Kitsap Peninsula Business Journal September 2014

September 2014 Vol. 27 No. 9

Est. 1988

An edition of the Kitsap Sun

Back to building Housing projects derailed by recession are being revived Page 4

Inside Incentives make solar a simple choice | 6 Green guidance for remodeling | 5 Q&A with renowned architect | 7

Return service requested The Kitsap Peninsula Business Journal Post OfďŹ ce Box 259 Bremerton, WA 98337

Presorted Standard U.S. POSTAGE PAID PERMIT NO. 76 Bremerton, WA 98337 CAR-RT Presort

2 |SEPTEMBER 2014

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Business Calendar Sept. 2, 16, 23, 30 Good Morning Kitsap County We will have a different business professional each week for a Q&A session.

Where: Hop Jack’s, Silverdale When: 7:30 to 9 a.m.

Info: silverdalechamber.com

Sept. 4 OfficeXpats Super Happy Hour In addition to socializing with your Xpats coworkers, we do a quick round of introductions plus a “tech or trends” topic. New members are encouraged to attend and participate in the pre-event

new member orientation.

Where: 403 Madison Ave. N, Bainbridge Island When: 4:30-5:30 p.m.

Cost: Free to members and guests Info: officexpats.com Sept. 9 Kitsap Business Forum

Dave Mitchell of PMR Consulting will lead a panel discussion on The Changing Landscape of Healthcare in Kitsap. Representatives from Harrison Healthcare will provide information and answer questions. Please RSVP to this event.

Where: Cavalon Building,

3011 Myhre Road Suite 301, Silverdale When: 7:30 to 9 a.m.

Info: kitsapeda.org or kitsapbusinessforum.com Sept. 10 Accounting for Subcontractors 101 Part 1 of a 2-part series. Learn about the accounting methods that need to be in place and executed to insure timely payments and compliance.

Registration is required.

Where: 4312 Kitsap Way, Suite 103, Bremerton When: 9-11 a.m.

Info: washingtonptac.org/ events-workshops Sept. 10 Networking Event for All Local GreenDrinks Chapters and Chambers of Commerce Catered by the Kitsap Conference Center, bring your own glass and enjoy this partnered event. RSVP is required to rsvp@silverdalegreendrinks.com.

Where: Kitsap Conference Center, Bremerton When: 5:30 to 8 p.m.

Cost: $10 at door Info: kitsapeda.org/events Sept. 10-11 Department of Enterprise Services Annual Training Conference and Trade Show This event is free for all state, federal and local government employees, as well as entities with a signed Master Contracts Usage Agreement. The trade show will take place the first day. The classes and line-up with information will be released.

Where: Tacoma Dome When: 8 a.m. to 4 p.m., Sept.

10; and 8 a.m. to 3 p.m., Sept. 11 Info: des.wa.gov Sept. 11 Consumer Awareness Going over what to consider when applying for cell phone, Internet and cable services. Hosted by American Financial Solutions.

Where: Kitsap Community Resources, Bremerton

When: 5:30 to 7 p.m.

Info: kcr.org Sept. 12 North Mason Chamber of Commerce Brown Bag Lunch Workshop Liquor Laws for Nonprofits featuring Linda Thompson, customer service & support supervisor, Licensing Division of the Washington State Liquor Control Board.

Where: Theler Community Center, Belfair When: noon-1:30 p.m.

Info: 360-275-4267 Sept. 13 Kitsap Community Food Co-op Harvest Dinner A locally produced meal with appetizers, salad, entrees, sides, dessert, and local beverages. There will be vegetarian and seafood options. Limited seating available.

Where: Private waterfront garden in Manette (address provided at purchase) When: 5:30 p.m.

Cost: $75 per ticket Info: kcfc3rdharvestdinner. bpt.me Sept. 18 Protect Your Identity American Financial Solutions offers this class to discuss identity theft, protecting your identity and the safety of your information.

Where: Kitsap Community Resources, 3200 SE Rainshadow Court, Port Orchard When: 5:30 to 7 p.m.

Info: kcr.org Sept. 24 Edward Jones Financial Coffee Club Donald Logan, a local Edward Jones financial advisor, will be hosting a coffee club.

Where: Edward Jones, 2416 NW Myhre Road, Bremerton When: 8:15 a.m.

Cost: Free Sept. 25 Psychology of Spending Kitsap Credit Union will host this workshop.

Where: Kitsap Community Resources, Bremerton When: 5:30 to 7 p.m.

Info: kcr.org

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SEPTEMBER 2014 | 3

ON THE COVER

WELCOME | DAIVD NELSON

One area of revived home construction is the Eastpark development in Bremerton. Photo

by Larry Steagall

Doing a little remodeling ourselves

ALSO IN THIS ISSUE • Local business signs deal with Staples, 12

• Business openings, 16, 18, 30

• Columnist Julie Tappero on human resources, 14 • Columnist Dan Weedin on business strategy, 28

C

olumnist Dan Weedin uses the analogy of bland chicken in this issue to describe a business gone stagnant.

Are you, he asks, looking to create something new, or reach customers beyond your existing base? Has the product you offer become, in Weedin’s words, something without distinction because it “tastes like chicken?”

I don’t want to give the impression the Kitsap Peninsula Business Journal has gone stale, because the Kitsap Sun wouldn’t have invested in this monthly newspaper if that was the case. Still, we in the media industry are more on our toes than ever — no matter how great the storytelling, analysis, photography and community engagement, there’s more than enough challengers for your attention in today’s market.

That’s why I’m happy to announce that our website, www.kpbj.com, has undergone a complete renovation this month. We’re pleased with our audience, but aim to increase our reach digitally in the coming

weeks and months.

You’ll recognize the look of the new site if you’ve visited www.kitsapsun.com at all this summer, and the two will have a closer connection digitally as partner media sites. The design is very clean, gives prominence to visuals and attractively presents our stories, and allows sharing of KPBJ. com stories with the click of a button. We’ll still offer a daily email newsletter with local and state business headlines, which I encourage you to subscribe to for frequent updates (there’s a simple form on the right hand side of kpbj.com’s homepage).

Another long-time Kitsap Peninsula Business Journal tradition undergoing some change is the annual nomination process to identify and honor the region’s young business leaders.

We’re once again accepting nominations (www.kitsapsun.com/20under40), but we’ve tightened the selection. This November we’ll recognize 20 individuals rather than 40. The change isn’t to minimize the commitment to young leaders (full disclosure: I’m a 40 Under 40 alum myself), but it is a move to better focus on businesspeople who

are most deserving.

Narrowing the field to 20 will allow us a better opportunity to applaud a selective group, and we hope that encourages a little competition of its own. Please use the nomination form, and consider attending the 20 Under 40 reception at 5 p.m. on Nov. 6 at Kiana Lodge in Poulsbo.

The theme to this September edition is construction, and inside you’ll read about residential building projects that have been resurrected since the recession, as well as a profile of a Hansville woman who revived her own work by joining the construction industry through a mid-career change.

I see our www.kpbj.com and 20 Under 40 changes in the same light — the foundation still exists, but competition means a little renovation was in order.

And that sounds much more exciting than another chicken dinner.

Enjoy the September edition of Kitsap Peninsula Business Journal, and the new kpbj.com.

• David Nelson is editorial director of the Kitsap Peninsula Business Journal.

The Kitsap Peninsula Business Journal is published by the Kitsap Sun the first week of every month, and distributed to business addresses through Kitsap County, North Mason and Gig Harbor.

Brent Morris, Publisher brent.morris@kitsapsun.com David Nelson, Editorial Director david.nelson@kitsapsun.com Tim Kelly, Managing Editor tim.kelly@kitsapsun.com editor@kpbj.com

Mike Stevens, Marketing Director mstevens@kitsapsun.com Jeremy Judd, Digital Director jeremy.judd@kitsapsun.com For inquires to receive the Kitsap Peninsula Business Journal at your business, contact Circulation Sales Director Hugh Hirata at 360-7925247 or hugh.hirata@kitsapsun.com.

To advertise in the Kitsap Peninsula Business Journal, contact Michael Stevens at 360-7923350.

TO SUBMIT NEWS: Tim Kelly, Managing Editor tim.kelly@kitsapsun.com 360.377-3711, ext. 5359 Standard mail postage to be paid at Bremerton, WA POSTMASTER: Send address changes to Kitsap Sun, PO Box 259, Bremerton, WA 98337-1413 © 2014 Kitsap Peninsula Business Journal / Kitsap Sun ISSN 1050-3692 VOLUME 27, NO. 9

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CONSTRUCTION

Revived housing developments pick up pace

By Rodika Tollefson KPBJ contributor The recovery of Kitsap County’s construction sector has been lagging behind King and Snohomish counties, where new jobs have spurred demand for housing. But things are looking up for developers and builders — at least for now.

Plats that were purchased and began development before the real-estate market dive, but stopped activity during the downturn, are being revived all over the Kitsap Peninsula.

“It was stop and start for a while,” said Jon Rose, president of Olympic Property Group.

OPG began developing in Gig Harbor nearly 15 years ago, starting with Costco and then the YMCA. Harbor Hill, a masterplanned community, continued to be planned and developed during the recession, Rose said, but construction and sales halted for about three years before interest started coming back in 2011.

OPG has sold 79 developed lots to Quadrant Homes and Lennar Northwest, and another 63 lots to Richmond American. Priced at $300,000 and up, those homes are now in construction and sale phases. Another 60 lots are being developed and will be sold to Quadrant and Lennar later this year, with future phases to follow.

Rose said changes in consumers’ housing preferences are impacting what builders are offering. Two changes in particular from a decade ago are adult children moving back in with parents and aging parents moving in with their adult children. So Lennar, for example, is building secondgeneration homes: homes with two self-contained living units.

“Those have been a big seller for Lennar across the country,” Rose said.

Another unique development in Harbor Hill is Heron’s Key retirement community, owned by Emerald Communities. In addition to a mix of homes, it has a variety of other facilities, from assisted living to memory care.

Rose said as OPG looks at market gaps for the rest of the Harbor Hill land, he expects to see other less traditional housing, such as cottage homes (similar to Ericksen Cottages on Bainbridge Island).

“Our housing preferences as a country in general are changing,” he said.

PHOTO COURTESY OLYMPIC PROPERTY GROUP

Construction site of a home in the Harbor Hill residential development in Gig Harbor.

“I’m not aware of new land being developed. Mostly it’s revitalization of old plats.”

Teresa Osinski, Home Builders Association of Kitsap

REAL ESTATE MARKET IMPROVES Leslie Peterson, senior vice president and lending officer at Poulsbo-based Liberty Bay Bank, said the instability of the economy — including locally at the shipyard — has put people into a “holding pattern” the last five or six years and they were afraid to buy homes.

“There’s a sense of comfort now and people are committing to long-term financing,” she said.

Liberty Bay Bank currently has several plats financed, in different stages of development. Located between South Kitsap and Poulsbo, they range from 40-some units to more than 140.

“There’s definitely more demand for new construction,” Peterson said.

Homes are staying on the market for shorter periods, said Karen Bazar, broker with John L. Scott in Poulsbo.

“New construction picked up be-

Other housing developments that stalled during the recession but where construction of homes has resumed with a different developer include: — Eastpark in Bremerton, where Highmark Homes of Tukwila has taken over and plans to build out the 50-acre hillside site that could eventually have more than 400 homes; — Freestone at Bayside, along Anderson Hill Road between Gorst and The Ridge at McCormick Woods; where Fife-based builder Freestone has begun construction of homes in the 167-lot first phase, with a total of 275 homes planned on the 56-acre site that will have nearly 25 acres of open space; — Northview Ridge, in the same area as Freestone, where developer Northview Ridge Properties LLC of Suquamish is planning 300 homes on 125 acres.

cause inventory has been fairly low in the last year or two,” said Bazar, who also represents two developments by Central Highland Builders. “A lot of new homes are better priced because the only way for builders to succeed is to sell their way out of their projects.”

The median selling price for new homes is also on the rise, said Teresa Osinski, executive vice president of Home Builders Association of Kitsap County.

While it’s difficult to pinpoint the exact reasons, she suspects that some of it has to do with appraisals because “there’s enough product to compare to.”

Lessley Shirley, vice president and relationship manager in residential construction lending at HomeStreet Bank, says six months of new home inventory would be considered balanced, and Kitsap County currently has five months’ worth.

CHANGED HANDS Many developments around Kitsap Peninsula have changed hands during the downturn, as companies either lost financing or went out of business. Some sold their plats-in-progress to other developers, while others let ownership revert to lenders.

“There was a lot of that happening when people lost their financing and the market didn’t support (the project),” said Scott Walker, vice president of Rush Residential, based in Gig Harbor.

Rush is one of the developers that bought land from a bank.

One of its projects, Harbor Crossing near Harbor Hill, is selling an average of two homes a month — fairly good for this market, Walker noted — that are priced in the $275,000-$325,000 range.

The original developer built some of the homes before the project stalled, and Rush purchased 80-plus lots in 2011. More than

half of them already sold.

Bellesara, a 31-home subdivision on the west side of Gig Harbor, is in the final plat process and Rush will begin sales later this year. Another developer started the project in 2006 and Rush took over last year after the plat already had preliminary approval.

