BUILDING INSIGHTwww.BIAW.com

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EVP VIEWPOINTPRESIDENT’S PERSPECTIVE

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//BUILDING INSIGHT WWW.BIAW.COM

CRYSTAL CLEARWhy Hirst will impact all of Washington

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On the Cover: Home builders learn to tap into and train today’s largest workforce pool—the next generation.

TAKE THE CHALLENGELeadership positions at NAHB impact state, local industry

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Who We AreThe Building Industry Association of Washing-ton is the state’s largest trade association and represents nearly 8,000 member companies in the home building industry. Known as the “Champions of Affordable Housing,” BIAW is dedicated to ensuring and enhancing the vitality of the building industry for the benefit of its members and the housing needs of citizens. 2017 SENIOR OFFICERSPresident Ted Clifton, CGB, MCGP Skagit/Island Counties Builders Association

First Vice President Kevin Russell, MCGP North Peninsula Building Association

Second Vice President Ron Pelson Central WA Home Builders Association Treasurer Rick Hjelm, CGRMBA of Pierce County Secretary Debbi Boyd Olympia Master Builders Immediate Past President Dave Main MBA of King & Snohomish Counties

BIAW STAFFExecutive Vice President Art Castle Administrative Services Director Jan Rohila Director of Insurance ProgramsMark Shaffer Government Affairs Director Jan Himebaugh Building Insight questions/comments:Communications and Public Relations Director Jennifer Hayes Building Industry Association of WA111 21st Avenue SW | Olympia, WA 98501 (360) 352-7800 | BIAW.com

// PLAN TO ATTEND IBS IN ORLANDO 15

CONTENTS //

// HIRST FIX UNRESOLVED 10

CONTACT THE EDITORIAL STAFFWant to submit an article for publication? Have a story tip or suggestion? For consider-ation, please email jenniferh@biaw.com.

SEPTEMBER ’17VOL. 27, ISSUE 9

// CLOCK HOURS A PLENTY 6

// A FEW SIMPLE STEPS 13

// MARKET DATA 15

// RULING LOWERS THE BAR 12

BUILDING INSIGHTwww.BIAW.com

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See LEADERSHIP on page 7 //

Participating on an National Association of Home Builders (NAHB) committee or council offers opportunities to learn about topics that impact our business’s day-to-day operations, opens the door for new networks, and can give perspective on industry issues unique to Washington state (and will soon affect other states). Serving is also valuable for another reason: we have a voice in guiding policy and direction on matters that are important to members. (See the letter about applying for a NAHB committee or council. )

Over the past 10 years, I have been involved in several committees and councils. Here are just a few of the benefits I have had from the

experience:

GAIN CREDIBILITY WHILE SERVING YOUR INDUSTRYWhile you may want to serve your industry by applying your own unique knowledge

and experience, you can also gain credibility for your talents and skills through your involvement. One such opportunity happened to me when I spoke at the 2016 Green-build International Conference & Expo last October in Los Angeles, CA. I was moderating a panel discussion with Andrew McAllister, California Energy Commissioner. Just a few months earlier, he had addressed the Energy and Green Codes and Standards Subcom-mittee (which I am a member of) at the NAHB midyear meeting in Miami, FL. Renewing that acquaintance at Green-Build led to further discussion of a solar multi-unit housing development my business had designed in Sonora, CA. When he learned the project was stalled at the county level due to some issues at the state level, he got involved. The state’s issues sud-denly dissolved, and the building permit was issued the next day. Not everyone will be as lucky as I was, but I am convinced that when you put yourself out there for the good of others, you also gain recognition for your exper-tise and knowledge.

A NEW PERSPECTIVEI first became a board member

of my local association because I was concerned more indus-try-experienced people needed to be involved in leadership of the association at the time. That led me to a whole new person-al growth experience, which resulted in my election as First Vice President of the Skagit/Island Counties Builders Asso-ciation (SICBA) in 1999. During

ATTENTION ALL MEMBERSThose of you who are interested in serving on a NAHB

committee or council, the enrollment period is now open online.

The cornerstone of our efforts at NAHB has been driven by “involvement.” BIAW senior officers and others have been pushing NAHB’s leadership to engage BIAW members in the committee and council process. It’s now

up to us to deliver by making a com-mitment to serve.

On the online application, you may list up to three committees/councils you would like to serve on. There is

also a space to name the person(s) recommending you to the committee. Please use us: Ted Clifton, Dave Main and Bob Camp.

Once you have completed the form, you will receive a confirmation. Please forward the confirmation to bob@campcorporation.com and Bob will send a personal note to the appointing officer on your behalf, signed by the three of us.

Let’s step up and showcase our leadership talent. We have a three-year window to get BIAW members involved at the national level. Not because we want a large number of our members involved, but because we have knowledgeable individuals who have something to contribute at the national level.

Let’s do this!The deadline to submit an application is September 22,

2017. To apply, visit NAHB.org and enter “Apply for Commit-tee or Council” in the search box on the site.

INTERESTED IN SERVING? NOW’S YOUR CHANCEA call to action from BIAW President Ted Clifton and Past Presi-dents Dave Main and Bob Camp.

