Kern Business Journal April/May 2016 by The Bakersfield Californian Specialty Publications

KERN Journal Business

Vol. 5, No. 2

A MEMBER O F T HE

Cover Story

TB C M E DIA FAM ILY

Why private property matters

Page 14

April / May 2016

Agriculture Issue

Sustainable agriculture By Beatris Espericueta Sanders

n a recent water meeting, GEI Consultants mentioned Kern County’s population is expected to increase by 1 million people by the year 2030. This statistic, combined with predictions of what the Sustainable Groundwater Management Act will do to Kern County agriculture, left many questions as to the future of our definition of “sustainable agriculture.” While water priorities have been a main topic in California Beatris Sanders politics in recent years, not prioritizing and defending agriculture concerns can also have serious ramifications. On a national scale, according to the Pew Research Center (a group that studies facts and trends of population shaping our world), the United States population is projected to increase by 89 million by 2050 – a 38 percent increase from 2010. In the agricultural producing Central Valley of California, which includes Kern, Tulare, See SUSTAINABLE FARMING on page 7

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

PHOTO BY COURTESY OF MISSION BANK / JOHN HARTE

Kern County farmer Jeff Mettler (right) has known Rob Hallum, Mission Bank’s senior vice president in charge of the agricultural division, since the two attended Bakersfield College together 30 years ago. Hallum understands farming and “is always open to new ideas,” says Mettler. “He continues to help me expand the ranch.” See story on Page 6.

Presorted Standard U.S. Postage PAID Bakersfield, CA Permit No. 838

INSIDE

Tehachapi couple’s vineyard dream comes true. Page 16

Farmers’ markets bear fruit in Bakersfield. Page 29

KERN BUSINESS JOURNAL

April / May 2016

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April / May 2016

Journal KERN Business Showcasing Kern County business and industry April / May 2016 Vol. 5, No. 2 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 Chief Marketing Officer Mike Skrocki 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 Mike Skrocki, Chief Marketing Officer mskrocki@bakersfield.com 661-395-7385 To subscribe 661-392-5777

KERN BUSINESS JOURNAL

Editor’s Note

Agriculture: The core of Kern County

ack when I was an undergrad at Fresno State 20 years ago, I would take a weekend drive back home to Bakersfield to visit my family and friends. I always enjoyed the straight arrow drive from Fresno to Bakersfield along Highway 99; there was something calming about seeing the rows and rows of agricultural fields dotting the busy thoroughfare. It reminded me of my grandparents who spent their lives as farm workers hoping their hard work would pay off in better opportunities for their children and grandchildren. It also reminded me of the core of what makes Kern County. Agriculture and Kern County are two words that you can’t mix up. Each year, the Kern Business Journal devotes an issue to agriculture, examining achievements and challenges facing the industry. The drought continues to be an important Olivia Garcia factor in the current and future planning of area farmers. It has even caught the attention at the congressional level where local attorney Doug Gosling writes that a California water law “authorizes the state to use both traditional and nontraditional methods of increasing the water supply and decreasing its use, such as relocating species of wildlife that are not native to California and purifying the water in the state’s many small river deltas.” Farmers who receive water must also make cutbacks and those who comply and use water-conserving technologies would reap some benefits, writes Gosling.

PHOTO BY CASEY CHRISTIE

Rows of almonds near Highway 99 stretch for miles and miles.

It is an interesting topic that you should read more about inside this issue. Meanwhile Beatris Espericueta Sanders, executive director of the Kern County Farm Bureau, takes on the topic of the Sustainable Groundwater Management Act in her column as well as the controversial solution that has been trending: vertical farming. And when it comes to technology, tech expert David A. Milazzo gives us an interesting take on the recent Apple v. FBI case, raising a question for companies about the need for mobile-device management. In the age where computers are protected by its organizations and companies, mobile-device management extends that protection to mobile devices assigned to employees. And local public relations and marketing consultant, Maureen Buscher-Dang delivers interesting points on why or when to consider having company tours and the benefits for both groups: the organization and the public. As many companies prefer a private property position, Buscher-Dang shows ways where company tours can work. In one example, she talks with those with Rio Tinto Minerals in eastern Kern, which has established a visitor center supported by mining veterans. The center also offers educational exhibits and more. See what she has to say in this issue.

Business at-a-glance Local receives national award

PHOTO COURTESY OF THE PETROLEUM CLUB

Petroleum Club’s new executive chef, Michael Kelly.

Petroleum Club hires new executive chef The Petroleum Club of Bakersfield named Michael Kelly as its new executive chef. Kelly comes to the Petroleum Club after serving as the executive chef for The Bistro at Four Points by Sheraton for 25 years. Kelly has more than 30 years of experience in the food industry and believes that presentation is nearly as important

as taste. “We’re very excited to have someone with his skill set join our team,” Dave Plivelich, president of the Petroleum Club of Bakersfield board, said in a news release. “Michael’s passion for his craft is immeasurable and we look forward to seeing the creative approach he brings to our member dining and banquets.”

– Kern Business Journal

Bakersfield native Jenifer Pitcher was presented with Keep America Beautiful’s Young Professional Award at Keep America Beautiful’s National Awards ceremony in Orlando, Florida. The event recognizes the passion and dedication of Keep America Beautiful’s community-based affiliates from across the nation. Pitcher is a volunteer who serves on the board of directors of Keep Bakersfield Beautiful. “Jenifer Pitcher is a natural born leader who advocates for various organizations to work together on common goals,” said Jennifer Jehn, president and CEO of Keep America Beautiful. “In addition to a full-time business career, she still finds the time to dedicate her time to Keep Bakersfield Beautiful. Jenifer’s energy is evident by virtue of the important community leadership positions she’s taken on in Bakersfield.” Since becoming involved with Keep Bakersfield Beautiful four years ago, Pitcher graduated from

the Kern Leaders Academy and currently sits on various boards and committees. She helped get a Jenifer Pitcher Keep America Beautiful Cigarette Litter Prevention Program grant, which helped pay for 25 cigarette litter receptacles, and her anti-litter committee spearheaded the “Litter: It’s Beneath Us” campaign.

– Kern Business Journal

Wasco retains Buxton to provide market intelligence The City of Wasco has entered into a partnership with the market research firm Buxton to strengthen the community’s retail development strategy. Buxton will help Wasco identify the retailers that are the best fit for the local community.

By partnering with Buxton, Wasco will utilize the same advanced consumer insights relied on by retailers for site selection decisions. Buxton’s proprietary web-based real estate platform SCOUT will give Wasco the ability to analyze development options and provide market intelligence to existing local businesses. “Wasco is committed to recruiting quality retailers and restaurants that appeal to residents,” said J. Paul Paris, city manager. “By partnering with Buxton, we will gain the knowledge and insights necessary to build a lasting retail recruitment strategy.” “Wasco is taking a strategic approach to retail development,” said Lisa McCay, vice president of sales at Buxton. “We will help city leaders identify the retail opportunities that best support the growing community in Wasco.” Buxton has worked with more than 700 cities nationwide to implement retail and tourism development strategies. Client cities in California include Hesperia, Temecula, San Bernardino and others.

– Kern Business Journal

KERN BUSINESS JOURNAL

Chamber Roundups Kern County Black Chamber of Commerce April 12 – Spring Wine and Dine 5:30 to 7:30 p.m. The Kitchen, 1317 20th St., Cooking demonstrations by local chefs. Discussions on healthy eating and business. $5, Members; $10, Non-members June 14 – June Mix and Mingle 5:30 to 7:30 p.m. The Padre Hotel, Prairie Fire, $5, Members; $10, Non-members. Join KCBCC and the Junior Black Chamber for an evening of networking in style. Please contact KCBCC at 326-1529 or via email at chamber@kcbcc.net for more information.

Greater Bakersfield Chamber of Commerce April 1 - June 22 – Leadership Bakersfield application process open. April 15, 22, 29 – Government Review Council; 7:30 to 8:30 a.m.; Greater Bakersfield Chamber of Commerce, 1725 Eye St. May 6, 13 – Government Review Council; 7:30 to 8:30 a.m.; Greater Bakersfield Chamber of Commerce, 1725 Eye St. May 16 – Philanthropy on Tap; 5 to 6 p.m.; Imbibe Wine and Spirits Merchant, 4140 Truxtun Ave. May 30 – Chamber Closed – Memorial Day June 3, 10 – Government Review Council;

April / May 2016

April, May and early June events

North of the River Chamber of Commerce

7:30 to 8:30 a.m.; Greater Bakersfield Chamber of Commerce, 1725 Eye St. June 4 – Beautiful Bakersfield Awards; Reception, 5 p.m.; Dinner, 6 p.m.; Awards, 7 p.m.; $50 per ticket; DoubleTree by Hilton, 3100 Camino Del Rio Court. June 6 – Philanthropy on Tap; 5 to 6 p.m.; Imbibe Wine and Spirits Merchant, 4140 Truxtun Ave. For information, please contact the Greater Bakersfield Chamber of Commerce at 327-4421 or visit www.bakersfieldchamber.org.

Kern County Hispanic Chamber of Commerce April 13 – Business Networking Mixer 5 to 7:30 p.m., Hosted by the Mark Restaurant, 1623 19th St. For more information, call 633-5495 $5, Members; $10, Non-members April 22 – KCHCC 4th annual Earth Day Luncheon, 11 a.m. to 1 p.m. California State University Bakersfield Sponsored by: Keep Bakersfield Beautiful, CSUB, Kern Green, Cal Water Company. For sponsorship opportunities or more information, call 633-5495. April 23 – Grand Opening & Ribbon Cutting Ceremony, Carniceria La Carreta, Inc. / 17th Anniversary, Arrival: 1:30 p.m., Ribbon cutting 2 p.m., 3015 Calloway Drive, Suite 16 For more information, call 633-5495. April 29 – 14th annual Cinco De Mayo Celebration, 6 to 11 p.m. Private residence within the Bakersfield Country Club. For more information, call 633-5495.

PHOTO BY ALBERTO E. RODRIGUEZ/GETTY IMAGES FOR DISNEY

Coach Jim White is the Special Guest Speaker at the NOR Chamber of Commerce luncheon April 14.

May 13 – Pan Dulce Club of Kern County Pan Dulce con Cafecito Location TBA – Refer to website: kchcc.org For more information, call 633-5495. May 5 – Small Business Week Luncheon 11 a.m. to 1 p.m., Doubletree by Hilton 3100 Camino del Rio Court. For ticket sales or further information, call 633-5495. May 11 – Business Networking Mixer 5:30 to 7:30 p.m., Hosted by Kern Federal Credit Union. Centro 18 Cuisine & Lounge, 1517 18th St. $5, Members; $10, Non-members For more information, call 633-5495. June 5 – 18th annual Latino Food Festival and Menudo Cook-Off, 11 a.m. to 6 p.m. Kern County Fairgrounds, 1142 P St. For more information, call 633-5495.

