04 cvbj april2014 final lowres by Central Valley Business Journal

April 2014

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APRIL

2014 VOL 9 • NUMBER 8

Business Journal Central Valley

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StOCKtOn • traCy • lODI • ManteCa • latHrOP • lInDen • rIPOn

MODeStO • CereS • tUrlOCK • OaKDale • rIVerBanK

5.11 Tactical outfits NASCAR Filling Labor Gaps Companies rely on temps to try out workers.

Page 16

Modesto firm designs uniforms for race officials By ELIZABETH STEVENS Business Journal editor

Clean Energy New power plant is latest in Port of Stockton’s environmental efforts.

Page 26

Lean & Green Green Team San Joaquin helps businesses get environmental.

MODESTO – 5.11 Tactical, best known for outfitting SWAT teams and members of the Special Forces is now targeting a new market: NASCAR. The company developed new uniforms for race officials which debuted during Speedweeks, an event that includes the Daytona 500, in February. “NASCAR has a pretty arduous mission in the garage and in the pits, and we want to tell our story in an authentic way. NASCAR wants to build innovation into its growth. So it just felt like all the pieces lined up,” said 5.11 Tactical’s Chief Revenue Officer Bob Neapole. In keeping with 5.11 Tactical’s approach to development, designers worked closely with NASCAR to put together apparel and gear based on what officials need. The shirts and pants are made of Taclite® and FlexTac® fabrics, which make uniforms resistant to rain, stains and soil.

Page 36

WHAT’S INSIDE Publisher’s Notes............Page 2 Briefs.....................Pages 48, 49 Insight and Analysis......Page 36 BUSINESS JOURNAL PHOTO

Rich Hogan plans to reopen Windmill Cove in April.

Taclite shirts for officials feature logos from 5.11 Tactical, NASCAR, and the American flag.

PHOTO COURTESY 5.11 TACTICAL

There is also a three-in-one systems jacket, called the Bristol Parka. It features hidden ID panels that allow officials to be overt on the track and covert off. The jacket has a zip-out liner that can be used

as an added protective shield in harsh conditions. Custom modifications were developed, from button-snaps on the front to faux-pocket flaps for increased functionality and a back welt pocket for tools and radios.

“These folks need gear that allows them to function,” said Neapole. “It needs to be performance-oriented; needs to make sure that their tools and their

Just in time for warm weather, renovations are in the final stages on one of the most popular spots in the Delta. Windmill Cove’s new owner, Rich Hogan, hopes to have the revamped bar and grill open by the second week in April. “It has to be open. It’s almost a landmark,” Hogan said. “I mean, everyone knows Wind-

mill Cove, that has anything to do with the river. It is the number one restaurant on the river.” The restaurant had been open for 50 years, but the county and the fire department closed it last fall because it wasn’t up to code, Hogan said. Then Hogan, along with David Theis, who owns the land and the adjoining resort, decided to remodel the

restaurant and reopen it. “It was in pretty rough shape when I came in, both downstairs and upstairs,” Hogan said. Theis took care of making structural improvements. Hogan gave the restaurant an updated look. There’s a new bar with is-

Please see TACTICAL Page 3

Delta favorite to reopen soon

Please see WINDMILL COVE Page 7

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Central Valley Business Journal

April 2014

Optimism about the economy is growing It’s official, I’m finally in Connecticut battling the weather and flight cancellations. We arrived in time for my son’s graduation ceremony. Blake, who is in the Navy, has graduated from C school. He’s on to F school for six weeks and then San Diego. I’m as proud as a mother can be. My 13-year-old niece and traveling companion, Lauren, was beaming as we watched Blake receive his certificate for completion of C school in the information systems technician submarines (ITS) pipeline. He was promoted to E4 (petty officer 3rd. class). The time sure goes by fast. It’s been a little over a year since Blake left for boot camp. Few words can describe the joy I feel watching my son achieve each milestone, and the smile on his face assures me the Navy was the right choice for him. Springtime always feels like we’re starting fresh, and this year we’re noticing a renewed optimism in the business community. We’re hearing a lot of anecdotal evidence of the economic rebound from local cities and organizations such as the Stanislaus Alliance and San Joaquin Partnership. The Flowers Baking Company in Modesto has expanded and added 100 jobs. The company produces bread that is sold under brand names we’re all familiar with including Nature’s Own, Wonder, Home Pride, and Sara Lee.

In Tracy, Mayor Brent Ives says two big companies are close to announcing they will locate a manufacturing plant and a ground transportation facility in the city. If they come through, they will add hundreds of new jobs. Read Kent Hohlfeld’s story about Tracy on page 4 to learn more about the advances that city has made Sharon in job creation. Alley Calone In late March, the Partnership’s Mike Ammann announced the organization’s wins for 2013: seven new businesses, six expansions and one retention. That adds up to more than 1,600 new jobs and 80 retained jobs. Guess the trend of Bay Area businesses moving to the Valley is going strong. This is also our Port issue. While the Port makes news year-round, this month we’re taking a closer look at its environmental efforts. Check out our center spread to learn about the new waste-to-energy plant that burns wood and agricultural waste to

Publisher’s Notes

produce enough electricity to power 45,000 homes per year. That’s a great improvement over the coal-burning facility that used to be there. We’re also looking at the Google barge, which sparked such a firestorm of interest in early March. It’s moored at the Port across from Louis Park, and while Google’s saying very little, local leaders are talking about what a treat it is to have it here (even if we don’t know what it’s for). Speaking of new beginnings, the San Joaquin Angel$ has held its Entrepreneur Challenge, and what an interesting an array of business ideas! From a mobile app for personal training to specialty clothing for special needs children to a cosmetic care program. After three rounds of presentations, a winner and a runner-up were chosen to receive cash prizes and thousands of dollars in business services. Go to page 30 to find out who won and learn more about the great entrepreneurial spirit that’s alive and well in our region. Springtime is also a great time of giving in Central Valley communities. On April 5, there will be another Love Modesto day. Hundreds of volunteers turn out to clean up neighborhoods, deliver meals, provide classes and visit shut-ins. Other local communities hold their own “Love” days throughout the month. If you’re

BUSINESS JOURNAL PHOTO

Love Modesto draws hundreds of volunteers every year to help improve the community.

interested, there are still openings for lots of projects, and they would love your help. Contact organizers at lovemodesto.com/contact. As Easter approaches we are reminded of the special holiday each year as Thelma Stewart’s Ladybugs spend countless hours creating the most beautiful Easter baskets for the the annual luncheon hosted at her home. This wonderful event raises money for handicapped persons and offers families gorgeous, one of a kind, handcrafted Easter Baskets. My children and many others have enjoyed these fabulous baskets for many years. Ladybugs, your heartfelt efforts are much appreciated! Happy Easter and God bless America, Sharon Alley-Calone

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TACTICAL Continued from Page 1

devices have storage solutions and are readily accessible, and if they lean over a car, they’re not going to scratch it.” The uniforms and gear have been provided for the 1,200 officials in the various NASCAR series. So far, NASCAR seems pleased with the results. “The uniform package that 5.11 Tactical introduced during Speedweeks received great praise and admiration from the hardworking men and women that officiate our sport,” said Robin Pemberton, NASCAR vice president of competition and racing development in a press release. “The new uniforms are comfortable and stylish and are made to hold up to the rigorous conditions in the garage.” This newest venture is the latest in the Modesto-based company’s expansion efforts. The company has grown since it was a division of Royal Robbins, which developed the signature 5.11 Tactical pant for mountaineers. Modesto businessman Dan Costa worked for Royal Robbins in the late ‘90s and while going through the company’s customer list, he noticed an account called “Quantico.” It turned out the account was for purchasing pants at the FBI’s training academy. Costa saw an opportunity. He bought Royal Robbins and created the 5.11 Tactical brand. He sold Royal Robbins in 2003 but kept 5.11 and began

developing gear and apparel for first responders and military personnel. The company is now responding to interest from other potential customers who have the same adventurous mindset, even if they don’t have a dangerous job. A study in 2012 discovered the company’s potential market was broader than managers previously thought. “Folks sometimes think ‘tactical,’ that’s law enforcement or military. It’s black guns. It’s SWAT. But what we realized as we found all these consumers who were searching out our product, they were not those folks,” Neapole said. “What was fascinating to us was that segmentation of consumers really wasn’t gun-led, it was mindset-led and gun ownership really didn’t figure into it.” The company discovered that for those customers, it was about being prepared for whatever their life required. They were involved in hunting, fishing, mountaineering and jobs that required physical activity, hence 5.11’s new tagline: Always be ready. It’s led to impressive growth, spurred mostly through word of mouth. The company has not targeted the general public in its advertising. “We’ve done over 20 percent growth since 2007. We grew right through the recession,” Neapole said. The next step, according to Neapole, is to get the clothing and gear in stores where the general public shops. 5.11 Tactical has its products in sporting goods chains such as Bass Pro

MARK RICHEY/CVBJ

Tactical gear is now available for the general public and can be found in outdoors stores such as Crescent Work and Outdoor in downtown Modesto.

Shop and Dick’s Sporting Goods. To keep up, the company is expanding its logistics operation. It’s doubling the size of its Lathrop distribution center to 220,000 square feet. “The continued focus here will be around our outgoing distribution,” Vice President of Global Operations Brad Finkbeiner told workers during a company meeting in mid-March. “A big part of that will be making sure we can increase our capacity in this facil-

ity to handle the growth that we have coming up over the next few years.” Though Costa sold 5.11 Tactical to TA Associates, a Boston private equity firm, in 2007 and stepped down as CEO in 2011, the company still maintains its headquarters in northeast Modesto and has committed to keeping its operations center in the area until at least 2018. “We’ve had great success here. We’re big supporters,” said Neapole.

Central Valley Business Journal

April 2014

Tracy mayor: prudent planning helped city weather tough times By KENT HOHLFELD Business Journal writer TRACY – Tracy Mayor Brent Ives used his last state of the city speech March 27 to discuss the city’s past while also extolling its virtues and looking to the future. “Tracy is a little different,” said Ives. “We aren’t like everyone else. We are on the edge of the Bay Area, the Central Valley, technology and agriculture, and our plan reflects that.” Much of his speech to the 250 business people and elected officials reflected on the tactics that the city used during his two terms which helped Tracy survive the Great Recession. He said the fact the city had set aside money in good years, combined with a half-cent sales tax increase and city restructuring left Tracy with $40 million to ride through the bad times. “The fact that we saved some money, had citizens that were willing to give us that extra money when we needed it and had labor groups that were willing to work with us really helped,” Ives said. “It gave us the time we needed to work through the recession.” He told the audience at the Grand Theatre that those measures had left

Tracy poised to move successfully into the post-recession world. “We knew that if we could get out of the recession and have industrial developments ready to go, we would be able to bring companies in,” he said. A big part of being ready were two big business parks. The first was Tracy’s Gateway Business Park which started in 2010. The second big development is Cordes Ranch, a 1,783-acre planned industrial development that was started in 2013. So far the strategy has worked with companies such as Amazon deciding to place a 1 million square-foot warehouse facility in the city last year. In 2013 Tracy created 3,000 new jobs and Ives is looking for more. The mayor claimed that two Fortune 100 companies, which he declined to name, were close to choosing the city for their operations. “Companies are looking to be successful and they are going to look to be successful here,” he said. “Two companies are in the final stages. They are so close that I can’t announce their names.” Ives said one of the companies was a medical device manufacturing company that wanted 80 acres for a new facility that would produce 200 to 400 jobs. The other company was a global

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ground transportation provider that would build a 125-acre facility that would produce 400 to 500 jobs. “Those are the kinds of jobs that can take commuters off the roads and let them work here,” said Ives. One of the biggest areas that Ives hopes future mayors and City Councils focus on is generating jobs that will help lower the commuting rate out of Tracy. Currently, nearly 70 percent of working residents in Tracy commute elsewhere for jobs. “If those jobs only take five people off the roads, I’m still happy,” said Ives. “There is nothing we can do to improve the quality of life (in Tracy) more than to give someone a job here.” He said residents’ ability to get highpaying jobs in Tracy instead of heading into the Bay Area would improve the environment, people’s involvement with the city and their family life. The fact that the city is expected to grow to more than 100,000 residents in the next 10 years will make providing

WAYNE DENNING/CVBJ

Ives said Tracy’s strategy helped attract an Amazon. com fulfillment center in 2013 and that two other large businesses are considering similar moves.

those kinds of jobs even more important. “When people don’t have to drive three to four hours for work, that makes their lives better,” he said. Ives’ speech helps area business leaders plan for what lies ahead in the city according to Tracy Chamber of Commerce President Sofia Valenzuela. “This kind of function lets our members know what is going on in the city,” she said. “It helps them plan for the future.”

Partnership touts ‘wins’ in bringing manufacturing jobs By ELIZABETH STEVENS Business Journal editor STOCKTON – The San Joaquin Partnership attracted seven new businesses, expanded six and retained one, according to its annual report, presented March 27 by President and CEO Michael Ammann, at the organization’s breakfast. “We still see the same trends,” Ammann said. “The trends of folks migrating east out of the East Bay and out of the Bay Area.” One such business was Ecologic Brands, a company that creates bottles from recycled paper. Based in Oakland, Ecologic opened a facility in Manteca that will produce 60 million bottles every year. The Partnership helped with the deal by providing site location, incentive analysis, permit assistance, referrals as well as facilitating meetings. The Partnership estimates the new location will provide between 60 and 120 jobs. “This manufacturing trend investment should continue with the implementation of “California Competes” incentives in 2014 that are focused on attracting manufacturing jobs,” Ammann wrote in the annual report. Other new manufacturing companies included International Windows, which opened a plant in the Airport Gateway Center; Michael & Company Precision Metal Fabricators, which moved from Galt to Lockeford; and NEMO Building Systems, which has opened a start-up operation in Lathrop.

Two manufacturing companies expanded last year: Sunrise Fruit & Nut Company and Trinchero Family Estates, a Lodi winery which is in the process of doubling its wine making capacity. In all, the Partnership’s efforts led to the creation of 4,901 jobs, $950 million of industrial output and $270 million in labor income in 2013, Ammann said. Other speakers at the breakfast addressed what they said were two major challenges facing the region: labor and water. Over the past couple of years, farmers have reported difficulty finding enough workers, especially at harvest time. “A lack of a federal immigration policy is affecting this area [San Joaquin County] big-time,” said John Ledbetter of Vino Farms. “We all need to put pressure on our federal legislators to get a comprehensive, federal immigration policy that works.” Fritz Grupe, president of the Business Council, talked about water and said the self-interest of individual counties was keeping the region from coming up with a workable water policy, one he said needs to focus on storage. “You’ve got to have more storage. Period. No good to reallocate what’s here when you’ve got 43 million acre feet running out of the Golden Gate in a wet year and in a dry year there’s 6 million. What are you going to do with all that water in wet year? Let it run out?” Grupe said. “It’s not an engineering problem. And it’s not a financial problem, people will pay for it. We’ve got a political problem.”

April 2014

Business Journal STOCKTON • TRACY • LODI • MANTECA • LATHROP MODESTO • CERES • TURLOCK • OAKDALE • SALIDA

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April 2014

Air service expanding in Central Valley MODESTO – Central Valley air travelers will soon have more options thanks to two developments in March. The campaign to start air service between Modesto and Los Angeles reached its goal after an event in early March to raise interest in the service. DestinationLAX was working to get $1 million in pledges to show support for the service. During the event, organizers announced it had raised $500,000. However, on March 7 it announced it had reached its goal with $1,074,646, thanks largely to interest from travel agents. “I invited travel agents I know to Wednesday’s event to see if this is something they would be interested in, and they definitely were,” said City Councilman John Gunderson.

“Due to clients who regularly travel to India and Asia, their pledges pushed this campaign over the top, and we’re not done yet.” The city of Modesto itself had pledged $25,000, and Mayor Garrad Marsh said he would make a personal pledge. At the event David Halvorson of American Chevrolet told business leaders that new air service would not just help improve Modesto’s economy, it could also keep the airport’s traffic above the 10,000 passengers it needs to keep its $1 million subsidy. He said only about 9,800 people traveled through Modesto’s airport last year. “It’s not just an opportunity, it’s a crisis,” he said. The results of the campaign will be

USAA Real Estate acquires two warehouses south of Stockton STOCKTON – Two warehouses in the Stockton area have been acquired by USAA Real Estate Company, the company announced. Both of the buildings are ready for tenants to move in and are described as institutional-grade bulk distribution centers. CBRE’s Industrial Real Estate team

represented USAA in the portfolio transaction and are currently representing USAA as the listing team for both properties. “Less than two hours from the Port of Oakland and most of the Bay Area, Stockton is enjoying growing demand as a distribution point for industries

presented to an as yet unnamed airline to prove there is support for the service. The campaign continued through Monday, March, 31. Allegiant Air is expanding its Stockton service to include Phoenix, the airline announced March 4. “We are pleased to expand our service in Stockton to include lowcost, convenient travel to the sunny destination of Phoenix, ” said Andrew C. Levey, Allegiant Travel Company president and COO in a press release. “The community has embraced our long-running service to Las Vegas and our seasonal Honolulu flights, and we are confident that they will appreciate our lowcost flights to Phoenix.” The Las Vegas-based airline will

have twice-weekly service between Stockton and Phoenix/Mesa Gateway Airport. Service begins May 15 and will offer promotional one-way fares as low as $58.

operating in Northern California”, said Justin Hildebrandt, executive director of USAA Real Estate Company’s Northwest Region. The Newcastle Logistics Center, a 750,561-square-foot building at 4650 Newcastle Rd. near Arch Road east of Highway 99, features 30,000 square feet of freezer space and 190,000 square feet of cooler space, which the company describes as “state of the art.” The other property is Performance Logistics Center, a 165,474-square-

foot building at 834 Performance Dr. near Stockton Metropolitan Airport. That property was originally built as a speculative, multi-tenant warehouse and distribution center and features approximately 500 square feet of office space along with around 165,000 square feet of warehouse and distribution space, the company said. The property was acquired with an adjacent 2.5 acre lot which can be used to expand parking for auto or trailer parking.

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Allegiant Airlines is expanding service to Phoenix.

April 2014

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Emanuel Cancer Center earns accreditations TURLOCK – The Emanuel Cancer Center has received several accreditations for providing top-quality patient care, the center announced March 31. “These accreditations once again show the high quality of patient care available at the Emanuel Cancer Center,” said Michael Iltis, the executive director of the Emanuel Cancer Center in a press statement. “They provide an independent evaluation which documents that our patient-care practices, procedures and outcomes are in line with the best in the nation.” The Emanuel Cancer Center has been reaccredited by the American College of Surgeons’ Commission on Cancer, a commendation only awarded to about 20 percent of the cancer programs in the country. The Stanford-Emanuel Radiation Oncology Center was accredited by the American College of Radiology. That makes the center one of only 35 accredited facilities in the state and the only one between Sacramento and Bakersfield. The Ruby E. Bergman Women’s Diagnostic Center was also accredited for breast ultrasound by the American College of Radiology. The center is already accredited for mammography, Emanuel said. The accreditation for the Stan-

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ford-Emanuel Radiation Oncology Center and the breast ultrasound accreditation for the Women’s Diagnostic Center are both three-year accreditations by the American College of Radiology, the nation’s oldest and most widely accepted radiology accrediting body. “When our programs and facilities are reviewed for accreditation, we receive a comprehensive report we can use for continuous quality improvement,” Iltis said. “It means our programs at the Emanuel Cancer Center will continue to be at the leading edge of patient care.” The Emanuel Cancer Center opened in 2007 in Turlock. It includes advanced diagnostic services at the Ruby E. Bergman Women’s Diagnostic Center, medical oncology, radiation oncology at Stanford-Emanuel Radiation Oncology Center, surgical and other services for cancer patients and their families. Patients at Emanuel Cancer Center can also participate in clinical trials of new treatments, the center said.

