sedan segment.

2014 Jeep Grand Cherokee SRT: Sports Car SUV

are up a little. Headroom is excellent. Cargo space is very good. The floor is flat with handy rub rails. We easily carried a bulky lawnmower in the cargo area.

Under The Hood: The Hemi V-8 is the heart and soul of the Grand Cherokee SRT. The smooth, powerful engine produces 465 lb-ft of torque, which gives the SRT muscle car performance. The power is transmitted to the 3.70 ratio rear axle via a slick 8-speed automatic transmission.

There is a dial in the center console that allows for various performance mode selections including track, sport, auto, snow, and tow. In track mode the SRT is capable of sub-five second zero-to-sixty times. Quarter mile times are in the mid13s and top speed is 160 mph. Sixty-to-zero stopping times are less than 120 feet thanks to massive four-wheel Brembo brakes.

There is a Launch Control switch that looks like a miniature drag racing “Christmas Tree.” Torque split is 70/30 to the rear wheels, so the SRT roars off the line. The all-wheel-drive does an excellent job of controlling all the available horsepower.

Even with all its high performance capabilities the SRT can still tow up to 7,200 pounds.

Behind The Wheel: The first thing you notice when you get behind the wheel of the SRT is how thick and substantial the contoured leather wheel is. It’s loaded with auxiliary controls and backed by a pair of paddle shifters. Given the incredible performance and superb exhaust note drivers will want to use the paddle shifters a lot. The steering wheel is heated for cold mornings.

The SRT has an Econ mode, which seems a little superfluous. This isn’t a vehicle for fuel misers. Our mileage figures varied from 15.8 to 18.0 in mostly highway driving. That agrees with the EPA estimates of 13-mpg city and 19-mpg highway.

The Grand Cherokee SRT begs to be driven aggressively. The engine, transmission, and suspension are beautifully integrated. It’s hard to believe

such a spacious, comfortable SUV could be so sporty.

Whines: This is not an economy car, either from a fuel consumption perspective or its MSRP, but those factors aren’t likely to deter SRT customers.

Bottom Line: The 2014 Jeep Grand Cherokee SRT is either a very expensive Jeep (compared to other Grand Cherokee

models) or an incredibly inexpensive super SUV compared to competitors like the Mercedes ML63, Range Rover, and the Porsche Cayenne.

The 2014 Jeep Grand Cherokee SRT is great fun. It always put a smile on our face.

Performance, handling, comfort and utility are all outstanding — it’s a great blend of sports car performance with SUV practicality.

The 2014

Jeep Grand Cherokee SRT THE ULTIMATE PERFORMANCE SUV

900 West Hills Blvd, Bremerton, WA 98312

360-377-4418 www.westhillscjd.com

October 2013 Kitsap Peninsula Business Journal • KPBJ.com 35

By Bruce Caldwell The Jeep image has always been one of ruggedness. The brand is so synonymous with off road performance that people unfamiliar with a particular SUV’s identity are most apt to call it “a Jeep type vehicle.”

Jeep’s stellar reputation was established during World War II and maintained and enhanced in both civilian and military markets ever since.

In addition to their underlying toughness, modern Jeep products have become increasingly sophisticated and luxurious. Among the various Jeep products the Grand Cherokee is the outright leader in combining high tech performance, luxury, utility, and all-weather safety with legendary off road capability. The Grand Cherokee comes as close as any current vehicle to being a true all-purpose vehicle.

One irony of the current Grand Cherokee is that its luxury content makes most owners leery of tapping its off road potential. We’ve driven Grand Cherokees on steep, muddy, rock strewn, and rut filled terrain that we never would have attempted if the factory rep hadn’t been in the passenger seat urging us on. The Grand Cherokee never hesitated or even breathed hard.

Validation for the Jeep Grand Cherokee has come in the form of many impressive media awards including top honors at the Northwest Automotive Press Association’s 2013 Northwest Outdoor Activity Vehicle of the Year event. The 2014 Jeep Grand Cherokee Overland won the Best Luxury category and the Best Overall award.

The Grand Cherokee is available in a wide range of trim levels and engines all the way from the little 2.4-liter I-4 to a thrifty 3.0-liter EcoDiesel V-6 to the super quick SRT. We tested the 2014 Jeep Grand Cherokee SRT with a thundering 470 horsepower 6.4-liter Hemi V-8 under the scooped and vented hood.