April 14 – NOR Chamber of Commerce Monthly Luncheon with Special Guest Speaker, Coach Jim White 11:30 a.m. to 1 p.m. Hodel’s Country Dining Featuring an inspiring luncheon with Coach Jim White of Disney’s McFarland USA. Coach White will share his experiences as a teacher and coach at McFarland High School as lead his cross country runners to win nine state championships. This will be an amazing opportunity to learn from White’s successes in an intimate setting while mixing and mingling with local leaders and small business owners. $20 Members, $25 Non-members Lunch is included. Separate donations to White’s scholarship fund are highly encouraged. May 9 – NOR Chamber of Commerce Golf Tournament, The Links at Riverlakes Shotgun starts at noon Team $450. Break out the clubs and enjoy the fresh air. The annual golf tournament will feature lunch, a shotgun scramble, dinner and awards. Plan to spend the day on a beautiful course making great connections with the NOR Chamber’s many members and tournament participants. Proceeds raised during the tournament will benefit the North of the River Chamber of Commerce’s many programs and events including the Scholarship Fund. So bring the sunscreen and your best team to help raise money for college bound North of the River high school seniors. Four-person scramble For more information, call 873-4709 or visit www.norchamber.org.

The new generation of farming By Jenny Holtermann

s our farm was looking to purchase new equipment, I took a stroll through YouTube to check out the latest and greatest of the multiple equipment manufacturers. I searched their Facebook accounts to view any pictures or videos of the most recent demonstrations they had done. I then tweeted to see who was attending the upcoming Nut Conference or farm shows. There is a new generation of farming and it looks quite different than how my father and grandfather did it. Today, I farm almonds with my husband’s family in Wasco; a farm that looks much different now than it did generations ago. Technology has changed the way we farm. From equipment purchases to irrigation efficiency, farmers today are adapting a to new generation of farming. Farming is a business, and with any business it evolves over time and adapts to the newest trends. According to the Almond Board of California, almond growers have increased their irrigation efficiency by 33 percent since 1994, by switching to micro irrigation technologies. When my husband came home to help manage his families farm a mere seven years ago, the farm was entirely on flood irrigation. Over the course of the next three years we updated

field by field to drip irrigation, a practice that 70 percent of California almonds farmers and 42 percent of all California farmers have also done (Department of Water Resources). With the decrease in water availability and increased regulations on the water supply, farmers have adopted efficiency as a way of life. Water monitoring is a new way of looking at irrigation as well. We have probes that are inserted into the soil layers of our fields to monitor moisture. These moisture monitors take data from the probes in the field and deliver it to our tablets and computers. Our farm is able to look at an app and know when we should irrigate. The app lets us know when water has been drawn out of the soil and the roots are drying out. In my grandfathers’ era, the moisture monitors were their shovels. They used to dig a hole and see if the ground was damp or not. We have come a long way in efficiency since the old shovel era. Some farmers can even turn on their irrigation systems by pushing a button on their computers, miles away. When it comes down to decisions on efficiency we don’t just look at what is the best business decision, we also look at what is the best decision for the land. Farmers depend on their land year after year to deliver the best results to them. It is our job to be stewards and protect our

land so it can be productive for us. As a family farmer, I hope to be able to pass my land on to the next generation, through the care we give it today that will allow us to be able to do just that. Farmers are becoming more innovative and creative thinkers. By using social media to connect with equipment manufacturers to monitoring our soil from an app, we are switching to more efficient and effective means of doing business. It is the next generation of farmers that are stretching the mindset of what it means to farm. – Jenny Holtermann grew up on her family’s almond and walnut farm in Chico, California. She graduated from Cal Poly, San Luis Obispo with a bachelor’s degree in Ag Business Marketing and Fruit Science. After working in agriculture sales for five years she is now farming almonds with her husband and his family in Wasco. Jenny writes a blog and is active on social media under the handle Almond Girl Jenny, where she writes about farming, family, almond recipes and California agriculture. Jenny serves on the Executive Committee of the Kern County Farm Bureau, is 2nd Vice Chair for the California Young Farmers and Ranchers, past chair of Kern County California Women for Agriculture and is a member of the Almond Board of California Industry Services Committee.

April / May 2016

KERN BUSINESS JOURNAL

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KERN BUSINESS JOURNAL

April / May 2016

Left: Farmer Jeff Mettler worked with Mission Bank’s Rod Hallum to obtain financing to add grapes to his ranch in southern Kern County. Bottom: Fourth-generation Kern County farmer Jeff Mettler walks through his citrus grove at the base of the Grapevine. “It’s impossible to eat just one,” he says of his tangerines. PHOTOS BY COURTESY OF MISSION BANK / JOHN HARTE

Local organic farmer’s business thrives By Maureen Buscher-Dang

s a light fog lifted on a recent morning, the foothills at the base of the Grapevine rose above Jeff Mettler’s farm. The fourth-generation Kern County farmer surveyed his 400 acres of citrus and row crops with a sense of pride. “Not long ago, someone emailed me twice just to tell me my organic fruit was the best they had ever eaten. That made me feel really great,” said Maureen Buscher-Dang Mettler, who markets his fruit through Home Grown Organic Farms in Porterville. Wading into a citrus grove, with his two Golden Labs running at his side, Mettler picked a ripe tangerine, peeled it open and declared, “It’s impossible to eat just one. These are the same type of popular tangerines that can be found in almost any grocery store.” Mettler has faced many challenges in his three decades of farming. Most recently he has struggled to produce crops during California’s persistent, multi-year drought. But his considerable farming skills, hard work and supportive resources have allowed his business to thrive. Included in these resources is his good friend Rob Hallum, the senior vice president in charge of Mission Bank’s agricultural division. “Rob and I have known each other for 30 years since we both attended Bakersfield College. Farming has its ups and down. It’s important for a banker to be a good listener and understand farming.”

Noting Hallum and his Mission Bank team feel like a partnership that began with the purchase of the ranch, Mettler said, “Rob is always open to new ideas. And he continues to help me expand the ranch.” “We recently planted these grapes,” Mettler noted, as he walked through a new vineyard. “They are the latest project. Rob helped me with the financing to get this started. We get together and get stuff done. To be successful in farming, you need a financial partner who is willing to collaborate.” “Banks with an agricultural specialty, such as Mission Bank, are committed to the industry,” Hallum said. “They understand and accept the volatility that is inherent in the agricultural industry. Sometimes you will see a bank suddenly begin reaching out to the agricultural industry. But without that understanding, they will back out of the business, declaring it too risky or too complicated. Our commitment is for the long term.” Hallum credited this commitment to customers, including those in agriculture, for helping Mission Bank achieve in 2015, a 22 percent increase in net income over the previous year. In the fourth quarter alone, Mission’s earnings increased 60 percent over the fourth quarter of 2014. And the bank set a record by achieving 67 consecutive profitable quarters. “Mission’s strong 2015 financial performance reflects the bank’s focus on its relationships with its customers and its communities,” said A.J. Antongiovanni, Mission Bank’s president and chief executive officer. “It’s all about ‘relationship banking,’ which places a priority on providing a wide range of high qualityservices to local businesses.”

In unaudited financial information, Mission Bancorp reported net income of $1.3 million and $3.7 million for the fourth quarter and year ending Dec. 31, 2015, respectively. These net income figures reflect a 60 percent and 22 percent increase, respectively, over last year’s comparable quarter and year ending Dec. 31, 2014. “Mission’s loan portfolio continues to exhibit strong growth, which is driving increases in earnings,” said Michael Congdon, chief credit officer at Mission Bank, who credited the bank’s “personal touches” for the strong performance. “In addition to providing traditional services, such as taking deposits, cashing checks, opening new accounts, sending wire transfers and researching account issues, Mission’s experienced bankers frequently go to a customer’s location to conduct business, rather than having them come to the bank.

Banks with an agricultural specialty, such as Mission Bank, are committed to the industry. – Rob Hallum

“This enables local bankers to work directly with customers to make lending decisions in a matter of days, compared to customers having to wait weeks and months for an answer from a national or regional bank,” Congdon said. “The drought is posing both challenges and opportunities,” Hallum said. “Many thousands of acres that rely on water distributed from federal or state projects have been taken out of production. But some service industries, such as well drilling and repair,

are going 24/7. And farmers are installing sophisticated and innovative systems to stretch limited water supplies to maximize production. Mission Bank has provided loans for some of these systems due to their high costs. Wells can cost as much as $800,000.” At the close of 2015, Mission had set a record with its outstanding loans increasing to $302.5 million. Loans increased $28.6 million, or 10 percent, in the fourth quarter of 2015 and $49.8 million, or 20 percent, for 2015 compared to 2014. Shareholders’ equity increased $3.8 million, or 10 percent, to $42.1 million at Dec. 31, 2015, compared to $38.3 million at Dec. 31, 2014. “Growth in our loan portfolio and net interest income, as well as decreases in non-interest expenses, resulted in this equity increase,” said Antongiovanni, reporting that Return on Average Assets and Return on Average Equity increased to 1.10 percent and 12.95 percent, respectively. Book value per share increased $2.36, or 9 percent, to $28.13 at Dec. 31, 2015, compared to the previous year. Headquartered in Bakersfield, Mission Bancorp is the parent holding company of two wholly owned subsidiaries, Mission Bank and Mission Bank 1031 Exchange, LLC, and a 50-percent owner of Double W, LLC, an entity that owns commercial property, including the Bank’s Shafter Business Banking Center. Mission Bancorp has seven Business Banking Centers, serving the greater areas of Bakersfield, Lancaster, Mojave and Ridgecrest. – Maureen Buscher-Dang is a Bakersfield public relations and marketing consultant. She can be contacted at www.buschermarketing.com.

April / May 2016

Sustainable Farming Continued from page 1

Fresno, Kings, Madera and Merced counties, we produce $31.6 billion of the overall $64.6 billion industry in our state. The Central Valley alone can be considered responsible for feeding much of our nation and beyond and is often referred to as the breadbasket of the world. However, projected cuts to agriculture statewide are around 20 percent in 2020, when SGMA begins to be implemented. Vertical farming is a controversial solution trending as a potential answer to the global food shortage, which is a constant subject of discussion across social media outlets. Plants are growing in vertical stacks, indoors, without natural soil or sunlight. Vertical farmers are producing in 15 days in what would take 30 days to grow in a field. New advances in genetic modification technologies are also driving costs down to produce food this way. A large warehouse in Newark, New Jersey, is the largest vertical farm in the world, producing more than 2 million pounds of salad vegetables each year.

KERN BUSINESS JOURNAL

As Kern County and the rest of California battles environmental laws protecting a fish species —which may or may not be native to California — solutions to the problems of declining agri-

Vertical farming is a controversial solution trending as a potential answer to the global food shortage culture due to these environmental laws and the projected increase in population growth may not be so environmentally friendly after all. Many environmental groups are creating more problems than solutions for future generations. It is in our county’s best interest, then, that our attention is called to solving the delta plumbing problem to send water south for agricultural uses, which is crucial to keeping very basic practices involved in growing food here in the Central Valley: water, natural soil and California sunshine. – Beatris Espericueta Sanders is the executive director of the Kern County Farm Bureau.

The Newark Vertical Farm is both a demonstration project and a laboratory. It is envisioned to be a flexible armature for uses relating to vertical farming, urban agriculture, sustainable design and energy efficiency.