WINDMILL COVE Continued from Page 1

lands, both inside and out, for additional seating as well as new carpet and paint. Hogan also added a game room. There will be more TVs and a juke box. In all, Hogan said they spent about $80,000. Hogan is revamping food offerings as well to provide what he calls “your typical river menu.” Patrons can expect hamburgers, chicken sandwiches and wraps, salads and appetizers. Pizza will be added a little later. Hogan has given a lot of attention to the bar and promises “our beer prices are going to be the best on the river.” That means $3 domestic beers, $4 import beers, $4 well drinks and $6 for top shelf liquor. Even the music will be a little different. “We play a lot of classic rock, blues, reggae, country,” Hogan said. “No more rap. We’re not going to do rap. We’re not going to do alternative music. We’re not going to do hip hop. It just makes the bar a little too wild. We want to shy away from that.” There will be a DJ on Saturdays and live music on Sundays. Hogan said he’s going after a family audience in the daytime with a more adult crowd at night. “We will not allow minors in the restaurant bar after 10 o’clock at night. It will be strictly 21 and over,”

Hogan said. Of course, everything is geared toward the boating crowd, which Hogan estimated would make up about 90 percent of his customers. The marina can accommodate about 60 boats. More than 40 years experience in the restaurant business has given Hogan the know-how to put together a successful restaurant venture, he said. Hogan started his career working in the Carl’s Jr. chain in 1968. He worked there for 17 years and left as a regional vice president. Since then he’s worked in full-service steakhouses and owned Baskin-Robbins franchises, pizza shops and Subway sandwich stores. He owns Haven Acres, another popular Delta restaurant, as well as the Top Flight restaurant at Stockton Metropolitan Airport. His secret for success? “Attitude and how you approach the business and making sure you understand your customer is the most important thing you have,” said Hogan. “You’ve got to treat that customer well. If you do, if they come in, and sit down and have a great experience, and they get up and walk out and say ‘Wow! That was pretty cool,’ you did your job. That’s what builds the customer base.”

Central Valley Business Journal

April 2014

What to do if you’re audited by the IRS April is here and you are focusing on your income tax returns. You did the IC-DISC we suggested in February to get the credit for your oversea sales of crops. You also set up your Section 831(b) Captive Insurance Company to save tax free a fund to cover unexpected losses. Let’s suppose that as you are renewing your estimates and your IRS papers, you find an audit notice for 2011 with an appointed date of April 10, 2014. What to do now? Your accountant likely won’t take appointments on new matters until May 1. You need an extension. You can send a letter to the IRS agent telling him you need another month because your accountant is not available until May. That will make sense because IRS rules require 80 percent of your accountant’s work load to be in the first 90 days of the calendar year. When you send the letter to the IRS, include a copy with a stamped return envelope and ask the IRS to date stamp the copy and return it in the envelope provided as your proof of their receipt. You should do this for everything sent to them: money, tax returns and responses. I know the code provides for registered or certified mail, but where on your postal receipt does it outline what was sent? That requires an additional step with a cover letter referencing the postal receipt number. You need to prove when

you sent responses because late filing penalties are 5 percent per month to a maximum of 25 percent, so be careful. First you notice your auditor is requesting all your bank statements. He will total the deposits and compare that total to your income reported. If it’s not close, he will ask you to reconcile. Then he will check your lifestyle. If your house payment Richard Calone is $2,500 a month Calone & Harrel and you show Law Group only $18,000 a year in income, anticipate questions. The next thing he will ask for is a tour of your business. He’ll want to check things out in person. Let your tax preparer handle the tour and all audit meetings. Assemble the substantiation for your accountant. Cancelled checks are a big help if your bank sends them to you. The checks also need to be supported by an invoice so if the cost is for a new roof, the auditor can see it was put on your rental house not your residence. An adequate accounting system in

Taxing Matters

place helps reassure the auditor that everything has been properly reported. If you used TurboTax, hopefully you have the work papers to support the numbers you typed into the system. Remember the IRS has the benefit of millions of returns and the common errors made by all. We are a consistent bunch as taxpayers. He will ask about your car expenses. If you are using standard mileage at 56.5 cents per mile, how did you document the total business use? A contemporaneous business record is the requirement, but how many of us do it? There is an app for your phone that is an aid. Your calendar on your Outlook program could also be helpful, you only need to provide the mileage as all the trips to appointments will be recorded. We worked for a real estate broker who did not keep a log of his boat trips to show real estate in the Delta but he had a detailed calendar of trips, prospective buyers and sellers. The auditor accepted that as adequate. Be careful establishing your beginning mileage from your maintenance records. Do not alter them. We had a client who did. It was not comfortable to attend a meeting where an agent armed with a government-issue 9 millimeter pistol read him his Miranda rights. At that stage it is no longer just money at issue but your personal

liberty. The bottom of your tax return says in extremely small print that you declare under penalty of perjury that the contents are true, correct and accurate to the best of your knowledge. If you do not have proof, declare an estimate and good luck with that. What does the IRS consider adequate records? They first look to see if you have a system. If you do, and it is a good one, they will accept and rely on it. If it is spotty, they will ignore it. Documentary evidence is defined as adequate in the Publication 463 if they are receipts, cancelled checks or bills to support your expenses. If you do not have the documentary evidence, you can submit an oral or written statement to fill in the blanks or other documentary evidence to support your testimony. If you do not agree with your auditor’s conclusion, you are entitled to an unagreed conference with his group manager. If you still do not resolve the audit, you are entitled to appeal to a separate hearing with a member of the appeal staff. Lastly, you can proceed to tax court after you receive their 90-day letter. Before you proceed to tax court, you can elect to pay and file a claim for refund. That allows you to proceed to Federal District Court and perhaps a jury trial if a factual issue is cited. The problem here is you have to pay the tax first plus your lawyer.

April 2014

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Central Valley Business Journal

April 2014

Kaiser takes insurance info to shopping malls By MARIE SARDALLA-DAVIS Business Journal writer MODESTO – To help consumers obtain health care coverage under the Affordable Care Act, Kaiser Permanente set up retail outlets in Modesto and Stockton and deployed a mobile unit to educate and enroll the uninsured at places they already frequent. While more than 6 million people nationally have signed up for health care coverage since Oct. 1, many of the uninsured had been unaware of the deadline, according to Kaiser. “People appreciate that we’ve come to their communities,” said Corwin Harper, senior vice president and area manager for Kaiser Permanente Central Valley. “There’s so much information about Covered California. We want to make it simple for people to understand their options. Some of them already have health care benefits but think they might be going away. We’re giving them a private, secure space to find out if they’re eligible and decide if it’s for them.” Kaiser said it will keep the kiosks open after the March 31 deadline to continue to provide information about health insurance options.

ShopKP Modesto is at 3848 McHenry Avenue, Suite 325 near Walmart. It is open from 10 a.m. to 7 p.m. Sunday through Saturday. Consumers can walk in to peruse information via iPad, or they can call to make an appointment with a representative at (209) 577-1974. ShopKP Stockton is a kiosk near the entrance of Weberstown Mall, 4950 Pacific Ave. It is open from 10 a.m. to 9 p.m., Monday through Saturday and from 11 a.m. to 6 p.m, Sundays. Staff can be reached at (209) 401-4974. The mobile unit, which is the size of a small bus, parks at the Weberstown Mall from 11 a.m. to 6 p.m. Friday, Saturday and Monday. It stays at the Weberstown Mall Farmers Market from 8 a.m. to 1 p.m. on Sundays. It also travels to community events in Stanislaus and San Joaquin counties, including the Ripon Almond Festival, the Modesto Downtown Harvest Festival, the Tracy Farmers Market, and health fairs in Galt and Modesto. Staff are trained in the complexities of health care reform. Many are bilingual in Spanish and English. Kaiser equipped the sites and mobile unit with iPads and laptops with a secure Internet connection. Consumers can access the Covered California website to learn

WAYNE DENNING/CVBJ

Kaiser Permanente has kiosks at Vintage Faire Mall in Modesto and Weberstown Mall in Stockton to provide health insurance information.

about various health plans. Staffers can acquaint them with Kaiser Permanente HealthConnect, an interactive online health record that lets members email their doctors, schedule appointments, refill prescriptions and check test results for free. The technology also provides remote access to translators. “Kaiser Permanente is a part of the

solution for Covered California. We’re not trying to be the only solution. All those folks coming in under Covered California will have access to KP over 7,000 doctors and 21 medical centers across California. In the Central Valley, they will have access to 475 doctors, two hospitals, and other outpatient clinic setups,” Harper said.

April 2014

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Asparagus Festival to feature fresher look By ELIZABETH STEVENS Business Journal editor STOCKTON – When the Stockton Asparagus Festival kicks off, April 25, there will be changes visitors notice right away and some that are more subtle but no less important. “Let’s start with the first impression of the festival when you get there,” said festival Executive Director Kate Post of the new peaked tents organizers have rented. “I think that first impression is going to be quite stunning. It’s going to look more like Sunset Celebration for Sunset Magazine than a carnival -- a beautiful long row of these peaked tents with colored fabrics on top and flags and pennants flying.” In addition, there will be new venues. The DeCarli Stage has been freshened up, and there will be rock music and dance bands in the afternoon. Visitors will see a new act as well, Street Drum Corps. “I say, they’re like the Blue Man Group but without the blue faces,” Post said. “They are so cool. They were drum ensemble of the year in 2012. They have been on Glee, American Idol, Leno, Conan O’Brien -- very young, very fresh, very energetic.” The farmers market is moving to the arts and crafts area. Many changes were meant to freshen the festival, which is in its 29th year, but others were spurred by the fact that the festival is having to pay more to the city for public services and

that attendance dropped 25 percent last year, compared to the year before. “It really forced us to clean our fiscal house a little bit because it was a little bit shocking to not do as well as we’ve done in the past,” Post said. Organizers had timed past agreements to expire when the festival’s contract with the city ran out last year. That gave them the opportunity to negotiate better deals. “We just tore that budget right apart and looked at every single line item -everything and said, ‘What can we do here, here, here and here?’” Post said. “A couple of our suppliers said, ‘Look, we’ll work with you on this. We’ll give you a 20 percent reduction, and we’ll hold that price for three years just to help you out because you’ve been a supplier for so long.” One decision they made was to drop charter bus service to the festival. Post said it cost $33,000, but it wasn’t heavily used. Instead, festival visitors who want a stress-free ride and easy parking options can board the Metro-Express, which runs along Pacific Avenue to the festival’s Gate 3. Visitors can get bus passes, which will be good all day, for $4. Cost-saving measures even included finding another place for the Asparagus Festival’s offices. Post and her co-workers moved from the Cort Building to the United Way offices, where they’re enjoying space rent-free for two years at a savings of $18,000 a year. Festival fun starts a couple weeks Please see ASPARAGUS FESTIVAL Page 13

Dry Bean Festival rebrands TRACY – Tracy’s late summer dry bean festival is undergoing a makeover and will be rebranded as the Taste of the Valley Art and Food Festival, the Chamber of Commerce announced Monday. The festival will run Sept. 6-7 in downtown Tracy. “Our ultimate goal with the new changes to the festival is to create more opportunities for businesses and produce an event that this community can be proud of. Our marketing efforts will increase throughout the region to promote visitors from surrounding cities to enjoy this great event in Tracy,” said Chamber President Sofia Valenzuela in a press release. The Chamber has hired event planner Grace Paget of Captivating Moments Events Planning and Management to lead the festival’s makeover. Paget will work with a festival planning committee made up of Chamber staff and board members to maintain existing relationships with vendors and recruit new vendors to round out the event. The Taste of the Valley Art and Food Festival will continue to promote Tracy

by offering booths to local businesses as well as promote locally grown foods. “We felt we needed to find ways to expand the reach of the event, not only within Tracy but also outside the community by including expanded food vendors and a farmers market element as well as adding art and expanded cultural exhibits to the event,”said Chamber Board Chairman Mike Donaghy. Vendor applications for the event will be available in April and can be requested by contacting the Chamber office at 209-835-2131 or visiting the Chamber website, www. tracychamber.org.

BUSINESS JOURNAL PHOTO

The Asparagus Festival has donated nearly $6 million to nonprofits since it started 29 years ago.

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Central Valley Business Journal

April 2014

PROPERTY MANAGEMENT FIRMS

Fee-Based Management

Owner/Developer

In San Joaquin and Stanislaus Counties. Ranked by Number of Employees. Ties are Listed in Alphabetical Order.

(209) 955-0535 garibaldico.com Mark A. Garibaldi

160 8

Colliers International 3439 Brookside Road, Ste. 108 Stockton 95219

(209) 475-5100 colliers.com Patrick Murray

48 6

Interstate Reality Management 2020 W. Kettleman Lane Lodi 95242

(209) 334-6565 themichealsorg.com Kimberlee Schreiber

45 1

WND

RPM Company 1420 S. Mills Avenue, Ste. M Lodi 95240

(209) 333-3400 rpmcompany.net NA

45 9

Liberty Property Management 1120 Scenic Drive Modesto 95350

(209) 548-4588 libertypropertymanagement.com Paula Zagaris Leffler M.B.A. C.P.M.

30 16

>3000

Stone Bros. Management 5250 Claremont Avenue Stockton 95207

(209) 478-1791 stonebrosmanagement.com John Godi

30 4

BLR Commercial Real Estate Inc. 2423 W. March Lane, Ste. 202 Stockton 95207

(209) 475-1980 blrcommercial.com Brandon L. Scott

24 2

Property Management Experts 200 W. Harding Way Stockton 95204

(209) 465-5000 pmerents.com Karen Carlson

20 3

Metzger Management Company 1044 Rivara Road, Ste. 110-A Stockton 95207

(209) 956-9024 metzgermanagment.com Michael Guindon

Grupe Commercial Company 3255 W. March Lane, Ste. 400 Stockton 95219

NAI Benchmark 1031 15th Street, Ste. 4, Modesto 95354 2920 Pacific Avenue Stockton, CA 95204

Real Property Management 601 14th Street Modesto 95354

Cranbrook Group Inc. 4701 Sisk Road, Ste. 101 Modesto 95356

RWM Property Management 1486 W. 11th Street Tracy 95376

CBRE Inc. 1776 W. March Lane, Ste. 170 Stockton 95207

American Commercial Brokerage 83 W. March Lane, Ste. 10 Stockton 95207

Heritage Property Management 1743 Grand Canal Boulevard, Ste. 11 Stockton 95207

Huston Assoc. Real Estate Inc. 3138 Pacific Avenue Stockton 95204 Romero Management Services Inc. PO Box 7959 Stockton 95267

Multi-Family

Residential

Retail

The Garibaldi Company 3525 W. Benjamin Holt Drive Stockton 95219

Residential

Industrial

Commercial

Office

Company Name Rank Address

Number of Number Phone Local of Web Address Staff Properties and Top Local Executive Offices Managed

6.7%

86.6%

1991

14%

63%

23%

1999

99%

1969

100%

1995

75%

10%

1947

23%

50%

27%

1948

25%

30%

20%

2004

1,500

80%

20%

1978

13 1

169

50%

42%

1975

(209) 473-6201 grupe.com Kevin Huber

18 2

50%

1987

(209) 576-2240 (209) 461-6400 naibenchmark.com Ryan Swehla

16 2

30%

10%

50%

1993

(209) 572-2222 rpmcentralvalley.com Abraham Rego and Frank Madrigal

12 3

1000

99%

1980s

(209) 549-4960 cranbrookgroup.com Jim Devenport

10 2

72%

28%

1991

(209) 835-4545 rwmrentals.com David Ormonde

10 1

300

75%

21%

1981

(209) 473-7800 cbre.com Rick Goucher

6 2

1988

(209) 951-1888 americancb.com Chuck Lantznester

3 1

25%

50%

25%

1981

(209) 478-4283 heritagepropertymanage.net Debbie Hamer

3 1

600

70%

30%

1992

(209) 464-9441 sanjoaquinhomes.info Norbert G. Huston

2 1

161

84%

26%

1963

(209) 951-5090 romeromgmtservices.com Robert Romero

2 1

30%

20%

40%

1986

100%

Year Est. Locally

These lists are provided as a free service by the Central Valley Business Journal for its readers. As such, inclusion is based on editorial consideration and is not guaranteed. If you would like your business to be included in a list, please write to: Research Department, Central Valley Business Journal, 4512 Feather River Drive, Ste. E, Stockton, CA 95219, fax your information to Research Dept. at (209) 477-0211 or email us at research@cvbizjournal.com. Copyright Central Valley Business Journal. Researched by Danette Conley 03/2014

April 2014

CVBJ

www.cvbizjournal.com

ASPARAGUS FESTIVAL Continued from Page 11

before the actual event with the Great Asparagus Dine Out in which local restaurants showcase Stockton’s favorite vegetable. “We’ll have a whole separate side menu with six dishes that feature and highlight asparagus,” said French 25’s chef Keith Breedlove. Those dishes include an asparagus po’ boy sandwich, asparagus crab fettuccine, sundried tomato risotto with asparagus and beer battered asparagus with a creole sauce. But the item that will likely get most people talking is the asparagus burger, which features asparagus four ways: roasted, pickled, as a slaw and a special ketchup using asparagus instead of tomato. “I love making new things,” said Breedlove. “That’s what I live for.” Breedlove will put his cooking skills on display during the pro chef competition against chef Mike Midgley of Ernies on the last night of the festival. “We have no idea what they have for us,” Breedlove said. “It’ll be 90 minutes. ‘Chop’ style.” Word is already spreading throughout the region. Typically, about 60 percent of festival visitors come from out of town. Post said the city’s marina is fully booked and about 180 yachts are expected. The visitors and conventions bureau said 10 tour groups were expected from as far away as Oakland and Fresno.. “If the festival is something that will bring someone to Stockton for the first time, that is awesome,” said VisitStockton CEO Wes Rhea. “They come to the event, see our great downtown, maybe take in a few other sights, and we hope they will come back to explore more in the future. There is no one single event

Ports Anchor Fund to host FanFest event STOCKTON – The Stockton Ports Anchor Fund will host a free FanFest with the Stockton Ports on April 12 to raise money for community projects involving youth. Festivities will include Pancakes with the Ports, on-field batting practice for Season Ticket Holders, player autograph and photo booths, a mystery ball grab, and the opportunity to hit in the batting cages with Ports players. All season ticket holders must RSVP with the Ports by calling (209) 644-1900 to reserve a space for batting practice on the field. Tickets for the general public will be available for $5 starting at 9:30 a.m. on April 12 when gates open. Season ticket holders may purchase a breakfast for a discounted price of $3.00. The Ports Anchor fund reflects the Ports’ mission is to strengthen the community using baseball and entertainment as a backdrop. About 400 non-profit organizations received donations in 2013, the organization said.

that brings so much positive exposure to Stockton. We saturate the Sacramento and local media market with the event. It’s really difficult to put a price tag on that type of exposure.” In talking about economic impact, Post points to the festival’s commitment to the city’s nonprofits. Over the years, the festival has donated $6 million to Stockton’s charities. “Whatever we donate, goes back into the local economy through the nonprofits. Those have been some lofty numbers over the years,” said Post. “Some of them tell us we help sustain them.”

