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Is high-speed rail building a bullet train to nowhere? The plan to build a high-speed rail system took a weird detour in February when the California High Speed Rail Authority suddenly decided to run its first phase between Kern County and San Jose. We learned more about the plans during a hearing March 28.The revised plan would lay Sharon the first 250 Alley Calone miles of track between San Jose and the Bakersfield area and now aims to offer service on the line in less than a decade. But here’s the shocker for our region: it turns out the changed plans call for cutting out Merced until at least 2029. That’s a big change from the original plan that called for the first phase to run between southern California and Merced. The announcement took a lot of people by surprise, including Assemblyman Adam Gray who represents Merced. “Not only is the Authority breaking its promise to the people of the

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Northern San Joaquin Valley by eliminating Merced from the initial segment, but the new proposal doesn’t connect the bedroom communities that need the train to the Bay Area, ” said Gray. Gray’s right. Bypassing Merced makes no sense. People in the southern San Joaquin Valley don’t work in the Bay Area. However, tens of thousands of people in Merced, Stanislaus and San Joaquin counties travel north and then west over the Altamont to work every day. “We do not need to build 90 miles of track south of Fresno while failing to reach Bakersfield. Virtually no one will commute from Shafter to San Jose for work,” Gray said. “That money should be spent connecting the communities of Merced, Modesto, and Stockton where thousands of people make this commute every day.” When we talked with Jeffrey Michael of the University of the Pacific’s Business and Policy Research Center about high-speed rail a year and a half ago, he said Merced stood to benefit from the plan, especially if proposals to connect all of California’s train system came to fruition. Merced would become a hub connecting the northern Valley, the Bay Area and Southern California. The Authority said it changed course to keep costs down, in large

PHOTO COURTESY HIGH-SPEED RAIL AUTHORITY

Revised high-speed rail plans now call for laying the first 250 miles of track between San Jose and Kern County.

part because the southern segment will involve expensive tunneling through the Tehachapi and San Gabriel mountains. It’s the phase everyone knew would be the toughest. What if they can’t do it? “That’s the train to nowhere scenario,” Michael said back in November 2014. “That would be ridiculed.” So, now the authority is building another kind of train to nowhere in an effort to keep momentum for a project that’s costing way more than promised.

And what about Merced? The community had just started planning a new transit center in preparation for what appeared to be its role as a regional transportation hub. “We owe you and your constituents an apology,” High-Speed Rail Authority Chairman Dan Richard said to Gray during the March hearing. Lame. God bless America, Sharon Alley Calone

April 2016

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Council studies water during special session By ELIZABETH STEVENS Business Journal editor estevens@cvbizjournal.com

STOCKTON — Two things seemed clear after the Stockton City Council’s study session Saturday: everyone wants clean water as free from chemicals as possible, but nobody wants to pay more for water. The council and the public heard details about the proposed 26 percent water rate hike for customers in the north and south parts of the city. Staff said the increase was needed in part because revenue has dropped due to residents’ successful conservation efforts. City staff also explained, again, why chloramines are now being used to treat water in north Stockton. About 80 people turned out for the council’s study session on the water matters. While that’s more than the number that attend many City Council meetings, it was far fewer than the 1,200 who attended the mayor’s February town hall where activist Erin Brockovich spoke. Some residents were angry they would be required to pay higher rates for water, especially after conserving water. “I’ve never seen anything so outrageous,” said Ruth Davis. One mother held her baby while she spoke and said that adding the chloramines and then hiking water rates

ELIZABETH STEVENS/CVBJ

City Council member listen to public comments during study session.

was “adding insult to injury.” Zoyla Moreno said simply, “Shame, shame, shame, shame.” Water consultant Shawn Koorn said residents used about nine billion gallons less water than normal in 2015, which means the city brought in about $3 million less in revenue than forecast. The result is that Stockton is unable to meet its mandated revenue to debt ratio on the bonds it owes for the Delta Water Project. The Municipal Water District pro-

poses to increase water rates overall by 26 percent on July 1. That would be followed by an increase next year of 5.5 percent, an increase in fiscal years 2018-19, 2019-20 and 2020-21 of 3 percent. The total increase would be 40 percent over five years. Under the proposal, homeowners who use 15 units of water would pay the average water bill of $54.29 in the summer would see their bills go up to $61.35 after July 1. MUD also suggested mitigating the

impact to residents in single-family homes by offering a two-tiered rate system whereby the first 15 units would cost $2.15 a unit and each unit beyond that would cost $2.57 for the first year. Those rates would go up slightly in each of the next four years. The result would be that residents who only use 15 units of water would see little or no increase in their overall bills. The City Council was expected to vote on the rate increase proposal March 29. (The Business Journal will report results of the vote on its website, www.cvbizjournal.com.) Chloramines In late January, the city changed the way it treats water for customers in north Stockton. Instead of adding chlorine to the water, it adds a derivative of ammonia called chloramines. The change was made to avoid the cancer-causing by-product TTHM that can be created when chlorine is used to treat high levels of organic carbon. Acting MUD Director Robert Granberg cited studies by the Centers for Disease Control that said chloramines used at the low levels Stockton uses them are safe. He also said it was a more cost-effective way to treat water. “The argument to avoid chloramines is political, not scientific,” Granberg said. Granberg said MUD would continue to use chloramines to treat the water unless the council changes its policy.

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STOCKTON — If there’s one industry in the Central Valley that’s struggling to meet the demand for qualified employees, it’s trucking. The trucking industry currently faces a nationwide shortage of about 35,000 drivers, according to the American Trucking Associations. By 2023, the shortfall could be 240,000. Positions for tractor truck drivers topped the list of jobs in San Joaquin, Stanislaus and Merced counties in June. In the Stockton area, there were 670 positions open. In Modesto, there were 570 and in Merced there were 196. There are a number of reasons for the shortage, some regulatory, some demographic and some personal. “The kind of statistics we’re getting back from various groups are that for every five to seven jobs there are available out there, there’s

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STOCKTON – The Stockton Conference and Visitor’s Bureau is looking at new ways to improve the city’s image and bring new visitors, businesses and residents to the area. That efforts will get a jumpstart by a new contract with Nashville-based North

Amazon to hire 700 more workers.

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MERCED — The Central Valley is mostly known as an agriculture center, so it comes as a surprise to some that Merced County topped the nation with the highest growth rate in manufacturing sector employment last year. Of the fastest growing U.S. manufacturing metro areas in 2014, two-thirds increased their manufacturing job base. MerTruck driver William Perry has worked at Antonini Freight Express last year. WAYNE DENNING/CVBJ ced grew the fastest however, Local businesses promote followed by Danville, Illinois one qualified driver to fill that He opened employee health. a motorcycle shop in and Flint, Michigan. know it’s high demand. I can get need,” said Greg Stanfill, re2008 but had to close within a year Merced County’s increase of a job anytime, anywhere I need cruiting manager for Turlockdue to the recession. After that 2,200 manufacturing jobs from so I won’t be worrying where based Northern Refrigerated experience, the steady work in January 2014 to January 2015 my paycheck’s coming from,” Transportation. trucking became more appealing. was 26.2 percent, far outstripsaid Perry. “I’ll always have food William Perry worked as a Page into 14 “I decided, let me go back ping second-place Danville’s driver for Pepsi from 1996-2000. truck driving again because I 14.9 percent. Please see TRUCKING Page 11 According to the U.S. Bureau of Labor Statistics, Merced About 46 percent of 3 and 4-year-olds BUSINESS JOURNAL PHOTO in California attended preschool in 2013, County had 8,400 manufacaccording to the advocacy group Kids Count. turing jobs in January 2014. Star Destination Strategies By January 2015, those jobs said. It will be paid from money us define what is what is auin which the company will increased to 10,600 in a total Visit Stockton receives from the thentic, ownable and distinct develop a new “brand” for the workforce of 116,000. hotel tax and district assessments. about Stockton.” city of Stockton. “It was a surprise to find The first step includes surDefining that “DNA” is one “What we are looking for is Merced County leading the veying a variety of residents, of the most important parts of what any company wants,” said nation in creating and growbusinesses and assorted officials any rebranding effort whether Wes Rhea, CEO of the Stockton ing manufacturing jobs,” said about the community’s ameniit’s a city or a company, accordConference and Visitor’s BuChris Engle, president of Headinside our region’s By ties andGoculture. ingELIZABETH to Carrie STEVENS Sass, owner of Unified School District, legislareau/Visit Stockton said. “To light Data of Austin, Texas, the Pacific started its Beyond Our historical theaters.leads Business Journal “All that editor research Sass Public Relations to a find out what is the best way to in Stock-tors’ offices and others were on Gates Reading by Third company that did the data analestevens@cvbizjournal.com DNA for the community,” said Initiahand ton. to discuss She said ways to keep that gathering reach them (visitors).” ysis. “The area’s manufacturtive to address the problem. The North Star Destination Strateinformation the most impor-children from falling behind. The project will run four ing economy is comprised of purpose of the summit was to STOCKTON --isThe gies president and CEO Don UniverTesting shows many children months and cost $80,000, Rhea convince business leaders to sup- two-thirds food manufacturing sity of the Pacific hosted a McEachern. “That will help in the region are not performsee STOCKTON IMAGE Page 20 and one-third metal products. Page 20 businessPlease port it and to show them how. education summit in ing at grade level. The Literacy When commodities are packOne proposal was support for mid-June to address what it Report Card Pacific released aged or the original commodpublic spending on preschool. believes is one of the Central last summer found that only ity, say tomatoes, is changed Scan Lenny Mendonca, chairman of to Notes.............Page Valley’s most pressing issues Publisher’svisit 34 percent of third graders 2 into something else – like tothe child advocacy group Chil-- early childhood education. in San Joaquin County were On the Web.......................Page 4 and “Like” mato paste – that’s agricultural dren Now, said every $1 invested us at Representatives from the proficient readers. Research Briefs......................Pages 40, 41 manufacturing.” in early childhood education can advocacy group Children has found that children who Legals.....................Pages 42, 43 According to Engle, Merced save $7 in the long-term through Now, First 5 San Joaquin, are not proficient in reading by County has plenty of manufacreduced costs associated with Downey Brand, Wells Fargo, third grade fall behind and are turing businesses, including San Joaquin A+, Stockton at risk of never catching up.

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Brie Parmer founded Tinker Tank to promote building.

Parmer and co-worker at Tinker Tank.

By PATRICIA REYNOLDS Business Journal writer

ers, and soldering and welding equipment also fill the space along with a multitude of hand and power tools. While Downtown Tinker Tank hopes to attract hobbyists, one of its main purposes is to promote building. That’s why the business is a California Social Purpose Corporation. “It means we have goals and our goal is to teach the community and empower the community through building, to give them better jobs or to get them back into the workforce or to teach children about engineering,” she said. One way Tinker Tank hopes to meet these goals is through client membership. Members pay a monthly fee that gives them unlimited access to the space, equipment, tools, computers and literature onsite. Open every day from 10 a.m. to 10 p.m. except Tuesdays, Tinker Tank’s hours satisfy a wide variety of work and school schedules. “We have space for homeschooled children who want to come in and learn things or if it’s the entrepreneur. We have some that are trying to make a patented product. They can come in during times when no one is here or they can come after work. There is ample time for that,” Parmer said. The business currently has 32 members including families, students, professionals and retirees, but it hopes to grow to 150 during its first year. Member Samantha Irizarry enjoys using the laser etching and cutting

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MODESTO — A kitchen island, car speaker boxes, a custom guitar and jewelry are just some of the projects “do-it-yourselfers” are constructing at Downtown Tinker Tank, a new business that brings the makerspace concept to Modesto. “It’s part of what’s called the maker movement. It’s all like DIY, instructables,” said Downtown Tinker Tank owner Brie Parmer. “There’s a whole maker manifesto that says if you can’t take it apart, you don’t own it,” Makerspace businesses provide shared workspaces for customers but vary in their creative focus. Parmer decided to base her makerspace around tools and equipment clients wouldn’t typically own themselves. “What was really important to me is you can learn coding and stuff like that on a computer at home, but all the stuff we have in here is stuff people don’t have access to generally just for financial reasons,” said Parmer. The 3,000-square-foot space in downtown Modesto houses equipment such as a Shopbot 5-horsepower router and cutter that can handle wood, plastic, rubber and acrylic as well as a 54-inch vinyl printer and cutter. Standard sewing machines, an industrial leather sewing machine, serger, 3-D print-

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machine to fabricate gifts for friends and family. She enjoys the space and availability of tools to do her work. “At home you often have to dig through your garage for an hour to find or get out the tools you need to accomplish a simple task,” she said. “Here, I walk in and I can pull anything I need off the wall, and get going without obstruction. When I enter the makerspace I find a nice open space where I can spread out and start working.” Tinker Tank’s classes provide another avenue for promoting creativity and building. While all clients must take Check Out classes prior to using any piece of equipment or tool, Skill Development and Make and Take courses offer builders in-depth knowledge of a specific tool or discipline. Parmer and her two employees currently teach those courses but the ultimate goal is for members to gain enough expertise to become paid instructors as well. “We want to be creating employment for them. We also want people to work out of this space. You come in here, you build stuff, you sell the things you are making and you can teach out of the space. It’s a shared workspace in addition to a school,” said Parmer. In order to keep membership and class fees affordable and accessible, the company also takes on building projects. “The idea behind the custom jobs is

if you can’t get that done somewhere else, we can do that,” Parmer said. Justin W. Capp Engineering and Design of Modesto contracted with Downtown Tinker Tank to build furniture for the firm’s downtown office. “We have used them to build some shelving units for our engineers and designers, and most importantly our desks for our entire staff. So we have these phenomenal crescent-shaped pieces of art, really, that are fully functional,” said Justin W. Capp’s business administrator, Michelle McKinnon. Not only does McKinnon appreciate her firm’s new furnishings, she enjoys taking advantage of Tinker Tank’s downtown location. “Personally, I get to spend my lunch break and after work, learning and exploring and discovering my creative side,” she said. Downtown Tinker Tank future plans include adding a second larger campus that will enable the firm to offer forging and glass blowing capabilities. Parmer also hopes to provide space for customers who want to rent an office for the day. Parmer is committed to remaining downtown. “We wanted to be where it was centrally located, and also I feel that a place like this is good for downtown,” she said. “It fosters art, it fosters creativity and it’s a thing to do. We need more things to do downtown.”

Central Valley Business Journal

April 2016

Maciel lays out Tracy’s wins, challenges By ELIZABETH STEVENS Business Journal editor estevens@cvbizjournal.com

TRACY — Business leaders in Tracy learned more about the challenges and opportunities that face the city during Mayor Michael Maciel’s State of the City address, March 17. Among the most immediate challenges facing the city is the fact that Measure E, which raised the sales tax in Tracy by a half-cent, expired at the end of March. Maciel said it means a significant loss of funding for the city, but administrators are optimistic development and the growing economy will help make up revenue. City staff are looking at other solutions, including the possible development of an annual community faciliELIZABETH STEVENS/CVBJ ties district fee for new housing units to help pay for police, fire and utilities. Tracy Mayor Michael Maciel delivers his second State of the City Address at the Grand Theatre. Maciel said that Tracy and the ment, Maciel announced that the new ploy about 260 people. Maciel said the southern part of San Joaquin County tenant at the International Park of is expected to bring in a half are growing and benefiting by attractOur Financial Professionals are Commerce knowledgeable and experienced company will be Smucker’s, which million dollars in sales tax annually. ing residents driven out of Silicon will occupy Valley the high costof of financial housing. disciplines in a by broad array — atonearly helphalf-million you ensure that In mid-March, Sutter Gould Foundation broke ground on its $30 million square-foot facility. Prologis also has “The Bay Area is built out and yourout,” strategy personalized, balanced and a tenant for its complete. spec building, and medical center on Eaton Avenue next priced Macielissaid. to Sutter Tracy Community Hospital. Maciel said an announcement on who The mayor’s address, entitled “AcFinancial Investments: Management: that is will come Risk soon. The building will be 45,000-square tive, Innovative, Connected — the Tra- Strategies: In addition, Medline, an online medifeet, will accommodate 30 physicians Fixed-Income Investments cy•Advantage,” was delivered at the • Asset Allocation • Life Insurance Our Financial Professionals are knowledgeable and, will experienced calPlanning supplies company soon open its and is scheduled to open in 2017. Grand Theatre in downtown Tracy. • Equity Investments • Retirement • Disability Income Insurance 1-million-square-foot facility and that em Maciel’s address was generally posi in In highlighting economic developa broadPlanning array of financial disciplines — to help ensure • Education • are Education Funding Our Financial Professionals are knowledgeable and experienced • you Long-Term Care Insurance Our Financial Professionals knowledgeable and experienced • Traditional Brokerage • Survivorship Planning your strategy is personalized, balanced and complete. indisciplines a broad array of help financial disciplines in a broad array of financial — to you ensure that — to help you ensure that • Fee-Based Financial Planning • Estate Planning your strategy is personalized, balanced and complete. your strategy is personalized, balanced • Annuities Financial Strategies:and complete. Investments: Risk Management:

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tive and pointed to steady improvement in the economy and the fact that at 7.6 percent, Tracy’s unemployment is the lowest in San Joaquin County. He said 6,992 new jobs were created in Tracy last year. He also showed a slide of a map that highlighted 10 locations where new housing is being built. Business leaders also heard from economist Jeffrey Michael, director of the Center for Business and Policy Research at the University of the Pacific. Michael said that the federal government has included San Joaquin County in the Northern California mega-region which also includes Sacramento and the Bay Area. Tracy, because of its location and logistics industry, is playing a key role. In fact, he said San Joaquin County ranks second, between San Francisco and San Jose for job growth over the past 12 months. “The county recovered its pre-recession level of jobs in about the summer of 2015,” Michael said. “That’s faster than we predicted.” He predicts job growth for San Joaquin County this year will be 3.7 percent. He said Tracy’s median household income, at $78,000, is back at 2010 levels. Demand for housing is also increasing, which is driving the home construction market in the southern part of the county.

