Cvbj march 2015 final lowres by Central Valley Business Journal

March 2015

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MARCH

2015 VOL 10 • NUMBER 7

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

Startups try to get angels on their side

Auto Sales Car sales start off the year in high gear.

By ELIZABETH STEVENS Business Journal editor estevens@cvbizjournal.com

30,000-square-foot industrial building at the Stockton Airport Business Center on Pock Lane. The company will launch distribution and warehousing activities in March and begin manufacturing in June. Turkhan Foods bought a 126,000-square-foot industrial building on Industrial Drive that will house almond processing and a distribution center. Administrators said the area has a variety of attributes that make it

MODESTO -- On a Thursday evening in early February, two dozen Modesto area business people gathered at Dewz Restaurant to hear two Fresno entrepreneurs pitch their businesses. One Sense is an app trade show organizers can use to manage events. The other business, AquaCents has a landscaping machine that injects hydrogels into soil to improve water efficiency. Each had 15 minutes to make their pitches. A second round followed for questions and answers. “They’re here to paint the rosiest picture possible,” said Valley Angels group member Stu Gilman, CEO of External Resources, a professional services company. One Senses’ Matt Tymm told the group his app will help market trade shows, capture leads and track attendees’ traffic to show which booths are most popular and where potential customers spend the most time. He was looking to raise $500,000. In the subsequent question and answer session, group members asked Tymm about his marketing plan, the value of the company and how he planned to the use the money. Tom Delany, founder and CEO of AquaCents explained that while hydrogels have been used in landscaping and agriculture for years, his machine is what’s new. He plans to sell licenses to landscape contractors. He also wanted to raise $500,000. The group asked how Delany planned to scale his business and enforce his licensing

Please see AIRPORT Page 10

Please see VALLEY ANGELS Page 14

Page 6

New Asparagus Festival Carol and Tony Noceti try to revive a Stockton tradition.

Page 19 BUSINESS JOURNAL PHOTO

The airport is trying to attract more affordable air service such as Allegiant Airlines, which offers service to Las Vegas and Phoenix.

Ready for takeoff

Stockton airport offers more than flights

Ready to Work How Modesto high schools are preparing teens for jobs.

Page 26

WHAT’S INSIDE Publisher’s Notes.............Page 2 On the Web.......................Page 4 Briefs......................Pages 44, 45

By KENT HOHLFELD Business Journal writer khohlfeld@cvbizjournal.com

STOCKTON -- The Stockton Metropolitan Airport is becoming known as more than a place to get cheap fares from cut-rate carrier Allegiant Airlines. While the low-cost carrier continues to be the only airline offering passenger service from the municipal facility, more businesses are locating in the area. “We have had two busi-

nesses recently start operations here,” said Stockton Municipal Airport Director Harry Mavrogenes. “Red Cedar (a spinoff of Duraflame) and we have a commercial laundry coming here.” That laundry, Aramark, will join Turkhan Foods and Shepard Bros. which have purchased sites and are in the process of locating facilities near the airport. Shepard Bros., a chemical company, recently completed the purchase of a

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March 2015

Superstars shine in the Valley Greetings, I’m proud to announce the Central Valley Business Journal Book of Lists is now available. Hot off the press! It’s packed with valuable information that shines a bright star on our local businesses in Stanislaus and San Joaquin counties. Supplies are limited. Get yours today! A big thank Sharon you to my Alley Calone staff for your hard work on this project. I’m very proud of you. You’re all superstars! I’m happy to say that the Central Valley Business Journal has expanded our circulation into Merced County. I’m looking forward to reading about some exciting stories from our southern neighbors. The economic indicators are pointing straight up in the Valley. We are on the rebound and everyone’s buzzing. Once again we had the chance to hear an economic forecast delivered

Publisher’s Notes

by economist John Mitchell. He shared lots of good news. He’s truly an amazing economist, a pleasure to watch. Thank you Bank of Agriculture and Commerce for continuing to host this event. It’s truly a highlight of my year. During the last week of February, I attended the “The Economy and You” at the Gallo Center for the Arts in Modesto, presented by United Capital and featuring businessmen Dan Costa, Joe Duran and Mike Zagaris. What an enjoyable evening. We heard amazing success stories from these three business leaders. They told of hardships they encountered along the road to success and gave some sound advice -- if at first you don’t succeed, try, try again. I can certainly relate to that. Long hours, hard work, never give up, be determined, stay positive, have integrity, keep your eye on the goal and surround yourself with positive, knowledgeable people -- a winning combination! There are many opportunities available. Thanks to record-low interest rates, business loans and mortgages are more affordable than ever. If you have a great idea for a business, now is a good time to get started. In closing I’d like to take a moment and reflect on the passing of an in-

credible young man, Tucker Larson. Tucker was only 6 years old when he was first diagnosed with cancer, but Tucker was a fighter. He battled the disease for 19 years, never giving up, always focusing on the gift of today. Two days after his 25th birthday, he succumbed to the disease, ready to go to our Lord. Throughout his celebration of life ceremony, I heard many heartfelt stories of Tucker -- the great love he had for his family, how he gave advice freely with wisdom, how positive attitude and, of course, video games kept him going. He had friends who loved him and a family who adored him. He was their rock. Tucker had a bucket list and checked each item off one at a time until his list was fulfilled. His big aspiration was to be part of the Stockton Thunder. He realized that dream. His sister Alyssa (the Business Journal’s rockstar receptionist) adored him. His father Steve Larson, (grants manager at the Port of Stockton) rarely left his side. They traveled to Europe, cooked, connected and lived as one. They were best friends. In fact young Tucker passed away on Feb.6 in his father’s arms with his sister standing nearby. Not often have I heard of such great love and devotion. I aspire to live the life Tucker achieved. His most assuredly saw his

PHOTO CREDIT ALYSSA LARSON

Tucker Larson was the honorary assistant coach for the Stockton Thunder during its 2012-13 season.

glass as half full, despite the harsh reality of his future. Steve Larson (his dad) is my hero, a man with a heart the size of Texas. This world needs more dads like you! Godspeed Tucker, see you on the other side! God Bless America, Sharon Alley Calone

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March 2015

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UC Merced gets engineering, humanities grants By NORA HESTON TARTE Business Journal writer nhestontarte@cvbizjournal.com

MERCED -- The University of California, Merced received two gifts in December and January to further education in the humanities and engineering while also benefiting the community. The first gift, $100,000 from Wells Fargo bank, will aid engineering students in designing solutions for realworld problems. The second, a $500,000 anonymous donation, will be used to establish a presidential chair for the humanities department. Engineering grant This isn’t the first time Wells Fargo has donated to the university’s Engineering Capstone Program, which started in 2013. The bank’s contributions total $175,000. “The company is a longtime campus supporter, providing funds for scholarships before the campus was even built,” said UC Merced’s School of Engineering Interim Dean Erik Rolland. Wells Fargo made the grant through its Clean Technology and Innovation program which is designed to fund innovative solutions using clean technology. UC Merced will use the grant for its Water, Energy, Food Challenge (WEF), a student-led innovation com-

petition which solves local challenges problems laid out by community and agriculture leaders. “One example is Sweet Steering, where the student group designed both a software and a mechanical device used to keep a local farm’s harvester on track so it doesn’t crush its sweet potato crops,” Rolland shared. “The goal was to reduce waste and minimize pollution.” Students who participate in the WEF Challenge will compete with their designs at the university’s Innovate to Grow competition. “Fostering economic development to accelerate the global ‘green’ economy is part of Wells Fargo’s vision and values,” according to Sandy Raco, Wells Fargo Central Valley market president. This specific donation will fund six teams made up of college seniors. The $100,000 has been allocated to fabricate the teams’ designs, laboratories, supplies and equipment, travel for students and clients, staffing to assist with the program and prize money for the teams. Overall, the program is preparing students for careers in the Valley. “The entire Capstone and Engineering Service Learning programs are giving students hands-on experience they wouldn’t otherwise get,” Rol-

PHOTO COURTESY UC MERCED

Students in last year’s capstone program designed a mechanical and software device that helps steer sweet potato harvesting equipment more precisely so it does not smash the crops.

land said. “They learn how to work with clients, manage projects, work on deadlines to execute their designs, work as teams, make presentations and, potentially, commercialize their innovations.” Wells Fargo donated the gift as part of a larger goal, $100 million in donations for environmentally focused

nonprofits, colleges and universities by 2020. Humanities donation The $500,000 donation for the humanities department was matched by one of the university’s funds from the UC Office of the President. It Please see UC MERCED Page 15

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ONLINE EXTRAS

The Lists for April

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Valley auto sales start off year in high gear By KENT HOHLFELD Business Journal writer khohlfeld@cvbizjournal.com

STOCKTON -- Auto sales in the Central Valley are finally shifting out of neutral. Area car dealers are seeing large sales increase, some witnessing sales growth not seen since before the Great Recession. “We’re up 30 percent year over year,” said Stockton’s Big Valley Ford Managing Partner Steve Kubitz. “We have seen increases since 2011, but we just had our best January since 2006.” Kubitz credits several factors for the increased Kubitz activity. A big part of the boost for Ford dealers has come from new models of popular cars such as Mustangs and crossovers. “We sell 60 to 70 of the old models,” said Kubitz. “With the new ones, we are going to be selling 200 this year. A lot of our sales have been driven by the new models.” Gas prices were also providing at least a psychological lift. Over the winter they sunk to levels not seen since 2009. “I think it’s given people more money in their pocket,” said Kubitz. “It’s definitely helped.” One thing gas prices haven’t changed is the kind of vehicles that people are buying. “We haven’t really seen gas prices change the cars people buy,” said David Halvorson, president and owner of American Chevrolet in Modesto. “We’ve always sold the SUVs and trucks because it’s a different lifestyle out here than in the Bay Area. Those vehicles just serve our lifestyle better.” While American Chevrolet hasn’t seen the kind of sales jump experienced in Stockton, there has been a noticeable bump in business.

“We had a nice increase [last year], 14 percent and so far we’re up about 12 percent this year,” Halvorson said. “It’s not at the highs it was pre-recession, but it’s certainly more fun than it was.” The biggest part of that increase can be attributed to easier financing. Combine that with the fact that the recession forced people to keep cars much longer than they might have wanted, and many people are getting off the fence and making purchases. “The banks are getting a lot more liberal in their lending practices again,” said Halvorson. “There is also an uptick in credit union lending.” The hyper competition among lending institutions has been helpful for consumers and put more buyers in showrooms, dealers said. “We did $3.6 million in car loans in January,” said Financial Center Credit Union President Michael Duffy. “You have a larger number of lenders with a lot of money out there.” Financial Center Credit Union has seen its lending go up approximately $400,000 per month with the latest sales boom. Duffy said competition has led to situations where buyers can often shop around and find very low interest rates. “Before, the only one we had to worry about was when the dealer would make Duffy a special promotional rate,” said Duffy. “Now you have those same options from the dealer, and you have many more indirect options which puts very high pressure on pricing these loans.” Auto loans are making up a large part of Financial Center Credit Union’s loan portfolio. Currently $76 million of a $186 million loan portfolio comes from auto loans. Nationally auto loans make up approximately 32 percent of all loans made by credit unions. While credit unions can sometimes

BUSINESS JOURNAL PHOTO

American Chevrolet said sales were up 14 percent last year and 12 percent so far this year.

provide better deal for consumers, they often struggle with the perception of being closed off to the public at large. “It’s more open than it used to be,” said Geeta Avila, director of lending at Mocse Federal Credit Union. “We’re kind of a little secret.” Many credit unions that started to serve a particular industry or employee group have expanded to serve people within a geographic area. “Many people don’t realize they can join a credit union,” said Avila, whose organization serves people in Stanislaus, Tuolumne, Mariposa and Merced counties. While credit unions lack the size of large traditional banks, they are also free of stockholders which can give them more freedom in their lending practices. Whether borrowers choose a traditional bank or a credit union, everyone agrees that lenders are now more motivated to make loans than they have been in recent years. “Because of the interest rates, we need to make more loans to get the

same return on the money we lend than we did several years ago,” said Avila. “For every one loan we made in the past, we need to make three now.” Buyers are winners of that competition, getting rates that would have been impossible just a few years ago. “It seems like everyone who comes in has a pre-approval in their pocket,” said Gregg Arends, director of sales at Lodi Toyota. “There is no doubt, car sales are great right now.” The lending boom doesn’t appear to be ending soon as the Federal Reserve has indicated its intention to keep rates low for at least the next year. “If you have have super good credit, you can get money cheap,” said Halvorson. “There is no doubt the institutions are fighting over customers.” Even the “subprime” loans are becoming popular again with some banks bundling car loans to be sold off similar to the way that home loans were bundled in the mid 2000s. “What will be interesting to see is are they [lenders] going to stay true to the principles they went back to [during the recession],” Halvorson said.

March 2015

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University’s Sheley calls for business help President urges cities to press lawmakers on ed STOCKTON -- President Joseph Sheley of CSU Stanislaus visited the university’s Stockton campus Feb. 23 and brought a message for the business community. He says California needs more people to graduate from college, and it will take teamwork to make it happen. “I’m pretty passionate right now especially about raising the collegegoing numbers for the Central Valley,” Sheley said. “Never mind each of our little pieces. The whole darn Central Valley. And we need not to be pitting everybody against each other.” Sheley made his remarks to a group of 75 business people at a Meet the CEO event, presented by the San Joaquin Partnership. Mike Ammann, the Partnership’s president and CEO hosted a question and answer session that covered the state of higher education in California and what business can do to help. Sheley said businesses want to see college graduation rates in the 30 percent range when they look at cities in which to locate. He said the percentage of people in the Central Valley with college degrees ranges between 15 and 20 percent. Ammann asked Sheley about As-

semblywoman Susan Eggman’s bill that would create a study to determine whether Stockton should have its own CSU campus. Sheley said anything that promotes discussion about higher education in the Central Valley is a good thing, but he also cautioned that building new universities is difficult when money is tight. “[The bill] says, ‘Let’s do the study.’ It didn’t say, ‘Put one here.’ It said, ‘Why isn’t there one here? But it did say, ‘Let’s be smart about this and let’s do the study.’” Sheley said. Before the Q and A session, business leaders took tours of the CSU Stanislaus Stockton Center, which is located in the city’s Magnolia neighborhood and serves about 500 students. The Center houses nine undergraduate programs, three master’s degree programs and four credential programs as well as MBA courses and a comprehensive Executive MBA program. Among the center’s offerings is the Accelerated Second Bachelor of Science degree in Nursing in which students who already have a bachelors degree can earn another in 18 months and become a registered nurse. Sheley said the university has to be strategic in deciding which programs to offer, and Stockton is a center for health care. “You have to put programs in place … that make sense for the commu-

SACRAMENTO – Lawmakers introduced a bill in early February that would make contributions to California’s college savings plan tax deductible in order to encourage parents to save for college. “This is California’s opportunity to help parents saving their own hardearned dollars to keep more of that money. This will be a great tool for middle-class families who are planning for their children’s future.” said Assemblyman Jim Patterson, R-Fresno, one of the four lawmakers behind the bill, AB 209. Patterson was joined by Assemblymembers Melissa Melendez, R-Lake Elsinore; Frank Bigelow, R-O’Neals and Bill Brough, R-Dana Point. AB 209 would make contributions to ScholarShare, California’s 529 college savings plan, deductible from state taxes. “Too many families don’t qualify for a dollar of financial aid but still can’t afford soaring costs of college.

This bill provides incentive to parents to start saving towards their children’s futures. We have to relieve the burden of debt on students coming out of college,” said Brough. “College savings plans have helped many middle class students pay tuition costs they may have otherwise not been able to afford,” said Bigelow. “As those costs continue to soar, our bill would help offset those costs and make it easier for parents to invest in their children’s future.” Scholarshare was established as a way to encourage early college savings for future higher education expenses. According to the College Savings Foundation, the number of Americans saving in 529 plans has grown from two million in 2001 to seven million in 2014, and 80 percent of them are middle class. This year, there are more than one million middle class students currently enrolled in college who are benefitting from a 529 plan.

By ELIZABETH STEVENS Business Journal editor estevens@cvbizjournal.com

Bill would encourage early college savings

ELIZABETH STEVENS/CVBJ

President Joseph Sheley and Partnership CEO Mike Ammann discuss how business can help education during a Meet the CEO event.

nity,” he said. Sheley called on the business community to advocate for higher education in Sacramento, but he said cities need to stop competing with each other. “Here’s what business needs to do: they need to get together and stop trying to pick each other off and be the winner,” Sheley said. “I’ve been talk-

ing to legislators. This is bi-partisan. They get it. But they need the business side. They need home run hitters from right here and home run hitters from Bakersfield and from Fresno and Modesto to go talk to the governor and the legislature and say, ‘You want to change California? Well you’ve got this whole human capital. Let it be developed on the inner corridor.

