Kern Business Journal June/July 2016

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KERN Journal Business

Vol. 5, No. 3

A MEMBER O F T HE

Cover story

TB C M E DIA FAM ILY

Skys the limit for this drone company

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June / July 2016

Energy and Technology Issue

Kern County represents the new – and improved – California By Richard Chapman

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resh off the heels of this year’s millennial-themed Kern County Economic Summit, it is becoming increasingly apparent that the community is well-positioned to attract and retain the high-value businesses and accompanying talent that will help propel the region forward. As the top U.S. metro for upward mobility and the No. 2 region for millennial job and population growth, the “next” generation’s workforce will have ample opportunities to achieve the American dream of home ownership and financial security – a dream that is fast becoming the exception rather than the rule in a majority of West Coast cities. Furthermore, Kern County performs exceedingly well, according to The Atlantic writer James Fallows’ “11 signs that a city will succeed” metrics. The following are some of Fallows’ indicators and examples of how Kern County measures up: Continued on page 12 Energy saving tips for businesses on Page 29.

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

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INSIDE

Rehabilitation technology advances in health care. Page 15

Improving homes, changing lives—see what’s new in the kitchen. Page 18


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KERN BUSINESS JOURNAL

June / July 2016


June / July 2016

KERN BUSINESS JOURNAL

Journal KERN Business

Editor’s Note

Showcasing Kern County business and industry June / July 2016 Vol. 5, No. 3 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

Kern County is ground zero for many impressive technological developments

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hen it comes to technological innovation, Kern County may not seem like the most likely place to foster it but in reality we’re ground zero for many impressive technological developments

in many sectors.

President/CEO Richard Beene Chief Marketing Officer Mike Skrocki Editor Louis Amestoy Assistant Managing Editor Mark Nessia Specialty Publications Coordinator

Laura Liera

Art Director Glenn Hammett Graphic Designer Holly Bikakis To submit a story kbj@bakersfield.com To advertise Mike Skrocki, Chief Marketing Officer mskrocki@bakersfield.com 661-395-7385 To subscribe 661-392-5777

This issue of the Kern Business Journal will demonstrate these developments across the pages, and we believe that readers will be impressed with the happenings here in Kern County. Here at TBC Media we’ve seen a rapid shift in technological change with our readers, viewers and users. More than half Louis Amestoy of all readers of bakersfield.com and our affiliated websites access our content via a mobile device. Just 18 months ago, it was still a world dominated by desktop users, but the rise of mobile has been breathtaking. I know that readers will be fascinated by the writings of David Milazzo and how gadgets can help improve energy efficiency. Stephen Shilling writes about how Clinica Sierra Vista is using electronic records to replace the reams of paper needed in the past to maintain patient files. These are just some of the changes we cover in this edition. Another area of interest, especially for us here at TBC Media, is the use of drone technology and Kelly Bearden shares how Monarch Inc. is using the technology to get ahead in an evolving field.

Business at-a-glance safe operating days without lost time injury. “GlassPoint has established a track record of delivering projects safely, on time and on budget in Kern County and around the world,” Adeoye said. “We look forward to building on that momentum as we expand operations in California.” – Kern Business Journal

CASEY CHRISTIE

Solar power and oil production come together Thursday in McKittrick, as GlassPoint and Berry Petroleum pull resources together to utilize the sun to create steam, allowing more petroleum out of the ground than it would otherwise. GlassPoint expands operations to Bakersfield GlassPoint Solar, the leading supplier of solar for the oil and gas industry, will open a new office in Bakersfield and appointed two oil industry veterans to accelerate project deployment in California. “Demand for GlassPoint’s technology is growing across the world, including here in California where we offer oil producers a significant cost advantage,” GlassPoint Senior Vice President of Project Development, North America, Sanjeev Kumar said in a release. “Large-scale solar oilfield projects in California are

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poised to generate millions of dollars in economic activity while creating local jobs and improving the environment.” Michelle McGarry joins GlassPoint as director of project development, Americas, where she will lead regional sales and commercial developments, and Olu Adeoye joins the Bakersfield office as the California program manager where he will oversee oilfield integration and execution of large-scale solar enhanced oil recovery projects. GlassPoint also operates a commercial pilot in McKittrick. The project recently surpassed 2,000

Aera announces new senior vice president of human resources Theresa Bush joined Aera Energy LLC as senior vice president of human resources on May 23. Bush brings more than 20 years of human resources leadership and experience, beginning her HR career as an administrator for the Thorpe Corporation in Houston, Texas, in 1994. Three years later, she joined Occidental of Elk Hills (now California Resources Corporation) where she served as the human director overseeing business support services and held several multiple management positions in multiple locations and divisions, including chemical plants in Texas, Delaware, Pennsylvania and Louisiana, as well as corporate office assignments and an international assignment in Qatar. Bush has lived in Bakersfield from 2008 to 2012 working as the human resources and services manager. – Kern Business Journal

HealthSouth Rehabilitation Hospital is using cutting-edge equipment to aid in the rehabilitation process like the SaeboFlex wrist splint.

It’s well known that the oil industry must use state-of-art technology to best utilize its resources to extract oil and gas from the deposits here. For decades, Kern County has been a leader in this development. The energy sector, however, has also demonstrated rapid growth in wind and solar. In all, we should be proud of the work being done here, and we hope you enjoy the important examples in this edition of the Kern Business Journal. – Louis Amestoy is the editor of the Kern Business Journal

Chamber roundup June and July events

Greater Bakersfield Chamber of Commerce June 16 – Bakersfield Young Professionals Arts and Culture Event; 6 to 9 p.m.; $15 per person at the door; Bakersfield Museum of Art, 1930 R St. June 17, 24 – Government Review Council, 7:30 to 8:30 a.m., Greater Bakersfield Chamber of Commerce, 1725 Eye St. June 21 – Labor Law and HR Forum, 7:30 a.m. check-in with program from 8 to 10 a.m.; $25 for members; $50 for nonmembers, Greater Bakersfield Chamber of Commerce, 1725 Eye St. June 22 – Leadership Bakersfield application process closes. June 23 – After Hours Mixer, 5:30 to 7:30 p.m.; $5 for members; $10 for nonmembers, Bakersfield Racquet Club, 1660 Pine St. July 4 – Chamber closed, Independence Day July 8, 15, 22, 29 – Government Review Council; 7:30 to 8:30 a.m., Greater Bakersfield Chamber of Commerce, 1725 Eye St. July 11 – Philanthropy on Tap, 5 to 6 p.m., Imbibe Wine and Spirits Merchant, 4140 Truxtun Ave. July 12 – State of the City Luncheon Forum, 11:30 a.m. check-in with program from noon to 1:30 p.m. $45 for members; $60 for nonmembers, $550 for table of 10, Bakersfield Marriott at the Convention Center, 801 Truxtun Ave. July 21 – BYP Pub Club, 5:30 to 7:30 p.m., $5 at the door, Padre Hotel Prospect Lounge, 1702 18th St. Aug. 1 – Philanthropy on Tap, 5 to 6 p.m., Imbibe Wine and Spirits Merchant, 4140 Truxtun Ave. For information, please contact the Greater Bakersfield Chamber of Commerce at 661-327-4421 or visit www.bakersfieldchamber.org.


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June / July 2016

Energy efficiency through gadgetry By David A. Milazzo

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recall a Disneyland visit in the late ’90s where they presented an exhibit demonstrating the “modern, connected home.” While the tech was bleeding edge, it was barely functional. However, fastforward to today and you’ll find working automation products breaking out of the lab and truly ready for primetime. A David A. Milazzo connected environment can tie multiple, disparate services together and simplify how they are triggered. From motion sensors to smartphone controls, my home and office integrate a half-dozen gadgets that bring efficiency to both life and my energy footprint. Lights are one of the common starting points in the realm of automation. In my home, I use WeMo (wemo.com) products to control lights from my iPhone or set timers that turn off and on particular lights based on schedules. In office environments, I find motion sensors to be paramount. It may not sound earth shattering, but the energy savings from keeping office, utility and conference room lights off while they’re not occupied can add up. And with LED bulbs that snap

Ring is a connected doorbell that includes a motion sensor, camera, microphone and speaker.

to attention quickly when someone enters the room, the motion-sensing approach is a perfect fit. At home, I use Nest (nest.com) to simplify temperature management. I control my thermostat via smartphone, set predetermined schedules or let Nest build a schedule based on my comings and goings. Like many readers, my home has central air; but in newer office environments, “duct­less” AC units can provide a better experience and are dramatically more energy efficient. A small, wall-mounted unit can deliver each office the ideal heating or cooling. Consider the weekend worker coming into the office on a Saturday. In a forced-air model, they might have to turn on the en-

tire third floor. Not only does this scenario burn a ton of juice to cool thousands of square feet, the poor guy slaving away may wait an hour to get to an ideal temp. But with a room-based unit, the worker’s space reaches optimal temperature quickly and efficiently without struggling to control the rest of the space as well. I’ll mention one more automation gadget I’ve found to be fairly remarkable. Ring (ring.com) is a connected doorbell mounted at your front door. It includes a traditional doorbell button along with a motion sensor, camera, microphone and speaker. Anytime Ring senses motion – or is pushed – my phone immediately connects me to the video feed of the doorbell. From here, I can simply watch the action

Greater scholarship impact for students, donors By Kristen Barnes

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he education and development of quality workers are pivotal to a growing economy. And yet researchers project that by 2025, California is likely to face a shortage of workers with some postsecondary education but less than a bachelor’s degree. In fact, the future gap among “some college” educated workers Kristen Barnes may be as high as 1.5 million. To close the gap here in Kern County, Kern Community Foundation has embraced College Access as a strategic initiative and

more specifically, channeled resources over the past 18 months into an online scholarship platform. This platform provides all county high school seniors with access to a single online scholarship application that, in turn, makes them eligible for a growing list of community-sponsored scholarship funds administered through Kern Community Foundation. Since 1999, the foundation has awarded hundreds of scholarships to deserving youth but it was not until 2015 that we were able to channel the power of technology and develop a simple, yet efficient, system to meet the needs of donors and students alike. Donors simply work with foundation staff to establish selection criteria and may give preference to a particular segment of students or field of study. Students are

required to have attended high school in Kern County and plan to be full-time students at an approved vocational school, community college, four-year college, or graduate or medical school. They complete our online application that includes an essay, academic transcripts and an academic recommendation letter. Applications are initially screened by foundation staff and then evaluated by community volunteers, using a specially designed platform portal. At this point, donors may re-engage with the process, making final award decisions and presentations or simply leaving everything to foundation staff and remaining anonymous. The beauty of this new system is that it provides a structure for effectiveness and efficiency. Since

or I can begin a two-way conversation with the person on my doorstep. And the coolest part is I don’t even need to be home. Ring is a Wi-Fi-enabled device that can alert my phone wherever I may be. So I can lie to the UPS lady to “go ahead and leave the package; I’m in the backyard.” Or I can talk to the stranger potentially casing the house and just checking to see if anyone is home that, “Yes, I’m cooking dinner right now and not interested.” And even beyond these situations, I gain the general understanding of all activity at my door. I know when my nanny leaves and I know when my housekeeper arrives – date and time-stamped. And while this creates very little energy savings in terms of fossil fuels, the conservation of my personal energy is priceless. I’d highly recommend taking a peek at the latest connected devices flooding the market this year. Many save energy, some just save time. But combined together, they could just transform your home or office into your own personal Disneyland. – 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.

implementation, we have been able to increase the volume of both applications and awards. In 2015, we received approximately 200 applications and awarded almost $250,000 in scholarships. This year, the number of applications grew to 350 and we plan to award approximately $350,000 in scholarships.

