Kern Business Journal August/September 2015

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KERN Journal Business

Vol. 4, No. 4

A MEMBER O F T HE

TB C M E DIA FAM ILY

The popular Shops at River Walk Page 8

August/ September 2015

Retail and Franchising Issue

Cover story

Franchises: Demand grows, but so do challenges By Dianne Hardisty

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ranchise ownership is increasing in popularity, especially among members of minority communities seeking entrance into the world of entrepreneurship and retirees, who are looking for income and creative outlets to fill their “golden years.” According to an annual report by the International Franchise Association and IHS Economics, for the fourth consecutive year, franchise businesses in 2015 are expected to grow and create more jobs at a faster pace than the rest of the economy. Nationwide, franchise businesses are expected to add 247,000 new direct jobs this year, a 2.9 percent increase in the number of jobs added in 2014. The number of franchise establishments is expected to grow this year by 12,111, or 1.6 percent, to 781,794. “The outlook for growth among the different types of franchises will differ, with quick service restaurants ranking first and retail businesses ranking PHOTO BY FELIX ADAMO

Continued on page 9

Grand Island Village features a selection of businesses.

Top Ranked Bank in California* Member FDIC *Bank Director Magazine, 2014. Among Banks with $5 Billion to $50 Billion in Assets. CVB Financial Corp. is the holding company for Citizens Business Bank.

Kern Business Journal P.O. Bin 440 Bakersfield, CA 93302

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For more see page 28

INSIDE

Find out what restaurants are coming to Bakersfield. Page 16

Help find more customers with the handy tools found on this website. Page 19

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KERN BUSINESS JOURNAL

August / September 2015

hile recruiting new business to Kern County, it’s successful, local professionals like those at Valley Republic Bank that make our job easier.”

R ICHARD C HAPMAN President/CEO

C HERYL S COTT Vice President

Kern Economic Development Corporation Kern EDC has never wavered from its mission to serve as the leading organization in Kern County for job creation and economic development activities. “It’s with the investment and partnership of local banks that are deeply woven into the fabric of our community that we’re able to draw corporations from throughout the country to a region so rich in economic opportunity and diversity.”

Local. Responsive. Reliable. 5000 California Avenue, Suite 110 661.371.2000

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valleyrepublicbank.com V llley R Valley Republic bli Bank B k

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August / September 2015

Journal KERN Business Showcasing Kern County business and industry August / September 2015 Vol. 4, No. 4 Kern Business Journal is a bimonthly publication of The Bakersfield Californian. Copies are available from The Bakersfield Californian, Kern Economic Development Corp. and Greater Bakersfield Chamber of Commerce. Publisher Ginger Moorhouse President/CEO Richard Beene Senior Vice President Revenue and Marketing John Wells Editor Olivia Garcia Assistant Managing Editor Mark Nessia Specialty Publications Coordinator

Laura Liera

Art Director Glenn Hammett Graphic Designer Holly Bikakis To submit a story kbj@bakersfield.com To advertise Lisa Whitten, Advertising Manager lwhitten@bakersfield.com 661-395-7563 To subscribe 661-392-5777

KERN BUSINESS JOURNAL

Editor’s Note

Kern County is open for business

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was recently chatting with Hassan Halevy over at Mercedes-Benz of Bakersfield when he mentioned his new business venture, Opulent Salon di Belezza, in southwest Bakersfield, which recently celebrated its grand opening and is growing in popularity. It made me think about this issue of the Kern Business Journal, which focuses on retail and franchising. In this edition, we reached out to local Olivia Garcia experts in the industry who shared a glimpse of the current projects, trends and future plans for our community. Laura Wiener, for instance, shares details on Opulent and other businesses that have opened in the Grand Island Village. The Tuscan-inspired 90,000 square foot neighborhood/specialty style shopping center is nestled in the Seven Oaks community at the corner of Ming Avenue and Buena Vista Road. Read Wiener’s story to learn of other businesses that are calling Grand Island Village

PHOTO BY FELIX ADAMO

Sprouts Farmers Market

their new home. Yet that’s not the only location reaping commercial benefits. The Shops at River Walk continues to expand. Newly admired shops include Nordstrom Rack, Sprouts Farmers Market, BevMo!, PizzaRev and Active Ride Shop, a California-grown skateboard shop focusing on apparel, footwear, skate goods and accessories, writes Shannon Medina of Castle & Cooke. Jared The Galleria of Jewelry will open in late September. The Outlets at Tejon continues to celebrate success, drawing shoppers from not only Bakersfield but other parts of Southern California. “Our shoppers make up more than 3.2 million people that live within a 60-minute drive of the center, including those living in the Santa Clarita and Antelope valleys and residents of Bakersfield and Kern County,” writes Hugh McMahon of the Tejon

Business at-a-glance member/nonmember pricing for renting the rooms and can be reached at 327-4421 or at bakersfieldchamber.org. — Kern Business Journal

Chamber Upgrades

Upgrades have been made to the Greater Bakersfield Chamber of Commerce's conference rooms that not only include audio/visual enhancements but also full-service coffee, soda, water and copy services. These upgrades, which were made possible by Chevron, Bright House Networks and Western States Petroleum Association, will allow members to fully take advantage of the meeting space and the technology within at no extra cost. Some of these added technologies include a fully accessible ceiling-mounted projector located in the Californian Room, an 80-inch flatscreen television in the Kern Room and teleconferencing systems in all four of the conference rooms. The chamber is available to answer any questions regarding

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enhance the lifestyles of those who choose to reside in its beautiful, safe and GreenWise gated community. Castle & Cooke already has plans to expand and add further amenities, such as a new Highgate Elementary School, which is scheduled to open in 2018. That, along with the addition of parks, a community pool, a clubhouse, and more, makes Highgate at Seven Oaks a prime real estate location. For more information, go to highgatesevenoaks.com. — Kern Business Journal

Highgate at Seven Oaks

Bakersfield just got a new eco-friendly gated community that appeals to both families and singles alike. Highgate at Seven Oaks is Castle & Cooke’s newest addition to its arsenal of residential and commercial communities in Kern County. With its unique approach to saving energy, improving air quality, using sustainable building materials and creating a fitness-oriented environment, Highgate hopes to attract people from all walks of life. Located next to the popular 27-hole Seven Oaks Country Club, Highgate at Seven Oaks aims to

World’s largest solar project The world’s largest solar project now resides on the border of Kern and Los Angeles counties. The 579-megawatt Solar Star project came fully online June 19 and has 29 more megawatts of capacity than the Desert Sunlight solar plant in Riverside County, which opened in February and was hailed as the world’s largest solar project. The Solar Star project is owned by BHE Solar and developed by SunPower Corporation, which provides the engineering, construction, operations and maintenance for the plants through a multi-year services agreement. Not only will these plants power

Ranch Company. Another area of growth for Kern County retail is the restaurant business. Nathan Perez of Cushman & Wakefield Pacific notes in this issue that “restaurants in Bakersfield reported over $600 million in sales in 2013,” and he expects that number to climb even more this year, as the demand will be ready. He adds that “there are about seven retail developments throughout Bakersfield that will offer space for food tenants with more developments coming next year.” A number of those restaurants are local, and local business tap into their unique qualities and services to stay above the larger competitor or chain. That’s what writer Ellen Ewing discovered when she interviewed locally based meat counters on how they stay above the competition. – Olivia Garcia is editor of the Kern Business Journal

more than 250,000 homes and create more than 600 jobs over a three-year period, but the Solar Star project will be responsible for making a positive economic impact in California of more than $500 million. All three of the world’s largest solar plants – Solar Star, Desert Sunlight and the Topaz project – are located in California. — Kern Business Journal

Bakersfield ranks No. 16

According to SelfStorage.com Moving Blog, Bakersfield just ranked No. 16 among the top 100 largest metro areas for overall population growth and percentage of household incomes of more than $200,000 a year. The list was made by analyzing data from the federal government on population and income growth between 2005

and 2013. They then paired the two rankings together to come up with the top 100 list. John Egan, editor-in-chief of SpareFoot.com and SelfStorage.com, mentioned that this was the first time they have compiled this type of list but the results proved to be very informative. “Some of the metro areas on the list you would never have thought as having such a big increase in these statistics,” said Egan. SelfStorage.com is a website that helps you find and book storage units across the U.S. in more than 10,000 locations. Much like finding a house, it is important to know statistics about the location you decide to store personal possessions at. For more information, visit moving.selfstorage.com. — Kern Business Journal

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KERN BUSINESS JOURNAL

Chamber Roundups

August / September 2015

August / September Events

Greater Bakersfield Chamber of Commerce Aug. 12 – Quarterly Labor and

Employment Law Update Forum with attorney David Blaine of BeldenBlaine; check-in/networking, 11:30 a.m.; forum, noon to 1 p.m.; $10, members; $25, nonmembers; Greater Bakersfield Chamber of Commerce, 1725 Eye St. To register, call the chamber at 327-4421.

Aug. 20 – Bakersfield Young Professionals Pub Club; location TBA. For more information, call the chamber at 327-4421. Aug. 26 – After Hours Mixer hosted by Bakersfield Marriott at the Convention Center, 801 Truxtun Ave.; 5:30 to 7:30 p.m.; $5, members; $10, nonmembers. Celebrate

the end of summer mixer in the Marriott’s bar area and poolside patio. For more information, call the chamber at 327-4421. Sept. 7 – Chamber closed, Labor Day. Sept. 23 – Social Media Therapy; check-in/networking, 11:30 a.m.;

Sept. 30 – After Hours

seminar, noon to 1 p.m.; $20, members; $40, nonmembers; Greater Bakersfield Chamber of Commerce, 1725 Eye St. For more information or to register, call the chamber at 327-4421.

Jazzy Mixer hosted by Southern California Orthopedic Institute, 2400 Bahamas Drive; 5:30 to 7:30 p.m.; $5 for members; $10 for nonmembers. Come mingle with the SCOI doctors and staff along with some local athletes. For more information, call the chamber at 327-4421.

North of the River Chamber of Commerce

Kern County Hispanic Chamber of Commerce

Monthly Luncheon

KCHCC Business Networking Mixer

Hodel’s Country Dining 5917 Knudsen Drive Sept. 10 11:30 a.m. to 1:00 p.m. Join the NOR Chamber of Commerce on Sept. 10 for the monthly luncheon at Hodel’s Country Dining. Hear from chamber leadership about upcoming events and news pertinent to chamber members and North of the River business owners and residents. Learn from dynamic speakers on the biggest issues facing business in Kern County. Mix and mingle with local leaders and business professionals while enjoying great food.

Oktoberfest

Sandrini’s Restaurant and Bar 1918 Eye St. Oct. 10, 1:30 to 4:30 p.m. Tickets: $45 per person, $180 for a sponsored table of four Get festive with the NOR Chamber of Commerce for its first Oktoberfest presented by Kern Federal Credit Union. Enjoy Sandrini’s signature appetizers, full dinner and six 4-ounce tastings of Oktoberfest-inspired beers courtesy of Advance Beverage. Entertainment, silent auction, raffle items and networking all for the price of admission. Call 873-4709 for tickets and table reservations. Seating is limited.

Exhibitor booths: 1 to 7 p.m. Breakout sessions: 1 to 4 p.m. Business networking social: 4 to 7 p.m.

Hosted by KGET-TV 17.1, Telemundo T-17.3 Aug. 12 2120 L St. 5:30 to 7:30 p.m. Door fees: KCHCC members, $5; nonmembers, $10

KCHCC Business Education Foundation

6th Annual Celebration of Mexico’s Independence Day – “El Grito de Dolores” Sept. 15 Liberty Bell Ceremony: 7 to 10 p.m.

KCHCC 21st Annual Business Conference & Expo

Aug. 27 Bakersfield Marriott at the Convention Center 801 Truxtun Ave.

KCHCC 10th Annual “Tee it up” Golf Tournament Sept. 28 Bakersfield Country Club 4200 Country Club Drive Shotgun start: noon

Is franchising the right fit for you? By Raji Brar

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y family has been in the fast food and retail gas industry for more than 25 years in Kern County. We have been franchisees of many different brands, from Haagen-Dazs ice cream to Taco Bell and everything in between. Currently, we own and operate Countryside Market & Restaurants and are franchisees of Subway, Taco Bell, Pizza Hut, Shell Gas and Brookside Market & Deli. Franchise business models are very appealing to the firsttime business owner; Raji Brar they are more structured than traditional business ventures. In successful franchise systems, all units operate under a common brand and operating system. This is how consumers know a Subway turkey sandwich they purchase here in Bakersfield, will taste the same as the one they purchase in Los Angeles. Franchise systems also provide ongoing support to their franchisees. These support programs will have periodic contacts with

dedicated support personnel, marketing strategies, staff training, technology support and various other aspects of ongoing support. Franchise systems also charge ongoing fees or royalties in exchange for the continuing right to use their brand and operating system. In addition, franchisees will be held accountable to legal disclosures or Uniform Franchise Offering Circulars (UFOC) that are required by the franchisor. In starting a non-franchise business, there will be no operational support, no common branding, no royalties or legal disclosures. Whether or not an individual purchases a franchise or goes in at it alone, there are many factors to be taken under consideration before making the initial step. More often than not when individuals purchase a franchise, they look solely at the financial investment required and figures, such as profit and loss. They do not take into account the time and effort needed to make their business venture a success. To run a successful franchise, or any business for that matter, it not only requires capital but a lot of time, hard work, operational knowledge, people skills and great customer service. Owning a franchise is a huge time commitment – say goodbye to weekends, holidays and happy hour with your friends!

To be a successful franchisee, one must be ready to devote the time and effort required into getting their business off the ground. There is no room for absentee ownership in any type of business, let alone a franchise. Many people want to buy a franchise so they no longer have to work a traditional 9 to 5. Once the business is established, there is definitely more flexibility, but in the beginning, there will be long days and nights. As a general rule of thumb, it can be a few years before your business will actually begin to show profit; therefore, it is very important to have reserves on hand. The key to making any franchise run is you can’t be afraid to get your hands dirty. Operations often become an afterthought, which is a critical mistake. It is very important for a franchisee to know how to operate his or her business from the ground up, meaning you should never feel too big to grab that broom or make that sandwich. When starting out, you should know everything, from how much product to order, how to prepare it and how to ring it up. It earns respect with your staff and you actually begin to understand the nuances of daily operations. Another key factor people tend to overlook when buying a franchise is their people skills. It seems rather basic, but it

is very important for potential franchisees to assess whether or not they have good people skills. People skills and customer service are at the cornerstone of running any QSR. A successful franchisee is one who can see from the viewpoint of his or her staff and customers at the same time. We all understand the value of good customer service, however, we rarely see the same emphasis placed on how we treat our employees. Employees are the face of your franchise; they are the ones providing service to your customers. Employees learn how to treat their customers from how their employer treats them. In my experience, employees are only as good as their employers. Therefore, it is critical before anyone starts a business or franchise that they take into account the time, operational knowledge and people skills required to become a successful franchisee. At the end of the day, you get out what you put in. – Raji Brar is the chief operations officer at Countryside Market & Restaurants, a familyowned business that has been in operation for over 25 years in Kern County. Brar serves as a director on various private and community boards.

