Cvbj jan2016 allpgs lowres by Central Valley Business Journal

January 2016

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JANUARY

2016 VOL 11 • NUMBER 5

Business Journal CENTRAL VALLEY

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STOCKTON • TRACY • LODI • MANTECA • LATHROP • ESCALON • RIPON MERCED • LIVINGSTON

MODESTO • CERES • TURLOCK • OAKDALE • PATTERSON LOS BANOS • ATWATER

New state laws cover pay, leave for employees

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tracted relationship, regardless of who the contracted provider is,” said Deborah Friberg, Kaiser Permanente senior vice president and area manager for the Central Valley area. St. Joseph’s President and CEO Donald Wiley said both health care companies will share expertise and best practices as joint owners of the hospital. Financial details of the agreement were not disclosed, but Dignity Health will retain 80 per-

SACRAMENTO — The start of a new year brings a host of new laws that affect California’s businesses. There are changes to employee wages, sick leave and even the system employers use to determine eligibility. California’s minimum wage went up to $10 on Jan. 1. It’s the final adjustment in a series of increases Gov. Jerry Brown signed into law in 2013. California Fair Pay Act The Fair Pay Act reduces the burden of proof for plaintiffs who claim gender-discriminatory pay practices, by prohibiting an employer from paying lower wage rates for “substantially similar” work, rather than “equal” work as used in existing law. Employers who are defending such claims are now required to directly demonstrate that a gap in wages is based on a demonstrable factor other than the employee’s gender. Unlike the federal Equal Pay Act, California’s Fair Pay Act allows employees to challenge their pay based on a comparison of wages paid to employees at the business’s other locations. Paid Sick Leave amendments The California Legislature has made changes to the paid sick leave obligations, which went into effect last July. Those fixes took effect July 13, 2015 and clarified the following points: • An employee must work for the same employer for 30 or more days within a year of the start of employment to be eligible to use paid sick leave. • Alternative accrual methods for all leave banks are now allowed. Leave banks that existed

Please see HOSPITALS Page 10

Please see LAWS Page 4

Restaurant owner named Entrepreneur of the year.

Page 6

Forward Food Thinking Modesto creamery honored for cutting food waste.

Page 12 ELIZABETH STEVENS/CVBJ

St. Joseph’s staff will remain Dignity Health employees under the hospital’s new joint ownership agreement with Kaiser Permanente.

Changing partners

Local hospitals part of merger trend

Replenishing Aquifers

By ELIZABETH STEVENS Business Journal editor

Saving the groundwater.

estevens@cvbizjournal.com

Page 24

WHAT’S INSIDE Publisher’s Notes.............Page 2 On the Web.......................Page 5 Spotlight........................Page 18 Who’s Hiring...................Page 26 Economy........................Page 30 Real Estate.....................Page 34 Briefs......................Pages 42, 43 Legals.....................Pages 44, 45

STOCKTON — The Central Valley health care industry is entering 2016 adjusting to shifts in the landscape as two major hospitals work through mergers. Lodi Memorial’s affiliation with Adventist Health was approved last year. Adventist Health plans to make a significant capital investment in Lodi Health, which will

help the hospital deploy a stateof-the-art electronic medical records system and maintain existing clinical services. In Stockton, Dignity Health and Kaiser Permanente last fall announced their intention to jointly run St. Joseph’s Medical Center in a unique partnership that both promised would benefit the community. “This is a unique opportunity to innovate together to improve health care in this community in a way that isn’t possible in a traditional, con-

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January 2016

Making positive changes for the new year Happy New Year! As we welcome in another year, we typically ask ourselves what we can change to make ourselves healthier. I’m asking myself that question right now. Yes, we ate our way through Christmas and kept going until New Year’s Day. Geez, you’d think after years and years of dieting after Sharon the holidays, I’d figure this out. Alley Calone Nope! One morning right after Christmas I had the opportunity to watch Dr. Daniel Amen on public television. He talked about brain health and the importance of staying fit to fight off depression, Alzheimer’s and anxiety, among many other disorders and diseases. I was fascinated by the role the brain plays in good health. He showed brain scans of football players, kids with ADD, Alzheimer’s patients, drug addicts — all types of brain problems. He then went on to say how he has

Publisher’s Notes

devoted his life to studying and reversing these effects. I’m amazed by the results. He showed the scans of deteriorating brains and healing brains. He makes the following recommendations: not smoking; cutting out refined sugar, processed foods and diet sodas; limiting time spent on electronics; exercising daily; reducing stress; sleeping at least seven or eight hours a night (sleeping helps the brain wash out the toxins of the day); reading; playing table tennis or a board game; lifting weights; taking vitamin D; and staying positive. The images of the brain before and after were amazing. He talked about the routine checkups we adhere to, from monograms to colonoscopies, but most people never get a brain scan. I, for one, didn’t know that was an option. My homework for the new year will be finding an imaging center for the brain. Who doesn’t want to know what condition your brain is in and how we can improve its function and reverse damage? Until that morning, I had no idea we could correct damage to the brain and actually improve it! I just love public television. The self-help programs are very beneficial. Our Christmas was wonderful, and the family times were unforgettable. Dinner in the barn was delightful. I did miss my eldest son’s company

but had the pleasure of knowing he spent Christmas Eve sailing the blue waters of Honolulu on his new sailboat with his girlfriend and five Navy brothers. My greatest delight was hearing they returned safely back at the harbor! Hawaii is known for very rough waters! Do we ever stop worrying about our kids? Answer: probably not! On a final note, the best gift I gave this year was to my dear friend Joann Norris, Joann, recently widowed and sometimes lonely, is a now a new mom to a Persian kitten raised by our Stanislaus sales manager, Ron Posey and his wife, Dawn. Now, Joann has company so I’m certain her her days and nights will be filled with joy. No more lonely times for my girl. The gift that keeps on giving, a kitten! These kittens are adorable. We bought two, More good news — there are three 8-week-old kittens left. I’m so excited to see what the new year has in store for us. We are already blessed with snow and rain. My niece and I spent the week before New Year’s Day at our cabin enjoying the beautiful snow. Our prayers go out to the family of Cindy Coppetti, co-owner of Coppetti’s Boutique located in Lincoln Center. Cindy passed away unexpectedly Dec. 18. I had the pleasure of meeting the mother/daughter team,

PHOTO COURTESY SHARON CALONE

June and Cindy, when I first moved to Stockton back in 1976. Their ability to select one-of-a-kind clothing was amazing. My favorite wardrobe pieces came from their boutique. Cindy was extremely talented. In fact, she would make last-minute adjustments to a garment that needed to be worn that same evening. Cindy, you will be missed. Our thoughts and prayers go out to her and her family. Have a wonderful and prosperous new year! God bless America, Sharon Alley Calone

January 2016

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Bay Area squeeze leads to Valley rent spike By KENT HOHLFELD Business Journal writer khohlfeld@cvbizjournal.com

STOCKTON — Renters in the Central Valley shouldn’t expect a reprieve from the onslaught of rent increases they saw in 2015. Renters in San Joaquin and Stanislaus have seen rents spike anywhere from 12 to 18 percent in the last 12 months. “I don’t see any slack off in the rental market at this point,” said Brandy England, property manager at Mariners Pointe apartments in Stockton. The key driver of the surging rents is low vacancy rates. Mariners Pointe only had two of its 220 apartments available as of mid-December. That lack of availability has made Stockton one of the hottest rental markets in the country. Renters in Stockton saw the 14th highest rent surge in the nation according to a report by RentRange. Stockton renters were paying an average of $951 per month, a 12.1 percent increase in 12 months. “Prices are really sensitive by area,” said Diane Starr, owner of Star Property Management which lists rental properties in San Joaquin and Sacramento counties. “The market is tighter than it has ever been.” The low vacancy rates have been powered in large part by people fleeing the prices in the Bay Area. The San

BUSINESS JOURNAL PHOTO

Rents in San Joaquin and Stanislaus counties have increased 12-18 percent over the past year.

Francisco-Oakland-Fremont market saw a 17 percent bump in rental rates, good enough for fourth highest in the country. San Jose-Sunnyvale-Santa Clara renters saw their rents rise 16.1 percent, for the seventh highest rent increase. As high priced areas such San Francisco and areas in the East Bay continue to gentrify due to the influx of high-earning tech workers, lower paid residents are forced into the Central

Valley to find affordable housing. That squeezes the market for local residents who don’t make Bay Area wages. “We get a lot of out-of town tenants,” said Starr. “When the foreclosures hit there was a lot of availability as investors came in and bought those properties and opened up a lot of rental properties. Now those have been filled.” Those hoping to find relief in areas surrounding San Joaquin County

will have an equally tough time. The Sacramento-Arden-Arcade-Roseville area saw a 17.6 percent jump in rents, which landed it at No. 2 on the list of highest rent increases. Modesto is also experiencing a rental boom. Rents there averaged $1,045. Rent on a two-bedroom apartment there has jumped by 18.4 percent according to Rent Jungle, a rental tracking web site. “We pre-lease our apartments and we rarely have a unit available,” said Stephanie Martinez, leasing agent at Stonebridge Apartment homes in Modesto. “We usually rent a unit prior to the person moving out.” She said that easy access to Highway 99 makes the complex a desirable place to live for those commuting to the Bay Area or throughout the Central Valley. “There are a few people that travel to the Bay Area,” she said. “Modesto is also popular for people commuting throughout the Valley.” The one exception to the hot market has been in Merced. Far from popular commuter spots, the average Merced rent has only increased 2 percent in the last 12 months to an average of $771. For everyone else in the Valley, it appears only a Bay Area slowdown can halt area rent spikes. “I think as long as the Bay Area is tight, it will continue to spill our way,” said Starr.

Central Valley Business Journal

January 2016

French Camp VA facility closer to reality FRENCH CAMP — Now that $1.24 billion for major Veterans Administration construction projects was included in the omnibus spending bill Congress passed in December, Rep. Jerry McNerney, D-Tracy, believes that construction will start soon on the $139 million VA Community Based Outpatient Clinic Rep. Jerry McNerney in French Camp. The next step is for the funding, included in the bill passed by Congress and signed by President Obama in late December, to be allocated by the House and Senate Veterans Affairs committees in their project authorizations. “With this funding, our veterans are virtually assured of having a facility in their community that will make it easier for them to access the health benefits they have earned,” said McNerney in a press release. “Over the years, Rep. Jeff Denham and I fought tirelessly and took every measure possible to secure funding for the project in the budget. I’m glad to see that Congress is finally making this important investment in the health and wellbeing of our veterans who will benefit

once the project is completed.” The Tracy Democrat and Denham, a Turlock Republican, have long supported the construction of the facility which will provide health care to 87,000 veterans throughout San Joaquin, Stanislaus, Calaveras, Tuolumne and Amador counties. After the Omnibus bill was passed, Denham and McNerney sent two letters to advocate for the facility’s construction. One was sent to VA Secretary McDonald and invited him to visit the proposed French Camp site. The second letter was sent Rep. Jeff Denham to leaders of the Veterans Affairs committee and asked that the committee take action to allocate the funds outlined in House- and Senate-passed spending bill in their project authorizations. “Central Valley veterans have waited far too long for French Camp to be built while they continue traveling hours for routine medical appointments,” Denham said in a press statement when the bill passed. “Today’s funding bill is a major step forward after years of ongoing effort to push

PHOTO COURTESY VETERANS ADMINISTRATION

The 150,000-square-foot facility will be located along Interstate 5 near San Joaquin General Hospital.

the project to construction.” The 150,000-square-foot facility will include mental health, primary care, physical therapy, occupational therapy, radiology, laboratory, pharmacy, audiology and speech pathology, dental, eye and prosthetics. Other specialty services will be provided on a telehealth basis such as podiatry, orthopedics, cardiology and rheumatology.

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The new clinic will sit on 52-acres of undeveloped farmland, next to Interstate 5, near the San Joaquin General Hospital and the existing Stockton VA clinic. The VA estimates the French Camp facility will break ground in 2017 and take two-and-a-half to three years to complete. If the project stays on schedule, the French Camp clinic would open in late 2019 or early in 2020.

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as of Jan. 1, 2015 have been grandfathered in. Employers with unlimited or undefined leave banks are permitted to indicate “unlimited” on the employee’s itemized wage statement. In addition, under SB 579, workers can take leave to care for extended family members. As Jan. 1, employees may take kin care leave to care for grandparents, grandchildren, and siblings. Also, the reasons an employee may take leave have been expanded. The prior version covered “leave to attend to an illness.” The new version covers the diagnosis, care, or treatment for an existing health condition, or for preventive care and includes certain absences resulting from domestic violence, sexual assault, or stalking. E-Verify One of the most important new laws for employers is AB 622, which limits the way they use the E-Verify system. AB 622 prohibits employers from using the E-Verify system to check the employment authorization status of existing employees or applicants who have not received an offer of employment, except as required by federal law or as a condition of receiving federal funds. E-Verify is an Internet-based system that allows employers to determine the eligibility of their employees to work in the United States. The new law is an effort to prevent employment discrimination or retalia-

tion. The law carries a civil penalty of up to $10,000 for each violation. New auto laws Two of 2016’s new laws concern transportation network companies, such as Lyft and Uber, as well as buyhere, pay-here auto dealers. AB 1422 requires requires a transportation network company such as Uber or Lyft to participate in the DMV’s Employer Pull Notice Program. That program gives companies information on drivers who provide rides for customers of ride-sharing services. Those reports include a driver’s current public record and immediate notifications of moving violations, accidents, driver license suspensions and revocations. Companies are required to pull a driver’s record regardless of whether the driver is an employee or independent contractor. Under AB 265, auto dealers that assign less than 90 percent of their conditional sales and lease contracts to third parties now have to tell consumers if there is tracking or starterinterrupt technology installed in the car. Such technology is used when buyers don’t make payments. The law requires dealers to give five days warning to the purchaser on weekly term contracts and 10 days on all other contracts before they use the technology.Final warning are required no less than 48 hours prior to the use of starter-interrupt technology.

January 2016

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ONLINE EXTRAS The Lists for February ► Commercial Real Estate ► Commercial Building Contractors

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

► Environmental Engineers ► Civil Engineers

4512 Feather River Dr., Suite E • Stockton, CA 95219 Phone: (209) 477-0100 • Fax: (209) 477-0211 Web: www.cvbizjournal.com Columnists Peter Johnson Jason Harrel Dan Natividad David Darmstandler John Parker Michael Blower Bruce Sarchet Contributing Writers Craig W. Anderson Kent Hohlfeld Patricia Reynolds Sim Risso Nora Heston Tarte Bob Balgemann

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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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Central Valley Business Journal

January 2016

Tracy restaurateur honored by chamber By SIM RISSO Business Journal writer srisso@cvbizjournal.com

TRACY — John Oh broke a cardinal rule about entrepreneurship. He didn’t know much about the restaurant industry when he opened The Commons last year. Still, other business leaders regard him as a success. In fact, the Tracy Chamber of Commerce named Oh its Entrepreneur of the Year. Oh will receive the award at the Chamber’s Winter Gala on Jan. 29. “Honestly, I think it’s amazing,” said Oh of the award. “I know there are a ton of great businesses in town and a ton of great business people in town that deserve this way more than myself. It’s a great honor to be recognized in that fashion.” Dino Maragos, president of the Tracy City Center Association, thinks Oh has earned the recognition and credits him for his perseverance. “It’s definitely a very well-deserved honor,” said Maragos. “It wasn’t easy, as I’m sure anybody will tell you, to open up a restaurant. It’s a long, hard road, but he followed his passion and made it happen.”

I think the best part about it is I get to cook. So I get to do something that I enjoy doing as a job. John Oh The Commons owner

The Commons, located in downtown Tracy on 10th Street, opened in the summer of 2014. Oh characterizes it as a gastropub, which focuses on serving quality food, craft cocktails and a unique selection of craft beers. Prior to opening The Commons, Oh had no experience in the restaurant industry, although opening a bar was an idea he’d been thinking about since he was a teenager at Tracy High School. As someone who grew up in Tracy, he began ruminating on the details of how he wanted to operate and what would be a success in his hometown. “Once I started developing ideas, I think the biggest thing was there was a huge need for the city to have a place kind of like this,” said Oh.

WAYNE DENNING/CVBJ

Oh describes The Commons as a gastropub with a focus on craft spirits and beers as well as local food.

“We’re very process-food based. There are a ton of chains. You can think of any chain, and they’re going to be in Tracy. Everything was processed, so I kind of wanted to take a step back.” Instead of viewing it as one entity, Oh looks at The Commons as three separate businesses operating under one umbrella. He breaks it down as if craft beers, craft cocktails and food are all independent of each other,

with the common goal of making the overall restaurant a success. Having a downtown location was also important to Oh. Even though a lot of the city’s traffic and other businesses are located closer to the interstate, Oh wanted to help revitalize the downtown area. He wanted to attract more people to the city’s center, espePlease see OH Page 13

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Walking for better health, lower premiums? By PATRICIA REYNOLDS Business Journal writer preynolds@cvbizjournal.com

STOCKTON — Five employees of Big W Sales covered a lot of ground last October. The group, competing as a team they dubbed” Between a Walk and a Hard Spot,” logged a combined 2.5 million steps, equivalent to 1,198 miles, to win the OktoberFIT challenge sponsored by Dorhrmann Insurance Agency. Headquartered in Stockton and with offices in Fresno and Yuma, Arizona, Big W Sales manufactures and distributes fertilizer equipment. Dorhrmann Insurance, also located in Stockton, launched the step competition with the goal of helping clients such as Big W Sales develop healthier workforces and ultimately lower their health insurance costs. Because many of Dorhmann’s customers are small companies with 50 to 100 employees, they don’t yet have established wellness programs. “We took a look internally nine months ago and said, ‘What more of a role can we play. How can we help our customers have healthier employees?’” said Dorhmann’s Director of Strategy and Innovation Bryan Colyer. “We just don’t want to be the company that says, ‘Here’s your plan and here’s your deductible and see you next year.’

BUSINESS JOURNAL PHOTO

Dorhmann Insurance Agency gave Fitbit Zips to participating companies for a competition to encourage employees to be more active.

We wanted to be more than just that.” The result of Dorhmann’s brainstorming was OktoberFIT, a pilot program that tested a step challenge among eight local clients in Lodi and Stockton. The idea was to start small using available technology that was easy to use and simple to administer. After researching available solutions, Dorhmann chose Fitbit activity trackers to monitor each participant’s progress.

• • •

“You wear the device on your wrist, and you have an app on your phone, and you’re not using your company’s laptop or infrastructure to be in the fitness challenge,” Colyer said. Each of the eight OktoberFIT participating companies invited five employees -- a team leader and four others -- to compete in the challenge. The teams selected names such as “Spanos Blister Sisters” of AG Spanos, “Kick-

ing Asphalt” from Nelson Staffing and Interstate Truck’s “Burn Baby Burn.” Dorhmann provided $60 vouchers to the 40 competitors, enough to purchase Fibit’s entry level tracker called Zip. “This is a big investment. We are a small business and yet we want to help and to do our part,” Colyer said. Many of the participants chose to upgrade on their own to higher functioning trackers and spent up to $250, which Colyer believes indicated the commitment team members made to the challenge and to their ongoing fitness. While Big W Sales walked away with a big win and a lunch hosted by Dorhmann, other challengers deemed the competition a huge success. “We had a lot of fun with it. It really kind of made me step up,” said Susan Atkins, vice president of Golden Bear Insurance Company and team captain of “The Bear Tracks.” “I was trying to get at the top of the list,” she said. “The goal is 10,000 steps, but then in order to be at the top it needed to be 13,000. And then I thought I can win if I stick to 15,000 steps. We kind of got really competitive.” All OktoberFIT participants were able to track their own progress along with that of their teammates and competition through a workplace challenge group Dorhmann set up on the Fitbit website. Please see WALKING Page 19

Central Valley Business Journal

January 2016

Lodi’s Chandler brings wine, agritourism savvy By CRAIG W. ANDERSON Business Journal writer canderson@cvbizjournal.com

LODI — Wine industry veteran Mark Chandler begins work this month as Lodi’s new mayor just as Lodi’s efforts to position itself as an agritourism power are beginning to fire on all cylinders. The Amgen Tour of California will return to the city in May, and the region was anointed Wine Region of the Year by Wine Enthusiast Magazine. “There’s a sense of harmony to be elected mayor after working for 20 years promoting Lodi wines,” Chandler said. “Lodi wins this prestigious award, and now I get to go to New York for the award ceremony representing Lodi as mayor.” Chandler has more than 30 years experience in the wine sector. He was executive director of the Lodi Winegrape Commission for 20 years before creating Chandler & Company Wine Consultancy. Chandler was elected to the City Council in November 2014 and has been serving as vice mayor. Under Lodi’s charter, the mayor and vice mayor

We need growth to sustain our standard of living. Balanced growth is what we’re after. Mark Chandler Lodi mayor

are selected by the council every year. On Dec. 2, the council voted unanimously to make Chandler mayor. Doug Kuehne will serve as vice mayor. Agritourism is a visible result of Chandler’s marketing efforts. The eight wineries operating when he arrived had grown to nearly 100 during his two decades with the commission. Now, Lodi is focused on using the wine industry to build the city into a tourism destination. “Employment, tasting rooms, expansion of the hotel and restaurant industries have set us on a great path of agritourism,” he said. “Amgen’s back, and our wine festivals and events demonstrate a fairly high level of awareness of Lodi and what we

WAYNE DENNING/CVBJ

Mayor Mark Chandler meets with business owner Dave Kirsten in downtown Lodi.

have to offer visitors.” Upcoming Lodi City Council meetings will deal with a variety of serious issues such as what to do with the vacant General Mills plant. Chandler noted that is space that must be filled. “More economic development, retail in particular, is coming our way,” explained Chandler. “And residential construction too, which brings some concerns and

various issues along with it.” Public safety is a focus with a new fire station in the works. The city also has a new police chief and six new officers. “It hasn’t helped Central Valley communities that property crime has increased due to the early release of Please see CHANDLER Page 13

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Under the agreement, Dignity Health will maintain 80 ownership of St. Joseph’s Medical Center. Kaiser Permanente will have 20 percent.

