Inside Tucson Business 01/20/12

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THEY WROTE THE BOOK ON MEDICAL TOURISM MedToGo connects patients with foreign medical providers to trim health care costs PAGE 10

Your Weekly Business Journal for the Tucson Metro Area WWW.INSIDETUCSONBUSINESS.COM • JANUARY 20, 2012 • VOL. 21, NO. 33 • $1

Clear the streets, no events allowed Streetcar may drive away special events and business from downtown Page 3

s nstrate n demo t at the o n r e G as obo Dr. Thominci surgical r edical M the da Vity of Arizona Univers Center.

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Medicaid cuts Some patients are running out of treatment options Page 4

44-year low

J.D. Fitzgerald photo

New home permits fell to under 1,500 Page 19

Oro Valley resident Keith Colmer is Virgin Galactic’s first astronaut pilot Inside Tucson Business Former U.S. Air Force test pilot Gerald “Keith” Colmer of Oro Valley will pilot the first space flight of Virgin Galactic, which aims to give passengers the thrill of experiencing five minutes of weightlessness at a cost of $200,000 per ticket. Colmer, 44, was selected from more than 500 applicants by Richard Branson, the London-based billionaire who launched the commercial space venture. Colmer’s competition included 10 current and former astronauts. Beginning in 2013, Virgin Galactic

plans to fly passengers into space. Using a carrier aircraft, they will depart from Spaceport America in Las Cruces, N.M. At 50,000 feet, a reusable rocket plane will separate and blast away. Colmer will fly the craft manually to the edge of outer space, about 60 miles above Earth. At that point of sub-orbital altitude, passengers will become weightless and be able to see the curvature of the Earth. So far, 380 customers have made reservations, depositing some $50 million. The entire trip takes about 2½ hours. Upon re-entering the atmosphere, the

six-passenger spaceship will land on a runway back in New Mexico. Colmer, whose aviation nickname is Coma, has joined chief pilot David Mackay for flight training and testing of Virgin’s revolutionary aircraft over the Mojave Desert in California. Colmer brings to Virgin Galactic 12 years of operational, developmental and experimental aircraft test flight experience and more than 10 years of Air Force experience in spacecraft operations and flying. He served two tours in Iraq with the Colorado Air National Guard as an F-16 combat pilot. With over 5,000 hours in 90 differ-

ent aircraft, Colmer was the first Air National Guard pilot admitted to the U.S. Air Force Test Pilot School at Edwards Air Force Base in California. Colmer holds a bachelor’s degree in aeronautics and astronautics from the Massachusetts Institute of Technology. Both his masters’ degrees are from the University of Colorado in aerospace engineering and telecommunications. He also is a graduate of the Air Force’s Undergraduate Space Training Program and the Euro-NATO Joint Jet Pilot Training Program.

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JANUARY 20, 2012

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NEWS

Tucson streetcar could put brakes on downtown events

Ventana Medical, Bayer team for cancer tests Ventana Medical Systems Inc. is collaborating with Bayer Pharma AG to develop a diagnostic test for a new biological cancer therapy. The test marks another step toward personalized medicine in cancer treatment. The molecular test is expected to identify patients most likely to benefit from Bayer’s drug, called an antibody-drug conjugate (ADC). Ventana Medical’s technology will analyze the expression level of certain tumor targets serving as biomarkers in clinical studies. Under the Bayer agreement, Ventana Medical will develop, manufacture and commercialize a test for one of Bayer’s drugs. Ventana Medical, a division of Roche Group, is headquartered at 1910 Innovation Park Drive, Oro Valley.

Marijuana law faces one more legal hurdle

Samantha Sais photo

A scene from the 2009 Club Crawl, one of the events the modern streetcar project could force to close or relocate.

By Patrick McNamara Inside Tucson Business As Tucson’s modern streetcar project inches forward — city officials opened bids and the apparent low bidder was $6.6 million under the city’s engineer’s estimate of $62.4 million — a new reality has surfaced that could harm or end many popular long-standing events that take place either downtown or in the university area. Tucson officials have begun to inform the organizers of various events that they may no longer be able to continue as they have in the past using streets on which the streetcar will travel.

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City officials say it’s a two-fold issue: Safety and a requirement that disruptions to streetcar service be kept to a minimum. “Does this make sense for the future of the city of Tucson?” asked Jeb Schoonover, a concert and event promoter. Schoonover and others with strong ties to downtown events have raised concerns about the streetcar, which voters approved in May 2006 as part of the 20-year $2.1 billion regional transportation plan. Schoonover, who helps promote the biannual Club Crawl, said businesses see tangible benefits from the events and that if they end, the very businesses that are supposed to benefit from the streetcar could be

negatively affected. “They think the streetcar will bring people downtown, that remains to be seen,” Schoonover said. “What we know is these events bring thousands of people downtown.” City officials close Congress Street during Club Crawl, which is sponsored by the Tucson Weekly. (The Tucson Weekly is owned by Wick Communications, which also owns Inside Tucson Business.) “Our two Club Crawl events draw a total of about 24,000 people downtown each year,” said Tom Lee, group manager for Wick properties in Arizona and publisher

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PUBLISHER THOMAS P. LEE tlee@azbiz.com

STAFF WRITER PATRICK MCNAMARA pmcnamara@azbiz.com

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Inside Tucson Business (ISSN: 1069-5184) is published weekly, 53 times a year, every Monday, for $1 per copy, $50 one year, $85 two years in Pima County; $6 per copy, $52.50 one year, $87.50 two years outside Pima County, by Territorial Newspapers, located at 3280 E. Hemisphere Loop, Suite 180, Tucson, Arizona 85706-5027. (Mailing address: P.O. Box 27087, Tucson, Arizona 85726-7087, telephone: (520) 294-1200.) ©2009 Territorial Newspapers Reproduction or use, without written permission of publisher or editor, for editorial or graphic content prohibited. POSTMASTER: Send address changes to: Inside Tucson Business, P.O. Box 27087, Tucson, AZ 85726-7087.

Gov. Jan Brewer says she won’t pursue any further legal challenges to Arizona’s voter-approved medical marijuana law but a lawsuit filed by a dispensary company could result in further delays in licensing dispensaries. The lawsuit filed in July by Compassion First LLC challenges some of the rules set by the state that restrict who can operate a dispensary. The rules include state residency requirements, a prohibition against people with prior bankruptcies and other limits Compassion First lawyers say were not in the law approved by voters in November 2010. On Jan. 13, Brewer announced she will allow marijuana dispensaries to open after U.S. District Judge Susan Bolton on Jan. 5, dismissed a lawsuit filed by the state. “It is well-known that I did not support passage of Proposition 203, and I remain concerned about potential abuses of the law,” Brewer said. “But the state’s legal challenge was based on my legitimate concern that state employees may find themselves at risk of federal prosecution for their role in administering dispensary licenses under this law.”

EDITION INDEX Public Notices Lists Profile Briefs Meals and Entertainment Arts and Culture People in Action

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Calendar Inside Media Finance Real Estate & Construction Biz Buzz Editorial Classifieds

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When people think of Tucson, Mayor Jonathan Rothschild wants science and technology to be top of mind. “Not only do we have the intellectual capital but we have the environment that attracts people,” Rothschild said at his weekly news conference held Jan 13 at the University of Arizona’s Bio5 Institute. “The reason I wanted to come here today is because we have a vision for the city as science city and technology city.” Rothschild praised Bio5 for bringing together the many scientific disciplines at the University of Arizona and for helping to spin out 16 businesses from faculty research efforts. He said the institute brings in as much as $325 million annually to the local economy. James Gentile, Ph.D., president of the Research Corporation for Science Advancement, the climate and environment of Tucson also could attract considerable science and environment tourism. “We could create a science-based tourism industry,” Gentile said.

Two mobile home parks bought for $11.5 million Privately held American Manufactured Communities REIT (AMC) has purchased two Tucson mobile home communities for a combined total of more than $11.5 million. The properties acquired are Mesa Ridge, 1402 W. Ajo Way, and Home Town Country Club, 5600 S. Country Club Blvd. The developments were part of a $144.4 million, 16-property portfolio that was acquired from Hometown America Communities, a Chicago-based private consolidator. Stuart Wenick, a senior executive with Grandbridge Real Estate Capital, the company that financed the deal, said the Mesa Ridge loan was for $5.9 million and the Home Town property loan was for $5.65 million. The 40-acre Mesa Ridge community, opened in 1964, has 290 sites and Home Town, opened in 1985, has 245 lots on 36.5 acres.

Looking for Tucson’s 2012 Up & Comers The hunt is one to find young professionals in Southern Arizona who are on their way to greatness. Inside Tucson Business wants to honor them in the 2012 class of Up & Comers. These are people in their 20s, 30s and early 40s who are already making a difference for the better in their careers and in the community. Honorees will be announced in a special section in April 13 issue of Inside Tucson Business. Nominate yourself or someone you know. Go to www.InsideTucsonBusiness.com and click on the Up & Comers and fill out the form as best you can. The deadline is Feb. 22.

NEWS Governor makes a day of it in Tucson From left, Joe Rivera, general manager of Bombardier’s Tucson Service Center; Gov. Jan Brewer; Stan Younger, vice president of aircraft services for Bombardier; and Gary Martin, vice president of sales, marketing and service programs for Bombardier, at a Bombardier Global business jet at the company’s Tucson Service Center. The tour was part of a trip made by Brewer on Wednesday. Bombardier officials thanked state officials, the Arizona Commerce Authority and Tucson Regional Economic Opportunities for their help in allowing the company to expand the service center, the only one in the nation where Bombardier services both commercial and business aircraft. The center, established 35 years ago, currently has more than 700 employees. Brewer spent much of Wednesday in Tucson, later attending the dedication of the University of Arizona’s Center for Innovation at the UA Tech Park, S. Rita Road. The Arizona Center for Innovation (AzCI) is a nonprofit, high tech business incubator. In July 2010, Brewer announced a $1.5 million state grant for AzCI to advance the technology commercialization.

J.D. Fitzgerald photo

Mayor wants Tucson to be ‘science city’

INSIDE TUCSON BUSINESS

Brewer opens with budget that would spend more on education, technology; reduce debt By Hank Stephenson Inside Tucson Business PHOENIX — The budget battle began at the state legislature this week, as the joint appropriations committee took a briefing on the governor’s budget proposal, which includes some backfilling of recent reductions, but still bears scars from the cuts. Gov. Jan Brewer’s proposed 2012-2013 fiscal year budget totals $8.96 billion, up from this year’s $8.3 billion budget. Most of the new spending would go toward onetime expenditures such as debt reduction, technology upgrades and backfilling previously withheld education funding instead of funding state programs that were either cut or eliminated in recent years. “There’s a lot of thought around the Capitol community that the cuts we made over the past couple of years were temporary cuts — that is false,” John Arnold, budget director for the governor, told members of the joint appropriations committee on Tuesday. “These were cuts in the baseline of the state budget. We need to look at the problems that the state has today and not look backwards at what we used to do.” Under Brewer’s proposal, the state’s university system will double the number

of degrees awarded by 2020. To that end, she has proposed a $15 million bump in funding for the three universities — University of Arizona, Arizona State University and Northern Arizona University — to increase retention rates and degree output. Most of that money would be directed toward ASU and NAU. The UA would face another financial blow under Brewer’s plan to redraft funding the state universities based on a more equitable per-student formula. Currently the UA receives the highest funding on a per student basis. Brewer’s budget would put aside $10 million in scholarships for community college students who work full time and are in need of tuition help. Students could receive up to $2,000 a year for two years. Among other budget proposals: • $200 million to K-12 schools for soft capital, which includes computers and textbooks, and hasn’t been fully funded in 2008. • $50 million to fund reading programs in kindergarten, first and seconds grades to prepare students for a third-grade test called “Move on When Reading,” which, starting in 2013, students would be required to pass before going into the fourth grade. • $95 million would go toward upgrad-

ing the state’s information technology infrastructure, specifically to include the state Department of Economic Security’s unemployment system and the Department of Corrections’ prisoner management system. • $50 million for new prison beds that would relieve counties from taking prisoners serving terms of less than a year. • A 5 percent pay raise to state employees willing to transfer out of the state’s personnel system to become at-will workers. The change would cost job security but would allow the state better reward and punish its workforce, according to Brewer. This year is the first since 2008, at the start of the recession, that state officials have not faced a budget deficit. Brewer’s proposed budget contains almost $600 million in surplus, which lawmakers and the governor have said they want to put aside until 2013 when the state’s temporary additional one-cent sales tax expires and 2014 when federal health care reform legislation takes effect. Among other things not included in Brewer’s budget proposal is a reinstatement of state-funded all-day kindergarten, which was dropped in 2009-2010 budget year.

