Tri-Cities Area Journal of Business - February 2020 by Tri-Cities Area Journal of Business/Senior Times

February 2020 Volume 19 | Issue 2

Homebuilders race to match Tri-City growth By Wendy Culverwell editor@tcjournal.biz

Health Care

Clinic sees spike in number of kids affected by too much screen time Page A11

Local News

Meet former Tri-Citian working at the late Paul Allen’s holding company Page A7

Real Estate & Construction

Tri-City builder files for personal bankruptcy Page B1

NOTEWORTHY “When it comes to our work, ‘no’ is a temporary obstacle.” - Carlos Olivares, CEO, Yakima Valley Farm Workers Clinic. Page A46

Tri-City building agencies issued a record 1,655 permits for single-family homes in 2019, an 18 percent gain in just a year. Predictably, fast-growing Pasco led the market with 585 permits, followed by Richland at 371, Kennewick at 342 and West Richland at 122, according to yearend figures compiled by the Home Builders Association of Tri-Cities. Between 2014-19, homebuilders secured permits for more than 8,000 homes and the pace of development grew by nearly 60 percent. But is it enough to keep up with demand sparked by low unemployment, low interest rates and an economy that has added a staggering 47,500 jobs since the year 2000? Pasco permitted 100 more homes in 2019 than the year prior, a 21 percent gain. Since 2014, the city has permitted nearly 2,400 new single-family homes. It’s a healthy figure, but Rick White, director of planning and community development, said new construction isn’t occurring in the “affordable” range, generally $300,000 and below. It’s not an idle question. Pasco expects to grow to 124,000 people by 2040, a gain of roughly 50,000 people in just 20 years. “Are we building enough? I can’t answer that. But inventory is low and apartment vacancies are basically nonexistent,” he said.

Growing population The population of Benton and Franklin counties stood at nearly 300,000 in a 2018 population estimate by the Census, 36,000 more than 2010. During that time, the Tri-Cities added about 1,750 households per year, growing to 103,500, according to a 2018 housing market analysis conducted by uHOUSING, Page A4

Photo by Wendy Culverwell Marty Conger, chairman of Fuse Advisors LLC, is leading an effort to establish a seed fund dedicated to helping promising Tri-City businesses.

New fund aims to raise $2.5M to back promising Tri-City companies By Wendy Culverwell editor@tcjournal.biz

A Richland business incubator that provides space and mentoring to startups is adding a critical new tool to its lineup – money. Fuse SPC, a unique social-purpose corporation with offices on The Parkway, has launched the Fuse Fund with a goal of raising $2.5 million to invest in young, local companies. The fund is capped at $10 million for legal purposes. The fund, operated by Fuse Advisors LLC, expects to make its first two investments this month—in a Kennewick tech company and a Richland food startup. The Fuse Fund board is led by Marty Conger, who retired last year as chief financial officer for the Pacific Northwest National Laboratory, and a team of serial entrepreneurs: Brett Spooner, Ron Boninger, David Lippes and Megan Chalk. Collectively, the board brings deep exper-

tise in accounting and finance, scrutinizing investments and turning ideas into successful ventures. Fuse Fund will invest between $75,000 and $150,000, with a cap of $250,000 on followup investments. It assigns mentors to coach its companies. To date, six companies have approached Fuse Fund and four have made formal pitches. Conger isn’t ready to announce investments but confirmed it has made conditioned offers to two. Both are fast-growing Tri-City startups that have broken into their respective markets and have paying customers. The fund is less concerned about the industry than the location. It invests in the Tri-Cities —defined as Benton and Franklin counties. Conger said the investment board is attracted to companies led by a team with drive and passion to succeed and a market for their product.

uFUSE FUND, Page A5

Benton County breaks ground on $13.6M admin building By Wendy Culverwell editor@tcjournal.biz

Benton County is tapping its $24 million capital projects fund to build sunlit offices for its administrators and free up space in its crowded Kennewick courthouse. The county planned to hold public groundbreaking ceremonies for the $13.6 million, 40,000-square-foot office building on Feb. 17 at its Kennewick justice center campus, 7122 W. Okanogan Place. The building will open in May 2021 as the new Kennewick home for the county commissioners and administration, as well as the Kennewick offices of the county treasurer, assessor and auditor. The county’s official seat in Prosser is not affected by the new addition, said Matt Rasmussen, public works administrator.

The addition will free space in the Benton County Justice Center and the nearby Canal Street Annex for the criminal justice system, which is out of space due to growing court dockets. Prosecutors, public defenders and the clerk’s office all need more room, Rasmussen said. With administrators out of the way, they’ll have more of it. “It will be exclusively criminal justice in here,” Rasmussen said.

Prosser is still the county seat The new office building is not an attempt to move the county seat to Kennewick from Prosser. But it acknowledges that some 80 percent of county business transpires in Kennewick, the population center. The additional space should accommodate growth for the uADMIN BUILDING, Page A3

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TRI-CITIES AREA JOURNAL OF BUSINESS | FEBRUARY 2020 ADMIN BUILDING, From page A1 next two decades. It’s also not about mindless expansion of local government, Rasmussen said. Population growth is driving up the number of cases heard in the superior and district courtrooms in the justice center. “The commissioners have always been very big proponents of maintaining the smallest footprint,” he said. An 18-month facilities study concluded a new administration building would create a more welcoming environment for people who have business with the county while reserving costly secured space in the justice center for the courts. The project is funded through the county capital projects budget, which is supported by the general fund and payments the county receives from the federal government in lieu of property taxes. The budget works out a little more than $286 per square foot, which includes finishes and furnishing space. That is generally in line with construction trends. The base cost to build “prime” office space in Seattle in 2019 was $210 to $255 per square foot, excluding finishes and furnishings, according to a year-end report by Rider Bucknell Leavett, a construction management firm. RBL reports on construction cost trends in major markets such as Seattle. Tri-City data wasn’t available.

Who goes where? Rasmussen said the new addition in Kennewick will make more efficient use of existing county facilities and lower the cost to provide much needed office and courtroom space at the Benton-Franklin Juvenile Justice Center on Canal Drive. The treasurer, auditor and assessor will vacate their shared 8,500-square-foot office at the Canal Drive Annex. The offices can be renovated to serve the juvenile center, which is on the same property. The 252,000-square-foot Benton County Justice Center in Kennewick houses district and superior courts, prosecutors,

defenders and the jail, which is why it has security guards and a metal detector at the entrance. About one-fourth of the building is devoted to the commissioners and other administrators who don’t need that level of protection. They’ll move to the new building, which Rasmussen hastens to note will have passive security built into the design. There won’t be a screening station at the door at the outset. Rasmussen said the space crunch in the justice center has real implications for the courts. The county recently launched a new specialty court to serve veterans charged with crimes. Qualifying veterans who get treatment and meet other conditions can get their records expunged. Three authorized positions haven’t been filled because there’s nowhere to put them, Rasmussen said. Veterans court is funded by the Public Safety Sales Tax, a voter-approved sales tax to combat crime. The county’s current budget earmarks $400,000 from the public safety tax to support seven positions in veterans court. The building design includes a central atrium, shared ground-floor lobby and energy efficient features. The parking spots nearest the building will be dedicated to short-term visitors who stop by to register to vote, pay taxes, register vehicles and take care of other county business.

The justice center campus About 750 county employees work on the 23-acre Kennewick justice center campus. They’re posted to the justice center and jail, the health department, the coroner’s office and in a maintenance facility. The 85 who now work at the annex will add to the population, which also includes roughly 500 jail inmates. Parking is the main limiting factor for additional development. Rasmussen said there’s room to develop another 20,000 square feet of space once the office build-

Courtesy Benton County Benton County is scheduled to break ground Feb. 17 on a $13.5 million administration building at 7122 W. Okanogan Place in Kennewick. Benton County’s new digs will make room for overcrowded courts.

ing is complete. It would have to build a parking garage to build more. Rasmussen said there are no plans to add a coffee shop or other commercial activity on the property. Past efforts to provide food and beverages at the county property didn’t take off and the neighborhood is packed with restaurants, fast food and other public services.

Paying for the project The new administration building will bring new operating costs in terms of added utilities and maintenance. In its six-year capital projects budget, the county noted some costs would be offset by lowering Benton County’s share of operating costs

at the Canal Street annex. When the annex becomes part of the bicounty juvenile justice system, the county will split operating costs with Franklin County. The new building will even eliminate one pesky expense – the $80,000 Benton County spends annually to store archived documents off site. The basement was added to provide storage and speed up access to stored public documents. It will pay for itself in 10 years, Rasmussen said. Banlin Construction LLC of Kennewick is the general contractor. MMEC Architecture & Design of Kennewick, which conducted the facilities study, is the designer.

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UPCOMING

the federal Department of Housing and Urban Development. For buyers, that means there are about 500 to 600 homes for sale at any given time, about three months’ worth. Historically, the market was considered healthy when the inventory hovered around 1,200. Still, buyers purchased 4,153 homes in 2019 on an average of 12.5 homes per day. That’s almost one more house per day than five years earlier, according to figures compiled by the Tri-City Association of Realtors. Jeff Losey, president of the home builders association, expects the homebuilding industry to boom again in 2020. The year is already off to a better start than 2019, when February snow slowed the start of the construction season and the uncertainty caused by trade wars and tariffs on Washington-produced agricultural goods injected uncertainty into the economy. The trade wars have eased, and the winter has been mild as of early February. If it continues, Losey said 2020 should be a repeat of 2019 or better. “We’re benefiting from the economic opportunities that everyone else is having,” he said. “Interest rates are low and stable. That keeps buyers making purchases.”

Rising prices for land, homes John Kelch, managing broker for Windermere One Tri-Cities, is the 2020 chair of the Tri-City Association of Realtors. New construction accounted for 25 percent of home sales in 2019. In the pre-recession years, it topped out at about 30 percent.

Photos by Wendy Culverwell Above: Construction workers work on homes in Richland’s Badger South neighborhood. 2019 was a record year for housing permits in the Tri-Cities. Officials say the trend should continue in 2020. Left: A home under construction in Richland’s Badger South neighborhood. Tri-City permitting agencies permitted a record number of single-family homes in 2019.

Kelch anticipates it will remain at the 25 percent level. Developable land is in short supply, which has driven lot prices to more than $100,000. That doesn’t help build the $250,000 to $300,000 homes considered affordable. Indeed, the median price of a home in the Tri-Cities rose to $300,000 in 2019, from $275,000 the year before. “As land becomes available, it’s getting built on,” Kelch said. In a tight market, Kelch advises sellers to price their homes appropriately and buyers to be patient and ready to act when they find the right property, whether it is new or not.

Tax base bump 2019 wasn’t just a marquee year for homebuilding. All construction was up. In all, builders pulled permits for projects with a combined value of more than $1.1 billion — $486 million for single-family homes and $700 million for all others, including commercial, renovations and so forth. It’s the first time the Tri-Cities topped $1 billion in construction value since at least 2004, according to Losey, who checked the home builders association’s records. Ten figures is a big deal, he said. “It means that it was a very good year for the Tri-Cities from an economic perspective,” he said. Benton County’s total assessed value for tax purposes is $22.8 billion, and Franklin County’s is $9.3 billion.

March: Hospitality • Education & Training April: Hanford specialty publication

CORRECTION • Parish of the Holy Spirit Catholic Church on West Clearwater Avenue in Kennewick was misidentified in a story about architecture in the Tri-Cities on Page 1 of the January edition. The Tri-Cities Area Journal of Business, a publication of TriComp Inc., is published monthly and delivered at no charge to identifiable businesses in Pasco, Richland, West Richland, Kennewick, Prosser and Benton City. Subscriptions are $27.10 per year, including tax, prepayment required, no refunds. Contents of this publication are the sole property of TriComp Inc. and can not be reproduced in any form without expressed written consent. Opinions expressed in guest columns and by advertisers do not necessarily reflect the opinions of staff, other columnists or other advertisers, nor do they imply endorsement by staff, columnists or advertisers. Every effort will be made to assure information published is correct; however, we are not liable for any errors or omissions made despite these efforts.

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TRI-CITIES AREA JOURNAL OF BUSINESS | FEBRUARY 2020 FUSE FUND, From page A1 If entrepreneurs have great ideas and passion but thin business résumés, Fuse SPC can help them become investor ready. A boost from the Port of Benton The Port of Benton helped kick off the fund in 2018 when it awarded Fuse SPC a $254,000 grant to create a local seed fund, saying it would lead to investments in more than 25 small businesses in the first years. The grant paid for legal fees, website development and development of investment documents, among other pre-launch costs. Fuse began soliciting accredited investors last summer – those with $1 million or more in assets and an annual income of $200,000 or more, or $300,000 for married customers. The minimum investment is $50,000, though about a third invest more. The fund, which is wholly owned by Fuse SPC, takes the position of general partner. Investors come on as limited partners in Fuse Advisors. The fund is capped at $10 million to stay below the level required to register as a security. Conger expects to close the fund later this year.

