Olympia Business Watch

Brunell: The human spirit is our greatest asset

Jason Hagey — Wed, 22 May 2013 14:28:37 -0700

Wounded soldiers. The Boston Marathon bombing. The Cleveland kidnappings.

With the steady stream of bad news, it would be easy to despair for the human condition, AWB President Don Brunell writes in his weekly column.

And yet the stories of courage, strength, determination and hope told by the survivors of those tragedies and others serve as a powerful reminder of the indomitable human spirit.

Brunell recounts a few examples, including Army Sgt. Brendan Marrocco. Marrocco, who lost his arms to a roadside bomb in 2009, recently underwent a 13-hour double transplant surgery.

Issaquah native Adrianne Haslet, a professional dancer, lost her left foot in the Boston attack. She's vowing to dance again and run the marathon next year.

And the three women kidnapped as young girls in Cleveland and held in captivity for a decade are showing awe-inspring strength and presence of mind.

"We face many challenges today," Brunell writes, "but rather than think of ourselves as victims, we should emulate those who confront tragedy and violence with courage, refusing to be beaten, determined to prevail."

Oil extraction, wind energy, cattle, hay, wheat and cotton fields live together in Sweetwater, Texas

Don Brunell — Fri, 17 May 2013 02:56:08 -0700

Deep in the heart of Texas, oil, wind, cattle, wheat, hay and cotton live together. Much of rural Sweetwater's success comes from deep in the ground and high in the sky. In the future, it may be even deeper as oil and gas fracking takes hold.

Farmers draw water from wells to irrigate cotton and hayfields, wheat and provide drinking water for people and livestock. In the middle of fields, there are traditional oil wells pumping crude from the Permian formation at levels much deeper than water. That oil production dates back to 1921.

Traditional crude is extracted from 2,500 to 8,500 feet below the Earth's surface. Water wells average about 600 feet well above oil layers. The Cline formation is roughly 9,500 feet underground.

Both live in harmony. They have for years. That harmony employs people and provides food and energy for our nation.

High in the sky are hundreds of wind turbines. The Roscoe Wind Farm is one of the world's largest capacity wind farm with 627 wind turbines and a total installed capacity of 781.5 MW is the state's largest and many of the towers are in the middle of irrigated cotton and hay fields, wheatlands and pastures filled with cattle. The project cost more than $1 billion and provides enough power for more than 250,000 average Texan homes.

As for the future, Texas is poised to more than double daily oil production by 2020, surpassing a 1972 record with surging output from hydraulic fracking. As with traditional oil production, Texans believe they can using fracking to extract new oil without harming their tradtional farming.

The Cline is thousands of feet underground in a roughly 10-county swath, is just one of many little-tapped shale formations in Texas and across the nation, geologists say. That means the potential for oil and gas discoveries is theoretically huge, and the reason is technology. The rock-breaking process known as hydraulic fracturing, coupled with the ability to drill horizontally underground, has allowed drillers to retrieve oil and gas from previously inaccessible areas.

Passing through Sweetwater, northwest and central Texas, there are visible signs that technology is working for people, livestock, energy and food production.

There are tradeoffs, but they can and do happen safely. Applying our increasing knowledge in science and technology is key to feeding our world and providing jobs for our families.

Don C. Brunell, President (DonB@awb.org)

Whatta Week so far: Boeing resumes 787 deliveries and Airbus rolls out A-350, the 787 competitor

Don Brunell — Thu, 16 May 2013 03:42:43 -0700

From the Seattle Times: Boeing is delivering 787s again after a four-month halt while it fixed problems that led to smoldering batteries. Boeing announced a delivery on Tuesday to Japan’s All Nippon Airways.

Airlines have been slowly resuming flights. Ethiopian Airlines was the first to get the plane back in the air, on April 27. United Continental Holdings Inc. is set to resume 787 flights again on Monday.

The Drum reports that Qatar Airways has resumed scheduled flights of its fleet of five Boeing 787 Dreamliners today, and is resuming scheduled flights to Australia.

Meanwhile, The International Business Times reports the Airbus A350, the European planemaker’s newest product and the direct rival of the Boeing 787, made its first official appearance on Monday, when the first completed airplane emerged from the paint shop at a Toulouse, France, assembly plant.