InsideTucsonBusiness.com

JANUARY 20, 2012

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NEWS

Healthcare services for all suffering from impact of Medicaid cuts By Alicia Moura Inside Tucson Business It has only been about three months since state officials instituted cuts to the state’s Medicaid coverage but already the impact is being felt by healthcare providers and consumers. The cuts rolled back an expansion of the Arizona Health Care Cost Containment System (AHCCCS) that was approved by voters in 2000, which extended coverage to childless adults earning up to 100 percent of the federal poverty level, or $10,890 annually. Prior to that, coverage was only available to those earning 34 percent of the federal poverty level. The cuts, which are expected to save the state up to $500 million started with an enrollment freeze in July among the expanded population, which eliminated coverage for more than 100,000 people. According to AHCCCS officials, most of those were people who had lost their jobs, or who couldn’t afford health insurance until they became so sick they had no other options. For Tucson organizations and health care facilities, sick individuals with no other options are now knocking on the doors of other Tucson healthcare providers desperately seeking help. Although providers say they are providing care on a case-by-case basis, the additional numbers are about to become overwhelming. “We have had over 45 people since September that have had their coverage cut mid-treatment. These are not just breast cancer patients, but all types of cancers,” said Jaimie Leopold, executive director of Susan G. Komen for Southern Arizona. “There was a large influx in September after the benefits were cut of people who were in the middle of treatment. Now, we are getting about two to three per week of newly diagnosed patients that have been cut from the program.” Leopold says the Komen organization is working closely with other providers, including Arizona Oncology, the University of Arizona Cancer Center, Tucson Medical Center and St. Elizabeth’s Health Center to do what they can to guide, support, and treat these patients. “Our network has been instrumental in helping us deal with this. The individual physicians at Arizona Oncology and the University of Arizona Cancer Center are trying to do everything they can. Tucson Medical Center has been working tirelessly with us. This is a remarkable set of partnerships and we are dealing with it on a case-by-case basis as the calls come in,” Leopold said.

St. Elizabeth’s alone is receiving up to four calls per week from patients seeking treatment. According to Iris Vazquez, patient services director for St. Elizabeth’s, it has been a difficult few months. She said her organization is diagnosing people who have never before been sick. Some are homeless, some have no income, some live with someone else and, in some cases, the cost of medication can be too much. “People have to realize, this is often the working poor, the guy making $7.50 an hour and working 30 hours a week because he can’t get 40. And when they get laid off, they

WHAT IT MEANS

“We have had over 45 people since September that have had their coverage cut midtreatment. These are not just breast cancer patients, but all types of cancers.” — Jaimie Leopold, executive director of Susan G. Komen for Southern Arizona.

don’t qualify. We have been beating our heads to work with those in the community to help,” Vazquez said. Mareya Bullard, 34, is one such individual. She was working as a restaurant manager until early 2011 when her employer unexpectedly closed down. Suddenly finding herself unemployed, and uninsured, in a down economy for the first time in her life, Bullard began searching for another job. Then, after an emergency room visit in March, she was diagnosed with breast cancer. Hospital administrators helped her get enrolled in AHCCCS which allowed her to begin what was expected to be 27 weeks of chemotherapy treatment but just over half way through treatment, she was advised her coverage was deniged to the July enrollment freeze that eliminated coverage to adults without children. “I was devastated. I didn’t know what to do. I didn’t have any money. It’s not like it’s cheap and it was scary having nowhere to turn while being sick, going through chemo and dealing with the stress of cancer,” Bullard

said. She appealed the decision but was denied again. “Basically, its not fair what they are doing. They aren’t looking at cases or people. I was lumped into a group and never looked at as an individual…it was just a blanket decision,“ she said. “I am not trying to work the system, I just need help.” Somewhat luckily for Bullard, individual physicians at the Arizona Cancer Center agreed to discount her rates, calling drug companies for free chemotherapy drugs, and putting her in touch with Susan G. Komen and St. Elizabeth’s for legal guidance. Despite the help, after a double mastectomy in December and a round of radiation that has followed, the bills are piling up and Bullard has no idea how she’s going to pay them. Every week, healthcare workers say they hear similar stories. Vazquez related one about a 22-year old University of Arizona student who was enrolled in AHCCCS with her family but at 19 had to apply and missed the cutoff. She had an aggressive form of cancer and had a mastectomy. She needed two more treatments to complete her course. Another story involved a woman was on AHCCCS with her 19-year-old son. She went in to renew, but since her son had turned 19, she was no longer eligible and was unable to continue treatment. Leopold believes these cuts played a role in the December restructuring announcement by Carondelet Health Network that will reduce the healthcare provider’s workforce by 5 percent. Two lawsuits have been filed seeking to reinstate the cuts but the courts have not ruled favorably. An Arizona Court of Appeals panel on Dec. 6 upheld the state’s right to implement the enrollment freeze and confirmed the authority to repeal the expansion despite the fact that it was approved by voters, as Proposition 204 in 2000. “I think that this was a fundamental misunderstanding in the midst of trying to balance the budget. I don’t think that legislators really understood what the extreme costs are to people and to local economies with this,” said Leopold. “This is not an equation that can be done on a spreadsheet. It needs a more thoughtful bipartisan dialogue in the near term. We need more innovative strategies to deal with the current structure, because the current structure is broken. When we continue to try to roll down the road with a flat tire, everything begins breaking. We need to stop trying to drive something that is broken.”

This Week’s

Good News Match Play fan improvements The Accenture Match Play Championship returns to the Ritz-Carlton Golf Club, Dove Mountain Feb. 20-26 and there are some fan-centric improvements this year. For starters that nonsense about bringing in cell phones has been eliminated so now business people no longer have the excuse of being removed from connectivity. Of course, that can be seen as good or bad. Also, for Sunday’s championship, all ticket holders will be able to “follow-theleaders” where the ropes will be taken down after each hole and fans will be given the unique chance to walk the fairways and view the greens from a player’s perspective. The Accenture Match Play Championship has been played at Dove Mountain each February since 2007 and last year was given a one-year extension to stay and now the hope is for another extension, provided Tucson-area fans continue to support the event. For ticket or hospitality packages contact any member of the Tucson Conquistadores or go online at www.tucsonconquistadores. com or call (520) 571-0400 or toll-free at 1-800-918-4653.

The Tucson

INSIDER Insights and trends on developing and ongoing Tucson regional business news.

Vaughan out at MTCVB The other shoe has fallen at the Metropolitan Tucson Convention and Visitors Bureau with word that Rick Vaughan has submitted his notice of retirment as the organization’s senior vice president of sales and marketing. Vaughan became the flash point last year between the MTCVB and Pima County officials that led to a performance audit that faulted senior management for an inability to keep pace with other Arizona destinations when it comes to marketing Tucson. CEO Jonathan Walker announced in September he is retiring, also in March, and it was seen as highly unlikely that Vaughan’s contract as the No. 2 in the organization would be renewed. Vaughan had been with the MTCVB since the summer of 1999. Previously he had been director of sales and marketing for Sheraton Birmingham Hotel, Birmingham, Ala., and worked in the Tucson region at the Sheraton El Conquistador Resort & Country Club and at the Omni Tucson National Golf Resort & Spa.

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PUBLIC NOTICES Selected public records of Southern Arizona bankruptcies and liens.

BANKRUPTCIES Chapter 11 Business reorganization Longfellow Investments Inc., 1026 S. Camino Seco. Principal: Robert C. Stewart, president. Estimated assets: More than $100,000 to $500,000. Estimated liabilities: More than $100,000 to $500,000. Largest creditor: RCS Engineering Inc., $125,000. Case No. 12-0492 filed Jan. 11. Law firm: Tilton & Solot John E. Jacob and Cecelia S. Jacob doing business as Zytoon LLC and El Parador Restaurant, formerly doing business as John E. Jacob Enterprises Inc., 2905 E. Eighth St. Principal: John E. Jacob and Cecelia S. Jacob, joint debtors. Estimated assets: Less than $50,000. Estimated liabilities: Less than $50,000. Largest creditor: Not filed. Case No. 12-0567 filed Jan. 11. Law firm: Eric Slocum Sparks John E. Jacob Enterprises Inc., 2905 E. Eighth St. (principal assets at 2744 E. Broadway). Principal: John E. Jacob, president. Estimated assets: Less than $50,000. Estimated liabilities: Less than $50,000. Largest creditor: Not filed. Case No. 12-0584 filed Jan. 12. Law firm: Eric Slocum Sparks Golf, GRAB LLC doing business as Turquoise Hills Golf & RV, 800 E. Country Club Drive, Benson. Principal: Arthur L. Bale, manager. Estimated assets: More than $1 million to $10 million. Estimated liabilities: More than $500,000 to $1 million. Largest creditor: Cochise County Treasurer, Bisbee, $38,111.00, and Weber Drilling, St. David, $27,750.00. Case No. 12-0725 filed Jan. 13. Law firm: Altfeld & Battaile

FORECLOSURE NOTICES Liquid River Inc. 14850 W. Jalisco Road, Arivaca 85601 Tax parcel: 302-54-006A Original Principal: $64,000.00 Beneficiary: John G. and Jeanne L. Lindell Revocable Trust, Green Valley Auction time and date: 11:30 a.m., March 30, 2012 Trustee: Jason P. Sherman, First American Title Insurance Company, 9000 E. Pima Center Parkway, Scottsdale

INSIDE TUCSON BUSINESS

CONTINUED FROM PAGE 3 of the Tucson Weekly and Inside Tucson Business. “If the city wants them to have a pedestrian-friendly view of downtown, this is the time to make it happen.” Schoonover said the events represent the most successful nights of the year for many of downtown’s bars and restaurants. It’s not just downtown events that the streetcar could have an adverse impact on. Events in the Main Gate Square area and along Fourth Avenue also could be affected, although the city has agreed to a specific exemption for the spring and winter Fourth Avenue Street Fairs. Other events that could feel the brunt of changes include the monthly Second Saturdays, Tucson Meet Yourself, the Centurions’ annual fundraising event that was held downtown last year for the first time, the annual Dia de los Muertos procession, some car shows held along Fourth Avenue and smaller events, including those that request closure of Congress Street in front of the Fox Tucson Theatre to roll out a red carpet. City officials, however, say they plan to work to accommodate as many events as possible. “We recognize that special events are a crucial part of the downtown experience,” said Shellie Ginn, program manager for the streetcar project. “We’re not interested in shutting down any events.” Ginn said that safety concerns could make it necessary for some of the events to find alternative locations. The Dia de los Muertos procession in particular, she said,

would likely not be allowed to use Fourth Avenue and Congress Street as it has for more than 20 years. That event, each November, has many participants holding floats and banners that pose a safety risk because of the overhead power lines the streetcar will use. Ginn also said the Federal Transit Administration (FTA) demands that service on the line experience minimal disruptions. The FTA is contributing at least $62 million toward the entire $196.8 million project and an applications has been submitted for another $26.45 million from the federal agency. “One of their expectations of us is running on a regular basis,” Ginn said. “They would prefer that there be absolutely no closures.” Ginn said the streetcar should be considered less of a tourist attraction and more of a transportation system. For that reason, the FTA is allowing the streetcar to cease operations for only the twice-a-year Fourth Avenue Street Fairs. Ginn said city officials negotiated with the federal government to allow the closures because of the size of the street fairs and the number of people it attracts — an estimated 200,000 each weekend. FTA officials even came to Tucson to attend the street fair to understand the size of the event before making their decision, Ginn said. An FTA official didn’t want to comment specifically about the Tucson project.

Tucson City Councilman Steve Kozachik said the decision to allow the street fair but not other events was shortsighted. “We could do the same for the other events that we did for the street fair,” Kozachik said. “I’m sure it was not a creative solution.” He said the city should go back to the negotiating table with the FTA to allow temporary closures of the streetcar so other events can continue. He also noted that the project still has a potential $25 million funding gap that needs filling. The 3.9-mile modern streetcar system is expected to cost more than $90 million to build. The federal government plans to provide than $100 million of funding. Another $88 million will come from the sales-taxfunded Regional Transportation Authority, $11 million from local utilities and $4.6 million from the city. City officials plan to have more information and plan to help accommodate special events by the end of the year, Ginn said. Among the possibilities, Ginn said, the city would look at ways to continue to hold events along the streetcar route. A committee of city public safety and Arizona Department of Transportation officials plans to begin meeting to answer some of the questions about special events.