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KERN BUSINESS JOURNAL

April / May 2016

Boys and Girls Clubs of Kern County

Bakersfield employers needed for PG&E Summer Jobs Program By Maggie Cushine

wo of the major institutions traditionally responsible for providing young people with basic and pre-employment skills necessary to enter the workforce are family and the education system. Shifts in the nature of families (increases in the number of single-parent households, families with two parents working, etc.) experienced over the past few decades have weakened the ability of many families to provide the necessary information and support to prepare youth to successfully enter the workforce. At the same time, many young people are leaving school without the preparation they need for employment. While the Boys & Girls Clubs have long provided youth with career training, until recently, the organization hadn’t been able to connect our young trainees to jobs. Because of this need for our youth, Pacific Gas and Electric (PG&E) five years ago began a partnership with the Boys & Girls Clubs in Fresno that expanded to include Bakersfield and Sacramento to provide teens with basic and pre-employment skills along with the opportunity to apply and compete for six-week paid summer jobs. Building on the success of the Summer Jobs Program last year, which trained more than 300 Bakersfield teens and put 55 youth to work, PG&E, in partnership with the Boys & Girls Clubs of Kern County, will again provide job readiness training from March 7 to May 13 at two club sites (Armstrong Youth Center in east

The Boys and Girls Clubs have partnered with PG&E to provide job training.

Bakersfield and Subaru Club in southwest Bakersfield) and the opportunity for paid summer employment for local teens. The club members learned everything from how to build resumes to interviewing techniques to setting goals to improving communication skills. Employment opportunities last year were provided by 26 companies, including the Boys & Girls Clubs of Kern County, PG&E and local nonprofit organizations such as Hearts Connection, Bakersfield Museum of Art and Bakersfield Symphony Orchestra,

How does congressional water law affect farms in California?

as well as local small- to medium-sized businesses, including House of Flowers, Too Fat Sandwiches and Best Party Rentals. Once on the worksite, the trained, interviewed and selected teens assist employers with daily tasks, learn the basics of an entry-level job and gain valuable work experience. Bakersfield job sites are needed and you are invited to join with other businesses in mentoring a PG&E Summer Jobs Program teen or two this summer for the six-week paid (20 hours per week) internship from

By Doug Gosling

ecause of California’s drought, Congress enacted legislation called the California Long-Term Provisions for Water Supply and Short-Term Provisions for Emergency Drought Relief Act, or S.2283. In short, this act empowers the state of California to act to alleviate the problems caused by drought. Title IV of the act covers the subject of water rights and reads that the state can reallocate water as necessary to fulfill the guidelines of the State Water Project. Water rights that were in place prior to Dec. 19, 1914, are exempt. Obviously, such applications of California water law will have an impact on farms. A farm that broke ground after the winter 1914, for example, could have some, most or all of its water shifted elsewhere. On the other hand, the act says that the state needs more Doug Gosling water than it has and makes provisions for getting that water. California’s water problems are severe enough, in fact,

June 20 through July 29. The Boys & Girls Clubs of Kern County, through the partnership with PG&E, covers ALL job-related costs, including salary, workers’ compensation insurance, payroll processing and taxes. In addition to their earnings, each young person – many from underserved households – receives professional work attire, the opportunity to open a bank account, a stipend for transportation to and from work and weekly opportunities for professional development. The deadline for companies to sign up is May 25. Please call Angel at the Boys & Girls Clubs of Kern County at 325-3730 to sign up or visit www.bgclubsofkerncounty. org for more information. – Maggie Cushine is the resource development director for the Boys & Girls Club of Kern County.

that the act authorizes the state to use both traditional and nontraditional methods of increasing the water supply and decreasing its use, such as relocating species of wildlife that are not native to California and purifying the water in the state’s many small river deltas. Qualifying farms will have access to the water from these deltas. In most cases, receiving the water comes along with mandatory cutbacks, such as using drip irrigation systems instead of traditional irrigation. To encourage compliance, the act authorizes the state to pay farmers, in addition to allocating water to them, if they use water-conserving technologies. With the changes in water law brought about by the worst drought in California history, people affected by the legislation governing water and its use need someplace to get answers to their questions. To learn more about your options under the new legislation, contact a water rights attorney to learn not only how to comply with the new water law, but also to find out the ways that it may benefit you. – Doug Gosling is a partner at Young Wooldridge, LLP specializing in water law and business litigation.

April / May 2016

KERN BUSINESS JOURNAL

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April / May 2016

Company Tours

‘Open doors’ benefit most businesses By Maureen Buscher-Dang

s the old saying goes, “Good fences make good neighbors.” While this might apply to housing tracts, it’s not always the best idea for businesses. Often a “Keep Out” policy results in a company missing out on a chance to get much needed public support and understanding. When you are rightly focusing on your business goals – providing a quality product or service in a cost-effective, efficient way – the last Maureen Buscher-Dang thing you want are pesky neighbors, or the public, in general, poking around your company. But for those companies that have thrown open their doors or extended their hands, the benefits have been substantial. Consider Roll Global, the parent company of Paramount Citrus, which is now known as The Wonderful Company. In 2012, the company opened its massive, innovative citrus packinghouse in Delano. Thousands of news reporters and members of the public were invited inside to take a look. Located on 44 acres of land adjacent to Highway 99, the facility measured 640,000 square feet and was considered the world’s largest citrus packinghouse when it opened. An obviously proud Stewart Resnick, chairman and owner of Roll Global, told an audience at the plant’s ribbon cutting that “it’s not about being the biggest; it’s about striving to be the best in the industry.” Some industries, particularly the food industry, must limit access to processing plants for security reasons. The Wonderful Company is no exception. But that has not stopped company officials from being neighborly. “We are proud to offer a limited number of educational tours to local high school and university student groups at our Wonderful Halos plant in Delano,” said David Krause, president of Wonderful Halos, adding that “this season, we will sort nearly 2 billion servings of our sweet, seedless and easy-to-peel Halos mandarins. Our state-ofthe-art plant is more than 11 football fields long and features one of the largest rooftop solar installations in America.” In eastern Kern County, Rio Tinto Minerals not only welcomes visitors to its massive open pit mine near Boron, but it built a visitor center in 1997 that is staffed by mining veterans. The visitor center features an observation deck that overlooks mining operations, as well as educational exhibits. Rio Tinto spokesman John Brown explained that so many visitors were just

PHOTO COURTESY OF RIO TINTO MINERALS

Students study exhibits in the visitor center at the open pit mine Rio Tinto Minerals operates near the eastern Kern County community of Boron. Constructed in 1997, the center greets thousands of visitors each year.

showing up unannounced at the historic mine’s entrance that the company created an educational visitor center to provide a safe, informative way for the public to learn about the mine, its mineral extraction and the many uses for the minerals. “There is a huge public interest in knowing what is happening at the mine,” he said, explaining the visitor center also helps Rio Tinto feel connected to the community. “We are committed to being transparent. It is part of our core values,” said Brown. A leader in borate technology, research and development, the company also has a stated commitment to ensuring its “practices and products are socially, environmentally and economically sustainable.” The Rio Tinto Boron Mine, which was formerly known as the U.S. Borax Boron Mine, and before that as the Pacific Coast Borax Co., is located north of Highway 58, near the community of Boron. It is California’s largest open-pit mine and is considered the largest borax mine in the world, producing nearly half of the world’s borates. It is estimated that the mine will continue producing well into the 2050s. The mine traces its roots to California’s Death Valley, where borate deposits were discovered in 1872. The current open pit mine began as an underground mine in 1927. Surface mining began in the late 1950s. Rio Tinto acquired U.S. Borax in 1968. There is little mystery why the public is so curious about the mine, which was made famous by the owner’s decades-long sponsorship of “Death Valley Days,” a radio and television show that featured true stories

PHOTO COURTESY OF MAUREEN BUSCHER-DANG

During a tour celebrating the opening of The Wonderful Company citrus packing house in Delano, a worker is observed separating fruit. The company continues to provide plant tours for high school and college groups.

of the old West. One of the show’s most famous hosts was Ronald Reagan, who went on to become California governor and U.S. president. Advertised on the show were the company’s 20 Mule Team Borax cleansers. The twenty-mule teams used to haul ore out of the remote desert continue to serve as the company’s symbol. The mine’s visitor center is open daily from 9 a.m. to 5 p.m. Admission is free, but donations can be made to the Borax Visitor

Center Foundation. The money is contributed to local nonprofit organizations. Another leader in public outreach is the Kern County Water Agency. Instead of giving tours of its water conveyance and treatment facilities, the agency conducts an educational program funded by the water purveyors in Improvement District 4 – the California Water Service Company, City of Bakersfield, East Niles Community Services District, North of the River Municipal Water District and Vaughn Water Co. The free program incorporates teacher workshops, curriculum materials, assemblies, classroom presentations and student contests. An average of 10,000 students – kindergarten through 12th grade – participate annually. “Each year, the program educates thousands of local students about Kern County’s local and state water supplies, and the importance of water and its conservation,” explained Jeanne Varga, the agency’s public information consultant. “This provides the opportunity to make informed decisions when it comes to water and its conservation.” These three major Kern County companies have concluded that it is in their business’ best interest to open their doors to the public. Should your company reach the same conclusion? • Should you say “yes” rather than “no”? Even companies in highly competitive industries that wish to keep propriety information about innovative systems secret have found ways to say yes. Consider distribution giant Amazon. The company selected six of its “fulfillment centers” – San Bernardino, California, Phoenix, Arizona; Chattanooga, Tennessee; Chester, Virginia; Jeffersonville, Indiana; and Middletown, Delaware – to open for tours. Go to www.amazonfctours.com to see how they do it. • How should you structure your tour? Likely you are receiving tour requests. What are people asking to see? How can a tour be arranged without significantly interfering with your operations? Generally limit a tour’s duration to one hour. Limit the times tours are offered. And set ground rules. Many companies do not allow visitors to photograph operations, for example. • Who should conduct a tour? Assign a personable, knowledgeable and responsible employee. To showcase your company, the tour guide should be capable of answering questions and handling problems if they occur. – Maureen Buscher-Dang is a Bakersfield public relations and marketing consultant. She can be contacted at www.buschermarketing.com

April / May 2016

KERN BUSINESS JOURNAL

How to protect workers from valley fever exposure By James Yoro and Beatriz Trejo

idden in the fertile soil of Kern County lies Coccidiodes immitis, or valley fever as the locals have come to call it. Although the fungus that causes valley fever can be found in most of California, it disproportionately affects Kern County and its many outdoor-related businesses. A recent cluster of work-related cases of valley fever in the Central Valley have drawn attention to the related health risks faced by many California workers whose jobs may expose them to fungal spores found in soil. The fungus lives in the top 2 to 12 inches of soil, and it can easily become airborne when the soil is disturbed by activities such as digging or plowing, or even by high winds. Once the spores enter the body, symptoms may not develop for seven to 20 days. The symptoms of valley fever vary from person to person. For some, valley fever will manifest in the form of a common cold, which may not require medical attention. For others, valley James Yoro fever will manifest in the form of severe pneumonia-like symptoms, rashes and arthritis-like pain. The fungus can disseminate to other parts of the body including bones, brain, liver, kidney and spinal cord. At this point, the disease can be life threatening. So how can employers minimize the risk of valley fever exposure? Determine if the worksite is in an area where valley fever is endemic (consistently present). Check with your local health department to determine whether cases have been known to occur in the proximity of your work area. Beatriz Trejo When working with soil, make sure to keep disturbed soil wet. Stabilize soil piles by using ground covers, such as tarps. Limit workers’ exposure to outdoor dust in disease-endemic areas. For example, suspend work during heavy wind or dust storms and minimize the amount of soil disturbed. Employers should take measures to avoid transporting the fungus off-site by cleaning

When working with soil, it’s important to keep disturbed soil wet.

tools, equipment and vehicles. If employees’ clothing is likely to be heavily contaminated with dust, provide coveralls. When exposure to dust is unavoidable, provide NIOSH-approved respiratory protection with particulate filters rated as N95, N99, N100, P100 or HEPA. Household materials such as washcloths, bandanas and handkerchiefs do not protect workers from breathing in dust and spores. Employers have a legal responsibility to immediately report to Cal/OSHA any serious injury, illness or death, including any due to valley fever, if the injury occurred in a place of employment or in connection with any employment. – James Yoro is senior partner at Chain | Cohn | Stiles, where he manages the law firm’s workers’ compensation practice, and has nearly 40 years of experience in his field. Beatriz Trejo is an associate attorney in the workers’ compensation department at Chain | Cohn | Stiles.