The homes will be priced in mid-$500,000s — a popular price in Gig Harbor during the boom of 2005-2007. “We’re starting to see an increased level of demand in these price points again,” Walker said.

He said Rush invested $2 million in public street improvements outside of the development to bring in water and sewer lines.

Additionally, the company owns two other lots in the vicinity and will develop those over the next few years.

In Poulsbo, developments that switched hands include Mountain Aire and Vinland Pointe, both bought by Quadrant Homes from previous developers.

Quadrant bought Vinland Pointe as finished plats and continued developing it during the downturn, said Bonnie Geers, vice president for community development and public affairs. Sales began last spring, with homes priced in the low- to mid-$300,000s. The interest has been strong, Geers said — partly because of the location, including proximity to an elementary school.

Mountain Aire includes 145 lots, with 69 of them part of the first phase. Quadrant took over the project in 2013 while it was in the engineering review stage and has done plat construction this year. Activity will stop during the winter, and sales will begin next year after construction resumes.

Also in Poulsbo, Central Highland purchased Chateau Ridge and Poulsbo Place, both projects that went into bankruptcy. Of the 40 Chateau Ridge lots, only three remained for sale in August, Bazar said. (Central Highland also recently broke ground on Summerset, a 128-lot subdivision in Poulsbo.)

In Port Orchard, 27 lots developed by Freeland Industries were purchased in mid-August by Housing Kitsap. Poulsbo developer JWJ Group LLC began developing the subdivision, called Silver View, and Freeland purchased it in 2011, with plans to have The Peoples Builder build the homes.

But development stalled and SEE HOUSING | 9

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SEPTEMBER 2014 | 5

Sustainability adviser’s ‘Re-’ list includes remodel

By Terri Gleich For KPBJ Reduce. Reuse. Recycle.

Remodel?

Certified sustainable building advisor Jane Ritley contends the fourth “R” is a natural addition to the familiar environmental credo.

“It’s the epitome of green to take a house that’s sound and revive it and give it life,” she said.

That’s why Ritley, whose lifelong love of building design led her to launch a second career as a green building advisor, focuses her word-of-mouth business on eco-friendly residential makeovers.

She’s part of a fast-growing field, according to a 2012 study of green homebuilders and remodelers by McGraw Hill Construction.

Green homes, which made up $17 billion of the construction market in 2011, are expected to increase to five times that much by 2016. And a third of remodelers expect to be doing mostly green work by 2016, which is a 150 percent increase over 2011.

At the same time, the reported costs of building green have gone down from 11 percent more than conventional construction in 2006 to 7 percent in 2011.

The West Coast leads the nation in green construction growth.

Also in the vanguard is Kitsap County, which has the oldest Built Green program in Washington and the second-oldest in the country, according to Teresa Osinski of the Home Builders Association of Kitsap County.

Ritley, who has a degree in community services from Seattle University, joined the green building boom in 2007 after working in life insurance and raising two children as a stay-at-home mom. She’s also a longtime community activist, who co-founded the Kitsap Community Foundation, the North Kitsap Schools Foundation and the Kingston Co-Op Preschool, and ran bond and levy elections for the North Kitsap School District for 10 years.

In the 1980s, Ritley and her husband Tom designed

“It’s the epitome of green to take a house that’s sound and revive it and give it life.”

Jane Ritley

and built their Hansville log home themselves with trees from their property.

She also designed a universal access home for her neighbor, Heather Carrell, in 2005.

“She is extremely precise.

She’s a perfectionist,” Carrell said. “She does a lot of research to make sure she has the most appropriate items for the best price.”

Said Ritley: “If I had doovers, I probably would have gone into architecture.”

So when she saw that Olympic College was offering its first sustainable building advisor class in 2007, she jumped at the chance to enroll. Most of her classmates were already in the building trades. The course, which is no longer offered locally, comprised more than 200 hours in the classroom, as well as field trips to green projects and resources.

After completing the program and passing the certification test, Ritley purchased a fire-damaged house on Wycoff Avenue in Bremerton in 2008 and put her education to the test. Her goal was to turn the rundown rental into a healthy and affordable family home.

The stucco house was a diamond in the rough. Built in 1938, it had beautiful hardwood floors, detailed plasterwork and a commanding view. But a wall and part of the kitchen ceiling were damaged by fire, the house had only one bathroom and the yard was overgrown and filled with trash.

Doing much of the work herself and learning by trial and error, Ritley transformed the residence over the next two and a half years. When she was done, the project earned the highest rating from the local Built Green program.

It needed 50 points for top honors and earned 130.

Here are some of her tips for a green renovation: • Use materials in unexpected ways. Ritley used all-natural linoleum for countertops and repurposed an old dresser from Goodwill for a vanity in the master bathroom.

• Look for locally produced materials to minimize your carbon footprint.

She found a carpenter who crafted kitchen cabinets from hand-milled, locally harvested alder.

• To preserve indoor air quality, use paints, strippers and adhesives with low or no VOCs. • Get rid of carpeting.

Ritley said carpeting traps dirt and contaminants tracked in from the outside.

Where carpet is the best option, for example on stair treads, look for wool with a recycled backing.

• Use paperless drywall in bathrooms to inhibit mold growth.

• Look for materials at building salvage shops, such as the Habitat for Humanity Store on Wheaton Way in Bremerton.

“One of the key components of green building is durability,” Ritley said.

“If you put in things that won’t last or are too trendy, you’ve negated a lot of the sustainability.”

It takes a lot of research to find the greenest building products and companies, SEE REMODEL | 13

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CONSTRUCTION

Building in solar simply makes financial sense

By Tim Kelly KPBJ editor It’s no big deal to incorporate rooftop solar panels into new home construction, but it is a good deal for homeowners.

In fact, the deal available now sounds almost too good to be true.

“Buyers want it, developers want it, everybody wants it,” Tim Bailey says of solar power. His company, Blue Frog Solar in Poulsbo, is part of an alliance providing an innovative way for new home buyers to take full advantage of federal and state incentives that offset all or most of the cost of installing solar arrays that connect to the power grid.

“We assumed, like a lot of developers, that the cheapest way to do it is to just build it into the new construction,” Bailey says.

“Well, it turns out that there are problems with that because of the way the incentives are designed.”

The complication was with the federal income tax credit for 30 percent of the cost of an installed solar system —a $9,000 credit on a typical $30,000 system. That credit is only available to the property owner, so if solar panels are put on a house during construction before the home sale closes, the buyer would not be eligible for the tax credit.

Through its Simple Solar promotion, Blue Frog collaborates with a local installer and credit union on an arrangement that has developers building “solar-ready” homes for buyers, who have the rooftop panels installed after the sale closes.

“If there are just a few tweaks in home design, that makes it real easy to install a solar array on the roof, for probably no extra (construction) cost,” Bailey says, mentioning things like putting in conduit for the needed wiring, and a double breaker in the electric panel to hook up a second meter.

“If the builder is planning for that right away, it makes it so easy, and it will

PHOTO COURTESY BLUE FROG SOLAR

Aerial view of Grow Community homes with rooftop solar panels on Bainbridge Island. seriously reduce the installation cost.”

Qualified buyers can sign up for special zero-down financing for the full price of the system and installation, and they can repay the loan in as little as five to seven years using their federal tax credit and the annual payments they’ll receive from Puget Sound Energy for the electricity their rooftop panels generate.

Another incentive is an exemption from state sales tax on the purchase.

“So pretty much when you’re buying this solar system, you’re very little cash out of pocket,” Bailey says.

Blue Frog’s Simple Solar package uses rooftop panels manufactured by itek Energy of Bellingham, and micro-inverters made by Poulsbo-based APS America. Kelly Samson, co-founder of Blue Frog Solar with Bailey, is a principal in both itek and APS. Using components manufactured in Washington — the only other in-state supplier of solar panels is Silicon Energy in Arlington — maximizes the energy production incentive homeowners receive from their utility company.

Bailey notes that the region’s relatively cheap hy-

dropower means consumers pay 8 to 11 cents per kilowatt hour for electrici-

ty in Western Washington.

A homeowner with rooftop solar, however, gets paid

54 cents per kilowatt hour

by Puget Sound Energy for the electricity that solar array produces, up to a maximum of $5,000 a year.

That’s not only for surplus electricity after the solar system provides energy for home use; it’s for all the power the system produces.

Two meters are installed, one to track power generation and one that measures the home’s energy use.

“So you’re getting paid 54 cents a kilowatt hour for everything that’s generated, and then … if it’s generating more power than you’re using, that meter is running backward and you’re getting a credit” for the surplus power that goes into the utility grid, Bailey explains. “So you’re reducing your bill and you’re getting a check; it’s like you’re getting paid twice. That’s the part that people can’t believe, but that’s exactly what happens.”

Blue Frog works with

A&R Solar of Seattle for installations, and with Bellevue-based Puget Sound Cooperative Credit Union for financing.

Bailey, A&R founder Reeves Clippard and PSCCU’s Shannon Ellis-Brock were guests recently on Tom Kelly’s “Real Estate Today” program on KIRO radio to talk about the Simple Solar concept.

Ellis-Brock, the credit union’s chief operating officer, said when homeowners get their federal tax credit, they can pay their full refund amount toward the loan principal and refinance the balance to get a lower monthly payment, or they can deposit the tax refund in an account and have loan payments deducted from that. They can do the same with their annual checks from PSE. “That’s what’s really accelerating the payback,” Clippard said. “Lots of people SEE SOLAR | 8

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SEPTEMBER 2014 | 7

Renowned Bainbridge architect talks sustainable design James Cutler, principal in Cutler Anderson Architects, has received numerous professional awards for his design work on residential and commercial projects throughout the country and overseas. The renowned architect is known for the environmental awareness and attention to detail that is integral to projects he designs.

Although the firm he started in 1977 is based on Bainbridge Island, he has not done much design work on buildings in his home community, James Cutler save for the Grace Episcopal Church that was built in 2003.

However, he agreed to work on the design of the second and third phases of the Grow Community, a Bainbridge housing development that emphasizes sustainability and strives to be a net-zero energy community.

Cutler, who is teaching a Design Studio for the University of Oregon in Portland this summer, answered questions from the Kitsap Peninsula Business Journal about sustainable design and his work on the Grow Community.

KPBJ: You’ve designed high-end custom homes in places as varied and distant as the Methow Valley in north-central Washington, a windswept Hawaiian hilltop and the Mediterranean island of Mallorca. What drew you to helping design the Grow Community, a new neighborhood in your own backyard on Bainbridge that includes townhouse-style single-family residences along with rental units?

CUTLER : I was of two minds on this. First, I was anxious to apply the knowledge that we have gained over the years to a more dense living environment.

Multi-family housing is a building type that could use some raising of the standards. On the other hand, I have been wary to do work on Bainbridge because I

have attempted to keep a fairly low profile. This project is very public … with all of the minuses that go with public knowledge of the process … which by its nature is always fraught with some conflict.

KPBJ: What kind of design features are viable in residential developments such as the Grow Community that want to emphasize sustainability yet also aim to be reasonably affordable to homebuyers and/or renters?

CUTLER : The design features that we have tried to apply to Grow have been the design features that we attempt to apply to all residences. We have learned a lot about the anatomy of the family and how to clothe it.

We are doing that with the added feature of responding to the larger community … both socially and environmentally.

KPBJ: What sustainable design features do you consider most important or practical, and which ones provide the most bang for the buck for builders and buyers?

CUTLER : Here, too, there are two paths. The first is a technical response to energy use, consumption and generation. We are employing as many of methods as we can afford to minimize the former two and maximize the latter.

The other path is to produce a design that emotionally engages and connects people to the living world.

This we are attempting to do that with outdoor private gardens for all dwellings and an intensive landscape program that is responsive to the realities of our Northwest ecosystem.

KPBJ: Building “green” seems to be a widely embraced approach these days in the construction industry. Besides obvious things like rooftop solar panels and energy-efficient heat pumps and appliances, what are other cuttingedge trends in sustainable design and green building, and what do you see emerging in the future?

Cutler: I don’t have a

crystal ball for that. When these technologies emerge, we will use them. We do, however, see a need for integrating fully functioning living ecosystems into the built environment. We need, as a culture, to learn to co-exist with the living world and to foster life wherever we can.

KPBJ: A primary feature of the custom homes you design is integration of the residence into the surrounding environment.

Can that approach be implemented for developing an entire subdivision or urban neighborhood?

CUTLER : I hope so.

The Grow project is quite large. From the beginning

of the design, we were concerned with the general fit into the larger land form (the land drops 40 feet from the NW corner to the SE corner.) Dealing with this natural feature actually generated the design.

There was a lot of struggle to comprehend what the original (prior to any development) contours were and

then how to employ them to create the large spaces and to bury 90 percent of the parking. This allowed us to place 88 houses on five acres and leave three of those acres as open space.

KPBJ: Besides construction features in the residences themselves, what SEE Q&A | 9

8 |SEPTEMBER 2014

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CONSTRUCTION SOL A R | F ROM 6

use that incentive check to make their loan payments.”