Since 1999, the foundation has awarded hundreds of scholarships to deserving youth but it was not until 2015 that we were able to channel the power of technology and develop a simple, yet efficient, system to meet the needs of donors and students alike. Our scholarship program is in action throughout the year as well, working with local high schools to increase scholarship awareness and help students prepare competitive applications with valuable writing workshops. Additionally, we know that simply writing a check does not guarantee a certificate or degree. To that end, our staff meets with every scholar-

ship recipient to talk about their college and career plans, answer questions, provide tools for personal financial management and simply be that quiet cheerleader, calming their nerves. We continue to reach out, throughout their college years, providing an additional layer of support and many times provide opportunities for students to renew their initial scholarship award. Surprisingly, it doesn’t require tens of thousands of dollars to enable a qualified student to go to college. In fact, our average annual scholarship award is slightly less than $2,500. These scholarships, combined with schoolprovided financial aid, government financial aid programs and personal payment, enable students to pursue their studies. You can make a difference – consider contributing to or establishing a scholarship fund at Kern Community Foundation. – Kristen Barnes is president and CEO of Kern Community Foundation and president of Kern Real Estate Foundation.


June / July 2016

BILL HYBELS

Founder and Senior Pastor, Willow Creek Community Church

MELINDA GATES Co-Chair, Bill & Melinda Gates Foundation

KERN BUSINESS JOURNAL

ALAN MULALLY

President and Chief Executive Officer, The Ford Motor Company (2006-2014)

PATRICK LENCIONI Bestselling Author; Founder of The Table Group

HORST SCHULZE

CEO, Capella Hotel Group; Founding President,The Ritz-Carlton Group

DR. TRAVIS BRADBERRY Bestselling Author; CoFounder of TalentSmart

ERIN MEYER

Professor at INSEAD; Author and Consultant

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WILFREDO CHRIS DANIELLE DE JESÚS MCCHESNEY STRICKLAND

Senior Pastor, New Life Covenant Church; Community Leader and Author

Bestselling Author; Executive at Franklin Covey

Officer in The Salvation Army; Advocate and Author

JOSSY CHACKO

Founder and President, Empart, Inc.

JOHN C. MAXWELL Leadership Expert; Bestselling Author and Coach


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June / July 2016

Bakersfield Summit Aug. 11-12

Global Leadership Summit shapes better leaders PHOTO COURTESY OF GLOBAL LEADERSHIP SUMMIT

Bill Hybels, the senior pastor at Willow Creek Community Church, discusses leadership at last year’s Global Leadership Summit, which was broadcast to 875 “host sites,” including one in Bakersfield.

By Holly Culhane

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veryone wins when a leader gets better. And every leader can get better if he or she has the desire. But improving leadership skills requires an “intentional” effort. It just doesn’t happen. This requires us to seek out effective leadership training that also shares inspiration. For me and for hundreds of thousands of people around the world, this has meant attending the two-day annual Global Leadership Summit, which is conducted through the Willow Creek Association, a nonprofit organization that is comprised of more Holly Culhane than 7,000 member churches, from 90 denominations and 45 countries. Founded more than 20 years ago by Bill Hybels, the senior pastor of Willow Creek Community Church, the summit is an annual leadership event broadcast to 875 “host sites” from the Willow Creek campus near Chicago. Featuring presentations by internationally recognized leadership authorities, the summit is an opportunity to train leaders in all walks of life, including business, education, public service, nonprofit organizations and churches.

PHOTO COURTESY OF GLOBAL LEADERSHIP SUMMIT

Participants listen to internationally recognized leadership experts during the 2015 Global Leadership Summit. Go to www.bakersfieldleaders.com for more information about the summit and to register.

This year’s summit will be held on Thursday and Friday, Aug. 11 and 12, from 8:30 a.m. to 4:30 p.m. Valley Baptist Church at 4800 Fruitvale Ave. will be the Bakersfield “host site.” In addition to founder Bill Hybels, the roster of summit presenters will include such notables as Melinda Gates, co-chair of the Bill & Melinda Gates Foundation; Alan Mulally, former president and chairman of The Ford Motor Co.; Horst Schulze, CEO of Capella Hotel Group and founding president of The Ritz-Carlton Group; Wilfredo De Jesus, author and senior pastor of New Life Covenant Church; Erin Meyer, author, consultant and professor at INSEAD; Dr. Travis Bradberry, author and co-founder of TalentSmart; Patrick Lencioni, author and founder of The Table Group; Chris McChesney, author and executive at Franklin Covey; Danielle Strickland, Salvation Army officer, advocate and author; Jossy Chacko, founder and president of Empart; and John C. Maxwell, author and leadership coach. As a businessperson, the summit is a great opportunity for me to recalibrate and work on my personal leadership development goals. Because of the summit and the input of our team, I’m more aware of the areas in which I need to develop. The summits that I have attended have given me an excellent foundation for growth. They have helped me realize that grit isn’t enough. I need to genuinely love those I strive to serve. Although I knew that and taught it, I needed a lot of personal growth in that area. I can get in the way far too often! For me, it’s important that my faith in Jesus Christ is the foundation for my everyday work and that our team strives to lovingly serve our clients and each other. We don’t always get it right and acknowledge that, but because P.A.S. Associates is not my business, but God’s – I’m just managing it – we need to strive to honor Him in all that we do. Integrity and honesty are imperative in our work. My goal is to provide for and protect P.A.S. clients and our team, to be present for them, to be available to them and engaged, and to truly love and care for each one as individuals. The summit has helped me learn how to develop in those areas. Ultimately, our work is an opportunity to minister, and the summit helps me stay motivated and focused on that vision, as well as fine-tune my business and

management skills. P.A.S. incorporates workshops, such as “Lead Like Jesus Leadership Encounters,” “Servant Leadership” and “Presence Point Experience Workshops” (shepherd leadership), in our workshop offerings. We use summit video clips at most staff meetings. We also attend the summit as a team every year. It’s really cool that we’re not alone. We know of many companies and organizations that use the summit as a staff retreat or team-building experience. The summit has become a key event in the P.A.S. year. It not only helps our team thrive, but is a way to invite leaders in this community to experience great leadership development content. The summit draws these leaders closer to their own callings, whatever they may be. A recent independent study by the Colorado Springsbased Excellence in Giving revealed Global Leadership Summit participants often find success when they apply the skills they have learned. The study concluded that the summit is playing a vital role in supplying organizations with passionate and qualified leaders. Responses from repeat summit participants reveal 96 percent believe they have gained courage to lead amid opposition, with 10 percent saying they would have quit their leadership positions without the inspiration from summit speakers to “persevere.” About 20 percent of attendees were inspired to take on new leadership roles and 87 percent reported feeling a greater sense of significance and satisfaction in their new work or volunteer positions. Sixtyfive percent of repeat participants had taught, on average, 68 people over the past two years about leadership. And 81 percent of attendees cited concrete ways their supervisors had become better leaders as a result of the summit. To register, go to www.bakersfieldleaders.com. The large team rate (10 or more members) is $169 per person. The individual participant rate is $199. Rates increase after June 28. On top of it all, you can’t beat that deal for two days of substantive, quality leadership content! – Holly Culhane is president of the Bakersfield-based human resources consulting firm P.A.S. Associates and P.A.S. Investigations and is CEO and founder of Presence Point Inc. Because of her belief in the summit, she serves as a volunteer promotional strategist for the Global Leadership Summit in Bakersfield.


June / July 2016

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Saving water saves jobs By Save Kern’s Water

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hile El Nino has not yet lived up to its potential, it brought much-needed rain to California this winter. The rainfall proved invaluable in partially replenishing our state’s reservoirs, but there’s still a long way to go. Save Kern’s Water was created to educate businesses and citizens in Kern County about the importance of water to our local economy and how critical conservation is to its preservation. While we experienced a wet winter in 2016, it will not solve years of withering drought. We must all do our part to conserve water because saving water saves jobs. Nowhere is this more apparent than in Kern County’s agriculture industry, which ranks second in the U.S. in value of production. The industry provides 60,000 jobs or 15.1 percent of Kern County employment, nearly doubling to about 30 percent at peak harvest season. These numbers are expected to drop due to the ongoing drought, costing California an estimated $2.74 billion and the loss of 10,000 seasonal farm jobs. In an ideal situation, we could allocate more water from the state to local farmers but nothing in California is that simple. Half of California’s allocated yearly

water supply goes toward environmental regulations. Of the other half, 40 percent goes toward agriculture and 10 percent goes toward urban use. As a result of this and a lack of surface and groundwater storage, the state can only capture so much water during wet years to meet demands during dry periods. California has not updated the conveyance infrastructure in the Sacramento-San Joaquin Delta and this reduces the overall amount of water for deliveries to the State Water Project and the Central Valley Project. More than 26 million people, businesses and farms throughout California rely on the water from these projects. While water is a necessity for all of us, Kern County’s ag industry is really hurting. Consider the fact that about 900 gallons of water are needed to produce the food one person eats in a day. A continued lack of precipitation would not change the amount of water it takes to produce food, but it could inadvertently raise the price. The price of energy has the potential to go up as well because of the declining use of hydroelectric generation. As the price of energy goes up, businesses will have to raise their prices to keep their doors open, which in turn will discourage customers from visiting their businesses. The loss of jobs due to the lack

of water will also negatively impact businesses as families will not have as much to spend outside of necessities. The drought may not hit everyone directly, but it affects all of us in some way.

Half of California’s allocated yearly water supply goes toward environmental regulations. Of the other half, 40 percent goes toward agriculture and 10 percent goes toward urban use. The state could impose additional restrictions on water use as this drought continues into the coming years. This would have a huge impact on the housing market, which is improving, but still facing challenges. Recently, the state’s legislative analyst noted that significant new restrictions on homebuilding could negatively affect the economy, state and local revenues; construction employment; consumption; and business expansion. In another report on housing, the state’s legislative analyst noted that the chronic undersupply of housing is at the core of many problems including overcrowding in older and significantly less water-efficient housing.

Any lack of development could impact local realtors as it decreases housing inventory and could affect property values. Additionally, selling houses is much easier when they are accompanied by a green lawn and great curb appeal. Over the past few years, homeowners have been forced to start thinking about and implementing droughtresistant landscape as part of the solution. All of us must play our part by continuing to limit watering to three days a week as outdoor landscaping can contribute to up to 75 percent of the average person’s annual water use. Homeowners should also restrict watering to the evenings and early mornings to reduce the effects of evaporation. We can save additional water indoors by opting to take shorter showers instead of baths, turning off the tap whenever possible, installing high-efficiency appliances and routinely checking for leaks. Conservation efforts must continue in order to maximize our water supplies in both wet and dry years. Spread the word: Saving water saves jobs. – Save Kern’s Water is a partnership of the Bakersfield Association of Realtors, the Greater Bakersfield Chamber of Commerce, the Home Builders Association of Kern County and the Kern County Farm Bureau.


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June / July 2016

IT Improving Health Care

Clinica Sierra Vista: Electronic records replace paper

PHOTO COURTESY OF CLINICA SIERRA VISTA

Dr. Simonette Soler inputs patient information into the new electronic health records system at Clinica Sierra Vista’s Frazier Mountain Community Health Center.