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SEPTEMBER ’17VOL. 27, ISSUE 9

See CRYSTAL CLEAR on page 14//

// ART CASTLE

EXECUTIVE VICE PRESIDENT

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We’ve been talking about the state Supreme Court decision called “Hirst” for nearly a year now. Essentially, it says counties rather than the state Department of Ecology must determine that a household well (exempt well) must not infringe on a senior water right.

The following is Washington state’s law on adequate water require-ments for a building permit:

RCW 19.27.097 Building permit application—Evidence of adequate water supply—Applicability—Exemption.

(1) Each applicant for a building permit of a building necessitating potable water shall provide evidence of an adequate water supply for the intended use of the building. Evidence may be in the form of a water right

permit from the department of ecology, a letter from an approved water purveyor stating the ability to provide water, or another form sufficient to verify the existence of an adequate water supply. In addition to other authorities, the county or city may impose conditions on building permits requiring connection to an existing public water system where the existing system is willing and able to provide safe and reliable potable water to the applicant with reasonable economy and efficiency. An application for a water right shall not be sufficient proof of an adequate water supply.

Many counties have issued guidance to residential permit applicants. King County is similar to many other counties in their response to Hirst—building permits continue, but the county warns applicants that they make no warranties regarding the right to use the water in a well. They also suggest applicants consult a hydrogeologist to study sites.

Thus, some counties are currently issuing building permits with a caveat that the applicant may not have the right to use the water from a household well. If you see some legal inconsistency between the RCW and actual practices, than you are not alone. This is another reason a permanent Hirst fix is necessary now.

But aside from the legal issues over water and water rights, all of Washington is facing a pending economic crisis. BIAW commissioned HR2 Research and Analytics based in Bellevue to review the following objectives: [1] Provide a quantification of the economic impact resulting from the Hirst decision by the Washington State Supreme Court as well as the lack of legislative consideration of the significance of the decision on the state’s homeowners and residents. [2] Determine the number of properties that would be affected by the Hirst decision. [3] Determine the extent of the property tax shift from rural to suburban

and urban areas. [4] Determine the economic opportunity loss through the direct, indirect, and induced impact on housing, employment, taxes, and similar developments in rural areas affected by water rights. n Loss of property valuen Changes in employment or construction n Redistribution of taxable revenues (excise, sales, property tax)n Mortgage interest and closing costsn Housing affordability n Well drilling companies and labor

As I write this, we are reviewing a near final draft of the HR2 review. The results show Hirst would have a staggering economic impact on the entire state of Washington.

But aside from the legal issue over water and water rights, all of Washington is facing a pending economic crisis.

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Have you looked at the BIAW Education program class schedule and noticed some of our classes offer real estate clock hours along with other continuing education credits?

These hours, available through BIAW’s Real Estate School, indicate you can take an approved BIAW educa-tion course and also receive con-tinuing edu-cation hours

needed to comply with Washington state Department of Licensing re-quirements. Members can earn up to 55.5 real estate clock hours for attending classes offered through BIAW’s Real Estate School.

Some classes BIAW offers make it easy and convenient for mem-bers to take only one day off of work instead of multiple days to receive clock hours.

When you are looking for a BIAW class, be sure to check if the course includes these hours—only some of our classes do. For more information, please visit our online classes at BIAW.com or contact me at amandaf@biaw.com if you would like more information.

CLOCK HOURS APLENTYCONTINUING EDUCATION

ATTENDEES CAN EARN STATE REQUIRED REAL ESTATE CLOCK HOURS VIA BIAW’S REAL ESTATE SCHOOL

CERTIFIED AGING-IN-PLACE SPECIALIST (CAPS) I: Marketing & Communication Strategies for Aging and Accessibility

8 Real Estate Clock HoursIncrease Your Aging-in-Place Expertise.Millions of Americans are living longer and more active lives. In embracing

newly found and changing lifestyles, a need to revitalize their home environ-ment has arisen. Identifying this burgeoning opportunity and then developing the skills to interact with this market can help you grow your business dramati-cally. The goal of this course is to equip course participants with the knowledge and tools to effectively market and sell services to the aging in place market.

CAPS 2: Design Build Solutions for Aging in Place8 Real Estate Clock HoursThe goal of this course is to enable participants to identify common challeng-

es within the home and understand attractive design concepts that create a safe and comfortable environment for clients who want to age in place as well as identify with one or more of these groups: n Individuals who are not experiencing health issues related to agingn Individuals who have a progressive or other condition that requires home

modifications/equipmentn Individuals who are dealing with an abrupt or traumatic health-related changeThe course also presents various methods and techniques for modifying home

design, from the perspective of new construction and retrofitting.

Certified New Home Sales Professional (CSP) - CLASSROOM 24 Real Estate Clock HoursMaster the craft of successful selling. This professional-level course is de-

signed for specialists in new home sales. You will gain a broad understanding of the home building business, discuss consumer psychology and learn the advanced techniques used by real estate veterans for greeting, closing and overcoming objections. Class includes: CSP I: The Art and Science of Selling, CSP II: Understanding New Home Construction, and CSP III: Selling Skills for New Home Sales Professionals.

// AMANDA FIELDS

EDUCATION PROGRAM DIRECTOR

See CLOCK HOURS on page 7//

Below are some of the most popular BIAW classes which offer real estate clock hours. For the entire list, go online to BIAW.com.