High end of risk-reward scale Investing in emerging businesses is risky and Fuse Fund describes itself as being at the high end of the risk-reward scale. However, it notes that comparable undertakings typically deliver returns in the two- to three-times range over eight to 10 years but there are no guarantees. The fund’s mission is to support local entrepreneurs. Proceeds from investments are split 8020 between investors and Fuse SPC, which takes an administrative fee. Conger said 20 investors, including the Tri-City Development Council, have committed $1.3 million to date. It has registered another $300,000 from “probable” investors. With the exception of an Arizona investor with Tri-City ties, the investment capital comes from Tri-Citians, though it doesn’t have to be. “I’ll take money from anywhere,” Conger said. David Lippes, a real estate investor and serial entrepreneur, is an investor and board member as well as business coach to one of the fund’s target companies. Lippes said Fuse Fund will provide the much-needed third leg of developing a business – growth capital. Fuse already provides real estate in the form of its coworking space in Richland and support in terms of its mentoring and training program. With the fund, it can help young businesses leverage local investment dollars. “This is the last major piece,” he said. Not for startups Fuse Fund invests in young and emerging businesses, not startups. It isn’t seeking would-be entrepreneurs daydreaming about quitting their jobs to pursue an idea. Rather, it targets existing businesses that have outgrown their startup capital, typically gifts and loans from family and friends. Good candidates have launched. They may be earning revenue or are close to it. They’ve reached the stage where they need to hire more staff, invest in more equipment, enter big contracts — beyond the limits of most family-and-friends capital.

“The question becomes whether they’ve raised $100,000 or $2 million that way, they’ve worked through that capital. Where do they go next?” David Lippes Lippes said. “If you live in the Tri-Cities, the answer is usually somewhere that is not the Tri-Cities.” Fuse Fund is positioning itself as a partner rather than one-stop shop. It provides some, but not all, the funds a business may seek. The two firms it is preparing to support are raising $750,000 and $2 million, respectively, to support expansion plans.

Investments from Fuse are helping them attract other investors. “Funds like to see other funds invest,” Conger said. Over time, those relationships will help Fuse draw attention to local firms from larger funds in Seattle and elsewhere.

The state of capital Securing funds for a promising business is never easy, particularly in rural areas far removed from financial hubs. That doesn’t mean there isn’t money to be had. Early stage investors placed $9.1 billion in seed and angel capital in 2019 nationwide, translating to a median investment of $1.1 million in 4,556 deals, according to Venture Monitor, a publication Pitchbook and the National Venture Capital Association. The West Coast, including Alaska and

Hawaii, accounted for more than a third of all deals in 2019. But that doesn’t translate to investments in rural areas such as the TriCities. The Washington Department of Commerce said its options to support young business are limited, but it confirmed it’s a barrier to entrepreneurs who are too young to qualify for traditional bank support. The state’s StartUp Washington website offers links to funds: startup.choosewashingtonstate.com/resources/funding.

Learn more For information about investing in the fund or learning more about pitching a business to the investment committee, contact Marty Conger at conger.marty@gmail. com. Go to fuse.fund for more information.

TRI-CITIES AREA JOURNAL OF BUSINESS | FEBRUARY 2020

DATEBOOK

VISIT TCJOURNAL.BIZ AND CLICK ON EVENT CALENDAR FOR MORE EVENTS

FEB. 19

• Apprenticeship 101 Career Fair: 2-4 p.m., Byron Gjerde Center at Columbia Basin College, 2600 N. 20th Ave., Pasco. Contact: 509-7345894. • Shadows and Portents “Looking Back at 1940, Year two of the second World War”: 6:30 p.m., Mid-Columbia Libraries, 1620 S. Union St., Kennewick. Contact: 509-783-7878.

FEB. 20

• Community Lecture Series “Women of the War: The Hanford Girl”: 7 p.m., East Benton County Historical Society, 205 Keewaydin Drive, Kennewick. Contact: 509-5425531. • TRIDEC 21st annual Tri-Cities Regional Economic Outlook: 7:30 a.m. to 1:30 p.m., Three Rivers Convention Center, 7016 W. Grandridge Blvd., Kennewick. Go to tridec.org.

FEB. 21-23

• Home and Garden Show: 10 a.m. to 7 p.m. Feb. 21; 10 a.m. to 7 p.m. Feb. 22; 10 a.m. to 4 p.m.

Feb. 23; The HAPO Center, 6600 Burden Blvd., Pasco. Go to: hbatc. com.

FEB. 24

• Kennewick Man & Women of the Year: 6 p.m., Three Rivers Convention Center, 7016 W. Grandridge Blvd., Kennewick. Contact: 509-987-5822.

FEB. 26

• Tri-City Regional Chamber of Commerce’s State of the Ports luncheon: noon to 1:30 p.m., Three Rivers Convention Center, 7016 W. Grandridge Blvd., Kennewick. Register at tricityregionalchamber. com.

FEB. 27

• Tri-City Regional Chamber of Commerce’s Meet the Buyer: Doing Business with Trios Health: 9-10:30 a.m., Bechtel Board Room, 7130 W. Grandridge Blvd., Kennewick. Register at washingtonptac.org.

MARCH 3

• WPC Solutions Series “New Policy Guide for Washington State”: 7:15-8:15 a.m., CG Public House, 9221 W. Clearwater Ave., Kennewick. Go to: washingtonpolicy. org/events/

MARCH 4

• West Richland Chamber of Commerce membership luncheon: 11:30 to 1 p.m., Mayfield Gathering Place, 331 41st Ave., West Richland. Go to westrichlandchamber.org.

MARCH 7

• WSU Tri-Cities Carson College of Business Point to Success Fundraising Brunch: 10 a.m. to 1 p.m., Anthony’s Restaurant, 550 Columbia Point Drive, Richland. Contact: 509-372-7132.

MARCH 9

• Pasco Chamber of Commerce membership luncheon: 11:30 a.m. to 1 p.m., Pasco Red Lion, 2525 N. 20th Ave., Pasco. Go to pascochamber.org.

MARCH 10

• PNNL Community Lecture Series “Glass: How Exactly Do We Use it to Immobilize Radioactive Waste”: 7 p.m., Richland Public Library, 940 Northgate Drive, Richland. Contact: 509-542-5531. • Mid-Columbia Meals on Wheels Fundraising Breakfast: 7:30 a.m. The HAPO Center 6600 Burden Blvd., Pasco. Contact: 509735-1911.

MARCH 11

• Tri-City Regional Chamber of Commerce’s Ask the Experts: Human Resources: 3:30-5 p.m., Bechtel Board Room, 7130 W. Grandridge Blvd., Kennewick. Register at tricityregionalchamber. com.

MARCH 17

• Tri-Cities Hispanic Chamber of Commerce’s networking luncheon: 11:30 a.m. to 1 p.m., Pasco Red Lion, 2525 N. 20th Ave., Pasco. Go to tchispanicchamber. com.

TRI-CITIES AREA JOURNAL OF BUSINESS | FEBRUARY 2020

Vulcan Inc.’s HR director headlines WSU Tri-Cities brunch EDIT This inaugural Tri-Cities Area Journal of Business feature, Tri-City Connections, will be a series of occasional profiles of Tri-City natives and former Tri-Citians who have excelled in the world of business. If you have one in mind, let us know at info@tcjournal.biz.

Tim Mulligan

By Wendy Culverwell editor@tcjournal.biz

Hanford drew Tim Mulligan’s family to the Tri-Cities. His grandparents worked at the site. His parents met in high school in Richland and Mulligan followed them, graduating from Hanford High School before heading to Pullman to study hospitality at Washington State University. He’s gone on to make his hometown proud. His hospitality career led him to law school, success in one of the nation’s largest hotel chains, a top job at the San Diego Zoo, and now Vulcan Inc., the Seattle holding company for many of the late Paul Allen’s real estate, sports and philanthropic efforts. Along the way, he wrote an influential book about building resilient organizations and was named CRO magazine’s Chief Human Resources Officer of the Year for 2016. Mulligan returns to the Tri-Cities on March 7 to headline the Point to Success

brunch, a fundraiser to support business education at the Carson College of Business at WSU Tri-Cities. Mulligan lives in Seattle now, but he’s kept his Cougar connection front and center throughout his career. Almost from the day he first stepped out from WSU, he’s supported the school and students, helping them find jobs.

Where it began His own career started with Starwood Hotels and Resorts, a holding of Marriott Corp. The freshly minted WSU grad joined the hospitality giant in a management post at the Westin St. Francis San Francisco on Union Square, in the very heart of the city. It was, he said, a big, complicated operation with employees represented by unions. Mulligan established himself as someone who could solve employee issues and maintain relationships with unions.

Seeing his future in human resources, Mulligan decided he needed a law degree and headed back to Washington state, where he earned a J.D. at Gonzaga University

School of Law. He even returned to the Tri-Cities, though briefly. He spent about two years working on labor and employment in a local law firm before moving again, this time to Seattle. He advised hospitality students at the WSU branch campus in Everett and returned to Starwood. After a series of promotions, he was managing the company’s Southern California properties, a job that entailed opening new properties, staffing, management, training and other duties.

A headhunter calls An unexpected call changed his path. A headhunter asked if Mulligan would be interested in the nonprofit sector. The San Diego Zoo was looking for a human resources chief, part of a mission to overhaul its culture and transform the zoo into the nation’s best place to work. The timing was right. The Mulligans were adopting two children. uMULLIGAN, Page A8

If you go

What: Carson College of Business Point to Success brunch to benefit the Carson College of Business at WSU Tri-Cities. Tim Mulligan, chief human resources officer of Vulcan Inc., is the guest speaker. The event features live auction for Laser Genesis treatment and Botox injections; a Miss Madison/Oberto/HomeStreet U-1 team shirt autographed by Steve David and Jimmy Shane, the two drivers who won nine national hydroplane championships; a condo stay on the beach at Seaside, Oregon; tasting at Solar Spirits; dinner for eight prepared by Executive Chef Jamie Callison at a riverfront home; and a professional group portrait session. There will be three rounds of heads-or-tails and a $25 wine grab. When: 10 a.m. to 1 p.m. March 7 Where: Anthony’s at Columbia Point in Richland. Cost: Tickets are $100 per person, or $125 after Feb. 27. Admission includes a signed copy of Mulligan’s book, “ROAR: How to Build a Resilient Organization the World-Famous San Diego Way.” To register: tricities.wsu.edu/ ccbbrunch

TRI-CITIES AREA JOURNAL OF BUSINESS | FEBRUARY 2020

MULLIGAN, From page A7 “I thought it would be great to raise a family and have the kids grow up at the zoo. I took it,” he said. He entered with a mission to help the zoo become not only a good place for its animal residents, but a great place for its human workers. In 2010, the CEO put him in charge planning for a year-long centennial celebration in 2015. For five years, he delved into all aspects of the zoo – operations, marketing, animal care. The job went well beyond human resources, and Mulligan had a ball. The success formed the basis for “ROAR: How to Build a Resilient Organization the World-Famous San Diego Zoo Way,” which Mulligan co-wrote with Sandy Asch. It came out in hardback in

2016 and paperback this winter. Attendees of the Carson brunch will receive a copy. It is also available through Amazon and can be ordered through bookstores. The centennial celebration and the success of “ROAR” would bring national attention, speaking engagements and the Human Resources Officer of the Year honors.

Vulcan Inc. beckons The attention brought another unexpected call. This time, a headhunter wanted to know if Mulligan would return to Seattle. Paul Allen’s Vulcan Inc. needed a chief human resources officer. Mulligan said he wasn’t initially interested. He loved Southern California and the zoo. He wasn’t looking to uproot his family.

But then the caller asked if he’d be interested in working for Allen, co-founder of Microsoft. “That got my interest,” he said. “When would I have an opportunity like that again?” Vulcan carries out the varied endeavors of its founder – philanthropic, corporate and civic, including the Seattle Seahawks and the Portland Trailblazers. Allen died not long after Mulligan signed on, in October 2018. His death from cancer prompted mourning and introspection in the complicated organization he left behind. “In the years since he passed away, we’ve done a lot of work figuring out what the future is,” Mulligan said. He helped revise its vision statement, to make and leave the world a better place,

and pared back projects that didn’t fit. It sold projects that didn’t fit within the new mission. “We are a more focused company moving forward now,” he said.

Tri-City roots Mulligan’s parents have passed away but he maintains contacts with cousins and old friends. He said he loves to bring his family to visit in the summer. Waterskiing, tubing and being on the Columbia River are favorite family activities, as is visiting wine country. And like a certain other prominent Richland natives (We’re thinking of you, retired Gen. Jim Mattis), no visit home is complete without a stop at Uptown Plaza for a treat. “My family loves Spudnut,” he said.

uBUSINESS BRIEFS Benton County deposits $740K in wrong account after falling for scam

Benton County reports it was the victim of a phishing scam that led it to deposit more than $740,000 in an incorrect bank account in late 2019. Fortunately for the county, the bank froze the account shortly after the deposit, but not before $23,000 had been taken out. The county said it was asked to update the payment information for a contractor working on county construction projects in October. In November, after receiving legitimate invoices, it deposited the money in the account. It discovered the scam in December. Federal authorities have seized the $717,000 left in the account after it was frozen. Benton County said it is working with authorities to have the seized money returned. It has not identified a suspect. The county has paid the invoice of the actual contractor. The theft occurred as the county was transitioning to new administrators following the retirement of its longtime manager. It said it is reviewing internal policies and procedures to avoid being vulnerable to similar scams.

Year-end jobless rate is lowest in recent memory in Tri-Cities

The Tri-Cities posted the lowest year-end jobless rate in recent memory, according to figures released by the Washington Employment Security Department. The local jobless rate was 5.9 percent in December, compared to 6.5 percent in 2018, 6.7 percent in 2017 and 7.3 percent in 2016. The December rate was half a point higher than November, reflecting the seasonal mid-winter trend upward when construction and agricultural activity slow down for the winter. There were 147,420 people in the TriCity civilian workforce in December. Of those, 8,755 were looking for work. The Washington state unemployment rate was 3.9 percent in December.