Airbus, a unit of EADS (EPA:EAD), kept things low-key, opting for an informal event rather than the highly choreographed ceremony known as the “rollout” that typically heralds a new jet's arrival.

Boeing, which assembles the 787 in Everett and Charleston, S.C., has nearly 900 orders for its 787. Airbus has booked 617 orders for the A350 so far.

Plan to tax bottled water flummoxes

Don Brunell — Wed, 15 May 2013 01:13:00 -0700

Jim Connelly is wearing dark blue shirt. Pictured with him are his wife, Tammy, their two daughters and his parents, Dick and Lola. Photo by Dan Brunell

Last week, The Spokesman Review carried the above mentioned headline to introduce Jim Connelly's op-ed. Jim and other northwest bottled water company leaders are opposing reinstating the sales tax on bottle water. That tax was overwhelmingly repealed by voters in November 2010.

Lawmakers currently meeting in special session in Olympia are considering reimposing the sales tax on water to balance the state's budget.

Connelly wrote: "Washington consumers overwhelmingly oppose taxes on their food and beverages, including bottled water. Look no further back than November 2010, when voters – through a ballot initiative – resoundingly rejected a bottled water sales tax implemented earlier that year. So why are they at it again?"

"Bottled water is regulated as a packaged food product and as such is currently exempt from Washington’s sales tax. Voters have already made it clear that it should stay that way because they don’t want their food taxed."

Lodi Water Company is owned and operated by Jim and Tammy Connelly and has been serving Spokane and the greater Inland Northwest for 17 years. Nestled in Northeastern Washington's Colville Valley, Lodi Water Company started bottling its natural artesian water in 1996 on the family ranch owned by Lola and Dick Connelly (hence LODI) just north of Chewelah, Washington.

Brunell: Who says Congress and the president can't move quickly?

Jason Hagey — Tue, 14 May 2013 10:41:33 -0700

Congress and the president can make things happen quickly when they want to, AWB President Don Brunell writes in his weekly column.

Exhibit A is their rapid response to constituent outrage over the FAA's decision to furlough 10 percent of the nation's air traffic controllers each day in response to the federal budget cuts known as the sequester.

It created an upheaval at airports across the country, but not for long.

A bill to put air traffic controllers back to work whisked through Congress and flew into the White House for President Obama's signature.

The speed with which lawmakers responded reminded Brunell of 1973 when Congress and President Nixon -- facing the prospect of not watching their beloved Washington Redskins on television because of an NFL-imposed blackout -- required just three days to approve a bill lifting the blackout.

The same kind of response is what's required to head off the coming train wreck that is Obamacare.

"Our struggling economy, crushing debt and mounting costs of Obamacare are vastly more important than an NFL television blackout," Brunell writes. "It's time for politicians in Washington, D.C. to stop their bickering and finger pointing and act quickly before it's too late."

President Nixon poses with the Washington Redskins football team, November 1971. Oliver Atkins photograph collection, George Mason University, via The National Archives.

Spokane mayor: with the right attitude of service, government can be a partner

Brian Mittge — Wed, 08 May 2013 10:11:11 -0700

Spokane Mayor David Condon has had to do some explaining about his statement that the job of City Hall is not to create jobs.

Spokane Mayor David Condon speaks at the AWB's Spring Meeting in Spokane on May 8, 2013.

“Our job is to create the environment so you can create jobs,” Condon told a group of the state’s business leaders during a breakfast meeting of the AWB’s board of directors Wednesday in Spokane. “Quite frankly, a city government growing jobs is the wrong answer, folks.”

Condon, in his second year as mayor, came from a career of military service and running a variety of family businesses. As a result, he's had to adjust to the meaning of “R&D” in city government. For mayors, it’s not research and development – it’s rip-off and duplicate, he joked. In that vein, he admits to stealing the best ideas from other cities as he works to make Spokane the “city of choice” for people and businesses.

Condon said his most humbling moment so far as mayor was when a Tri-Cities official (Condon declined to say which city) asked for details to give to his own mayor about how Spokane has improved its city services.

The city has reduced the average time for permit approval from 52 days to 30, Condon said. City regulators have moved out from behind counters and now sit at desks with those they regulate. Major projects have a dedicated project manager as a point of contact, rather than having applicants bounce from person to person.