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April / May 2016

Tourism Update

Wrestlers, racers and more

MIKE GRIFFITH / FOR THE CALIFORNIAN

Adam Sorokin goes wheels up off the starting line at Famoso Raceway.

NICK ELLIS / FOR THE CALIFORNIAN

CIF State Wrestling championships at Rabobank Arena.

By David Lyman, PhD

restlers and racers return: The CIF State Boys Wrestling Championships returned to Bakersfield’s Rabobank Arena March 4 and 5, continuing a tradition that began earlier this century. Last year, Bakersfield won a five-year bid that will keep wrestlers coming back to Bakersfield through at least 2020. That same weekend saw the return of March Meet at Auto Club Famoso Raceway. Both events helped to fill up local hotels and restaurants. The previous weekend saw the return of Winter Showdown at Kern County Raceway Park, bringing racers, their crews and fans from throughout the country to Bakersfield. Hotel upgrades Two Bakersfield hotels are the latest to have undergone major renovations. The Residence Inn by Marriott, 4241 Chester Lane, recently celebrated its 25th anDavid Lyman, PhD niversary with a $2.5 million renovation. Improvements were made to the gatehouse, meeting space, and all the suites: the living rooms, bedrooms, bathrooms, and kitchens now sport a contemporary look at this extended-stay hotel. The SpringHill Suites Bakersfield, 3801 Marriott Drive,

completed its $1.8 million upgrade in the first quarter of 2016, which included completely renovated guest rooms. The Bakersfield location is the first SpringHill Suites with this new design package. In addition, there is all new furniture in the lobby with a custom communal table, the Board Room has seating for 14 with a new 65-inch TV to assist with presentations, and a Digital Art Gallery was added: three panels with rotating art work and a center panel touch screen that features area information.

TOM MACHT / FOR THE CALIFORNIAN

Winter Showdown at Kern County Raceway Park.

Positive press Bakersfield ranks high among the nation’s largest cities when it comes to activities and attractions, according to WalletHub.com. In looking at the largest 150 cities in the U.S., WalletHub ranked Bakersfield No. 27 for activities and attractions. The analysis looked at the number of attractions in each city, its popularity as a travel destination, its WalletHub “Foodie City” rank, and its WalletHub “Weather” rank. Bakersfield’s rank of 27th placed it higher than Denver (30th), Miami (32nd), Philadelphia (35th), Washington, D.C (46th), and Chicago (52nd). Website wins award Bakersfield’s new tourism website has won an award Continued on page 13

Guest room at the Residence Inn by Marriott.

April / May 2016

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SCHOOL OF BUSINESS AND PUBLIC ADMINISTRATION Continued from page 12 from international travel association HSMAI, the Hospitality Sales & Marketing Association International. HSMAI conveyed its Bronze Adrian Award to VisitBakersfield.com in the category of website design at an awards gala Feb. 16. The black-tie event was held at the New York Marriott Marquis and was attended by more than 1,000 hospitality, travel, and tourism-marketing executives. This year’s contest was one of the most competitive in the history of HSMAI, with more than 1,300 entries from around the world. Entries were judged by distinguished executives from all sectors of the industry. The new VisitBakersfield.com was

created by Tempest Interactive Media, LLC. The website’s fresh, vibrant, and colorful appearance was specially designed to be viewed on a variety of platforms, including tablets, smart phones, and other mobile devices. Lucky 1,300: Bakersfield is home to the 1,300th Motel 6, which opened December 2015. – David Lyman is manager of Visit Bakersfield. For information on upcoming events, check out the Events Calendar at VisitBakersfield.com. To learn how easy it is to bring your group or event to Bakersfield, call toll free (866) 425-7353.

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April / May 2016

Why private property rights matter to the future of farms, ranches By Julie Barnett

arms and ranches have the unique position of being between federally held wildlife areas and national parks and urban settlements. The history of property ownership has much to do with the values of our country and the reasons our country came into existence. Many of the original settlers came to the United States to have the opportunity for one right – to own their own land and not be beholden to the feudal landlords of Europe. Julie Barnett So when the rights to own and operate on private property are threatened, it tears at the basic fabric of what has made this country what it is – the land of opportunity. When we as a nation question the rights of anyone to own and operate property, we put the basis of the land of opportunity in jeopardy. The size of the land holding does not matter, what does matter is the fact that government grabbing of land to become the primary landowner in the western United States harkens to the system in feudal Europe, where permission or favor of those in power positions is required to pursue the security of land or property ownership.

There is a deep human connection to the land, and those that farm or ranch have taken up the responsibility to be good stewards of the soil and those that depend on it. Let’s be clear here – it is not the intent of a farmer or rancher to only benefit themselves, but the very nature of the business of farming and ranching is to grow food for an ever-increasing world population. The responsibility of our job is to feed people, and the dream of our job is to leave a legacy of a family of farmers and ranchers to be here for generations to continue to feed people through good stewardship of resources. The demands being made on ranchers

and farmers to give up the efficiency of their operations, to give up homesteaded land that has been carefully tended by generations, is a warning sign to every business owner, home owner, and person in our country. Already, farms and ranches are being lost in record numbers to urban pressures to own land and government land acquisitions. We understand the desire to have a piece of the American dream, but in the process let’s not cut our access to a safe and reliable food supply available right here on our country’s home soil. Many states have been in the process of implementing Right to Farm legislation to protect the rights of those who raise our

food. The process of feeding us is complex. Government regulations and limits on resources are continually demanding that we do more with less – less land, less water and less inputs. The amazing thing is that both farmers and ranchers have stepped up to the plate and made it happen and maintained a healthy harvest of food. It is a testament to the adaptability of those that feed us. The United States still has one of the safest and most reliable food supplies in the world, because of the “can do” attitude of those that raise our food and livestock. No one will take as good of care of the land as the one who owns it and intends on building a legacy of producing food raised in the USA for generations to come. We hope you take time to understand the need for private property rights protection for the safety and sustainability of food for future generations of your family, and our country. Your grandchildren and great grandchildren will thank you. – Julie Barnett is currently the Vice president of Kern County Cattlewomen and Scholarship Committee Chairman. In 2015, she was honored by the organization as Cattlewoman of the Year. She is passionate about supporting future generations of agriculture producers to assure a safe and adequate U.S. grown food supply.

April / May 2016

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Accelerated expensing opportunities for growers of orchards, vineyards By Joel A. Bock

istorically, when a grower planted a new orchard or vineyard or purchased an existing orchard or vineyard, the trees or vines would generally be depreciated over a 10 year period starting on the date the assets were placed in service. Until recently, there was no tax authority that would allow any accelerated cost recovery. In recent years, two opportunities to recognize expenses related to the purchase or development of an orchard or vineyard in an accelerated manner have arisen. These two opportunities are generally referred to as “Section 179 expense” and “bonus depreciation,” respectively. For decades, the Internal Revenue Service maintained the position, which was initially stated in Revenue Ruling 67-51, that orchards and vineyards Joel A. Bock were ineligible to be expensed under Internal Revenue Code Section 179. Many tax

practitioners have held the opinion that the position of the Internal Revenue Service was incorrect since the passage of the Tax Reform Act of 1986 in which the definition of “Section 179 property” was changed. On May 9, 2012, the Internal Revenue Service Office of Chief Counsel officially reversed its position through the issuance a memorandum (Chief Counsel Advise 201234024). This memorandum clarified that orchards and vineyards (including capitalized preproductive costs, if applicable, but excluding the cost of the land) that have reached an income-producing stage are eligible for “Section 179 expense” whether acquired by purchase from a third party or planted and grown by the grower. A very recent change in tax law providing an accelerated depreciation opportunity for growers was contained in the Protecting Americans from Tax Hikes Act of 2015 (PATH Act). The PATH Act, which was signed into law on Dec. 18, 2015, has allowed certain fruit- or nut-bearing trees, vines or plants that are planted or grafted after Dec. 31, 2015, to be eligible for “50 percent bonus depreciation” at the time of planting or grafting rather than when the

The PATH Act, which was signed into law on Dec. 18, 2015, has allowed certain fruit- or nut-bearing trees, vines or plants that are planted or grafted after Dec. 31, 2015, to be eligible for “50 percent bonus depreciation” at the time of planting or grafting rather than when the assets are placed in service. assets are placed in service. As its name suggests, “50 percent bonus depreciation” allows for 50 percent of the cost of eligible property to be expensed at the aforementioned time as opposed to being depreciated over a 10 year period. Since the asset

would generally not be placed in service until it produces a “marketable quantity,” (i.e., the revenue exceeds the cost of harvest) the new law included in the PATH Act could accelerate the timing of this deduction by approximately four or more years. While these provisions may benefit growers from a federal tax perspective, it is unlikely that there will be any benefit from a California state tax perspective. California does not currently conform to the federal tax laws for “50 percent bonus depreciation.” Also, while California does partially conform to Internal Revenue Code Section 179, California’s lower annual expensing amount as well as the lower phase out limit (based upon the amount of “Section 179 property” placed in service during a year) makes this option much less likely to yield a California state tax benefit. 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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April / May 2016

Dorner Wedding -- Tables and chairs are set up for a wedding at the Dorner Family Vineyard in Tehachapi’s Cummings Valley. The popular wedding venue at 18274 Old Ranch Road can accommodate groups of up to 250 people. Dorner Zinfandel – Zinfandel grapes hang from the vines at the Dorner Family Vineyard at 18274 Old Ranch Road in Tehachapi. The vineyard is a popular wedding venue, and wine grape growing and wine making facility. PHOTOS COURTESY OF DORNER FAMILY VINEYARD

Tehachapi couple’s vineyard dream comes true By Kelly Bearden

ichael and Michele Dorner have a more than threedecade love affair with Tehachapi. It began when the family lived in Torrance and Michael hunted in the Tehachapi area. When Michael retired as a Los Angeles County sheriff’s deputy, the couple decided to shed their city life. They bought 20 acres of land in Tehachapi’s scenic Cummings Valley, where they built a house, opened a general contracting Kelly Bearden business and raised their two sons. The years went by and the sons grew up. Finding themselves empty nesters, the Dorners strapped packs onto their backs and headed out for the trip they had always dreamed of taking – a monthslong rambling through Europe. And it was on that trip that the Dorners embraced a new dream. Upon returning in 2009, they decided to plant a small,

boutique vineyard in what has become Tehachapi’s blossoming wine-growing region. “This is an outstanding area. There are five vineyards, with four producing wines or having their wines made,” said Michael, who believes the region eventually will rival Napa. Growers have formed the Tehachapi Mountain Valleys Wine Growers Association to promote the area and eventually hope to have it federally recognized as an “American viticulture area.” “During our time in Europe, we fell in love with riesling and ice wines in Germany and the architecture of Tuscany, Italy,” recalled Michele. Tehachapi neighbors Bob and Patty Souza, the owners of the Souza Family Vineyard and the region’s wine grape growing pioneers encouraged the Dorners to plant their first 100 vines. After a year, they expanded the vineyard to its present 500 riesling and zinfandel grapevines. While other area growers send their grapes to outside wineries to be crushed and bottled, the Dorners recognized the cost effectiveness of making and bottling their own wines, which have won acclaim in international competitions. The Dorner