A homeowner is responsible for making monthly loan payments until they receive their tax credit or utility rebate. Ellis-Brock said payments are approximately $200 a month on a $30,000 solar system, based on a 15-year repayment schedule.

Any out-of-pocket monthly payments in the beginning would be at least partially offset by savings on a homeowner’s monthly electric bills.

“From day one, as soon as your system is turned on, you start saving energy,” Clippard said.

Not every home is ideally situated for utilizing solar panels, but A&R takes the guesswork out of estimating how much power can be generated by a rooftop solar array, given the home’s location and surrounding landscape. Design consultants use satellite imagery to calculate an accurate assessment of the generating capacity on a particular roof.

“We actually will guarantee for 10 years the energy your system will produce,” Clippard said.

Blue Frog launched its Simple Solar promotion in May, but Puget Sound Cooperative Credit Union has offered its financing for two years. Ellis-Brock said the credit union has financed more than 600 solar installations totaling more than

$15 million.

Blue Frog is collaborating on the largest residential solar project in Kitsap County — Bainbridge Island’s Grow Community, a project of real estate development and investment firm Asani. It’s an example of effectively designing and building homes to accommodate rooftop solar panels.

“We knew from the outset that our goal was to create a net-zero community using solar,” says Marja Preston, senior director of development at Asani and owner of a solar home at Grow. “So everything there was designed, including the apartments, so we could get enough solar panels on the roof to provide all the energy needed for the homeowner.”

She and Bailey both say it’s not the environmentally friendly, renewable energy aspect that motivates most people to install solar. It’s the economics.

“We weren’t selling green houses, we were selling houses that make financial sense,” Preston says, noting the Grow project was launched during a down economy. “You live in a house that has solar on it, and it’s paying for itself and you won’t have energy bills, which brings down your cost of living.

“It’s really easy to sell that.”

Grow Community project manager Greg Lotakis says renters in the apartment buildings that will be part of phase 2 at Grow aren’t eligible for the federal or state incentives, but they will share in the solar energy benefits. Utility costs will be

included in the rent, which provides an incentive for the investor who owns the building to install solar to minimize energy costs.

Lotakis and Preston say it’s more challenging to figure out ways the solar incentives might apply to Grow’s multi-family condo buildings (and multi-family residential construction elsewhere), since the current incentives are geared toward solar installations on single-family homes.

Those incentives won’t always be available. The sales tax exemption was extended through 2018, the federal tax credit expires at the end of 2016, and the state incentive for power generation goes to 2020.

It’s uncertain whether any of them will be renewed, but the combination of current incentives and reduced cost of components creates a window of opportunity that Lotakis calls “pretty phenomenal.”

Bailey notes that people were putting solar panels on their homes before the current incentives were in place, and when the equipment was much more expensive, so he doesn’t think eventual removal of incentives will be the end of solar.

However, he points out that homeowners who wait because they expect the cost to decrease even more as solar technology continues to improve, might miss out on the best opportunity likely to come along.

“People expect it will get cheaper and cheaper over time,” he says. “But right now it’s cheap and you get all this money back.

Construction to start soon on new gymnastics facility in Silverdale development FPH Construction of Bremerton expects to start work soon on a 16,200-square-foot building in Silverdale that will be the new location of Cascade Elite Gymnastics West.

The gymnastics club will be the first occupant in the Newberry Ridge Industrial Park that FPH is developing near the corner of Newberry Hill Road and Dickey Road, just west of State Highway 3.

Cascade Elite, which is relocating from its current leased facility on Kitsap Way in Bremerton, is buying three of eight available lots in the Newberry Ridge project, FPH Construction owner Mike Brown said.

Cascade Elite is paying $2.9 million for the property and the building.

Brown said construction likely will begin sometime in September.

FPH recently got final plat approval for the industrial park, and all utilities are in at the site, which will have access from Dickey Road.

“We are looking for other tenants or buyers,” Brown said. “We have a couple people who have been looking, but nobody is signed yet.”

He said completion of the gymnastics center and landscaping on the site should stimulate more interest in the new industrial park.

The Cascade Elite facility will be a short distance away from another club, Olympic Gymnastics Center at 8511 Dickey Place NW.

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SEPTEMBER 2014 | 9

HOUSI NG | F ROM 4

LANDSCAPE TO SHIFT

Housing Kitsap began discussions with developer Jay Freeland a year ago about purchasing the 27 lots, which comprised the first phase of Silver View.

Housing Kitsap will offer the lots under its Self-Help Housing Program for lowincome families, and expects construction to start in the fall on the first nine homes. The agency recently completed a similar development in Port Orchard, Archer Point.

“When the economy was slow, the construction industry stalled, and we were able to buy plats in South Kitsap because there were plenty available,” said interim director Dean Nail.

“They’re usually all finished — the streets are in, the utilities are in and the plat is already approved.”

Freeland said he is continuing the development of 45 lots on Silver View’s west side and plans to begin construction next May.

Liberty Bay’s Peterson said one aspect that’s slowing down development is a shortage of subcontractors and skilled labor because many of those workers have left the industry. Another is the different lending landscape.

“We’re requiring developers and builders to have skin in the game,” such as having 10 percent of money upfront, she said.

Before the construction bubble burst, it was common for developers to get loans for buying land and permitting.

“It costs a lot to get to that point and financing was very difficult to find when the market was falling because lenders didn’t know where values will end up,” HomeSteet Bank’s Shirley said. “Lenders now want to see approvals in hand and builders have more costs upfront.”

Consequently, developers are being very careful

Q& A | F ROM 7

other design elements do you incorporate into establishing a sense of community in a housing development such as GROW? CUTLER : The whole design is predicated on two grand public spaces that are visually accessible to all of the residents. One space

(more shaded) will be forestlike. The other (more open) space will be for public events and have the community center. Both are intended to provide the opportunity for individuals to participate in the public realm or to just observe from the privacy of one’s dwelling … or to be alone with one’s garden in total privacy.

about new projects. Shirley noted that only nine preliminary plats have been approved in Kitsap County since 2011 — although there are a total of 86 developments in the processing pipeline (with a total of 7,800 lots).

“I’m not aware of new land being developed. Mostly it’s revitalization of old plats,” said Osinski of Kitsap HBA. She said land development is a better indicator of “things to come” rather

than new housing starts.

When there’s a gap in new land development while the demand in home sales goes up, one way to control prices is by building new homes.

“If you’re not building, you create a bubble and drive prices up artificially,” she said. “It’s difficult to correct that in a timely way because land development takes a long time.”

It takes two to three years for new plats to be developed and the limit-

ed number of preliminary plats will impact the market in the near future, said Rush Residential’s Walker, who estimates that about 30 other approved plats in Gig Harbor will start coming into the marketplace soon.

“But land values have to increase before the projects are financially feasible,” he said, echoing Osinksi’s concern that lack of preliminary plats will put pressure on land prices.

With each lot costing

$45,000 to $65,000 to develop, nobody can afford to go forward blindly anymore, OPG’s Rose said, because “you can get stuck quickly when things go cold and they can go cold suddenly.”

“Many of us in the industry are not going to forget the lessons of the recession,” he said.

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RETIREMENT PLANNING | JASON PARKER

A Seahawks defense for retirement Last fall many of us probably remember following the Seattle Seahawks play intense matchups on their way toward the coveted Super Bowl title. Maybe the most riveting of these was against the San Francisco 49ers.

I remember I was at a friend’s house enjoying the game. In the last 30 seconds of the game, I scanned the room. The air was thick with excitement and anticipation, some of the men were sitting on the edge of their seats with their eyes so fixed on the TV screen that you might think they could control the players’ movements with their eyes. Women were nervously speaking under their breath; we couldn’t make it out but some people claim it was prayer.

My friend Brandon sat

on the edge of his chair with his hand buried in a Costco-size bag of Skittles, and I was nervously splitting pistachios to the point where my fingers were on the verge of bleeding. The Seahawks had a 6-point lead and San Francisco was steadily marching down the field.

The 49ers were approaching the Seahawks’ end zone, and it was 1st and 10 at the 20-yard line when San Francisco’s quarterback Colin Kaepernick saw Michael Crabtree in the corner of the end zone. Kaepernick fires a perfect pass to Crabtree. And what seemed like out of nowhere Richard Sherman flies through the air like a super human and blocks Crabtree from making the catch, knocking the ball right into the waiting hands of his teammate Malcolm Smith. And so sealed the win for the Seahawks.

The house exploded in cheers, and I saw guys dancing in ways that should nev-

er be seen in public. Rumor has it that a contractor had to be called out the next day to repair the roof of a house that was shaken off its joists. Hollywood could not have scripted a better ending. What an amazing play, an amazing season and an awesome win.

As I reflect back on the Seahawks’ season I am reminded just how important a good defense is for your retirement plan. When you transition from a career and earning money to retirement and living on your savings, you have to realize what you have is what you have. You are no longer accumulating assets. Unless you want to go back to work 10 or 15 years into your retirement, you need to have a good defensive strategy to protect your nest egg. Once you retire you may be more interested in defending what you have than trying to score the next touchdown. So what is it that you are defending against?

FINANCIAL FOCUS | EDWARD JONES

Protect your retirement against market volatility Article provided by Edward Jones for use by financial advisor Denette Chu of Port Orchard.

As an investor, you’re well aware that, over the short term, the financial markets always move up and down. During your working years, you may feel that you have time to overcome this volatility. And you’d be basing these feelings on actual evidence: the longer the investment period, the greater the tendency of the markets to “smooth out” their performance. But what happens when you retire? Won’t you be more susceptible to market movements?

You may not be as vulnerable as you might think. In the first place, given our growing awareness of healthier lifestyles, you could easily spend two, or even three, decades in retirement — so your investment time frame isn’t necessarily going to be that compressed.

Nonetheless, it’s still true that time may well be a more important consideration to you during your retirement years, so you may want to be particularly vigilant about taking steps to help smooth out the effects of market volatility. Toward that end, here

are a few suggestions: Allocate your investments among a variety of asset classes. Of course, proper asset allocation is a good investment move at any age, but when you’re retired, you want to be especially careful that you don’t “over-concentrate” your investment dollars among just a few assets. Spreading your money among a range of vehicles — stocks, bonds, certificates of deposit, government securities and so on —can help you avoid taking the full brunt of a downturn that may primarily hit just one type of investment.

(Keep in mind, though, that while diversification can help reduce the effects of volatility, it can’t assure a profit or protect against loss.)

Choose investments that have demonstrated solid performance across many market cycles. As you’ve probably heard, “past performance is no guarantee of future results,” and this is true. Nonetheless, you can help improve your outlook by owning quality investments. So when investing in stocks, choose those that have actual earnings and a track record of earnings growth.

If you invest in fixed-income vehicles, pick SEE PROTECT | 11

How about a major health care event? One that does not kill you, but requires you to need some assistance for an extended period of time.

How about inflation? The Federal Reserve, with its quantitative easing and loose money policy, wants inflation. They want your money to lose purchasing power over time.

How about stock market volatility? The stock market right now has been running very hot for several years. Does the market go up forever without a correction? How will a significant correction impact your retirement plans? Marginal income tax rates are at an all-time low yet our national debt is at an all-time high. Is it possible for our country to maintain these low income tax rates when we have 10,000 baby boomers retiring every day and putting more and more of a strain on Medicare and Social Security?

How about a rising interest rate environment?

In the past retirees could buy bonds and live off the income. Today interest rates are near zero percent, and in a rising interest rate environment the bonds you purchase today will be worth less money if you have to sell them before maturity. Understanding the problems you will face can help you craft a defensive strategy to address these concerns.

What’s the purpose of your money? Oftentimes when I ask prospective retirees that question their purpose is usually to help supplement their retirement income, travel and cover unforeseen emergencies. Rarely do I meet a retiree whose plan is to take large withdrawals in the form of a lump sum. If the purpose is for income, wouldn’t it make sense to create a plan that helps you achieve your income goals with the greatest certainty and the least volatility?

When you understand the purpose of your money, you can craft a plan that will help you achieve your goals with confidence. When you

know the risks you can create a defense for retirement to address those risks.

Imagine the Seahawks marching out on to the field with no purpose, no game plan, no coach and no defense. It would be insane.

The same is true for your retirement plan. You need to understand your purpose, hire a coach who can help you win, develop a plan, and craft a good defensive strategy for the risks you will face if you are going to win the game of retirement.

If you really want a sound retirement, figure out how to adopt Richard Sherman and then hire Marshawn Lynch as your personal body guard.

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

His office is in Silverdale.

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.soundretirementplanning.com.

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FINANCIAL FOCUS | EDWARD JONES

PROTECT | F ROM 10

Work to become a better investor Article provided by Edward Jones for use by financial advisor Schelley Dyess of Port Orchard.

On Sept. 1, we observed Labor Day — a celebration of the American worker. Of course, you work hard at your own job, but, when you think of it, every worthwhile endeavor in life requires significant effort — and that’s certainly the case with investing. The harder you work at it, the more likely you are to make progress toward your goals.

So as you think about investing, consider the following areas in which you will need to apply yourself: • Work to identify your goals. It’s important that you know just why you’re investing. Do you want to send your children (or grandchildren) to college? Do you want to retire early?