Walkaround: The 2014 Jeep Grand Cherokee SRT is a handsome, muscular SUV. It has a lower, more aggressive stance than other Jeep products, because it’s designed to hug the highway rather than dirt trails. The huge Pirelli P295/45ZR20 tires and 20x10-inch polished aluminum 5spoke wheels contribute greatly to the sporty styling. Bright red Brembo six-piston (front) and four-piston (rear) calipers look great and stop even better. Huge dual exhaust tips protrude from the lower rear valence. The SRT badging is very subtle, but there isn’t any doubt that this is more than an average SUV. Interior: The interior is a great blend of sporty and functional. The excellent leather and suede front seats are heated and ventilated. Large side bolsters keep you planted while carving curvy back roads.

The rear outboard seats are also heated.

Our tester had the optional Command View dual-pane panoramic sunroof with a power shade. It really lightened up the interior. State-of-the-art electronics and entertainment features are on par with any luxury vehicle.

Rear seat room is fine if the front seats

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

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Initiative 517 protects signature gathering at expense of businesses

Support I-517 to make sure qualified initiatives go before voters

By Kevin Weatherill and Clement Stevenson Initiative 517 just goes too far.

Professional initiative promoter Tim Eyman's latest effort to change the initiative process in our state sounds good on the surface, but the details reveal a deeply flawed measure. The basics are this: I517 would amend the initiative process to extend the amount of time that initiative supporters have to collect signatures, and takes measures to ensure that any initiative that has enough signatures goes to the ballot. But it doesn't stop there; inside the initiative are provisions that are bad for businesses and property owners.

We believe that having a robust discussion about how to make the democratic process more accessible, fairer and more inclusive is a good thing. As business owners we know how important it is to periodically evaluate how we do things and to be able to adapt and make changes to innovate and improve. But after taking a hard look at I-517, a growing coalition of citizens and business leaders are coming together to oppose I-517.

INFRINGES ON BUSINESS OWNERS' RIGHTS Currently, paid signature-gathering is a legally protected activity on all public sidewalks and walkways. I-517 expands these protections to include all walkways that carry pedestrian traffic, and the initiative language specifies "including those in front of the entrances and exits of any store." In other words, I-517 prevents business owners like us from having control over allowing paid signature-gathering on our own property, infringing upon our constitutionally guarantee d property rights. We value and respect the initiative and referendum process and think that participation in this process should be protected. But this shouldn't come at the expense of business owners' rights to have a say in what happens on their property affecting their customers. We also value the rights of our customers who may not wish to be forced to engage in a given political debate.

UNINTENDED CONSEQUENCES A major part of I-517 concerns the establishment of harassment protection for signature gatherers. It establishes a 25-foot "protected bubble" around a signature gatherer within which interference is illegal and punishable as a misdemeanor. While we don't think that harassment of anyone is OK, there are many consequences of this provision that affect store owners.

If a store owner wishes to establish time, location and personal conduct rules as to how a petitioner can gather signatures on their

By Christy Nieto I am Christy Nieto from Bellingham and I support Initiative 517 because I am a strong believer in our initiative rights which our state has had for over a century. Our right to initiative and petition our government is the most important tool we have to push back when government does things we don't like.

I-517's primary policy change is guaranteeing you the right to vote on qualified initiatives.

In a recent unanimous ruling, the Washington State Supreme Court rejected an effort by special interest groups to stop the people from voting on a qualified initiative. Their reason: "Because ballot measures are often used to express popular will and to send a message to elected representatives, pre-election review unduly infringes on free speech."

Despite this clear ruling by the Supreme Court, dozens of citizen-sponsored initiatives — liberal and conservative — were blocked from a public vote in recent years even though local citizens followed all the rules.

In King County, after local citizens qualified an initiative to reduce the size of the King County Council, the county sued to block the vote.

In Vancouver, after local citizens qualified an initiative for the ballot, the city council refused to let the people vote.

In Monroe, Mukilteo, Redmond, Longview, Wenatchee, and my hometown of Bellingham, local citizens sponsored initiatives letting the voters decide on red-light ticketing cameras in their communities. In every instance, the city or out-of-state camera company sued the citizens to block the vote. Their lawyers said only politicians were capable of discussing ticketing cameras.

They said the topic wasn't "proper" for the voters to decide.

In my view, what's not "proper" is having the government telling us it knows best. To me, what's not "proper" is the government deciding what issues we, the people, can and can't express our opinion on.

I was part of a team of local citizens in Bellingham who sponsored and qualified one of those red-light camera initiatives for a vote. It was maddening when the out-of-state camera company sued us to prevent the people from voting.

Unfortunately, this same thing has happened repeatedly to state and local initiatives.