By Stephen Schilling

G PHOTO COURTESY OF CLINICA SIERRA VISTA

A form pops onto a computer screen to allow Clinica Sierra Vista health care providers to input patient information. The nonprofit health care network that sees 160,000 patients a year is moving patient records from paper files to an electronic system.

one are the days when your medical records were handwritten and – for the most part – for your doctor’s eyes only. A combination of technological advances and government mandates have moved your records to an electronic system that is intended to serve, protect and empower patients. Established in 1971 in Weedpatch, a rural Kern County community south of Bakersfield, Clinica Sierra Vista is a nonprofit health care provider that has steadily grown in Kern, Fresno and Inyo counties to now include 28 comprehensive Stephen Schilling primary care community health centers; eight dental centers; two medical and dental mobile clinics; seven behavioral health centers, with 10 others integrated into Clinica health centers; 30 WIC locations; and four social services/family resources centers. This health care network initially focused on migrant and seasonal farmworkers and their

families. Today, more than 200,000 people are served by Clinica’s programs. That’s a lot of patients and a lot of paperwork filed high on shelves in Clinica’s chart rooms. I know of one patient who has been with us for 30 years. His treatment is documented in volumes of charts – some which began in Lamont and followed him to Clinica clinics in Bakersfield. It is not uncommon for some longtime patients to have files 4 inches thick. This year, Clinica will complete its transition to electronic health records (EHR) and electronic practice management (EPM). It has been a tedious, time-consuming and expensive project for Clinica. But it is one that will greatly benefit our patients. A key provision of the American Recovery and Reinvestment Act of 2009, Health Information Technology for Economic and Clinical Health (HITEC) requires health care providers and other eligible professionals to adopt and demonstrate “meaningful use” of electronic medical records in order to participate in Medicaid and Medicare. No doubt, this law is motivating health care providers throughout the U.S. to move from handwritten patient files to electronic ones. But beyond the “you gotta do it” factor, advances in IT systems are helping improve patient care and empowering people to participate more directly in their health care. “How we document and provide care has massively improved with EHR. There is no question Clinica’s patient records now are more complete and accurate,” said Tony Carbone, Clinica’s chief information officer. “With multiple sites, paper is labor intensive. But with our EHR system, we can store and share data with other providers and the patients themselves.” Frequently, patients come in to see us with a bag full of medications – some prescribed by a specialist, hospital or other health care provider. We must carefully bring cohesion to a patient’s care and the

medications they are taking. The best way that can be done is through an electronic system that also can identify treatments, including medications that might be contraindicated. “Recently I saw a patient who had not returned for required follow-up care after her treatment for a deep vein thrombosis in 2013,” recalled Javier Hernandez, a Clinica nurse practitioner. “Fortunately, our system now can quickly show us the diagnoses for which patients are being treated without me having to go back and review extensive past chart information. “For about two years, the patient had been taking the blood thinner Coumadin to treat her blood clot. This is a medication that generally should be taken for only about three months. Inexplicably, her pharmacy had been routinely refilling the medication. We immediately took her off the Coumadin, which could have caused fatal consequences.” Many of our patients begin seeing us in a community health center in one city and then continue their care at a community health center in another city. They may see multiple doctors over the course of years. It is not uncommon for their files, which include diagnoses, lab tests and treatment notes, to be held in two, three or maybe more Clinica facilities. When these files are on paper and you need the information all in one place, it is a very time-consuming task. And you may not have the time to wait. The electronic patient management system we have in place allows access to information about a patient, regardless of the Clinica location that is providing care. Patients will soon also have online access to their medical information, including diagnoses and test results. There’s no doubt, Clinica’s EHR and EPM systems will save lives, money and improve patient outcomes. – Stephen Schilling is the chief executive officer of Clinica Sierra Vista.


June / July 2016

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Solving the problem of missing garments once and for all! Announcing a major technological advancement with the implementation of Scantrax Garment Tracking System utilizing UHF RFID technology Every Sparkle garment has a small radio frequency identification (RFID) chip sewn in that enables us to track garments at every step in our production facility with 100% accuracy. Every piece is scan-tracked three times: 1. Upon Arrival Each garment is marked as “in process” in our production facility. 2. Upon Inspection Garments are sorted and reassembled into each individual’s bundle for the client’s account. 3. Upon Delivery Preparation Each bundle is verified for the right wearer and company prior to being loaded onto our trucks for delivery.

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Visit our Web Site sparklerental.com


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KERN BUSINESS JOURNAL

June / July 2016

Photos courtesy of Monarch Inc.

Left: Monarch Inc. uses drones to construct aerial maps for agriculture, surveying, energy and mining industries. Bottom: A team from Monarch Inc. checks the flight-preparation list.

Drone company: Sky is the limit for Monarch Inc. By Kelly Bearden

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tarting and operating a small business is not a task for the faint of heart. There are government red tape to untangle, financing to obtain, business plans to develop and marketing strategies to implement. Eileen Shibley, the founder and CEO of Ridgecrest-based Monarch Inc., a provider of aerial mapping services and data products for the surveying, renewable energy and mining industries, is a Small Business Development Center client who faces these challenges Kelly Bearden and much more. She is establishing her new company in a cutting-edge industry that faces intense international competition. Shibley founded Monarch after retiring from a distinguished 30-year career with the U.S. Navy, mostly at China Lake Naval Weapons Center. She served in senior management positions, including director of the Integrated Battle Space Arena; project manager of the Cross-Country Naval Research, Development, Test and Evaluation Network; director of the Joint Counter-IED Facility; and director of the Unmanned Aircraft Systems Division. She completed two, two-year tours at the Pentagon, supporting the U.S. Navy as a technical liaison to the joint forces. “During my last few years at China Lake and while managing the Unmanned Systems Division, the group saw the integration of Predators with F-18s in the same pattern and airspace,” she recalled. “This began my passion for unmanned systems and what their introduction into the private sector and into the national air space might portend for the U.S.” Shibley recently told an industry blogger that her career with the Navy required her to work “with every size drone – from teeny ones to the Predator. That’s when I became

aware that I had devoted my career to defense, but when I retired, I truly wanted to make a difference. I thought I know what these are capable of. I know these things can make a huge difference in the way we do things.” Initially, Shibley’s company operations included the manufacturing of drones for private, commercial use. But the proliferation of cheaper, foreign-produced drones, particularly from China, required Monarch to refocus its business plan. Now Monarch produces “robotic solutions” for commercial applications supporting the energy sector, including wind turbines, solar farms, utility companies and oil companies; the “precision agriculture” industry; and civil engineering surveying companies. Monarch has obtained the necessary FAA authorization to operate in a wide range of areas and industries and was one of the first companies in the United States to obtain a formal 333 Waiver from the FAA. This waiver affords Monarch commercial status as an aerial mapping service provider. To demonstrate the company’s versatility, Shibley noted Monarch’s recent collaboration with the University of California, Merced, and the California Department of Parks and Recreation to photograph and map the 19th century mining town of Bodie in the eastern Sierras, near the California-Nevada border. Monarch used its custombuilt high-precision drone and 3-D printed gimbal to help preserve data about the historic town. “It was one of those thriving places in the 1880s,” said Shibley. “But now it’s old; it’s decaying. The state has made it a state park and they’re trying to preserve it. They put a request in to the FAA that Monarch be allowed to take our drone to Bodie and map it for them.” A multi-year project, the first two research days last fall were spent mapping the Old Town area, which includes houses, the general store and a hotel that are preserved as if their inhabitants had just left, and 3-D scanning of an important at-risk structure and mapping in the New Hoist

area, which is higher up in the mountains of the 2,900-acre state park. Monarch’s technologies and other systems “have the capacity to call public attention to critical social issues and build constituencies” to help preserve Bodie and other historically significant sites, said world heritage professor Nicola Lercari, who heads UC Merced’s park research. The university’s research is partially funded by a $60,000 grant from the Center for Information Technology Research in the Interest of Society (CITRIS). Bodie is in danger of being lost to wildfires and lack of funding for conservation. Using drones, airborne laser-scanning technology, digital sensors and photography, the team, which includes Monarch, is recreating Bodie in three dimensions. From individual artifacts to the park’s topography, archaeologists are working alongside land surveyors and drone operators to capture a level of detail that was previously unimaginable. The Small Business Development Center at CSUB, which is one of five service centers within the University of California, Merced, SBDC Regional Network, is helping entrepreneurs, such as Shibley and Monarch, develop business and marketing plans and identify funding sources. The network 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.


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Chilton Library: Kern County Library’s automotive repair database By Katherine Ross

A

utomobiles showcase great accomplishments in technology and energy, but they do need maintenance, and that’s where Chilton’s Library comes in. Like the Kern County Library, it offers a multitude of resources, and even better, it’s available 24/7 with your library card. From the Kern County Library Research homepage (kerncountylibrary.org/research), scroll down to Chilton’s Auto Repair. The initial screen prompts you to select your vehicle by year, make and model. After that, you choose from options that apply to that specific car, truck or SUV. Chilton’s Library provides repair information for more than 50 years’ worth of cars. The last two years and the years 1901-1959 may be a bit sparse, but this database can surprise you: sample searches yielded repair details for a 1940 Studebaker, a 1947 Oldsmobile and a 1956 Volkswagen Beetle. Search results are divided into repair, maintenance, labor estimating and bulletins/recalls, although not every model will have all of these. Repair is divided into engine electrical, engine performance and emission controls (vacuum diagrams), brakes, and other categories and subcategories. The maintenance category can produce a customized chart of your vehicle’s scheduled maintenance intervals, showing when it needs to be checked. The “labor estimating” category, through

the “view operations” tab, allows you to browse various maintenance categories and subcategories in order to give you an estimate for billable hours. Specific repair details can include illustrations, photographs, videos or animations to fully demonstrate technical details. Some illustrations offer the option “click to enlarge,” and there will be a print link near the top of the page. There may also be a listen option at the top of the screen, providing an audible narration of the written information. Those wishing to pursue automotive repair as a career will enjoy Chilton Library’s ASE test prep quizzes. Available for 13 categories of automotive technician, these interactive multiple-choice quizzes offer a link to check your work, indicating which answers were right and which were wrong. Whether you’re a backyard mechanic, a serious auto restorer or something in between, Chilton’s Library offers reliable information. It’s free from your Kern County Library. – Katherine Ross is a librarian at Beale Memorial Library, main branch of the Kern County Library system.

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June / July 2016

Biomass energy and agriculture By Beatris Espericueta Sanders

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hen driving north on Highway 99, passing through Delano to the east, you can find a biomass plant – or rather something that looks like it used to be an operating

biomass plant.

In December 2015, this biomass plant’s contract to operate expired, leaving millions of pounds organic material outside the facility. Recently, there has been a push to find more funding for this biomass plant, which so far has been unsuccessful. Beatris Sanders In Kern County, we are left with one operating biomass plant, maxed out in capacity and unable to assist the remaining organic mass that the Delano Covanta plant used to convert into energy. The Delano Covanta plant was one of the largest private employers in the region. The plant employed 50 people and supported more than 150 dedicated indirect jobs used in gathering the fuel supply. The biomass plant spent more than $4.5 million in benefits and salaries. The plant also had annual expenditures in excess of $25 million and

CALIFORNIA BIOMASS ENERGY ALLIANCE

The Delano Covanta biomass plant now sits idle.

contributed more than $400,000 in annual state and local taxes. Aside from the economic factors, the Delano Covanta plant had significant environmental benefits. While in

operation, the plant used nearly 300,000 tons of agricultural residues per year from local orchard removals, tree trimmings and prunings and converted it to carbon-neutral, renewable energy. The Covanta plant produced enough renewable energy to supply power to 200,000 homes in the area. Without the plant, the region has become more dependent upon natural gas for power. What’s more, the farms in the region are left with minimal options to dispose of the biomass material, which will only exacerbate the existing air quality problems in Kern County. Even though biomass plants provide economic and environmental benefits, the biomass plants continue to shut down throughout the state, leaving agriculture feeling targeted yet again. Kern County farmers already face many regulatory and legal burdens that do not encumber farmers in other states and countries. Closing the biomass plants leaves growers with fewer options and more obstacles that continue to tilt the economic playing field away from California’s farmers, putting them at a competitive disadvantage. – Beatris Espericueta Sanders is the executive director of the Kern County Farm Bureau.

Continued from page 1

Public-private partnerships are real Since 2008, approximately $25 billion has been invested in Kern County solar and wind projects. This is primarily due to the Kern County Board of Supervisors’ bold 2011 decision to adopt a renewable energy goal of 10,000 MW in production by 2015. This ambitious mandate has resulted in 8,000 construction jobs and 1,500 operational jobs. Today, the county boasts the world’s largest wind farm (Alta Wind Energy Center) and solar facility (Solar Star). Divisive national politics seem a distant concern Successful communities focus on solving local problems by working with the region’s stakeholders to provide real-world solutions. The recently approved oil and gas permitting structure was the result of a two-year collaborative process between county planning staff and O&G companies. Most importantly, future (capital) investment decisions will be driven by a degree of certainty and clarity inherent in this enhanced framework. (The industry accounts for roughly 35 percent of the county’s GDP and employs almost 45,000 residents.) People know the civic story Last month’s commemoration of Kern’s 150th anniversary is

SOURCE: JAMES FALLOWS, NATIONAL CORRESPONDENT FOR THE ATLANTIC

a testament to the community’s pioneering spirit and strong work ethic. Community members gathered at the Kern County Museum to celebrate and the Board of Supervisors even held its regular meeting in Havilah, the original county seat. They have a downtown Bakersfield’s downtown renaissance perfectly exemplifies the city’s “more to explore” theme. Creating a unique and distinctive sense of place provides regional pride, not to mention

significant economic dividends. They are near a research institution and they have – and care about – a community college CSUB’s California Energy Research Center and the Fab Lab are creating opportunities for company formation through commercialization and technology transfer activities. Bakersfield College’s new industrial automation baccalaureate degree program will supply needed STEM-related workers for the local energy and value-added

agriculture sectors. In addition, the Mojave Air and Space Port and the Federal Laboratories at China Lake have emerged as leading aerospace/defense research hubs. Finally, Fallows points out that a craft beer industry is indicative of a great city. Indian Wells Brewery in Inyokern started the microbrewery revolution almost two decades ago. Over the last year, several new and expanded ventures are “hopping” up all over town. The projects add jobs, yes, but they also create gathering

places not just for millennials, but for older generations, too! Kern County’s leaders are fully embracing Fallows’ “best practices” to create a sustainable economic future. Indeed, it is the opportune time for the region to be recognized as the ideal corporate and millennial relocation destination.