Central Valley Business Journal

March 2015

Marsh calls for tax hike for public safety By ELIZABETH STEVENS Business Journal editor estevens@cvbizjournal.com

MODESTO -- Mayor Garrad Marsh called for a half-cent sales tax increase to pay for public safety and economic development in his State of the City address Feb. 19. Saying such a tax increase would amount to the cost of a cup of coffee, or about $4 every month, Marsh called on residents to press the City Council to put the proposal on November’s ballot. “I love our city, but I know we are Marsh not all we can be,” Marsh said. “Without greater revenues, Modesto will not be as safe as you deserve, will not address gangs and drugs, child abuse and family conflicts, homelessness and vagrancy and petty crimes.” The proposal comes less than 18 months after Modesto voters narrowly rejected a one-cent sales tax increase. In a panel discussion after the ad-

dress, Marsh said he believed the city overreached with Measure X by asking for too high an increase and laying out too broad a purpose. “We tried to do a one-cent a year ago and part of that to do both roads and public safety and economic development and parks and trees, and it was overreach,” Marsh said. “It failed just by a small margin, but it failed. I think that was too big and too much of an effort.” Currently, Modesto’s sales tax is 7.625 percent. A half-cent increase would push it to 8.125 percent, the same as Ceres and Oakdale and well below Stockton’s 9 percent. The call for a tax increase came toward the end of Marsh’s half-hour long speech. Earlier he talked about what the city had done to cut back expenses, saying the city now has a truly balanced budget for the first time since 2000. He said the firm holding Modesto’s utility bonds applauded the city as the “fiscal shining star of the Valley.” However, he said fiscal responsibility had come at a cost. Marsh said the police force has lost officers to other cities and he ticked off the list of senior management positions that turned over last year: city manager, deputy city manager, city attorney, fire chief, it director, public works director, utility director, park director, deputy

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Marsh told business leaders that downtown Modesto is poised for revitalization thanks to transit center and courthouse projects.

parks director and streets manager. In the win column, Marsh said the city was a leader in pension reform. He said five of the city’s six employee groups have reached contract agreements, which require employees to carry their own pension costs. Modesto has also reformed health benefits for retirees.

“Fifteen months ago our future liability for retiree health exceeded $100 million with annual costs increasing every year,” Marsh said. “Now we have more than sliced our retiree costs in half.” He also said the downtown area is poised to flourish with a new courthouse and transportation center planned.

March 2015

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March 2015

AIRPORT Continued from Page 1

attractive for industrial uses. “First of all there are a couple areas on airport land where people lease the land,” said Mavrogenes. “They have built commercial buildings that are mostly full.” He said the fact that the land is relatively cheap makes it attractive to companies needing large buildings. The surge of businesses locating in the area isn’t likely to slow down in the near term. There is a proposed industrial park on 300 acres of what is currently farmland. Improved interchanges on Interstate 5 and the expansion on Highway 99 also make access to the area easier. San Joaquin County’s growing warehouse and logistics industries are also a big draw. San Joaquin County’s proximity to the Bay Area, inland port and infrastructure such as Interstate 5 and Highway 99 make moving products a simple process. “We are a great area for logistics and any kind of industries related to moving goods,” said Mavrogenes. “We have two intermodal facilities in the area. That is a strong suit.” He also believes the airport could be an attractive destination for cargo flights to and from China and Asia. The airport has a 10,000-foot runway that can accommodate large airplanes. “We have the land base, and we have the infrastructure to build a strong transport market,” he said. “We have no residential houses built up around us, so we have no curfews or restrictions.” Passenger service Despite the growing industrial uses for the airport, the key purpose of the facility remains moving people, not just products. In 2014, approximately 80,000 passengers flew from Stockton. “The focus is on passenger air services,” Mavrogenes said. “How do you get people to major hubs and beyond? I am trying to lean toward lower cost carriers. Ultimately, I would like to see us be like the outlet mall of airports. I would like to see a future where if you want to get an $800 flight to Europe or head to a domestic hub, you come to Stockton.” In the near term, Mavrogenes hopes to entice a carrier to begin offering service to a hub such as Los Angeles or possibly Salt Lake City. Wes Rhea, CEO of VisitStockton, said that while budget-conscious leisure travelers might not use the airport to travel to Stockton, he believes better air service would certainly benefit business travelers in the Central Valley who care more about convenience than cost. “You’ll see a lot of folks who want to travel as directly as possible to the location, especially when they don’t have to worry about driving another 45 minutes or an hour from the home airport if they’re doing business here in the Central Valley,” Rhea said. “If we could fly to some hub like San

Francisco or L.A., we’d basically be connected to everybody.” On the tourism side, Stockton has been hosting an increasing number of national sports tournaments. Rhea said convenient air service would help attract more of that kind of business to the city. “A lot of these teams travel together, and they may arrive in groups of 10 or 15,” Rhea said. “It’s a lot easier for them to arrive at the home city than to have to worry about getting their rental vehicle in another city like Sacramento or Oakland and travel across to here.” Mavrogenes’ second goal for passenger service is international travel. While the airport has not provided international service in the past, both Allegiant and Volaris airlines have shown interest in providing service to Mexican destinations such as Puerto Vallarta, Cabo San Lucas and Guadalajara. The large Hispanic population in the Central Valley makes those desirable destinations. “Increased passenger service would mean more activity for everyone in the county,” said San Joaquin County Supervisor Steve J. Bestolarides. “Transportation helps all the warehouses as well.” Obstacles to increased passenger service are numerous. Modesto CityCounty airport was the most recent area airport to have passenger service to a major hub. Last year it offered three flights per day to San Francisco, but constant delays made connections difficult. The service was discontinued in June 2014. While the proximity to the Bay Area helps industrial efforts, it hurts the chances of getting passenger service. There are four major airports with official drive times of less than two hours from Stockton. Getting community involvement beyond Stockton in areas such as Manteca, Tracy, foothill communities and even Modesto could help chances of landing passenger service. “I think the 800,000 people in our market deserve better,” said Mavrogenes. “I think within a year, we will have another airline here.” The region’s leaders have considered combining San Joaquin and Stanislaus counties’ efforts to land passenger service. So far, nothing has materialized beyond speculation. “I have considered of feasibility of meeting with Stanislaus County,” said San Joaquin County Supervisor Chuck Winn. “Where you can collaborate and where you can have a win-win situation, I think there are opportunities to explore that.” Continuing improvements both to the airport and in the surrounding area are keys to the airport’s continued success. “We have to look at where are we going to be 10 or 20 years from now,” said Bestolarides. “We have to make sure the airport remains a viable resource in the future.”

March 2015

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Stanislaus County businesses celebrated for adding new jobs MODESTO -- Two dozen businesses were honored Feb. 26 for expanding and adding jobs to Stanislaus County’s economy in 2014. The Stanislaus Business Alliance hosted a luncheon at Centre Plaza where the businesses received awards for, not simply hiring, but adding at least 10 positions. “To celebrate positive successes is really important not only to honor the companies that created the jobs, but also to send a message to the community that good things are happening in our county,” said Stanislaus Business Alliance CEO Dave White. The businesses honored were 5.11 Tactical, Adecco Staffing, management services company ABM, Advanced Linen Service, trucking company Antonini Enterprises, Blue Diamond Growers, John Deere agricultural dealership Belkorp Ag, COIT Cleaning and Restoration, DD’s Discounts, food safety company DFA of California, Doctors Medical Center, bakery Flowers Foods, vinyl window manufacturer Gilwin Company, Gro-

cery Outlet, office furniture maker HPL Contract, Kidz Ministry Foundation, Mexican products store La Perla Tapatia, medical billing service MedAmerica, Rank Investigation and Protection, paving company RFC, Bell-Carter Packaging, Center for Human Services and die shop USS. The Business Alliance found the businesses through the economic development surveys it conducted in 2014 as well as through its partnerships with the chambers of commerce in Stanislaus County. White said he was not surprised so many businesses had expanded. In fact, he believes there are more businesses that added jobs. “I think this is the tip of the iceberg. I’m sure there are other companies that we didn’t recognize that have added more. We just weren’t aware of them,” White said. About 200 people from Stanislaus County’s business community attended the luncheon, which the Stanislaus Business Alliance hopes will become an annual event.

ELIZABETH STEVENS/CVBJ

La Perla Tapatia receives its award for adding jobs from Stanislaus County Supervisor Terry Withrow (left) and Stanislaus Business Alliance CEO Dave White (far right).

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COLLEGES AND UNIVERSITIES In San Joaquin and Stanislaus Counties Ranked by Enrollment. Ties are Listed in Alphabetical Order. Rank

School Name Address

Web Address Phone

Full-time faculty Part-time faculty

Total Enrollment

247

18,500

Degrees

Accredited By Type of Institution Tuition

Year Established

A.A. and A.S.

Accrediting Commission for Community & Junior Colleges $46 per unit

1921

1963

Modesto Junior College 435 College Avenue Modesto, CA 95350

mjc.edu (209) 575-6067

San Joaquin Delta College 5151 Pacific Avenue Stockton, CA 95207

deltacollege.edu (209) 954-5151

500 total

18,000

A.A and A.S.

ACCJC Public two year community $36 per unit/resident $46 per unit/nonresident

California State University Stanislaus One University Circle Turlock, CA 95382

csustan.edu (209) 667-3122

265 178

8,305

Baccalaureate, teaching credentials, Master’s and other professional studies

WASC Public $254/unit/semester

1960

University of the Pacific 3601 Pacific Avenue Stockton, CA 95211

pacific.edu (209) 946-2011

459

6,717

Bachelor’s, Master’s, First Professional and Doctoral

WASC Non-Profit $1,643per unit (approx. $25,179 per semester, plus fees)

1851

heald.edu (209) 477-1114 (209) 416-3700

WND 8

1,395 847

Associate of Applied Science and Associate of Arts Degree

WASC Private, two-year WND

1863

1,059 (July 2010-June 2011)

Certificate and Associate of Science Degrees

WASC Private $19,000 per year

1977

1,020

Juris Doctorate, L.L.M., public policy and internal business

American Bar Association Non-Profit $1,458 per unit $42,972 per year

1924

960

A.A., B.A. and M.A., Teaching Credentials

WASC Private $316/quarter unit $1,422/quarter unit course

1972

WASC, Non-Profit Private $346 per quarter unit $1,240.00 min/tuition charge

1896

Heald College 1605 E. March Lane Stockton, CA 95210 5260 Pirrone Court Salida, CA 95368

San Joaquin Valley College 5380 Pirrone Road Salida, CA 95368

sjvc.edu (209) 543-8800

22 19

UOP McGeorge School of Law 3200 Fifth Avenue Sacramento, CA 95817

mcgeorge.edu (916) 739-7191

51 72

National University 3520 Brookside Road Stockton, CA 95219

nu.edu (209) 475-1400

Humphreys College 6650 Inglewood Avenue Stockton, CA 95207

humphreys.edu (209) 478-0800

100

900

Certificates, Associate’s, Bachelor’s, Master’s and Juris Doctor

Kaplan College Modesto 5172 Kiernan Court Salida, CA 95368

modesto. kaplancollege.com (209) 543-7000

50 total

500

Allied health and criminal justice

ACCJC Private $21,000 per year

2008

UEI College 4994 Claremont Avenue Stockton, CA 95207

uei.edu/one (209) 774-5332

430

Business admin, computer sytems tech training, criminal security admin, dental & medical asst., medical billing, pharmacy tech training

ACCJC Private $16,600 (8 mos)

2011

Brandman University 5222 Pirrone Court Salida, CA 95368

brandman.edu (209) 545-1234

6 3 many adjuncts

400 +

Associates, Bachelors, Masters and Credentials

WASC Private, Non-profit $360/ B.A. per unit

1958

Teachers College of San Joaquin 2857 Transworld Drive Stockton, CA 95206

teacherscollegesj.org (209) 468-9155

11 65

240

M.Ed., Teaching credentials, administrative services credential

WASC (pending) Public $12,800 per semester (includes books, materials and an IPad)

2009

MTI Business College 6006 N. El Dorado Street Stockton, CA 95207

mtistockton.com (209) 957-3030

17 1

190

Office and legal administration, medical, clerical and microcomputer specialist

ACCSC $11,600 10 months

1968

Carrington College California 1313 W. Robinhood Drive, Ste. B Stockton, CA 95207

carrington.edu (209) 956-1240

Certificate and Associate degrees

ACCJC Private $325-$798

1967

University of Phoenix 5330 Dirron Road Salida, CA 95368

phoenix.edu (800) 266-2107

Associates, Bachelors, Masters and Doctorate

North Central Association of the Higher Learning Commission Private $8,000 to $12,000 per year

1976

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 02/2015

March 2015

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Honorary Alumni Award Peter Ottesen

Central Valley Business Journal

March 2015

Pacific’s Student Investment Fund passes $3 million mark STOCKTON — University of the Pacific students are outperforming some of the top investing indicators on Wall Street, the university announced. The Student Investment Fund Portfolio reached the $3 million benchmark in February. The fund, which was valued at $2.5 million one year ago, hit the $3 million mark in early October, dropped then returned above $3 million again last month. The fund was started with a $1 million donation by Pacific alumnus and Bank of Stockton CEO and President Douglass M. Eberhardt in 2007 and is managed by students from Pacific’s Eberhardt School of Business. It is now one of the largest student-run funds in the western United States, has had a 63 percent return since its inception and has returned more than $300,000 to the university. Larry Watts, a Pacific almnus, created a fund modeled on the student investment fund for Morgan Stanley,

CVBJ

making it the first commercialized student-run fund in the United States. By managing the fund, students learn how to carefully analyze potential investments using the same financial techniques as professional investors. They also take responsibility for individual S&P 500 sectors, such as health care, energy and commodities, and analyze their fit within the greater portfolio. “The fact that the Student Investment Fund has surpassed $3 million in such a short period of time is a tremendous testament to the instructors who have taught the course and the students who have embraced the learning opportunity,” said Eberhardt, in a press release. “The primary goal of the fund was to allow hands-on learning, with the goal of achieving success. With that success, we added a philanthropy component to teach the students to give back to the university. The concept is working quite well and I am extremely proud of the results.”

VALLEY ANGELS Continued from Page 1

agreements. After presenters left the room, group members scored the presentations, discussed pros and cons and decided whether to invest. This was the eighth time the Valley Angels investors group listened to pitches. The group formed two years ago to provide advice and possibly funding to fledgling Friedman businesses in the Central Valley. Members said the goal was to provide practical help to new businesses, create more jobs and encourage entrepreneurship in the region. “Just to have a few more wins to inspire some people to make that jump,” said David Darmstandler, co-founder of Data Path. According to the Angel Capital Association, angel investors are affluent individuals who put their own money into a startup in exchange for an equity share of the businesses. In addition, angel investors often share their business experience and sometimes sit on the board of the new company. Investors make their money back when the entrepreneur grows the business and exits, usually through a sale or merger. Unlike some angel investor organizations, Valley Angels don’t invest as a group. Members hear presentations and decide if they want to invest as individuals. The value of the group comes from

its collective experience and the fact that they can share the work of vetting and advising startups. Valley Angels has seen presentations from eight startups, but members have invested in just one company, Prescient Surgical. That company has developed technology to help prevent surgical infections. Convincing angel investors to put money into a startup is hard work, both for the entrepreneur and the investor. Investors perform due diligence to be sure a business idea is all the entrepreneur says it is. Friedman said a common problem his investors’ group sees is that entrepreneurs underestimate how much money they will need to start and grow their businesses. “They figure, ‘I’m going to sell something and I’m going to get money.’ And often you sell things and you don’t get your money for 30 days,” Friedman said. “Many of them do not have a good understanding of the business cycle and the cash requirements to get through it.” He also said there is wide variation in the quality of presentations, so the group often advises entrepreneurs to work with Mysty Rusk from the Small Business Development Center at UC Merced. On this night, no one from the group was ready to invest their money, but that doesn’t mean they never will. “I’ve been in some of these presentations where there was never a chance ever,” said Lou Friedman. “We felt good about these ideas. They just weren’t there yet.” The Stanislaus-Merced Valley Angels Group is looking for new members. It invites qualified investors to learn more and submit applications by visiting its webpage at gust.com/organizations/stanislaus-merced-angels.

March 2015

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Gas prices rise again after steep decline STOCKTON -- Those sinking gas prices that drivers across the nation enjoyed during the winter months are quickly becoming a thing of the past. The cheapest prices in the Stockton and San Joaquin County was $2.45 per gallon as of March 2 while most stations across the area were near or above $3, according to gas price web site gasbuddy.com. Modesto’s cheapest station checked in with a $2.81 per gallon. Like San Joaquin, most stations in Stanislaus County were showing prices near $3, according to gasbuddy.com. One month ago, many area stations were under $2 per gallon.

CVBJ

UC MERCED Continued from Page 3

makes a total $1 million endowment to enhance vision and research for the school’s humanities department. This is the university’s first position created by University of California system President Janet Napolitano’s Presidential Match for Endowed Chairs program. That program allocated $4 million per UC campus last year in an effort to garner donations for endowed faculty chairs. The Presidential Endowment Fund is made up of private donations Napolitano can use at her own discretion. It provides money for the matching program. In a press release last year, Napolitano said she started the program to attract the best faculty for the UC system. Endowed chairs will not only fund the chair holder’s scholarly activities but will also provide money to support faculty salaries and graduate fellowships. “That kind of guaranteed support gives UC [Merced] a competitive edge for recruiting faculty who are the very best in their field,” said Mark Aldenderfer, dean of the School of Social Sciences, Humanities and Arts at UC Merced. The chair has not yet been filled, but the department knows what it is looking for. “The person selected for this position will be key in providing leadership and developing a vision for humanities research at UC Merced,” Aldenderfer said. “They will work closely with our current humanities faculty and the Center for the Humanities, and together they will explore ways in which our activities can be extended on campus and in the community.” The position will also provide necessary support for the Valley, as it will help the university bridge funding gaps in state support. As the school begins the hiring process, it is most interested in the candidates’ field of study, requiring someone whose specialty falls within the humanities department. In addition, the university will look at their scholarly track record as well as their ability to lead and innovate.