Regulations are necessary, he said, but efficient and responsible city government can be a partner rather than an obstacle.

“We realize any delay in time is cost,” he said. “We went back to the values of the city of being affordable, being flexible.”

Cities, like businesses, he said, have to look at their revenue stream –- taxes –- and their costs. Cities might be tempted to think that citizens and businesses have no choice but to pay increased fees and taxes, but Condon said they do have a choice. They can leave, or choose not to locate in his city.

“We facilitate economic opportunity, but opportunity is not a guarantee,” Condon said, noting that while not every business will succeed, that risk is the American way. “I am humbled by those of you who take that risk every day.”

AWB honors Sonntag, Conant and Vander Pol during Spring Meeting

Jason Hagey — Tue, 07 May 2013 20:48:04 -0700

As state auditor, Brian Sonntag could make government officials nervous. He introduced performance audits to state government, saving money for taxpayers but also shining a light on problem areas.

So it was easy to select him as the recipient of this year's C. David Gordon Award, given annually in recognition of Washingtonians who distinguish themselves in service to the citizens of the state of Washington.

C. David Gordon served as AWB president from 1955-64 and 1966-79, and is AWB’s Honorary President for Life.

"As we looked around, we said, 'You know, the one we really miss in state government is Brian Sonntag,'" AWB President Don Brunell said Tuesday as he introduced Sonntag and his wife, Jann, to the audience at AWB's Spring Meeting in Spokane.

Sonntag, who retired earlier this year after two decades as state auditor, thanked Brunell and AWB, saying the organization was one of the few that he could trust when he arrived as "the new guy" in Olympia in 1993.

"I don't need to tell you what a great organization this is," Sonntag said. "You don't just support the communities of Washington, you are the communities of Washington."

AWB also honored Don Conant, general manager of Valley Nut & Bolt in Olympia, and Ed Vander Pol, co-owner of Oak Harbor Freight Lines.

Conant received AWB's Judy Coovert Award, which honors excellence in volunteerism to the association. It is named for Judy Coovert, a longtime AWB supporter and active member of the AWB board. Coovert is co-owner of Burien’s Printcom Inc.

For the last several years, Conant has immersed himself in one of the more complicated and controversial public policy issues of our time: health care. By serving not only on AWB’s board of directors, but also on the board of the state’s new health benefit exchange, Conant has provided valuable and unique insight, giving both business and government a window into each other’s worlds.

Vander Pol received AWB's Briggs Award, presented each year to an AWB member who continues to give back to his or her community. The award is named for the late Bruce A. Briggs, a longtime AWB member and founder and owner of Briggs Nursery in Elma.

Oak Harbor Freight Lines first began in 1936 when John and Gus Vander Pol purchased Oak Harbor Transfer for $600 cash. Their younger brother, Henry, joined the business in 1937, purchasing another carrier, Oak Harbor Freight Lines. In 1974, Henry purchased the company in full — which is when his sons, Ed and David, joined the business.

Today, Oak Harbor is one of the most widely respected carrier lines, both in terms of its carrier service and commitment to the communities it touches through its carrier fleet.

Over the last 15 years, Ed Vander Pol has volunteered the company’s service to bring produce from farms to the cities. Oak Harbor Freight routinely donates vacant space in its empty trailers traveling across California, Idaho, Nevada, Oregon and Washington to transport a million pounds of produce a year. This helps other AWB member companies like Stemilt Growers and National Frozen Foods, ship surplus fresh vegetables to people in need, rather than let them rot in the fields or packing sheds.

AWB honors 11 members with 2013 Community Service Awards

Brian Mittge — Tue, 07 May 2013 20:30:28 -0700

The AWB recognized 11 businesses and organizations Tuesday that have established strong, ongoing ways of improving and giving back to their communities.

The 14th annual presentation of the Community Service Awards was part of AWB's Spring Meeting in Spokane. Fluor Federal Services, Inc., sponsored the awards.

"We recognize our members for volunteerism and their contribution to their communities," said AWB President Don Brunell. "We honor members of all sizes and types statewide from our more than 8,000 members."

