Kern Business Journal February/March 2015 by The Bakersfield Californian Specialty Publications

KERN Journal Business

Vol. 4, No. 1

Cover story

Technology offers farmers promise of productivity

Got juice? Grimmway introduces “TRUE” organic juice. Page 12

February / March 2015

Agriculture and Water Issue

By Diana Greenlee

rowers are coming out of the dark ages. Technological advances in farming are cropping up, promising increased productivity and profits, and local agrarians are starting to pay attention. Brian Agnetti, San Joaquin Tractor Company salesman said folks are starting to ask for GPS on their equipment, enabling them to not only keep track of inventory, but also monitor fields and establish parameters for fertilization and upkeep on crops and equipment from year to year. “They’re keeping a lot of data,” said Agnetti of the farmers. Ready information is one benefit of using technology, according to Kern County Farm Bureau President Greg Wegis, co-owner of Wegis & Young property management. He said GPS provides real-time reports on vehicles, relaying computer codes by text or email so problems can be pre-diagnosed before technicians travel to the site for repairs. “Machines are beginning to speak to us in a way,” he said. GPS also enables the farmer to monitor labor and make sure harvesters, tractors and ATVs are being used efficiently. Continued on page 8

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

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PHOTO COURTESY OF AUSTIN SNEDDEN

Ranchers drive cattle across the hills of Kern County. One of the biggest threats Kern County cattle ranchers face is restrictions placed on public and private land by federal and state agencies. See story on page 22.

INSIDE Ag braces for impact caused by drought. Page 14 Kern Country Farm Bureau prepares for challenges, priorities this year. Page 8

Solarize Kern County to launch in Kern, benefitting local small businesses. Page 23

KERN BUSINESS JOURNAL

e applied for a loan on a new project and were funded within 30 days. Try that with a national bank.”

S TACEY & D ENNIS J OHNSTON Johnston Farms Shortly after World War II, John C. Johnston retired from the Southern Pacific Railroad in Oregon and moved his family to Bakersfield to grow potatoes. He settled in the Edison area of Kern County where he founded Johnston Farms. In his tradition of excellence, the third generation of the family now grows and ships various commodities throughout the world. As they expand with the latest innovations, such as the Airstream Greenhouse, the Johnstons are happy to know their banking partners are local, caring people – just a phone call away.

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Journal KERN Business Showcasing Kern County business and industry February / March 2015 Vol. 4, No. 1 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 Katelynn Camp Art Director Glenn Hammett Graphic Designer Allison Escobar To submit a story kbj@bakersfield.com To advertise Gunter Copeland, Interactive Sales Manager gcopeland@bakersfield.com 661-395-7385 To subscribe 661-392-5777

KERN BUSINESS JOURNAL

Editor’s Note

Getting to the heart of Kern County: Agriculture

hen you think of Kern County, more than likely agriculture will come to mind. After all, agriculture is one of the driving economic engines for our community and it continues to help our county flourish. Even in this day of technology and advancement, Kern County agriculture is Olivia Garcia adapting as a key player. In this issue, we devote our attention to ag. Writer Diana Greenlee looks into the latest technology in farming, the impact of drought and hopes for this year for local ranchers and farmers, and a trend in a new type of farming in our county: solar. Beatris Espericueta Sanders, executive director of the Kern County Farm Bureau, fills us in on the agency’s priorities for 2015. Writer Greg Cook catches up with local water agencies as they look for ways to deal with California’s ongoing water crisis. “Kern County ranks No. 2 nationwide in the value of crop commodities,” according to David Lyman, manager of the Bakersfield Convention and Visitors Bureau, as he assesses the positive impact agriculture tourism can bring to our county and seeks to learn of other agriculturalrelated tourism.

PHOTO BY GREGORY D. COOK

North Kern Water Storage District Operations Supervisor Eddie Reveles looks out over an empty 600-acre spreading-pond complex near Lerdo Highway.

Melissa Poole, director of government affairs and counsel for Roll Global and its related entities, including Paramount Farming Company, updates us on laws impacting agriculture this year. Poole also serves as an adjunct professor of environmental law at California State University, Bakersfield and is a Kern County planning commissioner. In another article, Austin Snedden, president of the Kern County Cattlemen’s Association,

helps us get to know the cattle ranching industry and its history. Meanwhile, Grimmway Farms talks about its new organic juice line called “TRUE” Grimmway Farms. There are plenty of other informative pieces related to ag in this issue. Enjoy! Olivia Garcia is editor of the Kern Business Journal.

Business at-a-glance Bakersfield named bestvalue city in California

Kansas round out the top five. — Kern Business Journal

Bakersfield realtor appointed to Kern County Fair Board of Directors Trivago.com, the world’s largest online hotel search site, named Bakersfield a Top 50 US Best Value City for 2015. Bakersfield ranked No. 33 on the list, scoring higher than any other California city. The Best Value Index provides an overview of best-valued destinations using a specifically tailored algorithm that combines trivago’s Hotel Price Index and Reputation Ranking for hotels. The HPI shows the average overnight accommodation prices for a standard double room and the BVI ranks cities with 50 or more hotels. Bakersfield is joined by only two other California cities – Fresno (No. 35) and Sacramento (No. 50). Macon, Georgia; Branson, Missouri; Montgomery, Alabama; Lincoln, Nebraska; and Wichita,

Gov. Jerry Brown has appointed Blodgie Rodriguez to the Kern County fair board. Rodriguez assumed the appointment on the 15th District Agricultural Association, Kern County Fair

Board of Directors on Dec. 31. Rodriguez, 46, has been a local realtor since 2004 and is beginning her second term as chairwoman of the Kern County Hispanic Chamber of Commerce. Rodriguez also serves on the Latina Leaders of Kern County Board of Directors. Prior to real estate, Rodriguez was the interim program director at the Kern County Youth Mariachi Foundation from 2001 to 2003 and a sales associate with The Bakersfield Californian from 1987 to 2001. Rodriguez whose late father was passionate about local agriculture says she is fortunate to hold such a position and looks forward to a promising year as a fair board member. — Kern Business Journal

JLL given leasing responsibilities of Shafter property Blodgie Rodriguez

Roll Real Estate Development has awarded leasing responsibilities of Paramount Logistics Park in Shafter to JLL.

CALIFORNIAN FILE PHOTO

Paramount Logistics Park at 7th Standard Road and Zachary Road in Shafter is booming with gigantic tenants, including Target, Baker Hughes, Schlumberger, American Tire and others. The team will be led by Managing Directors Mike McCrary and Peter McWilliams, who have completed nearly 30 million square feet of industrial transactions in the past two years, and will be joined by Mac Hewett, an associate who specializes in supply chain and logistics strategy. Paramount Logistics Park, a 1,625-acre property, is currently home to companies such as Target, FedEx Ground, Ross Dress for Less, American Tire Distributors and The Hillman Group. Paramount Logistics Park has entitlements for up to 26

million square feet of industrial space, with fully entitled parcels ranging from five to 300 acres. JLL is an investment management firm that offers specialized real estate services to clients seeking to increase value by owning, occupying and investing in real estate. Roll Real Estate Development is one of the largest owners of agricultural land in California, owning, managing and actively developing three business and industrial parks in the Central Valley, totaling over 1,800 acres. — Kern Business Journal

KERN BUSINESS JOURNAL

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Chamber Roundups Feb. / March Events

Greater Bakersfield Chamber of Commerce

Kern County Hispanic Chamber of Commerce Activities for February and March:

Feb. 6, 20, 27 – Governmental Review Council; 7:30-8:30 a.m.; Greater Bakersfield Chamber of Commerce, 1725 Eye St. Feb. 10 – Seminar; check-in and networking, 11:30 a.m.; program, noon to 1 p.m.; $30 for members; $60 for nonmembers; Greater Bakersfield Chamber of Commerce, 1725 Eye St. Feb. 16 – Chamber closed – President’s Day Feb. 23 – Good Morning Bakersfield; check-in and networking, 6:30 a.m.; program and breakfast, 7-8:30 a.m.; $45 for members, $75 for nonmembers; DoubleTree by Hilton, 3100 Camino Del Rio Court. March 6, 13, 20, 27 – Governmental Review Council; 7:30-8:30 a.m.; Greater Bakersfield Chamber of Commerce, 1725 Eye St. March 12 – SmallBusiness Networking Breakfast; check-in and networking, 7:30 a.m.; program 8-9:30 a.m.; $25 for members, $50 for nonmembers; Greater Bakersfield Chamber of Commerce, 1725 Eye St. March 25 – Social Media Therapy; check-in and networking, 11:30 a.m.; program and lunch, noon to 1 p.m.; $30 for members, $60 for nonmembers; Greater Bakersfield Chamber of Commerce, 1725 Eye St. Please visit bakersfieldchamber.org or call 661-327-4421 for more information or to register for any of these events. — Melissa Rossiter, GBCC

• Feb. 10 — Grand Opening/Ribbon Cutting for State Farm – John Cooper, 1400 Easton Drive, Suite 127. 4:30 - 6 p.m. • Feb. 11 — Business Networking Mixer for Kern Federal Credit Union at Elements Venue, 3401 Chester Ave. 5:30 - 7:30 p.m. Door fees: $5 Members; $10 Non-members. • March 11 — Business Networking Mixer for La Costa Restaurant, 3401 Chester Ave., Suite B. 5:30 - 7:30 p.m. Door fees: $5 Members; $10 Non-members. In other news, the KCHCC held its 30th in-

North of the River Chamber of Commerce The North of the River Chamber of Commerce is giving small-business owners a look at changes to employment law for 2015. If your human resources department could benefit from some expert advice, join the NOR Chamber on Feb. 12 for lunch and a presenta-

Bakersfield Convention & Visitors Bureau

portsEvents Media Group, the leading industry publication focused exclusively on helping sports event planners produce excellent competitions in the United States, has announced Bakersfield Convention & Visitors Bureau (CVB) as one of its 2015 Readers’ Choice Award winners. Sports event professionals were asked to nominate destinations and sports venues that they believe display exemplary creativity and professionalism toward the groups they host. Nominations were received from readers throughout the year, and the top picks were selected based on results from an online voting system.

stallation gala and awards dinner on Feb. 7 in downtown Bakersfield. At the event, it installed its new executive board: Blodgie Rodriguez, chairwoman; Carlos Navarro of Bakersfield Marriott at the Convention Center, chair-elect; David Alanis of America’s Job Center of California, EDD, vice-chair; Adam Alvidrez of Chevron, treasurer; Olivia Garcia of the Kern Business Journal, secretary; and Denise Ornelas of La Bonita, past-chair. Jay Tamsi is president and CEO. The 2015 board of directors installed were Ricardo Villarreal of Wells Fargo Bank; Irma Cervantes of Bright House Networks; Gabriel Godinez of Godinez Law; Les Clark of Independent Oil Producers Association; Dr. Rebecca Rivera of Bakersfield Center for Women’s Health/Glow Laser & Aesthetics; Ed Taylor of Kern Federal Credit Union; Dr. Stuart Tatsuno of Lifetime Chiropractic; Sal Brito of State Farm; Eva Ramirez of Kaiser Permanente; Donna Hollingsworth of AltaOne Federal Credit Union; Nick Ortiz of Western States Petroleum Associates; Ed Rodriguez of Pro’s Wells Testing; Edward J. Herrera of Edward J. Herrera

Insurance Agency; and Donna Hermann of American Cancer Society. In addition, KCHCC recognized the following honorees for their work in the community: Les Clark, Businessman of the Year; Dolores Huerta, Businesswoman of the Year; Bright House Networks, Corporation of the Year; AltaOne Federal Credit Union, Large Business of the Year; Gotta Go Bail Bonds, Small Business of the Year; Advanced Center for Eyecare, Nonprofit Organization of the Year; Robin MangarinScott, Community Service Award of the Year; and Eva Ramirez, Chairwoman’s Award. On a separate note, the KCHCC will be graduating its third KCHCC Business Academy sponsored on March 16. Seats are limited to graduates, board members and a portion of the public. Entrepreneurs and small-business owners have taken a 10-week academy, which provides tools and resources to run a small business. The academy is sponsored by Wells Fargo. For more information about the KCHCC Fall Business Academy, call 661-633-5495. — Jay Tamsi

tion by representatives from WorkLogic HR. NOR Chamber luncheons are a great way to mix and mingle with local business owners and learn from industry leaders about issues affecting business here in Kern County. For some fun outside of office hours, join the NOR Chamber for its Second Annual Casino Night at the Bakersfield Museum of Art. Taking place Saturday, March 7, Casino Night is a great opportunity to flex your gaming muscles for a good cause. Tickets are $60 each or $100 for a pair. Proceeds benefit the NOR Chamber and its scholarship program for seniors graduating from North, Centennial, Frontier and Liberty high schools.

• Feb. 12 — February Luncheon featuring WorkLogic HR at Hodel’s Country Dining, 5917 Knudsen Drive. 11:30 a.m. lunch and networking; noon presentation. $20 Members; $25 Non-members. • March 7 — Second Annual Casino Night. An evening of table gaming, raffles, silent auctions and more at Bakersfield Museum of Art, 1930 R St. 6 - 10 p.m. Tickets $60 each; $100 for a pair. No-host bar. For more information, go to norchamber.org. — Miranda Whitworth

“Bakersfield welcomes thousands of sports event participants, spectators, and fans from across the nation each year,” said David Lyman, manager of the Bakersfield CVB. “From long-standing events like the CIF State High School Wrestling Championships and various softball and soccer events, to more recent ones like the Cali-Finale Cheerleading Championships, the list continues to grow.” “SportsEvents readers came out in force to nominate and then to vote for their favorite sports events destinations and the host organizations that represent them. Our team is proud to honor the nominees that received the most votes with a 2015 Readers’ Choice Award,” said Kristen McIntosh, SportsEvents editor. “It is clear, based on our readers’ experiences, that these award winners are willing to go above and beyond typical service levels to help sports event planners produce outstanding events that participants, their families and spectators will want to experience again

and again. It is our privilege to announce their selection by sports event planners as among the best in the United States.” The Bakersfield CVB was one of only three Readers’ Choice Award winners in California. “This is the first time Bakersfield has received this award, and it reflects our growing reputation as a city of sports,” Lyman added. “With ‘field’ in our name, sports is our game.” — David Lyman

Activities for February and March:

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wholesalefuels.com FOR MORE INFORMATION 661-327-4900 jont@wholesalefuels.com

KERN BUSINESS JOURNAL

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Agriculture

Solar companies use ag land to harvest the sun By Diana Greenlee

nyone who’s experienced a summer in Bakersfield can testify to the power of the sun. Once the stuff of science fiction, solar farms are making the county’s most infamous resource one of its most valuable. Appraiser Michael Ming said local lands are not being openly marketed for solar projects at this time, but solar companies are shopping. Ming said these businesses seek out sites with features making it cost-effective to build and operate the solar facilities, selecting acreage near sub stations or along transmission lines. “The further away from the tie-in, the more expensive it is to run the lines,” he said. Some solar companies start out with multi-year leases, according to Ming. He said it can take up to three years to obtain permits through the county and move forward, designing and executing installation of solar panels. It can get pricey. “The cost snowballs with easements,” he said. “Nobody is going to let you get away cheap.”