August / September 2015

KERN BUSINESS JOURNAL

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KERN BUSINESS JOURNAL

August / September 2015

Business Culture

Cultivating connections for life By Cris Arizmendi

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efore he ever fixed a tire, in January 1952, our founder, Les Schwab, purchased a small tire store in Prineville, Oregon. By 1955, he had opened his third location. Schwab developed the “supermarket tire store” concept, locating the warehouse in the showroom and stocking more than one brand of tire in each size, so customers could walk through the racks and see the actual tires that would go on their vehicles. Although this transparent model was not popular with the major rubber companies, it turned out to be very popular with customers. Schwab passed away in 2007, but his vision of doing the right thing for our customers, as well as our communities and our crews, is the Cris Arizmendi foundation of our company culture. We’re grateful for the warm reception we’ve enjoyed since Les Schwab opened its doors in the Central Valley in 2012. We opened four new California stores last year, including the one I manage on Ming Avenue in Bakersfield. We were enthusiastic about growing in this region because we saw a large potential customer base of people who value the outstanding customer service and high-quality products we offer. We’re glad we did because Central Valley residents are great neighbors! Coach Paul Golla came by early on and gave us a Bakersfield High School football helmet that adds local color to our showroom. Our employees deliver every day on our promise to provide world-class customer service, which starts with running out to greet customers as they drive in and always ends by thanking them for their business. Extensive training programs at every level help us safeguard that promise across Les Schwab’s footprint. We are committed to creating a culture of loyalty, hard work and reward through promotion from within, meaning every store manager started as an hourly employee, too. I began in 1998 as a sales and service representative and became a manager in 2014 when I opened the Ming Avenue store. I hired 10 people at that time, and I hope they stay with us for a career; two have already been moved to our newest store to help train new employees there. We are consistently recognized as having the best compensation packages in the retail tire industry, providing generous bonuses, health benefits and retirement programs.

CALIFORNIAN FILE PHOTO

Tire king Les Schwab stands in front of his Prineville, Oregon headquarters.

Because I’m new to town, when I swing by Vons grocery store after work, I’ll wear my uniform, in the off chance that someone asks me about it and we strike up a conversation. Then he or she learns what Les Schwab has to offer, and I learn what’s im-

One of the greatest honors of being a store manager is that each store gets to choose the local organizations and activities that help those in need and promote a vibrant, healthy community. This year, our store added the Kern County Fair to the roster of events we are proud to support. — Cris Arizmendi

portant to local people. That’s what being a good neighbor is all about. Helping others is easier once you’ve had that introduction and you understand their needs. Just recently, I was able to change out a flat tire for a Honda Odyssey owner in the parking lot, saving him an hour wait for emergency road service in 100-degree weather. We celebrated with the ice cream he’d just bought that didn’t end up suffering a meltdown, and I was thrilled to sell him a pair of new tires the next weekend. One of the greatest honors of being a store manager is that each store gets to choose the local organizations and activities that help those in need and promote a vibrant, healthy community. This year, our store added the Kern County Fair to the roster of events we are proud to support. Because of our fierce commitment to service, customers tend to come back time after time and often bring in their family and friends. Our strong community giving program is our way of repaying that loyalty. If you are interested in learning more, I

encourage you to come on by and meet me! We recently got a walk-in request from the West High School pep team that we were happy to respond to. With more than 450 stores, our retail footprint is the largest in the West. We have grown organically to ensure that customers have access to a Les Schwab Tire Center, and that same quality of service they’ve grown to depend on, as they travel throughout the region. Our “Best Tire Value Promise” means we stand behind the quality of our products and workmanship, including free lifetime tire and mileage care. This winter, we’re excited to open stores in Clovis, Sanger and Bakersfield, with plans to expand even farther into Southern California. We believe that Les Schwab’s founding values and business model are the reason for our success across the Central Valley and elsewhere, and we’re out to make customers for life. — Cris Arizmendi is the manager of the Ming Avenue Les Schwab Tire Center in Bakersfield.

August / September 2015

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August / September 2015

New businesses at The Shops at River Walk flourish by giving locally By Shannon Medina

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ot a quarter has gone by in 2015 without a grand opening at the Castle & Cooke commercial development of The Shops at River Walk, creating jobs and new outlets for commerce with many retailers and restaurants opening their first stores in the Bakersfield market. The community has welcomed the newest stores at The Shops at River Walk with open arms. And the shops have embraced the community spirit of Bakersfield right from the start. The most recent addition to The Shops at River Walk is Active Ride Shop, a California-grown skateboard shop specializing in the finest apparel, footwear, skate goods and accessories. This summer, Active Ride held its grand opening where the Vans Shannon Medina Pro Skateboard Team signed autographs for fans and door prizes were given out to the first 300 customers. Active also teamed with local schools for an art contest to design skateboards and shirts that represent the Bakersfield skate culture. The winning designs will be produced and sold in the shop and a portion of the proceeds will be given back to the school. “Active is very excited to be involved in the Bakersfield community and our location is a perfect fit for expansion of the southwest Bakersfield area and we look forward to

continuing to expand our programs and serve our customers,” said Jenner Heller, vice president of retail operations and real estate with Active Ride Shop. PizzaRev also involved the community at its grand openings of two new stores in January by inviting guests to “pay-what-they-want” with a portion of the proceeds going to benefit the Boys & Girls Clubs of Kern County and the Bakersfield SPCA. Soon to be added to the quickly growing list of new businesses at The Shops at River Walk is Jared The Galleria of Jewelry, scheduled to host its grand opening in late September. Recently opened Nordstrom Rack, Sprouts Farmers Market, BevMo! and TJ Maxx are also among the latest additions that have reported successful first and second quarters in the Bakersfield area. “We are proud to partner with businesses that share our vision for giving back to our community,” said Darlene Mohlke, vice president of sales and marketing of Castle & Cooke. “We look forward to introducing more new and civic-minded businesses to Bakersfield in the coming months as more soon-to-be named businesses join the development.” Castle & Cooke’s commitment to beautiful, safe, lifestyle-enhancing communities is on full display with both The Shops at River Walk and its newest master-planned community development, Highgate at Seven Oaks, slated to open in early 2016. Highgate spans approximately 443 acres on Bakersfield’s flourishing west side at the corner of Ming Avenue

Active Ride shop at The Shops at River Walk.

and Allen Road and will allow new families to enjoy being a part of the Castle & Cooke-built Seven Oaks community. Greenbelts, roundabouts, privacy gates and pedestrianfriendly, tree-lined streets are complemented by a large central park. Highgate residents will rest easy knowing they’re not only surrounded by natural beauty in the serene resort-style development but will also have the convenience of premier shopping and dining at their fingertips. – Shannon Medina is the Castle & Cooke sales and marketing assistant.

August / September 2015

Continued from page 1 second in terms of increased employment,” IFA researchers reported. Additional research by IFA and the Competitive Enterprise Institute noted the franchise business model has been a boon to immigrants and minority entrepreneurs. About 20 percent of the nation’s franchises are minority-owned. “There are all kinds of reasons for this,” explained John Willingham, a Bakersfield business broker, who resells franchises. “For Dianne Hardisty someone coming out of the corporate world, maybe retiring, a franchise can offer a tested plan, something the buyer can feel comfortable with. [Retirees and new entrepreneurs] know that with a franchise they have the backup of a bigger corporation.” A franchise is a business model that involves one business owner licensing trademarks and methods to an independent entrepreneur. Some of the most familiar franchises, or “chains,” are McDonald’s, Burger King and Taco Bell. Basically, there are two forms: product/ trade name franchising, where the franchiser owns the right to the name or trademark and sells that right to a franchisee; and business format franchising, where the franchiser and franchisee have an ongoing

KERN BUSINESS JOURNAL

relationship, and the franchiser often provides a full range of services, including site selection, training, product supply, marketing plans and financial assistance. Franchises can be purchased directly from the “franchiser,” or corporation. A franchise often is purchased as a “resale” from a franchisee. “There are many reasons a franchisee will want to sell,” said Willingham. “Often it involves family circumstances. Divorce is a big thing. There may be health reasons, or the business owner just wants to retire.” “I would advise someone just starting out to go with a franchise,” said Russ Allred, a Bakersfield broker and business consultant. “I see oil workers, who have been displaced by the decline in oil prices, now looking at franchises to replace a job.” Allred said he advises these clients and others to move cautiously when considering buying a franchise. “Look into areas where you have an interest and some experience,” he said. “If you don’t work a business, you won’t make money.” A franchise buyer also needs to be capitalized, Willingham and Allred stressed. “It’s not just having the money to pay the purchase price,” said Allred. “You have to have enough money to keep the business going.” Bakersfield business broker Bud Herrington estimates that a potential franchise buyer should have a net worth of about $1 million to purchase a business,

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pay franchise and licensing fees, acquire equipment or product, and cover startup and unexpected expenses. According to a recent survey by Service Employees International Union, California is a particularly challenging market for startup franchisees. In the past 20 years, 16.5 percent of Small Business Administration loans to California franchises failed. From 2001 to 2005, the failure rate was 12 percent. But from 2006 to 2010, during the Great Recession, the failure rate grew to nearly 30 percent, 10 percent more than the national average. Researchers noted the competition between California franchisees is greater than in other states and there are fewer protective laws covering franchising.

According to an annual report by the International Franchise Association and IHS Economics, for the fourth consecutive year, franchise businesses in 2015 are expected to grow and create more jobs at a faster pace than the rest of the economy. “Franchises were hard hit in the recessionary period,” said Herrington, adding that some franchises, such as pizza restaurants, had saturated the local market and

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they could not survive. All three Bakersfield business brokers stressed the need for buyers to extensively research the businesses they are considering purchasing and the local demand for the services or products. “You are also buying into an 18-hour day. You should know what will be expected of you,” said Herrington. “Do you want to do that? Can you do that?” Research should include examining the company’s financials and evaluating the growth potential of the marketplace. Will customers want the services or products in five, 10 or 20 years? Google the business sector and franchiser. Check with the Better Business Bureau. Consult “rip-off ” websites to determine the franchiser’s or franchisee’s business practices. Talk to other people in the business. The Federal Trade Commission, which oversees franchising offerings, has compiled “Buying a Franchise: A Consumer Guide,” which can be found on the commission’s website, business.ftc.gov. The guide includes sections on the benefits and responsibilities of franchise ownership; researching franchising opportunities; identifying fraudulent offerings; and obtaining financing. The FTC’s Franchise Rule and Business Opportunity Rule mandate disclosures and offer buyers certain protections. Additional information can be found on the Small Business Administration’s website, at sba.gov.

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August / September 2015

Outlets at Tejon: New experiences for shoppers, opportunities for retailers By Hugh McMahon

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he Outlets at Tejon is the first new outlet center built in Central California in more than a decade. The 365,000-square-foot center is home to more than 70 premier retailers, including the only Pottery Barn Outlet in California. Other major brands include Calvin Klein, Tommy Hilfiger, Michael Kors, Coach, J. Crew, Nike, H&M, Brooks Brothers, Le Creuset and dozens of others. Across the country, outlets in general are thriving and continue to offer deals shoppers desire. Consumers are increasingly turning to outlet centers to do their shopping and are shopping there with greater frequency. AccordHugh McMahon ing to research from Value Retail News, outlet centers captured nearly 11 percent of all shopper visits in 2014, an amazing number considering outlet centers represent a little less than 1 percent of total shopping center gross leasable area. Outlet centers also attract shoppers who on average spend more on apparel and earn more in terms of average household income. Our own success at the Outlets at Tejon reflects this research. Our shoppers make up more than 3.2 million people that live within a 60-minute drive of the center, including those living in the Santa Clarita and Antelope valleys and residents of Bakersfield and Kern County. With nearly 65 million people passing the site annually, the center also draws heavily from the constant

flow of travelers and tourists traveling on I-5. We are becoming a favorite stop for international tourists with many tour companies making the center a preferred stop on their routes between Northern and Southern California.

New experiences for shoppers Our goal in designing and developing the Outlets at Tejon was to create an outstanding shopping experience that is truly unique in the Central Valley, while delivering many of the most desired brands in America and providing tremendous value to our customers. One way we create unique shopping experiences is to include family-oriented activities and events at the center. By developing meaningful events throughout the year, we have built a community, while our retailers have built engagement with shoppers. One of our recent events in May, “Walk A Mile in Her Shoes,” gleaned contributions for the Kern County and Santa Clarita domestic violence centers, while upcoming promotions and charitable events include our Back-to-School Style Spree, breast cancer awareness month of activities and celebrating first responders. Throughout September, our free “Rockin’ at the Ranch” Concert Series will blend the shopping experience with entertainment by showcasing bands every Saturday night. Bands on tap include Mento Buru, Lonely Avenue, Foster Campbell & Friends and The Nightlife Band.

Building community Our unique design and amenities raises us beyond what other shopping experiences in the region have to offer. Much thought

was put behind how shoppers would experience the center. Our historic California aesthetic is authentic to the historic and scenic environment of nearby Tejon Ranch. Landscaped and hardscaped grounds, water features and relaxing furniture for guests complement open-air courtyards and curving retail promenades. Our large food court offers some of the best in local offerings for food and desserts in the region: Dewar’s, Don Perico’s, Juicy Burger and Tony’s Pizza. We built shade structures, seating areas and large plentiful restrooms to give shoppers added value. Through these design amenities, the center delivers a shopping experience that evokes the look and feel of a high-end outdoor lifestyle center one normally associates with upscale coastal communities but one that offers value and deals that shoppers want.

What’s next? The community will continue to reap the benefits of the center. We are a valuable tax base for Kern County and provide employment to an average range of 800 to 2,000 people based on seasonality, the majority of whom reside in Bakersfield, Arvin, Lamont and the southern mountain communities of Kern County. Moving forward, the future of the Outlets at Tejon is exciting and offers opportunities for additional business in the Tejon Commerce Center. With the develop-

ment of the Outlets at Tejon also comes the opportunity for additional commercial development surrounding the property. New gas service stations, restaurants and lodging are open, under construction or in the planning stages of the Tejon Commerce Center. Black Bear Diner, Starbucks and Carl’s Jr. recently opened on the east side of the commerce center, adjacent to the outlet center, with Pieology and a Shell gas station under construction. We look forward to continuing to serve the residents of Kern County as well as shoppers and visitors beyond. For more information about the Outlets at Tejon and upcoming events and promotions, please visit TejonOutlets.com.

– Hugh McMahon is senior vice president of commercial and industrial real estate for Tejon Ranch Company. McMahon is responsible for the development of commercial and industrial properties at the Tejon Ranch Commerce Center and oversees the company’s oil, gas and mineral interests, as well as all easements on the ranch.