The nonprofits provide the festival’s workforce through volunteers and then get a dividend back after the event is over. While many things are new at this year’s festival, Post said some things have not changed. “Our original goals are still the same today,” said Post. “It was to promote tourism, positive image and raise money for nonprofits. Those are still the same goals, and we’re still doing it 29 years later. I think that’s something to be very proud of, that we haven’t gotten off the track at all.”

YOU DON’T PROFIT FROM SICK EMPLOYEES. WHY DOES YOUR HEALTH PROVIDER? In an industry built on fee-for-service care, Kaiser Permanente succeeds because we’re built around prevention and the highest quality care. One Harvard Business Review article described our care as “untainted by any economic conflict of interest.” * And in an industry report by The Economist, Kaiser Permanente’s care was described as promoting economy and quality care with “no financial motive to order unnecessary procedures.”† To learn more about Kaiser Permanente, call 1-800-464-4000 or visit kp.org/choosebetter.

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Central Valley Business Journal

CVBJ

April 2014

FOCUS: COMMERCIAL REAL ESTATE

Valley’s commercial real estate outlook improves Logistics, health care lead comeback By CRAIG W. ANDERSON Business Journal writer TRACY – The worst may be over for the nation’s commercial real estate industry and Anthony F. Souza of Souza Realty and Development headquartered in Tracy definitely sees the positive elements of the commercial real estate equation. After a slump that persisted for more than four years, Souza said, “I’m seeing good news as the industry’s passed the unknown stage, and we’re returning to a semblance of normalcy.” According to Souza, the office segment is still “pretty weak in some smaller city markets but larger cities are showing some stability” with ancillary businesses such as brokers and title companies remaining slow. “The marketplace is trending somewhat positively and there has been an increase in activity that began over a year ago,” said Joe Muratore, principal in NAIBenchmark, headquartered

in Modesto with an office in Stockton. “Commercial land just sat for years but now there is increased interest. We’ve sold three and have others on contract, and we’ve had calls on the remaining acreage.” He said that investors believe the market “bottomed out a year ago, the prices bottomed and Anthony Souza now is the time to seriously considering purchasing commercial land. Stand-alone office buildings are hard to come by, and a lot of money is coming off the sidelines to invest in commercial properties.” Souza said one of the hottest commercial sectors is that of “fulfillment centers such as those Amazon built in Tracy and Patterson” which coincides with research from the National Association of Industrial and

Office Properties (NAIOP). “As major retailers and e-commerce firms such as Amazon.com continue to ramp up their distribution and fulfillment networks, they are expected to be joined by building materials, appliance and furniture companies expanding their capacity as housing construction resumes in a strengthening economy,” the study said. Muratore echoed that finding “(There is) more interest in properties in the transportation corridor with Tracy, Manteca and Modesto doing much better,” he said. As a result, demand for warehouse and other industrial properties are expected to reach a zenith in 2014, according to NAIOP analysis. Souza said medical facilities are “humming along” in Tracy, Manteca and Lodi but with the Affordable Care Act now in place no one’s rushing to expand. “Office is still slow and nobody’s building office space on spec these days,” Souza added. He said the Central Valley is starting to see more single homes and “large industrial warehousing is moving up. We understand the marketplace now, but we need to have some genuine job starters.” Central Valley banks are tighter with new criteria for loans, which stopped for a time.

“They started lending again but with a new book, and we had to learn how to work under a new book of lending rules,” Souza said. He went on to say that it appears lending is slowly aligning itself with reality. Demand for agriculural land is up for permanent crops and the commercial Joe Muratore sector is seeing alltime prices for empty land, Souza said. “Of course, water is a big issue. People want land with guaranteed water, too -- a difficult accommodation in these drought years,” he said. Infill continues to struggle due to poor access, parking limitations, and freeway orientation but “it’s certainly improved over the last year or so,” said Muratore. “Downtown Modesto is improving with smaller business spaces leading the way. We’re also working with restaurant chains Papa Murphy’s and Farmer Boys, a national group new to Northern California expanding from SoCal. You’ll be hearing about them.” “Overall,” Muratore said, “most businesses are happier than they were a year ago.”

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Staffing agencies say jobs are there for those willing to work able Care Act. Agency managers still have a lot of questions about how the plans will work for them. “It’s not knowing how much it will cost and how to absorb the additional cost,” said Chavez-Dean. “It’s the money piece.” Wallace said the plan Premier Staffing had been offering doesn’t meet new ACA standards. The company is now looking at its options under the small business mandate. Tyson Scott, operations manager for Balance Staffing, which oversees about 400 employees in Stockton and Modesto, agreed changes in health care law have left agencies with a lot of questions. “It’s going to create opportunities, but it’s going to cost us,” Tyson said. While staffing agency managers agree hiring is picking up, especially in the areas of light industrial and logistics, some say they have trouble finding employees who are willing to work for entry level pay, especially if those workers had been laid off from higher paying jobs and have been living on unemployment for a while. “I’m amazed at how many people come through our door who aren’t willing to work for $8.50 or $9 an hour,” said Chavez-Dean. “The problem is the pay rate. Nobody wants to work for minimum wage.” “If you want to work and you’re a hard worker, there is work for you,” said Wallace.

By ELIZABETH STEVENS Business Journal editor STOCKTON – As the economy has slowly recovered, companies are relying more than ever on staffing agencies to fill labor gaps. Some local staffing agencies say things are picking up. “We’re very, very busy,” said Jennifer Wallace, owner of Premier Staffing in Stockton. “The economy is better.” Nationally, employment in temporary help services reached 2.7 million in February, up by 300,000 from a year ago, according to data from the Bureau of Labor Statistics. One leading trend is the use of contingent or temporary workers because it saves companies from committing time and training with an employee before they know if they will work out. “A lot of employers just want to try the person out,” Wallace said. Premier Staffing has been in business since 1977 and employs about 550 temporary workers in San Joaquin County, mostly in clerical and light industrial jobs. Its clients include Dorfman Pacific, Cost Plus World Market’s distribution center, and Waste Management. Advanced Industrial Coatings has 42 employees and more than 30 have come from Premier Staffing. It has used Premier for 15 years. The company provides coating for medical devices and semi-conductors. It’s intricate work

ELIZABETH STEVENS/CVBJ

Tong Hen, of Advanced Industrial Coating, puts components on a rack that will go into a machine to be powdercoated. He is one of many AIC employees who were hired through Premier Staffing.

and not everyone is cut out for it. “It takes a certain kind of person to do it well,” said the company’s vice president of production, Steve Hockett. “We don’t know who’s going to be able to do it until we have them in and test them out.” Devon Chavez-Dean manages Staffing Network and Quality Placement Authority, both in Modesto. She works with about 30 local companies and said many employers she works with use her agency to vet prospective employ-

ees, perform skill testing and do preinterviewing. Her company also offers an on-site management program, an option she said has worked out well considering some companies employee as many as 200 of the agencies’ workers. Staffing agencies typically take care of payroll for the employees they place. In many cases, they also offer benefits, including health care plans. If there’s an area of uncertainty for agencies, it centers around the Afford-

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2014

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April 2014

STAFFING AGENCIES

In San Joaquin and Stanislaus Counties Ranked By Number Of Temporary Employees. Ties are in Alphabetical Order.

The Hire Source 1803 W. March Lane, Ste. A Stockton, CA 95207

Titan Workforce 578 Commerce Court Manteca, CA 95336 Miceli-Watters, Staffing Partners, LLC 1316 Coffee Road, Ste. D-11 Modesto, CA 95355

IHELP, Inc. PO Box 549 Manteca, CA 95336

Availability Professional Staffing 2813 Coffee Road, Bldg A Modesto, CA 95355

Corner Stone Staffing 7474 Shoreline Drive, A-2 Stockton, CA 95219

Express Employment Professionals 1151 W. Robinhood Drive Ste. A-1 Stockton, CA 95207 Kelly Services, Inc. 1101 Sylvan Avenue Ste. A-21 Modesto, Ca 95350 Quality Placement Authority 1356 Mitchell Road, Ste. A Modesto, CA 95351 Robert Half 10100 Trinity Parkway Ste. 330 Stockton, CA 95219 Spherion Staffing 445 W. Weber Street Ste. 129 Stockton, CA 95203 Staffing Network, LLC 1356 Mitchell Road, Ste. A Modesto, CA 95351 Valley Temp Services 1150 W. Robinhood Drive Ste. 11-A Stockton, CA 95207 Volt Services Group 2291 W. March Lane Ste. D-100 Stockton, CA 95207

Medical, dental, vision, holiday, vacation, and 401k

Medical, dental and vision

Medical, dental, vision, holiday pay and 401k

None

Health insurance

Medical

3 FTEs 50-60 temps

Not at this time

11 FTEs 12 temps

B.C.Medical, dental, vision, holidays, birthday, life & accidental insurance and Credit Union

7 FTEs WND

Medical

7 FTEs NA

5 FTEs WND

yes

1977

12 FTEs 550 temps

Medical, dental, vision, holiday, and vacation pay

1984

5 FTEs 400 temps

1956

7 FTEs 300 temps

1987

6 FTEs 200 temps

1989

4 FTEs 100 temps

2002

7 FTEs 100 temps

2008

2 FTEs 50-100 temps

Trisha Miceli (209) 544-2907 2012 staffingpartners.net

Jennifer Wallace (209) 478-8500 premierstaffing stockton.com Jennifer L. Dutro (209) 957-7167 adeccousa.com Kelley Ryan Branch Manager (209) 239-0367 us.manpower.com Pam Lundquist (209) 477-6446 pridestaff.com Robert Judd Branch Manager (209) 522-3330 laborready.com Barney Kramer (209) 474-7591 thehiresource.net David Romura (209) 824-8500 titanworkforce.com

Mary Louise Applebaum (209) 825-5995 1995 IHELPInc.net Lynda Stammer, Chris Peterson (209) 527-7878 1966 aps-hr.com Selina Paniagua, Branch Manager 2003 (209) 474-9881 cornerstone-staffing.com Kevin Barth (209) 956-5668 1983 expresspros.com Tracy Lamasa District Manager 1963 (209) 577-4777 kellyservices.com Devon Chaves-Dean, Reginal Director 2001 (209) 204-8640 qpauthority.com Destinee Hough (209) 513-9883 1948 rhi.com Jason Beltz (209) 465-1500 1948 spherion.com

Other

Medical, dental, vision, life, 401K, vacation and holiday x

Medical, dental, vision, and 401k

Medical, dental, vision, life and 401k

Benefits are available for purchase

WND

x x

WND

Medical and 401k

Medical, dental vision, vacation, holiday pay

Betty Thomas (209) 473-7601 1987 valleytemps.net

5 FTEs WND

Medical, vision and holiday

Dolores Torres (209) 952-5627 1950 volt.com

8 FTEs WND

Medical, dental, vision and 401k

4 FTEs NA

Devon Chaves-Dean (209) 204-8640 1957 staffingnetwork.com

WND

Sales & Mktg.

25 FTEs 800 temps

Tyson Scott (209) 474-1379 Stockton 1997 (209) 474-3446 Modesto balancestaffing.com

Temporary Workforce Benefits Offered

Agriculture

Industrial

Health Care

Labor Ready Southwest Inc 2000 Standiford Avenue Modesto, CA 95350

Light Industrial

PrideStaff 3421 Brookside Road Ste. B Stockton, CA 95219

Government

Management

Manpower 903 W Center Street, #3 Manteca, CA 95337

Education

Accounting

Adecco Office & Industrial 1036 W. Robinhood Drive Ste. 108 Stockton, CA 95207

Administrative

Executive Search

Premier Staffing 8807 Thornton Road, Ste. L Stockton, CA 95209

Consulting/ Contract

Types of Workforce

Temp to Hire

Balance Staffing 2750 Cherryland Avenue Stockton, CA 95215 4260 Sisk Rd Ste. D Modesto, CA 95356

% of Current Workforce

Temporary

Company Name

Rank Address

Number of Full-time Top Local Executive Year Employees (FTEs) Local Phone Est. Web Address Temp Staff Number

April 2014

www.cvbizjournal.com

Central Valley Business Journal

CVBJ

April 2014

FOCUS: MANAGEMENT

CEOs learn about new state hiring incentives By KENT HOHLFELD Business Journal writer

STOCKTON – Business people who have been wondering how the state will replace the Enterprise Zone program got their questions answered at the first CEO Resource Spotlight event which addressed the governor’s Economic Development Initiative (EDI). The EDI is a set of policies that is replacing the Enterprise Zone program. Created in the mid-1980s, Enterprise Zones helped businesses in 40 economically struggling areas create jobs through a series of tax incentives. The program was phased out in the 2010 state budget in favor of the EDI. “This allows area business people to get face time with government officials and answer their questions,” said Brenna Butler Garcia, CEO of the San Joaquin Hispanic Chamber of Commerce. The San Joaquin Hispanic Chamber of Commerce hosted the CEO Resource Spotlight event with the Greater Stockton Chamber of Commerce, the Employment Development Department and San Joaquin WorkNet. “We have had a lot of questions and knew this (event) would be of interest

to our constituents,” said Garcia. One of the biggest changes will be that the state’s new initiative will not be limited to specific geographic areas. It will also focus on trying promote higher paying jobs by offering tax incentives, called California Competes Tax Credits, to qualifying jobs created that pay between 150 and 350 percent of the minimum wage. “We want to incentivize middle class wages,” said Kish Rajan, director of the Office of Business and Economic Development. “We don’t want to just subsidize minimum wage jobs.” Currently that wage floor would be $12 per hour, however there will be five pilot areas, where the wage floor will be set at $10 per hour. Those pilot areas have yet to be determined. “The pilot areas take into consideration objective information like prevailing wages in an area,” said Rajan. “We don’t want to get into having areas competing to be one of these areas.” As well as the hiring credits, there will also be sales and use tax exemption for new equipment and corporate tax incentives. All of these changes have led to a lot of questions for area business people. “We still don’t know the details

WAYNE DENNING/CVBJ

Kish Rajan, director of California’s Office of Business and Economic Development explains the state’s new hiring incentives.

and how to apply,” said Dorfman Pacific’s Vice President of Finance Bakul Patel. “We got a credit of over $2 million (through Enterprise Zones). We’ve got a lot to learn about the new incentives.” As one of the larger wholesalers of headwear and handbags in the country, Patel believes the new program will still be of help to his company. “We have been here (Stockton) for 25

years and our business is growing, so I see ourselves staying put,” said Patel. “These events help educate people about the new programs.” Other business professionals were less certain that the new program would be of as much help as the old Enterprise Zones. “It’s not going to help us, in comparPlease see CEOS Page 31

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April 2014

CVBJ

www.cvbizjournal.com

FOCUS: MANAGEMENT

Six tips for negotiating win-win solutions We all wish we were more effective negotiators, both within and outside our organizations. We negotiate daily — at home with our families, at work with our colleagues, our bosses and those we supervise, and with customers and suppliers. And often, when the negotiation has been completed and terms have been agreed upon, we feel dissatisfied or abused. A successful resolution comes when both parties feel that they have “won” and feel good about the outcome. Negotiations are destined for failure when one or both parties believe that there needs to be a “victor” and a “loser.” Viewing negotiation as a competition in which one party loses and the other wins can have negative long-term effects on the relationship, whether it be with a family member, a co-worker or a customer. Gregorio Billikopf, in his book “Party-Directed Mediation,” reminds us that it is important to focus on the long-term relationship, not the shortterm goal of winning. For example,

when an employee builds a strong case to justify an increase in salary, and then the boss gives an increase that is not meaningful, then that employee does not feel valued. The employee’s loyalty and commitment to the organization diminishes. Lack of loyalty and commitment to the organization can manifest Linda Nowak itself in poor Dean, College of Business performance, CSU Stanislaus absenteeism and job turnover. If the employer is not able to give a significant salary increase, perhaps the employer can show that the employee is valued through other means: time off, paid educational opportunities or potential for advancement.

Business Watch

Billikopf recommends we use “interest-based negotiation” in order to arrive at a suitable outcome for everyone involved. This method of negotiation requires us to step back and take time to better understand the needs of the other party. This type of negotiation takes time, patience, empathy and creativity. Here are a few tips: 1. Before you start the negotiations, know your bottom line. Evaluate all of your options. This will enable you to stay focused on outcomes and not get caught up in the process. 2. Seek to understand the other party’s needs. Use your best listening skills, and allow the other party to speak first and to explain their needs. Repeat back to the person what you thought you heard in order to confirm that you understand. Resist the temptation to interject our opinions and concerns. You will have the chance to express your viewpoints later. 3. Strive to control emotions. Anger is sometimes an expression of fear or a lack of confidence. Sometimes it

Top traits of successful family businesses When the topic of family business comes up, people often ask, “Why should I care about family businesses?” The common assumption is that family businesses are small “mom and pop” operations run out of a spare bedroom. The reality is much different. The Family Firm Institute reports that more than 80 percent of all businesses are family owned or controlled. That number does include many small businesses. However, the largest corporation in the world is a family business (Wal-Mart). Most of America’s wealth lies in family businesses. A third of the S&P 500 are family owned or controlled businesses. Family businesses dominate in almost every industry. More than likely, most of your customers have a connection to a family business. For those of you who are part of a family business, let’s hope the following traits will look familiar and you have already made them part of your strategy. If you are not part of a family business, this is a great opportunity to see how family firms (which last an average of 78 years) remain successful from one generation to the next. In the process you might also better understand one of your largest client segments. In working with family companies for 20 years, I’ve identified 10 traits that I have consistently seen in successful family (and non-family) businesses. These companies don’t just provide lip service to these values but actually make them an intrinsic part of their culture, thus ensuring continued success. This

month, we’ll examine the first five: Clear vision Successful businesses have a clear and shared vision of where they are going. The family knows where it wants to be in five or 10 years. It is important that everyone in the family understands this vision and the direction of the company. Family Peter Johnson constitution Pacific - Eberhardt A constitution School of Business clearly outlines what is important to the family, the rules of how it will operate, and how it will be successful for generations to come. This document outlines values, policies and aspirations. It is created by everyone in the family and recognizes that the family and business are intertwined. Finally, the family constitution describes the process and product that the family desires. Clear communication The No. 1 cause for disharmony in a business (family or not) is poor communication. Successful family businesses understand that clear communication is critical to their success but they also realize that open communication (encouraging family and management to get issues on the table and not let them simmer) is also important. Develop the next generation

Clear Vision

Every organization should continually work on developing its next generation of leadership, and with family businesses it is literally the next generation. Successful families are always looking for the diamonds in the rough: individuals who are passionate, willing to work hard, and show a sense of focus and direction. The job is to engage them and help them develop a career path built on their own passions. If a daughter or nephew is interested in the law, maybe a future family attorney is in the cards. The important thing is that the skills and aptitude that are a necessity to the business are identified within the next generation and the family is committed to the success of these future leaders within the business. Employment policy Employment in the family business is not a right but a privilege. Many relatives enter the family business because it is available, flexible, and easy (to get hired and stay employed). Successful family firms have employment policies that state who can enter the business, what education and experience they must have, at what level of the business they will enter and what their compensation will be based on industry comparisons rather than position in the family. An example would be: to enter our business, family members will apply for an existing open position and must have a college degree with three years of experience within the industry at another firm. During employPlease see CLEAR VISION Page 31

can stem from not feeling respected or valued. Negative emotions can get in the way of finding creative resolutions to an issue. Don’t threaten, don’t name call, and don’t walk away. 4. Break down bigger issues into smaller ones. Why has the employee asked for a raise? Is it just about money or is the employee looking for a sign that their work is appreciated? Why is a client hesitant to renew a contract? Is it a service issue? Price? System reliability? 5. Maintain integrity. Trust plays an important role in arriving at a successful resolution and in preserving long-term relationships. Will you follow through on your agreement? Are you being totally transparent and honest? It is not wise to walk away from a negotiation feeling that you “took advantage” of the other party. 6. Look for sustainable solutions. Don’t just look for a compromise. Work toward solutions that will have longterm benefits for all parties. This may take patience, preparation and creativity. Be neither the victim nor the aggressor. Keep insisting on working toward a resolution that will meet the needs of all parties, or you may be revisiting the problem again very soon.

