Mortgage rates fall to record low for third straight week

Marcy Gordon — Mon, 21 May 2012 07:05:00 +0000

WASHINGTON — Average U.S. rates for 30-year and 15-year fixed mortgages fell to record lows for the third straight week. The steady decline has made homebuying and refinancing more affordable than ever for those who can qualify.

Mortgage buyer Freddie Mac says the rate on the 30-year loan dipped to 3.79 percent. That’s down from 3.83 percent last week and the lowest since long-term mortgages began in the 1950s.

The 15-year mortgage, a popular option for refinancing, declined to 3.04 percent. That’s down from last week’s previous record of 3.05 percent.

Rates on the 30-year loan have been below 4 percent since early December. But so far, those cheap rates haven’t been enough to ignite home sales.

While sales of previously occupied homes picked up in January and February, they fell again in March and remain well below healthy levels.

Low mortgage rates have helped boost builder confidence, which rose in May to a five-year high. And home construction has improved in the past six months, a reflection of that increase in confidence.

Builders broke ground in April at a seasonally adjusted annual pace of 717,000 homes, the government reported Wednesday. That nearly matches January’s pace, the best since October 2008.

Construction rose for both single-family homes and apartments. And builders requested more permits to build single-family homes, a sign they expect more demand in the coming months.

Still, many would-be buyers can’t qualify for loans or afford higher down payments required by banks. Home prices in many cities continue to fall. That has made those who can afford to buy uneasy about entering the market. And for those who are willing to brave the troubled market, many have already taken advantage of lower rates — mortgage rates have been below 5 percent for more than a year now.

Mortgage rates are lower because they tend to track the yield on the 10-year Treasury note. Slower U.S. job growth and uncertainty about how Europe will resolve its debt crisis have led investors to buy more Treasurys, which are considered safe investments. As demand for Treasurys increases, the yield falls.

To calculate the average rates, Freddie Mac surveys lenders across the country on Monday through Wednesday of each week.

The average rage does not include extra fees, known as points, which most borrowers must pay to get the lowest rates. One point equals 1 percent of the loan amount.

The average fee for 30-year loans was 0.7 last week, unchanged from the previous week. The fee on 15-year loans also was 0.7, the same as the previous week.

The average one-year adjustable rate was 2.78 percent last week, up from 2.73 percent the previous week. The fee on one-year adjustable rate mortgages was unchanged at 0.5.

Majority of employees surveyed don't find job satisfying

The KPBJ — Mon, 21 May 2012 07:05:00 +0000

An article from the Business Examiner:

Job satisfaction is low among employed North Americans, according to a survey by Right Management.

“Job satisfaction is an easily understood workplace indicator,” said Jeff Gerkin, general manager for Right Management in the Western region. “We’re not asking about fulfillment or enthusiasm, but just job satisfaction. Nevertheless data unmistakably tilt in the wrong direction. Half as many respondents say they’re satisfied with their job compare to those that are unsatisfied. Sorry to say, this comes as no surprise when it comes from workers in the U.S. and Canada, who’ve been giving their grumpy and frank feedback for the past two difficult years.”

Low job satisfaction is not conducive to strong work performance, Gerkin said.

“Like workplace stress, it may affect everything in the workplace, including engagement, productivity and even recruitment and retention,” he said. “While employers to some extent are dependent on macro-economic trends, there are steps that may be taken to boost job satisfaction.”

Based on prior research, according to Gerkin, the most effective tool available to management is to encourage employees to take ownership of their own development.

“Employees may feel stuck, but this shouldn’t mean they can’t grow,” he said. “Workers need continuing development opportunities to do their job well and to broaden their own capabilities. They should see that their employer is willing to invest in learning and training. In that way, they may progress in their present company and ultimately move into a new job when positions become available. Step one is for the immediate supervisor to initiate a discussion about career development.”

The survey of 411 employees from the United States and Canada was conducted between April 16 and May 15.

Critical information lacking for new Ecology regulations

Don Brunell — Mon, 21 May 2012 07:05:00 +0000

When the Environmental Protection Agency was formed in 1970, our environmental problems were easy to see: factories belched black smoke, leaded gasoline fouled our air and water, and rivers were so polluted they actually caught fire.

Today, 42 years later, much has been accomplished. Our air is clearer, our rivers are cleaner and aquatic life is thriving in our streams and estuaries.

We have made so much progress that the remaining issues are literally microscopic, measured in parts per trillion. Today, science is the key to establishing if a problem exists and how to respond.

However, the Washington Department of Ecology (DOE) seems to want to move forward without it.

Recently, the DOE announced it wants to raise water quality standards in order to protect people who eat a lot of fish. Their thinking is that water-borne contaminants accumulate in fish, so the agency should set standards that protect those who eat the most fish.

DOE says it has survey summaries that justify its proposed standard, but the agency does not have the actual data. Dr. Lawrence McCrone, one of the state’s leading toxicologists, told DOE that’s not good enough.

“For data that are to have such far-reaching and costly ramifications, I believe that a true assessment of the scientific defensibility of the surveys can only be concluded if the raw survey data are available for a complete and independent assessment of their conclusions.”

CB's Nuts partners with Friehe Farms to plant state's first Valencia peanut crop

The KPBJ — Mon, 21 May 2012 07:05:00 +0000

Partnership designed to provide an alternative to diminishing Southwest crop yields and meet growing consumer demand for Valencia peanut-based peanut butter

Kingston — Craft roaster CB’s Nuts has partnered with Friehe Farms to plant Washington’s first commercial Valencia peanut crop. The yield from the planting at Friehe Farms in Moses Lake, Wash., will be processed into CB’s PB natural peanut butter and sold at Whole Foods, PCC and other stores throughout the Pacific Northwest this winter.

“Drought conditions in the Southwest, the traditional growing region for the Valencia peanut, have had a significant impact on availability of this crop for commercial food producers like us,” said Clark Bowen, CB’s Nuts founder and chief roaster. “We have been working on peanut crop trials with WSU Extension Franklin County for the last seven years and are thrilled to finally put the first seeds of a commercial Valencia peanut crop into Washington State soil.”

Ten acres of Valencia peanut crop were planted at Friehe Farms on May 8, using seeds purchased from Southwest producers who have agreed to process a portion of the crop yield into a shelled and graded product for consumer consumption. An additional 2 acres were planted on land in Pasco, Wash., owned by WSU Extension Franklin County.

“This initiative firmly aligns with our mission as we are committed to diversifying into a legume that works in balance with other crops in our rotation,” said Travis Meacham, production manager for Friehe Farms. “We are excited about the possibility of producing Valencia peanuts at a yield that will meet our standards for crop sustainability.”

The decision to move forward with the commercial planting this year was based on crop yield data from previous trials. With appropriate capital investment, the project partners believe that a permanent Valencia peanut crop can be realized in Washington as an alternative to traditional Southwest producers. In the future this may include an organic Valencia peanut crop.

“The market for pure, natural peanut butter is strong in the Pacific Northwest with sales potential reaching into the tens of millions,” said Tami Bowen, president of CB’s Nuts. “The partnership with Friehe Farms provides us with the perfect platform for meeting this demand while building on our roots as a leading producer of Pacific Northwest peanut products.”

About CB’s Nuts

CB’s Nuts is a craft producer of CB’s PB all-natural peanut butter and roaster of USA-grown peanuts, pistachios, almonds, cashews, hazelnuts and pumpkin seeds. CB’s Nuts are available at over 450 retail outlets across Washington, Oregon and California, online at http://cbsnuts.com, or at the company’s retail store and roasting facility in Kingston. Connect with CB’s Nuts at http://twitter.com/CBsNuts and http://www.facebook.com/CBsNuts.

About Friehe Farms

Friehe Farms is a large family-owned farm located on the eastern side of the Columbia Basin Irrigation project about 9 miles east of Moses Lake. Irrigated by waters from the Columbia River and the Odessa Aquifer, Friehe Farms currently produces potatoes and sweet corn for the processing industry as well as bluegrass and dark northern spring wheat.

At-home bakers welcome state's new Cottage Food Act

Melissa Allison — Mon, 21 May 2012 07:05:00 +0000

Small, home-based entrepreneurs can sell cakes, cookies, jams, jellies and other so-called "low-risk" foods without having to rent commercial kitchen space

For more than a year, Jennifer Greiner Clark sold cakes under the table.

Specifically, she baked them in her Ballard kitchen and not in a commercial kitchen, as the law required.

When it looked like her sales would expand beyond friends (who reimbursed her for ingredients rather than paying $150 for fancy 8-inch layer cakes), Clark looked into renting commercial kitchen space.

She found it prohibitively expensive, particularly because she also would need to pay for child care. At home, she bakes and decorates after her children are in bed.

Then came the Cottage Food Act of Washington, an economic blessing from the Legislature on small, home-based entrepreneurs looking to sell cakes, cookies, jams, jellies and other so-called “low-risk” foods.

“I was kind of feeling hopeless about it, and now I’m very excited,” said Clark, who hopes to launch an aboveboard decorated-cake business when her 2-month-old daughter is a little older.

The Legislature passed the act last year, and it could go into effect as early as this summer.

More than 250 home-based businesses have shown interest in applying for a cottage-foods license, according to the Washington state Department of Agriculture, which administers the new law. It estimates 1,000 people eventually will apply.

The department is accepting public comments on a draft rule related to the cottage-foods law until Tuesday.

“When we first started working on it, there were 16 states with similar proposals adopted or in the works,” said Kirk Robinson, assistant director of the food-safety and consumer-services division of the Department of Agriculture. “It seems to be a growing movement the last few years. Maybe the down economy has something to do with it, people looking for additional sources of income.”

The draft rule stipulates which foods may be produced — among them breads, cakes, cookies, granola, nuts, jams and jellies.

It also requires annual inspections by the Department of Agriculture, which will ensure that surfaces and floors be smooth and easy to clean and that pets and children under 6 years old are kept out of the kitchen while food is prepared.

The home kitchens do not need the stainless countertops or three sinks required of commercial kitchens. And home cooks cannot sell by mail order or over the Internet. They are limited to selling products directly to consumers — from their homes, for example, or at farmers markets.

The new law also limits the revenue someone can make from a home kitchen to $15,000 a year.

Felicia Hill, a cake baker and decorator in Vancouver, Wash., who lobbied for the new law and helped advise the Department of Agriculture in drafting its rule, said the $15,000 limit is better than the $5,000 originally proposed in the Legislature.

The limit exists because the Cottage Food Act is meant to give home cooks a boost in starting a business without the burden of high overhead.

But Hill hopes it will go even higher. The $12,000 in revenue she had last year was not enough to cover her costs, which included the use of a commercial kitchen and child care. The business was still worth it, Hill said, because she bakes cakes that are peanut-free and sometimes gluten-, dairy — or soy-free to address allergies.

“I’ve had people call to say, ‘My child has never had a cake and now he can have one,’ ” Hill said. “If I lose money from time to time, so be it, because I know I’m changing lives.”

Bill Marler, a food-safety lawyer in Seattle who represented children sickened in the E. coli outbreak at Jack in the Box almost 20 years ago, said Wyoming is considering allowing people to sell raw milk and cheese products from home.

“I guess in the scheme of things, I don’t see Washington’s as that problematic,” Marler said. “My preference would be that you leave things the way they are, but I don’t think the food-safety world will crash down if the rules go through.”

US housing starts rose in April

Christoper S. Rugaber — Mon, 21 May 2012 07:05:00 +0000

WASHINGTON — U.S. builders started work on more homes and apartments last month and requested more permits to build single-family homes. The increases suggest the battered housing market is healing.

The Commerce Department said that builders broke ground in April at a seasonally adjusted annual pace of 717,000 homes. That’s a 2.6 percent increase from an upwardly revised March figure and near January’s three-year high of 720,000. Construction rose for both single-family homes and apartments.

Building permits, a gauge of future construction, fell last month from a 3-1/2 year high to a seasonally adjusted annual rate of 715,000. But that was because of a 23 percent drop in the volatile apartment category. Permits for single-family homes rose almost 2 percent.

Even with the gains, the rate of construction and the level of permits requested remain roughly half the pace considered healthy. But the increase, along with rising builder confidence and stronger job growth, is a hopeful sign that the home market may finally be starting to recover nearly five years after the housing bubble burst.

“We continue to believe that the bottom has been put in for housing … and while improvement will not be vicious nor rapid, improvement it still will be,” said Dan Greenhaus, chief economic strategist at BTIG, an institutional brokerage.

Builders have grown more confident since last fall, in part because more people have expressed interest in buying a home. In May, builder optimism rose to the highest level in five years, according to the National Association of Home Builders/Wells Fargo builder sentiment index.

Homebuilders reported improving sales and higher traffic from prospective buyers, the survey showed. A gauge measuring confidence in sales over the next six months also increased.

Recent job gains have likely made it easier for more Americans to purchase a home. Employers have added 1 million jobs in the past five months. And unemployment has dropped a full percentage point since August, from 9.1 percent to 8.1 percent in April.

Mortgage rates, meanwhile, have fallen to record lows, making home-buying more affordable. Still, many would-be buyers are having difficulty qualifying for home loans or can’t afford larger down payments required by banks.

Though new homes represent just 20 percent of the overall home market, they have an outsize impact on the economy. Each home built creates an average of three jobs for a year and generates about $90,000 in taxes, according to the National Association of Home Builders.

There are some hurdles to a smooth recovery: Builders are struggling to compete with deeply discounted foreclosures and short sales — when lenders allow homes to be sold for less than what’s owed on the mortgage.

Another reason sales have fallen is that previously occupied homes have become a better deal than new homes. The median price of a new home is about 30 percent higher than the median price for a re-sale. That’s nearly twice the markup typical in a healthy housing market.

Retailers' bold steps into mobile payments are paying off

Matthew Talbot — Mon, 21 May 2012 07:05:00 +0000

Two recent announcements prove that retailers are very much in the mobile payments game. First, The Wall Street Journal reported that Walmart and Target were among two dozen retailers collaborating on a mobile commerce project. Then, Starbucks shared the impressive numbers from its Starbucks Mobile app, which launched in the United States in January 2011, and the United Kingdom and Canada a year later. 42 million: that’s how many transactions the company has processed in the 15 months since it launched, and 16 million of those happened between December and April.

Retailers aren’t waiting for NFC, or for banks or Google Wallet-or permission. They’re getting ahead and launching their own systems. And why not? They’re seizing the opportunity to take control of the customer relationship, which they already own, in a new channel.

Enhance what you already do

Mobile opens up a new world of possibilities to offer new services and create direct relationships with customers. The opportunity is huge, and to make the most of it, you must tie it in to what you already do.

The Starbucks Mobile app is a great example of what it takes to succeed with mobile commerce and mobile CRM. It’s not fancy or complicated. It’s simply a digital version of the coffee giant’s existing loyalty card, already popular with millions of customers. Load funds to the mobile app starting with a prepaid card and then a credit card, bring your phone to any Starbucks in the United States, United Kingdom or Canada (it works across countries), and scan the barcode at the register after selecting your coffee. Simple, and here’s the key: more convenient and rewarding than cash or credit. (Though the loyalty aspect, which only applies to U.S. customers, requires a hefty 45 purchases to receive your first free drink, it only takes 15 to earn them thereafter.)

From payments to CRM

Once a company has a successful mobile payment method, it’s a short road to mobile loyalty and engagement programmes. Not only do retailers have a direct marketing channel for sending offers, coupons, alerts and reminders, they also receive detailed information about each customer’s purchasing behavior with every transaction.

Put this information to use, and suddenly the company knows who redeems coupons, when, what they bought and how much they spent, and can incorporate all of that into future marketing and loyalty programmes.

Global corporations, Internet shopping and the popularity of self-service have reduced the number of face-to-face interactions retailers have with customers. Mobile, which combines all three factors, ironically can help re-establish that direct, personal relationship. It’s possible to bring back a mom-and-pop level of familiarity without retuning to a mom-and-pop business model.

Getting started with mobile

With mobile, as with any new technology, it’s often wise to start small and grow incrementally, letting the success of one service pave the way for the next. That’s why it’s important to find a technology partner that offers a full range of services, so you can build your own mobile channel in the most efficient way for your particular business.

No matter where you begin, there are best practices that always apply. Sally Burley, co-founder of The 3rd Degree, a market research and marketing solutions provider, highlights tips to ensure a mobile commerce deployment is successful in her recent article from the 2012 Mobile Commerce Guide, entitled, “Best Practices For Mobile Customer Engagement.”

Know your customer. It’s imperative to understand who your customers are, what kinds of devices they’re using, and what they will want to use mobile for before you begin. Sometimes a smartphone app, such as Starbucks Mobile, is the best way to reach them, but keep in mind that SMS and mobile Web are more widely used across all regions and socio-economic groups.

Make a great first impression. Give customers a good experience when they first engage. Provide a sign-up bonus, discount or offer. Respond quickly. Welcome them to the fold.

This is also the perfect time to gather the basic information that will make all future interactions more meaningful, such as age, location, preferences, etc., and to get their permission to send alerts, notifications and other push communications via mobile.

Keep it simple. Don’t make it hard to engage. Leverage existing programmes and existing behaviour patterns in your mobile efforts. Again, Starbucks Mobile is a virtual version of an established loyalty programme. People already get it.

Best case: your mobile programme makes it easier for customers to do what they already do, and also makes it easy and rewarding for them to engage more. Worst case: at the very least, your mobile programme shouldn’t make it any harder to do what they already do.

Use positive reinforcement. Reward customers when they buy your product, promote on social media, or recommend to friends. Offer information, discounts or gifts. It’s so easy to do with mobile.

Apply the golden rule. The mobile channel gives you instant, anytime, anywhere access to customers, so engage with caution. Treat your customers’ mobile devices as you want retailers to treat yours.

Listen. Ask for feedback, gather transaction data, and then put it to use to deliver even better products and services.

Mobile goes both ways

The two-way communication that’s possible with mobile means retailers and brands can truly know their customers, and deliver the right message at the right time to the right person. Starbucks might send an offer to the effect of, “Haven’t seen you in a while, Mr. Talbot. Come back in for 15 percent off this month’s signature drink.”

Innovative retailers already understand that making the most of mobile means tying it into what they already do best, and using it to enhance every stage of the customer lifecycle.

Lary Coppola, former mayor of Port Orchard, has filed to run for Kitsap County commissioner

The KPBJ — Sat, 19 May 2012 00:18:46 +0000

Elections

He will run against incumbent Commissioner Charlotte Garrido in the Aug. 7 Democratic primary for the District 2 seat, which represents South Kitsap.

Coppola, 61, was elected mayor of Port Orchard in 2007 and was widely credited with improving the business climate as well as making city government more efficient and customer service oriented. During his four years in office, the city annexed McCormick Woods and the Bethel Corridor area that includes the Fred Meyer store and other significant commercial property that brought considerably more sales tax revenue to Port Orchard.

Coppola’s leadership in managing the city’s budget helped Port Orchard avoid staff and service cuts that many other cities had to make during the recession of the past few years.

He ran for a second term but lost his re-election bid last year by five votes to Tim Matthes.

“I have been amazed by the number of people that have contacted me — Democrats and Republicans alike — over the past couple of weeks, encouraging me to run,” Coppola stated. “I said after the 2011 election that I would not seek public office again — and was saying that as late as yesterday. However, after sitting down and having a serious discussion with my wife over the implications and what it would mean for our family, she too was extremely encouraging.

“In all honesty, I didn’t make a final decision until early this morning, after having a discussion with two particular people who convinced me that based on what I accomplished in Port Orchard and in the private sector, that when elected, I could truly make a difference in Kitsap County’s future.”

Lary and his wife, Dee Coppola, own Wet Apple Media, which publishes the Kitsap Peninsula Business Journal and West Sound Home & Garden magazine.

KPS Health Plans to issue refunds after billing error

The KPBJ — Fri, 18 May 2012 07:05:00 +0000

OLYMPIA — KPS Health Plans, a Bremerton-based health insurer, has agreed to refund thousands of dollars to customers who were overcharged due to a billing system error.

Approximately 235 customers are believed to have been billed at incorrect rates. Of those, 61 had the incorrect amount deducted from their bank accounts. Others received incorrect billing statements.

Insurance Commissioner Mike Kreidler has requested the company issue refunds and notify customers about the problem. KPS has said it will issue refunds right away with letters of apology to customers.

The company has agreed to pay for any insufficient funds charges incurred by customers as a result of these overcharges. KPS will also post on its website a notice to customers about the problem.

Starting in mid-April, Kreidler’s office began receiving complaints from consumers about the overbilling, including one customer who said it amounted to about $100 extra.

“I’m disappointed that we had to hear about this problem first from policyholders, rather than from the company itself,” said Kreidler.

KPS customers with questions can call the company or contact Kreidler’s office at 1-800-562-6900.

Community meetings will allow ferry riders to provide feedback, get questions answered

The KPBJ — Fri, 18 May 2012 07:05:00 +0000

Representatives from Washington State Ferries (WSF) will be docking in the communities they serve in the next few weeks, sharing information and answering questions about what’s new and what’s next for the nation’s largest ferry system.

WSF will host a series of community meetings to discuss issues including the recent legislative session, new ferries, system performance targets, vehicle reservations system, and liquefied natural gas as a potential fuel for the fleet.

“These meetings are great opportunities for people to share their thoughts on the ferry system with us, and for us to answer any questions they might have,” said David Moseley, assistant secretary for the Washington State Department of Transportation, Ferries Division. “I’ll also be recapping the 2012 legislative session and talking about what lies ahead for state ferries.”

During the meetings, Moseley will give a brief presentation on systemwide and route-specific issues. Those in attendance can ask questions and provide feedback to Moseley and his team. Materials and comment forms will be posted on WSF’s community meetings page prior to the first meeting.

The community meetings began with a May 17 session on Bainbridge Island. The rest of the scheduled meetings in West Sound are:

Southworth — Monday, May 21, 6-8 p.m. at Harper Church, 10384 Sedgwick Road SE
Vashon Island — Tuesday, May 22, 6-8 p.m. at McMurray Middle School, 9329 SW Cemetery Road
Bremerton — Thursday, May 24,_6-8 p.m. at Kitsap Conference Center, 100 Washington Ave.
Kingston — Tuesday, June 5,_6-8 p.m. at Kingston Community Center, 11212 State Route 104

State puts 18 liquor stores back up for bid at public auction; also closing more stores early

The KPBJ — Fri, 18 May 2012 07:05:00 +0000

OLYMPIA — On May 24, the Washington State Liquor Control Board (WSLCB) will host a new live auction of the rights for 18 state liquor stores. Following the online auction that ended April 20, top bidders on 18 state liquor stores did not pay their posted bid, sacrificing their deposit.

