Kern Business Journal June/July 2017 by The Bakersfield Californian Specialty Publications

KERN Journal Business

Vol. 6, No. 3

A MEMBER O F T HE

Cover story

TB C M E DIA FAM ILY

June / July 2017

NASA advancing aeronautics at Edwards Air Force Base Page 8

Energy and Technology Issue

Keeping oil, gas alive through innovation By Tunde Deru

n Bakersfield, everything is connected to oil. Everything from the historic “Driller Country” water tower to pump jacks sprinkled near local parks tell of our county’s oil legacy. The recent volatility in oil prices has made this connection even more striking. Although Kern County is no stranger to the booms and busts of the oil and gas industry, this most recent bust has certainly taken its toll. From $100 a barrel in June 2014 to $27 a barrel in January 2016, our community has felt the strain of the worldwide oil rout. And with good reason: Kern is the second-largest oil-producing county in the nation, representing 70 percent of California’s oil production and 4 percent of overall U.S. production. The job market in Kern County was hit especially hard, with major oil and gas companies, along with much smaller producers and service firms, having to let many workers go. In the two years Please see OIL INNOVATION | 21

Aera Energy: Advanced technology driving exceptional performance. Get the story on Page 6.

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

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INSIDE

Solar tracker technology and the benefits to Kern County and beyond. Page 25

Making science, technology come alive for Kern County students. Page 11

KERN BUSINESS JOURNAL

June / July 2017

relationship built on quality, value, and service is a natural fit for us, and that is exactly what we have with Valley Republic Bank.”

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relationship built on quality, value, and service is a natural fit for us, and that is exactly what we have with Valley Republic Bank.” Laura Barnes

Laura Barnes President

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Laura Barnes is President of the Central California

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Chapter of the Associated Builders and Contractors,

employees for contractors throughout the central valley.

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employees forvalues contractors throughout the central valley. the same and dedication to customer service. ABCThey chose Bank becausestaff theytheir share areValley proud Republic to call Valley Republic’s financial friends. service. the same values and advisors…and dedication to customer

They are proud to call Valley Republic’s staff their financial advisors…and friends.

Local. Responsive. Reliable. 5000 California Avenue, Suite 110 | 4300 Coffee Road, Suite A6 11330 Ming Avenue, Suite 400 Local. Responsive. 510 Woollomes Avenue, Suite 106, Reliable. Delano

valleyrepublicbank.com | 661.371.2000 5000 California Avenue, Suite 110 | 4300 Coffee Road, Suite A6 11330 Ming Avenue, Suite 400 510 Woollomes Avenue, Suite 106, Delano

valleyrepublicbank.com | 661.371.2000 Valley Republic Bancorp (VLLX)

June / July 2017

Journal KERN Business Showcasing Kern County business and industry June / July 2017 Vol. 6, No. 3 Kern Business Journal is a bimonthly publication of The Bakersfield Californian. Copies are available from The Bakersfield Californian, Kern Economic Development Corp. and Greater Bakersfield Chamber of Commerce. Publisher Ginger Moorhouse President/CEO Michelle Chantry Sales and Marketing Director Joey Zachary 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 Joey Zachary jzachary@bakersfield.com 661-395-7363 To subscribe 661-392-5777

KERN BUSINESS JOURNAL

Editor’s Note

The power of Kern County

ern County has a rich history in energy and technology. The nation’s No. 2 oil-producing county is also a pioneer in renewable energy techniques. The world’s largest solar plant, BHE Renewable’s Solar Star Project, and largest wind farm, Alta Wind Energy Center, are in Kern County. California’s third-largest county by area is also home to many technological breakthroughs with some of the country’s brightest minds working at Edwards Air Force Base, NASA’s Armstrong Flight Research Center and China Lake Naval Air Weapons Station. In fact, many of the China Lake team’s inventions and innovations have found themselves incorporated into the commercial world with the first stop-action video, automatic airbag sensors for automobiles, first search made by a digital computer (predating Google by 43 years), and the predecessors Mark Nessia to today’s GPS and MRI all originating in northeast Kern County. Energy and technology are synergistic. One powers the other — quite literally — and vice versa, allowing further advancement to the benefit of mankind. There are no longer divides between traditional and renewable energy with companies like GlassPoint Solar helping oil companies reduce costs and emissions and, more importantly, create and maintain local jobs by harnessing the power of the sun.

Solar panels for CAPK’s Food Bank warehouse provided by A-C Solar.

Technological advancements are making an impact in Kern County’s other major industry as well. With over-regulation and uncertainties regarding the future of the agricultural workforce, farming methods and traditional labor crews are forced to adjust and adapt, shifting to a more mechanical future of farming. Mechanical harvesting is now replacing a huge labor force with labor-intensive crops now gathered by machine. In the nonprofit realm, technology is helping allocate funds to more impactful areas. Utilizing grants from numerous organizations, Community Action Partnership of Kern is able to install 504 roof-mounted photovoltaic panels on its Food Bank warehouse. The solar panels will generate 254,787 kilowatt-hours of energy annually, reducing CAPK’s electricity costs by nearly $50,000 a year. Those savings will be reinvested into the acquisition and distribution of food to keep up with the local hunger needs of Kern County. Last year alone, the CAPK Food Bank distributed 13.6 million pounds of food to the hungry — a number that will no doubt grow thanks to the solar panel project. Energy and technology are synergistic. From the electricity that helps power technological innovation to the mechanical assistance to harvest crops more efficiently to the energy that helps keep food cold and fresh to fuel our bodies, Kern County is doing its part to power the nation.

QF-16s help F-35 JOTT plan for future testing By Kenji Thuloweit

hree QF-16s descended on Edwards Air Force Base in mid-May to aid the F-35 Joint Operational Test Team with test

planning.

The QF-16 is a full-scale aerial target that has been modified to be flown with a pilot in the cockpit for training and also without a pilot as a Kenji Thuloweit target for live missile testing. The unique jets are from the 82nd Aerial Targets Squadron from Tyndall Air Force Base, Florida, and Holloman Air Force Base, New Mexico. The QF-16 is a fourth-generation fighter that maintains all inherent capabilities of the baseline F-16 Fighting Falcon including supersonic flight and 9-G maneuverability, according to the 82nd ATRS. The QF-16’s fourth-generation fighter

PHOTO COURTESY OF CHRISTOPHER HIGGINS

Three QF-16s came to Edwards Air Force Base to aid the F-35 Joint Operational Test Team.

capabilities are designed to help test fifthgeneration fighters like the F-35 Lightning II against aerial adversaries and targets. “We’re preparing for initial operational test and evaluation that starts next year,” said Matt Feringa, F-35 JOTT senior tactical systems analyst. “Part of the QF-16’s mission is to carry airborne radar jamming pods. We flew F-35s with them as part of our test design development and

to preliminarily evaluate the F-35 against those jamming pods.” The JOTT at Edwards is part of a joint enterprise that conducts operational test and evaluation of the F-35 Joint Strike Fighter. The unit consists of all U.S. services that will operate the different F-35 variants along with coalition partners such as the United Kingdom and the Netherlands who will also operate the JSF.

Feringa said the QF-16s were here for two weeks and the JOTT received good data to move ahead with their test plans. For the JOTT test purposes, the QF-16s were flown by pilots from the 82nd ATRS. The QF-16 allows customers to test weapons systems in real-world scenarios before reaching the battlefield. Initial operational capability for the QF-16 fullscale aerial target was declared Sept. 23, 2016. The 82nd ATRS operates the only full-scale aerial target capability in the Defense Department. The QF-16 replaced the QF-4 Aerial Targets, which were converted F-4 Phantoms. The QF-4 flew its last unmanned mission Aug. 17, 2016, at Holloman AFB and was officially retired in December. — Kenji Thuloweit is a public affairs specialist for the 412th Test Wing Public Affairs Office at Edwards Air Force Base. He has served more than 16 years as a public affairs specialist as an active duty member of the U.S. Army and as a Department of the Air Force civil servant.

KERN BUSINESS JOURNAL

June / July 2017

Technology continues shift toward a more mechanical future of farming By Beatris Espericueta Sanders

rowing food competitively in California is very difficult. Burdensome regulations continue to target the agricultural industry leaving farmers and ranchers at the mercy of Sacramento. Besides the uncertainty that awaits our industry regarding water security, California farmers have to contend with the highest minimum wage of any state in the country. California’s minimum wage will increase by 50 percent over five years coupled with overtime wages Beatris Espericueta Sanders adjusting the farmer’s bottom line. Fuel prices are nearly one-third higher than the national average and yet, starting in November, we will see another tax increase on our fuel. We have the highest

workers’ compensation rates in the nation and a litany of regulations that are among the most burdensome in the country. Despite all of this, the legislative onslaught from Sacramento does not seem to be slowing.

Technology has assisted the industry in finding solutions to replace the labor component, meanwhile making the farming operation more predictable and reliable. In the past 100 years, Kern County has seen a shift in the commodities farmers grow. The demand for water has played a huge role in deciding what to plant every year. Many farmers have switched to

permanent crops where drip or sprinkler irrigation can be used to maximize water efficiency. Their dependence on water has been minimized and farmers have learned to maximize yields while using less water. Monitoring this next presidential cycle, it is clear agriculture will have another huge obstacle to contend with: labor. Throughout history, we have seen many commodities like cotton and almonds switch from manually harvested to mechanically harvested. Technology has assisted the industry in finding solutions to replace the labor component, meanwhile making the farming operation more predictable and reliable. Commodities that are an unassuming crop to be mechanically harvested are now on the rise. In recent years, wine grapes are now harvested mechanically, replacing a huge labor force. Blueberries, which are considered a cosmetic commodity (looking appealing to the consumer) and labor-intense crop, can

now be harvested by machine. Over-regulation and uncertainties in the future reliability of agriculture’s huge work force continue to put pressure on the industry to find solutions. Farming methods and traditional labor crews are adjusting to deal with the constant regulations that come our way. The way we farm will continue to shift to a more mechanical future of farming. — Beatris Espericueta Sanders is the executive director of the Kern County Farm Bureau.

Chamber roundup Summer 2017 events

Greater Bakersfield Chamber of Commerce June 14 — Labor Law and HR Forum; Check-in/networking, 7:30 a.m.; program, 8-10 a.m.; Greater Bakersfield Chamber of Commerce, 1725 Eye St. Sponsored by Young Wooldridge LLP.

Imbibe Wine and Spirits Merchant, 4140 Truxtun Ave. Free to attend.

June 16 and 23 — Government Review Council; 7:30-8:30 a.m.; Greater Bakersfield Chamber of Commerce, 1725 Eye St.

July 12 — State of the City Luncheon Forum; Check-in/networking, 11:30 a.m.; program, noon-1:30 p.m.; $55 members; $65 nonmembers; $650 table of 10; Bakersfield Marriott at the Convention Center, 801 Truxtun Ave.

June 21 — Deadline to submit applications for the 2018 Leadership Bakersfield class. Access applications online at www.bakersfieldchamber.org.

July 27 — Chamber After Hours Mixer; 5:30-7:30 p.m.; $5 members; $10 nonmembers; Bolthouse Properties LLC, 11601 Bolthouse Drive, Suite 200.

June 22 — Chamber After Hours Mixer; 5:30-7:30 p.m.; $5 members; $10 nonmembers; Imbibe Wine and Spirits Merchant, 4140 Truxtun Ave.

July 27 — Join BYP at Art After Dark; 7-9 p.m.; Bakersfield Museum of Art, 1930 R St. For more information, visit www.bmoa.org.

June 29 — Join BYP at Art After Dark; 7-9 p.m.; Bakersfield Museum of Art, 1930 R St. For more information, visit www.bmoa.org.

Aug. 1— Philanthropy on Tap; featured nonprofit: Boys & Girls Clubs of Kern County; 5:30-7 p.m.; Imbibe Wine and Spirits Merchant, 4140 Truxtun Ave. Free to attend.

July 4 — Chamber Closed Independence Day July 7, 14, 21 and 28 — Government Review Council; 7:30-8:30 a.m.; Greater Bakersfield Chamber of Commerce, 1725 Eye St. July 11 — Philanthropy on Tap; featured nonprofit: Kern Dance Alliance; 5:30-7 p.m.;

Aug. 4 and 11 — Government Review Council; 7:30-8:30 a.m.; Greater Bakersfield Chamber of Commerce, 1725 Eye St. For information, please contact the Greater Bakersfield Chamber of Commerce at 661-327-4421 or visit www.bakersfieldchamber.org.

June / July 2017

KERN BUSINESS JOURNAL

June / July 2017

Oil Technology

PHOTO COURTESY OF TREVOR TALLMAN

PHOTO COURTESY OF LA BRISA PHOTOGRAPHY

PHOTO COURTESY OF TREVOR TALLMAN

Aera Energy: Advanced technology driving exceptional performance By Fiona Lytle

3-D modeling

Similar to what’s used in advanced 3-D gaming, this computerized technology helps Aera “see” what’s underground and the oil and gas that may be present. 3-D technology also provides views of surface terrain and aboveground infrastructure like pipelines, processing facilities and pump jacks. With this technology, engineers can identify and mitigate potential safety risks and “walk” through a virtual version of a plant or facility before it’s built.

ver wonder how big companies like Aera manage hundreds of thousands of pieces of equipment that are used to safely produce oil and natural gas? Those lonely oil-pumping units that dot Kern County’s landscape may look like they’ve been turned on and forgotten, but, in fact, they are monitored and controlled 24/7 with sophisticated technology. From 3-D visualization and GIS mapping to digital applications and mobile devices, Aera is capitalizing on technology to boost its oil field performance and safety. In the past decade, the Bakersfield-based company has Fiona Lytle invested several million dollars in technology. “Technology touches everything we do at Aera,” said Allan Skov, Aera Energy’s chief information officer. “We’re leveraging smart machines, communications networks and data management processes every day to see what’s happening at the surface and thousands of feet below ground so we can bring up oil safely and efficiently.” With the growth in technology in the past decade,

Remote monitoring Aera has been able to transform oil field infrastructure and transmit data in real-time, allowing for smoother electronic workflows between field staff and office personnel. Here’s an insider view of Aera’s technology use for field operations.