– Richard Chapman is the president and CEO of the Kern Economic Development Corporation.


June / July 2016

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Energy-saving tips for businesses By Denise Newton

You can. We can. Beat cancer at The Breast Center By Melina Thorpe

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he statistics don’t lie. According to the American Cancer Society, one out of every eight women living in the United States will develop invasive breast cancer at some point in her life. Yearly, more than 230,000 new cases are diagnosed and around 40,000 wives, mothers and sisters will lose their battle with this dreaded disease. That’s why The Breast Center at San Joaquin Community Hospital is committed to providing comprehensive, high quality breast care to BakersMelina Thorpe field and the outlying communities of Kern County. All services, including screenings, treatment and surgery, are centralized in one location – a first for Kern County. But it’s more than just convenience; a research- and team-based approach reduces time between diagnosis and treatment – one of the most important factors associated with beating breast cancer. A study published in the Journal of Oncology found that the risk of dying from advanced breast cancer goes up 85 percent if you wait more than 60 days to start treatment. At The SJCH Breast Center, treatment will begin in less than half that time. “Within 48 hours of getting a mammogram, a patient will receive their results,” said Jennifer Lavers, operations manager of the AIS Cancer Center. “If there is any abnormality, we immediately schedule additional imaging tests. Once we have a clear diagnosis, our team meets to formulate an individualized treatment.” Treatment begins within a month of the initial mammogram. Patients are guided through each step by a personalized nurse navigator, a single point of contact who will help them schedule appointments,

listen to their concerns or assist with any other needs. We also offer complimentary support groups, nutritional classes and spiritual counseling with one of our dedicated chaplains. “Our goal isn’t just to save lives, it’s to restore life and make sure we keep families together for as long as possible,” Lavers said. “We understand that cancer doesn’t always cooperate, but we’re going to do everything in our power to help our patients win the battle.” SJCH also offers Kern County’s first 3-D mammography – found to be 41 percent more effective in detecting invasive breast cancer than traditional 2-D mammography, according to a recent study published in the Journal of the American Medical Association. 3-D mammograms are available at Quest Imaging’s locations in downtown and southwest Bakersfield. If you’re suffering from pain or discomfort in your breasts or if you have a family history of breast cancer or benign breast disease, don’t wait – call The SJCH Breast Center at 661-323-4673. It might be the most important call you make. The SJCH Breast Center is part of The AIS Cancer Center, located across the street from SJCH at 2620 Chester Ave. – Melina Thorpe, R.N., M.B.A., O.C.N., is the oncology director for San Joaquin Community Hospital (SJCH) with direct oversight of The AIS Cancer Center along with The Breast Center. Her professional experience is in cancer program development and accreditation in oncology.

Office Equipment • Turn off all office equipment and lights every night and weekend. If you can’t turn off the whole computer, turn off the monitor and the printer. • Use email instead of sending memos and faxing documents. • If appropriate, use laptop computers and inkjet printers; they consume 90 percent less energy than standard desktop computers. Lighting Electric lighting accounts for the largest percentage of all electricity used in United States commercial office buildings – that’s 26 percent. • Retrofit T12 lights with magnetic ballasts to T lights with electronic ballasts. • Replace incandescent light lamps with compact fluorescent lamps. • Consider removing excess fluores- cent lights and installing reflectors. Lighter-colored walls need less light. • Install motion detectors to control lighting in frequently unoccupied areas, such as restrooms.

HVAC In the summer, HVAC accounts for 30 to 70 percent of the energy consumed by commercial buildings. • Set thermostats at 78 degrees for cooling in the summer and 68 degrees for heating in the winter. • Install electronic time clocks or setback-programmable thermostats to maximize efficiency. • Install locking covers on your ther- mostats to prevent employee tampering with temperature settings. • Regularly clean condenser coils, replace air filters, and check ducts and pipe insulation for damage. • Install ceiling fans. – Denise Newton is PG&E’s Kern division senior manager.

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June / July 2016

Digital tools ideal for small businesses By Jose M. Granados

D

igital technology has changed the landscape for businesses of all types, especially for small businesses. Like never before, small-busiRight: Keyword ness owners and managers have access Planner for to free or affordable digital tools and Mexican food, data. There are free apps and data for Indian food and every business need. flowers In this column, I would like to highlight some of my favorite digital tools I use to gather and create market intelligence. These free entry-level tools are essential for every small business and are even great tools for experienced market and research analysts. Google Analytics, Google Forms, Google Map API and Google AdWord Keyword Planner are Google apps and are available with a standard Gmail account. The Gmail account also gives you access to other Google apps and to a number of Planning to open a new by third party restaurant? With Keyword apps developers. The Planner, you can find out standard Gmail what local consumers are account is free and easy to set up. searching. For example, Let me start with Google searches for Mexican Analytics, a mustfood are up 85 percent. have tool in your digital marketing strategy. Data from Google Analytics can help you better understand your website visitors and customers. The analytics data can tell you where visitors come from, how Top: Google Maps target businesses

long they stayed and the products they clicked on. It can even tell you some basic demographics like gender, age, income and devices visitors used to view your website. Practically everything you would like to know about visitors to your website, you can find it in Google Analytics. Google Forms is an ideal tool to collect data from customers and prospects. Using Google Forms, you can create surveys and email them to your customers or prospects. The data is stored in Google Sheets, and it is easy to analyze. You can sort and summarize the data using pivot tables and graphs. If you do not have email addresses, you can refer customers or prospects to the online survey with a flier, mail or text. Google Maps API can be used in a variety of ways. For example, you can map your customers or potential targets. Google Maps is ideal to see things from a visual perspective, and you can easily learn a lot about your market and your customers. The basic Google Map allows you to create maps with up to 10 layers per map. Each layer can have up to 2,000 points (customer address for example). You can also map your store locations, prospects, competitors, etc. All you need is the address. If your business requires more capacity than the basic free version, Google licenses a premium version. The premium plan scales to the needs of your business. Above is a sample Google map from an advertising campaign targeting specific restaurants in Bakersfield.

Another great tool to learn trends like product demands is Google AdWord Keyword Planner. Using Keyword Planner, we can find out that demand for mattresses has more than double in the past 12 months. Back in April 2015, Google tracked 140 searches for mattresses in Bakersfield, but in March 2016, there were 320 searches for mattresses. Searches are also up for vacuum cleaners (600 percent). Keyword Planner also tells us that searches for air-conditioning go up dramatically in June and stays up until the end of September. The lowest months for air-conditioning searches are December and January. Planning to open a new restaurant? With Keyword Planner, you can find out what local consumers are searching. For example, searches for Mexican food are up 85 percent. Likewise,

searches for Indian food have more than doubled compared to the number of searches in April 2015. The Keyword Planner can also tell us if local consumers are searching for brand name stores. An analysis of Google searches for Macy’s, J.C. Penney, Target and Amazon show that searches for Target and Amazon are up 20 percent more compared to the same period last year. Google AdWord Keyword Planner collects a lot of data and can be a powerful tool for small businesses and even businesses of all sizes. – Jose M. Granados is a business analyst at TBC Media. This analysis is based on data from Google AdWord Keyword Planner and other Google products. He can be reached at jgranados@bakersfield.com.


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HealthSouth invests in rehabilitation technology By Martha Samora

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edical advances in technology have shaped patients’ outcomes and recovery, improving mortality rates and furthering quality of life. On the rehabilitation front, HealthSouth Rehabilitation Hospital takes pride in driving rehabilitation technology forward using the Martha Samora most effective and cutting-edge equipment to aid in the rehabilitation process. Technology that exists in HealthSouth Rehabilitation Hospitals across the country not only leads the way at all inpatient rehabilitation facilities, but is simply not found in skilled nursing facilities where rehab is sometimes taking place. In Bakersfield, there is only one acute rehabilitation hospital: Health-

South Rehabilitation Hospital. Taking advantage of technology is one of the ways that HealthSouth drives shorter length of stays, nationally recognized outcomes and decreased chances of readmission to the hospital because of complications down the road. Here are the top eight pieces of technology that HealthSouth Rehabilitation Hospitals use to offer their patients 21st century rehabilitation: 1. Auto Ambulator: Sophisticated treadmill device using the therapeutic concept of bodyweightsupported ambulation and robotics to help patients with gait disorders. 2. Balance Master: Provides objective assessment and retraining of the sensory and voluntary motor control of balance with visual biofeedback. 3. EquiTest: Contains computerized posturography, enhancing the ability to diagnose and treat problems of imbalance and postural instability, especially for patients who previously

proved difficult to diagnose. 4. Visipitch: Computerized analysis of voice with interactive software, used for diagnosis and rehabilitation of voice disorders. 5. SaeboFlex wrist splint and exercise station: Promotes increased function in shoulder, elbow, wrist and hand through dynamic splinting combined with creative exercises. 6. Interactive Metronome: Promotes motor learning through focus on performing tasks to a beat. Useful in neuromuscular re-education. 7. VitalStim: Targets swallow function via electrical stimulation. Used in conjunction with traditional dysphagia therapy. 8. Bioness: Functional electronic stimulation (FES) technology used to help patients regain lost mobility. – Martha Samora, RN, CPHQ, FACHE is the chief executive officer, HealthSouth Bakersfield Rehabilitation Hospital

Bioness

VitalStim

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13%

5%

BAKERSFIELD METRO AREA 7% Poverty and 122,759 population

15%

4%

7%

22%

46% Poverty and 122,709 population

5% 74%

0% - 11%

3% 6%

5%

11.1% - 22.8%

1%

55%

7%

37% 0%

16%

5%

37%

0%

5%

14% 12%

25%

11%

17%

30%

22.9% - 40.3% Kern County Average 22.93% Poverty Rte 178 State 40.5% - 74.2%

0% 18%

55%

3%

19% 4%

38%

8% 5% 3%

37%

49%

9%

38%

30%

36%

53%

27% 7%

1% 33%

4%

21%

8% 1%

10%

HIGHWAY 58

HIGHWAY 99

3%

12% 34%

68%

35%

17%

19%

62%

42% 5%

37%

28%

61%

19%

2%

0%

33%

30%

28% 8%

28%

31% 25%

20%

23%

3% 3%

49% 12%

25%

Highest Concentration of Poverty & Lowest Concentration of Poverty in Bakersfield area by percent total population in poverty US CENSUS ACS 2013 5 Year Estimate Table C17002- Block Groups

0

28%

32%

1

²

2 Miles

1 inch = 1.03 miles

Red Areas = 40%+ Concentrated Poverty

GIS mapping revolutionizing how information is presented By Louis Medina

G

6%

47%

20%

1%

California Average 15.94% Poverty

47%

37% 8%

7%

13% PercentIndividualPoverty

14%

26%

6%

4%

1%

Legend

1%

eographic information systems is a term that has been around for less than 50 years; however, GIS application in the collection, analysis and display of spatial or geographical data to highlight issues that are better shown than told has, especially in recent years, revolutionized how we visualize and convey information. Take poverty, for instance. It’s one thing to say that one in five people in Bakersfield is poor, but quite another to show, in multicolored Louis Medina graphics, the overwhelming concentration of our city’s poor in eye-popping red zones east of Highway 99, where at least 40 percent – and as many as 74 percent – of residents live in poverty.

