KERN Journal Business
Vol. 4, No. 3
Aera Energy unveils innovative employee learning center, Aera Academy
Page 22
June / July 2015
Energy and Technology Issue
Cover story
ESI’s Fabrication Facility in league of its own
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n its never-ending quest to provide quality and value to its customers, Electrical Systems and Instrumentation, Inc. (ESI) established its Fabrication Facility at 6906 Downing Ave., fabricating products of the highest quality at an affordable price. ESI has been fabricating power and control panels for clients in the oil and gas sector, agriculture and beyond since the company’s inception in 2004, but its Fabrication Facility takes ESI’s core principles of safety, quality and value to the next level by providing a controlled, clean environment that is UL 508A certified. ESI’s panel technicians are supported by our certified Lean Six Sigma Belts and have years of experience fabricating PLC, power and control panels and will see projects through to completion, from fabrication, installation and maintenance to ensure proper function and safety. “We only do things that add value,” ESI President Robert Riley said. “We provide value and honesty to our customers by taking ownership of their needs as if they were our own.” –– Electrical Systems and Instrumentation, Inc. (ESI)
PHOTO BY MARK NESSIA
ESI's Fabrication Facility located at 6906 Downing Ave. allows technicians to fabricate PLC, power and control panels in a controlled, clean environment that is UL 508A certified.
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see page 9 for more
*Bank Director Magazine, 2014. Among Banks with $5 Billion to $50 Billion in Assets. CVB Financial Corp. is the holding company for Citizens Business Bank. 0515
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INSIDE
Groundbreaking NAPD breaks ground on new facility Page 12
Energy Biofuel breakthrough earns Navy chemists national recognition Page 6
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June / July 2015
June / July 2015
Journal KERN Business Showcasing Kern County business and industry June / Julky 2015 Vol. 4, 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 President/CEO Richard Beene Senior Vice President Revenue and Marketing John Wells Editor Olivia Garcia Assistant Managing Editor Mark Nessia Specialty Publications Coordinator
Laura Liera
Art Director Glenn Hammett Graphic Designer Holly Bikakis To submit a story kbj@bakersfield.com To advertise Lisa Whitten, Advertising Manager lwhitten@bakersfield.com 661-395-7563 To subscribe 661-392-5777
KERN BUSINESS JOURNAL
Editor’s Note
Energy, technolgy powering business and our lives
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echnology is a fascinating topic for me. As someone who is in the field of media, explores media and technology to college students, and is a self-proclaimed tech geek, I like to study how technology affects personal behavior and consumer habits. In this issue of the Kern Business Journal, we explore intriguing ways in which technology is aiding the business sector. As Jose Granados Olivia Garcia of The Bakersfield Californian writes in this issue: “For many companies, this is a critical time — a time to rethink the way they do business. For this reason, businesses everywhere are keeping a keen eye on consumer adoption and use of digital and mobile technologies.” In other topics, writer Diana Greenlee explores the use of the cloud for local companies. A few years ago, the IT/Systems department at The Bakersfield Californian launched cloud-based use among employees. It was a
learning process but one that I now appreciate and value as an editor in retrospect. Also, read up on how technology shapes the agricultural industry. Writes Beatris Sanders, executive director of the Kern County Farm Bureau: “Generation after generation, family farms have taught the next generation the most efficient ways to reap the land, PHOTO COURTESY OF KERN COUNTY FARM BUREAU maximizing high yields. As it Kern County Farm Bureau’s “generational teaching.” was in the mid-1800s, agriculture remains an abundant economic industry for Kern County.” explores Kern Energy Watch Partnership, Technology isn’t the only theme we exwhich seeks to make energy efficiency a priorplore in this Kern Business Journal’s edition. ity. Pacific Gas & Electric, Southern California Another important topic is energy, Edison and Southern California Gas, along and there are a number of key issues with the county, make up the partnership. surrounding it. I encourage you to explore these issues The locally well-known Tracy Leach and more in this edition of Kern Business informs us on Kern Citizens for Energy and Journal. its role serving as a supportive voice and advocacy group for local energy production. –– Olivia Garcia is the editor of the On another energy front, Kimberly Fleming Kern Business Journal.
Business at-a-glance Solarize Kern County program extended through June Solarize Kern County, a solar
education and group-purchasing program, has extended the group-purchasing price offered by SunRun through the end of June. The program was created to help the community go solar. More than 60 local residents and small businesses are considering going solar through Solarize Kern County. The Kern Economic Development Foundation and the Community Environmental Council partnered with SunRun to lower the barriers of going solar by offering community education and discounted pricing to anyone in the county. “Going solar in Kern County is a great opportunity to save money,” Solarize Kern County Program Manager Jefferson Litten said in a release. “Many Kern residents experience average energy costs over $150 a month, which means that they can see a quick payback for a solar investment. Once the system is paid off, they will get more than two decades of free electricity from their solar panels. With leasing options also available, folks can save over 20 percent in their electricity costs after the first
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month with zero upfront cost.” – Kern Business Journal
A-C Electric Company wins 2015 California Family Business award A-C Electric Company received the 2015 California Family Business of the Year Award bestowed by The Institute for Family Business in conjunction with the Craig School of Business, a division of Fresno State University. The Institute for Family Business seeks to honor family-owned businesses for their longevity and dedication to growing local economies. A-C Electric Company is a thirdgeneration Central Valley electrical contractor that credits sourcing outside expertise, having a strong board of directors and staying true to the company’s family values as keys to the its success. “We want to create better jobs for better people,” said Joe Alexander, A-C Electric Company’s founder, in a release. “It is an honor that these good people have chosen to invest their lives in this company.” Family-owned businesses contribute 57 percent of the U.S. gross domestic product and employ 63 percent of the nation’s
workforce, but only 12 percent of those businesses continue to the third generation. – Kern Business Journal
Local nonprofits receive monetary awards Local nonprofits Marley’s Mutts and the Wounded Heroes Fund of Kern County were awarded over $20,000 each by Braun Electric Company on May 6. The money came via the donations of sponsors and supporters of the Third annual Sporting Clay Tournament that was held on April 10 at the Kern County Gun Club. “It gives us great pleasure to be able to make this contribution to the Wounded Heroes Fund of Kern County as well as Marley’s Mutts,” Braun Electric Company Vice President Kevin Blankenship said in a release. “Both of these nonprofits meet many important needs within our community and we are proud to be able to help support them as a result of our tournament.” This year’s tournament consisted of 55 teams and 266 total shooters, with participants traveling from areas such as Woodland, Coalinga, Paso Robles
and Ventura. The first Sporting Clay Tournament took place in 2013 and had 124 shooters from the local community. The second event in 2014 saw 213 shooters and became an annual gathering, following the blessing of the Braun Electric executive team. – Kern Business Journal
Bakersfield ranks No. 6 for America’s strongest farming, agribusiness regions Bakersfield ranked No. 6 in Forbes’ evaluation of 124 metropolitan statistical areas where agriculture and related industries are heavily concentrated. Rankings were based on shortand long-term job growth in 68 agriculture-related industries, average earnings, earnings growth since 2004 and the share of agribusiness in the local workforce. Bakersfield’s agribusiness job growth increased 44.6 percent since 2004 with 70,559 agribusiness jobs in 2014. The average annual wage was $26,594 with wages increasing 3.2 percent over the last 10 years. Madera, California; Decatur, Illinois; Merced, California; St. Joseph, Missouri; and Yakima, Washington, composed the top five. – Kern Business Journal
Omni provides $7,000 for college-bound high school seniors Omni Family Health granted scholarships totaling $7,000 to seven high school seniors for its annual scholarship program. Kathrine Whitman of Taft High School, Carolina Espinoza of Shafter High School, Jennifer Kandell of Burroughs High School, Cristal Vieyra of Stockdale High School, Juliette Pascual of Centennial High School, and Jennifer Hernandez and Hope Green of North High School were awarded $1,000 each to help them in their pursuit of a career in health care. Omni Family Health has been providing support and encouragement to local high school seniors interested in health care careers for 15 years. To be eligible, students must reside or have graduated from a school within an Omni Family Health service area, express an interest in the health care profession, graduate the year an award is presented and have a GPA of 3.5 or higher. – Kern Business Journal
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KERN BUSINESS JOURNAL
Chamber Roundups
June / July 2015
June / July Events
Greater Bakersfield Chamber of Commerce June 12, 19 – Government Review Council; 7:30-8:30 a.m.; Greater Bakersfield Chamber of Commerce, 1725 Eye St. June 26 – Chamber Social; 6-10 p.m.; Advanced tickets $45; At the door $55; Kern County Museum, 3801 Chester Ave.
July 3 – Chamber Closed – Independence Day.
July 10, 17, 24, 31 – Government Review Council; 7:30-8:30 a.m.; Greater Bakersfield Chamber of Commerce, 1725 Eye St.
July 9 – Quarterly Labor and Employment Law Update Forum; Check-in/networking, 7:30 a.m.; Forum, 8-10 a.m.; Free for members; $40 for nonmembers; Greater Bakersfield Chamber of Commerce, 1725 Eye St.
Kern County Supervisor Mick Gleeson, whose district covers Oildale and the high deserts, will be in attendance and host the Installation portion of the event. Installation and Awards Ceremony 11:30 a.m. to 1 p.m., June 11, Hodel’s Country Dining $20 for members $25 for nonmembers Includes lunch The North of the River Chamber of Commerce Economic Conference takes place on July 30 and brings together leaders in the industry for a symposium on the biggest issues affecting Kern County
July 29 – Social Media Therapy; Check-in/ networking, 11:30 a.m.; seminar, noon to 1 p.m.; Cost is $20 for members; $40 for nonmembers; Greater Bakersfield Chamber of Commerce, 1725 Eye St.
July 14 – State of the City; Check-in/networking, 11:30 a.m.; Forum, noon to 1:30 p.m.; $45 for members; $60 for nonmembers; Bakersfield Marriott at the Convention
North of the River Chamber of Commerce The North of the River Chamber of Commerce is busily preparing for two of its biggest events of the year. From welcoming a new leadership team to providing a forum for local business leaders to network and learn about the most significant issues affecting Kern County’s economy, the summer of 2015 is going to be filled with opportunity. The North of the River Chamber of Commerce Installation and Awards Ceremony takes place June 11 at Hodel’s Country Dining. The event will introduce the 2015/2016 board of directors to the general membership and will award the volunteer of the year, member of the year and business of the year for 2014/2015.
Center, 801 Truxtun Ave.
businesses and residents. Agenda topics include high-speed rail, agriculture and changes taking place at Rabobank Arena, such as plans from new management team AEG and the Bakersfield Condors’ new AHL affiliation with the Edmonton Oilers. North of the River Chamber of Commerce Economic Conference 11 a.m., July 30, The Liberty Hall at Hodel’s Country Dining Sponsorships and tables are still available Individual tickets $50, includes lunch For more information or to reserve your seat contact Vanessa Emo at vanessa. emo@bakersfieldmarriott.com
Kern County Hispanic Chamber of Commerce June 11 – KCHCC Business Networking Mixer; The Bell Tower Club; 5:30-7:30 p.m.; Hosting by attorney David A. Torres and Gotta Go Bail Bonds; $5 KCHCC Members; $10 Nonmembers June 27 – KCHCC Grand Opening & Ribbon Cutting Ceremony, Chat ’N’ Chew, 2129 Brundage Lane; Noon; No charge
Energy Independence
Kern County prospers by powering state By Frederick Prince and Blodgie Rodriguez
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e don’t get the credit we deserve but Kern County powers the state. Our valley is blessed with an abundance of natural resources and we are generating the energy needed to keep California moving. More than threequarters of all the oil produced in California comes from the San Joaquin Valley. In fact, Kern is the largest-producing Frederick Prince county in not only the valley but the entire state. Oil production has been a key part of our economy for more than a century. Locally, nearly Blodgie Rodriguez 50,000 jobs are a result of the oil and gas industry. The petroleum industry contributes almost 20 percent to the county’s gross domestic product and accounts for more than 5 percent of total employment.
Responsible oil productions also generate $10.7 billion in business sales and $1.2 billion in state and local taxes. These taxes help fund vital services that our community relies upon, such as our schools, libraries, police officers and firefighters. It probably doesn’t come as a surprise that California has the strictest environmental regulations in the nation governing oil and gas production. Here in Kern County, 16 local, state and federal agencies oversee domestic oil production. In fact, the Obama administration modeled its hydraulic fracturing rules after California’s laws because they are so stringent. Sadly, the toughest environmental protections are simply not enough for out-of-town extremists who are pushing policies that would effectively stop oil production in California. At a statewide level, this would result in a greater reliance on imported oil produced with weaker standards. To those of us who call the valley home, the impacts would be devastating. Thousands of jobs, and the tax revenues those jobs generate, would be on the chopping block. In fact, just this year, Kern County had to declare a fiscal emergency when oil barrel prices dropped unexpectedly.
We represent hundreds of small-business owners who rely upon oil and gas industry workers as customers. If those industry jobs are eliminated as a result of bans on responsible production, our members would see their bottom lines sink into the red. As a result, they may be forced to shutter their businesses and their employees would be out of work.
More than three-quarters of all the oil produced in California comes from the San Joaquin Valley. In fact, Kern is the largest-producing county in not only the valley but the entire state. This would also put the county in a precarious situation where the county would have less revenue to pay for an increased demand in services.
A study done by Fresno State University found that increasing responsible oil production would create up to 195,000 new jobs in the valley. Researchers found that personal income in the San Joaquin Valley could top $22 billion and sales taxes could reach $6.7 billion locally. Imagine the possibilities. By powering the state, Kern County would have the ability to empower itself. Desperately needed quality jobs would come to our region and we would have more resources for our classrooms so that our students are prepared for a thriving local workforce. Producing energy locally reduces our reliance on foreign oil, which benefits the entire state. But there are important benefits much closer to home. By allowing Kern County to power the state, our local communities prosper. — Frederick Prince has nearly two decades of career expertise in the financial and insurance services industry and currently serves as the chairman of the Kern County Black Chamber of Commerce. — Blodgie Rodriguez, a third-generation Kern County resident, has been a local realtor for more than a decade and currently serves as the chair of the Kern County Hispanic Chamber of Commerce.