In the Sacramento area, gas prices spiked 89 cents per gallon over the last month to stand at an average of $3.22 per gallon. Drivers in the Los Angeles area were paying an average of $3.51 per gallon, March 1, up from $2.95 one week earlier. Both Los Angeles and San Francisco saw prices spike an average of $.20 per gallon, between Feb. 26 and 27. That was a one-day record

jump, on the gasbuddy site. The national average was $2.43 per gallon on the first day of March according to AAA. That average increased $.13 per gallon in the final week of February. The nation has seen its average gas price increase for 35 days in a row. On Jan. 26, the national average gas prices hit a low of $2.03. One of the key reasons behind the

price surge is a spike in oil prices that ranged from $4 to $12 per barrel, depending on oil type. Gas prices also usually increase this time of year as refineries conduct seasonal maintenance and switch blends of gas in preparation for the summer driving season. An explosion at the ExxonMobil refinery, near Los Angeles, was also blamed for the rise in prices in California.

Central Valley Business Journal

March 2015

What you need to know about SBA loans By ELIZABETH STEVENS Business Journal editor estevens@cvbizjournal.com

The U.S. Small Business Administration (SBA) and the National Credit Union Administration (NCUA) announced a partnership in February aimed at making smalldollar SBA loans more readily available to entrepreneurs. Few credit unions in Northern California make SBA loans. Lopp The only one in San Joaquin County is Premier Community Credit Union. Business Journal editor Elizabeth Stevens talked with the credit union’s Director of Business Gary Lopp. CVBJ - When did Premier Credit Union start making SBA loans? GL - We really started doing them about a year and a half ago. CVBJ - How long have you worked at Premier? GL - Three years. I wrote all the policies and procedures. We also do regular business loans. I buy participation loans from other credit unions.

I wrote all the policies and procedures for the entire program. CVBJ - In a given year, about how many do you do? GL - Last year we did six loans. We’re very kind of picky and choosy about the ones we do. But what we have seen is that the big banks really aren’t taking care of business. The big banks only want to talk to somebody if they want to borrow $500,000. I think the smallest loan I did was $50,000, and I think the largest I did was $250,000. CVBJ - What is the difference between a regular business loan and an SBA loan? GL - Typically SBA loans are used if someone wants to start a business from scratch. We’ll use an SBA loan because SBA will guarantee the loan for up to 85 percent, and that just leaves us 15 percent unguaranteed. CVBJ - Is there a difference in the amount of money that you have to put down? GL - 7A loans, if the loan is $150,000 and under, they’ll guarantee 85 percent. Over that, they’ll guarantee 75 percent. If we use those type of loans with a government backing, we can make loans to folks and not be in a pinch should they default. The government pays us either 85 or 75 percent

of the debt. CVBJ - What are some of the reasons a business would go to a credit union as opposed to a bank? GL - They’re going to get a lot more individual service. You go to a big bank, you’re just a number. As soon as they’re done servicing you, you’re done. They move on to the next customer. I’m a part of the community. I go out and have dinner at their restaurants, lunch at their restaurants. I go out and talk to them. I see them. It’s a part of my regular regimen to go out and see these folks after I do these deals. If they have any questions or problems, they’re free to call me any time. My cell phone is on my hip 24/7. I’ve been doing this for a long time. I used to do it for big banks and got frustrated that they didn’t take care of business the way they should. That’s why I left the big banks. CVBJ - What can they use the money for? 2:04 GL - For the 7A program, they can use it for working capital, equipment, furniture and fixtures, to buy a business, start a business. The 504 loan program is for the purchase of commercial real estate. They can buy a commercial building with as little as 10 percent cash down.

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CVBJ - Are businesses more interested in getting SBA loans now? GL - Yes, I’ve seen more interest in probably the last eight to 10 months. It seems like the economy is recovering some. CVBJ - How easy is it to get an SBA loan? GL - It’s easier than it used to be years ago. Years ago it was just reams and reams of paper. SBA still requires some paper for the input, but we’re not required to send a paper file and have it sit on somebody’s desk for four weeks to get an answer. Typically, if we input it, we can get an answer within probably 72 hours. CVBJ - How long does the whole process take? GL - From the day you apply to the day we can fund it, it can be as little as 30 days. There’s a lot of hoops you have to jump through depending on what kind of collateral you take. Sometimes we’re required to take someone’s house as collateral, so we need an appraisal, title work, that kind of thing. My goal is to help out as many small businesses as I can, and I consider small businesses as folks who want to borrow $150,000, $50,000, $75,000. You know, they don’t need to borrow half a million dollars.

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March 2015

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LODI — The Lodi Boys and Girls Club has been providing a safe and fun place for children to go after school since 1963. Today it serves more than 500 young people through an assortment of programs. “Everyone here has a passion for this work -- helping kids, doing right by them, their parents, the community and the club,” said Edwin Cotton, the club’s executive director and himself a former Boys and Girls Club member. The national Boys and Girls Club dates back to 1860 in Hartford, Connecticut. In 1906 several Boys Clubs decided to affiliate, and by 1931 the group became the Boys Clubs of America. To acknowledge that girls are part of the organization’s cause, the name was changed to Boys and Girls Clubs of America in 1990. Its mission statement is, “To enable all young people, especially those who need us most, to reach their full potential as productive, caring, responsible citizens.” Nationally, the organization serves nearly four million young people in more than 4,000 club facilities. Cotton said between 80 and 90 children go to the Lodi club every weekday during the school year. “We have between 120 and 130 kids in the summer, and now we have kids from Stockton and Galt as we’re centrally located,” said Cotton. “Our club is open to anyone, everyone needs guidance, and if both parents work we can help their kids grow and learn in a safe, fun environment.”

Safety, he said, is the club’s priority. Nationally, the Boys and Girls Clubs have partnered with the FBI, the National Center for Missing and Exploited Children and the Centers for Disease Control to develop safety practices that benefit all youth organizations. “Our staff of eight professionals is thoroughly vetted, and their backgrounds checked as we must have the best possible responsible adults to work with our kids,” Cotton said. “We have to be ever-vigilant to ensure our clubs are safe havens for our youth and staffed by caring adult mentors.” Learning is also an important component, and Lodi’s club has a number of programs such as Power Hour for homework help and tutoring and Brain Gain, which helps prevent summer learning loss. The programs tie in with the Boys and Girls Club’s dedication to ensuring that every member graduates from high school on time with a solid plan for their future. Programs toward that end include Diplomas to Degrees, CareerLaunch and Money Matters. Financially, the club itself is doing well overall, according to Cotton. “Donations are up, and we finished 2014 in the black,” he said. However, he noted that the nonprofit organization needs help from the community and business leaders to continue being successful. “Beyond financial donations, volunteer time, mentoring for the kids, attending events are also important,” Cotton said. “We want people to get involved because one day these kids Please see LODI Page 27

March 2015

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Nocetis to unveil new Asparagus Festival By PATRICIA REYNOLDS Business Journal writer preynolds@cvbizjournal.com

STOCKTON -- Boasting a new name and a revised venue, the San Joaquin Asparagus Festival, formerly known as the Stockton Asparagus Festival, will allow visitors to celebrate the locally grown vegetable for a 30th consecutive year. New backers, Tony and Carol Noceti of French Camp, stepped in last summer when the event’s original organizers, citing low attendance and growing costs, called it quits after 29 years. The Nocetis are financing the revived festival through their organization, the Noceti Group, Inc. This year’s Asparagus Festival will take place April 17-19 at its new home, the San Joaquin County Fairgrounds. The Nocetis expect 60,000 visitors over the three-day period. “My husband and I talked about it, and we had people come and talk to us and say, ‘Hey, we can’t let this go.’ It is such a beautiful event, and Stockton has good things going for it,” said Carol Noceti. “We love promoting events. That’s what we do. We just knew we couldn’t let this go.” The couple has enlisted sponsorships for the event from local businesses such as Save Mart Supermarkets,

Chase Chevrolet of Stockton, O’Reilly Auto Parts, 51 Fifty Energy Drink, Les Schwab Tires and Cumulus Radio. “Save Mart is a strong supporter of local events,” said Save Mart Sponsorship and Special Event Marketing Director Don Bean. “We are big fans of the Nocetis and like the fact that they want to keep alive the great tradition of the Asparagus Festival.” The Noceti Group is using billboard advertising, radio and television spots, mass mailing, social networking including a Facebook page and a dedicated website (sanjoaquinasparagusfestival.net) to promote the festival. Carol Noceti believes the couple’s past experience in reviving enterprises combined with a love for all things local will ensure that the San Joaquin Asparagus Festival is a continued area favorite. “I don’t know that we’re doing anything the same or different than the old Asparagus Festival board of directors because I wasn’t actively involved with it. All I know is that what we do is promote events, so we’re familiar with what it takes to get the word out there,” she said. While also managing the family’s farm of walnuts, alfalfa, safflower and wheat along with a downtown Ripon shop, Boutique Couture, the couple launched the Noceti Group in 2007. Their initial objective was to save the

PATRICIA REYNOLDS/CVBJ

Tony and Carol Noceti believe their promotional experience will help the new festival succeed.

Stockton 99 Speed Way, an asphalt race track that originally opened in 1947. “They had closed in September 2006, and it was slated for housing, and then the project went downhill. So we then came in and reopened it in 2009,” Carol Noceti said, noting that the raceway’s name is now The New Stockton 99 Speed Way. The Group expanded its local pro-

motional involvement with the goal of helping maintain the viability of the San Joaquin County Fairgrounds. The Nocetis reopened go-cart races there in 2012. It’s now referred to as the “Little 99.” In 2013 they launched Delta Speedway, a new dirt track race course also at the fairgrounds. Please see ASPARAGUS Page 31

Central Valley Business Journal

March 2015

Landscapers’ tips for drought-friendly yards By NORA HESTON TARTE Business Journal writer nhestontarte@cvbizjournal.com

LODI -- Homeowners, concerned about the drought, are wondering if they have to give up curb appeal for smart water use. Local nurseries say there are simple choices residents can make to save water but still have a nice yard. “Right now, people are trying to save water,” said Remo Berry, a sales associate at Delta Tree Farms, Inc., at 12900 N. Lower Sacramento Rd. in Lodi. “Most of the public isn’t aware of how beautiful a low-water garden can be.” Berry said he has noticed a move toward rock gardens, drought-tolerant plants and less water-hungry flowers like azaleas and gardenias. Homeowners are embracing the Zen garden look, a trendy way to save money on water use while still using carefully chosen, drought-resistant plants. “If you want to eliminate lawn, that would be your most water-wise thing to do,” said Todd Roddan, owner of New Buds Nursery, at 23563 S. Manteca Rd. in Manteca. “The trend that I see is that people are removing their lawns and replacing that area with low water use

shrubbery,” said Henry Vanklavren, owner of Hollandia Nursery, Inc., at 6012 Woodland Ave. in Modesto. For Tony Fugazi, owner of Garden Shoppee, at 11013 Davis Rd. in Lodi, the solution is two-fold. In addition to choosing plants that require less water, residents should work to increase irrigation efficiency. “It’s not just about planting a plant,” he said. “There’s a whole science behind it.” Fugazi broke it down. Traditional spray head sprinklers are approximately 65 percent effective, which means 65 percent of water is getting to its intended location. High-efficiency spray heads are rated at 75-80 percent effective and drip irrigation is rated 90 percent effective. Individuals can also save water by paying more attention to their time clocks and turning water off during winter when plants aren’t using water to grow, Vanklavren said. “Most people [in the Valley] are still watering every day or every other day… you only have to water maybe once a week,” according to Berry. As Berry explained it, most of California’s soil is rich in clay particles, which helps it absorb water. Because of that, watering deep and less frequently is the

WAYNE DENNING/CVBJ

The Garden Shoppee says drought-friendly yards depend on irrigation efficiency.

best way to treat plants in the Valley. “Water is the hardest thing to teach people. It’s soil science,” he said. Fugazi suggested proper hydro zoning to reduce water use. To achieve this, home owners should put their irrigation system on zones and group plants together by water needs, he said.

For example, if you put droughtresistant plants on the same zone as high-water use flowering plants, you would still have to water the entire area enough to sustain the high-water plants. Separating the two types of Please see LANDSCAPING Page 31

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March 2015

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Central Valley Business Journal

March 2015

PRIVATE SCHOOLS K-12

In San Joaquin and Stanislaus Counties. Ranked by Student Enrollment. Ties are Listed in Alphabetical Order. Grade Span Total Student Enrollment

Address

Top Local Administrator Phone Web Address

Administration

St. Mary’s High School 5648 N. El Dorado Street Stockton, CA 95207

Peter Morelli, President (209) 957-3340 saintmaryshighschool.org

90 faculty 60 teachers 10 admin

Big Valley Christian School 4040 D Tully Road Modesto, CA 95356

Bobby Kirchner, Superintendent (209) 527-3481 bvcs.org

100 faculty/staff/ admin

850 students

Ripon Christian Schools 435 N. Maple Avenue Ripon, CA 95366

Eric Segaar (209) 559-2155 rcschools.org

Preschool - 12

670 students

Central Catholic High School 200 S. Carpenter Road Modesto, CA 95351

Russ Antracoli, Principal (209) 524-9611 cchsca.org

30 20 staff 8 admin

9-12 400 students

Modesto Christian School 5901 Sisk Road Modesto, CA 95356

Lance Lowell, CEO (209) 529-5510 modestoChristian.org

K-12

400 students

Bella Vista Christian Academy 1635 Chester Drive Tracy, CA 95376

Peggy Haase, Principal (209) 835-7438 bellavistaca.com

Preschool-8

20 staff

295 students

Presentation School 1635 W. Benjamin Holt Drive Stockton, CA 95207

Maria Amen, Principal (209) 472-2140 presentationschool.org

K-8

26 staff

265 students

St. Bernard’s Catholic School 165 W. Eaton Avenue Tracy, CA 95376

Patricia Paredes, Principal (209) 835-8018 st-bernardschool.org

K-8

264 students

Lakeside Christian Elementary 2111 Quail Lakes Drive Stockton, CA 95207 First Baptist Christian Schools/ Blessed Beginnings Preschool 3535 N. El Dorado Street Stockton, CA 95204 Our Lady of Fatima Elementary School 501 W. Granger Avenue Modesto, CA 95350

Jessica Carter, Principal (209) 954-7653 ucsonline.com

K-6

180 students

Stephanie Bulleri, Principal (209) 466-1577 fbcschools.com

Infant-K-8

245 students

Linda Partlow, Principal (209) 524-7421 olfmodesto.com

K-8

24 staff

242 students

St. Anne’s 200 S. Pleasant Avenue Lodi, CA 95240

Sarah Gillum, Principal (209) 333-7580 stanneslodi.org

K-8

29 staff

232 students

St. Peter Lutheran School 2400 Oxford Way Lodi, CA 95242

Anna Hu, Principal (209) 333-2225 stpeterlodi.com

Preschool - 8

14 staff

210 students

Jim Elliot Christian High School 2695 W. Vine Street Lodi, CA 95242

Tom Spadafore, Administrator (209) 368-2800 jechs.com

9-12

180 students

St. Luke Catholic Elementary School 4005 N. Sutter Street Stockton, CA 95204

Fr. Ramon Zarate, Pastor (209) 464-0801 stlukestockon.com

K-8

175 students

Merryhill School at Brookside 4811 Riverbrook Drive Stockton, CA 95219

Corinne De Prator, Principal (209) 477-9005 brookside.merryhillschool.com

Preschool-8

17 staff

141 students

Brookside Christian High School 915 Rosemarie Lane Stockton, CA 95207

Dennis R. Gibson, Principal (209) 954-7651 ucsonline.com

9-12

140 students

Stockton Christian School 9021 West Lane Stockton, CA 95210

Robert Ogden, Principal (209) 957-3043 clministry.com

K-12

30 staff

136 students

Lodi Academy 1230 S. Central Avenue Lodi, CA 95240

Tim Kubrock, Principal (209) 368-2781 lodiacademy.net

9-12

14 staff

86 students

Vineyard Christian Middle School 2301 W. Lodi Avenue Lodi, CA 95242

Randal Oliver, Principal (209) 333-8300 vcmslodi.com

6-8

78 students

Lakeside Christian Junior High School 915 Rosemarie Lane Stockton, CA 95207

Dennis R. Gibson, Principal (209) 954-7651 ucsonline.com

7-8

60 students

Rank

School Name

Faculty

9-12 988 students Preschool 12th

Programs Offered

Accredited By

Year Est.