What sort of retirement lifestyle do you envision? What kind of legacy do you want to leave? Identifying your financial goals is the necessary first step toward achieving them.

• Work to know your own risk tolerance.

It’s essential that you know your own invest-

ment personality — that is, how much risk you can comfortably handle. If you think you can handle a relatively high level of risk, but you find yourself worrying excessively over every drop in the market, you may need to re-evaluate your risk tolerance and adjust your investment habits. Conversely, if you believe yourself to be highly risk-avoidant, but you find yourself frustrated over the relatively low returns you get from conservative investments, you may need to revise your thinking — and your actions.

• Work to avoid bad habits. Many investors chase after “hot” stocks or try to “time” the market. However, hot stocks can cool off quickly, while efforts to predict market highs and lows are doomed to fail — because no one can accurately forecast those points.

You will want to be especially diligent about learning to look past the headlines and beyond short-term price movements in the financial markets, because too many people overreact to these events. If you can avoid these bad investment habits, you’ll be doing yourself a favor.

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• Work to follow a consistent investment strategy. If you invest over the course of several decades, you are going to see a lot of ups and downs in the financial markets.

And when the markets get choppy, you may be tempted to take a “time out” from investing. But if you do this repeatedly, you will certainly interrupt the progress you need to make toward your financial goals. If you can develop the discipline to follow a consistent investment strategy and to keep investing in all types of markets, you have a pretty good chance of “smoothing out” the effects of market volatility over time. And, as a bonus, you’ll be far less likely to concern yourself over day-to-day price fluctuations.

• Work to review your progress. Along with your financial advisor, consistently review your progress toward your goals. Your investment professional should establish your portfolio review frequency and meet with you to discuss your investments at least once a year.

So, there you have it — some ideas on how you can work to be a better investor.

those that are considered “investment grade.”

Don’t make emotional decisions. At various times during your retirement, you will, in all likelihood, witness some sharp drops in the market. Try to avoid overreacting to these downturns, which will probably just be normal market “corrections.” If you can keep your emotions out of investing, you will be less likely to make moves such as selling quality investments merely because their price is temporarily down.

Don’t try to “time” the market. You may be tempted to “take advantage” of volatility by looking for opportunities to “buy low and sell high.” In theory, this is a fine idea — but, unfortunately, no one can really predict market highs or lows. You’ll probably be better off by consistently investing the same amount of money into the same investments. Over time, this method of investing may result in lower per-share costs. However, as is the case with diversification, this type of “systematic” investing won’t guarantee a profit or protect against loss, and you’ll need to be willing to keep investing when share prices are declining.

It’s probably natural to get somewhat more apprehensive about market volatility during your retirement years.

But taking the steps described above can help you navigate the sometimeschoppy waters of the financial world.

12 |SEPTEMBER 2014

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Low-profile local company lands distribution deal with Staples

By Tim Kelly KPBJ editor For a company started by a stay-at-home mom, landing a contract with a national retailer to supply your products to all its stores is quite an achievement.

“It’s kind of a big deal to be in all 1,500 Staples stores across the country,” said Carolyn Hurst, owner of Barker Creek Publishing. “Up to now we’ve been selling almost exclusively through school supplies channels.”

Staples recently picked up 12 of the company’s products for the Classroom Décor section of its stores.

Hurst described the featured products as “things that a teacher or anybody who has a bulletin board would use to decorate a classroom or a staff room or office area.”

Her company already had a relationship with Staples, supplying fashion design file folders sold on the retailer’s website. Last year Hurst made numerous trips to Staples corporate headquarters in Boston, and in December signed the deal to bring the 12 products into retail outlets.

“They were in the process of a major reorganization, and we were up with some of our major competitors in the (classroom supplies) industry,” she said. “They actually downsized the number of suppliers, so we felt pretty special to be still included in the mix.”

Barker Creek Publishing began 20 years ago as a home-based business in Poulsbo when Hurst and her husband, an engineer at Keyport, decided to start a family. She didn’t want to be a mom commuting to her job with a Seattle publishing company, so she started exploring other options.

When her daughter was in preschool, another mom, Kim Stitzer, told Hurst about some instructional materials developed by Stitzer’s mother, Marie Hablitzel, who was a teacher.

“I agreed to take a look at this curriculum, and three months later we decided to

LARRY STEAGALL PHOTOS

Above: Carolyn Hurst (center) with some of her staff at Barker Creek Publishing.

Left: Carolyne Weishaar gets dotted borders ready for shipment. publish it ourselves,” Hurst said.

The “Draw Write Now” books became the flag-

ship product that launched Barker Creek Publishing.

“I mapped out an eightbook series, and set a goal of selling 20,000 copies of the first one,” Hurst recalled. “I told my husband if we can’t sell 20,000, I have a hobby, not a business, and I didn’t want a hobby.”

That goal was surpassed, and “Draw Write Now” remains one of Barker Creek’s more popular items in its line of supplemental learning materials.

After a few years the company outgrew its home location and moved to Silverdale, and expanded its product line by buying a business that made educational magnets. The acquisition of a Texas-based company in 2006 added the classroom décor products and prompted a move to Barker Creek’s current office/warehouse location on State Route 303 in Bremerton.

Hurst said even as the company has grown, the primary focus is still “to design fundamental products that address basic learning skills.”

“There’s a tremendous amount of thought and research that goes into ev-

ery product we design,” she adds. “Everyone who works here has been a mom or a parent or a teacher, as far as our core staff.”

Hurst has only three fulltime employees, but hires 20 or more seasonal workers to help during busy times for shipping products, generally from March through September.

The company that started in the niche market of school supplies is expanding connections with other large companies besides Staples.

Hurst says Starbucks and Nordstrom place orders with Barker Creek, as do hospitals, and a variety of the company’s products are available online through Seattle-based Zulily.

It’s come a long way from a home-based startup, but remains a local business, with everything done inhouse except printing.

“We’re still a small, woman-owned company,” Hurst says. “We’ve been in business a long time but we kind of fly under the radar,” she adds. “I’m sure there are teachers buying our products in the Silverdale Staples that don’t know we’re a local company.”

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SEPTEMBER 2014 | 13

Kitsap Bank’s edg3 Fund finalists set Kitsap Bank announced the five finalists in the inaugural edg3 Fund small business competition. These companies, chosen by a public online vote from a group of 16 semifinalists, will move on to compete in the final phase of the competition, edg3 Fund Live.

The concluding event will be Sept. 10 at 5:30 p.m. at Kitsap Conference Center at Harborside in Bremerton. There, the finalists will present their pitches before a live audience and an independent panel of judges. The winner announced that night will come away with the $20,000 prize.

The finalists for the edg3 Fund Live competition are Monica’s Waterfront Bakery & Café in Silverdale, Moonlight Farm in Quilcene, OlyKraut in Olympia, Pawzii Inc. in Bremerton and With Respect in Port Orchard.

The public is invited to attend edge3 Fund Live on Sept.

10 and support their favorite finalist. Tickets are available at edg3fund.brownpapertickets.com.

MEEGAN M. REID

Jane Ritley and her husband designed and built their Hansville home in the 1980s with logs from their property. Ritley completed a program at Olympic College a few years ago to become a certified sustainable building adviser.

REMODEL | F ROM 5

according to Ritley. She warned that eco-friendly products aren’t always what they seem. Bamboo is a sustainable flooring choice, but not if the company producing it cut down a forest to clear land for the crop.

Since completing and selling the Wycoff house, Ritley has been doing projects for herself and her friends, as well as consulting under the business name Green Sticks & Stones (greensticksandstones.com). As a Master Gardener, she’s also interested in sustainable land-

scaping and has done garden renovations and design.

She said green projects are often a trade-off between affordability and sustainability, but the goal is for everything to be reusable, recyclable or easily returned to the earth.

Kathy McBride, who be-

gan working with Ritley on the Wycoff house and has been her construction partner ever since, said Ritley’s commitment to the environment comes from the heart.

“This truly is who she is,” McBride said. “It’s not a fad for her and that makes a difference.”

14 |SEPTEMBER 2014

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HUMAN RESOURCES | JULIE TAPPERO

Be proactive about retaining top employees Depending on which survey you believe, a significant number of your employees are ready to jump ship. Korn Ferry’s survey says 57.1 percent are, CareerBuilder says it’s 58 percent, and Salary.com pegs that number at 83 percent.

With our local unemployment rate dropping to 5.1 percent, there’s more job opportunity and less qualified competition for positions — meaning your company’s top talent may very well be slipping out the door before you know it.

Rather than just accept that you’re bound to lose your best employees, you can be proactive to retain them. First, you need to know the signs that someone is disengaged and looking for a new position. Second, you need to know what to do to intervene and retain a valued employee.

I once found an employee’s resumé left on the copier. That was a pretty solid sign that she was looking for a new job. Besides something so blatant, though, there are other signs that can be clues to the discontent.

Short-timers syndrome becomes evident when an employee’s performance and attitude changes. They may start coming in late and/or leaving early, avoiding taking on new projects, missing deadlines, or turning in sloppy work. Someone who thinks they won’t be there the next time performance reviews roll around cares a lot less about meeting performance goals. They are

events with their co-workers, and especially less likely to offer ideas in meetings, or to with their boss and other members of mancommit to long-term projects. agement. You may find that they shut their Job hunting takes time, and this can door more often for phone calls, or spend mean taking time off. Your employee may more time whispering furtively. Typically, suddenly have many doctor appointments, this employee will be quieter and more reor need frequent time off. You may notice served than usual during the work day. that their attire is improved on the days You don’t have to bethey have an appointcome the office amament, dressing better teur psychologist to figto impress their future People want to be ure out who is about to employer. check out. There are While I don’t recom- challenged, make some proactive steps mend you stalk your a difference in the you can take. employees on the InStay interviews are a ternet, you may pick up company, know great way to touch base clues on social media or job boards. When I there’s a path forward with your top talent.

Instead of asking them see someone I know im- in their career, and be on their last day why proving their LinkedIn they’re leaving, ask profile and adding new recognized for what them periodically how recommendations to they are doing, what it, I’m pretty sure they they do. frustrations they might are starting to look for have, what’s going well a new job. When people for them, and any feedback they can proare looking for jobs, they often become convide. People want to be challenged, make a nected to recruiters on social media (but difference in the company, know there’s a please don’t stalk my profile on the internet path forward in their career, and be recogeither!) You may even find your employee nized for what they do. Let them know how has posted their resumé on one of the big much you value them, and ask them to give job boards so they can be found by recruityou a heads-up if the grass starts to look ers. It’s hard to keep secrets when you’re greener over the fence. active on the Internet.

Always pay attention to the time. Some An employee who has already left the job people last a certain amount of time on a emotionally, although not yet physically, job before they get the itch for a new chalcan give off certain vibes. They may be less lenge. By looking at an employee’s past job likely to engage in social or team building

Supreme Court rules state can repeal public pension increases

Hospice of Kitsap County expanding its services

SEATTLE (AP) — The Washington state Supreme Court says the Legislature has the right to repeal pension increases paid to state employees that were approved during the stock market boom of the late 1990s.

In a separate ruling Aug. 14, the justices also said lawmakers had the authority to end uniform cost-ofliving adjustments for certain state retirees. Both decisions reversed lower court rulings.

Public sector unions had argued the state violated contractual obligations by revoking the pension hikes and cancelling the uniform cost-of-living payments.

The justices disagreed, saying that in both cases the Legislature reserved the right to repeal the benefits.

Opponents of the increased pension benefits had said if the Supreme Court upheld them it would have cost the state billions of dollars in additional spending in future budget cycles.

The Washington State Department of Health has licensed Hospice of Kitsap County to begin providing private-duty home care under the name Peninsula Health Care. The 35-year-old nonprofit agency will begin providing home care services to current hospice patients immediately, with plans to offer services to the general public by the beginning of 2015.

Hospice of Kitsap County (www.hospicekc.org) is the only hospice provider in the county licensed to provide homecare.

Through Peninsula Home Care the agency will offer supportive, in-home care by licensed healthcare professionals. Services offered include personal care (such as bathing and grooming), housekeep-

ing, meal preparation and more.

Services can be tailored to meet individual needs, including daily, respite or live-in care. Care teams are available 24 hours per day, 7 days per week.

“There is a clear, urgent need for this kind of care in Kitsap County,” said Corrigan Gommenginger, executive director of Hospice of Kitsap County. “I am honored to be able to extend our mission of providing dignity, compassion, and comfort to more people in Kitsap County.”

Michael Norton, LPN, has been hired to manage the new home care program.

history, you may be able to predict how long they’ll be satisfied in their current position. And some positions seem to have a built-in time limit for turnover. By knowing what those time limits are, you can be proactive with your employees to check in, change things up, and re-energize them in order to retain them.

Remember that each employee is an individual, at a different point in his or her career. The motivators change by the person and at the point where they are. For some it may be money, others the advancement opportunity, work/life balance, benefits, or just to feel appreciated and challenged. It’s crucial to not make assumptions or generalizations about how you will retain your A players.