GIS mapping has become useful in a variety of ways for Community Action Partnership of Kern, our county’s federally appointed poverty-fighting agency. “While the city and county have used GIS for years, I think many business people are unaware how powerful of a tool GIS mapping can be. I suspect we are one of the early adopters of GIS in the nonprofit world,” CAPK Executive Director Jeremy Tobias said. There are two GIS experts at CAPK: Operations Director Emilio Wagner, who oversees 89 agency-owned or leased facilities and two parcels of land – 74 in Kern and 17 in other central California counties – and Administrative Analyst Brady Bernhart, whose research using U.S. Census data and GIS mapping helps the agency understand where the greatest areas of need and inequality exist within its service regions. Bernhart, who has a background in geography and urban and regional planning and teaches GIS at Cal State Bakersfield,

has helped CAPK map out areas with large concentrations of child poverty and areas with low concentrations of banking institutions and healthy food retailers. Not surprisingly, a lot of these areas overlap. “GIS makes it possible for CAPK to visualize inequality by mapping poverty, food insecurity, access to healthy produce and access to financial services – or the lack thereof,” Bernhart said. “With GIS, we can show the communitywide impact of the conditions of poverty and their relationship with one another.” Bernhart said he enjoys the discovery moments GIS mapping provides for himself, CAPK’s partners and the public. Heather Kimmel, executive director of California Veterans Assistance Foundation, said some of the maps Bernhart created helped CVAF visualize a plan to fulfill the countywide outreach delivery requirements of a Supportive Services for Veterans and Families grant her agency received. “The maps helped us identify the com-

Community Action Partnership of Kern (CAPK) Does Not Warrant the information shown. Use of this information is at your own risk. Brady S. Bernhart AICP, CFM May 9, 2016

munities that we needed case management representation in,” she said. “They actually helped us strategize which day of the week a case manager would be in each city.” Using the maps, CVAF divided Kern County into eastern and western service areas at Highway 99, Kimmel said, “and today, we have a case manager in each outlying city – Mojave, California City, Rosamond, Wasco, Shafter, Taft, Frazier Park – at least one day a week.” For his part, Wagner, said he is planning to implement facilities mapping internally at CAPK to increase efficiencies. “Staff would be able to pull useful facilities information, such as floor plans, area, photos, rent, lease rates and more,” he said. “Head Start would be able to pull up the license for a particular facility to find out how many slots for children are available.” For example, he said, Head Start staff could look up their child development center’s floor plan to see how feasible it might be to convert a Head Start classroom for children 3 to 5 years old to an Early Head Start classroom for children 0 to 3, which requires a different amount of square footage per child and a higher teacher-to-child ratio than for the older children. – Louis Medina is the outreach and advocacy manager for Community Action Partnership of Kern.


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Solving the problem of missing garments once and for all By Marlene B. Heise

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echnology is integral to all industries, making it possible for faster, more efficient, and even safer, production and service. Whether its computer-driven quality control in a factory or computer-based data that prevents adverse drug interactions for patients, technology is at work. The same is true for the uniform rental and linen service industry. Technology now makes it possible to provide faster processing, 100 percent accuracy in returning the right uniforms to the right company and superior customer service regarding Marlene Heise repair or additional service. Sparkle Uniform & Linen Service, a local, independent laundry company, is proud to be an industry leader in using the most advanced UHF RFID technology available. Radio frequency identification (RFID) is a generic term used to describe a system that transmits the identity of an object wirelessly using radio waves. This is the same technology used by “fast pass” devices on tollways, as well as inventory control and shipment tracking used by several large retailers. RFID falls into the broad category of automatic

identification technologies, which also includes bar codes and optical character readers. Auto ID technologies reduce the time and labor needed to input data as well as improve accuracy. Many uniform and linen rental companies use bar codes on uniforms and high value rental items to quickly identify and record specific data about the items

Sparkle invested in a UHF RFID system called Scantrax in 2014. This system can scan up to 500 pieces within 30 seconds. At several steps in the cleaning process, the tags are read again to record repairs, garment changes in size or style, and to verify that the order is complete. being processed. Sparkle started using bar code technology in 2010. While this process improved record keeping and accuracy in delivery, the downside was the need for the scanner to have a “line of sight” to read the bar code. This is where RFID technology surpasses bar codes. RFID tags are basically microchips with a radio antenna. The tag passes by a reader, which emits radio waves to the tag and receives a signal back from the tag; the data is then passed digitally to a computer. The latest in RFID

technology is the use of ultra-high frequency tags (UHF), which increase the distance allowable between the reader and tag, as well as enabling the reader to read multiple tags simultaneously. Sparkle invested in a UHF RFID system called Scantrax in 2014. This system can scan up to 500 pieces within 30 seconds. At several steps in the cleaning process, the tags are read again to record repairs, garment changes in size or style, and to verify that the order is complete. This enables Sparkle to ensure 100 percent accuracy for each order. Sparkle Uniform & Linen Service developed additional technology to complement the Scantrax garment tracking system by creating an app for smartphones. This app enables uniform customers to take a picture of their bar code (every garment has both a bar code and UHF RFID tag), add a repair or special service request, and transmit it to Sparkle. The next time that garment enters the laundry, it is automatically pulled and the requested service is completed. Sparkle’s goal is to provide customers with reliable, trouble-free uniform service. The cutting edge Scantrax Garment Tracking System technology enables them to do just that at no additional cost to customers. – Marlene B. Heise is the owner of Heise Media Group and marketing consultant to Sparkle Uniform & Linen Service.

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Improving homes, changing lives By Shawna and Rick Sorci

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oday, the kitchen is the center of the home and the hub of activity. Remodeling the kitchen can be a major undertaking. Given the investment required and the inconvenience involved, there are many good reasons to remodel your home. Homeowners often remodel their kitchens to increase the value or marketability of a property. In the 2016 January edition of Remodeling, the cost versus value report indicated the national average on return is 83 percent and the Pacific region average is 103 percent cost recouped at sale. Energy and water savings are also big issue today. Energy savings might be the prime motivation for a kitchen remodel. Energy-efficient appliances and tankless water heaters cut the utility bill and place less stress on the environment. Through the kitchen, more efficient appliances are available today. The refrigerator, ovens and other appliances today are more efficient, cutting the yearly cost to the homeowner. LED lighting is also a great way to cut energy costs and lasts much longer than yesterday’s light bulb. LED lights only utilize about 20 percent of the power that incandescent bulbs use and this can mean big savings to the homeowner – as much as one-third of the electric bill. ADA-compliant kitchens can also make great changes to the life and function for the homeowner, giving an individual with mobility issues room to At Stockdale Kitchen and prepare meals, clean up Bath, the use of the latest and use an important space in the home safely and design software and cutindependently. ting-edge technology with The kitchen can be a photorealistic capabilities very difficult place to maneuver in a wheelallow the client and the chair. The simple task of designer to create not only washing dishes or getting something from a cabinet a compliant kitchen but can be impossible. Today, also your dream kitchen. there are many options. Cabinetry with pull-down shelving is one of them. Sinks can be made wheelchair friendly, allowing the chair to maneuver under the counter with a larger toe kick, and moving the

PHOTOS COURTESY OF STOCKDALE KITCHEN AND BATH

Energy-efficient lighting and appliances can save money and are easier on the environment.

switch to the front of the counter using a button can make the garbage disposal reachable. Appliances are also available with doors that open from the side. No longer will they have a hot door blocking the ability for them to use the oven. Install cook tops with front controls so a seated person doesn’t have to reach over hot burners to turn off and on appliance. These steps can give the person in the wheelchair so much freedom and the independence he or she has lost, increasing the ability to enhance his or her day-to-day life in a positive way. With today’s new technology, appliances and gadgets, the kitchen can be amazing. We will soon see countertops with touch screens. The screen will be able to interact with you and help with day-to-day tasks. Maybe you have already seen 6-inch touch screens placed opposite the icemaker on refrigerators. Not only does this allow you to change the settings on the unit, it will also inform you with nutrition facts. I am excited about the LG Solar Cube Light Wave

Oven – a cross between a microwave, grill and range that is small in size. It cooks food four times as fast and you do not need to preheat. I would love one but for now it is only available in Europe. At Stockdale Kitchen and Bath, the use of the latest design software and cutting-edge technology with photorealistic capabilities allow the client and the designer to create not only a compliant kitchen but also your dream kitchen. The client can now visualize the kitchen during the design process. They can see how the kitchen will work for them. The software allows the color of cabinetry, door style and materials to be added. This creates a photo-like quality photograph for the client of the new kitchen or bath. This will help the client be confident that they are getting what they are looking for. — Shawna and Rick Sorci are the owners of Stockdale Kitchen and Bath and have worked in the industry for more than 20 years. Rick is a certified kitchen designer and a licensed B contractor.

Stockdale Kitchen and Bath uses the latest design software, allowing the client to accurately visualize his or her remodeled room before work begins.


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June / July 2016

Marketing Advice

You can manage, not erase, bad news on the internet By Maureen Buscher-Dang

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crubbing the internet of an unflattering or negative story is like trying to force pepper spray back into a can. It’s a futile waste of energy and money. UC Davis Chancellor Linda Katehi has discovered paying “online reputation” consultants $175,000 to remove or hide stories about Maureen Buscher-Dang her inept handling of the 2011 pepper spraying by campus police of sitting student protesters was a waste of taxpayers’ dollars. It also backfired, giving new life to an old controversy and creating a new one. Likely, at one time in your personal life, or your company’s life, something will happen that will generate an unflattering story or customer review. Decades ago, a local grower was accused of using a chemical to rush his watermelons to market before a summer holiday weekend. Customers who ate the fruit got sick. In the wake of the 2008 Great Recession, banks failed, including one in Bakersfield. Reputations were tarnished. More than a couple of local professionals have made headlines by running afoul of the law over the years. Businesses have been the targets of unfavorable reviews. Product defects have required recalls. Just a few decades ago, these stories likely would be one-day, or at the most, short-term events that few people re-

membered. It was easier for an individual or business to repair the damage to their reputations and move on. But with today’s internet, damaging stories never disappear. The best you can hope for is that negative stories will be pushed off a search engine’s first page and be buried deeper into the web. What should you do if something happens that generates negative or unflattering news coverage or your company gets slammed in an online review? Address the situation truthfully. Do not try to cover up a problem or ignore it. Depending on the problem, you may wish to consult a crisis management consultant. The advice you should be given is to be forthright and honest. As we have seen in politics: A cover-up is nearly always worse than the crime. Respond quickly. Do not respond defensively. Develop and implement an action plan: answer reporters’ questions, hold a press conference if warranted, write an opinion article, send letters to customers, etc. Your message should be truthful and comprehensive. Create “positive news” with the way you are handling the crisis. For example, in the 1980s, a series of murders in Chicago were traced back to the tampering with Tylenol bottles on store shelves. Capsules were laced with potassium cyanide and seven people died. Several more deaths were linked to copycat crimes. The incidents led to reforms in the packaging of over-the-counter-substances and to federal anti-tampering laws. The actions of Johnson & Johnson to reduce deaths and warn the public of poisoning risks – rather than pointing fingers and deflect-

Monitoring sites like Yelp and setting up alerts can help a business owner respond quickly to negative reviews.

ing blame – have been widely praised as an exemplary response and used as a crisis management model. Monitor the internet. Use various search engines to monitor what is being written and said about you and your company. Set up a “Google alert” so that you know quickly when a new story or comment has been posted. This should be done in response to crisis situations, as well as to monitor day-to-day company reviews. Expand the search to social media, such as Facebook and Twitter, as well as specialty websites, such as Yelp and Ripoff Reports. A marketing professional can help you set up this monitoring system. Don’t ignore negative reviews. Respond quickly. Apologize to a critic if necessary. Show you intend to correct a problem. Update your response with information about how a problem was corrected and how a customer was treated. Listen to criticism. If you see a pattern, develop a plan for corrective action. Do not get into a defensive argument with a critic. Always be polite. Readers are more inclined to believe critics than they are to believe a company official. Encourage positive reviews. Encourage satisfied customers to post positive, sincere reviews. Do not post fake re-

views. Chances are you will be discovered and embarrassed by such a ruse. Get the good word out. Now is the time to publicize your company’s accomplishments – product development, expansions, employee milestones, etc. These should be genuine and true reports of newsworthy events. They won’t bump the bad news off the internet, but they will provide perspective and may, over time, help restore your reputation. Stop peeking. Once a crisis has moved into your company’s rearview mirror, quit looking at the old stories. Every click tells a search engine that these old stories still are relevant. Old bad news stories will never move deeper into the web if you keep obsessively looking at them. Sure, you can pay one of a growing army of “reputation cleanup companies” hundreds of thousands of dollars to deal with negative news or reviews. But chances are that you and your staff can do as good a job – if not better – with some elbow grease and a little professional guidance. – Maureen Buscher-Dang is a Bakersfield public relations and marketing consultant. She can be contacted through her website: www.buschermarketing.com.