“(Kern County has) some of the best conditions in the nation for generating electricity from the sun.” — Tim Lasocki, vice president of project development at SunEdison Easements, which put restrictions on the land use, are a common condition for solar farms, according to Kern County Planning Department Division Chief Craig Murphy. He said the planning department initiates an environmental impact report on fledgling solar projects, and then makes determinations based on potential effects projects may have on native species. If endangered species may be affected, “mitigated” land must be purchased elsewhere, replacing the lost land. “The state legislation has adopted thresholds, and we do our own analysis based on those,” he said. “We put mitigation into the plan for conservation to offset or mitigate

CALIFORNIAN FILE PHOTO

Gov. Jerry Brown speaks at a news conference at the SunEdison in Belmont in 2011. Four years ago, Brown signed legislation focused on renewable resources. SunEdison is currently constructing solar sites in the Kern County area.

the impact of the project. For every acre you convert to solar, you have to establish a conservation or save other properties to take the place of it.” Murphy said the requirements for mitigated land are specific. When Kern County Planning approved SunPower’s Antelope Valley development several years ago, SunPower paid the requisite $14 million for an estimated 2,700 acres of mitigated land to accommodate agriculture and the Swainson’s hawk habitat – and they’re not finished. He said it’s challenging because the land has to meet explicit criteria. “That money is still in process; they are in current negotiation with various landowners,” Murphy said. Supervisor David Couch agrees with

Murphy. He said the extended time it’s taking to acquire mitigated land for the SunPower project isn’t typical. But finding suitable land has “been harder than anyone thought it would be.” “It’s not like they’re not trying (to locate mitigated land),” he said. Despite the challenges inherent in obtaining permits and meeting the zoning and environmental impact criterion, Murphy said solar is here to stay. Four years ago, Gov. Jerry Brown signed legislation requiring utilities to procure 33 percent of their electricity from renewable resources by 2020, and solar energy is pouring into the grid. Tim Lasocki, SunEdison vice president of project development, said they have three

operations in Kern County with future site plans in motion. The vice president said Kern is a leading county in energy production, and has “some of the best conditions in the nation for generating electricity from the sun.” “SunEdison is currently constructing additional solar sites in Kern Valley for the Beacon project, which will supply LADWP with clean energy and help them meet their renewable energy goals,” he said. With a corner on the market for sunshine, agricultural land in Kern County is sought after. Murphy said planning has approved almost 10 times as many megawatts as the closest runner-up, and there are four or five environmental impact reports in the works. “There’s a lot of interest (in solar projects),” Murphy said. “I get calls weekly.”

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KERN BUSINESS JOURNAL

Continued from page 1 “You can know where the guys are in the fields,” he said. Paramount Director of Corporate Communications Anthony Petrucci said they’re using GPS on their equipment. Petrucci echoed Wegis on the benefits; he said the technology enables them to determine fuel usage, deployment and services – taking away the guesswork. “There’s never been an explosion of data that can be gathered and displayed on water, soil and the trees themselves,” he said. Wegis & Young own and manage a variety of crops, but almonds and pistachios are their primary holdings. The owner said GPS can be used for yield monitoring in conjunction with infrared cameras, which produce imagery used to determine stress and potential yield information on trees. “Mainly, we’ll take maps of biodensity and biomass,” he

said. “And infrared of canopy size to see how dense it is.” What about drones? Wegis said the highly publicized unmanned aerial vehicles (UAVs) are “the way to do imagery in the future.” But they require skill to operate and may not be forgiving if they crash – and they’re expensive. “People are still feeling them out,” he said. To determine if trees are under stress, farmers now use “pressure bombs,” which are chambers that measure leaf and stem water potential by attempting to remove water. The instruments register a score alerting farmers if the plant is weak. “Trees under stress won’t reach maximum yield,” said Wegis. Farming is both an art and a science. The president said they prune their trees so 80 to 85 percent of the canopy receives sun exposure, with 15 percent sunlight hitting the orchard floor. They are able to monitor percentages by placing light bars under the trees at midday.

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“We harvest the sun like solar,” he said. “There’s a correlation between yield and sunlight interception.” Paramount Farms is using remote sensing with infrared imaging to calibrate water and fertilizer for their crops, saving time, money and water. “Water is a big topic,” Petrucci said. “We are seeing innovation in remote sensing to determine water drippage to the trees.” Convenience, though, comes at a cost. The president said some of the new systems require training or skilled managers, and if the system goes awry, it can mean another bill. “Things do go wrong, and it can cost from $50 to $110 per hour … (for) repair and maintenance,” he said. “(It’s) also a hidden cost.” Wegis cautions growers who are considering new technology to be choosy and make sure it improves the bottom line. “If you’re actively using it, and it helps you save money,” he said. “It makes sense.”

Kern County Farm Bureau offers update on agriculture conditions facing valley By Beatris Espericueta Sanders

s Kern County Farm Bureau begins a vibrant new year, we welcome the recent rain and the colder temperatures, which help our crops sleep throughout the winter months. As our land rests and our orchards soak in the crisp moisture, we too can rest assured that KCFB remains focused on the year ahead. Stepping into 2015, there are many red flags on the forefront for Kern County agriculture, whose industry produces close to 40 percent of the county’s work force. Beatris Espericueta A word we have all Sanders become very familiar with in agriculture is regulations. Aside from a minimum wage increase last year, our farmers were slammed with copious regulations to their farming operations, including regulations on groundwater, irrigated lands, hen housing, pesticides, increased OSHA limitations and a fuel tax increase, to name a few. An industry like agriculture can quickly become overregulated, unnecessarily restricting the farmer and eventually significantly affecting the average produce consumer. Among regulations, KCFB is continuing to press Congress to enact an immigration reform that addresses the needs of farmers, farm employees and the economy, while also enhancing border security. Immigration reform is very important to the success of this industry, as farm workers continue to be the most consistent and hard-working group of individuals for agriculture. Coming

PHOTO COURTESY OF BEATRIS ESPERICUETA SANDERS

A 15-year-old pistachio orchard next to a freshly plowed field.

to a final conclusion on immigration reform nationwide will be difficult; however, KCFB will pursue what is most beneficial for our industry on a local level. We cannot fail to recall the recent rainfall and the alleged El Niño headed our way. If there is one thing you can talk to farmers about for hours, it’s the weather. The mounting snow and rainfall are encouraging and refreshing, however, we are not out of the drought yet. As a matter of fact, we are nowhere near the end of the water crisis, even with projections of significant rainfall headed our way for 2015. Experts state that Califor-

nia needs close to 3 trillion gallons of rainfall to end the drought. This is equivalent to three consecutive years of heavy rainfall to begin to see the end to the thirst that has rocked our county’s fertile land. Among our local representatives, the majority claims its main issues in 2015 will be water, water and water. Uncertainties about water supplies, water rights and the health of our basin are KCFB’s main issues as well. Thankfully, local agriculture remains the most efficient user of our water in Kern County, having doubled crop production since 1967 while using less water to irrigate crops. Yet,

agriculture will continue to be a target in regard to water regulation. It is my hope that Kern County will come to understand the power and magnitude agriculture has on its residents and economy and for our community to realize we are all affected by this water dilemma. If you wear clothes and eat food, Kern County agriculture affects YOU. Beatris Espericueta Sanders is executive director of the Kern County Farm Bureau. She is a Shafter native and earned a degree from Northern Arizona University in psychology and Spanish.

KERN BUSINESS JOURNAL

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Retail

Industrial

Vincent Roche Senior Director Principal 661.633.3817

Duane Keathley Senior Director Principal 661.633.3817

vincent.roche@paccra.com

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Our Mission is to take care of our clients. We are forever aware that we don't exist without them. We perform at the intersection of their needs and desired results. And we've produced satisfaction time and again.

Wayne Kress Director Principal 661.633.3819

Scott Reynolds Senior Associate 661.633.3825

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Ag and Land Cushman & Wakefield Welcomes Kevin M. Palla as leader of the Agriculture and Land Division

Nathan Perez Sales Associate 661.633.3814

Josh Sherley Senior Associate 661.633.3840

Kevin M. Palla Senior Associate 661.633.3803

nathan.perez@paccra.com

josh.sherley@paccra.com

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Coby Vance Associate Director 661.633.3807 coby.vance@paccra.com

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LEADING COMMERCIAL REAL ESTATE BROKERS Jeffrey Andrew Senior Director Principal 661.633.3827 jeff.andrew@paccra.com

Alex Balfour Associate Director 661.633.3856

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BAKERSFIELD OFFICE 5060 CALIFORNIA AVE., SUITE 1000 BAKERSFIELD, CALIFORNIA 93309 661.327.2263 MAIN 661.633.3801 FAX WWW.PACCRA.COM

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Ag academy grows out of Bakersfield College and Paramount collaboration By Lindsay Ono

griculture is one of the most economically critical sectors, yet a skills gap exists in Kern County. This much-overlooked and misunderstood industry is integrated into every aspect of our modern-day lives, from farming and ranching to support, processing and distribution of goods. Agriculture represents the largest number of jobs in California and the nation, producing America’s food, fiber and energy. Because agriculture has changed so much in recent years, becoming much more technological and science-based, local farming companies are challenged to fill the hundreds of well-paying jobs that are open every year. In order to meet that need, a new program from Paramount Farming puts high school students on paths to careers in agriculture before they even leave high school. The Paramount Agricultural Career Academy is an innovative program that prepares young people for the agricultural industry. Bakersfield College (BC) partnered with Paramount to develop an “early college” model, which enables high school students to earn college credit for free while still in high school. Students can choose among three agricultural career pathways: ag business, ag mechanics and plant science. Agriculture professors from BC teach courses to the high school students, providing real-world expertise, facilitating hands-on training in state-of-the-art laboratories and paving the way for students to do paid internships at Paramount during their senior year. As a result, BC has reinforced its position as a bridge between high school and desirable high-skill, high-paying careers. Through BC’s participation in the Paramount Agriculture Career Academy, high school students can graduate from high school with an associate degree or technical certificate in agriculture and start on their career path that much sooner. For BC, the agriculture academy is highly practical and supports the college’s mission to provide practical training to launch students into well-paying, satisfying careers. Through the agriculture academy, students right out of high school are ready for employment as technicians, product line supervisors, maintenance managers, welders, and machine and equipment operators. The academy provides a jumpstart for young people, especially in a region where one out of every five people reportedly work directly in agriculture or related fields. Unemployment is not the only option for life after high school, particularly when the nation’s largest industry is right in our backyard. Over the next five years, California agricul-

PHOTO COURTESY OF AMBER CHIANG/BC

The Bakersfield College Agricultural Academy is a joint effort between the campus and Paramount Farming and seeks to prepare youth for careers in agriculture.

ture is expected to add 132,000 new jobs. Jobs in some of the high-growth sectors, such as distribution and retail sales of agriculture commodities, are expected to pay upward of $54,000. BC’s agriculture program works to be a leader in innovation and education with the newest technological advances, and in partnership with Paramount Farming, the expectation of a high school education is flipped and expanded through the Paramount Agricultural Career Academy. Students are leaving their K-12 education with career readiness and higher education experiences that last a lifetime. Through partnerships that link community colleges, such as BC, local high schools and companies, such as Paramount, new hope for a positive career future is coming to our local youth. Lindsay Ono is associate professor of environmental horticulture at Bakersfield College.

Growing agriculture leaders locally By S. Aaron Hegde, Ph.D.

ccording to the U.S. Bureau of Labor Statistics (BLS), the national unemployment rate for December 2014 was 5.6 percent, the lowest level it has been since June 2008. During the same month, the unemployment rate in the

agriculture sector was 12.1 percent (seasonally unadjusted annual rate was 7.5 percent). The seasonality of employment in agriculture notwithstanding, according to BLS, it is one of the economic sectors projected to have significant job growth in the next five years. However, this growth will not be uniform across all types of agriculture jobs; rather, it will be limited to higher-skilled

PHOTO COURTESY OF AMBER CHIANG/BC

As part of the academy, high school students learn from BC agriculture professors.

occupations, such as food marketing managers and farm credit analysts, among others. The Department of Agriculture estimates annual job openings in the agriculture, food and renewable natural resource sectors of approximately 50,000, with a majority of them in the management and business aspects of agriculture. This is especially relevant to employment in Kern County, where approximately 24 percent of labor is associated with the agriculture sector, as opposed to the rest of the country where it comprises 1 percent of the labor force. Continued on page 11

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KERN BUSINESS JOURNAL

Continued from page 10 Nationwide, there are not enough qualified college graduates with degrees in agriculture, food and renewable natural resources, thus creating a shortfall in selected occupations. This shortfall is especially acute in Kern County for jobs in agricultural management. Many local agricultural employers have expressed concerns about retaining graduates from traditional agriculture universities. The typical graduate from such colleges, who may not be from the area, is recruited and trained to work in entry-level management, only to return home in a couple of years. Now the employer has to start the process all over again. Recently, a local opportunity to fill such gaps has arisen. California State University, Bakersfield offers programs in agricultural business, a concentration option within the business degree, and the brand-new Bachelor of Science degree in agricultural business. The BS degree is a collaboration with Bakersfield College, such that students complete their associate degree in agriculture from BC and their upper-division coursework in agriculture business from CSUB. This new offering, known as a “2+2” degree, provides the necessary skills and content expected of graduates who are employable in entry-level management positions in the regional agriculture sector. A majority of these homegrown graduates hope to settle in the region, thus meeting the shortfall of qualified high-skills agriculture labor force. One only need attend the annual Growing Opportunities Career Fair held on the CSUB campus to see the enthusiasm for agriculture careers among the more than 200 students who have attended the last couple of fairs. This year’s career fair, to be held on March 11, promises to be no different, as more employers than in previous years are expected to participate. This helps employers and well-trained graduates meet the projected growth in agricultural employment, thus furthering the mission of the university to increase the region’s overall educational attainment, enhance its quality of life and support its economic development. S. Aaron Hegde, Ph.D., is associate professor of economics and coordinator of the Agricultural Business Program at CSUB.

KERN BUSINESS JOURNAL

Februar y / March 2015

BC to launch four-year Applied Science degree

akersfield College was one of 15 California colleges selected to pilot a four-year degree program by the California Community Colleges Chancellors Office on Jan. 20. Gov. Jerry Brown signed SB 850 (Block) in September 2014 authorizing the Board of Governors of the California Community Colleges to establish a statewide baccalaureate degree pilot program at 15 California Community colleges, and Bakersfield College completed the application process in December, proposing the development of a Baccalaureate of Applied Science in industrial automation. The degree will give students the option to complete the required coursework for a bachelor’s degree in an area that is much needed by the community. Only 15 percent of the population BC serves holds a bachelor’s-level degree. Industrial automation represents the technologydriven business model of the 21st century. According to Economic Modeling Specialists International data, technology-driven positions in Kern County have grown over 11 percent since 2009 and will grow an additional 20 percent over the next nine years. BC’s Baccalaureate of Applied Science will give students the skill set that a technologist requires, while meeting the needs of employers in major local areas of agriculture, distribution and manufacturing. Complete information about BC’s Baccalaureate of Applied Science in industrial automation can be found at bakersfieldcollege.edu/ baccalaureate-degree. — Kern Business Journal

PHOTO COURTESY OF GRIMMWAY FARMS

Grimmway Farms’ “TRUE” Organic Juice is comprised of the top six category drivers: Bunched Greens, Bananaberry Crush, Wild Berry Blend, Tropical Mango, Blended Blue and Pure Carrot.