As Seahawks fans, we understand the importance of the team holding on to its A players. But we know that the salary cap limits the total the team can pay overall, that contracts have to be honored by both sides, that negotiations can be difficult and uncomfortable, and that sometimes there are tradeoffs to get just the right balance of players. So we’ve watched some of the top talent leave and management renegotiate contracts with others before their contracts were up. But one thing that has stood out to me is that having a winning team, with highly recognized and respected talent, attracts other great talent to it.

Who doesn’t want to work alongside the best? Keeping your best employees is worth your best effort!

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

Norton is an Olympic College graduate who most recently served as executive director of The Cottage at Cascades of Bremerton.

Peninsula Home Care helps homebound adults to stay active and engaged. The agency can provide transportation to recreational activities and medical appointments, assist with grocery shopping and errands, and make travel arrangements.

For more information about Peninsula Home Care, contact Norton 360-6984611.

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16 |SEPTEMBER 2014

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BUSINESS OPENINGS

A butcher, a baker, ...

New diner and meat shop is a family affair

By Tim Kelly KPBJ editor Betty Walker got out of the restaurant business a long time ago because she was tired of working nights and weekends when her daughter, the youngest of her three children, was growing up.

Now, as she nears her 75th birthday, Walker has opened a restaurant so that her daughter, Cindy Jean Abbay, can ply her trade in the family business.

Abbay, who has grown children of her own, recently completed an Olympic College culinary program. Now she’s putting in long hours helping run the Sweet & Smokey Diner, which opened its doors in mid-August in downtown Bremerton, serving breakfast, lunch and dinner.

The new Sweet & Smokey Diner is on Park Avenue in Bremerton between Fourth and Fifth streets. It’s run by owner Betty Walker, left, her son, Nathan Sultemeier, and her daughter, Cindy Jean Abbay.

LARRY STEAGALL PHOTOS

County gets its first retail pot store

By Tad Sooter Kitsap Sun Before Randy Jones became Kitsap County’s first legal recreational marijuana seller, he worked for eight years as a demolition worker.

It was a solid union career with a stable future, one Jones walked away from to test an industry where nothing is guaranteed, not even access to the product he’s selling.

His Crockpot store in Port Orchard, the first in the county to be licensed under the state’s legalized marijuana law, opened Aug. 24 with a few pounds of pot in stock. If other marijuana store openings in Washington this year are any indication, the Crockpot debut will be greeted with long lines of patrons and the shelves will empty quickly.

Jones is taking nothing for granted.

“I have no idea what to expect,” the 27-yearold said before the store

opened, as he put finishing touches on the interior of his sales floor.

Jones dealt with plenty of uncertainty since he began drafting his application for a marijuana retail license nine months ago. He had to find a viable location, working within a shifting landscape of state-imposed buffer zones and local ordinances. Many potential landlords turned him away before he finally secured a storefront at 1703 SE Sedgwick Road.

“Finding a location is like a needle in a haystack,” he said.

Jones passed the Liquor Control Board vetting pro-

cess, submitting to background checks and financial probes. And he got lucky in the state retail lottery. Crockpot placed second out of 40 applicants vying for one of seven licenses available in the county at large.

More state and local inspections followed at the 2,300-square-foot store before he earned the licenses needed to open.

“There were so many hoops we had to jump through,” Jones said. “Nothing was easy.”

No other retail stores have been licensed in the county. More are expected SEE POT STORE | 25

The place provides a similar opportunity for Walker’s son, Nathan Sultemeier — a skilled butcher who “knows how to take it from the hoof to the table” — to run his own smoked meat shop.

“This is the first time he’s actually working for himself. He’s always produced all this for somebody else,” Walker says, standing by the diner’s display case filled with smoked pork, turkey, ham, two kinds of bacon, various sausages, salami and beef jerky.

Sultemeier, who’s worked in various butcher shops, including Farmer George’s in Port Orchard, shows a visitor ribs, brisket and chicken grilling outside the diner’s back door on a hefty barbecue he and his brother made from an old oil drum.

He’s won numerous awards at the Northwest Meat Processors Association annual conventions, but Sultemeier says he actually tried to talk his mother out of the idea of opening a restaurant; told her it would require “too much money, too much work.”

Yet here he is, having installed a large commercial smoker that he bought 20 years ago and recently re-

Cindy Jean Abbay, who completed the culinary program at Olympic College, makes special-order cupcakes in the kitchen of the new Sweet & Smokey Diner. acquired from a former employer who was no longer using it.

He’s content to stay in the background of the operation providing the meat, while Abbay handles the baking and prepares salads and side dishes.

Their mother’s first restaurant job was at a drugstore lunch counter in San Antonio, Texas, in the 1950s, and Sweet & Smokey has a couple nods to that era. There’s a fried bologna sandwich on the menu, and customers can indulge in a banana split.

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BUSINESS OPENINGS

New hardware store is Henery IV for owners

MEEGAN M. REID

The Henery Do it Best Hardware store opened Aug. 1 on Wheaton Way in Bremerton.

The owners of Henery Do it Best Hardware won’t mind if you call them oldfashioned. That’s their business model at the store that recently opened at 3449 Wheaton Way in East Bremerton.

“It’s a level of service from the 1950s,” said Matthew Henery, who opened the store with his wife, Tara. “People’s idea of what service was back then was real service. ... We’ll hold your hand and walk you through it from A to Z.”

Car dealer holds grand opening for Poulsbo lot Hudson Motors put all its eggs in one basket for the grand opening of the company’s third used car lot.

Owner Darrin Hudson brought nearly all the cars from his two Bremerton lots to the new location in Poulsbo on Viking Avenue for the Aug. 14 grand opening.

Hudson planned to keep his entire inventory of nearly 200 cars on the Poulsbo until the end of the month.

“We’re going to try to sell as many cars as we can in that time period,” he said.

“We want to sell 100 cars (in August), which would be a pretty amazing feat.”

The Poulsbo lot — on part of the former Courtesy Ford dealership site — started selling cars this spring, DI N ER| F ROM 16

says. “That’s why I have ice cream in here because I still miss that aspect of restaurants. Hardly any of them do hard ice cream anymore.”

It’s been four decades since Walker last worked in a restaurant. In the interim she became a successful Mary Kay consultant (still has a pink Pontiac in her garage), and then got involved with Agapé Unlimited.

The nonprofit agency formed in Bremerton in 1985 to offer a drug and alcohol treatment program for women. Walker helped start Agapé’s transitional housing program in Port Orchard for pregnant women.

She says was devoted

MEEGAN M. REID

Darrin and Carolyn Hudson at the grand opening of their Hudson Motors used car lot in Poulsbo.

but Hudson said it took a couple months to have the site landscaped, paint the building and replace all the former dealership signs with their new ones.

Hudson opened his first used-car lot on Loxie Eagans Boulevard in 2007, and a second Bremerton location on Callow Avenue four years ago.

“24/7” to the program, but that took a toll after a few years.

“My heart failed,” she says, adding that doctors didn’t consider a 55-year-old woman to be a good candidate for a heart transplant.

“The doctors didn’t give me three years, at that point,” she recalls. But Walker, who’s still on the board for Agapé, has endured. “Between God and modern medicine, I’m still here 20 years later, starting a new adventure with my kids.”

To finance that adventure, Walker says she sold a house in Palm Springs, Calif., where she and her husband had lived in retirement. After her husband’s death in 1999, however, she

moved back to Bremerton.

She’s invested a lot in a four-month renovation of the double-storefront space at 419 Park Ave. for her diner.

“I’ve put close to $200,000 into this building already, and I don’t even own it,” Walker says.

She’s confident the family-run diner and meat shop will be successful, though, because “we’ve got a product that I know this community enjoys.”

“It is a family affair,” Abbay says, noting that her daughter-in-law is her right hand in the kitchen.

She sums up their new venture: “I wanted a bakery, Nathan wanted a butcher shop and Mom wanted to feed people.”

The store opened in a 26,000-square-foot space formerly home to Value Village. It’s the largest of the Henery family’s four Do it Best stores, which include locations in Port Townsend, Quilcene and Kingston.

Henery said his company and the Do It Best corporate office studied the East Bremerton market for six months before taking the

plunge on the new location.

Beyond the potential for sales, Henery said he wanted to locate the new store where it could become the center of a neighborhood.

Wheaton fit that profile.

“We want to be in an area where we can be the local, community hardware store,” he said. “We want to be the local hangout place where people can come and

feel comfortable.”

The location also has sentimental value to the Henerys. Matthew’s father, Mike, who opened the family’s first store in Port Townsend, was raised in Bremerton.

Henery said his family would like to keep expanding its hardware business in the West Sound, but the East Bremerton store will keep them busy for now.

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PEOPLE IN BUSINESS Gig Harbor builder garners national recognition Adam Clark, vice president of Choice Construction of Gig Harbor, has been named one of the 40 Under 40 for 2014 by Professional Remodeler Magazine, a leading industry publication serving the home improvement and remodeling market.

The 40 Under 40 designation recognizes the industry’s rising stars, particularly those with the potential to drive business forward and incorporate innovative technology and service.

Clark, who operates Choice Construction with his father, launched the company’s remodeling division and instituted the collaborative design/build selling process. Homeowners can log into the company’s website to review daily updates on their building project.

Choice Construction (www.choice-construction.com) also had two custom homes it built — one in Gig Harbor and one in Sammamish — selected by KOMO-TV for the 2013 Homes of Distinction tour.

Kitsap Bank promotes staffer to Kingston branch manager Kitsap Bank announced the promotion of Lael Alecci to branch manager of the Kingston branch. She has been a senior financial

service specialist for three years, and joined the bank in 2003 as a teller.

“Lael is a tremendous asset to the Kitsap Bank team,” said Marlene Mitchell, vice president/regional operations manager. “She is knowledgeable, enthusiastic, and committed to providing our customers with the highest level of service.” Lael Alecci

tensive experience in lending, and managing valuable client relationships,” said Kelly Liske, executive vice president/chief banking officer.

First Federal has nine full-service branches in Clallam, Jefferson and Kitsap counties and a lending center in Whatcom County.

First Federal hires new director of lending

Debra Linn Allbee, who operates a Farmers Insurance agency in Poulsbo, was among the recipients of the company’s 2014 Championship awards.

The Championship recognition is given

First Federal has hired Donn Wiley as Vice President, Director of Lending, to represent the bank in all of its market areas; Clallam, Jefferson, Kitsap and Whatcom counties.

Wiley, who will be based in Port Angeles, previously was an executive with Heritage Bank in Portland, and prior to that managed four commercial lending centers for Umpqua Bank in Salem, Donn Wiley Oregon.

He brings over 30 years of experience in lending management, client relationship development, portfolio diversity, loan structures and analysis.

“We are pleased to add Donn to our growing team at First Federal. Donn brings ex-

Poulsbo insurance agent receives award from Farmers

to the top 10 percent of all Farmers agents nationwide for achieving business success in client development and service.

Allbee is a third-generation owner of her Farmers Insurance and financial services agency, which has served the community since 1947. She offers all types of Debra Allbee bonds and insurance products as well as IRAs, rollovers and college plans.

Her office is on Jensen Way next to the post office in downtown Poulsbo. Her website is www.KitsapCountyInsurance.com.

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PEOPLE IN BUSINESS Bremerton Chamber president leaving for new job in Silverdale Bremerton Chamber of Commerce President and CEO Michael Strube will resign in September, following a fouryear stint with the organization.

Strube, 44, has taken a sales and marketing job with Dex Media in Silverdale.

“Bremerton is an exciting and vibrant city” Strube said in a news release. “ I truly (valued) and enjoyed my time with the Chamber, I am very proud of the good work that has been accomplished in my time there, and still plan on being a huge part of Mike Strube our community.”

Strube, who worked for Costco for almost two decades, joined the chamber in 2010 as its marketing director. He was promoted to CEO following a chamber reorganization.

He sits on the advisory board of the Bremerton Salvation Army and is a Bremerton planning commissioner. He also ran for Bremerton City Council last fall, losing in the third district race won by Jerry McDonald.

There’s been no word as yet on who might replace Strube.

He will stay in the office until Sept. 5.

Paratransit Services recognizes employee’s 25 years of service Transportation specialist Jean Spreng was recently honored by Paratransit Services for her 25 years with the nonprofit.

Spreng, a Bremerton native and graduate of Olympic High School, started with Paratransit in 1989 as part of the non-emergency medical transportation staff at the company’s call center and headquarters in Bremerton.

Over the past 25 years she has worked in several capacities, including billing, customer service representative, brokerage assistant, and her current position as transportation specialist.

She has witnessed firsthand how changes in technology have modernized the transportation brokering process.

“When I started, the call center had just switched from manually scheduling rides using rubber bands and index cards, to computer workstations running new scheduling software,” she said.

During a recognition ceremony on July 22 at the Bremerton call center, Paratransit Services president/CEO David Baker presented Spreng with a 25-year pin and other gifts, and expressed appreciation for all her contributions to the company.

Port Orchard CPA office hires former basketball standout Accounting firm Southard, Beckham, Atwater & Berry has added Derek Burk to its staff of CPAs. Burk has a bachelor’s degree in accounting and business from Central Washington University, and he is currently working toward a master’s in taxation from Golden Gate University.