Bidders representing 149 state liquor stores have already paid a total of $25.9 million in bid fees to the state.

“This has been a highly successful auction process,” said WSLCB business enterprise director Pat McLaughlin. “We have already collected nearly $26 million in bids plus about one million more in fees.”

Bids in the online auction totaled $30.75 million. Following the live auction, the WSLCB estimates total bids and fees will exceed $31 million.

The live auction for the 18 available stores, none of which are in Kitsap County, begins with registration at 9 a.m. and live bidding at 10 a.m. on May 24 at the Liquor Control Board distribution center, 4401 E. Marginal Way in Seattle. Bidders will be required to post a $10,000 bid deposit.

Additional details on the live public auction and comprehensive data on each of the18 stores being auctioned is available on the WSLCB website at www.liq.wa.gov. Look for the “Public Auction” graphic on the homepage.

The WSLCB also announced it will shut down 11 additional state liquor stores, including one in Bremerton, on May 22 to compensate for store employees leaving for new jobs before the June 1 transition to private ownership. The WSLCB analyzed market areas where closings would occur.

“We needed to make this move to mitigate the effects of employee attrition. By closing these stores we can continue to minimize disruptions in our service areas,” said retail director Chris Liu. “Staffing levels were always going to be an issue as we drew nearer to June 1, it’s not unexpected.”

In making the decision to close these specific locations, staff considered the proximity of other stores, as well as those other stores’ capability to meet the increased customer base.

“Again the issue is how to best re-appropriate staff while at the same time maintaining service to our valued customers, it’s a delicate balancing act,” said Liu. “In the end we feel this action is the best way to achieve that balance.”

Closing the additional 11 locations will free up approximately 55-60 experienced employees to fill in at the other stores.

Licensees serviced by the closing locations have been notified and can have their orders filled at nearby locations. Since March 1, licensees have had the ability to purchase product directly from distributors in advance of June 1, the first day of private liquor sales.

For a complete listing of state-owned liquor stores and their locations, please visit this link.

New crowdfunding considerations for small businesses

Kevin Casey — Fri, 18 May 2012 07:05:00 +0000

Crowdfunding is a hot topic of late, in part because the JOBS Act promises to bring significant changes to the way it works.

Among other things, the new legislation may allow small businesses to pursue a large, regulated pool of investors in place of the pledges or donations common in today’s crowdfunding campaigns. This could make crowdfunding a more accessible source of capital for small businesses — particularly through online platforms — by allowing more people to invest.

“A regulated environment will give entry to more investors who might see the option of investing more attractive than just giving a donation,” says Tanya Prive, co-founder and COO of the crowdfunding site Rock the Post.

Prive points out that today’s pool of crowdfunding investors isn’t particularly crowded: It’s limited to accredited individuals whose net worth is at least $1 million (excluding their place of residence) or whose annual income is at least $200,000 per year (for a minimum of two consecutive years). These venture capitalists are sometimes called angel investors. However, many small businesses don’t have ready access to these investors or their capital, leaving them with bank loans as one of their few financing options.

The Intuit Small Business Blog recently asked Prive for her insights into the evolving area of crowdfunding.

ISBB: If I’m interested in crowdfunding my business, what can I do now to prepare for the coming changes?

Prive: For starters, small businesses that want to move forward with crowdfunding can begin to gather all the important documents needed to launch a campaign. Documents will include the financial status of the company, financial statements certified by an officer or accountant (depending on the amount of the offering), the company’s tax return for the most recent year, a business plan, and a capital structure explaining who owns what percentage of the company.

Will investors have a say in my business decisions? Can they tell me what to do?

Obviously, investors should always be considered from every perspective. However, voting rights and board seats are a different story. The most important factor here is the amount purchased and the percentage of equity that the individual will get in return, but typically the amounts that you’ll be looking at will not represent a big ownership stake in the capital structure of the company. In any case, this will be specified by the terms of the investment inside each of the offerings.

What do I need to know about ownership structure and crowdfunding?

This is something that the SEC still needs to provide guidance on. At the moment, we know that small businesses will be able to have up to 2,000 investors and a maximum of 500 non-accredited investors. Once the grace period of 270 days (that the SEC has to regulate this matter) is finished, we should be more clear on how the ownership structure would work within the crowdfunding landscape.

I ran a successful Kickstarter campaign. This is the same thing, right?

Pledging campaigns differ greatly from investment campaigns, and it is important to keep in mind what motivates contributors in each case. Pledging comes down to three things:

People connect with the message and reason for the project;
People connect with the unique way in which the sponsor is trying to raise funding; and
People connect with some physical aspect of the project, such as the gifts they get from pledging.

When creating a pledging campaign, it is important to pull at the emotional heartstrings of potential contributors and to plan your pitch accordingly. Investments, however, are more of a strategic decision than an emotional one. So, with investment campaigns, it is important to present the business case professionally and fully. Here are three ways of doing so:

Have all the required paperwork handy for prospective investors to access;
Build an attractive business proposition; and
Establish credibility and trust of the executive team through well-written bios, references, and similar materials.

Unemployment rate, job numbers continue to confound

The KPBJ — Thu, 17 May 2012 07:05:00 +0000

OLYMPIA — Washington’s seasonally adjusted unemployment rate fell from 8.3 percent in March to an estimated 8.1 percent in April, despite losing an estimated 300 jobs during the same period.

The mixed results are derived from separate surveys: The survey that’s used to calculate the unemployment rate showed job gains, while the survey that’s used to calculate job numbers showed a loss.

“It’s always confounding when the surveys produce contradictory results,” said Dave Wallace, senior economist at Washington’s Employment Security Department. “Based on experience over the past several months, the job numbers are likely to be revised.”

For example, the 10,700 job loss originally estimated for December 2011 was revised later to a loss of just 100; the original estimate of a 13,200 job gain in January 2012 was later revised upward to a gain of 14,700; February’s preliminary gain of 4,200 jobs was later revised down to a gain of 1,700; and March’s estimated gain of 3,300 jobs has now been revised to a gain of 4,900 jobs.

Since original estimates often are revised substantially, Wallace stressed the importance of not placing too much emphasis on a single month of data.

“From month to month, the numbers bounce around a little. But when we look at data over several months and years, we get a better picture of the economy — and it’s continuing to improve,” he said.

In fact, April’s estimated unemployment rate is the lowest since January 2009, when it was 7.7 percent.

Industry sectors that added the most jobs in April were manufacturing, up an estimated 2,900 jobs (seasonally adjusted); other services, up 900; and professional and business services, which added 600 jobs.

Industry sectors that lost the most jobs in April included government, which lost an estimated 2,300 jobs; transportation, warehousing and utilities, down 1,300; education and health services, down 900; and leisure and hospitality, which lost 500 jobs.

The breakout in the government-sector job loss includes state agencies, which eliminated an estimated 700 jobs; local government (not including K-12 schools), down 700 jobs; federal government, which shed 600; and higher education, down 400 jobs. Only K-12 schools grew, by an estimated 100 jobs.

Based on the latest quarterly benchmarking through December 2011, the state has regained an estimated 88,200 jobs since the low point of the recession.

In April, an estimated 285,800 people (seasonally adjusted) in Washington were unemployed and looking for work, and Employment Security paid $256 million in unemployment benefits to 184,486 people.

As of May 5, there were 89,815 workers in Washington who had run out of all unemployment benefits.

Individuals who are having trouble finding jobs on their own should visit their local WorkSource employment center. WorkSource is a statewide partnership that includes Employment Security, local workforce development councils, and other state, local and nonprofit agencies that provide a comprehensive array of employment and training services. Most of the services are available at no cost to customers.

Locations of local WorkSource offices are listed online at go2worksource.com and in the blue pages of local telephone books.

Did Amazon deal to settle sales tax dispute mess with Texas law?

Laylan Copelin — Thu, 17 May 2012 07:05:00 +0000

Amazon owed $269 million in sales taxes but made an “immaterial payment” in resolving a tax dispute with Texas by agreeing to begin collecting sales taxes in the state in July and promising jobs and capital investment. Never before had a Texas comptroller accepted such a promise to settle a tax dispute, and some question whether it was legal.

AUSTIN, Texas — Texas Comptroller Susan Combs’ settlement with Amazon.com — hailed by the company’s allies and rivals alike — is an unprecedented solution to a vexing standoff.

The world’s largest online retailer agreed that on July 1, it would begin collecting sales taxes in Texas, just as its brick-and-mortar rivals do, while promising to bring 2,500 jobs and $200 million in capital investment to the state over four years.

Amazon owed $269 million, according to its filings with the Securities and Exchange Commission, but paid an “immaterial payment” as it resolved the tax dispute.

Never before had a Texas comptroller accepted the promise of jobs and business investment to settle a tax dispute.

But is it legal?

Austin lawyer Buck Wood, a tax attorney and a former deputy comptroller and general counsel under the late Comptroller Bob Bullock, says no.

“While this may seem to be a reasonable resolution in people’s minds,” Wood said, “it’s not worth the paper it’s written on. She just can’t do it.”

Wood argued that the state’s constitution bars “forgiving” tax debts and that the settlement raised the specter of creating a “too big to pay” class of taxpayers who get preferential treatment.

He said it sets a bad precedent when Combs has estimated that Texas loses $600 million a year on untaxed online sales.

Combs, through her aides, said she legally cannot discuss individual cases. Speaking generally, however, she denied ever “forgiving” taxes in violation of the constitution.

Amazon declined to comment.

Several lawyers — inside and outside the comptroller’s office — disagree to various degrees with Wood’s interpretation of the one statute that gives the comptroller authority to settle cases when the “costs of collection” exceed what is owed.

Wood interprets that phrase to be limited to the cost of litigation, while others say the comptroller can weigh other factors, including future benefits to Texas.

The issue could be punted to Texas Attorney General Greg Abbott for his opinion, if lawmakers request it, or a local government could challenge the settlement because it includes local as well as state sales taxes.

Judging the settlement is complicated by the secrecy surrounding it.

State law protects businesses — including publicly traded companies such as Amazon — by keeping confidential their tax information, including settlements.

Amazon could waive the confidentiality and disclose the “immaterial amount” it paid to settle the case, but it declined to do so.

The confidentiality statute also makes it impossible for the public to judge the comptroller’s actions. There is an assumption among tax professionals, however, that Amazon paid less — possibly a lot less — in back taxes or it wouldn’t have settled.

Billy Hamilton, a former deputy comptroller, defended Combs’ authority to settle cases but said people can still question the deal.

“There obviously was a quid pro quo,” Hamilton said. “You walk away from a quarter of a billion dollars, but you get jobs. It’s a question of judgment.”

Hamilton said the Legislature can provide a check-and-balance to a comptroller abusing the secretive system. He said lawmakers can request the settlement’s details but cannot share them with the public.

Hamilton said several states recently have relaxed confidentiality in tax settlements.

Combs has championed transparency in government since becoming comptroller in 2007. Her agency maintains a “Texas Transparency” website that details state revenue and spending. And she has encouraged local governments to open up their books.

Asked if she supports keeping tax settlements secret, Combs said, through her aides, that she follows the law.

In this instance, Amazon and Combs are having it both ways.

Amazon agreed that Combs could disclose the number of promised jobs and the amount Amazon would invest in Texas over the next four years. But Lauren Willis, the comptroller’s communications director, said Amazon insisted the remainder of the deal be kept secret.

In other economic incentive agreements, the state has added “clawback” provisions that force companies to repay the state if they fail to deliver.

However, Willis said she could not discuss how — or whether — Texas is protected if Amazon fails to deliver the jobs or investments.

The Austin American-Statesman has requested the entire agreement under the Public Information Act.

In an email, Combs’ staff said the office would seek the attorney general’s opinion “as to what we may and may not release.”

BoltBus adds nonstop service from Seattle to Vancouver, B.C.

The KPBJ — Thu, 17 May 2012 07:05:00 +0000

BoltBus, a division of Greyhound Lines, Inc., has announced it will begin nonstop service between Seattle and Vancouver, B.C, on May 31. BoltBus is launching its first West Coast service expansion between Seattle and Portland on Thursday, May 17.

The new service to Vancouver is the first Canadian market BoltBus has entered and will be exclusively operated by Greyhound. To celebrate the expansion, all tickets purchased for travel between Seattle and Vancouver during the first four days of service will be $1. Tickets are available for purchase at BoltBus.com.

Since it began operating in March 2008, BoltBus was the first bus service to offer on-board amenities such as comfortable leather seats, extra legroom, free Wi-Fi and power outlets. Millions of passengers in the Northeast have traveled on BoltBus between Baltimore, Boston, New York City, Philadelphia and Washington, D.C.

“We are thrilled to continue our West Coast expansion and debut our premium service in Canada. We’re excited to connect these two coastal seaport cities and introduce Vancouver residents to a wholly new bus travel experience,” said David Hall, general manager of BoltBus. “Demand for this level of service continues to grow so we know customers will love the modern amenities, affordable pricing and express daily options we offer.”

In Seattle, BoltBus will operate from Fifth Avenue South and King Street, which is adjacent to the International District Station. In Vancouver, BoltBus will operate from the Pacific Central Station at 1150 Station St.

BoltBus tickets are available for purchase in advance at BoltBus.com or from a driver before boarding. One-way fares start at $1, plus a booking fee. The highest fare will adjust based on market demand. The earlier passengers purchase their tickets, the lower the fare will be. A ticket purchase guarantees a seat on the selected schedule. Walkup tickets will be purchased at full price. All tickets are nonrefundable.

A loyalty program, Bolt Rewards, is also available to reward frequent riders with free travel. Riders who take eight trips on BoltBus are eligible for a free one-way ticket trip.

For fare and schedule information, visit BoltBus.com.

Congress votes to reauthorize Export-Import Bank

Jim Abrams — Thu, 17 May 2012 07:05:00 +0000

WASHINGTON — The government’s vehicle for promoting U.S. export sales survived a challenge from conservatives Tuesday with a Senate vote to renew the charter of the Export-Import Bank for three years. The vote, coming after the Senate rejected amendments to weaken or kill the bank, sends the measure to President Barack Obama for his signature.

The bill, which passed the House last week, also raises the independent federal agency’s lending cap from the current $100 billion to $140 billion. The vote was 78-20.

The bank, which has been renewed several dozen times with little notice since it was established in 1934, became caught this year between business groups that strongly support it and conservative organizations, such as Club for Growth, that said the bank is market-distorting and should be abolished.

Obama has pushed for its renewal, saying it is key to his job-promoting goal of doubling exports over a five-year period.

A side issue has been the split between supporters of Boeing Co., the Ex-Im Bank’s largest beneficiary, and Delta Air Lines, which has claimed that its bottom line has been hurt because its foreign competitors, such as Air India, have used Ex-Im financing to buy Boeing’s newest aircraft.

Without congressional action, the bank’s charter would have expired at the end of this month. It is also close to going over its lending cap.

Obama said in a statement following the Senate vote that reauthorization of the Ex-Im Bank will help businesses create jobs at home and sell products abroad without cost to taxpayers.

“Congress should continue to do the right thing by acting on proposals we know will grow our economy and create jobs. In the meantime, I look forward to signing this bill into law,” Obama said.

The vote, said the bank’s chairman and president Fred Hochberg, most importantly “gives our exporters a clear signal that we are there for them and that they will have a reliable Ex-Im Bank.”

The bank, which takes no money from taxpayers, last year provided export-financing support for about 2 percent of U.S. exports, about $32 billion in loans, loan guarantees and credit financing. Some $11 billion of that supported Boeing sales of large commercial aircraft.

Countering critics who say it is “Boeing’s bank,” the bank says that 87 percent of its transactions last year directly benefited small businesses and that its financing supported 290,000 jobs, including 85,000 in the aerospace industry.

“Failure to reauthorize the Ex-Im would amount to unilateral disarmament and cost tens of thousands of American jobs,” the U.S. Chamber of Commerce said in a letter to senators, noting that last year Chinese export credit agencies provided almost 10 times more financial backing than the Ex-Im Bank did.

“This bank is one of the most powerful tools that we have for manufacturing jobs in America,” said Democratic Sen. Maria Cantwell of Washington, home to many Boeing facilities.

But conservatives argued that the government should stay out of the marketplace. “We’re in a bidding war with China and Europe to see who can subsidize the most loans at a time when all of us are broke,” said Sen. Jim DeMint, R-S.C. “We need to bring this to a close.”

Among the amendments defeated before the Senate passed the bill was one by Sen. Mike Lee, R-Utah, that would have terminated the bank after a year.

Earlier this month House Majority Leader Eric Cantor, R-Va., and Democratic whip Steny Hoyer of Maryland reached a compromise that answered some conservative concerns. In addition to renewing the bank for three years, it requires greater transparency in the bank’s dealings, a Republican priority, requires the bank to keep its default rate under 2 percent and directs the bank to make clear that loans are needed for such reasons as assuming risks the private sector won’t undertake or meeting competition from foreign export credit agencies.

The compromise also addresses the Boeing-Delta dispute by directing the treasury secretary to initiate multilateral negotiations on reducing and eventually eliminating government export subsidies for aircraft and ultimately ending all government export subsidies.

It passed the House last week on a 330-93 vote, with all no votes coming from Republicans.

Girl recovering from school shooting gets place of honor in Bremerton parade

The KPBJ — Wed, 16 May 2012 07:05:00 +0000

Amina Kocer-Bowman, the 9-year-old girl who was critically injured in an accidental shooting in her third-grade classroom, will be the civilian grand marshal for the annual Armed Forces Day Parade on Saturday in Bremerton.

The girl, who was released from the hospital April 3, will ride with her family on a car in the parade, Bremerton Chamber of Commerce executive director Mike Strube confirmed.

Bremerton Mayor Patty Lent said that what the youngster has gone through in her ongoing recovery from the shooting is “almost like being a veteran.”

The shooting occurred Feb. 22 at Armin Jahr Elementary School in Bremerton when a 9-year-old boy brought a gun to class and it went off while in his backpack.

Fourth Street project finishing in time for Armed Forces Day Parade in Bremerton

Tim Kelly — Wed, 16 May 2012 07:05:00 +0000

To much relief, the brick repaving work on Fourth Street between Park and Pacific avenues in Bremerton will be completed before the Armed Forces Day Parade marches along the spiffed-up block on Saturday, May 19.

A few finishing touches — new decorative street lights and an emblem of an anchor and compass that will be embedded in the center of the Fourth and Park intersection — will have to wait until after this weekend, but the project is essentially finished.

“Our deadline was always to have it completed before the parade,” Bremerton Mayor Patty Lent said, adding that she’s “relieved” that the work is finishing up on time.

So are business owners on that block who have been affected by the construction that’s made it challenging for customers to get to their businesses the past few months.

“That’s the good news, it’ll be done soon,” Joe Hudson said last week.

Hudson owns Evergreen Trophies, which has been at 545 Fourth St. since 1978, and said he welcomes the street improvements but has been dismayed by the lack of communication from the city about the project on Fourth, as well as similar work last year on Pacific Avenue that limited access to his and neighboring businesses.

“My customers would say ‘boy, that was an adventure getting here,’” he said. “You’re not going to drive down here or even walk down here when you’ve got dump trucks and backhoes around.”

Although Hudson said business owners had “zero input” in designing and planning the project, he did say the city’s new public works director, Katy Allen, has “bent over backwards to at least try to have some communication with us.”

Lent said that the city, which formed a Local Improvement District for the commercial area around Fourth Street and Washington and Pacific avenues, didn’t communicate with business and property owners about construction plans before she became mayor.

But she said recommendations from business owners resulted in a net loss of fewer on-street parking spaces.

Lent acknowledged that construction work in the area has “really impeded the merchants’ business,” and said city officials are “going to be cognizant of early alerts” for businesses when future projects are planned and implemented.

The street and sidewalk upgrades will help make the downtown area more “pedestrian friendly,” Lent said.

And construction of a complex anchored by a movie theatre at the southeast corner of Fourth and Park will provide more things for visitors to do. That development also includes a new parking garage that will provide paid parking for 250 vehicles.

One of the three levels is open in the garage, which will have entrances to the different levels from Burwell Street, Park Avenue and the alley behind Fourth Street businesses. The SEEfilm Bremerton Cinema won’t be open until mid-June, and an announcement is expected soon about a restaurant and coffee shop that will go in the complex.

Lent said the city wants to change the on-street parking time limit from two hours to three hours in the area near the cinema.

40 Under Forty business leader recognition program accepting nominations for 2012

The KPBJ — Wed, 16 May 2012 07:05:00 +0000

Nominations are being accepted for the Kitsap Peninsula Business Journal’s “40 Under Forty” program, which recognizes outstanding young business leaders on the Kitsap Peninsula.

Forty individuals will be recognized in the class of 2012 for the contributions they have made within their fields.

To be eligible, all of the following requirements must be met.

An individual must:

Work in the West Sound (Kitsap or Mason counties, or the Gig Harbor side of Pierce County)
Be under the age of 40 by Sept. 15, 2012
Be an outstanding employee, manager, or business owner
Be making a notable impact on their business or industry

Comments submitted with a nomination will be viewed by the judging committee. In addition, individuals who are nominated will be asked to complete an application. The deadline for nominations is Aug. 5.

Below are the links to the nomination and application forms:

The 40 Under Forty will be recognized at a Sept. 20 event at Kiana Lodge in Poulsbo, and a special publication is produced with a profile of those selected. The award recipients also will be featured in the Kitsap Peninsula Business Journal.

For information about business sponsorship packages for the 40 Under Forty publications and awards event, contact Dee Coppola at 360-876-7900.

Poll: Half of respondents call Facebook a passing fad

Tali Arbel — Wed, 16 May 2012 07:05:00 +0000

Half of the respondents in a recent survey think Facebook is a passing fad, according to the results of a new Associated Press-CNBC poll. And, in the run-up to the social network’s initial public offering of stock, the poll also found 50 percent of people say Facebook’s expected asking price is too high.

The company Mark Zuckerberg created as a Harvard student eight years ago is preparing for what looks to be the biggest Internet IPO ever. Expected later this week, Facebook’s Wall Street debut could value the company at $100 billion, making it worth more than Disney, Ford and Kraft Foods.