A ‘TRUE’ mix of fruits and veggies By Grimmway Farms

rimmway Farms has grown to be much more than the largest grower, producer and shipper of fresh carrots in North America. After the initial success of farming and processing fresh carrots, Grimmway expanded into organic vegetable operation through our Cal-Organic Farming Division. Today, Cal-Organic is branded on over 65 different organic vegetables, all farmed and managed by Grimmway in a variety of growing regions throughout California. It is through this commitment to organic vegetable farming that our newest product was launched this past year: “TRUE” Grimmway Farms Organic Juice. The diversification into the juice category is familiar to Grimmway Farms. Over the past 20 years, Grimmway has operated behind the scenes as a juice ingredient supplier to major, national and international juice brands. The juice ingredient business has prospered over the years as it has provided an opportunity to create value out of product that otherwise would go unused. This avenue allows Grimmway to utilize product that consumers deem “out-of-grade” when sold as fresh produce, due to cosmetic blemishes or off-sizes. It is a simple transformation of aesthetically challenged products – carrots or leafy greens – into quality vegetable juice. It was the growing demand for organic products that prompted Grimmway Farms to explore the super-premium juice category. “We recognized a void in availability of premium organic juices on the market and leaned on our experience to develop a super-

PHOTO COURTESY OF GRIMMWAY FARMS

Celebrating “TRUE” juice are: Eric Proffitt, Gina Erb, Sara Oliver, Steve Pryor, Steve Roodzant, Andrew Garcia, Hector Pacheco, Hugo Waigand, Kathleen Garzelli and Justine Schoneveld.

premium line of juice that fits this consumer demand,” said Steve Roodzant, general manager of the Juice and Engineering Division at Grimmway Farms. This flavorful new line of juices is comprised of the top six category drivers: Bunched Greens, Bananaberry Crush, Wild Berry Blend, Tropical Mango, Blended Blue and Pure Carrot. What is unique about these juices, although undetected in flavor profile, is the fact that there is a Cal-Organic vegetable in every bottle. Buyers not only receive the benefits of the appealing fruit flavors, but the nutritional value from our vegetables. Creating “TRUE” Grimmway Farms Organic Juice would not have been possible

without the hard work and determination of our employees. We at Grimmway Farms are fortunate to have so many dedicated people working on this project. The passion to create the best product while focusing on impeccable customer/consumer service is what drives our business. Grimmway recognizes and appreciates the time and dedication that our team of employees is investing into the business. We are excited about what the future holds for the fresh produce industry. As consumers grow closer to healthier lifestyles, Grimmway is poised to deliver premium carrots, organic vegetables and organic juices for a healthier tomorrow.

KERN BUSINESS JOURNAL

Februar y / March 2015

Kern County Farm Bureau Young Farmers and Ranchers: A community of young agriculturalists By Lucas Espericueta

he Kern County Farm Bureau Young Farmers and Ranchers is a group of local agricultural professionals and students between the ages of 18 and 35. Our focus is to build leadership, networking and education for our members to be more effective in our professions. We are trying to promote and educate our community about the story of agriculture and how important it is to Kern County. In our current environment of massive consumptions of information over the Internet and social media, it is our responsibility as the next generation of agriculturalists to ensure the entire story of agriculture is being told with proper perspective. Agriculture is a cornerstone of Kern County’s economy and culture and we would like to see it remain so for generations to come. Lucas Espericueta Kern YFR hosts monthly meetings held throughout Kern County where we promote legislative awareness, go on tours of agriculture productions or have guests come speak to the group. In 2014, we visited Western Stockman’s Market Auction Yard, Steve Murray Farms and six different wineries in the Paso Robles area as part of our annual wine-tasting trip. We also had Robert Kunde, manager of Wheeler Ridge-Maricopa Water Storage

PHOTO COURTESY OF LUCAS ESPERICUETA

Kern YFR presents donations to the Lauren Small Children’s Medical Center on December 2014.

District, and Andy Vidak, California state senator, come speak to the group about the drought and water regulations. With the ever-increasing regulations being imposed on California agriculture, we try to help our members stay on top of the issues and know how we can get involved in the legislative process. There are also opportunities to attend seminars throughout the state to gain valuable insights into all aspects of

agriculture. In February 2014, the CFBF Young Farmers and Ranchers Leadership Conference was held in Visalia where we had the opportunity to choose between three different full-day tours in the area, including an Air-O-Fan manufacturing facility and a citrus packing facility. This year’s leadership conference will be held in Sacramento, Feb. 26 through March 1, and will include tours of the capital and the delta. At the annual California Farm Bureau Young Farmers and Ranchers Leadership Conference, the Committee of the Year is awarded to a YFR group based on food donated, community outreach and member participation. Kern YFR has been working hard to receive this award. In 2014, Kern YFR started a scholarship program where we gave two students $2,500 scholarships, donated $1,000 to the Lauren Small Children’s Medical Center, and purchased two animals and donated the meat to the local food bank. We are also the defending champions in the annual Grocery Cart Race competition with fellow county YFR groups. In 2015, our goal is to continue our existing scholarships as well as expand our community outreach as we strive for 2015 Committee of the Year. Our group is a fun and free way to meet new people, and learn about what’s going on in agriculture and how to get involved in the community. If you would like to check it out, email kernyfr@kerncfb.com for details on the next meeting. Hope to see you there! Lucas Espericueta is president of the Kern County Farm Bureau Young Farmers & Ranchers and loan officer for Farm Credit West.

HSC is proud to announce the opening of our High Pressure Iron Testing and Recertification Facility for our Bakersfield Branch. HSC has industry certified technicians to serve all of your equipment needs to ensure that your equipment is safe and free of washout and corrosion.

INSPECTIONS INCLUDE 1. VISUAL INSPECTION - Looking for wash out and corrosion that’s identifiable to the naked eye. 2. ULTRA SONIC THICKNESS TEST - A gauging process used to identify thickness of metal. 3. MAGNETIC PARTICLE INSPECTION - An inspection using magnetic particles to identify cracks and discontinuities in metal. 4. HYDROSTATIC TESTING - Pressure test using air and water.

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KERN BUSINESS JOURNAL

Mission Bank: 15 years of profitability pays dividend

Februar y / March 2015

Drought conditions make staying afloat challenging for ag

PHOTO BY JOHN HARTE

Mission Bank president and chief executive officer A.J. Antongiovanni. By Maureen Buscher-Dang

ecognizing Mission Bank’s strong 2014 financial performance, the board of directors of Mission Bancorp has approved a 5 percent stock dividend, which will be applied to shareholders as of Feb. 16. The Bakersfield-based bank completed its 63rd consecutive profitable quarter on Dec. 31. It reported unaudited fourth quarter net income of $841,000, an increase of $265,000, or 46 percent, from the fourth quarter of 2013. For the 12 months of 2014, Mission Bank reported net income of $3.07 million, an increase of $825,000, or 37 percent, from the prior year. “Mission navigated the financial crisis and came out strong,” said A. J. Antongiovanni, Mission Bank’s president and chief executive officer. He noted Mission Bank’s 2013 acquisition of Mojave Desert Bank in eastern Kern County and the High Desert helped fuel the bank’s growth. “The opening in 2014 of the Riverwalk Business Banking Center and achieving 15 years of continued profitability demonstrate Mission Bank’s strength and growth commitment to the communities it serves,” said Antongiovanni, who announced the stock dividend and year-end financial reports. “In 2014, Mission Bank’s outstanding loans increased $27 million, or 12 percent, over 2013 and ended the year at $253 million,” said Antongiovanni. “This is more than double the 4.9 percent industry average.” Looking forward, Antongiovanni noted that agriculture is expected to remain strong in 2015. The value of land with good water is high. Commodity prices are high for most crops. “As to the oil industry, we have yet to see a decline in financial activity at the bank,” said Antongiovanni. “But clearly we are in an early stage of a downturn. This is a significant event to monitor in 2015. And it could cause land and residential real estate values to decline. “Banking margins are stabilizing as the industry acclimates to the increased costs for regulatory compliance.” Mission Bank’s shareholder equity between 2013 and 2014 increased $3.3 million due predominantly to the year’s strong earnings. Book value per share increased $2.17 to $27.06. The payout date for Mission Bank’s 5 percent stock dividend is March 3, 2015. Mission Bancorp is the parent holding company of two wholly owned subsidiaries, Mission Bank and Mission Bank 1031 Exchange, LLC, and a 50 percent owner of Double W, LLC, an entity that owns commercial property, including the Bank’s Shafter Business Banking Center. Mission Bancorp is headquartered in Bakersfield and has seven business banking centers, serving the greater areas of Bakersfield, Lancaster, Mojave and Ridgecrest. — Maureen Buscher-Dang is a Bakersfield public relations and marketing consultant.

PHOTO BY CASEY CHRISTIE

Isabella Lake near French Gulch Marina in 2014. The lake, which at capacity holds 568,000 acre-feet of water, is down to about 45,000 acre-feet, or just 8 percent of capacity. Due to the severe drought in California, most bodies of water in the state are suffering with low lake levels.

By Diana Greenlee

ongtime family farmer Carl Twisselman II, 74, said his dad had a theory about droughts. “Three out of every 10 years will be bad,” he said. The seasoned cowboy said they rely on well water and rain to grow pasture, or they’re buying feed. He said they’ve sold 75 percent of their herd over the last two years because of increasing costs due to the dwindling water supply. “Last year in March, I never saw it like that,” he said. “Not even weeds.” Ag Commissioner Ruben Arroyo said they won’t know the full local impact until February or March, but his pastures have been decimated. “One hundred percent of our grazing land’s been hit,” he said. “If you don’t have water, (you have) no grass.” Arroyo, 49, said they’ve filed a disaster declaration with the federal government, which will put Kern County in line for funding opportunities, such as low-interest loans for supplemental feed. Echoing Twisselman, Arroyo said feed costs add to expenses, and he believes a “lot of the drought is man-made.” “It’s about water we’re not getting because of little fish… ” he said. Federal regulations designed to protect endangered species, such as the delta smelt, have restricted the

amount of fresh water available from the Sacramento-San Joaquin Delta over the last decade. A confluence of the Sacramento and San Joaquin Rivers, the delta is a major source of freshwater throughout the valley. En route to Sacramento, Rosedale-Rio Bravo Water District Manager Eric Averette, 44, said farmers, many of whom signed up with the state water project half a century ago expecting to receive adequate water, have been short-sheeted because of legal and environmental restraints put in place over the last decade. Regulations have curtailed the amount of water available for the farmers, but they haven’t reduced the payments they’re obligated to make. “They (farmers) are paying for water they’re not receiving,” Arroyo said. “They have to pay the bill and actually buy water elsewhere.” The manager said districts with surplus water, primarily in Northern California, sell the precious liquid to distressed farmers and ranchers, but businesses can only sustain double billing for so long. Some have paid hundreds of millions of dollars to the state water project and have to pay almost as much or more for water. “It can be economically devastating,” he said. For all of the legal wrangling and constraints, efforts to preserve the fishes in the delta aren’t effective according to Averette. He said each side of the debate has its own science, but numbers don’t lie. “The water which farmers should have gotten is pouring into

the ocean and the fish population has not increased,” he said. “Regulations don’t have a significant impact on fish.” Those rulings aren’t helping the farmers and ranchers either. Sixthgeneration cattleman Jack Lavers, 33, said his cattle – and income – have both been reduced 50 percent due to drought. His Glennville ranch is dependent on wells, springs and natural waterways to propagate grazing land. Now wells are dry, and “we don’t have the snow pack; that’s very alarming.” He said the drought has a trickle-down effect that will be reflected in higher prices throughout the economy. “Every time the farmer is affected, it affects us (cattle ranchers),” he said, adjusting his cowboy hat. “The smelt and the salmon (regulations) directly inflate hay prices.” In Pumpkin Center, Michael Poncetta, 33, said they draw from a well on their farm, but the north acreage is dependent on canals, where the water “is nonexistent.” It’s altered their planting plans. They’ve opted to forgo a water intensive alfalfa crop for a more drought-tolerant Sudan grass this year. “We didn’t want to chance losing the investment,” he said of the alfalfa. Although they could exchange or negotiate water, they’ve decided to grow what they can with the water they have. “You have to go with the flow,” he said. “No pun intended.”

Februar y / March 2015

KERN BUSINESS JOURNAL

New laws impacting agriculture in 2015 By Melissa Poole

uring the California Legislative session of 2014, a number of bills were passed that have the potential to impact agriculture, most notably in the areas of water and labor, and none more important than the historic passage of legislation to regulate groundwater in the state. The last time the state made such a huge step regarding water rights was in 1914, when legislation was passed to regulate surface water. One hundred years later, the state has done the same with regard to groundwater. While the results of this legislation will not immediately be felt by most, the passage of the Sustainable Groundwater Management Act of Melissa Poole 2014 signals a sea change in the way that groundwater is managed in the state, which will have significant impacts on all users of groundwater, including irrigated agriculture. The Sustainable Groundwater Management Act of 2014 is a comprehensive three-bill package that provides a framework for management of groundwater supplies by local authorities, with a role for state intervention, if necessary. Most immediately, the act requires the formation of local groundwater sustainability agencies (GSAs) by June 2017 to assess conditions in their local water basins, and then adopt locally based

groundwater management plans by January 2020. The act provides 20 years for GSAs to implement plans and achieve long-term groundwater sustainability. There is still work to be done by the state to develop regulations to better define the standards that will govern the adequacy of groundwater management plans, including what “sustainability” will mean in this context. In addition, the Brown administration has committed to consider legislation in 2015 to address some of the perceived problems with the act, including provisions to improve the manner in which groundwater adjudications proceed (basically, the court process to determine water rights). While the impacts of the Sustainable Groundwater Management Act of 2014 will not be seen immediately, this new regulation of groundwater will have significant impacts on irrigated agriculture throughout the valley, including Kern County. Also on the subject of water, in November, voters passed Proposition 1 – the Water Quality, Supply and Infrastructure Improvement Act of 2014 (the “Water Bond”). The water bond will authorize the issuance of $7.12 billion in general obligation bonds and reallocate $425 million of un-issued bonds authorized by past bond measures to fund a number of water-related projects, including those in the following categories: flood management ($395M), drinking water ($520M), watershed improvements ($1.4B), regional water security ($810M), storage ($2.7B) and recycling ($725M). For Kern County, the funding available for increased water storage (both above and below ground) is important. Opportunities to

improve conveyance and regional planning efforts and monies to improve small water systems with bond funding, could also be beneficial. This money will not be allocated immediately, rather the critical process to select projects for funding will begin in 2015. Finally, with regard to labor, Gov. Brown signed two pieces of legislation that have the potential to significantly impact agriculture because of its reliance on temporary and contract labor. SB 1087 makes changes to the laws governing farm labor contractors, including increasing the fees and surety bonds associated with becoming a licensed contractor, raising the fines and penalties for violations and adding provisions to address sexual harassment of laborers. SB 1897, which applies to other uses of temporary and contract labor, in addition to agricultural labor, makes an entity that uses such labor responsible for all claims against the temporary and/or farm labor contractor with regard to wage and hour violations, safety violations and workers’ compensation. This new law significantly increases the liability associated with utilizing temporary and contract labor. Melissa Poole is director of government affairs and counsel for Roll Global and its related entities, including Paramount Farming Company, Paramount Citrus, Paramount Farms, Fiji Water and POM Wonderful. Poole also serves as an adjunct professor of environmental law at California State University, Bakersfield and is a Kern County planning commissioner.