Central Valley Business Journal

April 2014

BUSINESS PARKS

In San Joaquin and Stanislaus Counties. Ranked by Total Leasable Square Feet. Ties are Listed in Alphabetical Order. Rank

Indusstrial Business Park Name Location

Local Contact Phone Web Address

Total Leasable Square Feet

Space Available

Lease Amount Per Square Foot

Types of Business in Park

Number of Companies in Park

Central Valley Industrial Park Zephyr Street Stockton

Ryan McShane, (209) 476-2910 cbre.com

5,348,914

Yes

Varies

Industrial Warehouse Distribution

Airport Gateway Center Performance Drive Stockton

Kevin Dal Porto (209) 476-2952 cbre.com

5,000,000

Yes

Varies

Industrial Warehouse Distribution

Patterson Pass Business Park Schulte Road Tracy

Tyson Vallenari (209) 476-2920 cbre.com

4,390,212

Yes

Industrial Warehouse Distribution

Stonebridge Industrial Park MacArthur Drive Tracy

Blake Rasmussen (209) 476-2954 cbre.com

4,327,449

Yes

Varies

Industrial Warehouse Distribution

Stockton Airport Business Center Boeing Way Stockton

Blake Rasmussen (209) 476-2954 cbre.com

3,824,573

Yes

Varies

Industrial Warehouse Distribution

Beard Industrial District E. Yosemite Boulevard Modesto

Blake Rasmussen (209) 476-2954 cbre.com

3,800,000

Yes

Varies

Industrial Warehouse Distribution

50+

Crossroads Commerce Center Harlan Road Lathrop

Kevin Dal Porto (209) 476-2952 cbre.com

3,096,166

Yes

Varies

Industrial Warehouse Distribution

Prologis Park Tracy Pescadero & Paradise Avenue Tracy

Kevin Dal Porto (209) 476-2952 cbre.com

1,361,130

Yes

Industrial Warehouse Distribution

Lathrop Industrial Park Shideler Parkway Lathrop

Kevin Dal Porto (209) 476-2952 cbre.com

1,337,196

Yes

Varies

Industrial Warehouse Distribution

Oates Logistics Center Sperry Road Patterson

Blake Rasmussen (209) 476-2954 cbre.com

1,205,000

Yes

Varies

Industrial Warehouse Distribution

California Logistics Center Harlan Road Lathrop

Kevin Dal Porto (209) 476-2952 cbre.com

1,188,261

Yes

Varies

Industrial Warehouse Distribution

Newcastle Logistics Center Newcastle Road Stockton

Tyson Vallenari (209) 476-2920 cbre.com

750,000

Yes

TBD

Industrial Warehouse Distribution

Office or Mix of Office/Industrial Business Park Name Location

Local Contact Phone Web Address

Total Leasable Square Feet

Space Available

Lease Amount Per Square Foot

Types of Business in Park

Number of Companies in Park

2,000 acres

Yes

$0.22

Office/Industrial

120+ 50+

2,307,847

Yes

Varies

Office/Industrial Warehouse Distribution

Rank

Varies

Port of Stockton Washington Street Stockton

Keystone PACIFIC Business Park Keystone Pacific Parkway Patterson

Kevin Dal Porto (209) 476-2952 cbre.com

Stockton Airport Business Center Transworld Drive Stockton

Brian Peterson (209) 476-2999 cbre.com

248,428

Yes

Varies

Office

Main East Main Stockton

Brian Peterson (209) 476-2999 cbre.com

247,000

Yes

Varies

Office

AG Spanos Business Park 10100 Trinity Parkway Stockton

Brian Peterson (209) 476-2999 cbre.com

150,000

Yes

Negotiable

Office

Lathrop Business Park 17000 Harlan Road Lathrop

Brian Peterson (209) 476-2999 cbre.com

131,400

Yes

Negotiable

Office

Dâ&#x20AC;&#x2122;Arcy Business Park 17300-17918 Murphy Parkway Lathrop

Mike Goldstein (209) 475-5106 colliers.com/stockton

129,000

Yes

$0.30-$0.50

Office/Industrial

El Dorado El Dorado Street Stockton

Brian Peterson (209) 476-2999 cbre.com

87,197

Yes

Varies

Office

Debbie Calli (209) 463-2362 portofstockton.com

April 2014

www.cvbizjournal.com

±750,560 SF DISTRIBUTION CENTER W/FREEZER & COOLER CAPACITY 4650 NEWCASTLE ROAD :: STOCKTON, CA

FOR LEASE OR SALE

NEWCASTLE LOGISTICS CENTER PROPERTY

IGHLIGHTS

• Turn Key Class A, State-of-the-Art Facility • Cooler, Freezer and Ambient Storage • Extensive Cold Storage Improvements • Easily Converted to Bulk, Dry Storage Warehouse • Flexible Facility Layout Allows for Expansion to Over ±1,150,00 SF

BUILDING

FEATURES

• 10° Freezer SF: ±20,400 SF • 34° Cooler SF: ±140,500 SF • 55° Cooler SF: ±51,300 SF • Ambient Storage: ±507,157 SF • Total Oﬃce: ±31,203 SF • Acres: ±68.59

SEEFRIED INDUSTRIAL PROPERTIES, INC. FOR MORE INFORMATION PLEASE CONTACT

Tyson Vallenari

Blake Rasmussen

Vice President Lic. 01480887 209.476.2920 tyson.vallenari@cbre.com

Senior Vice President Lic. 01010250 209.476.2954 blake.rasmussen@cbre.com

Kevin DalPorto, Porto,SIOR SIOR Kevin Dal

1776 W. March Lane, Suite 170 Stockton, CA 95207 T 209.476.7800 F 209.476.2960 www.cbre.com/stockton

Senior Senior Vice Vice President President Lic. 01212935 01212935 209.476.2952 kevin.dalporto@cbre.com kevin.dalporto@cbre.com

BEARD BeardINDUSTRIAL DISTRICT

EXC LUS I V ELY LI S T ED B Y:

www.cbre.com/BeardIndustrialDistrict

B e a r d L a n d I m p r o v e m e n t C o m p a n y :: M o d e s t o , C a l i f o r n i a

I N D U SAcres T R I A L of D I SBuild-to-Suit TRICT ±280 Opportunities Beard MODESTO, CALIFORNIA

www.cbre.com/ BeardIndustrialDistrict

B e a r d L a n d I m p r o v e m e n t C o m p a n y :: M o d e s t o , C a l i f o r n i a

INDUSTRIAL DISTRICT

YOSEMITE BLVD

GARNER RD

McCLURE RD

Modesto City/County Airport

Modesto & Empire Traction Company

P.O. Box 3106 Modesto, CA

R A IL W

BNSF

MARIPOSA RD

VD BL

TUOLUMNE BLVD

M 9TH ST

PROPERTY

ITC

FINCH RD

IGHLIGHTS MITCHELL RD

www.cbre.com/ BeardIndustrialDistrict

• ±3 ACRE - ±115 ACRE SITES AVAILABLE FOR BUILD-TO-SUIT • ±2,000-ACRE Industrial Business Park • Centrally Located in the Heart of the Central Valley • Industrial Warehouse Distribution, Manufacturing & Related Space Totaling over ±9 Million Sq Ft. • Home to Several Fortune 500 Companies • ±80 Miles to the Port of Oakland • BUILT-TO-SUIT Opportunities (±25,000 Sq. Ft. to over ±1 Million Sq. Ft.) • Modesto Irrigation District Electrical Service • Abundant Sewer and Water Capacity E HATCH RD E HATCH RD • Zoned M (Industrial Manufacturing), Stanislaus County • Transload and Logistics Solutions Provided by M&ET • Rail Served Daily by M&ET with Connection to BNSF & UP Railroads MORE INFORMATION | EXCLUSIVE LISTING AGENTS: Owned &FOROperated by:PLEASE CONTACTTransload & Logistics Blake Rasmussen Kevin Dal Porto, SIOR Ryan McShane, SIOR Solutions Provided by: Senior Vice President Senior Vice President First Vice President Lic.FOR 01010250 Lic. 01212935 MORE INFORMATION PLEASE CONTACT | +1 209 476 2954 +1 209 476 2952 blake.rasmussen@cbre.com kevin.dalporto@cbre.com Blake Rasmussen Kevin Dal Porto,

Beard Land Improvement Senior Vice President Lic. 01010250 Company +1 209 476 2954

Tyson Vallenari, LEED AP Senior Associate Lic. 01295796 Lic. EXCLUSIVE LISTING01480887 AGENTS: +1 209 476 2910 +1 209 476 2920 ryan.mcshane@cbre.com tyson.vallenari@cbre.com SIOR Ryan McShane, SIOR Tyson Vallenari, LEED AP

M&ET Railroad Senior Vice President

FOR MORE INFORMATION Senior Associate Lic. 01480887 PLEASE CONTACT

Blake Rasmussen

Senior Vice President Lic. 01010250 First Vice President determine to your satisfaction the suitability of forthe your property needs. All logos displayed on aerial areofthe their property respective owners, used solely to indicate sses that associated businewith those marks are located inayed buildings on thedispl map.209.476.2954 All Rights Reserved. 70530139–43534 Lic. 01212935 Lic. 01295796 blake.rasmussen@cbre.com +1 209 476 2952 +1 209 476 2910 +1 209 476CA 2920 P.O. Box 3106 Modesto, 95353 blake.rasmussen@cbre.com

kevin.dalporto@cbre.com

ryan.mcshane@cbre.com

tyson.vallenari@cbre.com

Kevin Dal Porto, SIOR Senior Vice President Lic. 01212935 209.476.2952 kevin.dalporto@cbre.com

EXC LUS I V ELY LI S T ED B Y:

Central Valley Business Journal

April 2014

Port of Stockton

Trading Partners

Commodities and Trading Partners Ranked by Metric Tons for 2013

Inbound

Commodities Inbound

Type of Cargo 2013

2013 Metric Tons 2012 Metric Tons

Trinidad

Anhydrous Ammonia, Liquid Fertilizer

336,179

287,182

Australia

Cottonseed, Molasses, Bulk Rice

266,078

226,482

Norway

Bulk Fertilizer, Bagged Fertilizer, Liquid Fertilizer

250,316

198,884

Indonesia

Anhydrous Ammonia, Bulk Fertilizer

58,728

105,645

Malaysia

Bulk Fertilizer, Food Grade Oil

74,758

102,665

Thailand

Molasses, Project Cargo

31,137

100,844

Mexico

Barite

52,232

China

Bulk Fertilizer, Steel Products

23,620

82,896

Netherlands

Bagged Fertilizer, Bulk Fertilizer,Project Cargo, Steel Products

52,635

82,866

2013 Metric Tons

2012 Metric Tons

Liquid Fertilizer

493,795

459,316

Molasses

279,523

335,143

Bulk Fertilizer

196,255

267,426

Cottonseed

180,270

122,238

Anhydrous Ammonia

168,874

180,809

Steel Products

96,985

55,499

Cement

76,000

75,175

Grain

60,755

27,394

Vietnam

Molasses

42,141

79,726

Barite

52,232

63,903

Japan

Bulk Cement/Slag, Steel Products

77,847

77,765

Food Grade Oil

47,040

Korea

Steel Products

79,878

52,785

Bulk Rice

27,437

36,576

Estonia

Liquid Fertilizer

31,622

Bagged Fertilizer

15,656

11,038

Hawaii

Molasses

26,517

42,034

Project Cargo

247

15,621

Oman

40,840

Other

Palm Oil

Tapioca Pellets

El Salvador

Molasses

44,752

27,532

Taiwan

Molasses

5,800

39,115

27,000

Lithuania

Liquid Fertilizer

49,034

27,541

Bulk Sand

22,056

Argentina

Grain

60,755

27,394

Bagged Sugar

8400

Panama

26,985

Windmills

3,570

Columbia

Molasses

16,002

Bagged Sand

1200

Germany

Liquid Fertilizer, Project Cargo, Steel Products

24,270

1,695,111

1,739,896

Guatemala

Molasses

39,331

26,941

Chile

Bulk Fertilizer, Bagged Fertilizer

16,204

20,194

Nicaragua

Molasses

9,805

18,475

Qatar

Bulk Fertilizer

18,691

6,779

72,637

1,695,111

1,739,896

Total

Outbound

2013 Metric Tons

2012 Metric Tons

Coal

772,737

61,904

Sulfur

223,289

240,064

Iron Ore

103,956

635,771

Beet Pellets

96,000

127,340

Paddy Rice

66,300

Bagged Rice

59,986

63,003

Wheat

26,620

Tire Chips

7,621

943

358

10,000

Total

1,357,452

1,138,440

Grand Total

3,052,563 *

2,878,336 *

Project Cargo Bulk Rice

Other

Total

Project Cargo includes heavy equipment, wind energy components, transformers and oil refinery equipment.

Outbound

Type of Cargo 2013

China

Bulk Iron Ore, Bulk Sulfur

176,180

681,273

Japan

Bagged Rice, Beet Pellets

217,999

179,943

Mexico

Bulk Coal, Bulk Sulfur

500,115

67,625

Hawaii

Bulk Coal

32,398

30,056

Brazil

Bulk Sulfur

74,852

64,450

Guatemala

Bulk Coal, Project Cargo

190,259

Columbia

Wheat

26,620

64,589

66,300

10,000

21,248

41,350

18,898

358

357

31,022

Total

1,357,452

1,138,440

Grand Total

3,052,563 *

2,878,336 *

Australia Turkey

Port Calls

2013

2012

Vessels

181

182

Barges

* Does not include pipeline Researched by Danette Conley 03/2014

Paddy Rice

New Guinea

Facility Statistics

2013 Metric Tons 2012 Metric Tons

Chile

Bulk Coal

Canada USA

Project Cargo

Indonesia

Bulk Sulfur

April 2014

www.cvbizjournal.com

Take the less congested highway.

Save time and money with the Marine Highway. The M-580 barge service is the faster, cheaper alternative to trucking containerized goods between Oakland and Stockton. Your business can: Reduce Costs We offer competitive rates by reducing the cost per ton. Plus, containers can be max loaded.

Improve Logistics We handle the entire move from ocean vessel to participating terminal. Quick turnaround times at Port of Stockton gates.

Relieve Congestion With every round-trip to Oakland, 600 trucks are removed from I-580 reducing harmful pollutants by 80%. Use the Green Trade Corridor to â&#x20AC;&#x153;Greenâ&#x20AC;? your business.

To learn how your business can benefit from the Marine Highway, contact the Port of Stockton Operations Department at 209-946-0246 or visit M-580.com. Chair Victor Mow. Vice Chair Gary Christopherson. Commissioners Stephen Griffen, R. Jay Allen, Elizabeth Blanchard, Michael Patrick Duffy, Sylvester Aguilar and Port Director Richard Aschieris.

Central Valley Business Journal

April 2014

Biomass, bats and butterflies

Port of Stockton takes creative approach to green business By CRAIG W. ANDERSON Business Journal writer STOCKTON -- As you drive along Stockton’s crosstown freeway, you may have wondered about the plume billowing from the Port of Stockton. It’s coming from the new biomass power plant, which was transformed from a coal-burning plant to the cleanest burning facility of its type in California. “It’s a wet scrubber and that’s water vapor,” explained John Reis, manager of Commercial Operations, Wholesale Power and Renewables for DTE Stockton. “And the plant is setting standards of clean power for California and the rest of the country.” Stockton is home to one of two coal repower plants in California, but the Michigan-based company operates more than 30 power plants in the state and employs more than 10,000 workers nationwide, Reis said.

When it burned coal, the plant was known as San Joaquin County’s biggest polluter. It now burns wood biomass and sets the standard for clean air emissions with its state-of-the-art air quality control equipment. “The Port of Stockton is thrilled to have the cleanest power plant in California and the nation producing electricity here,” said Port Director Rich Aschieris. “DTE is a terrific company that has brought 35 full time and 100 dedicated indirect living-wage jobs to the Port and the county.” The Port of Stockton is no stranger to coming up with creative environmental solutions, according to Senior Deputy Port Director of Trade and Operations Mark Tollini. “Our barn owls have lived in nest boxes on the property since the summer of 2006 and we encourage them to Please see PORT OF STOCKTON Page 28

The DTE biomass power plant at the Port of Stockton can burn up to 1,200 tons of wood per day and releases stea

Academy of Truck Driving

California Agri Inspection Co., Ltd

ACX Pacific Northwest, Inc.

California Portland Cement

ADA Scales Inc.

Capital Feed

Advanced Polymer Technologies

Carry Transit-East

Alfalfa Supply Inc.

Carry Transit-West

John Allen

Catch All Baseball

All Fire Protection Services

CenCal Recycling, LLC

American Biodiesel, Inc.

Central California Railcar Repair

American Containers, Inc.

Central California Traction Company

American River Ag., Inc.

Chemstation of Northern California

Jennifer & Ricky Anderson

Child Abuse Prevention Council

Best Logistics, Inc-East

City of Stockton

Blair Grain Company

Clearwire, LLC

Bleu-Mews Creative

Club Stockton Volleyball

Buckeye Terminals, LLC

C-Trans

Building Materials Distributors

Custom Spraying

Calamco

CVCY

Calaveras Cement Company

D.B. Western

April 2014

www.cvbizjournal.com

The Google Barge has been moored on Rough and Ready Island since March 6.

BUSINESS JOURNAL PHOTO

Google brings mystery barge to Port of Stockton

am into the atmosphere.

ELIZABETH STEVENS/CVBJ

PORT OF STOCKTON TENANTS

STOCKTON — The mysterious Google barge has a new home at the Port of Stockton. The barge left San Francisco Bay March 6 in order to comply with a Jan. 31 order that found Google didn’t have the proper permits to build the four-story vessel there. It is now moored at Rough and Ready Island. “It’s been a busy six months for our barge and it’s grown tired of all the attention, so we are moving it to Stockton where it can have a break, enjoy the city’s delicious asparagus, warmer climate and get a bit of rest before its next chapter,” Google joked in a statement it issued to media. Port Director Richard Aschieris said he doesn’t know what Google plans to do with the barge while it’s here. In fact, he believes it’s empty. “If you look at it, you can see it’s riding high. Even with all those containers on it. There’s nothing in them,” he said. Aschieris added that if Google actually restarts construction at the Port, the company may hire workers in San Joaquin County.