He joined Southard, Beckham’s Port Orchard office after working three years at a local branch of a national accounting. His skill set includes corporate, partnership, individual, trusts, and estate tax returns for both federal and state income taxes.

Burk was raised in Port Orchard and was a standout basketball player at South Kitsap High School, going on to two years of college basketball at Northwest Nazarene University in Nampa, Idaho.

He can be reached at 360-876-4491 or dburk@sbabcpa. com, or by visiting www.sbabcpa.com.

SEPTEMBER 2014 | 25 from growers in Eastern Washington. They’re still to open in late summer or Kitsap County’s first negotiating a secearly fall. licensed recreational ond shipment.

Even with the business marijuana store is at 1703 Jones declined fully approved, Jones and SE Sedgwick Road in to name his pricstore manager Colette Port Orchard. The store es, but he said the Thomas still face challenges. can be found at www. low supply has Demand from the more than facebook.com/crockpot420. forced licensed 40 state-licensed stores easCustomers must be 21 or retailers to sell ily overwhelmed the supply older. their product at available from approved pot well above what growers. it’s sold for illegalIt took Jones and Thomas ly. Costs should fall as more growers several weeks to secure their first stock come online, he said. of marijuana, sourcing three strains POT STOR E| F ROM 16

CROCKPOT

“This time next year I think it should be pretty competitive with the black market,” he said. “Right now it’s supply and demand.”

Visitors to Crockpot will be welcomed into a tidy store, reminiscent of a bank lobby. Clerks sell marijuana from behind a row of secured windows. A glass case displays pipes, lighters and other paraphernalia for sale.

There’s an ATM near the entrance where patrons can withdraw cash for purchases (few banks will grant accounts to pot stores, so credit cards aren’t accepted.)

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BUSINESS COMMENTARY | DON BRUNELL

Pity the poor streamers Every day, birds flying near a certain spot on the California-Nevada border are incinerated in midair. They’re called “streamers” for the puff of smoke that appears as they ignite and plummet to the ground. Federal wildlife investigators estimate there’s one “streamer” every two minutes.

What’s causing this?

The birds are falling victim to a massive solar energy installation in California’s Mojave Desert. Launched last year, the $2.2 billion facility is the world’s largest plant to employ power towers. It sits on 4,000 acres of public land that is home to the threatened desert tortoise.

More than 300,000 mirrors, each the size of a garage door, reflect solar rays onto three 460-foot towers. The water inside the towers is heated to produce steam, which powers turbines that generate enough electricity for 140,000 homes.

The reflected sun rays are bright enough to interfere with commercial airliners flying between Las Vegas and Los Angeles — and powerful enough to heat the air around the towers to a temperature of 800 degrees, incinerating birds in midair.

Experts think the light generated by the solar array attracts butterflies and other insects, which in turn attract the birds.

The Center for Biological Diversity estimates the annual death toll as high as 28,000 birds. U.S. Fish and Wildlife officials say the power-tower style of solar technology holds “the highest lethality potential” of all the solar projects being developed in California.

Nevertheless, the facility’s developer, BrightSource Energy, is seeking permission to build another power-tower solar installation with a 75-story tower between Joshua Tree National Park and the California-Arizona border. The location is in the flight path of protected golden eagles and

peregrine falcons and is home to more than 100 other species of birds.

The Audubon Society says that, before granting any new permits, officials should track bird kills for a full year, including during the annual migration. But California Gov. Jerry Brown is resisting calls to slow or stop development of the power-tower solar installations.

There appears to be a double standard when it comes to the environmental impacts of renewable power.

Massive solar farms encroach on thousands of acres of habitat for the threatened desert tortoise, yet the installations are allowed to go forward — assisted by billions in taxpayer loan guarantees.

In contrast, the Bureau of Land Management cordoned off 400,000 acres from energy development in Utah and Colorado in anticipation of a listing to preserve the Gunnison sage grouse. Wind turbine blades rip through federally protected golden and bald eagles and other raptors, but rather than fine the industry, the Obama administration quietly expanded their permits.

Meanwhile, in Alaska, the Interior Department prohibited a remote fishing village from building a gravel road, saying it would

affect eelgrass that serves as a way-stop meal for migratory birds. Village spokesperson Della Trumble noted, “We’d have much less impact on the birds with our road than these wind farms have on the eagles.”

Yes, we need renewable energy. But we also need oil, natural gas — and yes, coal — if we are to meet future energy demands.

And they should all play by the same rules.

Here’s an idea: Rather than spend billions of taxpayer dollars trying to regulate the coal industry out of business, use some of that money to support development of zero-emission coal plants like China is doing with its GreenGen project.

Rather than use the bureaucracy to strangle the Keystone Pipeline, let it be built. We could use the jobs and the economic boost it will bring. The same goes for biomass and natural gas.

Double standards for energy and turning a blind eye to solar and wind turbine kills are no longer acceptable.

• Don C. Brunell is a business analyst, writer and columnist. He recently retired as president of the Association of Washington Business, and now lives in Vancouver. He can be contacted at theBrunells@msn.com.

BUSINESS BRIEFS PSE replacing two towers, power lines at Agate Pass Puget Sound Energy has begun an electric system improvement project at Agate Pass between the north end of Bainbridge Island and the Suquamish area of Kitsap County. Over the coming months, two lattice steel towers will be replaced with four weathered steel poles, and two existing transmission lines will be replaced.

Work crews are moving equipment into position this week, along with removing some trees and clearing brush. The construction will begin after Labor Day weekend.

The rusty lattice towers currently in place were built in the 1960s, and have reached the end of their lifespan. These towers are crucial to Bainbridge Island since they support the only two medium-capacity transmission lines that carry power from the mainland.

Not only will the new 140-foot poles be stronger than the existing lattice towers, but separating the two lines so they’re not on the same structure will improve system reliability.

Construction Timeline • Week of Sept. 1: Tower foundations put into place, a process expected to last up to eight days. The concrete foundations need to cure for up to four weeks before the new poles can be set.

• Early to mid-October: New steel poles are fit into position. New transmission wires are then strung, and work begins on tearing down the old lattice towers.

• Late October: Construction and installation is expected to be completed.

• Mid-November: Worksite restored to its original condition There will be intermittent traffic delays during construction, including some road

closures that could take up to an hour or longer. PSE will try to provide ample notice of any traffic disruptions around Agate Pass.

The latest updates about the project can be found at psebainbridge.com/news.

Library’s 3D printer featured at technology group’s event 3D printing has gone from sci-fi fiction to becoming a rapidly growing industry.

As the technology continues to develop, 3D printing is changing the way we think about manufacturing, medicine, science and many other fields.

From backyard innovators and builders to artists and researchers — this technology has unlimited possibilities. Even NASA is taking 3D printing to the final frontier.

Learn about this emerging technology and its interesting applications from Kitsap Regional Library’s Leigh Ann Winterowd and Seth Ciotti, at a West Sound Technology-sponsored event Sept. 18 in Poulsbo.

KRL has acquired a 3D printer through its BiblioTEC program, funded by the Paul G. Allen Family Foundation. Winterowd, manager of the Sylvan Way branch in Bremerton, and Ciotti, the teen technology librarian for the KRL system who facilitates BiblioTEC programming and events, will discuss the growing trend as well as how 3D printing can be used in STEM education. They will also describe some of the BiblioTEC projects at KRL. A hands-on demonstration space will be set up so participants can try out the 3D printer and other fun new technology.

The presentation will be Thursday, Sept.

18, from 5:30-7 p.m. at Poulsbo City Hall, 200 NE Moe St. The event is free for WSTA Members, and $10 for future members.

For more information or to register, visit westsoundtechnology.org.

Port Orchard shopping center sells for nearly $21 million A Port Orchard shopping center, anchored by Safeway and Big Lots, sold recently for $20.8 million.

The Bethel Junction center had been for sale, off and on, since the fall, said Sean Tufts, a partner with commercial real estate firm Pacific Capital.

The property changed hands between

two California companies. Garrity Group of San Diego bought the property, Tufts said. Tavitac Corp. of Los Angeles was the previous owner, according to county assessor’s documents.

Tufts said he believes the sale marks the first time a retail center anchored by a grocery store has sold in Kitsap in more than a decade.

The 157,500-square-foot shopping center, situated on 14 acres at the southeast corner of Bethel Road and Lund Avenue, was constructed in phases in 1989 and 1998. The property and buildings were assessed at $15.8 million for 2015.

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BUSINESS STRATEGY | DAN WEEDIN

Does ‘tastes like chicken’ describe your business?

I remember attending a Wild Game Dinner fundraiser several years ago replete with exotic hors d’oeuvres featuring animals that I was most familiar watching roam the prairies and jungles on the old television series, Wild Kingdom. They served antelope, wild boar, alligator and cougar (which struck me as ironic as a Husky alum). The one thing that I most remember of the experience was hearing the servers proclaim about almost all the offerings, “Don’t worry… it tastes like chicken.”

That adage has become a part of American culture, whether you’re describing frog legs, kangaroo, or cane toads. Chicken has become the generic standard that we base all other meats on. If it tastes like chicken, we are “safe.”

Here’s the problem. If everything tasted like chicken, it loses that joy of adventure and curiosity. It becomes stale and uninteresting. It’s just chicken.

The very same problem can happen to you and your business. If your customers and target market consider you to “taste like chicken,” then you’ve sunk into the abyss of ordinary and generic. You’re boring. When that happens, your viability is

as threatened as a chubby chicken wandering aimlessly on a poultry farm. Dead meat walking.

How do you know if you “taste like chicken?” Consider these three signs: 1. You have no new clientele. The same people and businesses use your products and services, yet nobody new seems interested in your work. This appears to be success, yet it’s a fatal trap. No new blood means no energy, no interest, and no sustainability.

2. You haven’t produced anything new in years. Whether yours is a service or product, stagnation is a killer. The world-renowned speaking coach Patricia Fripp has said that sameness is the enemy of a speaker. Sameness is also the enemy of a business. No innovation leads to decline.

3. You live in a culture of “same old, same old.” If that’s your mentality when you get up and go to work; if it’s the mentality of your employees; then you’ve got a serious problem. In the rapidly moving business world brought about by escalating technology and global thinking, being in “same old” mode will get you run over. That chicken trying to cross the road today can’t take the same path he did 10 years ago or he will be roadkill.

If any of these signs pervade in your company or in you, then you’re probably begin-

Rain garden workshop offered for landscape and building professionals

ed, many coming from outside the county.

The lineup of speakers will feature expert researchers in the field of Low Impact Development, experienced landscape professionals, representatives from local agencies and others to answer questions.

The class is available for total of 11 Certified Professional Horticulturist (CPH) and Certified Landscape Technician (CLT) credits. A new benefit this year is that the workshop counts for eco-Pro credits. 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 and can be accessed at ext100.wsu.edu/kitsap/nrs/ rain-garden-program/professional-raingarden-workshop/

The 2014 Professional Rain Garden Workshop presented by WSU Kitsap Extension will be held in Bremerton in October for green industry professionals. The two-day workshop will cover the design and installation of rain gardens, including a wide range of topics such as benefits, regulations, site analysis, hydrologic modeling, materials specifications, maintenance and the latest on regulatory updates on these Low Impact Development (LID) features.

This popular class is in its fourth year and more than 60 professionals from a wide variety of backgrounds have attend-

ning to smell like the chicken dinner your grandmother used to prepare. Here are five strategies and tactics that you can implement immediately to mix up the menu to bring new flavors and add spice to your world and to your customers: 1. Create new intellectual property or products. Remember what I said about “sameness?” I don’t care what you do or what industry you’re in, you can create something new and exciting to offer your target market audience. It might be a workshop, a newsletter, a free webinar, or a new product that you created to help them when they didn’t even know they needed help! It doesn’t matter initially how successful it is.

What really matters is that you have something new to talk about.

Do something different than what everyone else is doing!

2. Boost your marketing. In the height of the recession, many small businesses hunkered down and hoarded cash for fear of running out. One of the areas they stopped was marketing. It should have been where they placed MORE resources. Boost your marketing by utilizing more technology, ask for more referrals, send out more press releases, seek out more interviews, and attend more networking events.

3. Fix your own swing. My golf swing is terrible right now. I’ve been golfing for over 30 years and it’s time to get it fixed, so I need a lesson from a pro. Regardless of how long you’ve been in business, you can use your own “swing fix” from a professional coach or mentor. In fact, the longer it’s been since you’ve had one, the more you will need it! You can’t be brilliant or as creative by yourself. Seek help and utilize it to maximize your talent and opportunity. It’s The workshop will take place on Thursday and Friday, Oct. 16-17, from 9:30-4:30 p.m. at a location to be determined. Early registration by Sept. 5 deadline is $60 per day/$100 for both days; after that it is $85 per day/$150 for both days. Box lunch and beverages are included when registration is paid by Sept. 29.

To register online visit kitsap.wsu.edu.

For more information, contact Colleen Miko at cmiko@co.kitsap.wa.us or 360-307-4378.

Local painter opens new art gallery in Poulsbo The Carrie Goller Gallery opened in August as Poulsbo’s newest art gallery.