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Local car dealerships withstand whirlwind decade By Diana Greenlee

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tough economic climate created a fiscal tsunami for many companies over the last decade, but several local car dealerships, stalwarts in the Bakersfield business community, have endured despite threatening headwinds. Jim Burke Ford and Lincoln Vice President and General Manager Joe Hay, 36, said profit margins are tight in the industry – about 2 1/2 cents for every dollar earned. He said employees are their largest expense and during the recession their workforce numbers dwindled along with auto sales, which he said dropped 40 percent “almost over night.” “2005 was our best year ever; we had 300 employees,” he said. “We have 260 employees today.” Customers have since returned in

droves, but freshly minted regulatory requirements still make hiring choices critical, according to Hay. Bad employees can be a costly mistake. “Health care costs have increased; we now have a sick pay law and increasing minimum wage,” he said. “We want to grow cautiously.” The GM said the executives at Jim Burke formed a strategy committee enabling them to weigh in on all hiring

Having a flexible staff allows them to withstand the economic and seasonal volatility because they can transfer folks as opposed to letting them go. — John Pitre, Motor City

decisions. He said the think tank is able to pull together ideas to streamline the operation, cut costs and increase efficiency. “It’s a management check point,” he said of the committee. Hay says fixed expenses, such as rent, utilities and employee 401K contributions, have continued to climb, but even small changes add up to big savings. “For one thing, we’ve gone to drinking fountains instead of water bottles,” he said. The dealership’s also shed several brands as a cost-cutting measure, the most recent being Jaguar last year. He said removing the less popular brands from the showroom allowed the company to prioritize and focus its efforts. “We decided we’d rather be really good at being Lincoln and Ford,” said the GM. Conversely, Haddad Dodge KIA Dealer Principal Chuck Haddad said the economic downturn provided them an opportunity to expand their business, and now the family owns stakes in multiple dealerships, including Jeep, BMW and Nissan. “Altogether we own 10,” he said. The Lebanon-born entrepreneur started the Dodge dealership in 1974 when “the population was 65,000; now it’s like 350,000 in the city of Bakersfield – the county, more.” The longtime businessman attributes the dealership’s longevity to strong management practices. He said it’s necessary to study the community and when economic

August / September 2015

downturns hit – act decisively. “You’ve got to trim inventory and when anybody retires or quits; you never replace them,” he said. Motor City Chief Operating Officer John Pitre said they cross-train employees to cover multiple departments. Having a flexible staff allows them to withstand the economic and seasonal volatility because they can transfer folks as opposed to letting them go. Pitre, 57, said he’s alert to economic changes, but because Motor City offers multiple services, such as body repair and rental cars, he says they are insulated from some of the challenges their competitors face. And when one Kern County industry is slow, it creates an opportunity for others to thrive. He says high interest rates are the highest deterrent to car buying. “When oil is down, ag is excited because some of their costs went down and they can afford to buy new trucks,” he said. Hay agrees. He says Jim Burke Ford is “back on pace” with sales returning to prerecession levels, and they’re busy revamping their storefronts. The GM says there’s been a Ford dealership in Bakersfield since 1913; the recession was tough, but sometimes you just have to weather the storm. “Ford didn’t take a bailout. They leveraged their logo, buildings and every patent they owned,” he said. “That’s what they used to do. You just buckle down instead.”

August / September 2015

KERN BUSINESS JOURNAL

Quality, customer service give local stores edge over large chains By Ellen Ewing

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hen it comes to competing with larger grocery chains, locally based meat counters focus on their customers instead of cost and price wars. “We all know our customers very well,” said Megan Vanderhorst, a meat server at Cope’s Food Fair. “We are one-on-one with our customers. We don’t just put stuff out like at bigger stores. I’ve been here for nine years, and it’s always been that way with all of us.” Vanderhorst believes that being adaptable to customer needs is key to maintaining high sales numbers. “We offer custom cutting; customers can choose whatever they want,” she said. “We get about 200 customers a day. A lot of them are regulars that have been here for years. A lot of them come in every single day.”

“Sixteen years ago, my father saw a need for a Hispanic-style butcher shop. We’d drive clear across town to shop at one. Everyone said basically my parents were stupid because they had no experience running a butcher shop. We started from the ground up to make a traditional, rustic-style shop.” —Luis Diaz Jr., Carniceria La Carreta

At Carniceria La Carreta, focusing on the customers helps the store stand up to larger stores. “Customer service, cleanliness and high-quality products are what we focus on for us to stay relevant in the market,” said

Luis Diaz Jr. “Sixteen years ago, my father saw a need for a Hispanic-style butcher shop. We’d drive clear across town to shop at one. Everyone said basically my parents were stupid because they had no experience running a butcher shop. We started from the ground up to make a traditional, rusticstyle shop.” The Diaz family is currently planning a second location that Diaz calls a “hybrid style.” “We’re aiming for a Hispanic and American style store at our new location in the Rosedale area. We don’t have just one demographic walking in the door. We have Asian, Indian, Muslim and black customers, and we cater to all of them. There’s a wide range in the community, and we’re trying to meet every part of the demographics,” Diaz said. Efrain Fonseca, manager of Carniceria Rancho Grande, believes that the quality and freshness of his products and the fast service are what set him apart from places like Wal-Mart and Costco. “We serve people as fast as possible and we serve everything fresh,” Fonseca said. “We’re more like a convenience store. It takes longer to serve people at the larger grocery stores.” When it comes to actually competing with larger grocery stores, Vanderhorst says there’s nothing to be concerned about. “We really don’t compete with the larger chains. We’ve never lost business. A lot of people refuse to go to Wal-Mart because this is a home to them,” she said. Fonseca also is not worried about competition. “I don’t really feel threatened by larger grocery stores,” he said. “I don’t have to worry about prices because of our convenience and quality.” And quality erases any concerns about competition for Diaz. “The quality speaks for itself,” he said. “The beef or chicken we sell is locally grown. We partner with Harris Ranch. My father chooses to buy local, quality, fresh products. We’re going to pay more, but we know our customers are going to buy it. Basically, you’re going to eat the same thing we eat at home. What’s on your plate is what we put on our plates.”

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August / September 2015

Retail suited for the Seven Oaks lifestyle By Laura Wiener

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PHOTO BY FELIX ADAMO

Grand Island Village features an imported fountain as part of its aesthetics.

ead south on Buena Vista Road from Stockdale Highway and expect many pleasant, fresh surprises popping up along the corridor. At Ming Avenue and Buena Vista Road, the Tuscan-designed Grand Island Village is now fully leased and home to many local businesses. Dining selections include the popular Wiki’s Wine Dive & Grill and the soon-to-open Sol Y Laura Wiener Luna, featuring delicious authentic Mexican cuisine and a beautiful outdoor seating area complete with the soothing sound of a rich and elegant imported water feature. Recently opened Opulent Salon di Belezza is now accepting new clients. The nearly 4,000-square-foot, state-of-the-art day spa features 44 service providers, including stylists, aestheticians, a massage therapist and nail care professionals offering a most relaxing experience for both men and women. “We can’t say enough about how delighted we are to have selected this Seven Oaks neighborhood as Opulent’s home. The incredible location and the careful attention to detail at Grand Island Village have most certainly contributed to the new clientele we see daily," said Julia Smith, co-owner of the spa. Next door, the Beautologie Southwest Medspa will open in October. Dr. Milan R. Shah, a specialist in

aesthetic and laser medicine and the medspa’s medical director, said: “All procedures will be medical grade – administered by physician-supervised RNs and NPs. The group will offer all noninvasive cosmetic procedures, including laser, injections, fillers, chemical peels and more. Our patrons can look forward to premium membership programs for nonsurgical enhancements in the nearly 2,000-square-foot facility with six patient rooms.” For fitness, In-Shape gym has arrived at Seven Oaks with a 30,000-square-foot “crown jewel.” Located directly west of the Valley Republic branch at Ming and Buena Vista, In-Shape’s newest Diamond Level Health Club offers a resort-like outdoor pool area, complete with saunas and cabanas. The newly opened club offers cycling classes, yoga and group exercise studios, a training zone, and one of our city’s most grand and entertaining of kids’ clubs. Completing the center this fall will be Runaway Gypsy Boutique, featuring high-end women’s apparel, a State Farm insurance agency and Magic Real Estate offering residential and commercial services. Farther south at White Lane and Buena Vista Road, adjacent to Stockdale High School, is Mustang Square. “Bolthouse Properties has done an incredible job developing the southwest/Seven Oaks commercial and retail area. We’ve found our move here to be one of the smartest business decisions we’ve made,” said Jim Bailey, owner of Broken Yolk Cafe. Of the 16 Broken Yolk restaurant franchises in Southern

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August / September 2015

Continued from page 14 California, Bailey’s new location broke all records for a grand opening month of sales this past April. Coming soon to the center is Dr. Chen’s Premier Family Health Care and preleasing has begun for the next phase, which will be available in early 2016. This retail center is well located near the current residential areas of Seven Oaks, Belcourt at Seven

Retail Update Grand Island Village 100% Leased

Tenants: • • • • • • • • • • • •

Valley Republic Bank Grand Island Dentistry Dewar’s Express Sport’s Clips Elegant Nails & Spa Bakersfield Eye Care CVS Pharmacy Jersey Mike’s Wiki’s Wine Dive & Grill Sully’s Chevron Gas and Store Opulent Salon di Belezza In-Shape Diamond Health Club

KERN BUSINESS JOURNAL

Oaks and the expanding Seven Oaks Business Park. “The quality of the businesses and retail tenants being attracted to the Seven Oaks/Buena Vista corridor will ensure that a tradition of excellence remains here for generations to come,� said Bruce Davis, vice president of Bolthouse Properties. — Laura Wiener is the owner of Spectrum Communications.

• • • • • •

Rubio Lighting State Farm Insurance, Keith Goree, Agent Magic Real Estate MPM Commercial Real Estate Runaway Gypsy Boutique Beautologie Medspa

Mustang Square Tenants: • • • • • •

Cruz Thru Car Wash Walgreen’s Drug Store Jack in the Box Taco Bell Kern Schools Federal Credit Union Broken Yolk Cafe

Coming Soon:

Coming Soon:

• Sol Y Luna Mexican Cuisine

• Premier Family Health Care

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August / September 2015

Restaurant demand in Bakersfield reaching new heights By Nathan Perez

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“doughnut” know how to put this but, Bakersfield has a love affair with food and the national and regional restaurant scenes want a “pizza” the pie. Enough with the puns, food in Bakersfield is serious business. How serious? Consider this: Bakersfield has consistently ranked in the top 10 list for retail sales in the state. Of those retail sales, restaurant sales have played a major role. Bakersfield households spend $5,245 annually at restaurants compared to Nathan Perez the state average of $4,816 in annual sales per household. In 2013 alone, restaurants in Bakersfield reported more than $600 million in sales, and that number is expected to grow in 2015. With those numbers, it is clear to see why every time you turn your head in town, there is a “coming soon” sign for a new restaurant. This influx has presented a new problem: location. Retail property supply in Bakersfield is very tight, and it only gets tighter for properties that require a drive-thru, sufficient parking and the right visibility. Fortunately, where there is a problem, there is opportunity and many local, regional and out-of-state developers are

taking advantage of this opportunity by developing prime land in high-traffic areas that offer everything a restaurant needs in a property. As of this writing, there are about seven retail developments throughout Bakersfield that will offer space for food tenants, with more developments coming next year. The restaurants that are clamoring for space in Bakersfield fall into two categories. In the first category are those that already have locations and are well established here. Their strategy is to expand and open more locations in order to meet the growing demand for food and push out competition. The greatest demand for retail locations comes from those that are in the second category – those that do not currently exist in the local market and are opening their first locations here. An ever-growing list of these restaurants includes the Massachusetts-based Dunkin Donuts that has already opened a handful of locations in the state since 2014. Most will remember, and still lament, the closing of Krispy Kreme in 2005 that was located on Stockdale and Gosford. Its first location on its return to Bakersfield is already under construction at 9410 Rosedale Highway, the former A&W. Blaze Pizza, a leader in the growing trend of do-ityourself pizza that allows customers to choose their own

Corner Bakery Cafe

ingredients, will have its first location in Bakersfield at California Pavilion, the former Three-Way Chevrolet lot on California Avenue and Easton Drive. Others that have secured sites or are actively seeking sites in Bakersfield are Corner Bakery Cafe, Smashburger, BurgerFi, The Habit Burger Grill, PizzaRev, Pieology, Deli Delicious, Menchie’s Frozen Yogurt and many others that are expected to seek sites in Bakersfield soon. – Nathan Perez is a sales associate at Cushman & Wakefield | Pacific where he specializes in retail properties. Perez represents retail tenants and landlords at the national and local level.

Basics of content creation

Sprains common workplace injury

n the world of social media, content is constantly being published every single day on more and more platforms. Individuals are being oversaturated and, in turn, tuning out the noise. The best approach is to stop interrupting what individuals are captivated by and create useful and informative content for your customers in order to build loyalty and brand awareness and convert prospects into customers. Developing good content does not have to be time consuming, as many small-business owners may believe. It does, however, require generating content that appeals to them and draws them to your content. Let’s take a look at some ways you can do this. Use images to drive engagement – With visual platforms such as Instagram, Pinterest and Snapchat, it is easier than Mira Patel ever to tell captivating stories and imitate meaningful connections based on mutual areas of interest. Using a video or an image on most Facebook posts is a natural way to promote your company culture and show your personality and the human side of your brand. Connect with your audience – Put yourself in the audience’s shoes and think about the type of content you would want to see on your social media. Would noisy content prevent you from engaging on a post? What would make you stop and read a post and not continue to stroll? Is it a compelling image, word or video? Let your audience share their brand passion – Permitting your fans and followers to show off their personalities in a brand-relevant way is a win-win. This allows you to gain a better understanding of their needs and interests, and they get a stage for self-expression and creativity. It is also a great way to develop original curated content, which the mass public can relate to. Remove the apparent barriers into conversion – More often than not, people have questions that need to be addressed prior to making a purchasing decision. Help support their research process and clear up the confusion. Your content can help guide them toward your business and help the consumer feel like they are making the right and easy choice. Be creative in incorporating your products and services into posts so it does not come across as an advertisement and people will be interested in what you have to post.

By Dr. Mark Pucek

I

Content creation can be intimidating, especially if you are just starting out. To name a few, resources such as Canva, Easel.ly, Pattern Library and Recite are just some of the many online applications that can help you look professional with minimal costs. Do not get discourage; good, quality content may be right in front of you! – Mira Patel is the owner of Six23 Media, a local marketing and public relations consulting firm.

M

illions of people report nonfatal workplace injuries each year – injuries that are all too common and seem to recur year after year. Accidents at work can happen in an instant: a minor slip, tripping over something, a shaky ladder or forgetting to put on work gloves. The important thing is to ensure that employees fully recover from workplace injuries. U.S. HealthWorks operates more than 220 clinics and worksites in 20 states. The top five injuries that we’ve treated this year include: 1. Back sprain 2. Finger cuts 3. Arm or shoulder sprain 4. Neck sprain 5. Wrist sprain This list is dominated by various types of sprains, which basically means the tearing or stretching of ligaments. Sprains can range from minor – healed with just a few days’ rest and icing – to severe, with major swelling and extreme pain. When not properly treated, sprains can result in chronic pain and joint instability. These nonfatal injuries result in a loss of productivity in the workplace, stress for both the employer and injured employee, and obviously physical pain and discomfort for the injured employee. According to the most recent data from the Bureau of Labor Statistics, there were almost 1 million workplace injuries in 2013 that resulted in days away from work, with a median of eight days missed due to nonfatal injuries. The list of injuries remains relatively unchanged from years past. Despite efforts to ensure safe workplaces and train workers

to prevent these common injuries, they still occur from time to time. The most important things to do once an injury occurs is to help the employee recover quickly and ensure he or she is fully rehabilitated so the injury doesn’t cause lingering pain or discomfort. Full recovery is essential to employee health and safety. While employers cannot prevent some of the workplace accidents that occur, there are a few ways to help reduce risk. We know that most follow OSHA guidelines, but a few sensible reminders are helpful: • Ensure that walking and working spaces/ surfaces are cleared of clutter and debris to prevent tripping and falls • Instruct all new employees on proper lifting of heavy objects and have current employees revisit proper procedures annually • Provide protective gear, including safety goggles, gloves, eye wash, etc. • Never leave sharp corners or blades exposed • Employees should be encouraged to stretch daily at home so they’re more limber and less susceptible to sprains • Provide ergonomically appropriate chairs for those who sit frequently Accidents happen, of course. The keys to prevention are to raise awareness and encourage proper safety practices and, if an injury occurs, follow through with thorough treatment and healing so that individuals can recover quickly and get back to work safely. – Dr. Mark Pucek has served as chief medical officer for U.S. HealthWorks since 2013. In this role, he oversees medical operations for more than 200 centers and worksites in 20 states, ensuring that each center provides quality care and efficient, effective service.