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cent ownership of the St. Joseph’s and Kaiser will have a 20 percent stake. The initial term of the partnership is 20 years with options for 10-year extensions. It is expected to be approved and take effect in mid-2016. The hospital will be run by a sevenmember board of managers, the majority of whom will be appointed by Dignity Health, according to Wiley. The board will oversee the budget and capital investments. Dignity Health will still be the management company and will oversee the budget. Hospital staff will be Dignity Health employees. Kaiser has about 100,000 members in the Stockton area. While the increased volume will be a benefit when it comes to keeping costs down at the hospital, Wiley said it will not tax the hospital’s resources. St. Joseph’s has 366 beds, and Wiley said last year there was a daily average of 210 patients in the hospital. Kaiser patients are expected to increase that average by only about 25 patients per day. The hospital is expanding its emergency department to add 17 treatment spaces to the 32 it currently has. The emergency department saw 70,000 visitors in 2015. Wiley said the Kaiser partnership will likely add about 8,000 to that number next year. “It’s a relatively small increase in volume,” Wiley said. “But it helps to lower our costs long term and prevents Kaiser from investing in a very expensive hospital facility in this area, which would be, I think, devastating to all of the hospitals in our market.” Friberg said that with more procedures being performed on an outpatient basis, there wasn’t a need for another hospital to accommodate overnight stays. “We gave serious consideration to building a hospital,” said Friberg. “It is expensive to build a new hospital. Adding additional capacity in a community where it isn’t truly needed (would) ultimately drive up the cost of care for everyone.”

According to Wiley, the partnership will mean increased economic stability for St. Joseph’s, which he said will help the hospital maintain its commitment to the community, including serving the poor in Stockton. He said that using the hospital more completely will help spread the cost of care among more patients and keep it affordable. The mergers are part of a nationwide trend toward integrations in health care,which has been happening for a couple of decades but has accelerated because of the Affordable Care Act. “The ACA by design, is seeking greater integration in health care,” said health care economist Peter Hilsenrath from University of the Pacific. “It’s almost official policy that we will see more integration.” Some may question how the merger of two health care giants will lead to lower costs, but Hilsenrath said such selective contracting agreements are among the most effective ways to keep costs down. “St. Joseph’s, of course, now has access to a whole lot more referrals for hospitalizations,” Hilsenrath said. “St. Joseph’s is not going to demand higher prices from Kaiser when they’re linked at the hip like that. Kaiser can get the better prices, but they can also provide volume.” According to Hilsenrath, in many cases, the motivation for mergers is to improve a health care company’s position in the marketplace. “It’s about market power,” said Hilsenrath. Wiley said that’s not the case here. He said Dignity Health is one of the biggest healthcare companies in the country with significant bargaining power. “Joining with Kaiser locally doesn’t change any of that at all,” Wiley said. “We’ll still be part of the same purchasing group and ultimately when we do managed care contracting as a system, We’ll just be one hospital in that system.”

January 2016

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Covered California targets Valley consumers SACRAMENTO — More than 197,000 Californians signed up for Covered California so they would have health insurance by Jan. 1. According to Covered California Executive Director Peter V. Lee, more than 55,000 consumers had enrolled in health care coverage on Dec. 14-15 alone. That two-day total surpassed the enrollment figures seen last year during the same period when more than 35,000 people signed up for coverage on Dec. 14-15, 2014. That surge in interest prompted the health care exchange to extend the initial enrollment period by two days. People enrolled by Dec. 17 would be insured starting Jan. 1. “We want to make sure that everyone who is working to get in the door has the time they need to get the coverage they deserve,” Lee said. In December, Covered California also released a map showing the top areas in the San Joaquin Valley where it’s believed high numbers of people who qualify for subsidized health insurance live. While Covered California estimates that 2.5 percent of the state’s overall population is subsidy-eligible, the maps show: • 6.4 percent of the population in Stockton’s hot spots is subsidy-eligible. • 5.5 percent of the population in Modesto’s hot spots is subsidy-eligible.

• 3.6 percent of the population in Turlock’s hot spots is subsidy-eligible. “If you live in one of these areas — in Lodi or Woodbridge, in Morada or Garden Acres, in Riverbank or West Modesto, or in Turlock — and you do not have health insurance, now is the time to get covered,” Lee said. “This is our opportunity to build healthier communities throughout the San Joaquin Valley and the rest of the state.” To help reach those areas, Covered California increased its service in Spanish and Asian languages. It also opened more storefronts in hot spots, canvassed neighborhoods and deployed its branded Covered California van dubbed the “Van with a Plan” to areas where high numbers of subsidyeligible uninsured Californians live. Open enrollment runs through Jan. 31. Coverage starts in either February or March for consumers who enroll after Dec. 17. Consumers can enroll online by visiting www.CoveredCA.com, or they can get in-person enrollment assistance by visiting www.CoveredCA.com/ get-help/local to find the nearest Certified Enroller. Enrollment assistance is free, confidential and available in a variety of languages. Consumers can also enroll over the phone by reaching Covered California at (800) 300-1506, between 8 a.m. and 8 p.m.

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January 2016

Milk processor cuts waste by 98 percent Modesto’s Crystal Creamery sets food waste reduction as big goal By BOB BALGEMANN Business Journal writer bbalgemann@cvbizjournal.com

MODESTO — Crystal Creamery’s path to sustainable practices started in 2014 during a brainstorming session among its employees. The goal was to create a sustainable program to reduce food waste and promote social responsibility. The project also had to make sense economically. The program the company developed and implemented in less than a year caught the eye of the U.S. Environmental Protection Agency. This year, Crystal Creamery won the national Food Recovery Challenge Award for Innovation from the EPA. It cited the company as a leader in sustainability. The award was issued in conjunction with an initiative launched in 2013 by the EPA and U.S. Department of Agriculture. At that time, they called on those in America’s food supply chain to reduce, recover and recycle food waste. Food waste in the United States is estimated to make up 30-46 percent

of the total food supply, according to those federal agencies. In 2010, it was estimated that 113 billion pounds of food from U.S. retail stores, restaurants and homes didn’t make it into people’s stomachs. The amount of uneaten food in homes and restaurants was valued at almost $390 per consumer. Hence the effort by the EPA and USDA to reduce such waste. But the challenge is complex and, as seen in the company’s plan, goes beyond the United States wasting so much of its bounty. Crystal Creamery assembled a team primarily responsible for crafting a sustainable plan that addressed food waste in a number of areas. It was led by the company’s sustainability and environmental program manager, Tiffany Hooser. The team also included Organic Solutions Management technical director John Brenan as well as Crystal’s maintenance manager Doug Cox and chief engineer Matt Titus. In part, the plan included re-engineering existing equipment and systems along with a better use of milk byproducts, Brenan said. That re-

PHILIP JOHNSON/CVBJ

Organic Solutions Management technical director John Brenan,Chief engineer Matt Titus and sustainability and environmental program manager Tiffany Hooser worked to create Crystal Creamery’s award-winning sustainability program.

sulted in less material going into the landfill and fewer trucks on the road. The process begins when milk from area farms is trucked into the Crystal Creamery plant in Modesto. There, Foster Farms, doing business as Crystal Creamery, produces a full line of dairy products including cottage cheese, sour cream, ice cream, milk powder and butter.

An important element in making those products is food safety, which requires a clean-in-place process of routinely rinsing and sanitizing the pipes and equipment. To do that, the creamery operates an industrial waste water pretreatment system to remove organic contaminants before the waPlease see CREAMERY Page 14

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CHANDLER Continued from Page 8

criminals,” he said. “However, I’m confident our police force will be able to meet any challenges this presents.” He also said he’s working very closely on Lodi’s homeless situation. Lodi has a population of 65,000. The city’s general plan is “ag sensitive” and calls for limited expansion of new homes. Chandler believes any talk of new construction needs to be managed carefully.

CVBJ

OH Continued from Page 6

cially at night. “That restaurant, directly and specifically, has influenced other restaurants to locate in proximity,” said Maragos. “He’s raised the bar. He’s raised the standards for growth, all along that street corner they’re located on. And it definitely put a spotlight on downtown as far as dining options. Six, seven, eight years ago, everything shuts down at 5 o’clock. But now you have restaurants nearby, and there are more coming.” Oh also has a unique viewpoint on the industry, which he credits to his lack of experience in it. He described himself as “a sponge” when coming up with concepts for the restaurant. He talked to other restaurant owners and small-business owners in different fields. In fact, if he had any advice for prospective entrepreneurs looking to open a business, it’s just that: Absorb as much information as you can. And think over every aspect of the business you can prior to opening, even a backup plan if it fails, which Oh admits he did. “I think the biggest thing is you need to do so much due diligence,” said Oh. “You have think about every single crazy situation that’s going to happen and then have a counter for it. Then when you open, there’s going to be a million more that show up that you could never think of. “Be so confident from doing so much research that when you’re ready to pull the trigger, it’s all systems go.” Despite the long hours — he says he’s at the restaurant seven days a week — Oh has loved every minute of owning The Commons. During hours of operation, he works alongside his employees, spending his time cooking and delegating other responsibilities to his crew. “I think the best part about it is I like to cook,” said Oh. “So when I’m here, I’m back on the line. So I get to do something that I enjoy doing as a job.” He enjoys it so much that eventually Oh, who’s 34, would like to open more restaurants in the future. “If I could predict the future, when I’m 52, I’d like to have multiple places in Tracy,” said Oh. “I don’t think there’s really a need to go outside of Tracy. I have roots in Tracy. I care about Tracy. There’s no place I’d rather be than Tracy.”

“We need growth to sustain our standard of living. Balanced growth is what we’re after,” Chandler said. “We want to get that message out in many ways, including neighborhood meetings to explore the issues associated with controlling and planning our growth.” The General Mills plant is the most logical place to begin stimulating business growth to replace the jobs and taxes Lodi lost when the company pulled up stakes. The city hopes a variety of industries will consider locating to Lodi. “We’re targeting big Bay Area com-

panies to move here, and we work with the San Joaquin Partnership to bring business here,” said Chandler. Chandler said scheduling sufficient time for his mayoral and business responsibilities is “quite a challenge and I’ll have to be as engaged as possible in both.” It will be important, he said, that Lodi work well with surrounding entities, including Stockton, other cities and the county’s Board of Supervisors. “I want to get together so we can understand each other’s issues,” Chandler said. “There’s a lot of cooperation with

the San Joaquin Council of Governments, Local Agency Formation Commission and the League of California Cities’ central valley chapter.” Chandler expects he and the council will also have to deal with the drought, pensions, and marijuana — legal or otherwise. One aspect of what Chandler offers as mayor is the prospect of short meetings. “I hate long meetings and you will see very efficient council meetings,” he said. “My time with the winegrape commission educated me in how to run effective open meetings.”

Central Valley Business Journal

CVBJ

January 2016

CREAMERY Continued from Page 12

PHILIP JOHNSON/CVBJ

Organic Solutions Management technical director John Brenan monitors the creamery’s methane digester, which reduced methane in the atmosphere.

ter is sent into the plant’s waste water treatment system. There, chemicals are added to separate the solids from the water before the water is piped to the city of Modesto’s treatment plant for further purification. A byproduct of all that, known as sludge, is trucked to the Fiscalini Farms digester, about 10 miles north of the Crystal plant. Once there it is mixed with manure from some 2,000 dairy cows and put into large tanks with mixers. “They’re just like large stomachs,” said team member Brenan. Methane gas, another important element in the plan, is produced from that process and provides enough electricity to power 1,000 homes. A 16-cylinder, 1,200-horsepower engine powers the generator that delivers that electricity to an adjacent grid, a system of power lines, for distribution to where it’s needed. Another impact of the plan, Hooser said, is the reduction in greenhouse gas emissions caused by hauling the organic byproducts for management. Fiscalini Farms’ digester is close to the Crystal processing plant, and that saves more than 10,000 miles of transportation each year. In addition, the change in chemistry at the company’s processing plant reduces the organic load on the city of Modesto’s treatment plant. That saves the city money and reduces the volume of solids requiring disposal.

With its new plan in place, Crystal’s goal is to have zero waste by the year 2020. “We’re at 98-and-a-half percent right now,” Hooser said. “But the last 1-and-ahalf percent is the toughest to capture.” And what’s so hard about that? “Because there’s no use for it,” she said. Some 24,000 cows from five family farms and 18 dairies provide milk for the Crystal Creamery plant. Milk production is the No. 2 commodity in Stanislaus County, with a value in 2014 of $952.18 million. Crystal Creamery’s effort “shows the ag industry is concerned about the environment and waste,” said Stanislaus Agriculture Commissioner Milton O’Haire. “They’re an example of one that has gone above and beyond. It’s awesome for them to have won this kind of an award.” “(Crystal Creamery) firmly believes that we have a responsibility in making sure that we do our best in giving back to the community, and reducing wasted food does just that,” Crystal Creamery President Frank Otis said in a press statement. The Crystal team will continue working to enhance the plan, which is ongoing and will be updated on a regular basis. New challenges lie ahead, including water reclamation and conservation, according to Hooser. Crystal Creamery was founded in 1901 and is owned by the Foster Family. It employs about 650 people.

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HOSPITALS In San Joaquin, Merced and Stanislaus Counties.Ranked by Patient Days of 2014. Ties Are Listed in Alphabetical Order. Hospital Name Address

Doctors Medical Center of Modesto 1441 Florida Avenue Modesto, CA 95350

Memorial Medical Center 1700 Coffee Road Modesto, CA 95355

St. Joseph’s Medical Center 1800 N. California Street Stockton, CA 95204

Mercy Medical Center 333 Mercy Avenue Merced, CA 95340

Oak Valley Hospital 350 S. Oak Avenue Oakdale, CA 95361

San Joaquin General Hospital 500 W. Hospital Road French Camp, CA 95231

Kaiser Permanente Modesto Medical Center 4601 Dale Road Modesto, CA 95356 Manteca Medical Center 1777 W. Yosemite Avenue Manteca, CA 95337

Top Local Executive

Patient Days

Local Phone

Available Licensed Beds

Outpatient Visits Avg Length of Stay (days) Occupancy Rate

Warren J. Kirk, CEO (209) 578-1211 dmc-modesto.com

125,489 459 24,603

140,157 5 74.90%

$4,133,412,853 $26,594,881

Daryn J. Kumar, CEO (209) 526-4500 memorialmedicalcenter.org

77,774 423 16,860

94,646 4.6 50.40%

$2,235,649,601 $39,494,275

DaVinci Robotic Surgical System, Behavioral Health at Doctors Behavioral Health Center, emergency and level II trauma services & transport, imaging services, nuclear medicine, pediatrics, level III neonatal intensive care unit, Valley Heart Institute, women’s and children’s center 24-hour emergency care, inpatient/outpatient surgery, obstetrics, pediatrics, nuclear medicine, dialysis therapy, diagnostic imaging, intensive care services, physical therapy and home health

Donald J.Wiley, CEO/President (209) 943-2000 stjosephscares.org

69,535 364 15,045

455,212 4.5 52.30%

$1,906,959,143 ($15,520,119)

ACOC Accredited Regional Cancer Center, Heart Center (top 10% nationwide for heart attack treatment) Women and infant services

1899

David Dunham (209) 564-5000 mercymercedcares.org

41,750 186 10,729

297,004 4.5 61.50%

$1,028,470,034 ($7,834,632)

Emergency care, surgical service, cardiac, orthopedics, critical care, birth center, clinic, home health and Mercy UC Davis cancer center Owned by Dignity Health

1873

John McCormick, CEO (209) 847-3011 oakvalleycares.org

41,008 150 1,109

114,064 4.1 74.90%

$194,927,218 ($5,947,394)

Emergency services, maternity, imaging and radiology, surgical services and outpatient services

1968

Dave Culberson, CEO (209) 468-6000 sjgh.org

37,756 196 9,169

211,402 4.1 52.80%

$921,966,903 $9,848,468

24-hour emergency and urgent care, family maternity center, intensive care unit, medical surgical unit, progressive care unit, pediatrics, surgery, intensive care nursery, physical medicine and rehabilitation

1857

Web Address Total Discharge

Gross Patient Revenue Net Income Services and Specialties From Operations

Emergency and urgent care, surgery,adult family medicine, cardiology, gastroenterology, head/neck, sports, vision, women health, urology, pulmonology, mental health, orthopedics, pediatrics, physical therapy, wound care, hopice and more Modesto and Manteca are a consolidated facility

Year Est.

1962

1970

Deborah Friberg Senior Vice President Area Manager (209) 735-5000 kp.org/centralvalley

34,710 239 9,805

70,816 3.5 39.80%

NA NA

Lorraine Auerbach, CEO/President (209) 944-5550 dameronhospital.org

33,439 202 7,986

106,850 4.2 45.40%

$1,181,895,947 ($449,172)

Orthopaedics, cardiology/cardiac surgery, bariatrics surgery, OB/GYN, outpatient primary care and occupational medicine Kaiser affiliated

1912

Joseph P. Harrington, CEO/President (209) 333-5160 lodihealth.org

31,213 214 7,034

238,811 4.4 40.00%

$1,137,930,026 ($3,112,074)

Acute care, primary care, specialty care medical practices, outpatient surgery center and outpatient endoscopy center, robotic surgery and bundled payment plans

1952

John Lovrich (209) 248-7700 centralvalleyspecialty.org

27,700 100 793

NA 34.9 75.90%

$106,737,226 NA

LTACH, long term acute care Transitional Care Care for medically complex patients who have catastrophic illness

2013

Sue Micheletti (209) 667-4200 emanuelmed.org

14,841 209 3,488

55,314 4.3 46.40%

$485,919,562 ($1,040,505)

Critical care, imaging, medical and radiation oncology, pediatric, birthing center, women’s health cardiology, rehabilitation and more

1917

Nicholas Tejeda, CEO (209) 823-3111 doctorsmanteca.com

13,413 73 3,628

64,907 3.7 50.30%

$676,921,300 $6,069,770

Maternity, emergency services, pediatrics and comprehensive diagnostic and surgical services

1962

David Thompson, CEO (209) 835-1500 suttertracy.org

12,289 81 3,969

82,745 3.7 41.60%

$448,789,160 $28,594.392

Full service and acute care hospital

1948

2004 2008

Dameron Hospital Association 525 W. Acacia Street Stockton, CA 95203

Lodi Memorial Hospital 975 S. Fairmont Avenue Lodi, CA 95240

Central Valley Specialty Hospital 730 17th Street Modesto, CA 95354

Emanuel Medical Center 825 Delbon Avenue Turlock, CA 95382

Doctors Hospital of Manteca 1205 E. North Street Manteca, CA 95336

Sutter Tracy Community Hospital 1420 N. Tracy Boulevard Tracy, CA 95376

St Joseph’s Behavioral Health Center 2510 N. California Street Stockton, CA 95204

Paul Rains (209) 461-2000 stjosephsanhelp.org

11,686 35 1,866

9,425 6.3 91.50%

$37,977,524 (1,849,53)

Psychiatric non-profit services Behavioral Evaluations Inpatient and Outpatient services

1988

San Joaquin County Mental Health 1212 N. California Street Stockton, CA 95202

Victor Singh (209) 468-8660 co.san-joaquin.ca.us

5,287 16 575

NA 9.2 90.50%

$5,622,136 None

Crisis Intervention 24-hour Hotline (800)273-8255 Mental Health and substance abuse services Clinics also available in Lodi and Tracy

1981

Memorial Hospital Los Banos 520 West I Street Los Bans, CA 93635

Ash Gokil, CEO (209) 826-0591 memoriallosbanos.org

3,723 44 1,488

68,435 3.4 23.20%

$218,877,368 $6,974,094

24-hour Emergency, birth center, surgical services, ICU, and clinic Sutter affiliated

1967

Stanislaus Surgical Hospital 1420 Oakdale Road Modesto, CA 95355

Douglas Johnson, CEO (209) 572-2700 stanislaussurgical.com

1,303 23 555

9,838 2.3 15.50%

$137,319,741 $1,393,059

Gynecology, ear, nose and throat, pain management, plastic surgery, oral surgery, gastroenterology and more

2000

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. (209) 477-0211 or email research@cvbizjournal.com. Copyright Central Valley Business Journal. Researched by Danette Conley 12/2015

January 2016

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Central Valley Business Journal

Business Journal Spotlight Empowered workers key to bakery growth

January 2016

CENTRAL VALLEY

By PATRICIA REYNOLDS Business Journal writer preynolds@cvbizjournal.com

MODESTO — Paul Holshouser believes he is effective as president of Flowers Baking Company of Modesto because he lets people do their jobs. “I’ve always been a firm believer in allowing people to manage themselves and take responsibility for their work,” he said. “I’ve been there just to help them, work with them and not be overbearing as a boss.” Holshouser’s leadership approach means balancing time with managers, visiting Flowers’ broad network of distributors and presiding over a bakery that processes more than 1 million pounds of dough per week. Flowers Baking Company of Modesto began production in April 2014 after purchasing Fresh Start, a smaller bakery, in 2013. Flowers produces Sara Lee, HomePride, Nature’s Own and Wonder brands baked products. The Modesto bakery serves a mar-

ket consisting of nearly 14 million people in Northern California. Its region stretches from Redding to Visalia and from Ukiah to Reno, Nevada. It supplies 250 Safeway stores, 100 Walmart stores and 200 Save Mart Supermarkets stores. Flowers of Modesto also ships products to Target, Costco and Winco Foods stores within Northern California. A robust background in the grocery business combined with strong people skills are assets Holshouser relies on every day in managing the Modesto production facility. He began his career as a part-time bagger at a Food Lion grocery store in Virginia while working his way through college. Marriage and children put college on the back burner, but Holshouser continued with the grocery company and worked his way up to store manager. In 1993, after 10 years with Food Lion, Holshouser became an independent distributor for Flowers Baking Company in Norfolk, Virginia.