Google has said the barge is meant to be a showplace for new technology and products. Here’s what other business leaders think about the Google barge: “Many people in this state and even in this region have little knowledge or appreciation for what an important part of our community, state, nation and world the Port of Stockton is! The buzz of the barge placed the Port and Stockton in a very positive spotlight which is a good thing!” -- Doug Wilhoit, Greater Chamber of Commerce CEO “There’s a mystery to it. It will be interesting to see, can we have an extension beyond the six-month lease? It’s just good to have the Google barge here and maybe it will stimulate other tech companies similar things in Stockton. If they’re able to save money, why not?” -- Leandro Vicuna, Downtown Stockton Alliance CEO “It’s an international company coming to our city. It’s wonderful. I just think it’s fun. I hope they come to the festival. Obviously they love asparagus because they said so.” -- Kate Post, Asparagus Festival Executive Director

Ramsey Express

Tamarii Matairea Dance Studio

Sunshine Cement Inc.

Delroy’s Deli

L-1 Enrollment Services

Rarin Federal Credit Union

TBM Sand & Storage Logistics

Delta Yacht Club

Lesovsky-Donaldson Architects

Recology Stockton

Tesoro Logistics Operation

Dement Farms

Lovotti Air

Rice Terminals

Tradco Inc.

Department of Water Resources

MacSpecialties

Riverside Cement

Transhold Inc.

Door Fabrication Services, Inc.

Marine Terminals Corp.

Roof Rangers

Transload Solutions LLC

DTE Stockton, LLC

Martin Operating Partnership

Royal White Cement

Transmarine Navigation

Ferguson Enterprises, Inc.

MetroPCS

RubyNova Inc.

Turner Photography

Gilton Resources

Metropolitan Stevedore

Stockton Civic Theatre

Turner Basin Business Park

Giovannoni Farms

MT Railcars, Inc.

Stockton Police

UDB Enterprise

H.J. Baker & Bro., Inc.

North American Composites

Stockton Police Association

University of the Pacific

Hendrix Forklift Service

Northern Calif College of Construction

Stockton Professional Firefighters

U.S. Border Patrol

Holt Repair & Manufacturing Inc.

Onions Etc.

San Joaquin Sheriff

Weber Point Yacht Club

Junior Aid of Stockton

Online Logistics

SFPP LP

Westway Terminal

Karl Ross Post

Pacific Ethanol

Sheedy Drayage Co.

Westway Trading Corporation

Keep on Trucking

Pelton-Shepherd Ind.

Soli-Bond Inc.

Weyerhaeuser Company

Kloeckner Metals, US

Pereira Studies

SS Marine

Wilmar Oils & Fats LLC

Kustom Materials Laminators, Corp.

Quality Office Liquidation

Nustar Energy

Yara North America, Inc East SOURCE: Port of Stockton

Central Valley Business Journal

CVBJ

PORT OF STOCKTON Continued from Page 26

stay because they’re a very effective, environmentally friendly and costefficient method to control the rodent population,” Tollini said. He added that each owl in a box consumes about 3,000 rodents annually. “We have six owl families making their home in various nest box locations around the east and west complexes.” Port representatives estimate that with 11 active boxes the owls are devouring more than 20,000 rodents every year. The Port also uses bat roosting boxes to curtail insect activity. “Rat poisons are being banned, so bats are the natural way to reduce insect populations,” Tollini said of the program that began in 2012. According to the Fish and Wildlife Service, a colony of bats with about 100 members will devour more than 600 million insects in a 200-day feeding season which provides insect control and plant pollination. The Port is also restoring habitat for the endangered Lange’s Metalmark Butterflies in the Antioch Dunes in the San Francisco BayDelta area with dredged sand to help stimulate population growth for the nearly extinct butterfly. But perhaps the most visible environmental effort is the biomass plant. Power from the DTE facility produces 45 megawatts of clean, renewable energy, enough electricity to meet the

needs of 45,000 homes per year. The electricity is sold to PG&E to help the utility to meet its government mandated renewable portfolio requirements under a long-term contract. “Our fuel comes from a variety of sources, including logs from forest thinning, tree/orchard trimmings, and agricultural waste such as nut shells and fruit pits. Orchard wood is great,” said Reis. Reis said California uses the most biomass of any state and that “other plants will have to follow our standard.” The material is carried from 30-foot high piles of chipped wood to the main facility by a series of huge conveyor belts that cross Washington St. about 40-feet above the ground. The conveyor belts were changed from those used to carry coal to a type that accommodates chipped orchard trees and urban wood waste from which metal has been removed by large magnets. “We recycle whatever metal is retrieved from the wood,” Reis explained. A wood burning vibrating stoker grate five feet tall and 30 feet long burns the wood at 700-800 degrees which heats a boiler that turns the turbines that generate electricity. “Air quality control equipment is a major part of the plant’s footprint,” Reis said and the gigantic maze of pipes, grates, steel support beams, tanks, immense ducts, and boiler supported his explanation. The power plant itself covers four acres and the wood storage area, un-

PROUD PORT OF STOCKTON TENANT PROUDPORT PORTOF OFSTOCKTON STOCKTONTENANT TENANT PROUD PROUD PORT OF STOCKTON TENANT PROUD PORT OF STOCKTON TENANT

SERVICING ALL YOUR RAIL CAR TO SERVICINGALL ALLYOUR YOURRAIL RAILCAR CARTO TO SERVICING SERVICING ALL YOUR RAIL CAR TO SERVICING ALL YOUR RAIL CAR TO TRUCK TRANSFER NEEDS TRUCK TRANSFER NEEDS TRUCK TRANSFER NEEDS TRUCK TRANSFER NEEDS TRUCK TRANSFER NEEDS

April 2014

PHOTO COURTESY: STEVEN P. BENDER

Six owl families live around the Port. Each owl consumes about 3,000 rodents every year.

loading yard and the plant cover 20 acres and the whole is designed to produce carbon-neutral biomass power to help the state meets its AB 32 mandated greenhouse gas emissions goals. And to reach the legislated goals and to generate a return on DTE’s $100 million cost to repower the coal facility, the plant burns and churns out water vapor 24 hours a day, seven days a week. Reis said the permitting and

regulations “are different and more difficult in California than in other states. It took 18 months to get an air permit. The plant was originally scheduled to open in 2013 and PG&E was eager for us to come online.” DTE Stockton is an affiliate of DTE Energy Services of Ann Arbor, Michigan which has completed similar coal plant repowerings in Bakersfield and Cassville, Wisconsin.

PROUD PORT OF STOCKTON TENANT PROUDPORT PORTOF OFSTOCKTON STOCKTONTENANT TENAN PROUD PROUD OF STOCKTON TENAN PROUD PORT PORT OF STOCKTON TENANT

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April 2014

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Central Valley Business Journal

April 2014

Entrepreneurs dazzle at San Joaquin Challenge By KENT HOHLFELD Business Journal writer STOCKTON – Two area businessmen saw their endeavors take a big step forward March 26 when they took home the top spots in the San Joaquin Entrepreneur Challenge at the Stockton Golf and Country Club. Mark Coons, of Instant Access ISPDefense Weapons Storage, won the first place prize of $7,000 in cash and $10,000 in business services. Nathaniel Montgomery, and his multi-use ties, took home $3,000 in cash and $4,000 in business services for second place. Aside from the cash, the winners will receive services from area businesses that include help with marketing, legal, bookkeeping and business coaching. “This will help prevent a lot of debt,” said Coons. “The added money will help a lot.” Coons won the top prize to promote his home defense gun storage locker. The device is used to keep a home defense gun locked up safely, while still giving the owner quick access to it with a special code. “This is mostly for guns that are for home defense,” Coons said. “Hunting weapons are generally kept in a gun safe that are harder to get into. This allows people to get at their weapon more quickly.”

WAYNE DENNING/CVBJ

Mark Coons placed first in this year’s San Joaquin Entrepreneur Challenge for his start-up idea, a home defense gun locker.

He said that with the added capital he will now be able to produce the first 30 units, which he intends to take to area gun shows. “It pencils out at 30 units,” said Coons. “If those first 30 sell, we’re off and running. If I come home with 29 units, well, maybe not.” The March 26 competition saw the second and third rounds of the contest. The first round, which was held March 5, narrowed the field from 15 contestants to eight. The final eight

went through a second round in which they had five minutes to explain their various products. That eight was narrowed to a final four, which then went through a “boardroom” competition in which judges asked the contestants a variety of questions ranging from financing to the how they saw their company’s future. The judges and audience members then voted for the winners. “Everyone believes that their product is going to make money,” said judge Gil-

lian Murphy, dean of Applied Science, Business and Technology at San Joaquin Delta College. “The contestants have to separate their head from their heart and prove to us and the audience that their product can make money.” Coons and Montgomery were the most successful at achieving that during the three-round competition. Montgomery said that he would put his second-place winnings to use increasing the number of ties he can make. The ties can be used to secure anything from trash bags to loose electrical cords. “This is the end of the beginning,” said Montgomery. “We have 20 Ace Hardware stores ready and look to have our ties in 45 stores soon. This will definitely help.” The Challenge was organized through a partnership of the San Joaquin Angel$, University of the Pacific, San Joaquin Partnership, Stanislaus Economic Development and Workforce Alliance, the Business Council, Inc., NEC Small Business Development Center - San Joaquin Delta College and the Alliance Small Business Development Center. For small businesses like Montgomery’s, even a small addition of capital and service can make a big difference. “This will allow us to get more material,” he said. “This is a big push. I am just really happy.”

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April 2014

CVBJ

www.cvbizjournal.com

FOCUS: ECONOMIC DEVELOPMENT

Helping Stanislaus County businesses build their strengths Special to the Business Journal By DAVID WHITE Stanislaus Alliance CEO In order to provide exceptional customer service to local businesses in Stanislaus County, the Stanislaus Economic Development and Workforce Alliance has launched an intensive business visitation program. It will help us develop a relationship of trust with all our business leaders, detect and resolve issues that are impeding business growth. It will also help us gather aggregate data that will help us work with elected officials and service providers to make improvements in the local business climate. The feature component of our business visitation program is an in-depth survey with our businesses. We hope to learn their attitude about our workforce, education system, transportation infrastructure, community services. We will learn about their products and services. The survey is scientific, so we will learn about the company’s value and growth potential to our local economy. After we do a few hundred of these surveys, we will have a better feel about the bedrock issues that are thwarting

CVBJ

CEOS Continued from Page 20

ison to the Enterprise Zones, hardly at all,” said Craig Walters, president of Premier Finishing. Walter said that his company, which focuses on product finishing work such as painting, liquid coating and light mechanical assemblies, has benefitted from the Enter-

CVBJ

CLEAR VISION Continued from Page 21

ment elsewhere they will have received at least two promotions. Where feasible family members report to non-family members. Family businesses are the lifeblood of our economy. When they are doing well, the economy is doing well. Like-

business growth. We will then share that data with our leadership. We are already off to a great start. We have surveyed nearly 40 companies and we are already seeing trends. More than half of the companies surveyed are planning expansions in which they will make investments and add new jobs. David White We are partnering with the local chambers of commerce, elected officials and city staff to do the surveys. We want our partners to hear what our business leaders have to say. When we conduct the surveys, we have two interviewers on each call: a member of our Alliance staff and a partner. Our strategy is to do our best to serve local companies first and improve the local business climate. We want to make Stanislaus County a more attractive location for outside investment. We would like to see Stanislaus County become the most business friendly county in the state. Recently, I had the opportunity to visit a small company named Bonan-

za Tortillas in Modesto. They moved here in 2000 from San Jose in search of a better business climate and lower operating costs. They make tortillas and chips of every variety and sell them to Mexican restaurants and Latino markets throughout the region. Many of their customers are in the Bay Area. Accompanying me on the visit was Modesto City Councilmember Tony Madrigal. Tony and I sat down with owners Felix and Socorro De La Torre and learned quite a bit about their company. We realized that with a little help from the Alliance Small Business Development Center, Bonanza could develop new markets and sales opportunities. We also learned that they could utilize our Alliance Worknet job training services. This little gem of a company is very scalable, and if they develop new markets, they will add new jobs. There are dozens of companies in the region like Bonanza that have tremendous growth potential. We can work with them and help them utilize our resources. With our focus of building upon Stanislaus County’s strengths, we are developing a cluster economic development strategy to focus on and promote our clusters such as food processing,

ag tech, manufacturing, healthcare and logistics. We are proud to have a strong food processing industry in Stanislaus County. We are fortunate to have the headquarters of world class companies like Gallo, Stanislaus Foods and Foster Farms Dairy. How can we work with companies within our clusters to attract suppliers and peers? When I was in Colorado Springs, we worked with our sports cluster to develop a cluster industry team of volunteers who were all experts in that industry. We gave the team a charter and asked them to help us grow, support and communicate the cluster. We were able to attract a software firm from Australia that produced sophisticated cloud-based software programs for the amateur sports industry. When executives of the firm came to visit the town, we had a special reception in their honor. Several members of our Sports cluster team were present and helped persuade them to relocate to Colorado. It sends a very big message when companies see that a whole community and region are working together for economic development. Economic development is a team sport. We want everyone engaged. It starts by taking care of our local companies.

prise Zones since 2000. He said that he specifically moved his business from Lodi to Stockton because it was in an Enterprise Zone. “It helped us reduce our state tax,” Walters said. “At times if we didn’t have that help we would be losing money.” He said that his business, with revenues between $2 and $10 million may fall into a hole that the new incentive programs won’t help. He also

believes there is a danger that small businesses like his will be left behind in favor of larger operations. “We employ 100 people and are in a very competitive business,” said Walters. “We need all the help we can get. It’s disappointing that the new program doesn’t target companies like mine.” Rajan believes that, once implemented, small businesses won’t be left

behind by the new program. “It’s a change from the zone days,” said Rajan. “We believe that this program will have broader growth. We specifically carved out large amounts that have to be, by law, targeted at small businesses. We believe that because of the general uplift that will come from these programs that small businesses will be a big beneficiary of these programs.”

wise, working with the ones you love on a daily basis to build financial security and leave a legacy in your community is one of life’s greatest joys. Unfortunately, when things are not going well in a family business there is so much more at stake than quitting a job or firing an employee. I have seen brothers who were incredibly close sever their relationship

because of business disagreements. I have also seen families withhold the grandchildren as a form of punishment to the senior generation. Healthy family firms create a clear vision, have a strategy in how they are going to operate and then openly communicate that plan throughout the family and business. Join me next month when we discuss

traits 6-10. Until next time, make it a great day towards your best year ever! Peter Johnson is the Director of the Westgate Center for Leadership and Management Development and the Institute for Family Business in the Eberhardt School of Business at the University of the Pacific. He welcomes your feedback and can be reached at 209.946.3912 or peterjohnson@pacific.edu.

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Central Valley Business Journal

April 2014

GREEN COMPANIES

In San Joaquin and Stanislaus Counties. Ranked by Total Number of Employees. Ties are Listed in Alphabetical Order.

Company Name Address

Top Local Executive Total Phone Number of Web Address Employees

Services and Products

Headquarters Year Est. Locally

Richard Hanna (209) 939-0405 evi-usa.com

Electric vehicles

Jeff Ruoss, Facility Manager (209) 837-4423 covantaholdings.com

Solid waste transformation and electricity sales

ConSol 7407 Tam Oâ&#x20AC;&#x2122; Shanter Drive Stockton, CA 95210

Mike Hodgson (209) 473-5000 Fax (209) 474-0817 consol.ws

Energy consulting, building audits, energy and green program management

Pacific Ethanol Stockton 400 Capitol Mall, Ste. 2060 Sacramento, CA 95814

Neil Koehler, CEO (209) 235-0370 pacificethanol.net

Ethanol fuel for transportation. Feed for dairy and feedlots

Tri Valley Recycling, Inc. 142 S. Aurora Street Stockton, CA 95202

Paul Owens (209) 463-7600 trivalleyrecyclinginc.com

Electronic waste collections and pickup

Stockton 2007

Modesto Junk Company 1425 Ninth Street Modesto, CA 95353

Harvey Highiet (209) 522-1435 modestojunk.com

Full service scrap yard and recycling center Highest prices paid for aluminum, brass, copper, iron, stainless steel and CRV aluminum cans, glass and plastic

Modesto 1920

Onsite Electronics Recycling 2331 Teepee Drive Stockton, CA 95205

Janice Oldemeyer (209) 234-7994 onsiteelectronicsrecycling.com

Recycling of electronics including: computers, TVs, printers, VCRs, stereos, cell phones and more and all materials recycled in Stockton

Stockton 2004

Green Planet 21 501 Port Road, Ste. 22 Stockton, CA 95203

Tim Erlandson, GM (209) 546-8000 greenplanet21.com

Recycling service, primary purchase programs include paper, cardboard, stretch film and plastics

Stockton 2004

Community Fuels 809-C Snedeker Avenue Stockton, CA 95203

Lisa Mortenson , CEO (209) 466-4823 communityfuels.com

Biomass-based diesel fuel (renewable fuels) and glycerin

Stockton 2005

The Newark Group Recovery & Recycling 800B West Church Street Stockton, CA 95203

Eddie Tolentino, VP, GM (209) 464-6590 newarkgroup.com

Complete biomass receiving and storage facility with state of the art environmental cleaning system

Cranford, NJ 1997

Fryer & Assoc. End of Life Recycling 5132 Castemain Drive Salida, CA 95368

Alan Fryer (209) 575-1949 endofliferecycling.org endofliferecycling.com

Consult with businesses to maximize their recycling efforts to avoid/reduce state penalties. Contracts for tile and carpet recycling, plans a expantion, recycling consulting with hospitals and agricultural companies

Salida 1996

Recology Stockton 250 Port Road Ste. 23 Stockton, CA 95203

Ron Hurst (209) 463-1067 recologystockton.com

Construction and demolition, green material recycling and landscape materials for sale

San Francisco 2003

Jim Newellâ&#x20AC;&#x2122;s Iron & Metal 228 Empire Avenue Modesto, CA 95354

Jim Newell (209) 402-8420 jnmetals.com

Scrap metal recycler, bin sevice available for industrial and ranch accounts Office hours Mon. - Fri. 7 am to 4 pm and Saturday 8 am to 2 pm

Modesto 1991

Commute Connection 555 E. Weber Avenue Stockton, CA 95202

Regional rideshare agency

Stockton 1985

Hydrogen Technologies, Inc. 1401 N. Hunter Street Stockton, CA 95208

Energy storage systems, Hydrogen Endorsement letter from SJVUPACD

Modesto 2009

DTE Stockton LLC 2201 W. Washington Street Stockton, CA 95203

EVI International 1627 Army Court, Ste. 1 Stockton, CA 95206

Covanta Energy 4040 Fink Road Crows Landing, CA 95313

Michael Swearingen (209) 235-0601 commuteconnection.com Ed Stockton, CEO, President (209) 986-9346 hydrogentechnologiesinc.com Michael Blakely (209) 320-3731 dteenergy.com

3.5

Complete biomass receiving and storage facility with state of the art environmental cleaning system

Stockton 2009

Morristown, NJ 1989

Stockton 1983

Sacramento 2005

Detroit, MI 2013

April 2014

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Central Valley Business Journal

CVBJ

FOCUS: GREEN BUSINESSES

April 2014

Developer creates app to clean up Stockton By COURTNEY JESPERSEN Business Journal writer

WAYNE DENNING/CVBJ

Using Amador’s Clean Up Stockton app, residents can report graffiti and trash so they can be cleaned up quickly.