BIAW CLASSES OFFERING REAL ESTATE CLOCK HOURS

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//CLOCK HOURS from page 6

//LEADERSHIP from page 4

that period, I was invited to participate at the state level, where I sat in on meetings of BIAW’s Washington Builders Benefit Trust Board (which was disbanded and its role transferred to the Member Services Corporation) and the Health Insurance Trust, among others. I gained substantial knowledge about investments, liability and health insurance, which I applied to my own business operations. Eventually, I also got involved with NAHB’s Commercial Builders Council, which informed my build-ing of multifamily units; and NAHB’s Energy and Green Codes and Standards Subcommittee, which kept me and other members up-to-date on the green building and energy sectors and led to innovations in green building design and construction.

GLOBAL ISSUES IMPACT BIAW MEMBERSAs an example, our industry is impacted by the way the

trucking of building materials and supplies is handled between British Columbia, Canada and Washington state. Through my service over the last decade at NAHB, I now have networks with NAHB’s Senior Officers, who have connections with the current U.S. President and his cab-inet. Through NAHB, we can begin working to get these burdensome regulations relaxed, so that good people can receive their cross-border products faster, and get their good people to work installing them sooner.

STEP UP TO THE LEADERSHIP CHALLENGEServing on an NAHB committee or council offers many

opportunities to provide leadership on issues facing our members and impacting the industry, from building regulations and government policy to the business and operations of NAHB. Your involvement can make a differ-ence and benefit not only our own members within the state, but also members across the country.

I hope you’ll consider applying for an NAHB committee or council before the September 22 deadline.

CSP - ONLINE VERSION 18 Real Estate Clock HoursWhile the core content of the CSP online version is the

same as the face-to-face classroom course, this dynamic online version is deliv-ered in audio and video formats. It contains on-screen text, downloadable resources, a transcript of the course and a discus-sion forum where you can pose questions, share perspectives and enhance what you’ve learned. The online course offers the

flexibility of taking it when you want and at your own pace. You have one year to complete the course and take the exam. NAHB requires you score at least 70% on the test to receive your completion certificate.

Construction Contracts and Law7.5 Real Estate Clock HoursAre you sure your contracts abide by all current laws?

Do you know all current laws & rights to file a lien? Do you want to risk it? It only takes one person to sue you. (Bring a copy of your contract to be reviewed in class.)

The contracts portion of the class will teach you the important terms you need to address in your contract in order to minimize the occurrence and magnitude of problems that inevitably arise with customers or other contractors. You will learn how to write an improved con-tract that contains the required legal notices, limits your exposure to claims and liabilities, provides for economical resolution of a dispute, establishes a practical method of handling change orders, gives the customer a limited warranty, and precludes your customer from firing you and hiring somebody else to fix or complete your work. The lien section of the class will teach you how to prepare, record and foreclose a lien on commercial or residential projects. The class will also show you how to prepare, file and foreclose your lien against a payment bond or a retainage on federal, state, county, or city public works projects.

EPA: Certified Lead Renovator Initial8 Real Estate Clock HoursEPA and Washington State Department of Commerce

requires all contractors who may disturb lead paint on pre-1978 homes take a class to become a Certified Reno-

vator and then register their company.This class brings a blend of easy compliance, practical

application, and real answers to your questions. In addi-tion to the EPA curriculum, we provide you with valuable

insights on how the state Department of Labor & In-dustries (L&I) views lead-re-lated work, along with other free resources to help your company stay in compliance.

BUILDING INSIGHTwww.BIAW.com

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INDUSTRY TRENDSHOME BUILDERS ANGLE TO TAP INTO THE LARGEST WORKFORCE POOL

THE MILLENNIAL WORKFORCE

As the labor shortage continues in the home building industry, mem-bers are faced with a dwindling hiring pool for new workers to fill open positions.

Some of those new employees that would fill those open jobs include Millennials, which are soon-to-be the largest workforce in the U.S. and are between the ages of 18 and 34 (depending on the generational survey.)

While this is the largest pool of workers, the construction industry has had challenges attracting the next generation. For those that had not yet chosen careers, positions in the tech industry, medical fields, and science and engineering appealed to Millennials more than construction, according to a recent survey by the National Association of Home Builders (NAHB). Yet another challenge has been integrating work styles across multi-generations, including Millennials.

So, how do those in the home building industry attract—and keep up with—a changing workforce to meet current and future needs?

It’s a question that’s been on the minds of many employers recently, according to national surveys and reports.

A NEW GENERATION WORKFORCE

Juli Bacon, BIAW and Master Builders Association of King and Snohom-ish Counties (MBAKS) member, has been hearing from more companies

that they want to reach Millennial job seekers and are asking what training methods to use with those workers who may be younger and less experienced. As owner of JB Consulting Systems, LLC, Bacon con-ducts workshops on the next generation workforce, provides coaching to businesses and CEOs on management techniques, and recruits new

CULTIVATING MILLENNIALS Juli Bacon works with companies to re-cruit and retain Millennials for positions in the construction and other industries. As founder of JB Consulting Systems, LLC, she’s heard feedback from some owners and supervisors about the commitment level of new workers. Bacon shares some tips and advice for employers on prepar-ing the incoming generation to be part of the team.

AVOID THE NEGATIVEBacon advises employers to think about the mindset of Millennials and avoid re-ferring to their generation in a negative way. Instead, help workers that need it to build confidence and to think inde-pendently.