That’s testament to the impressive numbers Facebook has posted in its relatively brief history.

More than 40 percent of American adults log in to the site — to share news, personal observations, photos and more — at least once a week. In all, some 900 million people around the world are users. Facebook’s revenue grew from $777 million in 2009 to $3.7 billion last year. And in the first quarter of 2012 it was more than $1 billion.

Just one-third of those surveyed think the company’s expected value is appropriate, while 50 percent say it is too high. Those who invest in the stock market are more likely to see shares as overvalued; 58 percent said so. About 3 in 10 investors say the expected value of shares is fair. Facebook on Tuesday lifted the expected price for its shares to $34 to $38 apiece from $28 to $35 each.

But price worries won’t necessarily stop would-be investors. Half the people surveyed say they think Facebook is a good bet, while 31 percent do not. The rest aren’t sure. Americans who invest in stocks roughly agree, although investors who are more “active” - those who have changed their holdings in the past month — are more negative. Nearly 40 percent say Facebook would not be a good investment.

Young adults, a majority of whom log on to Facebook daily, are more willing to dance to their hoodie-wearing piper, 28-year-old CEO Zuckerberg. Among Zuckerberg’s peers, adults under age 35, 59 percent say Facebook is a good bet. Compare that to the views of senior citizens: Only 39 percent age 65 and over say Facebook shares are a good investment. Nearly half of Gen X’ers (ages 35-44) say the company is a good bet, as do 55 percent of middle-aged people.

Those under 35 are the generation most interested in Facebook’s IPO because they’ve grown up immersed in the social network. They were the first users, logging in from their college dorm rooms. Later, Facebook expanded to allow high school-age and even younger students to sign up. It’s become an integral part of their lives, giving them a launching pad to spread the news of life’s major developments through posts and pictures.

Conversely, it’s the rare senior citizen on Facebook: Just 21 percent have an account. Half of Baby Boomers — the generation born in the years after World War II — have one. But most of the 56 percent of the country that’s on Facebook is young — two-thirds of Gen X’ers and a staggering 81 percent of people 18-35 use the social networking site.

Young people aren’t just connected. They are constantly tethered to smartphones, tablets and notebook computers. Even with the rise of alternative social networks like Twitter and Google Plus, 55 percent of Zuckerberg’s peers go on Facebook every day. A third log on several times a day. Despite the intensity of their use, a narrow majority of young adults predict Facebook’s appeal will fade down the road (51 percent); fewer think it will stick around as a service (44 percent).

The public overall is similarly divided on the company’s future. Just under half of adults (46 percent) predict a short timeline for Facebook, while 43 percent say it has staying power.

Young people are more aware of Zuckerberg and have more positive views of the CEO, who celebrated his 28th birthday on Monday. Overall, one in five Americans say they’ve never heard of him, 30 percent don’t have an opinion and 14 percent plain don’t like him. Only about a third have a good impression of the CEO, who has alienated some with Facebook’s ever-changing approach to user privacy.

But 46 percent of people under 35 like him. And a scant 4 percent of those younger adults say they’ve never heard of him.

The privacy issue is a stinger. Three of every five Facebook users say they have little or no faith that the company will protect their personal information. Only 13 percent trust Facebook to guard their data, and only 12 percent would feel safe making purchases through the site. Even Facebook’s most dedicated users are wary — half of those who use the site daily say they wouldn’t feel safe buying things on the network.

As for how Facebook makes most of its money — selling ads - 57 percent of users say they never click on them or on Facebook’s sponsored content. About another quarter say they rarely do.

Despite user discontent about privacy, Facebook and Zuckerberg have connected with many Americans. The survey suggests that his reputation and youth seem more like assets than liabilities. For those who have heard of the CEO, two-thirds are at least somewhat confident in his ability to run a large public company. Twenty-two percent doubt he can handle the leadership role. As for the social network he created, 51 percent of Americans clicked “Like.”

The Associated Press-CNBC Poll was conducted May 3-7 by GfK Roper Public Affairs and Corporate Communications. It involved landline and cell phone interviews with 1,004 adults nationwide and has a margin of sampling error of plus or minus 3.9 percentage points.

Pierce County legislator running for state auditor plans Kitsap County stops

The KPBJ — Tue, 15 May 2012 17:44:00 +0000

A Pierce County state legislator, Rep. Troy Kelley, D-Lakewood, recently announced his candidacy for State Auditor and will be holding community conversations in Gig Harbor, Port Orchard, Bremerton, Silverdale and Poulsbo on Wednesday, May 16.

Kelley will be discussing his views on the Auditor’s Office and how to hold government accountable to the citizens. He will be at the following locations:

Java and Clay Café, 3210 Harborview Drive in Gig Harbor, from 10-10:50 a.m.
Starbucks, 1430 Olney Ave. SE in Port Orchard, from 12-12:50 p.m.
Starbucks, 80 Washington Ave. in Bremerton, from 1:30-2:30 p.m.
Monica’s Waterfront Bakery, 3472 NW Byron St. in Silverdale, from 3:30-4:20 p.m.
Sir Bean, 18851 State Route 305 NE in Poulsbo, from 5-5:50 p.m.

State Transportation Commission to adopt new toll rates for Tacoma Narrows Bridge

The KPBJ — Tue, 15 May 2012 17:42:19 +0000

An article by the Washington State Transportation Commission

OLYMPIA — Those interested in toll rates for the Tacoma Narrows Bridge will have one more opportunity to voice their opinions during a final hearing May 21 in Gig Harbor.

The Washington State Transportation Commission will hold the final rate hearing starting at 6 p.m. at Gig Harbor City Hall, 3510 Grandview St., and will take action immediately afterward to adopt new toll rates for the Tacoma Narrows Bridge.

The commission has proposed the following toll rates to take effect July 1:

$4 Good to Go!
$5 cash
$7 pay by mail

The commission is required by law to set toll rates for the Tacoma Narrows Bridge in an amount that is sufficient to pay debt payments, maintenance, preservation and operations of the bridge.

Because the bridge was financed with an escalating debt structure to minimize the initial impact on bridge users, debt payments rise over time and require additional toll revenue. In the 2007-09 biennium the state paid $41 million in debt payments, but in the current 2011-2013 biennium debt payments for the bridge reach nearly $90 million.

The commission evaluates several factors during the toll-setting process, including bridge expenses that are paid for by toll revenue, trends in traffic volumes, the schedule for bond payments, ending balances in the toll revenue account, the rate recommendations from the Citizen Advisory Committee and public input.

In addition to the public hearing, the commission held two public input meetings on its proposal in April in Port Orchard and Gig Harbor.

For more information, visit the Transportation Commission’s website.

Michelle Malkin will be featured speaker at state Republican Party's convention

The KPBJ — Tue, 15 May 2012 17:35:42 +0000

The Washington State Republican Party has announced that conservative columnist Michelle Malkin will be the featured speaker at the state convention’s banquet on May 31 in Tacoma.

Tickets are on sale for the convention banquet through the state Republican Party’s website.

The Republican state convention will run May 30-June 2 at the convention center in Tacoma.

Mortgage-aid revisions paying off for bankers, some borrowers

E. Scott Reckard — Tue, 15 May 2012 17:33:31 +0000

A newly streamlined government plan to reward homeowners who diligently pay their underwater mortgages is proving a bonanza for banks, which by one estimate may pocket $12 billion in extra revenue by refinancing loans.

The revisions to the Obama administration’s 3-year-old Home Affordable Refinance Program have yielded mixed results for homeowners, analysts and mortgage professionals say.

Some responsible homeowners are indeed getting lower-interest loans despite owing far more than their homes are worth. But others have loans that don’t qualify, or must jump through hoops the plan was supposed to eliminate, such as on-site appraisals and extensive paperwork.

What’s more, critics say, homeowners who get new loans are being stuck with higher rates than necessary, often half a percentage point or more. That’s because banks are refinancing only their own borrowers, instead of competing against one another, which would drive rates down.

“The banks should charge lower than the market interest rate because the new version of the program means less work and less risk for them. Instead, they are charging more,” said Amherst Securities analyst Laurie Goodman, who titled a recent report on the program “And the Winner Is … the Largest Banks.”

The program is a key part of President Obama’s efforts to bolster the ravaged housing market. Administration officials, including Housing and Urban Development Secretary Shaun Donovan, are pressuring Congress to pass a law enabling the program to be used to help more homeowners.

In response, Sens. Robert Menendez, D-N.J., and Barbara Boxer, D-Calif., said they would introduce legislation this week to extend streamlined refinancing to all underwater Fannie and Freddie borrowers and eliminate appraisal and upfront fees for homeowners using the program to obtain new loans.

The Home Affordable Refinance Program is less controversial than relief plans for delinquent borrowers. Few have objected to its goal of helping homeowners who pay their loans on time but can’t refinance at today’s record low rates because their home values have plummeted.

To qualify, borrowers must owe more than 80 percent of the current home value. They can’t have missed a payment for the past six months and are allowed to have been late by 30 days only once in the last year.

As this year began, nearly 1 million loans had been replaced using the program, but only 1 in 10 had balances higher than 105 percent of the home value. The changes, phased in during the first quarter, aim to encourage refinances no matter how far underwater the loan is.

The program is for loans owned or backed by Fannie Mae and Freddie Mac, the government-supported mortgage buyers that handle 60 percent of U.S. home loans. It works by having mortgage customer-service providers, which are mainly arms of banks, refinance borrowers into new loans that are sold to Fannie or Freddie.

Because Fannie and Freddie already are stuck with the losses if the existing loans go bad, the thinking goes, substituting lower-interest new mortgages actually reduces everyone’s risk. The homeowners have hundreds of dollars more each month, which makes them less likely to default — a boon to their local housing markets and a lift for the economy when they spend their extra cash.

The problem, Goodman said, is that the streamlined program minimizes processing costs for the existing loan servicers but not for competitors, who must collect nearly as much information about borrowers as though they were writing new loans.

The program also exempts existing servicers from having to reimburse Fannie and Freddie for losses on certain flawed mortgages — a multibillion-dollar problem for the big banks — while requiring competitors to bear that same risk.

Obama envisioned a different scenario when he announced the revised program last fall.

“These changes are going to encourage other lenders to compete for that business by offering better terms and rates,” he said. “And eligible homeowners are going to be able to shop around for the best rates and the best terms.”

That wasn’t the experience of Johnny James, who bought a Gardena, Calif., condominium with a 20 percent down payment during the housing bubble and now owes $414,000 on a home Fannie Mae says is worth $266,000.

James and his wife, Yolanda Hatcher, have full-time jobs and excellent credit. Since they hadn’t missed payments on their Fannie Mae loan, they thought they were good candidates for a lower-interest refi.

But their servicer, Seterus, said it was just a bill collector, not a lender. Their original lender, JPMorgan Chase, said it would refinance only loans it is currently servicing. Wells Fargo said the same, and online mortgage specialist Quicken Loans said the condo was too far underwater.

“There’s not a lot of help out there for folks like us,” James said.

The couple turned to mortgage broker Jeff Lazerson, who said he submitted applications to eight lenders and found only one that would refinance them. The pending deal, which would cut their rate to 4.63 percent from 6.25 percent, was made after they fully documented their income and assets and paid for an on-site appraisal.

“This program has been billed as a worry-free way for responsible people to get a break on rates even if they’re way underwater,” said Lazerson, president of Mortgage Grader in Laguna Niguel, Calif. “From where I sit, it’s a disaster.”

James Parrott, senior adviser on housing at the White House’s National Economic Council, said that even in its imperfect current version, the program would aid many of the half-million or so borrowers who have applied to refinance since the latest revisions.

“Those people get dropped from 6 percent or 7 percent loans to somewhere around 4 percent,” he said. “They will have hundreds of dollars more for themselves every month and thousands of dollars a year.”

While proponents say the program makes winners out of all hands, it is not without detractors.

Alexandria, Va., banking consultant Bert Ely said easy-qualifier loans “are what got us into this mess in the first place” and that waiving legal liabilities for banks could mean another round of mortgage headaches in 2013 and beyond.

“What the government is sanctioning is kicking the can down the road, again.”

Like other administration plans to bolster housing, the voluntary Home Affordable Refinance Program had underperformed until recently. Lenders rarely refinanced loans bigger than 105 percent of the home’s value even though they were permitted to go to 125 percent.

But that changed as the new rules loosened restrictions and did away with the 125 percent cap. Applications for these refinances rocketed from less than 5 percent of the mortgage market in December “to close to 25 percent and rising,” Nomura Securities analyst Brian Foran wrote in a recent report.

The loans are more profitable as well. In the past, Foran said, lenders typically made 2 percent of the loan amount when selling a loan to Fannie or Freddie, so a $350,000 loan might yield $7,000 in revenue.

Because the banks are charging higher than market rates for loans made under the program, the mortgages are more valuable to investors and sell for more. The banks are typically making an extra 2 percent of the loan amount, Foran said - $7,000 more on the $350,000 loan, money that drops to the bottom line.

By Foran’s calculations, writing more loans at higher profit could yield $12 billion in more revenue for lenders.

All the big banks showed unexpected jumps in their first-quarter mortgage profits, in large part because of the revised government program, said Keefe, Bruyette & Woods research director Frederick Cannon.

“Interesting that (the program) would be so good for banks,” he said.

Next Washington C.A.S.H. business training sessions include first classes in Mason County

The KPBJ — Mon, 14 May 2012 07:05:00 +0000

Washington Community Alliance for Self-Help (C.A.S.H.) will offer two free business boot camp and orientations this summer for business start-up classes in Kitsap and Mason County.

Program director Stuart Walton and Bill Hoke will give a breakfast presentation about C.A.S.H. for the North Mason business community from 7-8 a.m. May 14 at the Belfair QFC meeting room above the bakery. Business support and involvement is needed for this entrepreneurial development program that has been operating in Washington state for 18 years.

This summer is the first time Washington C.A.S.H. has offered its boot camp and orientation in Mason County. The orientation will be June 14 from 6-9 p.m. at the Port of Allyn.

Those who qualify will begin 10 weeks of Business Development Training classes June 21, from 6-8:30 p.m. in Allyn.

The Kitsap boot camp and orientation will be June 19 from 6-9 p.m. at 1201 Park Ave. in Bremerton. Classes will begin June 26 in Bremerton at Kitsap Community Resources.

“We have had many start-up clients from North Mason in the past years and we want to test the waters to see if we can sign up at least 18 for our summer classes,” Walton said.

Local business owner Marcia Hamilton of Belfair has been instrumental in arranging to bring the orientation to Allyn and the North Mason Chamber has endorsed the program.

Those receiving state unemployment benefits through Work Source may be eligible for the Self Employment Assistance Program (SEAP).

Topics included in the 10-week C.A.S.H. business training include developing a clear definition of your business, taxes, insurance, sales, marketing, calculating the break-even point, learning cash flow techniques, developing a pricing strategy, preparing financial statements, projecting sales and selling.

AWB weekly column — Roll On Columbia!

Don Brunell — Mon, 14 May 2012 07:05:00 +0000

In 1942, the completion of Grand Coulee Dam was hailed as the “Eighth Wonder of the World.” Seventy years later, most of us aren’t aware of what that dam or the others on the Columbia River continue to do for us.

To commemorate Grand Coulee’s completion, the Bonneville Power Administration commissioned legendary folk singer Woody Guthrie to write songs praising the dam that harnessed the mighty Columbia River.

Guthrie toured the region from the Bonneville Dam to Grand Coulee, and within a month he had written 26 songs, the most famous of which is “Roll On Columbia.”

“And on up the river is Grand Coulee Dam, the mightiest thing ever built by a man, to run these great factories and water the land, it’s roll on, Columbia, roll on.”

Recently, I drove most of Guthrie’s route and saw eight of the 11 dams now operating on the Columbia in Washington. Most had their floodgates open, spilling water to move young salmon to the ocean. At Grand Coulee, flood control was the concern as operators dropped its massive reservoir to handle spring runoff from the mountains of Montana, Idaho and British Columbia.

When I arrived home in Vancouver, the Columbia was at its high-water mark as it often is this time of year, but it wasn’t flooding. That’s in stark contrast to the scene on May 30, 1948, when a levee on the flood-swollen Columbia River ruptured, sending a 10-foot high wall of water crashing into Vanport (North Portland). Sixteen people died and Vanport — at the time, Oregon’s second-largest city — disappeared forever.

President Harry Truman flew west to see the devastation. Speaking to an audience in Portland, Truman said the flooding could have been averted if a network of dams along the Columbia, Snake and Willamette rivers was in place. He scolded Congress and told them to get off the dime and fund the Bureau of Reclamation to complete its flood control projects.

Over the next 20 years, the McNary, The Dalles and John Day dams were completed on the lower Columbia and the Ice Harbor, Lower Monumental, Little Goose and Lower Granite dams were completed on the lower Snake, adding flood control capacity, creating a 465-mile water transportation network, and generating much-needed hydropower.

One verse of Guthrie’s song talks about the electricity generated by the dams as “turning our darkness to dawn.”

Washington’s Columbia River dams produce enough power each year to provide electricity for nearly 7 million homes. In fact, the Grand Coulee Dam is the largest producer of electricity in the United States.

The electricity from those dams made it possible for the aluminum industry to locate in the Northwest and for Boeing to build B-17s and B-29s during World War II. Boeing became the world’s premier aircraft manufacturer due largely to affordable and reliable electricity.

Grand Coulee alone transformed 671,000 acres of desert into some of the world’s most fertile farmlands. According to the federal Bureau of Reclamation, the Columbia River Basin Project produces $630 million worth of irrigated crops, $950 million in power production, $20 million in flood damage prevention, and $50 million in recreation income.

For most of us, the dams have always been here. We never knew a time without them, when electricity was scarce, when we struggled to grow crops on barren land and lived in fear of raging floodwaters.

But we shouldn’t take them for granted.

Some activists want to remove the dams — but consider what our lives would be like without them.

State Rep. Jan Angel receives Guardian of Small Business award

The KPBJ — Mon, 14 May 2012 07:05:00 +0000

The National Federation of Independent Business (NFIB) has named state Rep. Jan Angel, R-Port Orchard, as recipient of its Guardian of Small Business award for her voting record in support of small businesses in Washington.

According to NFIB/Washington State Director Patrick Connor, Angel has a 100 percent positive score for small businesses. The score is based on 10 votes taken in the state House of Representatives during the 2011-12 legislative sessions.

In a letter to Angel, Connor wrote, “This award is our way of thanking you for the hard work you’ve done on the issues that help preserve and protect free enterprise in our state. NFIB members and I appreciate your steadfast support, voting with small business 100 percent of the time during the 62nd Legislature.”

Connor said lawmakers selected for the award took some difficult votes to support small businesses and employers.

“It’s easy to say you support small business, but it’s a far different thing to actually vote with small business when faced with the pressure from big labor, big business and other advocates of big government. Our Guardians of Small Business fought for free enterprise in the face of sometimes hostile opposition and took tough votes because they knew it was the right thing to do for the job creators in their home district and across the state,” he added.

Angel is a co-sponsor of several bills included in House Republicans’ “Let’s Get Washington Working Again” jobs package. That legislative package includes proposals such as improved permitting processes, a simpler tax structure for small business, less expensive workers’ compensation and unemployment insurance, and reducing excessive regulations against employers.

“I am humbled and honored to receive this award,” Angel said. “Small business is the engine of our state’s economy, providing jobs which lead to a better quality of life in Washington. Those that have survived the recession do not need government to further inflict more burdensome costs and regulations that make it difficult to succeed. Instead, government needs to foster productivity so that businesses in the private sector can not only survive, but thrive.

“With more than 288,000 people in our state unemployed and looking for jobs,” she said, “it’s important to support our small businesses so they can grow and help get Washington working again.”

NFIB is the state’s leading small-business association, with more than 8,000 members in Washington.

Bremerton sewer pipeline replacement project will close 11th Street

The KPBJ — Mon, 14 May 2012 07:05:00 +0000

Road closures will be required in Bremerton over the next couple months during a $2.35 million sewer pipeline replacement project in the area of 11th Street and Naval Avenue.

A section of 30-inch diameter ductile iron pipeline in the Crosstown sewer, which conveys all the sewage from East Bremerton and much of West Bremerton to the city’s wastewater treatment plant, needs to be replaced due to corrosion. The section from the intersection of 13th Street and Naval Avenue to the Eighth Street/Montgomery Avenue intersection (approximately 3,000 feet) failed on three occasions between 2007 and 2010 during heavy rainfall, resulting in overflow of sewage onto the streets.

The Crosstown Pipeline Upper Reach Repair project will install 2,200 feet of new 36-inch pipe on 11th Street and Montgomery Avenue. The project will rehabilitate 800 feet of pipe on Naval Avenue along with installation of a new 18-inch sewer line.

The 18-inch sewer main will be installed on Naval Avenue between 11th and 13th streets starting on May 15. During the installation, Naval Avenue will be closed to thru traffic and reopened approximately June 4. A 36-inch diameter sewer pipe will be delivered to the site during the first week of June.

Montgomery Avenue between Ninth and 11th streeets will be closed to thru traffic June 5-10.

The major traffic revision during the project will be the closure of 11th Street between Montgomery and Naval avenues starting June 11 until Aug. 3. The intersection of 11th and Naval will remain open but the detour will be on Sixth Street. City staff will be installing new controllers and hardware at traffic signals along Sixth Street to improve traffic flow during construction.

Stan Palmer Construction was awarded the project for $2,356,617.

Consumer watchdog weighs limits on mortgage fees

Daniel Wagner — Mon, 14 May 2012 07:05:00 +0000

WASHINGTON — The government’s consumer finance watchdog is weighing an overhaul of the fees consumers pay to obtain mortgages.

Regulators might ban origination fees that vary with the size of the loan, known as “origination points.” They also might limit the use of “discount points” that are supposed to result in lower interest rates, the Consumer Financial Protection Bureau said.

The changes would help consumers understand the fees they are paying and guarantee that the fees provide any promised discounts, the agency said.

“Mortgages today often come with so many different types of fees and points that it can be hard for consumers to compare offers,” CFPB director Richard Cordray said in a statement. “We want to bring greater transparency to the market so consumers can clearly see their options and choose the loan that is right for them.”