April 2016

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Amazon’s cargo planes land at Stockton Metropolitan Airport daily at 11 a.m.

Amazon officially flying cargo from Stockton By ELIZABETH STEVENS Business Journal editor estevens@cvbizjournal.com

STOCKTON — Amazon has officially joined the air cargo business, and Stockton has a role. Air Transport Services Group, the parent of the cargo company that began operating at Stockton Metropolitan Airport in February, has signed deals to lease and operate 20 Boeing 767 jets for Amazon Fulfillment Services Inc. The company confirmed the deal to the Cincinnati Enquirer newspaper in early March. Air Transport International began flying out of Stockton’s airport on Feb. 1. ATSG is its parent company. At that time, there had been speculation that ATSG was putting together a fleet for its own air delivery service with the goal of providing one and two-day deliveries for Amazon Prime customers. “This has been rumored for quite a while,” said logistics industry expert Tom Caporaso of Clarus Commerce. “But I think at its core, adding a potential cargo fleet lets them really control and optimize the delivery process.” According to the Enquirer’s story, ATSG granted warrants giving Amazon a 19.9 percent stake in the company. Amazon can buy the stake over the next five years at a price of $9.73 per share, based on ATSG’s Feb. 9 closing price, the newspaper said. In November, online magazine Motherboard reported on an operation called Aerosmith that was flying in and out of four airports in Allentown, Pennsylvania; Ontario, California; Tampa, Florida; and Oakland. Amazon has distribution centers less than 60 miles from those locations, the report said, which led analysts to believe Amazon was be behind Aerosmith.

Since then, ATI began flying out of Stockton. Amazon’s fulfillment center in Tracy is 17 miles from the airport. Another is located in Patterson 38 miles away. One flight a day arrives at 11 a.m. and departs at midnight. “We’re thrilled,” said Stockton Metro Airport Director Harry Mavrogenes. “We feel we’re on the ground floor of an exciting opportunity.” Mavrogenes thinks Amazon will revolutionize air cargo by eventually offering cargo service to other businesses much the same way Fulfillment by Amazon handles order processing and delivery for other vendors. Caporaso agrees Amazon could be laying the groundwork for something bigger. But right now, the motivation appears to be the e-commerce giant’s need to control deliveries. During the 2013 Christmas shopping season, Amazon received complaints from customers whose orders failed to arrive on time. Caporaso said there was a lot of finger pointing at UPS and FedEx, and that’s when rumors of Amazon’s plans to start its own air cargo fleet started to emerge. In addition, Amazon needs to reduce its shipping expenses, especially as many customers don’t pay directly for shipping. “This is quite a bit of money they’re spending on shipping costs,” Caporaso said. “I think it was something over $11 billion last year. If they can get the fleet in place and get that optimized, I’m sure they’re also looking at it from a cost-reduction standpoint.” Decreasing costs and boosting reliability has become even more important as the company builds customer loyalty by offering so-called free shipping through its Amazon Prime program. “At the end of the day, free shipping’s really not free,” said Caporaso. “Someone has to pay to get that box from the warehouse to the front door.”

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Central Valley Business Journal

Valley entrepreneurs in the hot seat

April 2016

Talking pinatas and tattoo reviews: the Valley shows off its innovation By SIM RISSO Business Journal writer srisso@cvbizjournal.com

STOCKTON — Getting a business off the ground isn’t the easiest thing to do. Even a good idea sometimes requires a bit of help to get it off the ground. That’s where the seventh annual San Joaquin Entrepreneur Challenge comes in. It’s a two-round competition similar to the TV show “Shark Tank,” in which entrepreneurs pitch their business ideas. At the end of the two rounds, a total of $10,000 in cash and $10,000 in services is split between the two winners. The first round of the competition was held March 16 and featured 16 business ideas. Eight of those moved on to the second round. The competition featured a wide array of proposals and showed the Central Valley can be a place of innovation. One idea proposed was for a tattoo review website. Its creator, Jack Relva of Stockton, likened it to Yelp for tattoo artists. Most tattoo reviews focus only on shops, but reviewers on Relva’s site would review the artists themselves, as well as contribute to

an overall shop score. The goal is to connect customers with someone who specializes in what they’re looking for. “Right now if you were to go look for a tattoo and you wanted something with some Japanese flare, like you wanted a dragon, you can look on Yelp for good artists or good shops,” said Relva. “You could find a four-star, five-star shop, but it doesn’t give you too much information on what they do specifically.” Octavio Valencia of Merced pitched a product he called “Crazy Talking Pinata,” which he has already trademarked and developed a production prototype for. His piñata would address three common problems with pinatas: they’re hard for small children to break; they break too slowly, which creates a danger as children rush to the spilling candy while a child is still hitting the pinata; and sometimes the first or second person might break it so remaining children never get a chance. Valencia’s piñata is remote controlled and allows users to open it when they want or program it to break after a certain number of hits. And of course, as the name implies, it talks.

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Merced’s Octavio Valencia pitches his Crazy Talking Pinata before the Challenge panel.

“Having a piñata that can talk back with every hit that it takes is just super cool,” said Valencia. “People can record their own messages, whatever they want the piñata to talk back at them. If they want to mock their kid, they can record those type of messages; if they want to be encouraging, they can put encouraging messages in it with the kid’s name.” Erin Long and Holly Skidmore of Oakdale developed the Body Bandit, a hands-free device that allows users to

easily carry their belongings. It can be worn five ways: on your arm, your leg, on a belt, on belt loops or it can be carried like a purse. “I thought about this when I was out dancing with some girlfriends, and everybody had a purse,” said Long. “There was one person sitting at the table lonely watching these purses while everybody danced.” There were also more serious ideas,

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April 2016

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Central Valley Business Journal

April 2016

Soaring walnut prices come back to earth By KENT HOHLFELD Business Journal writer khohlfeld@cvbizjournal.com

MODESTO — What goes up, must come down. Valley nut farmers are finding out that applies to more than just the effects of gravity. “Our prices have dropped 40-60 percent in the last year,” said Aaron Martella, co-owner of Martella Farms and president of Grower Direct Nut Company, which grows and sells walnuts. Both walnut and almond prices have seen a decline in the last two years, but walnuts have been the most dramatically affected. A near perfect storm of circumstance has hit the walnut industry. The U.S. dollar has strengthened, making exports more expensive. Acreage devoted to the crop has soared since 2000 from 200,000 bearing acres to 300,000. That has led to an increase from 239,000 tons produced in 2000 to an estimated 602,000 tons in 2015. At the same time, though, foreign supplies from China and Australia have increased adding to the glut of product on the market. While supply has soared, demand has shrunk in the last couple of years, largely because of economic conditions abroad. “We had a period where there has been more demand than supply. That is

why prices have been high,” said Martella. “Worldwide food inflation has hit, and finally it just stalled consumption.” Finally, the falling markets and problems at U.S. ports have made it difficult to get walnuts to customers already under contract. The host of problems has led to prices that hit more than $3.00 per pound, depending on variety and quality shrinking to less than a $1 per pound for some varieties. Farmers received an average of $1.75 per pound in 2014. Even when prices initially jump as they did in September when prices hit $3.50 for Chandler light halves and pieces, the hike can be fleeting. By mid-February, the price had dropped to $2.60 leading buyers to reject loads for any reason in order to re-negotiate with the sellers for lower pricing. “The bottom line is, around the world, we have a lot of inventory that lasted past the first of the year,” said Martella. “Japan and Korea are still working through inventory.” The falling prices could have a dramatic impact on the industry as supply may shrink in the next several years. “In 2009 through 2011, there was a lot more development in orchards,” said Walnut Bargaining Association general manager Jonathan Field. “There are about 30,000 acres that are marginal acreage that can come out of production.” Field’s group is a cooperative that rep-

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Some Valley growers say their prices for walnuts have dropped as much as 60 percent in the last year.

resents growers in establishing fair and equitable prices for products. He said farmers recently have enjoyed some of the best times in the industry’s history. “We enhanced our consumption base with the low prices in 2008 (during the worldwide economic recession),” said Field. “Recently, that led to prices being pretty consistent and extraordinarily high.” Getting back to those high prices will likely take years. Returning to the basics of broadening walnut consumption will be key. The industry struggled to move 240,000 tons 25 years ago. That changed when health studies in the late 1990s touted the health benefits of walnuts. “In 1993, the first paper on the health effects of walnuts was published,” said Walnut Board of the California CEO and Executive Director Dennis A. Balint. “That began a wave of health research that lead to 170 papers being published about the health benefits of walnuts. Over the last 15 years demand has been strong.” In an effort to boost demand once again, the walnut board has begun an ad campaign that includes 12 weeks of TV commercials and eight months of print ads. As the campaign has begun, the board has seen visits to its website jump from 2,000 to nearly 12,000 per day.

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“We probably should have started this campaign two or three years ago before demand softened,” Balint said. “But we didn’t, and now we have a chance to rebuild demand in the industry.” The walnut board’s efforts are largely focused on boosting domestic consumption. That has also meant changing the attitude of certain sectors of the food industry. Balint said that many large scale food manufacturers have shied away from using walnuts in their products due to misconceptions. “They think nuts were too expensive and in short supply,” he said. “That will change over time. The cycle for industrial acceleration usually takes 18-24 months.” In the meantime, the price outlook for area farmers isn’t particularly optimistic. Rabobank, one of the largest agricultural lenders in the country, sees walnut prices averaging in the $1 to $1.10 per pound range. Field believes those projections are too low. He said that increasing demand will lead to higher prices eventually. “I am a little more optimistic,” he said. “If we get some of those tariffs reduced, I think we have some opportunities to boost overseas sales. We also need to work to increase the domestic demand.”

April 2016

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ENTREPRENEURS Continued from Page 8

including a ventilator reservoir, which Michael Urner developed as part of a school project at UC Merced in 2013. The ventilator takes the air that goes to infants in neonatal intensive care units and passes it through the reservoir, which sterilizes the oxygen and helps prevent the spread of lung infections. “It is a niche product, this thing we invented,” said Urner. “It solves a very specific problem, but it’s saving babies. I think it’s worth our time to figure it out.” The Northeastern California Small Business Development Center, located at Delta College, organizes the competition as a way to encourage local entrepreneurs to start their own businesses. The panel of judges offers critiques so the entrepreneurs know what their strengths are and how to improve their projects. By the time contestants get through the process, they know more about how to make their products or services stand out, how to get it to market and attract customers and what it will take financially to be successful. “I think the contest is a good process to help people do what we call business planning,” said Small Business Development Center Director Nate McBride. “It’s kind of a mini- business plan in some respects, and those

are the things people have to figure out to launch a business anyway.” Four others also moved on to the second round: Hien Ho of Modesto for his doodle-able backpack, Erin Bell for her essential oils diffuser, William Ames of Modesto for his one-person tent that comes with a sleeping bag and air mattress and Agustin Roldan of Merced for energy-monitoring software that detects weaknesses in food processing and other industries. The second round of the competition will be held April 13 at the Stockton Golf and Country Club.

The Challenge panel listens to pitches from local entrepreneurs.

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STOCKTON — Commute Connection recognized the University of the Pacific with its first ECO Award for demonstrating excellence in commuter options. The school was honored for its efforts to foster an environment to promote sustainable transportation options at its worksite. “It is appropriate that the University of the Pacific be the first recipient of the SJCOG Commute Connection ECO Award,” San Joaquin Council of Governments’ Executive Director Andrew Chesley said in press release. “Pacific is not just a major community asset when it comes modeling best practices, but many in the community look to the university as an educational leader in sustainability and environmental stewardship.” The school earned the award by demonstrating and implementing strategies, promotions, and incentives to encourage employees to consider transportation alternatives. The university’s efforts included installing 25 carpool/vanpool/EV preferred parking signs and taking part in the Bike to Work Week Corporate Challenge. The university also houses a sustainability committee and implemented numerous telecommuting policies. The University of the Pacific was recognized at the San Joaquin Council of Government’s Board of Director’s meeting on March 24 and was previously honored by the Greater Stockton Chamber of Commerce at its REXPO event on March 10.

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Central Valley Business Journal

April 2016

Lodi remembers packing giant Don Reynolds By BOB BALGEMANN Business Journal writer bbalgemann@cvbizjournal.com

LODI — There is a lot of evidence that Donald Richard Reynolds once walked this ground. M&R Company, Reynolds Packing Company, Oak Ridge Winery, Frontier Community Builders, Quality Bins Company and Reynolds Nailing Company are some of them. Their successes were due in part to his presence, vision and leadership. “He will be sorely missed,” said San Joaquin Farm Bureau Executive Director Bruce Blodgett. Don Reynolds died at home on March 7 at 87 years of age. The story begins in the 1950s and features Don Reynolds and his cousin, Rocky Reynolds, who died in 2013. They bought a nailing machine for $1,500 and started Reynolds Nailing, which led to today’s M&R Company. Theirs was a partnership built on a handshake. A company history says Don and Rocky built boxes and bins for canneries and for growers of asparagus, cherries and grapes. Together with Tony Maffort, they created the M&R Company, which had just two sheds when it opened on Lockeford Street in 1964. Four years later the operation moved to Tokay Street, where an

PHOTO COURTESY REYNOLDS FAMILY

Don Reynolds was celebrated for his vision and leadership in Lodi agriculture.

80,000-square-foot facility stands today. It processes and packages asparagus, cherries and grapes. Its other partner, Podesta Family Farms, handles hard squash, cherries and peppers. A more recent enterprise is Reynolds Ranch, the 220-acre residential and commercial development at Highway 99 and Harney Lane in Lodi. Pat Patrick, president and CEO of the Lodi Chamber of Commerce, called it “a living legacy” that would be “a vital part of the community for many

years to come. It’s a quality development that bears his name.” The project is anchored by retail giants Costco and Home Depot and includes Sleep Train, Subway, Five Guys Burgers and Fries, as well as Verizon and Starbucks. There is a residential component with future plans for more retail, senior citizen housing and senior citizen care. Eight days after his death a standing-room only crowd packed Chardonnay Hall at the Lodi Grape Festival

Grounds to celebrate Don Reynolds’ life. They shed a few tears but mostly laughed and reminisced with the speakers who had been closest to him. Then they ate lunch together. Lodi Mayor Mark Chandler was there. He called it the largest turnout he had seen at such a service, with more than 400 people. They were lined out the door of the hall nearly 30 minutes before the event was to start. “That alone showed you how well respected he was,” the mayor said. Chandler knew Don since the fall of 1991, when he came to Lodi to run the Lodi Winegrape Commission. “[Don] was always a gentleman, was highly respected by his peers and loved by his family and employees,” Chandler said. “He was a giant in the fruit-packing business. Grapes that he packed went to home winemakers and fruit brokers all over the country, particularly on the East Coast.” Emcee Bob Feist, a newspaper owner who knew Don for 50 years, called that association “a real treat. He believed or he wouldn’t be where he was today. He had a vision and he followed that vision.” Don’s widow, Gina, whom he married on “11-11-11,” was at the party and prepared a few words that were read by Feist. “We had a happy life together,” she Please see REYNOLDS Page 19

Mitchell says economy is study in contrasts STOCKTON — John Mitchell is a colorful presenter, as economists go, but even he had trouble making this year’s roundup of the slow-butsteady economy sound new and different. “We are now in the 81st month of this particular expansion,” he told business leaders at the Bank of Agriculture and John Mitchell Commerce’s business forecast breakfast on March 18. Gross domestic product has increased by about 2 percent a year for the past six years, and Mitchell said he expects to see that continue for another couple of years. He said people shouldn’t be overly concerned about the economy based on the volatlity of the stock market at the beginning of the year and reminded the audience that after the crash in 1987, it was several years before the country was in recession. “Weakness in the market doesn’t necessarily indicate something bad is coming right away,” Mitchell said. He speculated that part of the rea-

son for the slow recovery from the recession was that people are shy about taking risks after losing so much or seeing others who lost jobs or homes. “I think you could say our complacency has been shattered,” he said. While employment is growing in every sector but mining and logging, wages have not gone up as much as expected. Mitchell believes it’s because of shifting demographics and that as baby boomers leave their jobs at the end of their careers, millennials are filling the vacancies but at lower salaries. Mitchell also said the global economy is changing with zero or negative interest rates in many countries. In addition, the dollar is gaining strength, which makes it more difficult for America to export goods. The dichotomy of the current economy extends to oil as well. Dropping oil prices have been good for consumers, with gas prices down 21 percent in February. However, the United States doubled its oil production to 9.7 million barrels a day last year. When prices plunged, economies in North Dakota, Oklahoma and Kern County, California where natural gas is produced, went down along with them.