PHILIP JOHNSON/CVBJ

Paul Holshouser brought the Flowers Baking Company brand to the West Coast. The Modesto bakery produces Sara Lee, HomePride, Nature’s Own and Wonder bread.

“That’s how I was introduced into the bread business,” he said. “After a year they asked if I wanted to come into management with Flowers Baking Company.” Holshouser moved up within the Flowers organization and held positions that included operations manager, market manager, director of sales and vice president of sales — all in Virginia, North Carolina and Ar-

kansas. After years working in the eastern United States, the company’s managers asked Holshouser to take the Flowers name and culture west to California. His vast work experience prepared him well for leading the Modesto bakery. “I think having a grocery background helped me relate to our Please see BAKERY Page 19

January 2016

CVBJ

www.cvbizjournal.com

BAKERY

CVBJ Continued from Page 18

customers,” Holshouser said. “Our biggest part of our customer base is retailers — grocery stores — and I was able to relate with them because I came from that field.” His grocery experience is not the only tool Holshouser uses daily in leading the Flowers Baking Company of Modesto. Having the skills to interact productively with his 250 employees, as well as clients, is necessary for a productive leader, he believes. “Being able to work with different people and trying to focus on tasks and figure out ways to get things accomplished is a big help,” he said. In fact, working with distributors and staff is one of Holshouser’s favorite things about his job. “I’m not an office person. I can’t sit in four walls all day,” he said. “I like being out with our customers. I like being out with our management staff. I love training people.” For Holshouser, a career in the bread industry has turned out well and he recommends it to others who share his interests. “If someone enjoys working with others and likes to be outdoors and call on customers, this a great field to be in,” he said. The food industry is competitive and with bread, the household penetration is huge. Flowers must compete with other key suppliers such as Bimbo, which ships Orowheat, Thomas bagels and English muffins, and San Luis sourdough bread, by providing better service. Since production began in Modesto, Flowers has met that challenge and market share in the region has grown tremendously, Holshouser said. The bakery’s success here has enabled the company to add more than 100 jobs in sales, production, engineering, sanitation and logistics. Flowers kept Fresh Start production and engineering employees and maintains the positive work ethic and culture originally built by Fresh Start management. The formula has worked well, according to Holshouser. “We had a pretty successful opening,” Holshouser said. “The employees were excited. So far it’s been really successful.” In addition to personally enjoying the weather and the agricultural environment of the area, Holshouser believes Flowers chose well in establishing a bakery in Modesto. “(When) our company decided to come to California, we picked the right spot,” he said. “I think it’s perfectly located here in the Valley with access to the major highways, all the major cities.” Holshouser is looking forward to the coming year for Flowers. He is going to represent the company as a board member of the Modesto Chamber of Commerce, which will enable him to interact with other businesses in the area. Flowers will be the only manufacturer represented on the board.

WALKING Continued from Page 7

“We were having a lot of fun with it,” Atkins said. “We were going on walks together and encouraging each other. And through Fitbit you can send a smiley face or you can send a taunt or messages like step it up. We were doing a lot of that.” Atkins’ team finished second with 1.75 million steps, or 829 miles. In order to extend the fitness experience to more of its customers’

employees, Dohrmann plans a second challenge beginning this month. Participating companies will select a new group of five employees to form teams in order to grow fitness awareness within each company and eventually reduce insurance costs. “Because this wearable is tracking fitness daily, we believe that we can take that data -- anonymous data -- and we can prove that we are all taking over 10,000 steps a day, and we can prove that our claims are low, that we’re not going to hospitals,” said Coyler. “We actually have the

data to back up that instead of paying $100,000 in insurance a year, for example, we should be paying $80,000.” For Mia Shappee, marketing director of Big W Sales and team member of “Between a Walk and a Hard Spot,” participating in the challenge provided additional benefits beyond wellness and reduced insurance premiums. “We kept in close contact with each other, which was really great for our team just to build relationships in a different way,” she said. “And also connecting with other businesses in the area — that’s been a lot of fun for me.

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Central Valley Business Journal

January 2016

Credit unions expand to low-income areas By NORA HESTON TARTE Business Journal writer nhestontarte@cvbizjournal.com

MODESTO — Self-Help Federal Credit Union is scouting a location on Modesto’s southside, a region void of financial institutions. Vice President Joe Duran said he hopes the California-based community development credit union will close a deal on Crows Landing Road and open its doors in mid-2017. The decision to build in south Modesto, an area Duran described as “isolated,” was not made blindly. Duran said Self-Help’s partners, including South Modesto Partnerships, Emerging Latino Leaders and Congregations Building Community, plainly expressed the need for a credit union in the neighborhood. Local leaders he has engaged in the topic agreed. “The community is really going to continue to grow in a positive manner,” Duran said. The primary goal of the credit union is to provide economic opportunity for people who don’t have bank accounts or aren’t getting all the banking services they need, Duran said. He cited the slew of check cashing institutions that charge high fees for services as well as the lack of other options nearby.

WAYNE DENNING/CVBJ

Financial Center Credit Union customer service representative helps Frotilo Vables at the south Stockton location.

It is also a strategic move. “It seems that might be the best area…for us to move into,” he said. In Stockton, Financial Center Credit Union opened a new branch in a lowincome area at 2405 S. Airport Way. It was the first financial institution to open in that part of town. President and CEO Michael Duffy said the move has been positive for

the community and the credit union. In its first six months, the branch has opened 1,000 new accounts. Eighty percent of those were family members who qualified for membership at Financial Center. Duffy said, that like Self-Help Credit Union, Financial Center had a strategy for targeting Stockton’s southside. For example, it knew that in the two-

mile radius of the new location, Financial Center had 2,800 existing members who had been using other facilities. “When we go out to branch we specifically place them in areas that we know we have a certain level of business,” Duffy explained. The credit union has also hired eight new staff members, six of whom live in south Stockton. Self-Help plans to transfer its back office operations, including information technology, accounting and its call center, to this area if a deal is made. Self-Help offers a range of financial services and products, including checking and savings accounts, loans to help pay for the naturalization or deferred action application processes, and fresh-start loans. Individuals who do not have a relationship with a banking institution suffer many financial hardships, including paying higher rates of interest on auto loans, Duran said. “They’re really being charged rates and fees that are exorbitant,” Duran explained. He added that a relationship with a banking institution can help people break the habit of living paycheck to paycheck, assist them in establishing credit and create a pathway toward home ownership. Please see SELF-HELP Page 27

January 2016

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Best RV launches United Way fundraiser By SIM RISSO Business Journal writer srisso@cvbizjournal.com

TURLOCK — Best RV Center in Turlock is starting the New Year by giving back to the local community. Through the month of January, it will donate $100 from every recreation vehicle sale to United Way. “We like to be attached with our community and be able to stand out of the crowd,” said Jay Glasgow, parts manager for Best RV Center and organizer of the charity drive. Raising money through sales is something Best RV Center has done for years. Last year it partnered with United Way for the first time and generated $14,000 for the organization. Glasgow is hoping to match that total this year, but he thinks there’s a chance Best RV Center could top it. The business is No. 1 in the state in RV sales and No. 2 in the nation, and he mentioned that sales have picked up recently. The program is designed so whichever county in California the consumer resides in, that United Way branch will receive the donation. So if someone from Stanislaus County buys a recreational vehicle at Best RV Center during January, the Stanislaus County branch of United Way will get

Levies? Liens? Back Taxes?

the $100. “People may think that since we’re a worldwide organization, it just goes in some fund and might trickle down to the county,” said Jeanette Fontana, marketing and public relations coordinator for United Way of Stanislaus County. “But we support kids that are right in our county through local schools or partner agencies like Hospice or American Cancer Society, partner agencies that are right here at home. That’s what Best RV is helping to do. They’re a huge local business that gets to contribute to United Way helping our local families.” Last year, more than $9,000 of the money donated went to the Stanislaus County branch. A lot of the money supported United Way’s Graduation Coach program, which helps at-risk seventh- and eighth-grade students by formulating graduation plans with them and having graduation coaches on campus meeting with the kids. A food education program, which provides healthy food and cooking classes to elementary school families in need, is also expected to receive a boost, along with some of United Way’s partner organizations, such as Community Hospice, Center for Human Services and United Samaritans. Glasgow said the RV center chose to work with United Way because of its

PHILIP JOHNSON/CVBJ

United Way representatives will be on hand at Best RV Center each weekend in January to help organize the program and educate customers about United Way.

spirit of collaboration. “We just like how the United Way is,” said Glasgow. “They’re here every weekend. They work with us. It’s really smooth with them.” United Way will have representatives at Best RV Center each weekend during January to help organize the event and educate consumers on Unit-

ed Way’s programs. “It helps us to do outreach to everyone who comes into Best RV because we touch everybody that comes through the door,” said Fontana. “I don’t think we’re convincing them to buy an RV, but they definitely get a good feeling from being able to donate to a good cause.”

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Central Valley Business Journal

January 2016

EYE CARE PROVIDERS

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

Company Name Address

Zeiter Eye Medical Group, Inc. 255 E. Weber Avenue Stockton, CA 95202

Central Valley Eye Laser Medical Group, Inc. 36 W. Yokuts Avenue, #1 Stockton, CA 95207

Sylvan Eye Associates 1011 Sylvan Avenue, Ste. A Modesto, CA 95350

Delta Eye Medical Group, Inc. 1617 St. Marks Plaza, Ste. D Stockton, CA 95207

Heritage Eye Skin & Laser Center 445 W. Poplar Street Stockton, CA 95203 Brookside Optometric Group 3133 W. March Lane, Ste. 2020 Stockton, CA 95219

Modesto Eye Center 1741 Coffee Road Modesto, CA 95355

Tracy Optometry Group 36 W. 10th Street Tracy, CA 95376

Valley Optometric Group 1401 Sylvan Avenue Modesto, CA 95355

Turlock Eye Physicians 880 Delbon Avenue Turlock, CA 95382

Manteca Optometric 140 N. Fremont Avenue, Ste. A Manteca, CA 95336

Dennis R. Brewer, Inc. 991 E. Monte Vista Avenue Turlock, CA 95382

All Family Optometric Vision Care 1317 Oakdale Road Modesto, CA 95355

Vision Faire Optometry 4213 Dale Road, Ste. A-2 Modesto, CA 95356

Eye Care Associates Optometry 2087 Grand Canal Boulevard, Ste. 15 Stockton, CA 95207

Stanislaus Optometric Center, Inc. 4028 Dale Road, Ste. 102 Modesto, CA 95356

Downtown Optometry 319 E. Weber Street Stockton, CA 95202

Beckman Optometry 621 S. Ham Lane, Ste. C Lodi, CA 95242

Manteca Optometry 158 N. Maple Avenue Manteca, CA 95336 Midtown Optometry 1101 E. March Lane, Ste. O Stockton, CA 95210

Dr. David L. Gallagher Family Optometry 1101 Standiford Avenue, Ste. A-1 Modesto, CA 95368

Northern California Laser Center 1741 Coffee Road Modesto, CA 95355

Number of Total Number Ophthalmologists Local Phone Number of of Local & Services Offered Local Staff Offices Number of Web Address Optometrists

Top Local Executive

Year Est.

John H. Zeiter, M.D. (209) 466-5566 zeitereye.com

103

6 7

All medical and surgical diseases of the eye, LASIK surgery, cataract surgery, cosmetic surgery, eyeglasses and contact lenses

1962

Brandy Simpson, Clinical Manager (209) 952-3700 cvemg.com

3 2

LASIK surgery, cataract surgery, cosmetic surgery, eyeglasses and contact lenses

1974

Michael Martin, O.D., President (209) 575-2020 sylvaneyemodesto.com

2 4

Retina, cataract, diabetic care, as well as routine vision and contact lenses exams

2000

Alan Nakanishi, M.D (209) 478-1797 deltaeyemedicalgroup.com

5 3

Comprehensive eye care and surgery, optical LASIK surgery, cataract surgery, eyeglasses and contact lenses

1973

Jana Maynard (209) 465-5933 heritageye.com

1 2

LASIK surgery, cataract surgery, cosmetic surgery, eyeglasses and contact lenses

1985

Craig Hisaka, O.D. (209) 951-0820 brooksideoptometricgroup.com

13 1

Eye exams, contact lenses, vision therapy and LASIK

2008

Amin Ashrafzadeh, M.D. (209) 524-2020 modestoeyecenter.com

1 1

Medical and surgical specialist, routine eye care and optical. Provides LASIK surgery, cataract surgery, eyeglasses and contact lenses

2010

David Moline, O.D., & Brian Yee, O.D. (209) 835-7446 tracyopt.com

1 2

Complete eye exams, dry eye treatment, contact lens fittings and fashion frames

1984

Charles Daily, M.D. (209) 527-6640 visionsource-valleyoptometric.com

0 4

Eye examinations, glasses, contact lenses and LASIK

2004

Daniel Lee, M.D. (209) 634-2925 turlockeye.com

2 0

Opthamology

1979

0 4

Eye exams, contact lenses, eye surgery referral, glaucoma testing, contact supplies and designer eyeglasses/sunglasses

1971

0 3

Vision testing, diagnosis and treatment of ocular disease, contact lenses, cataract surgery and co-management for laser vision

1972

G. Barnard Wilson, O.D. (209) 524-7870 drgbwilson.com

0 1

Comprehensive vision examinations, contact lenses, refractive surgery consultants and comanagement of cataract surgery

1974

Nancy E. Shoji, O.D. (209) 545-3937 visionfaireoptometry.com

0 3

Eye exams for children and adults and contact lenses

1983

Mark Komure O.D./President (209) 477-0296 None

0 2

Eye exams, contact lenses, treatment of ocular diseases and co-management of laser vision correction

1978

Edward F. Nuccio, O.D. (209) 527-2020 stanopto.com

0 1

LASIK surgery, contact lenses, eye exams, geriatric care and general optometry

1988

David J. Benkle, O.D. (209) 465-5047 drbenkle.com

0 2

Contact lenses, pediatric vision care, optical, ocular disease, ocular trauma, low vision rehab, surgery co-management, laser vision correction and more

1982

Kathryn A. Beckman, O.D. (209) 367-1000 visionsource-beckmanoptometry.com

0 1

Comprehensive eye examinations, contact lenses, pediatric vision care, vision therapy and optical services

1997

Dr. Derron Lee, O.D. Dr. Leanne Lee, O.D. (209) 239-3504 (209) 957-8000 mantecaoptometry.com midtownoptometry.com

0 2

Eye exams, contact lenses, vision therapy and LASIK

2006

Dr. David L. Gallagher (209) 523-2601 visionsource-drgallagher.com

0 1

Complete eye exams, fitting of contact lenses and spectacle lens. Co-management of LASIK surgery and fashion eyewear. Most insurance accepted

1977

1 1

Most advanced form of LASIK eye surgery and cataract surgery which is performed in our on site surgery center. Also provides eyeglasses and contact lenses

2005

Fred Stellhorn, O.D./Owner (209) 823-3151 mantecaoptometric.com Dennis R. Brewer, O.D. (209) 634-8591 drbrewer.net visionsource-mvo.com

Amin Ashrafzadeh, M.D. (209) 549-2020 modestoeyecenter.com

January 2016

www.cvbizjournal.com

Central Valley Business Journal

Going underground

January 2016

Water management looks at the water we can’t see By KENT HOHLFELD Business Journal writer khohlfeld@cvbizjournal.com

California’s historic drought has forced the state to rely on underground water reserves to an extent unseen in decades. One of the biggest water issues facing the state is how to maintain and rebuild its groundwater supply. “After four years of drought, farmers are looking to gather up more water than ever,” said Jay R. Lund, director of the Center for Watershed Sciences at UC Davis. “People are going to be trying to refill aquifers with increased motivation due to the fourth year of drought.” This winter, those studying state water supplies hope that an expected El Niño condition in the Pacific ocean will bring a wet season for the state. Although it’s not expected to break the state’s historic water woes, it is hoped to bring some relief. “This is a normal season so far, and we are still coming into the wet season,” said Lund. “We just really need to have the water.” One of the biggest benefits of a wet season is the chance to help resupply underground water reserves. When surface water is scarce, farmers are forced to depend on well water, which depletes underground aquifers. UC Davis estimates that nearly 6.5 million acre feet of water has been pumped from underground sources this year. State agencies estimate that in some regions groundwater has accounted for up to 65 percent of the water supply this year, up from 40 percent in normal seasons. One of the challenges in identifying the extent to which underground reserves have been drained is the piecemeal nature of the state’s oversight of groundwater use. In the past, landowners were largely free to pump as much water as they wanted with little monitoring. San Joaquin County has been more active than some in monitoring its underground water supply since the 1970s. “I don’t want to project ours as a dire situation,” said Water Resources Coordinator for San Joaquin County Brandon Nakagawa. “During the last major drought from ‘88-’92 there was a lot of wells that were re-drilled and a major reinvestment in wells was made in the area.” He said that has given the county access to more water. It has also led to more depletion of the water basin. “In some parts of the basin, the levels are below 1992 levels,” he said. “Those who didn’t drill (deeper) may have a problem with access to groundwater.” In an effort to bring some continuity

to the state’s underground water regulatory and monitoring efforts, the California Legislature passed the Sustainable Groundwater Management Act in 2014. The rules, some of which began taking effect this year, require the state’s Department of Water Resources to identify “high” and “medium” priority basins, which then must establish local groundwater sustainability agencies and develop monitoring and sustainability plans. “It’s yet to be seen if it is being a positive or negative,” said Andy Christensen, general manager of the Woodbridge Irrigation District. “It depends on how the plan is managed.” The new state rules, which require each basin to achieve “groundwater sustainability” by 2040, say sustainability plans must be completed within five or seven years, depending on the priority of the basin. If deadlines aren’t met, the state water board can intervene and establish an interim plan. “We are in the state of overdraft of anywhere between 70,000 to 125,000 acre feet of water,” said Christensen. “An exact amount is hard to determine. There is an overdraft going on but not every area is in a state of overdraft. Our district here has been one of the best districts in the San Joaquin basin in terms of being sustainable. It hasn’t fallen by as much as some.” The worst of the problem appears to be in the southern parts of the Central Valley. In some areas, excessive pumping has become so bad that salts are beginning to contaminate the water and soil. The problem is exacerbated by a lack of rain which, in normal years, would wash the salts from the soil as well as recharge the aquifer. Fixing the problem can be as big an issue as identifying its magnitude. Normally aquifers are recharged through rain and snowmelt soaking through the soil and into the groundwater in a process called deep percolation. The problem is that process takes a long time. “Our industry’s recent partnership with UC Davis, Sustainable Conservation and Land IQ will explore the potential of using California Almond orchards for accelerated recharge of Central Valley’s underground aquifers,” said Richard Waycott, president and CEO of the Almond Board of California. “These efforts focus on leveraging a significant attribute of the California Almond industry — the land dedicated to growing almonds — to continue our efforts to do our part to realize a sustainable California water supply.” Usually those efforts have involved flooding idle fields. New techniques, however, are allowing fields that are in use to be flooded. “Research this winter will channel

excess winter flood water into almond orchards in several test sites including Merced, Stanislaus and Fresno counties,” said Waycott. Adding currently productive fields to recharge efforts could have a big impact on water supplies. “Farmland can be used to store that water cheaper than reservoirs,” said Daniel Mountjoy, director for resource stewardship at Sustainable Conservation. “This is getting back to the ways aquifers were recharged before we had dams and reservoirs that diverted flood waters.” Scientists from state universities and water districts are working to

determine which soils allow the most water to return to aquifers. Terranova Ranch, south of Fresno, has been a leader in underground recharge efforts. The ranch uses a combination of groundwater and water from the north fork of the King River. Don Cameron, general manager and vice president of Terranova Ranch, said the operation has seen the levels of its wells drop 2.5 feet per year since 1986. “Longterm, we know this is not sustainable,” he said. “We have been studying this for 20 years.” The company has partnered with the Kings River conservation district

January 2016

www.cvbizjournal.com

BUSINESS JOURNAL PHOTO

Electronic readings of the Sierra Nevada snowpack shows the snow water equivalent was 110 percent of normal for late December.