Banning origination points would discourage lenders from pushing consumers to take out bigger loans merely to generate higher fees. Flat origination fees still would be allowed.

Consumers pay discount points when a loan is offered, supposedly in exchange for a lower rate on the mortgage. The points can benefit consumers by allowing them to reduce their monthly loan payments, the CFPB said.

However, some mortgage companies have included discount points in every loan they offer. When that happens, the points amount to an extra fee. The CFPB wants to make sure the points result in an actual discount.

To accomplish that, the agency is considering a rule that would require any discount point to carry with it a certain minimum reduction of the interest rate.

The agency also might force lenders to offer an option without discount points, so that consumers can see clearly how the fee affects their monthly payments. It also would allow easier comparisons between loans offered by different companies.

The CFPB is overhauling mortgage rules as part of the financial overhaul law passed in 2010. The agency was created under a separate section of that law.

Any proposed rule will be reviewed next by the agency’s Small Business Review Panel. After the panel weighs in on how the rule would affect small businesses, the agency will publish a formal proposal to enact the rule later this summer. The rule is expected to be finalized in January.

Google, Facebook will both be front and center in 'social search'

The KPBJ — Mon, 14 May 2012 07:05:00 +0000

London — Findings from a survey undertaken by independent digital marketing agency Greenlight indicate that Google+ might be more successful than most have initially speculated, and that Facebook could potentially capture close to a quarter of the search market globally were it to launch a search engine of its own tomorrow. This market share would make Facebook the second-most utilized search engine in every major market except for China, Japan and Russia, where it would occupy an uncontested third place.

Greenlight’s global Search & Social Survey (2011-2012) asked 500 people — students, law enforcement professionals, medical staff, accountants, lawyers, the unemployed, and everyone in between — how they engage with online advertising, search engines and social networks, in order to glean insight into how consumers engage with marketers today, and formulate views on what the future might hold.

Facebook could capture around 22% of the global search market

Greenlight’s research revealed 5 percent would ‘definitely’ use a future Facebook search engine if the firm were to launch one to rival Google’s. The other extreme, those categorically saying that they simply would not use a future Facebook search engine, totalled 26 percent of all respondents. Those responding in the ‘Definitely’ and ‘Probably’ camps totalled 17 percent. Those responding ‘No’ and ‘Probably not’ totaled 48 percent.

Fig 1 - If Facebook incorporated its own search engine, would you use it over your preferred search engine?

“These stats therefore suggest Facebook could capture around 22 percent of the global search market by simply launching its own search engine tomorrow morning (the ‘Definitely’, ‘Probably’, and half of the ‘Don’t know’ respondents combined),” says Andreas Pouros, chief operating officer at Greenlight. “It wouldn’t need to be a spectacular engine either, just well integrated into the Facebook experience and generally competent.

“What’s more, the results also suggest Facebook could increase that projected market share to a maximum of 50 percent within a few years by converting the least overtly loyal Google users over to them. However, that increase would need to come from the 27 percent of respondents who replied ‘Maybe, but only if it was better than Google and Bing.’”

(Facebook already integrates Bing into its search function, but it is a buried option in the navigational sidebar post query, so this really does not constitute its own search engine by any real definition).

23% of Google users have been +1’ing listings in Google’s search result

On the flip side, Greenlight found that Google’s own social endeavous with Google+ might be more successful than most have initially speculated. For instance, 23 percent of Google users have been +1’ing listings in Google’s search results, giving Google lots of data about what people like.

When compared to the 35 percent of users that Greenlight’s survey found routinely ‘like’ a brand or company on Facebook, then it is not that significantly more than Google’s social signal collection, particularly as 28 percent of respondents said they had no idea what ‘+1’ actually meant, which ,says Greenlight, will invariably decrease rapidly over time.

Fig 2 - How regularly do you’+1’ something in Google’s search results

Greenlight’s research essentially shows that Facebook will be front and center in ‘social search’ and so it won’t be enough for websites to simply be relevant, they also need to demonstrate qualities that attract social validation and promotion.

Pouros concludes that “Brands and e-retailers need to be encouraging +1’s in Google, as it isn’t something that might be important in the future — it already is! It affects natural search rankings and will have an increasing impact over time across every Google product they utilize — AdWords, price comparison, Shopping, YouTube, etc., and Facebook could be a major search engine overnight. As such, a brand’s performance on Facebook today (likes, visits, etc.) will likely have a decisive impact on how well exposed it is on that new search engine.”

Retail Federation welcomes national strategy to spur international travel and tourism

Stephen E. Schatz — Mon, 14 May 2012 07:05:00 +0000

NRF Welcomes National Strategy to Spur International Travel and Tourism

WASHINGTON — The National Retail Federation commends the Obama administration for announcing a national strategy to promote international travel and tourism in the United States aimed at boosting America’s economy and creating jobs.

“Encouraging foreign visitors to the United States is one of the easiest ways to boost our economy,” NRF President and CEO Matthew Shay said. “By streamlining our visa application and review process we can increase international travel, tourism and trade, especially among emerging economies and markets like Brazil, China and India, and welcome more shoppers from our shores to our stores.”

The National Travel and Tourism Strategy unveiled today calls on federal departments and agencies to coordinate efforts to encourage more domestic and international travel with the goal of welcoming 100 million international visitors to the United States by the end of 2021.

NRF has rallied the retail industry behind several legislative initiatives aimed at reducing visa review and approval times, and has taken a leadership role in the Discover America Partnership, a coalition whose sole focus is improving the visa system. Reforming and streamlining our antiquated international travel and tourism rules to spur further foreign tourism is a key component of NRF’s Retail Means Jobs campaign.

A U.S. Travel Association study found that the reduction of visa wait times to 10 days could create 1.3 million jobs and add more than $850 billion to the economy by 2020.

“America can’t compete in a global economy if we can’t open our doors to the world’s customers,” Shay said. “The retail industry is ready to welcome more international shoppers into our stores where they will help boost our economy, our industry and spur job creation and growth.”

Subscribers switching to no-contract phone plans

Peter Svensson — Mon, 14 May 2012 07:05:00 +0000

U.S. consumers have had their fill of expensive, contract-based phone plans.

Figures from T-Mobile USA released May 10, added to earlier reports from other companies, indicate that the U.S. wireless industry lost subscribers from contract-based plans for the first time in the first quarter of 2012. Contract-based plans are the most lucrative ones for phone companies. The industry default over the past several decades, they account for the vast majority of revenue at the big phone companies.

The seven largest U.S. phone companies, representing more than 95 percent of the market, lost a combined 52,000 subscribers from contract-based plans in the January to March period, according to a tally by The Associated Press. The companies have a combined 220 million devices on such plans, accounting for about two-thirds of the total number of devices.

Since nearly every adult, and many children and teenagers, already have phones, there’s little room for growth anymore. But subscribers are also flowing to cheaper, no-contract plans, which showed an increase of at least 2 million. That figure, however, is down from more than 5 million in the same quarter a year ago.

The industry is also adding millions of nonphone devices, like smart energy meters. These so-called “machine-to-machine” connections usually carry very low monthly fees, on the order of a few dollars per month.

For example, AT&T subscribers on contract-based plans pay an average of $64.46 per month, while other AT&T customers pay an average of $11.52 per month.

T-Mobile’s report came out on the last day of the U.S. cellphone industry’s annual trade show in New Orleans. At the show, companies talked about various ways of boosting their business outside phones.

For instance, AT&T launched a home security and automation business, and the head of its wireless business, Ralph de la Vega, said the company is getting closer to launching family data plans, which would allow the sharing of one “bucket” of data among various devices and family members.

That could encourage people who already have a smartphone to get a tablet with data service as well. Verizon Wireless has already announced that it is introducing such plans this summer.

The first quarter is a seasonally weak one for contract-based plans, and the industry is likely to show some subscriber additions for the whole of the year. But the gains will be spread unevenly over the phone companies.

For the last year and a half, the four nationwide phone companies have added or lost subscribers in order of size: Verizon Wireless, the largest, has gained the most, followed by AT&T. Sprint Nextel, No. 3 in size, has mostly lost subscribers, while No. 4 T-Mobile has done so consistently. That poses a conundrum for regulators who want to preserve vibrant competition in the industry.

AT&T launched a major bid to consolidate the industry last year by striking a deal to buy Bellevue-based T-Mobile for $39 billion, but the project was scuttled by regulators who said it would reduce competition and raise prices for consumers.

Bloomberg News, citing anonymous sources, reported May 9 that T-Mobile was in talks to buy MetroPCS, the fifth-largest cellphone company in the U.S. However, the combination would be difficult to manage, since the companies have incompatible networks.

Branding could pose a challenge, too: T-Mobile wants to appeal to business customers, while MetroPCS sells almost exclusively to low-income, urban households. Acquisition talk surrounding MetroPCS surfaces from time to time, but no deals have resulted.

The AP’s tally of subscribers excludes some contract-based machine-to-machine connections reported by T-Mobile. The company also added 435,000 prepaying subscribers of all kinds in the quarter, which was the best result in more than two years for that category. T-Mobile credits its new prepaid monthly plans with fast “4G” data service for the increase.

Free seminar will discuss how life insurance can help in planning charitable giving

The KPBJ — Fri, 11 May 2012 07:05:00 +0000

Two financial planners will present a free educational seminar May 15 on how life insurance can help you build and leave the legacy you desire.

The presenters at the charitable planning seminar hosted by the Harrison Medical Center Foundation will be Homer Smith of Hearthstone Wealth Management and Paul Samuels of Ameriprise Financial Services, Inc. The discussion will include how to control how your estate is distributed; give to loved ones or charities important to you; help reduce taxes and leave a larger legacy.

The seminar will be from 2-3:30 p.m. in the Orchid Room at Harrison Medical Center in Silverdale, 1800 NW Myhre Road. Light refreshments will be provided.

Space is limited; registration is available online at http://www.harrisonmedical.org/home/calendar/8353 or by email to wendy [dot] kile [at] harrisonmedical [dot] org.

Google releases 'Spy-Fi' report after FOIA request to FCC

The KPBJ — Fri, 11 May 2012 07:05:00 +0000

An Article by Electronic Privacy Information Center

Shortly after the Electronic Privacy Information Center (EPIC) filed a Freedom of Information Act request with the Federal Communications Commission for the unredacted version of the FCC’s report on Google Spy-Fi, Google has released a mostly unredacted version of the report.

In May 2007, as part of Google’s initial collection of Street View data, Google deployed special vehicles, equipped with digital cameras and other devices, to capture images in designated locations in 30 countries worldwide. Using hidden Internet receivers, Google “Street View vehicles” also collected a vast amount of data from users of private home and business Wi-Fi networks.

Google simultaneously collected MAC addresses (the unique device ID for Wi-Fi hotspots), network SSIDs (user-assigned network ID names) tied to location information for private wireless networks, and Wi-Fi “payload” data, which included emails, passwords, usernames and website URLs.

On April 13, the FCC released a highly redacted version of this report, which the agency believed concluded the investigation into the Google Spy-Fi matter. EPIC almost immediately filed a FOIA request, and Google released the unredacted document on April 28.

The Federal Communications Commission’s original version of the report withheld many relevant details about Google’s interception of Wi-Fi data. The report’s new, unredacted version belies Google’s prior statements that a “rogue engineer” was responsible for the payload data collection. Instead, it indicates that Google intentionally designed the Street View code to intercept payload data for business purposes. The report also reveals that many supervisors and engineers within Google reviewed the code and the design documents associated with the project, and disregarded potential privacy issues even when flagged by engineers.

EPIC continues to press for more details regarding Google’s interception of Wi-Fi data by seeking several categories of related documents from the FCC, as well as documents related to the Department of Justice’s investigation of Google Street View.

Kitsap County to present draft environmental documents on UGA remand

The KPBJ — Fri, 11 May 2012 07:05:00 +0000

Kitsap County will host two open houses to present the findings of the Draft Supplemental Environmental Impact Statement (SEIS) and Capital Facilities Plan relating to the recent Central Growth Management Hearings Board decision regarding the 2006 Comprehensive Plan.

In September 2011, the Hearings Board (Case No. 07-3-0019c) rendered a decision that Kitsap County must re-examine its Urban Growth Areas (UGAs) expanded during the 2006 Comprehensive Plan update process.

This decision followed a five-year legal challenge that ultimately went to the Court of Appeals and then remanded back to the Hearings Board for decision. This re-examination will require the reduction of many Urban Growth Areas to address these state-required issues.

The draft SEIS and Capital Facilities Plan contain information on potential impacts (transportation, wastewater, environmental, etc.) of three UGA alternatives. These UGA alternatives look at accommodating future population growth through different zoning and UGA boundary scenarios. The alternatives apply to the following unincorporated UGAs:

Kingston
Silverdale
Central Kitsap (south of Waaga Way and north of Riddell Road)
East Bremerton
West Bremerton
Gorst
McCormick Woods/ULID#6
Port Orchard/South Kitsap

The deadline for the county to revise its Comprehensive Plan consistent with the remand order is August 31. The two upcoming open houses provide an opportunity for residents to hear about the Hearings Board order, gather information about proposed UGA alternatives and learn about upcoming public comment opportunities.

The workshops will be May 15 from 6-8 p.m. at the Eagles Nest at the Kitsap County Fairgrounds in Bremerton, and May 17 from 6-8 p.m. in Commissioners Chambers at the Kitsap County Administration Building, 619 Division St. in Port Orchard.

“The release of the Draft SEIS and Capital Facilities Plan is a major milestone towards the county’s efforts to resolve the Hearings Board Order by the August deadline,” according to Eric Baker, special projects manager.

“Many properties affected by this order may see zoning changes from urban to rural or vice versa. It is important for residents to provide testimony whether verbal or in writing about these proposed alternatives and how it affects them,” Baker added.

For more information, please visit the project website.

Why Gas Prices Are Rising

Lindsey Blomberg — Fri, 11 May 2012 07:05:00 +0000

Hint: It's All About the Exports

An Article by E — The Environmental Magazine

In 2011, the U.S. exported more petroleum products than it imported for the first time in over six decades, according to the Petroleum Supply Monthly February report by the U.S Energy Information Administration (EIA). Petroleum products were ranked second in value, behind vehicles, of all U.S. exports during 2011 at $111.1 billion — up 60 percent from 2010 - according to U.S. Department of Commerce trade data.

“We are a net exporter now,” says Tom Kloza, chief oil analyst for the Oil Price Information Service. “If not for high prices [of gasoline] in the U.S., it would be something to cheer about in terms of helping the deficit.”

U.S. oil exports have increased substantially over the past decade-from approximately 425 million barrels in 2005 to over 858 million barrels in 2010. Over one billion barrels of crude oil were exported in 2011 according to the EIA, with total monthly exports topping 3 million barrels per day for the first time in the nation’s history. As of early March, 2012 has seen an average of 3 million barrels exported per day. Strong global demand for diesel in Asia, Europe, Mexico and elsewhere has motivated exports as diesel and other distillate fuels have a higher profit margin for U.S. refiners than gasoline.

Crude oil remains the biggest U.S. import, valued at $331.6 billion, up 32 percent from 2010. Record high gas prices are projected for 2012, driving up costs at the pump and the cost of flying.

“Rising jet fuel costs put significant cost pressure on the airline industry,” Steve Lott, vice president of communications at Airlines for America told CBS. “Regarding fuel, it was the airline industry’s largest expense in 2011 … a record high of $3 per gallon for the year. It is even higher for the first two months of 2012.”

Report: Tax credits could help small businesses provide health coverage for workers

The KPBJ — Thu, 10 May 2012 07:05:00 +0000

Affordable Care Act program helps small businesses offer benefits and compete against larger companies for best talent

WASHINGTON, D.C. - More than 19 million U.S. workers are employed by the 3.2 million small businesses eligible for $15 billion in tax credits in the federal health care reform, according to a new report released today. The tax credit helps small businesses pay for health coverage for their employees. A major obstacle to coverage, the report notes, is that many small business owners are unaware of these tax credits because of the noisy — and often misleading — debate over health care reform.

The tax credit program is outlined in a report released today by Small Business Majority and the consumer group Families USA. The report contains detailed information on the number of eligible employers and employees in each state whom the program could benefit. It also includes the total dollar amount of tax credits that could be provided to businesses in each state.

In general, businesses that offer health coverage and employ fewer than 25 full-time middle-class workers are now eligible to receive a tax credit of up to 35 percent of the cost of premiums for their workers. In 2014, the size of the credit will increase to cover up to half of the cost of health insurance provided to workers.

The tax credit was included in the Affordable Care Act to help the smallest businesses offer coverage — those who traditionally have the most difficult time doing so. In 2011, only 71 percent of small businesses with 10 to 24 workers offered coverage to their workers; among small businesses with fewer than 10 workers, only 48 percent offered coverage. By contrast, 99 percent of businesses with 200 or more workers offered coverage.

The following are among the key findings of the report, titled “Good Business Sense,” about small business employers. (The report itself also contains state-specific data.)

More than 3.2 million small businesses (70.1 percent of businesses with fewer than 25 workers) are eligible for tax credits to help with the cost of health insurance coverage for their workers for the 2011 tax year.
More than 1.3 million small businesses are eligible to receive the maximum tax credit when they file their 2011 taxes.
More than two in five (40.3 percent) small businesses eligible for a tax credit are eligible to receive the maximum tax credit when they file their 2011 taxes.

The following are key report findings about U.S. workers. (The report itself also contains state-specific data.)

Nearly 19.3 million Americans are employed by a small business that is eligible for a tax credit for 2011.
Of these workers, nearly 5.8 million are employed by a small business that is eligible for the maximum credit.
The total value of tax credits available to eligible small businesses for 2011 is more than $15.4 billion, an average of $800 per worker.
The total value of tax credits available to small businesses eligible for the maximum credit is more than $6.1 billion, an average of $1,066 per worker.

The report also contains state-specific-data by race and ethnicity on the number of workers who can benefit from the tax credits. As the report makes clear, however, workers and employers can only begin to benefit when they become aware of the tax credit program.

Among small businesses with low-wage workers, the likelihood of offering coverage is even lower. As a result, lower-wage workers employed by small businesses are much more likely to be uninsured than other working Americans.

“We know from our opinion polling that small businesses want to offer their employees coverage but many of them can’t afford it. The tax credits will make it easier for small businesses to offer coverage, which makes their businesses more competitive and boosts their ability to create jobs and drive economic growth,” said John Arensmeyer, CEO of Small Business Majority.

“Small businesses seeking to provide health coverage for their employees have traditionally faced health insurance premiums that are significantly higher than those for large businesses,” said Ron Pollack, executive director of Families USA. These high premiums are due to higher administrative costs and premiums per employee in the small group insurance market, he said.

“The tax credit program, a provision of the Affordable Care Act, now makes it possible for small business to compete with large employers,” Pollack said. “This is great news for these small companies, who can now offer health benefits when competing for talent in the job market. Just as importantly, it’s great for workers and their families who will now have access to affordable health care.”

“We also know from our polling that the majority of small businesses don’t know these credits exist to help them,” Arensmeyer said. “The best way to serve small business owners is to educate them about this provision so they can participate in and benefit from it.”

Families USA and Small Business Majority contracted with The Lewin Group to develop the estimates used in the report. The full report, “Good Business Sense: The Small Business Health Care Tax Credit in the Affordable Care Act,” is available at http://familiesusa2.org/assets/pdfs/health-reform/Small-Business-Health-….

Kitsap Mental Health Services among first to get innovation award funds

The KPBJ — Thu, 10 May 2012 07:05:00 +0000

Kitsap Mental Health Services is among the first organizations receiving federal Health Care Innovation awards. Made possible by the health care reform law — the Affordable Care Act — the awards will support 26 innovative projects nationwide that will save money, deliver high-quality medical care and enhance the health care workforce. The preliminary recipients of awards totaling $122.6 million expect to reduce health spending by $254 million over the next three years.

“We can’t wait to support innovative projects that will save money and make our health care system stronger,” said Health and Human Services Secretary Kathleen Sebelius. “It’s yet another way we are supporting local communities now in their efforts to provide better care and lower cost.”

The new projects include collaborations of leading hospitals, doctors, nurses, pharmacists, technology innovators, community-based organizations and patients’ advocacy groups, among others, located in urban and rural areas that will begin work this year to address health care issues in local communities. This initiative allows applicants to come up with their best ideas to test how to quickly and efficiently improve the quality and affordability of health care.

Kitsap Mental Health Services is receiving a $1.85 million award to integrate care for 1,000 severely mentally ill or severely emotionally disturbed adults and children receiving KMHS services, many of them Medicare, Medicaid and/or CHIP beneficiaries. Research shows that health care for the severely mentally ill and severely emotionally disturbed population is often fragmented, ineffective and cost-inefficient, resulting in poor health and premature death. By providing integrated behavioral health management and preventive care through primary care physicians, other care providers and social service organizations, the project will improve client health, reduce avoidable emergency room visits and hospitalizations, and save an estimated $5.8 million.

Over the three-year period, the KMHS project — Race to Health: Coordination, Integration, and Innovations in Care — will train an estimated 130 health care workers, generate an estimated 12.5 new jobs and create a health care workforce cross-trained in behavioral and physical health disciplines.

Preliminary award recipients were chosen not only for their innovative solutions to the health care challenges facing their communities, but also for their focus on creating a well-trained health care workforce equipped to meet the need for new jobs in the 21st-century health system. The Bureau of Labor Statistics projects the health care and social assistance sector will gain the most jobs between now and 2020.

“We are thrilled to be helping create a sustainable health care system for the future, shifting the standard of care to treat the whole person and focus on integrating and coordinating care for the people we serve,” KMHS director Joe Roszak said in a news release announcing the grant.

For more information on the, go to innovation.cms.gov/initiatives/innovation-awards/project-profiles.html

To learn more about other innovative models being tested by the CMS Innovation Center, visit www.innovation.cms.gov.

Kitsap Mental Health Services is the primary provider of mental health services for Kitsap County, offering a continuum of care to children, adults and older adults, and their families. For more information, contact KMHS at 360-415-5801.

2012 Candidate filing period begins May 14 in Kitsap County

The KPBJ — Thu, 10 May 2012 07:05:00 +0000

Candidate filing week marks the unofficial start to the 2012 election season. The Kitsap County Auditor — Election Division will accept filings from 8 a.m. to 5 p.m., May 14-18. Candidates may file in person at the Elections Division office, 619 Division St. in Port Orchard.