PROVIDE DIRECTION When starting out, some Millennials may need more explanation on what needs to be done, at what location, and what time. Provide procedures and new hire checklists to follow so they can learn the routines and requirements of the job.

UTILIZE THEIR SKILLS This new workforce was raised on tech-nology. Tap into that knowledge. Have them research new software, technolo-gies or tools that might increase efficien-cies and productivity for the business and the worksite.

GIVE “CORRECTIVE INSTRUCTION” INSTEAD OF CRITICISMWhen a mistake is made on the job, give two to three examples of how they did the job well, then comment on how you would have done the situation different-ly. Lastly, finish on a positive note.

by 2020, Millennials will comprise at least

50% of the workforce

Baby Boomers & Generation XMillennials

Source: US Census Bureau

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THE READING LISTTod Sakai conducts a study session each month on a

business book he selects and buys for the group. They read and discuss one chapter a month to break down silos and foster team building among the multiple gen-erations that work for him. Here are two books Sakai recommends if you’d like to start your own:

Help the Helper: Building a Culture of Extreme Teamwork by Kevin Pritchard and John Eliot

“Help the helper” is a basketball motto preached by some of the sport’s legendary coaches, including Dean Smith and Phil Jackson. All good players know they should support a teammate who’s under pressure. But the true greats know how to take it one step further. They fill the gaps left behind when one teammate goes to help another—gaps that are often far from the basket and out of the spotlight. —Amazon Book Overview

The Driving Force: Getting Extraordinary Results with Ordinary People by Peter Schutz

What makes a company great? After all, management trends come and go. Economic conditions fluctuate and market demands shift. Corporations re-structure and new owners take over. The one constant, the one enduring truth, is that people define the character of a company. They always have and always will. That’s the message from Peter W. Schutz, former CEO of Porsche AG and author of this book. —Amazon Book Overview

employees for construction companies. While no two Millennials are the same, Bacon said

there are commonalities among them, so companies need to reach them differently.

For one, when recruiting, Millennials want to know that companies are giving back to the community, said Bacon. In the home building industry, that means promoting fundraisers, community events, or non-profit projects that companies already do in local neighborhoods and other

locations on their website and social media. The giv-ing-back philosophy also helps hold on to them, she said.

“If the company is perceived as greedy and not giving back to the community, that’s where their loyalty ends,” said Bacon.

She also advises employers to be patient with training some Millennials on the job site. They have the ability and skills, but may need additional instruction to get them up-to-speed (see p8). She suggests having an experienced employee, who may no longer be doing field work and wants to retire, to share their knowledge to help some Millennials with the essential requirements on the job site.

“The construction industry has to provide the training. It’s not an employer’s job market right now. They’ll need to spend the time,” she said.

BREAKING DOWN SILOS Tod Sakai, BIAW and Master Builders Association of King

and Snohomish Counties (MBAKS) member, has taken a distinct approach when working with Millennials as well as Gen-Xers and Baby Boomers within his company, Sockeye Homes. One way he’s encouraged team building among his field team, which varies in age from 18 to 62 years of age, has been to start a study session where they meet at 6 a.m. once a month to discuss a business book selected by Sakai.

The group, made up of over a dozen staff, talks about one chapter each meeting and Sakai facilities the discussion. The most recent book was Help the Helper: Building a Cul-

ture of Extreme Teamwork by Kevin Pritchard and John Eliot, which dissects how different sports team work together (sometimes in unglamorous ways) to become successful.

“Everyone has the same book, but they have a different take on it. The discussions encourage them to see differ-ent perspectives,” said Sakai.

In one session, a young employee recounted how a situation that happened in the book was similar to an incident that happened to him on the job.

“He said, ‘It’s funny but that’s what was said to me and I was offended by that.’” The other employee didn’t even know it came across that way, Sakai added.

The focus from the study session, among other ap-proaches, is to ensure everyone psychologically works as a team so it eventually leads to a financial benefit. Sakai said he developed his own accounts receivable matrix and profit-sharing model that the team participates in and he encourages them to think creatively, pitch ideas and look for ways to make things better so they all con-tribute to the financial outcome.

“If they can’t get along, they can’t get things done,” he said.

Ultimately, that’s what every employer is hoping to master.

Millennial Workforce Representation of the workforce in 2020 v. 2030

2020 2030

By 2030 thishyper-connected, tech savvy generation will make up 75% of the

workforce{ }MillennialsNon-Millennials

Source: US Bureau of Labor Statistics, US Census Bureau

75%

25%50%50%

BUILDING INSIGHTwww.BIAW.com

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HIRST FIX UNRESOLVEDA DISTRESSING SITUATION

THE HIRST DECISION TURNS ONE NEXT MONTH - AND STILL NO FIX

// JAN HIMEBAUGH

GOVERNMENT AFFAIRS DIRECTOR

On October 6 (just a month away), the Hirst decision turns one. The state Department of Ecology (Ecology),

Governor, and all four legislative caucuses agree: the decision hurts Washing-tonians, and yet there is still no fix.

To remind you, the Hirst decision forc-es counties to

do additional scrutiny on the use of household wells, even though individual counties are not the state’s water resource manager—that’s Ecol-ogy. What this has led to is counties placing moratoriums on any homes utilizing a household well, requiring an expensive and challengeable hyrdrogeologic study to attempt to prove a negative, or tagging building permits with a disclaimer that the home may not have legal potable water. Every caucus and the Governor promised to address the issue. Yet, only the Senate passed a bill, and they passed it four times.