Snowpack well above average SACRAMENTO — The Department of Water Resources announced that electronic readings of the Sierra Nevada snowpack Dec. 28 showed its statewide water content 10.1 inches or 110 percent of the average for that day. In the central Sierra, the snow water equivalent was 12 inches, 121 percent of normal on Dec. 28, the highest of the three sections measured. The northern Sierra’s the snow water equivalent was 11 inches and 110 percent of normal. In the southern Sierra, the snow water equivalent was 6.8 inches and 90 percent of normal. The DWR also said it would conduct its first manual snow survey on Dec. 30 at Phillips Station off Highway 50 near Sierra-at-Tahoe Road. The state is hoping for a wet winter season this year. Warm temperatures and below-normal precipitation combined to create a historically low

snowpack last winter. On Jan. 1, 2015, the water content of the snowpack was 47 percent of that date’s statewide historical average. It continued to fall throughout the winter. By February, the snowpack was down to 23 percent of normal and 19 percent by March. By April 1 when the snowpack is usually at its peak, the water content was down to just 5 percent of normal, the lowest ever recorded. While historically low last winter, decreasing snowpack has been a trend for the state. In the last eight years, the winter snowpack has only been at or above normal twice. While this season’s snowpack is slightly above average for late December, drought managers say precipitation would have to be much greater than normal to have a significant effect on the state’s drought.

WORKSHOP ON GROUNDWATER REGULATIONS

BUSINESS JOURNAL PHOTO

to flood fields when they are idle and the King River has excess water. Their plan is to flood the fields in three phases, totaling more than 16,000 acres. At its height, the plan would add more than 1,000 acre feet of water to the fields, helping alleviate downstream flood risks and capture valuable water before if flows to the Pacific Ocean. “We are going to be doing this whenever the flood waters appear,” he said. “It would use 1,000 acre feet per day with a good chance to get that into the groundwater.” It is also hoped that programs such as those at Terranova Ranch will help

the water districts comply with the state’s new regulations on sustainable groundwater use. “I think this will fit well into the groundwater management,” said Cameron. “We just wanted to improve the groundwater here but this is a natural fit with the new rules from the state.” Like many programs around the state, it’s now a waiting game to see if the flood waters come. The last time excess water was available at Terranova Ranch was 2011. “It’s mostly talk right now,” said Lund. “People are talking because there isn’t a lot of water to use for recharge.”

California Department of Water Resources Senior Engineer Hong Lin and San Joaquin County Public Works Water Resources Coordinator Brian Nakagawa will provide an update on new groundwater regulations affecting wells and future development and the role of government agencies play in enforcing those regulations. Where: The Reserve at Spanos Park, 6301 W. Eight Mile Rd When: 11:15 a.m.-2 p.m., Jan. 21 Cost: $50.00 per person (includes program, networking and luncheon)

Central Valley Business Journal

January 2016

Business Journal Who’s Hiring? Central Valley’s jobless rate up in November CENTRAL VALLEY

296

Dignity Health

Stockton Unified School Dist.

Select Staffing

Employers

Lodi Unified

Kaiser Permanente St. Joseph Medical Center 0

CA State Univ. Sys.

Modesto City Schools

200

300

Gustine Unified

Travelcenters of America

29 20 20

Centerline 100

Online Ads

Employment Development Dept., Nov. 2015

ing a revised October rate of 8.4 percent. San Joaquin and Stanislaus counties both added jobs, with 6,200 total jobs coming to San Joaquin County and 6,000 new positions being filled in Stanislaus. In San Joaquin County, the biggest jump came in the leisure and hospitality industry with 2,200 positions being added in the sector. Another 1,600 jobs opened up in the government category.

Robert Half Int'l

Online Ads

STOCKTON — The Central Valley’s unemployment rate rose slightly in November with San Joaquin, Stanislaus and Merced counties each registering increases ranging from 0.4 percent to 1.9 percent. San Joaquin County reported the lowest unemployment rate at 8.6 percent, up from a revised 8.1 percent in October. Stanislaus County followed with an unemployment rate of 8.8 percent, follow-

Target Corporation

Foster Farms

Robert Half Int'l Ceres Unified School Dist

100

UC Merced

Kaiser Permanente

Manteca Unified School Dist.

Mercy Medical Center

Sutter Health

Centerline

Target Corporation

Merced Co. Office of Ed.

TruStaff

Dignity Health

118

E&J Gallo Winery

Robert Half International

MERCED COUNTY EMPLOYERS

134

Tenet Healthcare Corporation

108

Target Corporation

Employers

STANISLAUS COUNTY EMPLOYERS

Employers

SAN JOAQUIN COUNTY EMPLOYERS

150

Online Ads Employment Development Dept., Nov. 2015 SOURCE: California Development Department

Construction was the big driver in Stanislaus County, bringing in 1,000 new jobs followed by transportation at 900 jobs. Professional business services and leisure industries each added 800 jobs to the county’s payrolls. The jobs outlook in Merced wasn’t as bright. Merced County saw the biggest unemployment rate jump as its rate went to 10.9 percent from 9 percent one month earlier.

Merced took a hit in manufacturing, losing 800 jobs following a 1,200–job loss in October. The county also lost 400 professional and business services jobs. Overall the county dropped 300 jobs in November which followed losing 4,200 jobs in October. The overall statewide unemployment rate stood at 5.7 percent, down from 5.8 percent in October and the nationwide rate stood at 4.8 percent.

Sutter Tracy nurses approve new agreement TRACY — Registered nurses at the Tracy and Roseville Sutter hospitals approved new collective bargaining agreements. The new deal with the large Northern California health care company is the first union contract for the 200 RNs at the Sutter Tracy facility. The agreement includes a compensation system based on years of service, not supervisor discretion. All nurses will get pay increases of 20 to

25 percent over the next four years. The deal also calls for safe patient handling measures to assure the hospital provides adequate personnel training to reduce patient falls and nurse injuries, enforceable language to assure nurses can take meal and rest breaks without leaving patient care areas understaffed. It also includes language to assure management will meet with a California Nurses Association RN com-

mittee to address staffing concerns. “This is a historic day,” Sutter Tracy RN Victoria Lat said in a press release. “Nurses are very excited to vote on a contract that will create equity and allow them to safely advocate for their patients.” Over the last few weeks Sutter has come to agreements with nurses unions on contracts for workers at several Northern California Hospitals. On Dec. 21, nurses at Sutter

Auburn Faith, in the Sierra foothills, approved a new contract agreement. The California Nurses Association/ National Nurses United announced that RNs at Sutter Lakeside in Lake County reached a tentative settlement with hospital officials on Dec. 22.

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January 2016

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Massive tax package offers breaks, certainty STOCKTON — The new year brings new tax laws and extensions to existing laws. Some of the extensions were made permanent. In mid-December, Congress passed a package of $661 billion in tax breaks. Here are the changes that will have the biggest impact on business owners and employees: Bonus depreciation The package extends and expands depreciation incentives for businesses. The law reinstates bonus depreciation and higher Sec. 179 expensing levels for 2015 and the future. Depreciation helps businesses that buy new equipment cut their tax bill by allowing them to write off more of the cost of that equipment in the year it was purchased. The changes have benefits of particular interest to Central Valley growers, who used to have to wait to depreciate trees, for example, until they produced nuts. “The exciting development for people in our region, for the first time bonus depreciation is available for trees and vines (in the year) they are planted,”said Daryl Petrick, partner specializing in tax matters at Bowman and Company. However, the package also phases down bonus depreciation through 2019: • As of Jan. 1, 2015 through Dec. 31, 2017: 50 percent • As of Jan. 1, 2018 through Dec. 31, 2018: 40 percent • As of Jan. 1, 2019 through Dec. 31, 2019: 30 percent Research and development The two key expansions to the R&D

CVBJ

tax credit will begin in 2016. First, businesses with less than $50 million in gross receipts will now be able to claim the credit against their Alternative Minimum Tax. That will remove the single greatest barrier that prevented companies from claiming the credit in the past. Secondly, the bill includes a provision that opens the credit to startups, allowing businesses with gross receipts of less than $5 million a year to take the credit against their payroll taxes (capped at $250,000 per year) for up to five years. W2 deadline It won’t affect a business’s bottom line, but there is a housekeeping change business owners need to be aware of for next year. W2s and 1099s will need to be issued to the IRS by Jan. 31, rather than the end of February. The change is aimed at combating identity theft and fraudulent refunds. In all, Petrick said the new tax package benefits businesses. “We view this as a lot of good news for our clients,”he said. “This is a bunch of business-friendly tax provisions.” Petrick said now that Paul Ryan is speaker of the House and with the advent of a new president, businesses should watch for tax reform to take center stage. “We view that in 2017 that topic will be brought up again for substantial reforms in tax system,” he said. “There is concern when the new president is elected there will be a movement to rewrite the tax law in 2017.”

SELF-HELP Continued from Page 20

Working with a bank or credit union gives people a protected place to keep their money in impoverished areas where it’s not uncommon to see residents who store their money in mattresses, Duran said. Presence of new businesses in an impoverished area can also help stir economic growth. When one business succeeds, others follow suit. “(Self-Help is) really trying to be a catalyst for positive change and really trying to make a quality of life for residents in our community,” Duran said. Financial Center is different than Self-Help in that it isn’t open to the general public. To bank with Financial Center, interested parties must become members. Members come from employee groups, including San Joaquin County; associations, such as the bar association and medical associations; and relatives of members. In the Central Valley, Financial Center serves 32,000 people, according to Duffy. While the branch cannot serve everyone who walks in off of the street, there are a lot of members they can

serve, Duffy explained. In many cases, people are eligible and don’t realize it. The bond of family membership is really where growth is for the company. Ultimately Financial Center meets the financial needs of residents that were not being met prior. The company is also changing the idea that business can’t be done in south Stockton. “If you have products and services that are truly valued by the community, you will be rewarded,” he said. There are already rumors swirling about more properties being purchased on Airport Way, Duffy said. Financial Center even received a phone call from a company interested in an adjacent property. Financial Center invested $2 million to build a modern facility akin to a place people would want to visit socially. Duffy admitted that was probably $500,000-$1 million more than it would have spent to create an institution that looked more like the cinder block structures nearby. “It’s very different. It’s kind of banking meets Urban Outfitters, I guess,” he laughed.

0.60

% APY 1

12-month CD

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F&M Bank

APY

0.60%1

Citibank

0.15%

BBVA Compass

0.10%

Wells Fargo

0.10%

Bank of America

0.07%

Chase

0.05%

Based on rates posted on 10/14/15 from the above listed financial institutions.

Open online at fmbonline.com/apply or visit us at: STOCKTON LINCOLN CENTER 205 Lincoln Center • 209-475-1128 STOCKTON MAIN 4612 McGaw Street • 209-475-1128 1 To receive the advertised 0.60% Annual Percentage Yield (APY) open a Certificate of Deposit (CD) with New Funds (funds not currently on deposit with F&M Bank or funds that have been on deposit for less than 30 days). Requires a minimum opening deposit and balance of $5,000 and a maximum of $250,000. APY assumes interest does not remain on deposit. Interest to be paid either monthly, quarterly, or annually and at maturity (in branch) or annually at maturity (online). Early CD withdrawal penalties may apply and reduce earnings. Upon maturing, the 12-month CD will automatically renew for another 12-month term at the then current non promotional 12-month rate. For terms and conditions, account information, and a list of fees and charges that may apply, please refer to our CD Opening Disclosure and our Customer Agreement & Schedule of Charges, Books I & II. This APY is accurate as of 10/15/15 and is subject to change at any time without notice. ©2015 Farmers & Merchants Bank of Central California. All rights reserved. MSR 3673 10/15.

fmbonline.com

Member

Central Valley Business Journal

January 2016

INSURANCE: LIFE, HEALTH, PROPERTY & CASUALTY In San Joaquin, Stanislaus and Merced Counties. Ranked by Number of Brokers. Ties in Alphabetical Order.

Rank

Company Name Address

Number of Brokers Local Phone Number Web Address of Support Staff

Top Local Executive

Mychael Nguyen CLU, CLF,CLTC (209) 955-2400 stockton.nyloffices.com

New York Life Insurance 3255 W. March Lane, Ste. 300 Stockton, CA 95219

Winton-Ireland, Strom & Green Insurance Agency 627 E. Canal Drive Turlock, CA 95380

Dohrmann Insurance Agency 3415 Brookside Road Stockton, CA 95219

George & Greg Dohrmann (209) 478-1400 dohrins.com

TSM Insurance & Financial Services, Inc. 1317 Oakdale Road, Ste. 910 Modesto, CA 95355

Guy Miligi, Vice President (209) 524-6366 tsminsurance.com

Truex Insurance Agency 2291 W. March Lane, Ste. A-100 Stockton, CA 95207

Larry Lee (209) 477-1111 truexins.com

DiBuduo & DeFendis Insurance Agency, Inc. 1560 Cummins Drive, Ste. A Modesto, CA 95353

Matthew D. DeFendis, Principle (209) 578-0183 dibu.com

Daugherty Insurance Services 10100 Trinity Parkway, Ste. 300 Stockton, CA 95219

Scott Daugherty, President/CEO (209) 475-4400 daughertyinsuranceservices.com

Micheletti & Associates Insurance Services 515 Lyell Drive, Ste. 102 Modesto, CA 95356

Omega Pacific Insurance Solutions Inc. 445 W. Weber Avenue Stockton, CA 95203

Mike Ireland Sr., CEO (209) 667-0995 wintonireland.com

Robert Micheletti, CPCU, CIC, CRM, CRIS (209) 576-2808 michelettiins.com

120 15 25 125

12 10 10

Charles Doll (209) 451-9010 trustomega.com

Robert Perasso (209) 957-6800 usi.biz

Myles Harris, Owner (209) 472-8585 allstate.com/myles

USI of Northern California 3247 W. March Lane, Ste. 210 Stockton, CA 95207

Allstate Agency of Myles Harris 8807 Thornton Road, Ste. D Stockton, CA 95209

Larry Benson Insurance Agency, Inc. Nationwide Insurance 4545 Georgetown Place, Ste. A-1 Stockton, CA 95207

Larry Benson, President (209) 337-0241 larrybenson-insurance.com

Todd Garibaldi Insurance Agency, Inc. 641 S. Ham Lane Lodi, CA 95242

Todd Garibaldi, President (209) 334-3030 garibaldiins.com

Nationwide Insurance-Don Maffei 2540 Pacific Avenue, Ste. 1 Stockton, CA 95204

Don Maffei (209) 957-9433 maffeid@nationwide.com

Ritter Insurance Agency, Inc. 2880 N. Tracy Boulevard, Ste. 1 Tracy, CA 95376

Paul G. Ritter, Owner (209) 835-0776 ritteragency.com

Randolph & Klein Financial Solutions 1625 W. March Lane, Ste. 101 Stockton, CA 95207

Phyllis Klein an Norm Randolph (209) 956-1212 tamingyouroctopus.com

Big Valley Insurance Agency, Inc. 1550 Tracy Boulevard, Tracy, CA 95376 310 S. Crescent Avenue, Ste. B, Lodi, CA 95240

Jeff Kroll/State Farm Insurance 8855 Thornton Road, Ste. A Stockton, CA 95209

Zeiter Financial & Insurance Services 1111 J Street, M-109 Modesto, CA 95354

Arrizon Insurance Agency 884 W mani Street Ste. B Turlock, CA 95380

Bill Crawford (209) 835-5253 (209) 365-9600 bigvalleyinsurance.com

2 3 4

Jeff Kroll, Owner/Agent (209) 473-7104 statefarm.com

Michael E. Zeiter (209) 566-1366 zeiterfinancial.com

Anglea Arrizon (209) 632-5180 facebook.com/ArrizonInsurance

Percentage of Business Number of Companies Represented

Property/ Personal Commercial

Life Employee Benefits/ Other

50%

Investments, financial advisory services New York City, NY

1950

300+

80%

20%

Risk management, loss Turlock, CA

1913

130

70%

30%

Wellness and HR support Stockton, CA

1868

100+

70%

30%

Financial services Modesto, CA

1945

20+

80%

20%

Wide array of competitive personal and business insurance products; risk management Stockton, CA

2010

100+

98%

Risk management Fresno, CA

1960

150

90%

10%

5% is personal insurance Non-traditional risk management Stockton, CA

2008

85%

15%

Alternative Insurance, group captives and risk control Modesto, CA

1990

75%

25%

HR and Payroll services Modesto, CA

2011

100%

Retirement, personal risk, employee benefit, property and casualty Valhalla, NY

1997

95%

Voluntary benefits, health In. (Covered CA), workers comp. Northbrook, IL

2000

90%

Annuities, bonds and health Columbus, OH

2006

100+

90%

10%

10+

99%

Insurance and financial consulting Columbus, OH

2005

85%

15%

Wide array of personal and business insurance products Tracy, CA

1923

100%

Employee benefits, retirement planning and investments Stockton, CA

1985

1970

Other Services Offered Company Headquarters

Crop insurance, loss control Lodi, CA

Year Est. Locally

2002

15+

90%

10%

Insurance solutions for home, auto, life, health, business, farm and more Revenues of more than $900,000 Tracy, CA

80%

20%

Retirement solutions Northbrook, IL

2003

2001

2005

100+

100%

Life, disability and long-term care insurance, estate and financial planning, 401K and special needs planning Modesto, CA

60%

40%

Personal, commercial and registration services Turlock, CA

January 2016

www.cvbizjournal.com

BiLL crawford AAI; LUTCF, AFIS PRESIDENT

Full Line Insurance Agency • Auto • Home

• Life • Health

• Commercial • Annuities

Lodi | 310 South Crescent, Ste. B (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

January 2016

Business Journal Economy CENTRAL VALLEY

Migrants keep SJ County growing

750,000 687,690 694,060

700,346

705,640

717,155

728,509

640,000

• San Diego, 3,275,546 • Orange, 3,165,203 • Riverside, 2,331,040 531,796 537,957 530,000 527,673 523,453 515,888 518,676 • San Bernardino, 2,127,735 • Santa Clara, 1,915,407 • Alameda, 1,619,244 420,000 • Sacramento, 1,489,308 • Contra Costa, 1,116,385 • Fresno, 980,980 310,000 The 10 fastest growing counties from 2014-15 were: 267,571 270,156 264,652 262,755 256,730 259,905 • San Joaquin, 1.58 percent • Monterey, 1.52 percent 200,000 • Santa Clara, 1.38 percent 2010 2011 2012 2013 2014 2015 • Yolo, 1.37 percent Years • Alameda, 1.28 percent California Dept. of Finance • Contra Costa, 1.27 percent NET MIGRATION Net Migration • Fresno, 1.23 percent 6,915 • San Francisco, 1.22 percent 6,600 7,000 • Santa Barbara, 1.19 percent • Stanislaus, 1.16 percent The counties that saw population losses from 5,100 2014-15: • Lassen, -2.56 percent • Mono, -1.06 percent 3,200 2,497 • Amador, -0.39 percent • Del Norte, -0.32 percent 1,162 • Tuolumne, -0.32 percent 1,300 870 544 561 538 • Calaveras. -0.29 percent 318 328 204 127 2 • Nevada, -0.23 percent -679 • Plumas, -0.23 percent -600 -1,343 • Trinity, -.23 percent • Shasta, -0.21 percent 620 San Joaquin • Mendocino, -0.18 percent -2,500 • Mariposa, -0.17 percent 2011 2012 2013 2014 2015 620 San Joaquin Stanislaus • Siskiyou, -0.16 percent Years 501 • Modoc, -0.11 percent 620 Dept. of Finance San Joaquin Stanislaus Merced California • Sierra, -0.06 percent SOURCE: California Department of Finance Counties