TRI-CITIES AREA JOURNAL OF BUSINESS | FEBRUARY 2020

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HEALTH CARE Clinic sees spike in number of kids affected by too much screen time By Wendy Culverwell editor@tcjournal.biz

Melissa Porcaro is all too aware of the irony. Tri-City parents turn to the internet to find someone to help kids with behavior issues, academic challenges and other difficulties. Their searches lead to her business, CAN Do Kids, a pediatric therapy clinic staffed with licensed occupational therapists who help children with life skills and physical development challenges. The very internet that drives business to her practice is increasingly the reason some children need help. “Our biggest thing is technology addiction,” she said. Porcaro, a licensed therapist, opened CAN Do Kids in her Tri-City home seven years ago and later moved to leased office space at 1950 Keene Road in Richland. Today, she employs seven and is preparing to add certified occupational therapists to keep up with the growing number of young patients. Children are typically brought in by their parents or referred by schools or physicians who are concerned about bad behavior, aggression, anxiety or other issues that affect school performance and personal lives. Treatment is often covered by insurance. Porcaro begins every case with a consultation with parents. She sends them home with a job: Watch your household for a few days. What are your kids doing? What are they eating? She advises a three-week detoxification period to wean kids from screens – TV,

Photo by Wendy Culverwell Melissa Porcaro established CAN Do Kids, a pediatric occupational therapy clinic in Richland, seven years ago. The clinic treats children with a variety of disorders that affect their interactions with others and can lead to behavioral and other challenges in school and social settings. Porcaro said technology addiction is a growing symptom for many children.

computer, smartphones and tablets. She encourages families to exchange screen time for outdoor time – camping, dirt biking, skiing, hiking or any other physical activity that doesn’t involve games and the internet. “You can have a ball fishing with your kids,” she said. By the time they return for formal evaluations, most report improved behavior. It wasn’t always that way. Technology addiction is a relatively new phenomenon for occupational therapists,

Porcaro said. When she began her career, most young OT patients had developmental disabilities and needed help with basic life skills.

Porcaro grew up in Houston and studied occupational therapy at Texas Women’s University after initially considering a career in the family business – criminal justice. She opened her first pediatric OT clinic with a partner in Houston. Porcaro managed the business side of the clinic while her partner treated patients. The partners sold the business to Texas Children’s Hospital after 12 years. Porcaro became a full-time mother as her now ex-husband’s Bechtel career took them to posts around the country and the world. Bechtel eventually brought them to the Tri-Cities. She returned to the workforce after finding herself a single mother to three children, now mostly-grown. Her son is a cadet at the U.S. West Point Military Academy. Her youngest, Nicole, works at CAN Do Kids after school and recently received an appointment to all three U.S. military academies. She was the only student in the area to receive an appointment to all three. Her sights are set on the U.S. Naval Academy. uCAN DO KIDS, Page A15

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Health Care

Access to Tri-City health care could stand to improve For several years, the greater Tri-City economy has been firing on most cylinders. Median household income has climbed 11 percent in the past five years. Local income is, and has been, higher than the U.S. median for several years, unique among Eastern Washington metros. Wages, as measured by the annual average, have gone up 14 percent over the same period. The two counties employed nearly 15,000 more in 2018 than in 2014. What’s not to like?

Well, maybe trying to see a doctor. Unlike the economy, the health care sector cannot boast of high performance in securing access to a medical proD. Patrick Jones vider. Consider Eastern Benton-Franklin Washington Trends data on University the share of adult GUEST COLUMN population with a primary care provider. In 2018, that share stood at 71 percent. This was below the Washington state rate of 75 percent. Over time, the rate in the two counties has typically been below that of the state. And noteworthy is that the share has actually declined since 2012. A hallmark of health care reform is to provide a “medical home” for patients, anchored by a primary care provider. In 2018, this home didn’t exist for nearly 30 percent of local residents. Where might these patients receive care? A common “solution” is the emergency departments of hospitals. Another, with various providers at an outpatient facility. Yet another, not seeing any providers at all. How might we unpack this trend? Access to services depends on many factors. An obvious one is the ability to pay for services, usually through health insurance. How do residents of the greater Tri-Cities fare on insurance? As Trends data reveals, not so well. After some improvement after the implementation of the Affordable Care Act, the number of residents without health insurance has risen by over 7,000 in the last three years. Or, the rate of those without insurance has gone up from 8.4 percent in 2016 to 10.5 percent in 2018. As the data shows, the steepness of this increase runs counter to experiences of the state and the U.S. Both have witnessed only a slight increase. The rate in the two counties now stands at four percentage points higher than Washington’s, and 1.5 points higher than the nation’s. Why this rise? As the data shows, the experience here isn’t too different from that of the state or county. It’s just more pronounced. One likely cause is the repeal of individual mandate. Another is the diminished funding for outreach. In the end, it is hard to have a primary care provider if one doesn’t have insurance. Insurance status affects demand for medical services. The number of doctors (and more generally of all patient-focused occupations) affects the supply of services. Trends data shows a gain of 28 physicians in the past five years in the two counties. That’s 5 percent and it may seem like a lot, but it is well below the population growth of for those five years, 8 percent. As a result, “physician density” in the two counties remains low. The current ratio of physicians per 1,000 residents,

uHEALTH CARE, Page A16

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Q&A

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CARLOS OLIVARES

Chief Executive Officer Yakima Valley Farm Workers Clinic

Number of employees you oversee: Last year we employed 2,015 employees, and 623 volunteers and career placements. This includes 166 medical providers, 35 dentists and 18 pharmacists. What is Yakima Valley Farm Workers Clinic? Yakima Valley Farm Workers Clinic is a Community Health Center and a system of care that serves people who live in poverty. We are uniquely suited to assist individuals who have more challenges than the average, middle-class community member. In addition to medical and dental care, we provide integrated behavioral health, integrated nutrition services and whole host of additional programs and services. Brief background on the organization: Yakima Valley Farm Workers Clinic was founded in the 1970s to address the health care needs of migrant and seasonal agricultural workers living in the Yakima Valley. Over the course of the last four decades, we have grown to serve communities across Washington and Oregon where people are struggling to support their families. How did you land your current role? How long have you been in it? What drew you to this work? I was recruited by organization in 1986. After my interview, I accepted the position which I have now held for 36 years. There was significant need in the community, and I felt that I was well suited to help the board of directors meet that need. Tell us about your business model and why it works when so many health care organizations are struggling? We have built our infrastructure to ensure that we deliver high quality care, which ensures that our patients are

satisfied with the care we provide and, therefore, we have patients who have been loyal to our organization for the last 35 years. We run a business and as such, we must ensure that part of our strategy is to think about long-term sustainability. Managing our resources is a major priority in our organization. Sustainability is not all about resources, but is also about ensuring that we recruit and retain the right people dedicated to the mission of our organization. We have been incredibly successful in retaining our staff by ensuring that they have the tools they need to be successful in their work. What should Tri-Citians know about the organization and its local clinics, including the Miramar Clinic, which is being built near Vista Field in Kennewick? As an organization, we have a long history of caring for the migrant/seasonal community as well as the low-income community which struggles getting the appropriate care. The community should know that we are a fully integrated health care system dedicated to improving the lives of our communities. This means, when a patient comes to see us, we will deliver their medical, dental, behavioral health, nutritional health care and more. Our new Miramar Health Center in Kennewick will expand its services to address not only medical care patients need, but also dental, pharmacy, social services as part of our integrated model. What is one characteristic that you believe every leader should possess? An understanding of the population we uOLIVARES, Page A15

Carlos Olivares

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TRI-CITIES AREA JOURNAL OF BUSINESS | FEBRUARY 2020

Health Care OLIVARES, From page A13 are serving, having the compassion to care for the people in your communities and to be a fiscally responsible individual. What is the biggest challenge facing you as a manager today? We are continually challenged by the lack of health care professionals willing to do the work we do in the locations in which we provided that care. Human capital is the most difficult to attain and to retain. If you had a magic wand, what would you change about your field? I would build a completely new reimbursement system that rewards performance and outcomes focusing on access and quality of care. What advice would you give someone going into a leadership position for the first time? Create a vision, build good partnerships and be fiscally responsible; three of the CAN DO KIDS, From page A11 The “CAN” in CAN Do Kids honors her children – Clayton, Anthony and Nicole. It began in her home so she could be there when Nicole came home from school. The garage was a therapy clinic, the porch a waiting room and her yard a playground for her patients’ antsy siblings. The business outgrew the garage and is about to outgrow its two-story digs in south Richland. Porcaro hopes to replicate the homey atmosphere of her home-based business by finding a centrally-located location with plenty of outdoor space for

critical elements to build a consistent and successful delivery system. Who are your role models or mentors? Dr. Monahan, a dedicated physician who provided health care for the migrant/ seasonal farmworkers at a time where there was very little support from the community for that type of work. He was a good mentor and someone I admired. I always was amazed at the courage and the commitment that Cesar Chavez had toward serving the migrant/seasonal farmworker. How do you measure success in your workplace? If we have created access to care for patients who otherwise are struggling to get services and we have treated our patients with care and dignity, then we are very successful. How do you keep your employees motivated? We provide them with the tools that they need to be the best they can be in the physical activities. Weaning children from their screens and the attendant therapy to compensate for sensory issues is just part of the CAN Do Kids menu of services. The clinic helps children with issues related to fine motor delays, sensory processing challenges, autism spectrum disorders, visual/perceptual delays, handwriting concerns, prematurity, cerebral palsy, attention deficit hyperactivity disorder, known as ADHD, and speech disorders, among others. CAN Do Kids: 509-392-3773; Campcankids@gmail.com; campcankids.com.

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work that they are doing. We pay them well so that they feel valued and we provide them with opportunities to advance and learn. What do you consider your leadership style to be? I have always attempted to be focused on our patients and have created a culture of responsibility that has allowed us to grow and be an organization that focuses on our communities. Leadership, in my opinion, is not a question of style but a question of results. How do you balance work and family life? It is always a difficult task in that both are incredibly important and are a major priority in my day to day life.

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What do you like to do when you are not at work? Play tennis and ride motorcycles. What’s your best time management strategy? I don’t have one. The work needs to be done and I need to attend to my family and I do both the best way I can. Best tip to relieve stress? Stay organized and be consistent. What’s your favorite book? My favorite book is “The House on Mango Street,” by Sandra Cisneros, and “One Hundred Years of Soledad,” by Gabriel Garcia Marquez. Do you have a personal mantra, phrase or quote you like to use? When it comes to our work, ‘no’ is a temporary obstacle.

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Washington prepares to battle coronavirus By Tri-Cities Area Journal of Business

Washington is preparing to battle with coronavirus, the emerging health threat that originated in China. The state Health Department is the lead. It announced on Feb. 4 that it stands ready to isolate and quarantine travelers from China, working with partners to implement federal measures announced in January to control the spread. The World Health Organization declared a state of emergency for the novel coronavirus, or 2019-nCoV. The illness is concentrated in China but has spread to the U.S. There were 12 con-

firmed cases in the U.S. and one in Washington state in early February. Elsewhere, officials have been responding to false reports. As of Feb. 11, there were 43,100 confirmed cases worldwide, with most in China. The illness claimed 1,017 lives in China and one outside. In Washington state, the outbreak means heightened awareness and scrutiny for air travelers arriving at Seattle-Tacoma International Airport from China, particularly from Hubei, the center of the breakout. The Department of Homeland Security and the Centers for Disease Control and Prevention are screening travelers from

China. Ill passengers will be isolated, evaluated and if needed, hospitalized. The state also created a command center to respond to the outbreak by elevating the Emergency Operations Center at Camp Murray to Level One, putting it on full-activation status to respond to the virus. The operations center includes a Joint Information Center, where representatives from public health and medical services, agricultural and natural resources work together. The World Health Organization recommends these steps to reduce exposure: • Wash hands frequently with soap and water or use alcohol-based hand rub.

• Cover coughs and sneezes with a flexed elbow or tissue. Discard soiled tissues immediately and wash hands. • Keep a distance of at least three feet from other people, particularly those who are coughing, sneezing and have a fever. • Avoid touching your eyes, nose and mouth. • Seek medical help if experiencing a fever, cough or difficulty breathing. Tell your doctor if you’ve traveled in an area where the virus has been reported. • Avoid consumption of raw or undercooked animal products. Track the virus’ status at who.int and doh.wa.gov/Emergencies/Coronavirus. HEALTH CARE, From page A12 1.9, is less than half of state average! And the comparison to Washington has actually gotten worse over time. Why might this have happened? One reason is obvious – the greater Tri-Cities has gained quite a few new residents. The population’s five-year compounded annual growth rate stands at 1.7 percent. Franklin and Benton counties rank fourth and seventh, respectively, among all Washington counties for population growth. The more people, the greater need for providers. The second reason lies in the tight spigot of Washington-trained doctors (as well as nurses and other primary care providers). The number of graduates at the University of Washington stood at 222 in 2018, a number unchanged for several years. Yakima’s Pacific Northwest University has helped fill the gap, with 137 graduates in 2018, nearly double from 2015. There is even more change on the horizon for physicians. The Elson Floyd School of Medicine at Washington State University should graduate its first cohort in 2021, numbering 60, and will grow to 80. Both PNWU and WSU are likely to yield a high percentage of students who will stay in the state and for that matter the eastern side. What are the consequences of constrained access to care? One lies in hospitals finance. Per Washington state law, hospital must accept any patient who shows up at their doors, regardless of their ability to pay. Uncompensated care from these patients is known as charity care. This type of care among the four hospitals in the two counties nearly doubled between 2015 and 2018, from $22.7 million to $42.6 million. Another consequence is that overall health suffers. As Trends data reveals, suicides, both levels and rates, have climbed over the same interval. So have adult obesity and youth obesity rates. A robust economy, for sure. But there’s much work to be done in providing access to all residents. Should that happen, better outcomes will follow. D. Patrick Jones is the executive director for Eastern Washington University’s Institute for Public Policy & Economic Analysis. Benton-Franklin Trends, the institute’s project, uses local, state and federal data to measure the local economic, educational and civic life of Benton and Franklin counties.