There are cries because the Repub-licans in the Legislature have said they will not vote for a capital bud-get/bond unless Hirst is fixed–and so here the state sits without a Hirst fix and without a state construction budget. Many state funded projects are on hold, but why should the state be building when the citizens can’t?

New home construction offers sub-

stantive economic boons to our state. Under Hirst, rural development has come to a virtual standstill because permits are not attainable or banks will not loan on well-reliant property (banks are slowly announcing this new wrinkle).

To that end, BIAW members and local associations have been submit-ting letters and op-eds to their pa-pers to show the real impact of Hirst on the real people of Washington.

What the industry really has been asking for this whole time is the mere ability to rely on the state’s water resource manager, the Depart-ment of Ecology. Ecology is tasked in state law to develop water rules

and regulations. Counties should not be required to have a higher bar, es-pecially as the decision did not give counties full control over water, but instead sets it up so the only answer counties can give to well-reliant homes is ‘no.’

Take a look at a letter and op-ed that have already been printed since the Legislature adjourned and please consider doing the same.

For assistance contact, Govern-ment Affairs Director Jan Himebaugh or Government Affairs Coordinator Josie Cummings at (360) 352-7800 and BIAW will help you with talking points and submission.

There is a standstill in the state Legislature because the House and Senate cannot come to an agreement on a fix for the water-rights decision known as “Hirst.” The Department of Ecology is Washington’s water-re-source manager; it makes sense to rely on them to manage adequate wa-ter supply. County budgets are already stretched, and they don’t have the resources or experience to take on such a task. The state Senate has taken a stand for rural Washington, passing a permanent Hirst fix four times. The House of Representatives did not bring a single Hirst bill to the floor for a vote in the 2017 session. Washingtonians need a permanent Hirst fix this year. Some landowners are sitting on empty lots or have lots with wells they cannot use, and have to wait to build the home of their dreams. The House needs to show voters in rural Washington that they care about small businesses like mine by passing a permanent Hirst fix this year. Politics is depriving citizens of a fundamental and crucial resource.

—Kurt Wilson, SoundBuilt Homes, Puyallup,Master Builders Association of Pierce County member

The Seattle TimesLetters to the EditorOriginally published August 18, 2017

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We need your help.

Before the state Legislature adjourned, the Senate and House negotiated a deal where a vote would be allowed on SB 5239 – returning to the practice of letting the Department of Ecology decide whether proposed private

wells in this state endanger our water supplies. In turn, SB 5239 supporters would vote on a capital projects bud-get, setting aside money for infrastruc-ture improvement projects across the state. Leaders in the House backped-aled, however, refusing to bring 5239 to a vote as planned, so the Legis-lature adjourned without action on either item. Both are important.

This is about the water rights half of that deal—the Hirst Decision. Last fall, the state Supreme Court announced in favor of Eric Hirst and others who had sued Whatcom County, challenging approval of new private wells on rural land here.

The Hirst decision is not about water. It’s about stopping people from building homes outside the cities (where wa-ter use, interestingly, is less efficient than on rural land).

Private well/septic systems are the most efficient use of residential water we have. According to Ecology, less than 1 percent of the water drawn in Whatcom County comes from wells. And of that, 80-90 percent is returned to the ground through septic and other drainfields, few of which present any pollution problems. Infiltration of that kind helps support streams and groundwater supplies. New household (exempt) wells, with proper construction, have diminutive (if any) impacts on our water. By comparison, Bellingham uses immense amounts of water and sends its stormwater and treated waste water directly into the bay—where it’s lost to us.

In Hirst, the Supreme Court said counties, not Ecology, are responsible for deciding if there’s adequate water quan-tity and quality for new wells before issuing a building permit.

Decision’s impactWhat’s wrong with that? Counties don’t have the money or staff resources to make those decisions – so instead we have a moratorium on new wells. People with land that’s been zoned for years for residential use suddenly can’t

What the state moratorium on new water wells means to you, and how to fix it

put in a well, unless they pay $10,000-$30,000 first for a hydrogeologic study to “prove” there will be no effect. We have water associations, but they don’t serve the entire county. They can use rainwater catchment – but there are so few systems in use, there aren’t enough comparable properties to justify banks’ approval of building loans for such houses.

Washington Federal has announced it will no longer lend on properties in Washington that have had wells drilled after Oct. 6, 2016 – as a direct result of the Hirst Decision.

All this has suddenly blocked use of much rural property, land people have been counting on for retirement, for their family’s use, etc.

House Democrats proposed mitigation and a temporary lifting of moratoriums on new wells—but mitigation adds to the cost of housing, and must be done with water obtained “in kind and in place” (if such water exists, why mitigate to begin with?). And our own County Council has rejected a temporary fix, asking what happens if some-body is only halfway through a building permit applica-tion or construction when that ends?

As use of rural property is blocked, Whatcom County Assessor Keith Willnauer expects many properties here to be devalued, which makes sense if they can’t be used or sold because suddenly there’s no water supply. Those properties’ previous taxes will be reassigned to the rest of us, including people in the cities, according to Willnauer. Landowners and renters (whose rates go up when hous-ing costs rise) will pay for this. It will hit your pocketbook. And our already “crisis”-level housing costs will go up even higher.