A Catholic education with a full college preparatory curriculum, including 18 advanced placement and honors courses

WASC

1876

Full range of athletic and fine arts opportunities, honors, AP courses, music, PE, technology instruction, biblical integration

WASC/ACSI

1974

Robotics, fine arts, mock trial, debate, industrial arts and drama

WASC

1928

Computers, English, visual and performing arts, foreign language, math, PE, science, theology and social studies

WASC

1966

Advanced placement and honors courses, foreign language, visual and performing arts, athletics, music, physical education and a full-day kindergarten

ACSI/WASC

1962

Academics, music and computers

Lutheran Church Missouri Synod

2000

High quality academic program that integrates religious truths and values

WASC/ WCEA

1965

Offers a complete curriculum with enrichment opportunities in music, technology, art, PE an performing arts

WCEA/ WASC

1957

Full curriculum, a full day care, band and computer lab

ACSI

1985

Summer kindergarten preparation, before & after school daycare, transitional & traditional kindergartens, Spanish and SJCC athletics

ACSI

1994

7 subject core curriculum plus music, PE, library, computer and Spanish

WASC/ WCEA

1957

Religious curriculum, science, math, social studies, Spanish, computers, music, art and physical education

WCEA

1921

English, mathematics, science, social studies, Christian theology and preschool

WASC

1926

WASC/ACSI

1997

WCEA/ WASC

1961

K-8 Art, music, technology, Spanish and 21st century learning

WASC

1997

Athletic clubs’ bands, college prep., excellent athletics, several student clubs and extra curricular activities

WASC

1976

Academics, CIF sports, computer lab and college preparatory classes

ACSI

1954

College preparatory curriculum

WASC

1908

Math, English literature, science, physical education, Christian living and electives

ACSI

2004

Athletic clubs’ bands, athletics and student extra curricular activities

ACSI

1976

College prep, U.C. approved core curriculum, sports, community college club, drama, art and Bible-based instruction Full PE program offered to all grades, Italian school offered after school, math, academic pentathlon participants, chess club and computer lab

March 2015

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Central Valley Business Journal

March 2015

Almond industry watches drought, port congestion By ELIZABETH STEVENS Business Journal editor estevens@cvbizjournal.com

MODESTO -- The almond bloom in California was nearly complete by the end of February, and as the trees turned from snowy white to green, growers are keeping their fingers crossed for favorable weather and continued bee health. One positive thing about this year’s almond crop was the “robust bloom and good nut set” that February’s warm weather provided, according to the Capital Ag Press. In addition there have been no reports of widespread bee die-offs that beekeepers have seen in recent years. “We had spectacular weather during the bloom,” Eric Mussen, a University of California-Davis emeritus apicurist. told the Ag Press. “It seems like the bees were doing fine. The almonds set well. I think most of the beekeepers at this point in time are probably in good shape.” But there are also challenges, both from Mother Nature and man. Water allocation The Bureau of Reclamation announced Feb. 27 that for a second year in a row, most of its Central Valley Project (CVP) agricultural customers would receive no water. The same goes for municipal and industrial customers. “The CVP announcement is both saddening and maddening,” Modesto farmer and California Farm Bureau Federation (CFBF) president Paul Wenger said in a news release. “It’s saddening because the continued cutoff of water will prolong the impact of water shortages on farmers, their employees and rural communities. It’s maddening because California still struggles to manage water wisely and flexibly, especially in dry years.” The industry is still holding out hope more rain will come this spring, but January was one of the driest on record, according to the National Weather Service. In addition, the Sierra snowpack is just 20 percent of normal, which means little runoff is expected help fill already dry reservoirs. “The rain events in December were encouraging, but the persistent dry weather the first two months of this year underscores our need to plan for another critical year of drought,” said Reclamation Mid-Pacific Regional Director David Murillo. “We have been working closely for months with our State and federal agency partners to try to minimize im-

pacts and will continue to do so.” Wenger called on state leaders “to move quickly on water projects authorized by the Proposition 1 water bond and on congressional reform of environmental laws.” He especially believes California needs to increase water storage. “Farm Bureau and other organizations will continue to work with the California Water Commission to ensure that bond money for surface-water storage projects is apportioned as rapidly and as effectively as possible,” Wenger said. “We are suffering now from our past failure to improve our water system. We shouldn’t compound the suffering by studying projects to death. It’s time to invest the money that Californians voted to invest.” The almond industry supports more than 100,000 jobs and adds more than $11 billion to the state’s GDP, according to a study released in December by the University of California Agricultural Issues Center. Of those jobs, about 97,000 are in the Central Valley. Western port dispute Before the water announcement, the issue that held the almond industry’s attention was the congestion, work slowdowns and lockouts at the West Coast’s 29 ports. The Pacific Maritime Association (PMA) finally reached an agreement with the International Longshore and Warehouse Union (ILWU) but not before locking out workers several times in February. One of the core issues was congestion at big container ports such as Oakland, Los Angeles and Long Beach. Ninety percent of California’s almond exports go out through those ports. “Whenever you have a situation at the port, it’s going to be a problem,” said Julie G. Adams, vice president of global technical and regulatory affairs for the Almond Board of California. “And for almonds, obviously since 100 percent of production is here in California, a port situation affecting the West Coast is basically going to touch virtually all of our handlers and shippers. Work has resumed at the ports, but port officials said it could take 90 days or more to clear the backlog. During the dispute, almond exporters saw delayed shipments beginning in October that got progressively worse into January. “I think the biggest impact was for shipments that would have gone to Asia, particularly in advance of Chinese New Year,” Adams said. “There

Almonds make up a quarter of California’s agricultural exports.

was some real concern about getting product out in time.” The Almond Board said economic damage varied among growers, hullers and handlers. That includes congestion charges, container delays/cancellations, lost sales, daily delivery reductions, current or potential job layoffs and cargo diversion to Houston or other ports. “The shipping delays have dealt a blow to the trust between shippers and buyers,” said President Kelly Covello of the Almond Hullers and Processors Association. “Importers and buyers expect a certain level of reliability and predictability and that trust was eroded by this slowdown.

The California almond industry relies on the free flow of international trade. We hope those trade relations will be restored with the settlement of this dispute.” According to Adams, some handlers reported canceled contracts, but on the whole, it’s been more a matter of rescheduling shipments. “I would say the big question now is how quickly can the backlog be cleared so that we can get shipments out and on their way to customers in our various markets,” Adams said. Deputy Port Director for the Port of Stockton, Mark Tollini, said the problems with congestion and ac-

March 2015

www.cvbizjournal.com

BUSINESS JOURNAL PHOTO

QUICK FACTS

ALMOND EXPORTS BY THE NUMBERS

20%*

602 million*

The amount almond exports were down from August 2014-January 2015 compared to the year before.

The number of pounds the almond industry exported from August 2014-January 2015.

80%*

53 million*

The portion of almond exports that go through the Port of Oakland alone.

The number pounds the almond industry shipped domestically in January (a new record).

22 billion**

25%**

The amount of economic output from 2014 California almond crop.

The portion almonds make up of California’s agricultural exports.

BUSINESS JOURNAL PHOTO

cusations of worker slowdowns centered at the bigger container ports, mainly because ships have become bigger and are more difficult to maneuver. That wasn’t an issue at the Port of Stockton, which handles mostly bulk shipments. “I’ve worked in shipping long enough to remember that we used to ship almonds out of the Port of Stockton,” Tollini said. Tollini said some companies are re-evaluating container shipping and considering bulk shipping again. Fertilizers and animal feed could be shipped in one-ton bags, the same way rice is shipped, he said.

Adams doesn’t believe the almond industry will change, however. She said almonds are packed either into one-ton fiber bins or 50 or 25-pound cartons and then put into containers and shipped. “It’s the way, not only our handlers are situated and organized, but also the way their customers need to receive the product,” Adams said. “So, it would be difficult to change from the way we’re shipping right now.” However, Adams believes the issue of modernizing the ports will be an ongoing issue. She sees almond production and demand only increasing, which will push facilities and infrastructure to keep up with the pace.

105** The number of almond handlers who process and/or export or ship domestically in California.

*SOURCE: Almond Board Of California **SOURCE: UC Davis

Central Valley Business Journal

Ready to go to work

March 2015

Modesto high schools prepare students for jobs, careers through CTE program By PATRICIA REYNOLDS Business Journal writer preynolds@cvbizjournal.com

MODESTO -- Unable to find part time work, Enochs High School senior Annette Isaac decided to enroll in her school’s Employment Opportunity Pathway. “I wanted to do it because I had been looking for a job for a while, and it’s hard because nobody wants to hire somebody that doesn’t have experience,” Isaac said. After completing a Walgreens internship arranged through her teacher, Isaac was hired. She credits the course for giving her the tools she needed to land the job. “I learned what I should wear [to] interviews. I learned how to talk to an employer. I used to be really shy. I couldn’t talk in front of crowds or anybody, but then after this class I’m really comfortable, and I feel like I’ve taken a leadership role in this class,” she said. Students begin the pathway with basic coursework, Employment Opportunity 1-2 and 3-4. Then they follow with capstone classes such as retail sales, entrepreneurship, or retail supervision and the opportunity to gain on-the-job experience. Karen Price teaches courses within the pathway. She has a 20-year background in banking and 18 years experience in vocational instruction. She says entry-level classes, targeted at underclassmen and launched just this school year, start students on the path to employment early. “I have access now to, not only a junior and senior that probably leaves me right away, I have access to these really young people who may see something that they are striving for, and they can literally take me for four years,” she said. Students attending Modesto City Schools’ seven high schools can obtain

www.firstchoiceservices.com 209.467.4426

career-based education and experience through pathways, academies and programs while earning their diplomas. The district offers seven academies, more than 30 pathways and four certification programs all falling under the umbrella of Career Technical Education (CTE). During the 2013-14 school year, between 5,700 and 5,800 students, representing 36-38 percent of the district’s high school population, participated in CTE. Healthcare, public safety, industrial technology, agriculture, performing arts, biotechnology and cosmetology are some of CTE’s represented industries. Whether students plan to go to college, attend technical school or enter the workforce upon graduation, CTE says it provides them with the academic and technical skills needed for success. “In so doing, we want to provide a prepared workforce to meet the employment needs of our local businesses and industry,” said Alternative and Vocational Education Director Mike Henderson. “To make sure our preparation is current and aligned with industry standards, we need industry representatives to be willing to engage with our programs and instructors to let us know what we are doing right and what we can do better.” Academies, pathways and programs differ primarily from a funding perspective. Academies are three-year programs that operate as schools within schools. They are funded through state Assembly Bill 70. The district’s academy funding for the 2015-16 year was just secured. “Now the pathways program, that’s supported through our LCAP funds,” said James C. Enochs High School Principal Deborah Rowe, referring to Local Control and Accountability Plan money. “The state gives the district a larger pot of money, and the district itself determines how that money is spent.” All CTE programs must fall within

PATRICIA REYNOLDS/CVBJ

Beyer High School sophomore Zac Tobias, teacher Heidi Pagani, senior Anthony Tutorow, junior Matthew Laverty and senior Joe Dion confer about a class robot.

one of 15 industry sectors the state identifies. Annual advisory meetings are held and industry representatives advise on trends, provide input on curriculum and give feedback on their needs for the workforce. “Ultimately as we go through the next couple of years one of the things the state is really pushing is accountability and how do you know your students are achieving certifications,” said Rowe. “So that if you’re in the certified nursing assistant program you know that your student has achieved certification in that because that’s a state mandate that they provide for us.” Some of the district’s CTE programs have existed for more than 20 years while others are newer. Four years ago, Beyer High AP math teacher Heidi Pagani attended a math and physics day at Great America with students. “We saw these teams from the Bay Area, and they were running their robots. We came back and said we need to have this in the Valley,” she said. Since then, a robotics pathway consisting of pre-engineering programming, with two courses in robotics has been developed along with two competitive robotics teams. Next year a fourth course, Robotics 3, will be

PATRICIA REYNOLDS/CVBJ

Robotics 2 students Anthony Tutorow and Cinder Hasselbach with their “Sumo-bot.”

added. That will allow students to enroll in robotics classes during all four years of high school. The pathway and competitive teams are now highly popular among students, and courses fill up fast. “There are very few places where I get to do what I’m good at. This class allows me to do what I’m good at and in a competitive environment,” said Beyer junior Skyler Griffith of the Please see VOCATIONAL Page 27

March 2015

CVBJ

LODI Continued from Page 18

will be community members, employees, employers and successful in whatever they do.” Vino Farms and Taco Bell are among the major supporters of the Lodi operation. “Businesses that support us, like Taco Bell, realize these kids could be their future workforce, so investing the Lodi Boys and Girls Club is a good investment in their -- and the kids’ --

CVBJ

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VOCATIONAL Continued from Page 26

Robotics 2 class. Students learn programming, electronics, metal fabrication and teamwork, culminating in the construction of robots crafted to perform various challenges. The first challenge for Robotics 2 students is to design “sumo-bots,” robotic machines that duel against each other in a wrestling-style match up. About half of the robotics pathway students also participate on competitive teams, spending six weeks after school and on weekends designing machines to accomplish certain identified tasks. This year’s advanced team designed a 120-pound, 6-foot 6-inch robot capable of stacking packing bins and a plastic full-sized trash can on an incline. Modesto City Schools continues to apply for the state’s Career Pathways Trust grants with proposals to enhance existing pathways and to develop new career choices, including law enforcement and automotive programs. “One of the most urgent needs is a program to meet the current and anticipated teacher shortage. We have a couple of programs related to this field, but hope to strengthen the pathway’s presence in the district,” said Henderson.

California wines hot here, overseas DAVIS — California wines are still popular despite port slowdowns and stiff competition, according to figures released from the Wine Institute. U.S. wine exports, 90 percent of which come from California, reached $1.49 billion in winery revenues in 2014. That was down slightly compared to the previous year while volume was up to 49.2 million cases. U.S. wine exports faced a stronger dollar and a West Coast port slowdown that hampered producers’ efforts to sell their product abroad. The top market for California wines was the European Union’s 28-member countries which took in $518 million worth of wine. They were followed by wine drinkers in Canada, Japan, China, Hong Kong, Mexico, South Korea, Nigeria, Vietnam, and Singapore.

futures,” Cotton said. Currently the club operates with a $500,000 annual budget, which starts from scratch every year. “It’s a challenge raising money regardless of the community’s size and because there are so many worthy nonprofits also asking for donations,” said Cotton. “I recommend that anyone who wants to know what we do to just come for a visit and tour.” Businesses can help the Boys and Girls club by providing funding, mentoring for children or by volunteering their time.

WAYNE DENNING/CVBJ

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Central Valley Business Journal

March 2015

Health care tax penalty? There’s extra time to enroll By KENT HOHLFELD Business Journal writer khohlfeld@cvbizjournal.com

SACRAMENTO — Covered California, the state’s health insurance marketplace, has extended the enrollment period for consumers who have discovered they owe a tax penalty for lack of coverage. Covered California created a new, limited special enrollment criteria that will allow consumers to enroll until April 30. Covered CaliPeter Lee fornia’s Executive Director Peter V. Lee said it was not an extension of open enrollment, which ended Feb. 15 for most consumers. He said that even though Covered California had done a lot of outreach to explain that people without health coverage could face a tax penalty, it wasn’t until consumers filed their taxes that many realized the penalty applied to them. This is the first year that those who don’t have insurance will have to pay a penalty of $95 or 1 percent of their income, whichever is greater. Nationally it was expected 6 million

people will be hit with that tax penalty. In order to take advantage of the special criteria and enroll in health coverage, people need to go to Covered California’s website to find an enrollment professional to help them enroll. Lee said consumers simply need to attest that they’ve discovered they owe a tax penalty. They will not need to provide documentation. Enrolling in health coverage, however, will not erase the tax penalty, Lee said. It will simply prevent taxpayers from having to pay heavy tax penalties next year. Officially Covered California completed its second year open enrollment period Feb. 15 with one of the busiest days in the program’s short history. “Over 36,000 people enrolled on Sunday,” said Lee. “It shows people do tend to wait until the last minute.” The exchange did extend enrollment to Feb. 22 for people who had begun the process but were unable to finish in time. The exchange expected the late enrollees to push the total for the second enrollment period past the 500,000 mark. The California health care exchange added approximately 474,000 people to the state’s ranks of the insured during this year’s enrollment period. Overall, the health insurance exchange has enrolled approximately 1.4 million people during its two

years. While that is not quite up to the often stated 1.7 million enrollment goal, it was a number that left officials pleased overall. “This year builds on very strong first year enrollment,” he said. “Covered California has adopted a policy of helping people across the financial spectrum.” Another 779,000 people were added to Medi-Cal, the state’s Medicaid program, during the latest enrollment period. In the last two years, nearly 3 million people have joined Medi-Cal thanks in large part to the program’s expansion under the Affordable Care Act. Overall those already in health exchange plans seemed to be satisfied with the plan they picked during the first enrollment period. Nearly 94 percent of those renewing plans stayed with the plan they were already in. “This was their first chance to vote with their feet,” said Lee. “The fact they stayed meant that the plans had the right mix of care they wanted.” As the enrollment period closes, Lee said that the exchange will enter a new chapter. Covered California doesn’t expect future enrollment periods to see the large increases that occurred in the first two years. “We will see increasing enrollment spread out over the year,” said Lee. “It’s moving into a new stage where people see coverage is available and

we are looking forward to moving into that chapter.”

SPECIAL ENROLLMENT When: Limited special enrollment is from Feb. 23-April 30. Who: Taxpayers who incurred a penalty because they had no health insurance in 2014 will have extra time to enroll. Where: The special enrollments will be handled through enrollment professional. More information: Enrollment professionals can be found on Covered California’s website (coveredca.com). What documents do I bring? You only need to attest that you incurred a tax penalty. You don’t need documentation. Will this cancel my tax penalty? No, but it will mean you won’t be penalized for not having insurance in 2015.

Source: Covered California

March 2015

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Credit union aiming to revive south Stockton By KENT HOHLFELD Business Journal writer khohlfeld@cvbizjournal.com

STOCKTON -- Work continues on schedule toward completion of Financial Center Credit Union’s newest branch at the corner of Airport Way and 10th Street in south Stockton. “Construction is on time, and we are scheduled to open in June,” said Financial Center Credit Union President and CEO Michael Duffy. The $2 million facility will be only the second financial institution that serves more than 100,000 people to locate in south Stockton. The branch is part of an effort to revitalize that corridor of the city. “I have never received more compliments than when we announced that branch,” he said. According to Duffy, the new branch will help to serve more than 3,000 members who live in the area. Financial Center Credit Union serves largely San Joaquin County and Stockton city employees. It also serves Dameron Hospital employees and more than 120 employee groups throughout the county.