Candidates for the following offices must file with the Kitsap County Auditor:

Legislative District 23 State Senator
Legislative District 23 Representative, Positions 1 and 2
Kitsap County Commissioner, Positions 1 and 2
Superior Court Judge, Courts 1 through 8
Public Utility District Commissioner District 3

“Running for office is a major undertaking,” says Kitsap County Auditor Walter E. Washington.

“We have many informational resources available to help candidates throughout this process including our Facebook and Twitter pages.”

All filing fees for salaried positions are due at the time of filing and are non-refundable. Filing fees are not charged for non-salaried positions.

Candidates may also submit their filings by mail. Filing fees for candidates who file by mail are due by 5 p.m. May 18.

Prospective candidates are encouraged to review the 2012 Candidate and Campaign Guidelines handbook available at the Auditor’s Office and online at www.kitsapgov.com/aud/elections.

The Secretary of State provides a list of other offices open for filing through their office and throughout the state, available at sos.wa.gov.

Construction to begin on Bainbridge Island's Senior Community Center

The KPBJ — Wed, 09 May 2012 07:05:00 +0000

Construction on the Senior Community Center remodel project on Bainbridge Island is scheduled to begin May 14. This project consists of demolition of the existing west wing structure followed by reconstruction of a new, 2700 square-foot building.

The project is funded jointly by the city and the Bainbridge Island Senior Community Center. Bainbridge Island-based architect Peter O’Connor and Associates designed the project, which will be built by Pacific Coast Development, also of Bainbridge Island.

“We are delighted to get this project underway,” said Public Works Director Lance Newkirk. “This is a true collaboration of the efforts of the Senior Community Center volunteers, the Bainbridge Island Metropolitan Park and Recreation District, and City Council and staff.”

Don Fisher, Senior Community Center president, added, “This is a win-win for both the City and the Senior Center, and we are looking forward to a facility that has been designed to accommodate our members and their activities.”

The new building is expected to be completed this fall. The city and the Senior Center have signed a 40-year lease agreement that becomes effective upon completion of construction. The new structure will house the Thrift Shop and Senior Center administrative offices, as well as continuing the many programs that provide services to the island’s seniors. During construction, citizens can locate the Senior Center administrative offices on the east side of the building, or they may contact senior programs coordinator Jane Allan with any program questions at 206-842-1616.

For more information on the project, visit the city’s website: www.bainbridgewa.gov.

Kitsap Mall offers new mobile app for shoppers

The KPBJ — Wed, 09 May 2012 07:05:00 +0000

Kitsap Mall has announced the launch of a mobile app, which offers shoppers and retailers many new features, such as:

Mall directory — Browse by category or view stores alphabetically with detailed info, map location and phone number for every retailer or dining establishment. Even get, with a quick glance, if the store currently has a sale.

Interactive map — Search for and display the location of individual stores and closest parking, as well as restrooms, escalators, ATMs and other mall amenities.

Sales and events — View a detailed listing of sales and events going on at the center and even create a favorites list to help plan your shopping trip.

Where did I park? — Save your parking location by using your phone GPS, taking a photo, recording a voice note or typing a text reminder to easily locate your vehicle.

Shopping list — Get organized by creating a custom shopping list; select the retailers you’d like to visit and locate them on the mall map with one touch. You can even email your shopping list for others to view.

Center information — View shopping hours, center address and phone number, guest services information, weather forecast and more.

Gift card — Purchase mall gift cards by American Express or check your balance at any time.

Shoppers can simply download the app. Visit the Apple App Store, Android Market or Blackberry App World from a smartphone and enter Kitsap Mall into the search field. Find the official app, tap and download.

Guests are encouraged to get the most up-to-date information by visiting our website at www.ShopKitsapMall.com or friend us on Facebook and follow us on Twitter.

Rates going up for Puget Sound Energy electric and natural gas customers

The KPBJ — Wed, 09 May 2012 07:05:00 +0000

OLYMPIA — Electricity bills for Puget Sound Energy (PSE) residential customers will increase by 3.2 percent while natural gas bills will rise by 1.3 percent as a result of action taken by state regulators. New rates go into effect May 14.

The Washington Utilities and Transportation Commission (UTC) is allowing PSE to raise electric rates by $63.3 million a year and $13.4 million for natural gas rates, substantially less than the $161 million and $32 million, respectively, the utility originally requested last June. The last PSE rate increase approved by the commission was two years ago.

The average PSE residential electric customer using 1,000 kilowatt hours-per-month will see their electric bill increase by $3.30, for a bill total of $102.56. The typical natural gas customer using 68 therms a month would pay $1.08 more, for a revised bill of $86.09.

“The commission’s responsibility in general rate case proceedings is to determine an appropriate balance between the needs of the public to have safe and reliable electric and natural gas services at reasonable rates, and the financial ability of the utility to provide such services on an ongoing basis,” said the three-member commission in their written decision.

The basic monthly service charge of $7.25 - paid by all residential customers regardless of the amount of electricity used — will increase by about 23 cents to $7.48. The basic service charge for residential natural gas customers will increase 50 cents a month, from $10 to $10.50.

Beginning Jan. 1, PSE electric customers will receive an annual bill credit for their share of the proceeds and benefits from the utility’s sale of surplus Renewable Energy Credits, or RECs. Commonly called green tags, RECs are intangible assets that represent the right to claim the environmental attributes of a renewable generation project, such as a wind farm or the Cedar Hills Regional Landfill. The average residential electric customer will receive a bill credit of about $8.28 a year.

Additional revenues from REC sales will be included annually. A utility is required by state law to generate a certain percentage of its electrical output using renewable energy. If the company has excess generation from renewable resources it can sell the resulting RECs.

“By having the REC revenue returned to ratepayers as a bill credit, it will be more apparent to customers that they derive direct benefits from PSE’s acquisition of renewable generation resources in advance of the time they are needed to satisfy the company’s obligations to meet the state’s Renewable Portfolio Standards,” said the commissioners.

Among the major differences between the company’s request and the UTC order are significant reductions for power costs due substantially to the lower cost of natural gas, and a reduction in the utility’s allowed return on its capital investments. The commission declared prudent PSEs decision to build the Lower Snake River Wind Project in Garfield County, which went into service Feb. 29. That project, designed to meet PSE’s legal obligation to serve a portion of its load with renewable energy, cost $770 million and has a generating capacity of 343 megawatts.

The commission approved a 17-cent-a-month rise in residential electric customer contributions to the company’s low-income bill assistance program, from 59 to 76 cents a month beginning May 14. The UTC approved about a 30 percent increase in the contribution to the company’s low-income bill assistance program.

The UTC rejected PSE’s request to establish a Conservation Savings Adjustment, a proposal to recover revenue losses the utility attributes to its conservation programs.

The commission received 778 public comments on PSE’s rate-increase proposal - 733 opposed, three in favor and 42 undecided.

Bellevue-based Puget Sound Energy serves 1.1 million electric customers and 756,765 natural gas customers in parts of Snohomish, King, Pierce, Kitsap, Lewis, Thurston and Kittitas counties.

The UTC is the state agency in charge of regulating the private, investor-owned electric companies in Washington. It is the commission’s responsibility to ensure regulated companies provide safe and reliable service to customers at reasonable rates, while allowing them the opportunity to earn a fair profit.

Study: Retail workers' turnover offers some hope

Anne D'Innocenzio — Wed, 09 May 2012 07:05:00 +0000

A management consulting firm is reporting that employee turnover is rising at 54 retail chains it surveyed — particularly in e-commerce — and it says that offers hope for the overall job market.

Hay Group last month surveyed a slice of the industry that includes OfficeMax Inc., Petco Animal Supplies Inc., Ross Stores Inc., Limited Brands Inc. and Zale Corp.

Turnover in those retailers’ e-commerce divisions climbed to 18 percent in April, compared with 10 percent in October, the firm said Monday. In distribution centers, Hay Group found a turnover rate for hourly workers of 22 percent this spring, compared with 17 percent last fall.

The rate describes the share of workers who left their positions voluntarily over a 12-month period. Data collected last month covered the year ending in April. Hay didn’t track retail jobs in e-commerce or distribution centers separately before last year.

The companies Hay Group surveyed had a total of 4.4 million workers, about 30 percent of the U.S. retail workforce. About 14.5 million people work in retail in the U.S., excluding restaurants but including gas stations and auto maintenance, according to the National Retail Federation.

Economists study turnover rates as an indicator of the job market’s health. If workers feel confident about the job market, they’re more likely to leave and find opportunities elsewhere.

The rising turnover in e-commerce comes as online sales are growing twice as fast as revenue at brick and mortar stores. Online revenue now accounts for 8 percent of retail sales overall, according to Forrester Research.

“We’re starting to see a ripple effect on employee turnover fueled by the growth of e-commerce,” said Maryam Morse, senior principal and national practice leader at Hay Group. “Turnover for part-time store and distribution center workers is starting to return to business as usual.”

Among hourly part-time workers, the rate was 67 percent in late April, up from 51 percent last October, and compared with about 90 percent before the recession, Hay Group said.

Among all corporate jobs, employee turnover also is returning to pre-recession levels — which were in the mid-teens — though it slipped to 12 percent in April from 14 percent in October. During the recession, overall employee turnover was 8 percent.

But the rate fell for full-time hourly workers, to 24 percent last month from 27 percent last fall. That’s about the same as it was in the thick of the recession. Before the recession, the turnover rate for full-time hourly workers was 50 percent.

Hay Group, a 60-year-old management consulting company, works in industries from retail to health care.

Carmichael retiring as president, CEO of Kitsap Bank

Tim Kelly — Tue, 08 May 2012 21:21:01 +0000

The bank he’s retiring from is a whole lot bigger than it was when Jim Carmichael came to Port Orchard 35 years ago, joining the executive management of Kitsap County Bank in 1977 when it had $47 million in assets and four offices.

Carmichael will retire as president and CEO at the end of June, having shepherded Kitsap Bank’s steady growth into an institution that has more than $900 million in assets and operates 21 locations across five counties in Western Washington.

“I have experienced both triumphs and great challenges during my tenure,” Carmichael said in a news release announcing his retirement. “We have achieved record growth, numerous mergers and acquisitions, assumed a failed bank, raised capital for the first time in over 50 years, and successfully navigated through the worst economic downturn since the Great Depression.

“I feel very pleased and satisfied that I am leaving the bank in excellent condition and in very capable hands. Now it’s time for me to move on.”

Carmichael, 69, began his career in finance in 1965 when he was hired as a bank examiner by the FDIC after graduating from the University of Idaho. But he said the recent years weathering the recession and the housing market collapse are the toughest economic times he’s ever seen.

Kitsap Bank, which acquired the assets of the failed Westsound Bank in 2009, got through the worst of it by the early part of 2010, he said, “and we’ve had a couple pretty good years since then.”

The bank is coming off its best year since 2008, with a reported earnings increase of 260 percent in 2011, and first-quarter earnings this year are up 18 percent.

When Carmichael retires, Tony George, the bank’s chief financial officer, will assume the role of President/Chief Operating Officer. Chief credit officer Steve Politakis will become Chief Executive Officer. Both have been with Kitsap Bank for more than a decade.

“The master plan was that there would be continuity in our executive management,” Carmichael said, just as there was when he succeeded Don Rickett as the bank’s president and CEO in 1985.

Carmichael, who grew up in the Seattle area and played baseball at Skagit Valley Community College and the University of Idaho, is active in the local business community. A longtime Rotary member in Port Orchard, he is on the board of directors for the Washington Bankers Association and YMCA of Kitsap and Pierce Counties, and he is past president of the Kitsap Economic Development Alliance.

A tale of 2 US employment surveys

The KPBJ — Tue, 08 May 2012 07:05:00 +0000

An article by the Associated Press

The U.S. economy added just 115,000 jobs in April, below March’s gain of 154,000 and the fewest in six months. Yet the unemployment rate fell.

How did the rate fall despite such a small job gain? Because the government does one survey to learn how many jobs were created and another survey to determine the unemployment rate. Those surveys can produce results that sometimes seem to conflict.

One is called the payroll survey. It asks mostly large companies and government agencies how many people they employed during the month.

This survey produces the number of jobs gained or lost. In April, the payroll survey showed that companies added 130,000 jobs, and federal, state and local governments cut 15,000.

The other is the household survey. Government workers ask whether the adults in a household have a job. Those who don’t are asked whether they’re looking for one. If they are, they’re considered unemployed. If they aren’t, they’re not considered part of the work force and aren’t counted as unemployed. The household survey produces each month’s unemployment rate.

In April, the household survey showed that the number of people in the work force fell by 342,000. Most of them were unemployed and stopped looking for a job. That lowered the unemployment rate slightly, from 8.2 percent to 8.1 percent.

The percentage of those 16 and over in the work force fell to 63.6 percent, the lowest in more than 30 years.

Unlike the payroll survey, the household survey captures farm workers, the self-employed and people who work for new companies. It also does a better job capturing hiring by small businesses.

But the household survey is more volatile from month to month. The Labor Department surveys just 60,000 households, a small fraction of the more than 100 million U.S. households. The household survey showed that the number of people who say they have a job surged by 631,000 in January and 428,000 in February.

By contrast, the payroll survey seeks information from 140,000 companies and government agencies — and they employ roughly one-third of non-farm employees. The employers send forms to the Labor Department noting how many people they employ. They also provide wages, hours and other details.

Most Americans focus more on the unemployment rate, which comes from the household survey. But economists generally prefer the jobs figure from the payroll survey.

Economists note that the surveys tend to even out over time. In the past year, the payroll surveys have shown that employers added roughly 1.8 million jobs. The household surveys have shown that close to 2.2 million more people said they found work.

Costco moves to increase its share of online retail

Melissa Allison — Tue, 08 May 2012 07:05:00 +0000

It’s a curiosity of how the Internet works that a shopper using a search engine to find a flat-screen TV probably will not turn up Costco Wholesale, a major television vendor and the country’s largest retailer after Wal-Mart.

Costco.com is not built to attract online hits, but it does decent business — about $2 billion in sales a year. It does so by offering everything from caskets to an 18.88-carat diamond, while attracting customers even more affluent than the average shopper at its warehouses.

Now the chain based in Issaquah, less than 20 miles from the offices of online Bigfoot Amazon.com, wants to up its game online — and experts say it’s about time.

Costco.com hopes to launch mobile apps for Apple and Android this month, grow internationally in the coming year and improve its ranking in online searches.

“The stakes are very high,” said Vladimir Zwass, a computer science professor at Fairleigh Dickinson University in Madison, N.J., and editor-in-chief of the International Journal of Electronic Commerce. “The growth of e-tail is far sharper than the growth of retail in general, and sooner or later those companies will simply eat Costco’s lunch.”

Currently, Costco.com ranks 17th among online retailers. Amazon ranks first and Wal-Mart fourth — and both are growing faster than Costco, according to the trade publication Internet Retailer.

“A lot of other chain retailers, including Wal-Mart, are doing things sooner, better and quicker, including going international,” said Mark Brohan, director of research for the publication. “Wal-Mart has included Sam’s Club (a Costco competitor) in its aggressive plans for overseas online sales, including China, and Wal-Mart is buying social-media companies to get hold of the always-connected buyer.”

Ginnie Roeglin, senior vice president of Costco’s e-commerce and publishing operations, said the chain does not appear in searches partly because “we don’t advertise and we don’t pay for search. We’re moving to a new platform that will be structured in a way to be picked up by search engines.”

Social networking important

Mobile apps are key, because they make shopping easier for customers who are increasingly — and constantly — connected, according to Zwass, the computer science professor. He also sees social networking as important, particularly for a popular brands such as Costco.

“Town & Country magazine had a very flattering article on Costco, and they have fans in Beverly Hills — people who shop there, even though they don’t need to shop there, and love it,” Zwass said. “Costco has a lot to go to town with, and they aren’t going to town with it.”

Roeglin said the chain is exploring social media but has not dedicated much money or other resources to it, because it is focused on Costco’s core business and keeping costs down.

Holding down expenses is one reason Costco.com has been profitable since its first year in business, a rarity in online retailing.

Eye-popping diamonds

The chain went online in November 1998, three years after Amazon. Its average sale is higher than at a Costco warehouse, Roeglin said, and many of its shoppers are Costco’s executive or business members — a fairly affluent group.

Its top category is electronics: televisions, cameras, computers, security systems and office machines. The second largest is furniture, including leather sofas and love seats.

Costco.com carries a lot of large merchandise not always available in its warehouses: patio furniture, lawn-and-garden products, patio heaters, spas, sporting goods, fitness equipment and billiards tables.

It also does well with jewelry, including the occasional eye-popping diamond.

A $280,000 pink diamond ring Costco sold online this year included delivery by Brink’s. A popular leather furniture set — sofa, love seat and chair — recently sold for $1,999.99, including shipping and delivery.

Shipping is included in most purchases and features “white-glove delivery,” which means the item is assembled in the room of your choice and the service covers disposal of the packaging.

Costco sells online only in the United States and Canada for now, but hopes to expand to other countries in the coming year.

Nonmembers must pay a 5 percent fee to buy from Costco online. That means an expensive enough purchase could make the $55 standard membership fee worth the investment.

“More work to do”

More than half of Costco’s 23 million U.S. households have registered with Costco.com and receive email alerts about special offers on the website. Many have bought online, too, “but not as frequently as with a warehouse, because we don’t sell food,” Roeglin said.

Still, surveys indicate a lot of members don’t know that the online store carries items not found in a warehouse and that the email specials they receive are unique to Costco.com, Roeglin said. “We have more work to do making members aware of the fact that it’s an additional selection online,” she said.

That may change when customers can more easily see Costco televisions and safes and other items through a Google search.

“Rookie mistake”

Costco officials won’t talk about particulars of their online upgrade, but the field of “search-engine optimization” - the technical process of tailoring a website so that it appears high in search results — has lots of consultants and one of the best known, Chris Silver Smith, of Dallas, found plenty wrong with Costco’s website.

“When you go to Costco’s TV page, the URL (or Internet address) is gobbledygook, and people don’t search with gobbledygook keywords,” Smith said.

Ideally, the Internet address for a page selling a flat-screen television would include the words “flat-screen television,” and possibly other keywords, such as “best prices guaranteed” and “shipping included,” he said.

Even photos on Costco’s website are labeled haphazardly, he pointed out, calling the practice “a rookie mistake, and lots of retailers screw it up.”

“They’re undoubtedly leaving some sales on the table,” Smith said of Costco.com.

Roeglin said many of those issues will be addressed with Costco’s new platform.

April retail sales worst since 2009; Costco misses, Nordstrom tops forecasts

Anne D'Innocenzio — Tue, 08 May 2012 07:05:00 +0000

NEW YORK — Americans’ spending — much like the economy — continues to yo-yo.

Major retailers such as Costco and Macy’s reported that April revenue rose less than 1 percent in the worst performance since 2009 when the U.S. economy was just coming out of a bad recession.

The disappointing results follow two consecutive months of strong sales that were boosted by positive economic news about the job and housing markets.

“The economy is growing in fits and starts, and we are seeing sales shoot up and down,” said Michael P. Niemira, chief economist at International Council of Shopping Centers. “We’re in a choppy period.”

A small group of merchants representing roughly 13 percent of the $2.4 trillion U.S. retail industry report monthly revenue at stores open at least a year, a key measure since it excludes results from locations that open and close during the year. Still, the figures offer a snapshot of consumer spending, which accounts for more than 70 percent of economic activity. And recently, it’s shown that Americans’ spending sways with the wave of economic news.

An average of April’s results for 22 retailers nationwide rose 0.6 percent — the worst since November 2009 when the tally was down 0.2 percent, according to The International Council of Shopping Centers. The recession officially ended in June 2009. That’s in stark contrast to February and March when the group posted an average 4.1 percent sales gain on signs the economy was improving.

The latest results are impacted by a flurry of negative economic news. Government reports on jobs and housing in recent weeks have renewed concerns that the economic recovery is facing a spring slowdown for the third straight year. And the stock market rally also has lost some steam amid worries about the European financial crisis and the economy at home.

Other factors also helped dampen sales. For instance, analysts believe an earlier Easter, which was on April 8 and occurred 16 days earlier than last year, pushed sales out of April into March. Retailers blame a late Mother’s Day for pushing some sales out of April and into May. And unusually warm February and March pulled forward some sales that would have normally occurred in April.

Costco Wholesale Corp. said its revenue from stores open at least a year rose 4 percent in April, below the analysts’ estimate of a 5.1 percent increase from the wholesale club operator. Meanwhile, Target Corp. said its sales rose 1.1 percent in April, missing the 2.8 percent increase analysts had expected.

But April’s results did give retailers — and economists — reason to be optimistic.

Not everyone posted worse-than-expected figures. TJX Cos., which runs Marshalls, T.J. Maxx and HomeGoods, reported that revenue at stores open at least a year rose 6 percent in April, topping Wall Street’s forecast of a 4 percent rise. The company also boosted its first-quarter and fiscal 2013 earnings outlooks.

Retailers tend to study the combined March and April figures because it’s a better gauge of spending for the overall spring season than a single month. Sales for the combined two months were up 2.4 percent, which is a decent performance for this time of year.

“It’s been a strong spring for many retailers,” said Michael Brown, a partner in the retail practice at A.T. Kearney, a global management consulting

In fact, despite the weak finish to the first quarter, Target said that revenue in stores open at least a year rose 5.3 percent during the February through April period, the strongest performance in six years for that period.

And there are still signs that the economy is improving. For instance, the Labor Department reported that the number of people seeking unemployment benefits fell last week by the most in more than three months. Last month, applications jumped after steadily declining in the fall.

“This is a two-to-three month story,” said Alison Jatlow Levy, a retail strategist at consulting firm Kurt Salmon. “The U.S. economy isn’t out of the woods.”

Apparel-swapping millennials eschew stores and malls

Sapna Maheshwari — Tue, 08 May 2012 07:05:00 +0000

Retailers from Gap to Urban Outfitters are already struggling to persuade consumers to pay full price for clothes. Now, it turns out, many of their younger customers prefer trading T-shirts, jeans and designer dresses among themselves to actually buying new gear.

Clothing swaps are a hot ticket for Americans aged 18 to 34. Millennials attend swap house parties from New York to San Francisco. And they gather online, frequenting such sites as Swapstyle.com, which has swelled to more than 55,000 members since its 2002 founding.