What to do? If the Legislature can agree on a Hirst fix, the Governor has said he will call a brief special session, like-ly in September, to approve the Hirst fix and the capital budget.

If this concerns you, please call and e-mail your state legislators now – particularly in the 40th District – asking them to push for a House vote in September on SB 5239, to return the power to approve wells in closed basins to Ecology – the agency this state has charged with handling water matters.

Linda Twitchell is the government affairs director of the Building Industry Association of Whatcom County.

Reprinted from The Bellingham Herald, August 17, 2017

OP-ED

// LINDA TWITCHELL

BUILDING INSIGHTwww.BIAW.com

12

IN TH

E NEW

SThe state Supreme Court ruled August

10, 2017 in Street v. Weyerhaeuser Co. that expert medical testimony confirming that an occupational disease “arises naturally” out of employment is not required in order to receive industrial insurance benefits. State law defines an occupational disease as one that “arises naturally and proxi-mately out of employment.” Thirty years ago the court determined that a worker must present expert medical testimony on the “arises proximately” portion of the definition of “occupational disease.”

The court interprets “arises naturally” to mean that an occupational disease “came about as a natural consequence of distinc-tive employment conditions.”

In this case, a paper mill worker who had back problems prior to working in the mill filed an injury claim, which was denied by the state Department of Labor & Industries because it was filed too late. He appealed to the Board of Industrial In-surance Appeals (BIIA), saying he intended

BIAW Participates in Workforce Development PanelBIAW Executive Vice President Art Castle and Administrative Services Director Jan Rohila

were invited to be panel speakers of the Workforce Development in the Building and Con-struction Industry—Deep Dive, a pre-conference workshop at the National Association of Home Builders (NAHB) Association Management Conference in Denver last month.

Nearly 100 attendees learned about:n BIAW’s membership and participation on the National Governors Association policy team and this year’s first statewide Tiny House Projectn The importance of being involved in school construc-tion program advisory councils n The need for expansion of construction apprenticeship programsn BIAW’s support of legislation on education funding for career and technical education

The goal of the four-hour, pre-conference session was to gain and share knowledge on how to create and sustain workforce development initiatives though govern-ment affairs activities and the value of integrating some of the innovative ideas offered into a workforce develop-ment strategy.

BIAW Executive Vice President Art

Castle and Administrative Services

Director Jan Rohila participates in

a NAHB-hosted panel discussion

on workforce development in the

home building industry.

to file an occupational disease claim in-stead. His doctor testified that it was “more probable than not” that his work “at least in part” caused his back problems. Another doctor said that the worker’s job probably contributed, but that other factors were also to blame. Yet another doctor testified that the worker’s job contributed only 2% or 3% to his condition. The BIIA ultimately rejected the claim, but a jury verdict in superior court reversed the BIIA’s decision, which was upheld by the Court of Appeals.

Citing the “trend toward liberal cover-age” in the courts and in the Legislature, the state Supreme Court concluded that it is not necessary for a medical expert to determine whether a worker’s dis-tinctive employment conditions caused the disease. Instead, the court was only concerned with whether the worker’s job conditions were particular to his occu-pation, without regard to whether those distinctive conditions actually caused the occupational disease.

WA Supreme Court Decision:Ruling lowers the bar for occupational disease claims

13

SEPTEMBER ’17VOL. 27, ISSUE 9

A FEW SIMPLE STEPSSAFETY MEETING TOPIC

AVOID POTENTIAL COMPLICATIONS, COSTS BY TREATING MINOR INJURIES PROMPTLY

Last year, R.O.I.I.® Select processed a significant number of workers’ comp claims that began with a relatively minor incident—insect bites, small abrasions, bee stings—but evolved into a serious injury.

While many of these claims were re-solved as medical-only—claims that didn’t

affect the employer’s experience rating or raise workers’ comp rates—they did impact the company’s perfor-mance ratings, R.O.I.I.® Select’s insurance pool, and the group’s refunds. Additionally, these claims do not take into consider-

ation the down time and lost productiv-ity of the employee while seeking pro-fessional medical services and the actual filing of the worker’s comp claim. Not to mention, there are costs for the employer and claim staff to monitor and process the claim. All these costs add up.

FIRST AID TREATMENT ON THE JOBSITEWhile an employer should never

discourage an employee from seeking medical treatment or filing a workers’ comp claim, there are times when simple first aid can be performed while on the jobsite that may avoid a condition at a later date that requires attention by a physician—and additional costs. These incidents include small cuts and abrasions

Communication and quick access to first aid is key.

Step 1n Make sure all employees know where the first aid kit is, how to use it, and where specific items are located such as bandages, disinfectants, and

allergy medicines (some of which may be specif-ic to individual employees). Be sure to assign an employee (one that is on the jobsite) the task of checking on the contents and to restock when needed.

n Make sure placement and access to the first aid kit and supplies are convenient for quick access. Frequently, work crews will maintain a “knock around” first aid kit—one filled with basic items—when access to the main kit may be a considerable distance away. Bottom line: your first aid kit should be close to where your employees actually work—so they can engage in the proper first aid quickly and efficiently.