“We have over 3,000 members who live there so we have a built-in market that can sustain that location,” he said. “We think there are a number of people that may join when they have a convenient option close to them.” He also said that helping an area of Stockton that is underserved played into the credit union’s decision to locate in the area. The company hopes that having a successful branch will help turn around the negative perception about that part of town. “I think there is a misconception about south Stockton that needs to be broken, and we are going to break it,” he said. The hope is that new branch may pave the way for more businesses ultimately deciding to locate in the area. “We want to be a good corporate citizen,” Duffy said. “If we move in there and provide a very nice facility, the neighborhood will see that you can run a good business down there. That will hopefully lead to more businesses going down there. We hope to see the the whole area infill with more businesses.”

Financial Center Credit Union is on schedule to open its south Stockton branch in June.

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CVBJ

ASPARAGUS Continued from Page 19

“That helps keep our fair going. It keeps our fairgrounds alive, too,” said Carol Noceti. Now the Noceti Group is betting that its promotional formula for the fairgrounds will spell success for the San Joaquin Asparagus Festival as well. “When the Asparagus Festival was going to die, we thought here’s another opportunity. We can bring this to the fairgrounds and do a whole bunch of good things here. We keep this Asparagus Festival going in the city of Stockton, but again we’re going to be able to help a little bit more to ensure that we keep our fairgrounds going,” said Carol Noceti. The change in the festival’s location from Stockton’s downtown waterfront to the fairgrounds doesn’t concern the Nocetis. In fact, they expect it to be an advantage because there will be more parking and easier accessibility. “It was painful downtown when you had to park six and seven blocks away to get to it,” said Tony Noceti. “We have

CVBJ

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LANDSCAPING Continued from Page 20

plants by using different zones will more effectively use water. On average, Fugazi said one square foot of turf requires 35 gallons of water per year while one square foot of drought-resistant shrubbery requires approximately six gallons per year. Limiting water use doesn’t mean residents have to give up the green, however. They are simply using plants that thrive in this climate. Most heat-resistant plants, which are common in the Valley, are also drought-resistant, Roddan said. Vanklavren suggested Australian grasses, which use less water, to remedy the problem. Artificial turf hasn’t quite caught on, according to Fugazi. “It is too expensive for most people’s threshold in the Central Valley,” he explained, adding the average cost of turf is $10-20 per square foot, which is 10 to 20 times the amount of even a high-cost turf. Choosing drought-resistant plants, as opposed to truly drought-tolerant plants, is another compromise that allows people a larger variety of plants from which to choose. “Australian natives have become kind of popular because they are heat-tolerant and low-water tolerant,” Berry said. As an added bonus, they have a somewhat exotic appearance, he added. To fit in with the Zen-garden trend, Berry said clients are also gravitating toward plants with a Japanese-look. California natives get a bad reputation, “[People] haven’t seen a lot of the really nice California natives because they are hard to find. It’s hard for people to become exposed to them.” Berry suggested the following goodlooking native plants: California lilac, a shrub; certain types of salvias, small flowering shrubs; eriogonum foliolosum and ribes viburnifolium, which are ground cover; and Cercis Occidentalis, a tree.

special gates and designated entry for Stockton RTD so they can bring in people from other parts of Stockton without missing their schedules. There’s a lot of interest in this location,” Tony Noceti said, noting that shuttle buses also will run from overflow parking areas to the fairground gates. The Noceti Group will use a similar non-profit organization model that the event’s previous organizers utilized to run the festival. “The only difference is that we did not establish a (501c3) non-profit organization, but in fact we are doing the

same thing they did before, using nonprofit organizers,” Carol Noceti said. “Tony and I are not paying for somebody to market it. We’re marketing it. We’re going out there and getting the sponsorship. So we’re not guaranteed a profit, by no means.” The Group is working with several organizations to run the festival, guaranteeing them a contracted, pre-determined payment for a set number of people to work a set number of hours. Some of the non-profit groups committed to staff the event include Stockton Host Lions Club, Stockton Kids Club,

Manteca Youth Focus, Youth Focus Incorporated, Tokay High School Football and Track and Field booster clubs, and the Historic Durham Ferry 4H club. “We are not getting any checks or draws from the event. When it is all said and done, and I’ve paid out the money to everyone that’s put this festival on including all the non-profit organizations, if there’s money left over in the end, then we’ll earn some profit,” said Carol Noceti. “But if there’s no money left over, or if there’s a deficit, I not only didn’t make money, I may have lost money.”

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Central Valley Business Journal

March 2015

VOCATIONAL SCHOOLS

In San Joaquin and Stanislaus Counties. Ranked by Enrollment. Ties are Listed in Alphabetical Order. Rank

School Name Address

Local Contact Phone Web Address

Average Tuition

Average Program Completion Time

Enrollment

Educational Programs

Accreditation

Year Est.

Steven J. Brenner, Director Sally M Lofthus, Associate Director (209) 957-3030 mtistockton.com

11,600

10 months

190

Medical assistant, microcomputer, medical office and clerical specialist, medical receptionist, legal and office administration

ACCSC

1968

MTI Business College 6006 N. El Dorado Street Stockton, CA

Marinello Beauty College 445 W. Weber Avenue, Ste. 223 Stockton, CA 95203

Romero Davis (209) 948-1000 marinello.com

$18,000

10 months

Cosmetology, manicuring, massage therapy and esthetician

NACCAS

1905

San Joaquin & Calaveras Electrical Training & Educational Committee 1531 El Pinal Drive Stockton, CA 95204

David Brooks, Training Director (209) 462-0751 ibew595.org

Varies

5 years

Electrical training

State of California

1954

Insurance School of the Central Valley 121 E. Orangeburg Avenue, Ste. 12/14 Modesto, CA 95350

(209) 521-0874 insuranceschoolofcv.com

$325

1 week

Pre-licensing for property, casualty, life, health, funeral and burial

California Department of Insurance

1992

North Adrians Beauty College 124 Floyd Avenue Modesto, CA 95350

Pat Cochran (209) 526-2040 adriansbeautycollegemodesto.com

Varies by program

20 weeks

Cosmetologists, estheticians, manicurists and cosmetology instructors

CPPVE

1956

Computer office specialist, solar photovoltaic specialist, property management, HVAC/R technician, medical billing and coding, bookkeeping.Language classes offered on line or on ground. Job placement assistance with vocational programs. 3 semesters a year

CPPVE

1989

NCCER Approved by CPPVE

2010

$89 for business

6 weeks for business classes; 12/15 weeks for vocational programs

Community Business College 3800 McHenry Avenue, Ste. M Modesto, CA 95356

Dan Guerra, Director (209) 529-3648 communitybusinesscollege.edu

DeHart Technical School 311 Bitritto Way Modesto, CA 95356

Jeff Painter, Director (209) 523-4578 deharttech.com

$5,335 $9,900

6-11 months

Building maintenance/HVAC course 1, Building maintenance/HVAC course 2 and Building maintenance/HVAC course 3

Cal-Trade Welding School 424 Kansas Avenue Modesto, CA 95351

Maria Rodgrigues, Admin. (209) 523-0753 caltradeweldingschoolofmodesto. com

$8,500

18 weeks

Welding training and certification

CPPVE

1979

Abrams College 201 E. Rumble Road, Ste. E Modesto, CA 95350

Daniel Lucky, President (209) 527-7777 abramscollege.com

$875 $3,000

Part-time programs vary in length

Massage therapist, medical transcriptionist, EMT, phlebotomy, pharmacy technician, paralegal and administrative assistant and more

CPPVE

1990

Western Pacific Truck School 2111 March Lane, Ste. 2 Stockton, CA 95207

Bob Schauer, President/CEO (209) 472-1500 wptruckschool.com

$4,500

4-7 weeks

10-12 per class 30 staff

Class A CDL program, truck driver training, Class B CDL and forklift training

Approval to operate Bureau for Private Post-Secondary Education

1977

Heavy Equipment College of California 2111 March Lane, Ste. A-5 Stockton, CA 95207

Mindy Jackson, Campus President (209) 242-5400 ccc-north.com

$8,380

3 weeks

Heavy equipment and crane

NCCER

2006

ACI Career College 2412 McHenry Avenue Modesto, CA 95350

Sherri Cytanovich, Campus Director (209) 338-6224 acicareercollege.com

Varies

WND

Career vocational training and classes

CPPVE

1950s

Computer Tutor Business & Technical Institute 4300 Sisk Road Modesto, CA 95356

George Rawe, Director (209) 545-5200 computertutor.com

Varies

WND

Computer software application classes, administrative, medical and accounting, career programs and skills workshops

ACCSC, Microsoft certification

1986

Institute of Technology 5737 Stoddard Road Modesto, CA 95356

Robert Enger, President (209) 545-3100 it-colleges.edu

Varies by program

40 weeks

WND

Accounting, administrative, legal, criminology, culinary arts, HVAC, HR, medical, pharmacy and web and graphic design

AOS, AAS, degrees CPPVE

1986

Modesto Technical College 1300 N 9th Street Ste. D Modesto, CA 95350

(209) 524-7037 modestotechcollege.com

Varies

WND

Automotive, welding, maintenance technology and industrial refrigeration

ASE, AWS, ESCO HVAC, BARS, MACS, RETA

1996

ITT Technical Institute 16916 S. Harlan Road Lathrop, CA 95330

Dennis Kelley, Director (209) 858-0077 itt-tech.edu

Varies by program

2-4 years

WND

School of information technology, electronics technology, drafting and design, business and criminal justice

ACICS

1997

$3,500 for vocational

Varies

March 2015

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Central Valley Business Journal

March 2015

Business leaders deliver inspiration By ELIZABETH STEVENS Business Journal editor

There’s no reason why anybody can’t do well here.

estevens@cvbizjournal.com

MODESTO -- Modesto’s business community received doses of inspiration and practical advice from three leaders with long and varied backgrounds during an event called “The Economy and You” at the Gallo Center for the Arts Feb. 25. Mike Zagaris of PMZ Real Estate; Joe Duran, CEO of United Capital; and Modesto businessman Dan Costa shared their insights into what it takes to succeed in the current economy with the audience of about 1,000 people from the Modesto area. Zagaris talked about the current state of the economy. He said the Central Valley offers many opportunities for success, but many people don’t see them because of limiting beliefs, particularly about themselves. “There’s no reason why anybody can’t do well here,” Zagaris said before the event. “But at the same time, you can be held back from believing that because there’s a lot of challenging things here.” Zagaris said agriculture is the bright spot of the region’s economy. The service sector, particularly health care is also doing well. Distribution is also growing. Manufacturing, however, is a challenge. Zagaris told the audience that one way to overcome limiting beliefs is to surround yourself with positive people.

Mike Zagaris PMZ Real Estate

ELIZABETH STEVENS/CVBJ

Mike Zagaris of PMZ Real Estate, Joe Duran of United Capital and Modesto businessman Dan Costa shared their insights on business with the Modesto community Feb. 25.

“Hang around successful people,” he said. Zagaris defines success as people with well-balanced lives who are engaged. Joe Duran, CEO of the investment company United Capital, led the audience through an exercise to examine their biases about money. The quiz was based on a study released by the American Psychiatric Association, which found that 72 percent of people have an uneasy relationship with

money and are driven by fear, commitment or happiness. “People in their financial lives think about the money and really make sacrifices in their life that reflect a reality that isn’t there based in their biases,” Duran said before his presentation. Duran, who grew up in a war-torn region now known as Zimbabwe, said he is driven by fear. “You think a lot about costs. You think about sacrificing your needs in

order to find protection,” Duran. He said people driven by commitment can be very generous but often put the needs of others above their own. Those driven by happiness, the study found, are comfortable spending money but are not good savers. So, what about the other 28 percent? “The other 28 percent are either in denial or have figured out that the money serves their life and not the other way around,” Duran said. Well-known Modesto entrepreneur Dan Costa told the audience when he considers a new business venture, he thinks of bananas: he gets in while the business is green, nurtures it until it’s ripe and gets out before it’s past its prime. Costa, who started Velvet Creamery and 511 Tactical, now has four businesses in the works. Three are clothing lines, which he aims to sell as a bundle eventually. The other is a line of ready to cook, mix and match meals that will be sold at Raley’s starting in March. Please see SPEAKERS Page 46

Economist forecasts faster growth this year By ELIZABETH STEVENS Business Journal editor estevens@cvbizjournal.com

STOCKTON -- The U.S. economy should grow faster in the coming year. That was the message economist John Mitchell brought to San Joaquin County’s business community at the economic forecast breakfast, presented by the Bank of Agriculture and Commerce Feb. 5. “We’ve got low inflation, the employment is back. People are feeling better. Balance sheets are restructured. Our monetary policy, the emergency stuff is over,” Mitchell said in an interview after the event. “We should grow. I mean, look at the rest of the world. We’re one of the strong spots, if not the strong spot.” During his presentation before a group of about two hundred business leaders at the University Waterfront Plaza Hotel, Mitchell pointed out that economic data from December 2014 showed every state in the nation had showed growth and that California was ranked 16th. “I don’t remember the last time I saw all 50 states growing,” Mitchell said. Mitchell, an economic consultant and former chief economist for U.S.

Bank, said jobs were added in all sectors except the federal government in 2014 and that would be a theme that he expected to continue in 2015. Much of the optimism in the American economy is being driven by falling energy prices, Mitchell said. He told of pumping gas at a station in Idaho where the price was under $2.00 a gallon. “It just felt like you were getting away with something,” he said. That extra disposable income has led to more robust economic spending, which in turn has driven sales tax revenue. According to Mitchell, the United States is still dealing with issues from the Great Recession as well as remedies that were put in place to mitigate the recession, such as lending restrictions. He said the fact that many people, especially first-time homebuyers, have had a difficult time qualifying for loans has hurt socio-economic mobility in the country. While lower prices have helped the United States, deflation has been hurting the European economy. Under Mitchell’s list of things to ponder was whether the United States could continue to grow while the rest of the world slows.

ELIZABETH STEVENS/CVBJ

Economist John Mitchell tells local business leaders the United States is one of the strongest economist spots in the world in 2015.

Financial planner Chris Weed was at the breakfast and said he heard what he expected to hear. “Basically in 2015 you are going to see the dollar stay strong, I agree. There’s going to be flight to safety.

People are going to want to invest in the U.S.,” Weed said. “You will see a market correction. We haven’t had one of those of more than 10 percent in three years. Things are going fairly smoothly, but nobody realizes it.”

March 2015

www.cvbizjournal.com

Helping businesses make it to the next generation canderson@cvbizjournal.com

STOCKTON -- Many business owners spend a lifetime building a company with the hope of passing it on to the next generation. But how can you be sure your hard work will live on for decades to come? Cathy Cardoza-Connor wondered how to keep growing the real estate investment business her father started. “There’s no handbook or manual about how to run a family business, and I inherited an old school, traditional business and decided I needed to see if I was missing anything,” Cardoza-Connor said. Cardoza-Connor went to the Institute for Family Business at the University of the Pacific for help. “We as a family went to the drawing board and formulated a plan,” said Cardoza-Connor, who was glad she’d been proactive. “It blows my mind when family businesses don’t have a succession plan that builds a rapport within the family before an emergency strikes.” The Institute for Family Business (IFB) was founded to fill a void in Northern California where no one was helping family businesses survive, grow and pass on to the next generation. “There were no resources for them,” said Peter Johnson, director of the University of the Pacific Institute for Family Business. “The institute has programs to educate family businesses in a number of important ways, perhaps the most crucial being succession.” One-third of businesses are passed from the first generation to the second; from the second to the third generation about 13-14 percent make the move; and from the third to fourth generation only 3 percent successfully survive succession. Succession within the family usually doesn’t receive much attention. It is often assumed that decisions will be made among family members, and the company will move on, Johnson said. When problems occur, they usually stem the family members “not recognizing themselves as a family business because of the perception that family businesses are small,” Johnson said. “In fact, the majority of the family businesses we deal with are multimillion-dollar operations.” The Institute for Family Business is a resource center to help family and privately held companies meet their challenges. The institute’s programs bring together owners, managers, and family members in forums that permit them to work through family and business transitions, and develop and put in place a strategic vision for the business and family. “Parents will say the kids aren’t dedicated or the kids will feel their parents have been dismissive of their ideas, for example. Many will say, ‘We don’t have [those] problems,’” John-

son said. “But in our seminars, conferences, workshops and forums, family members realize they have issues, and that they’re not unique, that others have the same issues.” A cross-section of family businesses use the IFB’s services: car dealers, wineries, hotels, food manufacturers, farmers, real estate firms and retail. The institute designs discussion of topics for members, brings in top

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“Families usually don’t discuss challenging issues and Dad traditionally doesn’t talk about transition planning and having to pick a successor. These are difficult conversations that have to take place if the business is to transition efficiently,” Johnson said. “The question the family must ask is, ‘Are we developing the next generaPlease see FAMILY Page 39

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Central Valley Business Journal

March 2015

NURSERIES AND LANDSCAPE SUPPLY COMPANIES In San Joaquin and Stanislaus Counties. Wholesale Sales. Listed in Alphabetical Order. Wholesale Rank Company Name Address

Local Contact Local Phone Web Address

Specialty

Hours

Products

Year Est.

Burchell Nursery, Inc. 12000 State Hwy. 120 Oakdale, CA 95361

Ron Boone (209) 845-8733 burchellnursery.com

Sell only to commercial farmers and garden centers Open Saturdays 7 a.m. - noon, Jan. - Feb.

Mon. - Fri. 7 a.m. - 4 p.m.