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Providence tackles provider burnout with virtual counseling By Tri-Cities Area Journal of Business

Burnout rates among health care professionals is a growing issue nationwide. About 44 percent of health care providers experience signs of burnout, such as stress, anxiety and depression, according to Medscape, which tracks the medical industry. Recognizing the need, Providence launched Telebehavioral Health Concierge for caregivers and their dependents throughout the state, including at Richland’s Kadlec. The service is now available to 40,000 employees and family members of Providence organizations and partners It is a new program, granting access to virtual appointments for confidential, convenient mental health care. The program provides same-day or next-day access to licensed mental health professionals for help with addressing burnout and other mental health concerns. Across Washington it’s also offered at Providence Health & Services, Swedish Health Services, and Pacific Medical Centers. Providence’s remaining family of organizations plan to adopt the service by the end of 2020, making it available to 119,000 employees and their 80,000 to 90,000 dependents across seven states. “We heal others best when we are healthy ourselves, mind, body and spirit,” said Dr. Amy Compton-Phillips, executive vice president and chief clinical officer, in a news release. “The Telebehavioral Health Concierge is one way to support the well-being of all who serve in our facilities and communities. We’re excited about seeing this innovative service scale and making it available to more people in need.” The concierge began as a pilot several months ago, leading to more than 1,100 virtual appointments. Initial feedback from participants further validate the need for greater access to behavioral health services and more convenient solutions, according to Providence officials. Nearly 50 percent of participants surveyed said they would have not sought professional help if they didn’t have access to this service, or known where else to seek help. “Growing a virtual care network to improve access across the western United States is important, because it enables us to deliver tailored care to those struggling to get or find help,” said Dr. Todd Czartoski, telehealth chief medical officer. “The opportunity to care for our own is really special, and we are thrilled to see such a robust response to this service.” The concierge is the latest initiative in Providence St. Joseph Health’s longstanding efforts to address caregiver burnout, officials said. Previously, Providence St. Joseph Health partnered with other health systems and the Institute for Healthcare Im-

provement in an initiative called Joy in Work. Other initiatives included mental health first aid classes to train caregivers to appropriately respond to someone in a mental health crisis, scheduled monthly compassion networking calls and the implementation of training and protocols to help address existing and emerging workplace dangers and find ways to reduce them.

Courtesy Providence A Providence caregiver meets with Josh Cutler, a licensed independent clinical social worker, for a telebehavioral health visit.

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uAWARDS & HONORS • Rich Breshears of Breshears Professional Photography in Kennewick has earned the photographic craftsman degree Rich Breshears from Professional Photographers of America, a nonprofit photography trade association. The degree was presented at the association’s annual convention, Imaging USA, held Jan. 19-21 in Nashville, Tennessee. Breshears has met the standards of excellence set by PPA in recognition of his service to the photographic

profession as an orator, author and mentor. In 2020, he was one of only 59 recipients. In addition to the degree, Breshears earned a master’s of photography in 2017, is a certified professional photographer, or CPP, of which less than 1 percent of all photographers hold degrees in, and is a CPP liaison, assisting other photographers to become CPPs. Rich and his wife, Mary Ann, own and operate the Kennewick studio. • Fields of Grace received the 2019 fresh results award from the Washington Food Coalition for its efforts to address food insecurity throughout the community. The award highlighted Fields of Grace’s collaboration with the agriculture programs at Columbia Basin College and Washington State University Tri-Cities. In 2019, Fields of Grace gleaned 87 tons

of fresh produce for area food banks and other food distribution points. • Kadlec Regional Medical Center in Richland earned a five-star quality rating from the Centers for Medicare and Medicaid Services, or CMS. It is one of three hospitals in Eastern Washington to earn the designation. The CMS Hospital Compare evaluation looks at quality measures related to mortality, safety of care, readmission, patient experience, effectiveness of care, timeliness of care and efficient use of medical imaging in more than 4,500 hospitals across the United States. • Columbia Basin College received the 2019 Tree Campus USA recognition from the Arbor Day Foundation for its commitment to urban forest management. The Tree Campus USA program honors

colleges and universities for effective campus forest management and for engaging staff and students in conservation goals. CBC achieved the title by meeting Tree Campus USA’s five standards, which include maintaining a tree advisory committee, a campus tree-care plan, dedicated annual expenditures for its campus tree program, an Arbor Day observance and student service-learning project. • Astria Health’s Sherry Jivelekas, a registered nurse, family nurse practitioner, and clinical director of Astria Sunnyside Hospital Cancer Center, will receive the Employee Support of Guard and Reserve’s Patriot Award, on Feb. 28. The award program was established in 1972 to protect and promote supportive work environments for service members in the U.S. Reserve and National Guard. The award recognizes employers who support the Reserve and National Guard men and women during times of activation, training and deployments. Lee Jackson, a certified nurse practitioner at the center who is also a medical director major in the Army Reserve, nominated Jivelekas for the award. He said he appreciates Astria Health and Jivelekas’ support when he has had to deploy. Jackson joined the Army in 2001 after 9/11. In March, he will deploy for the 8th time during his 18-year Army career. Jivelekas, clinical director, has served in this role at the cancer center since it was opened by Astria Health in March 2016. • Pasco/Tri Cities KOA has won KOA’s 2020 President’s Award. The award is presented to KOA campgrounds that excel in providing great camping facilities and consistently high levels of guest service. Recipients are chosen by KOA’s camping guests through satisfaction surveys and KOA’s own quality inspection.

Toyota of Tri-Cities’ Carmen Marquart, sales and marketing manager, right, and Kat Lawrence, Pasco Kennewick Rotary past president.

• Toyota of Tri-Cities has received the Pasco Kennewick Rotary Club’s Four Way Test Award for supporting the community and honoring the test, which poses four questions: Is it the truth? Is it fair to all concerned? Will be it build goodwill and better friendships? Will it be beneficial to all concerned? The company has been a primary sponsor of the Rotary Duck Race for 15 years. Rotary also cited Toyota of Tri-Cities’ support of other community projects, including Toys for Tots, Burst a Bus project to collect school supplies for kids in need, Gesa Carousel of Dreams and Kennewick Police Foundation.

TRI-CITIES AREA JOURNAL OF BUSINESS | FEBRUARY 2020 uBUSINESS BRIEFS Nonstop flight helped push Tri-Cities Airport to record year in 2019

The Tri-Cities Airport reported nearly 440,000 passengers boarded planes in 2019, a new record for the Pasco facility. Overall, the airport processed nearly 890,000 arriving and departing passengers. The 11 percent gain was fueled in part by United Airlines’ addition of a nonstop flight to Los Angeles International. The airline later announced it would discontinue the daily run for lack of interest. The Port of Pasco, which operates the regional airport, credited Allegiant Airlines’ decision to assign larger Airbus planes to its Pasco routes with helping boost the numbers as well. The four airlines serving the TriCities all reported increases in 2019 passenger counts. United boarded 75,445 passengers in 2019, a 25 percent increase. Allegiant Airlines boarded 42,329 passengers, a 13 percent gain. The airport’s busiest airlines, Delta and Alaska, both reported eight percent increases. Delta boarded 181,781 passengers while Alaska Air boarded 138,568. Despite the loss of the LAX flight, the Tri-City Airport is positioned to match its performance in 2020. United Airlines is offsetting its decision to cancel the Los Angeles with the additions of a second nonstop flight to San Francisco and a redeye flight to Chicago O’Hare. The Chicago flight begins in June. Go to flytricities.com for more flight details.

Tri-City Americans host ‘Pink Ice’ night for breast cancer The Tri-City Americans hockey team hosts its 15th annual Pink Ice Night to draw attention to breast cancer and raise money for the Tri-Cities Cancer Center Foundation. The program begins at 7:05 p.m. Feb. 28 at Toyota Center in Kennewick. Discounted tickets are available for $12 through the foundation, 509-737-3413. The rink will be painted pink. Pink game jerseys worn by the players will be auctioned at the game. Commemorative T-shirts will be available with a donation and there will be a silent auction on the concourse. Warrior Sisterhood, a support group to empower local women with cancer or cancer-related diagnoses, will display decorated luminary bags honoring and remembering those who faced cancer on the mezzanine during the program. Those wishing to include their loved ones’ names can buy a bag for $5 through the cancer center foundation office or through the Warrior Sisterhood Facebook page. They’ll also be sold during the Feb. 14-15 Ams games. Purchase luminary bags before Feb. 24.

State approves new rates for Cascade customers

State regulators approved a settlement for Cascade Natural Gas resulting in a rate increase for customers on Feb. 3. The new rates are effective March 1. The three-member Utilities and Transportation Commission approved an all-party settlement resulting in a $6.5 million, or 2.8 percent, increase in Cascade’s natural gas annual revenues. The settlement cut by almost half the company’s originally requested rate increase of $12.7 million, or 5.6 percent. The average residential customer using 57 therms a month will pay $1.45 more, for an average monthly bill of $47.46. The settlement allows Cascade to earn a 7.2 percent overall rate of return,

instead of the 7.7 percent rate of return the company originally requested. The commission received 17 public comments on Cascade’s rate increase proposal, all opposed. In September 2019, UTC staff, Cascade, the Public Counsel Unit of the Attorney General’s Office, the Alliance of Western Energy Consumers, and The Energy Project filed the settlement agreement on the company’s request to raise rates. Cascade’s last general rate increase was in 2018. Kennewick-based Cascade Natural Gas Corporation serves almost 220,000 residential and business customers in 68 communities throughout the state, including Kennewick.

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Kennewick Man and Woman of Year set for Feb. 24

The Kennewick Man and Woman of the Year banquet is Feb. 24 at the Three Rivers Convention Center in Kennewick. A social is at 6 p.m. and dinner is at 6:30 p.m. with the awards ceremony following. Cost is $40 per person, or $400 for a table of eight. Reservations must be paid no later than Feb. 20. For information or to RSVP, call 509987-5822 or go to kmwoy.com.

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TRI-CITIES AREA JOURNAL OF BUSINESS | FEBRUARY 2020 uBUSINESS BRIEFS Learn about apprenticeships at Feb. 19 career fair

WorkSource Columbia Basin’s apprenticeship 101 Career Fair is from 2-4 p.m. Feb 19 at the Byron Gjerde Center at Columbia Basin College, 2600 N. 20th Ave., in Pasco. Nearly 90 percent of apprentices are employed after completing their apprenticeship and that their average starting salary is $60,000 a year, according to WorkSource. There will be a brief presentation about the basics of apprenticeship and an opportunity to learn about local opportunities with Laborers’ International Union of North America Local 348, Northwest Laborers Training, International Brotherhood of Electrical Workers National Electrical Contractors Association 112 Electrical Training Center, Southeastern Washington/Northeastern Oregon Sheet Metal Training, Construction Industry Training Council of Washington, and WorkSource Columbia Basin, among others. For more information on registered apprenticeships, find WorkSource Columbia Basin on Facebook, or go to http://bit.ly/ WorkSourceApprentices.

CBC hosts Ag Camp for girls during spring break

Columbia Basin College will conduct an agriculture-oriented camp for high school and college-age girls and women during spring break in April to promote farm-related careers. The camp is supported by a two-year grant from the American Association of University Women to encourage women to pursue careers in agriculture. Up to 50 students are expected to participate over the course of the grant. The 2020 camp takes place April 6-10 on CBC’s Pasco campus. Campers will spend the week getting hands-on training in planting, transplanting, fertilizing and irrigation, working with GPS, geographic information systems and drones, touring local farms and agriculture companies, and hearing from guest speakers, including successful women in agriculture. For information, contact the program director, Sandya Kesoju, at skesoju@ columbiabasin.edu or 509-542-4367.

WSU seeks to fill library with Mattis’ favorite books

Washington State University Tri-Cities is accepting donations to stock a new library with the 100 titles James Mattis said influenced his military career. The books will be available to students through the General James Mattis Leadership Library in the WSU Tri-Cities veterans’ center. Mattis, a retired Marine Corps general and President Donald Trump’s first Secretary of Defense, made the point that reading is important to leadership in his own recent book, “Call Sign Chaos.” The aim of the campaign is to stock at least one copy of each of the 100 books Mattis included on his recommended reading list. Local author C. Mark Smith is leading the fundraising effort. Go to tricities.wsu.edu/give to make a donation and for a list of Mattis’ picks.

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RETIREMENT AARP study: Age discrimination costs economy billions a year By Tri-Cities Area Journal of Business

Age discrimination against people age 50 and older robbed the economy of $850 billion in 2018, according to a new AARP report. Research shows that the 50-plus population contributed 40 percent of the U.S. Gross Domestic Product, or GDP, in 2018, creating 88.6 million jobs and generating $5.7 trillion in wages and salaries through jobs held directly or indirectly, according to information from the AARP and Economist Intelligence Unit. But older workers would have contributed a massive $850 billion more in 2018 to the GDP if they could have remained in or reentered the labor force, switched jobs or been promoted internally, according to the study. In other words, the elimination of that bias in 2018 would have increased the contribution of the 50-plus cohort to the GDP from $8.3 trillion to $9.2 trillion, according to the study. The research also projects that the potential contribution of the older population could increase by $3.9 trillion in a no-age bias economy, which would mean a total contribution of $32.1 trillion to GDP in 2050.