STOCKTON -- It all started on a Friday afternoon. Paul Amador, president and CEO of the California Application Research Group, devised an innovative way to help clean up his hometown. “Every Friday, we donate our time to doing a creative project,” Amador said of his mobile application development company. “This is really common with software companies. For us, we focused our creative efforts on a project that could solve a real-world problem.” The result was Clean Up Stockton, a community vandalism and litter response app. The high-tech graffiti abatement system makes reporting and responding to incidents of tagging as simple as a touch of an iPhone screen. The process is simple: • Download the application for free. • Submit a report (picture, time, date, and location) for an incidence of graffiti, trash, or broken glass. • View the digital map to see other reports. • Check out the before and after section to see pictures of successful cleanup efforts.

Unlike similar applications, Clean Up Stockton takes the traditional concept of simply reporting graffiti a step further. The interactive map feature allows users to not only report incidences of graffiti and trash, but also to view – and, it’s hoped, clean up – reports from others. Amador said this helps everyday people become a force for change. “Instead of walking by a broken bottle on the ground or a tagged up wall, with this app, they can stop, take a picture of it, and report it,” Amador said. “Not only can they report it, but other community members who have the time and the inclination to take back their city and take it upon themselves to remove the blight to help restore our public image, they can respond to that report.” A number of local nonprofits and other community organizations have heeded Amador’s call for action, organizing volunteers for several large-scale cleanup events. The most recent effort was held on March 15 when more than 100 local youth picked up trash and removed graffiti at Stockton’s Mormon Slough. Please see CLEAN UP APP Page 35

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TURLOCK -- For the fourth year in a row, a small graphic design firm in Turlock has garnered national recognition for its work in marketing natural and organic food. Nishihara/Wilkinson Design Inc. distinguished itself among 2,000 design companies, many much larger, by winning a 2014 American Package Design Award. Its package design for Newman-based Stewart & Jasper’s line of almonds appears along with other entries ranked in the top 10 percent nationally in the April 2014 issue of Graphic Design USA magazine. Husband-and-wife team Darice Nishihara and Ron Wilkinson had previously worked with Stewart & Jasper on redesigning the almond company’s retail logo, which then set the standard for package design. “We’ve been in business for 66 years, so we used an old Ford truck to communicate that we’re established, but with bright green and simple design to convey vibrancy,” said Stewart & Jasper Vice President Jason Jasper. “We’re a pretty small company, and there are few big players people will recognize, so we have to do everything we can to catch their attention.”

The award-winning design for the company’s line of flavored almonds was a four-month collaboration. Jasper said the result met the goal of creating a package that was easy to read and enticed people to cross the room and learn more about the product. He pointed out the almond-shaped window on the front of the package and the texture of burlap screened onto the background to evoke the family farm. “Darice and Ron work very closely with me. We bounce ideas off each other. It’s fun. I enjoy the creative side of it,” Jasper said. In business together for 27 years, Nishihara and Wilkinson have infused their work with a homegrown respect for family farms in California’s Central Valley. They believe the insights they develop as farmers themselves benefit clients large and small from the agriculture, dairy, and poultry industries. “We share the same passion for farming as our clients have, and we can express how important these farm families are to the future of the Central Valley and California,” Wilkinson said. Only 2 percent of the U.S. population farms anymore, he noted, citing the American Farm Bureau Federation. Both raised in the Valley, the Please see ORGANIC AWARD Page 43

April 2014

Continued from Page 34

The Downtown Stockton Alliance has partnered with local nonprofit organizations and students using the Clean Up Stockton app by providing them with graffiti removal wipes, sticker scrapers, gloves, and trash bags. “The innovative technology behind the Clean Up Stockton app truly encourages local residents and students to actively identify graffiti and litter and remove it as quickly as possible,” said Leandro Vicuna, CEO of the Downtown Stockton Alliance. Douglass Wilhoit is the CEO of the Greater Stockton Chamber of Commerce. He is an avid proponent and user of the app. He said it is userfriendly for people of all ages. “Paul gave a presentation at our meeting,” Wilhoit recalled. “I interrupted, held up my iPhone, and said, ‘If I can do it at 70, all of you can do it at 30.’ I believe in it 100 percent.” Congressman Jerry McNerney is another supporter of the 21st century blight solution. “The Clean Up Stockton app is a great example of how our area’s small businesses give back to the community, and how technology can be used for public service,” McNerney said. “I was impressed by how well it works when I joined a group of students using the app to find and remove trash and graffiti in downtown Stockton.” Since launching in Apple’s App Store on Jan. 31, the free app has had more than 2,000 downloads. Add to that over 3,000 likes on the app’s Facebook page. “Stockton has been in need of some-

Waiting list for CARB rebates There is so much demand for plugin hybrid electric and zero-emission vehicles in the state, the California Air Resources Board has had to start a rebate waiting list for incentive funds that help consumers buy the cleaner burning cars. “The Air Resources Board’s rebate program has been instrumental in accelerating the market for the cleanest vehicles, which is helping California to achieve its clean air goals,” said Air Resources Board Chairman Mary Nichols. To accommodate expected market growth into the summer, CARB staff also plan to propose expanding the waiting list by an additional $25 million at the Board’s April meeting. The agency will continue accepting rebate checks while additional funding is put in place for the four-year-old Clean Vehicle Rebate Project. CARB has issued about $100 million for more than 50,000 rebates since the program began in March 2010. Under the program, individuals, nonprofits, government entities and businesses can get up to a $2,500 state rebate. That can be combined with an up to $7,500 federal tax credit and other regional incentives. Consumers placed on the waiting list can expect to receive their rebates at the end of September.

thing that’s positive, altruistic, and designed for the benefit of the community,” Amador said. “A lot of people are really sick and tired of hearing the media always focus on the bankruptcy, the crime, and divisive politics.” And a community-centered approach to graffiti seems to be catching on throughout the Valley. Riverbank Mayor Richard O’Brien has begun a cooperative process for graffiti cleanup. Previously, Riverbank would issue cleanup notices to businesses who had been hit with graffiti. Failure to comply

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would result in a fine. In its new approach, the City now works with business owners to remove the vandalism. “They’re not the culprits,” O’Brien said. “They’re the victims. We should be doing what we can to take care of them.” In Modesto, Mayor Garrad Marsh has voiced interest in equipping citizens of his city with a smartphone reporting system similar to Clean Up Stockton. Doing so, he believes, would help deter would-be taggers. In Modesto, approximately 70 percent of graffiti is not gang-related, according to Marsh.

“It’s kind of like a broken window,” Marsh said. “If one window’s broken, it’s easy for people to think it’s OK to break a second or a third one. If there aren’t any broken windows, most people aren’t going to be the first to do it. So if you keep yourself graffiti clean, it doesn’t attract more graffiti.” Marsh hopes to have some type of graffiti cleanup system in place before summer. Clean Up Stockton is available for free download in Apple’s App Store. Amador hopes to make the app compatible with Android in the near future.

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Central Valley Business Journal

April 2014

Business Journal Insight & Analysis CENTRAL VALLEY

Lean & green

WAYNE DENNING/CVBJ

Green Team San Joaquin helps businesses reduce costs and create jobs

By PATRICIA REYNOLDS Business Journal writer

STOCKTON -- Business owners often associate the term “green” with added operating expenses and costs. A committee within the Greater Stockton Chamber of Commerce named Green Team San Joaquin has been working successfully with local companies since 2006 to reverse that perception. “Green Team San Joaquin is a collaboration of local businesses, public agencies and other stakeholders with a focus on sustainability practices to lower the cost of doing business,” said Blain Bibb, president and CEO of ServiceMaster Clean and current senior vice president of the Greater Stockton Chamber of Commerce. After surveying businesses within San Joaquin County, the Chamber discovered that companies were concerned about the associated costs of addressing environmental issues such as hazardous waste as well as air and water pollution. What evolved was the idea of providing those organizations with the resources necessary to reduce operating costs while at the same time solving environmental problems facing San Joaquin County.

The Chamber’s Program and Public Policy Director Frank Ferral launched Green Team San Joaquin in 2006. The committee now supports five programs aimed at achieving the overall objective of enabling business to “go green” while reducing expenses. One of those programs is the team’s outreach arm, the Recycling Energy Air Conservation Team, otherwise known as REACON. “REACON provides assessment to businesses for opportunities in water and electricity conservation, air pollution reduction and recycling,” said Ferral. Through REACON, the Chamber visits businesses and identifies ways they can implement cost-saving green practices. A company can obtain a Green Sustainable Business Certification when Please see GREEN TEAM Page 37

IN THIS SECTION • Taxes • Real Estate

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GREEN TEAM Continued from Page 36

IS THE GOVERNMENT CHOKING YOU?

Frank Cvetovac , sales and operations manager of Epic Plastics of Lodi, stands in front of the mountain of discarded plastic that will be recycled into plastic lumber for landscaping.

the assessed business implements the resulting recommended practices. The benefit to businesses is that the REACON Green Certification shows proof of environmental stewardship while reducing operating costs. Bibb’s janitorial business gained Green Certification in 2011 after a yearand-a-half effort and enjoyed the results. “I started taking advantage of the conservation ideas in my purchasing policy such as working with vendors providing green products and then began employing conservation in electricity and our overall cleaning methods,” Bibb said. For many businesses, REACON demonstrates how addressing simple operating issues such as running double-sided photocopies, turning computers off at the end of the day, or replacing inefficient lighting can yield large results. Huge cost savings also can be earned if companies are educated on how to divert waste materials that can be recycled. “Just tackling some of these lowhanging fruit has saved companies thousands of dollars per month. For example, we’ve seen businesses have their monthly waste hauling costs of up to $10,000 per month go down to $1,500,” said Bibb. Another Green Team program is REXPO, the annual conference that gathers businesses with local, state, and federal agencies together to discuss trends and issues impacting sustainability here and throughout the state. This year’s REXPO took place on March 12 at the Hilton Stockton with roughly 300 in attendance. “It’s a huge collaboration, and this year’s REXPO looked at keeping jobs in California. Eighty to 90 percent of our recyclables are exported to China. We want to push the state to keep recyclables here, take the content and refabricate it into other materials which will create manufacturing jobs, beyond only recycling collection work,” said Ferral. Lodi’s Epic Plastics is an example of

such a manufacturing company. “They take local discarded plastics that are collected here and then manufacturers the recycled content into products also sold here such as plastic lumber called Benda Board, used in landscaping. This creates jobs right in our county,” Ferral said. In addition to REACON and REXPO, the Green Team San Joaquin supports three other programs. These include Recycling Marketing Development Zone (RMDZ), Pathways to Green Schools, and Valley Green Team. The goal of RMDZ is to promote more businesses like Epic Plastics by expanding the use of recycled materials and diverting them from local landfills. The idea is to assist recyclingbased businesses in creating a local market for recyclables and products made from recycled materials. Pathways to Green Schools assists school districts in “greening” their facilities along with developing curriculum that will help students obtain green jobs and careers in the future. Approximately 16 districts within San Joaquin County are working with the Green Team and the County Office of Education to partner with students who develop sustainability projects. Primarily high school students, these young people complete their projects with a presentation to the committee. The fifth program under the Green Team umbrella is Valley Green Team. “This is about everything we have done here in San Joaquin and taking it throughout the Valley, going to other chambers, cities, universities. We now have Green Teams in Stanislaus and Merced counties, and Avenal,” Ferral said. Through its five key programs, Green Team San Joaquin has multiple methods of achieving one key, overlying objective. “Finding where obtaining sustainability and lowering the cost of business intersect, that’s the overall goal of Green Team San Joaquin,” said Bibb.

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Green Team’s REXPO conference on March 12 focused on keeping green jobs in California.

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Central Valley Business Journal

April 2014

FAMILY OWNED BUSINESSES In San Joaquin and Stanislaus Counties. Ranked by Number of Total Staff. Ties are Ranked in Alphabetical Order. Company Name Rank Address

Local Phone Web Address

Specialties

Top Executive

Number of Family staff Total Staff

Year Est.

Delicato Family Vinyards 12001 S. Hwy 99 Manteca, CA 95336

(209) 824-3600 Winery dfvwines.com

Chris Indelicato

9 500+

1924

Seven Up Bottling Co/Varni Brothers 400 Hosmer Avenue Modesto, CA 95351

(209) 521-1777 Beverage manufacturer and distributor: Soft drinks, Noah’s California Spring Water, noahs7up.com Rockstar and Snapple

Anthony J. Varni

9 240

1936

Collins Electrical Company, Inc. 611 W. Fremont Street Stockton, CA 95203

(209) 466-3691 Electrical contractor collinselectric.com

Gene Gini

5 220

1928

Garton Tractor 2924 French Camp Turnpike Road Stockton, CA 95206

(209) 948-5401 Rentals and sales of farm tractors and garton-tractor.com equipment

Bill & Tom Garton

4 190

1954

Skip Foppiano

5 120 1600 seasonal

1849

Jennifer Tracy

3 120

1912

James Blincoe

6 100

1944

Paul Caron

6 85

1938

(209) 523-4578 Plumbing, air conditioning, heating and dehartinc.com sheet metal shop

Rod DeHart

3 70

1946

Trucking company that provides overnight (209) 369-2830 flatbed truckload service and flatbed LTL teresitrucking.com service

Anthony Todd Teresi & John M. Teresi

3 65

1959

Matt Bruno

3 60

1972

John & Brian Fiscalini

10 23

1912

(209) 478-1400 Commercial and personal insurance dohrins.com

Gregory & George Dohrmann

2 20

1868

Olive oil production, gift packs (209) 577-5067 Tasting room open M-F 8am to 5pm sciabica.com video tour

Nick, Daniel and Jonathan Sciabica

5 15

1936

Scott Daugherty

4 13

2008

Donald Gigli

4 12

1970

Chris Bruno

2 9

1947

Robert Parrino

2 9

2008

David R. Queirolo

4 8

1954

Doug & Clyde Hendrickson

2 4

1946

5 6 7

11 12 13

14 15

17 18

Morada Produce 500 N. Jack Tone Road Stockton, CA 95215 Mepco Label Systems 1313 S. Stockton Street Lodi, CA 95240 BJJ Company, LLC 2431 E. Mariposa Road Stockton, CA 95205

(209) 546-0426 Grower/Packer/Shipper onions, bell peppers and walnuts moradaproduce.com Cherries, For domestic and global markets

Alfred Matthews 3807 McHenry Avenue Modesto, CA 95356

Auto dealership sells new GMCs, Cadillacs, (209) 577-0140 and Buicks and used vehicles. alfredmatthews.com Full service collision center 15 factory trained services technicians

DeHart Plumbing, Heating & Air, Inc. 311 Bitritto Way Modesto, CA 95356 Teresi Trucking, Inc. 900 E. Victor Road Lodi, CA 95240 TDR, Inc. PO Box 1530 Turlock, CA 95381 Fiscalini Farms & Cheese 7206 Kiernan Avenue Modesto, CA 95358 Dohrmann Insurance Agency 3255 W. March Lane, Ste. 200 Stockton, CA 95219 Sciabica California Olive Oil 2150 Yosemite Boulevard Modesto, CA 95354 Daugherty Insurance Services 10100 Trinity Parkway, Ste. 300 Stockton, CA 95219 Gigli Hay Inc. 12333 Manthey Road, Box C Lathrop, CA 95330 Bruno Pepper Company 11291 N. Ham Lane Lodi, CA 95242 Diamond Ice, Inc. 2715 E. Miner Avenue Stockton, CA 95205 Queirolo’s Heating & Air Conditioning, Inc. 3934 Coronado Avenue, Ste. C Stockton, CA 95204 Hendrickson’s Turlock Music 223 N. Center Street Turlock, CA 95380

(209) 946-0201 mepcolabel.com Flexographic label printing (209) 941-8361 Liquid and bulk tanker hauling bjjco.net

(209) 667-6455 Agriculture and general construction tdr-inc.com Farmstead cheese made from registered (209) 545-5495 Holstein and Jersey cows from the Fiscalini fiscalinicheese.com family dairies

(209) 475-4400 Commercial insurance, non-traditional risk daughertyinsuranceservices.com management haulers (209) 983-8278 Hay Alfalfa, oats, straw, grass giglihay.com Also a location in Oakdale, CA (209) 367-5914 brunosmarketplace.com Pickled peppers and gourmet foods (209) 943-9422 Bagged ice, block ice, ice sculptures and dry diamondiceinc.com ice and air conditioning service, sales, (209) 464-9658 Heating installation, maintenance, residential and queirolos.com light commercial solar PV (209) 632-3927 Musical instruments, supplies, rentals and turlockmusic.com lessons

April 2014

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Central Valley Business Journal

April 2014

Keeping family-owned car dealership tradition alive By PATRICIA REYNOLDS Business Journal writer MODESTO -- For three generations, the Alfred Matthews GMC auto dealership in Modesto has served the local community. A key element in its ongoing success of the family business and a value system that remains entrenched in the company’s culture today, according to its owner. “Each generation has held the same philosophy of supporting community events and keeping the tradition of community support alive,” said Paul Caron, dealer principal and current owner of Alfred Matthews GMC. Alfred Matthews himself launched the business in 1936 after buying a dealership located in downtown Modesto. His daughters and their spouses eventually operated the dealership throughout the 1960s. One of Alfred Matthews’s granddaughters, Susan, and her husband Elvio Filippi became sole owners of Alfred Matthews GMC in 1999. While Elvio Filippi remains Alfred Matthews GMC’s chief executive officer, he sold the dealership to Paul Caron in May 2013, technically ending the Matthews family’s direct owner-

ship of the business. Stewardship of the founding family’s culture and philosophy has been passed to Caron, a responsibility he takes seriously and with pride. “I started here in 2008 and became very close to Elvio and Susan. Our families are close, too. I consider Elvio as an older brother. Other corporate buyers wanted to purchase the dealership, but I know Elvio wouldn’t have sold the family dealership to anyone else,” Carron said. Caron has worked at auto dealerships for 25 years, but he didn’t start out in the industry. He was a police officer in Springfield, New Jersey for five years before relocating to Northern California where he planned to join law enforcement. While waiting to be added to San Mateo’s police staff, he took a job selling Saturns in Burlingame. “I loved it so much that I decided to stay in the business,” he said. During his stint with Saturn, he hired a sales consultant in 1993 who became his wife in 1994. Now as owner of Alfred Matthews GMC, Caron vows to continue with the dealership’s civic-mindedness. Alfred Matthews GMC remains a

MARK RICHEY/CVBJ

Dealer principal and Alfred Matthews owner Paul Caron bought the dealership last year but says he believes in retaining a strong cultural connection to Modesto.

key sponsor of the Almond Blossom Festival in Ripon, the Modesto Certified Farmers Market, and the Gallo Center for the Arts. The business also actively sponsors the Color the Skies Balloon Festival each Labor Day weekend in Ripon, an event that benefits Children’s Hospital Central California in Madera. Lynn Dickerson, CEO for Gallo Center for the Arts, says that the Alfred Matthews dealership has been a great friend of the Center since its opening. The Filippi family was supportive of the Gallo Center even during the worst

of the recession, and their commitment to the Center and to the community has been passed along to the new owners. “Now with this new generation of ownership, Paul and Holly are very good stewards also. We are most appreciative of everything they do. They underwrite the cost of helping us bring first-rate entertainment to the community,” Dickerson said. Also keeping the dealership’s family connection and traditions alive and well is Caron’s former Saturn sales consulPlease see TRADITIONS Page 46 Please see TRADITIONS Page 46