August / September 2015

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Convenient. Distinctive.

GRAND ISLAND VILLAGE

CURRENT TENANTS HValley Republic Bank H Dewar’s Express H Elegant Nails & Spa HCVS Pharmacy H Wiki’s Wine Dive & Grill

H Grand Island Dentistry H Sport’s Clips H Bakersfield Eye Care H Jersey Mike’s H Sully’s Chevron Gas and Store

NEWLY OPENED

Located in the heart of Seven Oaks, Bakersfield’s most elegant master planned community, is one of the area’s most convenient, inviting neighborhood/specialty shopping centers. Now fully leased, Grand Island Village, on the northwest corner of Ming Avenue and Buena Vista Road, offers dining, personal care services, a new 30,000 square foot diamond level health club, and more.

COMING SOON

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Keith Goree, Agent

RUBIO LIGHTING

2000 Oak Street, Suite 250 Bakersfield, California 93301

661.323.4005 www.bolthouseproperties.com

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August / September 2015

Business growth’s impact on Bakersfield

Plan well and prosper By Jacqui Kitchen

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akersfield has a long and fascinating development history that could inspire a whole line of specialinterest documentaries, novels of varying genres and maybe even a few reality shows. Our city started with a simple purpose – founder Thomas Baker offered up his “field” as a resting spot for a variety of travelers seeking a place to reinvigorate themselves before beginning or continuing their journey to their ultimate destination. Bakersfield’s central location has continued to serve us well and our city has worked hard to develop an image as a convenient and affordable launch pad for anything and everything California. Bakersfield now ranks as California’s ninth largest city and Bloomberg has deemed us the second fastest-growing city for millennials. Bakersfield even recently earned a nod as the nation’s top city for “family activities and fun,” according to a recent analysis by WalletHub.com. They found that we have a suitable number of playgrounds, parks and other attractions, along with short commute times and an attractive cost of living – at least by California standards. We are home to robust industries in agriculture, energy production, logistical distribution, education, state-of-the-art medical facilities and much more. All in all, Bakersfield has done well for itself and our community is nothing to scoff at. Yet there seems to be a growing hunger among Bakersfield residents, both young and old, for something more. There is a pronounced longing to take our city to the next level and to be on a top 10 lists for things like best education system, healthiest population, best place for business, most interesting arts district, most walkable or most inspiring spot for foodies. There are excited rumblings throughout the community expressing a desire for well-planned growth, modernization and continued progress.

There is a pronounced longing to take our city to the next level and to be on a top 10 lists for things like best education system, healthiest population, best place for business, most interesting arts district, most walkable or most inspiring spot for foodies. And it certainly appears that the development community is aware of the growing appetite for new growth in Bakersfield. The city has experienced a 40 percent increase in the number of building permit applications since 2012 (thanks in part to residential solar installations), and the planning department is taking frequent meetings with developers who want to begin the process of bringing new residential communities, commercial shopping opportunities, healthcare facilities and more to the city. In fact, during the first half of 2015, city staff received more than 40 applications to construct new buildings on existing zoned property throughout the city, compared to about 30 at this time last year and fewer than 25 in 2012. These types of applications include new warehouses, multi-family developments, new retail locations and more. We have seen new development at The Shops at River Walk, groundbreakings throughout town

PHOTO BY FELIX ADAMO

Jacqui Kitchen, Bakersfield planning director.

for businesses that are brand-new (and returning) to Bakersfield, growth of hospital campuses and athletic club chains and an overall strong investment in our community. This latest growth spurt begs the question: How does growth affect the city and is it a positive thing for Bakersfield? An even more interesting question that may hit home with residents is: Can Bakersfield retain its beloved hometown character, yet evolve into a urban metropolis that attracts new and exciting business, diverse shopping experiences and an increased variety of community events that are geared to all groups – families, high-schoolers, millennials, retirees and everyone in between? The answer to these questions appears to be a resounding yes! Growth within our community can be a remarkably positive experience and the evolution of our city to the next level can be achieved without sacrificing our cherished identity as a “big city with small-town charm and character.” Shiny new development projects have many attractive qualities as potential sources of tax revenue, job generators, opportunities for exciting new services and more. The key to properly accommodating new growth and maximizing the potential positive impacts to our community is balance. This means combining the desire for growth with efforts to plan with clarity, vision and with real consideration of input from the local community. There are countless factors that contribute to the way a community develops and when balanced effectively, these factors can foster growth with a pragmatic, yet creative approach. This means balancing all of the factors that can impact growth – including the recent challenges related to the statewide drought, increases in the number of cars on the roadways, finding compatibility between existing and proposed land uses, continuing to be a business-friendly community, and creating a city that is exciting and attractive. A key step is to plan in a way that accounts for all of the “hard costs,” such as impacts to municipal services and the environment but still encourages creativity and inspires developers to think “outside the box” – quite literally. A recent article in Western Real Estate Business identifies a number of fresh new ideas that are occurring across the nation. Empty shell buildings that once housed prerecession “big-box” stores are being converted into smaller “boutique” suites that house local businesses and

national chains side by side. One example is a former 100,000-square-foot Kmart in San Clemente that is being repurposed to become a Sprouts, SteinMart and Sport Authority – yes, all in one building! These businesses have agreed to deviate from their usual corporate building prototypes to try something new – to recycle an old building and revive an existing commercial space into a blended center of activity. Now, close your eyes for a moment and visualize a few vacant boxes around Bakersfield that could benefit from this approach. What kind of positive impacts would those shopping centers and surrounding neighborhoods see if new life were infused into those vacant shell buildings? Positive growth can be achieved by using a variety of tools such as creative zoning, flexibility and an open-minded approach to new and different types of development in our urban core areas, such as downtown Bakersfield. Both the state and federal government have passed clear mandates for higher-density sustainable growth and have allotted funding to help these efforts. In order to take advantage of these resources and still retain our unique Bakersfield identity, it is important to get out in front of growth and plan for it. The decisions that we make today will ultimately guide how Bakersfield will look 10, 20, 30 years from now. Together, we can formulate a vision of where new commercial and industrial growth should go, where expanded logistical and transportation centers make sense, suitable locations for much-needed multi-family housing and schools, how to allocate resources to achieve our goals and also where the community would like to retain the existing character of established neighborhoods. These ideas and more can help Bakersfield continue to develop its brand as a cutting edge community while maintaining our identity as a genuine center of hospitality. Partnerships between the community, private developers and public officials are a key step in ensuring that Bakersfield can continue on its upward trajectory as a true destination spot. Simply put, the opportunity is right in front of us to plan well and prosper. — Jacqui Kitchen is the planning director for the city of Bakersfield.

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Three tools on BusinessUSA to help retailers find more customers 2. Grow your business with exporting

By Chasity Coquat

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usinessUSA is a partnership of the U.S. Department of Commerce and 24 federal agencies to help entrepreneurs and businesses of all sizes find the right tools, information and services to prosper and grow. BusinessUSA offers apps such as Doing Market Research, Grow Your Business and Franchising Resources that can help retailers and franchise operators find new markets, new customers and expand through franchising. Here are three examples of people matched to resources on BusinessUSA that can help retailers find new customers:

1. Market research tools A Kern County restaurateur is searching for new customers with a second location. BusinessUSA can help her evaluate a new market with the SizeUp Tool. If she is interested in opening up an Italian restaurant Chasity Coquat in Bakersfield, she can enter “Bakersfield” and “Restaurant” and the SizeUp Tool will display the competitors in the area along with advertising locations. The tool will also allow the business owner to benchmark her business against other local restaurateurs by entering business information such as number of years in business, number of employees and annual sales to see how the business compares to local competitors.

Perhaps a Kern County boutique is considering expanding overseas and wants to learn more about getting started as an exporter. She has started the process by listing her products on her company website and establishing an eBay store. The BusinessUSA Explore Exporting app can help her assess her company’s export readiness and provides a list of specific steps and articles to guide her to prepare to find international customers.

3. Expand with franchising A returning veteran is interested in franchising as a business opportunity. The BusinessUSA Veteran’s app offers access to articles and tools such as Introduction to Franchising and Franchising Services to help entrepreneurs and veterans learn about and get started in franchising. Introduction to Franchising defines common terms and concepts of franchising and offers a course to determine if franchising is a good option to expand or start a business. If you are interested in further exploring franchising as a business opportunity, Franchising Services provides contacts, market research and trade leads. In addition, there is a compilation of links to use to begin planning out key components of establishing the franchise. For more programs to help retailers and franchise operators grow their businesses, it might be helpful to speak with a local adviser or meet experts at a local event. Use the BusinessUSA Resource Locator Tool to find local business development events and business advisers.

BusinessUSA home page

To learn more about this and other valuable federal, state and local information, tools and services for business, you can visit BusinessUSA online at business.usa.gov, send an email, talk with us via chat or call toll-free 844-249-8722. You can also reach BusinessUSA via following us on Twitter @BizUSA (twitter.com/BizUSA) or on LinkedIn (linkedin.com/company/business-usa). Whatever channel you choose, help is only a call or click away. — Chasity Coquat works as business incubator account manager for BusinessUSA, an initiative of the United States Department of Commerce, based in Washington, D.C. Prior to joining BusinessUSA, she worked as an entrepreneur, operating a fireworks stand in Three Rivers, Texas.

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A checklist when starting a new business By Shelby Parker

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here are many things to take into consideration when establishing a new business. Do you go in with a new business partner? What licenses are you going to need? What is your mission statement? A lot of people have great ideas, but don’t always follow through with the rest or know what the next steps are. While every business owner will have a different success story, and every business will require different fees and permits, there are many guidelines and tips that can get you started. Before you get into the logistics and regulations, it’s important to start with the basic grunt work of homework and research and working on your business plan. Kelly Bearden, director of the California State University, Bakersfield Small Business Development Center, says their department starts with the business model generation when working with clients. It is also a template that can be found online and consists of nine boxes that will help entrepreneurs break down the important factors of what they hope their business will be. This plan is evolutionary, as it will allow for changes and updates as the idea continues to grow. “It does get hard when you’re starting a business, so you want something that you’ll follow through with,” said Tomeka Powell, the new president/CEO for the Black Chamber of Commerce. Not only should it be something you’re passionate about, but it should fill a void that you see missing in your community – something different that you feel people need. “If you’re able to do something you’re passionate about, and you see in the community a need or a void that you’re going to fill, then you’re off to a really good start,” said Miranda Whitworth, vice president of the North of the River Chamber of Commerce. Powell says people should also consider whether the business is going to set you apart from everyone else or is someone else already doing what you’re doing.

“Your online presence is going to be one of the most important things when it comes to marketing your business.” — Miranda Whitworth, vice president of the North of the River Chamber of Commerce

After the planning stage, you move into more of the fundamentals – consider whether you’re going to be a sole proprietorship, partnership, etc.. If going into business with a partner, it’s important to consider whether it’s the right one, because it can ruin a good friendship or relationship if the business doesn’t work out. Next, you’ll want to purchase a business license. The cost depends on how much revenue you plan on bringing in. With minimal employees and minimal revenue, it might cost around $31 and will have to be renewed every year. You will also need to determine what regulations you’ll have, which depend on the business and industry you are in, and also goes back to your prior research. There are also local permits, depending on if the business is run out of your house or from a business address.

At this point, you can file your fictitious business name to make it official and that will allow you to open your bank account. When establishing a new business, you’ll not only want the moral support of family and friends, but you’ll need the financial support as well, whether it’s through your savings or through small-business loans. Whitworth says you’ll need collateral to get things moving along. “A lot of people want to go into business and they have this idea, but if it’s not going to make them money, they aren’t going to be in business very long,” said Powell. Bearden believes that there should be a market for your product or business, not something that is oversaturated. While it’s great to be all in with your business project, Powell advises not to quit your day job. The money you’re making from your day job can help supplement the costs your new business needs. “You don’t have to have thousands upon thousands of dollars. You can start small and work from there,” said Whitworth. With social media and the ever-changing ways of technology, it’s important to not only have a Facebook and Twitter, but a website that will represent your image and brand in the proper way. It’s part of your identity and what you convey to your audience will either convince them to go with your business or move elsewhere. “Your online presence is going to be one of the most important things when it comes to marketing your business,” said Whitworth. “If you want to be taken seriously, develop yourself a website.” Your website doesn’t have to be anything fancy – it

can even be as simple as one page listing your basic information. Almost everyone has the tools, such as an iPhone for pictures or a phone to send out a post through social media or a blog. There are a number of easy websites that allow you to drag and drop your content, which would allow you to design it yourself, such as Wix or Squarespace. If technical skills are not your strength and you have the money to hire someone, that’s even better. Technology allows the world to be at your fingertips and going into business allows you to take advantage of those opportunities. While starting a business can be overwhelming, there are plenty of classes and resources in the community that will help with your business plan or offer advice as you go. “There are a wealth of resources for small-business owners and entrepreneurs here in Kern County,” Whitworth said. North of the River’s Chamber of Commerce hosts monthly luncheons for its members with professionals in the community who will come in and talk about marketing or advertising, as well as the kind of buzz you can generate online for free. The Hispanic Chamber of Commerce offers classes on professional etiquette in the office to social media for small-business owners, and the Black Chamber of Commerce offers a 10-week course — a Small Business Academy — in the fall that will tell you everything you need to know about going into business. They also partner with the Small Business Development Center at CSUB to refer them to a consultant who will help them with their business plan. SBDC also hosts webinars every third Wednesday of the month, which are free of charge and can be found at csub.edu/sbdc.

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‘Coworking’ trend arrives in downtown Bakersfield By Kelly Bearden

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cott Burton and Tabari Brannon have started with a great idea. Now they need to identify its potential and market their idea to customers. It’s an evolving process that is being assisted by California State University, Bakersfield Small Business Development Center. Burton, a software engineer and longtime telecommuter, and Brannon, a hospital chaplain and freelance Web and graphic designer, were brought together by a chance Internet encounter. A woman traveling through Kelly Bearden Bakersfield posted an inquiry online seeking the location of a “coworking” space, where she could work while visiting the city. Both Brannon and Burton responded that there was no such space but that there should be. After an exchange of contact information, the men began collaborating on an idea to establish what they now call MESH Cowork, which is located in a 420-square-foot space above Dagny’s coffee shop in downtown Bakersfield. According to the fledgling company’s website, MESH Cowork “seeks to bring together independent workers into a cohesive community and create an environment where they can get work done and experience success. ... Why work alone in isolation and disconnected from other creatives? Come to a place where you will experience more creativity, confidence and productivity.”

The concept is pretty simple: For a variety of fees ranging from $199 a month for a permanent desk to an hourly rate of $1.50, entrepreneurs, independent contractors, freelancers and telecommuters can bring their laptop computers to the space, which is equipped with high-speed Internet. MESH Cowork provides the “creative element” often missing in the typical work-at-home environment. It provides camaraderie among participants and collaboration between people who may be working in similar or related fields. MESH Cowork co-owner Brannon recently told a local news reporter that he would like to see relationships built at MESH Cowork that can nurture homegrown businesses. “That’s one thing Bakersfield’s entrepreneurship community was lacking, a consistent meeting place where we would network,” Brannon told The Bakersfield Californian. According to projections from the Bureau of Labor Statistics, about 40 percent of the nation’s workforce, or 65 million Americans, will be freelancers, temps, independent contractors or solo-preneurs by 2020. Some of these “disconnected” workers will be content to work in coffee shops or home offices. However, coworking lets individuals work alone, while interacting with others. Workers who roll out of bed and sit at their kitchen tables or in a back bedroom office often miss the creative energy of a traditional office. Actually going to a different space — a cowork space such as MESH Cowork — can fill the gap, while removing distractions and increasing productivity.