April 2016

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MedicAlert has new home, same mission

By PATRICIA REYNOLDS Business Journal writer preynolds@cvbizjournal.com

SALIDA — After calling Turlock home for 60 years, MedicAlert Foundation relocated to Salida in March. The firm’s new smaller space is a better fit for MedicAlert’s operations. Still, making the decision to relocate was not an easy choice. “It was a difficult decision, obviously when you’ve been part of a community for that long, you’re going to be very careful with the thought process there,” said MedicAlert President and CEO David Leslie. Choosing the Salida location enabled MedicAlert to remain close to the firm’s original site, an important element in selecting a new home. Being farther north also offers new hiring opportunities. “Folks who currently commute to the Bay Area might now have an alternative closer to home,” said Leslie. With the relocation, MedicAlert wants to become known as the best place to work in what it calls “California’s Other Valley,” an employment choice other than Silicon Valley. Founded in 1956, MedicAlert is a

nonprofit organization that designs and sells identification products linking emergency medical responders to an individual’s medical records. The foundation offers more than 700 styles of bracelets, necklaces and accessories including keychains, shoe tags, arm bands and charms. Each bears MedicAlert’s internationally recognizable logo, a design created 60 years ago. Each is inscribed with the client’s medical conditions, medications, allergies, MedicAlert member number and MedicAlert’s telephone number. All product choices share the common purpose of saving lives when clients cannot speak for themselves. “MedicAlert has led the way for 60 years in educating medical personnel, emergency medical personnel, safety personnel and also teachers to look for the medical ID bracelet or identifier and make a single phone call,” said Leslie. That phone call is made to MedicAlert’s call center which is staffed 24 hours a day, 365 days a year with trained employees who have access to each client’s self-reported health records including physician contact information. MedicAlert’s staff reports the critical health information to emergency responders who can then prop-

Something New on the Horizon

PHOTO COURTESY MEDICALERT

MedicAlert workers make the iconic bracelets on-site in Stanislaus County.

erly treat unresponsive patients. Globally, EMTs and medical responders have been making phone calls to MedicAlert for decades, according to Leslie. “We have one of the oldest, nonchanged original 800 numbers in the country,” he said. The phone call and access to medical records is what distinguishes MedicAlert from its competition. “That enables us to have a relationship with the medical community that is absolutely unique because not one of our competitors that makes what

we would call jewelry, offers an electronic health record, or offline health record or any health record. It’s just a bracelet,” Leslie said. MedicAlert has more than 10 million clients worldwide, but its sales have been hurt by the rise in jewelryonly alternatives. Such products started appearing in the mid-1990s and began accelerating with the Internet. Many of those competitors have worked hard to clone the look and feel of MedicAlert products and many patients

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10777 Trinity Parkway, Stockton 95219

Central Valley Business Journal

April 2016

Business Journal Close Up Port’s new chairman brings real estate skill CENTRAL VALLEY

By CRAIG W. ANDERSON Business Journal writer canderson@cvbizjournal.com

STOCKTON — The Port of Stockton Commission has a new chairman. R. Jay Allen, a five-year member of the commission, was unanimously elected at the beginning of March. He brings his knowledge of the port and decades of business acumen to the chairmanship, the commission said. Allen is a partner with Stone Troger-Allen InJay Allen vestment, a private real estate developer and investment company headquartered in Stockton. “Jay’s extensive knowledge of leasing commercial and industrial properties as well as lease negotiations have furthered development at the port, which has contributed to mak-

ing our facility an important part of the economic foundation of our community,” said Stockton Port Commissioner Stephen Griffen. During Allen’s time on the commission, leasing has increased and the port now boasts a warehouse occupancy rate of 97 percent, an all-time high. According to figures from the port, it now has more than $2.5 billion in private capital investment that has generated more than 2,000 new jobs for the local economy over the past five years. “The port’s future appears to be quite good with expansion and continued growth that will provide jobs,” Allen said. “We want businesses to come in and hire locals. As in real estate, it’s location, location, location. By and large location is very important and that’s the principle at the port: we have water, rail, freeways and air transportation.” Add excellent customer service and, Allen says, the formula is in place to ensure the success of any business. “The port is a two-headed animal: maritime and real estate,” he said. “In

BUSINESS JOURNAL PHOTO

The Port of Stockton is known for its maritime activity, but half its business is in real estate.

maritime, the export and import business is strong and cement’s coming back in those areas.” About half the Port of Stockton’s business is real estate. Manufacturing, energy and warehousing businesses are the port’s main tenants. After acquiring his degree from Brigham Young University and subsequent law degree from the JR Clark

School of Law, Allen practiced law in Seattle but decided he didn’t want to be a practicing attorney. He then came to Stockton to work for the men who became his business mentors. “Max and Merrill Stone, the Stone Brothers, had been in business since 1948,” said Allen. “Their real estate Please see ALLEN Page 19

Baseball season means millions for Valley cities By SIM RISSO Business Journal writer srisso@cvbizjournal.com

STOCKTON — Baseball may be America’s pastime, but it also means millions of dollars for the Central Valley’s economy. The Modesto Nuts and the Stockton Ports are part of the 10-team California League, which is classified as Class A Advanced. Both are also important parts of the fabric of their respective cities, bringing in revenue, providing jobs and offering entertainment for fans. The Nuts, who are an affiliate of the Colorado Rockies, employ about 200 people during the season. That includes a full-time front office of about 10 people. The Ports, an affiliate of the Oakland A’s, house a full-time front office of 15 and employ more than 150 people on game days. Many of them have worked for the team in past seasons. “It’s quite a big operation, a big employer in the market, said Ports President Pat Filippone. “We enjoy providing an opportunity for the local youth particularly, but also adults for second jobs as well.” In order to fill the positions on the game-day staff, each team hosts a job fair. The one for the Nuts took place over two days in March, with 300

WAYNE DENNING/CVBJ

Stockton Ports’ President Pat Filippone says about 80 workers were hired for the current season.

people turning out for the first day of interviews. They brought back 100 of those for a second day of interviews, hiring about 80 of those, with another 100 returning from last season. Games provide entertainment during the spring and summer months. Each team hosts 70 home games per season. Ticket sales have been trending upward for the Nuts in recent

years. The team has sold an average of 2,382 tickets per game last year. “Our last nine years have been the best nine years in franchise history, said Modesto Nuts Vice President Mike Gorassi. “We’re very happy with our attendance. We’ve averaged about nine sellouts a year over the last nine years, so we’re very happy with where we are. Our presales for 2016 are up

quite a bit from last year, so we’re expecting another great season.” Attendance has been strong for the Ports as well. The team had an average of 2,737 tickets sold per game last season, which was third in the California League. Since Banner Island Ballpark opened 11 years ago, the Ports have finished either second or third in average attendance each season. Filippone expects attendance to increase this year and is hoping to finish No. 2 in the league. The teams offer a variety of promotions to attract additional fans. Fireworks are a big hit for both clubs. The Ports offers them after every Saturday home game. The Nuts put on a fireworks show following every Friday and Saturday home game. Stockton started Free Shirt Friday last season, when it gave away a free T-shirt at every Friday home game. The team is bringing back the promotion again this season and has added some new ones, including Social Media Monday. The Nuts are focusing some of their promotions at children. The team will bring out the Teenage Mutant Ninja Turtles on May 27 and is hosting Princess Night on June 11. The teams also provide businesses opportunities to promote themselves Please see BASEBALL Page 28

April 2016

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Central Valley Business Journal

April 2016

FAMILY OWNED BUSINESSES

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

2 3 4 5 6

8 9

Alfred Matthews 3807 McHenry Avenue Modesto, CA 95356 DeHart Plumbing, Heating & Air, Inc. 311 Bitritto Way Modesto, CA 95356 Teresi Trucking, Inc. 900 1/2 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 3415 Brookside Road, Ste. 100 Stockton, CA 95219

Daugherty Insurance Services 10100 Trinity Parkway, Ste. 450 Stockton, CA 95219

9 240

1936

(209) 466-3691 Electrical contractor collinselectric.com

Gene Gini

5 220

1928

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

Bill & Tom Garton

4 190

1954

Beverage manufacturer and distributor: (209) 521-1777 Soft drinks, Noahâ&#x20AC;&#x2122;s California Spring Water, noahs7up.com Rockstar and Snapple

Seven Up Bottling Co/Varni Brothers 400 Hosmer Avenue Modesto, CA 95351 Collins Electrical Company, Inc. 611 W. Fremont Street Stockton, CA 95203 Garton Tractor 2924 French Camp Turnpike Road Stockton, CA 95206 Mepco Label Systems 1313 S. Stockton Street Lodi, CA 95240 Morada Produce 500 N. Jack Tone Road Stockton, CA 95215

Sciabica California Olive Oil 2150 Yosemite Boulevard Modesto, CA 95354

Anthony J. Varni

(209) 824-3600 Winery dfvwines.com

1924

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

Tuff Boy Leasing LLC 5151 Almondwood Drive Manteca, CA 95337

9 600+

Web Address

Chris Indelicato

Address

Year Est.

Local Phone

Oak Ridge Winery 6100 Victor Road (E.Hwy-12) Lodi, CA 95240

Number of Family staff Total Staff

Company Name

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 Queiroloâ&#x20AC;&#x2122;s Heating & Air Conditioning, Inc. 3934 Coronado Avenue, Ste. C Stockton, CA 95204

Specialties

(209) 946-0201 mepcolabel.com Flexographic label printing Grower/Packer/Shipper (209) 546-0426 moradaproduce.com Cherries, onions, bell peppers and walnuts For domestic and global markets 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

Top Executive

Jennifer Tracy Skip Foppiano

3 120 5 120 1600 seasonal

1912 1849

Paul Caron

6 85

1938

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

Rod DeHart

3 70

1946

(209) 368-2472 Trucking company that provides overnight teresitrucking.com flatbed truckload service and flatbed LTL service

Anthony Todd Teresi & John M. Teresi

3 65

1959

Winery: wine making, supplier of wine (209) 369-4769 domestically and internationally oakridgwinery.com Award Winning Wines Tasting room open: 10 a.m. to 5 p.m. Daily

Rudy Maggio

5 63

1934

209-239-1361 Fabrication trailers, leasing, sales and repairs Lucille Harris tuffboy.com Also owns Harris Ranch (almond farm)

8 62

1988

(209) 667-6455 Agriculture and general construction tdr-inc.com

Matt Bruno

3 60

1972

(209) 545-5495 Dairy farm and cheese production facility (800) 610-farm Registered herd of 1500 milking cows and fiscalinicheese.com craft artisan cheeses

John & Brian Fiscalini

3 37

1914

Gregory & George Dohrmann

2 20

1868

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

5 8

1954

(209) 478-1400 Commercial and personal insurance dohrins.com Olive oil production, gift packs (209) 577-5067 Tasting room open: M-F 8 a.m. to 5 p.m. sciabica.com video tour available (209) 475-4400 Commercial insurance, non-traditional risk daughertyinsuranceservices.com management Hay haulers (209) 983-8278 giglihay.com Alfalfa, oats, straw, grass 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 diamondiceinc.com and dry ice and air conditioning contractor (209) 464-9658 Heating Heating, air conditioning, ventilation and queirolos.com VRF systems

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 03/2016

April 2016

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Central Valley Business Journal

Business Journal Startup Spotlight

April 2016

CENTRAL VALLEY

Builders solve own problem using tech By NORA HESTON TARTE Business Journal writer nhestontarte@cvbizjournal.com

CERES — Francisco Gaytan and Seth Cheek’s software venture began as a way to solve a paperwork problem at the construction company where they work. CDC Residential Construction, Inc. was spending too much time processing payroll and performing other project management functions. So, Gayton and Cheek developed their own program. Now they’re trying to sell it to other construction companies. “[The need] kept snowballing,” Cheek said of the software. “So we ended up building this product for us in-house. Why couldn’t we sell it?” Gaytan and Cheek said the software gives companies the ability to pay their employees for both piecework and hourly wages. Piecework is different because it is based on amount produced as opposed to hours worked. “We couldn’t find anything that did piecework so that’s where we started at,” Cheek added. It also allowed employees to enter their own work to receive timecards in a timely fashion, Gaytan explained. As of

Francisco knows how to build code. I know how to build houses. Seth Cheek CDC Residential Construction, Inc.

mid-March, he was developing a way to collect signatures from employees electronically, as well. To do that, he created a bridge between the two payroll programs (the existing one they used and the new one Gaytan and Seth created), which he said could easily be adapted to work with other timecard software. The cloud-based software is built for both residential and commercial subcontractors. It creates employee timesheets, change orders and requests for information. It also tracks budgets and generates schedules. CDC, owned by Cheek and his father Chuck, ultimately used the software to reduce man hours spent on timecards. “I think it solves many problems. You know, before we would pretty

PHILIP JOHNSON/CVBJ

Francisco Gaytan wrote the code to help manage construction companies’ payroll.

much just do it the hard way,” said CDC’s human resources manager and safety officer Oscar Ochoa. Ochoa estimated he saves about eight hours of straight work time each week using the software. It specifically cuts

down on time he used to spend making timecards and collecting data from employees by driving to work sites and calling them on the phone. Ochoa said Please see STARTUP Page 23

April 2016

www.cvbizjournal.com

ALLEN Continued from Page 14

and business knowledge have been invaluable to my career.” Allen said his legal and real estate background helps his service on the port commission because it is a very collaborative board with a membership that functions together and understands the challenges that face the Central Valley. “If you look at California you see the coastal areas booming, driven by technology,” he said. “But the Central Valley economy is much, much different. We have to work hard to draw businesses to areas that are viewed as ‘C-type’ markets.” However, Allen believes the Central Valley is a microcosm of what California will be: ethnically diverse, eager to participate more fully in the state’s economy with a business sector that focuses on and speaks to the needs of different and diverse groups. Allen said he feels three topics present the most pressing challenges for

REYNOLDS Continued from Page 12

stated. “We were companions, partners in love and in life.” Of Don, longtime friend Claude Brown said, “His handshake was as good as gold.” Rudy Maggio partnered with the Reynolds cousins in 2002, when they purchased East Side Winery, known today as Oak Ridge Winery. Maggio remembered meeting Don in the 1960s, long before Don and Rocky became the largest wine shipper in California. “He worked hard and he played hard,” Maggio said. “He loved fishing but he really loved duck hunting. And he loved parties, especially his 80th birthday.” A video shot for that special birthday was shown during the party, filled with best wishes and remebrances from family and friends, backed by a collection of songs sung by Frank Sinatra. “I will truly miss him,” Maggio said. Among the honors accorded Don Reynolds over the years was being named to the San Joaquin County Ag Hall of Fame in 1995, Legends of California in 2003 and Cherry Man of the Year in 2014. “He exhibited the leadership and drive to grow agriculture in the county,” said the Farm Bureau’s Blodgett. “The businesses they put together were outstanding.” Don was a generous man and as Dave Fisher pointed out, “Charities in this area will all suffer because he’s no longer here.” The family has asked that donations be given to the People Assisting Lodi Shelter, the Future Farmers of America chapter at Lodi High School or the charity of one’s choice. In addition to his wife, Gina, Don Reynolds is survived by three daughters, Stephanie (Gus) Anderson, Cindy “Bucky” (Jack) Layland and Donna (Kirk) Reynolds; two granddaughters, Katie (Josh) Halecky and Callie Layland, and a grandson, Zac Reynolds.

the Central Valley business sector: jobs, income levels and education. Allen said education needs to include job training and career technical training, so the population is properly trained for jobs that exist. “It’s a synergistic circle with CTE stepping in for those students who don’t want a traditional college education but want to enter the workplace via the vocational route,” Allen said. “College isn’t necessarily for everyone but tech training for available jobs in industries looking for qualified workers would open new doors.”

Allen believes California has to remove barriers that make it difficult to maintain a powerful business climate. “We have a very regulation-based business environment in California,” Allen said. “Clearing away regulations and other hurdles would greatly improve the ability of businesses to be successful and provide more jobs for their communities.” Allen pointed to the Delta’s water hyacinth problem and said it should be handled by the state instead of leaving it to local agencies, business organizations and the port.

“The water hyacinth certainly presents a challenge to shipping because the radar on vessels in the channel can’t differentiate between the plant and solid ground,” he said of the plant’s channelclogging characteristics. “As a leading port we’re continually trying to do our part to keep opportunities for business open in the Central Valley,” Allen said. “It has many attributes including its job force, infrastructure, educational opportunities, more reasonable cost of living, climate and a host of other positives.”