June / July 2015
KERN BUSINESS JOURNAL
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June / July 2015
Navy chemists earn national recognition By Brian Wulfekotte
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hemist Dr. Benjamin G. Harvey and colleagues Walter W. Merriman and Thomas A. Koontz received national acclaim in March for publishing an article citing their creation of a renewable, high-performance biofuel at the Naval Air Warfare Center Weapons Division at China Lake in eastern Kern County. Their paper, “High Density Renewable Diesel Fuels Prepared from Multicyclic Sesquiterpenes and a 1-Hexene Derived Synthetic Paraffinic Kerosene,” was named an American Chemical Society “Editors’ Choice” article after its publication in the ACS journal “Energy and Fuels.” “Chemical and Engineering News,” the world’s most read chemical news magazine, also highlighted the article in its print and online magazines that reach more than 161,000 ACS members. “I was thrilled to have our work recognized both by the ACS and ‘Chemical and Engineering News,’” said Harvey. The ACS publishes nearly 40,000 papers a year and less than 1 percent of those papers get selected for this honor, so I’m both pleased and humbled by the acknowledgement. I think it reflects well on my
colleagues and the quality of work being conducted here at China Lake.” Harvey explained that new fuel is generated by combining two types of molecules. High-density cyclic molecules called sesquiterpenes can be derived from clove oil or produced from waste biomass using yeast or E. coli as miniature biorefineries. The sesquiterpenes are then transformed using an NAWCWD proprietary process and combined with jet fuel surrogate molecules that can be synthesized from bioethanol. The combination of these two types of molecules resulted in a fuel that has both high density and the combustion properties required for diesel engines. Adoption of these fuels would increase the range and loiter time of weapon platforms, including unmanned aerial vehicles that are turning away from conventional gasolinebased engines to diesel. “Diesel engines can be up to 50 percent efficient, while gasoline engines are typically 25 to 30 percent efficient,” said Harvey. “When you couple that with the higher volumetric energy density of our fuels, the range and flight time of a UAV can be dramatically improved.” The fuels are currently being produced on the liter scale to support small-scale testing, and NAWCWD is working with
commercial partners to further develop this technology. “The study laid the groundwork for a new class of bio-based, designer fuels,” said Merriman. “There have been tremendous strides in gasoline alternatives over the last few decades. But here, the Navy has demonstrated high-density fuels with “tunable properties” relevant to weapon systems and other specialized applications.” Merriman, a recent NAWCWD hire, spent six months working in the Chemistry Division in 2014. Koontz is a former summer student and Naval Research Enterprise Internship Program fellow. PHOTO BY MARK P MCCOY Harvey also collaborates with the San Diego-based company Dr. Ben Harvey, left, and Walter Merriman discuss the production of biosynthetic fuels at the Naval Air Warfare Allylix through a cooperative research and development agree- Center Weapons Division at China Lake. ment signed by NAWCWD ComDivision has been conducting research mander Rear Adm. Mike Moran last year. on renewable jet fuels and high-density The agreement is supported by a grant turbine fuels since 2007. This has led to a from the Advanced Research Projects broad portfolio of patents, many of which Agency – Energy, a congressionally-funded are currently being licensed. organization modeled after the Defense Advanced Research Projects Agency — Brian Wulfekotte is a writer in the public within the U.S. Department of Energy. affairs office of the Naval Air Warfare Center, The Chemistry Branch at the Weapons Weapons Division, at China Lake.
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June / July 2015
Energy
Biomass plants producing energy, cleaning air By Dianne Hardisty
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akersfield Assemblyman Rudy Salas is the co-author of a bill that aims to rescue California’s disappearing biomass energy industry. The Democratic assemblyman has joined forces with Republican Assemblyman Brian Dahle of Bieber to introduce AB-590, which would require revenue the state receives from its greenhouse-gascurbing programs, to be shared with the biomass energy industry. Much of the state’s efforts to develop “green energy” are now focused on such renewable technologies as wind and solar. Biomass, which Dianne Hardisty has benefits that extend beyond energy generation, is being left out of the process, according to industry supporters. Energy-generating biomass plants gained popularity about 40 years ago as an alternative way to generate electricity,
as well as to reduce the pollution being caused by the open burning of crops and trees in the state’s agricultural fields and forests. In their heyday in the 1970s and 1980s, California had about 66 direct combustion biomass facilities. But as the price of natural gas declined and government incentives shifted to wind and solar, utilities moved away from purchasing power from biomass plants. There are only about 30 plants today, and only two are in Kern County. According to a legislative analysis, California’s biomass plants produced at their peak 800 megawatts of electricity. By 1996, the energy production dwindled to 590 megawatts. In addition to competition from subsidized wind and solar developments, the decline was caused by the expiration of price supports and incentives the state had provided to the biomass industry. Some critics contend the demise of California’s biomass plants is good for the environment. They note that these plants are more polluting than solar and wind energy generators. But supporters of the industry, including many in agriculture,
PHOTO BY CASEY CHRISTIE
Stuart Welch, Mt. Poso's environmental health and safety manager, gives a tour of the biomass facility. In 2012, the Mt. Poso Cogeneration Plant north of Bakersfield underwent a $50 million conversion to burn only wood waste to generate electricity.
point out that more than energy generation should be considered. “California is in danger of losing the one asset it has to divert forest fuel reduction residues and other wood waste materials today,” the bill’s authors noted. “In the last 12 months alone, California has closed five biomass facilities due to
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expired contracts and poor economics. That’s a loss of 108 megawatts of baseload renewable power and hundreds of jobs, both at the plants and in the fuel supply infrastructure. “By 2020, when the state is mandated Continued to page 9
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Continued from page 8 to procure 33 percent of its electricity supply from renewable, intermittents [wind and solar that produce only when conditions are favorable] could account for some three-quarters of total renewable, while half of the biomass plants in the state will be closed.” And if these plants keep closing, farmers wonder how they will dispose of trimming and other field wastes. Will pollution-causing open burning of fields resume? Biomass critics claim composting
Assembly bill 590 would allow the Greenhouse Gas Reduction Fund to be shared with the biomass energy industry in California, supporting existing plants and restarting others that have closed. may be a better way of disposing of wood waste. Research regarding composting on a large scale is underway. Others contend wood waste should be sent to landfills. But the volume of waste from the state’s farms
exceeds the capacity of landfills. Beatris Espericueta Sanders, executive director of the Kern County Farm Bureau, said her organization is awaiting the outcome of legislative hearings before taking a position on AB-590. “The best option for the Central Valley, in terms of air pollution, is not to burn,” she said. “It’s still early. We are watching the bill. It affects Kern County growers substantially.” California’s long-term drought also heightens concern over the need to have biomass plants to help dispose of wood waste. As water supplies diminish, some farmers are pulling up their permanent tree crops. Dry, fire-prone forestry waste also is being removed. In addition to agricultural waste, the Covanta Energy plant, near Delano and Highway 99, and the Mt. Poso Cogeneration Co. plant, north of Bakersfield near Famoso Road, help dispose of urban “green waste,” such as trimmings collected from Bakersfield and Kern County. In 2012, the 38-employee Mt. Poso Cogeneration plant underwent a $50 million conversion from being coal-fired to running only on wood pulp. The plant now generates enough electricity to power
PHOTO COURTESY OF COVANTA
Located near Delano, Covanta Energy’s 50-megawatt plant employs 50 full-time workers and burns more than 1,200 tons of biomass per day. The plant has the capability of producing enough electricity to power 45,000 homes.
30,000 homes. It also produces steam for injection into nearby oil fields. The water used in the multi-purpose Mt. Poso plant to create the steam is “produced” in the oil fields. Mt. Poso is a 50-50 partnership of Santa Monica-based Macpherson Oil, California’s eighth largest oil producer, and DTE Energy Services based in Ann Arbor, Michigan.
A 50-megawatt renewable power plant, Covanta Energy has 50 full-time employees and has the capability of generating power for more than 45,000 homes. It has a $5 million annual payroll and accounts for an additional 100 indirect jobs in the fuel supply chain. Company officials estimate it contributes $20 million annually to the local economy. It burns about 1,200 tons of biomass per day.
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KERN BUSINESS JOURNAL
June / July 2015
Energy efficiency at your fingertips By Kelly Damian
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nergy efficiency does not generally occupy top-of-themind awareness for most people. We flip the light switch, turn on the TV, pop dinner in the microwave all the while giving little thought to the energy required to power these modern conveniences. The average American consumer spends $2,200 each year on home utility costs. With a rate increase of approximately 4.8 percent each year, one can safely assume an American family will spend $27,385 over the course of a decade on energy bills alone. Multiply that number by how many years an average adult might have left on earth and the money spent on energy bills will total well over $100,000. The good news is that you have much more power over your energy costs than you realize. For maximum savings, Kern Green recommends you start with your biggest energy user first: your heating, ventilation and air conditioning, or HVAC, system. Call a professional to clean your system at
Approximately 13 percent of home energy usage goes to powering appliances. The top three energy hogs in this category are the water heater, the clothes dryer and refrigerator. least once a year, replace air filters every three months and keep ground units clear of weeds and debris. Also, take steps to prevent the sun from heating up your house in the first place. Deciduous trees planted along the south side of your house can reduce your HVAC costs by 15 to 50 percent. (Deciduous trees are recommended so that the sun can warm your home in the winter.) Solar screens and awnings are low-tech ways to keep your house cool in the summer. In general, lighting accounts for about 12 percent of a home’s utility usage. LED lights cost more upfront but result in significant lifetime savings due to their low operating cost. Consider the fact that
the average home has about 40 lightbulbs. The cost over 30 years to light a home is $15,720 for incandescent bulbs, $5,000 for compact fluorescent bulbs and only $3,080 for LEDs. Another advantage to LED lightbulbs is that they lose very little energy to heat, which can account for lower air conditioning usage. Approximately 13 percent of home energy usage goes to powering appliances. The top three energy hogs in this category are the water heater, the clothes dryer and refrigerator. Oftentimes, the water heater sits forgotten in the corner of the garage, quietly heating water and wasting money day and night. Get in the habit of checking in on your water heater. When you go out of town, put it in “vacationâ€? mode, or turn the temperature way down. In the summer, when hot showers are not very enjoyable, turn the temperature lower and raise it in the winter when hot water is needed. Likewise, adjust the temperature on your refrigerator to 38 degrees, or the warmest setting possible that still keeps your food fresh.Â
With all other appliances and technological gadgets, the rule of thumb is to turn them off at night and unplug whenever possible. As an alternative, you can plug all of your appliances into a power strip and turn the power strip off, thus preventing them from drawing energy even when they are turned off. Many of us think of our energy bills as a fixed expense, but that is not the case. Kern Green encourages you to do some research, take action and become energy efficient. — Kelly Damian works for Kern Green as a program representative for Energy Upgrade California. Kern Green is an environmental nonprofit that works to educate Kern County residents on matters of the environment and encourages citizens to make choices that promote a sustainable future for everyone in the Central Valley.  Â
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NAPD breaks ground on new facility By Maureen Buscher-Dang
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nder cloudy skies, New Advances for People with Disabilities (NAPD) broke ground last month at the new Center for Creative Achievement, a 17,000-square-foot facility that will be built on Brittan Street, west of North Sillect Avenue. The new facility, which will open in 2016, will replace a much smaller and Maureen Buscher-Dang older center now located in downtown Bakersfield. The new facility will better accommodate more than 180 adult clients enrolled in a wide range of programs and allow the expansion of creative and performing arts activities. The state-of-the-art “green” facility will include gardening and outdoor recreation areas and an indoor health and wellness center. Activities and classes will include drama, art, music, computer
literacy and cooking. The theater and multipurpose room will have a fully equipped raised stage for client productions. “This is an exciting time for our clients with the construction of this new facility,” said Darla Benson, NAPD’s executive director, at the groundbreaking. “NAPD has been an integral part of this community since 1979. We believe in making a difference in the daily lives of our clients.” NAPD client Richard Rodriguez gave an emotional speech during the groundbreaking. “As you all can see I am using a communication device for this speech. NAPD introduced me to the world of technology and helped me with an iPad,” Rodriguez said. “Basically, the only communication I have used for over 45 years before my iPad was my limited sign language and speech. … It opened a new world and gave me opportunities I never had before.” Assembly member Shannon Grove presented a resolution and spoke during the groundbreaking in support of the new facility.
Resolutions passed by the California Senate were presented by Romeo Agbalog, representing Sen. Jean Fuller, and Michael Bower, representing Sen. Andy Vidak. Keenan Hochschild presented a certificate of recognition from Rep. Kevin McCarthy. The new $4.1 million Center for Creative Achievement is being designed by Bakersfield architect Paul Dhanens and constructed by S.C. Anderson, Inc., a Bakersfield general contractor. A “legacy campaign” has been launched to help complete the outside gardening greenhouse, provide equipment for the stage and multipurpose room, and to purchase outdoor tables and chairs. NAPD already owns the land and set aside funds to improve existing facilities and build new ones. Grants and community support assist NAPD to provide extensive services to Kern County children and adults with intellectual and developmental disabilities. The “legacy campaign” provides naming and sponsorship opportunities for individuals and companies interested in helping
equip and furnish the new Center for Creative Achievement. Among the rooms available for naming are the fine and performing arts center, music center, health and wellness center, computer lab, culinary skills center, learning center, theater and multipurpose room, and senior activity center. The theater and multipurpose room in the new center will have a raised and lighted stage. The entire facility will give greater emphasis on wellness, fitness and athletics. Future plans call for inclusion of a greenhouse and
June / July 2015
involvement of the agricultural community in NAPD’s programs. A nonprofit in Kern County for more than three decades, NAPD has more than 14 programs to meet the daily needs of more than 500 children and adults with intellectual and developmental disabilities. Programs range from adult day programs and children’s after-school programs, to financial literacy and supported living services. — Maureen Buscher is a Bakersfield public relations consultant. Her clients include New Advances for People with Disabilities. Information on NAPD’s naming and sponsorship opportunities can be found at napd-bak.org.
PHOTO BY JOHN HARTE DIGITAL PHOTOGRAPHY SERVICES FOR NEW ADVANCES FOR PEOPLE WITH DISABILITIES
Members of the New Advances for People with Disabilities board of directors, clients and Assembly member Shannon Grove break ground for the new NAPD facility, scheduled to be completed in the spring of 2016.