Migrants

Population

Counties

STOCKTON — San Joaquin County was the fastest growing county in California last year, according to a report from the California Department of Finance. As of July 1, the county’s population was 728,509, up from 717,115, a 1.58 percent increase. The growth covers the period July 1, 2014 to July 1, 2015. Of the 11,354 increase, 4,754 came from “natural increase,” or the difference between births (10,183) and deaths (5,429). The rest of the county’s population increase came from net migration, the difference between people who moved into and out of the county. In San Joaquin County, that number was 6,600. California’s population grew by 346,000 people in that period to total 39.1 million, a growth rate of 0.9 percent. Migration is playing less of a role in California’s population growth — it accounted for just 24 percent of the state’s population growth over the past year. However, that’s not the case in San Joaquin County. Here, net migration accounted for 58 percent of the county’s population growth. Net migration includes all people moving into and out of the county — from within California as well as other countries. Smaller counties in remote areas continued to lose people or post smaller gains. Lassen County, for example, in northeastern California lost the most people: 815. Los Angeles County gained the most with nearly 69,000 added, bringing its total population to nearly 10.2 million. Elsewhere in our region, Stanislaus County’s population grew to 537.957, a 1.16 percent increase over 2014. Merced County’s population grew to 270,156, up 0.97 percent. The state’s 10 most populated counties were: • Los Angeles, 10,192,374

POPULATION Population

501

Counties

Cheap gas prices give drivers early Christmas gift WASHINGTON — Just in time for Christmas, gas prices continued to plunge below $2 per gallon nationally. The average price for lowest grade gas was $1.99 per gallon by Christmas Day, according to the AAA Daily Fuel Gauge Report. It was the first time national gas prices dropped below $2 since March 2009. AAA estimated that cheaper gas prices saved Americans more than $115 billion on gasoline in 2015. While more than two-thirds of U.S. stations were selling gas for less than

102 501

102

Stanislaus

Merced

$2 per gallon Based on normal seasonal 0 200 400 600 trends, 800 102 by the end of December, none of those stations were in Caligas prices could drop even further if fornia. The state’s the Number cost of of crude oilSales remains Closed 0 average price 200 was 400 600 800 weak. $2.82 per gallon as of Dec. 27, good Prices will likely rise in late winter by as much as 50 cents per gallon or more enough for highest in the 400 nationNumber — of Closed Sales 0 200 600 800 ahead of even Hawaii where gas was as refineries conduct maintenance in $2.69 per gallon. Number of Closed Sales advance of the busy summer driving On the last weekend of the year, loseason. That reduces fuel production cally, Modesto drivers were paying the and typically leads to higher gas prices. Despite the expected seasonal inleast at $2.48 for a gallon of regular unleaded, while drivers in the Stockcrease, the national average price of gas is not expected to rise above $3 per ton/Lodi area paid $2.52. Merced continued to have the highest local prices gallon in 2016 because oil should remain at $2.60 per gallon. abundant and relatively inexpensive.

BUSINESS JOURNAL PHOTO

Nation’s economy slows but still growing WASHINGTON — The U.S. economy grew at an estimated 2 percent according to the Commerce Department’s latest GDP estimate, released Dec. 22. Strong consumer and business spending helped offset efforts by companies to reduce an inventory glut. Consumer spending, which accounts for more than two-thirds of U.S. economic activity, grew at a 3 percent rate in the third quarter as previously estimated. Spending was

supported by a strong labor market and rising home values. Savings were near a three-year high, and low inflation also helped to underpin consumption. Business spending on equipment was even better, pegged at 9.9, up from 9.5 in November. Much of that growth was attributed to government and construction spending. The new GDP numbers were down slightly from the 2.1 percent estimate

in November and well down from the 3.9 percent paced in April-June. Growth still remained around the economy’s long-term potential. Despite the slowing, economists saw the numbers as a validation of the Fed’s decision to raise interest rates by 0.25 percent in December. Many also believe the numbers could pave the way for more rate hikes in the future. The National Association of Real-

tors also announced that home resales took a 10.5 percent plunge in November. Existing home sales tumbled to an annual rate of 4.76 million units, the lowest level since April 2014. Some of that may be attributed to new mortgage disclosure rules had caused delays in closing contracts. The association reported that new home starts were robust last month and that homebuilder sentiment was bullish.

January 2016

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Central Valley Business Journal

January 2016

HEALTH AND FITNESS CLUBS

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

Company Name Address In-Shape Health Clubs

Stockton locations 1074 E. Bianchi Road 7920 Kelley Drive Stockton 2303 W. March Lane 9545 Embarcadero Drive 6 S. El Dorado Street

Modesto locations

1234 McHenry Avenue 1533 Oakdale Road 2245 Floyd Avenue 2700 McHenry Avenue 1800 Prescott Road 3900 Pelandale Avenue

Top Local Executive No. of Local Phone Employees Web Address Rob Farrens VP of Marketing/Sales (209) 472-2231 inshapeclubs.com (209) 412-2100 (209) 472-2105 (209) 472-2111 (209) 472-2190 (209) 549-0200 (209) 579-3200 (209) 551-1400 (209) 338-5476 (209) 521-5900 (209) 552-7590

175

Club Hours

Hours vary by club Please call location or see website

429 W. Lockeford Street Lodi, CA 95240

Twin Arbors Racquetball Club 1900 S. Hutchins Street Lodi, CA 95240

Dennis Kaufman, GM (209) 334-6224 sparetimeclubs.com

170

Twin Arbors Tennis Club

2040 Cochran Road Lodi, CA 95242

Fitness Evolution 3

1275 E. F Street, Ste. 1, Oakdale 2210 Patterson Road, Riverbank 4120 Dale Road, Ste. G, Modesto 1822 E. Hammer Lane, Stockton 4950 Claremont Avenue, Stockton

Planet Fitness 4

1175 W. March Lane, Stockton 2401 E. Orangeburge Avenue Ste. 400, Modesto 2045 W. Briggsmore Avenue Ste. B-14, Modesto

Modesto Court Room Fitness 2012 McHenry Avenue Modesto, CA 95350

24 Hour Fitness 6

3137 W. Benjamin Holt Drive Stockton, CA 95219 1090 N. Main Street Manteca, CA 95336

Brenda Athletic Club, Turlock Sport 201 Tampa Drive Turlock, CA 95382

Fitness System Lodi 512 N. Cherokee Lane Lodi, CA 95240

World Gym

2340 East Street Tracy, CA 95376

American Martial Arts Academy

6360 Pacific Avenue Stockton, CA 95207

840 W. Benjamin Holt Drive Stockton, CA 95203

Ben Mackie Fitness

The Wellness Connection Fitness Club 3400 Wagner Heights Road Stockton, CA 95209

Pure Form PFT

4533 Quail Lakes Drive, Stockton, CA 95207 39 S. Cluff Avenue, Lodi, CA 95240 2800 Auto Plaza Drive Ste. 160, Tracy, CA 95304

Combine Fitness

1419 Fremont Street Stockton, CA 95203

Bikram Yoga 15

1110 W. Kettleman Lane, Ste. 46 Lodi, CA 95240

Boom Health Club 2341 Pacific Avenue Stockton, CA 95204

Jonathan Wall, Manager (209) 848-0348 (209) 869-0348 (209) 545-9055 (209) 474-0348 (209) 473-4880 goldsgym.com

Cardio theater, pool, weight machines, free weights, treadmill, stairmaster, elliptical, jacuzzi, sauna, child care available. Group classes include cycling, Zumba, pilates, yoga, kickboxing, weight-lifting, boot camp, aquatic classes, dance rhythms, kid’s classes, resistance training, sports conditioning and Silver Sneakers Also available: Turlock, Tracy, Lodi, Manteca and more Stockton and Modesto locations For more locations see website

Fitness Works

Amenities

125

Mon. - Fri. 4 a.m. - midnight Sat. - Sun. 6 a.m. - 9 p.m. --4:00 a.m. - 12:00 p.m. --Mon. - Fri. 8 a.m. - 9 p.m. Sat. - Sun. 8 a.m. - 8 p.m.

Hours vary by club Please call location or see website

Pool, weights, gymnasium, kids club, massage, personal training, group exercise classes including bootcamp, Zumba, pilates, yoga and cycling classes --State of the art fitness facilities (cardiovascular, weight machines, free weights, group exercises studios, cycling), tennis, racquetball, pools, spas, steams, saunas and kid’s club --Pool, tennis courts, fitness center, playgrounds, barbecue and picnic area Cardio cinema, GGX dance, spin room, personal training, tanning, hydro massage and full health club with over 100 pieces of Cardio equipment See web page for more locations and information

Brian Cassagio Stan McDowell (209) 477-7800 (209) 572-2921 (209) 341-2500 planetfitness.com

7 days a week 24 hours

Sheri Walker, Manager (209) 577-1060 modestocourtroom.net

Mon. - Thurs. 4:30 a.m. - 11 p.m. Fri. 4:30 a.m. - 10 p.m. Sat. 7 a.m. - 8 p.m. Sun. 7 a.m. - 6 p.m.

Over 100 Cardio pieces per facility, 30 minute circuit, 12 minute ABS, lockers, tanning, hydromassage and massage chairs Memberships can allow use of 900 fitness facilities nationally Philosophy of a Judgement Free Zone Planet of Triumphs, share success stories online See web page for more locations Tai Chi, Zumba, racquetball, yoga, tanning, pool and pilates

Edgar-Ext 40, Club Mgr. (209) 951-5999 Justin-Ext 40. Club Mgr. (209) 825-4141 24hourfitness.com

7 days a week 24 hrs

Cardio equipment, free weights, basketball court, indoor lap pool, kids club, pro shop, sauna, steam room and whirlpool, and group classes including Ujam, Zumba, pilates, yoga, step, turbo kickboxing, and cycling See web page for more locations

Thomas Brenda (209) 668-3838 brendaathletics.com

Mon. - Thurs: 4 a.m. -11 p.m. Fri. 4 a.m. - 10 p.m. Sat. 6 a.m. -10 p.m. Sun. 8 a.m.- 8 p.m.

Spinning, Zumba, pilates, yoga, kickboxing, weight-lifting, boot camp, tennis lessons, camps, youth fitness, personal training, pool, weight machines, treadmill, stairmaster and a jacuzzi

Sean Covell (209) 366-2800 fitlodi.com

7 days a week 24 hours

Personal training, weight machines, free weights, stairmaster, elliptical, sauna, spinning, Zumba, yoga, kickboxing, hip-hop boot camps, ABS, cross-training, boxing, and kinetic ropes Basketball court, tanning, massage therapy and towel service

Mon. - Fri. 4:30 a.m. - 11:30 p.m. Sat. 7 a.m. - 9 p.m. Sun. 8 a.m. - 6 p.m.

Boot camp, Cardio equipment, free-weights & machines, group exercise classes, group training, kid’s club, locker rooms, martial arts, massage, nutrition/weight loss, outdoor training area, personal training, physical therapy, pilates, pro shop, showers, supplements, tanning and yoga

5:30 a.m. - 8:00 p.m.

Mon. - Thurs. 6 a.m. - 8 p.m. Fri. 6 a.m. - 2 p.m. Sat. 7 a.m. - 2 p.m.

Daily 6:30 a.m. - 7 p.m.

Carl Hultgren, Owner (209) 403-2348 pureformpft.com

See website for class schedule

Private, semi-private and group personal fitness training

(209) 463-2326 combine-fitness.com

See website for class schedule

Personal training, group classes and Zumba

Helena Monica, Owner (209) 948-9642 (209) 368-9642 bikramyogastockton.com

7 days a week 5:30 a.m. - 9:15 p.m.

Carri Giannecchini, GM (209) 639-4963 facebook.com/ boomhealthclub.com

Mon. - Fri. 7 a.m. - 6:30 p.m. Sat. 8:30 a.m. - 1:00 p.m.

Kent White, Owner (209) 836-3488 worldgym.com/tracy Jeanne Lenz/Chris Ost (209) 952-4000 stocktonkarate.com Ben Mackie, Owner Jillian Barlet, Manager (209) 955-0360 benmackiefitness.com Nanci Shaddy (209) 956-3470 oconnorwoods.org

Group exercise classes: kickboxing, bootcamp, Krav Maga Martial Arts for children and adults. TRX cage fitness. Personal training and kettle bells Personal training, group classes, complete bathrooms and showers, towel service and complimentary water Aquatic programs, strength training, balance training, toning classes, Tai Chi, indoor swimming pool and jacuzzi All comprehensive to the senior adult

Ninety minute yoga series performed in a heated room. The series is a sequence and consists of 26 postures and two breathing exercises Yoga and a variety of weight loss activities

January 2016

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14 Years and Counting! For the 14th consecutive year, Memorial Medical Center has been named a Consumer Choice Award winner! Youâ&#x20AC;&#x2122;ve said we are Stanislaus County residentsâ&#x20AC;&#x2122; Most Preferred Hospital in overall quality and image for 2015, based on a composite score of four categories: best overall quality, best image/reputation, best doctors and best nurses. Knowing that our work makes a difference strengthens our resolve to continue to provide safe, quality, affordable care to everyone seeking our help.

memorialmedicalcenter.org

Central Valley Business Journal

Business Journal Real Estate Central Valley housing slowing but still hot Home Sales for November 2015 MEDIAN PRICES

AVERAGE DAYS ON MARKET

San Joaquin

620 501

San Joaquin

100,000 San

338

San Joaquin

Stanislaus

230,000

6200

399

Counties Counties

247,000

CLOSED SALES

Counties Counties

290,000

Stanislaus

Merced

San Joaquin Joaquin200,000 Stanislaus 300,000

Median Price

Merced

Ave. Days on Market

Stanislaus Metrolist, Merced Nov. 2015

Stanislaus NATICK, Mass. — The StocktonLodi metro area is expected to be Merced among the top 10 highest appreciating housing markets in 2016,800 according 400 600 to Weiss Analytics. The company provides home price indexing, forecastf Closed Sales800 600

January 2016

CENTRAL VALLEY

Metrolist, Nov. 2015

ing and analyses in the United States. Weiss Analytics expects 89.1 percent of homes in the Stockton-Lodi area to gain in value by October 2016. That is good enough for the fifth highest percentage in the country.

100

200

300

400

Homes Sold Metrolist, Nov. 2015SOURCE: MetroList

It is down from the 91.7 percent of houses that gained value in Dec. 2014, which ranked Stockton-Lodi third for home appreciation in the country. In Modesto, 81.3 percent of homes gained value in Dec. 2015, which was good enough to rank seventh in the nation. That was down from a high of 98 percent of homes gaining value in 2014. Modesto isn’t expected to rank in the top 10 in 2016, according to Weiss Analytics’s forecast. The slowing trend isn’t limited to the Central Valley. Nationally, the company expects 51.3 percent of homes to gain value, down 12 percent from this year.

The number of cash sales have also slowed nationwide, according to CoreLogic, a company that tracks the real estate industry. Cash sales accounted for 32.5 percent of home values, down 3.4 percent from a year ago. Cash sales generally hit their highest level in September due to seasonality in the housing market. Nationally cash sales peaked at 46.6 percent in 2011 during the housing crash. Prior to the crash, cash sales accounted for about 25 percent of the market. If the cash sales share continues to fall at the current rate, the share should hit 25 percent by mid2017.

SACRAMENTO — Assessed property values in San Joaquin and Stanislaus counties increased by 6.3 percent for the 2015-16 tax year over 2014-15, according to California State Board of Equalization Vice Chair George Runner. Assessed values for county-assessed property jumped 6.4 percent while state-assessed property values went up 4.9 percent. Assessed property values in the two counties are 2.3 percent higher than they were in 2008-09 when values statewide hit their prior peak. For tax purposes, county assessors set values of each home, as well as other residential and commercial property as of Jan. 1 of each year. The BOE is responsible for assessing properties such as privately owned public utilities and railroads. “Property values throughout California continue to rise,” said Runner

in a press release. “In some areas of the state we saw more growth than others, but overall this is an encouraging sign for our economy.” It is the fifth consecutive year that the value of California’s county and state-assessed properties has increased. The jump has been fueled by the recovery in the state’s housing market. Market values of properties, statewide, rose $289.9 billion during the last tax year, a 5.9 percent increase. Values grew in both coastal and inland counties. While the 15 coastal counties saw a 6 percent increase, the state’s 43 inland counties value grew at 5.8 percent. Fifty-six counties posted year-toyear increases in assessed value, most of those increases above 2 percent. Two counties experienced a year-toyear decline in value and 33 counties grew in excess of 5 percent.

Assessed property values keep rising

January 2016

www.cvbizjournal.com

Approach off-MLS property listings with caution Whether you plan to buy or sell a home in 2016, you can expect to hear the terms “pocket listing”or “off-MLS listing” bantered about. Those are properties that are for sale but not posted on the Multiple Listing Service. In most offMLS cases, the seller is choosing to market the property more privately. In other cases, agents are recommending an Michael Blower off-MLS strategy 2015 President, because they Central Valley believe they can Assoc. of Realtors can secure a buyer and top selling price through their networks. Pocket listings are becoming less of an insider’s game, and with inventory of available properties still an issue for interested buyers, data shows it pays for both buyers and sellers to understand the pros and cons of this industry practice. What are the advantages of listing a home off the MLS? Sellers of highend properties, high-profile individuals and the elderly are typically the

Bringing it home

ones who favor the privacy afforded by off-MLS listing strategies. The property is only shown to screened, qualified buyers and the sale of a home is kept private. Other sellers simply want to avoid being inconvenienced by a parade of “lookers” who may not actually be qualified buyers. For buyers, pocket listings may mean reduced competition on a property. With inventories still tight in many areas, it may mean a bonanza for those frustrated with losing bidding wars. At first glance off-MLS listings may seem like an acceptable strategy, but the approach can mask very real financial disadvantages. OffMLS property marketing by nature restricts the listing’s exposure. A broker or agent shows the listing to a select group of other agents or private listing sites, hoping there is a qualified, interested buyer for the property. With less exposure, the potential for finding the right buyer is diminished. Moreover, there are typically fewer offers, and the value of those offers may be less than what other buyers might generate. The actual numbers are startling: across several California counties, in 2015, properties listed on the MLS on average sold for nearly 30 percent more than those

listed off-MLS. Total volume of sales for homes listed on the MLS averaged nearly four times the number sold off-MLS. Statistics aside, there are noteworthy concerns about off-MLS listing practices. Brokers or agents may push a seller to list his property in this manner because they already have a buyer that they represent who is looking for a home, and they can orchestrate a quick sale. While the prospect of a quick sale can be enticing, remember that it means your property may not command the same offer price as if it were broadly exposed on the MLS. On the flip side, if you’re the buyer, how confident would you be in the price your agent is suggesting you offer? Brokers and agents may offer to charge less commission if you agree to list your property off the MLS, but commissions are always negotiable. Before you get too tempted by the promise of paying a lower commission, make sure it won’t be to the detriment of your sales price. State law does not require agents to list properties on the MLS, nor does it prohibit brokers from earning a commission from both the seller and buyer in a real estate transaction. It does, however require “informed consent.” In fact, there is

a section in the California Association of Realtors residential listing agreement emphasizing the benefits of listing on the MLS and warning about opting out. Real estate professionals have a fiduciary responsibility to serve the best interests of their clients. The agent or broker must seek out and present all offers to sellers, and identify all possible listings that meet a buyer’s criteria. In fact, California law states that listing agents must use the “utmost care, integrity, honesty, and loyalty” when dealing with their seller and they cannot use their position for individual advantage. At the end of the day, the decision to list off-MLS is up to the seller. OffMLS listing practices may drastically reduce exposure to the full pool of potential buyers and discourage multiple offers, which could dramatically reduce your chance to get the best price for your property. Selling a home is a big deal. Even if you have a strong real estate professional at your side, it’s important to know the right questions to ask at every step of the process. – Michael Blower is president of the Central Valley Association of Realtors and an agent with Grupe Real Estate. You can reach him at mblower@gogrupe.com.