Fruit and nut trees

Dave Wilson Nursery 19701 Lake Road Hickman, CA 95323

Robert Doolley (209) 874-1821 davewilson.com

Wholesale for commercial and retail sales proactive helpful website

Mon. - Fri. 7 a.m. - 3:30 Sat. 7 a.m. - noon

Fruit, nut and shade trees commercial sales only

1938

Delta Bluegrass Company 111 N. Zuckerman Road Stockton, CA 95206

Ed Zuckerman (209) 469-7979 deltabluegrass.com

Native and water saving varieties

Mon. - Fri. 7 a.m. - 5 p.m. Sat. 7 a.m. - noon

Largest Northern California growers of premium peat grown sod wholesale and retail sales

1978

Duarte Nursery 1555 Baldwin Road Hughson, CA 95326

John and Jeff Duarte (209) 531-0351 duartenursery.com

Commercial agriculture nursery Dry Creek Lab, microprogagation, containerized growing, clonal rootstock and tissue culture

Mon. - Fri. 8 a.m. - 5 p.m.

Permanent crops, almonds, avocados, cherries, citrus, pistachios, walnuts, grapevines and poinsettias wholesale commercial sales

1989

Green Tree Nursery 23979 Lake Road La Grange, CA 95329

Karlene Hanf (209) 874-9100 greentreenursery.com

Seasonal product December - March

Mon. - Fri. 8 a.m. - 5 p.m.

Walnut, pecan, almond and fruit trees, licensed retail sales available

1966

Hollandia Nursery, Inc. 6012 Woodland Avenue Modesto, CA 95358

Henry Vanklavren (209) 523-1006 hollandianursery.com

Patio trees and espalier trees (trellis style trees)

Mon. - Fri. 7 a.m. - 4 p.m. Spring 7:30 - 4:30 Fall

Trees, fruit, vines, shrubs, perennials and ferns wholesale commercial sales, licensed retail sales

1956

NURSERIES AND LANDSCAPE SUPPLY COMPANIES

1942

Ann Endsley (209) 523-8061 None

Hollendutch Nursery 11677 N. Davis Road Lodi, CA 95242

Arthur Duivenvoorve (209) 465-4542 None

M&M Builders Supply & Nursery Sales 8010 E. 11th Street Tracy, CA 95304

Shawn Kelley (209) 835-4172 mandmbuilderssupply.com

Morris Nursery 1837 Patterson Road Riverbank, CA 95367

Ron Hoffmann (209) 527-5553 morrisnursery.com

New Budâ&#x20AC;&#x2122;s Nursery 23563 S. Manteca Road Manteca, CA 95337

P&L Concrete Products, Inc. & Garden Center 1900 Roosevelt Avenue Escalon, CA 95320

Plants & Produce 15789 E. Harney Lane Lodi, CA 95240

Bill Renfro (209) 727-0323 None

Port Stockton Nursery 2910 E. Main Street Stockton, CA 95205

Jeff Nelson (209) 462-0853 portstocktonnursery.com

Quail Lakes Nursery/Hillside Landscaping 3404 Shadowbrook Drive Stockton, CA 95219

Hours

Specialty Other Products Services

Year Est.

Mon. - Fri. 7:30 a.m. - 4:30 p.m. Sat. 7:30 a.m. - 2:30 p.m.

Grower of 1 gallon to 36â&#x20AC;? box size shrubs and trees

1977

Mon. - Sun. 9 a.m. - 5 p.m.

Professional landscape installation irrigation, custom paths and patios

1981

Mon. - Fri. 8 a.m. - 5:30 p.m. Sat. - Sun. 8 a.m. - 5 p.m.

Fountains, landscaping services, trees, garden accessories and water plants

1979

Mon. - Sat. 7 a.m. - 5 p.m. Sun. 10 a.m. - 2 p.m.

Fruits, vegetables, shade trees, garden furniture and bedding plants

1946

Mon. - Sat. 8:30 a.m. - 5:30 p.m. Sun. 9 a.m. - 5 p.m.

Landscaping, roses and trees

1996

Todd Roddan (209) 824-7403 newbudsnursery.com

Arlene Francis, president (209) 838-1448 plconcrete.net

Landscape Install

Landscape Design

Statuary/Pottery

Ground Covering

Patio Furniture

Donald Oliver (209) 334-4545 deltatreefarms.com

Decorative Rock

Delta Tree Farms, Inc. 12900 N. Lower Sacramento Road Lodi, CA 95242 Four Seasons Farms 1660 California Avenue Modesto, CA 95358

Web Address

Sod

Local Phone

Shade Trees

Address

Local Contact

Annual/Perennial

Company Name

Delivery

Retail

Fruit Trees

In San Joaquin and Stanislaus Counties. Retail Sales. Listed in Alphabetical Order.

Mon. - Sat. 9 a.m. - 5 p.m. Sun. 10 a.m. - 4 p.m.

Full landscape design and installation and large selection of tropical plants

2007

Mon. - Fri. 7 a.m. - 5 p.m. Sat. 7 a.m. - 4 p.m. Closed Sundays

Full service nursery, over 40 bins of decorative rock, soil and bark. Custom potting is our specialty

1972

Mon. - Sat. 9 a.m. - 4:30 p.m. Sun. 9 a.m. - 2:30 p.m.

Full service nursery

1989

Mon. - Sat. 8 a.m. - 5 p.m. Sun. 9 a.m. - 5 p.m.

Roses, bulbs, deciduous trees, planting supplies, vines and cactus

1929

Steve Allen (209) 477-4737 None

Mon. - Sun. 8 a.m. - 5 p.m. Sat. 8 a.m. - 5 p.m.

Licensed landscape contractor, custom landscape construction, design and installation, gift shop

1978

The Garden Shoppee 11013 N. Davis Road Lodi, CA 95242

Tony Fugazi (209) 333-6287 thegardenshoppee.com

Mon. - Sat. 9 a.m. - 5 p.m. Sun. 10 a.m. - 5 p.m.

Landscape design

1998

The Greenery Nursery and Garden Shop 742 E. Olive Avenue Turlock, CA 95380

Jay DeGraff (209) 632-4214

Mon. - Sat. 8 a.m - 5:30 p.m. Sun. 9 a.m - 4 p.m.

Exceptional and knowledgeable staff workshops and classes

1996

The Home Depot 5010 Feather River Drive Stockton, CA 95219

Jeff Ayuso (209) 474-8285 homedepot.com

Mon. - Sat. 6 a.m. - 10 p.m. Sun. 7 a.m. - 9 p.m.

Stepping stones, bricks, water supplies and more

1978

Mon. - Fri. 6:30 a.m. - 5 p.m. Playground fiber, soil, irrigation 1980 Sat. 6:30 a.m. - 4:30 p.m. supplies, trees and bedding plants Sun. 6:30 a.m. - 4 p.m. 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 02/2015 14

Westurf Nursery 1612 Claus Road Modesto, CA 95355

Elena Welch (209) 576-1111 westurf.net

March 2015

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11013 N. Davis Road Lodi, CA 95242 | www.thegardenshoppee.com

Desert style garden

Traditional style garden

With California on its second year of drought, water conservation doesnâ&#x20AC;&#x2122;t mean you have to have a desert landscape. We can help you conserve water without compromising your yardâ&#x20AC;&#x2122;s aesthetics.

Central Valley Business Journal

March 2015

A crippling leadership disease

Anthem hack puts customers on alert

I am fortunate that I get to work with lots of amazing leaders. Of course I also come across those who are sadly incapable of leading their people and organizations in a positive direction. Many of these organizations represented by challenged leaders are at a crossroads and face severe challenges that could cripple them for months or years to come. Poor leadership has a far greater negative impact than lack of capital, competition or economic downturn. The ailment that affects many of these leaders as well as millions around the world is something I like to call “Leadership Distortus.” In essence, it is a distorted sense of one’s leadership ability, and it becomes evident when the leader feels they bring a perceived value to the group that doesn’t exist. Left unchecked, it can have damaging, even catastrophic results for the organization. Leaders afflicted with this disease think of themselves as great leaders. Some of them even have track records to prove it. Unfortunately, just because you think you’re a great leader doesn’t make you one. Remember going to the carnival as a kid and walking into the house of mirrors where you could see yourself as short or tall, fat or thin? Imagine if you were to take one of those mirrors home with you and put it up in your house. (I’m guessing most of us would take the thin mirror.) Each day as we leave to go out in the world we would look into the mirror, revel at our skinny physique and proudly state, “I’m thin!” Sadly, just because we have a distorted view of ourselves and think

we are thin, doesn’t make it true. In the same way, just because we tell people we are a great leader doesn’t make it so. When strategic plans are created around a leader’s unrealistic view of their own ability, it usually leads to less than desirable results. Imagine a leader conducting strategic planning which requires creating and getting buyin to a shared Peter Johnson vision. Let’s supPacific - Eberhardt pose the team School of Business doesn’t trust your motives or isn’t convinced that you have a longterm commitment to the organization. What if they find out that you have been less than truthful or that you omitted important facts when sharing plans with the team? What if you are asking for input on a potential plan while simultaneously implementing a parallel strategy? These can all eliminate trust, confidence and respect in you as a leader, and it can ultimately render you ineffective. Leaders who find themselves with Leadership Distortus need to be given a clear and accurate understanding of their leadership abilities. Otherwise Leadership Distortus will lead to Leadership Ineffectus and potentially the death of their career. So how can you tell if you have a

distorted view of your leadership ability? If you experience any of the following symptoms you might have Leadership Distortus: •If good employees are leaving, you might have Leadership Distortus. •If your employees have no respect for you, you might have Leadership Distortus. •If you are not having healthy conflict during discussions, you might have Leadership Distortus. It is easy to blame problems on employees for the dysfunctions of the organization, poor work habits, complaining, turnover and lack of progress on projects. The worse our employees become the easier it is to confirm our own diagnosis of the problem: the employees are lazy, spoiled and complain too much. In reality it may stem from leadership issues at the top. What’s the best medicine for Leadership Distortus? First, talk with those you respect but are not be part of your inner circle. Be open to constructive criticism. Ask a person loyal to the organization to give you a clear and honest assessment of your leadership abilities. Next, really listen to the people whom you are entrusted to lead. It is easy to dismiss criticism but my experience has taught me that there is usually at least a little truth in everything. If you find yourself at odds with the staff, your board or other colleagues, at some point consider that the problem could be you. Finally, figure out creative ways to address the criticism and begin to rebuild trust. If you can’t rebuild trust in the organization, then it is time to leave.

A cyber-security firm in Virginia said it has found a link between Chinese government-sponsored researchers and the hackers who broke into the database of the second-largest health insurer, Anthem Inc. Investigators said they believe it was the same group who previously targeted a U.S. defense contractor. They made the link through the unique malicious software used in both attacks. Anthem’s database contained personal information for 80 million customers and employees. That information included names, birthdays, addresses and Social Security numbers. as many as nine million non-customers could also have been affected. However, no medical information or credit-card or bank-account numbers appeared to have been compromised. There have been no signs that data has been sold on the black market, investigators said. Anthem offers Blue Cross Blue Shield plans in California and in a number of other states. The attack was detected in late January, and the company said it didn’t know exactly how many people were affected or how hackers obtained the information it needed to breach the database. Anthem said it would notify everyone whose information was stored in the hacked database with a letter and email. It is also setting up an informational website to provide a creditmonitoring service. Security experts recommended that Anthem customers change their username and passwords for all accounts associated with their Anthem accounts.

One of the most dramatic changes this tax season has to do with what property and business owners can deduct immediately and what has to be capitalized. In 2013, the IRS released the Final Treasury Regulations governing repair and capitalization issues under Internal Revenue Code Section 263. They became effective Jan. 1, 2014. This article is an overview of those changes. If you have questions about your situation, consult your tax professional. The five main areas of concern with the regulations are materials and supplies; repairs and maintenance; capital expenditures; amounts paid for the acquisition or production of tangible property; and amounts paid for the improvement of tangible property. Materials and supplies Generally, the costs of materials and supplies are deducted in the tax year first used or consumed. Materials and supplies refers to tangible property used or consumed in the taxpayer’s business. It does not include

inventory. In order to be eligible, it must be a component that is acquired to maintain, repair, or improve a unit of tangible property owned, leased, or serviced by the taxpayer. However, it must not be acquired as part of any single unit of tangible property. Materials and supplies can include fuel, lubricants, water, and similar items that Jason Harrel are reasonably Calone & Harrel expected to be Law Group used in 12 months or less. It must also cost less than $200 to buy or make. Materials and supplies are subject to the de minimis safe harbor discussed below. Repairs and maintenance Routine maintenance can also be currently deducted under the regula-

tions. Under the routine maintenance safe harbor, an amount paid is deductible if it is for recurring activities that the taxpayer expects to perform to keep a piece of property in its ordinary operating condition. Maintenance is considered routine if the taxpayer expects to maintain the property more than once. The regulations expand the routine maintenance rules to include buildings and their structural components. Maintenance activity is covered for buildings if the taxpayer reasonably expects to maintenance them more than once over a 10-year period. Capital expenditures The regulations also allow taxpayers to elect out of expensing repair and maintenance costs and treat them as capitalized expenditures subject to depreciation on their books and records. Taxpayers must elect to capitalize these costs on their tax returns, and once elected it cannot be revoked. Amounts paid for tangible property The regulations provide a de minimis safe harbor to acquire or

Clear Vision

Repairs: deduct immediately or capitalize?

Taxing Matters

The repair regulations require annual elections attached to your tax return.

produce tangible property. The de minimis safe harbor allows the current deduction of the cost for the acquisition or production of a unit of tangible property. Under the regulations, if taxpayers have applicable financial statements and written policies in effect before expenses are incurred, they can deduct up to $5,000 of the cost of an item of property per invoice. Without an applicable financial statement and written policy governing the expensing practices, the de minimis amount is $500 per invoice. Please see TAXING MATTERS Page 39

March 2015

CVBJ

TAXING MATTERS Continued from Page 38

This de minimis safe harbor has to be elected by attaching a statement to your tax return. An applicable financial statement is one that is required to be filed with the SEC, a certified audited financial statement or a financial statement (other than a tax return) required to be provided to the federal or a state government or any federal or state agency (other than the IRS or SEC). Accordingly, each taxpayer should make the de minimis safe harbor election and make sure their accounting policy is set forth in a written document effective as of the start of the

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tax year.

Capitalization Lastly, the regulations still require the capitalization of amounts paid to improve a unit of tangible property. A unit of property is improved if amounts are expended by a taxpayer that result in a betterment to the unit of property, a restoration of a unit of property, or to adapt a unit of property to a new or different use. The regulations adopt a safe harbor for small taxpayers with buildings. The regulations provide for an annual safe harbor election for build-

ings owned or leased by a taxpayer with an unadjusted basis no greater than $1 million. However, the taxpayer must be a small taxpayer with average gross receipts of less than $10 million. Under the safe harbor, taxpayers are not required to capitalize improvements if the total amounts paid for repairs, maintenance, improvements and similar activities for the year do not exceed the lesser of $10,000 or 2 percent of the unadjusted basis of the building. Amounts deducted under the de

minimis safe harbor for repairs and maintenance count toward the $10,000 ceiling. The repair regulations require annual elections attached to your tax return, require a written policy governing the expensing of tangible property, and may require an applicable financial statement. Business owners should discuss these issues with their tax professionals and make or adopt the appropriate elections and written policies effective as of the beginning of tax year 2014.

FAMILY Continued from Page 35

tion of leadership?’” Families must create best management practices for their business and then they must use them and put policies into place before they’re needed, Johnson said. Whatever the issue, Johnson says communication is key. To help families understand and work through their challenges, five two to three-hour programs are held annually with national and regional experts to share insights on business history and challenges. The wide range of topics covered include effective communication in the family business, estate and succession planning, sibling rivalry and separating family and business responsibility. Affinity groups made up of six to eight IFB members meet monthly to confidentially discuss issues most critical to them. The topics are: The next generation and the senior generation (in preparation). “The idea is to allow members to share similar challenges that others in the group may be able to help resolve through their own experiences,” Johnson said. An advisory board makes sure the program is moving in the right direction by offering input on the programs, topics, speakers and new and inventive ideas. “The IFB partners perform a crucial role,” Johnson said. “They provide sponsorship dollars, expertise, potential program members and other resources needed to assure the success of the program. Also, the partner ‘subsidy’ reduces the cost of the program for our Family Business Members.” The partners include the law firm Neumilller and Beardslee, accounting firm Moss-Adams, family business consultant Evolve Partner Group, insurance firm Richard R. Paulsen of New York Life, and Exchange Bank. Cardoza-Connor said it’s best to use the IFB before your company’s succession has hit the rocks. “The IFB is often seen as a place to go when your business is in crisis mode, and I wanted to be proactive and learn how to be successful in my father’s business and keep family members involved.”

ACTUALLY, GETTING LOTS OF EMAILS CAN LOWER YOUR BLOOD PRESSURE. Our members can email directly with their doctor’s office, which in turn allows them to spend more working time in your office.