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Online banking brings convenience, safety concerns By Stephen M. Annis
A
s technology advances, online banking is becoming easier and increasingly popular with Americans. A 2014 survey commissioned by the American Bankers Association revealed that 31 percent of the 1,000 customers polled prefer to do their banking online, with many using mobile devices that they likened to having a bank branch in their pockets. Another recent survey by BioCatch, an international behavioral biometrics, authentication and malware-detection Stephen M. Annis company, revealed that 36 percent of banking in the U.S. and the United Kingdom is being done online, with 29 percent on mobile devices. Brick-and-mortar bank branches remain integral components of the full range of services community banks, such as Bakersfield-based Valley Republic Bank, offer their customers. There are critical times when individuals, professionals
and business owners must sit down with their bankers and work out complex financial issues; there are times when a financial partner is needed to help create a client’s successful future. Community banks focus on offering this type of relationship banking, which can only be found at local branches. But bank customers also are increasingly enjoying the ease, flexibility and responsiveness of online banking, which provides 24/7 access to banking information, allows customers to receive credit card and utility statements electronically and permits customers to pay bills electronically rather than by writing paper checks. Paying electronically can lower expenses and also protects customers from criminals intercepting checks. Valley Republic Bank is committed to offering customers the latest in online banking services. But it also is committed to making these services as secure as possible. This requires customers and bankers to work together to thwart criminals. Banks can install security systems that detect unusual and possibly criminal behavior. But that’s not enough. Staff must help customers understand their security vulnerabilities and how they can
protect themselves. Some security tips we offer Valley Republic Bank customers include: Use a strong password.
Access to online services generally requires a user-generated password. Make it long and include a mix of upper- and lowercase letters, numbers and “special characters,” such as question marks, dollar signs, etc. Avoid using your name, birth date or personal information. Consider changing your password regularly. Never share account or password information. Every person who has access to a computer should have his or her own separate account, protected by a strong password. Select a security question.
Most access systems require you to answer a security question, such as, “What was the name of your first pet?”
Your answer does not have to be truthful. It just needs to be one only you can give. Banks also offer two-factor authentication for online banking. For example, the system might be tied to your smartphone. Each time you log in, the site texts you a code that you must enter in addition to your password. Select your network.
Avoid doing online banking when connected to a network you don’t control. The guy sipping a latte at a corner table in a coffee shop may be electronically eavesdropping; or the cafe owner may have installed a traffic monitor. If such public connections cannot be avoided, VPNs, or virtual private networks, such as CyberGhost, VPNBook, Private Internet Access and Norton Hotspot Privacy can make logging in safer. If you are using a cellphone to do your online banking, use your cellular data plan, rather that a public Wi-Fi for more security. Continued to page 15
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Teen-LED Lab at the Beale Memorial Library helps teens learn, explore and discover By Maria Rutledge
K
ern County Library seeks to help teens in Kern County gain vital 21st century skills by offering them relevant afterschool programs and a well-designed space where they can learn, explore and discover STEM (science, technology, engineering and mathematics) concepts. The launch of the Teen-LED (Learn Explore Discover) Lab at the Beale Memorial Library, a project partially funded by a grant from the California State Library, will make this possible. The “LED” in Teen-LED Lab is a backronym; it’s an acronym for learn, explore, discover but it also refers to the lab as being teen-led. The outcome of the five-day STEM camp that Beale Memorial Library offered last year to sixth and seventh graders was very encouraging. At the end of that camp, teens told us they enjoyed the program because they learned new things, it was fun, it fostered creative thinking and it allowed them to meet new people. The teens overwhelmingly expressed enthusiasm in participating in similar or more advanced programs in the near future. Like the STEM camp, the Teen-LED Lab will provide fun learning and creative thinking and promote social skills among teens. However, unlike the STEM
Camp which was a five-day program limited to 22 participants, the Teen-LED Lab will be open more hours and will accommodate more after-school programs. In May 2015, we will launch the Teen-LED Lab along with two weekly programs: Mindstorms Mondays and 3-D Thursdays. In Mindstorms Mondays, teens will buddy up and build programmable machines and present their creations in a show-and-tell program – an excellent opportunity for teens to hone their public speaking skills and foster a spirit of competition and innovation. In 3-D Thursdays, teens will learn how to create 3-D designs using a computer application called Autodesk 123D Design under the guidance of trained teen mentors. Last April, the library’s first cadre of volunteers was trained on Autodesk 123D by professor Willis of the Bakersfield College Industrial Drawing and Architecture Department. In the coming months, other “maker” programs will be offered in this Teen-LED Lab. To participate in any of these after-school teen programs or to get more information, contact the Beale Memorial Library at 868-0701. — Maria Rutledge is head librarian of the Beale Memorial Library and coordinator of the Teen-LED (Learn Explore Discover) Lab project.
PHOTO COURTESY OF BEALE MEMORIAL LIBRARY
Teen-LED Lab at Beale Memorial Library.
June / July 2015
Continued from page 13 Secure mobile device.
Use a screen lock to keep your phone and information secure. Avoid using your mobile device to store sensitive personal information, such as bank account numbers. Consider installing software that will allow you to remotely “wipe” your device of all data should it be lost or stolen. Stay alert.
Monitor your bank account activity daily. Utilize online banking services, which will give you the tools you need to implement daily monitoring. Watch for scams.
Valley Republic Bank will NEVER call or email customers asking for confidential personal information. If you receive an email that appears to be from your bank, treat it with suspicion. It could be a phishing attempt to trick you into revealing your access information. Do not click on unfamiliar links, which could be used to steal your username and password. Log out.
When you have finished an online banking session, log out.
KERN BUSINESS JOURNAL
Sign up for notifications.
Some banks will notify customers by text or email when certain online activities have occurred. Examine your computer.
If you receive a computer that is not brand-new, reformat the hard drive and reinstall the operating system before using it. Update the operating system with the most current patches and updates, as these often contain security “fixes.” Install, update and enable anti-virus and firewall software. None of us are immune to identity theft and fraud. Be vigilant. Regularly access the controls within your bank accounts, review both paper and electronic account activity, and use a strong password that you change occasionally. If you wish to discuss your security concerns and the steps you can take to protect yourself, visit a Valley Republic Bank branch.
— Stephen M. Annis is Valley Republic Bank’s executive vice president and chief financial officer.
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June / July 2015
Technology impacting the farm industry By Beatris Espericueta Sanders
T
he story of Kern County agriculture dates back to the gold rush in 1848, where some settlers found a wealth of fertile soil south of San Francisco – richer than gold, a land full of reverence without apology. Early farmers learned quickly how to manage the water from the Kern River as it ripped though the Central Valley, watering the earliest crops like cotton, carrots and potatoes. Generation after generation, family farms have taught the next generation the most efficient ways to reap the land, maximizing high yields. As it was in the mid-1800s, agriculture remains an abundant economic industry for Kern County. In the last 20 years, many Kern County farming operations have pursued the most efficient tools to manage their farmland. As the technology boom peaked in the 1990s, growers also learned quickly how to use technology to benefit farming operations. Most recently, one of the most water-saving Beatris Espericueta Sanders technological contributions has been real-time soil moisture monitoring. This tool helps growers make irrigation decisions as it monitors depths from 6 to 60 inches deep into the soil. Growers can adjust water flow according to soil moisture, minimizing any water waste throughout their farming operations. Along the same lines as soil moisture monitoring, growers also are beginning to use technology on their agriculture water wells and booster pumps to ensure the most advanced pumping efficiency for irrigation. The water well monitoring devices measure the flow, pressure, standing and pumping levels, and power usage resulting in automated real-time costs per acre-foot. Lubricating oils for bearings and shaft oil can also be monitored real time so that if a pumping issue arises, the owner can be notified before expensive damage occurs; software is
available for organizing the data. By using these well monitors, growers are able to be more diligent with their energy usage on their farms, meanwhile practicing a cost-saving tool for their overall crop production. Another technology-advanced tool many growers have been using are tractors equipped with a GPS system for “hands-free guidance.” Often during the peak of the foggy season or night shifts, these GPS tractors can be guided hands-free by GPS to pull straighter rows when row cropping and/or developing orchards or surveying the land. GPS guidance has made vast improvements regarding buried drip irrigation that remains in the ground for multiple years for row cropping. GPS results in fewer passes across fields saving fuel used per acre, which reduces emissions and overall farming operation costs to the grower. Communication technology has changed farming practices as well. Up until 10 years ago, most communication was done via phone, radios and fax. Now with email and texting, the transfer of information and Internet-based services has streamlined the efficiencies of communication and information transfer. This is a major component to successful farming operations as we are able to do more productive work with less time input. Soon, agriculture may be on the brink of yet another technological cost-saving tool: agricultural drones. As drones become more of a topic of conversation throughout the U.S. military and even U.S. consumer delivery, agricultural minds are also dipping into the possibility of drones being used to survey land and advanced precision in pesticide spraying. It is very clear that the first settlers in the 1800s had a vision when they began to reap the fertile soil in Kern County, making it an agricultural paradise for generations to come. The determination that brought the first farmers here is the same determination that will keep future generations farming with more advanced efficiency and knowledge using a very important tool: technology.
PHOTO COURTESY OF KERN COUNTY FARM BUREAU
Kern County Farm Bureau’s “generational teaching.” — Beatris Espericueta Sanders is the executive director of the Kern County Farm Bureau and also daughter of a farming family in Shafter. She is a graduate of Northern Arizona University and spent five years working in New York City for the global financial consulting firm McKinsey & Company.
New law focuses on sick pay accrual By Jerry Pearson
Beginning July 1, employees who work in California for 30 days or more within a year will accrue sick pay, thanks to the Healthy Workplaces, Jerry Pearson Healthy Families Act of 2014. The act, signed by Gov. Jerry Brown on Sept. 10, applies to employers regardless of size, with only a few enumerated exceptions. Effective dates The employer’s obligation to provide paid sick leave under the law does not take effect until July 1. However, on Jan. 1, covered employers were required to: • Post in a conspicuous place at the workplace a poster containing various requirements under the law.
•
Issue newly hired nonexempt employees an updated “Notice to Employee” (required under California Labor Code section 2810.5) that includes paid sick leave information.
paid sick time after working 30 days, the employee may not use it until the 90th day of employment. An employer may, at its discretion, lend paid sick leave to an employee in advance of accrual if “proper documentation” is maintained.
• An employer may set a minimum increment for the use of paid sick leave of no more than two hours.
• Employers are not required to pay out accrued but unused sick leave. However, if the employer uses a PTO policy, that PTO policy might be subject to payout • An employer may cap an employee’s under California law. If the employee annual use of paid sick leave to 24 is rehired within one year, the employee hours per year. Similarly, an employer is entitled to reinstatement of the accrued may choose to cap an employee’s annual but unused sick time. For additional information on the act, or to have your accrual of paid sick leave to 48 hours current sick leave or paid time off policy per year. reviewed to see if it complies with the requirements of the new law, contact an • Accrued sick leave shall carry over to • An employee who is exempt from the following year, although an employer employment law professional. overtime requirements is “deemed to work may limit an employee’s use of paid sick 40 hours per workweek” for purposes of days to 24 hours or three days in each — Jerry Pearson is a Partner at Young sick leave accrual unless the employee’s year of employment. No accrual or carry Wooldridge, LLP. He specializes in labor normal workweek is fewer than 40 hours. over is required if the full amount of leave and employment law and manages the firm’s is received at the beginning of each year. business department. • While an employee starts accruing Highlights • Employees who, on or after July 1, 2015, work in California “for 30 or more days within a year” are entitled to accrue paid sick leave at the rate of “not less than one hour per every 30 hours worked.” This means that a full-time employee working 40 hours per week could accrue up to 8.67 days of paid sick time per year.
June / July 2015
KERN BUSINESS JOURNAL
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Kern County: PG&E energy auditors help businesses become energy smart By Tracy Correa
P
G&E’s Maggie Werner looks closely at everything from lightbulbs to refrigeration units inside Kern County businesses. She’s an energy auditor, working with small-and medium-size businesses to help them become more efficient and lower their monthly energy bills. Sometimes, she gets leads on momand-pop restaurants and liquor stores that could benefit from an audit; other times, she walks right in and Tracy Correa asks if she can take a look around at lighting, HVAC units or refrigeration. Businesses are often skeptical when she offers to find rebate and incentive programs to help cover the costs of upgrades. “They can’t believe that a big company like PG&E will give them such individualized attention to help them save money,” said Werner, whose official title is customer relationship manager. She is part of PG&E’s energy solutions and service department.
Many businesses are unaware that public-purpose programs – funded by a small surcharge on customers’ utility bills – can cover some energy-efficient upgrades. Recently, she visited Bleu Lavender, a downtown Bakersfield women’s boutique. She first met owner Katrina Wyatt at a Black Chamber of Commerce Business Expo. Wyatt was surprised when Werner found a state program that provided her store with energy-efficient lightbulbs – at no cost to her. “Any way a small-business owner can save money is good. You hear about programs, but you don’t always know how to access them,” Wyatt said, as Werner inspected recently installed lightbulbs. Werner found a program that provided Bleu Lavender with 31 recessed lightbulbs that use 14 watts, compared to the 65-watt bulbs she had been using. The new LED lights provide even better lighting for her clothing displays. She also received energy-efficient LED bulbs for the track lighting above the cash register. “I just want to operate as energy efficiently as I can,” Wyatt said. Later, Werner visited Sole 2 Soul Sports and a locally owned liquor store
PHOTO COURTESY OF PG&E
PG&E's Maggie Werner, right, inspects energy-efficient lightbulbs with Katrina Wyatt, owner of Bleu Lavender in Bakersfield.
near a busy highway; both are in Bakersfield. Her iPad is a constant companion as she inputs information to find the most compatible energy-efficient programs for each business. At Olive Drive Liquors, owner Shawn Singh told her his energy bill soared to $2,500 last summer when valley temperatures lingered in triple digits. The aging building isn’t as energy efficient as it could be. Werner found the business was on an incorrect rate for its usage and told the owner she would move him into a different rate that will save him about $2,000 a year. She also recommends replacing outside lighting. Staples Energy, a third-party PG&E contractor, can offer information on more upgrades, including refrigeration
units, she said. “A small business has to do whatever is possible to save money. This is all I have,” said Singh. The best part of her job, Werner said, is helping customers whose livelihoods depend on their businesses. “If I can help them save money on their bills, plus connect them with programs and rebates that help cover the cost of their project, it’s a win-win for everyone,” she said. PG&E offers more information for business customers at pge.com. — Tracy Correa is a Bakersfield-based senior communications representative at PG&E and a former reporter at The Fresno Bee.
Energy-saving tips Lighting
HVAC
Office Equipment
percentage of all electricity used in United States commercial office buildings – that’s 26 percent. • Retrofit T12 lights with magnetic ballasts to T8 lights with electronic ballasts. • Consider LED lighting products, which have the potential to last two to three times longer than traditional fluorescent lamps. • Consider LED troffers, which are on average 44 percent more efficient than typical fluorescent troffers. • Clean dusty diffusers and lamps every six to 12 months for improved lumen output. • Replacing outdoor fixtures with LED lighting can reduce your energy and maintenance costs while improving light quality. • Replace incandescent lightbulbs with LED lamps. • Install motion detectors to control lighting in frequently unoccupied areas, such as restrooms.