“This important report shows the cost to the entire economy of discriminating against older workers,” said Debra Whitman, AARP’s executive vice president and chief public policy officer. “The economy in 2018 could have been 4 percent larger if workers did not face barriers to working longer.” “Studies have shown that older workers are highly engaged, with low turnover, and often serve an important role as mentors,” Whitman added. “Their expertise helps businesses and pays big dividends for the economy as a whole. Employers who embrace age diversity will be at an advantage.” The AARP report comes on the heels of approval by the U.S. House of Representatives of bipartisan legislation to combat age discrimination, the Protecting Older Workers Against Discrimination Act. “The House vote sends a strong bipartisan message that age bias has to be treated as seriously as other forms of workplace discrimination,” said Nancy LeaMond, AARP executive vice president and chief advocacy and engagement officer, in a news release. “Age discrimination is widespread, but it frequently goes unreported and unaddressed.”

24.3 Backed by 22.2 AARP, POWADA would address an 18.7 adverse 2009 Supreme Court deci16.4 sion that made it 16.3 much more diffi15.9 15.9 cult for older work12.7 ers to prove claims 10.8 10.9 10.7 10.3 of illegal bias based 8.9 on age. The legisla8.5 7.2 7.1 tion would restore long standing pro3.6 tections under the 1.1 0.8 Age Discrimina0.0 5-6 years 7-9 years 10-14 years 15-19 years 20-plus years tion Employment All 50-plus 50-64 65-74 75-plus Act, which covers workers aged 40 More than 40 percent of workers age 65-plus intend to and over. continue working into their 70s. The graph shows the The new study percentage of employed people who intend to keep included a survey working for various numbers of years, by age group. last July and Au- Source: Economist Intelligence Unit /AARP • missed opportunities for wage growth gust of 5,000 peo• lost earnings following involuntary job ple age 50-plus to identify how they have separation experienced age discrimination at work or • longer periods of unemployment comwhile looking for work. pared to younger workers The survey analyzed: • people age 50 and older who dropped • involuntary retirement due to age bias out of the labor force, but want to con• 50-plus workers involuntarily in parttime jobs tinue working.

HANFORD E D IT IO N In the April 2020 issue of the Tri-Cities Area Journal of Business, we will take a closer look at Hanford’s profound influence on our community. Read updates from regulators and contractors, and learn about the latest on cleanup efforts.

Sponsorship opportunities available. For more information, call (509) 737-8778 Chad ext. 1 or Tiffany ext. 2

DEADLINE: FRIDAY, MARCH 20, 2020

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TRI-CITIES AREA JOURNAL OF BUSINESS | FEBRUARY 2020

Retirement

Your financial planner and your attorney should be talking Sometimes the concept of financial planning is considered distinct from the more laborious and esoteric task of estate planning. The financial plan is the “low hanging fruit” that is first to be addressed. However, in many important respects, the two should be considered contemporaneously to establish a more robust, holistic plan. A brief review of each concept is helpful. Financial planning is the process and resultant plan that speaks to an individual or couple’s financial situation during life. Financial planning considers current income and assets, projections for future assets and income, current expenses and

projections for future expenses. It is a method to plan for major life events such as retirement. By way of example, a couple in their Beau Ruff 50s may seek fiCornerstone nancial planning Wealth Strategies assistance to GUEST COLUMN determine what steps they need to implement to be able to retire at their accustomed standard of living by age 62. The financial planner can model vari-

ous market scenarios, investment returns and life decisions, then add options and planning strategies to show the effect on the financial plan. Finally, the financial planner can suggest strategies to implement and monitor the plan to help the couple pursue their goals. Financial planning is generally performed by licensed financial planners. In contrast, estate planning is the process of planning for the distribution of your assets after your death and the process of planning for your incapacity while you are alive. The resulting documents might include wills, trusts or powers of attorney or health care directives. Estate planning is performed by licensed attorneys. Regrettably, it is rare that the financial planner and the attorney have the time or opportunity to discuss strategies together prior to either implementing a plan. The coordination adds to the cost, complexity and, frankly, the hassle of establishing and modifying the plan at inception and as variables change through the years. Nonetheless, the coordination between the attorney and the financial advisor is vital to producing the best overall outcome for the client. Examples help to illustrate this point. Often, the estate planning attorney gathers information from a client regarding current asset information but does not extrapolate asset growth like a financial advisor. The attorney may see that, today,

the clients don’t need any estate tax planning and therefore the attorney does not incorporate any estate tax avoidance mechanisms. However, the financial advisor has modeled a taxable estate based on income and savings and market projections. The attorney should be aware of that to start discussing estate tax avoidance techniques. Often, the financial advisor is less concerned with the client’s vision for the estate plan other than just the fact that the client has an estate plan. The financial advisor may not know that the client has decided (in consultation with the attorney) that 20 percent of the estate should go to charity upon the client’s death. The attorney simply drafts the vision into the estate plan. But, had the financial advisor recognized that part of the estate plan, he or she may have modeled additional giving techniques. For example, the financial advisor may have proposed a gift to a charitable remainder trust that would hit three sweet spots for the client: • Provide a stream of income back to the client for life, thus providing the security and income through retirement years • Provide an immediate tax deduction (which a gift at death does not do) • Accomplish the client’s goal of giving a sum to the charity at death.

uFINANCIAL, Page A27

TRI-CITIES AREA JOURNAL OF BUSINESS | FEBRUARY 2020

Retirement

Retirement planning starts with honest assessment of your spending today For many of us, retirement funding is a central fixture of our financial plan and one of the most important considerations is determining the income necessary to sustain a desired lifestyle. Knowing the true income needed for your lifestyle is the foundation of determining what capital resources must be acquired, which is then used to determine a savings and accumulation plan. It all starts with knowing “lifestyle income need.” Lifestyle income need is your financial plan’s point of origin. “For every complex problem there is an answer that is clear, simple and wrong,” said H.L. Mencken, a cultural critic. I’ve learned over the years that many clients can easily answer the question, “How much have you spent per month on average, over the past year?” Unfortunately, that answer is often wrong. It’s not their fault – it’s human nature to underestimate our spending. In fact, every time I make a purchase, I find myself surprised by the total. Recently I mailed a one-pound package and bought a roll of stamps. The total for this purchase came to $66! Scale that experience all the way up to encompass our total household expenses, and it’s easy to see why we typically underestimate just how much our lifestyle actually costs. Often when someone makes an effort to estimate income need, they begin at the wrong end of the equation by attempting to itemize expense categories. Without accounting for the unexpected, this process is not only tedious,

it’s doomed to fail. The following is a very simple exercise to estimate income need for your current Ben Messinger lifestyle. HFG Trust Step 1 is to identify your GUEST COLUMN total bank account balances at both the beginning and end of last year. Next, total up all deposits – any income you put into your bank account(s) —be it from paychecks, the boat you sold, etc. Now we’ll apply simple arithmetic to learn some important things about your lifestyle. Take your ending bank balance and subtract your beginning balance. We will call this your balance change. Is the number positive or negative? If the number is positive, you lived within your means. If it is negative, you spent more last year than you earned. Was last year an unusual year? Was there a large, planned expense you saved up for over several years? Were there any large, unusual expenses? Now take the sum of all your deposits —what we will call take-home income —and subtract your balance change. The result should represent the amount of money you actually spent during the year. This is an important number because it represents the cost of funding your

current lifestyle. No need to itemize. Last year you did all the things you usually do, and that’s how much it cost. Now there are just a few minor adjustments to make. If you have any major expenses today which you do not plan to have in retirement, back them out. For example, if you have a mortgage today that you will not have in retirement, subtract the principle and interest portion, leaving the taxes and insurance portion. Additionally, if you expect any new major expenses in retirement, add them. You now have a baseline number to begin your retirement planning. Why is this number so useful for retirement planning? The answer is simple: your current lifestyle is the best proxy you have for your future lifestyle. People often anticipate a different retirement lifestyle with less spending. I don’t believe this is a prudent way to plan. When you retire you will be the same person you are today. The lifestyle you are comfortable with now is the same lifestyle you will likely want to continue. With a good income-need estimate in hand, you are now ready to begin the process of identifying the capital resources necessary to provide that income when you commence retirement. But it all begins with an honest and accurate evaluation of your current lifestyle expenses. Ben Messinger is a certified financial planner and financial advisor with HFG Trust in Kennewick.

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uBUSINESS BRIEF AARP offers free tax help throughout Tri-Cities

The AARP Foundation is providing free in-person tax assistance and preparation through April 15 through its TaxAide Program. AARP Foundation Tax-Aide volunteers are trained and IRS-certified each year to ensure they know about and understand the latest changes to the U.S. Tax Code. Assistance is being offered in the following locations: • Richland Public Library, 955 Northgate Drive, 5-7:30 p.m. Wednesdays and 9:30-11:30 a.m. Saturdays. Call 509-9427454. • Richland Community Center, 500 Amon Park Drive, 8:30-11:30 a.m. Tuesdays and Thursdays. No clients accepted after 11 a.m. Call 509-942-7529. • Mid-Columbia Libraries, Kennewick branch, 1620 Union St., 5-7:30 p.m. Mondays; 5 to 7:30 p.m. Tuesdays; 12:30-3 p.m. Thursdays. First Monday of month, open at 6 p.m. Second Tuesday of month, closed (Feb. 11, March 10 and April 14). Closed Presidents Day on Feb. 17. Call 509-783-7878. • Pasco Police Community Center, 215 W. Sylvester St., 9-11:30 a.m. Mondays and Wednesdays. • Mid-Columbia Libraries Pasco branch, 1320 W. Hopkins St., 2-5 p.m. Wednesdays. Call 509-545-1019. • Mid-Columbia Libraries Keewaydin Park branch, 405 S. Dayton St., 12:305:30 p.m. Wednesdays; 10:30 a.m. to 12:30 p.m. Saturdays. Call 509-5863156. • Burbank Library, 875 Lake Road, 4-6 p.m. Thursdays and 9:30 a.m. to 1 p.m. Saturdays. Call 509-545-6549. For more information, including which documents to bring to the tax site call 888-227-7669 or go to aarpfoundation. org/taxhelp.

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TRI-CITIES AREA JOURNAL OF BUSINESS | FEBRUARY 2020

AARP pushes for automatic IRAs to boost retirement savings By Tri-Cities Area Journal of Business

AARP Washington is championing a bill to require employers that do not offer retirement plans to make an “automatic enrollment” Individual Retirement Account available to their workers. House Bill 2516, the “Secure Choice Retirement Savings Program,” was pending in the House of Representatives in midFebruary. AARP says the bill is a necessary antidote to a retirement crisis that leaves employees of some small businesses without a way to save for retirement. According to AARP, more than 1.1 million Washingtonians work for an employer that does not offer a retirement savings plan, or 45 percent of private-sector em-

ployees. Small businesses are less likely to offer plans, AARP said. The bill, sponsored by Rep. Davina Duerr, D-Bothell, would facilitate voluntary retirement savings by workers by establishing an IRA savings program with automatic enrollment and requiring employers that do not offer retirement plans to make it available to their workers. “Large numbers of households in this state have no or inadequate retirement savings and many of those households do not have access to any savings plan at work,” the bill reads, adding that the problem will challenge state budgets. “Washington state is deeply concerned about the retirement prospects of its citizens and the strain that large numbers of ill-prepared retirees may impose on tax-

payer-financed elderly assistance program for housing, food, medical care and other necessities.” AARP said 91 percent of workers who don’t have access to a retirement plan say they would take advantage of one if it were available. “Washingtonians are working as hard as ever, but many do not have a way to save for retirement out of their regular paycheck,” said Cathy MacCaul, AARP’s advocacy director in Washington, in a release. The bill was pending in the House Committee on Consumer Protection & Business. A video of an executive committee hearing is posted at tvw.org/ watch/?eventID=2020021106.

Retirement uBUSINESS BRIEF Department of Commerce launches new, improved Retirement Marketplace

The Washington State Department of Commerce announced Feb. 12 that it has launched the new Retirement Marketplace, a one-stop website that helps owners of small businesses and individuals comparison shop for retirement savings plans. All plans on the marketplace are from private financial firms that have been verified by the state Department of Financial Institutions. Plans have no administrative fees to employers. “Employers that offer a retirement savings plan benefit are more competitive in recruiting and retaining the best employees,” said commerce Director Lisa Brown in a news release. “The Retirement Marketplace removes barriers and allows easy access to retirement savings plans for business owners and workers. When people are better prepared to live comfortably in retirement, it strengthens communities and local economies.” In addition to bolstering their benefit package, businesses also can lower their tax burden by making deductible employer contributions to employee accounts. An individual’s account balance is charged no more than 1 percent in total annual fees, or $10 a year for a $1,000 balance. Go to retirementmarketplace.com for more information.