Mobile technology Powerful digital processes delivered on mobile platforms streamline and enhance Aera’s oil field performance. Instead of using a cumbersome chain of paperwork, emails, phone calls and data entry, Aera employees generate notifications and work orders straight from their iPads. This simplifies communications, cuts costs and increases productivity.

Through the use of smartphone and iPad apps, operators are able to monitor the status of Aera’s plants and facilities at all times and from any location. If a valve needs to be turned to the “on” position on a particular well, an operator has the capability to physically pull the lever with one tap of the finger. Aera is also testing drone use to determine whether the unmanned aerial vehicles and their video imagery can help inspect power poles and pipelines, reveal potential problems that operators might not otherwise see, and improve response times and safety. — Fiona Lytle is a public affairs communications specialist for Aera Energy LLC.

June / July 2017

KERN BUSINESS JOURNAL

Consumer demands in the digital age By Sara Mendez

the majority of the population, regardless of demographic targeting, but also allows advertisers to target consumers more specifically than before. Marketing ROI has never been this accurate and easy to track and capture.

onsumers today are not looking for who smiles when they walk into a store or whose mailer has the best offer. Today, the consumer public is looking for convenience, connectivity and how engaged they can be with their selected products and services. According to Kenneth Kaufman and Chris Young, more than 72 percent of the U.S. population now owns a smartphone and 75 percent of the U.S. are currently using some form of on-demand online services, and as a result, it is now more imperative than ever to get behind the digital age and embrace how technology can move your business’s needle. Consumers today require mobilefriendly websites, apps that give them the ability to pay online, get information quickly that is also relevant to their specific question or need, and social media that not only gives information but responds to their question or post faster than ever before. Simply having a website or social media page is no longer enough. In order to close the deal, businesses must leverage as many digital platforms, touch on as many points as possible and dedicate

Word-of-mouth now includes social media and consumer opinion sites like Trip Advisor, Yelp and others like them. resources to digital media, marketing and communications specific to their industry. In an article published by Blue Corona, Betsy McLeod states that, currently, only 32 percent of small businesses invest in social media and only 25 percent are investing in online advertising of any kind. Seventeen percent are investing in search engine marketing, or AdWords, however, 96 percent report wanting to use social media strategies as a primary tactic

moving forward. Consumers have changed how they make purchase decisions and what it takes to keep their business. Not long ago, the optimal goal was to create a supreme product with a quality that represented the brand at a price that met the consumer’s demand. Today, price and quality are still a must but they don’t close the deal and they don’t influence the top decision-making factors. Digital media not only reaches

Digital media usage continues to increase and as it does, so does the impact of successful digital marketing campaigns. Many people are still unsure on the actual media usage online by some of the largest demographic target markets in the U.S. Broken down by generation, we can see how media usage patterns now center around online searches, video viewing and Please see CONSUMER DEMANDS | 8

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June / July 2017

NASA advancing aeronautics at Edwards Air Force Base By Matt Kamlet

ith the number of general aviation aircraft in the skies increasing each year, the challenges of efficiency, emissions and costs of operation become more prevalent. NASA is exploring a way to meet these challenges through the development of technology that will demonstrate the ability to fly more efficiently, more quietly and with zero inflight carbon emissions. NASA’s X-57 Maxwell is the agency’s first piloted X-plane in nearly two decades. Xplanes, or experimental aircraft, have historically been Matt Kamlet developed and flown to test or demonstrate cutting-edge ideas, designs and technology in aerospace. These aircraft have pushed the envelope in aeronautics to prove what is achievable through flight testing. Some have pushed the boundaries of speed and hypersonic suborbital flight, such as the Bell X-1 or X-15. Others investigated the validity of lifting-body structures, such as the X-24, which in-part led to the development of the space shuttle.

X-57 will investigate and demonstrate the benefits of replacing a traditional combustion system with distributed electric propulsion. The aircraft aspires to demonstrate a 500 percent reduction in the energy required to fly at high-speed cruise compared to traditional propulsion systems. This project is a multicenter effort between NASA’s Armstrong Flight Research Center, at Edwards Air Force Base, Langley Research Center in Virginia and Glenn Research Center in Ohio. This reduction in energy use would mark a considerable milestone in aviation and may translate into lower operating costs. X-57’s first flights target a 3x reduction in energy use, followed by an additional 1.2x reduction from that, prior to the primary goal of 5x. The current stage of this effort includes the integration of an electric system into a Tecnam P2006T aircraft, which is taking place at Scaled Composites, located at Mojave Air & Space Port, with a possible flight by the end of 2017. While this stage consists of the replacement of a traditional propulsion system with distributed electric propulsion, subsequent stages will include the integration of a long, high-aspect ratio wing, the relocation of cruise motors to the wingtips and the eventual use of 12 small, high-lift electric motors to be

CONSUMER DEMANDS Continued from Page 7

social media among every market segment. In a study conducted by Marketing Profs, currently, baby boomers (ages 53-71) spend an average of 1.2 hours each day surfing the web on a mobile device, 19 hours a week online and four a week on social media. Generation X (ages 36-52) spend an average of 1.7 hours a day on mobile devices surfing the web, seven hours a week on social media and 32 hours a week consuming all kinds of media. Millennials (ages 23-35) spend 9.3 hours per day on desktop computers, iPhones and laptops; 3.1 hours a day on mobile devices; 27 hours

located along the leading edge of the new wing. NASA will compare inflight data of X-57 with previous data that had been gathered during flights of the same Tecnam model powered under a traditional propulsion system. This will allow NASA to accurately compare the ability of an electric system to produce more efficient flight.

a week consuming all media; and six hours a week on social media. Lastly, the latest, Generation Z (born after 1995), spend an average of six hours a day on the internet, resulting in more than 40 hours a week online. These changes in behaviors, including how the public consumes media and receives advertising messages, have changed more than just how many commercial ads people see and how many different brands they have access to. It has changed the consumer purchase decision-making process as a whole. Word-of-mouth now includes social media and consumer opinion sites like Trip Advisor, Yelp and others like them. One bad experience no longer only impacts that

the noise associated with traditional combustion propulsion. This noise reduction was demonstrated during an early testing phase of the electric motors system. During the tests, 18 motors, all spinning simultaneously, produced a soft sound similar to the humming of a beehive at some distance. NASA expects the actual sound that will be produced by X-57 could be even quieter than that. Another potential benefit of distributed electric propulsion is the elimination of carbon emissions in flight. While this would surpass the 2035 N+3 efficiency goals, X-57 may also provide a technology path for small aircraft to eliminate 100 low lead avgas, which is a contributor to lead emissions into the atmosphere. X-57 is the first in a series of X-planes NASA is looking to produce and fly in the coming years, the goals of which range from investigating hybrid-electric technology, to achieving quieter supersonic flight. NASA plays a leading role in the advancement of aeronautics, and it is certainly a thrilling time for southern Kern, where NASA’s work is being done on Edwards Air Force Base. — Matt Kamlet is the public affairs officer for aeronautics at NASA’s Armstrong Flight Research Center.

customer and their 12-person arm’s-length reach; it impacts thousands from one post on social media. Now more than ever, digital marketing, website updates and online branding is required to reach today’s consumer. Digital marketing can no longer simply be a line item on the advertising budget. It has to be a strategy in and of itself. It has to be the strategy. Always keep true to who you are, your company’s traditions and what you stand for — values, quality and product — but introduce those principles to the innovative communication platforms consumers want today. — Sara Mendez is the CEO of Mendez Media Marketing Inc.

June / July 2017

KERN BUSINESS JOURNAL

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June / July 2017

Rare-earth elements and their role in renewable energy By Nyakundi M. Michieka

Introduction The deployment of renewable energy has taken over national and regional planning agendas lately. States Nyakundi M. Michieka and cities in the U.S. have been touting its deployment and setting goals and targets to be met over the next few decades. The city of Atlanta, Georgia, recently committed to 100 percent renewable energy by 2035, making it the 27th city in the U.S. to pledge to run on clean energy. Others are Portland, Maine; St. Petersburg, Florida; Los Angeles, California; and Portland, Oregon. The expected increase in demand for renewable energy will be accompanied by concomitant growth in extraction of certain types of rare-earth elements (or materials), which are critical for high-technology renewables.

Rare-Earth Elements Rare-earth elements are 17 elements found on earth. The name “rare earth” is misleading as the name implies that the material is not ubiquitous, which is not true. Rare-earths are abundant, and the United States Geological Survey estimated that 120 million metric tons existed in 2016. They are also found in virtually every continent in the world, with China dominating global supply. What makes them rare is the amount of time and energy it takes to extract them. These materials are used to manufacture components for technologies generating clean energy such as photovoltaic cells, batteries for transportation and components of wind turbines. Table 1 presents eight of the 17 rare earths elements and their use in renewable energies. Lanthanum is used to manufacture highly developed rechargeable batteries, while cerium is the material used in catalytic converters in cars. Neodymium is used in wind turbines and hybrid cars. Terbium and europium are used in thin-film solar panels while dysprosium is used to manufacture batteries in most hybrid gas-electric vehicles that use magnets. So why the interest in rare earth elements? China’s mines have recently ramped up production of REEs sending a downward spiral in prices. These elements, which fetched extremely high prices five years ago, now cost 80 percent less today than they did six years ago. Europium oxide, which costs between

$1,500 and $1,600 a kilogram in 2012, costs between $62 and $70 in 2016, while the average price of terbium dropped from $1,250 to $418 during that period. Dysprosium, neodymium, lanthanum, cerium and yttrium also experienced price declines. Table 2 illustrates price drops of five REEs between 2012 and 2016. The National Renewable Energy Laboratory and the American Wind Energy Association have reported that costs of solar and wind have declined in the last few years. Although prices have declined, cost of REEs have not played a significant role — yet. There are other factors in the economy driving this price decrease. The literature reports that solar prices have declined due to technology improvements, economies of scale and government subsidies, which have led to improvements in manufacturing solar panels. Other contributions to lower prices include lower module and inverter prices, improved labor productivity, increased competition and lower installer and developer overheads. It is no wonder that electricity generation from solar grew by 5,000 percent between 2006 and 2016, or 40 percent each year in the last five years (during which wind energy supply grew at a rate of 13.2 percent), according to the U.S. Energy Information Administration. A visual representation of these increase in demand and supply is shown in Table 3.

Employment This growth in demand and supply resulted in employment gains, with jobs in electric power generation increasing by 13 percent between 2015 and 2016. In the past year, the solar workforce added 73,000 new jobs and increased by 25 percent, while wind employment went up by 32 percent. A 2017 report from the Department of Energy indicated that solar employment accounts for the largest share of workers in the electric power generation sector, employing more people than oil, coal, natural gas, nuclear and hydropower combined. This is largely due to the construction-related activities driving up solar generation capacity, along with an increasing number of employees installing and building these facilities.

Conclusion

country are located in Mountain Pass, California, at the heart of the Mojave Desert. Other reserves are present in Idaho, Colorado and New Mexico.

Much has not been discussed on the impact of an increase in supply of REE into the market. This could potentially lower the already decreasing prices, consequently affecting supply of technologies relying on them. Currently the U.S. imports 90 percent of REEs which come from China. Viable resources in the

Going forward, demand and supply in REEs and other elements are set to increase due to growing adoption of renewable energies and this has significant implications for employment and the environment. The news has been awash with headlines such as “Cobalt prices are

set to rocket as Tesla and Apple scramble for supplies” becoming evident that the impact of rare-earth prices, which are the materials needed for building renewable energy equipment, are crucial in determining future renewable diffusion. REEs will be a game changer and possibly the new oil going forward. — Nyakundi M. Michieka is an assistant professor of economics at California State University, Bakersfield.

June / July 2017

KERN BUSINESS JOURNAL

Oil field gone mobile

Making science, technology come alive for Kern County students By Tracy Leach

n a county like Kern where oil field pump jacks far outnumber Starbucks, one would think our students are accurately educated on the local petroleum industry and its positive impact on our community. Unfortunately, there is still a wide array of misinformation coming from those who either don’t know any better — or do — and are a part of groups trying to end California’s oil and gas production. Believe it or not, some of these people live right here in Kern County and Tracy Leach influence our children. Though there is always more to be done, many companies and individuals within the industry are fighting back against this narrative and continually demonstrating that local petroleum production is done in an extremely safe, environmentally conscious manner. There are several programs we have come across that educate students on not only the vast benefits of petroleum, but also the facts behind the industry and how it all works. The Mobile Oilfield Learning Unit, or MOLU for short, is exactly what the name says: a traveling unit used to teach students about oil rig activity while raising

awareness about how the industry works. MOLU comes from the Offshore Energy Center in Houston, Texas, and helps students learn how the oil industry affects their lives and families, introducing them to the field and inspiring them to learn math and science. The students have the opportunity to study crude oil as well as learn the everyday products that oil and gas can create. Though this program is geared towards fifth-grade students, it is appropriate for other age groups as well and the curriculum is adaptable to state standards as needed. The Offshore Learning Center has done an excellent job developing this exhibit and correlating its content and activities with elementary national standards. There are six self-contained, hands-on units that each showcase the science, technology and benefits behind the oil industry. The exhibition is transported around the country for demonstration and will come to Kern County schools this fall, thanks to sponsors such as Chevron, Aera and CRC. Because of their support, thousands of our Kern County students will get to experience MOLU. Depending on the site, as many as 1,000 students can go through the exhibit in just one day. Kern Citizens for Energy will also sponsor a school site and we look forward to supporting petroleum education and ongoing learning for our young people. Our coalition consists of local citizens, small-business owners, nonprofits, chambers of commerce and taxpayer advocates who support the oil and gas industry in Kern County.