No on I-517, page 37

Yes on I-517, page 37

LETTERS TO THE EDITOR Port Orchard deserves a professional city manager To the Editor: Port Orchard residents deserve a certified professional manager.

I served on the City Council for two administrations and closely observed a third. Each new mayor wants to hire their own team of managers. It takes 1½ years to fire the old and hire the new. It takes a minimum of half a year to begin working as

NO ON I-517

from page 36 property, they are guilty of interference and are in violation of the law. If a signature gatherer is exhibiting aggressive harassing behavior towards others such as blocking entering or exiting, yelling or threatening customers, the business owner would have no right to ask that this individual to change their behavior or vacate their property.

Further, the customers of the business may hold the business owner responsible for the behavior of the petitioners, perceiving their presence on private property to be endorsement of the petitioners' causes and actions.

I-517 protects only the paid petition signature gatherers from harassment, when in reality oftentimes it is the citizens who are being harassed. As conscientious business owners we have a responsibility to create a positive customer experience in a safe, welcoming environment. I-517 takes away our ability to effectively do that.

INTRUSIVE Initiative 517 makes signature-gathering a legally protected activity in public gathering facilities paid for by the public, as well as facilities opening themselves to public gatherings. This means that

from page 36 In every one of these efforts, citizens followed all the rules, yet each of them was hit with expensive, needless obstruction because state law doesn't clearly mandate a vote on qualified initiatives. But I-517 fixes that. With I-517, if the initiative qualifies, then the voters decide.

I-517 also gives everyone greater access to the initiative process. Since 1912, the number of signatures required to qualify for the ballot has skyrocketed almost tenfold, while the time to manually collect signatures has remained the same at six months. Oregon allows two years; Idaho a year and a half. I-517 simply matches the national average ... which is one year to collect signatures.

And I-517 does one other thing that's really important: it stops initiative opponents from bullying people who want to sign an initiative petition. Bullying — on

community institutions such as schools, libraries, hospitals and high school sports stadiums and fields lose all rights to regulate signature-gathering, not just outside but inside as well. Safeco Field, Century Link, convention centers and public fairs would also be affected. It is particularly disturbing to think about being bombarded by signature solicitations inside of venues where we choose to spend our free time with our family, friends and loved ones.

We understand what an important democratic tool the initiative process is and we should be having conversations about updates and improvements. However, this haphazard initiative written by a few people who each stand to increase their profits should this pass is the opposite of the democratic process that we are trying to protect. This is bad for business, bad for our customers and bad for Washington.

• Kevin Weatherill is president and CEO of The Markets, LLC, Bellingham, and Clement Stevenson is senior vice president of sales and merchandising/co-president of Haggen Food & Pharmacy, Bellingham. For more information on I-517, go online to no517.org.

• This commentary was published originally in The Bellingham Herald.

Reprinted with permission of the authors. sidewalks, walkways, and other public places — is becoming far too common and I-517 puts a stop to it. I-517 makes it safe for you to exercise your right to participate and vote. I517 supports democracy, promotes respectful speech, and stops bullying.

But what really moved me about Initiative 517 — what convinced me to support it and speak out for it — is its guarantee that the people get to vote on qualified initiatives. With I-517's protections, future generations will have the chance to have their voices heard at the state and local level.

Please join me and the hundreds of thousands of your fellow citizens who signed Initiative 517 petitions ... in Voting Yes on 517. Thank you.

• Christy Nieto is a small business owner from Bellingham. For more information on I517, go to the website www.Yeson517.com.

• This commentary was published originally in The Bellingham Herald.

Reprinted with permission of the author.

can expect is 50 percent effectiveness. We should not accept that percentage. The council, realizing that the city needed improved management, voted to have a full-time mayor, but the action didn’t meet our expectations.

We need a trained and certified manager to run our city. One can always find an exception, but most cities with professional managers are doing outstanding compared to Port Orchard. Port Orchard residents deserve consistency, longevity and professionalism from their manager.

I urge you to use your vote to hire a certified professional manager and to make us a code city.

Jim Colebank

Port Orchard

Prop. 1 will give Port Orchard consistency in city government When Proposition No. 1 passes in November, Port Orchard will join almost all other Washington cities its size and become a non-charter code city. This will also move our community toward greater consistency in our local government with a council-city manager form of government.