• 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. • Businesses can save as much as 10 percent a year on heating and cooling by turning the thermostat back 7 to 10 degrees for eight hours a day from its normal setting. • Install electronic time clocks or setback programmable thermostats to maximize efficiency. • Install locking covers on your thermostats to prevent employee tampering with temperature settings. • Regularly clean condenser coils, replace air filters, and check ducts and pipe insulation for damage. • Enhanced HVAC upkeep can lower maintenance costs by up to 40 percent while helping avoid expensive emergency repairs and accelerated unit replacement. • Install ceiling fans.
• Turn off all office equipment and lights every night and weekend. If you can’t turn off the entire 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.
• Electric lighting accounts for the largest
For questions regarding your businesses, please call: PG&E’s Business Customer Service Center at 800-468-4743. For more information on our business energy efficiency solutions, please contact a local PG&E representative: Maggie Werner: 398-4554, email: MCWI@pge.com or Robert Flores: 398-4549, email: RAFP@pge.com.
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Social media: Today’s workplace watercooler By Holly Culhane
S
ocial media today is what the workplace watercooler was “back in the day.” It’s a place where workers gather to share snippets of their lives and to gossip and grouse. However, there is a big difference. The words whispered around the watercooler 10 or 20 years ago were seldom overheard by the boss and they lasted only in the minds of participants. Words posted on Facebook, Twitter and all sorts of social media platforms have a permanence that can come back to haunt. Workers’ rights regarding social media activities have evolved in recent years, mainly through court rulings. Employers or potential employers once could demand access to the social media accounts of job applicants and employees. Today, that is off limits. Courts have ruled these accounts can Holly Culhane be private. Most recently, several attempts to fire or discipline employees for what they post have been rebuffed by the National Labor Relations Board. These rulings have been upheld by the courts. My advice to employers when it comes to their workers’ social media activities: Tread carefully. Consider a recent case involving a waitress and cook who worked at a Waterbury, Connecticut, sports bar and grill. The workers were fired when one posted on Facebook an expletive-laced complaint about how taxes were being withheld
from their paychecks. The other employee “liked” the post. The employees appealed their firings to the NLRB, which ruled last August that the Facebook postings were protected “concerted activity.” It was the “protected” behavior of employees jointly seeking to resolve a perceived workplace problem. The NLRB ordered that the employees be reinstated and given back pay and that the company rescind or revise its social media policy to protect this type of concerted activity. Basically, employees are allowed to vent on social media about their jobs and working conditions, which the NLRB has likened to workers organizing to resolve workplace problems or to improve working conditions. Employers can fume about such postings. But they cannot retaliate by firing, suspending, demoting, withholding pay or denying promotions to employees who engage in such activities. However, there are limits to this “free expression.” Employees cannot post onto Facebook or other social media sites comments that damage a company, or disparage its products, services or clients. They cannot reveal trade secrets or financial information, or urge insubordination, such as promoting a work stoppage. Posts that are considered to be racist, homophobic, sexist or discriminating against a religion also are not “protected,” especially when they suggest that the company shares or condones the views. There are “gray areas,” where competing motives can overlap. For example, general venting about work may devolve into insults about another employee’s or supervisor’s dress, appearance, speech, etc. These posts likely would
not be “protected.” Case law continues to be made regarding employees’ social media activities. Even the Waterbury, Connecticut, case is still unresolved. The NLRB decision has been appealed to a federal court, where a ruling is pending. And as the technology changes and social media forums expand, likely additional interpretations of employee rights in this area will be made. Even the NLRB has upheld some instances of discipline or terminations where the social media postings are not protected activity. To protect businesses and workers, employers must take a cautious approach: Regularly review and update written social media policies. These policies should be reviewed by attorneys and human resources specialists before implemented to insure “protected” activities are being protected. Communicate the policies to all employees and supervisors. Explain what is considered “protected” and “unprotected” behavior. If employee discipline for social media activity is being considered, consult an attorney or human resources specialist before proceeding. A misstep can harm a company’s reputation and bottom line. The days of simple watercooler gossip sessions are long gone. Social media venting can have serious consequences to employees and employers, alike, and it's important we keep that in mind. Holly Culhane is president of the Bakersfield-based — human resources consulting firm P.A.S. Associates and P.A.S. Investigations. She can be contacted through her website PASassociates.com and through the PAS Facebook page.
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Located at the signalized intersection of Union Avenue and Columbus Avenue in Northeast Bakersfield, CA. The three-story office property is across from Garces Memorial High School, and is less than a mile from Memorial Hospital. Suite 200 is an improved ground floor medical suite with five exam rooms and was formerly occupied as a dentistry office. Suite 201 is also an improved ground floor suite with a mix of several private offices and open space. NO additional fees for common area maintenance or NNN charges.
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Finished lots ready for industrial or commercial development. Located within the City of Bakersfield, Parcel Map 10606 is developed into several industrially-zoned lots that allow for a variety of commercial and industrial uses. This offering of lots features finished improvements such as streets, curbs, gutters, sidewalks, utility stubs, and more. Several lots are available ranging in sizes from 9,600 square feet up to 25,398 square feet. Woodmere Drive is highly accessible from both Ashe Road to the west and Stine Road to the east. Seller will consider offers for a build-to-suit or ownerfinancing. Click on the link below for lot availability, sizes, and prices.
FOR LEASE 3401 Chester
Office and retail space available in the historic Ice House specialty center. Located at the signalized intersection of Chester Avenue and 34th Street, The Ice House is well-positioned to benefit from high traffic counts and its proximity to downtown amenities, and is less than a mile from Memorial Hospital, San Joaquin Hospital, and the Kern County Museum. Suite O/N is designed for general office or retail uses, with private office bullpen areas. Located west of the signalized intersection of Chester Avenue and 34th Street.
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technology
Aera Energy unveils innovative employee learning center, Aera Academy
PHOTO COURTESY OF AERA ENERGY
Mayor Harvey Hall cuts the ribbon at Aera Energy's 14,000-square-foot employee learning center, Aera Academy. By Kathy Miller
E
arlier this spring Aera Energy LLC opened the doors to its new employee learning center. The 14,000-square foot Aera Academy is a one-of-a-kind center in the Bakersfield area, providing Aera employees with a unique place to learn, collaborate and innovate. The Aera Academy is not a traditional learning center filled with classrooms and computers. While those predictable components are in place, the academy takes an unexpected turn by utilizing wall space and the building’s weight-bearing pillars as visual teaching tools. Floor-to-ceiling images depict various production processes and equipment, which aid in learning about the lifecycle of an oil field. Aera’s commitment to workplace Kathy Miller safety, active community involvement and implementation of lean processes are all visually represented. The building’s interior pillars have been turned into well bores, illustrating what takes place underground during the drilling process. “Everything in the academy is geared to enhancing the learning experience of our employees. The physical layout of the space is designed to facilitate learning through a multi sensory experience,” said Stan Gomes, director of the Aera Academy. “We are providing
employees with a new way to approach learning and process improvement. We want them to be collaborative and innovative as well as feel energized by the work they do.” The academy also helps connect employees, especially those newer to the company, with the foundational elements of the Aera culture. Aera’s culture is driven by “The Aera Way” of doing business and a purpose, vision and values, which are at the heart of all business objectives. “The academy is essential in helping to transfer knowledge from our long-time employees to those joining the company. We know that in the next few years a large number of our employees will be retiring. We have been preparing for this ‘crew change’ for a number of years,” said Gomes. “We offer employees an extensive onboarding process, mentoring and training, as well as ongoing development for leaders. The academy provides us with a place to bring all our learning and development into one place.” Since opening, collaboration within the academy has been nonstop. Reservoir engineers and geologists regularly use the wall depicting a rock outcrop to discuss future well possibilities. They used the wall as an example of what the formation resembles underground. A small pumping unit located in the center of the academy provides an opportunity for office personnel to see firsthand how downhole pump operations work. “Judging by the excitement of our employees and others, I’d say we’re off to a great start,” said Gomes. “We’re continuing to make improvements and
add tools, which will help our employees continue to learn, collaborate and innovate. It’s simply part of how we do business.” — Kathy Miller is a public affairscommunications coordinator for Aera Energy.
Aera prepares to welcome new CEO
Aera Academy by the numbers • 14,000 square feet of newly remodeled
learning space • 12,000 safe construction hours in 99 days • 11,954 pounds of concrete poured • 50,000 feet of data cable installed • 80 amps of electrical service replaced by 15 amps of LED lighting Christina Sistrunk • 486 pieces of sheet rock hung with 31,104 screws • 549 on-site classroom offerings • 60 teaching monitors • 50 Aera course instructors • 135 courses last year • 6,697 total employee classroom learning experiences last year
In mid-July, Aera will welcome Christina Sistrunk as its new president and CEO. Sistrunk will replace Gaurdie E. Banister Jr. who announced his retirement in April. Sistrunk is currently the vice president of Arctic Capability – Upstream Americas, Shell. — By Cindy Pollard, director of public affairs for Aera Energy.
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Studying technology’s impact on marketing and advertising By Marlene B. Heise
R
emember when a stamp, envelope and piece of stationary were your main communication vehicles? Do the words “smartphone,” “Internet,” “social media,” “podcasts,” “e-edition” or “e-blast” mean anything to you? Of course! The media landscape is changing with technology; however, that doesn’t mean that you can’t utilize cross-platform mediums to make your business a success! Advertising and marketing help businesses grow by creating a way to communicate the message of who you are as a business, why the consumer should purchase your product and why the consumers’ life will be enhanced with the use of your product. Technology provides the platform to deliver those messages to your perspective consumer. New technologies are changing the media landscape and the multiple methods that businesses communicate with customers. Marlene B. Heise It may seem daunting; however, various types of technology make it possible for a little-known product to become a world leader. Technology provides the opportunity to distribute advertising messages to multitudes of people with the click of a mouse. Your product or service must provide a cohesive and consistent message to consumers that span all different types of media – radio, TV, magazine, Internet, smartphones and social media. Delivering consistent information and messages about a brand or business helps establish it in the minds of potential consumers. Those messages will build your brand and develop strong customer relationships. Technology has made it possible to be more connected to your customer. With an e-blast or direct mail piece, you can address your customer by name. With technology you can learn how many potential customers are within a 10-mile radius of your business.
With technology, you know how many “hits” your website is getting, where they are coming from and how they are accessing your website. Engage your customer with technology, talk to them on a personal level and provide a message that is relevant to their needs and they will buy! The media landscape is changing, just remember... According to Shopify, 50.3 percent of ecommerce website traffic comes through a mobile device. The average media consumption for one person each day is seven hours of which 1.8 hours is spent on a mobile device, according to State of Mobile. TeleNav asked what would people rather give up for a week than their phone? Answers included: alcohol (70 percent), chocolate (63 percent) and sex (33 percent). Yes, the media landscape is changing, but every successful business owner knows that change is inevitable and also holds a lot of opportunity. Be relevant! Utilize technology to create consistent and cohesive personalized messaging to your customers.
It may seem daunting; however, various types of technology make it possible for a little-known product to become a world leader.
— Marlene B. Heise is the owner of Heise Media Group and Marlene B. Heise Consulting.
A star of our own
KDG simply has the best and the brightest. Congratulations to KDG partner Dustin Dodgin for being selected by Super Lawyers magazine as a 2015 Southern California Rising Star, the second year running. Dustin practices in the areas of business and employment litigation and business counseling.
kleinlaw.com
BAKERSFIELD · FRESNO · SAN DIEGO
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Not business as usual for local oil industry By Tracy Leach
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ern Citizens for Energy is a new, local coalition advocating for the continued production of oil and gas in Kern County. Kern Citizens for Energy (KCE) is comprised of individuals, small businesses, nonprofit organizations, cities and chambers that support the energy industry and the thousands of men and women who work in it. Our coalition was created to provide a strong voice of support and advocacy for local energy production and the enormous, positive impacts it has on our economy and way of life. Here in Kern County, we are fortunate to have, Tracy Leach right beneath us, a vast wealth of natural resources and a location and topography that supports a flourishing renewable energy industry as well. The oil industry in Kern County alone provides 50,000 direct and indirect jobs and is responsible for over $4 billion in income for local families. This translates to spending power, thriving small businesses and a prosperous economy that benefits everyone. Our coalition, with the help of our local community, seeks to demonstrate
support for this critical source of job creation. “Everyone in Kern County, regardless of economic status, occupation, age or gender is a stakeholder in the oil and gas industry,” stated Greg Bynum, a KCE Leadership Committee member, in a recent Bakersfield Californian column. As oil prices have suffered a steep decline, that community-wide impact has become more apparent. The Kern County Board of Supervisors declared a fiscal state of emergency this year as property tax revenue forecasts receded in concert with oil prices. In addition, the County Planning Department is conducting an environmental impact report as part of the implementation process of California’s new regulation package on hydraulic fracturing. Initiated by the petroleum industry, the EIR is studying all oil and gas activities in the region and will result in a more efficient, streamlined permitting structure for all oil and gas production in Kern County. However, during EIR-related public comment periods scheduled for this summer and fall, we can expect vocal opposition from a variety of activists determined to end petroleum production as we know it. Our coalition is working to remind the community about the overwhelmingly positive impact the petroleum industry has on our economy, jobs and everyday lives.
For example, the oil industry is responsible for nearly 30 percent of the aforementioned property tax revenues to our county. These are the funds we use to pay for schools, road construction and public safety. Since California currently imports 67 percent of its total energy needs, our coalition would like to see more production occur right here at home, providing local jobs and boosting our own economy. In addition to the economic benefits, indispensable petroleum products are simply everywhere – in the thousands of products we depend on every single day. From hearing aids and eyeglasses to your computers, cellphones and clothing, petroleum is essential to our quality of life. We encourage you to join in support of our energy industry – particularly oil and gas production – and defend a prosperous local economy. Please add your name and that of your business to our coalition’s list of supporters by visiting KernCitizensForEnergy.com. There has never been a more critical time to validate your support for a robust energy industry in Kern County. We have a wonderful opportunity to make our voices heard – let’s make the most of it. Tracy Leach represents Kern Citizens for Energy. She is a — lifelong Kern County resident and owner of a public affairs agency in Bakersfield. The firm advocates for businesses including water, mining, oil and gas, and solar power.