KERN BUSINESS JOURNAL

Februar y / March 2015

Water

Agencies weigh in on water issues Story and photos by Gregory D. Cook

sources. Fortunately, we were able to tap our groundwater basin, but that has led to historic levels of extraction occurring throughout the San Joaquin Valley.” Extracting groundwater enabled Kern County to weather last year’s water shortages better than some areas of the state, but Beck explained that groundwater alone is not a long-term answer to the county’s water needs. “In some areas, we now find ourselves with extremely low groundwater levels,” he said. “If we have another water supply crisis like we had last year, we just won’t have the same amount of tools available to us to help alleviate some of the impacts like we had in 2014.” Even if 2015 proves to be a “wet year,” and Northern California receives enough precipitation to provide enough surface water, Assistant General Manager Curtis Creel explained that, from their perspective, the water crisis isn’t over. “We still have to get that water supply back here locally and recharge our groundwater,” he said. To help improve efficiency, the Kern County Water Agency recently completed its Cross Valley Canal Expansion Project. The project increases the efficiency with which the agency can transport water to its contracted districts, as well as added groundwater recharging, which is crucial to surviving future water shortages.

ven as the first settlers arrived in what would become Bakersfield, the importance the Kern River would have to agriculture was realized, and the question of who would control the rights to that water supply would become a crucial issue to the developing area. As early as 1860, Julius Chester and H. P. Livermore began construction on the Kern Island Canal from the base of the Panorama Bluffs to divert water for both a mill near current-day Mill Creek Park and for irrigation. By the late 1870s, enough water was being diverted that water rarely reached the western end of the river, prompting landowners Henry Miller and Charles Lux to sue James Haggin and Loyd Tevis, founders of the Kern County Land Company, over water rights on the Kern River. The case advanced to the California State Supreme Court in 1886, and that ruling, along with the 1888 Haggin-Miller agreement, ironed out the basic water rights of the major interests in the southern valley. While there have been modifications to the agreement over the years, the water rights have remained basically as they were originally defined. Today, according to the Department of Agriculture, the gross value of Kern County’s agricultural commodities totals over $6.75 billion annually. With much of the irrigation water for the county’s over 2 million acres of agricultural land coming from the Kern River in the form of surface water or banked groundwater, the agencies that control that water, as well as import water, look for ways to deal with California’s ongoing water crisis. Kern County Water Agency Created in 1961, the Kern County Water Agency is the second-largest participant of the California State Water Project, the nation’s largest water storage and conveyance system, made up of 23 man-made lakes and reservoirs and over 700 miles of canals and pipelines throughout the state. “The primary role of our agency is to serve as the local contractor with the state of California for delivery of water to the 14 water districts in Kern County who rely on the state project for a portion of their water supply,” explained General Manager Jim Beck. “Those water districts, in turn, deliver that water to the landowners they serve.” According to Beck, historically, Kern County receives on average as much water from the State Water Project as it does from the Kern River, somewhere in the neighborhood of 700,000 acre-feet annually. That water, which originates north of Sacramento,

Water flows over Reclamation Weir in the Carrier Canal. Weirs such as this one allow for the measurements of the flow rate at which water travels through the canal and are often used to determine the amount of water being diverted from the Kern River and into the canals of various water storage districts.

is critical to Kern County. “Without the imported water from the State Water Project, we really wouldn’t have the dynamic economy we have related to agriculture,” he said. “That water is a key component to our local water supply, and, frankly, as important as the Kern River when you look at the average amount we receive.” However, with the state’s ongoing water crisis, the amount of water Kern County received last year from the State Water Project was reduced to a comparative trickle of its historic averages, with Kern County receiving

only 5 percent of its contracted allocation. On Jan. 15, the Department of Water Resources raised its initial estimate of a 10 percent allocation, expecting to be able to deliver a 15 percent allocation for 2015. While that is good news for Kern County, Beck pointed out that at any rate, this year will be challenging. “We’re really at an important time for water management for the upcoming year,” said Beck. “We’re coming out of a tremendously difficult year for water users, as we had an extremely dry year for our key surface-water

Bakersfield Water Resources Department In 1976, the city of Bakersfield acquired Tenneco West’s water rights to the Kern River and created the Water Resources Department to oversee the distribution, water banking and record keeping of Kern River water. “We are actually both a wholesaler of the Kern River surface water and also a retailer,” explained Art Chianello, water resources manager. “Our wholesale division is mainly our Agriculture Water Division, where we manage the city’s water rights, and through our Domestic Water Division, we bring drinking water to about 140,000 people.” The city owns about 43,000 metered connections on the west side of the city, which are operated by California Water Services. Additionally, Bakersfield Water Resources operates the city’s storm-water sumps and maintains the levees along the Kern River, the south of which is the Kern River Parkway Bike Path. The department is also responsible for operating the weirs and head gates that distribute water to the various other agencies with water rights or entitlements from the Kern River. Continued on page 17

Februar y / March 2015

Continued from page 16 “We communicate with the Army Corp of Engineers every day,” said Chianello. “Our dispatcher tallies up all of the water orders for the day and contacts the engineers up at the Isabella Dam to tell them how much cubic feet of flow rate we need.” As that water reaches the valley floor, it is measured and diverted into canals that carry the water to the respective agencies. “Along with the water rights and diversion structures, the city also owns the Kern River Channel property from Manor Street out to Enos Lane,” said Jason Meadors, water resources director. “And we have water-banking facilities out there of about 2,800 acres where we can recharge groundwater.” While much of the valley’s agricultural land depends heavily upon state and federal water, Bakersfield and its surrounding area receive most of their water directly from the Kern River. “The city itself is mostly dependent on our river water rights,” said Chianello. “About 15 percent of our total water usage can be from state water sources when it’s available.” After three consecutive years of drought conditions, surface water supplies from the Kern River have dropped to nearly 20 percent of its historic levels. “One of the ways we survived was through conjunctive use – using surface water when you have it, and groundwater when you don’t,” said Chianello. Chianello pointed out that while Kern County is fortunate to have a healthy conjunctive system, it is not sustainable to rely on groundwater for too many years in a row. “It’s our conjunctive system that will get us by, but we shouldn’t be too glib about it,” he advised. “We need to understand the writing on the wall: We really need to conserve because we don’t want to stress that system too much.” To that end, the department is working

KERN BUSINESS JOURNAL

to partner with other water purveyors in the county to roll out a higher-awareness campaign about water use. “Last November, we had a reduction of 22 percent in water use over last November,” said Meadors. “And if people keep that awareness and keep that up, it will really help our water supply.” “It’s times like these that we really need to increase public awareness about water conservation and using water wisely,” added Chianello. “Historically, there have been multiple drought years in a row, and what gets through the dry years is how you manage the wet years.” North Kern Water Storage District The North Kern Water Storage District was formed in 1935 and covers an area of 60,000 acres of agricultural land north of Bakersfield. “It’s about 80 percent permanent crops,” said Richard Diamond, general manager. “And about 60 percent is almonds and then the other permanent crops are mostly pistachios and grapes.” The issue with permanent crops is that growers can’t just fallow the land during a drought. “It’s kind of a big issue within the county,” he explained. “When you look at overall land production, the amount of permanent crops has gone up. And those trees need water even in a drought, so everybody is pumping groundwater really hard.” Most of the water coming into the district is diverted from the Kern River through the Beardsley Canal, which originates at the base of the Panorama Bluffs about a mile south of Hart Park, and flows north through Oildale and out to reservoirs near Famoso. “Our water supply is nearly exclusively the Kern River, at least 90 percent,” said Diamond. “The Friant-Kern Canal bisects our district, and occasionally, in wet years, gets some water from that.”

During a routine maintenance period in which the canal is drained, a maintenance crew works to lower a gate-outlet box along the the Lerdo Main Canal in order to allow the outlet to continue to function with lower levels of water in the canal.

Created as a result of the 1888 Miller-Haggin Agreement, the Carrier Canal, today operated by Bakersfield Water Resource Department, runs along the base of the Panorama Bluffs and diverts water directly from the Kern River into canals serving much of southern Kern County.

In the 1950s, the district secured water rights on the Kern River through an agreement with the Kern Land Company and constructed a system of canals and recharge ponds to manage the area’s water needs. With river-water supplies being well below average for the last two years, North Kern Water is taking a number of steps to increase its ability to meet the water needs of the growers in the district. “Over the last four or five years, we’ve been doing some pretty significant capital improvements to improve our ability to move water around,” said Diamond. “The project we have coming up this year is to line our secondary canal, the Calloway Canal, to prevent seepage and allow the water to move more efficiently.” The Calloway Canal was completed in 1879 and was the original source of water for the area. Additionally, the district is making sure it is prepared in case 2015 is another dry year. “We don’t know what this year will bring, so we are in the process of getting our wells in shape to run again this year if we need to,” Diamond explained. “We have about 100 wells in the district that pump groundwater, and in some of them, we have to lower the pumping units because the groundwater levels are lower.” Also, Diamond said that the district is in talks with an oil company to acquire what is known as “produced water,” water that comes up with the oil and natural gas in production wells. That water, most of which is considered a waste product by the oil industry, can be filtered and used as agricultural water, or to recharge groundwater. The neighboring Cawelo Water District has been receiving produced water from Chevron for a number of years. Diamond estimates that the amount of produced water they could reclaim might equal the volume they have received from the Kern River in recent years. “In a dry year, it would be a tremendous help,” he said. “The oil company wants to

help the farmers, and we could certainly use the water.” Buena Vista Water Storage District In 1924, the Lux Land Company transferred the Kern River water rights that had been awarded to Henry Miller and Charles Lux through the 1888 Miller-Haggin agreement to the newly formed Buena Vista Water Storage District. The district encompasses over 49,000 acres covering a strip of land in western Kern County about three miles wide and 20 miles long near Buttonwillow. The land was originally owned buy Lux and Miller in the late 1800s and today, over 300 different entities own land within the district. The Buena Vista Water Storage District’s Kern River rights start annually March 1 and run through August, during which they are entitled to around one-third of the river’s flow, which amounts to approximately 130,000 acre-feet annually. They also contract for up to 21,000 acre-feet of water from the State Water Project, although the over the last two years they have received only a fraction of that. “The facilities out here were actually constructed between 1850 and 1870,” explained Maurice Etchechury, the district’s general manager. “There’s been some improvements, but the basic concept of how the Buena Vista Water Storage District is irrigated was generated back then.” Looking forward, the district is in something of a transition period. “We’re just trying to skip a whole century in the way we do things and deliver water,” said Etchechury. “It’s a big change, but we have a vision of where we want to go.” In the last year, the district has completed the environmental documentation required to install around 20 miles of pipelines that will deliver water more efficiently to some areas of the district than irrigation ditches. “We’re also pursuing a state grant that Continued on page 18

KERN BUSINESS JOURNAL

Continued from page 17 would allow us to extract water that ordinarily could not be used for irrigation because it has a high salt content,” said Etchechury. “We can take that and blend it with some of our better water and that increases our total water supply.” The district hopes to have both projects done in 2015. Etchechury cautioned that rain on the valley floor doesn’t translate into an end of the water crisis. “When you get 6 inches of rain spaced out over the course of a year, it rarely gets out of the root zone of the weeds,” he explained. “What’s important to us is the rain, and more importantly the snow in the Sierras. That is the key.” As for his predictions for 2015, “I tell everyone that it’s going to be a wet year. You know why? Because it has to be,” he said. “But the snow packs are still very low compared to normal, so just pray for snow.” Kern Delta Water District The Kern Delta Water District was formed in 1965, originally to manage the state water coming into the area. The Kern Delta area was actually serviced by five separate canal companies that the Kern County Land Company managed. Those Kern River water rights eventually passed to Tenneco, and when the city acquired them in 1976, Kern Delta purchased the rights for its district’s area, which covers some 128,000 acres south of Bakersfield.

One of California’s the first major irrigation canals, the Kern Island Canal began in 1874 and runs from the base of the Panorama Bluffs, through present-day Mill Creek Park, and continues, running parallel to H Street, to supply irrigation water to growers south of Bakersfield. According to provisions set forth in the 1888 Miller-Haggin Agreement, the first 300 feet-per-second of water flow from the Kern River is still diverted into the canal.

“We manage agriculture water,” explained Mark Mulkay, general manager for the district. “Right now we don’t have any plans to become an urban purveyor, but in the future we could become a supplier to the city’s purveyors.” Chief among the river water rights managed by the district is the Kern Island Canal, which originates near Manor Street below the Panorama Bluffs and runs south through town along H Street to feed the agricultural

lands along Highway 99. The Kern Island Canal is the “first right” on the river. “It gets the first 300 second-feet off the river every day before anything else,” said Mulkay. “That’s the main water right.” In all, the district operates and maintains approximately 160 miles of canals and 900 acres of recharge basins. Looking to the future, the district is cautious.

Februar y / March 2015 “We’ve still got our drought hats on,” Mulkay said. “So the projects we’re looking at now are just trying to maximize the river supply as best we can.” Mulkay is hopeful that the state’s new groundwater legislation will urge all water users to become more efficient and responsible in their water use. “We’re all going to have to figure out how to live within our means, so to speak,” he said. “We have to find a way to become sustainable.” Two years of drought conditions have left Kern County significantly behind in terms of both surface and groundwater supplies, and, according to Mulkay, it’s going to take a number of significant weather events to return to normal. “Let’s say we have a normal year, where we get enough snow and we have an average year,” he explained. “We really haven’t solved anything, all we’ve done is not fall further behind for a year. What we need are those bigger-than-average years to make up for the slow ones.” The last two years have seen the Kern River’s flow reduced to 20 percent of its historic average, and the threat that this trend may continue is very real. “Without getting into the argument of climate change, it could be that we are going to go into an extended dryer period,” Mulkay said. “And if that’s the case, we as water managers and water users are going to have to learn to be much more efficient and effective with what little water we have. Whatever that takes.”

KERN BUSINESS JOURNAL

Februar y / March 2015

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KERN BUSINESS JOURNAL

Februar y / March 2015

Valley Republic Bank sets records with 2014 performance By Stephen M. Annis

trong local loan demand and the desire to do business with Kern County natives drove Valley Republic Bank’s exceptional performance during 2014. For the 12 months ending Dec. 31, net income was $2,716,000, an increase of $659,000, or 32 percent, compared to a net income of $2,057,000 for 2013. “Since the Stephen M. Annis inception of Valley Republic Bank in early 2009, the support of the local community and the high demand for local relationship-based banking services has resulted in growth and performance that has far exceeded our original projections and expectations,” said Bruce Jay, president and CEO. Valley Republic Bank (OTCQX: VLLX) recorded pre-tax net profit for the fourth quarter of 2014 of $1,149,000, compared to pre-tax net profit of $775,000 for the fourth quarter of 2013. Net income after tax for the

CALIFORNIAN FILE PHOTO

Valley Republic Bank President and CEO Bruce Jay. “Strong local loan demand across all sectors resulted in loan growth success,” said Jay.

fourth quarter of 2014 was $787,000, compared to $485,000 for the fourth quarter of 2013, an increase of $302,000 or 62 percent. This marks the fourth consecutive quarter of

record earnings. Basic earnings per share (EPS) were 78 cents and 59 cents for the year-to-date periods ending Dec. 31, 2014 and 2013, respectively.

For the fourth quarter of 2014, EPS was 22 cents per basic share, compared to 14 cents in the fourth quarter of 2013. “Strong local loan demand across all sectors resulted in record loan growth at Valley Republic Bank,” said Jay. “Loans outstanding increased 35 percent over the previous year. Further, net loan growth in 2014 was approximately 35 percent higher than the growth achieved in any previous year in our history.” “The board of directors is pleased with the performance of Valley Republic Bank,” said Chairman Eugene Voiland, adding that “the Bakersfield-based bank’s safety is paramount to earning and maintaining the trust of the public. Since the inception of the bank, no loans have been charged off. In addition, on Dec. 31, 2014, there were no loans on non-accrual or past due more than 30 days. We continue to be diligent in our loan underwriting and approvals. Our mission to create a safe haven for local banking is a foundation of our bank and our commitment is unwavering.” For more information, visit valleyrepublicbank.com. Stephen M. Annis is executive vice president & chief financial officer of Valley Republic Bank.