Contact reporter Patrick McNamara at pmcnamara@azbiz.com or (520) 295-4259.

Reece Industries LLC 3407 E. Benson Highway 85706 Tax parcel: 140-05-0190 Original Principal: $250,000.00 Beneficiary: Bayview Loan Servicing LLC, Coral Gables, Fla. Auction time and date: 11:30 a.m., April 5, 2012 Trustee: Asset Foreclosure Services Inc., 5900 Canoga Ave., Suite 220, Woodland Hills, Calif.

Valencia Limited Liability Company 6838-6850 S. Tucson Blvd., 2320 E. Aragon Road, 2310 E. Valencia Road, 2355 E. Elvira Road 85706 Tax parcel: 140-42-0420, 140-42-0570, 14042-0520, 140-42-0580 and 140-42-0600 Original Principal: $3,228,000.00 Beneficiary: Sterling Savings Bank, as successor in interest by merger to Sonoma National Bank, Spokane, Wash. Auction time and date: 10:30 a.m., April 10, 2012 Trustee: Michael R. Urman, DeConcini McDonald Yetwin & Lacy, 2525 E. Broadway, Suite 200 Valencia Limited Liability Company 2332 E. Weiding Road, 2299 and 2385 E. Valencia Road, 6838-6850 S. Tucson Blvd., 2320 E. Aragon Road and 2310 E. Valencia Road 85706 Tax parcel: 140-28-032B, 140-28-033B, 140-28-035B, 140-42-0420, 140-42-0520, 140-42-0540, 140-420550, 140-42-0570, 142-42-0580 and 140-42-0600 Original Principal: $2,932,000.00 Beneficiary: Sterling Savings Bank, as successor in interest by merger to Sonoma National Bank, Spokane, Wash. Auction time and date: 10 a.m., April 10, 2012 Trustee: Michael R. Urman, DeConcini McDonald Yetwin & Lacy, 2525 E. Broadway, Suite 200

The route of the modern street car.

City of Tucson | Illustrative marks by Inside Tucson Business

RECI INC. (Re-recorded and amended to exclude one condominium unit that previously had been included) 1449 W. Kilburn Road, Units 1101, 1102, 2101, 2102, 2103 and 2104, 85705 Tax parcel: 106-12-3020, 106-12-3030, 106-12-3050, 106-12-3060, 106-12-3070, 106-12-3080 and 106-12-8090 Original Principal: $853,005.05 Beneficiary: City Central Development Corporation Defined Benefit Retirement Plan and Trust Auction time and date: 11:30 a.m., June 28, 2011 Trustee: First American Title Insurance Company, National Default Title Services, 9000 E. Pima Center Parkway, Scottsdale

InsideTucsonBusiness.com

JANUARY 20, 2012

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PROFILE

MedToGo writes the book on quality medical services outside U.S. By Clayton R. Norman Inside Tucson Business In 2000, when Dr. Robert Page and his sons, Curtis and Robert R. Page, started MedToGo International they wanted to write a book. Now, they help people travel to places such as Mexico and Costa Rica to get quality medical services for a fraction of what they would pay in the United States. “The objective of this company was specifically to write books for travelers,” said Robert R. Page, MedToGo’s operations officer. “We made a book called ‘The Mexico Health and Safety Travel Guide.’ It’s a 600page almanac of the best healthcare in Mexico. The objective was to just start off with a few cities, but we totally expanded this thing and covered around 50 cities. We broke it up into regions, we visited tons of hospitals. We visited tons of doctors and by the time we realized it was way too big of a project, we were already so deep into it that we just had to see it through.” In 2007, MedToGo International, based in Tempe, published its third book, Page said. That was around the same time Dr. Page, who did his medical training at the Autonomous University of Guadalajara, and his sons, who studied at Harvard Medical and Georgetown University respectively, started facilitating trips to Mexico for friends who wanted to avoid exorbitant pricing and cantankerous insurance providers in the U.S. Their first customer, a friend who needed an immediate hysterectomy, went to Hermosillo, Sonora, and paid $5,000 for a surgery that would have cost her $35,000 in Arizona, Page said. Another family friend, and customer number two, found out three days before he was scheduled for a double

knee replacement that his insurance carrier had declined to pay for the surgery. He went with the Pages to a hospital in Mexico and paid $13,000 rather than the $60,000 he would have had to pay out of his own pocket in the U.S, said Page. “The guy was back on the golf course with my dad in a few months,” said Page. “And he was doing yoga three or four months after that. He came to us and was our first impetus. We really dug into this and we realized it wasn’t that difficult given all the contacts we already had and our relationships.” Page said he, his father and brother started making trips to Mexico to inspect hospitals and operating rooms and to start to build relationships with medical specialists. Now, Page said, they BIZ FACTS facilitate about 15 to 20 proceMedToGo International dures a month and add about two new customers a month as The MedTo Go staff: Dr. Curtis P. Page, top row from left, Julie Rake 5030 S. Mill Ave., Suite D-12 PA-C, Dr. Robert H. Page, Rosa Senior, Bonnie Segles FNP, and Kelly Brywell. Tempe 85282 ant RN. Bottom row, from left: Veronica Verdugo, Nicole Casella, Stacia “It’s slow growth,” said Page. www.medtogo.com Mendez and Dora Mendoza “But it’s manageable and at the (480) 785-2700 or toll-free and any post-surgery care or rehabilitation spent same time we’re getting great ttourists 1-866-633-8646 services that might be necessary. An Englishpatients, getting better doctors aaround $295 milspeaking medical liason, usually a Canadian and our pricing gets better.” llion for their treator U.S. expat, meets the patient at the airport ments there. The group, which offers in Mexico or Costa Rica and helps them get Page said MedToGo International has special “Mommy Makeover” plastic surgery around during their stay. packages ($4,300 for a tummy tuck, three ar- been working in Costa Rica for about four Page said he’d prefer not to have to go to eas of liposuction and breast augmentation) months. He plans to move to the capital, San another country to get medical treatment, but as well as orthopedic, dental, cardiovascu- José, next year. with the state of U.S. health care and health MedToGo patients, Page says there’s lar and gynecological surgeries and several care policies right now, a service like Medobesity-related surgeries, decided to broaden been about 400 so far and counting, start out ToGo International makes sense. their horizons when business took a hit after by coming to the company with a diagnosis “We felt like we had the perfect team to put they’ve already received from a doctor in Mexico’s 2009 Swine Flu epidemic. a business like this together,” Page said. “And Costa Rica was an obvious choice with an the U.S. or Canada to discuss their options. with the mess that health care has made of already established tradition of medical tour- Through a series of consultations with the itself with Republicans and Democrats batism. In 2010, some 36,000 tourists visited Cos- company, the patient receives information tling it out, and it feels like they have no desire ta Rica to receive medical treatments, accord- about different doctors, treatments and to really help Americans now, it just makes ing to data from the Council for International pricing. MedToGo helps book flights, hotels, sense.” Promotion of Costa Rican Medicine. Those whatever medical treatments are needed

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11

NEXT GENERATION

Robots increasingly used in operating rooms at UA As new technologies emerge, doctors have increasingly begun to turn to robots in the operating room for their precision and minimal invasiveness. Doctors at the University of Arizona College of Medicine are among a handful of surgeons exploring new frontiers in the operating room. “This has only been around for a few years,� said Thomas Gernon, a UA Department of Surgery surgeon who specializes in head and neck cancers. “It will transform how we treat things at the back of the tongue and skull base.� Gernon and colleagues use the da Vinci Surgical System, an operating room robot developed by the Sunnyvale, Calif., company Intuitive Surgical, to perform cancer surgeries on patients’ necks, throats and tongues. The 35-year old native of Tacoma, Wash., came to UA in September. He attended medical school at the University of Washington and later completed residency at the University of Michigan, then returned to Washington to complete a fellowship under the direction of Neal Futran, a leading surgeon in head and neck oncology and reconstruction field. Gernon and colleagues will be only the second surgical team in the state to use the da Vinci robot for head and neck cancer surgeries, the other being the Mayo Clinic in Phoenix. The da Vinci system, with its four robotic arms, instruments with full range of motion and three-dimensional camera, allows doctors to perform delicate surgeries that using conventional surgical methods would leave patients with considerable scarring. “In the 1980s and 90s, cancers in the back of the throat or tongues required pretty disfiguring surgeries,� Gernon said. With the da Vinci system, doctors don’t need to make incisions in patients’ necks and faces to access troubled areas in the

throat. Instead, instruments are inserted through a patient’s mouth while a surgeon peers into a viewing console and operates the robotic arms. “It’s almost like you have your hands in the back of the patient’s throat,� Gernon said. He described operating the robot as similar to a virtual-reality video game. Surgeons operate the da Vinci instruments by hand at a console. The tiny cutting, grasping and suturing arms have a range of motion even greater than a human wrist. The robotic arms also eliminate all the normal tremors and shaking of human hands. The three-dimensional camera provides doctors a depth of field that even advanced endoscopic surgical procedures lack. “You actually feel like you have depth perception,� Gernon said. Demonstration videos online show surgeons performing dexterous procedures like peeling the skin from a grape and folding an origami bird small enough to rest on the face of a dime. The advent of these procedures in Tucson means not only will patients receive cutting edge care, but they no longer need to go out of town for treatment. Gernon said patients in Southern Arizona routinely go to surgery centers as far afield as Texas and Los Angeles to receive treatment. The da Vinci robots have been in use for several years to treat cancers of the prostate and bladder and for gynecologic cancers. More recently, doctors have begun to use it to perform surgeries to alleviate sleep apnea. Gernon and colleagues plan to conduct the University of Arizona Medical Center’s first head and neck surgeries with the robot beginning next week.

Next Generation is a monthly feature of Inside Tucson Business profiling Southern Arizonans on the cutting edge of developing their ideas. If you’ve got an idea or someone you think should be profiled, contact reporter Patrick McNamara at pmcnamara@azbiz.com or (520) 295-4259.

J.D. Fitzgerald photo

By Patrick McNamara Inside Tucson Business

Dr. Thomas Gernon and the da Vinci surgical robot at the University of Arizona Medical Center.

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Three truths about ‘experts’ in the field of Internet marketing tening and measurement tools; SMS (short Back in October, I attended a national, three-day conference on up-to-the-nanosec- message service) texting services; and online gaming packages, contests, surveys, and meond trends in Internet marketing. Experts dia bidding and buying services – are often from North America presented technologies terrible at explaining the services offered. and best practices to advertising agency exAt a sponsored lunch that was the marecutives from throughout the United States. keting version of speed dating, It’s already too late, in Internet we marketing professionals sat at time, to use the conference tables of eight and, while dining, to predict key developments each of the sponsors appeared at for 2012, but in the undercurour table to give us a three-minute rents of the conference I found sales pitch. That’s more time than some important truths that an elevator speech. Handouts can helpful going forward. and laptops were permitted, so First, even at a national three minutes should have been conference, the truth is that enough time to explain in simple not all speakers know what terms the services offered. All but they’re talking about. BeDAVE TEDLOCK one vendor failed miserably. cause of a scheduling quirk, The ad agency execs at my table were I attended a talk with this title (and their uncomfortable. After the second speaker punctuation): “Usability – Building a had come and gone, as an experiment I User Experience Model Using Current offered the comment, “I didn’t understand Technologies: Your Client’s Online Busiat all what that guy’s company does.” ness Experience Is Broken; Let’s Fix It!” The young women next to me The speaker’s credentials were impressive, but I’ve noticed people who don’t know looked relieved and said, “I didn’t understand what he was talking about.” what to say often ask questions instead The rest of the people at the table nodof providing answers. This talk’s descripded in agreement. And so it went. tion began with three questions and went Finally, I could comment about one downhill from there. Five minutes in, I speaker, “I actually understood what realized the speaker had no answers. Ten that guy was talking about.” Half of the minutes in, I realized the speaker would those at my table nodded in agreeremain incoherent for the entire hour. I ment, but two young ad agency people looked around at the other attendees and looked even more miserable — they saw boredom, great acting, a proliferation of hadn’t even understood that one talk. smartphones being used and some lookIf you want your organization to take ading for an exit. When the speaker actually vantage of the best practices in Internet marconcluded her talk, attendees were frozen keting, my report is unsettling. The truths: in place. Even though she now stood silent 1. Some so-called experts are incoherent. in front of us, we could hardly believe 2. Even the best experts must engage in the experience might actually be over. a rigorous, daily battle to stay at the top of The second Internet marketing truth their game. is that the best speakers were investing 3. People may be terrible at explaining enormous effort at making sense while how a service or product could help you. having to cope with a side-serving of fear. It’s tempting to think a reasonable These speakers shared an intense, workaalternative to coping with this massive flood holic lifestyle, some working so hard they of information and confusion is just to wait looked like stereotypical college students until it — the Internet — sorts itself out. who had just pulled an all-nighter, aced The truth is, of course, the Internet will the test, then pulled another all-nighter to never sort itself, technology will never get ace the next test, and so on, for months. less complex, Internet marketing will never The insights they offered were great but get easier and instead will only grow more they were asking themselves, “Do I have challenging. that right as of today?” “Am I going to Therefore, you may as well just plunge be able to keep up with the pace of this right in and do your best to get it right, change?” “What have I overlooked?” even if you do have to pull an all-nighter. That’s the essence of Internet marketing. We work like crazy at it, think we’ve Contact Dave Tedlock, president of the got a handle on, for example, Facebook website development and marketing company friending or Google Local and then, bing, NetOutcomes, at dave.tedlock@netoutcomes. bam, boom, some big change takes place. com or (520) 325-6900, ext. 157. His Technically A third truth: Most of the people developSpeaking column appears the third week of ing and selling new Internet marketing services — mobile phone apps; social media lis- each month in Inside Tucson Business.