Professional city management eliminates the loss of momentum due to reorganization

and focus that occurs with each newly elected mayor. Grants, which are great ways to multiply resources, will be more easily accessed by a city manager. Professional management has networks to share ideas without political interference and business thrives with consistency in government. In addition, it is reasonable to expect a manager to net a 2-5 percent reduction in operating expenses due to improvements in office efficiency alone. These are a few reasons why many cities like Port Orchard use a council-city manager form of government.

While a new council will make the financial decisions regarding the search methods and compensation for a city manager, the average salary cost is about $130,000 plus negotiated benefits. This position replaces another, and maybe two positions and as a result is not an entirely new expense. Potential expenses for recruiting and severance are one-time expenses and become costs only if council agrees. None of these costs are connected to utility rates or other direct costs to the public and the difference is small compared to the over-all budget of the city and the savings mentioned above.

Port Orchard deserves to be run like a business, managed by a professionally trained manager. Vote YES on Proposition 1.

Deb Schmitt

Port Orchard

October 2013 Kitsap Peninsula Business Journal • KPBJ.com 37

YES ON I-517

a team, so every administration wastes two years (50 percent of their term) before they even start to be effective.

In one case, the mayor selected poor managers and they accomplished little in four years. One mayor selected excellent managers within the first year who worked well with the council, and the many ribboncuttings this year are the result. This mayor used the typical 1½ years to establish the team, but the managers/council team hasn’t jelled as yet.

The bottom line is the most the citizens

Pot, I-517, and...

Watching the state birth an entire bureaucracy for dealing with legalized marijuana has been a little like watching a late-season Mariners game — you know it’s going to be a meaningless comedy of errors. There’s no chance of making the playoffs, because the game is being played primarily with rookies and guys who started the season in the minors, along with a few end-of-their-career veterans.

I recently attended a meeting, where the speaker was Clallam County District Court Judge Rick Porter, discussing the state’s impending (it’s not yet legal) legalization, proposed enforcement, taxation, and marketing of reefer. The judge was a pretty entertaining speaker, and made a lot of his more serious points using humor.

However, the one point he made that really isn’t too funny when you think about it, yet elicited the biggest chuckle from the audience because no one was at all surprised, was this: By the time the state taxes pot at the grower level, processor lever, and again at the retail level, the cost will be about twice the current illegal street price. This was supposed to be a gold mine for the state, and it’s spending millions to create the bureaucracy to oversee it.

Personally, I believe those geniuses down there could figure out how to

One initiative on the November ballot would guarante the right to vote on qualified initiatives — I-517. It’s an initiative on initiatives if you will. I believe the right of initiative, and to petition our government to change things when it takes actions we don’t agree with, is the single most important tool citizens have to LARY COPPOLA force our state government to The Last Word listen to us.

They’ve proven over and over again, that no matter what we think, they believe they know what’s best for us down there in Olympia. The initiative process is one of the few ways citizens have to keep the taxand-spend zealots in check.

Anti-initiative extremists oppose I-517 because among other things, it will restrict their ability to continue the unbridled taxation this state has become famous for by silencing the voters ability to stop it.

Something I find really ironic is opponents are using property rights as a red herring to try and defeat it. In my view, that’s a bogus argument of convenience.

The truth is, I-517 has nothing at all to

do with property rights. Court rulings going back more than three decades have reaffirmed the people’s const itutional right to petition in places open to the public, and those rights will continue.

I-517 also extends the time for collecting signatures, and deters opponents from bullying voters at signature-gathering locations. I’ve always been a strong supporter of the initiative process and will be voting for I-517 because I think it’s just common sense to preserve one of the few hammers citizens have to make Olympia listen.

If you live in the City of Port Orchard, you may have received a report sent by Mayor Tim Matthes concerning the Bethel Corridor. The report is filled with inaccuracies, and either ignorant misinformation or intentional lies — I’m not sure which — but either way, the citizens aren’t being told the truth.

Since leaving the mayor’s office, I’ve intentionally refrained from publicly commenting on Matthes’ administration.

However, after reading that report, I can no longer sit quietly by as residents are deluged with what appears to be intentional misinformation. The report states, “When discussions were happening regarding the Bethel Corridor annexation, it was touted that the annexation would bring in a lot of revenue. What was never discussed was the costs to provide service and what the impact would be to the City.”

This is patently untrue. The costs were publicly discussed at great length during Finance Committee meetings, at several

City Council meetings, and again in public hearings. For Matthes to tell citizens such a significant cost was “never discussed” is either a blatant lie — or the words of someone completely uninformed about the entire annexation process for Bethel, and how the City went about it.

The fact the City would incur costs for Bethel several months prior to any revenue being generated, was not only known, but planned for financially as well.