FOREIGN TRADE

Obligations & Implications The CSU Bakersfield Financial Management Association (FMA) is bringing Foreign Trade Experts to campus. Join us and learn about: • • • • •

Opportunities to Export Overseas Export Challenges and Barriers that U.S. Companies Face Intellectual Property Protection Distribution Channels Foreign Customer Relations

Hosted By: CSUB Financial Management Association (FMA) Date & Time: Thursday, March 5, 2015 4-7pm Location: CSUB Student Union Multipurpose Room (MPR) Light Refreshments will be served For more information please visit

www.csub.edu/fma • www.csub.edu/bpa

CONTACT: Dr. Mahdy Elhusseiny, FMA Advisor melhusseiny@csub.edu Koathar Hassan, Event Coordinator CSUBakersfieldFMA@gmail.com

Februar y / March 2015

KERN BUSINESS JOURNAL

Februar y / March 2015

Kern Cattlemen: Land, legacy and the longing to continue By Austin Snedden

roperty rights are the foundation of all income creation. The security of intellectual property, physical property and real property provide the means for creating income through the leasing, selling and ownership of these respective properties and the productivity they generate. For Kern County Cattlemen’s Association (KCCA) members, cattle production on real property is the source of our income. Our cattle producer members produce wholesome, nutritious beef raised on the grasslands of the Kern County countryside. The safeguarding of property rights is KCCA’s most compelling issue. KCCA is an all-volunteer, non-profit organization with the purpose of improving and promoting the general interest and welfare of the cattle-raising industry and its members in Kern County. Along with involvement in property rights and industry issues, KCCA gives annual scholarships to students seeking a career in the cattle industry. Cattle ranching has a rich history in Kern County. Many of the cattle ranchers working in Kern County today are the descendents of homesteaders and ranchers who settled here over 100 years ago. The county’s cattle operations are primarily family businesses, where it is common to see three generations of a family working side by side. One of the biggest threats Kern County cattle ranchers face is restrictions placed on public and private land by federal and state agencies. Mitigation purchases of land forced by public agencies to offset development, municipal and infrastructure expansion result in the loss of private property and, often, the removal of cattle grazing. The Endangered Species Act has been used from its inception by anti-animal agriculture groups to put pressure on governmental agencies to regulate, restrict and remove cattle from not only public but private land as well. For example, A-listed species, such as the Willow flycatcher, sage grouse or California condor, may be found

PHOTO COURTESY OF AUSTIN SNEDDEN

Austin Snedden, middle, rides with his two eldest children. Many of the cattle ranchers working in Kern County today are the descendents of homesteaders and ranchers who settled here over 100 years ago.

by a federal or state agency where cattle range, and without analyzing the symbiotic relationship that has existed between these species and cattle for over 100 years, cattle are pre-emptively removed or restricted, often to the detriment of the wildlife and the cattle rancher. Cattle grazing helps promote healthy grasslands and forests and reduces fuel loads, helping to prevent large-scale wildfires, all while producing a nutritious food source and contributing to local economies. With over half of the western U.S. being owned by the federal government and with ever-encroaching federal land acquisition and restriction, KCCA looks to not only safeguard property rights for this generation of cattle ranchers, but for future generations of cattle producers and individuals who recognize that we are all dependent on property rights, and that they are best adjudicated at the local level. As you drive through the Kern County countryside and see what some may define as “vacant land,”

PHOTO COURTESY OF AUSTIN SNEDDEN

“Safeguarding property rights is a priority of the Kern County Cattlemen’s Association,” Snedden said.

you may be looking at the business of a cattle rancher. KCCA members take pride in being cattle producers and are proud to contribute to

the culture and economies of Kern County. If you would like more information or would like to become a member, visit our website:

kerncattlemen.org. Austin Snedden is president of the Kern County Cattlemen’s Association.

KERN BUSINESS JOURNAL

Februar y / March 2015

Going solar made simpler, cost effective By Fiona Lytle

n innovative group-purchasing program for solar electrical systems will soon be coming to Kern County. Solarize Kern County will make going solar simpler and more affordable for homeowners and small businesses across the county. The Kern Economic Development Foundation has partnered with the Community Environmental Council to launch Solarize Kern County, which offers discounted group-purchase pricing for solar panels from vetted, local installers. KEDF is a research- and education-based 501(c)(3) organization that supports Kern County businesses and communities in reaching their full economic potential. Kern EDC President and CEO Richard Chapman is confident that the program will positively impact our region this year, stating: “Solarize Kern County will help stimulate our economy by helping local companies in the areas where jobs are needed. The program increases the community’s awareness about solar and the benefits it can provide, thereby boost-

ing the number of solar installations throughout the county.” Solarize Kern County, is based on the Solarize grouppurchasing model that was pioneered in Portland, Oregon, and has since been replicated in communities across the nation. The Community Environmental Council (CEC) has conducted 10 successful Solarize programs throughout California, equating to more than 400 homeowners and businesses converting to solar and saving on utility bills. “Solarize Kern County offers three great benefits,” said Jefferson Litten, CEC’s Solarize program manager. “A discounted price to go solar, confidence working with a vetted installer, and free education and consultation about the benefits of solar.” Solarize Kern County features partnered solar installers that are carefully evaluated and vetted by a committee of local experts. Installers are selected based on experience, quality of work, equipment offered and customer service. These partnered installers agree to offer a fixed, discounted price for solar installations to homeowners and businesses through the program. As part of the Solarize program, KEDF and CEC will

offer free, educational workshops across the county for homeowners and businesses interested in learning about the benefits of solar, solar technologies, financing options and the Solarize Kern County program. “Many people are not aware that they can start saving right away by switching to solar,” noted Litten. “Through the education workshops, the community learns about the benefits of solar, more homeowners and businesses start saving money by switching to solar, and the local industry benefits by adding construction jobs.” Solarize Kern County will launch in mid-February and will be available for three months. Visit KEDC.com for more information and upcoming program announcements. Since 1970, the Community Environmental Council has developed creative solutions to the region’s toughest environmental challenges. Today, CEC is focused on increasing the amount of renewable energy in Central California. Find CEC on the web at CECSB.org. Fiona Lytle is a research analyst & marketing specialist at Kern Economic Development Corporation.

Library encourages use of Ebsco Small Business Reference Center By Katherine Ross

bsco’s Small Business Reference Center provides a significant array of useful business books to help with issues common to all small businesses, including several agriculturespecific titles. This resource, like most of the library’s online databases, is available both in the library and through the Internet to all library cardholders. It contains nearly 400 full-text periodicals and over 450 fulltext reference books. To access this free resource outside the library, visit our library home page, kerncountylibrary.org, click the “Research and Reference” link, the “Alphabetical List of All Databases,” then scroll down and click the “Inside & Outside of Library” link next to “Small Business Reference Center.” You can search by publication, category, popular Nolo Press Business books, and advanced or basic search options. There is also a “Start-Up Information” corner with links to state-

specific resources. For immediate access to agricultural publications, click “Publications,” then click in the box to search by subject and description, and type “agriculture.” The result is a manageable list of 14 periodical publications, including “Agricultural Products Industry Profile: United States” and “Hay & Forage Grower.” This database also has “The Complete Guide to Organic Livestock Farming” and the “Complete Guide to Small Scale Farming” which contain everything you need to know about raising beef cattle, rabbits, ducks and other small animals. You can retrieve these through the “Publications” search window and browse through them by chapter – just enter the title in the “Browse Publications” box and click on the date next to “Publication Details.” Ebsco provides several ways to refine the results of a keyword search. For example, if you do a basic search for something like garlic, the 152 results can be easily refined to just three by dragging the publication date slider to 2010-2014 and setting the “Geography” limit to

PHOTO COURTESY OF KATHERINE ROSS

Ebsco’s Small Business Reference Center provides a significant array of useful business books to help with issues common to all small businesses and is available in the library and through the Internet to all library cardholders.

California. To search for other keywords, simply click “New Search” at the top left of the screen. If a search should yield no results, it’s easy to go back to the database list and choose another database. Small Business Reference Center also provides several of the high-quality Nolo Press business books, accessible from the main search screen. The 30 titles include: “Legal Guide for Starting & Running a Small Business,” “The Employer’s Legal Handbook,” “Legal Forms for Starting &

Running a Small Business” and “Working for Yourself.” All of these resources may be viewed, printed and emailed, and most of them include complete illustrations and charts through PDF files. Of course, this database is great for researching small businesses in other fields as well. To learn more, visit or call your local library. Katherine Ross is a librarian in the Kern County Library System.

KERN BUSINESS JOURNAL

Februar y / March 2015

Brown’s California overtakes Brazil with companies leading world By Michael B. Marois and Shin Pei Bloomberg News

alifornia is overtaking Brazil as the world’s seventh-largest economy, bolstered by rising employment, home values and personal and corporate income, a year after the most-populous state surpassed Russia and Italy. The Golden State, with an equivalent gross domestic product of $2.20 trillion in 2013, expanded last year by almost every measure, according to data compiled by Bloomberg. Brazil’s gross domestic product, in contrast, declined 1 percent from $2.25 trillion in the first three quarters of 2014 as its export of raw materials fell. Gov. Jerry Brown, 76, sworn in to an unprecedented fourth term, is presiding over the turnaround as he steers away from persistent deficits and fiscal turmoil that prompted Republican presidential candidate Mitt Romney in 2012 to compare California to Greece, which has about one-tenth of its GDP. California-based companies from Apple Inc. to Walt Disney Co. handed investors a total return of 119 percent since January 2011, when Brown returned to the governor’s office, compared with 96 percent for the Standard & Poor’s 500. “It’s the diversity of the California business environment, from movies to the Internet to agriculture -- the incredible array of businesses that make up the state,” Brown said in an interview at his office in Oakland, where he was mayor from 1999 to 2007. “Certainly getting our finances in line as a state is also helpful: the new investments in our schools; solid universities; investments in water and energy. All this gives security and keeps California very much in the forefront of investment, change, cultural adaptation and leadership.” Sustained momentum Brown’s economy has sustained its momentum since 2013, when the value of goods and services produced in the state topped that of Russia and Italy to vault California to No. 8 in the world. California grew an average of 4.1 percent annually during the first three years of Brown’s most recent term. Economists in Brazil, with a population five times bigger than California’s 38.3 million, cut their growth estimate and raised their inflation forecast for this year on Jan. 12, as the central bank raises rates in the world’s second-biggest emerging market. Its economy grew 0.1 percent in the third quarter over the three previous months, after contracting 0.6 percent in the second quarter. “Resource-rich nations are traditionally subject to boom and bust,” Brown said. “We’re not just dependent on one particular industry or resource.” Renewable energy Brown, in his inaugural speech on Jan. 5, said the California economy can expand even as the state grows more aggressive in requiring the use of renewable energy sources and reducing the use of gasoline. “We have to prove to the world that you can move forward with progressive and forward-thinking climate change policies while growing the economy simultaneously,” Kevin De Leon, a democrat and state senate president pro tem, said in an interview in Sacramento. “They’re mutually compatible and inclusive as opposed to exclusive.” Brown’s policies, for the most part, are proving beneficial to the long-term economic health of California, said Chris Thornberg, principal at Beacon Economics LLC, a Los Angeles-based research company. Thornberg credited larger

CALIFORNIAN FILE PHOTO

California Gov. Jerry Brown, left, is greeted by former Gov. Gray Davis, right, after Brown’s inauguration at the state capital in January. California is overtaking Brazil as the world’s seventh largest economy.

forces, though, from Federal Reserve policy to the purging of bad loans from the real-estate market for the state’s recovery. ‘Better job’ “From an investor standpoint, I don’t think anybody could have done a better job,” said Michael E. Johnson, managing partner at Gurtin Fixed Income Management in Solana Beach, California. California’s ascendance comes as the World Bank cut its forecast for global growth this year, with the improving U.S. economy and lower fuel prices failing to offset disappointment elsewhere in the world. “The global economy today is much larger than what it used to be, so it’s a case of a larger train being pulled by a single engine, the American one,” World Bank Chief Economist Kaushik Basu told reporters on a Jan. 13 conference call. “This does not make for a rosy outlook for the world.” California leads U.S. states in agriculture, technology and manufacturing revenue growth, Bloomberg data show. It’s home to more companies on the S&P 500 than any other state. The state’s job growth outpaced the nation’s in the first nine months of last year. California’s non-farm employment of

15.7 million people is at an all-time high. Poverty rate Challenges remain. While employment rebounded last June to levels from before the 18-month recession that ended in 2009, its jobless rate of 7.2 percent as of November was tied with Mississippi for the second-highest among U.S. states. Almost a quarter of Californians live in poverty, the highest rate in the nation, according to the U.S. Census Bureau. Spending on welfare remains lower than before the recession began. “We’ve brought our unemployment rate down rather quickly and we’ve recovered the jobs deficit that we incurred during the recession, which in percentage terms was bigger than the nation’s,” said Robert Kleinhenz, the chief economist for the Los Angeles County Economic Development Corp. “It dug itself into a deeper hole but it did manage, through faster growth, to recover almost as quickly.” California has rebounded from when Romney, the former governor of Massachusetts, dismissed the state as a failed Continued on page 25

Februar y / March 2015

Continued from page 24 economy as it grappled with the prospects of tax increases and budget cuts. ‘Like Greece’ “Entrepreneurs and business people around the world and here at home think that at some point America is going to become like Greece or like Spain or Italy, or like California — just kidding about that one, in some ways,” Romney said, to laughter from his audience. Like California, the city of Oakland, of which Brown was mayor for two terms, has experienced an economic revival. “The proximity of San Francisco and being located in the Bay area” are the pivotal factors behind Oakland’s resurgence, Brown said. “There is a dynamic interplay. Oakland is closer to San Francisco than San Francisco is to itself. West Oakland is closer to the financial district and even south of Market than most of San Francisco. I did push condo development and responsible policing to keep the crime down.” The new Oakland mayor, Libby Schaaf, was a former Brown aide and City Council member who emerged as frontrunner after winning the governor’s endorsement in October. More bullish Analysts are more bullish on California-based businesses than on U.S. companies, as measured by the Russell 3000 index, Bloomberg data show. Companies based in the state will provide a 15 percent return to investors in the coming year, compared with 12 percent for the index. To those who assert that California’s tax and regulatory structure make it a hostile place to do business, Brown offers an anecdote: He tells a story about a Silicon Valley investor he

KERN BUSINESS JOURNAL

met at a cocktail party who started and sold three technologyrelated businesses. The man told the governor he’s in California because the state has “more smart people with money and more people who know how to spend that money by way of tech companies and ventures that are constantly sprouting up.” The cost of protecting bonds of California from default tumbled the most among all the states in the four years ended Dec. 31. Credit-default swaps, which investors use to hedge against losses or to speculate on creditworthiness, declined 201 basis points to 104 basis points, Bloomberg data shows. Investor confidence Credit swaps, which typically decline as investor confidence improves and rise as it deteriorates, pay the buyer face value if a borrower fails to meets its obligations, less the value of the defaulted debt. A basis point equals $1,000 annually on a contract protecting $10 million of debt. “That huge deficit was a shock to the political sensibility,” Brown said. “I was able, in that context, to win substantial cuts on the part of government spending. I was also able to win approval of Proposition 30 to inject more revenue into the economy. All of that together brought us a place of more stability.” While final figures for the 2014 California economy won’t be available until June, projections in Brown’s proposed state budget show the gains. Per-capita annual income in California was estimated to have increased by $1,700 to $50,338 in 2014, according to state data. California home prices climbed an average of 12 percent last year through Sept. 30. ‘Growing faster’ “California is growing faster than the U.S. economy,

which is a bright spot in the global economic situation,” said Sung Won Sohn, a professor at California State University, Channel Islands in Camarillo who was chief economist at Wells Fargo & Co. “California is always more volatile than the U.S. We tend to go down more rapidly and we tend to rise more rapidly.” Brown’s Jan. 9 budget proposes spending a record $165 billion. Temporary sales and income tax increases that he championed in 2012, combined with surging capital gains revenue tied to stock market gains, have left the state with a $5 billion surplus in the fiscal year that begins in July. The governor is seeking to store much of that surplus in reserves to cushion against economic downturns. California-based technology companies brought in $692 billion in revenue in the past 12 months, about half the industry’s sales across the U.S. The value of manufacturing in California climbed 8 percent to $204 billion in 2012, compared with a 7.4 percent increase in Texas to $176 billion. California agriculture Agriculture in California produced $21.4 billion in revenue in 2012, three times more than the $6.8 billion in secondranked Iowa. The number of companies in California that rank in the top 500 in the world in terms of market capitalization rose almost 48 percent since 2009. High-technology jobs in the business and professional services sector in California were forecast to grow to 15.7 percent of the economy in 2014, up from 15.4 percent a year earlier. “I’ve found that people get very stuck in what is,” Brown said. “I very much like tradition, but you have to be able to change and disrupt while balancing tradition. The continuity and the change blending together is your creative task.”