Family Vineyard is Tehachapi’s first winemaking facility. “Michael is the winemaker. And at this point we have no employees. We are doing all the work ourselves,” said Michele, who predicted they would likely keep their vineyard to 500 vines and buy additional wine grapes as needed from their neighbors. “These are our babies. They are very delicate. It’s a lot of work.” For now, the Dorners’ primary focus is developing their vineyard at 18274 Old Ranch Road, Tehachapi, into a popular wedding venue. From May to October, the vineyard and a historic barn facade are the backdrops for weddings every weekend. “We now are booked two years out,” Michele said. The Dorner Family Vineyard offers a variety of services and features a four-day package that gives wedding parties days of access to the property for wedding preparations and celebrations. See www.dornerfamilyvineyard.com for details about the facilities and services. The vineyard can host up to 250 people on its tree-studded grounds. The gardens are surrounded by a lush lawn and colorful flowerbeds, with a raised deck that serves as a dance floor, a white trellis gazebo, koi pond, a waterfall and stone patio providing accents. Construction of a wine-tasting room and four one-bedroom cottages are underway. As the Dorners’ dream took shape and business hurdles needed to be cleared, they turned to the Small Business Development Center at Cal State Bakersfield for help and guidance. “I first met Michael and Michele Dorner a couple of years ago at the Greater Tehachapi Economic Development Corp.,”

recalled Jay Thompson, an SBDC consultant. “We got together shortly after to discuss their business and I was thoroughly impressed by their professionalism, work ethic and attention to detail. “The Dorners are great people – the kind you would like to hang out with while enjoying a lazy afternoon. They own one of the premier properties in the area and I always enjoy listening to them share their vision for developing it and expanding their business to serve their community and beyond.” “Jay has helped us with our financial planning and identifying sources of financing as we have grown,” Michele said. “We are thankful for the many strategies Jay has suggested.” The Dorners plan to continue working with their SBDC consultant to fine-tune their business plans and grow Dorner Family Vineyards. “The Dorner Family Vineyard is a team effort and we plan for the SBDC to be part of that team for a long time to come,” they said. The Small Business Development Center at CSUB is one of five service centers within 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 oneon-one consulting, small business training and research. For more information, go to csub.edu/sbdc. – Kelly Bearden is the director of the Small Business Development Center at Cal State Bakersfield.

April / May 2016

KERN BUSINESS JOURNAL

Kern County agricultural scenes From capturekerncounty.com

2 3

1) Photo courtesy of Navdeep Singh – Survived the blades of harvesting 2) Photo courtesy of Charles Noble – Hay rake 3) Photo courtesy of Allen Humphrey – Planting along Bena Road and

Caliente Creek

4) Photo courtesy of Jay Billings – Morning Light 5) Photo courtesy of Jay Billings – Almond Sky 6) Photo courtesy of Javier Gonzalez – Clouds & Water

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April / May 2016

New laws challenge hiring, paying employees By Holly Culhane

rom the beginning of the hiring process, through the issuance of pay checks and all the way through separation, California employers are under increasing scrutiny. Laws are sweeping the nation that address growing concerns over pay inequities and alleged discrimiHolly Culhane natory practices. Receiving a lot of publicity these days is the spreading “Ban the Box” campaign, which proposes to prevent employers from asking job applicants about their criminal histories – or running background checks – until applicants are given conditional offers of employment. The reasoning is that applicants accused or convicted of even minor crimes may be disqualified from consideration before hiring processes begin. And with a disproportionate number of minorities falling into the criminal justice system, minority applicants are the most likely to be disqualified. Hundreds of cities and counties, and several states, including the State of California, have passed such bans. Similar laws are being considered by Congress. A compre-

hensive federal ban may be looming. Addressing situations in which women are paid less than their male colleagues, the Legislature passed and Gov. Jerry Brown signed into law California’s Fair Pay Act last year. It is considered to be the nation’s toughest pay equity law. In a nutshell, the act requires male and female employees who perform “substantially similar” work to receive equal pay, even if their job titles differ, or if they work in different offices for the same employers. For example, unless the employer can document widely different skills and responsibilities, a hotel’s housekeepers, who are generally women, should be paid the same as its janitors, who are generally male. Now California’s Legislative Women’s Caucus is proposing an extension of the Fair Pay Act. Caucus members recently introduced legislation that would ban employers from requiring job applicants to disclose their pay histories. The reasoning seems logical. If a woman, for example, is leaving a job in which she received lower pay than her male colleagues, she may be perpetuating an inequity if she is forced to disclose her pay history. Clearly the laws regarding hiring and paying workers are changing. Employers must act carefully and thoughtfully to protect themselves from legal challenges

Clearly the laws regarding hiring and paying workers are changing. Employers must act carefully and thoughtfully to protect themselves from legal challenges and to keep their workplaces equitable. and to keep their workplaces equitable. Assume the adopted and proposed law changes will affect you and your workers. Whether it’s the growing “Ban the Box” movement or the proposed law banning pay history disclosures, most likely these laws will be implemented at some point. Ask about criminal records and pay histories only if and when it is required in the hiring process. Understand California’s new Fair Pay Act. A significant feature of the act is that it places on the employer the burden of proving a man’s higher pay is based on factors other than gender bias. The act also protects employees from retaliation if they ask about pay disparities and discuss wages with their co-workers. Workers’ complaints can be taken to the state Division of Labor Standards Enforcement or to a superior court in the form of a lawsuit. A central feature of this new law is the

requirement that workers only have to allege that they are doing “substantially similar work” to claim they deserve equal pay. In the past, they had to prove they were doing “equal work.” That was a high bar to clear because such things as job titles and workplace locations could be used to justify pay differences. Audit your workplace. Review job titles, work requirements and pay schedules to ensure that differences are justified and can be defended in court. Consult an attorney and human resources specialist to help audit your workplace and adjust procedures. These new and pending hiring and pay requirements are complicated. The ambiguity of the “substantially similar work” standard is likely to trigger years of litigation. Prudent employers need to carefully navigate their businesses in these legally challenging times. Figure your workplace may be scrutinized and be prepared. It will pay to be proactive and take corrective steps now. – 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 www.PASassociates.com and through the PAS Facebook page.

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April / May 2016

Cultivating strong, sustainable agricultural labor force

By Jose M. Granados

griculture continues to play a major role in Kern County’s economy, generating a fifth of the county’s gross domestic product (GDP) and employing 15 to 20 percent of the county’s workforce. In 2014, the gross value of all agricultural commodities produced in Kern County added up to more than $7.6 billion, up 12 percent from 2013 – see graph. Agriculture operations are labor intensive. If agriculture is to continue to thrive in Kern County, it is imperative to have a strong labor force available and ready to work in the agriculture industries. However, recent labor statistics for agriculture industries, particularly farming, show some critical warning signs. The erosion and deterioration of the local agriculture labor force, for example, is one of these critical signs. Data from Scarborough Research show that as of September 2015, the number of farm workers dropped 13 percent from the same time period in 2012. There seems to be an exodus from farm labor, and it is a growing trend. According to the data, more than a third of farm workers express plans to look for another job in the next

12 months. In fact, in the past two years, the percent of farm workers planning to look for another job more than doubled, going from 15 percent in September 2013 to 36 percent in September 2015. Farm workers are looking for alternatives and getting ready to migrate to other industries. The data indicates that many farm workers are going or planning to go back to school to learn English and learn new trades. Not everyone is cut out to endure the physical demands of agricultural work. Historically, most of agriculture work has been done by a young immigrant work force. However, immigration patterns have changed in the past few years. Now, fewer young men and women are working the fields. As a result, the farm labor force is getting older, yet another growing trend. As of September 2015, more than half – of farm workers were age 40 or older, up from 2007 when just about a third of farm workers were age 40 or older – see graph. An aging work force could create big challenges for the agriculture industries. Work in agriculture requires good physical strength, stamina and tenacity. Farm workers also need a variety of skills as their job duties vary between different crops and seasons.

As it is now, farm workers have very few opportunities for advancement, unless they change jobs migrating to other industries. If Kern County’s agricultural industries are to continue thriving, these labor issues need to be addressed. Other warning signs include low income, no health insurance, poor housing and others – see table.

– Jose M. Granados is a strategic marketing Analyst at TBC Media. This market analysis is based on data from Scarborough Research, Kern County Department of Agriculture and Measurement Standards, and State of California Employment and Development Department.

April / May 2016

KERN BUSINESS JOURNAL

have again had a find near the base of the Grapevine in a commercial orchard, which has increased the number of acres under quarantine. The introduction of ACP into Kern County represents one of the most imminent threats to agriculture that we have seen in many years. Because we already have the vector of the disease, should we ever get citrus greening disease in the state, it will only be a matter of time before all citrus is wiped out, dramatically changing our economy. Kern County citrus growers pride themselves on the quality of their product and as residents of this county, we are extremely fortunate to have such a vibrant citrus

Farmers continue to adjust to drought challenges By Glenn Fankhauser

he primary concern of the Kern County Department of Agriculture and Measurement Standards is to both protect and promote agricultural industries in Kern County while ensuring that the consumer is treated fairly. Every year, Kern County agriculture faces new challenges. Of course, the ongoing drought continues to negatively impact the industry as well as the public in general. It will take many years to recover from these water problems. Kern County growers continue to use innovative equipment and implement watersaving programs to make the best use of the water that they are Glenn Fankhauser able to receive. Also, with regard to crops in the county, there has been a fundamental

shift in the types of crops that have historically been planted. While there are a myriad of reasons why this could occur (not the least of which is market conditions), another reason is most likely water. In the recent past there has been a shift from most types of row crops that would need to be flood or sprinkler irrigated to permanent acreage such as trees, bushes, or grapevines which can be drip irrigated with much more accuracy and therefore much less water is lost. Therefore, farmers are continuing to contribute to the economy of the county even in a drought by producing crops for sale both domestically and internationally. As was the case last year, this year one of our primary concerns is the continual spread of Asian Citrus Psyllid throughout the county. Last summer and fall it seemed that we were getting confirmed traps nearly every week with adult ACP within the city of Bakersfield as well as the occasional find in commercial citrus. This spring, we

industry. The Asian Citrus Psyllid and Huanglongbing (citrus greening disease) pose a very grave threat to this industry. It is of vital importance that the public realize the gravity of the situation and do everything they can to ensure that they don’t move citrus trees around the state or country and that they help in any way they can to stop the spread of both ACP and citrus greening disease. – Glenn Fankhauser, assistant director of the Kern County Department of Agriculture was born and raised in Bakersfield. He’s worked for the department for 17 years.