Thinking about going solar for your home or business? By Glenn Bland
t’s been 32 years since I installed my first solar system in Phoenix, Arizona. I was lucky enough to land a job in my field of study while attending Universal Technical Institute. A lot has changed since I started my journey in the renewable energy business. Before putting this in written format, I sat down with friends and family to get a general consensus on what they think you need or want to know about “going solar.” I’m a firm believer in transparency when it comes to building a business relationship and making a deal. It’s my goal that sharing the following information will eliminate some of the mystery of solar, allowing you Glenn Bland to make a wiser decision.
institution backing your solar provider. If you add up 20 years of monthly lease payments, the sum is generally two to three times greater than a purchase price. In addition, a lien is placed on your home for the term of the lease making it difficult if not impossible to sell your property. At the end of your lease term you still do not own the system. There are many finance options offered to own your system with no money out of pocket. My favorite option is a lowinterest unsecured loan through a credit union. All of our finance options provide immediate positive cash flow and it’s your system! Another misconception is that a lease has a better warranty. Not true. A 25-year manufacturer’s warranty is provided on your panels and inverters with a purchase. A lease will save you about 20 to 25 percent on your electricity cost. A purchase can provide a full return on your investment in as little as five years and nearly eliminate the cost of electricity!
Lease vs. Purchase
What’s a fair price?
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About five years ago the industry didn’t have as many finance options as we do now. Leasing a system was considered the most hassle-free method of going solar. Leasing, while still common and less expensive than not going solar, does not provide the same financial gain as owning your system. Leasing is generally a 20-year agreement with the financial
In the solar industry, everything is bought and sold by the watt. Once the system is sized for your needs, you need to break down the proposed cost on a $/ watt basis. For example, a 6-kilowatt system is equal to 6,000 watts. A fair retail price should range between $3.50 and $4 per watt before incentives are applied. In other
words, a 6-kilowatt system should cost between $21,000 and $24,000 before the 30 percent federal income tax credit. What does panel efficiency mean?
A higher-efficiency panel just means it takes up less space than a lower-efficiency panel. “A watt is a watt is a watt,” and unless you have space constraints, don’t waste your money on higher-efficiency panels. A lower-efficiency system will produce just as much power at a lower cost with the same warranty. The lowerefficiency system will take up about 20 percent more roof space.
How do you select a solar contractor?
Going with a local company usually provides better customer service. Most importantly, don’t get duped into a onestop deal with the first solar guy knocking on your door. You owe it to yourself to get educated on the subject and always get more than one bid.
— Glenn Bland founded Bland Solar & Air in 1985 and opened the valley’s only Solar Showroom in 2014. As the No. 1 local solar provider, Glenn embraces the responsibility to educate the Kern County community.
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Succession planning: Don’t leave it to a pine box By Steven Van Metre
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y client, whom I will call Joe, is in his late 50s and owns a trucking company. He once considered expanding his business, but instead took a more conservative path of buying several adjacent storefronts and renting them out. In recent months, Joe mentioned one day selling his trucking company. He believes his business is worth a lot of money. But he also knows Steven Van Metre that if word got out that he was selling his business, a competitor would likely try to gobble it up at a discount. “Business consolidation” is common in his industry. Joe’s wife and I have tried to convince Joe to develop a realistic “exit” plan that would consider the $25,000 a month he receives from renting out the adjacent storefronts as a steady stream of retirement income. Joe’s two younger, but longtime employees have expressed an interest in buying the business. At the moment, Joe is in denial. He
has stopped talking about selling. Instead, he told his wife that his exit plan is to be carried out in a pine box. Frustrated, Joe’s wife claims she will take the first offer she receives from a consolidator and sell his business if Joe dies. Joe is not the only small-business owner in denial. A recent survey by the Financial Planning Association and CNBC revealed few small businesses have succession plans. More than a quarter of a million Americans are turning 65 every month. The U.S. Census Bureau reports by 2029, when all the baby boomers turn 65 or older, they will represent 20 percent of the U.S. population. Economists estimate that 10 million small business owners hope to finance their retirements by selling or closing their businesses over the next 10 years. But when you ask these business owners how they plan to accomplish this goal, many have no clue. The FPA/CNBC study found less than 30 percent of people surveyed have written succession plans and business owners often ignore advisers’ urgings to develop one. There are many causes for this failure: family dynamics may complicate passing the business to children or other relatives;
owners do not recognize how difficult selling their businesses will be; and an owner may be too focused on today’s problems to think about tomorrow’s. Often, owners who have worked their entire lives to create a successful business just can’t accept the idea of giving their “baby” to someone else. One of my financial planning colleagues described it best. He said some small business owners would rather have a root canal than go through the pain of developing a succession plan. But just like my client Joe, small business owners need to begin succession planning before it’s too late – before they become incapacitated or die. No one lives forever. I haven’t given up on Joe. This is what I have told him to do:
Explain what you need and expect to receive from your business’ sale.
• Evaluate your business. Realistically identify its assets and calculate what it is worth.
Succession planning should be a thoughtful, gradual process filled with soul searching, fact finding and goal setting.
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•
Determine your role. There are many financial options for selling a business. Do you want a cash out? Can the new owners pay you in installments? Do you want to remain on staff for a period of time to transition the new owners? These generally are decisions made with the assistance of attorneys and accountants.
• Protect yourself. Buy insurance, test-drive potential new owners, sell your business in segments. These are some steps you can take to protect your company’s continued success and your financial interests.
Consider sale options. Do family members want to buy it? Are employees interested? — Steven Van Metre is a Bakersfield financial Should you retain a broker to market its planner who specializes in retirement income sale? Identify potential buyers. strategies and teaches a course on retirement
• Discuss plans. Involve family members and key employees in succession planning.
planning for the Levan Institute for Lifelong Learning at Bakersfield College. His website is svmfinancial.com.
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Trends
Digital technology trends in Kern County By Jose M. Granados
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dvances in digital and mobile technologies, coupled with high adoption rates, are impacting and changing our daily lives in significant and unprecedented ways. Among these changes are the ways we purchase many products and services. Consequently, these new technologies are also disrupting several industry sectors, especially in large markets. The impact is real, and the proof is not hard to find. For example, the taxi industry is facing major disruptions, which came almost by surprise. In just the past few years, Uber, Lyft and other mobile-app-based transportation networks are seriously challenging and changing the taxi industry in virtually every market, large and small. For many companies, this is a critical time — a time
Consumers now expect optimized online and offline shopping experiences. They expect detailed product information, prompt response to inquiries and a convenient means of interacting with the business online. to rethink the way they do business. For this reason, businesses everywhere are keeping a keen eye on consumer adoption and use of digital and mobile technologies. This article evaluates local consumers’
adoption and use of these technologies, offering key insights for local business leaders. Bakersfield and Kern County is a unique market when it comes to the adoption of technology, typically trailing state and national trends by three to five years. However, that gap is quickly narrowing. For example, back in 2007, only about half of adults in Kern County used the Internet. By 2010, the figure increased 25 percent with nearly 400,000 Kern adults online each month. Now, according to the latest data released by Scarborough Research (September 2014), 78 percent of Kern adults use the Internet on a regular basis. Clearly, local adoption and use of the Internet has now reached a level of saturation. Use of digital mobile devices, smartphones and tablets, continues to grow as well. As of September 2014, 71 percent of Bakersfield adults owned a smartphone and 47 percent owned a tablet. These figures doubled in less than three years. Late in 2012, only 38 percent of Bakersfield adults had a smartphone and 14 percent owned tablets. For local consumers, these technologies have become part of their everyday buying process, challenging traditional ways of doing business. Local consumers now have access to extensive information on products, services and businesses. Via mobile apps, local consumers control much of the buying process as well as the customer relationship. Using these devices, consumers have 24/7, real-time access to
product information, product comparison tools, shopping apps and more. They can research and evaluate product features and price before they buy online or drive to the store. They know exactly which product or service to buy and where they can get the best price. The data shows that consumers use mobile apps in a number of ways and for a number of reasons. For example, more than 80 percent of Kern County adults use search engines like Google and Yahoo on a regular basis. Many of these searches are for product and business information. As the marketplace grows more mobile and interactive, consumers form new
expectations as part of the buying process. Consumers now expect optimized online and offline shopping experiences. They expect detailed product information, prompt response to inquiries and a convenient means of interacting with the business online. Again, this is a critical time for businesses. Success, if not survival, may hinge upon their ability to understand and capitalize on digital and mobile technologies as well. — Jose M. Granados works for TBC Media in the Market Research Department. This market analysis is based upon data from Scarborough Research.
Assistive technology in workplace can improve bottom line By Aaron Markovits
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echnology has changed our lives. I am amazed at the new tools that keep coming out to make our lives better. I met with a colleague the other day, and she had the Apple Watch. Of course, I’m fascinated to see one in person, but I’m a little geeky that way. Truly, technology like smartphones, smartwatches, tablets and cloud-based applications are shaping the way we work today. These changes are also shaping the workforce. As people who have grown up with technology in their lives are entering the Aaron Markovits workplace, it is common for text messaging to replace email as the preferred way to communicate. But how else is technology changing the workplace? What about the more experienced workers in our workforce? Technology can be used as an accommodation that improves your company’s bottom line. Examples of common ways to provide support are using the display settings to enlarge icons on the screen. One of my favorite tools is the zoom feature found in every Web browser now. As I get older, I find this tool essential in order to
read the screen. For people who type, we are all aware of the effects of repetitive motion syndrome. Of course, the best route is to prevent it altogether and a good safety program can assist with that as you encourage your people to perform simple exercises and take breaks from typing as needed. However, for those already diagnosed with the problem, there are accommodations that can be made. For example, you can set up shortcuts in Microsoft Word that reduce the number of keystrokes needed to type commonly used words. In addition, there are reasonably priced off-theshelf products that provide word prediction, again reducing the keystrokes needed to type. Hardware, such as ergonomic keyboards and mice, can be provided as well. Finally, if needed, voice recognition software can be provided. Training is needed to operate it effectively so don’t just purchase a copy off the shelf and think your employee can use it tomorrow. However, with proper training, this can be a great solution. There are several different versions. Which version you need will depend on the nature of your work, but this hands-free solution to typing has improved so much, I don’t hesitate to recommend it for the person who needs to reduce keystrokes to editing only. Technology can be used to accommodate people who
are losing or lost their hearing as well. Simple amplified phones are available. If your employee wears a hearing aide, she or he is able to be paired to devices that have Bluetooth capabilities, such as a phone or computer. For the deaf, there is a free service to assist making phone calls through an ASL interpreter called video relay. The equipment is provided to your company for free; you simply provide the broadband Internet connection. The most challenging part is not purchasing the equipment; it is identifying the right equipment to purchase and enrolling the employees to use it. Having an expert to walk you through the process of identifying the right technology is essential as purchasing the wrong equipment is not only costly, but a waste of your employees’ time. As part of this process, your company should always try equipment for free before purchasing it for employees through the Ability Tools Device Lending Library. — Aaron Markovits is the founder and executive director of Kern Assistive Technology Center. He has 20 years experience supporting workers with disabilities in the workforce. As an expert in the field of assistive technology, he has worked with organizations to make accommodations for workers with disabilities. He is also one of the founders of the HIRE Committee, a local collaborative that works to promote employment opportunities for people with disabilities.
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Oil and Gas
Lien rights remain powerful energy in oil patch By Michael A. Kaia, Esq.
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hen I think about energy in Kern County, I immediately reflect on the vast oil operations that have developed since oil was discovered in 1894. Kern is California’s top oil-producing county with 81 percent of the state’s approximately 52,000 oil wells. Michael A. Kaia, Esq. Most people in the construction services and supply industry are familiar with mechanic’s liens under the California Civil Code Sections 8000 to 9566, which can attach a lien to an owner’s real property for the services and materials utilized to build something on the owner’s land. However, for oil and gas work, there is a different, more favorable, California statutory protection called the “Oil and Gas Lien Act” under the California
Code of Civil Procedure Sections 1203.50 to 1203.66 (“Oil Act”). Under the Oil Act, the providers of services and materials to drill, develop and maintain the oil wells are protected by granting them a lien in the oil produced to assure payment for the services and materials. The importance of the lien attaching to the oil and gas production is driven home by the realization that frequently a split estate exists where the owner of the mineral estate is different than the fee title owner of the property, which includes the surface use to the extent it is not reasonably necessary for the oil production. A lien under the Oil Act is created by recording a claim of lien within six months of the claimant’s labor was performed or the claimant’s materials and services were furnished for any oil or gas well. Notice of the claim of lien is required to be sent by certified mail to the purchaser of the oil or gas produced from the interest describe in the claim of lien. Many times this is a refinery but this can
also be a different purchaser. The purchaser is required to withhold an amount of money equal to the amount set forth in the claimant’s claim of lien until the claimant notifies the purchaser in writing that the claim has been paid after which the funds, free of lien, will be released to the seller. The owner of the mineral estate subjected to the lien can provide alternative security by filing a bond to release the lien on the oil and gas interest. To enforce the lien claim against the mineral estate or the bond, a lawsuit must be filed within 180 days of the recording of the claim of lien. The action should be filed in the county where the well is located and the claim of lien is recorded. The lawsuit must be concluded within two years or it can be dismissed by the court. The claim of a lien is a very powerful tool to resolve disputes in the oil patch. During the past 28 years of law practice, almost every claim of lien has been immediately dealt with and resolved by the parties. Rarely does an oil and gas lien
dispute progress to judgment at the courthouse. In this writer’s opinion, the Oil Act is probably an example of where the California
Under the Oil Act, the providers of services and materials to drill, develop and maintain the oil wells are protected by granting them a lien in the oil produced to assure payment for the services and materials. legislature got it right and enacted a statutory scheme that promotes the parties resolving disputes prior to litigation. — Michael A. Kaia is a partner at Young Wooldridge with 28 years of real property as well as oil and gas law experience.
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helps KP to thrive By Dr. Paula Ardron
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aiser Permanente is known as a leader in high-quality health care, but did you know that our efforts toward environmental sustainability help make us more affordable? We have discovered that imbedding green initiatives can help the communities we serve become healthier environments. We have also found that it allows us to be better stewards of the health care dollars we receive to treat our members. Kaiser Permanente Dr. Paula Ardron is committed to improve our environment by taking on initiatives and projects to help reduce water utilization, decrease energy consumption and reduce waste in our landfills.