4th Annual

GROWING

OPPORTUNITIES career fair

Wednesday March 11, 2015 1:30 - 5:30 pm multipurpose room california state university, bakersfield www.csub.edu/bpa For more information regarding this event, please contact USDA Regional Director Juan Alvarez at juan.alvarez@osec.usda.gov and Angel Cottrell at acottrell@csub.edu or 661-654-3173

come join us! • Learn about USDA and Ag. Industry internships, and job opportunities • Network with professionals, faculty, staff, and other students • Connect with Private and Public Sector Recruiters • Advance your Career Goals! • All Undergrad and Graduate School Majors Welcome!

KERN BUSINESS JOURNAL

Februar y / March 2015

Part-time worker finds all the right healthy food sources for CAPK Food Bank By Louis Medina

his is a story about how the generosity of a grant-maker and dozens of local farmers turned a full-time empty nester mom into a “food sourcer” for the Community Action Partnership of Kern’s Food Bank. “I approach farmers and ask them to donate their produce to the food bank,” said Maureen Andrew, who became a part-time CAPK employee last May (after her “baby” went to college), thanks to a two-year “Healthy Eating in Hard Times” grant from Kaiser Permanente. “We never had the means to hire a food sourcer before that,” said Carmen Segovia, CAPK’s director of Health and Nutrition Services. Segovia knew that having such a person on staff could help augment the food bank’s fresh produce offerings. “We want to be a nutrition-focused food bank,” Segovia said. “Maureen’s focus is to find healthy sources of food to fulfill our vision and Kaiser’s vision of promoting health and wellness through access to fresh fruits and vegetables.” Donations of produce such as eggplants, regular and sweet potatoes, onions, nuts, watermelons, grapes and oranges from local farmers have increased thanks to Andrew’s work, said her boss, Food Bank Manager Ken White. “She has the ability to network in a greater way throughout the community,” he said. “She can educate farmers about the role of the food bank, develop a relationship and ask for donations.”

PHOTO COURTESY OF LINDSEY PONCE; CAPK FOOD BANK

Food sourcer Maureen Andrew stands in front of palletized boxes of table grapes donated to the CAPK Food Bank by Delano-based Columbine Vineyards. Andrew networks with local growers to procure donations of fresh produce for the Food Bank.

A junior varsity tennis coach for boys and girls at Bakersfield High School, Andrew is naturally outgoing; but the giving spirit of many locals makes her job easier.

“We have a lot of very generous farmers who believe in giving back to the community,” she said. One such farmer is John Moore, CEO of Moore Farms and White Wolf Potato Company in Arvin. Moore, who grows almonds, pistachios, carrots, oranges and potatoes, donated four 1,200-pound bins of potatoes to the CAPK Food Bank in July, toward the end of the growing season. “I did it for a good cause, to help the poor,” the third-generation farmer said. “The potatoes would have gone to cattle feed, but instead they helped to feed hungry people.” Another third-generation farmer who donated about 20,000 pounds of potatoes and watermelons to the food bank is Wayde Kirschenman, who runs Kirschenman Enterprises, Inc. in Arvin-Edison. “We’d given to the food bank before,” he said, “but with Maureen coming on board, it accelerated. “The fact that the food bank could come pick up the potatoes and watermelons was a huge help to us,” he continued. “I would say that’s the major reason why they get more donations, because there’s someone to come pick them up. We’re farmers. We’re really not a trucking business.” White said the food bank, in turn, provides donations of produce and bread free to its partnering pantries and distribution sites. To make a bulk donation of produce to the CAPK Food Bank, please contact food sourcer Maureen Andrew at 661398-4520 or mandrew@capk.org. Louis Medina works as an administrative analyst for Community Action Partnership of Kern.

Februar y / March 2015

KERN BUSINESS JOURNAL

Business owners, entrepreneurs: Protect yourselves first By Chris Hamilton

Protecting Your Investments in 2015 Kern County is filled with hardworking, enterprising business owners who build and produce goods used throughout the world. As you settle in to 2015, it is an excellent time to make sure you have taken prudent steps to insulate your personal wealth from ongoing business activities and to establish an advanced estate plan that that considers and includes those assets to ensure they are protected for your benefit and the benefit of your heirs. General Potential for Liability Most business owners plan for success, but the savvy business owner also needs to take some basic steps to prepare for liability that can result from your business and investment ventures. That’s because, whether from creditors or the negligence of another, the unfortunate reality is that operating a business creates the opportunity for liability. In fact, even with more passive investments, such as the rental of real property, there is the potential that through no fault of your own, the injury to another could subject you to liability and have a dramatic impact on your personal wealth. Fortunately, you can take steps to insulate your personal assets and wealth from the liability of your business. One basic step you have hopefully already taken is to obtain insurance for your business operations with policy limits sufficient to cover you against potential personal injury claims; however,

in order to effectively insulate your other assets from the operation of that business or investment, you should operate your business through some sort of limited liability entity, such as a corporation, limited liability company or limited partnership. When you operate your business through one of these entities properly, even claims made against your business in excess of your insurance policies will only be claims against your business, not you individually. Further, to the extent you are able to finance your business activities solely through your business entity, the debts of the business will remain debts of the business and not your personal debts. Your choice of entity will be dependent upon a number of different variables relating to your business; thus, it is critical to find professionals who understand the distinctions between those entities to ensure the form chosen fits your future goals and needs for the business. Coordinate Your Business and Estate Plan Whether or not you have already formed this entity or intend to, it is imperative to coordinate your business goals with an advanced estate plan. For example, consider whether or not you have a family business you want to pass to your heirs, or do you instead need to create a mechanism and the means to allow your business partners to purchase your business interest at your death or retirement? The sooner you consider these issues, the sooner you are able to ensure that your business entity and your advanced estate plan will achieve your goals, as both may need to be changed to achieve those goals.

27 Typically, an advanced estate plan includes the following: • A revocable living trust, which is generally the conduit providing for the management of assets it holds, during your life and after. • Powers of attorney for property and for health care, which identify the important decision-makers to make decisions on your behalf when you cannot. • A pour-over will that ensures any property not previously transferred to your trust will be managed in accordance with your trust. • A proper advanced estate plan also looks at your business and investment assets and goals and includes the agreements and paperwork necessary to allow you to achieve those goals both during your lifetime, even during incapacity, and upon your death. The key matters that should be addressed are: • Identifying and empowering key trusted persons to manage your business assets and personal assets in accordance with an enforceable plan. • Identifying clear dispositions of your assets, both business-related and personal, if necessary, providing you with an exit strategy for your retirement or death that will bring you (or your family) the maximum return for your efforts. • Reducing your overall tax liability from income, gift and estate taxes. • Limiting the likelihood of legal controversies, all to the benefit of you and your heirs. Therefore, in 2015, my call to action to our local business owners and entrepreneurs is to take relatively simple steps to insulate your personal assets from your business activity, and to also take time to make sure your business plan and goals coordinate with your advanced estate plan. Chris Hamilton is an attorney with the Law offices of Young Woolridge, specializing in complex tax matters and estate planning.

KERN BUSINESS JOURNAL

Februar y / March 2015

Money Management

Companies begin offering financial wellness programs By Steven Van Metre

mployers have long recognized the benefits of maintaining and recruiting a healthy, productive workforce through wellness programs that provide physical and mental support. But as workers’ concerns mount over their lack of savings to meet everyday needs and to prepare for retirement, many companies are launching financial wellness programs as well. Towers Watson, a global job placement company, recently surveyed its business clients, and researchers reported that three in four large- and mid-sized employers said insufficient personal savings is a top concern for Steven Van Metre their workforce. A survey presented by the Society for Human Resources Management revealed that money issues are having a negative impact on productivity and contributed to such problems as absenteeism, stress and the inability to focus. Consider my financial planning client, a supervisor at a local Bakersfield business, who recently came into my office complaining about a subordinate he overheard wasting an entire afternoon at work trying to convince his bank that he had not exceeded his credit card’s limit. The 50-something subordinate and his wife are the parents of two college-bound teenagers. The couple has not saved for either of their children’s educations nor their retirements. They are such impulse spenders that they have trouble paying their

day-to-day bills. To say they are stressing is putting it mildly. The subordinate is so distracted that my client fears he may soon have to discipline the worker because the entire work unit is suffering. The primary benefit to a company that establishes a financial wellness program is an improved bottom line. An employee who is not consumed by money problems will be able to focus on company goals and be more productive. But there are other associated benefits: • Participation is likely to increase in company retirement plans, such as 401(k) plans. Plan administrators estimate that 15 percent of 401(k) participants are “active,” or have their own financial planners and take a hands-on approach to how their money is invested. About 85 percent are uninformed, lack advisers and only half-heartedly participate. If more workers understood their company’s retirement plans and how to direct their money, it is reasonable to assume more would participate with greater amounts invested. • Offering a financial wellness program is clearly an enhanced benefit that can help in the recruitment of new employees and retention of others.

The most ideal program would offer workers unlimited one-on-one counseling sessions with qualified financial planners. But a company many not be able to afford this type of program for all of its workers. There are many other options for setting up financial wellness programs. The administrator of a company’s 401(k) program, for example, may provide free, or at-a-cost occasional personal or group counseling and educational sessions. A local financial planner also may have a program that would fit into the workforce. However it is structured, the financial wellness program should educate workers on managing investments in the company’s retirement plan, as well as beyond the plan. The emphasis should be on the whole financial picture. Educate workers on such financial concerns as budgeting, debt, estate planning and taxes. I have found with the retirement planning classes I teach at Bakersfield College’s Levan Institute for Lifelong Learning that it is most productive to involve a worker’s spouse in the educational process. Create a financial wellness program around the entire family, if a family will be impacted. 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.

FOR SALE 2407 Chester Avenue

Single-tenant retail building at the heavily-trafficked and signalized intersection of Chester Avenue and 24th Street in Bakersfield, CA. The property features a brick and wood frame building with a footprint 13,054 square foot and an additional 8,500 square feet of interior second floor mezzanine. This high-visibility intersection is a block away from San Joaquin Community Hospital, and less than a mile away from other downtown amenities. The property is zoned C-2 Regional Commercial allowing for a variety of commercial and retail uses. On-street parking is available, and the property can additionally be accessed by an alleyway.

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 The Ice House | 3401 Chester Ave.

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’s O and N are designed for general office or retail uses, with private office bullpen areas. Located west of the signalized intersection of Chester Avenue and 34th Street.

Februar y / March 2015

KERN BUSINESS JOURNAL

Childcare program stimulates economy by freeing up migrant parents to work in agriculture By Louis Medina

ingle mom Maria del Rosario Zavala carries a heavy burden: She is raising four children ages 17, 15, 5 and 3, while working as a migrant almond and grape packer in Bakersfield and Fresno, and dealing with reduced work hours and income due to the drought. Helping to lighten her load, however, is Community Action Partnership of Kern’s Migrant Childcare Alternative Payment (MCAP) Program, which CAPK helped pioneer and solidly establish in California in 2000. MCAP provides affordable and flexible services to migrant families through a network of 200 childcare providers in six Central Valley counties: Kern, Tulare, Kings, Fresno, Madera and Merced. Zavala’s two youngest daughters, Diana, 3, and Alexandra, 5, have been enrolled in the program since September. “I like how the schedule adapts to my needs,” said Zavala, who can drop off her little ones at 5:30 a.m. and pick them up around 3:30 p.m. It was actually her childcare provider — a former client of the program — who told her about MCAP, Zavala said. Because income and family size determine how much parents have to pay for services, Alexandra and Diana’s participation in the program is free, said Program Manager Manuel Barrera. “The program really does a lot to help the local economy,” said Romala Ramkissoon, Barrera’s boss and CAPK’s director of Family, Youth and Community Services. “It frees up migrant parents so they can work in agriculture.” To qualify for MCAP, heads of household must show that they are working or looking for work; move at least once every 12 months or are intending to move because of work purposes (e.g, they are following a harvest); earn at least 50 percent of their total gross income in a migratory industry; and make less than 75 percent of the state median income. Parents are able to choose the type of care that works best for the family, such as licensed childcare in centers or family childcare homes and license-exempt childcare with a relative or designated person who has passed the proper background check. As an added benefit, if the family migrates within California, even outside of the six-county area primarily served, they continue to be eligible for MCAP services. The cutoff age for participants is one day short of the child’s 13th birthday, Barrera said.

PHOTO COURTESY OF LOUIS MEDINA/CAPK

Community Action Partnership of Kern’s Migrant Childcare Alternative Payment Program family services specialist Violeta Swanson, left, poses with Maria del Rosario Zavala, right, and her 3-year-old daughter, Diana Zavala, who are clients on her caseload.

The program employs 14 staff, five of whom work in the five other valley counties besides Kern. All are fully bilingual in English and Spanish. “They have to be in order to work with this population,” Ramkissoon said. Some staffers work primarily with families, enrolling them in the program and ensuring their service needs are met. Others work primarily with the childcare providers. Ramkissoon said 1,324 children from 555 families received services in 2013. MCAP is funded through a $5.5 million contract with the state’s Department of Education, with part of the funding being pass-through federal dollars. To find out more about CAPK’s Migrant Childcare Alternative Payment Program, please call toll free 1-800-259-8866, or visit capk.org. Louis Medina works as an administrative analyst for Community Action Partnership of Kern.