PHOTO COURTESY OF VAN ZANDBERGEN PHOTOGRAPHY

We applaud the enormous contributions that the petroleum industry makes in our county, the state of California and throughout the nation in the form of jobs, tax revenues and philanthropy. We are grateful for this incredible resource and the thousands of Kern County men and women who bring their talents to our energy sector. And we look forward to sharing the many extraordinary aspects of petroleum with the next generation when MOLU arrives in the fall. — Tracy Leach is the director of Kern Citizens for Energy, an organization dedicated to supporting the thousands of men and women who work in the energy industry in Kern County, and founder and president of Providence Strategic Consulting Inc.

KERN BUSINESS JOURNAL

June / July 2017

EXECUTIVE PROFILES OF KERN COUNTY

SERGIO DE CASTRO

RUBEN CONTRERAS

Title: Senior Vice President and Chief Financial Officer

Title: PG&E Maintenance and Construction Supervisor, Kern Division

Company: Aera Energy LLC

About the company: Aera Energy is a respected and responsible California oil company accounting for nearly 25 percent of the state’s oil production. Headquartered in Bakersfield, Aera is known for excellent safety and environmental performance, innovative business practices, application of cutting-edge technology, a dynamic company culture and active community involvement. With operations centered in the San Joaquin Valley, much of Aera’s oil production comes from Kern County. Aera also has active oil field operations in Ventura, Monterey and Fresno counties and is in the permitting process to redevelop the East Cat Canyon oilfield in northern Santa Barbara County. What I do: As Aera’s CFO, I’m

responsible for the company’s present and future financial position. I oversee accounting and reporting, financial budgeting and management, purchasing, strategy and planning. Where I grew up: Bogota, Colombia. How I landed in Kern County: I’ve been with ExxonMobil since 1994, most recently in Houston. Every three years, Aera gets a new CFO from ExxonMobil. This time, the opportunity was mine. My first day with Aera was May 1, 2017. Education: I earned a bachelor’s

degree in industrial engineering from Pontificia Universidad Javeriana in Bogota. I also studied accounting at Bogota’s Universidad Externado de Colombia. I received an MBA from George Mason University in Fairfax, Virginia.

Hobbies: I love visiting museums and taking in the arts and cultural events. New York City is my favorite weekend getaway. I also enjoy watching live sporting events.

About the company: Pacific Gas and Electric Company provides gas and electric service to Kern County residents. More than 400 PG&E employees live and work in the Kern division.

What was your very first job and what did you learn from it? I was

What I do: I supervise our main-

a commercial airline maintenance warehouse inventory clerk in Bogota. I learned how to be disciplined and organized.

tenance crews who are part of our emergency response team supporting power restoration, maintenance and electric construction.

Who or what has been the biggest influence on your career?

Where I grew up: Wasco

My father, Bernardo, who taught me the importance of work; my motherin-law, Maria, from whom I learned about caring and giving to others; and my first boss at ExxonMobil, who taught me the most important asset in any enterprise is the people.

Education: High school diploma

What was the best piece of advice you ever received? Someone pointed

out to me once that although a person may speak with an accent, he or she doesn’t think with an accent. It’s all about inclusion and diversity. What is the most challenging part of your job? I love what I do,

particularly when problem-solving is involved; it’s what makes the job exciting and rewarding. The biggest challenge, and opportunity for problem-solving, is helping our leadership team build Area’s vision and continue the organization’s long history of success. What is the most rewarding part of your job? Being able to

participate in the development and implementation of Aera’s future strategy for growth.

Family: I met my wife, Lina, in

Bogota through my best friend. We have one daughter, Gabriela, who is 16.

Company: Pacific Gas and Electric Company

Family: I’m engaged to an incred-

ible woman named Marcy. We are set to get married this September. My parents have been married for 37 years and I am the youngest of three children. My brother, Steve, is 35 and my sister, Angie, is 47.

been proud of me and it drives me to continue to succeed at PG&E. What was the best piece of advice you ever received? When

looking for a career, I was told to ask myself one question: How do you want to live versus what do you want to do? This philosophy helped me to focus my priorities and reach my goals. What is the most challenging part of your job? The only

downside to being a supervisor is spending much more time inside the office. I enjoy being out in the field visiting my crews and job sites. Balancing both aspects of my job can be challenging but I’ve found a way to do both successfully. What is the most rewarding part of your job? During storm season

and enjoy watching cooking shows. My dream is to eat exotic food all over the world. I also enjoy modifying electronics to understand how things work. I’ve been known to purposely break items to see if I can fix and improve them.

I work out of town most holidays, including Thanksgiving, Christmas, New Year’s and my birthday. The most rewarding part of my job is when customers thank us for restoring their power. We receive thankyou cards and baked goods during storm season and it’s genuinely appreciated.

What was your very first job and what did you learn from it? My

What is the most memorable accomplishment of your career?

first real job with a paycheck was working in the cotton fields. I was up every morning at 5 a.m. to be at the job site at 6 a.m. I didn’t have a license or a car so I paid a coworker $5 a day to drop me off. The experience taught me responsibility and gave me a sense of pride that I could help my parents financially.

I began my career with PG&E as a temporary clerk at 19 years old. After years of hard work in various positions, I was promoted to supervisor overseeing 11 employees at 29 years old.

Hobbies: I am obsessed with food

What is the most memorable accomplishment of your career?

Who or what has been the biggest influence on your career? My parents have been the

When I see others being successful under my leadership.

biggest influence in my life and career. My parents have always

June / July 2017

KERN BUSINESS JOURNAL

EXECUTIVE PROFILES OF KERN COUNTY

JOAN JOHNSON Title: Executive Director Company: Naval Air Warfare Center Weapons Division

About the company/organization:

The Naval Air Warfare Center Weapons Division is an organization within the Naval Air Systems Command dedicated to maintaining a center of excellence in weapons development for the Department of the Navy. China Lake is the principal land test range and weapons development laboratory for the Department of the Navy. What I do: I direct a civilian workforce

of more than 5,700 professionals and am responsible for research, development, acquisition support, test, evaluation and in-service engineering for the total weapon system. How I landed in Kern County: I

worked in industry for 17 years before choosing to work with the Department of the Navy. Because of my role in industry, I had the opportunity to build great, professional relationships at Naval Air Warfare Center Weapons Division China Lake. It was during that engagement that I fell in love with the work, the people and the culture. Education: Bachelor of Science in chemical engineering from the University of Virginia Hobbies: Hiking, traveling and wine-

tasting! What was your very first job and what did you learn from it?

My first job was as an entry-level engineer for a defense contractor. I learned several things: First, with the right leader, good teams can accomplish extraordinary things; second, if you want to make a real difference, you must get out of your comfort zone and push yourself beyond what you think you are capable of achieving and then deliver; and third, seek out and respect the expertise of others, learn from their experiences and apply the learning, and build relationships founded in mutual

respect and trust. Who or what has been the biggest influence on your career?

Both my parents have had a positive influence on me and have shaped who I am as a person. My mother, by example, taught me to be compassionate and forgiving. My father taught me, by example, never to settle for mediocrity. What was the best piece of advice you ever received? Take your job

seriously, but not yourself. What is the most challenging part of your job? Balancing time and atten-

tion to technical needs, organizational needs and individual workforce needs. All three are important and interdependent, and each requires personal commitment and continuous engagement. What is the most rewarding part of your job? Working with a world-class,

focused and dedicated workforce who, every day, are making a difference for the warfighter. What is the most memorable accomplishment of your career?

One of the most memorable positions I held was that of the AH-1 Cobra Light Attack Helo Weapon Systems Support Activity lead. Two weeks after being assigned into the position, 9/11 occurred. Focus and priorities shifted to supporting immediate needs for squadrons deployed in theater, and our small, yet motivated in-house team turned to and provided some innovative, rapid solutions to urgent needs identified by the AH-1 community. One of the most rewarding days I recall is a visit from some AH-1 aircrew thanking the team for the tools and capabilities they provided on short notice. The aircrew shared that the capabilities were saving lives in theater. That conversation on that day reinforced for each of us why we come to work each and every day.

KERN BUSINESS JOURNAL

Need for more women in STEM requires action in Kern County By Cheryl Scott

he face of the U.S. workforce was forever changed more than 70 years ago when 12 million men (and more than 350,000 women) were called to serve in the U.S. Armed Forces during World War II. Women across the country stepped up to fill the jobs left vacant on the homefront, positions including everything from office jobs to factory work, most traditionally held by men. Many of those female newcomers to the workforce never looked back, and they decided a career outside of the home worked just fine for them, even after the war ended. The percentage of women in the workplace increased from 27 percent to 37 percent between 1940 and 1945, and today, over 57 percent of women participate in the labor force.

Some Career Paths are Still Bumpy for Women In the seven decades since the emergence of “Rosie the Riveter,” American jobs have been transformed in many ways. But some hard truths remain when it comes to women in the workplace. Today, women represent 48 percent of the U.S. workforce, but certain types of jobs continue to be heavily dominated by males across the country and in Kern County. Jobs requiring STEM (science, technology, engineering, and math) training are especially skewed in terms of gender. Just 26 percent of U.S. STEM jobs were held by women in 2011, according to the U.S. Census Bureau. In Kern County, the STEM gender gap is even larger, with just 19 percent of local STEM jobs held by women.

Kern County Industries Rely on STEM Professionals Availability of a STEM-trained workforce is important to employers in Kern County, where 18 percent of the region’s jobs are STEM-oriented. Unfortunately, Kern County also faces a 10 percent shortfall when it comes to highly trained employees. As a result, employers often resort to recruiting their STEM professionals from outside the area. This is frequently a short-term solution since, according to many local executives, recruits often return to their home state or leave the area to seek opportunities in other areas of California. Increasing the number of female STEM professionals in Kern County

(and young girls aspiring to pursue STEM careers) can position local employers for increased success and would make the region more attractive to new industries as well.

Nurturing a STEM Interest Among Girls Kern Economic Development Foundation recently conducted a survey and focus group of Kern County women working in STEM. Participants revealed some of the opportunities and also the challenges that they have encountered in their careers (e.g. the wage gap, unconscious bias and work-life balance). One survey respondent stated, “Being a female mathematician was a lonely endeavor, but one I loved and couldn’t walk away from.” They also identified strategies for reaching out to girls at a young age in an effort to increase their interest in pursuing STEM education and careers. While the number of local girls interested in STEM has increased since the introduction of programs like Project Lead the Way and other efforts by local organizations (see www.kedf. org for a list of local programs), those numbers decrease as students get older. Girls’ interest in STEM falters as they progress through high school and into college. Nationwide, the number of female graduates in certain STEM majors like engineering and computer science is significantly lower than their male counterparts (especially for minority women), according to the National Science Foundation. Nurturing increased STEM interest among girls and young women can open up a world of opportunity and professional fulfillment for them. At the same time, it just might be the effort that takes Kern County’s workforce and economy to the next level. With that in mind, KEDF is partnering with local professionals and educators to encourage STEM interest in girls and young women and to provide networking and educational opportunities for local women already working in STEM careers. The need for more women in STEM deserves attention by our business and education communities. The benefits will be far-reaching for Kern County and its residents. — Cheryl Scott is the executive director of the Kern Economic Development Foundation.

June / July 2017

China Lake lab uses rapid, reverse engineering to support AV-8B By Stacie Bailey

he Composites Engineering Branch at Naval Air Warfare Center Weapons Division China Lake is known for manufacturing ordnance and aircraft components using lighter, more durable layers of composite materials in place of metal. In early 2016, however, the team was asked to take a step in a different direction and refurbish detachable gun and ammo packs for the AV-8B Harrier. Since summer 2016, they’ve used reverse engineering to restore the packs back to the manufacturer’s original quality. “This hardware is coming to us beat up and we are restoring it to like-new condition and sending it back into the fleet,” said Chad Waltz, a lead engineer in the Composites Engineering Branch. “The Logistics team has wanted this for years, but has been unable to find a satisfactory solution until meeting with us. We were even stood up as an ‘organic repair facility,’ or depot, for this work.” The Industrial and Logistics Maintenance Department at NAWCWD began manufacturing the packs in the early 1980s to support various AV-8B missions, but the packs have been out of production for at least 15 to 20 years. According to Waltz, the parts have undergone quick, temporary repairs by other depots to keep them flying but have seen a lot of wear and tear. “We’re typically the ones generating the drawings, models and tooling, so we’re used to starting from an essentially blank slate,” Waltz said. “With this, however, we have to go back and learn what the original manufacturer did and then try and replicate it because we don’t own the data package to this system or any of the engineering. We have to try and make out exactly what their intent was for doing certain things and make sure our repairs don’t violate that.” From deciphering the many parts of the original design to fabricating and replacing missing pieces or layers, it’s been a pretty steep curve for the team to learn everything that’s required to replicate the original product. Each pack undergoes an initial analysis and paint removal to identify how much work it needs. The team uses composite materials to build the layers back up to the original strength before

it’s repainted, stenciled and inspected. In addition to working closely with Logistics, having experienced team members and hiring new talent willing to learn has proved beneficial.

“This hardware is coming to us beat up and we are restoring it to like-new condition and sending it back into the fleet.”

— Chad Waltz

“Initially, the program told us the lead time for the repair of this hardware — if they could find someone to do it — had escalated to somewhere between one and two years,” said Dave Dunaj, head of the Composites Engineering Branch. “Our plan facilitates a turnaround time of three to four months depending on the severity of the repair required. Both artisans and engineers have stepped up to support this effort in true China Lake spirit.” Dunaj cited continued management support as one of the reasons that the Composite Lab capability is second to none. “We’re always standing ready to support the warfighter,” he added. The Composites team intends to continue supporting these packs until the AV-8B is retired, and as long as the work is needed. “We see it as an investment in supporting the aircraft until it’s replaced,” Waltz said. “We do a lot of research and development here on base and that’s important to future capabilities, but it’s also nice to work on items that get turned around quickly for the fleet to use immediately. That’s really rewarding for us and we’re happy to support them in any way we can.” — Stacie Bailey earned her master’s degree in journalism from Quinnipiac University. She left the big, shady trees and lush grass of North Carolina to follow her love of writing and the love of her life to the High Desert of California. Stacie currently works for a defense contractor supporting the Public Affairs Office at the Naval Air Warfare Center.