In addition to providing work space, MESH Cowork has started offering classes. The company’s website features beginning programming coder dojo classes for kids ages 8 to 11. A broader range of classes for children and adults is being planned. Consultants at the SBDC Center in Bakersfield are helping Burton and Brannon evaluate their new company’s potential and the business community’s needs. A business plan will help Burton and Brannon gradually add appropriate services and identify funding sources. Consultants also are available to help MESH Cowork develop and implement a marketing strategy that will use traditional advertising, as well as the latest digital marketing techniques to help spread the word about the unique services the local company offers. For more information about MESH Cowork, go to meshcowork.com. The company’s shared working space is located at 2005 Eye St. Call 769-6374. The Small Business Development Center at CSUB is one of five service centers overseen by the University of California, Merced SBDC Regional Network, which is a partnership between the university and the U.S. Small Business Administration. The center at CSUB assists entrepreneurs and smallbusiness owners in Kern, Mono and Inyo counties by providing free one-on-one consulting, small-business training and research. For more information, go to csub.edu/sbdc.

— Kelly Bearden is the director of the California State University, Bakersfield Small Business Development Center.

FOR SALE 2828 Eye Street

1,584 square foot single-tenant medical office building on a 6,100 square foot lot. The property is adjacent to the campus of Adventist Health’s San Joaquin Community Hospital. The building features several exam rooms, private doctor’s office, and administrative and reception areas. The property has a private exterior walkway connecting its access to on-street parking along the frontage and private parking behind the building. The property is zoned C-2 . Regional Commercial within the City of Bakersfield.

FOR SALE Phase I of Parcel Map 10606

Finished lots ready for industrial or commercial development. Located within the City of Bakersfield, Parcel Map 10606 is developed into several industrially-zoned lots that allow for a variety of commercial and industrial uses. This offering of lots features finished improvements such as streets, curbs, gutters, sidewalks, utility stubs, and more. Several lots are available ranging in sizes from 9,600 square feet up to 25,398 square feet. Woodmere Drive is highly accessible from both Ashe Road to the west and Stine Road to the east. Seller will consider offers for a build-to-suit or ownerfinancing. Click on the link below for lot availability, sizes, and prices.

FOR LEASE 3401 Chester

Office and retail space available in the historic Ice House specialty center. Located at the signalized intersection of Chester Avenue and 34th Street, The Ice House is well-positioned to benefit from high traffic counts and its proximity to downtown amenities, and is less than a mile from Memorial Hospital, San Joaquin Hospital, and the Kern County Museum. Suite O/N is designed for general office or retail uses, with private office bullpen areas. Located west of the signalized intersection of Chester Avenue and 34th Street.

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New and old major risks requiring retailer attention By John Pryor, CPCU, ARM

However, ISO endorsements CG2451 and CG2452 offer “limited coverage” for he newest risk facing retailers “designated unmanned aircraft.” These (and others) was pioneered by should be discussed with your broker for Jeff Bezos, CEO of Amazon. your organization’s specific needs. com: delivery of products by But first you need to be certain you’re drones, more accurately, UAVs – using UAVs lawfully! unmanned aerial vehicles. From this “above-ground” risk, let’s UAVs are growshift gears and go to a major “undering in use by retail ground” risk. stores, real estate Business owners need to take brokers, construction essential preparatory steps in anticipation firms and car dealers, of the “really big one” that’s coming – an not to mention pipeearthquake, of course. According to our line inspection by oil scientific community, it’s overdue here in John Pryor companies and news Kern County. The last “big one” here was gathering by media in 1857 (not 1952, as most of us think.) organizations to mention but a few. Usage In addition, retailers need to review if is reported to be more widespread than this risk extends to major suppliers and most of us realize, despite the fact that customers. Federal Aviation Administration rules for Remember Fukushima, Japan, in 2011? UAVs are not anticipated until 2016. FAA First and foremost, you need a written regulations currently say UAVs are simply disaster plan. This helps you and your emillegal to use in a commercial mode. ployees personally survive the catastrophe. However, through April 2015, 69 However effective such plans are for your businesses were granted Section 333 personal survival, they typically fall short exemptions, principally for research and of helping your business survive! testing. All others are construed to be operBusiness continuity planning is what’s ating without authority – at least for now. needed. A well-drafted BCP focuses on Exempted businesses are listed at faa. your business and also on supply chain gov. According to the FAA, an estimated risks and major customers. 30,000 commercial drones could be in These steps are critical because they our skies by 2020. must be proactively addressed in advance! The risk of greatest concern to You can’t react effectively to an event corporate risk managers is “invasion of when it’s all around you. No one can privacy.” However, virtually all liability expect to set a plan in motion if it’s not insurance policies have a UAV exclusion already in place! including privacy issues: Also, the plan should be practiced – sometimes called a “tabletop drill” – to • No coverage is provided for personal assure the plan will be implemented injury or property damage arising out properly despite the inevitable stress of the of the ownership, maintenance, use or event. An excellent opportunity for a drill entrustment to others of any aircraft. is on Oct. 15 at 10:15 a.m. You can join That’s absolute, unequivocal and indis- millions of Californians in this drill by putable. If you’re using UAVs, you need registering your business to participate in to ask your insurance broker to apply to the Great California ShakeOut at shakeinsurance carriers who specialize in out.org/california/index.html. aviation insurance. Lots of data about disaster planning are available on the Internet should you Curiously, a typical homeowners prefer a do-it-yourself approach. Or you policy offers modest liability coverage can work from my new book mentioned for noncommercial UAV use because below. If not, Kern County is blessed with “aircraft” is defined as: an ample supply of qualified consultants who can quickly and cost-effectively walk • Any contrivance used or designed for you through this process. flight, except model or hobby aircraft The key point is to be proactive. Don’t not used or designed to carry people or procrastinate. When the “big one” happens, cargo. you’ll be very glad you prepared. In the interim, you can enjoy the outcome of sound To be certain, you’ll want to get a written risk management: a quiet night’s sleep! coverage interpretation, including the risk of “invasion of privacy” from your insurer — John Pryor, CPCU, ARM, is a risk manthrough your insurance broker. agement consultant in Bakersfield and author In June, the Insurance Services Office of “Quality Risk Management Fieldbook” introduced new drone endorsements for published by International Risk Management commercial insurance policies. Most Institute in Dallas. Copies are available locally at Russo’s or at Amazon.com. of them expressly exclude UAV risks.

T Retail POS technology By David A. Milazzo

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n last year’s retail-focused KBJ, I discussed merchant payment services for the mobile microbusiness. Point of sale, or POS, technologies have never been better. With the rise of tablet computers, wireless networks, and companies like Square, Amazon and PayPal, a budding entrepreneur can set up shop anywhere. But what about payment systems for larger organizations? Cash registers have been largely supplanted by PC-based POS systems (just ask yourself the last time you actually heard the sound “cha-ching” David A. Milazzo while checking out of a store). As with all things technological, the wheels of progress never stop and the next transition is already upon us. iPads are quickly becoming the heart of modern POS systems. Connecting to barcode scanners, receipt printers, credit card swipers and cash drawers, they can manage any type of transaction. Additionally, the database holding the information for all your terminals is often moving to the cloud, creating a single place to reconcile all transactions regardless of geography or the number of terminals your business requires. But POS systems are like snowflakes as every type of business is unique. While a frozen yogurt shop may need to integrate a scale to weigh cups of cookies ’n’ cream, pizza shops will want to track vehicles and deliveries. In the service and retail space, a salon will need to integrate appointment scheduling, while a liquor store must keep current on alcohol shipping regulations. Some restaurants will sell gift cards while others offer loyalty programs that bring repeat business. Not to mention, many businesses are taking their offerings to mobile users with marketing, online shopping or advance order capabilities. The best solution is to implement a single system, tracking your customers and their purchases during the entire lifecycle, which hopefully is a constant carousel of market-

ing and transactions. As luck would have it, the next generation of POS developers have discovered this complexity and built software with flexibility and customization in mind while striving for an elegant and efficient setup. Most have chosen a full suite of compatible hardware offerings to simplify the installation. They’ll include mounting kits that connect perfectly to their specified card swiper or maybe the ideal printer to send orders to the kitchen. Whatever your business, a package exists that includes all the puzzle pieces with guaranteed compatibility. A recent deployment for the soon-toopen Temblor Brewing Company introduced me to Revel Systems (revelsystems.com). These POS developers are some of the best I’ve encountered, shipping all the products – iPads and all – preconfigured and ready to place on the counter. Temblor is quite a complex business with more facets than you might imagine. In addition to selling its local beer in pint-form at its gorgeous new brewpub, Temblor will distribute its products statewide and eventually nationwide. In addition to craft beer, they’ll prepare madeto-order food, offer gift cards and retail merchandise, and attend mobile events where they take their sweet nectar on the road. All transactional data is merged together in a cloud-hosted database, easily exported to its accounting software and running on a half dozen iPads scattered throughout the facility. For Temblor, Revel will be a great fit covering all aspects of its business. My best advice: Research and ask lots of questions of the providers you interview. Choosing a developer with a proven track record within your vertical market is the key. But don’t let fear of this new approach scare you away. Integrating a modern retail POS system can be a fast track to the elusive “cha-ching” – even if you have to make the sound yourself. — David A. Milazzo is the founder and principal of Bakersfield-based Macroscopic, an Apple enterprise technology consultancy focused on bringing Mac and iOS technologies to businesses, schools, agencies, and independent professionals. Send your questions to him via email at milazzo@macroscopic.net.

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California sets record, surpasses UK, France, Spain in installed solar capacity By Rhone Resch

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f California was a nation, it would rank sixth in the world in installed solar energy capacity. That’s pretty amazing – and one of the key takeaways from the latest U.S. Solar Market Insight Report, which was just released by GTM Research and the Solar Energy Industries Association. Today, California has more solar assets than nations such as the United Kingdom, France, Spain, Australia and Belgium, becoming the first state in the U.S. to top 10,000 megawatts (MW) of installed solar capacity and cementing its place as America’s solar leader. California made history in the first quarter of this year by installing 718 MW of solar energy, raising the state’s total capacity to 10,649 MW – enough to power nearly 2.6 million homes. The report went on to point out that California had big increases in Q1 across all solar sectors. Of the new capacity added, 231 MW were residential, 88 MW were commercial and 399 MW were utility scale. Together, these installations represented a $1.7 billion investment

PHOTO COURTESY OF BLOOMBERG

Aerial photograph of First Solar Inc.'s Desert Sunlight solar farm in the Mojave Desert.

across the state in the first quarter alone. When it comes to creating clean energy jobs and protecting the environment, California is showing the world how to get the job done. To put the state’s remarkable progress in some context, today California has 10 times more installed solar capacity than the entire nation had in 2007. We congratulate Gov. Jerry Brown, his administration, legislative leaders and the people

of California for being at the forefront of America’s efforts to create a vibrant and growing clean energy economy. California’s explosive growth in solar is due, in large part, to stable and effective public policies, such as the federal solar Investment Tax Credit, Renewable Portfolio Standards and Net Energy Metering. Nationwide, solar remains the fastest-growing source of renewable energy in the United States, and it

is supported by nine out of 10 Americans. In the first quarter of this year, California benefited from the completion of the massive Desert Sunlight project, developed by First Solar and located in the Mojave Desert. Desert Sunlight has the capacity to generate 550 MW of electricity, which is enough to power 160,000 California homes. The residential market also continued to flourish in Q1, with installed system prices dropping 4 percent year over year – down nearly 50 percent since 2010. The upswing in residential installations is expected to continue in the foreseeable future, especially in light of a recent report by the California Energy Commission, which shows that more than a quarter of all new homes being built in Southern California are being constructed with solar energy systems. Presently, there are 2,226 solar companies at work throughout the state, employing 54,700 Californians – and those numbers are continuing to grow. Any way you look at it, the sun is shining brightly these days on the Golden State. — Rhone Resch is president and CEO of the Solar Energy Industries Association.

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Chevron grant fuels robotics STEM program By Louis Medina

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hildren 18 and under growing up around Community Action Partnership of Kern’s Friendship House Community Center in southeast Bakersfield face a high poverty rate of 27 percent – and an alarming 66 percent if they are under 5 – according to the latest data from the U.S. Census Bureau. Many of these children could never hope to build and play with sophisticated robotic toys that cost hundreds of dollars. But thanks to a $10,000 social investment process grant from Chevron this spring, 29 Friendship Louis Medina House After School Program children – 21 boys and eight girls ranging in grades from fourth to eighth – were able to assemble and program Lego Mindstorm robots with help from a part-time science, technology, engineering and math (STEM) instructor from local technology education service company, Advanced Micro Resource. What was perhaps the most meaningful about this experience for Friendship House kids was that they became passive learners of skills that could one day open the door to success for them. “Robotics is a way to get students interested in learning without them knowing,” said Adam Alvidrez, Chevron’s local community engagement specialist. “They are having fun, but they are practicing concepts of computer, mechanical and electrical engineering and also learning

soft skills along the way – kind of by accident!” These skills include team building, working under pressure, taking precise notes and measurements, completing tasks from beginning to end, responding to a project manager, who in this case is the teacher giving them instructions – all skills they will need several years down the line when they become working adults. “They don’t have any idea that it’s going to have a payoff one day,” Alvidrez said, especially if they choose a career path in science and math. In designing the class, Friendship House Program Manager Lois Hannible sought assistance from the Boys & Girls Clubs of Kern County, which generously shared the curriculum design template they had used for implementing its own after-school robotics and STEM program with Chevron funding. “The robotics program makes learning fun and exciting, and encourages youth to use critical thinking skills to accomplish tasks that prior to the class appeared to them to be too difficult to master,” Hannible said. “Not only have the students gained knowledge through this program, but their self-confidence has increased tremendously. Their pride and sense of accomplishment each time they complete the construction and programming of one of the robots speaks volumes to the benefits of the program and why it is so needed.” Alvidrez said Chevron is invested in STEM education from prekindergarten all the way up to higher education. “We want to create a local pipeline of talent,” he said. “And Chevron is proud to partner with CAPK in providing STEM enrichment opportunities for kids. We are committed to supporting STEM programs in

PHOTO COURTESY OF LOUIS MEDINA

Sequoia Middle School student Yajaira Sanchez, left, and Casa Loma Elementary School fourth-grader Julian Gutierrez sort through the pieces of Lego Mindstorm robotic kits at a Friendship House Community Center classroom. The children learned concepts of computer, mechanical and electrical engineering while having fun at Friendship House’s After School Robotics and STEM Program this spring.

Kern County.” For information about Friendship House’s after-school programs for children ages 6 to 18, please call 369-8926 or visit capk.org. – Louis Medina is the outreach and advocacy manager for Community Action Partnership of Kern.