KERN BUSINESS JOURNAL

April / May 2016

Documenting business transactions, succession plans critical for family farms By Jacob L. Eaton

ights over the family farm can be vicious and expensive. I recently heard a story of farmers that reminded me of the importance of succession planning. A large family farm started nearly a century ago was managed and run by two brothers and their families. The families all worked on and lived on the farm. One of the brothers unexpectedly passed away, leaving three adult children and a wife, who was the kids’ stepmother. Without any agreements between the two brothers and without an estate plan Jacob L. Eaton for the deceased brother, the living brother, stepmother, and three kids of the deceased brother each retained attorneys and fought in court for their respective parts of the farm. The results of this failure to document a plan were: (1) the family relationships between the living brother, the deceased brother’s wife, and the kids have been destroyed, (2) the three kids lost their livelihood and their homes that were on the farm, (3) the farm and living brother were required to borrow

a large amount of money to buy-out the wife’s and kids’ interest in the farm thereby weakening the financial health of the farm, and (4) the attorneys representing the various parties in the matter were paid a lot of money for litigating the outcome. Problems can arise from unclear business dealings that can occur at any time, especially for farmers who frequently enter business deals between family and friends without formal agreements. The risk is misunderstandings creating hard feelings or ruining relationships. Good business and succession planning can help to avoid unintended and negative consequences. Smart business and succession planning involves documenting important transactions and informing your family of your intent. This means that: • Agreements among owners of a business regarding the operation of the business should be in writing, generally through formation documents or purchase and sale agreements between owners • All agreements regarding loans and contributions to the business should be in writing • Succession plans concerning the disposition of assets and business ownership interests must be in writing including executing wills, trusts, and other estate

ALMONDS

Good business and succession planning can help to avoid unintended and negative consequences. Smart business and succession planning involves documenting important transactions and informing your family of your intent. planning documents • Transactions, even those with friends and family, should be documented Many of the difficulties and disputes that I have seen could have been avoided or limited if the parties had documented their business and succession plans. Protect your family and your farm by consulting with your attorney and accountant to document your transactions and succession plans. – Jacob L. Eaton is a partner for the law firm of Klein, DeNatale, Goldner in the Bankruptcy Department.

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318.09+-acres, well water, and irrigated with center pivots, south west Bakersfield.

ALMONDS

431+-acres, mature orchard, dist and well water. Gustine Area.

SOLD

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248.82+-acres SWID & Well water, 97+-% grade 2 soils to work with. Shafter Area

acres, 720.0+-ac are planted to Almonds, bal. planted to carrots, onions, garlic & tomatoes, Non-contract MID & Gravely Ford Ser. area & well water, reasonable soils to work with. Madera area.

Grazing Land

$1,000+-/acre

4,662.76+-acres, West of Lost Hills

For information on these and other opportunities call Robb M. Stewart. Interested in selling, purchasing, or a professional marketing opinion?

April / May 2016

KERN BUSINESS JOURNAL

April / May 2016

The case for MDM: Apple v. FBI By David A. Milazzo

hile I’ve written a number of articles positioning Mobile Device Management (MDM) as a necessary tool for both corporate-owned and corporateused smartphones, perhaps the biggest reason to embrace MDM just landed at the feet of the nation. The Apple v. FBI case has thrown the doors wide open on the idea of encryption and what it means to have truly private communications. And while I firmly back Apple’s stance not to build a version of their software that threatens the security of nearly a billion devices, 500 words is not ample space to assert my position and provide a full, technical explanation of this threat potential. But what I can offer here is a small piece of advice that removes the need for this skeleton key inside your organization. MDM is a method of enrolling devices into a software management platform in order to exert control over those devices. The main element we use to manage a device — be it Apple, Android or Windows — is called a “profile." A profile is a small set of files containing a collection of behaviors we want the device to adhere to. Once installed, the profile David A. Milazzo can pre-load Wi-Fi or email configurations or it might force a strong passcode, restrict the ability to use the camera, or even disallow certain applications. Administrators have myriad options to pre-set how the devices behave in different environments. And from the MDM management console, an administrator can perform a slew of tasks across their fleet of phones. In addition to querying the device for its GPS location or list of installed apps, administrators can remotely lock or erase devices to protect sensitive, corporate data. MDM platforms come in all shapes and sizes. I’m a fan of Cisco Meraki as a starting point for many of my clients as they offer a basic MDM platform for free up to 100 devices — free is a price-point I find all of my clients can get behind.

But some organizations have more devices or require a stronger set of features. In these cases, we might move to a paid tier of Cisco Meraki or consider Bushel, AirWatch, MaaS360 or MobileIron. All bring their own strengths depending on the organization. And it’s important to note these tools aren’t just useful for business — I help many families deploy MDM to manage their teenagers’ phones and to protect their own devices if lost or stolen. The takeaway is that once an MDM platform has its hooks into a device, it exerts an enormous amount of authority. In most cases, we’re interested in protecting the corporate data — not cracking the phone open. But there are situations where the reverse is true. Maybe an employee leaves the company unexpectedly while neglecting to inform IT of their iPad passcode. In a circumstance like this, the MDM can very simply remove the passcode. Repeat: Remove the passcode. Had San Bernardino County IT employed an MDM platform, wiping the passcode would have been a five-minute event not the national brouhaha we’ve seen over the last months. So however you come down on privacy vs. FBI backdoors, know you can install your own minibackdoor just for your company’s piece of mind. Case closed. – David A. Milazzo is the founder and principal of Bakersfield-based Macroscopic, an Apple enterprise technology consultancy focused on bringing Mac and iOS technologies to businesses, schools, agencies, and independent professionals. Send your questions to him via email at milazzo@macroscopic.net.

Farmers who export large amounts of crops should consider tax benefits By Chris Hamilton

armers in the Central Valley have faced enormous challenges due to exceptional drought conditions in the last four years. Still, our resilient agricultural community has continued to produce despite facing higher water and energy costs. Continued global demand for California-grown crops has helped sustain the farming economy and we continue to supply many foreign countries with a variety of products. For farmers who produce crops that are largely exported, there is a significant tax reduction strategy through a federal subsidy for exports, and many eligible farming businesses are not taking advantage of it. Creating an Interest Charge Domestic International Chris Hamilton Sales Corporation, or “IC-DISC,” can provide significant tax benefits for the producers of exported goods. And yet, the IRS es-

timates that only 25 percent of the potential IC-DISC benefits that are available are actually being captured. If you are a producer whose total exports are equal to or greater than $1 million annually and you are not operating under an IC-DISC, you may be “leaving money on the table.” An IC-DISC is relatively easy to form though it does require the assistance of a tax professional who understands the challenges unique to farming operations in California. The IC-DISC is simply a new corporation formed by the farmer that makes an election to be taxed as an IC-DISC. This corporation will serve as the broker to the exporter of the crops. The farmer then enters into a commission agreement with the IC-DISC corporation, according to specific guidelines established by the IRS. It typically requires an attorney and a certified public accountant that are familiar with the requirements to establish such an arrangement given the peculiarities of California law. The net result of this arrangement is to carve out a portion of the income received from exported goods through the commission agreement and effectively causing that in-

come to be taxed in a preferred manner with respect to the farmer and the IC-DISC. The farmer harvesting the crops pays a commission to the IC-DISC and deducts the amount of that commission from his other farming income, thus the amount of the commission is untaxed to the farmer. The commission that is received by the IC-DISC is not subject to federal income tax and is then distributed to the IC-DISC owners, typically as a qualified dividend. The rate that the dividend is taxed at is a maximum of 20 percent; the net effect of this arrangement can reduce the tax liability from your farming operations by up to twenty percent. Therefore, if significant portions of your harvested crops are exported, you should consult with a qualified tax professional to determine if the formation of an IC-DISC is appropriate for your farming operations. It may be an effective means of hedging the effect of these tough drought years. – Chris W. Hamilton is a tax and estate-planning attorney at Young Wooldridge, LLP. For more information, go to www.youngwooldridge.com/ic-disc.

April / May 2016

KERN BUSINESS JOURNAL

Growing a business over time

By Hannah Thomasson

’ve never met a business owner who wanted their business to fail. I have, however, met lots of business owners who are incredibly passionate about their business, but they aren’t exactly sure how to grow it over time. According to the U.S. Bureau of Labor Statistics, “about half of all new establishments survive five years or more and about one-third survive 10 years or more.” There is a lot of pressure on new Hannah Thomasson business owners to survive longer than a few years. If your business isn’t growing, then it’s either stagnant or failing. No one wants to merely survive; the goal is to expand and flourish. To do this, it takes deliberate effort and strategy to consistently grow a business and beat the odds. It’s not enough to simply visualize longterm business success; having an actual strategy for growth is imperative and much more worthwhile. Whether you are a new business owner or a seasoned business owner, evaluating growth strategy is never a bad idea. Here are five tools to use in creating a strategy for growth: 1. Unique value proposition A unique value proposition is what you offer that your competition doesn’t or something that you do better. Before your ideal customer can understand what you offer and do differently, you must first understand what differentiates your product or service. It is the answer to this question that gives customers a reason as to why they should choose to do business with you instead of the competition. It also provides direction on where to focus efforts. 2. Key performance indicators Growth must be measured in order to judge the effectiveness of implemented changes. After establishing the value proposition, start with choosing an area that needs a change and set it in motion. Give it a time limit; this is not open-ended. Continue to work the strategy and

measure it along the way and see what the change does for your business. If no change is noticed, consider reevaluating what is being measured and how it is being measured. 3. Competition Don’t be hesitant to practice honest comparison between you and your competition. Look at what the competition is doing and the response they are receiving. What areas are they excelling in that your business is not? Healthy comparison is a great tool in revealing areas of weakness and providing direction for correction. Don’t copy the competition, observe them and learn from their successes and failures. Don’t focus on just being better; focus on being different and use your business’ unique value as the advantage it is. 4. Invest in your team These are the people that interact directly with customers; it’s important to hire individuals that are motivated and excited about your business’ value proposition. Employees have a wealth of knowledge and information that needs to be tapped into. They interface with customers daily, they deliver on goods and services, and they provide customer support. They will give you more information about your target audience than any focus group will. 5. Social media presence Social media is not only great at engaging with customers but it is extremely useful in gaining new customers. One of the first impressions you’ll get with customers in this digital age is not when they walk into your location; it’s when they look you up online. Social media increases brand exposure, web traffic, and it ultimately increases sales. If your business doesn’t have a presence on social media then you are losing out on potential customers and growth opportunities. Invest time into social media growth and produce great content. The customers will find you. – Hannah Thomasson is the owner of Exousia Marketing and Consulting in Bakersfield. For more information visit www.exousiamarketing.com or contact her at hannahthomasson8@gmail.com.

From generation to generation

Grimmway Farms proudly maintains the family owned and operated heritage of outstanding quality you’ve come to expect.