June / July 2017

KERN BUSINESS JOURNAL

Energy Summit continues to shed light on Kern County’s vast resources By Mayan Xitlaly Lara

ith all the oil, gas, wind and solar energy Kern County produces, it is an economic powerhouse that is huge on energy innovation and technical development. According to Kern Economic Development Corporation Marketing and Research Coordinator Tamara Baker, a major key to thriving and growing in the energy industry is to stay educated and informed on the latest and greatest forums. That’s where the Kern County Energy Summit comes in. Every year, KEDC puts together the Kern County Energy Summit, which helps bring public awareness about the county’s vast resources. The KEDC is a public-private partnership that creates a strong and diverse economy for Kern County, helping bring together private businesses, education, nonprofit organizations and elected officials and makes sure the community has what it needs to continue to thrive and grow.

Since the summit’s debut in 2006, which at the time only had 100 guests attending, it has quadrupled in size. Now the summit welcomes over 400 guests to attend. “It showcases local folks showing the wide array of projects around the county but also brings in national, regional and statewide folks to talk about the industry trends,” said President and CEO Richard Chapman. Attendees learn how to profit from today’s top trending tools and resources while also reducing their environmental impact. They also have the opportunity to network with top industry experts and learn about local technologies that are shaping the future of the nation. “We really are the energy capital of the country and we’re No. 4 in the country for STEM jobs,” said Chapman. According to KEDC, Kern County is also listed as No. 4 in most industrial variety for having a wide array of logistics, manufacturing and technical jobs. With national rankings in renewable energy, such

The Kern County Energy Summit will be held Nov. 8 at the DoubleTree by Hilton. as wind and solar, and traditional energy, such as oil, Kern County is one of the nation’s strongest players in the energy industry and the leading energy provider for the state of California. Kern County currently sits at No. 2 on the nation’s list of top oilproducing counties in the nation, yielding 397,000 barrels of oil on a daily basis, which equates to 72 percent of California’s oil production. “A lot of times the state reaps the benefits from us but we don’t always get the recognition and I think the summit is a way to bestow that recognition,” said Baker. Each year the summit welcomes top leaders in the energy industries to share their stories. The event gives speakers a chance to shed light on what’s going on in other regions and offer insight on new ways

to improve Kern County’s industries. “I think the Energy Summit is really a way to delve deeper into an industry that really drives our economy,” said Baker. The Kern County Energy Summit isn’t just about showcasing local industry leaders but also a chance for local industry leaders to meet and network with industry leaders from other cities and regions. According to Baker, while other cities might be more oil or gas friendly, the Kern County Energy Summit combats all energy industries, making it a supportive forum for all forms of energy to come and give tips on how to keep on growing. “It’s a great way to promote your business as well as meet other people in the industry and make connections here in Kern,” said Baker. The Kern County Energy Summit will be held Nov. 8 at the DoubleTree by Hilton.

For sponsorship opportunities, contact Tamara Baker at Tamara@kedc.com or visit www.KernEnergySummit.com.

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KERN BUSINESS JOURNAL

Providing convenient, connected and complete care — when and where members want it

By Kaiser Permanente Kern County Is there anything we can’t do from our electronic devices and computers? We watch movies and TV, talk face to face with distant loved ones and even measure our heart rates. So, of course, patients expect telehealth options from their health care provider, and luckily, Kaiser Permanente delivers. Telehealth is yet another way in which Kaiser Permanente continues to transform the member experience with convenient options to access care. By offering communication technology to bring the delivery system to patients, telehealth can connect patients with providers in many clinical settings, including primary care, specialty care, urgent care and more. While telehealth is typically thought of as video visits, at Kaiser Permanente, telehealth is much more. In our system, telehealth: • Includes a wide range of options for how and where members get care, including phone, email and video. • Is connected to our electronic medical record for coordinated and connected care. • Is part of how we deliver care versus being an add-on service. • Has been available to our members for many years. At Kaiser Permanente, telehealth is part of our programwide commitment to driving innovations that advance care, transform the member experience and improve quality. Unlike many third-party vendors, Kaiser Permanente provides a comprehensive and integrated telehealth offering. Here are two key areas that help differentiate Kaiser Permanente: • Telehealth is built into our system of integrated care. At Kaiser Permanente, telehealth is an extension of our integrated care delivery system, not an add-on or extra, so our members get the same high-quality care they would get in person at any one of our facilities. • No matter the entry point, members benefit from Kaiser Permanente’s connected care, powered by our electronic health record system, Kaiser Permanente HealthConnect. All telehealth encounters are documented in a member’s electronic medical record. With access to members’ health information through KP HealthConnect, Kaiser Permanente care providers can get a more complete picture of our members’ health, enabling them to deliver a better member experience and resolve issues more efficiently. With technology moving at a rapid pace, Kaiser Permanente is focused on improving members’ health by providing the right care at the right time and encouraging members to access care in the venue or method most appropriate for and convenient to their needs.

June / July 2017

Bakersfield solar company recognized as innovator By Maureen Buscher-Dang

or more than three decades, Glenn Bland has been riding a “solarcoaster.” A solar industry pioneer, the Bakersfield businessman has been navigating his Bland Solar & Air through the highs and lows of an emerging technology that is buffeted by increasing competition and a constantly changing regulatory environment. Through it all, Bland has emerged as an industry leader. And he credits the support he Maureen Buscher-Dang receives from Mission Bank for helping provide the flexibility and financial foundation to focus his Bakersfield-based company on quality and innovation. “To expand, cash flow can be challenging,” Bland explained. “Mission Bank has been there every step of the way. They are proactive before there is a need. They call. They take time to network with their clients. They’re very involved. It’s a real partnership.” Bland and his company recently were showcased in a Los Angeles Times feature story for being a solar pioneer and marketing innovator. “We want to bring a new level of professionalism to the solar industry,” Bland said, explaining his success in growing his company and in convincing Bakersfield and Kern County to embrace solar energy. Because residential and business customers have many solar options and cost factors to consider, Bland concluded customers needed to be able to make thoughtful purchasing decisions in a nopressure setting. In 2014, he opened his company’s first Bakersfield showroom in a 5,000-square-foot storefront next to Trader Joe’s in the Town & Country Village, 8200 Stockdale Highway. The company also now has showrooms in Clovis, Fresno and Templeton. “By all accounts, owner Glenn Bland runs the largest, most comprehensive solar power showroom in California, with not only panels, but also actual rooftops with the

PHOTO COURTESY OF BLAND SOLAR & AIR

Glenn Bland, founder and chief executive officer of Bland Solar & Air, is surrounded by solar energy panel displays in his Bakersfield showroom.

systems mounted for potential customers to see,” the Times reported. In addition to generating energy to power homes, the solar systems are designed to operate in conjunction with utility company systems. Using a microinverter to distribute electricity, the rooftop solar systems feed excess energy back to the power grid — essentially making a home’s electrical meter spin backward. Bland estimates that of the 100 installation contracts his company signs each month, more than half are originated in his showrooms. “It’s been very well received,” he said. Bland’s company is not a highpressure sales operation. Founded in 1985, the company’s solar systems complement the energyefficient heating and cooling systems it has sold, installed and maintained for three decades. With his company focusing more on the quality of its products and work, rather than on obtaining quick sales, Bland is recognized as a local and national solar energy leader. Through seminars, he also has helped train others in the industry, including competitors, on proper installation methods. Despite being a major producer of oil, Bakersfield is recognized for its acceptance of “green energy” technologies, especially rooftop solar. According to recent industry research, two Bakersfield ZIP codes are listed in the top 20 in the state for having the highest percentage of residences and businesses with solar installations. The “penetration percentage” in the 93314 ZIP code is No. 1, with 33.2 percent, and in the 93312 ZIP code, it is No. 17, with 18.7

percent. No doubt, Bakersfield residents recognize the cost savings of installing rooftop solar systems, as utility electricity rates continue to climb. “The long-term outlook for rooftop solar is positive, particularly as prices have come down,” noted industry analyst Solar Leaderboard on its website www. solarleaderboard.com. The Solar Energy Industries Association and GTM Research is forecasting solar energy generation nationwide this year will continue to build on its strong 2016 performance, when generation nearly doubled from 7,493 megawatts in 2015 to 14,626 MW. Much of this growth was the result of utility-sized solar energy generation plants being brought online. But nationwide, rooftop solar generation also grew 19 percent last year. In 2012, Bland and associates founded CalCom Solar, a sister company that focuses on solar energy systems for agriculture and water. Within four years, CalCom Solar was ranked third on the Inc. 500 list of America’s fastest growing privately owned companies. “Supporting and encouraging innovative local companies, such as Bland Solar & Air, is an exciting opportunity for Mission Bank,” 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-quality services to local businesses.” — Maureen Buscher-Dang is a Bakersfield public relations consultant.

June / July 2017

KERN BUSINESS JOURNAL

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KERN BUSINESS JOURNAL

June / July 2017

Cyber Security

Energy industry becomes cyber war battlefield Sycamore Cogeneration Company located in Kern County. By Alphonso Rivera

.S. energy facilities are increasingly being targeted by cybercriminals, according to a recent report released by government and private security officials. Just one agency, the Department of Homeland Security, reported a jump in cases with its investigators receiving reports of 59 significant cyber incidents occurring at U.S. energy facilities in 2016. The agency handled 290 cybercrime incidents last year involving numerous industrial sites, including factories, power and chemical plants, refineries and nuclear facilities. Many of Alphonso Rivera these incidents originated with “phishing emails” — emails sent by hackers that trick people into downloading virus-infected attachments or links. Many others came from “network probing” and “scanning” schemes. Some viruses result from malware that was inflicted on systems years ago but keep spreading. Others result from increasingly sophisticated schemes that continue to be created. In a study conducted in 2015 for Hewlett Packard Enterprise, the Ponemon Institute estimated cybercrimes are costing U.S. energy and utility companies about $12.8 million a year in lost business and damaged equipment. And the possibilities of catastrophic events being caused by cyberattacks are growing. Consider the “mother of cyberattacks” that hit Saudi Aramco in 2012, when an employee opened a phishing email and released a computer virus. Files quickly began to disappear from the company’s computers. Telephones went dead. As staff desperately yanked cables out of equipment, computers shut down. In just a few hours, 35,000 computers were wiped or totally destroyed. Saudi Aramco, which supplies 10 percent of the world’s oil, was unable to conduct business

or communicate with customers. After about two weeks, the company had to give oil away for free to keep inventories from overflowing. It took five months for the company to come back online. A bigger disaster was averted because some of the company’s functions were not networked with the infected system. The motivations for these attacks are many: nation-states waging war by attacking adversaries’ energy supplies and production; politically or ideologically driven groups advancing their causes; criminals seeking to steal data, divert production or extort money; and competing companies engaging in industrial sabotage or espionage. Among the most common risks are plant shutdowns, equipment damage, utilities interruptions, production cycle shutdowns, product quality problems, undetected spills and safety breaches that result in injuries and death. Imagine, for example, what would happen if a hacker changed critical settings that controlled the filling of a tank. A cybercriminal could engineer an explosion when the tank reached its maximum capacity. Imagine what would happen if a hacker changed the temperature and pressure settings on a remote plant, triggering a shutdown and a timewasting, expensive investigation. Imagine if a hacker changed the oil stock information of a company to incorrectly indicate it had a much bigger inventory. When the demand exceeded supplies, the company could no longer service customers. Havoc would be inflicted on the company, oil prices and marketplace. The number of cybercrimes occurring in the energy industry likely is underreported because many companies do not want to divulge their vulnerabilities. But companies are increasingly addressing these risks. ABI Research, a technology market intelligence company, estimates oil and gas companies will be spending $1.87 billion on cyber security by 2018. Industry and government initiatives also are underway to develop standards and requirements for reporting breaches and improving

security. But there are immediate steps companies can take to protect their systems.

Among the most common risks are plant shutdowns, equipment damage, utilities interruptions, production cycle shutdowns, product quality problems, undetected spills and safety breaches that result in injuries and death. • Make cyber-security a priority — from top management to line employees, as well as contractors. This includes investing in cybersecurity systems. • Understand vulnerabilities. Don’t assume any operation is safe from hackers. Network systems when it makes business sense. Create “firewalls” when possible. • Share security concerns with others in the industry. A “common enemy” should encourage common, timely solutions. • Disseminate sensitive information on a “need to know” basis. This should not create barriers for a company’s efficient operation. Rather it should be to minimize exposure to security breaches. • Educate the workforce. Train employees how to recognize hacking and other cyber intrusions, as well as how to prevent these crimes from occurring. — Alphonso Rivera is the founder and CEO of Advanced Micro Resource, a Bakersfieldbased digital forensic company that specializes in digital audits involving cell phone and computer evidence for attorneys, private investigators, human resources consultants and companies.