Employers: Make sure employees know their rights with workplace postings By Beatriz Trejo and James Yoro

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or employers, knowing information about regulatory issues, industry trends and state requirements is crucial to the success of a business. Business owners can even find themselves in regulatory trouble if they don’t follow new rules. For example, it’s especially important, and required, for California employers to post workplace information to inform their employees of their rights. These postings must be in an area frequented by employees where it may be easily accessed and read during an average workday. Common locations for postings include a company break room, near an employee entrance, kitchen or copy room. Employers are required to post information about wages, hours, working conditions, unemployment insurance, and disability insurance and paid family leave. Although additional posting requirements apply to certain employers, the basic posting requirements are clear for all employers. Here are just a few of them.

Essential notices The California Department of Industrial Relations requires that most employers post the state’s minimum wage, provide information about paid sick leave, its entitlement and usage. An employer must also provide information indicating its regular paydays, including the time and place of payment.

Safety first Although safety notices vary greatly depending on the employer, all employers must have pertinent information regarding safety rules in English and Spanish and have emergency responders’ phone numbers. Employers in certain industries, such as employers who use hazardous material or equipment or who employ more than a specified number of employees, may have additional posting requirements.

Benefits postings All employers must post workers’ compensation information and benefits notices. There is no set format for providing this

notice, so long as all necessary information is contained in it. Although an employer may elect to send their notices to the administrative director of the California Division of Workers’ Compensation for review and approval, most employer’s workers’ compensation insurance or claims administrator will often provide this service and will supply the employer with a professionally printed copy of the poster and workers’ compensation claims forms. Other forms or pamphlets might also need to be provided to new hires or in certain situations.

When to post Employers need not replace the postings every year. Postings need to be revised and replaced when the content changes. Most postings do not change once the language has been established. The California Department of Industrial Relations will announce posting updates on its webpage – dir.ca.gov – when they occur.

Get some help There are several agencies that help employers navigate through the posting

requirements at no cost. The California Department of Industrial Relations provides a list of industries and occupational groups from which an employer can get information about specific posting requirements. The Industrial Welfare Commission also has an alphabetical index of businesses and occupations that provide employers information as to which wage order governs them. Cal/OSHA can also give employers a list of health and safety notices. Once an employer is registered with the California Employment Development Department, it will receive a notice to post from that agency. A comprehensive list of postings requirements can also be found at the California Tax Service Center website. Employers may also elect to use a private vendor to assemble packages of required posters. — James Yoro is senior partner at Chain Cohn Stiles, where he manages the law firm’s workers’ compensation practice, and has nearly 40 years of experience in Kern County in his field. Beatriz Trejo is an associate attorney in the workers’ compensation department at Chain Cohn Stiles.

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Safety, Quality and Value

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We stand for... Safety…………………………………………………………………………………………… Safety is the top priority for our employees every day and in every situation. Our safety record is proven by multiple years without an OHSA recordable injury—a remarkable accomplishment in our field. Safety at ESI is not just a word; it is a way of life. We have always had a full-time Health, Safety and Environmental (HSE) Manager on staff and employ a number of Safety Specialists who monitor and encourage the safe behavior of our employees. Our ratio of safety professionals to employees is approximately 1:25. Quality………………………………………………………………………………………… • Low turnover rate and high employee morale • We start, execute, and finish a project with the correct personnel • Our focus encompasses the total cost of ownership, not just low price • Professional, electrical code compliance driven installations • Done right the first time, efficiently Value…………………………………………………………………………………… ESI employs highly trained Lean Sigma Black Belt, Green Belt, and White Belt personnel who identify opportunities to add value and improve project execution efficiency. Through their efforts, our Lean Sigma team has saved our clients hundreds of thousands of dollars.

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August / September 2015

Group calls for expanding Kern libraries through public-private partnerships By Adrian Moore

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or years now Kern County has been tightening its belt on spending and Kern County’s libraries have been feeling the squeeze more than most other county services. Almost all of the library system’s budget comes from the county general fund, hard hit by falling revenue as the value of oil resources has fallen and state aid has been cut. As a result, some branches are open only a few days a week, there is less new material and most branches can’t provide Wi-Fi. Kern County libraries are not unique. Many cities and counties in California have faced these kinds of problems. One Adrian Moore solution that has worked for many of them is a public-private partnership. This idea has been floated by Better Libraries for Kern County; the Board of Supervisors should seriously consider this option.

Just look at the track record of publicprivate partnerships for libraries in California. In 1997, Riverside County pioneered library public-private partnerships, teaming up with Library Systems & Services, Inc. for the last 18 years. A detailed analysis by the county of the first 13 years of that partnership noted a lot of benefits, including:

• Adding more than 200 public-access high-speed Internet terminals and other technological improvements to the libraries

In the wake of that success in Riverside, other California communities have followed suit. Cities like Santa Clarita, Moorpark, Camarillo and Redding have used public private partnerships to improve • More than doubling the library system’s their libraries. When the Redding City Council voted operating hours, circulation and staffing to renew its successful library partnership contract after the first three years, the • Decreased operating costs by nearly $1 city director of community services (who million each year oversees the libraries) said that the private partner, LSSI, was providing residents with • Adding nine new branches “better service, more convenient hours, (a 27 percent increase) new technology, clean facilities, courteous • Millions of dollars invested in renovating staff, and programs designed by and for their communities.” existing facilities and building new ones When the Santa Clarita City Council • More than 100 percent increase per year voted in 2010 to move its libraries into a in the budget to buy new material for the public-private partnership, only one councilmember voted against it. But two years collection later that one councilman told The Atlantic he had not heard any complaints. • Better financial accountability

“I have visited the library a couple of times and walked around,” he said. “I was very impressed with what I’ve seen. I really havent felt that there has been any pushback.” Why would people complain? The Atlantic reported that the public-private partnership increased library hours and added 77 new computers, a new book collection dedicated to home-schooling parents and more children’s programs. What’s not to love? Public-private partnerships have been very successful at improving libraries facing tight budgets. And Kern would not be selling off its libraries. As Santa Clarita’s communications manager told The Atlantic, the system still belongs to the public; it’s like hiring a landscaping service to mow your lawn but “the lawn still belongs to you.” It is past time that the Kern County supervisors seriously consider the publicprivate partnership option. – Adrian Moore is vice president of policy for the Reason Foundation based in Los Angeles. He has lived in Kern County for 15 years.

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August / September 2015

Irrigation efficiency By Beatris Espericueta Sanders

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ern County ranks No. 1 in the state for the highest-producing county in the following six commodities: carrots, table grapes, citrus, hay, almonds and pistachios. In a recent issue, National Geographic perfectly summed up why the Central Valley is ideal for farming: “ … the Central Valley is an agricultural paradise. The soil is rich – remarkable so. The weather is warm – reliably so. More than 300 different crops, from rice and asparagus to pomegranates and oranges, thrive on the valley’s wide, flat floor, and at times grow better here than anywhere else in the country.” Since 1914, Kern County farmers have continuously changed their agricultural practices to stretch their water usage to peak efficiency. In the past hundred years, we have seen a substantial shift in irrigation practices from flood irrigation to drip or sprinkler irrigation. This transition has been incredibly expensive for farmers but it is the right direction to be good stewards of California’s natural resources. At $2,000 per acre, installing a drip irrigation system is cost-prohibitive for many Kern County farmers. Therefore, earlier this year, the Kern County Farm Bureau partnered with the Natural Resources Conservation Service to apply for a muchneeded grant to assist growers with their irrigation practices. The KCFB Irrigation Efficiency Program was specifically geared to help protect water quality, improve irrigation efficiency, and provide erosion control through various management and agronomic practices. The goals of the program were to increase distribution uniformity on older performing irrigations systems, reduce impacts to groundwater by increasing the use of nutrient management, and improve water management through intermediate and advanced monitoring.

KERN BUSINESS JOURNAL

KCFB was awarded a $400,000 grant to assist growers improve their water efficiency. Within two months of announcing the KCFB Irrigation Efficiency Program, all of the grant funds were allocated to growers here in Kern County who applied for the financial assistance. Soil moisture sensors and new drip/sprinkler irrigation systems were installed for the 2015 growing season to ensure irrigation efficiency for many years to come. Water conservation on irrigated cropland can be measured using the following criteria: system renovation improvement and management improvement. According to the Kern County Agricultural Commissioner, since 1967, Kern County has doubled its agricultural production while using less water. KCFB will continue to be proactive in finding programs that assist our farmers to become more efficient users of water. As a county, each industry has to do its part to conserve water, thinking outside the box

At $2,000 per acre, installing a drip irrigation system is cost-prohibitive for many Kern County farmers. Therefore, earlier this year, the Kern County Farm Bureau partnered with the Natural Resources Conservation Service to apply for a much-needed grant to assist growers with their irrigation practices. for solutions that are sustainable through drought years and through wet years. Conserving our water resources should always be on the forefront of our minds, not just when water is scarce. We hope to continue our reign as the second-highest producing agricultural county in California and we strive to be an example of how farming practices continuously evolve so that agriculture can be good stewards of the natural resources upon which the industry depends. — Beatris Espericueta Sanders is the executive director of the Kern County Farm Bureau.

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Affluent consumers still shopping for deals By Lisa Beason

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ix years out from the official end of the Great Recession (December 2007 to June 2009), affluent consumers in Kern County are splurging on certain luxury items, while continuing to look for value and deep discounts on everyday products and services. According to survey results released by Scarborough Research in March 2015, the number of Kern adults with a household income of $75,000 or more grew 10 percent year over year – good news for both existing and newto-market high-end retailers like Maserati. Kern County is known for its love of trucks, but according to Dominion’s June 2015 Cross-Sell Report, nearly 400 luxury vehicles were sold to local adults, including makes such as BMW, Mercedes-Benz, Lexus, Audi, Cadillac, Infinity, Acura, Land Rover and Porsche. Newcomer Maserati of Bakersfield sold 10 vehicles in June. Compared to 2014, more affluent adults paid top dollar for household furnishings. Looking forward, affluent adults report higher purchase intentions for a variety of products during the next 12 months. Retailers, however, must adjust to changing demographic characteristics of affluent adults. Compared to March 2014, the percentage of affluent adults ages 18 to

34 increased 30 percent. During that same period, the percentage who are Hispanic grew 17 percent, while those of African American or Asian descent grew 57 percent. This affluent consumer segment also includes more single adults and households with children (up 33 percent and 17 percent respectively). Retailers like the Nordstrom Rack and other high-end discounters located in The Outlets at Tejon Ranch are positioning their brands and product pricing to satisfy these new upscale consumers who want both quality AND value.

Although they have the means to shop high-end stores, a greater percentage of affluent consumers are shopping at discount stores like Dollar Tree, Dollar General and Family Dollar. While Wal-Mart and Costco enjoyed increases in affluent shoppers (12 and 8 points respectively) Target suffered a 6-point drop and Kohl’s slipped 2 percentage points. Value-oriented shopping can also be seen in the clothing category. While Target, Kohl’s and JC Penny are among the top five stores local affluent adults shopped for

clothing, compared to 2014 each store lost 3 to 4 market share points in this category despite aggressive sales promotions. Stores with the highest growth among affluent clothing shoppers include Old Navy, Ross, Kmart and Sears. TJ Maxx and Marshalls also showed gains year over year. Higherend retailers like Gap, Abercrombie & Fitch and Chico’s experienced relatively flat market share performance among local affluent shoppers. In light of these market insights, retailers seeking to serve this changing affluent consumer group can benefit from adjusting their product lines to include high-end offerings that delight their customers, along with quality mid-range options that appeal to their practical side. — Lisa Beason is the market research manager for The Bakersfield Californian.

Funding available to help increase electric vehicle infrastructure throughout valley By Jaime Holt

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ith the increase in plug-in electric vehicle options being offered by the major automobile manufacturers, valley residents are beginning to take advantage of the significant incentives available to lease or purchase these clean air vehicles. Whether investing in 100 percent electric vehicles or plug-in hybrid electric vehicles that have small gas engines, valley residents are recognizing the value of fewer trips to the gas station. Eighty percent of the valley’s air pollution comes from mobile sources and cleaner passenger vehicles (both gas and electric powered) are vital in helping the valley meet federal air quality goals and can produce real health benefits for Jaime Holt valley residents. One of the biggest concerns individuals have prior to purchasing a PEV is range anxiety. Range anxiety is the fear that a driver may be stuck without enough of an electric charge to complete a journey. The good news is that the valley’s electric vehicle infrastructure is beginning to grow. Drivers are starting to see charging stations at shopping malls, movie theaters and larger chain restaurants and a new grant program from the San Joaquin

Valley Air Pollution Control District is helping valley businesses and public agencies invest in these stations. Businesses and public agencies can now receive up to $6,000 per electric vehicle charger through the Air District’s new Charge Up! grant program. “We’re pleased to offer what valley businesses, agencies and the public have asked for: convenient access to charging devices for the growing population of electric vehicles,” said Seyed Sadredin, the executive director of the San Joaquin Valley Air Pollution Control District. Charge Up! awards up to $5,000 for a single-port, Level 2 charger and up to $6,000 for a two-port charger that will be available for public use. There is an annual funding cap of $50,000 per applicant, and grants will be awarded on a first-come, first-served basis until funds are exhausted. Eligible projects not selected for initial funding will be placed on hold pending additional funding. The first round of funding is $2 million. “The goal of this program is to work with private businesses and public agencies to install hundreds of new electric vehicle charging stations throughout the valley, which in turn will make electric vehicles an easy choice for valley residents,” said Sadredin. This is not a rebate program; contracts must be executed before chargers are purchased and installed. All applications will be evaluated using the 2014 San Joaquin Valley PEV Readiness Siting Analysis. The applicant must

own the property where the charger is being installed or the applicant must provide written permission by the property owner that the installation of the EV chargers is allowed. Additional siting criteria and charger requirements can be found at valleyair.org/ChargeUp. These publicly accessible electric vehicle charging stations must be available and opened to the public for a minimum of 30 hours per week during hours that would be reasonably used by the public. These chargers must be available for public use during times in which public parking is allowed at the site of the EV chargers. Applications can be submitted online or in person. For complete information and application materials, visit valleyair.org/ChargeUp or call the district’s grants program at 559-230-5800. This new grant program follows the district’s popular Drive Clean! clean-air vehicle rebate program, which offers up to $3,000 for the purchase or lease of a qualifying battery electric, hydrogen fuel cell or plug-in electric hybrid vehicle. When coupled with a grant program from the California Air Resources Board, individuals can receive up to $5,500 for investing in these qualifying clean air vehicles. Information about both of these programs can be found by visiting valleyair.org/driveclean. – Jaime Holt is the chief communications officer with the San Joaquin Valley Air Pollution Control District.

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Kern County evolving into mecca for Millennials By Richard Chapman

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ern County’s recent No. 2 ranking for millennial job and population growth has piqued the interest of the local and national news outlets. Kern EDC is promoting these impressive accolades as we brand Kern County to corporate real estate executives and site selection consultants throughout the U.S. According to the Pew Research Center, millennials – those born between 1981 and 1997 – now make up the largest segment of the U.S. labor force. In 2015, the “Internet generation” (53.5 million) took over the pole position from Gen Xers (52.7 million) and baby boomers (44.6 million). As a result of these demographic shifts in the pecking order, it is essential that Kern EDC’s coalition of public and private sector leaders diligently work to attract and retain the workforce of the future. In “What Your City Should Do to Attract Millennials,” Jeff Fromm highlights key elements for successful regions of the future.

Accessibility

17th Street townhomes rendering.

Proximity to employment can influence a range of economic and social outcomes, from local fiscal health to the employment prospects of residents. A 2015 Brookings Institution report shows that Kern County has the second-highest rate of job increases within a typical commute distance for the average worker. While the number of jobs within the typical commute distance for residents of the nation’s largest metro areas fell by 7 percent between 2000 and 2012, the number of jobs in Kern’s Bakersfield MSA increased by 22.7 percent.