INSTITUTE FOR FAMILY BUSINESS

Are you a part of a Family Business? Be our guest for our next Family Business Program

The Rise of a Texas Patriarch – The Fall of a Family Business Family conflicts brought on by a lack of succession planning is the main reason most family-owned businesses don’t make it to the next generation. Doug Box will share his story of growing up on the original South Fork Ranch (the house used in the original Dallas TV show). He will discuss how conflict can have a staggering impact on family relationships and the business. Key take aways from this presentation: • Be careful who you take advice from, as they may not be aligned with your values. • Siblings are the longest and most important relationships in life; don’t mess them up. • Asking a business owner to give up power is difficult when he/she feels like power is all they have. • Tearing your family apart over money doesn’t create true wealth.

January 21, 2016 from 8:00-10:30 AM on the University of the Pacific campus. This program is for members of a family businesses.

RESERVE YOUR SPACE TODAY! Call 209.946.2956 or email ifb@pacific.edu Visit us on the web: www.Pacific.edu/IFB

Central Valley Business Journal

January 2016

TAX PREPARATION FIRMS

In San Joaquin, Stanislaus and Merced Counties. Firms are Ranked by Number of Employees.Ties are Listed by Total Returns Name Address 1

Grimbleby Coleman CPAâ&#x20AC;&#x2122;s Inc. 200 W. Roseburg Avenue Modesto, CA 95350

Bowman & Company, LLP 10100 Trinity Parkway, Ste. 310 Stockton, CA 95219

Kemper CPA Group, LLP 3031 W. March Lane, Ste. 133 Stockton, CA 95219

Iacopi, Lenz & Company 3031 W. March Lane, Ste. 300-E Stockton, CA 95219

DeGregori, Gormsen & Ringer, LLP 1401 N. Hunter Street Stockton, CA 95202

Bill Pollard Jr., CPA 79 E. 11th Street Tracy, CA 95376 2575 Grand Canal Blvd., Ste. 300 Stockton, CA 95207

Top Executive

Total Number Returns Electronic of Local Primary Services Provided Phone Filed Filings for Employees Industry or Specializations for 2014 and offices Web Address 2014

Clive Grimbleby, CPA/MBA (209) 527-4220 gccpas.net

Year Est.

2,130

1,000

Tax planning, business advisory, core accounting, assurance Ag, construction, EBP audit, estates and trusts

1973

Individual, partnerships, corporations, limited liability companies, trusts, estates

1949

Lammert Van Laar, Partner (209) 473-2001 kempercpa.com

3,930

3,580

Accounting, auditing, tax, business valuation and litigation support services, payroll, bookkeeping Ag, trucking, wholesale, mfg. and non-profit

1958

John Iacopi & Susan Lenz (209) 957-3691 iacopi.com

3,500

3,350

Tax preparation, planning, audits, reviews, estate, business valuations, Quickbooks and litigation support Retail, manufacturing, agriculture and professionals

1978

Income tax research and return preparation for individuals, businesses, trusts and estates Estate planning, accounting write-up services, business valuations and accounting consultations

1974

Tax preparation, IRS audit representation, IRS collections, bookkeeping, payroll

1990

Tax, audits, accounting, payroll Fraud research and accounting

2010

Daniel Phelps (209) 473-1040 cpabowman.com

5 offices

John H. DeGregori, Partner (209) 944-0740 dgr-cpas.com

1,871

1,851

Bill Pollard Jr., Owner Kimberley Washer, EA, CAA (209) 832-5110 billpollardcpa.com

6,114

6,087

870

790

15 2 offices

17 2 offices

Patenieks, Bucheli & Falasco, LLP 1301 L Street Modesto, CA 95354

Eileen Pastenieks (209) 529-5515 pbfcpa.com

Schwartz, Giannini, Lantsberger & Adamson, CPAs 4578 Feather River Drive, Ste. D Stockton, CA 95219

Tim Schwartz (209) 474-1084 sfgac.com

1,693

1,466

Tax preparation for individuals, business, fiduciaries, accounting and auditing services General business, health care, real estate, non-profit

1989

All About Numbers 4512 Feather River Drive, Ste. G Stockton, CA 95219

Laura Strombom (209) 955-2244 allaboutnumbers

2,500

10-15

Tax preparation, bookkeeping and payroll Small business, day cares, truckers, law enforcement and clergy

1985

Blomberg & Griffin, A.C. 1013 N. California Street Stockton, CA 95202

John E. Blomberg, President (209) 466-3894 none

2,328

2,164

Tax, audit and accounting services

1981

Donna Hammel an Jane Kalfsbeek (209) 235-1040 kalfsbeek.com

940

830

Tax preparation and planning, accounting services and Consulting Small business, agriculture, medical offices

1983

Karen De Vaney, Owner (209) 524-4345 devaneybusiness.net

997

981

Tax preparation, payroll and accounting

1975

Howard Priest, CPA, CFP (209) 544-7090 priestamistadi.com

970

950

Tax preparation, financial planning and audit services Bookkeeping, payroll and Quickbooks support

1974

Steve Dougherty, CPA/MS-Tax (209) 476-1111 doughertycpas.com

350

320

Tax preparation, tax planning,Quickbooks training and service Professional services, real estate and construction

1978

640

Kalfsbeek & Company, Accountancy Corp 4529 Quail Lakes Drive, Ste. C Stockton, CA 95209 De Vaney Business Services 1050 N. Carpenter Road, Ste. I Modesto, CA 95351

Priest Amistadi CPAâ&#x20AC;&#x2122;s 1021 14th Street, Ste. 2 Modesto, CA 95354

Dougherty CPAs, Inc. 3031 W. March Lane, Ste. 210 Stockton, CA 95219

Wardell & Rall, Accountancy Corporation 3031 W. March Lane, Ste. 320-E Stockton, CA 95219

Michael M. Rall (209) 952-5392 wardellrall.com

648

Richesin Accountancy Corporation 7510 Shoreline Drive, Ste. B-1 Stockton, CA 95219

Chuck Richesin (209) 477-4834 none

490

470

Accounting and tax services Estate and wealth management

1983

Edward J. Schneider Jr., CPA 4655 Quail Lakes Drive Stockton, CA 95207

Edward J. Schneider, Jr. (209) 952-4411 ejschneider.com

320

318

Tax preparation, Quickbooks book keeping, Quickbooks and payroll

1984

Rea & Associates, LLP 1937 Coffee Road Modesto, CA 95355

Walter T. Rea Jr., CPA (209) 521-2727 reaassociates.com

800

Individual, partnership and corporate tax, LLC,LLP tax prep, payroll, accounting and consulting Small business, start ups and agriculture

1986

Warmerdam DPA Group 1500 Standiford Avenue Modesto, CA 95350

(209) 579-0306 warmerdamcpas.com

630

410

Accounting and Tax preparation services

1992

Gary L. Woehl 3439 Brookside Road, Ste. 201 Stockton, CA 95219

Gary L. Woehl, CPA (209) 951-9999 facebook.com/pages/Gary-L-Woehl-Cpa

275

Tax preparation, auditing and services

1989

Accounting and tax services, tax planning and business planning

1990

Farming, real estate and restaurants

4 2 offices

January 2016

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Voted Best of San Joaquin 2015 “Look to Iacopi, Lenz & Company for your business and personal finance matters - we are here to help”

John T. Iacopi, CPA • Susan H. Lenz, CPA • Michael S. Butler, CPA • Michael D. Luis, CPA • James J. Acosta, CPA • Paula M. Frago, CPA • James H. LaForest, CPA • Constance D. Logan, CPA, Esq. • Tami K. Horita Louie, CPA • Louis B. Machado, CPA • Dina P. Marasigan, CPA • Kathy L. Morris-Marr, CPA • Kathleen M. Solari, CPA • Revo Somersille, CPA • Sunny Y. Williams, CPA • Amber E. Hibbs Bell, CPA • Shelley Crivello, E.A. • Patricia Melton, E.A.

This resourceful and innovative accounting firm provides comprehensive services in a timely manner to clients in a wide range of industries. Since 1978 it has remained dedicated to delivering the highest quality, personal service to its clients, as well as giving back to its community.

• Tax Planning & Preparation • Accounting & Auditing Services • Business Consulting • Business Acquisitions & Sales • Business Valuation Services

• Litigation Support Services • Marital Dissolution Accounting • Quickbooks Support • Estate Planning • Estate and Trust Tax Preparation

3031 West March Lane • Suite 300 - E • Stockton, CA Phone: (209) 957-3691 • Fax (209) 957-0841 • www.iacopi.com

Central Valley Business Journal

January 2016

How listening leads to good customer service The late psychiatrist M. Scott Peck called listening “the work of attention.” In his 1978 book “The Road Less Traveled” he wrote, “Listening well is an exercise of attention and by necessity hard work. It is because they do not realize this or because they are not willing to do the work that most people do not listen well.” When we are John Parker not willing to Professional work at attenDevelopment tiveness and Adventures listening, we may fall prey to our own methods of non- and fake-listening. Peck helps us see our five approaches to doing this with children. Here is a summary: 1. No talk rule. “Children are to be seen and not heard.” At home or in the classroom talking and listening may have been curtailed as a practical way to get on with work and get things done. 2. Talking allowed without listening. The child is talking away and no one is listening or even pretending to. 3. Pretend listening. Peck wrote, “We make ‘uh-huh’ or ‘that’s nice’ noises at more or less appropriate times in response to the monologue.”

At Your Service

Similarly, as adults we’ve experienced the customer service person who’s got other things on his mind rather than focusing on helping us. We quickly sense we are creating an imposition or inconvenience for them. 4. Selective listening. Peck said this is a higher form of pretend listening. We actually try to occasionally jump in with what the person’s saying in an effort to let them know we care. This comes from our erroneous belief in the value of multi-tasking. We think we are working better if we are doing two or more things at once. But this is not true. Neuroscientist Sandra Chapman wrote in Forbes magazine, “The truth is, your brain is not designed to do more than one thing at a time. It literally cannot achieve this, except in very rare circumstances. Instead, it toggles back and forth from one task to the next.” 5. Active listening. Peck said this is to “truly listen…to give your full and complete attention, weighing each word and understanding each sentence.” In “Seven Habits of Highly Effective People,” Steven R. Covey wrote, “Seek first to understand and then to be understood.” Then he said, “Communication is the most important skill in life. You spend years learning how to read and write, and years learning how to speak. But what about listening? What training have you had that enables you to listen so you really,

deeply understand another human being? Probably none, right?” Here are the five elements for active listening. This list is adapted from MindTools.com. Pay attention Put aside distracting thoughts. Don’t listen for ammunition and for preparing a rebuttal. Avoid all external distractions. “Listen” to the speaker’s body language. Show that you’re listening Use your own body language and gestures to convey your attention. Nod occasionally. Smile and use other facial expressions. Note your posture and make sure it is open and inviting. Encourage the speaker to continue with small verbal comments like yes, and uh huh. Be politely interactive Reflect what has been said by paraphrasing and summarizing occasionally with phrases such as, “What I’m hearing is,” and “Sounds like you are saying…” Or, by clarifying with, “What do you mean when you say?” and, “Is this what you mean?” Defer judgment Interrupting is a waste of time. It frustrates the speaker and limits full understanding of the message. Allow the speaker to finish each point before asking questions. Respond appropriately Avoid arguing and getting defensive. Active listening is a model for respect and understanding. You are gaining information and perspective. You add

BUSINESS JOURNAL PHOTO

nothing by attacking the speaker or otherwise putting them down. Be candid, open, and honest in your response. Assert your opinions respectfully. Treat the other person in a way that you think he or she would want to be treated. In customer service and all relationships, it pays to pay attention. Let’s invest ourselves in attentiveness. Otherwise we’ll also pay, instead of getting paid. “Say, ‘Hey!’” for excellent customer service! – 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.

Three steps to build a strong family business Over the next several months I plan to focus my column solely on family businesses. Family-owned or controlled businesses account for more than 80 percent of all U.S. businesses. The net of all jobs created in the United States come from family firms. Yet, roughly 70 percent won’t make it to the next generation. The biggest challenges that Peter Johnson these businesses Pacific - Eberhardt face are rarely School of Business addressed. Even many of the top business schools fail to cover these topics when educating their students. I’ve had the pleasure of working with many family businesses over the years. Watching siblings working together, teaching each other, building on a legacy that their parents or grandparents started is a wonderful thing. On the other hand, serving as an expert witness as a son defended

Clear Vision

himself from a lawsuit brought on by his father is a painful experience to observe. I watched a father and son who had worked together to build a very successful business tear down not only the business but the relationships of everyone in the family. I’ve even seen parents keep grandparents away from their grandchildren as a tool of punishment. No family can completely eliminate the challenges of working together day in and day out in the family business. To help ensure that your family business has a healthy and happy 2016 you need to communicate honestly, plan for succession and spend time developing yourself so you can work on the business rather than in the business. First, communicate honestly. Almost every challenge I see could be eliminated or greatly reduced through better communication. Having clear and open communication can be scary, difficult and messy. Often we don’t want to hurt someone’s feelings (especially a loved one) so we ignore issues and hope they get better. They won’t. Address challenges head on. It may be difficult at the time, but in the end it will make life better for everyone

involved. What conversations have you been putting off that you need to have in 2016? Second, as leaders we should always be developing the next generation of leadership. Who will replace us when we are ready for that next chapter in life? Who will replace that key office person when they retire or leave? The most important thing a leader does is develop other leaders. What are you going to do in 2016 to build the leaders in your organization? It is easy to get so focused on the day to day stuff that we don’t look at the big picture. We can’t see the forest for the trees. One of the best ways to start looking at the big picture is to grow internally. Put yourself in a position that challenges you and encourages you to step back and look at a broad view of your business. There are great resources available on the Internet. One of the first resources I recommend (that has been seen by millions) is “Start With Why” by Simon Sinek. Make it a habit to watch TED Talks or other talks on YouTube, and read blogs and articles like this one to help you learn lessons from those who have made mistakes. It is important for our own personal growth as a leader. What are you go-

ing to do in 2016 to become a better leader? Later this month, the University of the Pacific Institute for Family Business will host guest speaker Doug Box. Doug speaks to family businesses about his own family business experience in “The Rise of a Texas Patriarch – The Fall of a Family Business.” In 1992 Box Energy, led by Tom Box, son of the founder and Doug’s brother, had a market cap of $228 million on the NASDAQ. Within five years Tom would be fired by his family and a vicious internal struggle would ensue followed by multiple lawsuits. Doug will share how brothers who were best friends from childhood can end up firing and suing each other and destroying their close relationships. He will also share how this could have been avoided. If you are part of a family business I encourage you to join us as my guest. Until next month: work on your communication, plan for succession and work on the business. – Peter Johnson is the Director of the Westgate Center for Leadership 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.

January 2016

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Defend your small business from cybercrime Cybercrime is as pervasive a risk as we can possibly imagine. Here are some facts from California’s attorney general: • In only the first three months of last year, there were more than 1 billion cyber attacks. • 50 percent of all such attacks were aimed at small businesses – principally, because they are easier targets. • Many small business owners believe (incorrectly) they’re immune to cyber attacks. Too many small business owners believe they have little of value to a cyber criminal. They overlook their customer information, the money in the bank and the trade secrets they’ve worked years to develop and protect. Therefore, business owners should be certain to include this risk in their overall risk management process – a process that should already be in place. If not, cybercrime risks help get that process started. California’s attorney general also tells us: • Although more than two thirds of business owners say the Internet is critical to their success, only 10 percent have installed any Internet security measures to mitigate this risk. • Only 29 percent provide any training on Internet security to their employees. For too many small businesses, the door is wide open to major financial loss by cybercriminals. We’ve read about security breaches at major

firms such as Target and Neiman Marcus. Yet, few of us know that California law requires firms of all sizes to report security breaches or where unauthorized access to unencrypted personal data has occurred. There seems to be no end to the multiple challenges of cybersecurity risks and the governmental regulations. That’s an overview of the probDavid lem. The solution Darmstandler has to be proacCEO of tive prevention. DataPath, Inc. More specifically, the California attorney general offers these risk mitigation measures: Assume you’re a target Smaller organizations are perceived to be easy targets. Have a plan to respond. Lead by example Owners must not simply delegate this risk to IT people. Leadership must champion this risk management effort and make resources available to prevent hacking from occurring. Network security should be topof-mind for every business owner, organization leader or IT professional. Losing data to theft, disaster or simple human error can be costly. On average

the cost per lost customer record is $188 (that can add up fast). The embarrassment of explaining to customers how their information was stolen is not a conversation you want to have as a business leader. Use bank security Use a secure browser connection – those with https:// with the “s” added – and other appropriate measures. Pay attention to bank notifications of account activities. Account access should require two factor authentication– not merely a single passcode. Finally, enforce the traditional internal controls among staff so no one individual “does it all” in terms of check writing, check depositing, bank account reconciliation, etc. Defend your business Use firewalls, antivirus software and secure connectivity. Educate your employees All staff members need to know how to control and reduce this risk. These risk are evolving and measures effective a couple of years ago may not be useful today. Continuing education and training is essential. Protect your organization’s data This includes encryption capability, limited access of staff, data backup, secure disposal of stored data, etc. Use strong passwords Include at least eight characters with a random sequence of letters, numbers and other symbols. Most recommend a change of password every three months or so.

Don’t use personal data in business passwords. Each employee should have an individual account with its own username and password, and they should be properly trained on the importance of updating and securing login credentials regularly. Finally, this discussion has focused principally on first-party property risks. There are also very real thirdparty liability risks. The two principal liability risks are: • Media liability from websites and participation on social media. • Privacy liability Cyberliability risks typically are excluded from conventional business liability insurance policies. However, special cyberliability policies are available. There is no standard form, however. Every policy has different terms and conditions. You’ll want to work closely with your insurance broker to be certain you have the most appropriate policy language for your needs. Reduce the risk and back up corporate data. Regardless of your current vulnerabilities, your biggest threat may simply be a lack of protecting your data. Make sure you investigate and understand how your data is being backed up, how often where, and who’s in charge of making sure it’s happening. – David Darmstandler is CEO of Datapath, an IT services company with headquarters in Modesto. You can reach him at david@mydatapath.com.

Customer acquisition can be a complicated process, but at its core it involves finding prospects and turning them into buyers. When you can simplify the process, building a profitable business becomes much easier. First, you need to reach your prospects in a targeted manner. Then you need to use strategies that entice Dan Natividad them to make a Partner purchase. The Port City Marketing following methods are proven ways to complete these steps and build a strong customer base. Finding prospects Search engine optimization: Effective SEO can be an inexpensive and targeted way to reach potential customers. If you can rank your website for the most relevant keywords, visitors will come to your site on a consistent basis. However, SEO can be expensive, par-

ticularly if you choose the most competitive phrases in your industry. For most people, targeting an array of long tail keywords offers the quickest and cheapest way to achieve top rankings. Paid ads: If you have the budget, paid ads are hard to beat when trying to get traffic to your site. Paying for advertising allows you to get immediate traffic while targeting your exact demographic. Platforms such as Google, Facebook, Twitter, Pinterest as well as banner ads like those found on the Business Journal’s website are all effective ways to find your audience. However, you will usually find that a handful of these sites bring you the best results. Social media: Social media usually responds to a more indirect form of selling. You probably won’t get great results from a link to your sales page, but you can draw interest by creating an engaging presence. Your social media followers might even build a bond with you before they have seen your offer. If you can create that bond, the selling process should be smooth. Converting prospects into buyers Retargeting: Retargeting is a form of paid advertising, but it takes place after you have found your prospects. Visitors who land on your site have a

pixel or cookie placed on their computer or mobile device. As visitors continue to browse the Internet, your ads show up in various locations. Most people will not make a purchase on their first visit, so this method allows you to get your brand seen on many occasions. Email marketing: Building a list of subscribers gives you an extended period of time in which to build a relationship. As mentioned, most people won’t make a purchase immediately, so being able to follow up with a number of emails can warm up your prospects. Email marketing works best when you provide quality content that helps the reader. As a relationship starts to build, your prospects will pay more attention to your offer. Free trials: A free trial is a way to get your prospects to take an initial step. Free trials usually involve signing up for your site, adding them as a subscriber to your email list and letting them test it out for a limited time. If you stand behind your product, you can expect many people to want to become full members. Our customers who sell web-based apps have found free trials can be effective when they provide limited free access to the product and keep some premium features for paying customers.