June / July 2017

KERN BUSINESS JOURNAL

June / July 2017

Kern man’s Bit Wizard cuts drill bit repair costs

By Kelly Bearden

dwin Hacobian has the heart of an inventor. Four years ago, the Bakersfield man’s “great idea” for industrial protective clothing brought him to the Small Business Development Center at California State University, Bakersfield. He began working with the center’s consultants to create, patent and market an impact-resistant protective glove. Used extensively in the oil fields, as well as other industrial sites, the glove helps keep workers’ hands from being crushed. Kelly Bearden Hand injuries account for a substantial percentage of all workplace injuries, particularly in industries where workers use heavy equipment and materials or work with hazardous tools and chemicals. Wrist, finger and hand injuries account for 19 percent or more of all serious injury claims in oil fields, construction and other environments. Hacobian’s patented saturation, chemical and impactresistant protective glove features an inner liner, an intermediate protective layer and an outer saturation-proof layer. In 2014, Hacobian began working with the center’s marketing, design and patenting consultants to bring another invention to market. It is a system Hacobian calls the Bit Wizard. With Hacobian’s full-time job being the manager of a concrete company, the inventor recognized the need for a cost-effective, reliable system to repair the bits on core drills. A core drill is a drill designed to remove a cylin-

der of material, much like a “hole saw.” The material left inside the drill bit is referred to as the “core.” Core drills are frequently used in mineral exploration, including mining and oil production, where the coring may be several thousands of feet in length. The core samples PHOTO COURTESY OF JOHN HARTE A welder repairs a worn bit on a core drill using a Bit Wizard system, which allows bits are recovered and examined by geologists to to be cost-effectively and quickly repaired in-house, rather than sent to a third-party obtain such information as mineral percentvendor. ages. There are many other uses for core meet on a one-on-one basis with local entrepreneurs, drills, including drilling masonry. often over a months and years. “The drill bits are expensive and the segments, or The Small Business Development Center at CSUB ‘teeth,’ wear out over time,” Hacobian explained. “When is one of five service centers within the University of a company sends out a drill bit for repair, it’s a two-week turnaround. A company is down the use of a drill bit during California, Merced SBDC Regional Network, which is a partnership between the university and the U.S. Small that time, plus the cost of repair. It gets really expensive.” This concern led to Hacobian’s development of his Bit Business Administration. The center at CSUB assists entrepreneurs and smallWizard system. business owners in Kern, Inyo and Mono counties by “The repair of a core bit using the Bit Wizard takes providing free one-on-one consulting, small business an average of about 45 minutes. A company that has a Bit training and research. For more information, go to csub. Wizard system can have bits ready to drill holes at any edu/sbdc. time, with less expense,” said Hacobian, noting that his machine will handle bits from 28 to 72 inches in diameter. — Kelly Bearden is the director of the Small With the Bit Wizard, the user is able to examine a bit’s Business Development Center at Cal State Bakersfield. damage. If it is worth rebuilding, it can be trimmed with a precision cut. A swing-away, stainless steel arm will then hold segments in alignment to allow them to be welded. The advice and assistance Hacobian is receiving from More Information consultants at the Small Business Development Center to Go to www.bitwizard.biz or call 661-349-7705 develop and market his protective glove, as well as his Bit for more information. Wizard, is free of charge. Consultants, who bring a wide range of experience and expertise to their SBDC work,

Don’t be fooled by tax scams By Joel A. Bock

ave you ever received a threatening phone call from someone purporting to represent the Internal Revenue Service? Well if you have, you’re not alone. These phone scams are included on the IRS “Dirty Dozen” list of tax scams again for 2017. While you may be Joel A. Bock aware that the IRS will never call and demand immediate payment without first having mailed you a notice, demand that you make payment without presenting an opportunity to appeal, require that you use a specific method of payment (i.e., a debit card), ask for credit or debit card information over the phone, or threaten your arrest for nonpayment, it can nevertheless be a

scary phone conversation. The goal of these phone scams can range from theft (i.e., payment of an amount that you don’t owe to the criminal) to tax-related identity theft. According to the most recently reported statistics regarding tax-related identity theft from the IRS, the fight against tax-related identity theft has seen positive developments including 1.) the number of people who filed affidavits with the IRS saying they were victims of identity theft dropped 50 percent during the first nine months of 2016 compared to 2015; 2.) nearly 50 percent drop in the number of fraudulent returns that made it into the IRS tax processing systems; 3.) the number of suspect refunds stopped by banks and returned to the IRS dropped by more than 50 percent — to 108,539 in 2016 ($239 million) compared to 243,361 in 2015 ($829 million), which demonstrates the improved ability to stop fraudulent returns before refunds are paid. A contributing factor in these recent

improvements is the Security Summit partnership in which leaders from the IRS and state tax agencies in cooperation with executives from the private sector tax industry joined forces to combat “increasingly sophisticated criminal enterprises that were amassing massive amounts of personal data.” While the progress seen in 2016 was promising, additional steps were taken to curb tax-related identity theft during the 2017 tax season including 1.) 37 new data elements added to every tax return; 2.) the tax preparation software industry continued to enhance software password requirement for individuals and tax return preparers; and 3.) the Form W-2 Verification Code initiative started in 2016 expanded from 2 million forms to 50 million forms. Perhaps the most significant progress to date in curbing the tax phone scams occurred in October 2016 when 70 people were arrested at nine call centers outside of Mumbai, India. These operations were

estimated to be collecting up to $150,000 per day from the scheme. The suspects were charged with extortion, fraud and use of a criminal threat. IRS Commissioner John Koskinen has stated, “We continue to say if you are surprised to be hearing from us, then you’re not hearing from us.” If you find yourself the victim of a phone scam, the IRS suggests the following course of action: 1.) Don’t provide any personal information; 2.) hang up immediately; and 3.) contact the Treasury Inspector General for Tax Administration at 800-3664484 to report the phone scam or the IRS at 800-829-1040 to inquire regarding any outstanding tax balance that you may owe. For additional information, please contact the IRS at the phone number provided above. — Joel A. Bock, CPA, MST, is a partner in Daniells Phillips Vaughan & Bock, a Bakersfield accounting firm.

June / July 2017

KERN BUSINESS JOURNAL

OIL INNOVATION Continued from Page 1

following June 2014, Kern County’s oil industry lost a third of its workforce according to data collected by the state’s employment PHOTO BY CASEY CHRISTIE development department. Solar power and oil production come together in McKittrick as GlassPoint and And with the majority Berry Petroleum combine resources to utilize the sun to create steam. of the industry predicting “lower for longer” oil prices, we anticipate oil prices ranging anywhere expand and preserve oil field operations. from $40 to $60 in the foreseeable future. In February 2011, GlassPoint unveiled Although the the world’s first commercial solar EOR future price of oil is project at Berry Petroleum’s 21Z property unsure, one thing is in western Kern County. Built in less than for certain: The only six weeks, GlassPoint worked with local way for oil companies firms TJ Cross Engineers (now Parsons) to survive is through and PCL Industrial Services to build and cost reduction. By integrate the solar system with existTunde Deru cutting operating ing surface facilities. The success of the costs, oil producers pilot here has led to much larger projects will survive and thrive amid today’s low overseas. oil price environment. Other oil and gas leaders, like Seneca As the saying goes: When the going Resources Corporation, are also harnessgets tough, the tough get going. ing the sun to offset electricity costs and The easy oil has already been recovemissions. The company recently installed ered. Mature fields are depleting and oil solar photovoltaic panels to offset 20 perextraction is becoming more expensive cent of its total electric costs at the North and energy intensive. Today, the majority Midway Sunset oil field. of California’s reserves are thick, viscous The convergence of traditional energy crude (known as heavy oil), which is difand renewable energy may sound bizarre, ficult and costly to produce. The leading but if we take a step back and look at the method of producing heavy oil is steam history of innovation in Kern County and injection, a type of thermal enhanced oil its “all of the above” energy strategy, the recovery that injects steam into a reservoir adoption of solar in the oil field makes a to heat the oil, making it easier to pump to lot of sense. Kern is already home to some the surface. of the largest solar plants in the Mojave Steam generation for thermal EOR is and America’s largest wind farm in Teone of the major costs associated with the hachapi, in addition to major oil reserves. production of California oil. The high cost In fact, the whole process of steam is because of natural gas, which is typiinjection was invented here in the 1960s. cally purchased and imported from out of And today, steam injection is the most state as fuel to burn for steam generation. widely used form of enhanced oil recovConsidering 60 percent of the cost of ery, deployed all around the world, from operating a heavy oil field is fuel purchase Canada to the Middle East to China, to for EOR, we must explore alternative increase production from aging wells and solutions to delivering steam. One of the recover more complex resources. most effective of these innovative soluNow Kern is yet again at the forefront tions relies on California’s other abundant of energy innovation in pioneering solarnatural resource: sunshine. Solar adoption powered oil production. is growing exponentially and exciting new This energy convergence — merging applications are being deployed just about renewables with traditional energy — is everywhere — including the oil field. By making use of hydrocarbons in a cleaner harnessing the power of the sun to generand more efficient way. In turn, Califorate steam needed to produce oil, California can unlock more natural resources to nia operators can reduce costs, create local establish new industries, create jobs and jobs and reduce emissions simultaneously. reinvigorate domestic energy production. GlassPoint Solar is a premier example Bakersfield is not just a “driller’s counof what next-generation, homegrown entry,” but a melting pot for innovative energy ergy technology can deliver to traditional solutions, where the tried-and-true stay and energy producers. Instead of importing innovate as technology progresses. natural gas from outside California, we’re partnering with local oil and gas compa— Tunde Deru is the director of nies to generate steam from California’s sales, Americas, for GlassPoint Solar, ample sunshine — keeping operating jobs the leading supplier of solar for the oil and tax revenues here in Kern County. By and gas industry. Based in Bakersfield, reducing the need for fuel, solar steam reTunde was previously the technical team duces the largest and most variable part of lead for major projects at LINN Energy thermal recovery production costs and will (formerly Berry Petroleum).

KERN BUSINESS JOURNAL

June / July 2017

COURTESY OF VISIT BAKERSFIELD

From top to bottom, left to right: Three guitars Local artist painting electrical box in downtown Pioneer Spirit by Gilbert Vega ArtTrek logo from brochure Wind 1 Mill Creek Tile Maya Cinemas mural — “Wizard of Oz” COURTESY OF KERN COUNTY SUPERINTENDENT OF SCHOOLS

COURTESY OF CITY OF BAKERSFIELD

Downtown public art walking tour unveiled

By David Lyman

rt is everywhere in downtown Bakersfield. Because our city’s population is larger than that of Pittsburgh, St. Louis or Honolulu, it is easy to miss all the public art on display. Visit Bakersfield recently completed the first-ever comprehensive inventory of public art and art galleries in downtown. The result is ArtTrek, a self-guided walking tour of downtown Bakersfield’s public art. Whether you are a longtime Bakersfield resident, first-time visitor or somewhere in between, ArtTrek offers something new to explore downtown. Like other efforts from Visit Bakersfield, ArtTrek was deDavid Lyman veloped in response to requests from visitors — in this case, “Where can we see public art?” With ArtTrek, there are almost 100 paintings, murals, sculptures, painted signal boxes and art galleries in downtown ready to be explored. Studies have shown that art is an economic driver. The thought behind ArtTrek is not just to bring people downtown; it is to get them to stay longer. The greater the

time people spend downtown, the greater the chance they will spend their money. With ArtTrek, you can create your own personalized walking tour. Select from more than 30 murals, 16 sculptures and 32 painted signal boxes, along with paintings, landscape designs, fine art collections, tile art, plus more than 10 galleries, all plotted out on a detailed and color-coded map of downtown.

Here are a few highlights: • Three Guitars, a mural by Al Mendez and Sebastian Muralles, 1711 19th St. This colorful three-part mural, highlighting Bakersfield’s rich music history of locally made guitars, was winner of a 2014 Beautiful Bakersfield Award. It is on the east side of Front Porch Music. • Wind, a sculpture by Carol Gold, 1300 17th St. This sculpture was the winner of a public art competition at this building by the Central District Development Agency (later the Bakersfield Redevelopment Agency). • Farm Animals mural by Don Hollis and Tyler Cristobal, 1702 18th St. Look up to see farm animals watching you eat in the Farmacy Cafe at the Padre Hotel. As a reversal of roles, the artists put the viewer in the pen with the animals on the outside

looking in. • Painted utility boxes. More than 30 utility boxes in downtown Bakersfield have been transformed into public art by local artists. • Pioneer Spirit by James T. Russell, 1001 Truxtun Ave. This sculpture was a national commission by the Centennial Celebration Foundation for the opening of Centennial Plaza in 1998. It consists of two forms — one 9 feet and another 12 feet. • Tile art by Jill Thayer, east side of Mexicali Restaurant, 631 18th St. Recreated from a folklore reference, this work was designed for Mexicali to coincide with the opening of Mill Creek Linear Park. It can be viewed along the Mill Creek path between 17th and 18th streets. • Murals at Maya Cinemas, 1000 California Ave. There are 14 murals by various artists on the exterior walls of Maya Cinemas, winners in a juried art competition organized by Maya Cinemas and the Arts Council of Kern featuring

works inspired by movies and the moviegoing experience. Pick up your free copy of the ArtTrek brochure at Visit Bakersfield (515 Truxtun Ave.), the Arts Council of Kern (1330 Truxtun Ave., Suite B) and many Bakersfield hotels, RV parks, downtown art galleries and the Amtrak station. It also can be downloaded at www.VisitBakersfield. com/ArtTrek. The ArtTrek brochure was funded by a grant from The Bakersfield Californian Foundation and is a collaborative effort with the Arts Council of Kern. ArtTrek is just another way to show that in Bakersfield, there really is more to explore! — David Lyman, Ph.D., is manager of Visit Bakersfield. He and other members of Team More to Explore help visitors from throughout the world spend their money in California’s ninth largest city. They are available toll-free at 866-425-7353 or at Info@VisitBakersfield.com.

June / July 2017

KERN BUSINESS JOURNAL

GET holds budget public hearing

June 20 at 5:30PM, the GET Board of Directors will hold a public hearing for the 2017-18 fiscal year budget. GET’s fiscal year starts July 1 and ends June 30. Providing public transit service to the community is budgeted to cost $30 million dollars. Proposed Revenue for 17-18 includes: $4.7 million from customer fares for fixed route and GET-A-Lift $19.6 million from State TDA subsidies $5.2 million in federal funds for vehicle maintenance $496,000 from other sources including compressed natural gas sales and advertising revenues Proposed Operational Expenses includes: $22.4 million for salaries, wages and benefits for employees - as with many companies this is the largest expense for GET $4.13 million for fuel, parts and other maintenance $3.5 million for other expenses such as outside services, insurance and utilities

GET Board of Directors approve fare adjustments The GET Board of Directors approved two fare adjustments at the board meeting on May 16. The first fare restructuring will become effective on October 1, 2017.