The recipients of the awards are:

Revitalization & Development

The McGregor Company, Colfax

The best employers encourage their workers to give back to the community. It’s a rare case, however, when such a volunteer commitment actually puts a community back on the map. And yet that’s what happened in tiny LaCrosse, a farming community 30 miles south of Colfax, Whitman County. The town suffered a series of setbacks starting with the loss of its only grocery store in 2009. In 2011, its only bank closed. Its only restaurant closed a year later. And a fire destroyed its hardware store. Now, thanks to an extraordinary voluntary effort led by McGregor Company owner Alex McGregor, the town has a new grocery store, a Sterling Savings Bank branch and a new restaurant. McGregor, along with several of his employees and other concerned citizens, formed a non-profit organization called LaCrosse Community Pride to spearhead the effort — and prove wrong anyone who thought LaCrosse was dying.

Education

Artitudes Design, Inc., Issaquah

Artitudes Design has taken what its employees are passionate about — art — and use it in a way that meets a growing need in local elementary school classrooms. Beginning in 2007, employees from the Issaquah-based design agency started volunteering their time as art docents, going into classrooms and teaching art to students. Team members create sample art projects, write lesson plans, purchase supplies or use recycled materials, coordinate with an elementary school and then go into the class and teach the lesson. Since the program started, they have reached more than 20 classrooms and 600 students.

Tyson Foods, Pasco

The people of Tyson Foods understand that their actions and decisions have an impact, and that serving the global community is consistent with the company’s core values. That’s why Tyson employees work with hunger relief organizations, help with disaster recovery and contribute to organizations that invest in young people. In Pasco, the team at the Tyson Fresh Meats processing plant is a contributor to the Boys & Girls Clubs of Benton and Franklin Counties, giving both time and money to the clubs throughout the year, and cooking and serving hamburgers at the end-of-the-year picnic. Employees also support Junior Achievement, typically through monetary donations and staff contributions in local classrooms. This year, however, a member of the management team will teach entrepreneurial skills to elementary students.

Education — Continuous Commitment

Fluor Federal Services, Inc., Richland

Fluor Federal Services underscored its commitment to giving back to the community last year by donating laptop computers to 50 students at Columbia Basin College. Fluor employees stripped the computers of data and reloaded the laptops with Microsoft operating software and antivirus systems, a donation worth an estimated $30,000 in total value. "Part of my job is helping students in need,” said Columbia Basin College President Rich Cummins. “If you’re a student without a laptop, you’re in need.” In addition, Fluor employees serve on the boards of organizations such as the Delta High School STEM program, Mid-Columbia Reading Foundation, Columbia Basin Industries, YMCA, Junior Achievement and United Way, and the company gave backpacks loaded with school supplies to 100 students.

Helping People in Need

Ryan, Swanson, & Cleveland, PLLC, Seattle

Ryan Swanson considers itself a “human” law firm, which means that employees are not only encouraged to participate in civic activities during their workday, but they are also encouraged to pursue their individual interests outside of the workplace. This results in a well-rounded workplace that ends up contributing to causes its employees believe in. In fact, nearly all of its charitable contributions are the result of personal involvement. And its contributions are significant: Compared to other small companies, Ryan Swanson ranks in the top 15 in terms of funds donated in 2012. The donations are organized by the firm’s Charitable Giving Committee, which established the theme “Think Local, Act Local,” to emphasize its commitment to helping small, local organizations that often lack the resources of a national organization.

UPS, Seattle

UPS does more than deliver packages. Its drivers and corporate leaders give millions of dollars and thousands of hours of time focused in four areas: community safety, diversity, environmental sustainability and nonprofit volunteering. UPS is the only company to have given more than $1 billion to United Way during its more than three-decade partnership. UPS executives help lead such organizations as the Susan G. Komen for the Cure, Boys and Girls Clubs of America, Mary Bridge Children’s Hospital, and the Seattle Metropolitan Urban League. In 2012 UPS workers in the Northwest collectively donated more than 45,000 hours (the equivalent of five years, 24/7) to their local communities. In addition, during October – UPS’s Global Volunteer Month – more than 300 Northwest District UPSers gave more than 5,400 hours in sorting and gathering food, removing invasive plans and walking for the American Cancer Society, among other projects. Company donations to charity in 2012 totaled $97.5 million -- $3.3 million in the Northwest alone.