Frugality has become a way of life for a cohort weighed down by student-loan debt and high joblessness, according to WSL Strategic Retail. In a WSL survey, 80 percent of respondents aged 18 to 34 said it was key to get the lowest price on most things they buy, up from 69 percent two years earlier and the only change among the three age groups surveyed.

“They can stay engaged in fashion without getting themselves in more debt,” Wendy Liebmann, chief executive officer of New York-based WSL, said in a telephone interview. “This generation has also grown up in an online world of Craigslist and EBay where selling something or swapping something has become somewhat second nature.”

The surge in apparel bartering comes as retailers struggle to woo young customers. While consumer spending rose in March, gasoline prices have held at more than $3.80 per gallon for more than a month and the unemployment rate remains above 8 percent. That’s cutting discretionary spending for the newest members of the workforce.

Swap Society

Event-listing website Meetup.com features apparel-exchange groups with hundreds of members, including the Washington D.C. Clothing Swap Society, the Five Boroughs Clothing Swap and the Frugal Fashionista’s Clothing Swap Group. The websites Evite Inc. and Etsy Inc. provide invitation templates for hosting swap parties.

“People are saying, ‘I can at least figure out another way to look like I’m wearing something new and fresh without spending top dollar on it, or waiting for it to go on sale and not being able to find my size,’” said Alison Paul, who leads the retail group at Deloitte LLP in Chicago.

Sarah Smith, a 24-year-old literary assistant in Manhattan, went to a coworker’s apartment in February for her first clothing swap, armed with three dresses and two skirts she hadn’t worn in at least a year. She walked out with a pair of skinny American Eagle army pants, a Simply Vera silk blouse and gray American Apparel T-shirt, pleased with the exchange.

Multiple Parties

Emily Weidner, a 29-year-old who works for the U.S. Forest Service in Washington, has hosted multiple clothing swap parties. She “consciously” tries to limit the amount of money she spends on apparel.

“I’ve been trying to aggressively pay off student loans from undergrad and grad school,” said Weidner. “I’ve heard a lot more about people being interested in participating in clothing swaps and I’ve been invited to a number of them.”

Frugal shoppers also are downloading Poshmark, an iPhone app introduced in December that hosts real-time shopping events for members to buy and sell clothes from their closets. Poshmark lets users follow others with similar taste, such as “animal prints” or “Marc Jacobs.”

The social aspect of shopping made possible by apparel — swapping parties is exactly what retailers need to do more of if they are to attract technologically driven millennials, according to WSL’s Liebmann.

Real Opportunity

“The opportunity to create a party around sharing and seeing new and trading old is a real opportunity to get younger shoppers back into the stores,” she said.

Gap and Urban Outfitters, both seeking to cut back on discounts for merchandise, have increased social-media marketing efforts to target young consumers.

Gap, which has said it’s not comfortable with its market share among 25- to 30-year-olds, worked with fashion bloggers to promote its spring collection this year. Urban Outfitters has promoted “social free shipping,” which gives customers free shipping if they tell friends the option exists.

In a March survey from Deloitte LLP, 52 percent of consumers under 45 years old said they rely more on Web comments and recommendations from others when deciding what to buy instead of marketing messages from retailers. That compares with 37 percent for customers 45 and up.

At the same time, only 22 percent of all respondents said retailers were offering more value for their money this spring than a year ago, compared with 45 percent in 2010.

Hannah Cole-Chu, a 25-year-old in Washington who’s in between jobs, has been attending clothing swaps and once came away with an oft-used Coach Inc. purse that she “loves.” Cole — Chu doesn’t frequent the mall, where it’s frustratingly common to see “a little tank top for $40.”

Clothing swaps offer “a more personal experience than going into a store,” she said. “It’s a nice relaxed social atmosphere. It’s not as high-pressure as shopping is sometimes.”

Researcher's response: Union-supported, anti-Walmart study heavily biased, misguided

The KPBJ — Mon, 07 May 2012 07:05:00 +0000

As one of the most experienced, respected and well-versed research firms in the country, we were both disappointed and offended by the recent attempts of Puget Sound Sage to tarnish our reputation — and to downright misrepresent — the conclusions we reached in our unbiased, straightforward analysis of Walmart’s future economic impact in Bellevue. To that end, we’re taking this opportunity to set the record straight (“Study says Walmart leads to drop in income, spending” posted April 25 on www.BellevueReporter.com).

We strenuously refute the methodology, data, and conclusions of the CS Fowler Economic Study for the Impact of Walmart in Skyway, and have outlined below just some of the many flaws we identified in the report.

Fowler used an inaccurate hourly wage for Walmart associates in Washington state. Walmart’s current average wage for regular full-time associates in Washington state is $12.87 an hour, a figure that easily available and regularly updated at http://www.walmartstores.com/pressroom/StateByState/State.aspx?st=WA. It is also worth pointing out that this figure is well above the state’s minimum wage which, the highest in the country.

Fowler also used King County union-only jobs as a point of comparison to Walmart jobs, when only about 10 percent of area retail clerks are unionized. Again, with very little effort, Fowler could have easily obtained unbiased figures from the Washington State Employment Security Department, which includes both union and non-union wages in their employment reports. If the Fowler model is recreated using the correct data, Walmart’s average wage in Washington is in fact slightly above that of most area grocery clerks and cashiers, which is $12.22 per hour.

Then to draw conclusions that contained big numbers, the Fowler study projected its findings 20 years into the future. But given that flawed numbers were used for both the base Walmart average wage and the average competitive wage, the projected trajectory is highly inaccurate.

Another oversight of the Fowler study is that it doesn’t take into account the positive economic impact of a new Walmart due to an increase in consumer traffic (both vehicular and foot). Major retail anchors, such as Walmart, increase the desirability of nearby commercial locations, and premiums are paid by smaller retailers to be in the development. Bellevue Square is a good example of how small retailers are willing pay premiums to be in closer proximity to larger retailers.

This dynamic is already playing out at the Kelsey Creek Shopping Center where Walmart recently announced its new Walmart Neighborhood Market. Once it was learned that Walmart would lease space at Kelsey Creek, a number of other businesses followed, with several existing tenants extending their leases with center owner PMF Investments, Inc.

Overall, the Fowler model is overly simplistic. According to his study, as long any new grocery store pays lower wages than the union average, it will have a negative impact on the economy. This is just too limited an assessment and it comes from a clearly biased viewpoint.

Much has been written about how Walmart stores fit into their communities. Based on the comprehensive research we conducted, we found that on the whole, Walmart stores bring more jobs and a general increase in local economic activity. This is why our report on Walmart in Bellevue concluded that the two new stores will overall be beneficial to the local communities.

Economic analysis must be conducted by looking at all the data, not just that which is likely to lead to a desired outcome. The Fowler Walmart study cherry picks and manipulates data in order to reach conclusions desired by the study’s backers. For that reason, it should be disregarded.

Jim Hebert, president and founder of Herbert Research, Inc.

Some dams should come down, but not Snake River dams

Don Brunell — Mon, 07 May 2012 07:05:00 +0000

AWB

There are dams that should come down and those that shouldn’t.

Demolishing the two dams on the Elwha River west of Port Angeles is a good thing and, hopefully the salmon and steelhead will return in record numbers. The dams were built in the early 1900s to bring electricity to the Olympic Peninsula at a time when salmon and steelhead were plentiful in other Pacific Northwest rivers.

On the Elwha River, the issue was clear: Two barriers were blocking salmon from moving upstream. The care with which the demolition was planned, studied and implemented is a credit to all involved, and now fish can swim up to the high mountain tributaries in the Olympics to spawn and start the lifecycle over again.

But breaching the four lower Snake River dams is an entirely different matter. For one thing, the billions of dollars paid by Bonneville Power ratepayers to improve fish passage and spawning habitat throughout the Columbia and Snake River system is now paying off — salmon are moving up the Columbia and Snake rivers in great numbers.

For example, in 1992, a single male sockeye salmon dubbed Lonesome Larry managed to swim 900 miles from the mouth of the Columbia River to Redfish Lake in Idaho’s Sawtooth Mountains to spawn. Last year, the Idaho Fish and Game Department reported that 1,070 sockeye returned to Redfish, and the Columbia River Inter-Tribal Fish Commission counted more than 27,000 adult fall chinook above the Lower Granite dam, the uppermost dam on the river.

Another major difference: While the Elwha dams produced very little electricity, replacing the electricity generated by the Snake River dams would take two nuclear plants, three coal-fired generators and six gas-fired power plants. Hydropower is the most efficient way to generate electricity, capable of converting 90 percent of the available energy into clean electricity. Wind turbines, on the other hand, are only about 30 percent efficient at best.

Another difference between the Elwha and Snake River dams: Ice Harbor, the westerly most of the lower Snake River dams, irrigates 36,000 acres of farmland, vineyards and orchards.

Consider also the marine highway created by the Columbia and Snake rivers is the most environmentally friendly way to move cargo from Lewiston to Astoria. Barging keeps 700,000 trucks off Northwest highways every year, and barges are extremely fuel-efficient, moving a ton of goods 576 miles on a gallon of fuel, compared with 413 miles for rail and 155 miles for trucks.

A plan exists to carefully manage the Columbia and Snake rivers for the benefit of both fish and people. Years ago, fisheries scientists from tribes, federal and state agencies and thousands of people whose lives depend on those two rivers came together to develop a comprehensive management plan which became known as the Biological Opinion or “Bi-Op.”

The Bi-Op was supposed to be implemented two years ago, but U.S. District Judge James Redden, who recently retired, blocked it saying that spilling water to allow young salmon to migrate to the ocean wasn’t good enough. He told Idaho Public TV reporter Aaron Kunz that there was no need to go the expense of demolishing the dams. “You just dig a ditch and let the river go around them.”

All this nonsense about digging a ditch around those four massive structures is just that — nonsense. We should thank our lucky stars the four lower Snake River dams are there and get on with implementing the cooperative management plant that allows both fish and families to thrive.

Organic crops worth $244 million to state's farmers

The KPBJ — Mon, 07 May 2012 07:05:00 +0000

An article by the Associated Press

PULLMAN, Wash. - A new study has found that the value of certified organic crops to farmers rose 16 percent in 2010, to a total of $244.6 million.

The study was conducted by the Washington State University Center for Sustaining Agriculture.

It also found that the amount of certified organic crop acreage and the number of certified organic farms in Washington state decreased.

Eastern Washington accounted for 76 percent of organic farm sales in 2010, the most recent year available.

Grant County repeated as the state’s leading producer of organic crops, with $64 million in farm sales, more than the next three counties combined.

Online tax law in Illinois ruled unconstitutional

Gregory Karp — Mon, 07 May 2012 07:05:00 +0000

CHICAGO — An Illinois law aimed at leveling competition between online and offline retailers while collecting more state sales taxes owed from Internet purchases is unconstitutional, a Cook County judge ruled.

The opinion is yet another shot in the highly contentious nationwide battle over which entity should collect online sales tax and how.

Consumers who live in sales-tax states, such as Illinois, owe state sales tax on their Internet purchases, whether they pay it during virtual checkout or when they file their state income tax returns. But few actually pay unless tax is collected at checkout. That has the effect of making online purchases cheaper than those at bricks-and-mortar retailers.

In March 2011, Illinois passed the Main Street Fairness Act, which expanded the meaning of physical presence beyond a warehouse, factory or office to include affiliate companies, which typically earn commissions for directing shopping traffic to an online store.

To avoid having to collect sales tax upon virtual checkout, some large Internet retailers, including Amazon.com, responded by cutting ties with affiliates in Illinois.

After the new law passed, some prominent Illinois-based Internet businesses, such as CouponCabin.com and FatWallet.com, fled to nearby Indiana and Wisconsin rather than be cut off from commissions from Amazon.com, Overstock.com and others.

Cook County Circuit Court Judge Robert Lopez Cepero said in court that the Illinois law violated the commerce clause of the U.S. Constitution, which limits what a state can tax, and that the law conflicted with the federal Internet Tax Freedom Act, which bans some types of Internet-related taxes.

The Illinois Department of Revenue was the defendant in the case. “We respectfully disagree with the court’s ruling and are reviewing our appeal options with the attorney general’s office,” the revenue department said in a statement.

Ultimately, the whole issue might be taken over by the U.S. Congress if it decides to pass pending federal legislation that would address the nationwide issue of Internet retailers collecting state sales tax.

Amazon.com agrees to begin collecting Texas sales taxes

Scott Nishimura — Mon, 07 May 2012 07:05:00 +0000

Amazon.com and Texas Comptroller Susan Combs said last week that the online retailer will begin to collect Texas sales taxes beginning July 1 under an agreement that Combs said “resolves all sales tax issues between Texas and Amazon.”

Amazon said it will create at least 2,500 jobs in Texas and make at least $200 million in capital investment. In a federal regulatory filing, it said it also made an “immaterial payment” to the state.

“We thank Amazon for partnering with us to find a solution that works for our state,” Combs, who has been trying to get Amazon to remit back sales taxes to the state, said in a news release.

“This is an important step in leveling the playing field in Texas,” she said. “However, Congress should enact federal legislation that will give states access to revenues that are already due, which would resolve this issue fairly for all retailers and all states.”

“Amazon looks forward to creating thousands of new jobs in Texas and we appreciate Comptroller Combs working with us to advance federal legislation,” Paul Misener, Amazon.com’s vice president of global public policy, said in a joint release with Combs. “We strongly support the creation of a simplified and equitable federal framework, because Congressional action will protect states’ rights, level the playing field for all sellers, and give states like Texas the ability to obtain all the sales tax revenue that is already due.”

Texas and Amazon have been at odds over the collection of online sales taxes since last September, when Combs sent Amazon a $269 million bill covering sales taxes the comptroller said Amazon should have collected from 2005 to 2009. The bill included interest and penalties through the date of the assessment.

Combs has said Amazon is required to collect sales taxes on Texas transactions because it was operating a distribution center, constituting a physical presence, in Irving, Texas.

Amazon has disputed that claim. But in a quarterly filing with the Securities and Exchange Commission, the company said it had paid Texas an unspecified amount as part of the settlement.

“While we continue to believe the assessment was without merit, in April 2012, we entered into a settlement with the state of Texas that included an agreement to collect sales taxes on applicable sales transactions for our U.S.-focused Internet retailers beginning July 1, 2012, resolution of Texas sales taxes up to that date, certain commitments related to capital investment and job creation in the state, and an immaterial payment to the state,” Amazon said in the filing.

Washington Retail Association supports closing the Internet tax loophole

Jan Teague — Mon, 07 May 2012 07:05:00 +0000

The Washington Retail Association joined a coalition of state retailers and business associations last week in a letter urging Congress to pass a law closing the current Internet tax loophole.

The Legislature passed a joint resolution last year in support of the same tax reform WRA and the business coalition seek in the letter to the state’s Congressional delegation.

In short, pending federal legislation would force online retailers to collect sales taxes, which would level the competitive marketplace with traditional brick-and-mortar retailers who do collect the tax. The pending bills would require online retailers to collect the tax and remit it to the local and state governments where sales were being completed.

This change in law would at first bring in an additional $170 million in new revenues in the current biennium and up to $480 million in the next biennium.

I told several of our state newspapers last month that Congress needs to close this loophole. The new revenue from reform could help the state recoup service cutbacks in vital fields such as education and stabilize sales taxes as a more reliable revenue source.

Developer offering smaller luxury homes at Canterwood in Gig Harbor

The KPBJ — Mon, 07 May 2012 07:05:00 +0000

Rush Residential announced plans to build 10 high-quality, smaller homes in the private, country club community of Canterwood in Gig Harbor. Rush will host an open house at The Reserve the weekend of May 18-20 from noon to 5 p.m. each day. During the event, floor plans, pricing and lot reservations will be available to buyers and interested parties.

Lots in The Reserve are 10,000 to 2,000 square-feet, and all are located inside the private Canterwood community. The homes will feature 2 or 3 bedrooms, a guest suite and additional flex space to meet the changing needs of today’s buyers. Finished homes are planned for sale starting in the mid-$400’s.

“Our commitment to meeting the current needs of buyers in the new home marketplace is inclusive of some of the most coveted communities of Gig Harbor,” Scott Walker, vice president of Rush Residential, said in a news release. “Canterwood is one of them. Our mission is to offer a wider variety of homes in quality communities that meet the changing needs of our customers — whether they want less space or a yard with little maintenance — we want to offer an option that still meets our highest standards.”

Rush is developing four home designs for potential homeowners to select from, with the opportunity to personalize each home according to buyers’ needs. The company continues to build larger luxury homes on estate-size lots in the Canterwood neighborhood, priced between $599,000 and $800,000.

Situated within 700 wooded acres, Canterwood is two miles from downtown Gig Harbor and is home to residents with a focus on quality of life. The property offers tennis, swim and clubhouse facilities, as well as equestrian centers, hiking trails and more. The main attraction for most residents is the Robert Muir Graves 18-hole championship golf course. Additionally, native landscaping further enhances the natural beauty of Canterwood’s “forested edge” concept.

Rush Residential is an operating division of The Rush Companies, which offers design, development, construction and property management services for both commercial and residential projects.

Visitor & Convention Bureau hosts tourism season kickoff event

The KPBJ — Mon, 07 May 2012 07:05:00 +0000

The Kitsap Peninsula Visitor & Convention Bureau will host its annual meeting and launch the tourism season May 15 with an event from 4:30-7 p.m. at Elandan Gardens, on State Route 16 between Port Orchard and Bremerton.

Please join elected officials, members and guests to enjoy locally prepared food created by professionals, including nationally renowned chef Chris Plemmons and students from the Olympic College culinary arts program. Also, Peggy Templeton will showcase students from the Central Kitsap Junior High School culinary program.

Local wineries and brewers will serve some of their award-winning refreshments.

The event will recognize organizations that contribute to the region’s success as a visitor destination, and introduce the new Kitsap Peninsula Water Trails map to be carried by REI and the Kitsap Peninsula Tastes & Tours promotion.

Tickets for the event cost $20 per person, and includes three tastes of local brews or wine. Tickets may be purchased online at the KPVCB website, www.VisitKitsap.com, and at the door. The event is sponsored by the Kitsap Peninsula Business Journal and Port Madison Enterprises.

2012 Ford Fiesta — A small car standout

Lary Coppola — Sat, 05 May 2012 03:12:16 +0000

Automotive

In my view, the Ford Fiesta rates well against an impressive choice of recently redesigned subcompacts. Completely redesigned in 2011, Fiesta offers no significant changes for 2012. Any bugs have been worked out in the first year, yet the design is still new enough to offer the latest advances in safety and fuel efficiency.

Model Lineup: The 2012 Ford Fiesta comes as four-door sedan or five-door hatchback (our test vehicle, which this review will focus on).

The Fiesta hatchback has two trim levels, SE, and SES. The SE comes standard with air conditioning, cloth upholstery, a new driver’s-seat armrest, 60/40 split fold down rear seatback, four speaker, 40 watt AM/FM stereo, power door locks and outside mirrors with new spotter mirror, carpeted front floor mats, rear seat heat ducts, and cloth door panel trim, steel wheels with eight spoke hubcap, that wear 185/65R15 tires.

Option packages include the Microsoft SYNC entertainment center with six speakers and 80 watts, redundant audio controls on the steering wheel and USB equipped center console, and a sport appearance group that includes painted aluminum wheels, cruise control, LED running lamps and deck lid spoiler.

The 2012 Fiesta SES hatchback also offers a new premium sport appearance package with polished alloy wheels, blacked-out trim, and on manual-transmission models, a numerically higher final drive ratio. Also new is a two-tone leather option our test vehicle featured, available in black-and-red or black-and-white. Single-tone leather is available in plum, cashmere, and black.

Other options include a power sunroof, keyless entry keypad, illuminated interior accessories, cargo organizer, and various appearance items.

Walkaround: The Fiesta hatchback offers a European-like profile — wedged side character lines and rounded rear face.

The lower grille opening looks like a reverse trapezoid, while the body colored treatment of the hatchback’s upper grille is a better fit for the car’s proportions.

Viewed head on, the stance is almost aggressive, with a raked windshield and front tires visible outside of the leading edge of the fenders. However, viewed from the side, the front wheelwell arch slightly overwhelms the parallel character lines on the upper and lower door panels that lead to wraparound headlights.

The side hindquarters of the hatchback comes together with vertically arrayed taillights bracing a liftgate hinged far enough forward that opening it requires minimal space behind the car. A spoiler sits atop the rear window, while the lip running the full width of the liftgate ties into the upper side character line.

Interior: The quality of interior materials is on a par with — or actually a tick or two above — the standard for cars in the Fiesta’s class. Comfortable seats offered enough side and bottom bolsters to keep occupants properly positioned without obstructing ingress and egress. Our test model had the optional leather seating surfaces, armrests, and heated front seats.

The dominant dashboard feature isn’t the instrument panel, with its analog speedometer, tachometer and fuel gauge, but the screen at the center of the dashboard. The Fiesta features the voice activated SYNC infotainment system that augments the traditional AM/FM/CD/MP3 stereo setup. Audio and podcasts can be streamed into the sound system via a Bluetooth link to a smartphone. The system does rely on cell phone coverage, and users should be forewarned that when connected to those internet streams, the clock is ticking on that cell phone user’s data plan.

Non-voice audio controls and creature comfort settings are basic knobs and buttons arrayed and sized for ease of use with minimal distraction.

Under The Hood: All 2012 Fiesta models are equipped with the same 120-horse, 1.6-liter four-cylinder engine. The standard transmission is a 5 speed manual; optional is the 6 speed twin clutch, electrically shifted, automated manual — which our test vehicle was equipped with.

Behind The Wheel: I found the Fiesta more fun to drive than I anticipated. It’s right at home zipping around town and running errands. Its size allows it to slip conveniently into those fleeting gaps in stop and go urban traffic, as well as easily into parking spots with no backing and straightening.

Ride quality was at least equal to everything in this very competitive market segment, but seating 4 adults comfortably in the Fiesta is another story.

The 120-horse 4-banger takes the daily commute in stride, with relatively smooth ride quality. To my surprise, wind and road noise is decently muted — especially for a car this size, this low to the ground. Steering is certain, with the Fiesta going exactly where you point it, and it doesn’t lean much in corners at responsible speeds.

Fuel economy is an EPA estimated City/Highway rating of 29/38 miles per gallon for the automatic against 28/37 mpg for the 5 speed manual.