InsideTucsonBusiness.com

JANUARY 20, 2012

BRIEFS GET ON THE LIST

Next up: Newspapers, magazines With 2012 now underway, we’re collecting data for the 2013 edition of The Book of Lists. Upcoming categories that will be published in Inside Tucson Business are: • Feb. 3: Paid subscription newspapers, Free newspapers, Magazines • Feb. 10: Commercial real estate brokers, Commercial building contractors, Commercial real estate managers • Feb. 17: Manufacturing firms • Feb. 24: Commercial photographers, Video and film production companies If your company fits one of these categories, now is the time to update your profile. Go to www.InsideTucsonBusiness. com and click the Book of Lists tab. New and unlisted businesses can create a profile by following the directions. The Book of Lists is a year-round reference for thousands of businesses and individuals. To advertise your business, call (520) 2941200.

SMALL BUSINESS

Grijalva seeks business advisory council members U.S. Rep. Raúl M. Grijalva, D-Ariz., is creating six Small Business Advisory Councils to help advise him on small business and economic issues in Southern Arizona. Each of the councils will be made up of 10 members from the counties in his congressional district; Pima, Pinal, Santa Cruz, Maricopa, Yuma and La Paz. Each council will focus on increasing regional economic competitiveness and charged with keeping Grijalva informed on local business needs. Each council will also host at least one public event each year to promote small business in the community, meet with Grijalva at least twice a year and with his district director Ruben Reyes at least four times a year. Applications and an introductory letter are available online at http://1.usa.gov/ z6kYF3. Small business owners, professors of economics and related fields, and others with economic expertise are encouraged to apply by Feb. 6. Each council will include at least one member representing a veteranowned small business, a woman-owned small business and a minority-owned small business.

Pima College to offer entrepreneur workshops Pima Community College is launching an Entrepreneurship Boot Camp beginning Saturday (Jan. 21). The workshops, supported by a grant from the U.S. Small Business Administration, provide comprehensive insight into all aspects faced by new and developing business owners.

“The workshops are designed to give the participants the tools necessary to start and grow a successful company,” said Stan Steinman, academic dean of Workforce & Business Development at PCC. The workshops run through June. To register, call (520) 206-6468 to register. More information is online at pima.edu/business/customtraining, click on Entrepreneurship Boot Camp. PCC offers and Entrepreneurship Academy, free of charge, and a fee-based Entrepreneurship Boot Camp. All courses are taught by instructors who have experience in starting and/ or managing their own business.

POLITICS

What you need to know to be a candidate Have you ever thought of running for public office? If so, the Tucson Hispanic Chamber of Commerce is holding a four-session Candidate Academy, starting Jan. 25. The purpose of the academy is to educate potential candidates and campaign workers on the business perspective and nuts and bolts of running a successful campaign. All candidates, regardless of political party are invited. The academy consists of four meetings, held from 6-9 p.m. on consecutive Wednesdays in the Cox Corporate Office, 1440 E. 15th St. The cost for the academy is $100, or $75 for members of the Tucson Hispanic Chamber and covers all four meetings as well materials. Register online at www.tucsonhispanicchamber.org.

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ENVIRONMENT

Az Tech Council sponsors electronics recycling The Arizona Technology Council Foundation will hold a technology recycling event from 8 a.m. to 3 p.m. Saturday (Jan. 21) at three locations in Tucson. People will be able to drop off old or defective personal computers, computer peripherals, networking equipment, mainframes, servers, point-of-sale equipment, printers, audio/visual and telecom devices, surplus metals, wire, cable and power strips. Miscellaneous electronic items such as test and lab equipment also will be accepted. A portion of the equipment will be donated statewide to support Arizona educational programs. The drop-off locations are: • Gangplank, 5120 S. Julian Drive • ITT Technical Institute, 1455 W. River Road • Texas Instruments, 5411 E. Williams Blvd. The recycling is also supported by Data Doctors and Westech Recyclers. Information is online at www.datadoctors.com/mkt/AZ.

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13

14 JANUARY 20, 2012

INSIDE TUCSON BUSINESS

OUT OF THE OFFICE ARTS & CULTURE

MEALS & ENTERTAINMENT

Family bonds put Jax and Elyse Fresh from New York, TSO together for wine dinner presents two ‘Wicked Divas’ ing with Slow Food Tucson on a farmer’s Jax Kitchen is hosting a winemaker dinner it will offer at 5 p.m. Jan. 29. dinner Monday (Jan. 23) featuring the Chef Addam Buzzalini has crafted a wines of Napa’s Elyse Winery. Executive multi-course menu that takes advantage of Chef Virginia “Ginnyâ€? Wooters, working in fresh ingredients and products sourced tandem with Elyse’s winemaker and owner from local farms. The dinner will Ray Coursen, has created a be served family-style and paired five-course menu for the dinner. with local wines. Coursen will talk about each of The cost is $60 per person, his wines at the dinner. plus tax and tip. Seating is “We are excited about limited to 30 people and Slow bringing Ray to Jax Kitchen, Food Tucson will receive 10 pairing up the unique culinary percent of the proceeds. creations that Jax is known for • Maynards Market + with some truly outstanding Kitchen, 400 N. Toole Ave. in the wines created by a master Historic Depot — www.maywinemaker,â€? said Brian Metzger, MICHAEL LURIA nardsmarket.com — (520) owner of Jax Kitchen. “We’re 545-0577 equally thrilled about a nifty little tie-in here: Jax Kitchen is named after my son, Jackson, while our sister restaurant, The Abbey, is named after my daughter. Ray V Fine Thai Dining revamped its lunch named his winery after his daughter, Elyse, menu this month focusing on variations of but he also has another label – Jacob pho, the Asian noodle soup dish made Franklin – named after his son, Jake. Our famous in this country by the Vietnamese heritages continue through our children.â€? but can also be found in other southeast The wine dinner begins at 6:30 pm, Asian countries, including Thailand where seating is limited to 60 and the cost per it is served with Thai basil. In addition to person is $125, including tax and tip. pho, V continues to offer its popular lunch Monday’s dinner will give you the chance combinations meals. to see some recent updates to the restau• V Fine Thai Dining, 9 E. Congress St. rant’s dining room dĂŠcor. — www.modernthaicuisine.com — (520) • Jax Kitchen, 7286 N. Oracle Road — 882-8143 www.jaxkitchen.com — (520) 219-1235

V’s new lunch menu

Slow Food at Maynards Maynards Market + Kitchen is partner-

Contact Michael Luria at mjluria@ gmail.com. Meals & Entertainment appears weekly in Inside Tucson Business.

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Museum fundraiser

Tucson Symphony Orchestra presents “Wicked Divas� Jan. 28 and 29 as part of its Mini-Time Machine Museum, 4455 E. TSO Pops series. The show features two Camp Lowell Drive, hosts its first fundraisgenuine Broadway divas, Alli Mauzey and ing event Jan. 27 with “Vegrandis,� looking Julia Murney, fresh from their duties in the back 100 years to the eve of New York production of Arizona statehood. In addition “Wicked.� Another special treat to food and entertainment, the for Tucson audiences is the guest event will showcase a new conductor for these concerts, exhibit “Shaping Arizona former TSO musical director and Statehood: The George Stuart conductor Bob Bernhardt. Historical Figures of the The concert will feature Movement West.� The gala event selections from Broadway begins at 6:30 p.m. with a grand classics including “Wicked,� overture limited to 50 guests at 5 “Gypsy,� “Ragtime,� “Chicago� p.m. Tickets are $100 for the and “Phantom of the Opera.� HERB STRATFORD gala and $150 including the The concerts will be at 7:30 p.m. grand overture and can purchased online Jan. 28 and 2 p.m. Jan. 29 at the Tucson at www.TheMiniTimeMachine.org. Music Hall in the Tucson Convention Center complex, 260 South Church Ave.

More music

Dance UApresents brings the Tony-nominated dance extravaganza “Forever Tango� to the stage at 8 p.m. Monday (Jan. 23) at Centennial Hall, 1020 E. University Blvd. on the University of Arizona campus. The tour-deforce South American export features an all-Argentinean cast of dancers, as well as an on-stage Argentinean orchestra composed of members from the country’s National Symphony orchestra. “Forever Tango� has broken attendance records on New York stages and promises to turn up the heat when it debuts here in Tucson.

Arizona Friends of Chamber Music host the Jupiter String Quartet for a performance with guest artist Denise Djokic at 7:30 p.m. Wednesday (Jan. 25) in the Leo Rich Theater, 260 S. Church Ave. The concert is a family affair with several musicians hailing from the same family, either by blood or by marriage. Tickets are $25 for adults, $10 students. Buy them online at www.arizonachambermusic.org or call (520) 577-3769.

Contact Herb Stratford at herb@ ArtsandCultureGuy.com. Stratford teaches Arts Management at the University of Arizona. He appears weekly in Inside Tucson Business.