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Finance Executive seeking business to purchase. Credentials include: • 20 years experience as a CPA • Well capitalized • 10 years experience managing $100M in receivables • Excellent credit and banking relationships If interested contact Brian Fair at (509) 669-2200 or brian@fairresolutionsinc.com

Retirement

TRI-CITIES AREA JOURNAL OF BUSINESS | FEBRUARY 2020

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Be alert to significant changes in retirement plans It might not have made the headlines but a recently passed piece of legislation could affect the individual retirement accounts and 401(k)s of millions of Americans beginning in 2020. So, if you have either of these accounts or if you run a business, you’ll want to learn more. The new laws, collectively called the Setting Every Community Up for Retirement Enhancement, or SECURE Act, include these noteworthy changes: • Higher age for required minimum distributions. Under current law, you must start taking withdrawals – known as required minimum distributions, or RMDs – from your traditional IRA and 401(k) or similar employer-sponsored plan once you turn 70 ½. The new law pushes the date to start RMDs to 72, which means you can hold on to your retirement savings a bit longer. • No age limit for traditional IRA contributions. Previously, you could only contribute to your traditional IRA until you were 70 ½. Under the SECURE Act,

you can fund your traditional IRA for as long as you have taxable earned income. • Limitation of “Stretch IRA” proviShelley Kennedy sions. Under Edward Jones the old rules, beneficiaries GUEST COLUMN were able to stretch taxable RMDs from a retirement account over his or her lifetime. Under the SECURE Act while spouse beneficiaries can still take advantage of this “stretch” distribution, most non-spouse beneficiaries will have to take all the RMDs by the end of the 10th year after the account owner passes away. Consequently, non-spouse beneficiaries who inherit an IRA or other retirement plan could have tax implications due to the need to take larger distributions in a

shorter timeframe. • No early withdrawal penalty for IRAs and 401(k)s when new child arrives. Typically, you must pay a 10 percent penalty when you withdraw funds from your IRA or 401(k) before you reach 59 ½. But now, with the new rules, you can withdraw up to $5,000 from your retirement plan without paying the early withdrawal penalty, as long as you take the money within one year of a child being born or an adoption becoming final. Some provisions of the SECURE Act primarily affect business owners: • Multi-employer retirement plans. Unrelated companies can now work together to offer employees a 401(k) plan with less administrative work, lower costs and fewer fiduciary responsibilities than individual employers now encounter when offering their own retirement plans. • Tax credit for automatic enrollment. The new law provides a tax credit of $500 for some smaller employers who set up automatic enrollment in their retirement

plans. And a tax credit for establishing a retirement plan has been increased from $500 to $5,000. • Use of annuities in 401(k) plans. It will now be easier for employers to consider including annuities as an investment option within 401(k) plans. Previously, many businesses avoided offering annuities in these plans due to liability concerns related to the annuity provider, but the new rules should help reduce these concerns. The SECURE Act is the most significant change to our retirement savings system in over a decade. We encourage you to contact your financial advisor, tax professional and estate planning attorney to assess the potential impact on your investment strategies and determine any possible tax and estate planning implications of the SECURE Act. Shelley Kennedy is a certified financial planner, financial advisor and branch office administrator at Edward Jones in Richland.

FINANCIAL, From page A24

advisor to suggest increasing umbrella insurance coverage. A financial advisor would understand the source of client’s wealth (e.g. inheritance from the client’s father where father’s intent was to keep the inheritance both separate and ultimately for grandkids) and spark the attorney’s imagination to create an inter-vivos irrevocable trust for the client’s children that

is protected from creditors; and aligning beneficiary designations between the financial advisor (e.g. “to my children”) and the attorney-drafted estate plan (e.g. “to the trust for the benefit of my children.) The point is that your attorney and your financial advisor should be talking and working in concert to produce tailored plans for you.

Only by integrating the attorney side and the financial advisory side can the client have a truly holistic plan that represents their goals for their life and their goals for assets after passing. Beau Ruff, a licensed attorney, is the director of planning at Cornerstone Wealth Strategies, a full-service independent investment management and financial planning firm in Kennewick.

Other examples abound. A financial advisor may track outof-state investment property and the attorney should know about those to place in trust or limited liability corporations as warranted. An attorney may spot liability concerns that would cause a financial

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TRI-CITIES AREA JOURNAL OF BUSINESS | FEBRUARY 2020

Boeing, Space Force and the 2020 Washington Legislature By Tri-Cities Area Journal of Business

In the runup to the 2020 Legislature, Gov. Jay Inslee made headlines with a stark warning to the Boeing Co: Build your next plane in Washington or billions in tax credits could be in jeopardy. Tax breaks for the aerospace industry aren’t at the top of Olympia’s agenda — the short, 60-day session that began Jan. 13 is chiefly focused on a supplemental budget, transportation, gun rights and addressing homelessnes, among others. Still, the governor’s warning aims a light on the aerospace industry and the struggles of its chief denizen, Boeing. The company is in crisis mode follow-

ing the worldwide grounding of the 737 Max 8 fleet. It suspended production of the plane but has pledged not to lay off workers. And that has Matt Boehnke communities around the state worried about the impact on their economies. Should the Tri-Cities be worried? Yes, sort of. The industry and its 200 key players are concentrated in the Puget Sound area

with few if any direct employees here, but is very important to our state. Aerospace generated an estimated $71 billion and employed Sharon Brown 83,400 Washington workers in 2018, according to a 2019 economic impact study commissioned by Aerospace Works for Washington, a nonprofit advocacy group tied to the Greater Seattle Chamber of Commerce. Indirectly, the industry supports

223,700 jobs and $20.6 billion in wages and $94.4 billion in business revenue through multiplier effects. The effect is felt statewide. Skyler Rude The legislative session is set to wrap on March 12. To date, more than 4,000 bills have been introduced. Here’s a look at some of the businessoriented ones that attracted the attention of Tri-City lawmakers, including several hoping to capitalize on the newest branch of the armed forces, the U.S. Space Force. Feb. 19 is the last day to pass bills out of their house of origin. This online version of this story will be updated to reflect which bills passed the cutoff date.

Space economy Rep. Matt Boehnke, R-Kennewick, is backing three bills to promote a “space economy” in Washington. HJM 4015 asks Congress to site a Space Academy in Washington. HB 2665 contemplates tax breaks for the industry. And HB 2596 directs the Department of Commerce to study the matter. All were pending in the House. “Washington state is home to some of the brightest minds and most influential visionaries, and we have a tremendous opportunity to establish ourselves as a national and global leader in the future of commercial space exploration and development,” said Boehnke, a retired U.S. Army officer who teaches cybersecurity at Columbia Basin College. Responsible revenue Sen. Sharon Brown, R-Kennewick, introduced SB 5636, which would require the state to evaluate the real-world impact of bills that increase or decrease state revenue by $10 million. She first proposed the idea in 2017. It was pending in the Senate. Nuclear waste repository Brown introduced SJM 8018 calling on Congress, the U.S. Environmental Protection Agency and the U.S. Department of Energy to develop a permanent federal repository for high-level radioactive waste. Funding for a waste site at Yucca Mountain, Nevada, was terminated nearly a decade ago. It was pending in the Senate. Blockchain leader? Brown wants Washington to take the lead on blockchain technology. SB 6065 would create a work group to examine applications of technology in computing, financial services, real estate, health care and public record keeping. It was pending in the Senate. Death with Dignity Rep. Skyler Rude, R-Walla Walla, introduced HB419, which calls for the University of Washington to study the barriers rural residents face accessing the Death with Dignity Act. Voters approved the act allowing state residents with teruLEGISLATURE, Page A31

TRI-CITIES AREA JOURNAL OF BUSINESS | FEBRUARY 2020

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West Richland bonds won’t cost taxpayers as much as expected municipal bonds in late 2019 translated to net borrowing costs of 3.08 percent, Platt said.

By Wendy Culverwell editor@tcjournal.biz

The stars lined up for West Richland taxpayers in December, when the city sold nearly $12.5 million in bonds to pay for its new police station at the former Tri-City Raceway. Their 2020 property tax bills won’t go up as much as initially projected. The city is paying less to finance its debt than it expected, thanks to a better-thanexpected bond rating, lower-than-expected interest rates and growth in its property tax base. For property owners, the savings are the equivalent of a large pizza plus pop— about $24 a year on a property with a taxable value of $200,000. The city anticipated taxpayers would pony up 42 cents per $1,000 of assessed value in 2020 when it pitched the police station bond to voters in 2019. The 22,500-square-foot station will replace a cramped 3,500-square-foot facility on West Van Giesen Street. The actual rate will be 30 cents per $1,000, said Jessica Platt, West Richland’s finance manager, or $60 for a $200,000 home instead of the projected $84. The bond proceeds are in the city’s account, ready to be spent developing a new police station at the former Tri-City Raceway later this year.

Taking on debt The city’s taxpayers will repay the debt

Courtesy city of West Richland The city of West Richland sold nearly $12.5 million in bonds to pay for a new police station at the former Tri-City Raceway, which it bought in late 2019. Lower-than-expected interest rates mean property taxes won’t rise as much as originally expected.

for 29 years – the equivalent of the anticipated life of the new building. D.A. Davidson & Co., a Montanabased financial and investment services firm with an office in Kennewick, underwrote the bond offering. Foster Garvey PC, a Seattle firm, served as legal counsel. Standard & Poor’s Global Ratings issued the city’s bond rating. It raised West Richland’s rating to AA+ from the AA it received in 2014 when it issued bonds to

1304 E. Hillsboro St., Pasco, WA (509) 545-8420 • skoneirrigation.com

build the Municipal Services building on Belmont Boulevard. A rating of AA or above is considered investment grade with low risk of default. The scale tops out at AAA. S&P cited the city’s financial strength and management for the improved rating. Higher ratings translate into lower interest rates. The AA+ bond rating coupled with a generally low interest rate climate for

Low interest rates The city planned to put itself in a position to take advantage of a favorable lending climate. “One of our priorities was to take advantage of a low interest rate environment,” Platt said. “A year ago, everyone expected them to increase. They actually declined. I don’t think anybody was actually anticipating that.” Before it could sell bonds, it had to secure the site for the project. That proved more difficult than anticipated. The city was eyeing a site near Bombing Range Road owned by the Bureau of Land Management but backed off when local residents objected. Mayor Brent Gerry said there are few properties large enough and none had willing sellers. It eventually paid the Port of Kennewick nearly $1.9 million for the 92-acre former Tri-City Raceway on Highway 224 west of the intersection with Keene Road on the city’s west side. The deal was funded with West Richland’s allocation of rural capital development funds generated by a small sales tax and held by Benton County. Gerry said the city wants to see smart development at the raceway, but its first priority is to build the police station. uBONDS, Page A31

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TRI-CITIES AREA JOURNAL OF BUSINESS | FEBRUARY 2020

News anchor, retired PNNL exec win 2020 Athena awards By Tri-Cities Area Journal of Business

The Tri-City Regional Chamber of Commerce honored a prominent broadcaster and a newly retired executive from Pacific Northwest National Laboratory with its prestigious Athena awards. Tracci Dial and Peggy Vasquez were honored during the annual Athena Luncheon, the highlight of the Women in Business conference. The event was held Jan. 29 at the Three Rivers Convention Center in Kennewick. A sellout crowd of nearly 900 attended. The Athena awards honor two women, one an established leader in the community and the other a rising one. The chamber presented Tracci Dial with its emerging leader award and Peggy Vasquez with its leadership award. Both were honored for their work to encourage women in their careers. Vasquez, who was nominated by her husband, served as chief executive assistant at PNNL for more than 15 years before retiring on Jan. 20. Vasquez said Peggy Vasquez she intends to devote 2020 to pursuing her passion for writing, supporting women and public speaking. She is a motivational speaker, career coach and author of several books, including “Not Just an Admin” and “Mean Girls No More.” She is a past president and chair of several nonprofits, including Administrative Professionals of Tri-Cities and Women Helping Women. Dial, who was nominated by a colleague, began her broadcast career behind the camera and worked her way up through a series of roles beTracci Dial fore becoming an on-air reporter. The Northwest native joined KNDU in 2012, noting she was drawn to the TriCities because she had family in the area. She anchors the station’s newscast. Dial is regularly named the best news anchor in the Tri-Cities in the Tri-City Herald’s People’s Choice competition. The League of Women Voters of Benton & Franklin Counties regularly invites Dial to moderate forums where political candidates field questions in public forums.

TRI-CITIES AREA JOURNAL OF BUSINESS | FEBRUARY 2020 uBUSINESS BRIEFS Richland seeks citizens to serve on boards

The city of Richland is seeking citizen volunteers to fill openings on five boards and commissions. The Arts Commission, Board of Adjustment, Code Enforcement Board, Parks and Recreation Commission and Planning Commission have openings. The arts and parks board both have posts available for adults and youth. The groups typically meet monthly or as needed. Go to ci.richland.wa.us/government for details. BONDS, From page A29 Future development will be guided by the port-master plan for the property, tempered by the city’s interest in adding more sports facilities and encouraging commercial development take hold. Project status The city intends to hire a project team of architects, engineers and contractors under a design-build contract. That requires a waiver from the state’s “lowest bidder” rules. City staff presented the project to the state in January, Gerry said. It will seek a design-build team once the project is approved. The city doesn’t expect to break ground until late 2020. In the interim, it is working to extend infrastructure to the site and has negotiated an easement that will give it entrances on Keene Road. It is also working with raceway users to clean up the landscape that died after the raceway closed and the water was shut off. LEGISLATURE, From page A28 minal illnesses to request medication to end their life 10 years ago. It was pending in the House.

Death penalty SB 5339, which passed in the Senate on Jan. 31, would abolish the death penalty as a sentencing option. The bill has bipartisan support. The state Supreme Court ruled the death penalty unconstitutional in 2018, and Inslee put a moratorium on it four years prior to that. It passed out of the Senate and was pending in the House. Degrees behind bars Rep. Brad Klippert, R-Kennewick, is a sponsor of HB 2299, which allows the Department of Corrections to implement post-secondary certificate and degree programs in state prisons. It was pending in the House. King County ‘big business’ tax HB 2907 authorizes counties with a population of at least 2 million to impose payroll taxes of 0.1 percent to 0.2 percent on businesses at a graduated rate based on employee compensation. Small businesses, government and certain industries are exempted from the tax, which would raise money to support affordable housing and development. The bill essentially targets large businesses such as Amazon in King County. It was pending in the House.