Cultural Attractions Just this month, the 17th Street townhomes project broke ground in downtown Bakersfield. The 45-unit development could be the catalyst for millennial downtown living. In addition, new and expanding lifestyle centers like The Shops at River Walk and Outlets at Tejon also help keep and bring in money for the local economy. Fromm points out that millennials are ‘foodies’ drawn to communities that offer unique and one-of-a-kind dining experiences. Earlier this year, the Food Network highlighted eight restaurants in the area, and in June, the Noreiga Hotel and the Padre Hotel were lauded for Best in the West and California awards, respectively.

millennials (as well as middle-class residents). Almost 50 percent of Gen Yers can afford a 1,400-square-foot home in Kern County. This compares very favorably to the coastal cities, whose numbers are in the teens for much smaller homes. Nationwide, midsize cities are attracting more millennials as pricey destinations like Seattle, San Francisco and Los Angeles no longer have the allure to home-buying millennials.

Affordability

Entrepreneurship and Technology

This is the sweet spot for our region. According to a November 2014 Trulia study, the Bakersfield-Delano MSA, which includes the entire county, is the top metro in the state for affordability for

With recent top 10 rankings for STEM jobs and high-tech GDP growth, Kern is emerging as a recognized technology hub across several industry sectors including aerospace/defense, energy, food processing,

healthcare and logistics. East Kern is home to several technology incubators. The Mojave Air and Space Port supports more than 60 companies and 3,000 jobs. Ridgecrest, which is home to the Naval Air Warfare Center Weapons Division laboratories, also claims the title of having the highest per capita percentage of Ph.D.s in the U.S. In west Kern, two recent openings are generating excitement in the community. CSUBs Fab Lab is an advanced digital fabrication facility, consisting of a suite of fabrication and rapid prototyping machines. The venture was the result of the Fab Foundation and Chevron successfully partnering with MIT. Mesh Cowork, a new Bakersfield incubator, allows entrepreneurs and independent workers to be part of an innovative and collaborative community. The shared environment offers low-cost space along with the contacts and resources to grow a

fledgling business. According to Emergent Research, the number of global coworking facilities has been growing quite rapidly over the last five years, basically doubling in number each year. Indeed, Kern County is well positioned to meet the future needs of the next generation of workers. As the top metro in the U.S. for social mobility, both local and out-of-area millennials will have the opportunity to achieve the California dream. — Richard Chapman is the president and CEO of the Kern Economic Development Corporation. With East Coast roots, Chapman brings passion and foundational knowledge to KEDC at the forefront of the competition for job creation and economic development. With more than 15 years of economic development experience, Chapman is truly the best when it comes to “thinking big” and shaping Kern County’s economic future.

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Good customer service makes good business sense By Holly Culhane

important? Good customer service gives companies the edge in an increasingly ow is your company’s customer competitive market. Local businesses service? Here are some quick ways are competing against national chains. to answer that question: Brick-and-mortar stores are competing against online vendors. A growing number • Select someone to enter the front door of of online vendors are competing against your business and appear to be confused. each other. Will your employees come over and How do customers decide whom will get offer assistance? Or will they avoid eye their business? A big factor is the level of contact and look busy? service customers receive. Often, the first impression a customer • If most of your business is conducted gets when he or she walks through the over the phone or online, call or send front door, calls, emails or clicks onto a an email seeking help. What kind of website will determine if a sale is made response will you get? Will it be helpful? and if a loyal customer is created. A company with excellent customer service is Company owners more likely to get repeat business. and managers should Numerous surveys have confirmed that put themselves into customers often are willing to pay a bit customers’ shoes to more for a product from a vendor that gives really understand the good, reliable customer service, as opposed quality of customer to a budget retailer, whose response to service their busicomplaints is poor and products can be Holly Culhane nesses provide. sketchy. Getting the lowest price is not a fiWhy is this nal determinant for most buying decisions.

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Providing good customer service is costeffective. In addition to giving companies a competitive edge, it creates valuable “word of mouth” testimonial advertising and keeps employees focused on their jobs, rather than on appeasing unhappy customers. According to a posting on the Consumer Affairs website, people who have a positive experience with a company will likely tell two or three others about their experience. However, a person who has had a bad

customer service experience will likely tell nine to 20 people. Ouch! How can a company create a culture of good customer service in its workforce, whether it provides products or services? • First and foremost, good customer service begins at the top. It is not just a “frontline” responsibility. All employees Continued on page 33

Using Ebsco’s Regional Business News database through Kern County library By Katherine Ross

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bsco’s online databases produce far more reliable results than Google searching alone. Kern County Library provides free online access to several of these, some of which are valuable sources for market research and regional comparisons. Specifically, Regional Business News can provide accurate and relevant insights. Ebsco Regional Business News database is available both inside and outside the library. Library cardholders can access the resource through our website at kerncountylibrary.org. Just click Research, scroll down and click the database name from the list located on the right. Like most of our online databases, there is a handy search box, along with an advanced search option and a publications option for looking up a specific magazine or journal. This database draws from 222 worldwide full-text news sources, including some industry-specific titles. Coverage ranges from Africa to Asia, from Europe to Australia, along with several specific states of the U.S. In addition to 30 regional journals, there are transcripts from popular news sources such as 20/20, Good Morning America and World News Tonight. Coverage of each periodical varies

but some go back as far as 1990. A simple search might combine Bakersfield and the type of business that interests you. Or, casting a wider net, search by industry and use advanced search to narrow your results to charts, graphs, maps or product reviews. You can also limit your search to a range of months and years.

Ebsco Regional Business News database is available both inside and outside the library. Library cardholders can access the resource through our website at kerncountylibrary.org. Just click Research, scroll down and click the database name from the list located on the right. As there are many different ways to search so also there are various ways to view results. The database ranks results by relevance, but this may be changed to show all articles in chronological order. About 18 percent of the periodical and news sources will display in PDF, thus preserving all original formatting and graphics. Newswire and Web News

results are segregated at the right of the screen and searchlimiting options are found on the left. Help files can be accessed at all times from the top right, offering even more search tips. If Regional Business News searching isn’t giving you enough depth for your topic, there are other business databases available through the library’s Research page. Check out Business Searching Interface, Business Search Complete and Small Business Reference Center. This database has officially joined the 21st century. At the bottom of the page, no matter where you are in your search, you can access the links for the mobile site and iPhone and Android apps. Regional Business News just got a lot easier! And keep us in mind for your other information needs; the library offers free access to 28 online databases, most of them available from any Internet computer. We invite you to explore the many new links available from our newly revamped Library Homepage [kerncountylibrary.org]. It’s a work in progress, but it’s getting better every day – just like Kern County’s amazing variety of local businesses. – Katherine Ross is a librarian at the Beale Memorial Library, main branch of the Kern County Library System.

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Continued from page 32

• Provide training. New employee training needs to include expectations and must understand the importance of methods of providing excellent customer providing good customer service and service. Train employees to meet see company executives and managers customer needs, as well as respond involved. to customer complaints. Make this an ongoing process, with veteran employees • Define “good customer service.” Often, receiving refresher courses. Invite good customer service qualities are suggestions on ways to improve service. included as goals in company mission and vision statements. But definitions • Reward good customer service. must go further than a bumper sticker Celebrate those who do it well. Provide approach. Review all aspects of your mechanisms for customers to register business and determine ways to provide compliments and complaints. Share excellent service. This review should be feedback and success stories with ongoing. Encourage employees to ex employees. Consider basing pay partially periment with ways to improve service. on the customer service employees provide. Award bonuses for “excellence” • Extend good service to more than in providing good customer service. customers. Employees also must give good service to their colleagues. If your company is amazing to work for Developing a spirit of “teamwork” will and with, people will love coming to work result in good service inside and outside and customers will love walking through a company. your front door (or entering your Internet portal) to do business. Do your best to • Hire carefully. Select new employees create an environment that fosters just for both their skill competency and their that response. attitude. From the beginning of the recruitment and interview process, to hiring a new employee, providing excel- — Holly Culhane is president of the lent customer service should be defined Bakersfield-based human resources consulting firm P.A.S. Associates and P.A.S. and emphasized. Applicants should Investigations. She can be contacted through demonstrate they share the commitment her website PASassociates.com and through the PAS Facebook page. to quality customer service.

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August / September 2015

Bakersfield tourism update By David Lyman

Highlights from around the local tourism scene: Amtrak: More than 521,000 people passed through the Bakersfield Amtrak station last year, making it the 22nd busiest station in the country and the fifth busiest in California. Many of these travelers have layovers between train and bus connections. Until recently, no efforts were made to try to reach those people to get them to spend their money. The key phrase is “until recently.” This past year, the Bakersfield Convention and Visitors Bureau unveiled displays throughout the station, both inside the lobby and outside on the platform. Among these displays are large maps of the surrounding area, showing places to eat, sleep, shop and enjoy, all within David Lyman walking distance of the Bakersfield Amtrak station. Also at the Amtrak station, the city of Bakersfield has been providing free Wi-Fi service for years. But because the Wi-Fi service is not provided by Amtrak, Amtrak’s description of the Bakersfield station in its station listing says there is no Wi-Fi. So once again, we saw an opportunity for some Bakersfield promotion and we ran with it. Now on all the doors leading into the station are decals that inform travelers that not only is there free Wi-Fi but that the Wi-Fi is provided by the city of Bakersfield. The decals also list the CVB’s website, VisitBakersfield.com, so travelers can access online what there is to see and do locally while they are here.

Two, one, one By Louis Medina

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uch a simple, unassuming sequence of digits. Yet this Federal Communications Commissionapproved toll-free number to call for information or access to health and human services has the power to harness life-changing – and sometimes even life-saving – assistance. In our area, it’s called 2-1-1 Kern County and it’s operated by Community Action Partnership of Kern (CAPK), the only Community Action Agency in California to run this type of 24/7 social service call center. Louis Medina On July 1, 2-1-1 Kern began fielding calls from Kings and Tulare counties. It is planning to offer the same service to Merced and Mariposa counties beginning in October. “As we continued to grow, we picked up partners along the way,” said CAPK Executive Director Jeremy Tobias. All of these counties have a need for a 24/7 social service information and referral line and have chosen to contract services to CAPK’s mature 2-1-1 program, whose referral call volume in 2014 exceeded 100,000, with the top numbers of referral being for food, housing, utilities, clothing and household needs assistance.

New driving tour: Locals know that the Tehachapi Loop is an engineering marvel. Many do not know that it attracts train fans from all over the world and is less than an hour from Bakersfield. But half the fun is watching those long trains climb from the valley floor up the grade of the Sierra Nevada to the loop (or back down). “Explore! The Back Roads to the Tehachapi Loop” is a new driving tour from the CVB. It is a fascinating and historical side trip into the Sierra foothills through Bena, Caliente and Bealville to see the trains snaking through narrow valleys and several tunnels. On this driving tour to and from Bakersfield, there are historical sites, one of the newest national monuments in the National Park Service and places to sample outstanding VisitBakersfield.com home page local produce. Depending on the season, you will see snow, wildflowers or grazing cattle … year was the event’s 49th year in Bakersfield and it attracted and lots of trains! 1,122 dancers. They came from 178 cities throughout “Explore! The Back Roads to the Tehachapi Loop” is California and from nine other states. available free at the CVB, 515 Truxtun Ave. It also can be downloaded from the CVB’s website VisitBakersfield.com New website: Check out the new VisitBakersfield.com. It’s along with other tours. fresh, vibrant, colorful and ready to help visitors and residents alike find that in Bakersfield, there really is more to explore! Swing ’em: While Bakersfield attracts many large groups like the Jehovah’s Witness Watchtower Convention – David Lyman is manager of the Bakersfield Convention and and CIF Boys Wrestling Championships, it also hosts Visitors Bureau. He has spent the last 30 years involved in numerous smaller groups that return year after year. One countless facets of promoting his hometown, including business attraction, business retention, redevelopment, enterprise zone of those is the Bakersfield Fiesta, the large square dancing and, now, helping visitors spend their money. extravaganza, held at the Kern County Fairgrounds. This

A Timeline of 2-1-1 Kern history In October 1996, with the help of such partners as United Way of Kern, the County of Kern and the Kern County Network for Children, the precursor to 2-1-1 was launched as the Kern County HelpLine, an 8 a.m. to 5 p.m., Monday through Friday service. Three staff fielded a modest 440 calls during the HelpLine’s first month of operation. By 2014, the average number of 2-1-1 referrals per month was upward of 8,400 – an 1,800 percent increase in under two decades. Close to 80 percent of 2-1-1 Kern’s current 14-member staff is English-Spanish bilingual. This helps to meet a high local demand for Spanish language services and greatly reduce call volumes in many county departments, Tobias said. In 2007, the call center became a full-fledged 2-1-1, with services provided around the clock by subcontracting out after-hours calls. In 2009, 2-1-1 Kern entered into an agreement with the Kern County Fire Department Office of Emergency Services (OES) to assist with the implementation of the Ready Kern emergency notification system that alerts residents about natural disasters, such as wildfires. 2-1-1 Kern I&R specialists answer questions about how to register with Ready Kern and, during emergencies, provide life-saving information about what precautions to take, where evacuation centers are located and more. “Having 2-1-1 available decreases the number of calls that go to 9-1-1,” said OES Administrative Coordinator Wendy Benson. In 2012, CAPK 2-1-1 staff began answering all calls, including after hours, thanks to new technologies that facilitate the handling of calls off-site of the call center.

In February 2013, the robust resource database used by 2-1-1 I&R specialists was made available online to the general public at capk.org/211kern. With automated translation technology, the information on the database can be accessed in three-dozen languages. Early this year, 2-1-1 Kern received national accreditation from the Alliance of Information and Referral Systems (AIRS). Applying for and receiving this accreditation was a rigorous process that took more than two years and involved strict quality reviews to ensure compliance with high standards of telephone and database information management and service, Tobias said.

Meeting its own financial needs through entrepreneurship Due to reduced funding in recent years from local partners, such as the County of Kern, First 5 Kern, United Way of Kern and the County’s Department of Public Health, CAPK’s 2-1-1 Kern has sought out other revenuegenerating opportunities that involve handling calls for other counties, hence the new partnerships with counties that have subcontracted their 2-1-1 services to us. Social service providers wanting to be listed on the 2-1-1 Kern County Online Resource Directory can call 395-2495 and ask to speak to Program Manager Esperanza Contreras or visit capk.org/211kern, scroll to the bottom of the page and follow the instructions in the “Get Your Program Included” section. – Louis Medina is the outreach and advocacy manager for Community Action Partnership of Kern.

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Save the date! November 7, 2015 10:00 a.m. to 3:00 p.m. Kern County Museum, Bakersfield

PRESENTED BY

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Kid's Corner with hands-on educational exhibits, bounce houses, face painting and much more

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Full-size energy equipment displays

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Local food, beverages and live music

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All proceeds go to local STEM educational programs Sponsored by Partial list

UBS Financial Services, Inc.