Whines: I found the Fiesta’s low profile a little difficult for ingress and egress with the front seat on its highest setting. The placement of the USB slot in the center console is within problematic spill distance of the conjoined, three-slot cupholders. The amount of truly usable cargo space limits what you can bring home from Costco or Home Depot.

Bottom Line: The Ford Fiesta is a fresh, fuel efficient runabout that will hold its own in an increasingly competitive — and important — market segment.

Land Rover sales up 20 percent for 2011

The KPBJ — Sat, 05 May 2012 03:07:37 +0000

With 2011 sales up a remarkable 20 percent, Land Rover has scored the largest improvement, percentage-wise, of any of its competitors. Combined 2011 Land Rover sales eclipsed those of BMW, Mercedes-Benz, Porsche, Lexus and Audi, making it the company’s best sales year since 2007.

2012 Audi A7 — A luxurious hatchback

Bruce Caldwell — Sat, 05 May 2012 03:04:50 +0000

Automotive

Luxury and hatchback are terms that don’t seem to belong together, but the new 2012 Audi A7 has added practicality to their latest luxury/sport sedan. We don’t expect to see many A7s at Home Depot with lumber poking out of the hatch; weekend luggage and golf clubs are more likely. The A7 is a primarily an upscale sport sedan with added functionality.

Walkaround: The Audi A7 is a handsome car with an imposing presence. There is no doubt that this is a car of substance owned and driven by people of similar means. The A7 exudes Germanic Autobahn muscularity. It looks fast even when parked.

Paint quality and body panel fit were first class. We like the easily recognizable Audi grille and trick Xenon headlights. The lights provide excellent nighttime visibility.

The 2012 Audi A7 has style with a capital S.

Interior: We love Audi interiors, at least the front seats. With the exception of the extra luxurious A8 most Audi rear seats tend to be short on legroom. This might have something to do with Audis being drivers’ cars. We greatly prefer driving Audis to riding in them, but this could be an issue for transporting important clients/guests.

Front seat room is beyond stretch-out; it’s just short of lay-down. The thick, contoured leather-wrapped steering wheel has tilt and telescopic features with a long travel that makes finding the ideal driving position easy. The heated, power lumbar adjustable leather seats are both comfortable and supportive. They’re great touring seats.

As spacious as the front seats were I felt crowded in the rear seat. The sexy, sloping roofline looks great outside, but inside my head hit the headliner. My knees were pressed against the seatbacks even with the front seats moved up a ways. I also hit the top of the arched doorjamb getting in and out of the back seat.

The rear seats fold pretty flat, which adds to the hatchback’s versatility. The power sunroof was on the small side. Materials, colors, and textures all combined to make a handsomely stunning interior. The interior wood was as nice as can be found in any luxury sedan. Plentiful controls take a little acclimation, but work fine once you’re familiar with them. The sound system/electronics/communications features were first class. We appreciated the side assist option for blind spot alerting.

Under The Hood: The wonderful supercharged 3.0-liter V-6 engine is a precision powerhouse producing 310 horsepower and 325 lb-ft of torque. The power is smoothly transmitted to all four wheels via an 8-speed automatic transmission and Audi’s famous Quattro all-wheel-drive system. Even though the A7 weighs a full two tons it’s capable of sub-five second 0-60 times and quarter mile times in the low 13-second range. Those are muscle car performance figures from a luxury sedan. Braking performance is equally impressive thanks to 14-inch and 13-inch vented disc brakes.

The EPA rates fuel economy at 18/28 city/highway, but with all that exhilarating power on tap we didn’t worry about fuel consumption. We were lucky to break into the twenties.

Behind The Wheel: The Audi A7 is a car that deserves to be driven long and hard. It seems wasteful to squander its performance attributes running shopping errands. All areas of handling, acceleration, and braking were excellent. The super comfortable driver/front passenger accommodations and enough luggage capacity for a cross-country adventure just beg owners to take a couple weeks off and hit the open road.

Whines: Our A7 tester had the optional 20-inch Sport Package, which included handsome 20-inch alloy wheels and summer performance tires. Those tires are great in good weather, but it snowed during part of our test period. Even with the world famous Audi Quattro system we struggled getting up our steep driveway. We also had trouble on the icy ruts after the snowstorm. The base 255/45R18 tires would have been better. The right tires are important for our climate.

Major option packages can put a major dent in the car’s bottom line. For example, there is a Bang and Olufsen sound system that lists for $5,900 on top of the mandatory $6,300 Prestige Package. For that price we’d buy better ears.

Marginal rear seat legroom and headroom were two significant negatives.

Bottom Line: The 2012 Audi A7 is a difficult car to quantify. From a strictly practical standpoint an A6 would be a better choice, but from an emotional perspective the A7 has a Siren’s song that’s hard to resist. The hatchback feature does improve practicality, but that same roofline penalizes rear seat passengers. The 2012 Audi A7 is an odd mix of performance, luxury, and practicality, but one we’d love to own.

A luxury hatchback sounds like an oxymoron, but Audi has made it work.

Honda names Leviton as EV charging partner

The KPBJ — Sat, 05 May 2012 02:56:59 +0000

American Honda Motor Co., Inc. has announced that Leviton Manufacturing Company has been selected as its preferred Electric Vehicle equipment provider for customer and dealer EV charging.

Honda will debut two battery-electric vehicles beginning with the 2013 Honda Fit EV this summer, and the Honda Accord Plug-In Hybrid Sedan next winter.

The 2013 Honda Fit EV battery-electric car, based on the popular Fit, targets an estimated 123 city-mile range per charge (76 mile range combined adjusted city/highway) and can fully recharge its battery in as little as three hours when connected to a 240-volt circuit.

The Accord Plug-In Hybrid Sedan uses an all-new, two-motor hybrid system which continuously moves through three different modes — all-electric, with up to a 15 mile per charge range.

A 2012 roundup of local golf courses and country clubs

The KPBJ — Sat, 05 May 2012 02:55:04 +0000

Golf And Recreation

Alderbrook Golf & Yacht Club
300 Country Club Drive, Union • (360) 898-2560
Course Pro: Justin Gravatt
Alderbrook is an 18-hole, par 72 course. It is 6,326 yards long and is assigned a course/slope rating of 70.8/121. Weekday green fees are $40 and $18 for Juniors. The weekend (Friday through Sunday) and holiday fee is $55 except for Juniors who pay $18. A $25 twilight rate is in effect after 3 p.m. on Monday through Thursday; and $35 on Friday through Sunday.
Club rentals are $15 for 18 holes or $10 for nine holes. Hand carts cost $5 for 18 holes, $3 for 9 and power carts are $14 per rider.
Alderbrook offers a driving range, putting green and chipping area. If you are new to the sport or want to buff up your short-iron game, a 45-minute individual lesson costs $40 or four for $120. Group instructions available for 3 – 6 people for one hour at $20 per person. Alderbrook offers a snack bar and restaurant, Alderbrook Golf and Yacht Club Restaurant; open Monday through Friday from 11 a.m. to 7 p.m. Saturday 11 a.m. to 9 p.m. and Sunday 8 a.m. to 9 p. m. Alderbrook is available for tournaments. Call for more information.

Canterwood Golf & Country Club
12606 54th Avenue NW, Gig Harbor • (253) 851-1845
Head Golf Pro: Dale Davis
Canterwood Golf & Country Club is a private 18-hole facility. Course par is 72, length is 7,185 and the course is rated 75.9/146. Call Canterwood for membership details.
Canterwood offers a driving range, putting green, chipping area and has been rated by Golf Digest to be one of the best golf courses in Washington State.

Gig Harbor Golf and Country Club
6909 Artondale Dr NW, Gig Harbor • (253) 851-2378
General Manager and Course Pro:
Steve Stensland
Gig Harbor Golf and Country Club is a private nine-hole facility. It is 5,420 yards long and the course par is 70 and is rated 66.3/114 for men and 67.6/118 for women. The course is scenic, hilly and has incredible views of Mt. Rainier. Memberships are available for $192 per month for 9 months and then 3 months are free; call Gig Harbor Golf and Country Club for details.
They offer a driving range, putting green and a chipping area. A new renovated event space is now available to members and non-members.

Gold Mountain Golf Complex
7263 West Belfair Valley Road • www.goldmt.com • (360) 415-5432
Golf Director: Scott Alexander
Head Pro: Daryl Maphney
Gold Mountain offers two 18-hole courses, Olympic and Cascade. Par for the Olympic course is 72. The 7,035-yard course is rated 74.1/135, 71.3/129, 69.1/124 for men and 74.7/132 and 70.2/122 for women. Olympics’ weekday green fees are $42, $36 for Seniors and $22 for Juniors. Olympics’ Friday fees are $46, weekend and holiday fees are $60 for everyone. Twilight fees are $25 for weekday and $27 for weekend.
Par for the Cascade course is 71. Cascade is 6,707 yards long and is rated 72.2/125, 70.5/122, 69.0/118 for men and 75.0/127 and 70.2/119 for women. Cascade’s weekday fees are $33, $28 for Seniors and $12 for Juniors, Friday - $36 for everyone. On weekends and holidays Cascade costs $40 and twilight rates are $23 during weekdays and $26 for weekends.
Clubs rent for $25. Hand carts rent for $4 and power carts for $16 per person. The facility offers a putting green, a chipping area and a partially covered driving range. Instruction is available, call for details. Tuckers Restaurant, 415-6895, is open to the public Wednesday through Friday for dinner and every day for breakfast and lunch.
Gold Mountain has been chosen to host the 2011 U.S. Junior Amateur Tournament and Golf Digest has rated the Olympic course to be the second best value in the United States.

Horseshoe Lake Golf Course
1250 SW Club House Ct, Port Orchard • (253) 857-3326
Horseshoe Lake Golf Course is an 18-hole, par 71 course. Its length is 5,607 yards and it is rated 69.1/116. Peek weekday green fees are $36, which includes cart, and $12 for Juniors. Twilight rates after 1 p.m. during the weekday is $29 and 12 for Juniors and includes a cart and all you can play. The weekend and holiday rate before 8 a.m. is $39; from 8 a.m. to 1 p.m. the rate is $39, twilight weekend after 1 p.m. are $32 for everyone which includes a cart and all you can play. Club rentals are $20. Hand carts are free.
Horseshoe Lake offers a driving range, putting green and chipping area.

Kitsap Golf & Country Club
3885 NW Golf Club Hill Rd, Bremerton • (360) 377-0166
Course Pro: Al Patterson
Kitsap Golf & Country Club is a private 18-hole, par 71 course. It is 6,329 yards long and has a rating of 70.7/125, 69.9/123 and 71.7/123. Guests pay $45 on weekdays and $55 on weekends and holidays. Club rentals are not available. Handcarts are complimentary and power carts cost $30 for two persons.
A driving range, putting green and chipping area are available. A 30-minute lesson costs $35. For members and their guests, the restaurant offers lunch daily, dinner on Wednesday and Friday, and breakfast on weekends.

Lakeland Village Golf Course
Old Ranch Road, Allyn • (360) 275-6100
Course Pro: Randy Jensen
Lakeland offers three 9-hole courses, Generation I, II and III. Generation I is a par 35, 2,584-yard course with a rating of 32.5/110. Generation II is a par 36, 3,140-yard course with a rating of 35.0/126. Generation III is a par 36, 3,331-yard course with a rating of 35.1/126.
Green fees are as follows: Friday $32, Weekend - $36 to play any combination of two 9-hole courses; Monday and Thursday - $28 for any combination of two 9-hole courses. Twilight rates of $22 are available everyday. Senior rates on Monday and Thursday are $22. On Tuesdays and Wednesdays the fee is $22 after 12 p.m. Lakeland Village also offers memberships. The annual fee for a single member is $1,700, and $2,700 for a family. Clubs rent for $10. Handcart rentals are $5 for 18 holes and $3 for nine holes, and power carts cost $32 for 18 holes and $20 for nine holes.
Lakeland Village has two driving ranges, a putting green and a chipping area. 30-minute individual lessons are available, call for rates. Lakeland Village offers snack bar fare.

Madrona Links
3604 22nd Avenue NW, Gig Harbor • (253) 851-5193
Head Pro: Pat Bean
Madrona Links offers 18 holes with a par of 71. Course length is 5,602 and rated 67.6/113, 66.7/111 and 64.8/106. Weekday rates are $27 for 18 holes, $20 for nine holes. Weekend rates $30 for 18 holes and $22 for nine holes. Seniors pay $23 for 18 holes and $17 for nine holes Monday through Friday. The weekend rates apply on Friday, Saturday and Sunday. Juniors pay $18 for 18 holes and $13 for nine and twilight rates are $22, super twilight are $17 all week. Clubs rent for $15, handcarts for $5.00 and power carts for $13.50 per person.
* Rates may change for summer.
Madrona offers a driving range, putting green and chipping area. Madrona Links Restaurant and Lounge is open for breakfast, lunch and dinner. From 6 a.m. to 8 p.m., Monday through Friday, Madrona Links offers a special for $24 which includes breakfast and golf.

McCormick Woods
5155 McCormick Woods Dr. SW, Port Orchard • (360) 895-0130 • www.mccormickwoods.com
Course Pro: Jeff Mehlert
McCormick Woods is an 18-hole, par 72 course. The course is 7,040 yards long and is rated 74.3/134, 73.2/131, 70.7/124 for the men and for the ladies 74.0/134 and 71.6/127. Weekday fees are $45, 10% off for Seniors and 40% off Juniors. Basic clubs rent for $25, premium clubs for $40. Three wheel carts rent for $8 and power carts for $15 per rider.
McCormick offers a driving range, putting green and chipping area. A driving range token is $5 for 35 balls. A 50-minute individual lesson costs $70 for adults and $60 for Juniors.
The Club House at McCormick Woods is open weekdays from 11 a.m. to 8:30 p.m. and serves lunch and dinner. Weekend hours are 11:00 a.m. to 9:30 p.m. A non-buffet Sunday breakfast from 9 a.m. to 1 p.m. is available. The Club House can be reached at 895-0142.

Meadowmeer Golf and Country Club
8530 Renny Lane NE, Bainbridge Island • (206) 842-2218
Course Pro: Ted Wurtz
Meadowmeer is a nine-hole course. Par is 71, course length is 5,596 yards, and it is rated 67.7/117. Weekday rates are $26 for 18 holes or $21 for 9. Twilight weekday rates are $15, twilight weekend rates are $20, and both include unlimited golf for everyone. Seniors, Juniors and Military pay $22 for 18 holes or $17 for nine. Weekend/holiday rates apply to everyone: $31 for 18 holes or $25 for nine holes. Members only till noon on weekends and holidays.
Clubs rentals are $17 for 18 holes or $13 for nine holes. Hand carts cost $5.50 for 18 holes or $3.50 for nine, and power carts cost $28 for 18 holes or $18 for nine. Meadowmeer offers a putting green and a chipping area but no driving range. A 30-minute individual lesson costs $40. Meadowmeer has a snack bar with grill and offers beer and wine.

Northwest Golf Range & Scott Alexander Pro Shop
368 NE Waaga Way, Bremerton • (360) 692-6828
Teaching Professional: Chris Keough
Northwest Golf is a driving range and an 18-hole putting course. A jumbo bucket sells for $10; large bucket sells for $8; a medium for $7 and a small for $5. For patrons 15-years-old and younger the cost is $5 per medium bucket. Irons are available at no cost; woods rent for $2 each with a $2 per club deposit.
General green fees are $6, patrons 12 years and younger pay $4, and a group of 15 or more pay $4 for adults and $3 for children under 12. A 60-minute individual lesson costs $60. Call for more lesson rate information and specials. Northwest Golf has batting cages for additional recreational enjoyment.

Rolling Hills Golf Course
2485 NE McWilliams Road, Bremerton • (360) 479-1212
Course Pro: Tedd Hudanich
Assistant Pro: Charles Welter
Rolling Hills offers 18-hole of play. Course par is 70, length is 5,936 yards, and its rating for men is 68.7/120 and for women, 71.0/120. Weekday fees are $29, and weekends are $31.50. Seniors, Juniors and Military pay $21. Clubs rent for $12. Hand carts rent for $4 and power carts for $30. Twilight rates are $21 for weekdays, $23 for weekends and power carts are $18. Discount golf packages are available. Call for more information.
Rolling Hills offers a driving range, putting green and chipping area. A 60-minute individual lesson at Rolling Hills costs $40 and a 30-minute less costs $20. A group of four to six can receive six lessons for $80 - $90 per person. Putter’s Restaurant and Lounge (377-7077) serves breakfast, lunch and dinner and also offers banquet services.

Trophy Lake Golf & Casting
3900 SW Lake Flora Road, Port Orchard • (360) 874-8337
General Manager: Lance Fong
Course Pro: John Hildebreand
Trophy Lake offers an 18-hole course. Course par is 72, length is 6,162 yards, and its rating is 69.7/129. Green fees change incrementally with the seasons. Green fees for this year’s summer peak season, beginning June 1, will range from $32 to $84 depending on time and day of week. Power carts are available. Call for more rate information. Clubs rent for $50. The facility offers a driving range, two putting greens and a chipping area. Instruction is available.
The Dry Fly Café offers breakfast and lunch Monday through Saturday from 7 to 11 a.m.; Sunday from 7 a.m. until 1 p.m. and lunch Monday through Sunday from 11 a.m. to 6 p.m. On Thursday and Friday, dinner is offered from 4 to 8 p.m.

Village Greens Golf Course
2298 Fircrest Drive SE, Port Orchard • (360) 871-1222
Supervisor: Billie Schmidt
Village Greens offers 18 holes of play. Par is 58, course length is 3,255 yards, and its rating is 57.3/83. Green fees are the same everyday: $16.50 for adults. Seniors and Military can play all day for $13.20; Juniors can play all day for $11. Hand carts rent for $3.25. They offer a covered driving range, putting green and chipping area. Village Greens offers snack machines.

White Horse Golf Club
22795 Three Lions Pl NE, Kingston • (360) 297-4468
Course Pro: Bruce Christy
Assistant Pro: Brian Cresto
White Horse Golf Club offers 18 holes with a par of 72, course length is 7,093 yards, and is rated 75.0/146.
Weekday, Monday through Thursday rates are $35 for 18 holes and $22 for 9. The Junior rate is $10 after 12 p.m. seven days a week. Weekend rates, Friday through Sunday and holidays, is $49 for 18 holes and $25 for 9. Twilight rates after 3:00 p.m. are $22 for weekday and $25 for weekends. Active Duty Military rates are $29 for weekday and $39 for weekends. White Horse also offers a Replay rate of $20 for weekday and $25 for weekends.
Power golf carts are available at $15 per person for 18 holes and $9 per person for 9 holes. Push carts are $6 for 18 holes and $4 for 9 holes.
White Horse also offers a grass driving range, two putting greens, a chipping area with sand traps and bunkers. A Players Card can be purchased which offers the golfer discounts and lessons are available, call for more information.

Wing Point Golf & Country Club
811 Cherry NW, Bainbridge Island • (206) 842-7933
General Manager: Bob Hollister
Course Pro: Jeff D’Amico
Assistant Pros: Neal White & Cory Nergaard
Wing Point Golf & Country Club is a private 18-hole facility. Course par is 71, length is 6,053 and the course is rated 69.7/128. For 18 holes, guests of members pay $60 on weekdays and $60 on weekends/holidays; $25 for nine holes during the week, and $35 on weekends/holidays. Memberships are available, call Wing Point for details. Clubs rent for $20. Handcarts are free and power carts go for $30 for 18 holes or $15 for 9. Wing Point offers a driving range, a putting green, a chipping area, pool, and tennis courts. Instruction is available, contact the pro shop for details. The restaurant is available to members and their guests.

Several other courses are within a short driving distance of Kitsap County and Gig Harbor. These include Port Ludlow and Chevy Chase Golf and Country Club in Jefferson County and Bayshore, near Shelton, in Mason County. You are invited to call them directly for information on greens fees and tee times.

Gateway Christian Schools hires North Mason Chamber CEO

Tim Kelly — Sat, 05 May 2012 02:47:42 +0000

Gateway Fellowship Church has hired Mark W. Costa, president and CEO of the North Mason Chamber of Commerce, to be director of communications and development for the expanded Gateway Christian Schools.

Costa will oversee internal and external marketing, communications, community relations and strategic devel-opment for the Gateway Christian School, which the church has operated in Poulsbo since 1974, and Crosspoint Academy in Bremerton, which Gateway recently acquired from Seattle-based Crista Ministries.

Costa, who helped increase membership in the North Mason Chamber during his year-and-a-half tenure there, will focus on increasing enrollment at the Gateway Christian Schools.

Michael Forney, Gateway’s executive director of schools, said the Poulsbo campus has 124 students in kindergarten through eighth grade this school year. Crosspoint, a K-12 school formerly called King’s West that had more than 400 students a decade ago, has a current enrollment of 243, Forney said.

“When they acquired the campus in Bremerton it was apparent there was a need for a communications and development position that would oversee both Cross-point and Gateway,” Costa said. “They’re (in) the season now for new student enrollments for the 2012-13 academic year.”

Costa, 50, whose family joined Gateway Fellowship when he moved to the area and took the North Mason job in the fall of 2010, said the schools have “a tremendous group of people who are really dedicated to the mission of Christian education.”

In addition to bringing Costa on board, Gateway Christian Schools has hired Nick Sweeney, who was the head of King’s West school from 2000 to 2007, to be head of schools for Gateway Christian and Crosspoint.

Costa was scheduled to begin April 30 at his new job, which offers a shorter commute to his Bainbridge Island home.

Before moving to Kitsap County, Costa had worked in the travel and cruise business and had been an executive in charge of membership services in the private club industry. Though his new job is with a nonprofit, he said his marketing and communication experience is a good fit.

Costa said the North Mason Chamber of Commerce executive committee has known for a few months of his likely move, and he’s worked with them to ensure a smooth transition.

“Things here at the chamber have been going so well, and we wanted to make sure that momentum continues,” he said. “2011 was a really solid year for us; we had record membership growth, and added well over 110 new members.”

That was echoed by Rhonda Brown, chair of the chamber board. “Mark has just done a phenomenal job at helping us expand our membership,” she said, noting also the high retention rate among chamber members that resulted from “bridge-building” efforts that Costa led in the North Mason community.