Reducing Water Utilization
By revamping our irrigation systems throughout our medical office buildings with a state of the art system and reducing the mowing of lawns, it has allowed us to reduce waste in water significantly. We have achieved a 47.3 percent reduction for the month of March and a 26 percent year reduction to date. That’s a savings of 3 million gallons. In addition to these changes, we are planning a xeriscaping project at our Ming facility that will replace water thirsty plants with droughtresistant ones. Crushed gravel will be used in the beds to reduce pooling of water and slow evaporation. Energy Consumption
In 2014, two of our facilities created workflows to make sure that lights were turned off at the end of the day in all offices and exam rooms. This resulted in a reduction in energy by over 180,000 kilowatt-hours. It is our goal to spread this successful practice to our other facilities
this year. In addition, Kaiser Permanente has made a commitment to purchase renewable energy, which will reduce greenhouse gas emissions nationwide by 30 percent by 2017. The plan is to increase the use of solar and wind power. We signed a contract with NextEra Energy Resources to build approximately 150 solar sites statewide – three of those sites will be in Kern County. This means we will utilize 590 million kWh of green energy, which is the equivalent of powering 82,000 homes. We will reduce greenhouse gas emissions by 215,000 metric tons, which is equal to pulling over 45,000 cars off the road each year. Reducing Waste in Landfills
Nationally, Kaiser Permanente set a goal to divert 40 percent of its waste from landfills. To fulfill this goal, Kern County has partnered with Bakersfield ARC. BARC has provided secure document shredding services to Kaiser Permanente since 2008. We now also use their business recycling services that recycles our commingled waste, such as non secure documents, beverage containers, plastic and paper containers, and small cardboard. Clients of BARC then sort the waste that can be sold as reusable commodities. This collaboration provides jobs for its clients and at the same time has helped Kaiser Permanente divert 90 percent of our waste from landfills. We have thoughtfully looked at our processes to see where we could identify ways to reduce, reuse and recycle in our system. This has allowed us to use resources responsibly, educate our physicians and employees in ways to be more environmentally aware, and use our healthcare dollars more responsibly. — Dr. Paula Ardron is an allergist and immunologist and has been part of Kaiser Permanente in Kern County for almost 20 years. She is currently the chief of the Allergy and Immunology Department and serves on the board of directors of Southern California Permanente Medical Group.
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Kern County offers plenty to job seekers By Cheryl Scott
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erving on an interview panel can be a real eyeopener, especially when it’s for a position that draws applicants from around the country. Over the past two years, I’ve had the opportunity to participate in the hiring of key positions for a variety of local organizations and it’s been fascinating to hear people talk about why they are interested in continuing their career in Kern County or why they’d like to move here. Conversations between an applicant and the interview panel are anecdotal, of course, but they frequently correspond to research and data tracked by economic development professionals. Numbers and charts are great indicators, but it’s reassuring to hear real-life testimonials of why people choose to stay in, or move to, Kern County. In economic development, the ultimate goal is to improve an area’s quality of life by bringing in “new” money through job creation and capital investment, which provides financial benefit to residents, businesses and public infrastructure projects alike. All of this is well and good, as long as we have a skilled local labor pool and are positioned to recruit experts from out of the area when
necessary. That’s why it’s important to know what attracts people to Kern County and what keeps them here. Here are a few of the benefits that make Kern County attractive to job seekers:
residents’ dollars, giving them lifestyle options they might not have elsewhere. The accompanying chart compares housing prices in five major regions, illustrating that Kern County is the best place for prospective homeowners.
More Bang for Your Buck
Excellent Earning Potential
While California is growing at a slower rate than before, there is still much about this huge and diverse state that makes it a desirable place to live. People considering relocation from other areas of the state or country will find that Kern County offers a great value for their dollar compared to other West Coast regions. For example, a person earning $60,000 in Kern County would have to make more than $75,000 annually in Los Angeles County in order to live a comparable lifestyle. This cost-of-living advantage stretches
Job seekers in Kern County have a high likelihood of finding a well-paying position with strong earning potential. Thanks in large part to our top industries (energy, value-added agriculture and logistics/warehousing), the region has been racking up top rankings for job growth and upward mobility. We ranked No. 1 for fastestgrowing workforce and No. 4 for the most the industrial variety according to WalletHub’s “2014 Best U.S. Cities to Find a Job” list. These jobs are well-paid technical positions in the science,
computer technology, engineering and math arena. Proof might well be found in the Brookings Institution’s recent “Beyond College Rankings” report that evaluated U.S. colleges and their “added value” in terms of mid-career earnings. Bakersfield College was ranked first in the state and sixth in the nation for two-year colleges, thanks to its graduates’ mid-career earning average of $67,200. California State University, Bakersfield also scored well, with an average mid-career salary of $75,400. These results indicate excellent educational programs, but also a community with robust job opportunities as well – a great combination! Quality of Life and Time Well Spent
Other priorities I often hear
from folks seeking jobs in Kern County (especially people from outside the area) are a list of benefits that add up to one thing: a better quality of life. For example, people like knowing they won’t be spending hours each day on a long commute. In fact, Bakersfield’s “rush hour” is just 2.5 hours each day, compared to rush hour in Los Angeles, calculated at eight hours each day, according to Urban Mobility. Another advantage is Kern County’s proximity to a wide variety of activities from the beach to the mountains to “big city” attractions in Los Angeles. Putting Family First
Finally, one of the most frequently expressed requirements I’ve heard from people looking to move here is a desire to live in a great place for raising a family. Yet again, outside sources rank Bakersfield and Kern County high, with Estately ranking the area No. 2 in family friendly California cities. Indeed, it seems that all these reasons, and many not listed, contribute to exactly that kind of environment. Cheryl Scott is vice president of — the Kern Economic Development Corporation. She is a Kern County native who is passionate about promoting the region and supporting local business. She can be reached at 862-5150. More information about Kern EDC can be found at kedc.com.
Local businesses headed for the cloud By Diana Greenlee
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f you have your head in the clouds, you’re in good company these days. According to VTech Support owner Trent Barnes, employing the cloud, which is a generic term for any off-site application or e-file storage accessible through the Internet, is part of the trend for local companies using technology to streamline their business models. Barnes said prior to cloud development, many companies kept on-site servers and staff would tie in, creating a local network. But the cloud provides immediate access to documents, such as email, accounting documents – even grading programs that can be shared and edited by multiple users anywhere. Efficiency is just
one of the benefits. “The cloud is a hosted exchange server,” said Barnes. “The cost to keep an on-site exchange is higher; the cloud is cost-effective.” Off-site hosted exchange servers also enable more seamless communication since it’s not dependent on a local server. If the Internet in the business goes down – the cloud allows staff access to online documents. Internet technology (IT) is a vital connection to customers for Sequoia Sandwich Company, which began taking orders through its website in addition to email, fax and phone years ago. Sequoia cashier and server Salina Berlanga said patrons can go online to obtain pricing and even pay for their orders in advance. However, she said ordering on the Internet is not without risk. The system can get
bogged down when hit with too many orders at once. “The fax is safer; we seem to have less problems,” she said. “If I was going, I would pay when I got here.” In addition to information access, local businesses are using technology to allow patrons to schedule services. Hot Rodz Salon in Rosedale connects with styleseat.com, a website that enables clients to check prices, book appointments and view their stylist’s photos. Owner Charla Foster said they’ve been using the online program with success since 2009. “I book the appointment and it will text a message to remind the client,” she said. “I can send birthday notes and thank-you notes (using StyleSeat).” Foster says she’s linked the business site with her Facebook
page; merging her contacts gives her double coverage. “It’s a great tool,” she said, “especially building your clientele when you need to promote yourself the most.” The technological shift isn’t confined to software. Cafe Med has been using iPads tableside, allowing customers to view its extensive wine list on the devices since 2012. Manager Stacy Howard said the system assists the restaurant in keeping a ready inventory and gives customers detailed knowledge about the wines, including their origins. “It gives them more information than two lines on a menu would,” she said. Howard said Cafe
Med is considering making more of its menu available through the devices. Although most customers appreciate the convenience of the e-menus, she says there are those who still prefer the tactile form. “Technically we have the ability to put more on the iPads,” she said. “But there are still people that want to see a (hard copy) menu.”
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PHOTO COURTESY OF COMMUNITY ACTION PARTNERSHIP OF KERN
Community Action Partnership of Kern Energy Program weatherization installer Ramon Flores performs low-flow upgrades in the shower of a local home to reduce water consumption.
Community Action Partnership of Kern's Energy Programs seeks to improve county's air quality By Louis Medina
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n late April, Gov. Jerry Brown issued an executive order establishing an ambitious target for reducing the state’s greenhouse gas emissions to 40 percent below 1990 levels over the next 15 years. At around the same time, the American Lung Association gave Kern County an F for air quality in its annual California State of the Air Report (stateoftheair.org), with Bakersfield ranking second worst in the nation for year-round particle pollution. Community Action Partnership of Kern’s Energy Program, which provides energy education, utility assistance and free home weatherization to qualifying low-income households, can and wants to help improve Kern’s air quality and reduce its carbon footprint. The effectiveness of the program – which in 2014 provided utility assistance to some 9,300 households and weatherized 500 homes – lies in the fact that many of the disadvantaged communities it serves are also considered greenhouse gas emission hot spots. “Our top priority for the next couple of years,” Program Manager Loretta Andrews said, “is to assist the state of California with reducing greenhouse gas emissions.” The Energy Program, she said, can make Kern County a healthier place to live while providing training to individuals from disadvantaged communities so they can access employment opportunities. In fact, over the last year, Energy Program staff has grown by one-third, from 25 to 33, thanks largely to increased funding from the state of California for Low Income Home Energy Assistance Program work, which includes utility bill
payment assistance and energy-related home repairs and improvements. Some of these improvements include: repairing or replacing windows and doors; replacing air conditioning and heater ducts; installing weather-stripping, caulking, attic insulation, solar water heaters and carbon monoxide alarms; and replacing current appliances and fixtures, such as refrigerators, lights and shower heads, with more energy-efficient ones. The average value of weatherizing a home is around $4,000. It can be a clientowned or rental property, as long as the owner or his or her representative signs an energy service agreement authorizing CAPK to weatherize the property. To qualify, the applicant must reside in Kern County; have a total household income at or below 150 percent of the federal poverty income guidelines; and provide proof of earned or benefits-based income for every member of the household for the month prior to submitting an application, plus a copy of the most recent gas and electric bill(s). Currently, the Energy Program is prioritizing home weatherization work in low-income communities along the highly polluted Highway 99 corridor, including Arvin, Lamont, Bakersfield, Shafter, McFarland, Wasco and Delano. For more information about CAPK’s Energy Program, call 211 toll free or 336-5203. You may also visit capk.org/ energy or email energy@capk.org. To learn about job opportunities with CAPK’s Energy Program, which is still growing, visit capk.org and click on “Jobs.” — Louis Medina is the Outreach & Advocacy manager for Community Action Partnership of Kern.
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Bakersfield receives more positive press By David Lyman
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uring the past year, Bakersfield continued to receive positive press about its opportunities for travel, meetings and sports events, plus its overall quality of life. Trivago.com, the world’s largest online hotel search site, named Bakersfield the “Best Value City” in California in 2015. Trivago’s Best Value Index provides a unique overview of the best-valued destinations by using a specifically tailored algorithm that combines its Hotel Price Index with its Reputation Ranking for hotels. Nationwide, Bakersfield scored 33rd. Bakersfield’s food and beverage scene continued to get raves from magazines and television. Sunset Magazine named Bakersfield’s Noriega Hotel as one its “Top 18 local institution restaurants” in the West Coast. According to Sunset, “These are the West’s culinary roots – the classic restaurants that weave together culture, atmosphere and the best ingredients.” Impressive companies joined Noriega on that list, including San Francisco’s Tadich Grill, Langer’s Delicatessen in Los Angeles, and Cafe Pasqual’s in Santa Fe. The Food Network’s “Diners, Drive-Ins, and Dives” featured Guy Fieri visiting seven Bakersfield eateries over several episodes: Salty’s BBQ & Catering, KC Steakhouse, Mama Roomba, Muertos Kitchen & Lounge, Pyrenees Cafe, Moo
Creamery and Athena’s Greek Cafe. Saveur Magazine’s tour of “California’s Taco Trail” along Highway 99 featured Bakersfield’s Loncheria Otro Rollo, whose potato tacos so impressed the author that a similar version is now a featured menu item at her Bay Area restaurant chain, Tacolicious. For refreshments, “Road Pickle,” the motorcycle road touring magazine, highlighted downtown’s legendary Guthrie’s Alley Cat bar: “That large caricature drawing that looks like an Al Hirschfeld? Yeah, it’s actually an Al Hirschfeld. According to the bartender, there are only six copies of that in existence. ‘People from all around come here just to photograph it!’” In a separate article in April, “Road Pickle” again featured Bakersfield, mentioning the writer’s local culinary finds: Lengthwise Brewery, Eureka! Burger and Donna Kaye’s Cafe. Among the positive rankings Bakersfield scored were No. 2 for Mild Weather Lovers by WalletHub.com; No. 2 Hardest Working City in the U.S., again by WalletHub; No. 2 in Jobs Within Easy Commute Distance by the Brookings Institution; No. 7 Best U.S. City for Car Drivers by NerdWallet.com; No. 8 Fastest Growing Large City in the U.S. by WalletHub; and the Least Dreary City in the U.S. by Meteorologist Brian Brettschneider. Lennar released its “Lennar Loves Bakersfield” video on YouTube, the recent Dennis Hare exhibition at Bakersfield Museum of Art was Continued on page 33
FELIX ADAMO / THE CALIFORNIAN
Muertos Kitchen & Lounge is located at 1514 Wall St.
Bakersfield Museum of Art is located at 1930 R St.
The benefits of qualified research expenditures By Joel A. Bock
O
riginally becoming law in 1981 as part of the “Economic Recovery Tax Act of 1981,” the Credit For Increasing Research Activities – also known as the Research and Development Credit (or R&D credit) – was enacted by Congress as a result of concerns that levels of spending for research and development were insufficient and Joel A. Bock starting to decline. Although the credit was originally enacted only through Dec. 31, 1985, the credit has expired and been extended numerous times since 1981, most recently expiring Dec. 31, 2014. While it is very difficult to predict the content of future tax legislation, there appears to be a consensus belief amongst many tax practitioners that the R&D credit
will be extended yet again. In order for the activity of a taxpayer to qualify for the R&D credit, the activities undertaken by a taxpayer must be “qualified research” expenditures as defined by §41(d) of the Internal Revenue Code as follows: •
The expenditures must be incurred in connection with the taxpayer’s trade or business and must be treated as deductible research expenditures under §174 of the Internal Revenue Code;
•
The activity is undertaken for the purpose of discovering information, which is technological in nature (i.e., relying upon the principles of the physical or biological sciences, engineering or computer science);
•
The application of such information is intended to be useful in the development of a new or improved business component of the taxpayer; and
• Substantially all of the activities of which constitute elements of a process of experimentation for a functional purpose. The form of qualified research expenditure may be both “in-house research expenses” and “contract research expenses.” In-house research expenses include wages paid to an employee for qualified services and any amount paid for supplies used in the conduct of qualified research, while contract research expenses include 65 percent of any expense paid to any person, other than an employee, for the performance of qualified research on behalf of the taxpayer. Often surprising to many small-business owners, the R&D credit is not only limited to activities occurring in a laboratory environment. For example, given the drought conditions in recent years, many farmers have been forced to “experiment” to determine how to grow certain crops
with less water. Part of this process of experimentation may qualify for the R&D credit. Another less obvious example of a business that may qualify for the R&D credit is a construction business. Certain design/build services, LEED projects, and value engineering can yield tremendous tax savings through the R&D credit. In addition to the federal credit for increasing research expenditures, the state of California also has the California Research Credit, which can potentially be more beneficial than the federal credit due to the fact that the California Research Credit can reduce the alternative minimum tax while the federal credit cannot reduce the alternative minimum tax. Please consult your tax adviser to determine how these tax laws impact your specific situation. — Joel A. Bock, CPA, MST is a partner in Daniells Phillips Vaughan & Bock, a Bakersfield accounting firm.