KERN BUSINESS JOURNAL

April / May 2016

CAPK assists homes affected by drought By Louis Medina

ern County families living in homes whose wells have run dry due to the drought may qualify for no-cost water tank installation and water deliveries, thanks to a temporary assistance program that is a collaboration between Community Action Partnership of Kern, SelfHelp Enterprises, Kern County Public Health Services, Environmental Health Division, and local water companies. CAPK is Kern County’s federally appointed poverty-fighting agency. Its Energy Program’s weatherization installers can deliver and install a 2,600 gallon storage tank Louis Medina and a small pump that allows water from the tank to flow through the taps in the home. The tank, which is about 8 feet in diameter and 9 feet tall, can be filled and replenished with hauled water for washing and bathing. “As soon as the tanks are installed, the water company comes right after and fills them up,” said Romala Ramkissoon, CAPK’s director of community services. “The client is placed on a schedule and the water company comes and refills the tank at regular intervals every so

many weeks.” For drinking, Sparkletts bottled water is also provided and can be delivered to homes in Sparkletts service areas, or for homes not in Sparkletts service areas, picked up at the closest Sparkletts location. The tanks and pumps come from Self-Help Enterprises, a community development organization headquartered in Visalia, whose mission is to work with low-income families to build and sustain healthy homes and communities. Self-Help Project Manager David Mendez explained in an email how the program works for owners versus renters of homes whose wells have run dry: “Owner-occupied homes whose wells have been impacted by the drought qualify for a temporary tank installation at no cost,” he wrote. “Renters may qualify for temporary water hauling or possibly a temporary tank install depending on their unique circumstance.” Families who believe they may qualify for the Temporary Water Assistance Program can obtain more information by calling the Environmental Health Division of Kern County Public Health Services at 862-8776.

– Louis Medina is the outreach and advocacy manager for Community Action Partnership of Kern.

Program aids in replacement of tractor, mobile equipment used in agricultural operations By Cassandra Melching

he San Joaquin Valley is fortunate to have the right conditions needed to sustain bountiful crops. With the vast land that is used for farming, there are thousands of pieces of heavy equipment operated daily to maintain the crops, fields and orchards. Many of the small farms in the San Joaquin Valley use old tractors with dirty diesel engines. These engines can emit up to 10 times the amount of air-polluting emissions when compared to a new 2016 model. The great news for farmers, though, is Cassandra Melching that the San Joaquin Valley Air Pollution Control District has an incentive program that is dedicated to helping local farmers replace in-use, off-road tractors and mobile equipment used in agricultural operations. It’s called the Tractor Replacement Program. Funds are provided on a first-come, first-served basis and applicants must obtain approval and have a signed, executed contract from the district prior to the purchase of new equipment. With the San Joaquin Valley being the top agricultural

The great news for farmers, though, is that the San Joaquin Valley Air Pollution Control District has an incentive program that is dedicated to helping local farmers replace in-use, off-road tractors and mobile equipment used in agricultural operations. It’s called the Tractor Replacement Program. producing region in the nation, this incentive program is crucial in helping to eliminate pollution from the thousands of tractors used daily to maintain the region’s crops. According to the US Geological Survey, “More than 250 different crops are grown in the Central Valley and using fewer than 1 percent of U.S. farmland, the Central Valley supplies 8 percent of U.S. agricultural output and produces one-quarter of the nation’s food, including 40 percent of the nation’s fruits, nuts and other table foods.” To supply almost half of the nation’s fruits is a big endeavor. This is a highly lucrative industry. The Environ-

mental Protection Agency reports on its website that, “The annual gross value of agricultural production in the valley is more than $25 billion.” With that kind of investment in the industry, farming is undoubtedly a way of life for many in the valley. The Tractor Replacement Program has been such a popular and effective program that last November, the EPA awarded the district $2.48 million in federal grant money to continue the program. “Grant funds such as these recognize the hard work and sacrifice being made by valley farmers, businesses and residents to expedite emission reductions in the San Joaquin Valley,” stated Seyed Sadredin, Air Pollution Control officer and executive director. This was in additional to $1 million that was allocated to the program in October. The added financial assistance allows farmers to work alongside the district to improve air quality and promote the use of clean, cutting-edge tractors. The program is a great opportunity that benefits local farmers and allows them to partner with the district in order to reduce emissions. For more information, please visit www. valleyair.org/grants and click on “Business.” – Cassandra Melching is an outreach and communications representative with the San Joaquin Valley Air Pollution Control District.

April / May 2016

KERN BUSINESS JOURNAL

PG&E’s property tax payments increase to support economic development By Katie Allen SAN FRANCISCO – Pacific Gas and Electric Company’s property taxes increased sharply last year as the utility continued to make significant investments in its gas and electric infrastructure to improve safety and reliability for its customers. PG&E recently paid property taxes of nearly $193 million to 50 California counties. These payments cover the period from July 1, 2015, to Dec. 31, 2015. Total payments for the tax year of July 1, 2015, to June 30, 2016, will be nearly $385 million – an increase of $40 million over the prior fiscal year, or 11 percent. First installment property taxes recently paid to Kern County in the amount of $6,305,061, up 13 percent from last year. One example of the many infrastructure investments PG&E has made locally is substation upgrades and 18 miles of upgrades, including electric lines and dozens of poles replaced, from the Kern Power Plant Substation (Coffee Road and Rosedale Highway) to the Old River Substation (Bear Mountain Boulevard and Old River Road), and Panama Junction (west of Gosford Road to South Union Avenue) to Bear Mountain Boulevard to Old River Road. The 2015 upgrades were part of a larger project that began in August 2013 and is ongoing. Another 11.5 miles is being replaced this year from Panama Lane along Union Avenue to Bear Mountain Boulevard and west to Old River Substation. This work is expected to be completed by the end of the year. “Property tax payments are one of the important ways PG&E helps contribute to the local economies, supporting essential public services like education and public safety for the 16 million Californians we serve. This year’s higher payments reflect the substantial local investments we are making in our gas and electric infrastructure to create one of the safest and most reliable utility systems in the country,” said Kent Harvey, senior vice president and chief financial officer for PG&E. PG&E invested more than $5 billion this year to maintain and upgrade its natural gas and electric infrastructure across Northern and central California.

1st Installment Property Tax Payments on Dec. 10, 2015 COUNTY ALAMEDA ..................... $19,658,015 ALPINE...................................... $59,283 AMADOR.................................$955,868 BUTTE.................................. $3,320,701 CALAVERAS.............................$807,581 COLUSA.............................. $4,213,442 CONTRA COSTA............... $16,748,589 EL DORADO......................... $1,242,561 FRESNO.............................. $14,431,766 GLENN......................................$673,957 HUMBOLDT........................ $2,635,236 KERN.................................... $6,305,061 KINGS................................... $1,354,491 LAKE....................................... $694,533 LASSEN..................................... $34,176 MADERA ............................ $1,948,970 MARIN...................................$2,751,855 MARIPOSA............................... $223,617 MENDOCINO.........................$1,354,151 MERCED................................$2,748,132 MODOC....................................$237,069 MONTEREY...........................$3,041,742 NAPA..................................... $1,995,743 NEVADA................................$1,024,106 PLACER................................ $4,280,135 PLUMAS ..............................$2,092,493 SACRAMENTO....................$4,262,535 SAN BENITO...........................$596,308 SAN BERNARDINO............. $1,070,988 SAN DIEGO..................................$9,596 SAN FRANCISCO.............. $11,304,100 SAN JOAQUIN.......................$8,910,801 SAN LUIS OBISPO..............$14,126,226 SAN MATEO....................... $10,182,039 SANTA BARBARA..................$909,345 SANTA CLARA.................. $21,907,530 SANTA CRUZ....................... $1,477,645 SHASTA................................ $4,567,520 SIERRA..................................... $110,634 SISKIYOU................................. $112,143 SOLANO...............................$4,683,627 SONOMA..............................$5,481,752 STANISLAUS........................ $1,793,334 SUTTER...................................$1,107,174 TEHAMA...............................$1,041,243 TRINITY....................................$109,639 TULARE.................................... $511,830 TUOLUMNE............................. $752,515 YOLO..................................... $1,998,803 YUBA.....................................$1,070,477 Total Payments................$192,931,076

– Katie Allen is corporate relations representative of PG&E’s Kern Division.

KERN BUSINESS JOURNAL

April / May 2016

Community Action Partnership of Kern Food Bank

Today’s nourishment, tomorrow’s future By Glen Ephrom

ommunity Action Partnership of Kern’s Food Bank continues to toil in a seemingly endless task: the recurrent distribution of food to help our neighbors meet their nutritional needs. Moms, dads, children of all ages, the elderly, the disabled— people from all walks of life—may, at some point, need a little help making ends meet. Glen Ephrom Food is essential, but oftentimes folks are forced to make a difficult decision: “What is the most essential this day, this week or this month—food, clothing, housing, medication, utilities, transportation…?” That’s where we come in. With the benefit of governmental support, food agency partners, local agricultural donors, a generous community, tireless benefactors and hundreds of volunteers, we always seem to find a way to get things done. But hunger never takes a holiday. We distribute more than one million pounds of food each month. That’s more than 6,000 pounds per hour, every hour and every day. As one month ends, we begin another cycle. The Drought Our Drought Emergency Food Assistance Program (DEFAP) was introduced in May 2014 to support Kern County families adversely impacted by the drought. As unemployment in agriculture and related industries rose, so did the need for food

assistance. The majority of those affected were the children of under- and unemployed workers. To date, we have distributed more than 7,250,000 pounds of DEFAP food on top of our regular food distribution. Innovative Responses to Hunger Recognizing the acute need for nutritionally balanced diets to combat obesity and promote a healthier lifestyle locally, our Food Sourcer, Maureen Andrew—who was featured in a Kern Business Journal article in spring 2015—works daily with our partners in agriculture, staying in regular contact with growers and processors as we work together to find ways to get donations of fresh fruits and vegetables to those in need. And through consistent availability of products and ongoing education programs, we can effectively help craft positive lifestyle changes to benefit the families we serve. What else do we do? More than 75 percent of our operations (food sorting, stocking, deliveries, etc.) are staffed by volunteers. Many of them come to us via partnerships, such as programs designed to transition those in need to active employment. The Employment Preparation Program (EPP) is a welfare-to-work platform that provides participants with an opportunity to obtain valuable real-world experience and skills to be successful in the workplace. The Owens Valley Career Development Center is another similar program for Native Americans. SerJobs is geared toward our 55-and-over age group and provides much needed job skills training for the modern workplace. Each year at the Food Bank, we are able to introduce or reintroduce dozens of individuals to the

current workforce. A number of them have found full-time staff positions with us at the Food Bank. Get Involved What’s next? There are thresholds on governmental commodity programs. The CAPK Food Bank has taken on the challenge of sourcing and distributing greater amounts of fresh produce and fruits to our clients, in order to ensure the nutritional benefits of healthy eating for them. However, we need help. We need to solidify and reenergize many of our partnerships with local growers and

processors, matching the resource with the need. Together, we can make this happen but only if we all get involved. The CAPK Food Bank has the infrastructure, distribution channels and logistical capabilities. We need partners: all kinds, all sizes. If you think you can help, just give us a call at 398-4520, e-mail gephrom@capk. org or visit www.capk.org and click on “Donate” or “Volunteer.” – Glen Ephrom is Community Action Partnership of Kern’s Food Bank manager.