Retired general to speak at Boy Scout Breakfast

Richland’s famous son is supporting the Boy Scouts. Former Secretary of Defense and Marine Gen. Jim Mattis will give the keynote address at the Boy Scout Leadership Breakfast honoring community leaders George Garlick and Ed Ray at 7 a.m. March 19 at the Pasco Red Lion. The Blue Mountain Council will present Garlick and Ray with its North Star Award, given for their support of youth and families. Mattis is a former Boy Scout and retired Marine Corps general who served as President Donald Trump’s first Secre-

tary of Defense. Tickets are available at blumountainscouts.org/2020breakfast. Tickets are $50, with sponsorships available from $100 to $10,000. Call 509-735-7306 for information.

Residents reported $29M in scams, fraud in 2019

The Federal Trade Commission reports Washington residents filed nearly 57,000 claims representing losses of more than $29 million to scams and fraud in 2019. The federal agency refunded about $2.7 million to consumers, less than 10 percent of the reported losses. The most common complaints included

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imposter scams. That was followed by complaints concerning identity theft, telephone and mobile services, online shopping and negative reviews and banks and lenders. Nationally, consumers reported losing more than $1.9 billion to fraud in 2016. Of that, nearly $667 million in losses resulted from imposter scams. The Better Business Bureau Northwest reported that Tri-Citians claimed to lose $138,000 in scams in 2019. The FTC works to recover money from organizations that engage in illegal activity. File complaints and learn more about protecting yourself and loved ones from scams at ftccomplaintassistant.gov.

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TRI-CITIES AREA JOURNAL OF BUSINESS | FEBRUARY 2020

BUSINESS PROFILE

Richland hemp bar company humming along By Robin Wojtanik

for Tri-Cities Area Journal of Business

A Richland company continues to grow in local investments less than a year after churning out its first nutrition bars made from hemp. Humming Hemp’s Hilary Kelsay, chief executive officer, called it a “snowball effect” since inking a national distribution deal within weeks of launching Hummingbars at an industry expo in California last year. “The bars are plant-based, high in protein and low in sugar because it’s only sweetened by the honey,” Kelsay said. She refers to the honey as “our secret sauce” for the success of the bars, which are also gluten-free. Kelsay’s husband is a beekeeper and together they also run Humble Honey Co., though their honey is not used in the bars. The nutrition bars are found locally at Fred Meyer, Albertsons and Safeway stores. National distribution of the five flavors of bars began in November. Humming Hemp also sells hemp hearts, hemp oil and hemp protein powder. Kelsay said it’s an uphill battle to inform consumers about the health benefits of hemp products. “If you’re not already familiar with them, you might be hesitant to pick up

a bag of hemp hearts and start eating them. So we said, ‘We need to innovate. We need to tell the world about this American super food and Hilary Kelsay how they should be eating it,’ ” she said. Kelsay points to the naturally-high protein content in hemp, as well as its richness in healthy omega fatty acids, vitamin E, calcium and iron. Misconceptions arise from its status as a cannabis plant. It’s not the same plant that produces marijuana. “Hemp is for everyone. I’m the perfect example of that: a young mom, three kids. I eat it, my kids eat it,” Kelsay said. “Whether you’re conservative or liberal, a professional athlete or a couch potato, hemp is for you. We’re just trying to accelerate that messaging. You don’t have to be a millennial male who’s into CBD (cannabidiol). We try to break down those false anecdotes about what hemp is.” Kelsay first got into hemp at a trade show representing her family’s honey company in 2017. She recognized a similar chutzpah in the hemp growers that she shared with her husband, Brett. She said hemp growers had “gone out on a limb to start cul-

tivating hemp with no federal crop insurance.” Brett had previously worked in the financial industry underwriting agriculture loans. This experience, combined with childhood years on a farm, inspired Brett to begin beekeeping as a hobby, and eventually turn it into a fulltime profession with the launch of Humble Honey Co. The couple were already finding success with their business when Kelsay decided she wanted to do more. “(Hemp farmers) just embodied this real entrepreneurial spirit. They believed in hemp as a textile, as a food source, medicinal and CBD. They believed it could be the next American cash crop,” she said. Kelsay quickly began to believe it, too, building on a preexisting passion that food is medicine. “We believe that everything we put in our bodies has an impact, so why wouldn’t we take this to market?” She felt there was great historical timing for hemp products due to the 2018 Farm Bill legalizing the cultivation of hemp, combined with the recent hype around the legalization of recreational

Courtesy Humming Hemp

marijuana and CBD. “Hemp is named the No. 1 food trend for 2020,” Kelsay said. She was also a regular consumer of food bars, something she describes as a “common, trustworthy and convenient product” embraced by American consumers. Through the Fuse coworking space in Richland’s Parkway, Kelsay formed a local team to build the Hummingbar product while she designed the flavor profile in her own kitchen. “We have a great ecosystem of entrepreneurs who were able to come alongside me to get started,” she said. The effort took most of 2018 while she uHUMMINGBAR, Page A35

TRI-CITIES AREA JOURNAL OF BUSINESS | FEBRUARY 2020

, Kennewick s Ideal Option tackles the opioid crisis BUSINESS PROFILE

By Robin Wojtanik

for Tri-Cities Area Journal of Business

A nondescript and unassuming collection of buildings along Kennewick’s busy West Gage Boulevard provides a lifeline to patients saddled with opioid addiction, including the rising use of fentanyl pills. What started as a small clinic grew into a veritable campus and epicenter for a national chain of treatment clinics that currently serve 11,000 patients. Two emergency room doctors opened the first Ideal Option at 8508 W. Gage Blvd., Suite A-101, in Kennewick in 2012 after recognizing the overwhelming need for long-term treatment options for patients with substance addictions. “As soon we started this, we had waiting lists through the roof,” said Dr. Jeffrey Allgaier, Ideal Option cofounder and chief medical officer. Jeff Allgaier “It was hundreds and hundreds of patients. So we knew we had to grow because there wasn’t anybody else. We had people coming from all over the state to here.” Together with Dr. Brian Dawson, Ideal Option’s senior medical director, the two were rushing to meet the demand for their method of treatment. “We treat opioid use disorder, but also other addictions like alcohol and benzodiazepine (commonly known as Valium). We just have the really good tools for opioid use disorder,” Allgaier said. The single Tri-City location grew to an eight-state operation with more than 65 clinics in the Northwest, Maryland, Minnesota and North Dakota. In their second year of operation, the doctors sold a ma-

Courtesy Ideal Option

Ideal Option’s Benjamin Rae, center, an advanced registered nurse practitioner, talks with patients. The Kennewick-based clinic employs about 300 people across five buildings in Kennewick, plus locations in Pasco dedicated to administrative support. It operates 65 clinics throughout the Northwest, Maryland, Minnesota and North Dakota. jority stake in the company to private equity firm Varsity Healthcare Partners. Blue Cross Blue Shield also owns a stake in Ideal Option, while the original founders retained a small portion of ownership. “It’s nice now. We get to be doctors,” said Allgaier. Most patients are self-referred and can be treated for not just substance addiction, but for Hepatitis C, sexually transmitted diseases and screened for HIV. The Kennewick clinic, across from Costco, also offers on-site counseling for chemical dependency and mental health. “We see about 70 percent of people face-to-face and 30 percent through telemedicine,” Allgaier said. “We’d like to flip that because it gives us the ability to see more people.” The Tri-City headquarters includes laboratory facilities that process medical samples from Ideal Option clinics nationwide. “We have it all in one shop. It’s all

here,” Allgaier said. Locally, Ideal Option employs about 300 people across five buildings in Kennewick, plus locations in Pasco dedicated to administrative support. Allgaier was key in relocating Blue Mountain Heart to Heart to its current spot near Ideal Option when the needle exchange program became a source of concern to when it moved to Kennewick’s Vista Way from downtown Pasco. Allgaier said it hasn’t fielded any complaints about the exchange since it opened on the site not far from Columbia Center mall. “The cool thing was, here, we’ve been doctors in the Tri-Cities in all the hospitals. We’ve known most of these folks, so it’s surprising with even with this being a conservative area, not a lot of resistance. This was the ideal location because there’s nobody around us. This has been a wonderful location,” he said.

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Ideal Option runs like a typical medical practice, accepting all private insurance, Medicaid and Medicare, with only a small percentage of patients who self-pay. Dawson said this is uncommon for most practices doing this kind of work. “Most addiction clinics around the nation are cash-based. ‘Show up, give us $500, we’ll give you treatment.’ You can help so many more people when you take Medicaid,” he said. “The reality is, most doctors don’t really want to take care of folks with addiction and folks with Medicaid, so that’s what we do. We do both,” Allgaier said. It helps that Washington is a “good state,” for Medicaid coverage. “They don’t cover everything, but that’s OK. There’s still a lot of educating we need to do with our payers to help them understand what we do as well,” he said. The demand for help continues to grow as Ideal Option operates 28 clinics in Washington alone. It treats about 1,500 patients in the Tri-Cities and 7,500 across the state. More than 30,000 patients have received treatment since Ideal Option opened. The number might be higher if it weren’t for federal limits on a provider’s total number of patients. “What we’ve learned over the years is that this is a medical disease treated by medical providers,” Allgaier said. The doctors agree that, in most cases, patients need to be treated medically for the remainder of their lives to have the best possible outcome. “The evidence tells us that if somebody’s been dependent or addicted to opioids for many years, you have to keep them on medication indefinitely, which is not perfect, but that’s what the evidence tells us. Or 91 percent go back out. So you do the best you can,” Allgaier said. Allgaier and Dawson are board certified uIDEAL OPTION, Page A35

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TRI-CITIES AREA JOURNAL OF BUSINESS | FEBRUARY 2020

TRI-CITIES AREA JOURNAL OF BUSINESS | FEBRUARY 2020 HUMMINGBAR, From page A32

worked toward a goal of creating the most powerful food bar on the market, using high quality ingredients. “We don’t want to just package up any hemp and take it to market. We are an American hemp food company. We partner with small- and medium-sized American hemp farmers,” she said. The farms are mostly found in states along the northern border of Canada, including Montana, North Dakota and Minnesota. Crop rotation allows hemp to be grown without herbicides or pesticides, yet there is still an effort to make it organic. The process takes at least three years for the soil to rest. IDEAL OPTION, From page A33 in both addiction and emergency medicine, having cut their teeth as emergency room doctors together 15 years ago. “It was frustrating to take care of these people in the emergency room, bring them back from overdoses, discharge them and then see them two weeks later for the same thing,” Dawson said. “It’s nice to be in a situation, like this, where you see them on a weekly or monthly basis, and you can see that they’re doing well, and you’re actually doing something for their long-term health, as opposed to just patching them up like you do in the ER.” The doctors have great concern for the increasing number of Tri-City patients they see using fentanyl, a concentrated

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As the Hummingbar line grew, Kelsay’s husband bowed out of the effort since the couple are also raising three small children. “We decided to stay married and not run another business together,” said Kelsay. Efforts to launch the brand have resulted in $1.3 million in investments, mostly from local sources and all from within Washington. The team has recently transitioned to bringing on those experienced in operating a product and a brand, now that Hummingbar has moved out of the launch stage. Fewer than 10 employees are part of that team. Kelsay said the food bar industry is a $7 billion market and projected to climb to $9 billion. “If you do the math, and we

had just 1 percent of that market share,” Kelsay suggested, seeing a future for hemp as a “pantry staple.” Current Hummingbar flavors include honey and cinnamon; almond and chocolate; and lavender, pistachio and blueberry, among others. Five more flavors are planned. Kelsay describes the bars as “soft, chewy and delicious.” They sell for about $2.29 to $2.69 apiece, depending on location. The name for the bars comes from the idea that the nutrients inside will keep you humming throughout the day. “It’s really what hemp can do for you, it’s that powerful nutrition,” she said. “We believe in delicious nutrition that doesn’t have to be bland.” Extensive promotional activity is

planned for the remainder of the year to make more consumers aware of the product and its health benefits. It’s a challenge Kelsay embraces. “How do you take this Americangrown super food that’s superior to all others and put it in different forms that Americans will love and want to consume on a daily basis? It’s the super food greater than all others and nobody knows about it, or if they do, it’s likely a misconception,” she said. Hummingbars can be food in the nutrition bar aisle of grocery stores, alongside other national brands such as Larabar, Clif and Luna. Humming Hemp: thehumminggroup. com; Facebook; Instagram.

opioid in pill form known as “mexi.” “We have some of the highest rates of fentanyl here in the Tri-Cities than all over the United States. It’s the most lethal. It kills more people than other drugs by far,” Allgaier said. Allgaier said people often accidentally overdose on fentanyl when they think they’re taking hydrocodone, but have taken the inexpensive, but deadly, fentanyl instead. Ideal Option frequently treats patients with opioid addiction using medication like Suboxone or Vivitrol. The doctors do not prescribe methadone. Ideal Option is a teaching facility for addiction medicine for local medical schools and residents at Kadlec Regional Medical Center. The hospital’s former chief executive officer, Lane Savitch, be-

lieves in the clinic’s mission and came out of retirement to serve as vice president of community development for a year at Ideal Option. He retired from the clinic at the end of 2019. The clinic co-founders say they haven’t had to do any advertising for their services, as the demand far outpaces the providers. “About 90 percent of the clinics we open do well and are self-sustaining,” Dawson said. Those that have closed have usually been in states with Medicaid changes, rather than a lack of demand for treatment. “It’s neat that the Tri-Cities gets to be the hub for this national operation,” Dawson said. The doctors say they hover in the top three largest companies for the services

they provide. “As doctors you want to really be needed, and in this population, you are really needed. There’s not enough people that do this, so when you do it, you’re doing something that really helps folks.” Allgaier calls Ideal Option’s patients the most rewarding: “It’s a hard population, but they’re some of the most rewarding patients because you can take them and their families. They’re in jail, or they lost everything, but you see that all change. You help flip it back. They get their family back, they get their kids back, and it’s pretty cool to see.” Ideal Option: 1-877-522-1275; 8508 W. Gage Blvd., Suite A-101, in Kennewick; idealoption.com; Facebook, Twitter, Linkedin.