KERN BUSINESS JOURNAL

Februar y / March 2015

Kern emerging as West Coast economic powerhouse By Richard Chapman

UNEMPLOYMENT RATE

NUMBER OF EMPLOYED

n early January, three former California governors, George Deukmejian, Pete Wilson and Gray Davis, penned a “call to action” op-ed to The LA Times titled, “How to Fix California’s economy: Regulation, Legislation and Education.” The piece was directed at the state’s leaders and stressed that California’s “wounded economy needed serious intervention from policymakers, businesses and educators equally committed to restoring jobs and ending poverty,” and it lamented the fact that family wage jobs were being “replaced by those that don’t pay well and require only limited education or experience.” As the home to the fastest-

Since 2008, approximately $17 billion has been invested in Blue line represents unemployment rate; green bars represent number of employed. solar and wind points out that California takes rather than years in other Califordevelopments, longer than 45 other states, on avernia counties – at locations such to get a construction project as the Tejon Ranch Commerce resulting in 4,500 age, approved. According to Caltrans, Center and Paramount Logistics it also takes an average of 17 years Park. construction to complete a major transportation Top 10 site selection factors project. jobs and 1,100 • Availability of skilled labor State leaders should pay heed to • Highway accessibility permanent jobs. the Kern County Planning Departgrowing economy in the U.S. since 2001, I would argue that key decision-makers need look no further than Kern County for business development “best practices.” Recent Kern County accolades include: • No. 1 fastest-growing workforce • No. 2 millennial job growth • No. 4 for STEM jobs • No. 9 for engineering jobs Leading economic development publication “Area Development” recognizes Kern as a “California county that’s making (good) news.” The best investment a business can make The op-ed criticizes the state’s onerous regulatory processes and

ment’s pioneering work with solar and wind projects. In 2011, the Kern County Board of Supervisors adopted an aggressive renewable energy goal of having 10,000 MW in production by 2015. At the end of 2013, Kern County had permitted over 8,200 MW of renewable energy projects with another 3,000 MW in the pipeline. Since 2008, approximately $17 billion has been invested in solar and wind developments, resulting in 4,500 construction jobs and 1,100 permanent jobs. Kern County is currently home to the world’s largest wind farm (Alta Wind Center). In addition, the Mid-American Solar Star projects, co-located in Kern and Los Angeles counties, will be the world’s largest solar farm. Furthermore, Kern County’s large-scale distribution center projects are permitted in months –

• Labor costs • Occupancy/construction costs • Advanced ICT (information and communications technology) infrastructure and talent • Available buildings • Corporate tax rate • State & local incentives • Low union profile • Energy availability & costs

Land of opportunity The op-ed also decries California’s shrinking middle class and lack of suitable career opportunities. According to a recent Harvard University study, Kern County ranked No. 1 in the U.S. in terms of the “odds of reaching top fifth income level when starting from the bottom fifth.” Indeed, light blue-collar opportunities in energy, logistics

SOURCE: CALIFORNIA EMPLOYMENT DEVELOPMENT DEPARTMENT

CALIFORNIAN FILE PHOTO

Kern County is home to the world’s largest wind farm, the Alta Wind Center. Since 2008, approximately $17 billion has been invested in solar and wind developments, resulting in local jobs.

and value-added agriculture are allowing residents to achieve the American dream of home ownership. Kern continues to emerge as a West Coast economic powerhouse, one that our state’s leader should seek to emulate as they attempt to reclaim California’s former status as a business-friendly location.

In terms of Kern County’s employment picture, the accompanying chart illustrates the drop in our region’s unemployment rate as the number of people employed increased over the past five years. Richard Chapman is president and CEO of Kern Economic Development Corporation.

KERN BUSINESS JOURNAL

Februar y / March 2015

Wellness

Leading by example: A culture of mind, body and spirit

PHOTO COURTESY OF KAISER PERMANENTE

Kaiser Permanente Stockdale employees have fun while stretching.

By Kevin Truelson

t Kaiser Permanente, we encourage our employees to live a well-balanced life and thrive. We inspire our employees to find activities, exercises and events they enjoy, and we encourage them to stick with those activities so that they can motivate others to find what they enjoy. We also know that wellness is much more than just physical, so we have designed our programs to include emotional, social, community and career wellbeing. Fortunately, at Kaiser Permanente, we have the support of our executive leadership team. With their support, we have been able to create a cohesive wellness committee, which includes our employees, physicians and management personnel. To help our employees be successful, we have mapped out walking and running routes at each of our facilities, and we have implemented a healthy ordering policy with sample menus for catered meetings and meals. Kaiser Permanente offers healthy lifestyle programs accessible to all of our employees, which include subjects such as reducing stress, managing depression, managing pain, improving sleep and weight management, just to name a few. In addition, Kaiser Permanente provides wellness coaching by telephone. In addition to telephone support, we also offer our employees the option of online programs such as KP Walk (you can now download our app on the App Store) and Health for the Holidays, which includes a “Maintain Don’t Gain” program. Other programs we offer include an Employee Assistance Program, a 21-day Whole Foods

Plant-Based Challenge, Instant Recess (a five- to 10-minute spontaneous stretch break to get you up and moving during the day) and, new to 2015, a Thrive! Walking & Running Team. Kaiser Permanente is a family friendly workplace that also offers monthly wellness events that are open to all Kaiser Permanente employees, physicians and their families. By including the families of our employees and physicians, it reinforces the need to be good role models, helps children learn the value of regular exercise, builds a foundation for lifelong healthy habits and it’s fun! The Kaiser Permanente Health Education department offers classes for employees and physicians as well as our 102,000 members. Some examples include: meditation, advanced care planning, chair exercise, insomnia, yoga, smoking cessation, Zumba, healthy living, diabetes and living well with chronic conditions. We encourage all of our members to remember that wellness is not an overnight transformation, but rather small lifestyle changes over a period of time. We encourage progress, not perfection. Begin with a plan and do your best to stick to that plan. Surround yourself with like-minded people and participate in more of the activities that you truly enjoy. Whether it is for our employees or the general public, simply put, Kaiser Permanente stands for total health – mind, body and spirit. Good health means more than just not being sick. It means leading your life with an overall sense of wellness and taking charge of your health so you feel empowered and protected throughout every stage. Kevin Truelson is a Kaiser Permanente Wellness Champion.

KERN BUSINESS JOURNAL

Februar y / March 2015

More consumers resolve to ‘go organic’ By Jose M. Granados

Table 1:

ach year, exercising and eating better are among the top New Year’s resolutions. By eating better, people usually mean eating more fruits and vegetables, preferably those produced without pesticides, chemical fertilizers and, of course, not genetically modified. They are looking for foods produced using environment- and animalfriendly farming methods; in other words, organic foods. Not surprisingly, this market segment continues to grow year after year, especially as consumers get a better understanding of the impact food has on health. At the same time, study after study finds that eating organic foods has various health benefits. According to the Organic Trade Association (OTA), production and demand for organic food has grown continuously over the past decade. The growth trend goes back more than 10 years, even before the USDA established national standards for organic food production and processing. Indeed, the latest sales numbers and projections are very healthy for the organic product market. In 2012, sales of organic products totaled more than $31 billion in the United States. In 2013, sales were up 11 percent, adding another 4 billion to total sales, which now stands between $35 and $42 billion. Additionally, there are strong indications that this growth trend will continue for the near future, especially since organic products have become more accessible to consumers. In addition to the traditional farmers’ markets and specialty stores, most mainstream grocery stores now offer some organic products. Despite government and industry standards, the term “organic” can mean different things to different people. However, one thing is clear: Consumers are willing to pay a higher price for organic products. According to the USDA, on average, the price of organically grown carrots is three to four times higher than conventionally grown carrots. The same is true for most organic products in the market. Furthermore, even though some experts debate the nutritional value and health benefits of organic foods versus conventionally produced foods, some consumers trust organic products to the point of paying a higher price for them and

Buy organic food

Source: CivicScience/www.bakersﬁeld.com Network (2014)

Women

59%

Age 18-34

38%

Age 35-54

33%

Age 55 and older

29%

Household income less than $40,000

44%

Household income $40,000 - $74,999

26%

Household income $75,000 or more

30%

High school

32%

Some college

36%

College graduate

17%

Current health description

Source: CivicScience/www.bakersﬁeld.com Network (2014)

buy them on a regular basis. Most consumers feel somewhat confident that they have a good understanding about organic foods and its benefits. For example, when consumers are asked how informed they are about genetically modified foods, more than half say they are “somewhat or well-informed” – see Graph 1. Seventy to 80 percent of consumers have purchased organic foods at some point; however, only 15 to 20 percent of consumers are regular buyers. Price, culture, education levels and access to organic products all may be barriers. Graph 2 represents consumers’ shopping behaviors related to organic food. In Kern County, more than 96,000 adults buy organic products on a regular basis. This number is up 16 percent from 2010, outpacing

population growth three times over. Given the demographic makeup of local organic product consumers, this upward trend will continue for years to come. Local organic product consumers are most likely to be young, in good health, female, educated and have disposable income – see Table 1. These consumers spend $200 or more on groceries on a weekly basis. No doubt, the future for local and national organic market is bright. Jose M. Granados works for The Bakersfield Californian in the Market Research Department. This market analysis is based upon data from Scarborough Research (2014 R2), CivicScience/www.bakersfield. com Network (2014) and the Organic Trade Association.

Excellent

12%

Very good

39%

Good

36%

Fair

12%

Poor

Reasons bought medications in the past 12 months Allergies

50%

Arthritis

13%

Cholesterol

15%

Diabetes

12%

Digestive disorder (acid reflux, ulcers)

22%

SOURCE: SCARBOROUGH RESEARCH (2014 R2)

Februar y / March 2015

KERN BUSINESS JOURNAL

Small Business Development Center

Robo-Doc to bring hundreds of jobs to Ridgecrest By Kelly Bearden

ertexa Health Care Technology, a Delaware company that proposes to develop and manufacture a telemedicine robot in the eastern Kern County city of Ridgecrest, is one of the Small Business Development Center’s highest profile and complex clients. The Small Business Development Center at California State University, Bakersfield is providing Pertexa assistance with strategic planning, marketing and sales distribution planning. SBDC consultant Jay Thompson has facilitated meetings between Pertexa officials and representatives of the U.S. Department of Agriculture. Contacts have been provided Kelly Bearden with medical schools in the Midwest to help advance the technology. Pertexa was formed in 2005 to address the growing need for healthcare software technology in the areas of revenue management, electronic healthcare records and business intelligence. The company now proposes to combine its software technology with robotics to address the demand for telemedicine. Telemedicine is one of the fastest-growing segments of health care. It is being driven by an aging population, in-

creased healthcare costs, advances in technology and telecommunications and a shortage of primary care physicians in the U.S. There are only an estimated 30 physicians per 100,000 people in the U.S. By comparison, the United Kingdom has 80 and Germany has 150. Most telemedicine systems today involve a cart that is pushed into consulting rooms and require time-consuming setup. What Robo-Doc Pertexa proposes to manufacture and distribute nationwide would be a remote-controlled robotic device, with a touch screen connecting the patient to a physician command center. It would facilitate providing a specialist’s care even in rural areas. This summer, Ridgecrest Economic Development Manager Gary Parsons notified Pertexa that it would receive an $875,000 industrial development grant to help the company develop and build its Robo-Doc in Ridgecrest and establish a technical-support call center in the city. In a proposal to city officials in May, Pertexa President Kishor Joshi explained that the Robo-Doc’s core manufacturing would take place in China, with assembly and software programming done in Ridgecrest. A prototype of the RoboDoc is expected to be completed during the first quarter of 2015. “The potential for Pertexa is amazing,” said Thompson. Assuming the company achieves just a 5 percent share of the telemedicine market, it “will equal $7 billion in revenue. Jobs by the dozen.”

Pertexa is working with local jobs agencies and Cerro Coso Community College to train a workforce to manufacture, distribute and provide technical support for the RoboDoc. Local hospitals and medical groups are assisting with development. Whether the client is an individual, a mom-and-pop operation or a startup company of the magnitude of Pertexa, the goal of the Small Business Development Center at CSUB is to tap local resources to help bring new companies and new jobs to Kern County. Pertexa’s Joshi explained that his project is expected to create at least 550 semi-skilled jobs in assembly, support, call center and administration in the next five years. Most jobs will pay between $15 and $25 per hour, with a few paying in the $40 to $150 range. 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 Small Business Development Center at Cal State Bakersfield.

Partners Scott Belden, David Blaine and Katy Raytis are client-oriented professionals committed to providing business owners and management with legal services that exceed their expectations in three core areas: cost, efficiency, and results. Business | Commercial | Employment Litigation Employment Counseling

www.beldenblaine.com 5100 California Ave., Ste 101, Bakersfield 93309 661.864.7826

KERN BUSINESS JOURNAL

Februar y / March 2015

Legal Briefs

Avoiding environmental liability in real property transactions By Michael K. Foy

ern County’s industrial real estate market has rebounded from the trough of the late-2000's recession, and Kern County now has one of the lowest vacancy rates in the country for industrial facilities. The increased market activity has led to an upswing in real estate transactions involving both raw and finished industrial lands. For unsuspecting buyers, these transactions pose a risk of costly environmental liability. A federal statute known as the Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA) imposes liability on “potentially responsible parties” for the costs of removing hazardous substances from contaminated properties. The key word here is potential, the government can recover remediation costs from a party without proving that the party actually contributed to the contamination. Potentially responsible parties include the current owner of the contaminated property, regardless of whether the current owner owned the property when the contamination occurred. Therefore, CERCLA is a major financial concern for anyone who plans to purchase real property, particularly real property with a history of industrial or agricultural use. Fortunately, CERCLA provides two ways for innocent purchasers to escape liability for contamination found on

their property. The “innocent landowner” defense requires the buyer to prove that the contamination existed before purchase, that the landowner conducted “all appropriate inquiries” into the property’s previous use, and that there was no reason to know of the contamination. A similar defense known as the “bona fide prospective purchaser” defense enables a purchaser to acquire property with knowledge that the property is contaminated. Both defenses require the purchaser to perform all appropriate inquiries prior to the purchase. After acquiring the contaminated property, the landowner must take steps to prevent additional contamination and cooperate with any government response to the contamination. Complying with the all-appropriate inquiries standard means, “evaluating a property for potential environmental contamination and assessing potential liability for any contamination present at the property.” Rather than create its own standard, the Environmental Protection Agency issued a rule stating that a purchaser satisfies the requirement if it complies with ASTM E1527, an assessment developed by an international organization that develops technical standards. The E1527 standard requires the purchaser to prepare a “Phase I Report.” A Phase I Report entails investigating the historic and present uses of the site, and analyzing whether current operations on the property comply with environmental

permitting requirements. Completing the investigation and analysis requires, among other things: • Visually inspecting the site to check for indications of contamination, such as spill residue; • Evaluating the uses of neighboring properties to determine whether contamination could have spread across property lines; • Interviewing individuals with knowledge of the property’s prior uses; • Searching the files of public agencies to determine whether there are historic water quality or soil contamination issues; and • Examining U.S. Geological Survey maps to determine drainage patterns and topographical features. These are highly technical functions that require the purchaser to hire an environmental consultant with specialized education and experience. The purchaser should also hire an environmental attorney to ensure that the purchase complies with the other requirements of the innocent landowner or bona fide prospective purchaser defenses. Remember, obtaining a Phase I Report is only one of several legal requirements for the innocent landowner or bona fide prospective purchaser defenses. Michael K. Foy is an attorney at Klein DeNatale Goldner in Bakersfield.

County agency tackles quarantine stemming from citrus bug, prepares for new farmers market law By Glenn Fankhauser

he primary concerns of the Kern County Department of Agriculture and Measurement Standards are to protect and promote agricultural industries in Kern County while ensuring that the consumer is treated fairly. Every year, Kern County agriculture faces new challenges. Of course, the ongoing drought will continue to negatively impact the industry and general public. It will take many years to recover from these water problems. Recently, we have had three separate quarantines in the Bakersfield area related to findings of the Asian citrus psyllid. These findings necessitated treatments of citrus trees on many residential properties in the southern and southeastern areas of town. These findings will most likely increase as the insects continue to spread throughout the state. The psyllid is responsible for spreading citrus greening disease, which eventually leads to the death of any infected citrus tree. This disease has decimated the citrus industry in Florida. It is imperative that the public and the citrus industry work hand-in-hand to be as diligent as possible in making sure they don’t spread this pest here in California. Neither citrus trees nor citrus leaves/ branches should be transported within the state unless they are done so with the approval of agriculture officials. One of the benefits to living in this area of California is that we can

grow citrus in our yards and enjoy fresh citrus. If the Asian citrus psyllid and citrus greening disease become established in the state, not only will there be no commercial citrus, but there will also not be any citrus in your backyard. It is hard to imagine California without citrus. Another area of focus for our department in the coming year will be in certified farmers markets. Assembly Bill 1871, which was recently signed by the governor, has gone into effect as of Jan. 1. The primary purpose of the bill is to protect the consumer from many types of fraud associated with unscrupulous individuals who sell products at farmers markets that are not of their own production. Among many of the changes are that farm names and areas of production must be conspicuous, as well as a statement that the products are personally grown by the sellers. Also, fresh fruits, nuts, vegetables and flowers can only be sold in a certified farmers market by the certified producer who grew the items. No reselling of fresh produce can take place. In this way, the buyer can be assured that they are purchasing directly from the grower. We plan to increase our presence at all of the Kern County certified farmers markets to ensure that the new regulations are being followed. Glenn Fankhauser is the assistant director at the Kern County Department of Agriculture/Measurement Standards.