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InsideTucsonBusiness.com

SALES JUDO

JANUARY 20, 2012

15

SALES

Tagging along on a good solid technical sales call period? How much do the LEDs cost? then Sharmak, the god of all things that eliminate the mercury going into landAfter three columns on how techniKennen settled and proceeded to conbedevil sales, intervened. Kennen and fills from the company’s fluorescents. cal professionals — sales engineers and nect solidly with each question, racking the vice president of operations got lost We held a sales planning meeting technical sales representatives — can up singles, doubles and a homerun with and arrived at 2:05 p.m. By the time we five days before the sales call where we become more effective, I’d like to share no outs. It was a long, long inning durwere all seated in the meeting room it reviewed the big picture objectives. We a real-life example of a technical sales ing which she scored above the level was 2:10 p.m., leaving us with 40 minwere to start at 2 p.m. and opportunity that had its morequired to satisfy their skepticism. At utes, not the 50 we had planned for. end at 2:50 p.m., leaving us ments but ended well. 2:45 p.m., we agreed upon next steps: Kennen had her PowerPoint presenta50 minutes to make a brief Kennen, the nom de guerre retrofitting two offices with LEDs of two tion at the ready but Thor began by saying presentation, to uncover and I assigned to the technical sales different temperatures in early February. deal with any concerns, and to there wasn’t time. This upset Kennen. Her representative, really knows We all stood up and moved off to our next presentation was something of a psychoplan for the small scale demo. her stuff. She may be one of just appointments at 2:50 p.m. on the dot. logical crutch, as it often is for non-selling We agreed to follow the five or 10 experts in the evolvThis sale will require three or four professionals. It provides them with TAPS model. We would start ing field of providing energy needed predictability and structure. more stages. The total sales cycle times with the “timeâ€? allocated conservation systems to large She couldn’t begin with TAPS because could range from six to 14 months, if the for the meeting; move on to organizations. The energy savings SAM WILLIAMS Thor took control by introducing Watt project can’t be wedged into this year’s “agendaâ€? topics; to the meet(about 60 percent) and payback budget cycle. Protracted sales cycles like ing’s specific “purposesâ€? and conclude with and Volt, then immediately turned the time (18 months or less) make selling meeting over to them to ask questions. this will require Kennen to prospect for next “steps.â€? Following introductions, Kenthese systems almost a “slam dunk.â€? Watt, saying he was paid to be skeptimany new deals in the hopes of closing nen was to briefly review how the product The basic system involves replaccal, started pitching hardball questions. 25 percent of them within six months. She operated and its cost savings. She was then ing fluorescent and high-pressure soWhat was the cost per kilowatt hour we also has multiple late-stage sales deals to ask Watt and Volt if they had any quesdium light bulbs with “bulbsâ€? made of used in our cost savings models? Their from 2011 that should close soon, providtions and to answer to their satisfaction. light emitting diodes (LEDs). The best costs were only 65 percent of the rate we ing much-needed revenue and cash flow. We agreed to dress informally, prospects are those who have their typically used, so how could we possiSo far, she’s doing a “picture persince Mr. Thor would be wearing busilights ablaze 24/7, like hospitals. bly produce sufficient savings? What are fectâ€? job of technical sales. ness casual attire with Watt and Volt Kennen is a non-selling profesthe color and temperatures of our LEDs? Contact Sam Williams, president in polo shirts and jeans. Directions sional. She loves planning and detail How many hours do they last? How much to the facility were reviewed, and we work and would prefer to be in charge of New View Group, at swilliams@ do they degrade before failure? What’s agreed to meet there at 1:45 p.m. of research and development. Not surnewviewgroup.net or (520) 390-0568. Sales the warranty? How difficult is the instalI arrived at the appointed time and prisingly, she has a perfectionist streak Judo appears the first and third weeks of each lation? What is the estimated payback found Thor waiting in the lobby. And and is creative. Unlike many techies, month in Inside Tucson Business. she prefers to dress professionally and usually wears suits to meetings. She openly admits she hates selling. But she is the company’s CEO and is absolutely passionate about her product suite. Her sales presentations are detailed and are designed more to deliver information than to uncover needs. She prefers to do 70 percent of the talking. She created a 40-minute PowerPoint that addresses just about every question ever raised about the systems her firm sells. Prior to each sales call, she selects only those slides that are best suited to the industry, which allows her to cut the delivery time to as little as five minutes. So far she has made more than 30 presentations. Kennen, her vice president for op7XFVRQ 3KRHQL[ 6DPH 'D\ 'HOLYHU\ erations and I met several days before we 2Q 'HPDQG &RXULHU 6HUYLFH ‡ /LYH 'LVSDWFKHU were to meet with Mr. Thor, the Decision 2QOLQH 2UGHULQJ 7UDFNLQJ ‡ :DUHKRXVLQJ 'LVWULEXWLRQ Maker of a division of a major corporation, and two of his technical experts, Mr. /RFDOO\ 2ZQHG 2SHUDWHG Watt and Mr. Volt, both of whom have authority to veto the sale. The objective was to arrange a small-scale trial of the system, followed by an energy audit and the retrofitting of all of the company’s fluorescent lights. After a successful installation, the larger objective was to penetrate the remaining divisions of Thor’s multi-billion dollar parent corporation. He already knew about the energy savings potential and payback period for this particular product from a first sales call and had expressed a solid interest in it. While we couldn’t impact revenues, we could “nailâ€? cost reduction, increase profits, 6 %URDGPRQW DW $MR :D\ ² 7XFVRQ $UL]RQD improve the company’s Green image by decreasing the carbon emission loads, and

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16 JANUARY 20, 2012

INSIDE TUCSON BUSINESS

PEOPLE IN ACTION

CALVIN BAKER

FERNANDA ECHAVARRI MARTI JAGER

AWARDS

NEW HIRES

The Dusk & Dawn Toastmasters Club has announced that Tim Foran has qualified for the Competent Communicator award. To qualify for the award, Foran performed 10 communication projects outlined in the Competent Leader manual. Foran has worked for 30 years in the aerospace and commercial manufacturing industries. Vail Unified School District Superintendent Calvin Baker was named superintendent of the year at the annual Arizona School Board Association (ASBA) conference. ASBA recognizes outstanding achievement across Arizona.

Long Realty has hired Jon Quist as a real estate buying agent for its Tanque Verde Office. Quist earned a real estate license in 1996. He also holds ABR, CRS, e-PRO and GRI designations. Before working in real estate, Quist had an extensive business career, including manufacturing, wholesale and retail. Fernanda Echavarri has joined Arizona Public Media as a producer and reporter. Echavarri will cover current events and education. She graduated from the University of Arizona School of Journalism. Echavarri began her career in journalism as a

HANK PECK

reporter for the Tucson Citizen and later worked for the Arizona Daily Star. Echavarri received a Freedom of Information Award from the Arizona Newspaper Association in 2011 for her work in a series published in the Arizona Daily Star. Marti Jager has joined Arizona Public Media as an underwriting consultant. Jager was an account executive for a local radio group in Bend, Ore. for more than a decade. She attained the designation of Certified Radio Marketing Consultant during that period. Her duties for AZPM will include servicing and maintaining existing accounts as well as developing new business.

SAM SWIFT

{TELL US ONLINE} Now your business can tell Inside Tucson Business about new hires, promotions and special awards online. Go to www.insidetucsonbusiness.com and click the “People in Action” button. From there you can submit your announcement and we’ll publish it online and in print. TCI Wealth Advisors, Inc. has named two new partners in Tucson: Hank Peck and Sam Swift. Peck is a Certified Financial Planner with an extensive background in employee benefits and insurance. Peck joined TCI in 2008. Swift is a Certified Financial Analyst and joined TCI in 2006. Swift manages the implementation of client portfolios and continual analysis of

investment solutions. Anchor Wave Internet Solutions has hired Agustin “Agie” Olmedo as a search engine optimization representative. Olmedo will work in new business development and maintaining client relationships. PROMOTIONS Ellen Kirton has been appointed as the

AGUSTIN OLMEDO

new director for the Small Business Development Center (SBDC), a counseling, training and education service hosted by the Microbusiness Advancement Center (MAC) in Pima County. Kirton will supervise SBDC counselors and is responsible for promoting self-employment and entrepreneurship throughout Pima and Santa Cruz counties. With 35 years of banking experience, Kirton most recently worked as an independent business consultant and is concurrently a Partner in EffortlessHR, an internetbased human resource company providing small businesses an easy-to use employee management

ELLEN KIRTON

MICHAEL TULINO

system. Before joining EffortlessHR, she was the senior vice president of Chase Bank and managed the bank’s loan center in Tucson. Michael Tulino has been named vice president for student development at Pima Community College’s Northwest Campus. Tulino has worked for Pima since 2003. Since 2007, Tulino has served as director of admissions and registrar. APPOINTMENTS Tucson Originals is has announced the appointment of officers for the 2012 year. Anthony Rocco DiGrazia, Rocco’s Little Chicago, has been named president; Frank

Santos, Frankie’s South Philly Cheesesteaks, was named vice president; Suzanne Kaiser, Vero Amore and Noble Hops, as treasurer; Julie Connors, Pastiche Modern Eatery, as acting secretary. Other board members: Mindi Bernstein, Café 54; Pat Connors, Pastiche; Susie Elefante, Mama Louisa’s; Jonathan Landeen, Jonathan’s Cork; Doug Levy, Feast; Todd Martin, Tucson Tamale; Jim Murphy, Kingfisher/Bluefin; Coralie Satta, Ghini’s French Café; and member at large, Executive Director, Colette Landeen, Jonathan’s Cork.

CALENDAR SPECIAL EVENTS

AZ Wellness Coalition 4th Tuesday Networking Breakfast Dr. Rubin Naiman presents: “Mindful Sleep: Turn on, Tune In, Nod Out.”

www.AzIntegrative.org

Tuesday (Jan. 24) 7:45 to 10 a.m. Manning House 450 Paseo Redondo Info: robin@robinpeel. com of (5200 322-0832 Cost: $20/members, $25/non-members

An Evening with Noam Chomsky: “Education for Whom and For What?” Wednesday (Feb. 8) 7 p.m. to 8:30 p.m. Centennial Hall

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State of the City Luncheon and Address Mayor Jonathan Rothschild to give Tucson’s annual address Tuesday (Feb 14) 11:30 a.m. Tucson Convention Center 260 S. Church Avenue Cost: $50 for Tucson

Metro Chamber members; $70 general public http://TucsonChamber.org Info: Gina Babunovic gbabunovic@tucsonchamber. org (520) 792-2250 ext. 133

InsideTucsonBusiness.com

17

JANUARY 20, 2012

MEDIA

Radio ratings: Some reshuffling at the top, questions for other stations By David Hatfield Inside Tucson Business Arbitron has released its latest quarterly radio ratings for the Tucson market but shakeups at four stations during the three-month ratings period makes it difficult to pinpoint any developing trends. Though reshuffled, the usual suspects are once again at the top of the ratings. If you want to reach adults 25-54 years-old with your advertising message, Cumulus Media’s country station KIIM 99.5-FM leads the pack. Do you want to reach women 25-54? Then Journal Broadcast Group’s adult contemporary music station Mix-FM KMXZ 94.9-FM is your top-rated station. How about men 25-54? Lotus Corp.’s rock station KLPX 96.1-FM is No. 1 there. Want a younger audience, say 18-34 year-olds? Clear Channel’s hit music KRQ 93.7-FM is still the dominant station. The real intrigue in these latest ratings is over the four stations that ended the ratings period on Dec. 7 with different identities than they had when it started on Sept. 15. The stations accounted for more than 10 percent of the total audience, or, an average, 241,400 unique listeners a week who at least sampled the stations. Was the average of 105,600 listeners who tuned in to 92.9-FM at least once in a week more heavily weighted to the early part of the ratings period before the end of October when Clear Channel laid off morning hosts Jennie Grabel and Chris Patyk on the Mountain KWMT? Or was it bumped up in the following days by a lot of curiosity sampling of listeners wanting to find out what would happen next? Or, as Clear Channel probably hopes, was there just a massive amount of excitement after Nov. 18 when My 92.9 KMIY debuted? Going with the odds, the first question encompasses 55 percent of the ratings period, the second question involved 22

percent and the third was 23 percent. Similar questions arise over 97.1-FM, which Clear Channel switched from the Spanish hit music of Mia to a simulcast of conservative news-talk for KNST 790-AM effective Nov. 28. Considering the move was completed with just 10 days remaining in the three-month ratings period, it’s difficult to imagine it had much of an impact, especially since the total average shows that 62 percent of the 25-54 year-old audience was composed of women, hardly the prime demographic for a conservative news-talk station. Also not-so-welcome news for Clear Channel, it appears the Mia format, which had been on since August 2009, was finally gaining some traction with an audience share that was up 57 percent from three months earlier and a year ago. The one other Clear Channel change involved 1450-AM, which ended a 10-month experiment with an all-comedy format, switching to Spanish oldies and bringing back the branding of La Preciosa KTZR, which had been used on 97.1-FM before August 2009. In either event, the station garnered less than 1 percent of the audience, although that was down from the 1.1 percent share it had a year ago as an English-language oldies station. The fourth station change was at Journal Broadcast Group, which on Oct. 5, dismissed its on-air staff at Mega KGMG 106.3-FM then vamped until Oct. 17 when it was rebranded as the Groove KTGV. Although the music mix was adjusted, the format for the Groove is still called rhythmic oldies. To date, the station is still foregoing on-air personalities. The overall ratings this time were down 10 percent from three months earlier but up 94 from a year ago.

Contact David Hatfield at dhatfield@azbiz.com or (520) 295-4237. Inside Tucson Media appears weekly.