Central Valley Business Journal

Port of Stockton Commodities 2014-2015 Ranked by Metric Tons for 2015

Inbound

Trading Partners Type of Cargo 2014 - 2015 Ranked By Metric Tons 2015

2014 Metric Tons

2015 Metric Tons

China

Sweet Potato Pellets, Cement, Bulk Fert, Liq Fert, Steel Products

169,758

572,320

Trinidad

Anhydrous Ammonia, Liquid Fertilizer

345,825

277,807

Malaysia

Bulk Fertilizer, Food Grade Oil

138,850

189,934

Norway

Bulk Fertilizer, Liquid Fertilizer, Bagged Fertilizer

177,510

178,207

Japan

Cement, Steel Products

Inbound

Commodities 2014 Metric Tons

2015 Metric Tons

Liquid Fertilizer

422,100

626,284

Bulk Cement/Slag

114,311

Steel Products

187,052

April 2016

144,322

173,353

Netherlands Bagged Fertilizer, Buld Fertilizer, Liquid Fertilizer, Project Cargo

67,905

170,826

373,997

Korea

Steel Products, Windmills

78,295

130,299

293,877

Mexico

Anhydrous Ammonia, Barite, Gypsum

120,905

106,408

Taiwan

Molasses, Steel Products

72,791

84,936

Australia

Bulk Sand, Molasses

211,045

81,239

Bulk Fertilizer

198,301

243,794

Molasses

280,477

219,432

Anhydrous Ammonia

145,295

140,397

Food Grade Oil

92,570

134,573

Gypsum

120,905

41,588

Argentina

Cottonseed, Bulk Soy Beans, Grain, Molasses

25,845

41,109

33,000

34,010

Chili

Bagged Fertilizer, Bulk Fertilizer

21,339

35,862

Bulk Corn

---

31,569

Hawaii

Molasses

47,100

34,277

Bulk Soy Beans

---

30,904

Thailand

Bulk Rice, Liquid Fertilizer

---

29,247

46,848

29,247

USA

Liquid Fertilizer

---

27,133

---

26,719

Germany

Bulk Rapeseed Meal, Liquid Fertilizer, Project Cargo, Steel

15,240

26,719

Guatemala

Molasses

---

11,973

Cottenseed

133,139

26,109

El Salvador

Molasses

18,650

11,190

Bulk Sand

---

26,002

Russia

Bagged Magnesium, Steel Products

---

5,367

Belgium

Bulk Fertilizer, Steel Products

578

1,785

Brazil

Windmills

---

750

Vietnam

Molasses

25,845

---

Philippines

Molasses, Food Grade Oil

13,485

---

Columbia

Molasses

13,454

---

Honduras

Molasses

12,536

---

Ecuador

Molasses

10,615

---

Peru

Steel Products

5,028

---

Italy

Project Cargo

2,660

---

1,800,541

2,335,276

Barite

Bulk Rice Bulk Rapeseed Meal

Bagged Fertilizer

23,147

18,503

Bulk Palm Meal

---

15,437

Bagged Sweet Potato Pellets

---

13,087

Windmills

---

6,511

Bagged Magnesium

---

3,011

3,396

225

1,800,541

2,335,276

Project Cargo

Total

Turkey

Bulk Corn, Bulk Soy Beans, Steel Products

---

52,262

Nicaragua

Molasses

35,373

46,756

Indonesia

Bulk Fertilizer, Bulk Palm Meal, Anhydrous Ammonia

28,587

45,517

2014 Metric Tons

2015 Metric Tons

1,742,330

1,072,820

Bulk Sulfer

200,166

205,641

Bagged Rice

70,289

162,083

Mexico

Bulk Coal, Bulk Sulfur

Bulk Beet Pellets, Beet Pellets

179,068

73,500

Japan

Tire Chips

13,436

13,004

Paddy Rice

100,259

---

2,305,548

1,527,048

3,862,324 *

Outbound Bulk Coal

Total

GRAND TOTAL

4,106,089 *

* Grand Total Does not include pipeline

Facility Statistics Port Calls

2014

2015

Vessels

230

245

Barges

Researched by Danette Conley 02/2016

Total

Project Cargo includes: Heavy equipment, wind energy components, transformers and oil refinery equipment

Type of Cargo 2014 - 2015

2014 Metric Tons

2015 Metric Tons

1,536,390

1,015,133

Bagged Rice, Bulk Beet Pulp Pellets, Tire Chips

224,269

233,587

China

Bulk Coal, Bulk Sulfur

138,980

148,075

Chili

Bulk Coal, Bulk Sulfur

32,999

53,646

Hawaii

Bulk Coal

29,577

24,994

Korea

Bagged Rice

---

15,000

New Zealand

Bulk Sulfur

---

12,418

New Calendonia

Bulk Sulfur

37,986

12,095

El Salvador

Bulk Sulfur

---

6,600

Guatemala

Bulk Sulfur

110,570

5,500

Turkey

Paddy Rice

108,760

---

Brazil

Bulk Sulfur

55,992

---

Thailand

Broken Rice

30,025

---

2,305,548

1,527,048

4,106,089 *

3,862,324 *

Outbound

Total

Grand Total

* Grand Total Does not include pipeline

April 2016

www.cvbizjournal.com

Central Valley Business Journal

April 2016

Business Journal Health Care CENTRAL VALLEY

> AWARDED

DMC gets nod for diabetes care WHAT: Doctors Medical Center of Modesto earned the The Joint Commission’s Gold Seal of Approval for Advanced Certification in Inpatient Diabetes Care. WHO: The Joint Commission is a health care quality improvement and accrediting body. DETAILS: The award covers a twoyear period and is based on the American Diabetes Association’s Clinical Practice Recommendations. Joint Commission experts evaluated DMC’s compliance with national diabetes care standards and inpatient requirements. Clinical practice guidelines and performance measures also were assessed. QUOTE: “We commend Doctors Medical Center for becoming a leader in inpatient diabetes care, potentially providing a higher standard of service for diabetic patients in its community.” — Wendi J. Roberts, Joint Commission Certification Programs executive director.

Sutter partners on surgical center MODESTO — Sutter Health and Stanislaus Surgical Hospital have finalized an agreement to form a partnership in the delivery of surgical services in Modesto. The agreement, which began April 1, will make Sutter Health the majority owner of Stanislaus Surgical. The surgical hospital, located at 1421 Oakdale Rd., will remain a separate business entity and will continue to operate in its current form. “Sutter Health has developed a strategic path forward that accounts for a changing healthcare environment and today’s value-minded consumer,” Sutter Health’s Surgery Center Division CEO Bill Davis said in a press release. “This agreement helps us move farther along that path.”

> ON THE MOVE

Sutter Health will work alongside the SSH physician ownership group to offer surgical services. “We are committed to continuing to develop our integrated delivery system so we can provide our patients with safe, quality, affordable care in the right place, at the right time,” Memorial Medical Center CEO Daryn Kumar said in a release. “Partnering with SSH adds value to our system, and complements the acute care and outpatient surgery services already available at Memorial Medical Center and the outpatient care provided by staff and physicians at Sutter Gould Medical Foundation.“ Stanislaus Surgical Hospital currently offers eight state-of-the-art surgical suites, two procedure rooms and a 23-bed inpatient unit.

BUSINESS JOURNAL PHOTO

Stanislaus Surgical Hospital on Oakdale Road has eight surgical suites.

Yao joins Health Plan of San Joaquin

WHAT: Dorcas C. Yao has joined Health Plan of San Joaquin as medical director. WHO: Yao was at the VA Health Care system in Palo Alto, and the VA National Office of Informatics and Analytics.

DETAILS: As medical director, Yao will provide medical oversight to make sure the health plan’s customers receive appropriate and cost-effective care. She also has a background in clinical informatics, which HPSJ said would help analyze patient data so

patients will be able to monitor and maintain their own health. QUOTE: “As a physician I am passionate about leading positive changes and improving health care delivery for my patients.” — Dorcas Yao

HELPING VALLEY BUSINESS GROW At Oak Oak Valley, Valley, we we take take pride pride in in helping helping our our At customers and and communities communities get get stronger. stronger. customers The most most rewarding rewarding opportunities opportunities are are often often The those which which provide provide local local businesses businesses the the ability ability those to grow grow and and help help our our communities communities thrive. thrive. to From left: Drs. Tracy Brockman, Charlie Walker, Heather Clayton-Young, P.A., From left: Drs. Tracy Brockman, Charlie Walker, Heather Clayton-Young, P.A., Nandeesh Veerappa, Jim Shiovitz, Scott Goodreau, and Sasha Bluvshteyn, Nandeesh Veerappa, Jim Shiovitz, Scott Goodreau, and Sasha Bluvshteyn, pictured with Oak Valley’s Peter Brown, Commercial Loan Officer, 209.844.7522, pictured with Oak Valley’s Peter Brown, Commercial Loan Officer, 209.844.7522, and Ron Davenport, Sales Manager, 209.343.7627 and Ron Davenport, Sales Manager, 209.343.7627

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866.844.7500 •• ovcb.com ovcb.com 866.844.7500 Oakdale • Sonora Sonora • Modesto Modesto • Turlock Turlock • Patterson Patterson Oakdale • • • • Escalon • Ripon Ripon • Stockton Stockton • Manteca Manteca • Tracy Tracy Escalon • • • •

April 2016

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Business Journal Education CENTRAL VALLEY

> PAY BOOST

Modesto teachers get pay raises WHAT: Modesto teachers will get a 6 percent raise after the school board approved the 2015-16 contract by a 4-2 vote, Feb. 29. DETAILS: Cindy Marks and Amy Neumann voted against the deal, saying there was not enough money to cover the raises over the course of the deal. They pointed out that the district will have to dip into a one-time fund to pay for on-going costs. Combined with districtwide raises the new contract will trigger, the deal will cost $41 million over the threeyear commitment. The average Modesto teacher makes $91,000 a year, with 287 receiving more than $100,000, according to Marks.

What are chances for ‘Stockton State’? By ELIZABETH STEVENS Business Journal editor

estevens@cvbizjournal.com

TURLOCK — Whether or not Stockton gets its own CSU campus will depend a lot on how committed the community is to the effort, according to CSU Chancellor Timothy White. White addressed efforts to build a new campus in Stockton during a visit to Stanislaus State in Turlock, March 22. “I think this campus has a big geographic footprint and has the Stockton Center,” White said. White pointed to CSU San Bernardino as a model for possibly turning that center into its own campus someday. CSU San Bernardino has a satellite campus about 50 miles away in Palm Desert and offers an undergraduate degree there. The ultimate goal is for the campus in Palm Desert to become its own freestanding university.

ELIZABETH STEVENS/CVBJ

CSU Chancellor Timothy White visited Stan State on March 22.

Stockton is the largest city in California without its own public university. The closest CSU schools are an hour’s drive away. Stanislaus State has the Stockton Center on Magnolia Street near Harding Way and California Street, which could grow into its own campus.

“But when you spin it off, costs go way up,” White warned. New colleges need a president, a provost, a police force, faculty, fundraisers and buildings, he said. “But if the demand is there and the need is there — and particularly if the community will is there — then the

things that normally get in the way of starting a campus — money — the community comes around and does that,” White added. A group in Stockton led by Assemblywoman Susan Eggman is lobbying for a CSU campus in a effort to improve education and worker training in the area, which is the fastest growing region in the state. The group points out that the nearest CSU campuses to Stockton are about 50 miles away, in Turlock and Sacramento. The Legislative Analyst’s Office is studying Stockton to see if there is a need for a CSU campus. White said the big piece needed for success is community and financial support. “We don’t want to start and starve,” he said. “We have experience as a system with what happens when there’s all this interest and political will to establish a campus and then the resources don’t follow.”

STARTUP Continued from Page 18

he expects to reduce his workload even more when he doesn’t have to drive to sites to collect signatures, too. “One of the best features is the capability to gather work hours from our employees from a smartphone,” Gaytan said. As of mid-March, CDC was the only company that used the software. It was funded by the Cheeks outside of the business. It is not owned by CDC. As the software guru, Gaytan is at the helm. Gaytan also does construction work for CDC. “Francisco knows how to build code. I know how to build houses,” Seth Cheek said. The realization that other companies must face similar issues led them to market it to others. “Right now we’re targeting specialty subcontractors in the construction sector,” Gaytan said. The duo (Cheek’s father is a silent partner) said they didn’t anticipate how hard marketing the software would be. As of mid-March they were researching accelerators and incubators in the Bay Area to raise more funds, Gaytan explained. Those programs also teach better marketing strategies. With additional money, they plan to hire a salesperson and expand marketing efforts. They will also further develop the product and continue troubleshooting issues as they arise. “We’re pretty focused right now on just letting people know what we can

do,” Gaytan said. To further their reach, Gaytan and Cheek have also used local media sources and are working to build a Twitter base with their handle @chesco9. “Our biggest issue is just getting out to the masses,” Seth added. Ochoa applauded Gaytan’s availability for troubleshooting. “If I have an issue, I’ll call Francisco,” he said. On average, it takes him five minutes to solve the problem. Gaytan and Cheek agreed that working as a team helps development. Gaytan works on the functionality and building code, and Cheek tells him when something isn’t user-friendly. There’s a big upside to using the software before distributing it to other companies. “We have the back-end experience and the user end experience,” Cheek said. “On the user end, I know what it should look like.” The other hurdle the new corporation faced was with the legal side of the business. “We wanted to be able to protect our idea,” Seth explained. CDC’s lawyer wasn’t a specialist in this area so they had to find another lawyer to help them. They were able to create a separate corporation and develop an arrangement to protect shareholders. “It’s not just your typical corporation. There’s data involved,” Seth said. After “lots” of paperwork and a couple of months, the process was complete.

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Central Valley Business Journal

Business Journal Cover Story

April 2016

CENTRAL VALLEY

“There is a trend toward more services

and more Internet-resistant businesses.” – Greg Davis, Excel Trust vice president

By KENT HOHLFELD Business Journal writer khohlfeld@cvbizjournal.com

TURLOCK — Shopping trends are changing and shopping centers are changing with them. The ubiquitous shopping mall, a staple of American consumerism form more than 50 years, is transforming in ways few could have imagined 30 years ago. “Nationally, there is an observable trend toward more services,” said Greg Davis, vice president of Capital Markets & Investor Relations at Excel Trust, which manages Monte Vista Crossings in Turlock and the Trinity Parkway shopping center in Stockton. Since the first enclosed, climatecontrolled shopping center opened in Edina, Minnesota in 1956, the formula for success had remained largely the same. Malls would find two or three national chains that would drive foot traffic and provide stable anchor tenants for decades to come. The rest of the shops would be filled in by local vendors or regional chains that would provide sizable, albeit less stable, income for the property owner. The malls were big, usually enclosed, suburban facilities that gave shoppers a one-stop location for a variety of retail needs. That changed with the proliferation of the Internet. No longer did shoppers need to leave their homes to satisfy their retail needs or wants. “Retailers in our center look to develop online channels,” said Davis. “People can order online and pick up at the store. Our retailers are working hard to get on all those mediums.” Monte Vista Crossings has largely followed the time-honored shopping center formula with large national chains such as Target, Dick’s Sporting Goods and Sprint serving as anchors. It also represents some of the

changes the industry has seen in the last two decades. “There is a trend toward more services and more Internet-resistant businesses,” said Davis. “There is also a move toward lifestyle centers where you are looking to get people to come in that are able to sustain high rents.” Monte Vista Crossings and Trinity Parkway shopping center in Stockton represent a move away from the enclosed malls of the past and into an era of open-air facilities. Both facilities have a large focus on eating establishments, moving away from the traditional food court model found in traditional malls. Some of the changes are driven by the fact that traditional anchor tenants, once treated as the touchstone of stable incomes for any shopping center, are no longer so stable. Trinity Parkway lost national bookseller Borders in 2011 when the company went bankrupt. The Promenade in Manteca lost Best Buy in 2012 and Lowe’s Home Improvement scrapped plans to put a facility in the shopping center. “It can take a couple of years to fill that space when a major tenant leaves,” said Davis. “We were fortunate that we were able to re-rent the place [Borders location] at a higher price.” Replacing Borders with World Market represents a shift in the kinds of stores that shopping centers now look for. Retailers focusing on items or services, such as foods or local items which can be hard to find on the Internet, are in high demand. The shift isn’t limited to a specific city or market. The Promenade in Manteca hopes to turn the former Best Buy into a gym. Century City in Modesto turned a former Gottschalks into an indoor go-kart race track. Focusing on local businesses is another strategy shopping centers use to keep spaces filled. “For a local businessperson, that

business is their livelihood,” said Patrick Dobson, leasing agent with Sims/ Grupe management which manages Lincoln Center in Stockton. “A national chain might be more willing to close a store that isn’t performing up to their expectations.” Lincoln Center has also seen the changes sweeping the industry. Many of its retailers now focus on services such as insurance, nail salons and restaurants. Dobson also said that dealing with more locally owned businesses gives centers more flexibility in rents and leases. “With the national chains, you know what you get,” he said. “Everything is dictated at a corporate level. With locally owned businesses, you can be more mobile.” More changes may be coming to the industry according to a recent study by Westfield Group. The company, which has shopping centers in Sacramento and San Francisco among others across the United States, recently conducted a study on the future of the industry. The group polled more than 13,000 consumers in the United States and the United Kingdom, and conducted in-person interviews with shoppers in stores. Retail and design experts were also interviewed. The study found that centers of the future will likely include experiences such as classes where people can learn new skills. Shoppers were also interested in being able to rent items such as clothes, electronics and home goods similar to Uber or Airbnb. Despite the changes, the industry has seen and the potential shifts coming in the future, Dobson said the fundamentals of managing a retail facility remain unchanged. “I think there will be no difference than when [the shopping mall] was started,” he said. “Give the people what the people want, and they will support it.”

New eating options opening in Valley Stockton is getting another Panera Bread restaurant. A new store will open in Weberstown Mall next fall, the mall said March 14. “The addition of Panera Bread is just another example of how Weberstown Mall is meeting consumer demand for the most sought after retail and dining options,” said Weberstown’s manager Tom Cleveland.