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June / July 2016

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Cyber-crime By John Pryor

A

2013 survey by the Risk Management Society reported that risk professionals ranked cyber-crime at the very top of their risk priorities. Yet business owners ranked them way down at No. 26. A more recent survey indicates that business owners today say, “Data seJohn Pryor curity is the top issue keeping them awake at night.â€? The Bakersfield Californian reported a cyber-crime “intrusionâ€? in 2014 that cost a Kern County independent oil company $3.5 million. Most losses go unreported, unless customers must be notified because their personal data has been stolen. At the positive end of this spectrum, a workshop for business owners was conducted last year at CSU Bakersfield by its Small Business Development Center with solutions a business can use to mitigate cyber-crime. The challenge is to assess, control and finance the various risks of cyber-crime effectively. Following are helpful suggestions to do so. Risk Assessment – Identification and Measurement of Cyber-Risks Most data breaches are perpetrated by outsiders. For example: • 34 percent by web app attacks • 22 percent by cyber-espionage • 14 percent by POS (point of sale) intrusions The remaining 30 percent are insider misuse, physical theft, card skimmers and crimeware (malware other than the above cyber-espionage or POS). Losses occur in various forms: • Loss of sensitive business data and personal data of customers. • Loss of intellectual property. • Direct financial loss. • Costs incurred to secure networks to avoid hacking. • Reputation damage. On a macro scale, annual costs incurred for cyber-crime losses are conservatively estimated to be in the tens of billions in the U.S. On a micro level, cyber-crime can devastate a business – especially a small business. Smaller businesses typically have less “cyber-securityâ€? to help avoid hacking and other intrusions and, therefore, are major targets. Risk Control – Mitigation and Elimination of Cyber-Risks The obvious source for control of this risk is your organization’s IT staff (or outside consultants). They are the experts who know

your particular system(s). They should be well-positioned to make recommendations and indicate the costs-benefit ratios of each. My book, “Quality Risk Management Fieldbook,â€? recently published by International Risk Management Institute in Dallas, lists several nontechnical risk control methods. Here are only a few examples: • Limit access to your computers on a need-to-know basis with various pass word levels. • Screen all new hardware and software for computer viruses before you allow their use. • Staff functions should be separated so no single employee has complete control over critical processes. • To prevent espionage – internal or external – encrypt most sensitive documents and communications. If appropriate, you may want to create false substitute records. These and many other methods are listed on pages 99 to 101 of my book, plus websites with additional details. Risk Finance – Assumption, Transfer, and Funding of Cyber-Crime Risks Far too many organizations today find “risk assumptionâ€? as the only method in use. It may be possible to transfer this risk to others to some extent, however, that method is very limited. The ultimate solution invariably is a combination of risk assumption (an insurance policy deductible) with the balance of the risks transferred to commercial insurers in a cyber-crime insurance policy. It’s important to understand this risk is in two dimensions: • Two-party property risks where it’s your data that are stolen. • Third-party liability risks where loss of data of others is alleged to have been proximately caused by negligence attributable to your organization. Both risks need to be addressed. Fortunately, the insurance market has expanded recently for the benefit of smaller-size organizations – with lower premiums. Ask your insurance broker to provide you more than a single proposal from a single insurer. The market is very competitive. Moreover, there are no “standard formsâ€? for these coverages. Therefore, risks included – and excluded – in each policy need to be compared rather than make a decision based solely on price. Once you and your broker will have worked through this process – unlike those business owners mentioned at the beginning of this article – you will enjoy the overall objective of sound risk management: a quiet night’s sleep. – John Pryor, CPCU, ARM, is a local risk management consultant. His book is available locally at Russo’s and on the internet at Amazon.com

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June / July 2016

Cultural diversity workshops By Robin Paggi

I

participated in my first cultural diversity activity when I was in fourth grade. Our teacher had all the students with brown or dark eyes stand on one side of the room, then had all the students with blue or light eyes stand on the other side. I stood in the middle of the two groups not knowing where to go (in case you can’t tell by my photo, I have a brown eye and a blue eye). Everyone stared at me and the teacher, unprepared for this little snafu, fumbled around trying to figRobin Paggi ure out what to do. I don’t remember what happened next, but I do remember learning that I didn’t like cultural diversity activities. Ironically, one of the things I do now is teach cultural diversity workshops. And I would venture to guess that most of the participants in those workshops are initially unhappy their employers made them attend. “Why do we have to listen to some lady drone on about respecting other cultures?” they probably wonder. “We already learned that in fourth grade!” One reason such workshops are beneficial is because we often don’t understand what culture is or what it does to us. Culture, according to dictionary.com, is the sum total of ways of living built up by a group of human beings and transmitted from one generation to another. In other words, we are taught how to behave, what to value and how to celebrate by the elders of our group.

My culture taught me that it’s OK to talk about money, that pets are valued family members that are welcome on the furniture and that Christmas presents are to be opened on Christmas morning. My husband’s culture taught him that it is uncouth to talk about money, that pets are animals that live outside and that Christmas presents are opened on Christmas Eve while eating pizza (heathens!).

One reason such workshops are beneficial is because we often don’t understand what culture is or what it does to us. Culture, according to dictionary.com, is the sum total of ways of living built up by a group of human beings and transmitted from one generation to another. In other words, we are taught how to behave, what to value and how to celebrate by the elders of our group. I’m only partly kidding about calling them heathens. That’s what our culture does to us. It teaches us that our way is the right way and people who do things differently are doing them wrong. One workshop participant challenged me about that last statement a few years ago. She said she didn’t think her

way of doing things was right and others were wrong for doing things differently because she was very open-minded. I asked whether she thought everyone should be openminded. She answered, “Yes.” I pointed out that thinking everyone should be open-minded like her was essentially a “my way is the right way” mentality, too. I ran into that participant about a year ago. She told me that conversation was a mind-altering experience for her. That’s what cultural diversity workshops can do. Author Charles F. Glassman said: “In a few seconds, we judge another person and think we know them. When the person we’ve lived with the longest, we still don’t know very well – ourselves.” We know that we’re supposed to treat people of other cultures with respect (or at least not harass or discriminate against them). But do we realize the impact our own culture has had on our worldview? Do we realize how often we tend to disparage others for doing things differently (even when they’re married to us)? The answer to those questions is usually “no.” Cultural diversity workshops should mostly help us learn about ourselves. If you’re not inclined to attend one, just have a conversation about the things your culture taught you that differs from what others were taught. Be prepared, though, because it could alter your mind. – Robin Paggi is the training coordinator at Worklogic HR where she creates and delivers workshops on topics such as harassment prevention, communication and supervisory skills. She can be reached at rpaggi@worklogiclegal.com or 661-695-5168.


June / July 2016

KERN BUSINESS JOURNAL

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June / July 2016

Annuities

Replacing dying ‘defined benefit’ pensions By Steven Van Metre

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n 1981, more than 80 percent of Americans working for private companies were covered by employerprovided “defined benefit” pensions. According to the Bureau of Labor Statistics, that number has dropped to about 10 percent today. Because pension plans are expensive, many employers have transitioned workers to tax-deferred 401(k) retirement savings plans. Some compaSteven Van Metre nies match employee contributions, others leave it to workers to pay entirely for their retirements. With workers still hungering for the dependable retirement income once guaranteed by a company pension, the sales of annuities are booming. An annuity is a type of “insurance policy.” You pay in a lump sum, often at retirement, or payments over time, with the annuity providing a stream of income in the future. Annuities come in one of two forms: immediate or deferred.

With an immediate annuity, you pay in a lump sum of cash and immediately begin receiving annuity payments. With a deferred annuity, you pay a lump sum – say at retirement – or begin contributing when you are still working and delay receiving annuity payments until a certain age. If you do not need your money right away, deferring your payments will give you higher payouts. Both types of annuities are intended to be a hedge against you running out of money when you retire. Sounds simple, doesn’t it? Well, guess again. Annuities come in many shapes and sizes. All have their benefits and risks. Likely you have received advertisements selling annuities. Before you sign on the bottom line, answer some questions. Is buying an annuity right for you? Not everyone benefits from this investment. For example, if you are a government employee who will receive a pension, you may not need additional revenue from an annuity. Or your “liquid” savings may be barely enough to cover a small emergency. You may not want to lock your funds up in an annuity. Why are you buying an annuity? Is it to hedge against running out of money in

retirement; to defer taxes; or to protect savings from such threats as lawsuits? Assess your situation. Make sure you will receive the desired benefit. Fixed or variable rate? Within the annuity categories are “fixed” and “variable” annuities. With a fixed-rate annuity, the provider, an insurance company, will make payments based on your initial investment according to a consistent fixed-rate of return. Payouts with variable-rate annuities will fluctuate depending on the performance of the underlying investments and economic conditions. Equity-indexed annuity? This is a relatively new type of annuity that promises some “minimums,” but the payouts are affected by the performance of the underlying investments. Are you confused? Even the terms of a straightforward, fixed-rate deferred annuity can be confusing. The terms of variablerate annuities are more confusing, with details often deeply buried in the fine print. Know what you are buying. Annuities have been around for years. Their complexities and sometimes lack of transparency have discouraged many people from getting involved. But with the near death of defined-benefit pensions,

many workers are taking another look. What can you do to protect yourself? Seek the advice of a financial planner or accountant who knows your entire financial situation. He or she should help you determine if an annuity is a wise investment for you. Understand the terms of the annuity before you sign. If you need help, get a second opinion from an independent source. Be wary of the fees, penalties and commissions you have to pay. Buy only from a company that has a good industry rating. But that, too, is no guarantee. Who would have guessed insurance giant AIG would fall in the 2008 Great Recession? To minimize risk, spread your investments among several annuities. Annuities should be considered just one of many retirement savings tools. Your portfolio should be balanced with other investments and liquid cash. – Steven Van Metre is a Bakersfield certified financial planner who specializes in retirement income strategies and teaches a course on retirement planning for the Levan Institute for Lifelong Learning at Bakersfield College. His website is www.stevenvanmetre.com.

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T

he impression one gets from reading about California energy policy lately is that local oil production will diminish to the point of extinction within the next couple of decades. Given recent legislative mandates and Gov. Jerry Brown’s regulatory priorities, it seems electric cars will soon dominate our roads John Cox and gasoline-powered vehicles will exist only at vintage car shows. What a boon that would be to the southern Central Valley’s dismal air quality, right? No tailpipe emissions and no need for hydraulic fracturing or oil “producedwater” disposal wells, only wind turbines, solar farms and vehicle charging stations as far as the eye can see. Don’t hold your breath. According to national estimates, we’re going to need traditional gas stations for a while yet. While it’s true U.S. oil production is expected to drop more than 8 percent below 2015 levels by next year, the U.S. Energy Information Administration’s annual outlook for 2016 suggests that’s mainly because of unsustainably low oil prices.