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CASEY CHRISTIE / THE CALIFORNIAN
Noriega's is located at 525 Sumner St.
Continued from page 32 profiled in the Huffington Post and California Meetings+Events Magazine profiled “Bakersfield: Music, Oil and a Whole Lot More” in a full page spread in its winter issue. In January, SportsEvents Magazine announced the Bakersfield Convention Visitors Bureau was one of its 2015 Readers’ Choice Award winners, the result of top picks by sports event planners for outstanding destination and sports venues and one of only three in California. In April, Sports
Planning Guide profiled “Bakersfield: A Hotspot For Sports Travel,” beginning with this: “Bakersfield has a lot going for it – an abundance of facilities, a plethora of hotel rooms and mild weather. But its central location –within four hours of 90 percent of the population of California – makes it a regional favorite for sports events.” — David Lyman is manager of the Bakersfield Convention and Visitors Bureau. He has spent the last 30 years involved in countless facets of promoting his hometown, including business attraction, business retention, redevelopment, enterprise zone and, now, helping visitors spend their money.
Partners Scott Belden, David Blaine and Katy Raytis are client-oriented professionals committed to providing business owners and management with legal services that exceed their expectations in three core areas: cost, efficiency, and results. Business | Commercial | Employment Litigation Employment Counseling
www.beldenblaine.com 5100 California Ave., Ste 101, Bakersfield 93309 661.864.7826
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Energy partnership aims to make energy efficiency first-choice resource By Kimberly Fleming
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he Kern Energy Watch Partnership is a joint program between the Kern County and the three investor owned utilities (IOUs) serving Kern County. Kern County is unique in that it is serviced by three IOUs: PG&E, which serves mostly greater Bakersfield and western Kern County; Southern California Edison, which provides service to mostly Eastern Kern County, McFarland and Delano; and Southern California Gas, which serves most of Kern County with the exception of Western Kern County. The program is comprised of all 11 incorporated cities in Kern County and the county of Kern. Statewide, the Energy Watch proKimberly Fleming grams were implemented as a result of the California Public Utilities Commission (CPUC) adopting, in 2004, aggressive 10-year energy savings goals to meet its commitment to make energy efficiency the resource of first choice, as established in its Energy Action Plan. In 2008, the CPUC adopted California’s first long-term energy efficiency strategic plan presenting a single roadmap to achieve maximum energy savings across all major groups and sectors in California. This comprehensive plan for 2009 to 2020 is the state’s first integrated framework of goals and strategies for saving energy – covering government, utility and private sector actions – and holds energy efficiency to its role as the highest priority resource in meeting California’s energy needs. Energy Watch Partnerships provide centralized access to a wide array of energy efficiency programs by partnering
with local governments and harnessing the unique relationship that local governments have with their community. Many partnerships work directly with the community to provide energy analyses to residential and small-business customers. Qualifying customers may also receive free and/or low-cost installation of energy-efficient equipment. Driven by the rise in energy costs and growing public concern about climate change, businesses are looking for better ways to manage their energy bills and do their part to protect the environment. Reducing operating expenses is a way that businesses can remain competitive. Programs offered by the utilities can help you increase your energy productivity to reduce operating costs and increase net operating income. By adopting smarter and more efficient methods, equipment and controls to manage energy consumption, businesses may reduce energy costs while also improving the comfort and function of facilities. There are some no cost measures that can lower your energy usage bill right away while other low-cost measures may offer significant savings for minimal investment. The most common way to achieve an immediate impact to your energy consumption is to adjust HVAC and refrigeration control set points and modify existing equipment; this alone can reduce energy use by as much as 50 percent. Other common forms of no cost and low-cost measures are: • Turn off equipment when not in use • Set thermostats to 78 degrees in the summer and 68 degrees in the winter • Regularly clean HVAC condenser coils • Replace air filters • Install motion detectors to control lighting in frequently unoccupied areas, such as restrooms
• • •
Add weather stripping, caulking of foam around windows and doors to reduce drafts Have a certified contractor check your central heating and cooling duct system for leaks Set your water heater thermostat at, or slightly below, the manufacturer’s recommended temperature
Small & Medium Business Direct Install Small businesses and nonprofits may qualify for the Small Business Direct Install (SBDI) turnkey services option, which saves them the time and effort of decision-making. Program staff provides start-to-finish technical assistance, recommends energy-efficient equipment, facilitates the selection of contractors, coordinates installation and conducts an inspection when the work is completed. Energy-efficient upgrades include interior, exterior and high-bay lighting, refrigeration controls and strip curtains for qualified customers. Energy Audits & Technical Services Kern Energy Watch offers energy audits for businesses in participating local jurisdictions. Targeted energy audits will identify and develop projects to take advantage of the assistance available through utility core energy efficiency programs. The program will also provide residential and small-business onsite energy audits. Services are provided to the full range of business sizes and categories in Kern County ranging from sole proprietorships, retail stores and restaurants, to medical campuses and office buildings. Training Kern Energy Watch provides energy workshops and classes designed specifically for local residents and businesses.
Through these free training opportunities, customers can learn new ways to reduce their energy bills and become more energy efficient. Rebates, Incentives and Financing Programs Businesses may take advantage of rebates and incentives as well as unique financing programs offered by the IOUs to help reduce the cost of energy efficient upgrades. Through these programs you may be able to receive substantial rebates and incentives when you upgrade existing equipment or purchase new equipment and financing to put energy efficiency within reach. If you are interested in learning more about energy-efficiency programs and services available to Kern County businesses, please contact PG&E, SoCalGas and/or SCE. Contact information for each is listed in the table below. — Kimberly Fleming is a special projects manager with the Kern County General Services Division. She serves as the implementer of the Kern Energy Watch Partnership Program. She has over 13 years experience in public administration and has been responsible for developing and implementing various collaborative countywide initiatives and programs.
PG &E
www.pge.com
Residential Programs
www.socalgas.com
800-933-9555 800-331-7593 800-655-4555
SCE
Business Programs
www.sce.com
800-468-4743 800-427-2000 800-655-4555
SoCalGas
Preferred Collection Site
• E-Screen • AWSI • DISA • First Advantage • Physchemedics • Labcorp • Quest Diagnostics
7737 Meany Avenue STE B9 Bakersfield, CA 93308 Phone: (661) 679-6799
Universal Enrollment
• HME • TWIC • TSA Precheck
Building Permits • Medium Voltage Distribution • Coordination • Photovoltaic Design
(855) 367-5685 www.rlbengineeringllc.com Serving The San Joaquin Valley CA PE E20213
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Why wellness? Because your bottom line might depend on it By Monique Rogers
H
ow many times per week do all of your employees show up for work? Has there been one week, or even one day, where 100 percent of your employees were in complete attendance, engaged and productive? Business owners and managers asked replied with one of three answers: “Never,” “nope,” and “I wish.” And, when asked what the main Monique Rogers reason for employee absenteeism or disengagement, the answer was not surprising. They call in sick. Recent information from the US Center of Disease Control reports that about half of all adults – 117 million people – have one or more chronic health conditions, such as obesity, diabetes and heart disease. Diseases, which once were problems of older age groups, have become commonplace issues for young and middle-aged Americans in today’s workforce. Even more concerning – one of four adults have two or more of these chronic health conditions. This results in an estimated 450 million additional days of work missed each year and more than $153 billion in lost productivity. Many companies answer the issue of chronic illness of an employee by tracking their excessive absenteeism, then ensuring a strict disciplinary action and even termination if absences continue. However, with about half of all adults suffering from one or more of these illnesses, this action does not resolve the problem. In fact, it has been argued that this creates more frustration, anxiety, stress and dissention in the organization. The answer may lie in corporate wellness responsibility. And yes, the suggestion is for companies to take into consideration the education, program creation and accountability for their employees’ health. This concept goes far beyond just providing health benefits. In fact, corporate wellness as an industry is gaining momentum with an expectation to be worth $6 billion this year alone, an interesting comparison to the $153 billion corporations experience in lost productivity mentioned earlier. According to a wellness software program provider called MindBody Connect, companies nationwide are experimenting with wellness programs in an effort to reduce the effects of chronic health issues, loss of productivity,
absenteeism and distress among the workforce. And the wellness movement is much bigger than we think. Jim Clifton, chairman and CEO of Gallup, was recently interviewed about the impact of corporate wellness and employee well-being. He stated: “I didn't realize until recently the impact of wellbeing on outcomes such as productivity and life expectancy and even the stability of nations. The importance of well-being goes way beyond employees now – it has
Tracking and investing in employee wellness could create a climate of engagement and possibly tap into the 70 percent of workforce that remain disengaged in their jobs and companies. an impact on citizens, too, everywhere.” He went on to say we are failing to create workplaces of high engagement and high well-being. Only 30 percent of the U.S. workforce is engaged in their jobs, and that number has been stuck there for almost 15 years. Responsibility must be taken by corporations to create or partner with a corporate wellness program, even at the smallest level. From research, the majority of wellness programs included training in two to three of the following areas: • Nutrition and Health • Stress Management Techniques • Mindful Body Movement • Interpersonal Communication Skills • Leadership Dynamics and Behavior This will be a new frontier and responsibility for many corporations and businesses. But with chronic illness becoming more prevalent and employees still needed to drive productivity, the adoption or creation of a corporate wellness program must be considered. Tracking and investing in employee wellness could create a climate of engagement and possibly tap into the 70 percent of workforce that remain disengaged in their jobs and companies. And businesses are already absorbing the costs for these programs in lost productivity, lack of engagement and employee retention costs. — Monique Rogers is a writer, healthy lifestyle evangelist, reformed corporate technology business owner, practicing meditator, global traveler and certified registered E-RYT Instructor specializing in heated power vinyasa yoga and anti-gravity yoga and fitness.
bakersfieldkidsfest.com
ATTENTION VENDORS
The 2nd Annual KidsFest is coming to the
Kern County Museum on Saturday, July 18th! Benefiting the
KidsFest is a great place to get your products and services in front of thousands of forward-thinking, modern families. • • • • • Bakersfield KidsFest will allow Kern County kids and parents the opportunity to touch, feel and experience your product while they explore 16 acres of creative fun.
Vendor Opportunities Available! • Education • Extracurricular Activities • Fashion • Food Vendors • Health and Medical • Nutrition • Professional Services
For more information, contact Shauna Rockwell: 661-392-5716 srockwell@bakersfield.com
Sponsored by Sponsored by
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Compliance
Conquering compliance By David A. Milazzo
A
few years back, I began consulting for a new client working heavily in the petroleum industry. Never having consulted in a high-compliance industry, I was a neophyte to the true definition of safety. I naturally assumed that all staff simply acted in a “safe manner” and that was the end of it. So you might imagine my shock when I witnessed the reams of paper generated by its 500 employees — each of whom filled out between 10 to 30 forms per week to document every nuance of their David A. Milazzo “safe manner.” Organizations working in high-compliance industries – energy, agriculture, manufacturing, etc. – will know all too well the level to which they and their employees' actions are scrutinized. Every element of your staff’s
training and the work they perform must be recorded, verified and validated. And for good reason; employing safe processes leads to a more efficient and safer work environment. But keeping track of the paper for these processes can bring a business to its knees. In the first week of working for my new client, they began the endeavor of responding to an audit for a large, local oil producer. This audit would end up requiring six weeks of administrative labor as they sifted through box upon box of submitted forms to find all the necessary documentation. They produced training records from their safety team, behavioral and counseling forms from HR, daily job safety analysis as well as the referenced safe operating procedure documents covering all work performed – not to mention every incident, near-miss and taproot report. This cavalcade of paper spanned multiple departments, dozens of managers and required hundreds of hours to assemble. And from my humble IT vantage point regarding data, it looked like the most
ridiculous exercise known to man. I would come to learn this is partially why I’d been hired – to assist with bringing about a paperless revolution. And over the next three years, that is exactly what we did. Full disclosure: I am a co-founder and the CTO of FormForce, a new Bakersfieldbased corporation committed to solving safety, training and compliance challenges using Web and mobile technologies. The software we develop is informed directly from these very-real, in-house challenges and a desire to give birth to corporate data in an electronic form. Leveraging iPhones and iPads in the field with a Web console in the office, our approach can revolutionize entire organizations by incorporating a new level of real-time accountability for all staff. In this new compliance ecosystem, all forms are available electronically to the proper staff who complete and submit digitally. This digital nature adds many enhancements to the paper form. First off, we can capture more diverse types of data: audio, video, images, GPS locations, temperature, etc. And we can alert supervisors
the moment forms are complete – or incomplete. But most importantly, we can mine this data. As we employ a database infrastructure, we can search from every angle to report on the most minute subtlety of our work. All in all, it’s a panacea for high-compliance organizations providing a window into all activities in real time. It’s important to note that while the problems I’m discussing can certainly be solved with our software, there are other ways to skin this cat as well. Some organizations use Adobe Acrobat PDFs to disseminate forms and documents. Others are developing paperless solutions in-house. So however you choose to conquer compliance in your own organization and move toward a paperless process, research the offerings that support your industry before taking the leap. But don’t dillydally – that next audit is right around the corner. — In addition to his involvement with FormForce, David A. Milazzo is the founder and principal of 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.
Diversifying saves Tehachapi energy company By Kelly Bearden
W
ith 2012 drawing to an end, Nikki and Buddy Cummings were celebrating their company’s “best year ever.” But the fledgling Tehachapi company saw dark clouds forming on the horizon. Started in 2007 to provide construction services to the booming wind energy industry, World Wind & Solar was well on its way to becoming a small-business success. Ninety-five percent of the b usiness came from construction, with one company being its Kelly Bearden primary customer. But the extension of critically needed energy production tax credits was stalled in Congress and wind energy companies were placing their construction plans on hold. As a result, 2013 was WWS’s financially worst year. The Cummings recognized their situation was dire. They knew that work in the pipeline was at a standstill and the existing bank balance would have to sustain their overhead until work picked up again. Likely that would not occur for months. The Cummings and their business partners faced a choice: Cut their losses by closing their business or diversify their operations.