April 2014

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Central Valley Business Journal

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Morada Produce undergoes major expansion By CRAIG W. ANDERSON Business Journal writer LINDEN -- One of the oldest produce companies in San Joaquin County is embarking on a significant expansion of its facilities. Morada Produce expects the project to take six or seven months. “We’ve been adding to our facility every year, and this current project will enlarge our walnut processing, and we’ll have a new onion shed and storage building,” said owner Henry J. “Skip” Foppiano III. “Combined, the new additions will cover about 90,000 square feet.” A cherry processing line is scheduled to be built in 2015. It will cover about 50,000 square feet, use state-ofthe-art technology and will increase the cherry processing lines to four. “Then, I hope we’ll stop for awhile,” Foppiano said. The company grows, packs and ships cherries, walnuts, onions and bell peppers grown on company fields from Bakersfield to Lodi. More than 50 percent of the company’s produce volume is company grown. Morada Produce has been in business since 1849 when Skip’s great grandparents Giovanni and Caterina Foppiano started it after they arrived in California from Italy during the Gold Rush. “They were one of the earliest set-

tlers in the Waterloo area, and Giovanni planted one of the first orchards in the region,” Skip Foppiano said. “The family has carried on the agricultural tradition of my dad, Henry Foppiano, Jr. and grandfather, Henry Foppiano, Sr.” With the commodities marketplace on the upswing, Foppiano said Morada Produce installed the largest electronic sorters for cherries last year and the walnut line has the latest technology in sorting. Morada Produce has been operating at its current location near Linden since 2002 and when asked why it’s called Morada Produce when the company is closer to Linden, Foppiano said, “We had to come up with a name and Morada seemed to be the best one because it’s unique.” With his son Henry and daughter Nicole actively involved in Morada Produce’s day-to-day operations Foppiano is pleased the family tradition of farming is continuing. “They were in FFA and 4-H, they’re good at what they do here and they’re learning all the time,” he said. His wife of 30 years, Lynette, created the majority of the artwork for the well-known Morada Produce cherry labels. The company has faced many challenges over the years, including the ongoing drought which, Foppiano said, “hasn’t affected us too much

here but our Bakersfield area crops have been affected. Agriculture is taxing our groundwater a lot in the southern part of the Valley.” The four crops – cherries, walnuts, onions and bell peppers – are sold both domestically and abroad with 30 percent of the onions exported to Taiwan. “We’re one of the largest exporters in the world of onions to Taiwan in July and August,” Foppiano said. The main portion of the Morada Produce acreage is planted to cherries and walnuts. A readily available power source has been tapped by Morada Produce: the sun. Installing a two- acre, 390-kilowatt solar energy system with panels erected on four canopies above the employee parking lot, photovoltaic panels cover more than 40,000 square feet and supply 70 percent of Morada Produce’s power needs. Foppiano and Morada Produce are doing what they can to shrink the company’s environmental footprint. “We have two people to make sure we’re compliant with worker safety and product safety regulations.” Foppiano said, “We became a sustainable company last year and we’re stewards of the land. We’re not bad guys … we’re just farmers making sure our land provides consumers here and around the world with safe, affordable food.”

Dunkin’ Donuts to open stores in Central Valley Central Valley donut lovers will get new choices when one of the biggest names in donuts opens new stores. Dunkin’ Donuts and the franchise group Sizzling Donuts, LLC announced today they will open stores throughout Northern California, including in Stockton, Modesto, Tracy, and Manteca in the next few years. “With our plans to develop more than 100 Dunkin’ Donuts restaurants over the next several years, we feel our restaurants will play an important role in the daily lives of people who live, work and visit the southwest and western states,” said Ted Morton, chief executive officer and president of Sizzling Donuts’ parent company, Sizzling Platter, LLC. “We are excited to bring Dunkin’ Donuts’ high-quality coffee, sandwiches and baked goods to California, and look forward to breaking ground on the first of many California locations.” In all, 46 new stores will open in Northern California. It is part of an expansion that includes Utah, Colorado and Texas. Dunkin’ Donuts said there are still franchise opportunities in Southern California and it plans to have as many as 1,000 restaurants throughout California.

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ORGANIC AWARD Continued from Page 34

couple grows almonds and walnuts for sale, and cultivate a home garden with an abundant yield of tomatoes, peaches, pluots, corn, zucchini, squash, and Japanese vegetables. Their farm and herb garden supply fresh props for the home studio where they shoot food photography. “What’s unique about us is that in the process of conceiving a brand, we can relate not only to the end consumer but all the way back to the farmers, who are intrinsic to the brand and the story,” Wilkinson added. Nishihara/Wilkinson’s package design appears on food products carried by established grocers including Costco, Whole Foods, Raley’s, Sprouts and Safeway. While the firm has grown modestly to include six full-time and two part-time staff, the couple maintains a deeply personal connection to the company and its progress. “We were at a Whole Foods in Manhattan where we spotted one of our designs and we felt like, ‘Yes! We made it to New York. We’ve really made it now,” recounted Wilkinson. “Another time we were at Universal Studios in Florida and we were so excited to see one of our clients’ snacks,” Nishihara added. “We’re weird when we go on vacation.” They take every opportunity to keep an ear to the ground, from design conferences and trade shows to family travel and trips to the grocery. “We pay attention because food is a dynamic subject; it fascinates us,” Nishihara said. “Our antennas are always up for ideas and information because our clients don’t always have the opportunity to get out and talk to people,” Wilkinson said. “A grocery trip that might

take 15 minutes takes us an hour and a half. We ask people a lot of questions. We get carried away. Our poor kids are used to it by now. They’re involved in the consumer testing part of our lives.” Daughter Samantha, 15, indulges her parents by offering a teen’s opinion on product packaging’s attentiongrabbing attributes. Granddaughter, Jojo, age 2, tests organic food selected by her mother, Jackie. Nishihara/Wilkinson’s previous design awards were for The Original Brat Hans last year; Koda Farms in 2012; and Green Valley Organics in 2011.

PHOTO COURTESY NISHIHARA/WILKINSON DESIGN

Darice Nishihara and Ron Wilkinson say their love of family farms drives their passion.

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Central Valley Business Journal

April 2014

Six tips for being a great commercial property manager One of the greatest ways to increase the value of commercial real estate is through good property management. While buying a property at the right price is critical, what you do with it after the purchase is often more important. Here are some key tips for good property management. Keep tenants happy Unlike residential properties, it is very difficult and expensive to find new tenants for commercial properties. It can take two to nine months. A leasing commission isn’t due until you sign the lease, and often you have to spend money on the space to make it leasable. Therefore the best way to maintain your income is to keep existing tenants from leaving. Maintaining a positive tenant relationship involves regular communication, anticipating their needs, and being proactive. Maintain the property The appearance of a building is important for a business’s success and tenants pay more for better maintained properties. In the commercial real estate business we designate properties as Class A, B, or C based on the state of the property. Class A properties have higher rent and lower turnover than Class B or C. While a tenant may settle for a Class C property, as the business grows (or rents decline), the tenant will often

move to a Class A property. As with all properties, deferring maintenance can lead to costly fixes later. For example, resealing a parking lot every three years can seem expensive and unnecessary, but it pushes out the need for asphalt replacement (at 10 times the cost of sealing) by decades. For a large commercial property, the list of things that need Ryan Swehla to be regularly Principal, maintained is NAI Benchmark extensive. If you First Commercial don’t have experience managing commercial properties, you should rely on a seasoned property manager to do the necessary inspections. Improve the property Perhaps the best way to increase the value of a property is by making targeted improvements. Since the value of a commercial building is derived solely from the income it generates, it is easy to quantify the value of an improvement based on the potential increase in rent. For example, if a landscape upgrade

Business Space

costs $20,000 and it’s expected to increase the rent by $750 per month (due to increased rental rates or filled vacancies), not only will you get your money back in two years, but that minor upgrade increased the value of the property by $150,000 (at an 8 percent cap rate)! Know your product Owning and managing commercial real estate requires specific knowledge about that product type. Retail, office, and industrial properties each require different skill sets, understanding of your customer, and maintenance expertise. Know what amenities your tenants require, what services you’re expected to provide, and the aesthetic standards typical of that product type. In addition, each product type has different equipment (signage, boilers, roll up doors, bathrooms) and different preventative maintenance requirements. Because of this, it’s important you have a team that is experienced with the type of property in which you are investing. Know the leases inside and out Leases are complex, cumbersome, and hard to read. Yet one of the greatest ways to increase property value is through diligent analysis and follow through of the lease provisions in place. There are many provisions in leases that either allow the owner to collect more money or the owner to bill back expenses. Often rental rate increase and late payment provisions are not

followed. In large properties, there are typically multiple variations of leases for different tenants. Having a clear understanding of each lease and the diligence to follow through during the entire period you own the property will significantly increase its value. Have an asset management plan Like any investment, commercial real estate should involve a plan. Each property should have its own strategy. Why are you investing in that property? What is the upside potential? How do you achieve it? What is your holding period? Five years? Ten years? Until death? How does your holding period affect the investments you make in the property? How do you achieve optimal value (cash flow or sale value depending on strategy) during your holding period? These are the types of questions you should ask when evaluating a property. After purchasing, you should put the game plan in place for achieving your strategy. An experienced asset manager knows how best to achieve objectives based on the stated strategy. Owning commercial real estate can be a tremendously rewarding investment. But unlike investment in stocks or bonds, it requires active management and participation. Following the steps above will help ensure you achieve the highest income and sale price for your commercial real estate.

April 2014

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Seven things you need to know for tax season With the April 15 deadline to file personal income tax returns approaching, there are some important tax issues everyone should understand. Extension to file If you can’t file a return by April 15, you can apply for an extension using IRS Form 4868, Application for Automatic Extension of Time to File U.S. Individual Income Tax Return. The deadline is automatically extended until Oct. 15, 2014. That extension only applies to filing the tax return. It is not an extension to pay taxes. Under Internal Revenue Code, if you are going to owe taxes when you eventually file your return, you are supposed to pay that amount when you apply for an extension. Failure to pay with the extension can result in penalties for failure to pay, which is equal to one half of one percent per month. If you fail to pay the taxes owing by the April 15, you could possibly invalidate an extension to file. That would result in a failure to file penalty, which is equal to 5 percent of the taxes owing per month for a maximum of 25 percent. That failure to file penalty would be added to the failure to pay penalty and both would accrue interest. If you are going to apply for an extension to file your return, make sure you have properly estimated the taxes you will owe and submit that

amount with your form. Mailing tax return The postmark on the envelope when you mail your tax return is deemed to be the date the return was filed. However, the IRS does not retain your envelope when you mail your return. If there is ever a question of if or when you filed your tax return, the burden of proof is on you Jason Harrel to prove you sent Calone & Harrel your return on Law Group time. I recommend any filing with a tax agency be sent certified mail with a return receipt requested to show the date it was filed and received by the government. Filing of Return Even if you cannot afford the tax you owe, you should still file the return on time. Filing late will likely result in an additional 25 percent failure to file penalty, and the failure to pay penalty is 5 percent per month, capped at 25 percent. The statute of limitations for assessment or collection does not start

Taxing Matters

to run until the return is filed. Additionally, your eligibility to file bankruptcy on income taxes does not start to run until the tax return is filed. So, even though you cannot afford to pay the tax owing, by filing late you limit your options and incur additional liabilities. Review of Tax Return When you file your federal income tax return, Form 1040, there is a statement you make when you sign the return which provides that “[U]nder penalties of perjury, I declare that I have examined this return and accompanying schedules and statements, and to the best of my knowledge and belief, they are true, correct, and complete.” This statement forms the basis for prosecution by the Department of Justice if fraud is suspected on a tax return. It is your responsibility to review your tax return for accuracy, especially if you paid someone to prepare your return. Your accountant is not an auditor of your tax return. Make sure you provide the accountant all of your information to prepare an accurate return. If you have any questions about an item of income or deduction, bring it to the attention of your return preparer so you get the proper advice and possibly avoid a penalty. Proof of cash In the majority of audits, the IRS will

request copies of your bank statements to determine if there is any unreported income. Essentially, the IRS will compare all of your deposits against the amounts claimed as income on your tax return. If there are deposits to your bank account that are not reflected on your return, the IRS will presume you have unreported income. To overcome this assumption, you will need to show why such deposits are non-taxable. It is prudent to review the total income reported on your tax return against your total deposits to your bank account and note on your bank statements why such a deposit was non-taxable as you may forget two years later when the audit actually occurs. This simple proof of cash is a good practice to help you make sure you are reporting all your income. Retain records The normal statute of limitations for an income tax audit is three years from the date it was filed, which is typically April 15 or Oct. 15. You should, therefore, keep all receipts, bank statements, and invoices for at least three years. If you have a substantial omission of income, meaning an omission of income greater than 25 percent of what you reported, the statute of limitations is six years. The statute of limitations for fraud assessments is unlimited but Please see TAXING MATTERS Page 50

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Central Valley Business Journal

Covered California hits million sign-up milestone SACRAMENTO -- Covered California hit the one million mark by mid-March, the health care exchange announced March 17. “This is a historic threshold for our exchange, for the state of California and for the nation,” said Covered California Executive Director Peter V. Lee. “It speaks to the immense need for the Affordable Care Act and the millions of people who have been waiting for affordable coverage. We are pleased and privileged to be helping a million people find the peace of mind that comes with having insurance.”

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TRADITIONS Continued from Page 40

tant and wife, Holly. While she now functions as Alfred Matthews GMC’s marketing director and customer relations specialist, her primary responsibility is as a liaison into the community. “Holly’s main drive is involvement with the community. She works with the Stanislaus Family Justice Center, which helps abused spouses that need counseling and shelter. Alfred Matthews GMC donates money and items such as coordinating the backpack drive for schools and lunch in a backpack programs,” said Caron. That philanthropic company cul-

April 2014

Covered California’s enrollment reached the 1 million mark late March 14, it said. By the end of the 15th, enrollment reached 1,018,315. Enrollment numbers reflect the number of people who have signed up for coverage and selected insurance plans. Throughout the San Joaquin Valley, 36,980 people had enrolled; 34,066 of them were eligible for subsidies. When the exchange launched last fall, Lee said he expected between 500,000 and 700,000 subsidy-eligible Californians would enroll in the first

six-month open enrollment period. Covered California said that 85 percent of enrollees in this first enrollment period were eligible for subsidies. The last day to enroll was March 31, but Covered California is allowing consumers who began the signup process before the deadline a grace period to finish. Those customers will have until midnight April 15. “Covered California is not extending its deadline for applying for a health plan,” Lee said. “However, we’re committed to helping all those who started an online application to cross the finish line.” Now that open enrollment is over, the only consumers eligible for Covered California’s special enrollment period are those who have experienced a life event such as getting mar-

ried, having a baby, moving to a new area or losing health coverage. Low-cost or no-cost coverage through Medi-Cal is also available to consumers yearround, the agency said, and people can check their eligibility and sign up on the Covered California website, through its service center or with the help of Peter Lee assisters. Covered California also operates its Small Business Health Options Program year-round for businesses with 50 employees or fewer.

ture brought success during the early years to Alfred Matthews and continues to do so today. The ability to donate to and sponsor events and organizations within the area comes without restrictions. Alfred Matthews GMC does not need permission for involvement from a parent company. Caron said the annoying red tape that often plagues larger organizations does not exist at his dealership, which benefits the overall community and customers alike. “Everybody that comes in here knows us. I’m not hiding in some corporate office in another state. If someone wants to see the owner, they can come right in and see me,” Caron said. Key personnel at the dealership have

been with the company for years and are like family, Caron says, also an advantage in servicing customers. From the body shop manager who has been with Alfred Matthews for 35 years, to the Controller, service manager and parts manager who each have worked for the dealership for 19, 13, and 14 years respectively, Alfred Matthews GMC’s boasts an experienced staff well entrenched in the company’s culture. “When all department heads have been here a long time and promoted from within, customers have faith in us and we are able to build a large customer base from that,” said Caron. Today, corporate GMC is remodeling all franchises so that facilities look alike. Alfred Matthews under-

went a $1.5 million remodeling project to meet this corporate philosophy. All the buildings, cars, incentives, and available warranties are alike from store to store. Yet with all these similarities that GMC dealerships share, Alfred Matthews out-performed its Bay Area counterparts and several Sacramentoarea businesses. Why? According to Caron, it all comes back to 77 years of Alfred Matthews’s community spirit and a focus on the customer. “The only difference between Alfred Matthews and other stores are the people that work here and a philosophy of serving our customers and our community,” Caron said.

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April 2014

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FOCUS: TECHNOLOGY

Email stole my life; Here’s how I got it back One thing has become clear over the years as we’ve actively managed technology for hundreds of organizations: nothing is as important as email. According to a study by the Radicati Group, a quantitative research firm that focuses in technology, there are more than 89 billion business-related emails sent each day. Sadly, as a report from Symantec tells us, more than 65 percent of those emails are spam or sales-related emails that you didn’t ask for. Email is a relatively easy tool to use, and it’s no surprise that email has become the preferred method of communication in the workplace. Unfortunately, now a good portion of our workdays is dedicated to managing email and keeping inboxes organized. In fact, 28 percent of our day typically is spent reading, writing and responding to email according to a study by the McKinsey Global Institute in 2012. That amounts to 650 hours a year or 13 hours a week lost to managing email. Regardless of the amount time spent on email, it creates anxiety. It’s easy to look at emails that need a quick response and simply drop what we’re doing in the moment to take care of it. Linda Stone, a well-known technology writer, has coined the term “email

apnea,” which is how she describes the stress that is caused by the overwhelming quantity and responsibility you feel when you look at your inbox. According to Stone, overwhelming email can actually induce symptoms similar to sleep apnea, including the holding of breath, decreasPractical ing energy and bodily tension. Technology What is supDavid posed to be a tool to help us manage Darmstandler our day, ends up Vice President being our manof Data Path ager. The first thing many of us do when we wake up is check email. We check it in the bathroom, while we’re driving (what’s wrong with us!). We check it in meetings and any other spare moment we have. Here are five things I’ve done to take control of my email: Turn it off I no longer work with my email

open, and I’ve change my phone to only download email when I click on the icon. This means I control when I receive email and respond to it. It’s also forced me to sit down in a single session and handle email in a timely fashion, rather than breaking thought all day long. Use auto responders frequently Many of us only use auto responders when we’re on vacation or when we’re dying, but I would argue they’re an even greater tool when you are trying to get something done. Put them on when you’re working on a big internal project or just need time to think. People respect when you’re trying to make the company better, and let them know they can call you if it’s really urgent. If you’re nervous about it, just try it for a few hours at a time and let people know what time you’ll be reviewing email. Don’t forget to put some humor in your auto-responders, people appreciate humor and transparency rather than the stale, old, canned responses. Unsubscribe from everything It takes time, but over the course of a week or two get yourself off as many email newsletters as possible. You would be amazed at how much

time you spend just deleting emails you were never going to read anyway. Improve your anti-spam: With less than 35 percent of emails actually being legitimate business emails, the rest is spam. The cost of a good anti-spam solution is invaluable in the time it will save you from weeding through junk and sales-related emails you didn’t ask for. Depending on the size of your organization, there are some great hosted solutions and appliances that will help keep your inbox much cleaner. No more rules I went rule crazy for a while in my email, and sent certain companies, people, and newsletters to different folders. It became so complex that it eventually was worthless. I missed things and spent more time searching through folders than actually getting any time saving. A single inbox Along the lines of no email rules, I went to a single inbox concept and I keep it clean. If something is in my inbox, I know it has to be responded to. I move items that need to be saved to folders, otherwise I move on. It is now much easier to gauge what is critical, I don’t forget to respond to people and I can see how busy I really am in a snapshot.