Projects That Mobilize People into Action

AB Washington Beef Processing Plant, an Agri Beef Co., Toppenish

Agri Beef Co. has long been one of the most dedicated supporters of Second Harvest, the nonprofit organization that fights hunger throughout the state. Recently, the company took its commitment to an even higher level by pioneering Beef Counts, a program that mobilized the beef industry to provide free beef for food bank clients. Protein-rich foods play an important role in the development of muscle tissue for children and adults, and they help maintain healthy blood sugar levels. Yet they make up just 4 percent of Second Harvest’s inventory. Thanks to the program initiated by Robert Rebholtz, Agri Beef president and CEO, and Rick Stott, executive vice president, the Washington beef industry now provides thousands of people with beef products, something that low-income food bank clients had come to view as a luxury.

Projects that Mobilize People into Action — Continuous Commitment

MacKay Sposito, Vancouver

2012 was a year of change for MacKay Sposito. Giving back to the community has long been a priority for the civil engineering firm, but last year they became more focused by asking the question: “What are we passionate about, and what does our community need?” The answer to both questions was support for veterans, active military troops and their families. Last year, MacKay Sposito launched a variety of initiatives designed specifically to help military members, veterans and their families including scholarships to Clark College and the Oregon Institute of Technology for veterans or soldiers seeking an education within their industry. Two other programs provide gift cards for gas and groceries to military families in need and care packages for troops.

Recognizing Volunteerism

Amy’s on the Bay Restaurant & Bar, Port Orchard

Amy’s on the Bay has been invested in the community since the day it opened nearly seven years ago. The Port Orchard restaurant takes part in numerous fundraising activities every year, including a benefit dinner in partnership with Kitsap Bank for the Juvenile Diabetes Research Foundation; a pancake breakfast to benefit the local help line; and a Tip-A-Cop fundraiser for the Washington Special Olympics in partnership with the Port Orchard Police Department. The restaurant also sponsors the Festival of Chimes & Lights, helps coordinate and donates its chef to the Manchester Salmon Bake, a benefit for the Manchester Library, and at least every other month Amy’s hosts “take-overs” for nonprofits or local families with a financial need.

Youth Organizations

The Moyer Foundation, Seattle

Camp Erin was established in 2002 as a single location in the Pacific Northwest where children ages 6-17 could go following death of someone close to them. Since then, it has grown into the largest national network of bereavement camps with 40 locations, including a camp serving children in every Major League Baseball city. To date, it has helped more than 9,700 grieving children and teens find hope and healing with the help of more than 9,000 volunteers. The camp is one of the ways that The Moyer Foundation, founded in 2000 by former Seattle Mariners pitcher Jamie Moyer, helps children in distress. In 2007, the nonprofit launched Camp Mariposa, a free program for children aged nine to 12 who are living with an addicted or co-dependent family member. The Moyer Foundation has grown into a national organization, but it remains committed to helping children in the Pacific Northwest.

Corporate Citizenship

Regence BlueShield, Seattle

Regence BlueShield has proudly supported nonprofit organizations throughout Washington for nearly 100 years. But its support has become more focused in recent years following a consultant’s report that determined that although Regence had been generous in its corporate philanthropy, it was ineffective. The reason: its giving consisted of small amounts spread across too many nonprofits. Since then, Regence implemented a comprehensive, strategic giving program that makes a strong impact for local nonprofits. The program includes working with select nonprofits to provide support for “game-changing” impact for them and the people they serve. In addition, employees are rallied every fall to give to an annual campaign that includes a 50 percent match, and Regence works to ensure that its corporate philanthropy strengthens existing business relationships and helps build new ones. Since the program was implemented in 2007, Regence BlueShield has collectively invested more than $6.8 million in the work of hundreds of nonprofits throughout the state and nation, and contributed hundreds of hours of employees’ time.

Say hello to three new state agency directors

Jason Hagey — Tue, 07 May 2013 18:39:24 -0700

Carol Nelson, Department of Revenue director, left, Dale Peinecke, Employment Security Department commissioner, center, and Joel Sacks, Department of Labor & Industries director, speak Tuesday at AWB's Spring Meeting in Spokane. Photos: Dan Brunell/AWB

The recently appointed directors of three state agencies -- Employment Security, Labor & Industries, and Revenue -- introduced themselves Tuesday to AWB members.