The new restaurant will occupy a new building in the same same spot where the old Bank of the West has been. Panera has another store on Trinity Parkway. The restaurant chain offers sandwiches, soups, salads and bakery products and is known for its healthy options. In Riverbank, the last

piece of the puzzle was about to go into place at Riverbank’s Crossroads shopping center. Five Guys Burgers and Fries was set to open during the last week of March, according to construction crews who were finishing the new restaurant. It is joining Chipotle, Dickie’s BBQ and Panda Express as new restaurant

choices in the shopping center’s addition. An AT&T store is also in the mix. Five Guys’ hours will be 11 a.m. to 10 p.m. The restaurant offers hamburgers, hot dogs and sandwiches. That makes three Five Guys restaurants in our area. The others are in Tracy on Grant Line Road and at Stonecreek Village in Stockton.

Crossroads at Riverbank is finishing its new addition. Fiv

5 retail trends to watch

April 2016

ELIZABETH STEVENS/CVBJ

ve storefronts were added, four were taken by restaurants.

l s h

RENTAL RETAIL

ENHANCED-REALITY RETAIL

CLASSROOM RETAIL

REWARDS FOR DOING, NOT JUST BUYING

Consumers wanted the so-called sharing economy to move beyond companies such as Uber and Airbnb to retail. Customers said they would like to rent clothes and household goods from their favorite stores.

www.cvbizjournal.com

be rewarded for activities such as Shoppers want to be able to use virtual recycling, eating more healthful foods, volunteering, or sharing brand reality devices — which let them see how products would look and perform in information on social media. their homes, or how clothes would look on them — before they buy. SENSORY RETAIL

Shoppers want to see stores offer classes Shoppers would like store loyalty where they can learn skills and participate programs that give rewards for more in interest groups such as book clubs. than just shopping. They would like to

Shoppers want to be able to touch, see, smell, and in the case of food item, taste the merchandise.

SOURCE: “How We Shop Now: What’s Next?” Westfield Corp.

Central Valley Business Journal

April 2016

BUSINESS PARKS

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

Warehouse, Distribution and Industrial Business Park Name Location

Prologis Inernational Park of Commerce I-205 asn I-580 Tracy

Arambel Business Park 825 Rogerâ&#x20AC;&#x2122;s Road Patterson

CenterPoint Intermodal Center Roth Road and Airport Way Manteca

Riverbank Industrial Park Claus Road Modesto

Airport Gateway Center Performance Drive Stockton

Stonebridge Industrial Park MacArthur Drive Tracy

7 8

Oates Logistics Center Sperry Road Patterson Beard Industrial District E. Yosemite Boulevard Modesto

Crossroads Commerce Center Harlan Road Lathrop

Keystone West Ridge Sperry Avenue Patterson

Rank

1 2 3

Office or Mix of Office/Industrial Business Park Name Location Port of Stockton Washington Street Stockton Pacific Business Park Louise Avenue Manteca Keystone PACIFIC Business Park Keystone Pacific Parkway Patterson

Local Contact Total Leasable Square Phone Feet Web Address

Space Available

Types of Business in Park

Number of Companies in Park

1,800 Acres

Yes

Industrial Warehouse Distribution

Joe Hollowell (209) 535-4012 joehollowell@sbcglobal.net

825 Acers

Yes

E-Commerce Warehouse Distribution

Tyson Vallenari (209) 473-7800 cbre.com/cacentralvalley

190 Acers

Yes

Warehouse Distribution

Engineering Solutions (209) 863-8352 riverbanklra.org

173 Acers

Yes

Industrial Warehouse Distrubution

Kevin Dal Porto (209) 473-7800 cbre.com

5,000,000

Yes

Industrial Warehouse Distribution

Blake Rasmussen (209) 473-7800 cbre.com

4,327,449

Yes

Industrial Warehouse Distribution

82.80 Acres

Yes

Industrial Warehouse Distribution

Blake Rasmussen (209) 473-7800 cbre.com/beardindustrialdistrict

3,800,000

Yes

Industrial Warehouse Distribution

Kevin Dal Porto (209) 473-7800 cbre.com

3,096,166

Yes

Industrial Warehouse Distribution

Blake Rasmussen (209) 473-7800 cbre.com

71 Acers

Yes

Industrial

Space Available

Types of Business in Park

Number of Companies in Park

Gregory Oâ&#x20AC;&#x2122; Leary (209) 839-0209 prologisipc.com

Blake Rasmussen (209) 473-7800 cbre.com/oateslogisticscenter

Local Contact Total Leasable Square Phone Feet Web Address Debbie Calli (209) 946-0246 portofstockton.com

2,000 Acres

Yes

Office/Industrial

125

Blake Rasmussen (209) 473-7800 cbre.com

56.88 Acres

Yes

Office/Industrial

Blake Rasmussen (209) 473-7800 cbre.com

2,307,847

Yes

Office/Industrial Warehouse Distribution

Brian Peterson (209) 473-7800 cbre.com/universitypark

971,903

Yes

Office/Education

University Park Harding Way and Grant Stockton

Main East Main Stockton

Brian Peterson (209) 473-7800 cbre.com

247,000

Yes

Office

Northgate Village Pescadero Avenue Tracy

Brian Peterson (209) 473-7800 cbre.com

161,701

Yes

Office/Retail

AG Spanos Business Park 10100 Trinity Parkway Stockton

Brian Peterson (209) 473-7800 cbre.com/ags

150,000

Yes

Office

Lathrop Business Park 17000 Harlan Road Lathrop

Brian Peterson (209) 473-7800 cbre.com

131,400

Yes

Office

Stoddard Office Plaza Stoddard Road Modesto

Brian Peterson (209) 473-7800 cbre.com/centralvalleyoffice

120,984

Yes

Office

Stockton Airport Business Center Transworld Drive Stockton

Brian Peterson (209) 473-7800 cbre.com

108,087

Yes

Office

April 2016

www.cvbizjournal.com

Ready for Occupancy June 2016 585 GARNER ROAD MODESTO, CA

PROPERTY FEATURES • Building Size: ±476,580 SF • Rail Served: (8) potential 16’ x 14’ rail doors • Clear Height: 36’ • Bay Spacing: 60’ speed bays, 50’ x 52’ bay spacing • Trailer Parking: 130 spaces (53’ trailers) with dolly pads • Skylights: 2% • Fire Protection: ESFR system • Electrical Service: 2500A 480V/277, 3 phase • Roof Insulation: R-19 • Ventilation: fixed louvers with filter adaptability; roof exhaust fans • Dock Doors: 76 with sectional lift doors • Grade Level Doors: 8 (12’x 14’) • (38) 35,000 lb air powered pit levelers • Electrical and track guards at dock doors • Interior Lighting: LED

DESIGN GROUP INC.

GB DH

9806 OldinW ery Place, Suite 1 Sacramento, Caali9fo5r8n2i7 Tel 916.854.9901 Fax 916.854.9840 P34-3448 5/18/15

• Additional Yard Available

Blake Rasmussen

DRIVE 30’

SITE PLAN

SCALE: 1” = 40’

LANDSCAPE

TRAILER PARKING

GARNER ROAD, MODESTO, CA.

300’ 300’

2- 12’ x 14’ K.O.

BEARD SPEC WAREHOUSE / DISTRIBUTION BUILDING

DEPRESSED CONC. DOCK

19 - 9’ x 10’ ACTIVE DOCK DOORS

DEPRESSED CONC. DOCK

52’ TYP.

19 - 9’ x 10’ ACTIVE DOCK DOORS

POSIBLE FUTURE SHIPPING OFFICE OR STOREFRONT

8775 FOLSOM BLVD, SUITE 201 SACRAMENTO CA. 95826 Ph 916 340 2400 Fx 916 418 2923

12’ x 14’ G.L. DOOR

50’ DRIVE

12’ x 14’ G.L. DOOR

60’ 39’

70’

19 - 9’ x 10’ ACTIVE DOCK DOORS

Vice President of Real Estate Beard Land Improvement Co. +1 209 557 2706 jnaab@beardland.com

60’ 75’

TRAILER PARKING

Jenny Naab

55’

DEPRESSED CONC. DOCK

50’ TYP.

12’ x 14’ G.L. DOOR

1,014’

19 - 9’ x 10’ ACTIVE DOCK DOORS

DEPRESSED CONC. DOCK

SLIDING GATE

12’ x 14’ G.L. DOOR

DRIVE

PARKING

LANDSCAPE

PARKING

TENANT IMPROVEMENT OFFICE

21’

GRAVEL

ELECT. ROOM

25’

TENANT IMPROVEMENT OFFICE

39’

PARKING

40’

BEARD LOGISTICS CENTER

Senior Vice President CBRE, Inc. Lic. 01010250 +1 209 476 2954 blake.rasmussen@cbre.com

www.cbre.com/beardindustrialdistrict

470’

70’

75’

63’

Central Valley Business Journal

Your business should have everything it needs.

April 2016

BASEBALL Continued from Page 14

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through partnerships. Opportunities include signage, interactive promotions or the chance to have a table on the concourse to interact with fans during a game. “Ultimately what we offer is a partner that will be very flexible to meet your objectives for your business,” said Filippone. “We have print options, radio broadcast options.” The Nuts have similar objectives and are willing to work with their business partners to find interesting ways to get their brands out there. “We like to be creative in that process and come up with something that’s going to really stick in the minds of our fans and has a real benefit to our business partners,” said Gorassi. “That’s really the most fun part of our job is working with businesses – local, regional and national – and coming up with ideas to get their brand out there in a fun and engaging way so we can turn our fans into their customers.”

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The teams also bring in revenue for their respective cities. Fans from surrounding areas come to Stockton or Modesto to see games. There are also an additional 40-50 players from each team who move to Stockton or Modesto during the season. That doesn’t include the hotel rooms used by opposing teams and the players’ families. The Stanislaus Business Alliance did an economic impact study on the Nuts in January. It estimated the team contributes $12.4 million and 257 jobs through direct or indirect employment to the local economy. While that was a study on the Nuts, it applies to more than Modesto. “It’s a good indication of not just Modesto, but all of minor league baseball,” said Gorassi. “Minor league baseball brings a ton of economic activity to cities up and down the state and across the country. Whether that’s here, Stockton, Visalia, we do have a big economic impact on our community.”

Member

ordering them believe they are protecting themselves as their physicians have instructed, according to Leslie. To counteract the confusion, MedicAlert is focusing on a return to what created its success in the first place. “That was a relationship with the medical community. It’s the medical community that tells the patient, ‘You should wear one of these bracelets,’” Leslie said. Modesto resident Carol Gainey started wearing a MedicAlert bracelet after her doctor specifically recommended it. She has worn the ID for four years and has not had a medical emergency. Still, she is thankful for the ID and the fact that her medical records are accessible if needed. “Because it is critical that anyone treating me know about the medication I take and why,” she said. “I feel so much more comfortable wearing the bracelet than I would otherwise. I’m glad my doctor told me about it.” In the last 18 months, MedicAlert has developed an aggressive program to supply the medical community with information that properly directs patients to the MedicAlert IDs. The com-

pany has experienced a turnaround and is now in a strong financial position, Leslie said. Looking toward the future, MedicAlert intends to invest in technology that will provide the medical community with mechanisms to assist them in passing MedicAlert information along to their patients. “Because as health information becomes better and better, more cloudcentric, then the ability to connect the appropriate patient to a MedicAlert goes up dramatically, and we need to take advantage of that,” Leslie said. MedicAlert has added a program working with the Alzheimer’s Association called MedicAlert Safe Return. MedicAlert offers purple IDs for patients with dementia or autism, when wandering is a concern. “Because public safety people are trained to look for that bracelet and make the call, then we provide the information for that person to be returned safely,” said Leslie. Actress Julianne Moore wore such a MedicAlert ID during her portrayal as a woman with Alzheimer’s in the film “Still Alice.”

April 2016

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Central Valley Business Journal

April 2016

STAFFING AGENCIES

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

Selina Paniagua (209) 474-9881 2003 cornerstone-staffing.com

Balance Staffing 2750 Cherryland Avenue Stockton, CA 95215 4260 Sisk Road, Ste. C Modesto, CA 95356

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

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

Jennifer Wallace (209) 478-8500 premierstaffing 1977 stockton.com

Miceli-Watters, Staffing Partners, LLC 1316 Coffee Road, Ste. D-11 Modesto, CA 95355 Adecco Office & Industrial 1036 W. Robinhood Drive Ste. 108 Stockton, CA 95207

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

12 13 14

Manpower 903 W Center Street, Ste.3 Manteca, CA 95337 Labor Max Staffing 400 E. Kettleman Lane, Ste. 9 Lodi, CA PrideStaff 3421 Brookside Road Ste. B Stockton, CA 95219 Express Employment Professionals 1151 W. Robinhood Drive Ste. A-1 Stockton, CA 95207 Volt Services Group 3558 Deer Park Drive, Ste. 2 Stockton, CA 95219 Labor Ready Southwest Inc 2000 Standiford Avenue Modesto, CA 95350 The Hire Source 1803 W. March Lane, Ste. A Stockton, CA 95207 Valley Temp Services 1150 W. Robinhood Drive Ste. 11-A Stockton, CA 95207 Availability Professional Staffing 2813 Coffee Road, Bldg A Modesto, CA 95355

Titan Workforce 578 Commerce Court Manteca, CA 95336

IHELP, Inc. PO Box 549 Manteca, CA 95336

Robert Half 10100 Trinity Parkway Ste. 330 Stockton, CA 95219

Spherion Staffing 4623 Quail Lakes Drive, Ste. A Stockton, CA 95207

Delilah Perez (209) 957-7167 1984 adeccousa.com Amanda Ferris (209) 239-0367 1948 us.manpower.com Rebecca Moreira (209) 369-8080 2002 labormax.net Janelle Mercado (209) 477-6446 1987 pridestaff.com Kevin Barth (209) 956-5668 1983 expresspros.com Nora Oâ&#x20AC;&#x2122;Reilly (209) 952-5627 1950 volt.com Robert Judd (209) 522-3330 1989 laborready.com Barney Kramer (209) 474-7591 2002 thehiresource.net Betty Thomas (209) 473-7601 1987 valleytemps.net Lynda Stammer, Chris Peterson (209) 527-7878 1966 aps-hr.com David Romura (209) 824-8500 2008 titanworkforce.com Mary Louise Applebaum (209) 825-5995 1995 IHELPInc.net Destinee Hough (209) 513-9883 1948 rhi.com Jason Beltz (209) 465-1500 1948 spherion.com

2500 11 1575 25 800 12 550 5 425+ 5 400 7 300 3 200 6 200 5 150 5 110 4 100 7 100 5 80-100+ 9 50 2 50-100 11 12

20 55

50 50

yes

Medical and sick pay x

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

Trucking

Health Care

Construction

Medical, dental, vision, and 401k

Medical, dental, vision, holiday, and vacation pay

Government

Management

Education

Agriculture

Medical, dental, vision, Aflac, travel, bonuses, vacation and holiday

50 50

40 60

38 25

50 30

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

25 25

Medical, dental and vision

70 30

Health and sick pay

60 25

Medical, dental, vision, holiday pay and 401k

30 60

Medical, dental, vision, life and 401k

50 40

75 25

35 50

Comprehensive medical benefit package

None

Health insurance

Medical, vision and holiday

10 60

Medical

90 10

Medical

50 50

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

WND

Medical and 401K

NA 4

Medical, dental, vision, Aflac x vacation and holiday

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

Sales & Mktg.

Industrial

Devon Chaves-Dean (209) 204-8640 modesto@deanstaff.com

Lt. Industrial

Dean Staff 1608 Sunrise Avenue, Ste. D Modesto, CA 95350

2500

50 30

Offered

Workforce Benefits

Accounting

Types of Workforce

Temporary Administrative

Devon Chaves-Dean (209) 576-7455 2001 qpauthority.com 1957 staffingnetwork.com

Quality Placement Authority And Staffing Network, LLC 1608 Sunrise Avenue, Ste. D Modesto, CA 95350

Other

Web Address

Executive Search

Temporary Staff

Consulting/ Contract

Full-time

Year Est. Employees

Temp to Hire

Address

Local Phone

% of Current Workforce

Temporary

Company Name Rank

Number of

Top Local Executive

WND

50 45

x x

April 2016

www.cvbizjournal.com

Central Valley Business Journal

April 2016

Business Journal Jobs and Economy CENTRAL VALLEY

> ON THE RISE

Demand drives gas prices up Nationally, gas prices in March broke the $2 mark for the first time this year. The national average price of gas hit $2.04 per gallon March 28. That price was still 39 cents less than a year ago. Most California drivers never even saw prices dip below $2. The state continued to have the highest priced gas in the country at $2.78 per gallon. Modesto drivers continue to get the best deal, but not by much. Modesto drivers paid an average of $2.56 per gallon by the end of March, one penny less that the $2.57 drivers in the Stockton-Lodi area paid. Merced still had the highest average prices at $2.65. Prices in California have been driven higher by low inventories. ExxonMobil’s refinery in Torrance continues to suffer mechanical issues and other refineries are making the switch to summer blend gasoline.