A ribbon-cutting celebration was held

worth the investment.

4. Get out of the office. We’ve become too tied down to our desks due to technology. Email has changed how we communicate in good ways (speed of information) and bad ways (stopped actually talking to people). Get out and see people face to face.

Visit your best clients and customers. Make phone calls to those that you can’t readily see in person. Business is still about relationships. Remind them of what you look like.

5. Change the culture. If the chicken taste has seeped into your workforce, it’s time to shake things up. How do you do this? Simple. Make work more fun by challenging your employees to create new things; help them grow personally and professionally; and offer mentoring to them to help them more rapidly succeed.

Bottom line — if you are perceived to be chicken, your goose is cooked. The business world demands difference and innovation, speed and accessibility, and technological sophistication and savvy. These are now becoming the new normal and those norms will continue to change and evolve just like menus in the finest restaurants in the world do. Does your business taste like chicken? If it does, don’t despair. You can always change the menu as long as you have the courage to do so.

Who’s hungry?

• Dan Weedin is a strategist, speaker, author and executive coach. He helps business leaders and executives to become stronger leaders, grow their businesses, and enrich their lives. You can reach him at 360-6971058; e-mail at dan@danweedin.com or visit his web site at www.DanWeedin.com.

Aug. 7 at the gallery at 18801 Front St. It features a wide selection of small to large contemporary paintings by Goller, a local artist.

Through September a display of encaustic/mixed media landscapes and seascapes will be shown, along with encaustic folk art, oil landscapes and still life, plus smaller mixed media works featuring Pacific Northwest locales.

The new gallery is also part of the Historic Downtown Poulsbo Second Saturday Art Walk. The next one is Sept. 13 from 5-8 p.m.

Regular hours at the gallery (www.CarrieGollerGallery.com) are Wednesday through Sunday from 11 a.m. to 5:30 p.m. and by appointment. For more information, call 360-779-2388.

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BUSINESS OPENINGS

A record start: Audio shop moves to new site

By Tim Kelly KPBJ editor In a digital age, Erik Owen is a throwback.

The former Peace Corps volunteer’s business, Gig Harbor Audio — which recently moved to a new location on Judson Street a block off the downtown waterfront — sells new and used record albums, as well as turntables for playing them and an array of high-end stereo components.

During the Thursday Night Out downtown promotion on Aug. 14, Gig Harbor Audio hosted a wine tasting and live jazz. The performance by Bebop Co-op was recorded using what Owen called “an old-school Akai reel-to-reel” tape recorder, but the band was to get a digital version of their in-store gig.

“It’s really pretty good sound, with no editing or mixer boards,” Owen said of the reel-to-reel recording.

It was the fourth live music session recorded at Gig Harbor Audio’s new store.

Owen moved the business, which opened in 2012 on Soundview Drive, to 3019 Judson St. this spring after buying the property, which includes two separate buildings.

The property had a lot of vacant space when Owen bought it. The only tenants were a hair salon and photography studio on the ground floor and second story of the converted house at the front of the property. Now, there’s a silkscreen boutique (which makes Gig Harbor Audio’s T-shirts) in the lower level of the house, and the second floor above Owen’s store in the rear building is the office of an HVAC company.

“This is a way better location; lots more open space,” Owen said of moving his store.

PHOTO COURTESY GIG HARBOR AUDIO

Erik Owen, left, and Matt Silberstein are owners of Gig Harbor Audio, which sells high-end stereo systems and new and used record albums. The store recently moved to a new location on Judson Street near the waterfront.

He remodeled the space with help from Casey Pritchett, an old high school friend from Gig Harbor who’s worked as a special effects technician for the TV series “The Walking Dead” and numerous movies.

The long, rectangular interior evokes a 1970s vibe (a Jimi Hendrix poster adorns the bathroom wall), but not in a campy way.

There are bins of vinyl LPs to flip through, an eclectic collection encompassing Sam Cooke to Radiohead, all pristinely packaged in clear plastic sleeves. There’s also a display of stereo systems including one with a red arrowhead-shaped turntable, a side

room for repairing audio components (Owen used to repair turntables as a hobby) and another for use as a listening room.

Owen buys new records directly from labels such as Sub Pop Records in Seattle, Mobile Fidelity Sound Lab and others. He also bought the entire inventory of a couple Tacoma record stores that closed, and Gig Harbor Audio has amassed a vinyl collection estimated at 80,000 albums.

“We have way more vintage gear than we have space for,” Owen said.

He also sells locally manufactured, welded metal speaker stands at the store and

Original Spiro’s owner back home in Bremerton to open new place

By Tim Kelly KPBJ editor History is repeating itself for Susan Baker as she prepares to open a Spiro’s Pizza and Pasta restaurant in Bremerton.

“I opened the first Spiro’s on Sylvan and Wheaton Way in 1982,” she said.

In the three decades since then she’s opened other Spiro’s locations in Port Orchard, Silverdale and Gig Harbor, although the only one she still owns is Gig Harbor.

Before the original Bremerton restaurant opened, Baker’s first husband worked for a Seattle pizza parlor owner named Spiros Aliagas.

“When we lived in Seattle on Queen Anne and used to go there, we used to say let’s go to Spiro’s, we didn’t say let’s go to Olympia Pizza,” Baker recalls. “So we named (our restaurant) after him, because he really did mentor us.”

Spiro’s is not a franchise, although the

former mentor later opened three restaurants under that name in the Seattle area.

The last time Baker opened a new restaurant she was unable to use the Spiro’s name because of a divorce agreement with her ex-husband, who operates the Silverdale Spiro’s with her son.

“At that point I had Bremerton, and he had Silverdale” when they divorced, she said.

The agreement stipulated Baker could open another Spiro’s only in Bremerton or further south, but she later set her sights on Poulsbo. In 2006 she opened a restaurant there with basically the same fare but a different name, Stella’s.

The Poulsbo venture hadn’t been around long when the economic downturn hit, but Baker said she “pulled it through the recession.” However, when her current lease expired this spring, she couldn’t reach a satisfactory renewal agreement with the landlord, and Stella’s closed at the end of March.

Susan Baker, left, stands with employee Laura Cole in front of the new Spiro’s restaurant Baker is opening in Bremerton.

“That was very, very sad, because we really did have wonderful customers up there,” she said.

That’s the long and winding road that led Baker back to Bremerton, where the new Spiro’s at 3329 Kitsap Way is actually close to her home.

She’ll have plenty of familiar faces around, since her staff of about 20 at the new place will include many of her employees from Stella’s.

online. Gig Harbor Audio’s newest deluxe stands, manufactured by 3V Precision Machining in Tacoma, are made of Delron, a hard thermoplastic that doesn’t vibrate or absorb sound from the speakers.

“They’re $1,000 a pair, and these speakers (on a store display) are about $6,500 a pair,” Owen said. “When you spend that much on a speaker, what’s holding it up is pretty important.”

Matt Silberstein was the North American sales rep for companies in the hi-fi component industry, and he was impressed at his first meeting with Owen to check out his speaker stands.

“I realized this is a guy who really gets the audio industry, the way it used to be,” Silberstein said. So he and his wife, who’s from Seattle, moved from Denver to Gig Harbor and he became a partner in Owen’s business when it relocated this spring.

For both partners, the business venture was a shift away from traveling a lot for their jobs.

Owen, who grew up in Gig Harbor, was an English teacher with the Peace Corps in Russia. That led to an extended stay in Central Asia as a journalist and later as a business consultant.

He married a Russian journalist and they have two daughters. Owen, who turns 44 this month, said he decided a few years ago to settle in his hometown with his family and start a small business.

“I was tired of flying back and forth four times a year,” he said, though he maintains some business ties in Central Asia.

His years living and working on another continent enhanced his appreciation of the community where he was raised.

“There’s no better place; I love Gig Harbor,” he said. “Until you see other places, you don’t realize what you have. This place is killer.”

“The real reason, I’d say, that I’m doing this again — because I’ve done it a lot of times and I know how much work it is — is that I’m keeping most of that staff,” Baker said. “Almost all my cooks and all my wait staff are going to be my staff here.”

That will greatly reduce the employee training, she noted. “All of those people that are coming here have all worked for me since we opened at Stella’s.”

The building she’s leasing in Bremerton last housed Los Cazadores, a Mexican restaurant that closed last year. Baker said much of the kitchen equipment was in poor condition, so it was replaced with equipment she moved from Stella’s.

The Kitsap Way location features a separate dining room that can be used for groups, and it has an outdoor patio.

During renovation of the building — overseen by her husband, Tim Baker, who owns Baker Electric — an unexpected discovery required replacement of rotted areas in the exterior walls where a walk-in cooler was built into a rear corner of the building.

A temporary walk-in cooler was set up behind the restaurant, and the repair work wasn’t going to delay the restaurant’s opening planned for late August.

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REGIONAL ECONOMY | JOHN POWERS

Second Tuesday forum … rapidly becoming first priority Looking for a first-rate market briefing, and lively exchange on leading regional business issues?

If so, I invite you to join a growing crowd of your business peers the second Tuesday of each month at the Kitsap Business Forum. The KBF is held at the Morgan Stanley Conference Center on the third floor of the Cavalon Building, 2011 Northwest Myhre Road in Silverdale, from 7-9 a.m. the second Tues-

day of each month. Agendas are posted at www.kitsapbusinessforum.com.

The KBF is a cohort program of Kitsap County business organizations aimed at connecting business leaders to new resources and relationships via a free monthly program delivering up-to-date market intelligence and strategic information to enhance business success and opportunities across Kitsap.

Started by the Silverdale Chamber of Commerce in 2013 under the leadership of Kathleen Knuckey, Kevin Wiley and Dave

Kitsap Bank reports increased earnings for first half of 2014

takis, Kitsap Bank’s chief executive officer.

“We are pleased to see growth and positive trends in the communities we serve.

“Kitsap Bank continues to be healthy and strong. We are focused on providing financing for business growth and expansion, as well as land development and construction projects. In short, we have money to lend.”

During the second quarter, the bank completed construction of their new East Bremerton branch, replacing the previous facility that had been in place for over 50 years. Kitsap Bank also finished the first phase of its inaugural edg3 Fund small business competition, announcing 16 semifinalists from throughout Western Washington.

Olympic Bancorp, parent company for Kitsap Bank, announced a 14 percent increase in profits for the first half of 2014.

The company reported year-to-date income of $3.2 million, up $392,000 over the same period in 2013.

Loans grew 4.1 percent to $446 million and deposits increased 4.9 percent to $846 million during the same period. Assets for the corporation totaled $961 million on June 30.

“As the local community bank, our results are a reflection of the steady recovery taking place in our markets,” said Steven Poli-

Mitchell, the KBF was expanded in 2014 to include the Kitsap Economic Development Alliance, Excell Puget Sound, and all Chambers in Kitsap County.

Year to date, over 300 business leaders have attended Kitsap Business Forums, and participated in discussions led by dozens of Kitsap’s senior business and community leaders, such as Shannon Bruce, Julie Tappero, Jim Morrell, Scott Bosch, Elliot Gregg, Dan Diamond, Clarke Whitney, John Kenney, Steve Hayes, Bob Guyt, Ed Hallda, Monica Blackwood, Samantha Powers, Dave Mitchell, Jon Rose, Russell Steele, Leslie Chamberlain, Steven Gear, Linda Streissguth, Patty Lent, and Derek Kilmer.

Just last month a full house of over 60 community leaders engaged elected officials in a lively discussion of governments’ roles and responsibilities in partnering with the business community to promote The top five edg3 Fund finalists will be chosen by the public through an online vote. These finalists will be announced on Aug. 18, and the companies will move on to a live final presentation scheduled for Sept.

10. For more information, visit www.kitsapbank.com/edge-fund.

Nonprofit Fishline opening second thrift store in Poulsbo North Kitsap Fishline is preparing to open a second thrift store in Poulsbo to help support the nonprofit’s food bank and other services.

a progressive and welcoming business climate; and, to insure there is reliable public infrastructure on which to build a solid foundation for expanding commerce in Kitsap and the region.

This month, attendees will learn more about the changing face of healthcare in Kitsap County in a discussion led by Adar Palis, COO of Harrison Medical Center.

Reserve your seat today at www.kitsapbusinessforum.com.

I invite to join us at the Kitsap Business Forum on the second Tuesday of each month, including next Tuesday, Sept. 9, to participate in the forum as we come together to improve your business’ performance and prospects for continued growth and success here in Kitsap.

On Kitsap!

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

Fishline, which operates the Second Season thrift store in downtown Poulsbo, will open Second Season Home on Sept. 4 at the former food bank location at 18916 Third Ave. The Fishline food bank relocated earlier this year to the former Poulsbo RV site off Viking Avenue.

Second Season Home is accepting donations of gently used furniture and home décor items by appointment and on Aug. 2223 and 29-30 from 10 a.m. to 2 p.m.

For more information, contact Fishline at 360-779-4191 or info@nkfishline.org.

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CAR REVIEW | FORD FUSION

One sporty, luxurious, fuel-efficient touring car

By Lary Coppola KPBJ contributor Just as the jelly-bean shaped Ford Taurus redefined basic sedan design upon its debut in 1985, the Ford Fusion has redefined the midsize family sedan.