One-dollar trial: A $1 trial, or a similar inexpensive offer, is similar to the free trial but has the important distinction of getting a prospect to make a payment. Even though the payment is small, it filters out people who will not make a purchase. You can then tailor your messages to your trial members, knowing they are willing to part with money for the right offer. Another effective technique is to immediately offer a discounted deal after the $1 payment has been made. That discount can often be too good to refuse. Even using a small number of these methods can be enough to transform your business. While it is usually best to diversify your traffic sources, it is possible to build a business from SEO, paid ads or social media. Each skill has a learning curve, so you can gradually introduce a new traffic source over time. When it comes to turning prospects into buyers, it is wise to split-test various offers until you find an optimal method. Your business should see more traffic and new buyers, allowing you to reinvest profits into the same method. – 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.

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Simple ways to turn prospects into customers

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Central Valley Business Journal

January 2016

Can workplace violence be prevented? Once again Americans are mourning the loss of many lives in the wake of another mass shooting. Even though the event in San Bernardino was considered a terrorist act, the shooting did occur in a workplace at a work-related event, and it demonstrates that the specter of workplace violence remains very real. Employers can take this opportunity to review their own Bruce Sarchet Attorney, Littler workplace violence prevention Mendelson Law Firm policies. This article will provide an overview of an audit process to assist in the limitation and prevention of instances of violence in the workplace. However, as always, this article does not substitute for the advice of legal counsel. By way of background, Cal-OHSA has identified three categories of workplace violence: • Category One: the perpetrator is not connected to the workplace but is there to commit a criminal act, such as robbing a convenience store.

Human Element

• Category Two: the perpetrator is the recipient of services, such as the patient who lashes out at a nurse in a hospital emergency room. • Category Three: the perpetrator is directly involved with the workplace, such as an employee or the spouse of an employee. Employers should realize that workplace violence is a multi-dimensional problem, including: • Legal issues. Employers have a duty to provide a safe workplace but must balance that against individual rights of job applicants and employees, such as the right of privacy. • Psychological issues. If the warning signs of potential workplace violence are present, it may be necessary to conduct a risk assessment, including an evaluation of the mental state of people involved. • Security issues. Employers should evaluate access to their worksites and to the people who work there. • Public relations concerns. Employers may need to communicate with employees, family members and the general public if an incident of violence occurs at the workplace. Experts who have studied the problem of workplace violence have identified several early warning signs. These include: • Direct or veiled threats of harm to others or to property. • History of violent behavior – for

example, engaging in barroom brawls in the community. • Workplace bullying or intimidation, such as harassing phone calls or stalking. • Fascination with other events of workplace violence. • Flashing a weapon to test reactions. • Moral righteousness and believing that the employer is not following its own rules. • Inability to take criticism of job performance; holding a grudge. • Expressions of hope that some harm will come to another. • Disregard for the safety of co-workers. • Obsessive involvement with the job. It must be noted that the mere presence of one or more of these warning signs does not mean that an act of violence is imminent. However, if multiple signs are present, then an employer should assess more thoroughly the risk of a potential outburst. Before such warning signs are present, employers should take steps to reduce the likelihood of possible future instances of workplace violence. First, employers should consider instituting lawful background checks of job applicants. See my column, “Should you ‘ban the box’ on job applications,” from the July 2015 issue of the Central Valley Business Journal for more details on how to implement this. Second, employers should consider developing and implementing a policy

clearly prohibiting threats of violence and violent acts in the workplace. Third, employees and managers should be trained on the policy, and managers should be trained to spot the early warning signs identified above. Fourth, a management team should be identified to assess and address potential and actual instances of violence in the workplace. Outside experts in the fields of forensic psychology, security and employment law should be consulted by the management team as necessary. Sadly, even if all of these steps are scrupulously followed, it is not possible to completely eliminate the threat of violence. For example, in the San Bernardino shooting, the employee and his wife had no prior trouble with the law. The county worker was described by co-workers as quiet and normal. In addition, the shooting did not even occur in the workplace of the employee, it occurred at a private nonprofit entity that provides services to county residents. However, employers still have a duty to provide a safe workplace. Application of the audit process described in this article can go a long way to reducing the possibility of violence in the workplace. – 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.

Confront your tax debt or risk your passport The IRS, compared to other federal agencies, is unique in its ability to collect debts. The IRS generally does not have to sue a taxpayer before it can collect back taxes. Current law allows the IRS to administratively assess tax debts and then start collecting those debts without the courts’ involvement if the taxpayer does not contest the legitimacy of the Jason Harrel assessment. Calone & Harrel The administraLaw Group tive collections powers given to the IRS are broad and generally include liens, bank levies and wage garnishments. Congress recently gave the IRS a new power: the ability to revoke your passport or deny the issuance of a passport. On Dec. 4, 2015, President Obama signed into law the Fixing America’s Surface Transportation Act. Buried within the act were a couple of tax provisions. One requires the IRS to use private debt collection

Taxing Matters

companies to collect delinquent inactive tax accounts. The the other requires the State Department to revoke a passport, deny a passport application or renewal of a passport for taxpayers who have seriously delinquent tax debt. Seriously delinquent tax debt is defined as an amount larger than $50,000, including penalties and interest, for all outstanding tax years. The IRS also must have sent many notices and either attempted to levy accounts or filed a lien against a taxpayer and advised him that his passport may be revoked before it is revoked. Basically, a taxpayer must have ignored the IRS’s notices and collection efforts for more than a year. The IRS cannot revoke the passport itself, but it will transmit a list of seriously delinquent taxpayers to the State Department, which will make the revocation. Congress put due process procedures in place that require that taxpayers receive warning notices and have the ability to dispute the revocation in a federal court. The revocation not only affects taxpayers who travel for business or pleasure, but also the millions of Americans living abroad. The law does allow for an exception for humanitarian or emergency situations. What those

are and how aggressive the IRS will be are yet to be seen. If a taxpayer is seriously delinquent and has received threats of passport revocation, all is not lost. There are several tax debt resolution procedures a taxpayer can pursue that will prevent his or her name from going on the passport revocation list. Those tax resolutions include installment payment plans, Offer in compromises, collection due process hearings, innocent spouse relief, or hardship determinations. Under an installment payment plan, a taxpayer can pay off the debt over several years without being subjected to the harsh IRS collection practices. An Offer in Compromise allows taxpayers to settle tax debt for less than what is owed. That option is for taxpayers who have few assets or income that is too low to pay off the debt in an installment payment plan. A Collection Due Process hearing allows the taxpayer to contest a levy or lien and propose a collection alternative with IRS Appeals. Lastly, the request for innocent spouse relief allows spouses to legally distance themselves from a marital tax debt because of their spouse’s illegal or fraudulent acts. Taxpayers who believe a tax debt

is incorrect and the amount owed is actually much less or zero, can request an IRS audit reconsideration or an Offer in Compromise, doubt as to liability. The IRS is very computer-driven and makes mistakes all the time. An audit reconsideration allows a human to review the tax assessment for any errors or needed adjustments. The end result of an audit reconsideration may lower the taxpayer’s debt to below the $50,000 threshold. The revocation of a passport is a completely preventable event if a taxpayer opens up a dialogue with the IRS to resolve the tax debt. We recommend that taxpayers who are in the position to lose their passport contact a qualified tax professional to start the resolution process and meet with that qualified tax professional face to face. Be very careful in hiring tax resolution firms that advertise on television or the radio and are out of state. I have heard many horror stories about out of state firms that don’t properly represent their clients. – 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.

January 2016

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Central Valley Business Journal

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SAN JOAQUIN COUNTY

BRIEFS Port of Stockton adds SCB International Materials STOCKTON — SCB International Materials has announced it will take over a four-acre site at the Port of Stockton. SCB International Materials, a Group D’Amico company, is a leading global supplier of raw materials and technologies, primarily, for the cement manufacturing industry. The company, formerly Bulk Materials International Co. , has been in business for almost 30 years. It was founded by two executives from the chemical and cement industries. The company was renamed SCB International in 2011 with a focus on non-cementitious products and technologies that targeted cleaning the processes of cement manufacturing.

Hispanic Chamber CEO takes on new job STOCKTON — Brenna Butler Garcia has been tapped to become the manager for Marketing and External Engagement for the Western States Petroleum Association. The Western States Petroleum Association is a non-profit trade association representing five western states. Garcia resigned her current position as the CEO of the San Joaquin County Hispanic Chamber of Commerce and will assume her new role Jan. 8. Garcia will retain her role as Central Region Board Director for the California Hispanic Chambers of Commerce. Garcia During her tenure with the SJCHCC, she expanded program capacity, increased membership and created community partnerships as well as boosting funding streams to record levels. Garcia was also instrumental in boosting business opportunities for women through initiatives such as the Latina Business Conference. The SJCHCC will begin a regional search for her replacement. “It is the goal of the Board to launch a regional search for a candidate to succeed Brenna that will represent the diversity of our community and continue our plan for expanding capacity and serving our Hispanic Chamber members,” said SJCHCC President Sylvester Aguilar in a statement. The application period opened Dec.18 and resumes can be sent to info@sjchispanicchamber.com.

Rishwain named to Pacific’s governing board STOCKTON — Former UGG President Connie X. Rishwain has been elected to the governing board of the University of the Pacific. Rishwain’s three-year term begins next July. “We are fortunate to welcome Connie Rishwain to the university’s Board of Regents,” said Board of Regents Chair Kathleen Lagorio Janssen. “Her leadership, vision and commitment to making a dif-

ference in the lives of others will be a tremendous asset as we strive to make Pacific an even stronger institution for our students and our region.” Rishwain is a 1979 graduate of University of the Pacific. She was president of UGG Australia from 2002 through 2015 and led the brand’s growth since 1999 from a niche boot to must-have fashion footwear. Rishwain also implemented the UGG brand focus on social responsibility and its commitment to children in need. One example was Art and Sole, a Rishwain program where celebrities customize boots that were auctioned online to support St. Jude Children’s Research Hospital. Rishwain also sits on the board of KIDS (Kids in Distressed Situations) – Fashion Delivers, which has distributed more than $1 billion in products to children impacted by poverty or tragedy. Rishwain graduated from Stockton’s Stagg High School and completed a bachelor’s degree in history at Pacific in three years. She lives in Santa Barbara with her husband, Jeff Rishwain, their two children, Alec and Demetra.

Moreno named as Delta College’s board president

STOCKTON — Stockton Unified School District employee Claudia Moreno has been selected to be San Joaquin Delta College’s board president for 2015-16. Moreno, a Delta College alumna, has served as a trustee since December 2012. She calls the college her extended family. “I have a vested interest in seeing the college continue to thrive,” said Moreno in a press release. “It’s important for our district’s economy. It’s important to our partnerships and everything we do. I look forward to a productive year!” Janet Rivera, representing Area 3 in north Stockton, will become vice president of the board for 2015-16; Richard Vasquez, representing Area 4 in Lodi-Galt, will become clerk of the board.

Torgersen’s Water Resources appointment made permanent MANTECA — Carl Torgersen, 62, of Manteca, has been appointed chief deputy director at the California Department of Water Resources, according to Gov. Jerry Brown’s office. Torgersen was appointed acting chief deputy director earlier this year. He has served in several positions since 1981, including deputy director of the State Water Project, acting deputy director, chief of the Operations and Maintenance Division, chief of the State Water Project Operations Control Office, chief of the San Luis Field Division, chief of the Engineering Branch, chief of the Power Plants Section and staff mechanical engineer in the Design and Construction Division. The position does not require Senate confirmation and the compensation is $172,908. Torgersen is a Republican.

January 2016

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STANISLAUS COUNTY

BRIEFS Gallo adds to its stable of wineries MODESTO — E. & J. Gallo Winery has agreed to purchase The Ranch Winery, a custom crush winery specializing in both small and large scale production in St. Helena. The property encompasses more than 70 acres, and includes a winery facility capable of crushing 30,000 tons of grapes. It will add to Gallo’s existing Napa Valley wineries’ 15,000 ton capacity, bringing Gallo’s total Napa presence to 45,000 tons. The acquisition also includes 4.6 million cases of bottling capacity and approximately 8 million gallons of storage. This will bring Gallo’s winery total to 15 wineries in wine regions throughout California and Washington. “We are excited to have this highly capable winery in close proximity to our other Napa wineries,” said Roger Nabedian, senior vice president and general manager of Gallo’s Premium Wine Division in a statement. “This purchase supports the company’s continued growth in the super premium and luxury wine segment. We look forward to integrating The Ranch Winery into our premium wine strategy and working with the existing customers.” Gallo has been busy this year. It also bought the Asti winery and Souverain brand from Treasury Wine Estates in July, 258 acres of Pope Valley vineyard property in May and J Vineyards & Winery near Healdsburg in March.

Stanislaus State employee recognized for help during tornado TURLOCK — Kellie Marshall, the emergency management specialist at California State University, Stanislaus, was recognized on Nov. 24 by the Stanislaus County Board of Supervisors for the voluntary aid she offered following the Nov. 15 tornado in Denair. Despite her own house being one of 21 that suffered damage in the incident, Marshall offered assistance to others in the community, putting her training and skills to work. The supervisors cited Marshall’s response as another example of the great relationship between the county and the university, and praised her in particular for her dedication and willingness to engage, empower, and transform during a critical incident.

Turlock wins Kettle Challenge TURLOCK — Turlock won the Salvation Army Mayor’s Kettle Challenge by raising a record $1,895 in eight hours to help fund the organization’s programs. Turlock raised more than Ceres, Modesto, and Riverbank in the third annual challenge. Ceres ranked second with $1,120, Modesto raised $959 and Riverbank brought in $804. The Turlock team rang the Salvation Army kettle bell from 10 a.m. to 6 p.m. on Dec. 12 at the WalMart Neighborhood Market on Geer Road.

January 2016

Turlock will claim the traveling kettle trophy for its efforts. The Salvation Army raised more than $55,000 during their seven minute “dash for cash” this year. “I’m always up for a challenge that benefits such a worthy cause,” said Turlock Mayor Gary Soiseth in a press release. “I had a great team and I thank them for their time, dedication and efforts to raise funds. After all the friendly bantering between mayors, I’m grateful that the community rallied behind our Turlock team to beat the other cities.”

Modesto Chamber’s Awards Gala set for Jan. 23 MODESTO — The Modesto Chamber of Commerce will recognize businesses and individuals who have influenced the city in a positive way at its annual Awards Gala Jan. 23. The black-tie event will feature entertainment, a live band, wine and the best of Modesto’s culinary offerings. Tickets are $100 and can be purchased on the Chamber’s website at www.modchamber.org. For more information, call (209) 577-5757.

Valley youths ride aboard dairy industry Rose Parade float MODESTO — Makenzie Neves, of Turlock, and Katie Migliazzo, from Atwater, helped represent more than 1,400 dairy families in the Adventures in Real Food Rose Parade Float. Jordon Dunn, of Visalia; Karleen Lopez, of Los Banos; and Natalie Massa, of Willows, rode on the float. The float honored California dairy families and the industry they work in. The five were selected for the time and effort the have spent advocating for the dairy industry. The float took part in the annual Rose Parade in Pasadena, before the Rose Bowl on New Year’s Day. Neves is from a third generation dairy farm and has shown dairy cattle in both 4-H and the Future Farmers of America competitions. She has held numerous leadership positions in both organizations as well as outside organizations, including E. & J. Gallo’s Early Start Leadership Camp. Neves is currently majoring in communications with an emphasis in public relations at CSU Sacramento. Migliazzo, is pursuing a bachelor’s degree in dairy science and a minor in agriculture business at Cal Polytechnic-San Luis Obispo. Migliazzo, a third generation dairy farmer, was involved in dairy cattle showing 4H competitions and Future Farmers of America. She has also been active in a number of organizations, including her high school dairy and collegiate judging teams.

Oak Valley takes on new credit officer OAKDALE — Edward Vassallo has joined Oak Valley Community Bank as vice president and commercial credit officer, the bank announced. He will be based out of the bank’s Oakdale headquarters. Vassallo has more than 25 years of commercial banking experience. In his new role, he will be responsible for portfolio management as well as monitoring and maintaining credit quality within the commercial and small business portfolios. Vassallo holds a Bachelor of Science degree with an emphasis in Finance and Accounting from the University of California, Berkeley. In this free time, he enjoys traveling, exercise, and physical fitness. He currently lives in Stockton.

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MERCED COUNTY

BRIEFS Carrigan appointed Merced city manager MERCED — The Merced City Council appointed Steve Carrigan city manager during its Dec. 8 meeting. Carrigan is city manager in Los Banos. He replaces John Bramble who retired as city manager after seven years. The council voted unanimously to appoint Carrigan after a nationwide search that drew applications from 31 people. He is scheduled to begin work in Merced on Jan. 25. “Merced has a lot going for it,” Carrigan said. “UC Merced jumped out to me. There are only 10 research universities in the state, and to have one of them is awesome.” Carrigan said he was aware of Merced’s homeless problem. He is the chairman of the Continuum of Care, which deals with solutions to homeless issues in Los Banos. While he was in Los Banos, the city removed a 35-person homeless encampment from the city without any incidents, according a press release from the city of Merced. “I can really help with homelessness,” Carrigan said. “I do have a plan that I have shared with the [Merced] council.” He said he believes the state’s high-speed rail project could transform Merced. He is also familiar with the city’s other major projects, including the shopping center complex at the Mission Avenue interchange and downtown Merced revitalization efforts.

Gonzalez reappointed to teacher credentialing committee ATWATER — Jose Gonzalez, 43, of Atwater, has been reappointed to the California Commission on Teacher Credentialing, according to Gov. Jerry Brown’s office. Gonzalez has served on the commission since 2014. He has been superintendent of the Planada Elementary School District since 2010. He was superintendent principal at the Ballico-Cressey Elementary School District from 2006 to 2010 and served in several positions for the Newman-Crows Landing Unified School District from 2003 to 2006, including principal of alternative education, principal of summer school and interim principal. Gonzalez was an English-language science teacher at Livingston High School from 1996 to 2003. He is a member of the California Association of Latino Superintendents and Administrators, School Employers Association of California, Association of California School Administrators and the Small School Districts Association. The position requires Senate confirmation and there is no compensation. Gonzalez is a Democrat.

UC Merced’s Giving Tuesday campaign raises money for scholarships MERCED — UC Merced raised $316,000 during its Giving Tuesday campaign Dec. 1. The donations include matching funds and raised more than $300,000 for undergraduate scholarships. Nearly 400 individual donors participated in this

year’s campaign. Of those donors, 102 were UC Merced alumni and 132 were either staff or faculty, according to the university. “It’s the highest number of individual donations we’ve ever received on a single day,” said Alumni Relations Director Chris Abrescy, who is also member of the campaign’s steering committee. The campaign included a three-to-one match, offered by Wells Fargo and Foster Poultry Farms. Those matches quadrupled gifts directed to 12 scholarship funds during the 24-hour campaign. The San Joaquin Valley UC Alumni Scholarship Endowment received $36,440 post-match — the most of all eligible funds — and reached its endowment goal, the university said.

Business tax classes offered for Spanish speakers

MERCED — Merced Community College’s Community Services department will offer Spanish language classes on business tax strategies on Jan. 20-27. Participants will learn the difference between income tax and self-employment tax strategies to reduce their tax liability as well as investments in retirement and estate planning. Classes will be at the Merced College Business Resource Center at 630 W. 19th St. in Room 120 from 6:30-8:30 p.m. Classes cost $55. For more information, call (209) 384-6224.

Foster Farms donates thousands of turkeys to food banks LIVINGSTON — Foster Farms donated 4,000 turkeys – or 64,000 pounds – to six food banks in California, Oregon and Washington over the holiday season, the company said. The holiday donations are an annual tradition for Foster Farms, and are aimed at helping address the issue of food insecurity on the West Coast. Roughly one in seven households in the region – or about 14 percent of all households – did not have enough to eat at some point during 2014. Each food bank received 640-700 turkeys, or 10,00011,000 pounds, to help serve a total of more than 66,000 meals. “Giving back to the communities we serve is a priority for us,” said Foster Farms Director of Communications Ira Brill. “Every family deserves a traditional holiday meal. Our intent is to provide West Coast families with a hearty meal while addressing the need for food donations – and much-needed protein – especially during the holiday season. We hope other companies and individuals will join Foster Farms in donating.” Among the food banks helped was Second Harvest in Manteca. Foster Farms’ Food 4 Thought program with Second Harvest Food Bank has provided 4,500 Central Valley elementary school students with more than 1.3 million pounds of food since 2009.