Sponsor Opportunities Available

www.KernEnergyFestival.com

Powered by the Kern Energy Foundation, a 501(c)(4) organization. EIN (tax ID) #47-2747194

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California tax credit targets expanding, relocating businesses By Joel A. Bock

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business that may be considering relocating to California or an existing California business that may be considering expansion within California should consider applying for the California Competes Tax Credit. While there are no geographic or industry-specific restrictions, the intent of the tax credit is to “attract and retain high-value employJoel A. Bock ers in California in industries with high economic multipliers and that provide their employees good wages and benefits.” Small businesses (defined as a business with less than $2 million in gross receipts) are specifically encouraged to apply for the credit through the allocation of 25 percent of the total credits annually to such businesses. While there is no minimum amount of jobs that must be created in order to receive a credit, the credit will be awarded

on a competitive basis with small businesses competing against small businesses and large businesses competing against other large businesses. During the specified application periods, applications are accepted at calcompetes.ca.gov. Applications for fiscal year 2015-2016 and total award amounts for each respective period are as follows: July 20, 2015, through Aug. 17, 2015, ($75 million available); Jan. 4, 2016, through Jan. 25, 2016, ($75 million available); and March 7, 2016, through March 28, 2016, ($50.9 million plus any remaining unallocated amounts from the previous application periods available). The application process (consisting of two distinct phases) takes approximately 90 days from the time the application is submitted. Phase I of the application process involves the calculation of the requested credit amount (minimum of $20,000) while Phase II of the application process considers a variety of qualitative factors. Factors considered by the Governor’s Office of Business and Economic Development (“GO-Biz”) when reviewing applica-

tions for the credit include: • The number of jobs the business will create or retain in California • The compensation paid or proposed to be paid by the business to its employees, including wages, benefits and fringe benefits • The amount of investment in California by the business • The extent of unemployment or poverty where the business is located • The incentives available to the business in California, including incentives from the state, local government, and other entities • The incentives available to the business in other states • The duration of the business’s proposed project and the duration the business commits to remain in California • The overall economic impact in California of the applicant’s project or business • The strategic importance of the business to the state, region or locality

• The opportunity for future growth and expansion in California by the business • The extent to which the anticipated benefit to the state exceeds the projected benefit to the business from the tax credit If an applicant is not awarded a credit during the fiscal year, the applicant is allowed to modify and resubmit his or her application in the next application period within the same fiscal year. However, if the applicant is not awarded a credit by the end of the fiscal year, then a new application must be created in order to reapply in the next fiscal year. Given the increasingly competitive nature of the credit application process, California businesses considering expansion or relocation should consider beginning the credit application process as soon as possible. Please consult your tax adviser to determine how these tax laws impact your specific situation. – Joel A. Bock, CPA, MST is a partner in Daniells Phillips Vaughan & Bock, a Bakersfield accounting firm.

More states entering retirement savings business By Steven Van Metre

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llinois and Washington already have approved state-run retirement plans for employees of private companies. Oregon is following the trend. And at least 25 other states, including California, are studying the feasibility of starting programs. Small-business owners must brace for the likelihood that state governments soon will be operating payroll-deducted retirement savings programs for workers who now do not have access to 401(k) and similar programs. Steven Van Metre Despite objections from small businesses that these programs will inflict unwanted paper work on companies, states are moving forward with savings plans. Business interests’ only recourse is to work with legislators to ensure plans are safe repositories for workers’ money and relatively uncomplicated to administer. According to the Government Accountability Office, half of the U.S. workforce, or an estimated 78 million Americans, do not have access to employer-sponsored retirement plans. Only 14 percent of employers with fewer than 100 employees provide 401(k)s or other retirement savings plans. The Center for Retirement Research at Boston College estimates that 53 percent of working-age households are at

risk of being unable to maintain their preretirement standard of living after they stop working. Today, 43 percent of retirees rely on Social Security, with an average monthly benefit of $1,300, for 50 percent of their retirement income. Recognizing that many Americans will not have sufficient funds to live independently in retirement, the Obama administration last year launched the myRA (My Retirement Account) program, which allows workers to contribute post-tax money into a portable, governmentbacked account. But the federal program, so far, has seen little success. Investments pay relatively low returns. And low-pay workers have little “discretionary cash” to place into a myRA account. Studies reveal that the best retirement savings results are obtained when contributions are made through automatic payroll deductions. When large employers have automatically enrolled workers in 401(k) plans, participation has risen from 70 percent to almost 90 percent. States’ involvement in the retirement savings campaign stems from more than altruistic concerns about the citizen welfare. Legislators fear states, local governments and taxpayers will have to pick up the public assistance tab for Americans who retire without sufficient income. Noting Social Security is a critical piece of the puzzle but never intended to be the sole source of retirement income, AARP has launched a work and save initiative to push legislatures to create programs to encourage retirement savings. In January, Illinois Gov. Pat Quinn signed a law that

would require businesses with 25 or more employees to allow workers to contribute to a state-run IRA retirement plan by 2017. In May, Washington Gov. Jay Inslee created the Washington Small Business Retirement Marketplace, a state-run website to match employers with 100 or fewer employees with private-sector plans. The Oregon plan would require employers that do not offer a retirement savings plan to automatically enroll employees at a default contribution rate to a state-sponsored plan. In 2012, California passed a law to study the feasibility of requiring private-sector companies with five or more employees that do not offer retirement plans to automatically deduct contributions from employees’ paychecks. The state is expected to authorize the plan in 2016. While each state seems to offer its own unique plan, there are common elements: automatic deductions, contributions placed in individual accounts and professional investment managers hired to oversee the accounts. Connecticut’s comptroller, Kevin Lembo, summed up the position of a growing number of states when he spoke at a recent retirement conference: “We wish we didn’t need to be in this space. If these folks don’t have adequate savings, and they run out of money, they’re coming back to us for services and support.” – Steven Van Metre is a Bakersfield financial planner who specializes in retirement income strategies and teaches a course on retirement planning for the Levan Institute for Lifelong Learning at Bakersfield College. His website svmfinancial.com.

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Because good vision is essential By Eva Ramirez

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t’s been a year and a half since we welcomed our first customer at Vision Essentials by Kaiser Permanente. Vision Essentials is Kaiser Permanente’s integrated approach to eye care, which offers optometry and optical dispensing to our members and nonmembers alike. Our focus on total health extends to one of our most precious assets – our eyesight. You’ll find everything you need for total eye health: medical care from trusted Kaiser Permanente optometrists, plus a great selection of eyewear at the same convenient Eva Ramirez location. Get your eyes examined, your prescription updated and select the perfect eyewear to complement your personality. Our team of 20 is made up of optometrists, contact lens fitters, opticians, medical assistants and receptionists who are ready to help you with eye care and eye wear. “Since we opened our doors on Jan. 27, 2014, we have provided a total of 13,000 eye and contact lens exams,” said Randall Miller, business line manager. “We are thrilled to be able to provide high-quality care to our members and the community.” From contact lenses to designer eyeglasses and sunglasses, you’re sure to find the perfect eyewear that meets your needs and budget for you and your entire family. The designer

brands we carry include: Maui Jim, Ray Ban, Juicy Couture, Oakley, Prada and many more. As far as contact lenses, we offer a wide range from the largest contact lens companies in the world. For your convenience, you can reorder your contact lenses online at kp2020.org. As part of Kaiser Permanente’s integrated healthcare delivery system, Vision Essentials is uniquely positioned to participate in your overall healthcare, from early identification of diabetes through eye examination to the reminder your medical office assistant may give you that you are due for your next mammogram. Vision Essentials is just one more component to the continuum of highquality integrated care that Kaiser Permanente provides to our community. In addition, the staff at Vision Essentials works closely with our ophthalmology department for those patients who need specialized eye care. The 7,500-square-foot facility hosts seven provider eye exam rooms with testing space for conditions such as glaucoma, age-related macular degeneration and diabetic retinopathy. To meet the needs of our customers, Vision Essentials is open seven days per week at The Marketplace. – Eva Ramirez has worked for Kaiser Permanente Kern County for 12 years. She currently works as the senior communications specialist focused primarily on communications and acting as the media liaison.

PHOTO COURTESY OF KASIER PERMANENTE

Abigail gets her first pair of glasses courtesy of Vision Essentials.

137-MW solar farm to be built in Kern County By Martin Hermann and Tom Buttgenbach

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minutenergy Renewables LLC and D. E. Shaw Renewable Investments LLC announced the completion of permitting and start of construction of the 137 megawatts-dc (105 MW-ac) Springbok 1 Solar Farm located in Kern County. Springbok 1 Solar Farm has a signed power purchase agreement with the Southern California Public Power Authority on behalf of its participating member, the Los Angeles Department of Water and Power. Springbok 1 Solar Farm is a Martin Hermann utility-scale solar generation facility sited on up to about 700 acres of low-productivity farmland. 8minutenergy began to develop the project in 2011. Swinerton Builders is serving as the engineering, procurement and construction firm, with affiliates of 8minutenergy and DESRI overseeing construction management. DESRI led Tom Buttgenbach the equity investment in the project and secured debt and tax equity financing. The project is being financed by a syndicate

of lenders, including KeyBank National Association, Santander Bank, N.A., OneWest Bank, N.A., CoBank, ACB and Siemens Financial Services Inc. U.S. Bancorp Community Development Corporation provided a commitment for tax equity financing. The project is expected to reach its commercial operations date in June 2016. It is expected to displace the equivalent of approximately 300,000 metric tons of carbon dioxide per year, which is equal to the amount that roughly 12 million trees would displace annually. Job fairs for construction will be held in Kern County starting in July. Graduates of Los Angeles-based Homeboy Industries’ solar panel installation training and certification program will provide some of the labor for the project through a partnership between 8minutenergy and the International Brotherhood of Electrical Workers Local 428. Homeboy Industries serves formerly high-risk, gang-involved men and women with a continuum of free services and programs and operates seven job-training sites. “We are pleased to begin construction of the Springbok project to provide clean energy to the people of Los Angeles with the permitting and financing complete. This solar farm is another example of 8minutenergy bringing projects from conception to construction,” said Martin Hermann, chief executive officer of 8minutenergy Renewables.

“DESRI is excited to close on the financing for the Springbok 1 Solar Farm,” said Bryan Martin, managing director and head of U.S. private equity for the D. E. Shaw group. “We value our partnership with 8minutenergy, and this investment further expands DESRI’s renewable energy portfolio while helping to power more U.S. homes with green energy.” “We enjoyed working with SCPPA/LADWP and Kern County Planning and Development Department. We are particularly pleased that this project received unanimous votes and the full support of all approving agencies as well as the local community and environmental groups,” said Tom Buttgenbach, president of 8minutenergy Renewables. “The Springbok 1 Solar Farm will create an estimated 300 direct and 400 indirect jobs during construction in Kern County.” The solar power system for Springbok 1 Solar Farm will be composed of state-of-the-art solar photovoltaic modules, related power electronics and other components, including an advanced tracking system that follows the sun to maximize energy production.

– Martin Hermann is the CEO of 8minutenergy Renewables. Tom Buttgenbach is the president of 8minutenergy Renewables.

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Should you require hourly employees to punch the clock? By Robin Paggi

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n the article “Pros & Cons of a Time Clock in the Workplace” on smallbusiness.chron.com, the author states, “Employees who are required to punch a time clock are likely to believe that their employers do not trust them to accurately report their hours, and consequently they may feel that they are not sufficiently valued.” Maybe so. However, if you’re an employer who doesn’t require your hourly employees to clock in and out, you’ll want to read this. The federal Fair Labor Standards Act and California’s wage orders require employers to keep accurate information with respect to each employee, including, among other things, time records showing when the employee begins and ends each work period. In the absence of such records, Robin Paggi the employee’s testimony as to hours worked is presumed to be correct and the employer has the burden of proving they are not. Zain and Zohaib Syed, who own and operate two auto repair shops in Michigan, recently learned this the hard way. They employed Jeffrey Moran as a mechanic at one of the shops from summer 2011 until spring 2013. According to court documents on courthousenews.com, Moran said he and Zohaib Syed agreed he would receive $300

per week in addition to “bonus-type profit sharing” for working 58 hours during a six-day workweek. The Syeds said Moran was hired to work only 30 hours a week for $300 weekly pay. Moran said he usually worked 65 to 68 hours each week but did not receive any overtime or bonuses and complained numerous times to Zain Syed about it. The last time he complained, he was told to “either hit the road or stay working like it is.” He hit the road and sued for two violations of the Fair Labor Standards Act: failure to pay overtime and retaliation for requesting overtime pay. The Syeds said Moran never worked more than 30 hours a week and could prove it. Although Moran did not clock in and out, they monitored his arrival and departure times on a security camera. They provided the court with time sheets that included the total number of hours Moran worked each day along with a weekly total for every week he was employed, which is what they’re supposed to have on hand. However, the court noted that, according to the timesheets, in all but five of the 90 weeks Moran was employed, he worked exactly 30 hours a week, despite his schedule varying notably from week to week, which looked suspicious. A district court found in favor of the Syeds. However, in June an appellate court reversed that decision saying that the timesheets did not amount to objective incontrovertible evidence of the hours that Moran worked. Additionally, while Moran’s testimony of his hours worked might lack precision, employees are not required to recall their

schedules with perfect accuracy. The case was remanded for further proceedings. So, should you require your hourly employees to punch the clock? Yes. – Robin Paggi is the training coordinator at Worklogic HR where she creates and delivers workshops on topics such as harassment prevention, communication and supervisory skills. She can be reached at rpaggi@worklogiclegal.com or 695-5168.

Household employees eligible for paid sick time under new California law By Tom Breedlove

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he vast majority of us are used to having paid sick days at our place of employment. That’s because most companies understand that employees fall ill from time to time and they don’t want anyone coming to work and getting others sick. Also, most businesses have enough employees to cover a couple of people being out for a day or two. So when California recently enacted its statewide paid sick leave law on July 1, many business owners never blinked because they were already compliant with the law under their current benefits package. But among those Tom Breedlove “business owners” who did blink were household employers – families that privately hire someone to work in and around their home. This designation covers those hiring nannies or senior caregivers but can

This designation covers those hiring nannies or senior caregivers but can also include housekeepers, estate managers and personal assistants. also include housekeepers, estate managers and personal assistants. Many people don’t realize a family can be considered an employer, but indeed the IRS dedicates an entire section of the tax code (Publication 926) to household employment and the state of California requires household employers to file tax returns similar to the way small businesses do. So with this new law on the books, you can imagine how many families are scrambling to make sure they’re in compliance. Many probably are, but it’s important to make sure every provision of the law is followed. The statute says employers must make available at least three days (24 hours) of paid sick time each year – as long as the employee works at least 30 days

during the year. That means just about every family with a household employee will qualify. Here are a few of the other details families need to be aware of:

mandates because employers must comply with all relevant law (local, state and federal). In other words, the strictest of the laws always prevails.

• Sick time accrues at one hour for every Because most household employees 30 hours worked (up to the minimum of have to interact with children and seniors 24 hours per calendar year) as part of their jobs, the paid sick leave law is considered by many in the industry as a • Families can set the maximum sick win-win. Employees are now guaranteed time accruals to 48 hours benefits that further professionalize their jobs while families can reduce the risk of • Any sick time accrued but unused their caregiver passing along an illness does not have to be paid out at time to their kids or elderly parents. This does of termination mean families need to have a backup plan in place for when their employee is sick, • Employees can start using their sick but most employers probably already have time 90 days after they begin working a contingency plan in place. As long as sick • Accrued and used paid sick leave needs days are communicated effectively between to be shared with each employee both parties, the changes to how a family manages its household employee should Note: Families that live in Oakland or San be minimal. Francisco are already used to providing up to 40 hours of paid sick time to their – Tom Breedlove is the director of Care.com household employees every year. The new HomePay, the nation’s leading household employment specialist. statewide law does not decrease the local

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