QR codes are those square images that look like barcodes you see popping up in the marketing materials of companies that are trying to stay current. Their rise in popularity has been spurred by how easy it is to customize them. QR stands for “quick response,” and the codes were originally developed for the automotive industry to identify components to be installed on vehicle assembly lines. A QR code is a two-dimensional barcode that allows alpha-numeric data to be embedded into it. A QR code can hold much more data than the standard UPC barcodes on most product packaging. They have become popular due to how easy it is to create them. There are many websites that make it easy to create and download your QR code. The best option I have found so far can be found here: http://bit.ly/ bestqrcodegen I have seen QR codes used in creative ways. A coffee shop I attempted to go to in L.A. had a QR code on its closed sign. When you scanned the code, it took you to a video of staff apologizing for being closed and inviting you to return during business hours. It was a fun video to watch and it made me like the staff before I met them. There is a giant QR code painted on the roof of Facebook’s headquarters that takes you to the company’s engineering website. Victoria Secret has used QR codes in ways I would prefer not to elaborate on.

Companies these days are using QR codes to direct potential customers to additional information about products or services. You often see a QR code with the message, “Scan to learn more” next to it. The problem I see with this is that I don’t actually know many people who have successfully scanned a QR code. Often when I meet clients, they ask me Jerad Hill about QR codes. Owner I respond by Hill Media Group asking them how often they themselves use the codes. When you are deciding to implement a new technology to introduce your product or service to consumers, you have to determine if your target audience is familiar with it and use it. From a design standpoint, QR codes can take up a lot of real estate on your marketing materials. You have to decide if the space required is worth it compared to other information you could have included on your flier or brochure. It could be easier for someone to type a short website address into their phone’s

browser than it would be to figure out what they need to scan a QR code. I have even seen ads suggest apps by name that a person could download to read the QR code. Good luck with that. We all know that we can only ask so much of the person whose attention we’re attempting to target. QR codes could be useful when accessing additional information such as a whitepaper or a downloadable file. The extra work required to download an app that reads the QR code might not be a stumbling block if the recipient will receive something of value. If you are considering placing a QR code in marketing materials, I have a few suggestions for you. At the other end of the QR code there should be something valuable When somebody takes the time to scan your QR code, they should get more than an slightly more elaborate version of what was in your printed marketing materials. Include an instructional video or a special offer that takes them to your online shopping cart. Reward them for their time spent accessing this information. For some technically aware people, it might be an easy process, but for most it will require several steps to get there. Make sure the QR code works before you go to print Nothing will frustrate a customer more than a QR codes that doesn’t work. Make sure you print it large enough for the phone camera to read

it. Test the QR code with a few different devices (iPhone, Android, etc.). Make sure the QR code can be redirected If your QR code is going to take somebody to a website, make sure you can update that QR code if necessary. The code itself is unique to the alpha-numeric information you used to create it but if you set it up correctly, you can change where it points. Create a QR code that points to a URL that can be forwarded to a different location if needed. You might need help from your IT department to do this. You would hate to have to reprint everything if the QR code needed to be updated. As when deciding to implement anything, think of the pros and cons. Consider your target audience and what would be most useful to them. Is it a QR code, social media hashtag or simply a link to your website? Make sure potential customers will get value from what you are asking them to do. Most importantly, don’t do it just because everybody else is.

How to get the most out of QR codes for marketing

Social Maverick

Central Valley Business Journal

April 2014

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New site launched for Visit Stockton STOCKTON — Visit Stockton has launched its redesigned website it says can adapt to any mobile, tablet, or desktop viewing experience. “We could not be more pleased with the new website and the experience it creates for the user. Our local events calendar is more robust and feature rich, social media and content sharing is more ingrained into the site, overall look and feel to the site is beautiful,” said Visit Stockton’s CEO Wes Rhea in a press statement. “Providing the user with a consistent experience across all platforms from mobile to tablet to desktop was extremely important to us and we believe we have delivered on that promise.” The site, www.visitstockton.org, is designed to be a comprehensive and official resource for travelers, media, and locals to access the latest on Stockton events, hotels and attractions. Visit Stockton said the new website

SJ COUNTY

BRIEFS ACE fares could rise Riders on the Altamont Corridor Express could see fares go up in the fall. Staff is proposing a 4.75 percent increase for all ticket types in response to the 4.81 percent rise in the Consumer Price Index. Last month the San Joaquin Regional Rail Commission approved a public comment period for a proposed fare increase. Public comments can be mailed to the San Joaquin Regional Rail Commission at 949 East Channel Street Stockton, CA 95202 or emailed at public comments@acerail.com. The public comment period will end April 4 and will be followed by a public hearing on May 2. If approved, the fare increase would take effect starting Oct.1, 2014.

Chamber business awards nominations due April 18 STOCKTON -- The Greater Stockton Chamber of Commerce is accepting nominations for its annual business awards.

Categories include: small business person of the year, employee of the year, manager of the year, and the stewardship award. Awards will be presented at the Chamber’s Business Awards Luncheon on June 4. The deadline for nominations is April 18. To learn the nomination criteria and download the nomination forms please visit www.stocktonchamber.org or call (209) 547-2770.

French Camp Kenworth dealer gets industry nod STOCKTON — Papé Kenworth, with a location in the Stockton area, was named Kenworth’s 2013 TRP All-Makes Dealer of the Year for the United States and Canada during the annual Kenworth Dealer Meeting held recently in the Seattle area. TRP makes aftermarket products for trucks, trailers and buses. The award recognizes the Kenworth dealer that provides the best support for TRP parts

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Visit Stockton’s new website features local attractions and a more comprehensive calendar.

provides a faster browsing experience and allows its team more flexibility to promote the Stockton to tourists and potential businesses. The upgrades include expanded, in-depth content that describes what makes Stockton unique, the latest in search engine optimization and what

Visit Stockton describes as “a fresh, clean design with improved site navigation.” There are more photos and more comprehensive hotel, restaurant, shopping and meeting facility listings. Visit Stockton partnered with Tempest Interactive Media based in Tucson, Ariz. to design and develop the website.

and service among the more than 345 Kenworth locations in its network. “TRP provides quality, long-lasting replacement parts made by manufacturers who maintain strict quality controls,” said David Danforth, general manager of PACCAR Parts. “By helping customers choose the right TRP parts, Papé Kenworth employees help customers maintain higher vehicle utilization and minimum downtime.” In addition to its location in French Camp, Papé Kenworth operates locations in Bakersfield, Fresno, and Santa Maria; Oregon locations in Central Point (Medford), Coburg (Eugene), Klamath Falls, Portland, Redmond and Tangent; and a Washington state location in Kelso. The company’s headquarters is in Eugene, Ore.

website at lohp.org/iipp/.

Free seminar offered on injury prevention STOCKTON -- Business owners and managers can get free help putting together an Injury and Illness Prevention Program (IIPP) for their workplace at a seminar in Stockton on April 23. State law requires all California employers to have a written IIPP. An effective plan can help small businesses protect their employees from injuries on the job, as well as reduce the cost of business operations, according to the Small Business Administration. State Fund is partnering with UC Berkeley, DIR Small Business California, California Small Business Association. The seminar is designed for businesses with fewer than 50 employees. It’s open to California business owners, managers, and lead workers in charge of their organization’s safety programs. The seminar is from 1 p.m.-5 p.m., April 23 at 3247 West March Lane, 1st Floor in Stockton. For more information or to register, visit the Labor Occupational Health Program

Educators’ job fair April 5 STOCKTON — Those interested in a career in education can learn more at a recruitment fair hosted by the San Joaquin County Office of Education. Schools in the county have openings for certified positions including teachers, speech therapists, counselors and administrators. Candidate attending the job fair should bring a letter of interest, resume, three letters of recommendation, teaching credentials and transcripts. The job fair is from 8:30 a.m.-11:30 a.m., Saturday, April 5 at San Joaquin County Office of Education, Nelson Education Center, 2901 Arch-Airport Rd. in Stockton. For more information, call Shawn Chavez at 209-468-5952 or email schavez@sjcoe.net.

Tracy police to host 4th annual safety fair in May TRACY -- The Tracy Police Department will host its Fourth Annual Safety Fair on Saturday, May 17. Residents will be able to tour the police station, watch motorcycle riding demonstrations by the department’s traffic safety unit. There will also be bicycle licensing, safety information booths, kids games, and a special appearance by McGruff the Crime Dog. The event runs from noon to 4 p.m. in front of the Tracy Police Station at 1000 Civic Center Dr. and is free. For more information on the event, contact the Tracy Police Department at (209) 831-6614.

April 2014

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CSU Stanislaus unveils fundraising plan

STANISLAUS COUNTY

BRIEFS Nissan awards Modesto dealership for ‘outstanding performance’ MODESTO -- Central Valley Nissan has been awarded Nissan’s prestigious Owner First Award of Excellence for 2013 for outstanding performance in sales, customer satisfaction, and owner loyalty, the dealership’s owner announced. “The Central Valley Automotive Group is so proud of our Central Valley Nissan Store,” said owner John Gardner. “Our staff at Nissan is top notch, going above and beyond to make sure we treat every customer with the utmost respect and care whether they are buying or just shopping. It’s really a simple concept. We’re honored to receive this award and to be chosen as a leader in the overall Nissan customer experience.” The Gardner family founded the Central Valley Automotive group in 1963. The group sells eight brands of new cars. Central Valley Nissan is located on McHenry Avenue in Modesto.

AT&T to hire in Modesto MODESTO -- AT&T plans to hire 19 new employees in the Modesto area, the company announced. AT&T said there are openings include network technicians, retail consultants, and customer service representatives. “As a leader in communications technology, AT&T is innovating and investing across California to make sure our customers continue to have the best products and services available,” said Terry Stenzel, vice president and general manager of Northern California and Northern Nevada president, AT&T. “I am proud of the job opportunities that this creates for Northern California residents.”

TURLOCK -- CSU Stanislaus has established a new annual giving program, Vice President for University Advancement Shirley Pok announced March 26. “I am happy to announce One Purpose, the university’s new annual giving club, which will raise funds designated for student scholarships and promote student success,”Pok said. “My vision for the Division of University Advancement has been inspired by my initial desire to help lead, and be part of, this significant time in the history of the university.” Strengthening relationships be-

tween the region, community and campus is one of Pok’s primary goals for the division, according to CSU Stanislaus. She said she is motivated to reinforce President Joseph Sheley’s initiative to build partnerships between the university and community. “Embracing the region is very important to me, as well as having the region embrace the campus,” Pok said. “The Division of University Advancement is dedicated to reaching out to the community to tell the stories of our campus proudly, broadly and boldly.”

Vice President Pok is raising scholarship money.

Those hired will receive paid training. Benefits include medical, dental, vision, pension and/or 401(k) savings plans, and a wide range of potential career opportunities. Anyone interested in applying for a job can learn more at AT&T’s website http://att.jobs.

Modesto so it can offer its cold storage clients design-build support, construction management, master planning and feasibility studies, the company has announced. “We’ve built numerous facilities in the western region, totaling more than 132 million square footage,” said Stellar’s Food Group Senior Vice President Brian Kappele in a press statement. “While we’ve been very successful in the region, we want to take our service to the next level and provide clients with senior staff close by, in the same time zone, who can readily meet in person when needed.” Stellar has operated several refrigeration parts and service offices along the West Coast for more than 20 years, including its western refrigeration services headquarters in Modesto, but the company said its food clients have asked for a larger presence. David Scheele will head the office, working with Kappele and Mike Netting, divisional vice president Stellar said its clients include many Fortune 500 food and cold storage companies, such as Nestlé, Kraft, Starbucks, Heinz, United States Cold Storage, General Mills, Coca-Cola, PepsiCo, Tyson and ConAgra Foods.

applications as soon as possible – an audit would not give us answers until the end of the year.” Last fall, the DCA began unrolling a new paperless system called BreEZ. Eventually all 37 boards and bureaus overseen by the department will be included. However, according to Olsen, since the BRN’s implementation of BreEZe, thousands of nursing students, teachers and hospital administrators have experienced difficulty with its licensing process. Recent graduates of nursing programs are unable to have their applications processed in a timely manner, or to secure jobs, Olsen said. Olsen will hold the hearing with Assemblymember Adam Gray, who is the chair of the Joint Legislative Audit Committee. “Affordable, quality medical care is already a rare commodity in the Valley, and bureaucratic sluggishness should not be among the reasons why,” said Gray. “I appreciate Assemblymember Olsen’s willingness to collaborate with my committee. We need nurses in our hospitals, not standing in line waiting to turn in a form.” The hearing will be held in Modesto at 2 p.m. on April 3.

Olsen to host town hall on Board of Registered Nursing’s IT problems

Dot Foods makes top 100 on Forbes list

Oak Valley hires new VP, commercial loan officer OAKDALE -- Oak Valley Community Bank has hired Mike R. Garcia to be vice president and commercial loan officer, the bank announced.He will be based out of the 12th & I branch in downtown Modesto. “We are pleased to have Mike join Garcia our commercial lending team. With his extensive background in business and community banking, he is a true reflection of our commitment to hiring experienced professionals who are active in the communities we call home,” said EVP Commercial Banking Group Manager of Oak Valley Community Bank Dave Harvey. Garcia has 10 years of commercial banking experience in the Central Valley with a record of serving the banking needs of the local community, Oak Valley said. Garcia is a past president of Ripon Rotary and a current member of downtown Modesto Rotary. He is the current president of Spring Creek Golf and Country Club in Ripon. Garcia is also a founding and current executive board member and secretary of the Boys & Girls Club of Stanislaus County. He was recently recognized as Graduate of the Year for Leadership Modesto at the 2014 Modesto Chamber of Commerce Gala. Garcia attended California State University, Chico and obtained a Bachelor of Science degree from University of Phoenix in business administration with an emphasis in finance.

Stellar expands regional office in Modesto MODESTO — Stellar is expanding its western regional office in

MODESTO — Assemblymember Kristin Olsen, R-Modesto, will hold a town hall style hearing in Modesto to look into information technology problems at the Board of Registered Nursing (BRN). Olsen had requested an audit of the Department of Consumer Affairs (DCA), which was responsible for the new IT system but believes the hearing will be more expedient. “I want this backlog to be fixed immediately and to ensure this problem never happens again,” Assemblymember Olsen said in a press statement. “Once the State Auditor begins the audit process, the State Legislature does not have access to the subject of the audit. At this time, it is essential the DCA be given every opportunity to tell us what we can do to help them eliminate the backlog of unprocessed testing and licensing

PHOTO COURTESY CSU STANISLAUS

MODESTO – Dot Foods, which has a distribution center in Modesto, has climbed to number 85 on Forbes’ List of America’s Largest Private Companies for 2013. The company’s 2013 revenues of $5 billion determined its position, which is a seven-spot climb from its #92 ranking in 2012 and an impressive 75-spot jump from the company’s #160 first ranking in 2006. “It’s a great honor to appear on this prestigious Forbes list again in 2013. It’s a reflection of the Dot Foods core values and the dedication our employees bring to our customers every day,” said Rich Raham, general manager of the Modesto Distribution Center. Dot Foods said it is experiencing exceptional growth. The company is looking to fill full-time and part-time warehouse personnel positions in all locations nationwide.

Central Valley Business Journal

April 2014

Accountable care organization formed in Stockton STOCKTON -- In an effort to keep health care affordable for Blue Shield members and employers in the Stockton area. Blue Shield of California, Hill Physicians Medical Group and Dignity Health have launched a three-year accountable care initiative, the companies announced March 18. The goal is to provide integrated, cost-efficient care to approximately 14,600 Blue Shield HMO members in San Joaquin County. “This is a natural expansion of our expertise and an important way of helping the patient and the provider,” said Harpreet Grewal, medical director for Hill Physicians San Joaquin Region. “Our accountable care work in Sacramento and San Francisco has helped us develop best practices. We are now confident that these can be adapted to meet the needs of San Joaquin area residents, ultimately lowering the premium costs for our members and enabling our affiliated practices to attract new patients.” The health care organizations said they have formed a commercial Accountable Care Organization (ACO) in order to share clinical and case management information and coordinate comprehensive health care services for Blue Shield HMO members who are assigned to a participating Hill physician. The organizations expect the collaboration will lead to improved quality and efficiencies in care with no health care cost increase in the first year, and low,

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TAXING MATTERS Continued from Page 45

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St. Joseph’s Medical Center is joining Blue Shield and Hill Physicians Medical Group to form a new accountable care initiative.

single-digit increases after that. The ACO will also include Dignity’s hospital, St. Joseph’s Medical Center in Stockton. “As the largest hospital in San Joaquin County, we are pleased to be part of this initiative to improve access to high-quality, affordable health care,” said Donald Wiley, president and CEO of St. Joseph’s Medical Center. “We have a longstanding mission to provide a just health system

and meet the needs of our community.” This ACO is the third such arrangement between the three organizations, and Blue Shield’s 12th such program in the state. The first collaboration between Blue Shield, Dignity Health, and Hill Physicians has served CalPERS $members in the Sacramento area since 2010, and a second program launched in 2011 serves employees of the City and County of San Francisco.

practically speaking, you are looking at a six-year statute as the burden of proof is on the IRS for fraud, and the criminal statute is also six years. So, it is best to retain your records for six years unless you are certain you will not have a substantial omission of income or fraud in your return. Bank Accounts You should maintain separate bank accounts for your businesses, rentals, and personal accounts. This makes it much easier to survive an audit or a tax collection problem. If you maintain all the separate accounts at the same bank, you can transfer money between accounts, which makes tracing much easier during an audit and in case of collection problems. As always, if you have any questions regarding a tax issue, consult your local tax attorney or certified public accountant. Please note that pursuant to IRS Circular 230, the written advice provided in this article was not intended and cannot be used as a basis for avoiding the assessment of any tax penalty. - Jason W. Harrel is a Partner at Calone & Harrel Law Group, LLP who concentrates his practice in all manners of Taxation, Real Estate Transactions, Corporate, Partnership and Limited Liability Company law matters. He is a certified specialist in Taxation. Mr. Harrel may be reached at 209-9524545 or jwh@caloneandharrel.com

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See Our Progress

our customers are our neighbors. the communities we serve as Pg&e employees are where we live and work too. that’s why we’re investing $4.5 billion every year to enhance pipeline safety and strengthen our gas and electric infrastructure across northern and central California. We want to tell you more about our activities right here in your community.

“I’m a third generation PG&E employee. My father and grandfather also worked for PG&E here in the Central Valley. Being part of this community makes me feel a sense of pride in the work I do. At PG&E, we’re committed to getting the job done right — for your family and ours.” –scott salyers

throughout the Central Valley, PG&e is making progress every day. We have pressure-tested more than 50 miles of gas transmission pipeline; replaced nearly 20 miles of gas transmission pipeline; invested more than $490 million into electrical improvements; and installed smart grid technology on more than 110 electrical circuits benefiting more than 270,000 customers in the Central Valley. in the event of an outage, this “self-healing” technology minimizes the amount of customers who are without power for an extended period of time. together, we are working to enhance pipeline safety and strengthen our gas and electric infrastructure — for your family and ours. ®

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Central Valley Business Journal

April 2014