Minimum wage battle shifts with new offer SACRAMENTO — In an effort to avoid a ballot initiative fight, Gov. Jerry Brown and labor organizations have hammered out their own minimum wage proposal. The proposal, which still has to be approved by the state Legislature, would raise the minimum wage to $15 per hour by 2022. Employers with fewer than 25 workers would have until 2023 to comply. California’s minimum wage would be the highest in country. The proposed measure would boost the minimum rate from $10 to $10.50 by Jan.

1, 2017 and include 50-cent increases each year through 2023. The wage would be indexed to inflation after that. Such a wage increase could impact the Central Valley heavily, according to the University of the Pacific Center for Business & Policy Research. In Merced County, 60 percent of workers would be affected. In San Joaquin, 52 percent and in Stanislaus County, 50 percent. In higher-wage areas like the Bay Area, the increase would only impact about 25 to 30 percent of jobs.

BUSINESS JOURNAL PHOTO

Industries most likely to be impacted include agriculture, restaurants and retail. Utilities, information and finance would be the least affected. While the goal was to avoid a

bruising ballot battle, the proposal’s fate in the legislature is far from certain. It will face heavy opposition from business interests and some state officials aren’t sold on the idea.

Jobless numbers stay steady in Valley

> ON THE MOVE SACRAMENTO — The unemployment rate for February remained relatively stable across the Central Valley. San Joaquin County came in at 8.8 percent, down 0.1 percent from January while Stanislaus County’s rate was unchanged at 9.4 percent.

Merced County continued to suffer from the highest rate in the area at 12.6 percent, down 0.1 percent from January. The biggest drivers of employment gains in San Joaquin and Stanislaus counties were trade, transportation and utilities, as well as

leisure and hospitality. The two categories added 1,600 jobs to San Joaquin County. Trade, transportation and utilities added 1,400 jobs in Stanislaus County. Leisure and hospitality added 1,600 jobs to the county. Manufacturing made the big-

gest contribution in Merced, adding 1,300 jobs to the county. About 300 farm-related jobs were eliminated in San Joaquin and 400 more were lost in Stanislaus County. Merced County bucked that trend, adding 100 farm jobs to its economy.

I NSTI TUTE FOR FAMILY BUSINESS

How to Prevent Embezzlement and Fraud in Your Family Business “I treated them like one of the family. I can’t believe they stole from us.” This phrase is said often as family businesses are becoming victims of embezzlement and fraud. In most cases the families never recover the money and in some circumstances are forced to liquidate the business. Join the next Institute for Family Business program when Stephen Taylor of the San Joaquin DA’s office and Jim Collins an accounting expert share ways to protect your business.

The Institute for Family Business would like to invite family business owners to join us for our next program.

May 5, 2016 7:30 AM Continental Breakfast 8:00 - 10:30 AM Program

Reserve your space today! 209.946.2956 ifb@pacific.edu Pacific.edu/IFB

A Special Thanks to our Partners

RICHARD R. PAULSEN INSURANCE SERVICES • MOSS ADAMS LLP • EVOLVE PARTNERSHIP NEUMILLER & BEARDSLEE • CENTRAL VALLEY COMMUNITY BANK

April 2016

www.cvbizjournal.com

F&M Bank marks 100 years to be more difficult to crack. F&M Bank financed the first paved street in Lodi, School Street, which ran in front of the bank’s first building. The bank also sold war bonds during World War I and withstood the Great Depression with record profits. The Lodi area saw almost no foreclosures, according to Steinwert. “It was conservative principles and knowing your customer,” he said, pointing out that being small and local allows a community bank to work with its customers when they run into trouble. The bank didn’t expand until 1948, when it opened a branch in Galt. Another in Linden followed in 1950, and two more in Modesto and Sacramento opened in 1955. Today, F&M Bank has 24 branches, including several in the East Bay area, where it has plans for further expansion. F&M Bank has also been consistent in terms of leadership. Its first chairman was Chris Albright. The next was E.J. Mettler, who was elected chairman and president in 1938. The bank didn’t have a new leader until

By ELIZABETH STEVENS Business Journal editor estevens@cvbizjournal.com

LODI — In many ways, the story of Farmers & Merchants Bank is the story of Lodi. Twenty farmers and businessmen got together 100 years ago this spring to raise money to open Lodi’s own community bank. The goals were that it would always be locally owned and operated so that its shares would be owned by a broad base of the community; that it would invest in the community to create jobs; and that security would always be a priority. Bank President and CEO Kent Steinwert says there’s a reason those community-based principles have lasted 100 years. “When you have ownership, you have a piece of that success,” he said. The bank opened in August 1916 and soon had $8,000 in deposits. Most of the cash the bank kept back then was in gold and silver coin. Customers with valuables could buy a strong box to keep in the bank’s round vault, a design the bank favored because it was believed

1973, and then it was Metter’s son, Ole, who was chairman and president until 1997, when Steinwert joined the bank. The bank has grown into the largest community bank in San Joaquin and Stanislaus counties with $2.6 billion in assets. For the past 81 years, it has paid its shareholders dividends, and for the past 50 of those years those dividends have increased. The bank is one of only 17 publicly traded companies to be dubbed a “Dividend King.” Like in Lodi, the bank has financed projects that have left lasting impressions in their communities: Stockton’s downtown movie theater complex , its transportation center, University of the Pacific’s baseball stadium, and much of the city’s low and mediumincome housing projects. The bank also prides itself on its non-profit involvement as well. Steinwert said that since 2010, the bank has given $22 million to 250 nonprofits and funded $72 million in community development loans. Employees have also donated 10,000 volunteer hours. Now the bank has 350 employees, many of whom were hired

PHOTO COURTESY FARMERS & MERCHANTS BANK

Kent Steinwert has been F&M Bank’s president and CEO since 1997.

from the University of the Pacific or Stanislaus State University and then trained in-house. The average tenure for an F&M

Bank employee is 12 years. “We want people to spend their careers here if they can,” Steinwert said.

BiLL crawford AAI; LUTCF, AFIS PRESIDENT

Full Line Insurance Agency • Auto • Home

• Life • Health

• Commercial • Annuities

Lodi | 310 South Crescent, Ste. A (209) 365-9600

• Farm & Ranch • Long Term Care

Tracy | 1550 Tracy Blvd. (209) 835-5253

CA Lic# 0E22532

Serving San Joaquin County’s Insurance Needs For Over 40 Years!

Central Valley Business Journal

April 2016

GREEN COMPANIES

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

Company Name Address

Top Local Executive

Total

Phone Number of

Services and Products

Headquarters Year Est. Locally

Web Address

Employees

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

Electric vehicles

Stephen J. Jones (209) 837-4423 covantaholdings.com

Solid waste transformation and electricity sales

Mike Hodgson (209) 473-5000 consol.ws

Energy consulting, building audits, energy and green program management

Stockton 1983

Heath Hildebrand (209) 320-3731 dteenergy.com

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

Detroit, MI 2013

Jeff, Keith and Alexis 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

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

Ethanol fuel for transportation. Feed for dairy and feedlots

Paul Owens (209) 463-7600 trivalleyrecyclinginc.com

Electronic waste collections and pickup

Stockton 2007

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

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

Covanta Energy 4040 Fink Road Crows Landing, CA 95313

ConSol 5757 Pacific Avenue, Ste. 220 Stockton, CA 95207

DTE Stockton LLC 2526 W. Washington Street Stockton, CA 95203

Modesto Junk Company 1425 Ninth Street Modesto, CA 95353

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

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

Onsite Electronics Recycling 2331 Teepee Drive Stockton, CA 95205

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, 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 expansion, recycling consulting with hospitals and agricultural companies

Salida 1996

Clean Planet, Inc. 250 Port Road Ste. 23 Stockton, CA 95203

E. J. Rogers (209) 472-7422 californiamaterials.com

Construction, demo, yard waste, concrete and road construction recycling. Formally Recology Stockton

Stockton 2015

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

Jim Newell (209) 402-8420 jnmetals.com

Scrap metal recycler, bin service 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

Michael Swearingen (209) 235-0601 commuteconnection.com

Regional rideshare agency

Stockton 1985

Hydrogen Technologies, Inc. 217 W. Fyffe Avenue, Ste. 107 Stockton, CA 95203

Ed Stockton, CEO, President (209) 986-9346 hydrogentechnologiesinc.com

Energy storage systems Hydrogen steam boiler Endorsement letter from SJVUPACD

Modesto 2006

Stockton 2009

Morristown, NJ 1989

Sacramento 2005

April 2016

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Fantastic Family Fun

Live Entertainment

Asparagus Eating Competition

Superhero 5K Run

Asparagus Recipe Contest Chef Demonstration Stage

Craft Beer & Wine

More Asparagus Dishes Carnival Games & Rides

FREE Kids Zone with Games & Crafts

Craft Fair & Vendors Open All 3 Days 10am-8pm

Discount tickets available at Save Mart Supermarkets & S-Mart Foods

San Joaquin County Fairgrounds ~ 1658 S. Airport Way, Stockton, CA 95206

Central Valley Business Journal

April 2016

Want to be successful? Do these three things One of my favorite questions to ask successful leaders, especially the ones that seem really happy with their lives, is what factors do they attribute to their success? After years of asking this question and reading the responses from business, political and social leaders, several key traits keep coming up. Even as I looked at my own successes and failures over the years, I realized I could attribute a Peter Johnson lot of my own suc- Pacific - Eberhardt cesses (and failSchool of Business ures for not doing these) to three common traits. Of course, these are not the only keys to being successful in life but they are three of the most important ones. If you want to be successful in life and business you need to set goals, continuously learn and help others be successful. So much has been written on the value of goal setting, and yet I continue to work with individuals and organizations that are like a rudderless

boat in the ocean – moving not in any particular direction and with no apparent destination. Then they wonder why their business isn’t growing, why their lives aren’t better, or why they aren’t in better shape. Goal setting forces us to prioritize, create a plan, monitor our success and make adjustments as needed. It also allows us to analyze what is working and what is not. To be successful you have to write down those Specific, Measureable, Attainable, Relevant, Timely, Big, Hairy, and Audacious Goals. Students graduating this year can expect to have more than six careers and work for more than 12 different companies. Add to that the increasing rate of change and the availability of information to you and your competitors, and it’s no wonder that successful people understand the value of continuously learning. The cost of learning in time and money has never been lower. Want to learn how to build a deck, give a performance review or do a tracheotomy? You can learn in minutes on YouTube at no cost, although I might suggest a little more training before you perform the tracheotomy. Through technology, you can access resources to build skills in any

area you desire. Successful people understand the advantage they get from setting up Google alerts, joining LinkedIn groups, searching YouTube and taking courses online from Lynda. com. By updating your skills you are better able to solve current and future problems. At the end of the day, isn’t success about solving problems? Zig Ziglar, the great motivational speaker and salesman, often told audiences around the world, “You can have everything in life you want, if you will just help enough other people get what they want.” Have you ever had someone go out of their way to help you be successful? Maybe it was someone farther along in their career who acted as a mentor or someone who connected you to a new customer. I’m not talking about a quid pro quo relationship but rather someone who genuinely wanted to help you succeed. Often it is small actions that lead to big dividends. Of course this means that we need to take an interest in people other than ourselves. We need to ask questions and understand where others want to go in life, not just what’s currently slowing them down. Once we know their end game, we can provide opportunities to grow by making introductions to the right people and passing

along resources that will enable them to learn and grow. Another reason to continually learn is that we can pass valuable information to others. Get everything you want out of life by making three simple changes: write down and implement those SMART BHAGS, continuously update your problem solving abilities, and help others reach their goals. Not only will you achieve unfathomable success, but you will find the ride much more enjoyable and fulfilling. – Peter Johnson is the Director of the Westgate Center for Leadership Development and the Institute for Family Business in the Eberhardt School of Business at the University of the Pacific. He welcomes your feedback at peterjohnson@pacific.edu.

Help! We’ve got a negative Yelp! At least you know. What if people are posting negative online reviews about your business and you don’t even know it? Not good, right? Here is help for a negative Yelp online review. Yelp is a free review site that lets consumers rate businesses on a fivestar scale. Other review sites that encourage customer feedback and ratings include Google Places, Yahoo! Local Listings and Facebook Business. Have you recently looked at the feedback that your customers are giving you? Are they mostly positive (four or more stars) or are there a lot of negative reviews? Do you even know if your business information — address, phone number, services provided, etc. — is current? Google maps recently showed the local outlet of a major chain sporting goods store as being “out of business.” That was a big surprise for the store manager! Customer opinions are formed and choices are made even before they step foot into your store or call your business. Potential new customers listen to what your past customers are saying. And so should you. Some may say, “Yelp? What’s that? I didn’t sign up for any Internet gim-

micks. Leave me out of this.” Too late! Yelp, Google and the rest already have your company’s public information posted. So those reviewing opportunities are live and available right now. The important question is, have you “claimed” your business? Type in Yelp and your business name, city and state. Then click the “claim this busiJohn Parker ness” button in Professional the lower right Development margin. Adventures “Unclaimed” means you have no control over the information about your business and no ability to respond to comments. Here is a comment on unclaimed doctor’s office: “Ridiculous!!! My mom had spine surgery ten days ago and they are making her and other patients wait almost an hour. What could the doctor be doing?” The physician and staff probably don’t know

about these negative review have been posted for all to see. Claiming your site is free and lets you update photos, contact information and other information to make your site more appealing and accurate. This also allows you to respond to reviews. Claiming is not a cure all, though. You have to maintain it. A classy local clothing store that had been claimed on Yelp was neglected. Several negative reviews were posted for all to see with no responses from the owner or staff. Happily, my local auto repair shop claimed its site and has almost all five star reviews. In fact, most of the area’s auto repair shops were claimed and had active review sites. Denial and neglect are dangerous so take charge of your business review site: • Claim it. Hop in, take the wheel, and get engaged! • Update regularly, with accurate information and attractive photos. • Review it regularly, even daily, to catch all comments. • Respond promptly to both positive and negative reviews. Responding to negative reviews is challenging. Here are some tips: • Treat negative reviews as you would with a live customer — promptly, calmly and kindly. • Reframe negatives reviews as opportunities for customer engagement. • Remind satisfied customers to post

a review of your business. Positive reviews can eventually move a negative review further down and off the front page. • Don’t sue. One business owner took a bad review all the way to his state’s supreme court and lost. • Ask Yelp (or other review sites) for help, but recognize that they usually leave negative reviews alone. If you want the review site to delete a negative review then you will have to prove the review is blatantly inaccurate. Know that a less than perfect site may seem more authentic and real. • Learn how to use private and public responses. Private messages (Yelp has a button for that) are best with negative reviews. Public responses need to be kind, simple and humble. When a potential customer sees a thoughtful response to a negative review they tend to sympathize with you rather than the disgruntled customer. • Don’t fake personas or reviews. Have real people give real reviews. • Don’t attack or escalate. Wait to get calm, then respond. Now that you have help for negative Yelp reviews, consider taking this to the next level by taking a proactive approach to gaining positive reviews. Who will give you a positive review today? It’s OK to ask them! – John Parker is the founder of Professional Development Adventures and an instructor for the UC Davis Center for Human Services. You can reach him at coachingparker@comcast.net.

Clear Vision

Before you are a leader, success is all about growing yourself.When you become a leader, success is all about growing others. Jack Welch, former CEO and Chairman of the Board of GE

Watch what your customers say about you online

At Your Service

DO YOU HAVE GOOD NEWS TO SHARE? The Central Valley Business Journal wants to help spread positive news about your business, throughout the community. Email press releases about openings, new hires and other news to: editor@cvbizjournal.com.

April 2016

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Consider this when changing your phone system The phone system is often the last thing to be replaced in any business. Through the recession I watched companies let phone systems that were 15 years old limp along, just praying they would turn back on if they were ever shut off. If you’re at a point this year where you are ready to change to a new phone system, here are a few things I’ve learned throughout the years about upgrades.

Tech Top 5

and failures that were lurking. Start to dream a little about what you would want. Do you want a redundant system? How about HD quality voice? Do you want everyone to have a direct phone number internally? What software internally would you want to have integrate with your new system? What about setting up remote sites and/or remote individual users? Answering these types of questions before you start looking at products

is important. If you know what you want up front, you will avoid wasting time sitting through demos of products that aren’t a fit (and you’ll save time for vendors as well). Additional costs can bite you With any large jump from old technology to new, you can expect some upgrading cost, but there are some hidden costs that can hurt you going forward. A few that I see consistently in-

A BETTER WAY TO TAKE CARE OF BUSINESS

David

Review your Darmstandler contracts CEO of Before you Datapath start looking at new options, find out what you’re on the hook for in regards to contracts. Review your phone provider and find out what you currently have, whether it’s POTS lines, a PRI or even SIP (and, yes, the acronyms are endless in this industry). Even if you had these lines installed years ago, they can include an “evergreen” in the contract that will automatically renew their services unless you cancel them within a certain timeframe. In addition, gather information on your current maintenance contract with your phone vendor (if you have one) and understand what you’re getting. These don’t often automatically renew, but it’s good to at least have a good understanding of how to get out of your maintenance contract when you need to. Understand what you have now It’s important before you start evaluating new products to know what you currently have. Count up how many handsets (phones) you currently have, what kind of cabling those phones are using, make note of any wireless phones, and take into account remote users. All of these types of questions will give you a good idea of what to expect in additional expenses on a new system. For instance, if all of your phones are ancient, they are probably running on CAT3 which means you will need new cabling if you want to install a modern system (which requires CAT5 or better). Is your current system redundant if a part fails? What happens if you lose power or your phone provider goes down? Where do the calls go when your system or your provider are down? Planning After you understand what you currently have, you’ve already started the planning process. In asking questions about your current system you’ve probably identified potential holes

Get employees walking for a healthier business Employees who exercise for at least 30 minutes a day, three times a week are up to 27 percent less likely to miss work.* A workplace walking program is a great, low-cost way to get your employees moving — and we can help. Visit us online to download our no-cost walking toolkit, a step-by-step guide to building and managing your program.