Dale Peinecke (Employment Security), Joel Sacks (Labor & Industries), and Carol Nelson (Revenue) joined in a Q&A panel led by Gary Chandler, vice president of government affairs, that touched on a variety of areas where government and business intersect, including taxes, workers' compensastion and workforce training.

Peinkecke and Nelson both emphasized their extensive business credentials -- Peineck spent the first 20 years of his career with Alcoa and another 17 years with aerospace companies, and Nelson had a long career in banking -- while Sacks spoke about the early part of his career attempting to reinvent government at the federal Occupational Safety and Health Administration.

All three pledged to work on ways to make government more efficient and to work together with business.

Sacks emphasized worker safety, noting that in average week, 1,900 people in Washington file a workers' compensation claim.

"From my perspective, that's too many injuries," Sacks said. "What can we be doing together to lower that number?"

Nelson said the Department of Revenue has become more efficient in recent years, taking on more work with fewer employees. One of her goals now is for it to become more consistent in the way officials administer tax policy.

Peinecke noted that he's still new to state government -- this is his first stint in state government. One of his goals is to find ways to get youth oriented toward careers.

That's something that AWB is also interested in, Chandler noted, adding that it's more difficult for employers to hire young people than it was years ago.

For Nelson, Peinecke and Sacks, the forum at Tuesday's meeting provided them a relaxed, informal setting in which to introduce themselves to business leaders.

Given the subject matter their agencies address, it won't be the last time they talk with each other.

Ecology director reveals what makes her lose sleep at night

Brian Mittge — Tue, 07 May 2013 17:55:14 -0700

Washington Department of Ecology Director Maia Bellon discusses her perspective on environmental protection and working with the business community as AWB Director of Governmental Affairs Gary Chandler looks on Tuesday afternoon in Spokane.

The directors of Washington’s departments of Ecology and Commerce pledged continued work to streamline permits and improve regulatory processes during a talk Tuesday afternoon at the AWB’s annual Spring Meeting in Spokane.

Gary Chandler, AWB's director of government affairs, held a panel discussion with Maia D. Bellon, director of the Washington state Department of Ecology, and Brian Bonlender, director of the state's Department of Commerce.

Both directors said Gov. Jay Inslee has made it clear that jobs and working cooperatively with the business community are priorities.

“I will tell you that he, in no uncertain terms, has told me that I must partner with you and your community,” Bellon said.

Bellon, appointed in February as director of the Department of Ecology, said although she is an attorney and enjoys the courtroom, she always prefers to broker agreements that help everyone understand one another’s concerns and move forward rather than resorting to litigation. Not everyone will get everything they want, she said, but sometimes that’s the best outcome possible.

She said one of the biggest worries she had when offered the director position, one that kept her up at night and almost prevented her from accepting the post, is the issue of modifying the state’s longstanding water quality standards. Bellon said the federal Environmental Protection Agency had given her a deadline of this Christmas, but that she pushed for more time to hold a full public process. As a result, the state now hopes to have a new rule in place by the end of 2014. AWB has been working with other member companies on that rule, which stands to affect not only businesses but every municipal water system in the state.

Bellon said any businesses having trouble should contact her or Ecology’s four regional offices. Communicate early about successes and improvements too, she said, noting work at Inland Empire paper to reduce water use, which potentially could create both opportunities to benefit from the “gold” of unused water rights and risk of eventually losing those unused rights if proper paperwork isn’t filed.

Brian Bonleder, director of the Washington Department of Commerce, speaks during the AWB's Spring Meeting Tuesday in Spokane.

Bonlender, a longtime Inslee aid, has led Commerce since January. He said that his office is working on ways to reduce health care costs for business.

“The states that get this right are going to have huge economic advantages,” Bonlender said.

He said Inslee has pushed to simplify regulations and “create paths of least resistance,” noting that the governor’s push for Lean management includes ongoing process improvement.

While expressing optimism that the state’s operations will become more efficient, Bonlender was more pessimistic about movement on L&I reforms anytime soon.

“As we all know, sides are rather entrenched,” Bonlender said. “I’m reluctant to set any high expectations, but I will commit, and I think it’s the responsibility for me as leading the Department of Commerce to engage my fellow department heads and governor on this issue and make sure they understand what these costs mean.”