DISCOVER A BETTER WAY kp.org/choosebetter

Central Valley Business Journal

March 2015

CREDIT UNIONS In San Joaquin and Stanislaus Counties. Firms are Ranked by Total Assets as of Dec. 30, 2014. (NA) Ranked last in Alphabetical Order. Rank

Company Name Address

Manager or CEO Total Assets Total Shares/Deposits

Total Loans

Donna A Bland (877) 465-3361 golden1.com

$8,800,995,877 $4,487,160,882

$4,711,883,802 77,975,983

Anyone who lives or works in the 34 represented Counties of the 58 CA Counties is eligible to join

1933

Dortha Young (209) 943-2455 oefcu.org

$884,318,529 $720,757,895

$425,865,789 $9,078,526

Members and family members of Operating Engineers Local 3

1964

Henry E. Barrett (209) 549-8500 valleyfirstcu.org

$525,853,084 $467,594,301

$261,271,671 $2,445,734

61,996

Live, work, worship or attend school in Fresno, Madera, Mariposa, Merced, San Joaquin, Stanislaus or Tuolumne County

1956

Michael Patrick Duffy (209) 948-6024 fccuburt.org

$386,340,210 $289,334,853

$156,578,374 $791,746

32,018

Family member or employment by county and city government, medical professionals in SJC, members of SJC Bar Association or other small employee groups

1954

Persons who live, work attened school or worship in Stanislaus or San Joaquin Counties

1957

1959

Phone Web Address

Number of Membership Requirements Net Income Members

Year Chartered

Golden 1 850 W. March Lane, Ste. A Stockton, CA 95219

Operating Engineers Local 3 1818 Grand Canal Boulevard, Ste. 1 Stockton, CA 95242

Valley First Credit Union 1005 W. Orangeburg Avenue Modesto, CA 95350

Financial Center Credit Union 18 S. Center Street Stockton, CA 95202

Uncle Credit Union 1829 West 11th Street Tracy, CA 95376

Janice Silveria (925) 447-5001 unclecu.org

$295,291,966 $261,376,596

$175,846,677 $1,160,833

MOCSE Central Valley Credit Union 3600 Coffee Road Modesto, CA 95355

Tracey Kerr (209) 572-3600 mocse.org

$233,179,956 $211,293,574

$72,553,876 $1,050,724

30,571

Persons who live, work, worship or attend school in or do business in Stanislaus County Visit Web site for information on requirements

Central State Credit Union 919 N. Center Street Stockton, CA 95202

David Silvestri (209) 444-5314 centralstatecu.org

$150,128,582 $135,912,729

$92,866,482 $995,232

21,083

Community charter, San Joaquin, Calaveras, Tuolumne, Armador or Stanislaus counties

1936

Premier Community Credit Union 3315 W. Benjamin Holt Drive Stockton, CA 95219

Paul Yang (209) 235-1100 premierccu.org

$129,115,152 $43,386,588

$51,181,401 $550,914

11,182

Community charter, live, work or go to school in San Joaquin County, family members and specific employees SBA Loans, available to members

1979

California Community 3600 Sisk Road Ste. 4-L Modesto, CA 95356

Elena de Anda (209) 544-3971 caccu.org

$56,661,615 $49,420,145

$22,937,202 -$317,281

7,304

Live, work, worship in Stanislaus County. Certain unions, SaveMart stores and employees

1939

Rolling F Credit Union 2101 Geer Road, Ste. 401 Turlock, CA 95382

Douglas A. Aleson (209) 634-2911 rollingf.com

$45,723,160 $37,662

$8,813,493 -$39,475

6,226

Visit Web site for requirements

1948

Mokelumne Federal Credit Union 531 N. Mills Avenue Lodi, CA 95242

Liz Maynard (209) 334-3200 mfculodi.org

$45,440,680 $39,781,222

$16,877,946 $298,427

6,142

Live, worship, work, attend school, businesses and other legal entities located in the San Joaquin County

1959

Modestoâ&#x20AC;&#x2122;s First Federal Credit Union 430 12th Street Modesto, CA 95354

Sherry Khamo (209) 521-2020 m1fcu.org

$30,513,672 $10,702,172

$6,180,709 -$76,608

2,458

Employees of city of Modesto, Hughson and more Visit Web site for additional requirements

1940

Golden Valley Federal Credit Union 409 W. Center Street Manteca, CA 95336

Gail Freer (209) 825-5878 goldenvalleyfcu.org

$25,011,329 $8,259,675

$7,338,031 $2,692

2,967

Lives, work, worships and/or attends school in Manteca and Ripon Unified School District Boundary

1953

Allied Trades Credit Union 2131 W. March Lane Stockton, CA 95207

Frank C. Michael (209) 235-9119 alliedcu.org

$22,135,885 $18,994,066

$5,200,307 -$27,854

2,669

Live, regularly work, regularly worship or attend school in the incorporated and unincorporated areas of Stockton, California

1953

Eagle Credit Union 1401 Lakeshore Drive Lodi, CA 95242

Dan Robertson (209) 340-2100 eaglecreditunion.com

$20,031,644 $18,324,747

$6,786,472 -$299,989

2,975

Live, work, worship or attend school in San Joaquin or Stanislaus County, employee of one of our selected employer groups or a family member of existing member

1929

Organized Labor Credit Union 2112 McHenry Avenue Modesto, CA 95350

Sara Klein (209) 527-8731 olcu.org

$19,543,642 $2,999,507

$5,992,678 $49,655

3,892

Locals and retirees in certain counties of California, immediate family members related by blood, marriage or legal action to the credit union member and union locals

1974

Stockton Community Federal Credit Union 125 Bridge Place, Fl 1, Ste. B Stockton, CA 95202

Cindy Hodson (209) 933-9275

$5,160,165 $4,541,811

$1,780,850 -$73

726

Live, work, worship or go to school in the Port of Stockton/Boggs Tract Area/ family members of current FCU members

1951

March 2015

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Central Valley Business Journal

March 2015

Personal cell phones and the company dime Smartphones are everywhere, and so chances are good that virtually all the employees at your business have one. Because these devices are so ubiquitous, business owners may be oblivious to how employees use them every day, but it could cost them. Following a recent court ruling in California, when an employee’s personal cell phone Bruce Sarchet Attorney, Littler is used to make Mendelson Law Firm a work-related call or to send a work text or email, the employer may be required to pay a portion of the employee’s cell phone bill. As always, employers are advised to consult independent legal counsel with specific questions, as this article does not substitute for the advice of counsel. In that California court case, Cochran v. Schwan’s Home Services, a customer service manager sued his employer to recover expenses for the work-related use of his personal cell

Human Element

phone. The employee filed a class action claim on behalf of himself and his co-workers. He claimed he was required by his employer to use his personal cell phone for work-related purposes. However, no claim was made that members of the class had an increase in their personal cell phone bill because of the work-related calls. Indeed, many members of the potential class didn’t even pay their own bills. Those bills were instead paid by family members. By way of background, California Labor Code section 2802, obligates employers to reimburse employees for “…all necessary expenditures or losses incurred by the employee in direct consequence of the discharge of his or her duties...” The court concluded that when an employee must use his or her personal cell phone for work-related calls, reimbursement of the personal cell phone bill is required. The court stated that an employer must provide reimbursement of “a reasonable percentage of the employee’s personal cell phone bills.” Reimbursement is required even when the employee’s bill was not increased due to work-related use of the phone. This is because “otherwise the employer would receive a windfall” by “passing its operating expenses onto the employee,” the court ruled.

The court’s ruling is significant. Previously, employees were not entitled to reimbursement unless they actually incurred an expenditure or loss necessary to perform their duties. Now, regardless of any actual employee expenditure or loss, employees are entitled to reimbursement whenever their use of personal property could be considered a windfall for the employer because such use would otherwise be an operating expense. Reimbursement is thus required for mandatory use of personal cell phones even if the employee has an unlimited-minutes plan or an employee’s family member pays the bill. The fight in the courts is not over. The matter was sent back to the trial court for further review, including a determination of whether a class action is appropriate in this case. In the meantime, what should business owners do? First, employers might implement a written policy that use of a personal phone is not required to complete job duties. Ongoing monitoring is advised because reimbursement may still be required if supervisors are, in fact, regularly communicating with employees via the employees’ personal smart phones. Second, employers can consider providing employees with a company-

BUSINESS JOURNAL PHOTO

owned phone. This could be quite expensive, but doing so would make it clear that use of personal phones is not mandatory. Third, if an employer needs to communicate with employees on their personal phones, then a reimbursement mechanism must be developed. Unfortunately, no guidance has been provided regarding what is reasonable. BusiPlease see HUMAN ELEMENT Page 46

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209.946.2956 westgate@pacific.edu Pacific.edu/Westgate

March 2015

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Keeping house flipping from flopping Interested in getting into the real estate game as a primary or side business? Buying, renovating and selling a house for profit, commonly referred to as “flipping” a house, can be a fast way to make a sizable return on an investment. After all, you can make $50,000 or more per flip and do it in just under 90 days. However, it’s important to understand what it takes to be successful in this type of business venture. It starts with understanding the concept of house flipping. It’s defined as buying a run-down or “fixer upper” property at below market value, increasing its worth through renovations and updates, then rapidly re-selling it for a quick profit. This is different from development investing, in which the buyer purchases a property under development, then sells or rents the unit when it’s ready for occupancy. Before you can even begin looking for a property to flip, it’s important to understand the actual process of buying a house. Consulting with a Realtor to learn how to qualify for a loan, make an offer, negotiate and transact the purchasing contract is the first step down the road to success. If you’ve bought a home before or are already familiar with the process, you can begin to think about the type of

house you want to buy. There are a number of considerations in finding the right house to flip: • The current market for buying and selling a house. It’s a seller’s market right now, thanks to low inventory of available properties to buy, so you’ll need to do your homework to find a deal that can yield a profit. • How much work the property needs. The Michael Blower improvements 2015 President, you make should Central Valley be ones that add Assoc. of Realtors substantial value to the house, yet require the least amount of time and money. These can often be cosmetic changes like new paint, cleaned up landscaping and updated fixtures. • Houses that have broad appeal. The average family is looking for three-bedroom homes that fall in the middle to upper range of the market – $200,000-$500,000 – so you want to look for properties that can be placed on the market in that price range and be

Bringing it home

suitable for a family. • Desirable neighborhood features. Although you will be looking for a below-market house in poor condition, it’s important to consider neighborhoods that offer good schools, high “walk scores” for safety, low street traffic and noise, and other things that add to a quality of life. Once you’ve found the right house and neighborhood, it’s time to get your financing in place. If you don’t have cash reserves for the full purchase of a house, you’ll have to secure a loan. This means you’ll need to have your credit in good standing and have the ability to meet down payment requirements. Be sure to secure several thousand dollars more in your loan in order to have the money necessary to make repairs and renovations. The next step is getting the house professionally inspected. This is a key step but one often overlooked by house flippers because of costs. Knowing what major repairs are needed will help eliminate surprises in the future sales process which can impact your profit. Once you know what work needs to be done to improve the property’s value, it’s time to start renovating. Remember, you won’t be living in this house so don’t spend time or money decorating it in your own style. This

is a profit-making venture for you, so don’t get attached to the house. Make sure you perform every repair and renovation in a professional manner so that the quality of the work is there. You don’t want to open yourself up to a future lawsuit by the buyer for hidden defects or shoddy work. Flipping a house can be risky because you’re incurring a large amount of debt for a potential payoff in the future. However, if the home doesn’t sell quickly for any reason, you will find yourself paying a mortgage and property taxes, and working to maintain the property. You need to be in a financial position to assume that kind of additional expense. In a worse case, you may have to sell a home for less than you bought it for, if the market takes a downward turn and you need to unload the house. The amount of physical effort required is also a potential risk. How fit are you and how willing are you to do a lot of the work involved yourself in flipping the house? If you’ve never done renovations or fixes before, it will be a steep learning curve and the less you know, the longer it’ll take to flip the house. If you feel up to the task, however, house flipping can be a lucrative way to increase your income.

Four ways to boost value in commercial property I was impressed recently with a local commercial property owner’s plan for improving the tired multi-tenant retail strip center he bought. The property had been on the market for quite a while, but through creativity, discipline and some hard work, he converted the worn-down strip center into an investment quality asset. First he updated the outside of the building with new paint and landscaping. Then he converted the existing tenants from month-to-month leases to triple-net leases that now have at least a one-year term. After that he chose not to renew a lease with a longterm tenant that had a lower rental rate and was able to bring in a nationally branded franchise with a significant lease term. The result was that he dramatically increased the value of the property. Property owners have several tools they can use to raise the value of their properties but many overlook some of the options they have. Buildings must be positioned so that occupancy can be increased and rents can be raised to market or above rental rates. Here are four strategies for increasing the value of your commercial property. Cosmetic changes Among the lowest cost and highest impact ways of improving a property is to upgrade the landscaping and add a fresh coat of paint with an upto-date color scheme. Modern façade

changes are more expensive but will also significantly change the look and feel of a building. Another approach is to update a building’s signage. This can have a dramatic effect on the property as tenants are more visible to their customers and therefore have a greater sense of pride in their location. Also, naming a building and feaJoe Muratore turing that name Principal, appropriately NAI Benchmark in your signage First Commercial gives the building character and a personal quality. It can contribute to a building’s sense of history or its purpose in serving its current tenants. Update leases Building improvements set the stage for asset value improvement, but it is of no use unless leases get signed and, especially on class B and C quality office buildings, this can be a major challenge. Sometimes, getting deals done requires creativity and a greater sensitivity to a tenant’s needs and goals. To achieve that, consider including

Business Space

using shorter lease periods, introductory or tiered rental rates and more substantial free rent periods. It also often makes sense to offer incentives to current tenants to encourage them to recruit other tenants. In some cases, where high vacancy has persisted, the old adage that some money is better than no money applies, and the rental rates a landlord may have once achieved are not in line with the current market. Getting new tenants into the building, even at a lower cost, can bring new energy and momentum to the building and further attract other tenants. Often this means that landlords must “incubate” tenants by starting them at lower rates and on smaller spaces and providing room for them to grow. Re-evaluate rents Landlords must make sure that building rents are at or above market rates. Long-term tenants often have below market, month-to-month rates based on their historical occupancy. By allowing this to continue property owners give up part of their earnings and depress the property’s value by keeping the net operating income lower. Often this occurs because a landlord has developed a relationship with a tenant and is not willing to have a difficult conversation. When lease terms are up it is important that landlords work for small

improvements each time. A property that has a bunch of back-of-the-napkin, month-to-month leases will be penalized in value. Cleaning up the leases takes time and effort but has a significant impact on value. Manage and share costs Expenses tend to grow over time, and it is very important that landlords regularly get new bids on their insurance, maintenance, management and security costs to make sure they are the best they can be. A great tip for adding value to a building is to insist on a triple-net structure, in which the tenant becomes responsible for costs beyond rent, such as insurance, taxes and maintenance. A property owner may need to reduce his base rental rate to accomplish this. This is attractive to a future buyer of the property because it limits their risk to changing property costs. Above all else, you must have a current plan and strategy for your property. Landlords and property professionals tend to get complacent over time. Buildings have all sorts of challenges, but every building can be improved, and it is important that owners keep applying fresh ideas and put in the hard work to maximize their investment. Otherwise, when they or their heirs eventually sell, a new investor will do the work and achieve the value that the former owner didn’t have the time, capital or vision to achieve.

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SAN JOAQUIN COUNTY

BRIEFS Pacific meets need for data crunchers STOCKTON — University of the Pacific students attending the School of Engineering and Computer Science will have a new degree option in the fall. The school will begin offering a new Master of Science degree in analytics at its state-of-the-art campus in San Francisco. The field offers high-paying jobs and is currently suffering from an acute shortage of trained professionals. The program will offer courses such as data engineering, machine learning and data visualization that will help teach students not only how to crunch data but how to use the information to help their businesses prosper. A recent KDnuggets survey showed that the average data scientist in North America makes about $135,000. Those serving as analytics managers earn about 25 percent more. Students in the program can earn a master of science degree after taking courses using a hybrid system of classroom and real-time online approaches. The degree will be take three semesters over a yearlong program. The program will also offer certificate programs for professionals seeking additional education for professional advancement but aren’t seeking a full master’s degree.

Tracy Community Grants Program awards $400,000 TRACY — Seventeen local organizations will receive a combined total of $400,000 from Sutter Tracy Community Hospital and the Tracy Hospital Foundation. The two organizations operate the Community Grants Program which addresses the needs outlined in the Community Health Needs Assessment of San Joaquin County. The Community Grant recipients are: Boys and Girls Club of Tracy, Children at Risk Resources Foundation Inc., Coalition of Tracy to Assist The Homeless, Community Medical Centers Inc., Family Resource and Referral Center, Holistic Approach to Recovery and Transitions, Gospel Center Rescue Mission Inc., Hospice of San Joaquin, Lammersville Unified School District, McHenry House Tracy Family Shelter, River Islands Technology Academy, Second Harvest Food Bank of San Joaquin and Stanislaus County Inc., Sow A Seed Community Foundation, St. Mary’s Dining Room, Tracy Interfaith Ministries, Tracy Seniors Association and Tracy Volunteer Caregivers. “These grants help make a significant impact toward improving the health and well-being of the residents in Sutter Tracy Community Hospital’s service area-which includes Tracy, Lathrop, Mountain House and Manteca,” said Regional Vice President of Philanthropy Jennifer Svihus. Sutter Tracy Community Hospital and the Tracy Hospital Foundation started the Community Grants Program in 2014. Organizations interested in applying for the 2016 Community Grants Program can contact the Sutter Tracy Community

Hospital Community Benefit office at (209) 832-6511.

No price hike for Stockton Thunder season tickets STOCKTON — Stockton Thunder hockey fans won’t face a price hike for full season tickets next season, despite the club’s move to the higher level AHL. The team’s new owners, the Calgary Flames, announced Feb. 18 that full season tickets prices will range from $380 for upper end zone seats to $980 for glass seats. As a result of the team’s purchase by the Calgary Flames, the club will move to the AHL next season after spending its first decade in the ECHL. The AHL is the equivalent of AAA hockey. Season tickets offer deep discounts over walk-up sales and give buyers special perks. “The Flames have once again shown their commitment and dedication to the future of hockey in Stockton by announcing that full season ticket prices will not increase for our inaugural season in the AHL,” Team President Dave Piecuch said in a release. “We are pleased to be able to offer the highest level of minor league hockey in the world, right here in Stockton, and being able to freeze our full season pricing as we embark on this new chapter is very exciting for our fans.” Those interested in learning about season tickets should call (209) 373-1500.