Februar y / March 2015

KERN BUSINESS JOURNAL

Years of Community Action!

Building owners, beware By John Pryor

ou own farm buildings — for storage, processing or for any other farm or non-farm use. Each is covered by insurance. Moreover, you’ve invested in a fire suppression (sprinkler) system. When a disaster occurs, what can possibly go wrong? Here is a series John Pryor of problems stated as succinctly as possible – plus solutions to review with your insurance broker. Agreed amount endorsement Your building is insured for $1,000,000. You sustain a $500,000 loss. You (like many of us) forgot that — for a lower rate per $1,000 — you guaranteed your amount of insurance is 100 percent of its replacement value. Its value is actually $2,000,000. Because you have only 50 percent of the amount required, the carrier pays you only 50 percent of your loss. A shortage of $250,000! Solution: Add the “Agreed Amount” endorsement – once you and your carrier agree your amount of insurance is indeed adequate. Rental income coverage Your building is leased to a really good tenant. A clause in your lease says, “...if the premises are damaged by fire or other unintentional cause and rendered untenantable, this lease shall terminate as of the date of the event. Rent shall be refunded pro-rata as of the date of the loss” – or words to that effect. Suddenly your rental income has vanished! Solution: Add “Rental Income” coverage to the policy otherwise covering your building. Ask your broker to use an amount of insurance that represents at least 12 months of rental income. Ordinance or law coverage You’ve done everything recommended above for your 20-year-old building. Yet changes have occurred in the building code since it was new. Your loss is covered as your building stood before the loss occurred.

Any costs incurred to “bring your building up to code” are not covered. Such costs are significant. Solution: Ask your broker to add “Ordinance or Law” coverage. Because your building was damaged 50 percent or more of its value, you are required by law to demolish the undamaged portion of your building. Your insurance is intended to pay only the costs incurred to repair the damaged portion of your building – not any undamaged portion. Solution: Add “Ordinance or Law” endorsement, as in No. 2. Earthquake sprinkler leakage coverage Then the ‘really big one’ hits! Your building is fairly new. It’s reasonably earthquake resistant. However, prolonged shaking causes your building’s sprinkler system to discharge water throughout your building. Water damage is extensive. Solution: Ask your broker to provide you a proposal for “Earthquake Sprinkler Leakage” coverage. Difference in Conditions Of course, the elephant in the room is the risk of a major earthquake. By “major” they mean “intensity” – including duration of shaking. Earthquakes in our lifetimes have only involved shaking under 20 seconds. The nearby Fort Tejon event in 1857 – as well as San Francisco in 1906 – lasted about 120 seconds each! Seemingly an eternity! This intensity is what our scientific community is expecting and saying is well overdue. Solution: Chat with your insurance broker to see what is available and affordable. Ask about a special policy with the acronym “DIC” — Difference in Conditions. It typically covers what conventional policies do not, including earthquake and flood, at a lower premium. (If your building is in a flood zone, DIC coverage on your buildings and their contents should be considered with your broker.) Now you should sleep much better tonight! John Pryor is a risk management consultant and author of "Quality Risk Management Fieldbook."

Community Action Partnership of Kern is turning 50! Join us as a sponsor or attendee at our 2015 Humanitarian Awards Banquet.

Thursday, May 7, 2015 | 6 pm

Bakersfield Marriott at the Convention Center 801 Truxtun Ave., Bakersfield, CA

people and organizations that help us achieve life-changing Community Action through their volunteering, engagement and partnership.

Platinum $20,000

Gold $10,000

• Public Recognition as a Platinum Sponsor; display of corporate banner at banquet • Two-page spread, full-color ad in banquet program and exclusive logo placement on cover, and other event materials • Reserved seating for 16 guests • Online recognition on CAPK’s website and Facebook page

• Public Recognition as a Gold Sponsor • One-page, full-color ad in banquet program; prominent logo placement on event materials • Reserved seating for 16 guests • Online recognition on CAPK’s website and Facebook page

Silver $5,000

Bronze $2,500

• Half-page, full-color ad in banquet program; logo placement on event materials • Reserved seating for 8 guests • Online recognition on CAPK’s website and Facebook page

• Quarter-page, full-color ad in banquet program; logo placement on event materials • Reserved seating for 8 guests • Online recognition on CAPK’s website and Facebook page

Table Sponsor $1,000 per table • Reserved seating for 8 guests • Table sponsor signage • 1/8-page ad in banquet program

Single Event Tickets $80 per person

please contact: Marco Paredes (661) 379-8195 maparedes@capk.org or visit:

www.capk.org

KERN BUSINESS JOURNAL

Februar y / March 2015

Tech Talking

Personal, commercial drone technology By David A. Milazzo

oliday 2014 could easily be hailed as the “season of the drone,” as children (and likely many adults) unwrapped nearly a million of these minute aerial vehicles. Personal unmanned aircraft systems (UAS or drones) are small, remote-controlled aircraft commonly outfitted with cameras to capture images and video from hundreds of feet in the air. And though these gadgets offer a litany of opportunities for fun and profit, there are plenty of “gotchas” waiting in the wings. And the jury is still out on how FAA regulations David A. Milazzo will affect commercial use. Investigation into the personal drone market uncovers toys and professional gear ranging from $70 to $7,000. Very popular are the quad- and octocopter configurations that marry four or eight rotors together in a plastic housing. On the bottom of these ultra-lightweight vehicles you’ll either find a built-in camera or a mounting bracket to install your own camera. The GoPro Hero is a popular adventure camera well-suited for hitching to a drone. And once you’ve attached a high-resolution camera to a remote-controlled mini-helicopter that can hover at perfect X,Y, Z coordinates, the applications to industry are vast. My first brush with enterprise adoption came in late 2013 when a client showed off a large petroleum site study captured entirely via drone cameras. The prospect was fascinating: all the height, scope and resolution of a standard helicopter/pho-

tographer combo without the costly helicopter and photographer! (I don’t know any helicopter pilots, but apologies to my photographer friends.) Ag readers may take particular interest in UAS technologies tailored for their industry. Precision Hawk (precisionhawk.com) is one platform that includes the capture of both visible and non-visible frequencies. Their fixed-wing drone includes a myriad of specialized on-board sensors including thermal infrared, multispectral, hyperspectral and LiDAR. All told, these sensors can perform amazing feats across large swaths of land: plant and livestock counting, plant health measurement, water quality assessment, vegetation index calculation, moisture status and even early stress detection. But by no means are drones a panacea; privacy and safety are chief concerns. From next-door neighbors turning into accidental (or not-so-accidental) Peeping Toms to full-fledged big brother fears, the idea that a silent, camera-laden aircraft could sweep down from the clouds to hover at your window spooks even the most fervent technology junkie. And while many individuals are capable of safely piloting their drones and landing them responsibly, there is no shortage of folks crashing them into buildings, highways and unsuspecting bystanders. (For a sense of how fast you can trash $2,000 worth of gear, search YouTube for “drone crash.”) The FAA sees the most potential for disaster when drones wander into national airspace. Presently, the administration applies separate classifications for personal versus commercial drone usage. Recreational use below 400 feet is covered under the same regulations as model aircraft; however, commercial operation requires a “Special Airworthiness Certificate” before being issued your Civil UAS permit. As of 2015, only

PHOTO COURTESY OF DAVID A. MILAZZO

Drones are small, remote-controlled aircraft commonly outfitted with cameras to capture images and video from hundreds of feet in the air, offering a litany of opportunities for fun and profit, but the jury is still out on how FAA regulations will affect commercial use.

seven of these permits have been granted in the U.S. – not a deeply reassuring number. The FAA vowed to release a set of updated drone policies, but so far the rules remain squidgy. Check out knowbeforeyoufly.org for the most current information. On the whole, drone technology promises a new horizon of potential for how we may observe and quantify our world. But the absence of clear legal policy muddies the water. With any luck, the 2015 holidays will go down as the “season of the drone regulations.” 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.

In search of ag tourism opportunities By David Lyman

n 2010, I was on a seven-day bus tour called “The Islands of New England.” (This is a short article, so there is no room to explain how a bus could get us to islands.) One memorable stop was a visit to a Cape Cod cranberry bog. After learning how cranberries were grown, harvested and sent to market, there were only two other things to do at that David Lyman stop: either chat up the cranberry farmer or walk a few steps to visit the thriving little shop in a converted barn run by the cranberry farmer’s wife. She figured out that tourists by the busload had money to spend, and they needed to buy small things to take back home as mementos. Like others on the bus, I fell prey to her vision. My mother still comments on the cranberry soap I brought back. That shop was not on a main road and was not visible to passersby. It appeared to be open only when the next tour bus rolled down the road and onto the farm. Fast forward to today. I am now manager

PHOTO COURTESY OF BAKERSFIELD CONVENTION AND VISITORS BUREAU

Picking fruit at Murray Farms is an activity the entire family can enjoy.

of the Bakersfield Convention and Visitors Bureau. Our office regularly gets visitors and inquiries from all over the world. Notable portions of those are from bus tour operators, individuals and small groups, and foreign agriculture groups wanting to visit local farms. Kern County ranks No. 2 nationwide in the value of crop commodities. Go into any market’s produce section and Kern crops will

be on display. I often tell visitors, “Something you eat today will come from here.” But when these visitors want to actually see where their food comes from, with few exceptions, our options are limited. I am not sure why. Visitors have money to spend. These visitors have told us on the phone, via email, letter and in person that they want to see agriculture up close. They are not satisfied with

driving past a field or orchard of undetermined origin wondering what they are seeing. Murray Family Farms has hit upon a winning formula to capture those visitor dollars by luring folks down on the farm. California Fruit Depot is a small, fun place that also sells local produce to visitors and locals alike. But in the veritable cornucopia that is Kern agriculture, are there others? If so, the Bakersfield Convention and Visitors Bureau wants to know. Bus tours routinely drive through Bakersfield, and many spend the night here before going to their next day’s stop. In the past few months, two tours have made Bakersfield a stop for at least half a day. For those others that asked specifically for a tour of an agricultural nature, we had to wave them on by. Bakersfield has the visitors. They come from all over the country and from numerous parts of the world. Many are interested in seeing agriculture up close. If you know of an agriculture-related tour stop, please let me know: 661-852-7282, or dlyman@visitbakersfield.com. Help me show visitors where they can find the Kern County equivalent of cranberry soap. David Lyman is manager of the Bakersfield Convention and Visitors Bureau.

Februar y / March 2015

KERN BUSINESS JOURNAL

Human Resources

‘Telepressure’ poses problems for workers, bosses By Holly Culhane

his workplace malady has been around for many years. But it has grown so big that it has acquired its own name – telepressure. Long recognized as a potential legal problem for employers, telepressure is now believed to be making employees sick and cutting productivity. In a report recently released in the “Journal of Occupational Health Psychology,” two researchers at the Northern Holly Culhane Illinois University coined the term to describe a worker’s urge to respond immediately to emails, particularly from colleagues and bosses. A growing number of workers “have trouble cognitively letting it go,” said Larissa K. Barber, an assistant professor of psychology and lead researcher on the study that collected data from 303 individuals who said they quickly respond to emails during weekdays, weekends, vacation days and even sick days. The researchers linked obsessive email responding to burnout. Workers with high levels of telepressure lacked energy, felt fatigued, were unfocused and reported having poor sleep quality, health problems and higher rates of absenteeism. Barber concluded that the demand to be constantly “connected” could hurt employees’ productivity. A 2008 Pew Internet and American Life Project study noted that workers now are more likely to check their email outside of normal working hours. Fifty percent of employed email users said they checked their work-related email on the weekends. In subsequent surveys, the number has climbed to over 80 percent. Technological advances have created a 24/7 workforce in which employees are “perpetually” working. When their shifts end, many workers remain at their bosses’ beck and call, responding to emails and fielding cell phone calls, no matter where they are or what time of day. The lines between working and not working have blurred, or in some cases, disappeared altogether. Barber blames workplace culture for increasing telepressure, noting workers are “getting implicit and explicit cues – ‘this is what you should be doing to be a good employee.’” In addition to the physical and mental toll this is taking on workers, there are legal and financial risks to companies. In recent years, employees have filed lawsuits demanding to be paid for this after-hour work. Some

companies have responded by setting strict limits on company email and cell phone use. One company actually turned off employees’ access to its email system after hours to give workers “real” time off. With controversy growing over “wage theft,” which is a general category of complaints alleging employees are not being paid for the hours worked, telepressure is likely to receive increased scrutiny from legislators and the courts. Prudent employers should take steps now to address telepressure. • Develop policies that set ground rules, including reasonable expectations for email response time. For example, is a 48-hour response during business hours required for all company emails? Whatever the ground rules are, they should be stated and understood by both supervisors and employees. • Assure non-exempt employees are paid properly for the time they check email outside of regular work hours. If such time (which often results in overtime) is not approved by the employer, ensure that non-exempt employees understand the policy. Communicate this information to them in writing and maintain a signed copy in their personnel file. • Specific emails should include instructions for response. For example: Please let me know by next Monday. • Flag “urgent” or demand an “ASAP response” only when a situation is truly urgent or resolution of an issue cannot be delayed. • Encourage workers to “disconnect.” Let them know that they will not be judged by their ability and willingness to respond immediately to every email from the boss. Barber also noted that workers can take steps to reduce their telepressure: • Turn off both the sound and visual notifications on mobile devices. Stop jumping at every ping. • Set specific times of day when you check emails. If you check on weekends and after-hours, limit the checking to a specific time. Let others know when those times are. • If possible, set a “no interruption time” during the workday to allow yourself to concentrate on harder tasks. The electronic technology we utilize today is most certainly a benefit to the efficiency of our organizations, but we must be careful it doesn’t rule our lives. Holly Culhane is president of the Bakersfield-based human resources consulting firm P.A.S. Associates and P.A.S. Investigations. She can be contacted through her website PASassociates.com and through the PAS Facebook page.

Stuff the Bus Food Drive

Friday, March 20, from 4:30am to 6:00pm at the Sears Parking Lot

Sponsorship Opportunities Gold - $2,500

• Featured in promotional TV commercials, plus digital mobile and Web page ads* • Logo on event t-shirts • Logo on bus wrap • Event t-shirts • Logo on event Web page • Promotional materials at event • Radio mentions during event • Booth opportunities available at the event

Silver - $1,000

• Logo on event Web page • Logo on event t-shirts • Promotional materials at event • Radio mentions during event

Bronze - $500

• Logo on event Web page • Radio mentions during event *To be determined

Your organization can also help by hosting a food drive. It’s easy and the CAPK Food Bank can help.

For sponsorship opportunities please contact:

Albert Garza GET Bus agarza@getbus.org (661) 869-6341

Ken White CAPK Food Bank kwhite@capk.org (661) 398-4520

THE 6TH ANNUAL

IS COMING to RABOBANK THEATER SATURDAY MARCH 21, 2015 10AM-3PM presented by

BE AN EXHIBITOR! SPONSORSHIPS & BOOTHS NOW AVAILABLE

Powerful Ad Campaign to Attract Qualified Buyers

The Bakersfield Californian will launch a massive advertising campaign including newspaper, magazine, TV, radio, streaming video, electronic billboards and Facebook. For sponsorship opportunities and booth reservations please contact your sales executive or

Shauna Rockwell 661.392.5716

srockwell@bakersfield.com

www.healthybakersfield.com