Step 2While employees are not required to tell their employer about medical conditions that could place them at risk of an injury, keeping an open line of communication with your workforce is important.

n Ask your employees if they are allergic to bee stings or insect bites—it’s beneficial to both you and them. Oftentimes, specific medicines will need to be stored in the first aid kit, at-the-ready and nearby.

n Make sure treatment of first aid to minor injuries is policy and reporting of all injuries to supervisors is mandatory.

FIRST AID TREATMENT IS ‘OUNCE OF PREVENTION’

// BOB WHITE

R.O.I.I.® SELECT

SAFETY SERVICES

DIRECTOR

that go untreated, may become infected and result in the wound becoming sore, swollen or discolored. Workers may also experience allergic reactions due to a bee sting or spider bite.

Remember: Just a little bit of preparation and forethought on your first aid treatment plan and policy can go a long way in saving your company, time, money and resources.

BUILDING INSIGHTwww.BIAW.com

14

//CRYSTAL CLEAR from page 5

EIR AWARD WINNER: KITCHEN $30K-$60KCORRECTION

In the article In the July issue of Building Insight on the winners of BIAW’s 2017 Excellence In Remod-eling (EIR) awards, we inadvertently switched the winning photo in the Kitchen $30,000-$60,000 category. The winning project was submit-ted by Billie Jo Hyland of Hyland Cabinetworks, Inc., Federal Way. We sincerely apologize for the error.

Established in 1978, Hyland Cab-inetworks is a family run company committed to providing innovative and unique custom cabinetry to both homeowners and builders.

The winning project’s main objec-tive was to take a small, awkwardly spaced kitchen and turn it into fully functional, dream kitchen without sacrificing storage or style.

The project finished on time and on budget, and now the emp-

R eliableW arrantyC overage

A Solid Foundationfor Your Business

We Have New Home Warranties NAILED!

JOHN FELBAUM800-247-1812 ext. 2149

sales@rwcwarranty.comwww.rwcwarranty.com/WAInsight

FELBAUM - RWC - Quarter Page Ad - Washington Building Insight - 2017 Sept Issue.indd 17/10/2017 8:12:58 AM

ty-nester homeowners can enjoy their newly remodeled kitchen for many years to come.

Congratulations, Hyland Cabi-networks, Inc., on winning BIAW’s Excellence in Remodeling award.

BEFORE

The figures below represent annual losses each year the Hirst decision stands!

HIRST’S ECONOMIC IMPACT ON WASHINGTON STATE, ANNUALLYAS DETERMINED BY HR2 RESEARCHn $3 billion in lost home building

construction activityn $6.9 billion lost in economic

activityn $394.6 million in lost taxes in lo-

cal, state and special taxing districtsn Over 9,200 lost rural jobsn $452.3 million lost in rural

employee wagesThe section of the report related

to the property tax shift from un-buildable rural parcels to urban and suburban parcels isn’t fully complete.

However, in Skagit County, the county assessor, due to the Swinom-ish ruling (also decided by the WA Supreme Court), determined that 785 county parcels would be impacted with a total loss of $22.5 million in value to the county. The assessor has estimated a tax shift of nearly $273,000, each year, to urban and suburban parcels in Skagit County.

Can you imagine the impact on tens of thousands of property parcels, maybe hundreds of thou-sands throughout the state, when assessments are calculated? The repercussions to each county’s urban and suburban parcels will be another property tax increase, and collective-ly, a very large one!

The lack of a Hirst fix will not only undermine rural Washington’s eco-nomic health, but will undoubtedly increase property taxes on urban and suburban homes and properties that don’t rely on household wells.

Living under Hirst hurts all Wash-ingtonians—that’s why all of Wash-ington needs a Hirst fix now.

15

SEPTEMBER ’17VOL. 27, ISSUE 9

Hurricane Harvey will probably cause $75 billion in economic damage, less than Katrina’s $130 billion, but still making it the second most costly storm just ahead of Superstorm Sandy’s $71 billion. Crude prices are down 3% as refineries have shut, reducing demand but causing gasoline prices to rise by a similar amount. Lumber is also up slightly on reconstruction expectations. Unemployment will temporarily rise, but overall GDP will be unaffected.