The Fusion comes with three basic powerplant configurations — the standard gas engine, a Gas/Electric Hybrid, and a plugin Gas/Electric Hybrid called the Fusion Energi. Unlike the standard hybrid version, the Energi can go up to 22 miles at high speeds exclusively on electric power. After that, the gasoline engine takes over until it’s been recharged.

Debuting in 2005 as a 2006 model, the Fusion was restyled for the 2010 model year and again for 2013. Except for the inevitable evolutionary upgrades, the 2014 Fusion is relatively unchanged, while offering attractive styling, a

variety of sophisticated electronic audio and communication choices, and a sporty character more often associated with some German sport sedans than Detroit iron.

Model Lineup: The 2014 Fusion is offered in eight trim levels: The gasoline and hybrid models are S, SE and Titanium, while the Energi is limited to SE and Titanium. All models are frontwheel drive except for the Titanium, which offers all-wheel drive as an option. Our test vehicle was the Titanium version of Gas/Electric Hybrid, and this review will focus primarily on that vehicle.

The base S models include manual climate control, tilt/telescoping steering wheel, 4-speaker AM/FM/CD player with auxiliary input, 16-inch wheels, and Ford’s SYNC wireless communication system with voice control. SE models add 10-way power driver’s seat, rear air vents, a 6-speaker audio system, and 17-inch wheels.

2014 Ford Fusion hybrid The Titanium adds the powerful 2.0-liter turbocharged engine, 12-speaker Sony premium audio system with HD and satellite radio, dual-zone auto climate control, a rearview camera, leather seating, and 18-inch wheels.

Notable options abound on the Fusion. In addition to more powerful turbocharged engines, technological features make the car safer and more comfortable.

Those include a reverse-sensing system, Active Park Assist to help with parallel parking, adaptive cruise control, Navigation, and blind-spot monitoring. Also offered is the Lane Keeping System, which utilizes a windshieldmounted camera that digitally monitors road markings to detect if the car drifts into another lane.

If so, the system sounds a warning, vibrates the steering wheel

CAR REVIEW | ACURA MDX

Basically unchanged, still impressive

By Lary Coppola KPBJ contributor The Acura MDX has always been a stylish, practical, luxurious crossover SUV. The 2015 MDX is no exception, and remains relatively unchanged from the 2014 model, which offered a total redesign of the previous version. For the uninitiated, the Acura MDX is a midsize, three-row, seven-seat luxury crossover SUV that’s only offered in one well-appointed trim level with add-on packages geared for personalization.

The list of standard amenities on the MDX is impressive, and includes highend items that usually cost extra for on competing models — things like LED headlights, heated leather seats and a multi-angle rearview camera — for example.

The MDX’s three-row luxury crossover competitors include the BMW X5, Infiniti QX60, Volvo XC90 (which will debut a total redesign for 2015), Audi Q7, Lincoln MKT, and Buick Enclave among others.

While that list is impressive, in our view, the MDX delivers the most engaging driving experience. The notably spendier X5 is the only one delivering better performance.

Model Lineup: The 2015 Acura MDX comes standard with front-wheel drive. MDX SH-AWD adds all-wheel drive. The basic MDX comes standard with leather upholstery in the first two rows, threezone climate control, power heated front seats with driver memory, power windows, door locks, mirrors, power tailgate, cruise control, rearview camera, mes-

2015 Acura MDX sage center, trip computer, AM/FM/CD/MP3 sound system, XM satellite radio, Bluetooth, auxiliary audio input, and split-folding rear seats.

The Technology Package adds hard disc navigation with VGA screen, AcuraLink communications, real-time weather and traffic, 410-watt 10-speaker Acura ELS surround sound system, multiview rearview camera, and USB port.

Technology and Entertainment Packages add a DVD Rear Seat Entertainment System and includes a motorized 9-inch VGA screen, heated second-row seats, and 115-volt AC power outlet.

The Advance and Entertainment Packages includes the Technology and

and ultimately applies steering torque to move the car back into the lane.

Walkaround: The exterior of the 2014 Ford Fusion is basically unchanged, but is very striking, combining German-type luxury styling with aggressive front end design cues obviously influenced by Aston Martin — which was once part of Ford. While the Fusion is classified as midsize, it looks and feels larger, although the overall measurements very closely match those of the Honda Accord and Nissan Altima.

There are some subtle styling changes for 2014 — new original wheel designs, two new exterior colors and restyled headlights.

Ford’s ingenious EasyFuel capless gas filler system eliminates wrestling with a gas cap to open it, or waiting for it to “click” back into place.

Interior: The Fusion’s interior is roomy, with attractive interior materials along with excellent fit and finish. There’s plenty of front legroom, with ample shoulder and headroom, accentuated by concave door trim.

Rear seats are comfortable, with

Entertainment Packages and adds an active damper system, adaptive cruise control with collision mitigation braking system, blind spot information system, ventilated front seats in perforated Milano leather, and 19-inch wheels.

Safety equipment includes two-stage frontal air bags and active head restraints, two-stage driver and front-passenger knee bolsters, front-seat side-impact air bags, and threerow side-curtain air bags with rollover triggering.

Active safety features, designed to help avoid accidents include all-wheeldrive, electronic stability control, and anti-lock brakes (ABS) with electronic brake force distribution and brake assist for panic stops.

Walkaround: As stated, the Acura MDX was completely redesigned for the 2014 model year. The front overhang has been short-

adequate leg, knee, and headroom for passengers up to about six feet tall. The inflatable rear seat belts that Ford debuted on the 2011 Ford Explorer are available on the 2014 Fusion. In the event of a collision the belts inflate, distributing the load over a larger area and reducing the risk of abdominal, chest and shoulder injuries for rear passengers.

A new Interior Appearance Package for the 2014 Fusion Titanium includes premium leather seating surfaces and vinyl door inserts finished in Brick Red along with premium floor mats. Titanium buyers can also add optional cooled driver and front passenger seats along with the standard heated seats. An available heated steering wheel is also new.

The standard cloth seats in the Fusion Hybrid and Energi, and optional on the SE, are made from 100 percent recyclable materials.

Technology includes the latest version of Microsoft Sync and MyFordTouch. The Fusion also offers active park assist, a feature normally found on high-end luxury cars, which scans parallel parking spaces and automatically maneuvers the car in on its own.

On models equipped with the MyFordTouch interface, climate

ened less than an inch, but somehow, Acura’s massive V-shaped signature chrome front fascia looks friendlier, but still aggressive. The way the nose slopes down between the grille from each side to the bumper gives definition to the bumper as well.

The openings under the grille are smartly positioned, and the five-blub each LED headlamps — which Acura calls “Jewel Eyes,” feature a slick design. Although not exactly daylight-bright as Acura suggests, they extend the beam by 75 feet and safety a lot farther.

Standard exterior amenities include 18-inch wheels, automatic LED headlights,

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heated mirrors, a power liftgate, sunroof, and rear privacy glass.

The side view doesn’t reveal any fancy styling, and except for the small spoiler on the roof, the rear looks like most other SUVs — replete with the requisite LED taillight array.

Interior: The MDX’s interior with its thick, stitched leather-wrapped steering wheel and easy-to-read instrumentation is definitely driver-focused. Fit and finish are excellent, material quality is high, with soft, premium Milano leather standard for the first two rows, along with satin and simulated wood-grain trim SEE MDX | 38

accents in the cabin.

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

The touchscreen interface is supposedly improved, but my personal experience found it still quirky at best.

A call to the technical assistance line upon encountering a Navigation system

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simulated wood-grain trim accents in the cabin.

The front seats are comfortable and roomy. However, for a vehicle that handles as well as this one, more bolstering would be welcome.

With the center stack anchored by two display screens — one for navigation and the other controlling a myriad of functions including audio, phone, climate and more — the overall layout is clean and simple. More than 40 buttons and knobs have been reduced to nine, saving significant space, now utilized for storage forward of the shift lever.

The navigation system is simple and fairly intuitive.

Destinations can be looked up via the 7-inch touchscreen interface mounted directly below the 8-inch navigation screen, or supposedly by using the enhanced voice recognition system. While the navigation screen graphics are easily readable, neither screen offers the crisp, quality graphics typically found in this class.

Instrumentation is well laid out, with the display screen shaded and easy to read in sunlight. The gauges feature LED backlighting, while LED lamps with programmable brightness are used on the center console and front foot wells.

Center console storage space has more than doubled due to repositioning the HVAC system. Big SUVs and pickups have center

WWW.KPBJ.COM issue was an exercise in total futility. Reaching someone after 13 minutes and 47 seconds of being told how important my call was, the tech on the other end couldn’t seem to grasp a simple question that should have had a simple answer.

What’s particularly disheartening is that the MyFordTouch interface is perhaps the simplest, and most intuitive and user-friendly of just about any vehicle today — but like many Microsoft products, it doesn’t always work, and/or work exactly as advertised.

The steering wheel is a command center in itself,

featuring numerous buttons for vehicle information and settings, audio volume and adjustments, cruise control, handsfree phone operation and voice activation.

The Fusion offers 16 cubic feet of trunk space — slightly more than the competing Camry, Altima, and Accord, but less than the Hyundai Sonata. The battery pack in the Fusion Hybrid reduces that to 12 cubic feet, and creates a high shelf in the back half of the cargo area, but the rear seats do fold for added cargo room.

Under The Hood: All of the gasoline powerplants in

consoles like this, but not many luxury crossovers.

Second-row seats fold down with a touch of one button — located in three places — so third-row access couldn’t be easier.

With both rows folded flat, cargo space is 90 cubic feet. With both rows up, it’s 15.8 cubic feet — equal to a good-size sedan trunk.

The cabin is exceptionally quiet thanks to more foam in the roof pillars, acoustic glass, new insulating materials under and behind the second and third rows, and a new seal at the rear door sills.

Under The Hood: The 2015 Acura MDX is powered by a 3.5-liter V6 that delivers 290 horses and 267 pound-feet of torque. A sixspeed automatic transmission and front-wheel drive are standard, with allwheel drive optional.

EPA-estimated fuel economy with front-wheel drive is 20 city/28 highway for a combined 23, while the AWD version rates 18/city, 27/highway for a combined 21. Properly equipped, the MDX can tow up to 5,000 pounds.

Behind The Wheel: The 2015 Acura MDX is an extremely enjoyable luxury crossover to drive. It’s quiet, and rides a little more firmly than some of its competitors — which isn’t necessarily a bad thing. The V6 powerplant is strong, with an evil-sounding snarl when you stick your foot in it deep enough to approach redline. A six-speed automatic seems a little dated for a sporting luxury cross-

over, but the transmission is smooth and downshifts quickly whether you’re using the paddle shifters or the gas pedal.

Handling is secure, with a sporty feel that’s often missing from vehicles this size. The AWD system provides extra athleticism as well as traction. Compared to the previous version (2007-2012), this MDX delivers quicker acceleration, better fuel economy, nimbler handling, shorter stopping distances, and improved ride — as well as tighter dimensions outside with more room and comfort inside.

Whines: The A-pillar obstructs forward and downward visibility. The electronics are a major hassle.

Some of the more basic functions — like turning on the seat heaters or increasing fan speed — annoyingly require multiple touchscreen button pushes. Tuning the radio — and just finding the presets via the touchscreen — is another disappointment. Like most other vehicles, voice commands fail. The Acura lady inside the box seemingly doesn’t understand English.

Bottom Line: Loaded with features and a pleasure to drive, the 2015 Acura MDX is a good choice for buyers seeking a threerow crossover offering both luxury and value. It’s improved over the previous version in every way — powertrain, acceleration, fuel economy, roominess, comfort, nimbler handling, shorter stopping distances, and smoother ride.

the 2014 Fusion are 4-cylinder engines, and all but in the base model are 2.0 liters or less. That made us dubious, but our skepticism proved unwarranted. The Gas/Electric Hybrid combines a 2.0-liter inline-4 with an AC synchronous motor. The combination delivers 188 total horses and 129 lb-ft of torque for the gasoline engine only. The impressive part is the EPA city/highway fuel economy ratings — 47/47 mpg.

Behind The Wheel: Our test drive period included a trip to Portland for

the Northwest Automotive Press Association’s annual Drive Revolution event. We drove a wide variety of Electric Vehicles, Gas/Electric and plug-in hybrids, providing an opportunity for headto-head comparisons to the Fusion. Also on the agenda was a Toyota off-road event the next day, which included navigating some winding, two-lane mountainous terrain to reach. The 188-horse 4-banger won’t win any drag races, but held its own both on I-5 and the mountainous stretch. The Fusion’s excellent suspen-

sion delivers comfort, with solid, small-car handling in a big package, for an overall athletic driving experience.

The Hybrid system’s gas/ electric transition is nearly seamless.

Whines: Will Microsoft ever get MyFordTouch right?

Bottom Line: In a segment cluttered with choices, the 2014 Ford Fusion is a competitive family sedan that makes a bold fashion statement. Our wellequipped Titanium stickered at $37,905 — a pretty good value.

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