“I will be sad to lose him at the helm, but we certainly wish him well,” Brown said.

She said Costa’s successor as president and CEO of the North Mason Chamber will be Greg Oldham, a real estate agent who lives in Belfair and is 2012 president of the board of directors of the Port Orchard Chamber of Commerce. Oldham previously served as the North Mason Chamber’s board chairman.

Bremerton Figure Skating Club to host PNIC regional competition

The KPBJ — Sat, 05 May 2012 02:41:03 +0000

Golf And Recreation

The Pacific Northwest Interclub (PNIC) Association of United States Figure Skating has selected Bremerton Figure Skating Club to host its annual competition Aug. 3-5.

Bremerton Ice Center, the club’s home rink, will host the event, which is expected to attract an estimated 150 competitive skaters from the United States and Canada.

Previous PNIC events have attracted skaters from Washington, Oregon, Montana, Idaho, Wyoming, Alaska and other states as well as Canada. United States Figure Skating, the nation’s governing body for competitive figure skating, has sanctioned the event.

It is the first time that Bremerton Figure Skating Club has been selected to host a USFS competition.

“We are pleased that Bremerton Figure Skating Club will have the opportunity to host this important competition, which will make a positive economic impact on the area and helps to put our club on the map for future competitions,” club president Christina Schmitt said. “Our dedicated volunteers, as well as volunteers from throughout the state, will work hard to ensure that our competitors and their families have an enjoyable visit to Bremerton.”

Organizers estimate that the economic impact to the area will be between $80,000 and $100,000 from lodging, food, equipment and ice rental and other visitor spending.

The competition will feature numerous individual and group events for skaters of all ages and also is a part of the USFS National Solo Dance Series.

With combined scoring used for the skaters who have short and long programs, the competition is considered a warmup for the 2013 Pacific Northwest Regional Championships, which will be Sept. 28-Oct. 2, in Eugene, Ore.

Founded in June 2006, the Bremerton Figure Skating Club has 47 members, including skaters of all ages. The members include skaters who have won medals at the Northwest Pacific Regional Championships and have competed in events such as the U.S. Junior National Championships and the Pacific Coast Sectional Championships.

McCormick Woods Golf changes ownership model

Rodika Tollefson — Sat, 05 May 2012 02:39:31 +0000

McCormick Woods Golf Course became part of a new company, RMG Club, in January. McCormick’s owners, Jeff Mehlert and Shawn Cucciardi, joined forces with PGA pro Ryan Moore and his father, Michael, to create the new company — which is named after Ryan Moore.

“We formed a new way to look at golf,” Cucciardi said. “What we’re trying to do is allow more golfers to get into the game of golf.”

The Moores’ golf club, The Classic located in Spanaway, was added to the joint portfolio, and together they acquired Oakbrook, previously a private club, in Lakewood.

While each club maintains its own identity, policies and systems are being implemented in the new corporation, including centralized accounts. The owners are also replicating some of each other’s best practices at other locations — for example, the McCormick restaurant model will be implemented at Oakbrook to help increase business at that club’s dining side.

Venue rentals and event planning will not see any changes at McCormick. The restaurants will also continue to be marketed under their own brands.

“We don’t want to lose the independent brands because every community is unique. But we do want to give life to the new brand,” said Cucciardi, who is the chief operating officer for RMG.

The main change is a new membership model for golfers. Three tiers are currently offered, from $49 to $179 per month, in addition to the usual options for green fees. Players choose one of the three locations as their home course for the club and premier memberships, which also entitle them to discounts off all RGM green fees and other perks. The highest-priced, all-access option gives unlimited access to all RMG courses, plus guest fee discounts and other advantages.

Memberships are available with a 12-month contract set up with automatic payment. Spouses and children can be added under the premier and all-access options at steeply discounted rates.

Cucciardi said the membership is a value at any level, and estimates that unlimited play under the old club model would cost about $400 a month on average for the hard-core players compared with the $179 offered by RMG. He said even with limited advertising, the interest so far has surpassed projections — and in the case of Oakbrook, membership has tripled.

The idea behind the new company is to make golf more accessible to all ages and walks of life, according to Cucciardi. “Golf has been viewed as an elitist sport. We want all people to be comfortable and come in as they are to enjoy the facilities,” he said.

He said the partnership with the Moores is exciting because of the similar visions they have. Ryan Moore, who grew up in Puyallup, is known for “doing things his own way” and declining blank sponsorships, endorsing only products he liked and wanted to use. Moore went from being the top junior golfer in the world in 2001 to winning a PGA Tour event, the Wyndham Championship in Greensboro, N.C., in 2009.

“He has not had a stereotypical career,” Cucciardi said. “That’s what we want to do here, do things differently.”

By the end of 2012, Cucciardi expects the company to have three more clubs in the Puget Sound area, and then expand around the country after that, with the help of current and new investors. The first market outside of Puget Sound is likely to be the Las Vegas area, where Moore. A new tier will be added to the memberships once RMG Club expands to new markets.

“We want to provide our members with the opportunity to golf and travel,” Cucciardi said. “Six or seven clubs is an ideal number (per market) but we don’t want to saturate it.”

For more information about RMG Club, go to www.rmgclub.com or www.ryangolfmoore.net; for McCormick Woods Golf information, go to www.mccormickwoodsgolf.com.

Standup paddling gains wind in Kitsap region

Rodika Tollefson — Sat, 05 May 2012 02:34:54 +0000

Golf And Recreation

Lee Murray has been surfing since the late 1960s, starting out at age 12 in California. But several years ago, Murray discovered standup paddling — and that was pretty much the end of his surfing days. Now, he no longer has to wait for the right wind and other conditions, and can go out on the water any time.

“The paddle completely changes it. Surfing is a difficult sport and windsurfing is the same, because you have to learn so many things,” he says. “Flatwater paddling is the easiest sport to learn that I’ve seen. It’s simple — you need a board, a paddle and a swimsuit.”

Murray was so hooked into his new hobby, last October he decided to start a new business in downtown Gig Harbor, Lee’s SUP.

An experienced entrepreneur and former commercial fisherman, he set up a small shop on the waterfront to rent SUPs and sell gear and equipment. As the warm weather kicks in, he hopes to attract current and new paddlers, as well as surfers looking for a different kind of challenge.

“A lot of people with long history on the water are finding it perfect because you don’t have to wait for the right conditions,” he says. “It’s like having a bike — you can always ride a bike.”

Standup paddling, or SUP, requires a special surfboard that is usually 10 to 18 feet long, as well as a special paddle used to propel the board. An ancient sport, it re-emerged in Hawaii about 50 years ago and has been exploding in popularity in recent years. The more serious paddlers have several boards for different conditions, and put their skill to the test at various races.

“It’s a great way to get on the water and get exercise. It’s low-impact and relatively easy,” says Forrest Wells, business manager for Port Gamble’s Olympic Outdoor Center, which sells and rents SUP gear.

Wells, who’s been a surfer for more than 20 years and took up SUP about five years ago, says SUP’s advantages include a better view of the water and surroundings because of the standing position. It’s also a good way to get a full-body workout.

“It’s popular among people who are fitness-oriented,” he says. “And it’s versatile — you can do so many things on a standup paddleboard that makes it desirable for people. It’s also fun and engaging.”

Beginners don’t need any water experience and can use a wider board, as well as paddle on their knees to get a feel for the board. Around West Sound, there are plenty of areas for SUP fun, from Gig Harbor’s waterfront and the Purdy Sandspit to Eagle Harbor and Liberty Bay on the north end.

Purdy is one of Murray’s favorite local spots — he likes to paddle under the bridge, going with the current into the wind and then turning around and riding the swell into the current. The beauty of SUP, he says, is that there’s no limit to the challenge because experienced paddlers can always find something new to try. And for those who miss the waves, there’s still the opportunity to surf them.

“I’ve been doing it since 2009 and I’m noticing that I’m getting better in rough water. There’s a ton more to learn,” says Murray, who owns several boards and races as many as 30 times a year, frequently placing in top spots not only in his 50-plus age category but also overall. He takes the affair seriously, too, when he chooses his paddling spots: His reading includes a tides book, Puget Sound charts and marine biography books.

For paddlers planning to venture out farther and longer in the open waters, Wells suggests gearing up accordingly. “We definitely recommend thermal protection as risks go up and you’re out there more,” he says, adding that he also encourages people to wear a special leash that helps retrieve the board, especially in windy weather.

Olympic Outdoor Center added SUPs about two years ago and so far, Wells says, the main interest has been in rentals. But as more people experience standup paddling, he expects board sales to pick up as well. He says at the races, most paddlers are men in their 20s and 30s but about half of renters are women, and many paddlers are in their 50s and 60s.

“A lot of people are still in the exploratory stage,” he says. “It’s slowly building momentum.”

State endorses lifelong learning benefit for workers

The KPBJ — Sat, 05 May 2012 02:30:43 +0000

Human Resources

Washington has become the first state in the nation to formally recognize a voluntary employee benefit program that encourages workers to continue their education with assistance from their employer.

Senate Bill 6141 legally defines Lifelong Learning Accounts (LiLAs), which are savings accounts funded through matching employer-employee contributions and dedicated to covering the education costs of the participating employee. The law builds on a pilot program that has operated since 2009 with employers in Thurston, Lewis, Pacific and Grays Harbor counties.

The bill does not provide any state funding but will make it easier for the program to secure additional private support and expand to more employers statewide.

Smart employers accommodate needs of parents in the workplace

Julie Tappero — Sat, 05 May 2012 02:29:21 +0000

Human Resources

May and June always put a spotlight on parents, as we celebrate Mother’s Day and Father’s Day. Many of our co-workers are parents, and we all realize that although their children don’t generally come to work with them, they are still parents during their work-days. Our policies, practices and work-place culture matter to these employees.

According to the BLS, 34.5 million families in the U.S. in 2010 had children, and 87 percent of them had an employed parent. Seventy-one percent of mothers with children under 18 were in the labor force, and 64 percent of those had children under the age of 6. Both parents were working in 58 percent of the families. These statistics demonstrate that parents are clearly a factor in our workplaces!

We know that when issues affect large segments of the population, legislation and regulations follow. This is definitely true when it comes to parents and the workplace, beginning with the pregnancy.

The Pregnancy Discrimination Act forbids discrimination based on pregnancy in any employment decision. You cannot refuse to hire someone because they are pregnant, nor can you refuse to hire someone because you are concerned they might get pregnant. You also cannot terminate someone due to their pregnancy, or consider it in any decision related to job assignments, promotions, layoff, training, benefits, etc. Just remember, more than 50 percent of our workers today are female, and our government recognizes that pregnancy is a normal and expected part of a woman’s life.

You are required to give your employee any medical leave prescribed by her health care provider for her pregnancy. This does not need to be paid time off, unless your leave policies provide for paid sick time. If she is temporarily unable to perform her job as a result of the pregnancy or childbirth, you must accommodate her as you would any other disabled employee. Some of these impairments may even fall under the Americans with Disabilities Act.

The laws on this subject do vary for companies by size. For companies of 50 or more employees, rules governing the Family & Medical Leave Act (FMLA) apply, both to mothers and fathers, as well as for adoptions and foster parents. For very small companies (fewer than eight employees) some exceptions do apply. For more detailed information, you can visit www.lni.wa.gov or the Washington Human Rights Commission at www.hum.wa.gov.

Don’t be caught unaware of your employees’ rights! In 2011, there were 5,797 complaints of pregnancy discrimination filed with the EEOC, and over $17 million in fines were levied against corporations.

A lot has been written recently about Seattle’s new ordinance protecting the rights of breastfeeding mothers. Do nursing mothers have any rights in their workplaces outside of Seattle? They answer is yes, they do — sometimes. Washington state law does not protect nursing mothers in their workplaces, although it does have a program to promote and support them by allowing employers to follow certain guidelines under which they can advertise their workplaces as being “infant friendly.”

On the federal level, the day Congress passed the Health Care Reform Act, nursing mothers garnered protection in the workplace if their employer has 50 or more employees. In these cases, employers must allow nursing moms to take reasonable break times during work to express milk. The employee may take as many of these unpaid breaks as are necessary. The employer is responsible for providing a private non-bathroom space for the employee where she will not be interrupted. The Department of Labor’s Wage and Hour Division is responsible for enforcing this law, and more information can be found on their website.

If you’ve been a parent you know that children get sick, and children in day care seem to pass illnesses around. As employers, we have to accept that our employee-parents will have sick children that they occasionally must take care of. The state’s Family Care Act, which applies to all employers regardless of size, says that if you provide paid time off to your employees, you must allow them to take that time to care for a sick child, without disciplining, demoting or discharging them. The definition of a parent is liberal, applying to anyone who is in a position to parent a child (including step-parents, legal guardians, foster parents, etc.), regardless of the child’s age, meaning it extends to adult children.

While I’ve only touched on some of the issues and protections for parents in the workplace, it’s obvious that mothers and fathers are a large demographic that have the attention of our lawmakers. We all realize that mothers are in the workforce to stay, and they are our co-workers, bosses and business owners. How does this affect the non-parents in our workplaces?

According to the BLS, in 2010 almost 59 percent of the population with no children under the age of 18 were participating in the workforce. This means we must find ways to provide the necessary work/life balance to parents, and meet the legislated requirements, while reducing the potential conflicts that may result between working parents and employees that do not have children.

My bachelor brother has long complained that when assignments arise requiring someone to be out of town for extended periods of time, or to work late or on weekends, he inevitably draws the short straw. The perception is that it’s easier for him, since he doesn’t have a family at home. His argument is the opposite: since he doesn’t have anyone else at home to pick up the slack in his absence, it’s actually harder on him. In some companies, employees derive more value from benefits packages if they have a family. Working parents often seek flexible work arrangements and take unexpected days off, requiring their co-workers to pick up the slack in their absence. It is easy to see how this can become a source of conflict.

Smart businesses will recognize that all employees, regardless of their family status, require work/life balance, and that “families” can be defined in many different ways. Efforts need to be made to accommodate all reasonable requests, and across-the-board fairness has to be our goal. Benefit packages today can be designed with flexibility and choice, ensuring that family situations don’t result in inequality.

In today’s world, with grandparents bringing up their grandchildren, more couples choosing to be childless, women delaying motherhood, more single parents, more working parents, the redefinition of families, and on and on and on, businesses have to change with the changing times. We must attract and retain the best talent available in order to compete in this ever-changing world, and that means our work family must be a diversely happy one.

Group forms to seek affiliation for Port Orchard in Main Street program

The KPBJ — Sat, 05 May 2012 02:22:01 +0000

Local volunteers have announced the creation of a nonprofit organization dedi-cated to the revitalization of Port Orchard’s historic commercial district. Known as the Historic Port Orchard Revitalization Asso-ciation, or Revitalize Port Orchard, the group filed for affiliate membership in the Washington State Main Street Program.

“Main Street programs have successfully helped to kick start the revitalization efforts in over 1,200 communities in 40 states across the country,” said Shannon Childs, interim board president of the new group.

“After years of studies and talking about the rejuvenation of our downtown core, a group comprised of business and property owners, public officials and citizens have decided that we should take action, and not just continue to wait.”

The group’s interim board of directors includes City Council member Cindy Luc-arelli; Kim Punt, owner of an insurance agency on Bay Street; local attorney Tracy DiGiovanni; and Rita Mitchell, a property owner in the downtown area who has prev-ious experience working with nonprofits.

To become a Main Street community, a nonprofit organization specifically desig-nated for revitalization efforts must apply for membership, attend training, and meet a stringent set of criteria prescribed by the National Main Street Trust and Washing-ton State Main Street Program. Partici-pating organizations become the drivers for federal, state, and local funds that can be drawn in for infrastructure investment, building and façade improvement grants, and promotions and events that attract tourists, businesses and investors.

The Port Orchard group received $5,000 from the Cedar Cove Association as seed money for the project.

Childs said if the group advances to the second membership level as a Main Street Tax Incentive Program Community, it will be able to direct a portion of state B & O taxes paid by participating businesses to be invested directly in their hometown.

Founding members of the Historic Port Orchard Revitalization Association will attend the Main Street state conference in Chelan this May.

Energy Week blends science, engineering, entrepreneurism

Tim Kelly — Sat, 05 May 2012 02:19:42 +0000

Environment

It was part science fair, part home show and, in a way, part group employment interview.

About 75 Bremerton High School students participated in Energy Week held April 18-20. They were divided into teams tasked with designing a “home of the future” that uses alternate sources of energy such as solar, wind and geotherman; and marketing their model to prospective investors — community members who volunteered to judge the student presentations.

Besides challenging the students to apply what they’re learning in their Green Tech, Intro to Engineering and AP Environmental Science classes, each group also built a windmill and vied to see whose design could lift the most weight using wind power.

The program was put on by Washington Business Week, which has been offering its business training programs for high school students since the 1970s, both as weeklong summer camps on college campuses and in-school programs.

From the original Business Week program — attended in the past by some of the volunteers who worked with the Bremerton students as “company advisers” — the offerings have been expanded to include career pathways in health care, construction and manufacturing.

Energy Week was added last year as a summer session at Central Washington University in Ellensburg, and it was presented for the first time as an in-school program at Bremerton. The facilitator, Herman Calzadillas of Washington Business Week, told students they would be studying “how energy is created, consumed and conserved.”

The program was sponsored by Puget Sound Energy, and Vice-president of Corporate Affairs Andy Wappler — a former Seattle TV weatherman and certified meteorologist — gave an engaging keynote address on the first morning of the three-day session.

He discussed with students the importance of developing “greener” sources of energy, but also the the critical need to understand the trade-offs between energy, environment and economics that are involved.

Wappler also said that there will be ample job opportunites in the energy indus-try for students like the ones in the Career and Technical Education curriculum at Bremerton High School.

“We’re going to need some of those folks to come work for us,” he said after his talk.

PSE recently brought its third wind farm online, in Garfield County in the Palouse region of southeastern Washington, and Wappler said the three facilities can supply about 9 percent of PSE’s electricity. Wap-pler said the biggest challenge is finding a way to store electricity generated by wind turbines.

“If you solve the energy storage problem,” he told the students, “you’ll be the next Bill?Gates.”

Whether or not there’s future billionaire entrepreneur in the Energy Week group, the students will gain a more enlightened perspective on how their homes and schools are lighted and heated.

“I don’t think you’ll ever flip that light switch again and not think about it a little differently,” Wappler said in concluding his talk with the students.

New tennis and community center proposed in Poulsbo

The KPBJ — Sat, 05 May 2012 02:13:17 +0000

A Bainbridge Island man is looking for partners to invest in his plan to develop an indoor tennis, fitness and community center in Poulsbo.

Chad Haight, after more than 30 years working in publishing at Seattle Weekly and Sasquatch Books, said he is trying to “reorient my life and work to the Kitsap side of Puget Sound.” He plans to introduce himself as a new member of the Poulsbo Chamber of Commerce and explain his plan for the Kitsap Tennis & Community Center at the chamber’s monthly luncheon on April 11.

According to his business plan, the complex he envisions would have six to eight indoor tennis courts, full workout and fitness facilities, and a clubhouse with meeting and activity rooms for holding special events. His plan calls for a capital investment of $1.5 million to $2 million.

The proposal also calls for creating the tennis center in association with the Clearwater Casino & Hotel, whose guests would have fee-based access to the courts.

However, a representative of the Suquamish Clearwater Casino Resort has told the Kitsap Peninsula Business Journal that “While Port Madison Enterprises is a proponent of economic development in the region, the enterprise is not considering any partnerships or proposals for indoor tennis or fitness centers in North Kitsap at this time.”

Haight expects the central location in Poulsbo would enable the center to draw members, who will have partial ownership in the club, from all around North Kitsap.

A primary focus of the tennis center would be on youth programs, including sponsoring United State Tennis Association tournaments and leagues.

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State Transportation Commission to adopt new toll rates for Tacoma Narrows Bridge

Michelle Malkin will be featured speaker at state Republican Party's convention

Mortgage-aid revisions paying off for bankers, some borrowers

Next Washington C.A.S.H. business training sessions include first classes in Mason County

AWB weekly column — Roll On Columbia!

State Rep. Jan Angel receives Guardian of Small Business award

Bremerton sewer pipeline replacement project will close 11th Street

Consumer watchdog weighs limits on mortgage fees

Google, Facebook will both be front and center in 'social search'

Retail Federation welcomes national strategy to spur international travel and tourism

Subscribers switching to no-contract phone plans

Free seminar will discuss how life insurance can help in planning charitable giving

Google releases 'Spy-Fi' report after FOIA request to FCC

Kitsap County to present draft environmental documents on UGA remand

Why Gas Prices Are Rising

Report: Tax credits could help small businesses provide health coverage for workers

Kitsap Mental Health Services among first to get innovation award funds

2012 Candidate filing period begins May 14 in Kitsap County

Construction to begin on Bainbridge Island's Senior Community Center

Kitsap Mall offers new mobile app for shoppers

Rates going up for Puget Sound Energy electric and natural gas customers

Study: Retail workers' turnover offers some hope

Carmichael retiring as president, CEO of Kitsap Bank

A tale of 2 US employment surveys

Costco moves to increase its share of online retail

April retail sales worst since 2009; Costco misses, Nordstrom tops forecasts

Apparel-swapping millennials eschew stores and malls

Researcher's response: Union-supported, anti-Walmart study heavily biased, misguided

Some dams should come down, but not Snake River dams

Organic crops worth $244 million to state's farmers

Online tax law in Illinois ruled unconstitutional

Amazon.com agrees to begin collecting Texas sales taxes

Washington Retail Association supports closing the Internet tax loophole

Developer offering smaller luxury homes at Canterwood in Gig Harbor

Visitor & Convention Bureau hosts tourism season kickoff event

2012 Ford Fiesta — A small car standout

Land Rover sales up 20 percent for 2011

2012 Audi A7 — A luxurious hatchback

Honda names Leviton as EV charging partner

A 2012 roundup of local golf courses and country clubs

Gateway Christian Schools hires North Mason Chamber CEO

Bremerton Figure Skating Club to host PNIC regional competition

McCormick Woods Golf changes ownership model

Standup paddling gains wind in Kitsap region

State endorses lifelong learning benefit for workers

Smart employers accommodate needs of parents in the workplace

Group forms to seek affiliation for Port Orchard in Main Street program

Energy Week blends science, engineering, entrepreneurism

New tennis and community center proposed in Poulsbo