TUCSON RADIO RATINGS Average percentage of listening audience 12 years old and older, Monday-Sunday 6 a.m. - midnight

Rank

1

Show Max, Shannon and Porkchop

Station KIIM 99.5-FM

Format

Owner

Cumulus Journal

9.6 8.3

8.7 7.3

8.2 9.4

Clear Channel Arizona Public Media Cumulus Lotus

7.7

8.8

9.7

4.6

4.4

5.5

4.5 4.4

3.8 6.0

3.5 5.8

4.2

3.9

3.7

3.9 3.7 3.6

3.4 4.2 3.2

4.1 4.1 3.8

3.3

3.7

1.7

3.2

2.0

2.1

3.1

3.5

3.5

2.8 2.7

2.8 2.9

2.7 2.5

2.6

2.3

2.5

Cumulus Cumulus

2.5 1.6

2.8 1.3

2.6 2.6

Good News Journal

1.4

1.6

1.0

1.3

1.3

0.8

0.9 0.8

0.7 0.8

1.6 0.8

0.7 0.7

< 0.7

< 1.1

1 2

2 3

KIIM 99.5-FM Mix-FM KMXZ 94.9-FM

3

1

KRQ 93.7-FM

Country Adult contemporary Hit music

4

5

KUAZ 89.1-FM/1550-AM

NPR/jazz

5 6

8 4

K-Hit KHYT 107.5-FM La Caliente KCMT 102.1-FM

7

7

Hot 98.3 KOHT 98.3-FM

8 9 10

11 6 12

KFMA 92.1-FM/101.3-FM KLPX 96.1-FM KNST 790-AM

Classic hits Regional Mexican Hits and hip-hop New rock Rock News-talk

11

9

12

17

The Groove KTGV 106.3FM* KNST-FM 97.1-FM*

13

10

My 92.9 KMIY 92.9-FM*

14 15

14T 13

The Truth KQTH 104.1-FM KUAT-FM 90.5-FM/89.7-FM

16

16

La Poderosa KZLZ 105.3-FM

17 18

14T 20T

KTUC 1400-AM Bob KSZR 97.5-FM

19

19

KCEE 690-AM

20

20T

Sports-talk

21 22

23T 22

ESPN Radio KFFN 1490-AM/104.9-FM* The Source KCUB 1290-AM The Voice KVOI 1030-AM

23T 23T

23T

KEVT 1210-AM La Preciosa KTZR 1450-AM*

Spanish variety Spanish oldies

Rhythmic oldies News-talk

Clear Channel Lotus Lotus Clear Channel Journal Clear Channel Clear Channel Journal Arizona Public Media KZLZ LLC

Adult contemporary News-talk Classical music

Regional Mexican Pop standards Adult contemporary Pop standards

Sports-talk News-talk

Cumulus Good News One Mart Clear Channel

15,700

2

Johnjay and Rich

KRQ 93.7-FM

12,800

3

Bobby Rich Morning Mix

Mix-FM KMXZ 94.9-FM

12,700

4

Los Hijos de La Manaña

La Caliente KCMT 102.1-FM

8,600

5

Garret Lewis Morning Ritual

KNST 790-AM

6,900

6

The Frank Show

KLPX 96.1-FM

6,800

7

Jon Justice

The Truth KQTH 104.1-FM

5,900

8

Fook

KFMA 92.1-FM/101.3-FM

5,800

9

Tim Tyler

K-Hit KHYT 107.5-FM

5,500

10

Jennie & Chris *

The Mountain KWMT 92.9-FM

4,900

Source: Arbitron Inc. * Jennie & Chris last airdate was Oct. 27, 2011; station changed format, branding and call letters to KMIY Nov. 18, 2011.

Jun-Sept 2011

Sept-Dec 2010

< - Indicates ratings below minimum caculatable number. * Notes: KFFN began broadcasting on its FM frequency March 14, 2011. KGVY began broadcasting on its FM frequency April 1, 2011. KMIY was formerly modern music format The Mountain KWMT until Nov. 18, 2011. KNST-FM was formerly Spanish hit music format Mia KTZR until Nov. 28, 2011. KTGV was formerly R&B and oldies format Mega KGMG until Oct. 17, 2011. KTZR was formerly all-comedy Funny KWFM from Jan. 26-Nov. 21, 2011, and before that was oldies format Cool KWFM.

TOP STATIONS: 1834

TOP STATIONS: 2554 Average audience 6-10 a.m. weekdays

Sept-Dec 2011

Source: Arbitron Inc. Laterst ratings survey conducted Sept. 15-Dec. 7, 2011. Previous survey was done June 23-Sept. 14, 2011. Year ago survey dates Sept. 16-Dec. 8, 2010.

TOP 10RATED MORNING RADIO SHOWS Rank

Station

Rank

Station

Rank

Avg

Station

Avg

1

KIIM 99.5-FM

5,200

1 KRQ 93.7-FM

4,100

2

Mix-FM KMXZ 94.9-FM

4,300

2 KIIM 99.5-FM

2,900

3

KRQ 93.7-FM

4,200

3 Hot 98.3 KOHT 98.3-FM

2,400

4

La Caliente KCMT 102.1-FM

2,800

4 KFMA 92.1-FM/101.3-FM

2,000

5

KLPX 96.1-FM

2,700

5 Mix-FM KMXZ 94.9-FM

1,800

6

K-Hit KHYT 107.5-FM

2,600

6 La Caliente KCMT 102.1-FM

1,200

7

KFMA 92.1-FM/101.3-FM

2,400

7 tie Mia KTZR 97.1-FM *

8

The Groove KTGV 106.3-FM *

2,200

7 tie The Mountain KWMT 92.9-FM *

1,100

9 tie

Hot 98.3 KOHT 98.3-FM

2,100

7 tie La Poderosa KZLZ 105.3-FM

1,100

9 tie

Mia KTZR 97.1-FM *

2,100

10 The Groove KTGV 106.3-FM *

Source: Arbitron, average audience 25-54 Monday through Sunday, 6 a.m.-midnight. * The Groove was branded as Mega KGMG until Oct. 17, 2011; Mia KTZR became KNST-FM effective Nov. 28, 2011; and The Mountain KWMT became My 92.9 KMIY effective Nov. 18, 2011.

1,100

900

Source: Arbitron Inc.,average audience 18-34 Monday through Sunday, 6 a.m. to midnight. * Mia KTZR became KNST-FM effective Nov. 28, 2011; The Mountain KWMT became My 92.9 KMIY effective Nov. 18, 2011; and The Groove was branded Mega KGMG until Oct. 17, 2011.

`

18 JANUARY 20, 2012

INSIDE TUCSON BUSINESS

FINANCE YOUR MONEY

Part of the sandwich generation? 7 tips to help you balance life Raising a family while pursuing a demanding career is a tough enough challenge. When you add in tending to aging parents, you’ve officially joined the “sandwich generation.” This is a mushrooming group of people who are being squeezed by simultaneous responsibilities for elder and younger generations. If you aren’t there yet, you may be soon. How you handle it may depend on how you prepare for it. As many as 13 percent of U.S. households with two or more people aged 30 to 60 have two earners juggling the responsibilities for children, an aging parent, and a career. With life expectancies rising, that percentage is likely to swell as well. It’s a balancing act, but you can take steps to ease the strain on your time, money and other resources:

Communicate The best time to talk with aging parents about long-term care insurance, money issues and medical care decisions is before, not during, a crisis. Understanding their needs, wishes and financial situation can help the family work together toward a desirable future. And take notes that can be used to help develop a checklist.

Share the load Holding a family meeting can help you assign responsibilities. Make sure to consider everything from shuttling kids to after-school activities and the grandparents to cardiologist appointments, to ponying up for eldercare, so no one person has to shoulder the entire burden.

Be fiscally conscientious Funding college savings plans and paying for nursing home care while still saving for your own retirement is a formidable challenge. Getting an early start on saving and investing helps, of course, and considering different ways to protect your parents’ assets is crucial. A comprehensive financial and estate plan can keep your retirement, your kids’ college savings and your aging parents on track.

Tap outside resources Local, state, and federal governments all offer eldercare and childcare services and information. Some religious and civic organizations do as well. Many employers provide assistance through such things as flextime and family care programs that pay for in-home help. Seek out these resources and take advantage of them.

Gather essential information Work with your parents to prepare a comprehensive personal data record that lists their essential DREW BLEASE financial, legal, and medical information. Having a health-care directive, for example, is of little use if no one knows where it is and what it says. A personal data record should include information about bank accounts, investment holdings, insurance policy numbers and company names, wills, durable powers of attorney, medical care documents, and professional financial advisers. Ensure that the family decision-makers and your advisers know where to find the documents.

Share your expectations Remember your parents can and probably want to have responsibilities in your household. Let them be involved, productive members of the family.

Take care of yourself Finally, you’ll be in no shape to care for children and elderly parents if you don’t make your own health and financial well-being a priority, too. With so much to be done, caregivers often hesitate to take time for themselves. Relentlessly pushing yourself out of a sense of obligation to others will inevitably sap your energy and your ability to do what needs to be done. So nurture yourself as well as your family members. And maybe most importantly, don’t neglect your marriage. Make time for one another, and have fun. Live your life. You’ll be better equipped to meet all those other emotional, financial, and logistical challenges.

Contact Drew Blease, president and founder of Blease Financial Services, 7358 N. La Cholla Blvd., Suite 100, at drewblease@ bleasefinancial.com or (520) 299-7172.

TUCSON STOCK EXCHANGE Stock market quotations of some publicly traded companies doing business in Southern Arizona

Company Name

Symbol

Jan. 18

Jan. 12 Change

52-Week 52-Week Low High

Tucson companies Applied Energetics Inc CDEX Inc Providence Service Corp UniSource Energy Corp (Tucson Electric Power)

AERG CEXI.OB PRSC UNS

0.08 0.08 14.80 37.23

0.07 0.05 14.80 36.34

0.01 0.03 0.00 0.89

0.12 0.02 8.35 32.96

0.97 0.10 17.48 39.25

10.02 0.42 3.50 6.80 58.08 8.33 7.37 78.92 25.17 58.19 4.50 17.05 29.03 25.72 17.03 25.52 13.00 81.76 37.46 43.10 8.92 46.29 60.60 14.12 44.47 27.27 44.88 58.19 181.07 31.92 56.45 4.90 36.54 31.00 9.69 48.09 24.12 0.76 23.00 27.46 38.38 52.65 35.37 33.94 26.64 41.22 60.17 33.92 7.94 49.62 44.11 21.55 36.35 39.49 13.59 9.02 41.67 26.50 49.87 15.60 33.72 37.39 18.25 109.82 54.03 6.04 29.08 60.01 33.75 30.24 7.56 18.79

9.63 0.36 3.41 6.87 57.11 8.02 7.17 78.00 24.81 58.59 4.23 17.55 31.27 25.42 17.90 24.58 12.78 79.99 36.61 42.04 8.61 45.53 59.05 14.13 41.65 25.98 43.46 56.46 182.32 31.58 55.18 4.64 36.66 29.72 8.62 46.01 24.09 0.72 22.25 26.53 38.34 52.95 34.84 33.02 26.76 42.26 58.51 34.56 7.70 48.80 42.50 20.79 35.84 32.90 13.34 8.88 41.06 26.50 49.03 15.97 30.73 37.36 18.01 111.98 57.23 5.91 28.41 59.40 34.01 29.62 7.35 18.50

0.39 0.06 0.09 -0.07 0.97 0.31 0.20 0.92 0.36 -0.40 0.27 -0.50 -2.24 0.30 -0.87 0.94 0.22 1.77 0.85 1.06 0.31 0.76 1.55 -0.01 2.82 1.29 1.42 1.73 -1.25 0.34 1.27 0.26 -0.12 1.28 1.07 2.08 0.03 0.04 0.75 0.93 0.04 -0.30 0.53 0.92 -0.12 -1.04 1.66 -0.64 0.24 0.82 1.61 0.76 0.51 6.59 0.25 0.14 0.61 0.00 0.84 -0.37 2.99 0.03 0.24 -2.16 -3.20 0.13 0.67 0.61 -0.26 0.62 0.21 0.29

8.45 0.20 2.65 4.92 51.83 7.02 4.36 65.35 21.79 43.77 3.30 12.30 21.40 19.19 14.61 22.80 8.49 69.54 31.16 31.30 6.41 37.49 43.64 8.03 28.85 16.92 28.13 41.22 151.71 24.28 39.87 2.69 27.85 25.73 5.02 42.14 21.14 0.58 12.14 18.07 32.90 38.64 21.69 25.49 13.68 33.20 49.20 23.44 3.29 38.35 34.02 15.93 30.98 51.14 10.47 7.15 32.12 20.96 45.28 14.10 24.34 27.62 15.92 77.73 37.08 4.53 20.10 48.31 30.34 22.58 4.44 13.18

18.47 8.51 6.29 14.95 66.64 13.01 9.27 87.65 35.79 59.59 7.29 29.88 49.60 27.16 42.50 56.61 15.00 88.68 45.34 42.69 12.34 61.08 70.15 14.26 59.84 29.68 43.96 62.28 194.90 35.79 56.46 6.18 48.36 38.40 16.11 57.39 25.85 3.47 22.53 27.45 45.31 56.50 35.21 42.78 27.42 56.14 72.50 41.00 8.58 53.12 45.65 25.43 40.75 94.79 17.28 13.18 43.22 31.89 56.44 23.46 36.71 38.62 27.72 112.52 58.29 11.28 29.42 61.06 47.11 34.25 8.45 25.60