Choose better. Choose Kaiser Permanente. * Merrill et al., JOEM, January 2013.

kp.org/workforcehealth

volve failing to take into account the need to upgrade your network infrastructure in preparation for a new system. Often it becomes an afterthought to include the need for new switches (particularly POE switches) to handle the new system, and new cabling to connect the phones throughout your facility. Another thing to look for is how Please see TECH TOP 5 Page 46

Central Valley Business Journal

April 2016

PROPERTY MANAGEMENT FIRMS

Retail

Residential

Multi-Family

Top Local Executive

Industrial

Web Address

Office

Rank Address

Owner/Developer

Company Name

Phone

Number of Local Staff and Offices

Fee-Based Management

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

10%

90%

1991

100%

1995

99%

1969

19.5%

43.3%

38.2%

1974

75%

10%

1947

23%

50%

27%

1948

30%

40%

20%

2009

56%

40%

1991

50%

1987

Number of Properties Managed

(209) 955-0535 garibaldico.com Matt Errecart

138 1

(209) 333-3400 rpmcompany.net Donnie Garibaldi

45 9

Interstate Reality Management 2020 W. Kettleman Lane Lodi, 95242

(209) 334-6565 themichealsorg.com Kimberlee Schreiber

40 1

Colliers International 3439 Brookside Road, Ste. 108 Stockton, 95219

(209) 475-5100 colliers.com Michael Goldstein

37 4

164

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

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

25 2

369

(209) 549-4960 cranbrookgroup.com Jim Devenport

24 3

The Garibaldi Company 3525 W. Benjamin Holt Drive Stockton, 95219

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

NAI Benchmark 1012 11th Street, 4th, floor Modesto, 95354 2920 Pacific Avenue Stockton, 95204

Commercial

Residential

Year Est. Locally

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

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

(209) 473-6201 grupe.com Kevin Huber

21 2

Property Management Experts 200 W. Harding Way Stockton, 95204

(209) 465-5000 pmerents.com Karen Carlson

20 3

1,100

80%

20%

1978

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

(209) 956-9024 metzgermanagment.com Michael Guindon

17 1

158

54%

44%

1975

Real Property Management 601 14th Street Modesto, 95354

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

12 3

1000

99%

1980s

Cort Companies 343 East Main Street 10th FL. Stockton, 95202

(209) 235-5222 cortco.com Daniel Cort

11 1

100%

1979

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

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

10 4

25%

30%

20%

2004

Codwell Banker V.C.P. 1486 W. 11th Street Tracy, 95376

(209) 835-4545 gotracy.com David Ormonde

10 1

250

92%

1981

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

(209) 951-1888 americancb.com Chuck Lantznester

4 1

40%

25%

35%

1981

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

(209) 478-4283 heritagepropertymanage.net Debbie Hamer

3 1

600

70%

30%

1992

Huston Assoc. Real Estate Inc. 3138 Pacific Avenue Stockton 95204

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

2 1

130

85%

15%

1963

Romero Management Services Inc. PO Box 7959 Stockton, 95267

(209) 951-5090 romeromgmtservices.com Robert Romero

2 1

40%

18%

1986

April 2016

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Central Valley Business Journal

April 2016

Wealthier taxpayers more at risk for audit The one weapon of intimidation the IRS holds over the U.S. population is the threat of an income tax audit. The vast majority of Americans will never be audited. However, for taxpayers with higher incomes, the chances of an audit is greatly increased. The IRS runs many audit programs that target Jason Harrel various indusCalone & Harrel tries and types of Law Group taxpayers. The main factor that determines whether an income tax return is audited is based upon an IRS metric known as the Discrimination Function or DIF score. Each tax return is given a DIF score through a confidential algorithm. Generally, returns with questionable income and expense amounts will receive a higher DIF score. The higher the DIF score, the higher the chance of audit. Every year the IRS publishes the audit statistics for the prior tax year. The

2015 statistics report shows there were more than 150 million personal and business tax returns filed last year. The vast majority of these returns are personal income tax returns with income under $200,000. The audit rate of those returns is less than 1 percent. The IRS has found that auditing higher income tax returns provides more bang for the buck. For tax returns that show more than $200,000, but less than $1 million, the audit rate goes up to 2.61 percent. That equates to roughly one out of every 38 tax returns. For taxpayers that show over $1 million of income, the audit rate jumps to around one in 10 returns. Higher audit rates are bad news for wealthier taxpayers because the amount of additional tax generated after the audit can be huge. That is because those higher income tax returns generally have multiple sources of income and large businesses as well as rental expense deductions. All those elements are ripe for audit. Most audits boil down to the investigation of questionable deductions, proof of those deductions, unreported income and personal expenses claimed as business deductions. Also, a taxpayer can expect the IRS to apply interest and a 20 percent penalty on any addi-

tional tax generated from the audit. When the IRS initiates an audit, it is usually focused on one tax year. Unfortunately, the IRS often opens up other years during the course of the audit. This means the audit could generate three or more years worth of additional tax. The result could be a tax bill in the hundreds of thousands of dollars. Income tax returns are not the only ones subject to audit. The IRS frequently audits estate tax returns, business and employment tax returns. Audits of the latter can have devastating results if a business treats its workers as independent contractors when they are really employees. The IRS makes the business pick up the tab for all the tax and wage withholdings that were not paid. Audits might sound scary, but there is hope. First, make sure you have a good tax return preparer whom you can trust to give you solid tax advice. This will likely prevent an audit in the first place. Avoid preparers who say they can get you a good deal on your return. Only the IRS will get a good deal if that return is audited. Second, if you plan to take a risky position on a return, think about getting a legal opinion first. If the position taken is not accepted by the IRS on audit, a

legal opinion will generally save you from the 20 percent or more tax penalty the IRS would otherwise assess because you have reasonable cause for relying on the advice of a tax professional. Lastly, if you are audited, make sure you have professional help. A tax professional can act like a firewall between you and the IRS. In addition to the IRS, taxpayers must also worry about the California Franchise Tax Board. The FTB does conduct its own audits but generally relies upon the results of an IRS audit. Once the IRS assesses additional tax after audit, it will share that information with the FTB which will then assess additional state income tax. If you are currently going through an audit, we recommend you speak with a tax professional or tax attorney. Proper representation can limit the amount of tax you will owe. Taxpayers who fight the results of an audit in the IRS Appeals Division or Tax Court usually can settle with the IRS for a lower amount than originally assessed. – Jason W. Harrel is a Partner at Calone & Harrel Law Group, LLP. He is a certified specialist in taxation. Mr. Harrel may be reached at jwh@caloneandharrel.com.

Central Valley employers frequently ask: am I legally required to have a formal policy prohibiting discrimination and harassment? Until recently, the answer has always been “no.” California employers have long been required to take reasonable steps to prevent and promptly correct discriminatory and harassing conduct in the workplace. They also have been required to provide employees with a brochure on the topic (California Department of Fair Employment and Housing, DFEH-185). However, employers were not required to actually adopt and implement a formal written policy. That changed April 1 when a new state regulation took effect. This article will provide an overview of the new legal obligations, but as always, it does not substitute for the advice of legal counsel. The new California regulations (Cal. Code Regs., tit. 2, § 11023) impose several new new and detailed requirements. Those regulations require employers to develop and distribute anti-discrimination and harassment policies to employees in English as well as in any additional languages that are spoken by at least 10 percent of the workforce. The regulations also impose requirements for conducting discrimination and harassment investigations. The regulations require employers to implement anti-discrimination and harassment policies that: • Are in writing.

• List the categories of individuals protected by the California Fair Employment and Housing Act. • Make clear that the Fair Employment and Housing Act prohibits coworkers, third parties, supervisors and managers from engaging in discriminatory, harassing or retaliatory conduct. • Provide a complaint process to ensure complaints are kept confidential Bruce Sarchet (to the extent Attorney possible); reLittler Mendelson sponded to in a Law Firm timely manner; investigated by qualified personnel in a timely and impartial manner; and documented and tracked. The complaint process also must provide for appropriate remedial actions, resolution of complaints, and timely closure of investigations. • Establish a complaint mechanism, such as a complaint hotline or access to an ombudsperson, that does not require an employee to complain directly to an immediate supervisor. • Instruct supervisors to report any complaints of misconduct to a designated company representative so the company can try to resolve the claim

internally. • Clarify that allegations of misconduct will be addressed through a fair, timely, and thorough investigation. • State that confidentiality will be kept by the employer to the extent possible. • Indicate that if misconduct is found during the investigation, appropriate remedial measures shall be taken. • Make clear that the company will not retaliate against employees for lodging a complaint or participating in an investigation. In addition, the regulations require employers to disseminate their antidiscrimination and harassment policies. To this end, employers can do one of the following: • Provide a copy of the policies to all employees either in hard copy or by email with an acknowledgment form for employees to sign. • Post the policies on a company intranet site and use a tracking system to ensure all employees read and acknowledge receipt of the policies. • Discuss the policies upon hire or during new-hire orientation sessions. Finally, the regulations require employers whose workforce includes 10 percent or more non-native Englishspeaking employees to issue the antidiscrimination and harassment policies in each such language. California employers must ensure they have written policies that comply with the new regulations. In particular, employers should:

• Review and update their anti-discrimination and harassment policies before April 1. • Distribute their anti-discrimination and harassment policies via one or more of the approved methods (in addition to Form DFEH-185). • Ensure proper complaint and investigation procedures are in place. • Train human resources personnel on how to address all inquiries and potential complaints related to implementation of these new policies and procedures. It is important to note that the new regulations do not alter existing law, which provides there is no stand-alone, private cause of action under Government Code section 12940(k) for failure to prevent harassment and discrimination unless a private claimant is able to prove actual discrimination, harassment, or retaliation. Nevertheless, the DFEH may elect to pursue non-monetary preventative remedies for violations of these regulations regardless of whether the Department prevails on an underlying claim of discrimination, harassment, or retaliation. Any failure to comply with these regulations likely will become a contested issue in any discrimination or harassment lawsuit in California. – Bruce Sarchet is an attorney with the firm of Littler Mendelson and represents employers in labor and employment law matters. You can contact him at bsarchet@littler.com.

Taxing Matters

Why you need an anti-discrimination policy

Human Element

April 2016

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Six smart ways to identify market segments Market segmentation is something that anyone with a business is likely to have heard about. It is a necessary tool when youâ&#x20AC;&#x2122;re trying to accurately target a market for sales. Whether you are selling a product or a service, segmentation works the same. However, understanding the best way to go about segmenting the greater market is not always intuitive. The good news is that decades of insight by marketers Dan Natividad provide a basic Partner framework for Port City Marketing splitting people into discrete groups. Here are the top six most widely used paradigms:

Brand Building

Demographic Demographic is often the most obvious way to segment a market. It includes features associated with ethnicity, religion, language, age, gender and a virtually endless list of cultural features. We caution clients who wish to market to specific demographics to have sensitivity and complete understanding of their target segment. Marketing to the Hispanic market, for instance, means much more than translating English into Spanish. Many times it requires a total revamp of messaging and content to better reflect cultural differences. Geographic Geographic segmentation is the practice of breaking a market up into segments according to location. This can be of virtually any scale, and segments can be broken up into countries, states, cities, streets, neighborhoods or even regions. With geographic segmentation itâ&#x20AC;&#x2122;s important that you find a distinct, meaningful variable that allows you to target a group specifically for advertising. Many factors need to be taken into consideration when defining geographic segments including travel time, similar socio-economic variables, product preference and political. Behavioral Once you get to behavioral segmentation, things stop being so simple. Marketers have long understood that they are able to break people up into groups according to the things they do. However, to all outward appearances, these people could seem very different despite sharing behavioral characteristics. Segmenting along behavioral lines allows a marketing manager not only

to target the right people but also the right time. When consumer behavior is broken down into discrete elements in a predictable framework, as occurs in the sales cycle, it is possible to introduce motivators at the ideal time to increase sales. It is this type of segmentation that is responsible for high impulse-buy items being placed around the register at the supermarket.

Psychographic Psychographic segmentation is another that utilizes insight about subtle psychological characteristics of a group. Much like the other types, the focus is on trying to get at predictable variables that can have an effect on purchasing. Common boundaries for delineation include factors like attitudes, values, interests and opinions. Each of these

values can make a consumer more or less likely to purchase from you, and knowing how each affects that decision can allow you to mitigate the negative factors and boost the positive ones. Occasional Occasional segmentation is focused on scheduled or recurring events.The Please see BRAND BUILDING Page 46

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SAN JOAQUIN COUNTY

BRIEFS Delta to host Stockton is Magnificent event STOCKTON — San Joaquin Delta College will host the fifth Stockton is Magnificent celebration from 11 a.m. – 3 p.m, April 2 at the college campus. The event will feature 24 performing acts, 135 participant booths, nine food trucks and the traditional group photo. The goal of the event is to help promote the city and improve its image among Stockton citizens. “A negative image of our city cannot be changed from the outside world unless we change the negative perception by the citizens themselves,” said Stockton is Magnificent President Denise Jefferson in a release. “They need to learn to love this city.” “Delta College is a valuable educational, cultural and economic engine of the community.” said Superintendent/President Kathy Hart. “Attendees will see our beautiful campus, including Delta’s new Measure L funded instructional centers and renovations. The wealth of talent and civic pride displayed each year by Stockton residents proves that Stockton is indeed magnificent!”

Haggin Museum provides art for House Speaker’s office STOCKTON — Five paintings from the Haggin Museum will be displayed in the office of U.S. Speaker of the House Paul Ryan in Washington. The museum loaned the paintings to the speaker’s office which will be displayed throughout his term. The museum loaned the Speaker’s office the following paintings: “In the Yosemite Valley” by Albert Bierstadt; “Cloud Effect, Estes Park, Colorado” by Albert Bierstadt; “Stagecoach” by Edward Lampson Henry; “Untitled” by William Hart; and “Kneedeep in Summer” by William Hart. Art from the museum has been displayed in Washington in the past. President Ronald Reagan requested to borrow “Looking Up the Yosemite Valley” by Albert Bierstadt. That painting hung in the Roosevelt Room in the White House throughout his presidency.

Lodi winery’s 7 Deadly Zins dubbed “hot brand” LODI — Michael David Winery’s The 7 Deadly Zins is featured in the latest edition of IMPACT’s “Hot Brands.” The wine has made huge leaps in production since it was first introduced in 2000 with 700 cases. The winery now produces over 300,000 case of the vintage.

In 2015, the brand posted a 16.5 percent gain, making it the No. 1 Zinfandel in the United States in terms of value at more than $12 million, according to Nielsen data. The brand has built a reputation for over delivery for its price. That reputation has helped sales at retail stores such as Costco, Safeway, and Walmart. “It’s challenging to grow 15 percent on a 300,000 case brand that’s been around over ten years and is also in a small varietal category,” said Melissa Phillips Stroud, vice president of Sales and Marketing in a press release. “But the consistent quality of the wine along with a new and fresh package helped Michael David reach this goal and great achievement. We are proud of the work we have done and thankful to our market partners, distributors and consumers who have all helped contribute to the achievement of this award.”

Valley olive oils win prizes in statewide competition FRESNO — Coldani Olive Ranch’s Calivirgin Bountiful Basil won Best of Show in the 2nd Annual San Joaquin Valley Olive Oil Competition in March. The Lodi-produced version of the oil shared the award with The Olive Press’ Picual, produced in Sonoma. Entries were taken in two classes, extra virgin olive oil and flavored olive oil, with nine subcategories in total. Gold and silver medals were awarded, as well as an overall “Best of Show” selected from all of the gold medal entries. There were 39 extra virgin olive oil and 22 flavored olive oil entries that were judged by a panel of seven judges from the California Olive Oil Council taste panel on March 8 in Pleasanton. Among other area local versions that won gold medals in the extra virgin oil category were Coppetti Olive Oil’s Harvest Blend form Modesto, Bava Family Grove’s Bava Monticelli Estate Napa Valley from Escalon, Coldani Olive Ranch’s Lodi Olive Oil, Ascolano and Bozzano Olive Ranch’s A2 from Stockton. Coldani Olive Ranch’s Calivirgin Jalapeno Garlic and Extreme Heat Serrano took gold medals in the flavored oil category. Coldani Olive Ranch’s Calivirgin Lusty Lemon, Calivirgin Rustic Rosemary, Calivirgin Oh! Oregano and Hot Virgin Jalapeno also took silver in the flavored oil category.