As Mayor, he’s supposed to know that.

Also anticipated, and planned for were increased costs for law enforcement and the courts’ increased workload. Former Police Chief Al Townsend found grant money to cover a significant part of that cost, with the balance being paid from the anticipated $1.3 million in additional sales and property tax revenue generated by the annexation.

The report talks about the cost of right-of-way acquisition, while ignoring the fact former Development Director James Weaver authored a plan that would require developers to cede the necessary right-of-way to the City as a condition of being granted a development permit, as well as either installing or reimbursing the City for any necessary public works infrastructure to service their projects.

Matthes refused to meet during the transitional period until City Attorney Greg Jacoby forced his hand. Had we met for more than the 12 minutes we did, I would have gladly passed all this — and much more — information on to him. He just wasn’t interested.

38 • Kitsap Peninsula Business Journal • KPBJ.com October 2013

Record shows why change to a city manager is needed There’s no election for mayor in Port Orchard this November, and there may never be another one.

Two well-regarded former city department heads who left this year — because of strained relationships, to put it mildly, with the current mayor — think that would be good for the city.

If enough voters see the merit of having their city government run by a competent, professional manager who would be vetted and hired by the City Council, instead of by a mayor who may win an election but be otherwise unqualified for the job, then a change will be made.

Let’s be clear about this: The ballot measure, Proposition 1, is not an attempt to oust the current mayor, Tim Matthes, although if the measure passes it would eliminate the mayor's position halfway through his four-year term (and require new elections for all City Council seats.) But this election is not about any individual; it’s simply about changing the city’s form of government to a more stable, efficient system headed by a professional manager.

Predictably, the plotters against Prop. 1 who desperately want to maintain the status quo will circulate a flood of misinformation.

They may even claim this ballot measure is just a vendetta against Matthes.

Prop. 1 opponents also warn about transferring authority to an unelected official

if a city manager replaces the mayor's position. How can that be regarded as anything but hypocritical, when one of those very opponents is an unelected citizen (and former failed City Council candidate himself) who's known as the "puppetmaster" because of his undue influence TIM KELLY over the current mayor?

Editor’s View Here are some things a professional city manager would NOT do: — Fire department heads to settle political scores; — Meddle in police department investigations; — Refuse to authorize police use of a McCormick Woods substation offered at no cost to the city; — Fail to consult with the police chief or officers' union or City Council before pursuing a plan to eliminate the police department and contract with the sheriff's office for law enforcement services; — Get into heated arguments with city supervisors that are overheard through the wall by municipal court staff; — Personally confront the owners of a new downtown business and order them to

shut down, rather than let the community development director's staff resolve any licensing issues with the business; — Spend thousands of dollars requiring city employees to attend worthless public relations training, led by an unqualified presenter chosen because of his church connections to the city's chief executive.

If a new city manager had a record of those actions in his first year or so on the job, he'd be out of a job. The City Council certainly would be justified in dismissing a public official for such egregious conduct.

Yet that is precisely the record of the current mayor since he took office last year.

When Al Townsend resigned as Port Orchard police chief earlier this year and became Poulsbo's chief, he wrote a summary of the conflicts with the mayor that had made it untenable for him to continue in the job he'd held for 14 years — a tenure that included working under four different mayors in Port Orchard. Although he decided not to submit the letter at his exit interview, these are some of his observations in that letter under the heading "Concerns for Personal and Professional Liability/Professionalism/Ethics."

There was the mayor's insistence on intervening in cases handled by the police department and "conducting personal investigations ... rather than following department policy and bargaining unit

requirements, even after he was warned by me and the city attorney of the ramifications of such actions."

The mayor has gone so far as contacting the county prosecutor’s office in an attempt to influence decisions on filing criminal charges, "with no factual basis for that decision," Townsend's letter notes.

This mayor, who has no training or experience in law enforcement, decreed that any police department policy changes had to be approved by him.

The new mayor was on a power trip, and unconcerned about consequences. "When explaining that police policies are based upon model policies and best practices along with legal standards and case law," Townsend wrote, "his answer was that if his policy requests didn’t meet with the IACP (International Association of Police Chiefs) model policies, then I as the chief would just not be able to be a member of that association anymore."

Regarding the police substation at McCormick Woods, which was strongly supported by residents of the community that was annexed into the city a few years ago, Matthes wouldn't accept a $1 a year lease for the space offered by Sean Cucciardi, who runs the restaurant at McCormick Woods golf course. Townsend was concerned that the mayor's decision City manager, page 33

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