Single ride Day Pass 31 Day Pass Reduced Fare Sticker Reduced Single Ride Express Single Ride Reduced Fare Day Pass Express Day Pass 15 Day Pass 15 Day Reduced Fare Pass Express 31 Day Pass

Effective October 1, 2017 $1.55 $3.30 $42.00 $21.00 $.80 $3.50 $1.70 $7.00 $27.00 $13.00 $57.00

Effective October 1, 2019 $1.65 $3.55 $45.00 $22.00 $.85 $4.00 $1.80 $8.00 $30.00 $13.75 $60.00

“Costs, including wages, continue to rise,” said GET CEO Karen King. “Operations expenses for GET are primarily funded through state tax dollars and fares from customers. 80% of funding comes from state taxes, but 20% of operations expenses must be paid from fares. The state requires that transit agencies meet the 20 percent fare box ratio.”

Operations expenses are primarily funded through state tax dollars and fares from customers. GET is projecting 20 percent of its operations expenses will be paid from fares. It is a state requirement that transit agencies meet a 20 percent “fare box ratio.” GET costs for capital projects such as new buses and shelters are 80% funded by federal grants. GET must fund 20% of these grants. Current year capital projects include retrofitting the Maintenance building and purchasing 4 modular buildings, 5 paratransit vehicles, 24 CNG 40 ft. replacement buses and 10 bus shelters. For fiscal year 2017-18 additional capital budget projects include purchase for 5 support vehicles, administration building maintenance and conducting a bus rapid transit study. The total capital budget for current and new projects is $17.9 million. $12 million will come from federal grants and $5.4 million from GET’s reserves.

GET Board approves service change at April meeting The GET Board approved a proposal to add service to the Route 47 on weekends and reduce service on the Route 84. Currently the Route 47 does not have service on weekends. It was eliminated due to extremely low ridership. However, there have been requests for GET to resume service. This route operates in the southwest from Truxtun Avenue to the Walmart on Panama Lane. Service is proposed to operate on weekends every 90 minutes from 7 AM to 7 PM for a trial period of one year at which time it would be evaluated for continuation. The Route 84 which operates between Downtown and Frontier High School will go from 60 minute service to 90 minute service on weekends operating from 7:15 AM to 7:10 PM. “Due to funding limitations, GET has to carefully consider any service changes,” said CEO Karen King. “This change will remove one bus from the Route 84 and move it to the Route 47 so there is no overall increase in cost.”

KERN BUSINESS JOURNAL

June / July 2017

Finding energyand technologyrelated subjects with Ebsco’s Newspaper Source Plus By Katherine Ross With advances in energy and technology happening so quickly, newspapers are a great way to stay current, and the Kern County Library offers simultaneous access to newspapers from all 50 states and the United Kingdom through a database available to library cardholders from any computer. Ebsco’s Newspaper Source Plus contains over 1,200 full-text newspapers, 40 news magazines, 130 newswires, and over a million TV and radio transcripts. Full-text coverage includes such well-known titles as USA Today (2002-current year), The Washington Post (2003-current year) and the Times of London (2000-current year). Many titles provide their most recent 10 years. Some titles, such as the Toronto Star, have holdings as far back as 1985. At least one newswire goes back to 1969. To access this source, navigate to the library’s home page, www.kerncountylibrary. org; click “research”; and select Newspaper Source Plus from the list on the right. To search, simply click “advanced search,” check the box for full text, and type one or more keywords. A search for “green energy” yields over 23,000 results, but it can be refined in several ways. To the left of the articles list, you can limit the results to 2015-2017 by dragging the publication date slider, which reduces the number of results to 3,138. Selecting California under “subject” reduces it to a manageable 27 results. Of course, this is only one example of the numerous possible search strategies. Results refinement can also suggest alternate lines of research. For example, in a search for hybrid cars from the last two years, the subject refinement not only suggests various states, it also includes the subheadings “battery charging stations” and “automotive engineering.” Large results lists can also be limited to category of results, such as U.S. newspapers or international newspapers, newswires, or radio and TV news transcripts. From the results list, you can click “publication” to see the various sources; the number of articles in each is in parenthesis. Like all Ebsco databases, results can be printed, saved to a flash drive or emailed. With a click on “publications” at the top of the screen, you can find out whether your favorite newspaper is represented or even use the “match any words” option to search by city, state or another keyword. Try your favorite energy or technology subject on this database — it’s free and it’s available from anywhere, 24/7, with your Kern County Library card. — Katherine Ross is a reference librarian at the Beale Memorial Library, main branch of the Kern County Library system.

Invest in training your leaders By Robin Paggi

hen District Attorney Lisa Green announced she would not run for re-election in 2018, she also suggested who ought to replace her. According to The Bakersfield Californian, Green said the potential candidate was the right person for the job because of his skills as a prosecutor and because of his managerial skills. “I think it’s really important for that person to have a strong management background. Neither (former DA) Ed Jagels Robin Paggi or myself had that. I’m a quick learner but it did take time to get up to speed,” Green was quoted as saying. I don’t know any of the potential DA candidates, but I do know that people tend to be promoted into leadership positions because they’re good at their jobs. Then they (and others) frequently discover that being a good leader requires a different skill set — one they often don’t have. Because I provide leadership training, people often tell me that being a good leader just requires common sense. I often tell them: 1.) common sense is not so common (a tip of the hat to Voltaire), and 2.) what is common sense to them is not necessarily common sense to others. Essentially, people need to be taught to be good leaders. Unfortunately, few employers invest in training to provide the people they put in charge of their business with the knowledge and skills necessary to be effective.

What is that knowledge and skills? Leadership training often consists of the following: Legal Knowledge. People in any kind of leadership position (leads,

supervisors, managers, executives) make decisions about their employees that often have legal consequences. Without training, they might not know that and make decisions that land their employer in court. For example, leaders might deny employees time off work to attend their child’s school play not knowing that employees generally have that right if they work for an employer with 25 or more employees. Failure to provide statutory time off work for a variety of reasons often gets employers sued. In addition to leave rights, legal training for leaders should include information about wage and hour issues (things for which employees must be paid); reasonable accommodations (for religion, disabilities and medical conditions); employee privacy; lawful hiring, disciplining and terminating; safety; and, of course, the big three: harassment, discrimination and retaliation. At the very least, all employers should provide training on harassment prevention because they are automatically liable for a supervisor’s harassment that results in a negative employment action such as termination, failure to promote or hire, or loss of wages. Interpersonal Skills. “Our supervisors can probably have more influence on our productivity, worker absenteeism, product quality, morale of our workforce, labor relations and cost reduction than any other group in the company,” the vice president of personnel at a manufacturing company was quoted as saying in an article in Harvard Business Review. Indeed, the way leaders communicate and interact with employees makes a huge difference in the results (or lack thereof) they get from them. Leaders must possess a variety of interpersonal skills in order to inspire employees to perform. Because many of these skills do not come naturally to people, they need to be taught.

Managerial Skills. People in leadership positions often need to know how to plan, organize, direct, coordinate and control the work being done. This requires a broad view of the organization and goes way beyond leaders just being able to do their jobs well. For example, an accountant might be promoted into a supervisory position because of being an excellent accountant; however, the promotion requires that he or she now plan, direct and control the work of others — skills they might not have developed in school or on the job. Green said the candidate she is suggesting should replace her as DA spent the last six years developing skills like these. A great time to train leaders is before they become leaders. However, after the fact is OK, too. And, just because someone has been in a leadership position for years doesn’t mean that training isn’t needed. In fact, most supervisors who are sent to me by their employers for individual coaching have been supervisors for many years. But, because things change, they need help learning how to supervise in today’s business climate. Being good at one’s job is an important criterion for being promoted into a leadership position. However, being a good leader usually requires obtaining more knowledge and learning new skills. As John F. Kennedy said, “Leadership and learning are indispensable to each other.” Employers can’t afford to not invest in training their leaders.

— Robin Paggi is the training and development specialist at WorkLogic HR where she creates and delivers workshops on topics such as harassment prevention, communication and supervisory skills. She can be reached at rpaggi@worklogichr.com or 661695-5168.

June / July 2017

KERN BUSINESS JOURNAL

Solar tracker technology: Benefits to Kern County and beyond

By Jeff Krantz

t’s no secret that Kern County’s history of energy production is growing beyond oil and gas to include solar energy production. According to Global Market insights, the fast-paced global solar market will exceed $140 billion by 2023. Most of the growth in the sector is being driven by utility-scale solar projects, and sunny Kern County is wellpositioned to get an Jeff Krantz outsized piece of that pie. Though the solar market has been growing in Kern for years, an innovative production-boosting technology is bringing even greater value to the solar projects of Kern and beyond. That technology is the solar tracker. In the world of solar energy, trackers are an increasingly popular investment, as they increase energy production 20 to 25 percent and expand the energy delivery curve to better match local electricity demand. Unlike solar panels that remain fixed in one position, solar trackers allow solar panels to follow the sun’s path across the sky, thereby catching the maximum amount of sunlight each day. This increases energy production and smooths out the delivery curve, and the bigger the solar project is, the bigger these benefits are to those receiving the energy. It’s no wonder that large-scale solar utility sites in Kern and across the world now consistently incorporate trackers into their new solar projects. Kern will maximize the economic benefits of the growth of the solar industry by using trackers that can stand up to Kern’s sometimes harsh environment. In fact, early this year, a 200 megawatt solar project at Garland Solar Facility in Kern County began commercial operation and did just that. The developers of the 2,000-acre project carefully selected flexibly linked centralized trackers that provide the maximum power production and that are a match for the weather and other special conditions of Kern. Array Technologies was chosen to provide those trackers. The Garland Facility is an excellent model of how the right tracker can make a big difference for utility-scale solar plants not only in Kern, but across the globe.

The Garland Solar Facility was built to operate in demanding conditions, starting at the foundation of the project — its trackers. Array’s flexibly linked tracker, the DuraTrack HZ v3, is capable of withstanding temperatures of minus 30 degrees Fahrenheit to 140 degrees Fahrenheit (minus 34 degrees Celsius to 60 degrees Celsius). The tracker’s durable stow-free design combined with its patented torsion limiter makes it especially useful for places like Kern that have high winds that can carry sandy soils. The torsion limiter mitigates the excess loads of high wind speeds — and alleviates pressure from the buildup of sand dunes. In fact, Array’s tracker is the only tracker that completely eliminates catastrophic risk to the solar plant due to wind forces, one of the most complex risk elements faced by solar trackers. Maintenance costs pose one of the biggest challenges for solar plants in Kern or anywhere else, especially because the typical solar plant is expected to last 30 years or more. Minor problems can be exacerbated over the course of three decades. The Garland Facility developers knew that to avoid extra costs, they needed to maximize tracker reliability, which means minimizing the chances for operational failure. Array’s flexibly linked centralized tracker architecture has minimal moving parts and zero scheduled maintenance for the 30-year lifespan — drastically reducing repair costs and offering the lowest cost of ownership. Alternative trackers with decentralized designs use many more moving parts, which adds potential failure points. Frequent failures can result in intermittent energy output or additional maintenance and labor costs for upkeep. Trackers that are designed to handle the challenges of the region help solar plant owners better optimize their energy usage and control associated costs. That’s why our trackers are also used for other installations in the county, including in Bakersfield, Delano and Chowchilla. Tracker choice is significant for any solar site. These solar assets can have a direct impact on uptime, production, cost of ownership and economic viability of a solar power plant. With the help of tracker technology, solar facilities can maximize efficiency and serve as an example for other solar plants in Kern and beyond. — Jeff Krantz is the senior vice president of Array Technologies.

WALNUTS $39,000+-/AC 36.72+-acres, R-1 zoning, Grade 1-Excellent soils, SWID water, planted 2012, in city of Shafter FARMLAND, POSS. HOME SITE $20,000+-/AC 38.18+-acres, grade 1 soils, quality well water, Shafter area ALMONDS $27,500+-/AC 79.09+-acres, SSJMUD & Well water, Grade 1 soils, McFarland Area TABLE GRAPES $27,000+-/AC 118.79+-acres, DEID & Pixley ID, near Earlimart ALMONDS, ESTATE HOME & SHOP SALE PENDING 156.22+-acres, Semi-Tropic WSD boundary, good soils, 6,500+-sqft estate home, shop, & fenced Eq yard, Shafter area.

PISTACHIOS $22,000+-/AC 223.31+-acres, Semi-Tropic WSD boundary & well water, and grade 3 soils, Wasco, Ca. ALMONDS $23,500+-/AC 720.90+-acres, planted Jan-2016, Madera Area TABLE GRAPES, ALMONDS, RAISINS & COLD STORAGE Price Reduced $23,235+-/AC 817.34+-acres, Strong Grade 1 soils, Early & Warm ground, 5 wells, located in ARWSD, Arvin, CA PISTACHIOS $32,467+-/AC 1,509.21+-acres, planted 2009, grade 1 & 2 soils, NW of Delano area CATTLE RANCH Price Reduced $1,403+-/AC 4,631.78+-acres - contiguous acres, spring, well, 17 APN’s, along Breckenridge Rd, Bakersfield

KERN BUSINESS JOURNAL

June / July 2017

KS Industries support blood bank By Greg Gallion

akersfield-based KS Industries is an industrial construction and engineering leader. Since its founding in 1960, its growing list of clients has included many of Kern County’s oil producers. Its commitment to customers and employees extends to its involvement in the community, where the founder, Ken Small, and other family members, including CEO Kevin Small, support many causes, such as Bakersfield College; Cal State University, Bakersfield; Kern County 4-H; Alzheimer’s Association; and Wounded Heroes Fund. Of special note is KS Industries’ effort to help meet local medical needs. These include support of the Small Miracles Foundation, Bakersfield Memorial Hospital, Relay for Life and J.J.’s Legacy. Beyond the desire to be a good corporate citizen, KS Industries’ commitment to expanding medical services is an outgrowth of the owners’ personal experiences. The Lauren Small Children’s Medical Center at Bakersfield Memorial Hospital is named in honor Kevin and Tuesdy Small’s 11-year-old daughter, Lauren Paige Small, who died in 2005 after a courageous battle with osteosarcoma, an aggressive form of bone cancer. The Small family donated $2 million to help create Kern County’s first comprehensive pediatric program, which includes a 31-bed level 2 neonatal intensive care unit, an eight-bed pediatric intensive care unit and a 20-bed pediatric unit with 24/7 in-house pediatricians. Because the Lauren Small Children’s Medical Center offers comprehensive pediatric care in Bakersfield, fewer families today have to travel long distances to obtain care. In 2013, after the death of his granddaughter, Ken Small was awaiting a miracle of his own at Cedars-Sinai Medical Center in Los Angeles. Losing his three-decade long battle with heart disease, Small was told he was running out of options. He needed a heart transplant or a mechanical heart to live.