Southern Arizona presence Alcoa Inc (Huck Fasteners) AA AMR Corp (American Airlines) AMR Augusta Resource Corp (Rosemont Mine) AZC Bank Of America Corp BAC Bank of Montreal (M&I Bank) BMO BBVA Compass BBV Belo Corp (KMSB 11, KTTU 18) BLC Berkshire Hathaway (Geico, Long Cos) BRK-B* Best Buy Co Inc BBY BOK Financial Corp (Bank of Arizona) BOKF Bombardier Inc* (Bombardier Aerospace) BBDB CB Richard Ellis Group CBG Citigroup Inc C Comcast Corp CMCSA Community Health Sys (Northwest Med Cntrs) CYH Computer Sciences Corp CSC Convergys Corp CVG Costco Wholesale Corp COST CenturyLink (Qwest Communications) CTL Cvs/Caremark (CVS pharmacy) CVS Delta Air Lines DAL Dillard Department Stores DDS Dover Corp (Sargent Controls & Aerospace) DOV DR Horton Inc DHI Freeport-McMoRan (Phelps Dodge) FCX Granite Construction Inc GVA Home Depot Inc HD Honeywell Intl Inc HON IBM IBM Iron Mountain IRM Intuit Inc INTU Journal Communications (KGUN 9, KMXZ) JRN JP Morgan Chase & Co JPM Kaman Corp (Electro-Optics Develpmnt Cntr) KAMN KB Home KBH Kohls Corp KSS Kroger Co (Fry's Food Stores) KR Lee Enterprises (Arizona Daily Star) LEE Lennar Corporation LEN Lowe's Cos (Lowe's Home Improvement) LOW Loews Corp (Ventana Canyon Resort) L Macerich Co (Westcor, La Encantada) MAC Macy's Inc M Marriott Intl Inc MAR Meritage Homes Corp MTH Northern Trust Corp NTRS Northrop Grumman Corp NOC Penney, J.C. JCP Pulte Homes Inc (Pulte, Del Webb) PHM Raytheon Co (Raytheon Missile Systems) RTN Roche Holdings AG (Ventana Medical Systems) RHHBY Safeway Inc SWY Sanofi-Aventis SA SNY Sears Holdings (Sears, Kmart, Customer Care) SHLD SkyWest Inc SKYW Southwest Airlines Co LUV Southwest Gas Corp SWX Stantec Inc STN Target Corp TGT TeleTech Holdings Inc TTEC Texas Instruments Inc TXN Time Warner Inc (AOL) TWX Ual Corp (United Airlines) UAUA Union Pacific Corp UNP Apollo Group Inc (University of Phoenix) APOL US Airways Group Inc LCC US Bancorp (US Bank) USB Wal-Mart Stores Inc (Wal-Mart, Sam's Club) WMT Walgreen Co WAG Wells Fargo & Co WFC Western Alliance Bancorp (Alliance Bank) WAL Zions Bancorp (National Bank of Arizona) ZION Data Source: Dow Jones Market Watch *Quotes in U.S. dollars, except Bombardier is Canadian dollars.

InsideTucsonBusiness.com

JANUARY 20, 2012

19

INSIDE REAL ESTATE & CONSTRUCTION

2011 new home permits drop below 1,500 to a 44-year low THE PULSE: Median Price Active Listings New Listings Pending Sales Homes Closed

TUCSON REAL ESTATE

1/9/2012

1/2/2012

$123,000 5,619 434 418 165

$136,675 5,523 453 308 96

Source: Long Realty Research Center

Every month, new home building permits data is published from Bright Future Business Consultants, exclusively in Inside Tucson Business.

MONTHLY BUILDING PERMITS: DEC. 2011 2008

2009

2010

2011

35

76

46

26

Marana

4

12

18

46

Tucson

21

32

12

16

Sahuarita

32

24

15

17

Pima County

So. Pinal Oro Valley Total

19

9

10

10

6

5

3

3

117

158

104

118

Source: Bright Future Business Consultants

YEARTODATE BUILDING PERMITS: DEC. 2011 2008

2009

2010

2011

Pima County

938

777

683

499

Marana

228

191

341

328

Tucson

598

368

314

218

Sahuarita

749

516

309

186

So. Pinal

280

168

172

164

Oro Valley

225

57

46

43

3,018

2,077

1,865

1,438

Total Source: Bright Future Business Consultants

WEEKLY MORTGAGE RATES Program 30 YEAR 15 YEAR 3/1 ARM

Current

Last Week

1/17/2012

One 12 Month 12 Month Year Ago High Low

3.88% 4.125%APR 4.00% 4.25%APR 6.18% 3.25% 3.56%APR 3.50% 3.81% APR 5.94% 2.88% 3.25%APR 3.00% 3.38% APR

6.88% 6.75%

The above rates have a 1% origination fee and 0 discount . FNMA/FHLMC maximum conforming loan amount is $417,000 Conventional Jumbo loans are loans above $417,000 Information provided by Randy Hotchkiss, National Certified Mortgage Consultant (CMC) Peoples Mortgage Company, 1610 E. River Road, Suite-118 Tucson, Arizona 85718 • 520-324-000 MB #0115327. Rates are subject to change without notice based upon market conditions.

3.88% 3.25%

By Roger Yohem Inside Tucson Business New home permits for 2011 fell below 1,500 for the first time in 44 years, ending at 1,438. The last year the pace of building activity was slower was in 1967 when 1,307 new home permits were issued in the Tucson region. Since peaking in 2005 at 11,762 permits, new construction activity has dropped every year since, according to new year-end data from Bright Future Business Consultants. From 2010 to 2011, permits dropped 23 percent, falling from 1,865 to 1,438 (see chart). The municipalities with the largest losses were Sahuarita, down 39.8 percent, and Tucson, which was down 30.6 percent. Oro Valley was just three permits short of matching its 2010 total, ending 2011 with 42, said John Strobeck, owner of Bright Future Business Consultants. On a percentage basis, activity dropped the least in Marana at 3.8 percent, only 13 fewer than the town’s 341 total in 2010.

CREW leader McNulty Attorney Linda McNulty of Lewis & Roca has been named 2012 president of Tucson CREW (Commercial Real Estate Women). She is a partner with the firm’s real estate and finance practice groups. During her career, McNulty has helped shape regional water use policies, having served as special assistant at the Arizona Department of Water Resources. In February 2011, she was appointed to the Arizona Independent Redistricting Commission. Joining her as officers are president-elect Barbi Reuter, with Picor Commercial Real Estate; treasurer Loretta Peto, of Peto & Associates; and secretary Sandi Eghtesadi, with Farmers Insurance. Jane McCollum of the Marshall Foundation is the immediate past president. CREW directors for 2012 are: Sally Bach, G2 Consulting; Nannon Roosa, University of Arizona Eller School of Management; Beverly Weissenborn, Burke Weissenborn LLC; Marie Laatsch, Axia Real Estate Appraisers; Rhonda Pina, Wells Fargo Bank; Jeannie Nguyen, National Bank of Arizona; and Susie Ong, Broadstone Commercial Real Estate. Achievement awards for 2011 went to Reuter, who received the President’s Award; Nguyen, who received the Chapter Service Award; Lesli Pintor, of National Bank of Arizona received the Professional Service Award; and Lucinda Smedley, of Trend Report received the Member-to-Member Business Award. Tucson CREW is a professional association dedicated to the advancement of women in the commercial real estate industry.

Airport area sells Homes in neighborhoods south and east of Tucson International Airport were the region’s best sellers in December, according

to the Tucson Association of Realtors Multiple Listing Service. At 55 percent, 48 of 87 homes listed were sold last month in zip code 85706. The second-hottest sales spot was zip code 85741 on the northwest side, where 37 of 83, or 45 percent, of listings closed. Zip code 85714, basically the Midvale Park area along west Drexel Road west of Interstate 19, was the third-best seller where 10 of 26 homes sold, a 38 percent ratio. For December, five areas each had more than 200 listings. The most were in Green Valley with 289 homes. Second highest was zip code 85739, along North Oracle Road north of Catalina State Park, with 279 listings. Zip code 85750, the northeast side near Sabino Canyon, was third with 268 homes in inventory. Overall, the Realtors reported 4,911 listings for December, down 280 units from November. At year-end 2010, there were 6,859 homes on the market in the Tucson region.

Sales and leases • JMDH Real Estate LLC purchased 5.73 acres for $1.4 million at 601 and 625 W. 22nd St. from Sandberg-Willrett Family LLC, represented by Randy and Gary Emerson, GRE Partners, and Geeta Sandberg, Sandberg Realty. The buyer was represented by Peter Douglas, Picor Commercial Real Estate Services, and S. Craig Nardi, Gelcor Realty of NJ LLC. • NSRA Properties LLC purchased a 2,760 square feet building at 7386 N. La Cholla Blvd. for $500,000 from RJG Enterprises, represented by Jordan Simon and Karen Farrell, Venture West. The buyer was represented by Rick Kleiner, of Picor. • AXA Equitable Life Insurance leased 5,075 square feet at 5151 E. Broadway from Scott Seldin–Broadway LLC, represented by David Volk and Bruce Suppes, CBRE. Tom Nieman, Picor, represented the tenant. • Signs Now leased 3,219 square feet at 3955 and 3967 E. Speedway from Central Point Business Plaza LP, represented by Diana Dessy, Anthem Equity Group. • Tackle Giant LLC leased 2,400 square feet at 1097 W. Prince Road from PAC Investments LLC, represented by Pat Welchert of Picor. • Tucson Budget Marketing leased 2,398 square feet at 16256 N. Oracle Road in Catalina Village, Catalina, from Sabre-Catalina LLC, represented by David Hammack, Volk Company Commercial Real Estate. Peter Canacakos, Long Commercial Real Estate, represented the tenant. • Genadyne Biotechnologies leased 1,565 square feet at 3100 N. Stone Ave. from 3100 LLC. Jesse Blum and Ron Zimmerman of Grubb & Ellis handled the transaction.

Email news items for this column to ryohem@azbiz.com. Inside Real Estate & Construction appears weekly.

20 JANUARY 20, 2012

INSIDE TUCSON BUSINESS

EDITORIAL BIZ BUZZ

Presidential candidates: what’s the difference? Try as we might to avoid it, I guess it’s time to start paying attention to the Republican presidential primary on February 28. Same for the Greens. But let’s face it, there’s not a snowball’s chance on a June day in Tucson that a Green candidate has a chance of making it into the White House this year. Democrats are being spared the political harangues. They’ve got their DAVID HATFIELD candidate picked and besides, the state party decided to pass on the primary process. I hear tell the Republican candidates have had 17 debates, including two this week leading up to Saturday’s primary in South Carolina. I’ve managed to miss every one of them. The news about them hasn’t made me feel as if I’ve missed much. That has allowed me to avoid wasting any of my time on this earth learning much about people such as former Minnesota Gov. Tim Pawlenty, U.S. Rep. Michele Bachmann, R-Minn.; former ambassador to China and Utah Gov. Jon Huntsman. Or, for that matter, businessman Herman Cain, who at one point I’m told was the slam-dunk front-runner. And yet, judging from the video clips on Comedy Central’s “The Daily Show,” the people who run their mouths on the 24-hour cable news channels say the Republican nomination should be wrapped up after this weekend’s voting in South Carolina. And if not then, after Florida’s primary on Jan. 31. So all it takes is winning a caucus in Iowa and a primary in New Hampshire, two ethnically homogeneous states, and then a couple of southern states and the pundits are ready to pronounce a nominee. The fact that we’re still a month away from Arizona’s primary, the first primary in a state west of the Mississippi River, is of little political concern. The very notion of that is bothersome. On the other hand, considering the field, what difference does it make? Some have called Mitt Romney the inevitable nominee. All the rest are just pretenders trying to win over the crowd that wants anybody but Romney. About the only thing they seem to say in unison is that they don’t want to see President Obama continue down the same path. There are a good many Democrats who are saying the same thing — though with a different viewpoint — because of how little has changed under his administration. There was a flap when Newt Gingrich equated the money he earned as a consultant for Freddie Mac, a public organization, with the money Romney earned as co-founder and CEO of the private-equity firm Bain Capital. There’s a huge difference between the two but then the Romney defenders claim his story is one of free markets and American capitalism independent of government interference. Yeah right. How many hundreds of billions of dollars of taxpayer dollars were spent to save Wall Street while the rest of America struggles? Wall Street in New York and inside the Beltway in Washington, D.C., are doing just fine. I would just like for someone to explain to me the difference any candidate will make to me and my life in Tucson, Arizona.

Contact David Hatfield at dhatfield@azbiz.com or (520) 295-4237.