Once oil’s global supply-demand imbalance straightens itself out, the EIA predicts, domestic crude production will rebound to reach 11.3 million barrels per day by 2040, a 20 percent increase from last year’s total. Other scenarios taking into account brewing geopolitical tensions forecast a still greater need for West Coast oil production. As keynote speaker Peter Zeihan told the audience at last year’s Kern County Energy Summit in November, “You will be called upon to triple oil production in five years.” That’s a bold forecast to be sure. But Zeihan’s underlying point – that oil will continue to be a valuable commodity going forward – still holds. Don’t get us wrong: With continuing advances in energy storage technology, electric vehicles could greatly improve life in the Golden State. The rest of the world could benefit by learning from our example, too. But let’s also be realistic. We’re going to need oil in the future and in greater volumes than we currently produce. – John Cox is The Bakersfield Californian’s business reporter. He writes about oil, agriculture, real estate, banking, utilities, tourism and almost anything else involving money in Kern County.


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Protect your family from contractor fraud By David Wolf

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arm weather is here and that means home improvement projects. However, you need to protect your family from contractor fraud. The Kern County District Attorney’s Office, the California Contractors State License Board (CSLB) and the California Department of Insurance are seeing a surprising number of fraud cases committed by unlicensed, uninsured, fake contractors. There are a number of hazards in hiring an unlicensed contractor. First, you risk substandard work. Second, you risk having work completed that is not up to code. If you are lucky, David Wolf you will only have to pay to hire a licensed contractor to fix the problem. If you are not lucky, you might be dealing with injuries or death from faulty work. This past year, an unlicensed contractor replaced a pool light (underwater) and simply wrapped black electrician’s tape around the electrical wiring. Had someone been in the pool when the light was turned on, they could have been seriously injured or killed. Third, I have yet to see a case where the unlicensed contractor has the required workers’ compensation insurance; however, they almost always seem to have “a friend” working with them. When that person gets hurt on your property, hopefully your homeowners insurance will be able to cover the medical expenses. Finally, there have also been cases where criminals with serious felony records are pretending to be licensed contractors and gain access to people’s homes. We had one case where an unlicensed, uninsured, registered sex offender came to a home armed with a firearm pretending to be a licensed contractor. Before letting a stranger into your home, wouldn’t it be nice if there was an easy way to check to see if that individual had a prior serious conviction (rape, murder, child molestation, etc.) and to determine whether this individual has workers’ compensation insurance for his employees? Wouldn’t it be nice if you could tell if this individual actually knew something about construction? That service does exist and it is free. Before letting that so-called contractor into your home, run a free CSLB check. CSLB completes a criminal background

check on every applicant before issuing a contractor’s license. Using a licensed contractor is worth it, and odds are you won’t really spend that much more on a licensed contractor. You’ll likely save money because they will do the job right the first time. By doing a CSLB background check, you will be protecting yourself and your family. There are two very user-friendly websites you can use to check if someone really has a contractor’s license: www.cslb.ca.gov and www.bbb.org/central-californiainland-empire. Our local BBB does a great job keeping its information up to date, and the search function is very easy to use. Not only can you find out about a license, but you can also see problems that others have had. BBB even reports government actions, like prosecutions. What does the BBB charge for all this great information? It is free.

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“Admitting you’ve been ripped off may be embarrassing, but if you report it, we might be able to arrest and prosecute the perpetrator. ” Finally, did you know that you can go to the Kern County Superior Court website and find out both civil and criminal information about a person? This service is also free. Note, this will not give you any information about cases in any other county or state. The Superior Court website is: www.kern. courts.ca.gov. Once at this site, click on either the criminal or civil tab near the top. Then click on the search case information found at the top-left column. Be sure to check both the civil and criminal sections. Finally, if you have been a victim, please report it to CSLB, the BBB, your local law enforcement agency and to the district attorney’s fraud hotline (800-619-3039). Admitting you’ve been ripped off may be embarrassing, but if you report it, we might be able to arrest and prosecute the perpetrator. We might be able to get you some of your hard-earned money back, and you might be protecting someone else from also becoming a victim. So let’s look out for one another and keep these unlicensed criminals from preying on our community. – David Wolf is a deputy district attorney with the Kern County District Attorney’s Office.

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Amtrak

Growing our economy through a better-connected San Joaquin Valley

The Bakersfield Amtrak station on Truxtun Avenue.

By Nicholas Ortiz

A

mtrak is a nationally known brand created by Congress in 1970 and is popular among Americans as one of the most convenient, affordable ways to travel. Amtrak routes cover more than 21,300 miles, serve more than 500 destinations and, in fiscal year 2015, welcomed aboard 30.8 million passengers. On an average day, nearly 84,600 passengers ride more than 300 Amtrak trains. Here in Kern County, however, there is room for growth Nicholas Ortiz in Amtrak San Joaquin’s ridership, including an increased use of the service within our business community. Our regional economy depends on quality transportation and mobility. We have a gem in Kern County and the valley in the Amtrak San Joaquin, and if properly invested in, we can further provide for the mobility needs of our communities. In 2012, Assembly Bill 1779 was passed to allow the San Joaquin Joint Powers Authority (SJJPA) to take over administration and management of the San Joaquin portion of the rail from the state. This transfer was signed on June 29, 2015, taking effect on July 1, 2015. AB 1779 was created to protect the existing San Joaquin service and promote its improvement. Under this bill, the state will still provide the necessary funding for service operations by Amtrak and, according to the SJJPA website, “train riders and San Joaquin Valley residents now have a stronger voice in deciding what happens with the service since local decision-making is more responsive and adaptive to passenger issues.” The SJJPA is working to enhance the service for all and is bringing it closer to the people who use it by taking advantage of local marketing partnerships throughout the San Joaquin Valley, engaging the communities in an effort to increase awareness and ridership. Amtrak San Joaquin is ranked the fifth busiest intercity passenger rail service in the nation, carrying about 1.2 million passengers a year with six daily round

PHOTO BY CASEY CHRISTIE

Amtrak San Joaquin carries about 1.2 million passengers per year through the Central Valley.

trips. The seventh is expected to be added this June, which will be the first new service added between Bakersfield and Oakland since 1993. These daily routes allow our busy business travelers the ability to boost productivity while on board, and this increase in productivity in the business sector is a trend that Amtrak experiences nationwide. So what’s next? An eighth additional daily round trip is already in the works, which will provide even more availability and convenience for central valley passengers. Improved service and frequency of trains to and from Sacramento is a high priority as it is a popular route for business travelers. With departures and returns at the right time of day, we will see substantial growth in the San Joaquin service. The SJJPA is also working to begin service in the middle of the valley, allowing travelers to arrive in Bakersfield in the early morning and

leave later in the evening. Amtrak San Joaquin is already very affordable, yet offers a wide range of promotions and discounts, giving riders the opportunity to travel for even less. The new “Friends and Family” offer gives riders the opportunity to purchase one full-price adult ticket and receive a 50 percent discount on up to five additional tickets. Kern County loves its veterans and Amtrak honors veterans through discounts and welcomes uniformed military personnel to the front of the ticket line. Community leaders across the San Joaquin Valley are seeking ways to care for our residents and foster our business communities, all while protecting quality of life. We believe that excellent rail service in the valley addresses these goals and gives community leaders the opportunity to come together to grow and prosper our economies in ways large and small.

Travel by rail promotes economic vitality and a cleaner environment. The provision of rail service makes our communities better places for all of us while also connecting residents to other markets and broader networks. Through expanded, local community outreach and educating the public about the safe, comfortable, and reliable service the Amtrak San Joaquin offers, Kern County will contribute to growing this service and increase the number of local citizens and business travelers utilizing this great resource. Better connecting our San Joaquin Valley economies will benefit all of us. For more information or to book your trip, visit the San Joaquin’s new website at AmtrakSanJoaquin.com. – Nicholas Ortiz is the president and CEO of the Greater Bakersfield Chamber of Commerce.


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PTS Rentals, Mission Bank Team Up for Quick Response

Equipment rentals keep Kern companies’ lights on By Maureen Buscher-Dang

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windstorm howls in from Kern County’s west side, knocking down power lines in its path. Flooding in downtown Bakersfield from an unexpected storm fills the first floors and basements of many businesses. An earthquake shakes the ground away from buildings near the Grapevine. Maureen Buscher-Dang These are real scenarios that have hit the southern San Joaquin Valley in recent years. The impacts can range from being a nuisance to a disaster. But as Kern County’s businesses become increasingly sophisticated, even brief interruptions in power supplies can spell disaster for many companies and their clients. “Businesses are becoming more ‘mission critical,’” said Greg Billings, who operates PTS Rentals in Bakersfield. “Whether they are data centers, financial institutions or hospitals, many businesses cannot be without power for a single second.” Billings’ company rents and sells such equipment as mobile and stationary generators and industrial air compressors, providing equipment up to 21,000 volts and 2 million watts in a single unit. It also provides 24-hour emergency services, including equipment repair. With the state’s power grid vulnerable to outages and brownouts and increasing government

regulations requiring companies to have backup power systems, businesses are looking for costeffective and reliable alternatives – either to buy or rent. And that’s where companies, such as PTS Rentals, come into play. “While the demand for backup power systems and related equipment is increasing, so are the challenges for companies that provide these services,” said Billings, noting that equipment rental companies must be ready to respond at a minute’s notice to their customers’ emergencies, while still keeping a watchful eye on their own bottom lines. When the economy is booming, so is the equipment rental business. But when a sector, such as the oil industry, slows down, so does the need for some of the equipment that supports an industry. For that reason, PTS Rentals has diversified its client list. Oil companies continue to be customers, but so are many municipalities, hospitals, utilities, agriculture and assorted private companies in its service area. To thrive in an ever-changing economy requires Billings to understand customer needs and deliver a quick response. These are goals he has set for his company and which he expects from his banker. In the decade since its founding, PTS Rentals has teamed up with Bakersfield-based Mission Bank to provide the financial services needed to keep his company successful. “Meeting our customers’ needs is vital to our business. We talk with our customers at all times

OmniCert brings technological advances to Kern County’s top industries

PHOTO BY FELIX ADAMO

Greg BIllings of PTS Rentals

of the day,” said Billings, noting that he has the same relationship with his banker, Samy Abiaoui, at Mission Bank. “Mission Bank focuses on ‘relationship banking,’” said Abiaoui, explaining Mission places a high priority on its customercentric services. As an example, he noted that experienced Mission bankers frequently go to a busy customer’s location to conduct business, rather than having them come to the bank. This service is credited with helping Mission Bancorp achieve its 68th consecutive profitable quarter, which ended on March 31, 2016. The company reported a net income of $1.2 million for the first quarter of 2016. This was an increase of 65 percent over last year’s comparable quarter’s net income of $706,000. A wholly owned subsidiary of Mission Bancorp, Mission Bank

is rated by Findley Reports on Financial Institutions as a “Super Premier Performing” bank, which is Findley’s top rating. The Findley Reports is a highly regarded industry organization that monitors California-based banks. Mission’s loan portfolio experienced significant growth during the first quarter, which led to healthy increases in earnings. Outstanding loans increased to $329.9 million at March 31, a $27.4 million increase so far this year. Loans increased $79.3 million, or 32 percent, from March 31, 2015, to March 31, 2016. Shareholders’ equity increased $4.4 million, or 11 percent, to $43.5 million at March 31, 2016, compared to $39.1 million at March 31, 2015. The increase in equity is due to strong earnings throughout 2015 and the first quarter of 2016. Book value per share increased

By Hannah Thomasson

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reated with Kern County’s major industries in mind, OmniCert was designed with the idea that keeping track of employee certifications could be – and should be – simple. Using web and mobile software to replace physical forms and redundant paperwork, the Bakersfield-based company is helping move age-old industries into today’s current technological world. Hannah Thomasson “OmniCert is a compliance optimization solution that tracks and manages technical and safety certifications, as well

$2.65, or 11 percent, to $27.66 at March 31, 2016, as compared to $25.01 at March 31, 2015. Earnings per share and book value per share reflected a 5 percent stock dividend declared in April 2016. Mission Bancorp is the parent holding company of two wholly owned subsidiaries, Mission Bank and Mission 1031 Exchange LLC. In addition, it is 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. She can be contacted through her website: www.buschermarketing.com.