Grand Foundation launches fundraising campaign TRACY — The Grand Foundation launched its Dedicate a Seat Campaign March. The communitybased non-profit organization will allow Grand Theatre patrons to inscribe a plaque on their chosen seat in the facility’s Eleni TsakopoulosKounalakis Theatre. The Grand Foundation runs a variety of projects aimed at supporting arts programs and entertainment at Tracy’s Grand Theatre Center for the Arts. Patrons will have the chance to pick a seat and inscribe a gold plaque on the arm of the chair that will remain indefinitely. Plaques can commemorate anything that is meaningful to the patron. Inscriptions often honor family, friends, fellow theatre lovers or community leaders. Donation levels for the program range from $750 to $1,500. The foundation’s goal is to create an endowment of at least $1 million. Those wishing to take part in the program can contact Executive Director Tiffanie Heben at (209) 835-3900 or tiffanie@grandfoundation.org.

April 2016

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STANISLAUS COUNTY

BRIEFS Hampton named new Turlock city manager TURLOCK — The city of Turlock selected Gary R. Hampton as its new city manager. Hampton will take over from Interim City Manager Michael Cooke, who will return to his job as municipal services director. Hampton was one of more than 40 candidates who applied for the job. He was confirmed by a unanimous vote of the Turlock city council on March 22. Hampton has a long history with the city of Turlock. He worked for the city in various capacities from 2006-2011. He served as police chief, was an Hampton interim city manager in 2009 and had a collateral assignment as fire chief in 2010. He also temporarily provided leadership over parks, recreation and street/building maintenance in 2010 and 2011. Hampton has spent the last five years as the chief of police in Tracy. During his tenure, he also served as an interim assistant city manager and a public safety director. He also helped develop Tracy’s coaching and career development program and participated in Tracy’s economic development team.

Turlock Chamber chooses new leader TURLOCK — The Turlock Chamber of Commerce has a new CEO and president. Karin M. Moss was selected Tuesday from a pool of more than 20 candidates. She replaces interim CEO Paul Wright who stepped in after long-serving CEO and President Sharon Silva retired last August. Moss’s career has spanned more than 30 years in a wide range of corporate and nonprofit association leadership roles. She provided executive direction to economic development and downtown revitalization programs in several cities Moss throughout California. She has also served as a board member of the Kings Mountain Downtown Association in North Carolina, city of Gastonia’s Reinvestment for Community Program and the Blue Ridge Parkway Association. Her most recent endeavor was conducting marketing campaigns aimed at developing resources for the State Theatre in Modesto and the United Samaritans Foundation in Turlock. Moss will take over the organization at a time when the Chamber and the city of Turlock severed their partnership in operating the convention and visitors bureau. “The Board unanimously agreed that Karin’s breadth of experience and expertise are an excellent fit for us as we expand our membership and establish sound working relationships within the community, the city and our local businesses,”

April 2016

said Chairman of the Board Lazar Piro in a press release. “We’re delighted to welcome Karin to our staff as the new CEO.”

Oakdale, Turlock Realtors honored by Century 21 OAKDALE — Area Century 21 Realtors and companies rated well in the Century 21 Global 21 awards, given during the company’s annual conference. Clarence Oliveira, Jr., of Century 21 M&M and Associates in Turlock, ranked third among the top 21 Century 21 producers. Century 21 M&M Associates in Oakdale was the third highest rated company in the Century 21 chain. The company recognized the top 21 real estate professionals in its 2015 Century 21 Global 21 Awards. Century 21 ranked its companies, offices, teams and sales associates based on their prior year sales production, also known as adjusted gross commission. Four of the top six individual producers were located in California. Five of the company’s top seven teams were from California.

Office of Education to host job fair MODESTO — The Stanislaus County Office of Education will host a job fair April 6 to fill jobs throughout the county. The job fair is for fully credentialed teachers as well as those who will be eligible for internships by August. The job fair runs from 8:30 a.m.- noon, April 6 at SCOE’s office, located at 1100 H St. in Modesto.

Stan State recognized for helping low-income students TURLOCK — Stanislaus State University was rated among the top four-year colleges in the nation when it comes to its percentage of students with Pell Grants who graduate within six years. The ratings, compiled by the Hechinger Report, is part of a federal effort to encourage universities to increase aid to low-income students. The schools were scored, for the first time, based on the number of recipients of Pell Grants they enroll. That aid goes to children of families earning around $40,000 or less. The ranking looked at the proportion of these students who actually get degrees. Fifty-eight percent of Stanislaus State University’s student population currently receives Pell Grant aid and 53 percent graduate within six years. That was a higher percentage than the overall average graduation rate for that campus. “Being among the best to bring low-income students into a college environment and seeing that they are given the necessary resources to achieve their goal of a college degree is particularly satisfying in that it hits so close to our core mission and responsibilities as a university,” said Stan State President Joseph Sheley. Such findings could become important because President Obama’s 2017 budget included $5.7 billion in financial bonuses over 10 years to be shared among the schools that do the best job of helping Pell Grant students graduate. That budget is currently stalled in Congress, however.

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MERCED COUNTY

BRIEFS McGrath named Merced’s new city attorney MERCED — A private attorney with 20 years experience in municipal law has been hired to be Merced’s new city attorney. Jennifer McGrath, 47, was in private practice before the City Council hired her in March. Before that, she served as the deputy city attorney for Huntington Beach and then was elected to city attorney for the community. McGrath said she was already familiar with Merced’s major issues. “The UC community and the McGrath high speed rail are significant projects,” McGrath said. “I am looking forward to working with the new city manager and we have the opportunity to create the future.” McGrath was born in Fremont and spent her early years in the Bay Area. The position pays $180,000 a year. McGrath began work March 21.

State of the College address set for April 22 MERCED — Merced College will host its fourth annual State of the College and Presentation of the President’s Medallion April 22. The event gives the public a chance to hear about the latest news from Merced College President and Superintendent Susan Walsh. During the event, the college honors a significant philanthropist with the President’s Medallion. This year’s recipients are Jim and Carlene Cunningham. The event begins at 11:30 a.m. at 3600 M Street in Merced. Tickets are $50. Call (209) 381-6470 for more information.

Expressway project’s first phase finished MERCED — The first phase of the AtwaterMerced Expressway was finished in late March. Merced County Association of Governments,

Merced County and the California Department of Transportation celebrated the revamped section of State Route 99 with a ribbon-cutting ceremony. “This new expressway and interchange was possible due to Proposition 1B funds and will serve as a gateway to the Castle Airport Development Center and the University of California, Merced, providing motorists with a safer and more efficient commute,” said Caltrans Director Malcolm Dougherty. The $66 million project received approximately $47 million from Proposition 1B, a 2006 voterapproved transportation bond. Proposition 1B authorized $1 billion to be available specifically for safety, operational enhancements, rehabilitation or capacity improvements necessary to improve the SR-99 Corridor. The project closed the Buhach Road ramps and built an interchange to the south to provide access via a new two-lane expressway to the newly constructed Green Sands Road.

Small businesses to be recognized MERCED — UC Merced’s Small Business Development Center will recognize small businesses during a program May 3. The program’s keynote speaker will be school teacher-turned-entrepreneur Jill Rhodes of KleenSlate Concepts. The luncheon will be 11:30 a.m. - 1:30 p.m., May 3 at Torino’s in Merced. Tickets are $40. Call (209) 241-7413 for more information.

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Lodi, Ca 95240

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Oak Ridge Winery, Llc 6100 E Hwy 12 Lodi, Ca 95240 Jandec Ind. Williams Kamari 4451 Continental Way Stockton, Ca 95207 Olivia Soap Reserve Gil Olivia 3080 Garden Lane Tracy, Ca 95377

SJ COUNTY

LEGALS Fictitious Business Names

Woodbridge Research Associates Shimamoto Faith Y 9938 Fernwood Ave Stockton, Ca 952129436 Bca Tax Service Defajardo Blanca Estela Mendez 5637 N Pershing Ave Ste E20 Stockton, Ca 95207

Mz Innovation Tile Bojorquez Florentino Angulo 1921 Universal Dr Stockton, Ca 95206

Briskclean Campbell Keven 3525 W Benjamin Holt Apt 217 Stockton, Ca 95219

Star Succulent Nursery Whitmer Brent Dean 14447 E Tokay Colony Lodi, Ca 95240

Pool Excavation Tapley Stanley David 2043 Nushake Way Manteca, Ca 95336

Roofing Supply Group 2081 E Charter Way Stockton, Ca 95205 Independent Fabricators Hermisillo Eugino 3723 S Hwy 99 Stockton, Ca 95215 Charles Wine Company 24849 E Milton Road Linden, Ca 95236 Chef N’ Save 3542 S Highway 99 Stockton, Ca 95215 New City Transport Dhillon Makhan Singh 3735 Townshend Cir Stockton, Ca 95212

My Kid’s Dentist And Orthodontics 2290 Daniels Street Manteca, Ca 95337 Lisimanis Concrete Pilivi Lisimani 4149 Monet Drive Stockton, Ca 95206 Kirbys Gutters Kirby William Hardy 1231 Cooper Dr Manteca, Ca 95336 Mad Dog Towing 2303 N West Lane Stockton, Ca 95205 Village Auto Sales, Llc 359 W 11th Street Suite D Tracy, Ca 95376

Vantvoort Transport Vantvoort Harry 11901 W Ripon Rd Ripon, Ca 95366

Golden State Hospice Care 324 E 11th Street Suite H2 Tracy, Ca 95376

Zoom Xs Singh Hardip 721 North Commerce St Apt 2 Stockton, Ca 95202

Motel 6 Stockton East Patel Mike T 2533 N Piccoli Rd Stockton, Ca 95215

Bocce Cellars 6100 E Hwy 12

Amici Sushi Ta Son Chi

269 E Louise Ave Lathrop, Ca 95330 Rjq Landscape & Design 821 Golden Oak Dr Lodi, Ca 95242 Lvc Las Vegas 17036 W Locust Tree Rd Lodi, Ca 95240

April 2016

American Gunfighter Concepts Bennett, Zachary 6257 River Road Oakdale, Ca 95361

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Anda Management Systems Backus, Nancy Kay 1850 Alex Way Turlock, Ca 95382

Children’s Dental Fun Zone 569 W Lowell Ave 200 Tracy, Ca 95376

Artes Luna Luna, Luis Fernando 824 Blue Ridge Lane Modesto, Ca 95358

Sunset Motors Nawabi Erage 321 Craftsman Drive Lathrop, Ca 95330

Atomic Apparel Usa Brown, Dalton Lee 600 Galaxy Way Suite D Modesto, Ca 95356

Auto Best Bkr Pourghassemr Hamid R 359 W 11th St A2 Tracy, Ca 95376 Abol Rodent Control Dentone Alfred 600 W Taddei Rd Acampo, Ca 95220 Trulls Installations Trull Tommy Lee 1917 Bristol Avenue Stockton, Ca 95204 Affiliated Residential Capital 1570 Terracina Cir Manteca, Ca 95336 Garcia Juan Leyva Lcsw Juan Leyva Garcia, Lcsw 42 N Sutter Street #503 Stockton, Ca 95202 Quail Creek Vineyards Leasing Company Janssen Katheryn Lagorio Tr 777 N Pershing Ave Suite 1a Stockton, Ca 95203

STANISLAUS COUNTY

LEGALS Fictitious Business Names 3d Farms Duarte, Frank W 1018 Orestimba Rd Newman, Ca 95360

Atomic Tees Brown, Dalton Lee 600 Galaxy Way Suite D Modesto, Ca 95356 B&B Mccrary, Betty 3024 Dovehouse Ct Modesto, Ca 95355

5.11, Inc. 4300 Spyres Way Modesto, Ca 95356

B-V Insurance Services Inc 1301 L St Ste 1 Modesto, Ca 95354

A & L Staffing Ic Curry, Latierra 1343 Crows Landing Rd Modesto, Ca 95351

Baa Services. Llc 1916 Cheyenne Way Modesto, Ca 95356

A & T Trucking Andrade, Frank Joseph 4705 Danielle Pl Salida, Ca 95368 A, U & J Trucking 221 Dorita Way Modesto, Ca 95354 Abbey Senior Placement Agency Cruz Macawile, Evelyn 4942 Toomes Rd Salida, Ca 95368

Balanced Bodywork Steiger Brandi 980 E Augusta St Suite 1 Woodbridge, Ca 95258

Abundant Life Publishing Marcellino, Kathryn 2409 Becker Ct Modesto, Ca 95358

Simplicity Massage Debrito Sabrina 980 E Augusta St Suite 1 Woodbridge, Ca 95258

Agape Children’s Ministry 4624 North Star Way Modesto, Ca 95352

Animal Hospital 39 N Ham Lane Lodi, Ca 95242

Aj’s Royal Properties Arreola, Jesse 1154 Twilight Dr Ceres, Ca 95307

Rg Transport Kaur Ravinder 4563 Eiffel Dr Stockton, Ca 95206

Allstarhandyman Alvarez, Alex 205 Melrose Street Modesto, Ca 95354

Bamboo Garden 111 S Maag Ave Ste K Oakdale, Ca 95361 Banda Vellalinda Palomera, Luis Alberto 2813 Santa Teresa Dr Modesto, Ca 95350 Bbn Detailing-Mobile 3620 Mechalys Way Modesto, Ca 95357 Beckles Candies And Gifts Julian, Eddi Marie 950 10th St Ste 16 Modesto, Ca 95354 Best Rv Transport Khagookokteppa, Baba 3301 Vanderbilt Ave Turlock, Ca 95382 Better Garage Door Company, A Mcclintock, Joshua 612 Kawes Ct Modesto, Ca 95351 Bonkerz Bounce House Rentals Templeton, Lloyd Henry 1200 Latimer Avenue Modesto, Ca 95351

Botanical Innovations Whitford, Michael Allen 1308 East C Street Oakdale, Ca 95361 Bouza Auto Sales Bouza, Achour 4953 B Yosemite Ave Empire, Ca 95319 Brave Bull, The Lubbers, Val Marie 701 South 9th Modesto, Ca 95351 Bring Back Roller King Matthews, Jeremy Donald 3620 Sagewood Lane Modesto, Ca 95356 Broadway Laundry Carrillo, Heledoro Ortega 4706 Broadway Ave Salida, Ca 95368 Bruce’s Mobile Glass & Screens Bryan, Bruce Winfred 110 John Muir Ct Modesto, Ca 95350 C & C Hedging & Enterprise Collison, Paul 1304 P St Newman, Ca 95360 C-C Construction 3631 Ruble Road Turlock, Ca 95380 Ca Luxury Auto Detailing 6801 Hughson Ave Hughson, Ca 95326 Cal-Coast Concrete 3631 Ruble Road Turlock, Ca 95380 Caliber Collision Centers 431 10th St Modesto, Ca 95354 California Direct Hackett, Harold G 523 Downey Ave Modesto, Ca 95354 Callie Collection 6342 Bystrum Rd Ceres, Ca 95307 Canon 13 6342 Bystrum Rd Ceres, Ca 95307 Car Audio Depot Llc 3012 Mchenry Ave Modesto, Ca 95350

April 2016

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April 2016

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The Luxury Theatre in Riverbank, known for its reclining seats and upscale fare, now has another attraction to draw in movie fans. Its IMAX screen showed its first film, “Batman vs Superman” in 3D at the end of March. The screen is seven stories high and almost 75 feet wide. The theater has 352 seats, all recliners. The Luxury Theatre is the second in our area to have an IMAX screen. The Stockton Regal City Centre also has one. The next movie the theater will show will be “The Jungle Book.” Did you know? IMAX is short for Image MAXimum.

BRAND BUILDING Continued from Page 41

most salient example of this is the annual marketing buildup that occurs surrounding the year-end holiday season. By targeting specific events, holidays like Christmas, Hanukkah and Kwanzaa can be planned for, which can result in large boosts in periodic sales. Think of all the fireworks stands, rabbit breeders, and tree farmers that benefit from occasional segmentation. Without breaking things up in this fashion, there would be many missed sales opportunities. Benefits sought The final form of segmentation, described by benefits sought by the consumer, is a bit more straightforward than many of the others. It focuses on the solutions that products and services actually provide to the consumer. After all, a large percentage of sales come directly from things that consumers need. Gas stations and convenience stores make great use of this type of

segmentation by making commonly sought items available for sale despite the fact that many of those items may seem out of place for the types of businesses selling them. Breaking the greater market up into smaller ones allows you to effectively target them.This means you do not waste revenue advertising to people who will never be interested in what you have to offer. It also means those who would be interested in your products or services can be targeted for advertising. Proper market segmentation can mean the difference between a substantial return on investment and a loss. So long as you know how to split the market up, though, picking out parts of the populace to target should be relatively easy and can be amazingly fruitful. – Dan Natividad, a Stockton native, is a partner at Port City Marketing Solutions along with Kristen Dyke and Erin Diego. Dan can be reached at dan@portcitymarketing.com.

TECH TOP 5 Continued from Page 37

much the new phone system can scale. Some new systems are built to max out at a certain number of handsets and require you to replace the core of your system as you grow. If you expect a good amount of growth in the future, make sure to identify whether you will have to make a heavy investment or if the system allows you to just add resources as you go (also called stackable). Lastly, the cost of support can often

be overlooked. How complicated is this system? Who does support work and what does it cost? Are you able to get resources internally certified with some short courses to manage minor changes? Make sure you read up on the pain points other companies are experiencing and find out if support has been a problem. – David Darmstandler is CEO of Datapath, an IT services company with headquarters in Modesto. You can reach him at david@mydatapath.com.

April 2016

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