—Elliott F. Eisenberg, Ph.D. GraphsandLaughs, LLC, www.econ70.com

HURRICANE HARVEY

MARKET DATA at-a-glance LISTINGS PENDING SALES CLOSED SALES TOTAL NEW & ACTIVE % CHANGE MEDIAN % CHANGE MONTHS OF NEW ’17 ACTIVE ’17 % CHG vs. ’16* JUNE ’17 vs. JUNE ’16* CLOSED SALE PRICE MEDIAN PRICE* INVENTORYChelan 115 271 -20% 100 23% 94 $299,250 -3% 2.88Clallam 167 334 18% 142 78% 108 $295,000 20% 3.09Clark 68 89 17% 59 -5% 30 $306,000 5% 2.97Cowlitz 204 232 -15% 195 12% 152 $213,250 7% 1.53Douglas 51 79 -25% 45 -21% 45 $292,000 2% 1.76Ferry 9 52 -16% 5 -17% 5 $210,000 453% 10.40Grant 137 360 -16% 121 14% 98 $192,793 0% 3.67Grays Harbor 208 477 -19% 190 9% 140 $169,450 15% 3.41Island 274 459 -10% 214 -12% 217 $340,000 5% 2.12Jefferson 123 286 -1% 76 -3% 58 $308,150 -1% 4.93King 4,769 3,057 -21% 4,309 0% 3,655 $590,000 16% 0.84Kitsap 658 765 -3% 626 0% 483 $335,000 13% 1.58Kittitas 145 249 -21% 123 0% 99 $260,000 -2% 2.52Lewis 179 341 -16% 171 20% 117 $200,000 14% 2.91Mason 200 360 -23% 205 15% 165 $214,000 0% 2.18Okanogan 102 354 -16% 57 4% 48 $174,750 -5% 7.38Pacific 79 258 -18% 79 14% 40 $156,500 6% 6.45Pierce 2,295 2,326 -6% 2,150 5% 1,721 $314,965 12% 1.35San Juan 54 262 -22% 30 -17% 30 $480,000 23% 8.73Skagit 338 442 -16% 283 -5% 220 $320,000 8% 2.01Snohomish 2,135 1,580 -10% 1,957 5% 1,558 $420,000 13% 1.01Thurston 708 773 -25% 710 14% 552 $287,450 8% 1.40Whatcom 568 833 -16% 482 -3% 399 $320,000 7% 2.09Others 72 243 57% 68 55% 60 $167,750 -1% 4.05Total 13,658 14,482 -14% 12,397 3% 10,094 $385,000 10% 1.43 *P

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SINGLE FAMILY AND CONDOS | MARKET ACTIVITY SUMMARY NORTHWEST MULTIPLE LISTING SERVICE | JUNE 2017

AD3618

2018 NAHBInternationalBuilders’ Show®

JAN. 9–11 IBS EDUCATION & EXHIBITSORLANDO

JAN. 5–11 NAHB MEETINGS

#IBSORLANDO

SEE New products, construction demos and technology

SAVELow investment—$50 and $100 expo passes*

LEARN New strategies and hot trends

REGISTER AT BUILDERSSHOW.COM/REGISTER

*Expo pass rate will vary based on NAHB member or non-member status.Rates will increase on November 11.

Building Industry Association of Washington

111 21st Avenue SW | Olympia, WA 98501

(360) 352-7800 | BIAW.com |

CONTRACTOR TRAINING DAYS

PLAN TO ATTEND

BIAW members and staff are some of many instructors teaching free Department of Labor & Industries’ Contractor Training classes scheduled in the coming months around the state.

More than 25 different classes are offered through L&I during the year on subjects including safety, contracting, business plan-ning, risk management, marketing and more.

BIAW PRESIDENT WINS NATIONAL AWARD

ZERO ENERGY READY HOME

BIAW President Ted Clifton was one of 26 this year to receive a U.S. Department of Energy’s (DOE) Housing Innovation Award.

This means that his award-winning home has met the requirements of DOE’s Zero Energy Ready Home program and produces as much energy as it uses.

Clifton’s home was selected this year for the “Inno-vation in Custom Homes (for Buyers)” Category. He has been recognized every year since the program has been in existence.

Recipients of the DOE Housing Innovation Awards are selected based on performance met-rics, land development, design, quality construction, sales and marketing, consumer education, and business metrics.

Clifton and other winners will be recognized during the award program on October 1 at the En-ergy & Environmental Building Alliance in Atlanta, GA. To see

all the recipients, visit https://energy.gov/eere/buildings/housing-innovation-awards.

BIAW President Ted Clifton

was one of 26 to receive a

DOE Housing Innovation

Award for his zero-energy

ready home.

Contractor Training Days ScheduleSeptember 8, 2017 ...........................................................LynnwoodEdmonds Community College

October 27, 2017 ................................................................. SpokaneSpokane Community College

November 17, 2017 ................................................................RentonRenton Technical College

January 19, 2018 ...............................................................TumwaterL&I Headquarters

n BIAW member company Linville Law Firm will host Construction Contracts (all contractors); Subcontractor Workshop (subcontrac-tors); Avoiding Claims, Disparaging Media Postings, and Actually Getting Paid (all contractors); The Difficult Customer: How to Handle (all contractors)

n BIAW member Kris Alberti will host Bidding, Estimating and the Bottom line (all contractors) and What Washington State Contractors Don’t Know (all contractors)

n BIAW staffer Karen Hall will host Effective Marketing for Contrac-tors (all contractors)

If you are interested in attending or would like additional infor-mation, please visit http://www.lni.wa.gov/TradesLicensing/Con-tractors/Workshops/Contractor to register or contact Julie Perales, Outreach and Education Program Specialist, 360-902-6366.

NAHB Professional Women in Building Week is Coming!

Save the Date! Sept. 18 - 22

NAHB Professional Women in Building Week celebrates the talented women in the residential construction industry. It’s an occasion for all members across the NAHB Federation to bring national awareness to their vital contribution with activities that promote, enhance and support housing and women in the industry.

NAHB Professional Women in Building Week

We encourage all HBAs to observe NAHB Professional Women in Building Week. Get ideas for celebrating and more at nahb.org/pwbweek.

NAHB Professional Women in Building WeekSeptember 18 - 22 NAHB Professional Women in Building Week celebrates the talented women in residential construction. It’s an occasion for all members across the federation to recognize women in the industry and their vital contributions to enhancing and supporting home building in the state and across the country.