Biography Index—Finding Famous Individuals in Agriculture By Katherine Ross

L Clarence Birdseye, pioneer of frozen foods.

earn the facts about the great names in agriculture, instead of Internet gossip or rumors. The Kern County Library offers Ebsco Biography Reference Center 24/7, free with your library card and PIN (last 4 digits of your phone number). Simply navigate to http://kerncountylibrary.org/research/, scroll down and select Biography Research Center. Searching is as easy as typing a name; for example, a search for Cesar Chavez or Edward Fitzgerald Beale quickly connects you to one or more factual articles. There’s even a short biographical sketch of Allen Allensworth, who founded the Kern County

community that bears his name. For a more modern biographical subject, try searching Ted Turner. Or try Tom Camerlo, famous in the American dairy industry. You could even learn more about Clarence Birdseye, pioneer in frozen foods. Advanced Search offers even more ways to get biographies. You can search for people by occupation, nationality, place of birth or death, gender, or even by historical era [Lifespan]. There are 172 articles to be found just by searching for farmer. Results can also be limited to those in newspapers or in encyclopedias, and you can limit by year of publication. Articles may be printed, saved to disk, or emailed. Biography Research Center offers biographies of more than 9,000 individuals, from the classic source American National

Biography. Added to that, it also contains biographies drawn from more than 100 other sources, such as Biography Today and Business & Industry. It has biographies of famous people from all over the world, most averaging one or two pages but some more than 20 pages. In all, there are more than 430,000 full-text biographies. You might not find every famous person within this database, but you’re sure to encounter the modern and historical, the accomplished and the newsworthy, of a fascinating variety. And it’s all free with your Kern County Library card.

– Katherine Ross is a librarian at Beale Memorial Library, main branch of the Kern County Library System.

April / May 2016

KERN BUSINESS JOURNAL

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Farmers’ markets bear fruit in Bakersfield By Kristin Weber

pring and summer are upon us in this glorious breadbasket we are lucky enough to call home. The California Central Valley is responsible for producing the world’s most delicious fruit and vegetables. Kern County is lucky enough to be home to two of the best farmers’ markets in the valley; Saturday’s Brimhall Farmers Market located on the corner of Brimhall Road and Calloway Drive and Sunday at the Kaiser Permanente Haggin Oaks Farmers Market, located on the corner of Ming Avenue and Haggin Oaks Blvd. Jaclyn Allen is the owner/operator of the Hens Roost, which manages both the Brimhall and Kaiser Permanente Haggin Oaks farmers Kristin Weber markets. Jaclyn is responsible for bringing together local small family owned farms and purveyors of small batch artesian foods each Saturday and Sunday, while providing a destination for families, foodies and folks just looking to find the freshest most delicious food they can get their hands on. “We aren’t a traditional farmers market; we are more like a community of likeminded individuals who work together to bring the freshest that our valley has to offer to our community,” Jaclyn said. You can find anything you need to make yourself and your family a healthy meal at the farmers market — from fresh greens like kale, spinach and chard to root vegetables, such as purple sweet potatoes, garlic and turnips. You won’t be disappointed. “It makes me feel really good to be able to put food on the table for my family that I can trace back to my favorite farms and food producers,” said Kelly Ashe, Kaiser Permanente Haggin Oaks farmers market patron. The markets are host to a cornucopia of seasonal fruits and vegetables and as we head from spring into summer, stone fruit such as apricots, peaches, nectarines, plums

and pluots begin flowing into the market. Many of the small batch and artesian food producers use fruits and vegetables from the farmers who sell at market to create their products. By bringing these vendors together, Allen is helping to reduce expenses for the farmers and vendors, while reducing their carbon footprint. Allen goes onto explain that “we may not have it all together, but together, we have it all!”

Brimhall Farmers Market • 9500 Brimhall Road • Saturday, 9 a.m. to 1 p.m. Kaiser Permanente Haggin Oaks Farmers Market • 8800 Ming Ave. • Sunday, 9 a.m. to 2 p.m.

This spring some new exciting items include flax and chia from PB Jacks Nut Butters, cold pressed Ginger and Tumeric juice from Apple Sherril Farms and Microgreens from Sprouts Greens and More have joined the market. Living and eating healthy in our community is easier each weekend with access to these wonderful farmers markets. In addition to the local farmers and vendors bringing healthy and delicious food to the markets, many of these farmers and vendors donate product each month to feed those in need through The Apple Core Project. “As a businessman, I do a lot of markets in LA, but the markets in Bakersfield are by far the best markets to participate in. The other vendors and the customers make you feel at home. It doesn’t feel like a work place and I love that,” said Sammi Ellouze, vendor at Brimhall and Haggin Oaks farmers markets. – Kristin Weber is the senior community benefit specialist at Kaiser Permanente. In her role, she serves as a link between community organizations and Kaiser Permanente. Working with organizations to create a healthier community, is just not a job, but her passion in life.

KERN BUSINESS JOURNAL

April / May 2016

Financial Wellness

Opportunities, challenges as baby boomers turn 70 By Steven Van Metre

n the early 1990s, there was a sarcastically funny cartoon television show called “Dinosaurs.” One of the producers was the Muppets’ Jim Henson. Basically, it casts today’s concerns about society, the economy, the environment and just about everything else through the eyes of a fictitious dinosaur community. One of the funniest episodes was about “Hurling Day,” a tradition established by Steven Van Metre a wise, but aging dinosaur chief to prevent elderly “tribe members” from slowing down the herd as it roamed. Upon turning 72, old dinosaurs were pushed off a cliff by close family members in a “loving and respectful manner.”

Hurling Day also became a popular way for husbands to take revenge on their mothers-in-law. With that in mind, Earl, the father of the starring dinosaur family, was looking forward to pushing his acid-tongued mother-in-law, Ethyl, over the cliff. In the end, Earl was cheated out of his revenge by being guilt-tripped by his more compassionate son, Robbie. With the leading edge of the baby-boom generation turning 70 this year and heading for that cliff, to read reports of how lean their retirement savings are and how little public policy has been developed to respond to their future needs, you would think Hurling Day was a reality. No worries. The old, slow boomers will be hurled over the cliff so not to financially bog down the herd. Well, that’s not going to happen, nor should it. But what alternatives are we lining up for aging boom-

ers, who are living longer and with fewer resources? What impact will these aging boomers have on the economy and public policies? People born between 1946 and 1964 are considered boomers. Many are children born of soldiers returning from World War II. Demographers often call this 65 million-strong generation the “pig in the population python.” And as it passes through the decades, it shakes the nation and world to its very cultural, political and financial core. What can we expect now? More boomers are expected to live to 85 and beyond. The U.S. Centers for Disease Control and Prevention estimates one in 10 of the oldest boomers will live to 95. Only three in 100 of their grandparents reached that landmark. Boomers generally are in better health than their parents and grandparents. But costly medical advances are helping sustain their

lives. This is increasing health care costs for boomers and taxpayers, alike. An increasing number of boomers will require assisted- and skilled-care facilities as they age. While this opens opportunities for businesses, taxpayers will be picking up an increased amount of the tab. We should look for new, more economically feasible living alternatives. Once again, boomers will flex their financial muscle by spending more on such things as travel, entertainment and specialty items. Businesses are well advised to pay as much attention to the boomer generation as they pay to another large demographic group: the millennials. With boomer spending in mind, consider that those who saved for their retirements in tax-deferred accounts are now being forced to take “minimum distributions” from their accounts. That generally means a cash infusion into the economy – likely an area that businesses may wish to target. This should include targeting with investment opportunities to help aging boomers stretch their savings. Many boomers who saw their retirement savings accounts decimated by the Great Recession

of 2008-09 have stayed in the workplace longer than they planned. But a strategy to “work until you drop” is not a practical one. We are going to see more of these boomers finally retiring, creating career opportunities for younger workers, but competition among businesses for top-quality applicants. While it may be too late for those in the leading edge of the boomer generation to drastically change their retirement savings strategies, there is plenty of time left for the youngest of this generation, who will be turning just 52 this year. People still in their 50s and 60s should seek the advice of financial consultants to help maximize their savings. Whether you are turning 40, 50, 60 or 70, milestone birthdays are good opportunities to evaluate both your present situation and future. A stable retirement doesn’t just happen. It requires planning. – Steven Van Metre is a Bakersfield certified financial planner who specializes in retirement income strategies and teaches a course on retirement planning for the Levan Institute for Lifelong Learning at Bakersfield College. His website is www.stevenvanmetre.com.

Risk management’s best-kept secret in agriculture By John Pryor

sk any grower if he’s ever heard of “throughput insurance.” Most (not all but definitely most) will say, “No, I’ve never heard of that before.” This response is not unique to our local agribusiness leaders. It certainly is not a criticism of them because throughput insurance is reported to be a best-kept secret throughout the U.S. and beyond. This single, seamless policy replaces a multitude of separate policies traditionally needed for inventory, stock, cargo and other products at risk John Pryor in trucks, trains and planes in the U.S. plus product in containers on weather decks of ships navigating the oceans of the world – and beyond to all corners of the earth. Each traditional policy has its own unique terms, conditions, deductibles and (typically higher) premiums. This combination of traditional policies makes coverage for property in transit unnecessarily complex and costly. The throughput policy avoids all such problems. Moreover, when you see this policy’s level of innovation and simplification, you have to expect that growers will save significant amounts of time. That’s a realistic expectation. This policy is not limited to agribusiness operations. Here are some other types of businesses that can benefit in the same manner: • Oil and petroleum products • Electronics and industrial products • Pharmaceuticals

• All kinds of manufactured consumer products from automobiles to kitchen sinks Some refer to this new innovation as inventory insurance “from cradle to grave,” and there’s validity to that metaphor. It covers agricultural products from harvest – through their processing and packaging – to their ultimate destination anywhere in the world! It covers manufactured products from raw materials to finished goods in the hands of the manufacturer’s customer. It’s a long overdue solution to the effective, yet simplified treatment of inventory risks through insurance. So, what are these risks? To mention but a few: • Earthquake and flood • Delay and spoilage • Deterioration and decay • Loss of refrigeration • All of the other risks typically found in every property insurance policy from fire and theft to windstorms, and tsunamis and beyond There are few, if any, limitations on how products are covered as they work through any overall system from raw materials to finished goods – through supply chains to ultimately reach wholesale distributors or retail stores – or homemakers. Additional benefits of a throughput policy are: • Coverage is open ended – there are no time limitations imposed on storage. • Neither specific locations nor specific shipping methods need be described in the policy (although they will be included in the underwriting and application process). • Valuation is selling price. Losses will be valued – and paid – on the basis of the price to the grower’s customer.

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Traditionally, carriers pay claims on the basis of the costs incurred up to the point of loss – without any profit included. This reduces the need for business interruption coverage found in more traditional – usually separate – property policies. Deductible levels are competitive and flat (not a percentage). Ever since the earthquake and tsunami at Fukushima, Japan in January 2013, supply chain risks have never been more widely discussed. The flexibility inherent in throughput policies can assist in the management of inventory risks. Flexibility should also offer businesses the ability to choose between different distribution channels. This flexibility is the key driver for creating strong, cost effective supply chain models. If you have significant inventory risks in transit, you should ask your insurance broker for a proposal from their Lloyds, London brokers of this innovative and cost-effective solution. If you do, just be certain to read all of the policy’s terms and conditions. There is no standard form, which is one reason this policy can be so innovative. If you do so, one outcome of sound risk management surely will be achieved for you, viz., a quiet night’s sleep!

– John Pryor is a risk management consultant in Bakersfield and author of “Quality Risk Management Fieldbook,” a convergence of the disciplines, principles, and tools of risk management with those of quality management (Lean Six Sigma). Publisher is International Risk Management Institute in Dallas, Texas.

April / May 2016

KERN BUSINESS JOURNAL

April / May 2016