RTD gets grant for more electric buses STOCKTON – San Joaquin Regional Transit District (RTD) has received a $4.7 million grant to expand its electric bus fleet, the district announced Feb. 6. The grant will allow RTD to purchase five 40-foot Proterra CatalystTM battery-electric buses and an additional Proterra fast-charging station, the district said. RTD expects to take delivery of the buses and charging station by the summer of 2016. RTD is one of 10 agencies that will receive a share of $55 million in funding through FTA’s Low and No Emission Vehicle Deployment (LoNo) Program. RTD launched its electric bus program in 2013 with two fast-charge zero-emission vehicle (ZEV) Proterra buses through a $2.56 million grant from the California Energy Commission. RTD was the first transit agency in Northern California, and only the fourth in the nation, to operate fullyelectric buses.

Bokisch Vineyard unveils new label LODI — Bokisch Vineyards has a new label. Tizona, the name of the sword of the legendary 11th century nobleman and Spanish warrior, El Cid, will grace the new label from the Lodi vineyard. Bokisch has released its first Old Vine Zinfandel from grapes grown in the Kirschenmann Vineyard under its new label. The vineyard was planted in 1915 and is located in Lodi’s Mokelumne River AVA. Only 99 cases of the Old Vine Zinfandel were produced. While Bokisch continues to produce and sell its Spanish heritage wines under the Bokisch Vineyards label, the new Tizona label will give it room to experiment and grow, according to the vineyard.

March 2015

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STANISLAUS COUNTY

BRIEFS Stanislaus Regional 9-1-1 gets new leader MODESTO — Captain Joel Broumas from the Modesto Police Department will be the new director of the Stanislaus Regional 9-1-1 Emergency Dispatch Joint Powers Authority (JPA). The JPA voted for Broumas to have the job at its Feb. 18 meeting. He will be assigned to the position for the next year. Broumas’ primary duty will be leading the SR 9-11 operations and helping evaluate the recommendations included in the recent study completed by the Matrix Consulting Group. Broumas has been with the Modesto Police Department since 1990 and has more than 30 years of experience in law enforcement. Broumas has steadily risen up the ranks at the Modesto Police department. He was promoted to sergeant in 1997, lieutenant in 2000 and captain in 2005. “We are excited to have Captain Broumas join the SR 9-1-1 team,” said Modesto City Manager Jim Holgersson in a release announcing the move. “Captain Broumas is a proven leader with a steadfast dedication to serving the citizens of our community.”

Patterson to take input on downtown project PATTERSON — Business owners and residents will have a chance to give their input on design and economic development for downtown Patterson. Royston Hanamoto Alley and Abey (RHAA), a consulting firm, will take ideas for the downtown Patterson visioning project and present them March 27 at the Hammon Senior Center. Participants will have a chance to vote on which ideas they like best. On March 28, there will be another meeting at City Hall, which will include a walk through downtown as well as a discussion of priorities and funding options.

Central Valley Facilities Expo set for March 18 MODESTO — The only facilities and green buildings event in the Central Valley will be held March 18-19 at Modesto Centre Plaza. The expo is an opportunity to reach a diverse audience of facilities industry professionals who exhibit at Central Valley Facilities Expo. The expo features the latest in building technology trends, workshops with leading Central Valley companies and exhibits from dozens of vendors. Learn more at facilitiesexpo.com/FECV.

Modesto’s North Point Landing has new owner MODESTO — Phillips Edison Grocery Center REIT II, Inc. announced Wednesday that it has added North Point Landing on McHenry Ave. in

March 2015

Modesto to its holdings. The real estate investment trust acquired the 152,769 square foot grocery store-anchored shopping center to add to its portfolio of California properties. The property is anchored Walmart Supercenter and includes stores such as GNC, T-Mobile, the UPS Store, Allstate and Round Table Pizza. The company currently owns and manages a portfolio consisting of 22 grocery-anchored shopping centers totaling 2.5 million square feet.

CSU Stanislaus hires sex assault victim advocate TURLOCK — In an effort to improve its campus culture, CSU Stanislaus has hired its first confidential sexual assault victim advocate. The goal is to affirm the university’s commitment as a safe, learning-conducive campus and to help students learn to distinguish between acceptable and unacceptable dating behavior. Victim advocate Sarah Beal began work in December. She is on campus full-time to assure victims confidentiality, compassionate counseling and resource referral, Beal the university said. Beal has previously worked as a trauma response advocate and staffed the crisis hotline at Haven Women’s Center, Stanislaus County’s only agency for domestic violence and sexual abuse. At CSU Stanislaus, she plans to launch awareness campaigns using her academic background in film production and media. Her hiring was part of a CSU system-wide goal to have an advocate on each campus by June 15.

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MERCED COUNTY

BRIEFS Home appointed Merced city attorney MERCED -- Randolph Hom is the new city attorney for the city of Merced. He was appointed by the City Council Feb. 2. Before coming to Merced, he served as the Senior Deputy City Attorney for the City of San Jose. He was responsible for civil litigation and trials arising from police misconduct, personal injury, dangerous conditions, employment practices, and land use. Hom replaces Greg Diaz, who Hom was Merced’s city attorney for 10 years. He left to become the Ventura City Attorney. Hom’s annual salary is $180,000.

UC Merced joins forces with Kathmandu University

MODESTO — The Central Valley Public Relations Organization (CVPRO) is taking entries for the 2014 Excellence in Communication Awards Program. The program honors outstanding achievement in communication and public relations for Central Valley communication professionals. To be eligible, entries must have been created and published, broadcast, displayed or used between Jan. 1, 2014 and Dec. 31, 2014. The program is open to any PR professional in San Joaquin, Stanislaus or Merced County. The cost is $50 for each entry before March 20 or $75 for each entry received between March 21 and April 1. Learn more about the awards at centralvalleypro.com. Winners of the Excellence in Communication Awards will be announced at an awards reception hosted by CVPRO on April 15.

MERCED – The University of California-Merced joined forces with Kathmandu University during a ceremony Feb. 26 in Nepal. The two schools signed a memorandum of understanding that will allow faculty, staff and student exchanges, joint research projects, the exchange of academic publications and information and the promotion of other academic activities. It’s the first formal collaboration between the two fastgrowing schools. “All universities seek international partners,” said Dean of the UC Merced School of Social Sciences, Humanities and Arts Mark Aldenderfer in a release announcing the deal. “The more established UC campuses have many partners at some of the most prestigious universities in the world. We see our partnership with Kathmandu University as a first step in building bridges to other nations with universities that are appropriate to UC Merced’s scale and size.” The schools said they plan to explore collaboration on new ideas, technologies and services that will benefit the lives of the least prosperous people of the San Joaquin Valley.

Library expands online offerings

Grant will help laid-off workers retrain

The Stanislaus County Library is expanding its downloadable content. Customers, who have been able to download audiobooks since last fall, can now download or stream free music, movies and television programs through Hoopla, an online digital media service. Library customers may borrow up to six items per month through Hoopla. To begin borrowing online, customers need a library card to create a Hoopla account linked to the Stanislaus County Library. Customers can also use the mobile app to access their content. Content can be checked out for time frames ranging from three days for movies to 21 days for audio books. All content is automatically returned at the end of the borrowing period, so there are never any late fees. For more information and instructions on setting up an account, visit www.stanislauslibrary.org.

MERCED -- The Merced County Workforce Investment Board will receive an additional $950,000 to help retrain nearly 200 laid-off workers in the county. The grant was awarded by the California Employment Development Department (EDD). The grant is in addition to the $500,000 the EDD gave the Madera Workforce Board, which serves

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300 additional laid-off workers. The money helps provide investments in the Central Valley to help unemployed workers transfer to careers in growing industries. The funds are part of the Rapid Response Program, which mobilizes resources to regions suffering from mass layoffs. The Merced board is helping more than 500 laid-off workers in Atwater, including 441 who lost jobs at an AT&T call center and another 91 workers who lost jobs when Mi Pueblo grocery store closed. The current funds will allow the Merced Workforce Investment Board to work with the America’s Job Center of California’s locations in Merced and Los Baños, local adult schools and training providers at the County Office of Education and Merced Community College to provide aid to workers.

Conservation agreement to protect ranch Dry Creek Ranch, at the base of the Sierra Foothills, will be protected because through a conservation agreement between owners Roy and Dana Richards, the U.S. Bureau of Reclamation, U.S. Fish and Wildlife Service, California Wildlife Conservation Board, Natural Resources Conservation Service, and California Rangeland Trust. The Richards family will continue to operate their cattle ranch. The 4,417-acre stretch of land on Dry Creek Ranch that is home to grasslands, vernal pools, blue oak woodlands, riparian habitats as well as the wildlife will remain undisturbed by development. California Rangeland Trust holds the conservation easement encumbering the land. “This beautiful working ranch is a thriving home to plants and animals very important to California’s ecology,” CEO of California Rangeland Trust CEO Nita Vail said in a release about the partnership. “It’s a prime example of how rangeland is a critical part of healthy landscapes in California that not only contribute wildlife populations and habitat, but to our quality of life and the greater good of our communities.” The ranch was designated “critical” to meeting the California Rangeland Conservation Coalition Planning Goals and is included within the U.S. Fish and Wildlife Service’s Recovery Plan for Vernal Pool Ecosystems of California and Southern Oregon (2005).

Growers to get water update MERCED — The Merced Irrigation District will host a meeting to update local farmers about the drought. The next meeting is at 1 p.m., Wednesday, March 25 at the Merced County Fairgrounds. MID said the meeting is a forum to receive the most current information about the 2015 irrigation season. Water storage at Lake McClure remained at just 8 percent in late February. The district said it is preparing for a season in which no surface water will be allocated for irrigation.

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

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March 2015

Voters chime in on state issues in latest Field polls STOCKTON -- For the first time in more than a decade, half of Californians think the state is heading in the right direction, according to the Field poll. The poll’s results, released Feb. 25, revealed that 50 percent of those surveyed think the state is on the right track as opposed to 41 percent who think it’s on the wrong track. That is a massive shift from 2010 when 80 percent of voters felt the state was on the wrong track. Field polls have consistently shown voters believing the state was on the wrong track over the last 15 years. The coastal communities were most likely to be more upbeat with 54 percent of voters thinking the state is moving in the right direction. Voters inland still believe the state is heading in the wrong direction by a 51 to 43 percent margin. Voters have mixed views on the state Legislature however, with 42 percent approving of the job they do and 44 percent disapproving. That is a big improvement over past polls. In the span between 2003 and 2013, the legislature’s approval rated only in the mid 20s. Voter were inclined to help out K-12 education, with 52 percent saying schools should get the extra money should the state bring in more revenue than expected. That priority

was followed by higher education (36 percent), roads and transportation (28 percent) and healthcare (26 percent). Governor Brown Gov. Jerry Brown has the support of the majority of Californians according to a separate Field poll Nearly 59 percent of voters surveyed approved of Brown’s performance in office while just 32 percent said he was doing a poor job. The perception, among 69 percent of those surveyed, that he has the right experience to deal with the state’s problems was the primary driving force behind the high numbers. A majority also believe that he has the right vision (54 percent) to lead California and has turned the state’s finances around (53 percent). One of the knocks against the governor is that a majority (57 percent) believe that he favors too many big government projects the state can’t afford. That could hamper his drive for both his legacy projects-- high-speed rail and water projects -- that are expected to cost billions of dollars. Still, the governor enjoys support among large demographic, regional and political subgroups. Voters who identify themselves as strongly and moderately liberal support Brown by 80 and 70 percent margins. Those living in the Bay Area, where Brown was mayor of Oakland, give him

“The most trusted source of positive, local business news in San Joaquin and Stanislaus counties. Providing value to readers by helping them grow their business, grow their careers and increase their bottom line through print, digital and local events.” “The most trusted source of positive, local business news in San Joaquin and Stanislaus counties. Providing value to readers by helping them grow their business, grow their careers and increase their bottom line through print, digital and local events.” “The most trusted source of positive, local business news in San Joaquin and Stanislaus counties. Providing value to readers by helping them grow their business, grow their careers and increase their bottom line through print, digital and local events.” “The most trusted source of positive, local business news in San Joaquin and Stanislaus counties. Providing value to readers by helping them grow their business, grow their careers and increase their bottom line through print, digital and local events.” “The most trusted source of positive, local business news in San Joaquin and Stanislaus counties. Providing value to readers by helping them grow their business, grow their careers and increase their bottom line through print, digital and local events.” “The most trusted source of positive, local business news in San Joaquin and Stanislaus counties. Providing value to readers by helping them grow their business, grow their careers and increase bottom line through print, digital and local Andy their Prokop, President/CEO events.” “The most trustedUnited sourceWay of positive, local of San Joaquinbusiness County news in San Joaquin and Stanislaus counties. Providing value to readers by helping them grow their business, grow their careers and increase their bottom line through print, digital and local events.” “The most trusted source of positive, local business news in San Joaquin and Thecounties. Central Valleyvalue Business a great way Stanislaus Providing to readersJournal by helpingis them grow their business, grow their careers and increase their bottom line through print, digital and local for our United Way to share our message about the events.” “The most trusted source of positive, local business news in San Joaquin and Stanislaus counties. Providing valueback to readers by helping them live grow better. their business, importance of giving to help others grow their careers and increase their bottom line through print, digital and local is read enjoyed our business events.” “TheItmost trustedand source of positive,by local business news inand San Joaquin and Stanislaus counties. Providing value to readers helping them grow their business, community leaders in bytwo counties. grow their careers and increase their bottom line through print, digital and local events.” “The most trusted source of positive, local business news in San Joaquin and Stanislaus counties. Providing value to readers by helping them grow their business, grow their careersCENTRAL and increase VALLEY their bottom line through print, digital and local events.” “The most trusted source of positive, local business news in San Joaquin and Stanislaus counties. Providing value to readers by helping them grow their business, STOCKTON • TRACY • MANTECA • LATHROP • LINDEN • RIPON MODESTO CERES • TURLOCK •print, OAKDALE • PATTERSON grow their careers and• LODIincrease their bottom line • through digital and local events.” “The most trusted source of positive, local business news in San Joaquin and

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The Field poll found 79 percent of people favor road repairs, but just 49 percent would raise taxes for them.

69 percent approval rating. Those who consider themselves middle of the road and those with no party affiliation approved of Brown’s job performance by 59 and 54 percent respectively. Not surprisingly, the only groups giving Brown very poor marks are Republicans (61 percent give him a poor rating) and strong conservatives (67 percent poor rating). Road maintenance Road maintenance is very popular in theory; paying for it brings less consensus, according to a third Field poll. Voters are strongly in favor of spending more to improve roads with 71 percent of voters in favor of such a notion in the Field poll, released Feb. 27. New road construction was favored

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by 48 percent of voters surveyed. However when it comes to where the money should come from, there is no consensus. Voters were evenly divided on upping the gas tax with 49 percent favoring an increase and 48 percent opposed to such a move. There is widespread opposition to letting the state install electronic devices on motor vehicles that would measure the amount of miles driven so taxes could be levied on a per mile basis instead of at the pump. Sixty-six percent oppose the idea while only 30 percent thought that was a good idea. Californians also aren’t in favor of creating more toll roads with 55 percent of voters opposing that idea and only 38 percent favoring it.

SPEAKERS Continued from Page 34

He said he chose to pursue those businesses because they are scalable. “The game I’m playing now, if it’s not national or global, I’m out. I’ve got to go for bigger stakes,” Costa said. Costa said it’s also important to get into a business you understand. He has experience in both the food and clothing industries. Costa may have started and sold many businesses but he’s always stayed in Modesto. He has a fruit analogy for that as well. “If you were a fruit inspector and

CVBJ

you took a watermelon off a truck and tested it, that would be a core test of what all those watermelons would taste like,” Costa said. He believes Modesto is a good test market for products. “If you could make it here, you’d probably be OK in St. Louis.” After the presentations, there was a question and answer session followed by break-out session where people who get more targeted help with their business questions. The event was presented by United Capital’s Modesto office.

HUMAN ELEMENT Continued from Page 42

ness owners are advised to develop, in writing, a standardized approach and apply that approach to all employees in a particular job classification. Alternatively, an employer could automatically reimburse employees for what it believes is a reasonable reimbursement, with the understanding that any employee can submit documentation for additional reimbursement. Remember that reimbursement for business expenses is non-taxable to the employee, but if the reimbursement exceeds the actual expense, the amount of the excess is taxable. Finally, realize that other personal

items may also be impacted: personal laptop computers, tablets, the home Internet connections to use them, and even the humble dinosaur of a home landline telephone could all be the subject of claims for reimbursement. We live in a world that is dependent on smartphone communications. Business owners in the Central Valley today should audit their current practices for communicating with employees. Appropriate steps should be taken to comply with the obligation to reimburse employees if they are required to use their personal cell phones for business purposes.

March 2015

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Central Valley Business Journal

March 2015

See Our Progress in the Central Valley

Theresa

Customer Relationship Manager

“

Tracy residenT

as a mom, I know that every dollar saved can make a big difference to a family. that’s why I’m proud that PG&e is committed to helping our customers save energy and money.

”

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See the FaCtS IN the CeNtral Valley Surveyed more than 8,100 miles of gas distribution pipeline Invested more than $565 million into electrical improvements Connected more than 25,000 rooftop solar installations

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