PHOTO COURTESY OF HOUCHIN COMMUNITY BLOOD BANK

KS Industries recently rolled up their sleeves for a blood drive at their Bakersfield-based construction, engineering and fabricating company at 6000 District Blvd.

As hope faded, Ken Small was told Katie Tonks, a young Idaho woman, had suffered a fatal seizure. She was a perfect match to give him a healthy heart. Since his successful surgery, Ken Small and another California man, who received the woman’s liver, have traveled to Idaho to meet with the donor’s family. Tonks’ parents told an Idaho newspaper that the Smalls have become part of their family. Ken Small says he feels the same way. The entire KS Industries family also understands the importance of a community having a reliable supply of lifesaving blood and blood products to help patients, such as Lauren, fight cancer and to support advanced medical procedures, such as Ken Small’s heart transplant. Since 2011, KS Industries has conducted 22 company blood drives on behalf of Houchin Community Blood Bank. Each realized an average of 24 units of donated blood for a total of 559 units. “The gift of life, by giving blood, is one of the most rewarding donations one can give,” said Kevin Small. “The mobile blood drive also makes it convenient to contribute

and brings employees together as a team.” The need is great for people to step forward to donate whole blood so that their loved ones and neighbors can survive traumatic injuries, sophisticated surgeries and lifethreatening diseases. A car wreck or a sudden illness can place anyone on the receiving end of Houchin’s critical blood supply. Consider some of these average demands for blood: cancer (8 units a week), leukemia (2 units a day), heart bypass surgery (5 units), bleeding ulcer (30 units), hip replacement (5 units), brain surgery (10 units), sickle cell anemia (4 units per treatment), auto accident victim (50 units) and organ transplant (40 units). There have been instances where patients receiving a liver transplant required 100 units of blood. But the need also extends to the donation of blood products. Blood is composed of a mixture of cells that are suspended in a fluid that is called plasma. Red cells transport oxygen around the body, replenishing organs and tissue. White cells fight off such things as bacteria and help prevent infection. Plasma, which contains proteins, salts and clotting factors, is the liquid component of blood. Platelets, which are very small fragments of cells, work with plasma to help prevent bleeding. When a patient undergoes chemotherapy or radiation therapy to treat an aggressive cancer, for example, the treatment can destroy their bone marrow, where blood cells are formed. Until the bone marrow can recover, the patient will likely need platelet transfusions to survive. Businesses are encouraged to call Houchin Community Blood Bank at 661-323-4222 or 877-364-5844 to schedule a company blood drive. Individuals can also call to schedule a time to donate blood. — Greg Gallion is the president of Bakersfield-based Houchin Community Blood Bank. For more information about donating blood, platelets and plasma, go online to www.hcbb.com.

Valley Air District works to advance new, innovative technologies to reduce air pollution

By Cassandra Melching

espite major reductions in emissions and the accompanying improvements in air quality, the valley continues to face difficult challenges in meeting federal air quality standards. Attaining the new standards for ozone and particulates will be virtually impossible for the valley without significant advancements in low-emission technologies for mobile and stationary sources. The Valley Air District understands that many of these emission-reduction technologies are still in their infancy and financial investment in advanced energy technologies and innovation is critical to the valley’s future improvements in air quality. That is why the district’s Technology Advancement Program provides funding for businesses and individuals to

develop and implement new emissionreduction technologies throughout the valley. TAP consists of an ongoing review of new technology concepts, interagency partnerships, funding for technology advancement programs and collaborations to build and expand local capacity for research and development in the valley. The district is also supporting new technologies by helping to electrify the valley. To support the growing number of clean plug-in electric vehicles and plug-in hybrid electric vehicles in the valley, the district launched its Charge Up! Program, which helps fund the purchase and installation of publicly accessible electric vehicle chargers. The program offers valley businesses and public agencies up to $6,000 for a level 2 charger and up to $25,000 for a level 3/DC fast charger. The goal of this program is to further strengthen the val-

ley’s electric vehicle charging infrastructure to ensure the technology’s sustainability in the region and ease the “range anxiety” that concerns many existing and potential electric vehicle owners. The district has also partnered with the Center for Sustainable Energy and launched Valley Takes Charge! This program promotes plug-in electric vehicles in the valley and empowers local governments and their constituents to increase the number of clean cars on valley roads while decreasing transportation emissions. This program calls for innovative strategies to make plug-in electric vehicles and vehicle charging affordable and accessible for the majority of valley residents, many of whom live in environmental justice and disadvantaged communities. For more information about this program, please visit www.energycenter.org/valleytakescharge.

By coordinating technology advancement efforts with other federal, state and local agencies, the district is able to support projects that further air-quality technology research and development capacity among the valley’s colleges and universities. This, in turn, improves the ability of local institutions to deploy future clean technology projects specifically suited to the valley’s needs. It is really exciting to be able to identify these new technologies that support the district’s goal of reducing air pollution. For more information on these grants and other programs, please visit www.valleyair.org/grants. — Cassandra Melching is an outreach and communications representative with the San Joaquin Valley Air Pollution Control District.

June / July 2017

KERN BUSINESS JOURNAL

Reasons to help boomers nearing retirement: Compassion, bottom line

By Steven Van Metre

bout a year ago, I read “Too Poor to Retire and Too Young to Die,” a heart-wrenching newspaper article about 79-year-old Dolores Westfall, a Northern California retiree who fell through the cracks of the 2008 Great Recession, lost her house and set out across the country looking for work in Big Foot, her aging RV. A spunky, independent woman, Westfall had burned through her modest savings. She was left only with her monthly $1,200 Social Security Steven Van Metre and $190 pension checks, a pile of debts and a leaking RV. After a career of holding jobs ranging from bank secretary to museum curator to interior designer, the twice-divorced, childless retiree found herself in dire financial straits. Westfall admitted that she considered killing herself. Instead, she decided if she was going to “go down for the financial count,” she was going to fulfill her lifelong dream of touring America — picking up odd jobs along the way. When a reporter and photographer caught up with the wisecracking Westfall, she had been on the road for seven years and had visited 33 states. Westfall’s story, which was accompanied by similar accounts from other graying nomads she encountered on the road, unexpectedly touched readers. One Houston man even established a GoFundMe account on Westfall’s behalf. Others wrote offering a place for the elderly woman to park her RV, do her wash and eat a meal other than her usual dinner of cooked rice and milk. For me, it put a face and name to a retirement crisis that continues to grow. It is a crisis that, as a financial planner, I have warned about but never seen in the proportions as Westfall’s story presented. According to a recent Prudential Financial study, 22 percent of boomers have no retirement savings and 40 percent have balances of less than $100,000.

After a decadeslong shift away from defined-benefit retirement plans to do-ityourself alternatives, the hearty among us are delaying their retirements — some planning to work until they drop. Recent Census Bureau research revealed that only 14 percent of companies offer employees 401(k) tax-deferred retirement savings plans, which for the most part are replacing defined-benefit pensions. And more than 66 percent of workers with access to 401(k) and other defined-contribution plans are not using them. There are many reasons why employees are not participating: wages have stagnated and little money is left to save, plans are voluntary and often unexplained, and companies often withhold participation until a worker has been employed for a number of years. The Great Recession also created a growing “gig economy,” where people are working part time for more than one company, without benefits. Employers may be tempted to offer only sympathy to their aging workers who, like Westfall, are too poor to retire and too young to die. But if compassion is not enough to compel companies to help, perhaps the bottom line is. In 2014, the average American retired at age 62, up from 60 in 2012. That is likely to increase as 59 percent of boomers reportedly now plan to retire at age 65 or older and 26 percent plan to retire at age 70 or older. There is a cost associated with these delayed retirements. Prudential Financial’s report, “Why Employers Should Care About the Cost of Delayed Retirements,” estimates for each individual who cannot retire, the cost averages an extra $50,000 a year. This represents the difference between the salary of an older worker and hiring a younger person. Delayed retirement also impacts productivity and workforce advancement.

Companies can help address this looming retirement crisis: • If you do not offer employees a taxdeferred retirement savings plan, create

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Dolores Westfall

one. Many inexpensive options exist. Consult a financial planner to determine what best fits your company. • Incorporate “guaranteed lifetime income products,” or annuities, into your plan. • Adopt automatic enrollment, escalation and company matching formulas to encourage savings. • Create a financial wellness program to advise employees. As with most newspaper stories we read, Westfall slipped from my mind as

time passed. But just a few weeks ago, an announcement of her death appeared. Just before Thanksgiving, while she prepared to drive from New York to Florida, Westfall suffered a heart attack. Her sister, Mary Ann, who she had not seen since she left on her odyssey, flew from Berkeley to be with her. A few days later, Westfall had a stroke. When she was flown back to California, she was diagnosed with stage 4 metastatic pancreatic cancer. As she wished, Westfall was cremated and her ashes spread over her favorite spot in the California desert. The newspaper reporter, who had kept in contact with Westfall long after her story published, stood among a small group of family members tossing her ashes high into the air, watching as they caught into the wind and disappeared. — 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.

KERN BUSINESS JOURNAL

June / July 2017

Harnessing solar energy to fight local hunger

By Louis Medina

lectricity is energy. Fuel is energy. Food is energy. Manpower is energy. All those forms of energy are essential to the running of Community Action Partnership of Kern’s Food Bank, whose food distribution poundage increased by more than 50 percent, from 9 million in 2013 to 13.6 million in 2016, to keep up with local hunger needs amplified by job losses in the agriculture and oil industries due to the drought and plunging oil prices during the same time frame. Electricity is needed to keep the Food Bank office and warehouse operational — including 40,500 cubic feet of walk-in fridge Louis Medina and freezer space to ensure proper storage of fruits, vegetables, meat, and other fresh and frozen foods. The Food Bank’s fleet of trucks needs fuel to get nutritious food to well over 100 partnering distribution locations throughout Kern County’s 8,200 square miles. The more than 1 million pounds of food the Food Bank distributes monthly helps keep thousands of folks — seniors, families with children, homeless individu-

als, at-risk veterans — throughout the community from going hungry. Our staff members and volunteers provide the manpower to collect, sort and transport the food that is either purchased or donated for the benefit of the food insecure among us. Well, the CAPK Food Bank will soon be using another type of energy — Kern County’s abundant solar power — to significantly reduce its electricity costs. Thanks to generous funding that includes grants from the city of Bakersfield and Kern County Community Development Block Grant program, The Bakersfield Californian Foundation and Southern California Gas Company, the Food Bank warehouse will soon boast 504 roof-mounted photovoltaic panels that will generate 254,787 kilowatt-hours of energy annually — enough to reduce its electricity costs by close to $50,000 a year. This will result in savings and operational efficiencies that can be reinvested into the acquisition and distribution of food for the hungry. “The grants that are allowing us to do this work are like a gift that keeps on giving,” said CAPK Executive Director Jeremy Tobias. “From now until the lifespan of these panels ends, we’re going to be receiving that money back every year. Instead of writing a check for utilities, we

Rendering of solar panels on CAPK Food Bank.

can spend that amount on food. It’s like an investment, almost. It’s a gift for the entire community.” And grant dollars are staying in Kern County, as the work has been contracted to local firm A-C Solar, a subsidiary of A-C Electric Company. A-C Solar Energy Manager Jeff Petrini, who has assisted a number of nonprofits, including churches, with their commercial solar installation, knows how important grant dollars are for these organizations. “Solar is an expensive proposition and having a zero-out-of-pocket financing option or a grant is really the only way it can happen for nonprofits,” he said, because they cannot enjoy the tax breaks for-profit companies do on their solar installs.

“The cost of energy is going up and up on a yearly basis,” Petrini said. “Being able to help nonprofits to better utilize the funds they have, for the purpose that they’re designed for, is important to us.” The actual date for the “switch throwing party” for the CAPK Food Bank’s solar project has not been set yet, but is anticipated for some time in mid-to-late summer. CAPK is looking forward to making it a community event to inspire other nonprofits to follow suit and think outside the box to generate savings that can be invested in the real work at hand: serving people. — Louis Medina is the outreach and advocacy manager for Community Action Partnership of Kern.

Cybercrime prevention and risk management By John Pryor

hether you are in Kern County’s energy or IT segments — or any other segment of our economy — none of us can ignore the risk of cybercrime. Uniquely, it is both a property and liability risk. In the last issue of the Kern Business Journal, Alphonso Rivera, CEO of Advance Micro Resource, offered steps business owners can take to mitigate this highly technical risk. His guidelines reflected the complexity of this risk. His final recommendation was: “Develop a risk management plan including regular forensic audits of your company’s online systems.” However, no explanation was included of what a risk management plan needs to be. I’m pleased to “fill this gap” in his otherwise well-written article. Traditional risk management is “operational.” Risks addressed are static — those that produce only a loss, e.g., fire, earthquake, liability, etc. Enterprise risk management is “strategic.” In addition to static risks, those addressed are dynamic — risks John Pryor that can produce either a profit or a loss, e.g., marketing, product design, investment strategies, etc. The three overall processes within either risk management system need to be integrated into your overall culture

so you can take your organization from the level of “insurance management” — where most companies are today — to the next level of risk management. They are: 1. Risk assessment — identification and measurement 2. Risk control — mitigation and reduction 3. Risk finance — including insurance Insurance is the very last step — intentionally. It doesn’t come into play until all other alternatives have been considered. Once risks are assessed, planning shifts to risk control, including not only cybercrime prevention but also fire prevention, security, safety, etc. — including Rivera’s forensic audit of online systems. In addition, risk control includes disaster preparedness plus the most overlooked risk reduction task of all — business continuity planning. Hurricane Katrina and other disasters each generated memorable stories of lives saved through effective disaster preparedness, yet other stories described businesses totally lost because no business continuity plan was in place. Once risks are reduced, and some even eliminated, the final process can begin, viz., risk finance. First is contractual risk transfer to others other than insurance. There are generally three levels of contractual risk transfer. The first two are reasonable. The third is disastrous! It is prohibited by law in energy contracts of most oil-producing states but not California. It is unenforceable in construction contracts in California. A local drilling contractor imposed a contract with this third level on a trucking firm whose employee was injured

by the sole negligence of a drilling company employee. Because of this clause, all financial burdens were assumed by the trucking company with no opportunity for reimbursement from the drilling company. This increased the trucker’s workers’ compensation costs for the ensuing three years. Moreover, for the injured employee to receive damages beyond workers’ compensation benefits, he had to file a liability claim against his own employer! This totally violates the historical intention that workers’ compensation is the exclusive remedy from employers. Next, residual risks are either assumed or insured. Some can be assumed through deductibles, self-insured retentions, total assumption, etc. Others must be considered for insurance through alternative risk transfers, e.g., formal self-insurance, captive insurers, high deductible plans, retrospective rating plans, etc. Only then is conventional insurance considered. There you have it — the overall risk management system that should be inculcated into your organization’s culture in perpetuity! This completes Rivera’s steps to a cybercrime solution — and more — plus the long-term benefit of risk management to all: a quiet night’s sleep! — John Pryor is a risk management consultant and author of “Quality Risk Management Fieldbook” published by the International Risk Management Institute in Dallas.