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TRI-CITIES AREA JOURNAL OF BUSINESS | FEBRUARY 2020 uBUSINESS BRIEF Department of Labor updates joint employer rules The U.S. Department of Labor has updated the Fair Labor Standards Act to clarify regulation governing when workers are covered by “joint employer status” for wage purposes. Under the Fair Labor Act, an employee may have an employer and one or more joint employers that are jointly liable for the employee’s wages in certain situations. The updated rules provide a balancing

uGRANTS • Water from Wine of Paterson, a 501(c)(3) nonprofit winery in the Horse Heaven Hills, has announced the distribution of $10,000 grants to each of the following eight water-related nonprofits: Etta Projects of Tacoma; Clean Water for Haiti of Vancouver, Washington; Gravity Water of Santa Cruz, California; Thirst Project of Los Angeles; Samburu Project of Los Angeles; Pure Water for the World of Rutland, Vermont; Choose Water of Montgomery, Alabama; and Ugandan Water Project of Bloomfield, New York. As a nonprofit vineyard and winery, Water from Wine’s mission is to generate revenue to fund clean water and sanitation projects. The World Health Organization reports that nearly one in three people globally do not have access

test to determine joint employer status in situations where an employee works for one employer while providing benefits to another entity or individual. The test examines if the potential joint employer: • Hires or fires the employee. • Supervises and controls the employee’s work schedule or condition of employment to a substantial degree. • Determines the employee’s rate and method of payment. • Maintains the employee’s employment records. Go to dol.gov for more information.

to safe drinking water. In the U.S., more than 100 organizations focusing on the global need for clean water. With proceeds from wine sales, Water from Wine provides grants to established nonprofit organizations working to solve that need. Sales are made through the tasting room in Leavenworth and online at waterfromwine.org. To date, Water from Wine has donated more than $500,000.

uFUNDRAISERS • Columbia Center Rotary reports its campout fundraiser to combat human sex trafficking and support victims raised more than $44,000. More than 200 people participated in the January event, which included a walk, campfires, hot chocolate and s’mores.

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Idaho economic development leader is TRIDEC’s new president, CEO By Wendy Culverwell editor@tcjournal.biz

The Tri-City Development Council has named a chief executive officer to succeed its longtime leader Carl Adrian. Karl Dye, president and CEO of Valley Vision Economic Development Association in Lewiston, Idaho, began his new job Feb. 5. TRIDEC announced its new director Jan. 24, two days after it feted Adrian for his 16 years of leadership at its annual meeting at the Pasco Red Lion. TRIDEC officials said Dye’s economic development background coupled with his familiarity with the issues and organizations that shape the Tri-City economy make him a good fit for the Mid-Columbia. “Karl’s experience in bringing cities, counties and ports together will be invaluable to TRIDEC,” said Eric Pearson, chairman of the TRIDEC board of directors. Dye, 52, said he was drawn to the dynamic nature of the Tri-Cities and to TRIDEC’s mission to promote economic diversification to reduce the region’s reliance on federal spending at Hanford. He brings an understanding of the issues surrounding the Snake River dams and U.S. Department of Energy communities, having worked with the Idaho National Laboratory, DOE, Battelle and other energy-related organizations. He’s also well-versed in working in a community that straddles a political

boundary. In the Tri-Cities, he’ll work with cities, counties and ports strung along the Columbia River. In his current job, he works with multiple local jurisdictions split between two states. He said he admires TRIDEC’s role as a bridge between jurisdictions. “I really appreciate TRIDEC’s history of providing that central connector for economic development for the whole region,” he said. Like TRIDEC, Valley Vision is a public-private economic development partnership that carries out the goals of cities, counties and other organizations in the Lewis-Clark Valley on the WashingtonIdaho border. As with TRIDEC, Valley Vision carries out the economic development goals of a variety of cities, counties, public agencies and private organizations. Dye was born in Lewiston and graduated from the University of Idaho in 1990. After college, he worked in marketing for Caterpillar Inc. and Litehouse Inc., a salad dressing maker based in Sandpoint. In 2004, he was elected to a two-year term on the Bonner County Commission in Idaho, serving from 2005-07. He said he ran for the post out of a desire to spend less time traveling for work. The job inspired his interest in economic development. After his term ended, he joined the Bonner County Economic Development Corporation as executive director, a post he held for more than seven years.

He has been in his current job at Valley Vision since June 2018. Prior to that, he was director of corporate and community relations for Idaho Karl Dye PTECH Network. Dye and his wife Tiffany have two children, Hattie and Henry. The TRIDEC search committee interviewed five candidates and narrowed the field to two finalists by early January. Adrian, chair and CEO of the regional economic development agency, informed the TRIDEC Executive Committee last August that he would retire at the end of January as TRIDEC’s longest-serving president. TRIDEC promotes growth in economic development in the region. TRIDEC’s mission is to promote a diverse economy in Benton and Franklin counties. The TRIDEC team supports business retention and expansion, industrial development and new business development. It frequently partners with local government on business initiatives and hosts visitors interested in siting business operations in the region. It has more than 300 public private members, employs nine and had a budget of about $2 million chiefly funded by membership dues and event fees., according to its most recent filing with the Inter-

nal Revenue Service. TRIDEC holds its annual economic outlook from 7 a.m. to 1:30 p.m. Feb. 20 at the Three Rivers Convention Center in Kennewick.

Meet the new Karl at TRIDEC Economic Outlook on Feb. 20

The Tri-City Development Council will introduce its new president and CEO at its 21st annual Economic Outlook on Feb. 20. The event runs from 7 a.m. to 1:30 p.m. at the Three Rivers Convention Center in Kennewick. The program includes sessions focused on the local economy and Hanford, an overview of community development projects, education, opportunities to develop an energy economy and promoting the agriculture industry, among others. The luncheon speaker is Scott O’Brien, chief operating officer for Providence St. Joseph Health’s Washington and Montana region. Tickets are $75 for members and $85 for members for all-day attendees. For lunch only, the cost is $25 for members and $35 for nonmembers. Register online at tridec.org/ shop/21st-annual-economic-outlook-2/

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TRI-CITIES AREA JOURNAL OF BUSINESS | FEBRUARY 2020

uNEW HIRES • Christy Watts has been hired as the new administrator of the East Benton County History Museum. She previously worked as the Christy Watts development director for TriCities Prep where she was responsible for the annual campaign, soliciting funds for school construction and scholarships for deserving students. She is an experienced event coordinator, a past president of Columbia Center Rotary,

and has served on and chaired numerous nonprofit boards, and currently serves on Kennewick’s Block Grant Advisory Committee. Watts’ goal is to work with the museum to grow from its strengths and build stronger community support. • Chad Michael has been named Kennewick’s new fire chief, effective March 16. A swearing-in ceremony is March 17 during the Chad Michael Kennewick City Council meeting at 6:30 p.m. at 210 W. Sixth Ave. A community reception also will be scheduled

in March, date and time to be announced, for the public to meet him. Michael began his firefighting career in 1992 as a resident firefighter with Spokane County Fire District 8 and was hired by the same department in 1996 as a career firefighter. Over the past 23 years, he enjoyed a diverse career with a few different fire departments in various roles. For the past 11 years, Michael served at the executive level as the deputy chief of training and operations, acting fire chief, deputy chief of support services, and deputy chief of operations. Most recently he served as the deputy chief of operations with the Vancouver Fire Department. He earned an associate degree in fire science and fire command from Spokane Community College. He graduated from Whitworth

College with a bachelor’s degree in organizational management and earned a master’s degree in public administration from the University of Washington. • Todd Busch is Tidewater’s new president and chief executive officer and member of the board of directors effective Jan. 16. Busch succeeds Bob Curcio who retired and had served as president and CEO since 2013. Busch has more than three decades of senior and executive leadership experience with Crowley Marine Corp., last serving as senior vice president and general manager in Jacksonville, Florida. Busch’s background includes maritime operations, naval architecture, logistics and strategic planning. Headquartered in Vancouver, Washington, Tidewater was founded in 1932 and has evolved from a barge line, primarily handling wheat, into Tidewater Holdings Inc., a multi-commodity transportation, terminal, and marine construction and repair company serving the diverse and evolving transportation needs of the Pacific Northwest. • The National Park Service has selected Laura Law as the new chief of interpretation and education for Nez Perce National Historical Park, Laura Law Whitman Mission National Historic Site and Big Hole National Battlefield. Law has been the education specialist at Glacier National Park since 2005. She has a master’s degree in science education and an undergraduate degree in natural resources with a focus on urban geography and native plant restoration. Before working at Glacier, Law taught middle school science in south Florida. She has worked for the NPS for more than 28 years. Laura starts her new job in February.

uMILITARY • U.S. Rep. Dan Newhouse, R-Sunnyside, nominated 17 Central Washington high school students, including nine from the Tri-Cities, to U.S. military academies. The nominees were vetted by a military service advisory board. The academies make the final determination. Three local students were nominated to more than one academy and Nicole Porcaro of Hanford High School was nominated to all three. The Tri-City nominees are: • U.S. Air Force Academy – Ryan Child (Kamiakin High School), Brooklyn Ford (Kennewick High School), Amanda Fraga (Hanford High School), Brendan Harkin (Kennewick High School), Sydney Kison (Hanford High School), Ashley Nies (Tri-Cities Prep School), Nicole Porcaro (Hanford High School) and Paige Raebel (Kennewick High School). • U.S. Naval Academy – Nicole Porcaro (Hanford High School) and Nicolas Zito (Hanford High School). • U.S. Military Academy – Amanda Fraga (Hanford High School), Nicole Porcaro (Hanford High School) and Nicholas Zito (Hanford High School).

TRI-CITIES AREA JOURNAL OF BUSINESS | FEBRUARY 2020 uPROMOTIONS • Yakima Federal Savings and Loan Association has announced the promotion of five employees who have demonstrated outstanding performance. They are: Johnny Prado has been promoted to assistant vice president. Prado has 11 years of service and is manager of the Johnny Prado Prosser branch office. Keegan Harris has been promoted to assistant vice president. Harris has five years of service and is the manager of the Yakima stadium Keegan Harris branch. Erianna Minter has been promoted to assistant vice president. Minter has 14 years of service and is manager of the mortgage loan operations Erianna Minter department.

Kyle Harrington has been promoted to assistant vice president. Harrington has two years of service and is manager of the accounting Kyle Harrington department. Kristen Mesner has been promoted to assistant secretary. Mesner has two years of service and will become manager of the Kennewick branch office Kristen Mesner in the coming months. Yakima Federal Savings and Loan has been serving Central Washington since 1905 and has 10 branches throughout the region.

uBOARDS • Shelley Kennedy, a certified financial planner, was elected to the board of directors of Fields of Grace. She is a financial advisor with Edward

Shelley Kennedy

Jones in Richland. Fields of Grace is a local nonprofit that identifies and gathers fresh produce for area food banks and other food distribution points. • The 2020 Home Builders Association of Tri-Cities board members were sworn in at its January meeting. They are Gary Questad (New Tradition Homes), president; Bryan Knapik (Ray Poland & Sons), vice president; Joel Tanasse (Fred’s Appliance), secretary/treasurer; Kyle LaPierre (LaPierre Enterprises Inc.), past president; directors Tristan Crandlemire (Sherwin Williams), Matt Mahany (Soft Water Specialists LLC), John Mattson (American Rock Products Inc.), Gene Rabung (Builders FirstSource), Rees Wasney, (Hayden Homes LLC); state directors Jennifer Kelly (J & J Kelly Construction Inc.), Knapik, Duane LaPierre (LaPierre Enterprises Inc.), Kyle LaPierre, LouAnne Neill (Neill Construction Services), Damian Padilla (Padilla Masonry Inc.), Don Pratt (Don Pratt Construction Inc.), Questad, Gene Rabung (Builders FirstSource) and Tanasse; and national directors are Duane and Kyle LaPierre. • Lori Davis, a Hermiston city councilwoman since 2009, has been selected to serve on the National League of Cities Small Cities Council, which represents Lori Davis cities with a

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population under 50,000. Davis grew up in Hermiston, graduated from Hermiston High School and works at Two Rivers Correctional Institution. She was elected to the council for a third term in 2018. As a member of the Small Cities Council, Davis will help identify common trends across municipalities and develop policy options and responses for cities, towns and villages. • Gov. Jay Inslee announced the appointments of 15 people to serve on Washington’s new LGBTQ Commission, including Jeffrey Robinson, Franklin County Democratic Committee; and Everett Maroon, Blue Mountain Heart to Heart in Walla Walla County. The commission, established by the state Legislature, was signed into law by Inslee in April 2019. The commission will identify the needs of the LGBTQ community and advocate for LGBTQ equity and inclusion in all aspects of state government. J. Manny Santiago, executive director of Rainbow Center in Tacoma, was named commission director in August.

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TRI-CITIES AREA JOURNAL OF BUSINESS | FEBRUARY 2020