as internal and external employee training,” said CEO Vance Elmore. Utilizing both web and mobile platforms, the web application is native to any operating system and the mobile application is available for both IOS and Android, making the software accessible for every staff member. The web application is typically used by administrative personnel, while the mobile application is mainly used by employees out in the field. The ability to upload certifications, input expiration dates, manage all certifications and training, and set alerts – all from a smartphone – simplifies the entire compliance process. This saves precious man hours and aids in accuracy as it takes all necessary information and Continued on page 31


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KERN BUSINESS JOURNAL

International Tax Reforms

The future basis for future tax reform plans? By Joel A. Bock

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n recent years, criticism of multinational corporations like Apple, Microsoft and Google has mounted in regards to the relatively low amount of taxes paid in the United States in comparison to the high level of global earnings of the corporations. If “U.S. persons” (which include domestic Joel A. Bock corporations organized in the United States) are subject to federal income tax on their worldwide income, then how are these corporations legally able to maintain this low level of U.S. taxation? Generally (with certain exceptions beyond the scope of this article), a U.S. person who owns shares of stock in a foreign corporation is not subject to U.S. federal income tax on the foreign corporation’s active income until the foreign corporation pays a dividend to the U.S. person. The practice of keeping funds offshore so as to defer U.S. federal income tax has accumulated in excess of an estimated total of $2 trillion of foreign profits for all companies combined. The worldwide tax system currently in effect in the United States will allow a foreign tax credit for taxes paid by corporations to foreign countries, so as to mitigate double taxation of the same income. If the foreign country tax rate exceeds the U.S. federal income tax rate, then there is no U.S. federal income tax liability. However, more commonly, the U.S. federal income tax rate exceeds the foreign tax rate, so the difference between the U.S. federal income tax amount and the foreign tax amount is a U.S. federal income tax liability. An alternative to the current worldwide tax system resulting in the deferral of foreign earnings is a territorial tax system. A territorial tax system taxes businesses only on the income earned within the country. Of the 34 countries in the Organization for Economic Cooperation and Development, only seven countries (including the United States) utilize a worldwide tax system while the remaining 27 countries have some form of territorial tax system. Additionally, the United States has the highest combined statutory corporate income tax

rate among OECD countries. In an interview in December 2015 on “60 Minutes,” Apple CEO Tim Cook stated that he would “love to” repatriate foreign profits but is unwilling to do so “because it would cost me 40 percent to bring it home.” He went further stating, “This is a tax code … that was made for the industrial age, not the digital age.” On Feb. 24, 2016, the House Ways and Means Committee held a public hearing to address “the global tax environment in 2016 and its implications for the U.S. international tax reform.” Among the issues discussed in the hearing were “the competitiveness of the U.S. tax system, economic distortions arising from deferral, shifting of

The worldwide tax system currently in effect in the United States will allow a foreign tax credit for taxes paid by corporations to foreign countries, so as to mitigate double taxation of the same income. If the foreign country tax rate exceeds the U.S. federal income tax rate, then there is no U.S. federal income tax liability. income and business operations, locating deductions in the United States and inversions.” While the timing and certainty of international tax reform is unknown, these recent discussions may well serve as a basis for future tax reform plans. Please consult your tax adviser to determine how these tax laws impact your specific situation or contact Joel A. Bock at 661-834-7411 or via email at joel@dpvb. com. – Joel A. Bock, CPA, MST is a partner in Daniells Phillips Vaughan & Bock, a Bakersfield accounting firm.

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Tourism Update

Summer means rafting in Bakersfield, new museum exhibits By David Lyman

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ith summer approaching, friends and family will be visiting. Here are some family friendly suggestions for things to see and do in Bakersfield: River rafting It returns to the Kern River this year, and Bakersfield’s own River’s End Rafting and Adventure Company is ready to David Lyman provide memorable water recreation. “We are very excited to be back after having to take a year off due to the ongoing California drought,” said River’s End owner Darron Nilsson. “Projections are looking good this summer and we certainly hope to be busy.” River’s End offers a two-hour “Blaster Expedition” that starts near the mouth of the Kern River Canyon and heads downstream for 3 ½ miles to the back of Lake Ming. The half-day “Master Blaster” expedition is the “Blaster Expedition” run twice with lunch provided in between. According to Nilsson, the route is “all within the Bakersfield city limits.” The company also offers kayak tours. River’s End is the closest outfitter to Los Angeles, which explains why most of River’s End’s visitors come from the southland. However, local residents are always welcome. “I really don’t think that Bakersfield even understands that they have a local whitewater rafting company. But they do,” said Nilsson. “It would be great to get more locals out enjoying their very own natural recreational resource.” River’s End Rafting has opened its new rafting center at 15701 Highway 178 at the historic Rio Bravo Ranch. The firm has partnered with the ranch and Coseree’s Deli to offer adventure, olive oil tasting,

PHOTO COURTESY OF RIVER’S END RAFTING

Kern River rafting

wine tasting and fantastic food. Nilsson wants River’s End to become the traditional stop both before entering the Kern River Canyon as well as on the return back to Bakersfield. “Our trip is safe, fun and unique to the area, featuring sightings of our local fauna, our rich Indian history and the historical Rio Bravo Ranch,” Nilsson added. “Guests on our trip experience sights that one rarely gets to enjoy, even being longtime residents to the area.”

Bakersfield Museum of Art They are celebrating their 60th year with free regular admission through the end of 2016. BMOA’s summer exhibitions run through Aug. 21. These include one of the largest displays ever mounted from the cover art program of the Westways AAA member magazine. And for those interested in motorcycles and travel, BMOA will also have PHOTO BY FELIX ADAMO photographs on display “Clouds” from the Bakersfield to Bakersfield exhibit at BMoA.

from the cross-country trip taken by local photojournalist Felix Adamo while visiting every Bakersfield in the nation (hint: there is more than one). At the exhibition, you will also be able to view the actual 1970sera BMW motorcycle he rode on that trip.

If you go … River’s End Rafting 15701 Highway 178 Reservations: 661-326-7003, www. riversendrafting.com Kern County Museum 3801 Chester Ave. 661-437-3330, kcmuseum.org Hours: Monday through Saturday, 10 a.m. to 5 p.m.; Sunday, noon to 5 p.m. Lori Brock Discovery Center (located at the Kern County Museum) Monday through Saturday, 10 a.m. to 4:45 p.m.; Sunday, noon to 4:45 p.m. Bakersfield Museum of Art 1930 R St. 661-323-7219, www.bmoa.org Hours: Monday, Tuesday, Wednesday and Friday, 10 a.m. to 4 p.m.; Thursday, 10 a.m. to 8 p.m.; Saturday and Sunday, noon to 4 p.m.

Lori Brock Children’s Discovery Center - Kern County Museum It was recently redesigned, thanks to a $50,000 grant from the Junior League of Bakersfield. New activities, focusing on STEM (science, technology, engineering, math) include explorations of static electricity, angular momentum, aerodynamics and other physical sciences. The Maker Annex room in the center, funded by Chevron, encourages engineer-like thinking to construct with different materials. Kern County Museum’s 75th anniversary This means lots of special events planned, such as several Living History Days and unique lectures. For more to explore in Bakersfield, check out the all-new VisitBakersfield.com and “like” us on Facebook at VisitBakersfield. – David Lyman is manager of Visit Bakersfield. He and other members of Team More to Explore help visitors spend their money in California’s ninth largest city. They are available toll free at 866-425-7353 or Info@VisitBakersfield.com.


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Aera Energy: Promoting a culture of safety By Fiona Lytle

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very day, everybody goes home alive and well.” More than just a motto, Aera employees and contractors embrace safety as a top priority, and they mean it. Aera’s outstanding safety record, which is 11 times better than the nationwide manufacturing sector and 20 times better than California’s state and local governments, reflects this commitment. This is no small feat. Maintaining a culture that lives and breathes safety starts at the top. President and CEO, Christina Sistrunk, is the ideal person to steward this concept. She was recently honored at the national Fiona Lytle level as a Safety in Action Icon by DEKRA Insight, a global leader in safety at work, for her leadership and programs while working with Shell. She was instrumental to Shell accomplishing its best safety performance year in the history of the company’s deep water organization. She was also recognized for spearheading the Process Safety Management program, which led to changes in how Shell created safer working environments and procedures for employees and contractors. Sistrunk’s unwavering efforts around creating a culture of safety both inside the organization and at field locations have been referred to by those at Shell as “ground breaking.” And her reputation as a leader who “gets it” is well known in the upstream world of oil and gas. “My first memory about safety, where it impacted me personally and challenged how l thought about it, was during one of my first jobs offshore in the Gulf of Mexico. Just before I arrived, two individuals tragically lost their lives and I remember the significant toll the event took on the workers as they grieved,” said Sistrunk. “As someone who has family members working in the oil and gas industry – including my husband –

the experience hit home in a big way. From that moment on, I made a personal commitment to think strategically about the safety implications of every project so that I could do my part in ensuring workers would go home to be with their families at the end of each shift.” When people think about safety in the oil and gas industry, they often think of roustabouts working on rigs and complicated drilling operations that require highly sophisticated engineering practices. And they’re right. But there’s another piece to the puzzle. Commitment to safety extends beyond making sure we use the right tools and follow specific processes. At Aera, promoting a culture of safety starts with how people think, feel, talk and view their roles as stewards of wellbeing in the workplace. So you won’t find an Aera employee texting while walking (something everyone should practice), using the stairs without holding the hand rails or participating on a conference call while driving. These not-so-technical examples demonstrate that the organization cares for its people first and foremost, and will continue to find ways to ensure each person has the ability to return home to their family, alive and well, at the end of every day. − Fiona Lytle is a public affairs-communications specialist for Aera Energy LLC. Aera Energy is proud to be a respected and responsible California oil company accounting for nearly 25 percent of the state’s oil production. Headquartered in Bakersfield, Aera is known for excellent safety and environmental performance, innovative business practices, application of cutting-edge technology, a dynamic company culture and active community involvement. With operations centered in the San Joaquin Valley, much of Aera’s oil production comes from Kern County. Aera also has active oil field operations in Ventura, Monterey and Fresno counties and has begun the permitting process to redevelop the East Cat Canyon oilfield in northern Santa Barbara County.

Sistrunk named among industry’s most ‘powerful women’ The National Diversity Council named Christina Sistrunk, Aera’s president and CEO, as a 2016 Top 50 Most Powerful Women in Oil and Gas. The list includes prominent female executives, influencers and achievers impacting the oil and gas industry. Sistrunk’s selection was based, in part, on being a top leader in her organization and profession; directly contributing to business growth and strategic direction of the organization; being an effective role model who inspires other women; and operating with the highest integrity and ethical behavior.

Continued from page 28

makes it available for safety and management personnel at a moment’s notice. Employees are issued an OmniCert card and wear a QR code on their hard hats that is scanned by safety personnel. A complete history of all certifications, trainings and expiration dates are instantly made available. This eliminates the need to carry physical proof of certification and the hassle of having to keep track of training. “The current paper system is very redundant and slow without an easy way to share information quickly and easily,” Elmore said. “Ease of access, increased efficiency and cost savings are three things we really pride ourselves on.” Integrating these technological advancements will only enhance personnel’s ability to perform their duties and create a safer work environment. Even the potential loss of mobile connection has been accounted for, with the ability to run reports prior to going out into the field. These reports can be accessed offline, so in areas with bad reception, the reports are still accessible. OmniCert has the capability to tap into various systems and software that are currently being used by a company and integrate all information into one easily accessible spot. Whether it’s medical records, HR information or online training platforms, necessary information can be integrated with OmniCert and made immediately available. This eliminates the need for paper trails and repetitive files and systems. “As far as integrating systems, we are a one-stop shop where personnel can pull data from instead of pulling it from three or four different areas,” Elmore said. “It also creates transparency within the company because of the ability for data to be shared across all levels of employees. There’s really no excuse to be out of compliance.” “Some of these industries that have been around for hundreds of years, such as oil and

agriculture, they’re a bit slower to adapt to these types of processes and technologies solely because there’s the adage of ‘we’ve always done it this way,’ but I think people are slowly realizing that the use of technology is a cost-saving tool for their company.” ­– Hannah Thomasson is the owner of Exousia Marketing and Consulting. For more information, visit www.exousiamarketing.com or contact her at Hannah@ exousiamarketing.com.


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June / July 2016

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