June / July 2017

KERN BUSINESS JOURNAL

Public relations: A tale of two airlines By Maureen Buscher-Dang

pril was a month filled with a variety of eyebrow-raising public relation disasters. Chief among them were two onboard incidents involving United and American Airlines. Both companies received negative press for incidents involving the handling of passengers. TogethMaureen Buscher-Dang er, they illustrate a sharp contrast in how to handle a PR crisis.

Tone Deaf United Airlines did a face-plant into a public relations pit on April 9 after passenger Dr. David Dao was bloodied, suffered a broken nose and was forcibly dragged off of an “overbooked” flight. Cell phone videos of the entire incident went viral on social media. Trial by Twitter ensued. Response by United CEO Oscar Munoz only made things worse. Initially, he called the incident “an upsetting event to all of us here at United” and apologized for “having to reaccommodate these customers.” He went on to explain the situation was compounded by a passenger who was asked to leave and refused, making it necessary to contact Chicago aviation security. A day later, the company backtracked from its initial statements about the flight being overbooked. Apparently, crew members who were to operate another flight the following morning needed the seats on the plane. In the end, United apologized to Dao and issued three statements in four days in an attempt to control fallout. A top trending topic on Twitter that week was #NewUnitedAirlinesMottos. Users suggested slogans such as “not enough seating, prepare for a beating.” A competitor tweeted its newly minted slogan: “Southwest. We beat the competition. Not you.”

Swift Action The American Airlines incident occurred April 21 when a flight attendant grabbed a stroller from a woman

while she was boarding a plane carrying 15-month-old twins. A partial video of the episode begins after the stroller has been removed and the mother is standing near the cockpit crying. When she asks for her stroller back, a verbal confrontation that almost comes to blows erupts between the attendant and a nearby male passenger. The mother ducks behind a partition to shield her child. The video was taken by another passenger and posted on Facebook. It garnered more than 7.1 million views that weekend. The response from American Airlines was markedly different from United. A company statement was released within hours that same day and the flight attendant was removed from duty. “What we see on this video does not reflect our values or how we care for our customers,” said the statement. “The actions of our team member captured here do not appear to reflect patience or empathy, two values necessary for customer care. In short, we are disappointed by these actions.” American upgraded the woman and her family to first class seats for the remainder of their international trip. The contrast of the two airline companies provides some key elements to keep in mind when handling a public relations crisis: • Know the facts. Take the time to find out all of the details. Accuracy matters when it comes to your company’s credibility. • Tell the truth. Take responsibility. Publicly disclose all of the facts — the good, the bad and the ugly. • Express genuine concern. Apologize. Show sincere empathy. Demonstrate a serious concern for those who are affected. • Have a plan. Explain what your company plans to do to fix the situation. Take steps to ensure it won’t happen again. Implement the plan. — Maureen Buscher-Dang is a Bakersfield public relations and marketing consultant. She can be contacted through her website www. buschermarketing.com.

Employers paying heavy price for opioid epidemic By Holly Culhane

ome business owners and managers may prefer to keep their heads in the sand rather than confront the nationwide opioid addiction epidemic that is impacting their workplaces. That’s understandable. Laws and procedures regarding the use of illegal drugs are much more straightforward when Holly Culhane it comes to enforcing “drug-free workplaces.” Dealing with the use and abuse of legal prescription drugs can be more challenging. But the National Safety Council, a nonprofit organization that promotes health and safety, recently released a report and industry-specific calculator that is intended to be a big slap on the head to employers who chose to believe “ignorance is bliss.” The report, “The Proactive Role Employers Can Take: Opioids in the Workplace,” can be downloaded from the organization’s website, www.nsc.org. The NSC collaborated with the National Opinion Research Center at the University of Chicago and the addiction resource organization Shatterproof to develop an online calculator to inform employers how much the opioid epidemic is costing companies every year. Posted at www.nsc.org/drugsatwork, the NSC calculator uses government and private sector research to estimate annual costs in three categories: time lost from work, job turnover and retraining, and health care costs. Pull-down menus allow you to select your state, industry and workforce size. To test out the calculator, we selected six industry categories common to Kern County and assigned a workforce size of 200 employees to each. The total annual cost results were eye-popping: agriculture, $31,374; mining (which would include oil production), $96,690; manufacturing (durable), $68,972; construction, $84,377; retail, $73,302; and professional, management, administration, $101,541. Because Bakersfield is the largest city in the southern San Joaquin Valley and the seat of government for Kern County, I used different workforce numbers for those two “public administration” entities. I estimated the city’s workforce at 1,000 and the county’s at 5,000. As a result, the NSC calculator estimated taxpayers (who really are the employers) may be receiving a $222,666 and $1,110,204 annual hit, respectively, as the result of the opioid epidemic.

The NSC estimates that prescription painkiller addiction and abuse is annually costing employers nationwide nearly $42 billion, including the cost of “lost production.” Workers who abuse prescription drugs are more likely to be late to work, or absent altogether. They are more likely to be involved in injury, or fatal accidents, resulting in increased workers’ compensation costs. They can exhibit a wide range of performance problems. The U.S. Centers for Disease Control and Prevention reports deaths from opioids, which include prescription painkillers, have quadrupled nationwide since 1999. Between 2014 and 2015, heroin deaths in the U.S. increased 21 percent. Deaths from synthetic opioids, including fentanyl, increased 72 percent.

Steps employers can take include: • Update “drug-free workplace” and “substance abuse testing” policies to address the use and abuse of prescription drugs. Consult with legal advisers to insure policies conform to local, state and federal laws. • Insist employees adhere to the directions and requirements associated with their prescription drugs. They must not show up to work impaired. • Provide an effective employee assistance program to encourage workers to seek help for dependency and addiction. • Train supervisors to recognize addiction and substance abuse problems and how to appropriately and legally address them. • Educate workers about the dangers of substance abuse, including prescription drug abuse, and the availability of recovery and mental health services. • Work with health care benefits plan managers to identify substance abuse trends and to develop effective responses and employee services. “Companies and organizations of all sizes have an important role promoting the health and safety of employees and managing risks in the workplace,” NSC researchers note. “Employers who have strong workplace policies, education, health benefits programs and well-trained managers create safe and healthy environments in which both employees and business thrive.” — Holly Culhane is consultant emeritus with the Bakersfield-based human resources consulting firm P.A.S. Associates and P.A.S. Investigations and founder/CEO of Presence Point Inc. She can be contacted through the website www.PASassociates.com and through the PAS Facebook page.

KERN BUSINESS JOURNAL

June / July 2017

Leveraging technology to keep schools safe By Kelly Fargo

urran Middle. Fairview Elementary. Horace Mann Elementary. North Beardsley Elementary. Foothill High School. Garces Memorial High School. Roosevelt Elementary. These are just a handful of the local school lockdowns we’ve heard about in 2017. The recent and seemingly commonplace barrage of school violence and threats occurring locally and nationwide put into sharp focus the need for increased safety and security measures in our schools. As we leverage internet of things technologies to protect students and staff, it is becoming more and more important for these safety and facilities departments, which have conventionally operated as standalone operations, to work hand-inhand with IT. The traditional silos of communication in schools have been converging over time. Voice over Internet Protocol phone systems, which many organizations have already adopted, are typically administered by the IT department. Additionally, public address systems in schools can be connected to the network and integrated with VoIP phones, so if there is an emergency or

active shooter, administrators can communicate with occupants and give crucial instructions, even if they are not on-site. Mobile apps and additional integrated technologies like desktop computers, indoor/outdoor signage and emergency beacons help bridge the gaps in a unified system and should be a part of any school’s emergency operations plan. Additionally, schools or districts with multiple campuses should be connected so that communication can be bridged through satellite campuses. Two-way radios can be connected through the network so that one individual can speak to her entire safety team and be part of that crisis communication loop even if she is at a meeting on the other side of town. The radio’s range is no longer a barrier when it is integrated into the network of emergency communication technologies. Also, evolving over several years have been mobile apps designed to communicate with emergency responders and law enforcement. Next Generation 911 is an IP-based system that allows digital information (voice, photos, videos, GPS coordinates, text messages) to flow from the public through the 911 network and on to emergency responders so that they are armed with specific data provided by

the caller. There are several applications designed specifically for the education market and may be considered by schools in the creation of a comprehensive emergency plan.

Districts’ IT staffs plays a primary role in ensuring schools are equipped with the technology that can mitigate harm during an emergency. A lot of school administrators have traditionally had their crisis plans in binders in their offices. In situations where occupants are evacuated, it’s important to have access to that plan and contact information. Digitizing the plans allows authorized safety administrators to access procedures and contact information through an app on a mobile device. This ties into an overall operations plan so that school administrators simply have to know where to look in an emergency situation and receive prompts for next steps. Integration of easy-to-use applications and technologies is an important consideration when developing or enhancing a school’s emergency operations

Easy access data and research ideal for businesses

By Jose M Granados

he internet has changed the business landscape for all but the biggest change has been in favor of entrepreneurs and small businesses. It has leveled the playing fields. For example, digital technology has given small businesses easy access to free or low cost data, research and market insights. In the past, market research was viewed as Jose M Granados elaborate, technical and expensive. Market research was a resource available only to businesses with large budgets. That is not the case anymore. Traditional proprietary research (phone survey for example) is still expensive, but in this digital age, it is easy to take advantage of information in the public domain. Research does not need to be elaborate, technical or expensive to be effective. With this in mind, let us explore the number of free data resources available online. Internet search engines and social media platforms are tools even the smallest entrepreneurs or businesses can use to monitor competitors and keep up with customer needs, preferences and attitudes. Furthermore, business owners can follow industry trends and local market conditions by accessing

data from public sources such as government agencies, local colleges and trade associations. Among the top sources of good local data is the Kern Business Journal, www.bakersfield.com/ kern-business-journal (you can use a mobile device to scan the QR codes or pictures shown below to link and explore these online data resources). The Kern Business Journal publishes every two months. It explores and highlights key local industries and business sectors in each edition. Another local valuable business, market and consumer data source is the Kern Economic Journal published quarterly by California State University Bakersfield. It tracks local trends and analyzes regional, national and global issues that affect the economic well-being of Kern County. The journal provides useful information and data that help the community make informed economic decisions. For more information visit www.csub.edu/kej or scan the QR code below. As part of my job at TBC Media, I use a variety of public data to monitor the local, state and national economy. I look for industry trends, customer needs and consumer behavior. Some of my favorite data sources include the U.S. Census (American Community Survey), U.S. Bureau of Economic Analysis, California Department of Finance, California Department of Labor and the National Federation of Independent Business.

plan; confusion and panic can mean lost seconds during an emergency situation. In addition to emergency communication and crisis planning, devices like security cameras, threat detection and access control systems can all be utilized to create a “smart campus.” Regardless of who operates these systems, IT must be a part of comprehensive risk management and security planning to ensure the longterm maintenance and optimization of these solutions that are designed with one objective in mind: safety. While our local schools are expected to be, and usually are, safe havens for learning, unexpected violence or disasters can occur. Districts’ IT staffs plays a primary role in ensuring schools are equipped with the technology that can mitigate harm during an emergency. As the IoT continues producing a significant amount of people-to-people and deviceto-device solutions for schools to take advantage of, IT experts are necessary to deploy a successful launch and long-term effectiveness of those technologies as they impact other network-based solutions. — Kelly Fargo is the director of marketing for Global CTI, an effectivecommunications provider.

For local data, I often rely on the city of Bakersfield and Kern County. Sales tax revenue, building permits, budgets, etc. can all be found or requested online. In addition to public data, I also use data from trade and industry organizations, such as the National Retail Federation, News Media Alliance and a number of other organizations. Organizations like these often generate and share research with the public and it is often online. Even corporations like Bank of America generates and distributes great research for free. They recently published their “Spring 2017 Small Business Owner Report” — to view, scan the QR below. This report is packed with great information about small businesses in the United States. For example, economic confidence among small-business owners is up significantly from six months ago and is among the highest in the past five years. The National Federation of Independent Business also reports similar findings in its March 2017 “Small Business Economic Trends” report. A link (QR code) to both reports is below. This is barely gleam at the kind of data and research available online for free. There is a lot more. The bad news is everyone has access to it, including your competitors. These are critical times for businesses. Success, if not survival, may hinge upon the ability to understand and capitalize on digital and mobile technologies, including market research. Remember: Research does not need to be elaborate, technical or expensive to be effective. — Jose M Granados is a business analyst at TBC Media. He can be reached at jgranados@ bakersfield.com.

June / July 2017

KERN BUSINESS JOURNAL

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KERN BUSINESS JOURNAL

June / July 2017