Central Valley Business Journal

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Keosomphet Peter Alejandro Saavedra Services 2639 E Marsh St Apt S3 Stockton, Ca 95205 Saavedra Alejandro Aguilar Quik Stop Market Lodi 1721 S Cherokee Lane Lodi, Ca 95240 Shergill Harbhajan Shergill Devinder

STANISLAUS COUNTY

LEGALS Fictitious Business Names Happyfaces Childcare & Transportation Service 880 W Mt Diablo Avenue Tracy, Ca 95376 Bisi Stella Liberty Tax Services 8290 352 Quail Run Circle Tracy, Ca 95377 Dastagirzada Ismael Jed Farms 19012 S Calla Dr Manteca, Ca 95336 Boersma James Boersma David Villa Teresa Memory Care 2477 Carpenter Rd Stockton, Ca 95205 Carpenter Guest Homes Inc Estrella’s Icf-Ddh 3446 Pock Lane Stockton, Ca 95205 Carpenter Guest Homes Inc Good Samaritan Rehab. & Care Center 1630 N Edison Street Stockton, Ca 95204 Stockton Edison Healthcare Corp Pacheco Distributing 20001 Jack Tone Rd Ripon, Ca 95366 Pacheco Rolland Ii Pacheco Rolland Iii P.K. Market 748 E Weber Ave Stockton, Ca 95202

Solar Air 6307 Pacific Ave Stockton, Ca 95207 Romero Carlos Zenvoip Telecommunications |Zen Group|The Zen Group 10015 Havencrest Ct Stockton, Ca 95219 Shinn & Assoc 31st Republic Productions 2024 East Dr Martin Luther King Jr Blvd Stockton, Ca 95205 Stiefvater Mary Alexandra Metro Towing Llc 23705 S Chrisman Rd Tracy, Ca 95304 Metro Towing Llc Fidelity Information Research Of Northern California 25391 S Austin Rd Ripon, Ca 95366 Schuiling Jason Robert Local Drive 19 S Rose St Lodi, Ca 95240 Oneill David Involia Electric Company 2940 Alfalfa Ct Tracy, Ca 95377 Mims Hampton Kimberly Mims Kimberly Hampton Kimberly Tran Auto Sales Inc 2300 N Wilson Way Stockton, Ca 95205 Tran Auto Sales Inc. Ava Fire Protection 394 April Way Manteca, Ca 95336 Lena Arturo Javier Alemon Clean Planet Inc 250 Port Rd 23 Stockton, Ca 95203 Clean Planet, Inc

Ab & Ce Express 10019 Castlebrook Ct Stockton, Ca 95219 Villareal Efren C Torralba Ariel F Dingle Chris M Tabora Felix Jts Transport 14322 S Harlan Rd Lathrop, Ca 95330 Jts Enterprises Llc Rise Above Flooring| Rise Above Construction 681 W Las Brisas Dr Mountain House, Ca 95391 Perez Erick Alexander Hernandez Aj Truck Wash 3940 N Tracy Blvd Tracy, Ca 95304 Singh Angraz Singh Jarnail Advanced Auto Body & Collison Center 23922 S Darrigo Dr Tracy, Ca 95304 Deltoro Antonio Mendoza Antonio Olive Oil Pantry & Tasting Room 1161 S Main St Manteca, Ca 95337 Kaufman Arnold D A.C. Trucking 405 S Vasconcellos Ave Manteca, Ca 95336 Nunes Trans Inc Top Gun Hauling And Stocking, Inc. 15500 Mckinley Ave Lathrop, Ca 95330 Top Gun Hauling And Stocking, Inc. New Fu Lim Chinese Restaurant 2536 East Fremont Street Stockton, Ca 95205 On Nam Canh Nam Canh On Yee Joanna M Gold Metal Trucking 375 Aries Place Lathrop, Ca 95330 Ortiz Jorge Luis Manny’s Custom Car Audio 9698 Deerwater Ln Stockton, Ca 95219 Gomez John Manuel United Gasoline 3440 East Main Street Stockton, Ca 95205 Singh Manpreet Singh Chamkaur

Torres Luis Trucking|Luis Torres Trucking 609 S Ash St Stockton, Ca 95205 Pacheco Luis A Torres Kheira Bros 2443 Raj Kovich Wy Stockton, Ca 95212 Singh Komalpreet Millie’s Art Korner 229 E Alpine Stockton, Ca 95204 Jazulin Melissa Enviwash 2364 Mirada Ct Tracy, Ca 95377 Hill Randal Brian Castro Eduardo Trucking 777 Clifford Dr Lathrop, Ca 95330 Contreras Eduardo Castro Carefree Cleaning 7914 Lan Ark Dr 3 Stockton, Ca 95210 Brancato Robert G Jr Jl Farms 18500 N Ray Rd Lodi, Ca 95242 Luiz Janice M. Lashea Hair Boutique 306 East Main Street Suite 208 Stockton, Ca 95202 Hardin Marcellique Furious Entertainment 4703 Bennets Mill Ct Stockton, Ca 95212 Pereida Oscar California Mental Health Data Collection Repository 7554 Pacific Ave 692553 Stockton, Ca 95269 Toonen Devon The Torres Group 672 W 11th St #216 Tracy, Ca 95376 Klemm Real Est Inc Schoessler Aircraft Supply 115 W Larch Road Tracy, Ca 95304 Nuzum William M Papa Johns 318 W Grant Line Rd Tracy, Ca 95376 Dreamer Pizza Inc Dba Papa Johns Lily’s Cottage 539 W 11th St Tracy, Ca 95376 Sanchez Ana L

January 2016

8 Great Kids 2455 Naglee Rd 287 Tracy, Ca 95304 Rylu Media Inc Day-2-Day Diabetes Support Group 1427 Iris Drive Lodi, Ca 95242 Simpfenderfer Duane A Sr Cherry Blossom Spa 7743 West Lane Unit B1 Stockton, Ca 95210 Yipeng Brc Dean G. Gilman, P.E. 6252 Chesapeake Circle Stockton, Ca 95219 Gilman Dean G Escalon Plaza Mini Mart 1205 Plaza Ave Escalon, Ca 95320 Kaur Amandeep Singh Harbhajan Pacific Oral & Facial Surgery Center 2160 W Grant Line Rd #160 Tracy, Ca 95377 Beckley Michael L Palomino 2385 Arch Airport Rd Suite 500 Stockton, Ca 95206 California Cedar Prod Co The Polgar Group 672 W 11th St #216 Tracy, Ca 95376 Klemm Real Est Inc Feather Hollow Engineering 825 N Pilgrim St Stockton, Ca 95205 Kneedler Blake Joseph River Mill Avocado Co 19333 N Buck Rd Acampo, Ca 95220 Lemmons Robert Lemmons Loma Show Off Motorsports Inc. Riverbank 2213 B Patterson Road Riverbank, Ca 95367 Show Off Motorsports Inc Classy Couture By Hug Me First 1418 Mariani Ct. Unit 120 Tracy, Ca 95376 Albornoz Daniel Albornoz Esther C2c Transport 331 Calcite Ave Lathrop, Ca 95330

Smith Courtney Jr Rd Concrete Construction Co Inc. 10775 Chantel Ln Stockton, Ca 95212 Rd Concrete Construction Co Inc. Rocking Q Ranch 11500 N Hwy 99 Lodi, Ca 95240 Quaschnick Michael R Quaschnick Patricia A Crunch Stockton 1155 E March Lane Stockton, Ca 95210 Mojo Fitness Inc Van Medical Transport 1005 E Oak Street Stockton, Ca 95205 Valley Auto Network Llc Creative Concepts 1115 Vernal Way Stockton, Ca 95203 Sosa Chris G Sunset Sweets Ice Cream & Treats 2414 W Kettleman Ln 210 Lodi, Ca 95242 Kulberg Derek Duong Tuyen Tuyen Duong Jaa Law Group 333 E Channel Street 1st Floor Stockton, Ca 95202 Abdollahi Jessica Ashraf Two Dimes Clothing Company 31 Embacadero Cove Oakland, Ca 94606 Carter Rickey Joseph One World Transport 3315 John Townsend Place Stockton, Ca 95206 Garcia Jesus Julian Ideal Furniture Of Stockton 1588 E March Ln Ste F Stockton, Ca 95210 Nicolson Brian Payless Auto Repair 26 North Cherokee Ln Suite B Lodi, Ca 95240 Khan Abid Advanced Industrial Coatings|Aic Coatings 950 Industrial Drive Stockton, Ca 95206 Advanced Industrial Coatings Inc.

January 2016

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North Adrian’s College

SJ COUNTY

LEGALS Fictitious Business Names 209 Transmissions 547 Crowslanding Rd Ste B Modesto, Ca 95351 Bassam, Sayed Z 3KU Construction 442 Kansas Ave Suite P Modesto, Ca 95351 Pruitt, Ryan Paul 3rd Alarm Landscaping 320 N Western Ave Waterford, Ca 95386 Fritz, Nicole Fritz, Jason Marc A&A Cattle Co LLC 4064 Dodds Rd Oakdale, Ca 95361 A&A Cattle Co Llc A-1 Glass Co 124 East Coolidge Ave Modesto, Ca 95350 Modesto A-1 Glass Co., Inc ABC 2412 McHenry Ave Modesto, Ca 95350 North Adrian’s College Ability Mortgage 210 South Sierra Ave, Office #7 Oakdale, Ca 95361 American Pacific Mortgage Access Door Works 1613 Maple Wood Dr Modesto, Ca 95350 Barnard, Kevin Jeffery Adrians Beauty College 124 Floyd Ave Modesto, Ca 95350

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Advance Carpet & Upholstery Clean 821 Georgetown Ave Turlock, Ca 95382 Barker, Barney Affordable Chiropractic 3025 Mchenry Ave Ste F Modesto, Ca 95350 Jack R Morris, Chiropract All Valley Smog Inc. 415 Lander Ave Turlock, Ca 95380 All Valley Smog Inc. Aluna’s Marble & Granite 2728 Nathan Ave Modesto, Ca 95354 Melchor, Adolfo Luna Amelia’s Fashion 1641 Crowslanding Rd Modesto, Ca 95358 Jimenez, Amelia L Jimenez, Fidel Art’s Quality Pest Control 904 Pennington Place Modesto, Ca 95356 Stout, Wilbur Arthur Ascend Dental Care, Practice Of R 2503 East Hatch Rd Modesto, Ca 95350 Rubencillo H. Santos, Dds B & B Window Cleaning 1240 Sycamore Street Turlock, Ca 95380 Crowe, Barry Bad Boyz Customs 3312 Ruble Road Turlock, Ca 95380 Mattis, Donald C Bains Trucking 2691 Castleview Drive Turlock, Ca 95382 Bains, Hardev Singh Bamboo Orchid Spa 3007 Dale Ct Ceres, Ca 95307 Jia Gui Qi Brc Baskin Robbins 111 S Maag Ave Oakdale, Ca 95361 Maddox Resources Inc Bhangu Transport 2121 Moffet Rd #10 Ceres, Ca 95307 Singh, Jagtar

Big Valley Electronics 3119 Atchison Street #A Riverbank, Ca 95367 Lazar, Lazar Leonard Big West Tractor Repair 1505 E Linwood Ave Turlock, Ca 95380 Tiede, Patrick Blessed Auto Sales 623 Bitritto Ct Ste H Modesto, Ca 95356 Mickle, Buddy Wayne Bob Cole Electric 1046 Reno Ave Suite J Modesto, Ca 95351 Cole, Robert M Brianna’s Home Furnishings 1705 Crows Landing Rd Modesto, Ca 95358 Loredo, Teresa Brink And Son Custom Concrete Con 5818 Chancellor Way Riverbank, Ca 95367 Brink And Son Construction C & M Janitorial 4038 Elmo Loop Modesto, Ca 95356 Fleury, Marc E Cem Solutions 2555 Acme Ct Turlock, Ca 95380 Cost Effective Manufactur Central California University Sch 4260 Sisk Rd Ste E Modesto, Ca 95356 Ramos, Benjamin J Ramos, Lorrie A Central Valley Battery 1057 Woodland Ave Modesto, Ca 95351 Justice, David Clay Central Valley Duct Testing 3309 Kathy Ave Modesto, Ca 95355 Ernst, Matt Chivas Trucking 1526 Dougfir Dr Modesto, Ca 95350 Chivas Trucking Inc Classic Dry Cleaners 4120 Dale Road #J9 Modesto, Ca 95356 Shawo, Ronnie R Classic Tow 4244 Highway 108 Riverbank, Ca 95367 Classic Tow, Llc

Clear Water Trucking 1324 S Tegner Rd Turlock, Ca 95380 Lourenco, Nathan Cls Investments 1620 N Carpenter Rd Bldg B Modesto, Ca 95351 Cs Investments Llc Code C Cafe 4601 Dale Rd Modesto, Ca 95356 Zaia & Zaia Llc Connected Living 1325 Houser Lane Modesto, Ca 95351 Norther California Congre Cool Company 6026 Lon Dale Oakdale, Ca 95361 Basmajian, Andrew Cost Effective Manufacturing 2555 Acme Ct Turlock, Ca 95380 Cost Effective Manufactur Counter Strike Industries 590 Reynolds Ave Oakdale, Ca 95361 Neilsen, William Ryan Country Veterinary Clinic 4901 River Road Oakdale, Ca 95361 Country Large Animal Clinic Country View Kennels 3900 Sylvan Ave Modesto, Ca 95355 Lamke, Christopher Villierme-Lamke, Deborah L Cozy Coffee Co. 1309 Fulton St Modesto, Ca 95350 Gardner, Shelly Gardner, David Crowslanding Furniture 1328 Crowslanding Rd Modesto, Ca 95351 J And S Quality Motors Ll Crumbles Bakery 913 Carrigan Ave Modesto, Ca 95350 Flora, Stephanie A Dalat Auto Body Parts Ii 1216 6th St #A Modesto, Ca 95354 Lam, Steven

Data Computers 3430 Tully Rd Ste 24 Modesto, Ca 95350 Zeng, Kenneth F Deco Stone Concrete 13316 Waterway Dr Waterford, Ca 95386 Sparks, Bryan D Erickson, Korin M Delci’s Designs 5512 Bentley Road Oakdale, Ca 95361 Schonhoff, Delci Jean Denair Self Storage 3900 Merced Avenue Denair, Ca 95316 Fernandes, James J Kelley, Brian Fernandes, Norma N Kelley, Norma Dickey’s Barbecue Pit 2207 Claribel Rd Ste D Riverbank, Ca 95367 La Pit Restaurant Concept Discount Auto Electric And Radiat 935 8th St Modesto, Ca 95354 Mazdae Inc Dr Tile 1517 Virlee Drive Modesto, Ca 95355 Robinett, Douglas A Dufour’s Plastering 1311 Colin Ln Modesto, Ca 95355 Hamilton, Susan Del Hamilton, Daniel George Duzuta 4208 N Kilory Road Turlock, Ca 95382 Kelaita, James Dynamite Exterminators And Landsc 415 N Santa Cruz Ave Modesto, Ca 95354 Katen, Thomas J El Primo Recycling Center 405 W Hatch Rd Modesto, Ca 95351 Otero, Manuel Ellie & Charley’s Natural Garden 13736 Elm Ave Patterson, Ca 95363 Fernandez, Charles L Express Soccer Zone And Graphic 1672 Romeo Ln Turlock, Ca 95380 Solis Hernandez, Cesar Ar

Extreme Orthopaedics 609 E. Orangeburg Avenue, Suite 2 Modesto, Ca 95350 Jonathan L. Cohen, M.D., Family Life Church 200 North Ave Turlock, Ca 95382 Northside Assembly Of God Frugal Farms Smith, Eric A 4125 Faith Home Rd Turlock, Ca 95380 Smith, Melanie R Future Transport 1409 Tyrus St Modesto, Ca 95351 Rivera, Blanca A Lopez, Galdino G & C Body Shop 1300 Granite Ln Modesto, Ca 95351 Brasiel, Calvin C Brasiel, Lonny D Galloway Insurance Services 3925 Scenic Drive #7 Modesto, Ca 95355 Galloway, Troy Garden Grove Nursery 3342 Mcdonald Ave Modesto, Ca 95358 Quaresma, Frank Genises Marketing 1717 Kinser Road Ceres, Ca 95307 Garza, Theresa Gentle Breezes Farms 4125 Faith Home Rd Turlock, Ca 95380 Smith, Eric A Smith, Melanie R Glam Escuela De Modelos 1343 Crows Landing Rd B Modesto, Ca 95351 Garcia Ochoa, Idalia Arac Global Gold Rush 1849 3105 Wilton Place Modesto, Ca 95350 Duke, Ronald Golden Dragon Chinese Restaurant 2305 W Main St Ceres, Ca 95307 Lady Pig Corp. Greater Goods 6026 Lon Dale Oakdale, Ca 95361 Basmajian, Andrew

Central Valley Business Journal

January 2016

Business Journal Community Voices Why there are more heart attacks in winter CENTRAL VALLEY

In some ways, people are more mindful of their general health during the cold weather seasons. They may get flu shots. They make sure their hair is dry after washing before venturing outside. They buy winter coats. What they don’t realize is they also need to “bundle up” against heart attacks. Why? There are more heart attacks durRamin Manshadi ing winter than Cardiologist any other season. Manshadi Heart Comprehending why will also help Institute you understand more about your body. In cold weather, there is more oxygen demand by the heart because it is working harder to do the work while maintain body heat. Each 1.8 degree Fahrenheit reduction in temperature on a single day has been linked to about 200 additional heart attacks. A report in the Dec. 13, 2004 issue of Circulation: Journal of the American Heart Association found that the rate of cardiovascular-related deaths rose sharply between Dec. 25 and Jan. 7. The greatest risk came within two weeks of cold-weather exposure. Those aged 75-84, along with those with coronary heart disease, were most vulner-

Health Matters

able to temperature changes. Your body has an intriguing response mechanism to deal with cold. The goal is to keep the core of your body at 98.6 degrees. One of the ways your body does this is by constricting blood vessels to limit the loss of body heat. That does help, but it also raises blood pressure and lowers the amount of blood flowing to your heart and other organs. If you are being active at the same time, this can put a significant demand on your heart. If you already have heart disease, it may be too much and cause a heart attack. That’s why you hear warnings about the high risks of coronary while shoveling snow. Another factor that can increase the risk of heart attack during the winter season is the potential of contracting flu. We know that inflammation can trigger a heart attack and the flu triggers inflammation. In turn, inflammation can make arterial plaque less stable, and they may dislodge, block arteries and contribute to a heart attack. But a flu shot can lower the risk of heart attack. People at high risk for the flu, including people older than 65 and those with cardiovascular risk factors should make sure to get the shot. So how might you protect yourself ? If you have snow to shovel, you can hire someone to do it for you — hopefully someone at less risk. Yes, there’s cost involved, but it’s certainly minor compared to chancing a heart attack. If you do go outside, make doubly

BUSINESS JOURNAL PHOTO

sure you are warmly clothed so your blood vessels have less tendency to contract in order to preserve heat. Cover your head, hands — all that you can. If you are shoveling, don’t try to do too much at one time. Take frequent breaks. Remember snow is heavy. Not so much when hurling a snowball, but much more when shoveling. Also, be sure to stretch and warm up your body before going out so your activity puts less strain on you. When shoveling, be alert. Symptoms of a heart attack can seem similar for those for a pulled muscle, including

squeezing or other pains in your chest area or pain in your arms, back or neck. They can also include shortness of breath, sweating or nausea. Pay extra attention to any warning signs after shoveling too. If you feel chest pain, always take an aspirin immediately as this can dramatically decrease chances of dying from a heart attack. Any size aspirin will do, though if there is an acute sign of heart attack it is the best to chew 325 mg of aspirin (a full strength aspirin). Enjoy your winter holiday season and be safe.

California’s prescription drug system gets overhaul SACRAMENTO — Attorney General Kamala D. Harris and the California Department of Consumer Affairs announced a state-of-the-art overhaul of California’s prescription drug monitoring program in late December. The goal of the new Controlled Substance UtiliKamala Harris zation Review and Evaluation System (CURES 2.0) is to allow health providers and pharmacists

to more effectively flag at-risk patients and curb prescription drug abuse. The new system will be active Jan. 8. The new database enables health care providers to review a patient’s medication history before prescribing new drugs. More than 5.5 million such requests were processed in 2015 alone. According to the Consumer Affairs department, the upgraded system features “cutting-edge” analytics for flagging at-risk patients, which will allow medical professionals to help prevent abuse or diversion of controlled medications such as opioids. “CURES 2.0 will give California’s health care professionals who pre-

scribe and dispense potent prescription drugs a powerful tool to better access and utilize patient information to help them identify individuals who are abusing these drugs,” Awet Kidane, director of the California Department of Consumer Affairs said in a statement. “It is a direct result of the hard work and collaboration between the Department of Justice, the Department of Consumer Affairs, and the regulatory boards funding this project.” Health practitioners licensed to prescribe or dispense scheduled medications are required to sign up for CURES by July 1, 2016.

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January 2016

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Central Valley Business Journal

January 2016