The team took a big risk. They designed, developed and implemented a strategic business development campaign. Harvey Stephens, who has 25 years of experience in the solar industry, came in as a partner in 2013. With the help of free consulting services offered through the Small Business Development Center at Cal State Bakersfield, the company diversified to include more focus on servicing the solar energy and telecomm industries. They also added such services as equipment leasing, human resources and employee training to its service offerings. It took eight months and every last bit of existing capital to transition the organization. “We had to make some changes,” said Nikki Cummings, WWS’s president, who noted solar now makes up more than 50 percent of the company’s business. Construction brings in just 5 to 10 percent of its revenue. Today, WWS provides services to more than 25 companies in about 20 states. Less than 5 percent of the company’s revenues come from the same client. Nikki Cummings credits the assistance and advice the company received from SBDC to helping meet such challenges as financing and identifying resources that gave WWS “the competitive edge when we needed it.” Originally known as World Wind Services, the company has evolved from a small “mom and pop” organization to a
PHOTO COURTESY OF WORLD WIND & SOLAR
World Wind & Solar technicians now service wind, solar and telecomm projects in more than 20 states.
nationally recognized wind, solar and telecomm industry service provider that specializes in construction, manpower, operations and maintenance. World Wind & Solar’s story demonstrates the need for companies to diversify services in the ever-changing energy sector. When WWS opened in Tehachapi in 2007, its gross sales were about $1.6 million. This year’s projections call for gross sales of $8.5 million. Buddy Cummings’ father, Steve, has long been recognized as a wind energy pioneer, establishing wind farms in eastern Kern County in the late 1970s. As WWS’s
president, Nikki has been active in Women of Wind Energy. She was named the organization’s “Rising Star” in 2009 and she also sat on the board of the San Diego chapter. She has been featured in international publications documenting the wind industry’s history in Tehachapi and spotlighting the construction of the Tehachapi Transmission Project, a massive undertaking to carry eastern Kern County’s renewable energy to customers. She and others associated with WWS are active in promoting economic development in the region. World Wind & Solar was recognized for its entrepreneurial spirit by the University of California, Merced, regional network of Small Business Development Centers during National Small Business Week in May. The Small Business Development Center at CSUB is one of five service centers overseen by the University of California, Merced SBDC Regional Network, which is a partnership between the university and the U.S. Small Business Administration. The center at CSUB assists entrepreneurs and small-business owners in Kern, Mono and Inyo counties by providing free one-onone 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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Two words to discuss with your insurance broker: cyber-risks By John Pryor
A
key question to pose to your insurance broker is: What are our cyber-risks? If you haven’t yet experienced a loss related to the world of cyber technology, you will. Every organization is vulnerable. This risk has both property and liability dimensions. Here’s how I describe the liability dimension in my recent book for business John Pryor owners “Quality Risk Management Fieldbook”: Cyber-liability is a risk any organization has if it operates a website or conducts e-business of any kind. Risks include e-theft, destruction of critical data, defamation, libel, copyright or trademark infringement, e-vandalism, e-threats and denial of service to mention but a few. The property dimension is a criminal act involving a computer for the purpose of gaining access to steal, interrupt or misuse computer system data. Its scope extends from damage to computer hardware or software – including manipulation of data for the purposes of embezzlement, espionage, terrorism or vandalism – plus any other form of fraud. Access to your system by hackers can be especially costly. Hacking permits
entry into your system for identity theft, extortion, terrorism, political protest, and other brazen and destructive use of your organization’s data – all of which can make you legally liable to others because your organization breached its duty to protect customer data. The question is: What can you do to protect your data, your company and your customers? Insurance helps, of course, but doesn’t fully cover every element of cyber-risk. Basic risk control methods applicable to all other property are clearly applicable to computer systems. However, more unique steps need to be taken. These are listed – in part – in the risk control checklist that follows (also in my book): Limit access to computers and data by use of locked doors, badges and electronic access systems. Screen all new hardware, software and data for computer viruses before allowing their use. Employ computer passwords and restrict physical access to software so each user is able to use only the software needed to carry out that user’s responsibilities. Offer guest wireless connection but do so without access to proprietary networks. Locate computer equipment in an area relatively safe from vandals or other attack and that blocks external electronic signals. Install devices to electronically shield computer operations from external inter-
ference or eavesdropping. Install and regularly update antivirus software. Install mobile device management (MDM) software programs for mobile devices on your network. Monitor and record users, each user’s time online and their use of software programs. Disallow sending emails containing sensitive data. Conduct background checks on all employees and contractors. Require nondisclosure and confidentiality agreements from all. Educate staff about the general features of computer-related crime, how your organization is combating it and how employees’ conduct (on or off the job) can reduce the risk of computer-related crime. Remain alert to innovations in computers and other technology – as well as changes in your organization’s operations that may create new opportunities for computerrelated crime. Disallow personal storage devices (iPods, etc.) that can connect to a PC to download data. Ensure data that lives in the “cloud” is on cloud-based servers that are U.S. based and not resident in other countries with more lax laws. If your data have been compromised:
• •
Inform local law enforcement. Report stolen finances or identities to the Internet Crime Complaint Center at ic3.gov
• Don’t overlook reporting the incident(s) to your insurance broker whom you hopefully already asked to extend cyber- crime risks to your insurance program. — John Pryor is a local risk management consultant and author of “Quality Risk Management Fieldbook” available at Russo’s local bookstore, Amazon.com and the publisher, International Risk Management Institute, in Dallas.
Some websites to visit for more details where cybercrime is concerned: microsoft.com/security/pypc/aspx – For help to defend your business computers. aka.ms/cyber.security.plan – The National Cyber Security Alliance can help you create a cybersecurity plan for your organization. fcc.gov/cyberforsmallbiz – A template to help you create an easy-to-use plan to protect your business from cybersecurity risks. us-cert.gov – For newsletters and alerts on cybercrime, including phishing and vulnerability reports. uschamber.com – Offers a toolkit that teaches employees how to help protect your business data.
Using technology to boost your business By Alex Rogers
From self-driving cars, to virtual reality headsets, to eavesdropping Barbie dolls, technology is getting pretty wild. While it isn’t exactly up to “The Terminator” level yet, no one’s saying it won’t get there someday. Even today, its application has never Alex Rogers been greater than in the business sector. Technology that’s perfectly situated within your business will bring you limitless potential, customer loyalty and powerful productivity. IMPROVE COMMUNICATION How’s that inbox been looking lately?
Nowadays, people communicate through email more than anything else. In fact, there are over 100 billion emails sent and received every day. If you leave your staff to sift through an inbox that’s bursting at the seams, you’ll find yourself buried within an avalanche of downtime and mismanaged resources. It’s crucial to use an email platform that sorts the good from the bad and automatically labels, filters and prioritizes for you to prevent downtime, streamline processes and save money.
Hold old is your phone?
Do you know what your employees are doing for you?
Your phone should do more than make and receive calls. It should allow for things like three-way calling, desktop integration and conferencing. It should free you to work on the go more effectively by forwarding calls to your mobile device or turning voicemails into emails. These also shouldn’t break your budget. With an option like VoIP – voice over Internet protocol – these features are usually standard. If you haven’t upgraded your phones since Reagan was president or if you only have a “transfer” button, it’s time to reach out to a provider for a glimpse into the future.
Statistics show that 60 percent of employees waste on average two hours a day of company time, and the majority of that time is spent on websites, such as Facebook, Twitter or Monster.com. Now, maybe these aren’t your employees, but wouldn’t it be nice to know the sites that they are visiting as well as block them from sites they shouldn’t be visiting while you’re paying them to work?
INCREASE PRODUCTIVITY When’s the last time your hardware was serviced?
Companies everywhere are switching to the fix-itbefore-it-breaks mentality and adopting a managed service agreement into their operations — and for good reason, too. If your hardware (and this includes software, as well) isn’t properly serviced, routinely updated or consistently analyzed, odds are it’ll probably go out on you or be outdated before you finish paying it off. You’ll see more downtime than necessary and spend more on repairs than your budget probably allows for. Keep your hardware healthy and you’ll keep your employees productive.
DEVELOP CUSTOMER INSIGHT What does your website traffic say about your leads?
There are now ways to easily decipher the “who,” “what” and “how” of your website – who was on your website, what were they clicking on and how did they get there. With new technologies such as InSiteID, you’ll be able to visualize the experience a visitor has on your website. From this, you’ll be able to identify potential leads and recognize browsing patterns. This can make all the difference in making a sale or losing one.
— Alex Rogers is the founder and CEO of ARRC Technology and CharTec.
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Grant program encourages Kern clean-air technology By Janelle Schneider
E
Lebec. The yard truck is used to move trailers between the loading docks at the distribution center and the staging
lectric trucks and engines powered by digester gas are some of the projects under way in Kern County being funded by a unique grant program through the San Joaquin Valley Air Pollution Control District. Janelle Schneider The Technology Assistance Program (TAP), adopted in 2010 by the district’s governing board, encourages innovation and development of new emission-reduction technologies throughout the Valley in order to accelerate the air basin’s progress toward clean air. Since the program’s adoption, the district has awarded $4.1 million for 14 projects during three rounds of funding, with an additional $3.6 million in funding for seven projects selected in the most recent cycle. Three recently funded projects are being demonstrated in Kern County: Capstone Microturbine, in partnership with Kenworth, is demonstrating a plug-in electric truck to be operated by Leslie’s Custom Floral in Bakersfield. The truck has a natural gas-fueled microturbine for range extension. Leslie’s Custom Floral delivers from its warehouses in Bakersfield and Delano as far north as Fresno. Biogas & Electric is constructing an emissionscontrol device on the engines that are powered from digester gas at Bakersfield Wastewater Treatment Plant 3. The device should significantly reduce emissions from those engines. Transportation Power Inc. is demonstrating an all-electric yard truck at the IKEA distribution center in
Since the program’s adoption, the district has awarded $4.1 million for 14 projects during three rounds of funding, with an additional $3.6 million in funding for seven projects selected in the most recent cycle. area, where they are picked up by long-haul, over-theroad trucks. This project has shown more miles of operation than all similar projects operating at the ports of Los Angeles and Long Beach combined. IKEA also has a large photovoltaic solar array that provides more power than it use, and much of this truck’s power comes from them. A new funding cycle is planned to open this fall. “We’ve had an outstanding response to the TAP program, which gives us a two-prong benefit in the Valley: stimulating innovation that directly improves air quality and giving a boost to the economy,” said Seyed Sadredin, the district’s executive director and air pollution control officer. Creativity, innovation and expertise flourish in the Valley. But with its historic economic challenges, exacerbated by a protracted drought, ready funding to stimulate new technology has been hard to come by. The Air District, with a demonstrated track record of out-of-the-box strategies to realize emission reductions in areas where no regulatory authority exists, has expanded that pioneering approach to the environmental research and development sector,
encouraging technological innovation to address some of the Valley’s most vexing air-quality challenges. For each funding cycle, the district issues a request for proposals, which solicits projects in one of three focus areas: Renewable Energy – Projects that overcome the barriers that prevent the use or adoption of zero-emission renewable energy sources or reduce emissions from renewable energy systems to make them cleaner than the comparable non-renewable alternatives. Waste Solutions – Waste systems or technologies to minimize or eliminate emissions from existing waste management systems and processes, including waste-to-fuel systems (such as dairy digesters and other biofuel applications). Mobile Sources – Technologies that will demonstrate
zero- or near-zero-emissions solutions to mobile source categories with emphasis on goods and people movement, off-road equipment or agricultural equipment. Projects are scored in several weighted categories, which include relevance to attainment plans, co-benefits, technology cost-effectiveness, funding requested and leveraging, and project readiness. Submissions are then competitively evaluated and finalists are presented to the governing board for approval. For more information about TAP grants, please visit valleyair.org/grants or call the grants department at 559-230-6000. — Janelle Schneider is an outreach and communications representative with the San Joaquin Valley Air Pollution Control District. Previously, she was a newspaper editor and reporter.
Facebook photo prompts firing By Robin Paggi
T
he latest Facebook post that got an employee fired was a picture of the employee holding a cat with an arrow through its head along with these words: “My first bow kill lol. The only good feral tomcat is one with an arrow through it’s (sic) head! Vet of the year award . . . gladly accepted.” Vet of the year Robin Paggi award? What’s that about? Turns out the employee was a veterinarian who worked for the Washington Animal Clinic in Brenham, TX. The vet’s post went on to say: “And no I did not lose my job. Psshh. Like someone would get rid of me. I’m
awesome.” Except that after the post went viral and, according to a story on kbtx. com, the animal clinic received over 500 phone calls in one day about it, she was gotten rid of. Was it legal for the clinic to fire her? Yes, for a couple of reasons. The first reason is because a post like this one is not protected. Many employers are aware that Section 7 of the National Labor Relations Act protects employees’ Facebook posts when they discuss the terms and conditions of their employment. Because such discussions are considered to be “protected concerted activity,” employers may not discipline employees for them. Therefore, it is generally illegal to fire employees when they post things like “I’m overworked and underpaid,” or “my boss is an idiot,” or that type of thing. However, many people have come to believe that employers may not fire
employees for any of their Facebook posts. Not true. The further a post strays from talking about the terms and conditions of employment, the less likely it is protected. Thus, bragging about killing a cat – not protected. (Regardless, consult an attorney before firing for Facebook posts). The second reason is because the vet presented a conflict of interest for her employer. It is generally illegal for employers to discipline employees for conduct that occurs during nonworking hours away from the workplace. One exception to that is if the nature of the conduct disrupts the employer’s operations. For example, having to answer 500 phone calls or to lose business because of the employee’s actions. As Dr. Bruce Buenger, a representative of the clinic, said: “Our goal now is to go on and try to fix our black eye and hope that people are reasonable and understand that
those actions don’t in anyway, portray what we’re here for at Washington Animal Clinic. We put our heart and soul into this place.” (Again, consult an attorney before firing). Despite the controversy, the vet still has some supporters, such as one who said: “She’s amazing. She’s caring. She’s a good vet, so maybe her bad choice of posting something on Facebook was not good. But I don’t think she should be judged for it.” Oh, but she is being judged for it. Especially because an animal rescue group has since determined that the cat that the vet killed was not feral after all but was owned by an elderly couple. — Robin Paggi is the training coordinator at Worklogic HR where she creates and delivers workshops on topics such as harassment prevention, communication and supervisory skills. She can be reached at rpaggi@worklogiclegal.com or 695-5168.
June / July 2015
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June / July 2015