EDITORIAL

Back to the priorities for TUSD The ugly confrontation over Tucson Unified School District’s (TUSD) Mexican American Studies program has ended — at least for now — with students no longer taking classes in Chicano history or Chicano literature and instead taking classes with titles of American History and English Literature. The changes took effect Jan. 11, the day after the TUSD school board bowed to U.S. District Court Judge A. Wallace Tashima’s ruling that teachers had no standing in their lawsuit seeking to stop enforcement of a 2010 state law that prohibits classes that promote ethnic solidarity, promote the overthrow of the United States government, are designed primarily for pupils of a particular ethnic group or promote resentment toward a race of class of people. Students who also were plaintiffs in the lawsuit will be allowed to pursue their case under Tashima’s ruling, though he noted that while their arguments for standing in the case were successful, they shouldn’t assume they have a “meritorious claim.” The TUSD school board’s vote to disband Mexican American Studies was 4-1, with Adelita Grijalva the lone vote seeking to pursue a federal appeal. Discussion before the vote centered on the costs of continuing to challenge the law and the reality that the district would probably not prevail. The immediate financial impact is that TUSD will receive more than $14 million of state funding that had been in jeopardy. State Superintendent of Public Instruction John Huppenthal said he was prepared to withhold an initial $4.9 million, retroactive to Aug. 15. The topic of civility in political debate came up this month as Tucson commemorated the events of Jan. 8, 2011, in which six people were killed and 13 wounded in the shooting U.S. Rep. Gabrielle Giffords’ Congress On Your Corner event. This whole

mess about TUSD’s Mexican American Studies can be traced to a lack of civility in the political debate. Perhaps Dolores Huerta will choose her words more carefully when giving speeches. After all it was her words “Republicans hate Latinos” at a student assembly in April 2006 that raised the ire of former Superintendent of Public Instruction Tom Horne, a Republican who is now state Attorney General. TUSD’s Mexican American Studies program had existed for eight years up until that point. When Horne sent his assistant Margaret Garcia Dugan to provide an opposing view at a TUSD assembly, students disrupted her, raising fists and walking out. Yes, these were just young students but their attitude shows just how malleable their minds are as was later seen when they essentially commandeered the TUSD school board meeting room. So much for civility in political debate. Horne then pursued the issue, writing and lobbying for the 2010 state law that was passed. Subsequently Huppenthal, who was elected in 2010, determined TUSD’s program was not in compliance with state law. Administrative Law Judge Lewis Kowal ruled on Dec. 27 that the TUSD program did in fact have classes designed for Hispanics as a group that promoted racial resentment against Anglos and advocated for Hispanic ethnic solidarity. Regardless of whether or not having Mexican American Studies is a good idea or not, it’s now clear that the curriculum for the program was faulty. While the temptation from some may be to continue to fight the battle, the debate is now properly placed as the sideshow that it was. Let TUSD get back to focusing on improving the quality of its K-12 education.

InsideTucsonBusiness.com

JANUARY 20, 2012

21

OPINION BUSINESS INK

Occupy Tucson showed us what life would be like in Baja Arizona For nine weeks, Tucsonans witnessed the most “in tents” socio-economic crisis ever to grip the city. Groveling crowds of chronic complainers, slackers, moochers, old hippies, activists and misfits joined a handful of Tucson’s truly unfortunate – the unemployed, homeless, debt-ridden and foreclosed upon – to cry out in shrill protest for attention. As the drama unfolded in two downtown parks, their communal plight became a narcissistic “movement.” They created their own mini-state, complete with self-government. They called themselves Occupy Tucson. To almost everyone else, it was Baja Arizona: a glimpse of what life would be like in the nation’s 51st state. Recall that last February, two lawyers hyped the idea of Pima County seceding from the state to form Baja Arizona. The liberal separatists were unhappy with the conservative political agenda at the state capitol where Democrats are the minority party. Basically, it was a publicity stunt concocted in a bar. A farce that could never happen, until a group of rag-tag malcontents stole their script and acted out their charade. In October, the separatists and occupiers melded as squatters in a public park to

ROGER YOHEM

air their complaints. And in tribute to the city’s historical roots, once known as “Stjukshon,” they sent their messages out across the desert by beating on drums in tents. It’s the Baja

Arizona way. The separatists got what they wanted, but not exactly as they wanted it. La-la-la, whatever. Doesn’t matter. The Tucson city council’s Democratic majority was in charge, governing the state of occupied Baja. In Baja Arizona, if you are an activist with a cause, the laws don’t apply. No permits required. Baja’s “state government” let them occupy the parks illegally, build soup kitchens, abuse trees, and run a public utility based on a big blue porta-loo. And when police tried to enforce the law, the city council made them stand down. Officers were handcuffed for the sake of politically correct tolerance. Occupy Baja was a place where the one percent vocal minority was given 99 percent of the political swag and media spotlight.

As the fear of fines and jail time mounted, one council member appealed for a moratorium, to stop ticketing protestors. Her pleas to ignore the citations were a joke, like this old one: What’s the difference between an activist and a puppy? Eventually, the puppy stops whining. As Occupy Baja’s slumber party grew, they should have been moved from downtown into a pothole. Only in Baja Arizona could a protester propose to his girlfriend in a tent, asking her to “occupy the couch with me at my mom’s apartment until I get a job.” And where else could two hippies occupy the Hotel Arizona bathroom to dry out their Zig-Zag papers on the hot-air blower? Most protestor demands targeted income inequality. Yet, that hypocrisy didn’t keep a Baja occupist away from an ATM when she ran out of cash. She never hesitated to hit the “yes” button to OK the $1 fee, knowing that a greedy bank got the money. But she didn’t care, it was her dad’s credit card. And late that night after fleeing the park at 10 p.m. to avoid a citation, she and some other occupiers roamed downtown, putting superglue into every ATM they passed. It’s the Baja Arizona way. They blame corporate America for

forcing them to open their wallets, to gorge and ruin their credit. They blame lenders for pressuring them to borrow more than they could repay. And those evil builders, OMG! They demanded that they buy a big house to live big in. Face it, the occupists are peeved because government can no longer afford to give away all the freebies that were promised. The Occupy Baja protest only proved that Southern Arizona’s 99 percent wants Pima County to be a welfare state. No businesses were created in Baja Arizona to generate new jobs and tax revenue. Police protection was provided courtesy of the taxpayers who actually go to work. If Baja Arizona had seceded, the new state would have been bankrupt in its first year. Thankfully, Occupy Baja Arizona ended Dec. 21, at least for now. But as soon as the brittlebush blooms, the constant complainers, and ‘60s hippies stuck in protest mode will reorganize and re-occupy somewhere. Maybe city officials will let them occupy Hi Corbett Field. It’s empty most of the year.

Contact Roger Yohem at ryohem@azbiz. com or (520) 295-4254. His Business Notebook appears biweekly and weighs in on local political, social and business issues.

SPEAKING OUT

What we can all take away from the Jan. 8 memorial tributes Earlier this month, the Tucson community came together in many ways to memorialize the tragic events of Jan. 8, 2011. The events included hikes and bike rides, arts programs, a special theatrical production, church services, bell-ringing and a gathering on the University of Arizona Mall. My husband and I attended a presentation by Tom Zoellner at Antigone Books. Zoellner’s book, “A Safeway in Arizona” was the focal point of his talk followed by a thoughtful discussion with an audience of about 50 people. Zoellner disclosed he is a friend of U.S. Rep. Gabrielle Giffords and had worked on her campaign. He said her 2010 re-election campaign was vitriolic, and Giffords was vilified. He talked of uncomfortable facets in our community. With a constant migration into and out of the area, people often don’t establish roots. We are spread out and live in walled enclaves where we may not know our neighbors. We can be insulated from what is going on around us. Zoellner said the “tragedy was always within our control.” We ignored it. Zoellner also noted the many heroes who helped at the scene of the shooting.

Saddened by the disaster, we conducted ourselves in an admirable way immediately after the events occurred. People expressed their feelings with CAROL WEST candles, flowers, balloons, photos and other memorabilia that spontaneously appeared at University Medical Center and Giffords’ Congressional office. Accused shooter Jared Loughner caused a lot of heartbreak for individual families and the community. It appears he was mentally ill. We need to have a conversation, Zoellner said, about what can be done before such people become destructive. The audience wanted to discuss why the shooting happened. Was Loughner being angry at Congresswoman Giffords from a previous event when she couldn’t answer his unfocused questions? Why had such a troubled young man been allowed to get to this crisis point? Some in the group at Antigone Books were

relative newcomers to Arizona. They talked about what they consider to be lax gun laws in this state. Others said Loughner gave out warning signs long before he acted violently. Why wasn’t something done to help him? Zoellner noted Pima County voters in May 2006 approved bonds to develop a new mental health facility at what is now named University of Arizona Medical Center South Campus. Nevertheless, mental health programs need more funding. Some also said they were concerned about Zoellner’s depiction of Tucson. In any event, the discussion was engaging and gave us an opportunity to express our feelings and concerns. The question was raised: Should the Tucson community continue to commemorate the events of Jan. 8, 2011 each year? Many at the discussion thought that it would be a good idea. Whether that becomes the case, it seems to me that we all need to work toward a more civil community and become advocates for better mental healthcare. Dallas Green, brother to Christina-Taylor Green, the 9-year-old who was killed, said in a local news story that he and his sister waited together each morning for

their school bus. Dallas cited his loneliness now that Christina is no longer with him. Mindful of this, a neighbor brings her dog outside, and they are with Dallas each day as he waits for the bus. That’s just one act of kindness we can all learn from. There are other indications that caring acts are spreading in our community. The tragedy must teach us to be more civil to one another. Former Tucson Mayor Bob Walkup developed “Civility Principles” that have been adopted by more than 200 city mayors: • Respect the right of all Americans to hold different opinions. • Avoid rhetoric intended to humiliate, de-legitimatize, or question the patriotism of those whose opinions are different from ours. • Strive to understand differing perspectives. • Choose words carefully. • Speak truthfully without accusation, and avoid distortion. These principles can guide our interactions with others every day.

Contact Carol West at cwwfoster@aol. com. West served on the Tucson City Council from 1999-2007 and was a council aide from 1987-1995.

22 JANUARY 20, 2012

INSIDE TUCSON BUSINESS

OPINION GUEST OPINION

Obama’s health-care law is hurting insurance agents and millions of consumers The national health-care reform law‘s unintended consequences have been well catalogued. This month marks a year since President Obama’s Affordable Care Act, sometimes called Obamacare, put into play one of its lesser known, but most damaging provisions. If you’ve never heard of the law’s medical loss ratio (MLR) provision, you’re not alone. This simple calculation radically reduces what health insurance agents earn. That, in turn has greatly restricted their ability to help millions of Americans navigate the maze of approvals needed for medical procedures and processing claims. It has had a devastating effect on these agents’ businesses and is disrupting the insurance market. At the end of last year, state insurance commissioners took a big step to undo some of the damage done by the act. The National Association of Insurance Commissioners approved a resolution urging Congress to remove health insurance agents’ compensation from the law’s medical loss ratio provision. In the meantime, the association wants the Obama administration to do what it can to mitigate the negative impact of the provision. So what does that mean? The MLR provision states that insurers must dedicate at least 80 percent of individual and small group premiums they receive to medical- or quality-improvement expenses.

The figure goes up to 85 percent for large group policies. Because agents’ compensation counts against the MLR (along with such items as marketing expenses and corporate profits), ROBERT MILLER many insurance companies immediately slashed commissions when the provision went into effect last January. Insurers having to put such a high portion of the premiums collected toward these expenses meant that agents – on the frontlines of helping customers – made less and had to cut services to compensate. A survey by the National Association of Insurance and Financial Advisors found that 80 percent of health insurance agents saw their commissions decrease, including 52 percent whose companies cut commissions by 25 percent or more since the health-care law went into effect. The Government Accountability Office confirmed this, stating that “almost all of the insurers said they had decreased or planned to decrease commissions to brokers in an effort to increase their MLRs.”

It’s a tough time to be an insurance agent. Their median annual income was less than $50,000 before the law went into effect. Many are small business owners who can no longer afford to pay their employees. But the problem is much more serious than that. It’s getting tougher to be a consumer in the market for health insurance, too. Unlike agent compensation, premiums have not gone down. And while removing compensation from the MLR would not cause premiums to increase, there have been a slew of unintended consequences from leaving it in. Agents do much more than sell insurance. They serve their clients, not the insurance companies, helping people when they have trouble getting surgical procedures and tests approved or claims processed. They provide corporate clients with individual enrollment assistance for their employees. They create and administer company wellness programs and often serve as the extended human resources departments for small business clients. As agents deal with the consequences of the MLR, many are finding that the cost of servicing clients now exceeds their income. They are cutting back on services and laying off support staff. Some are leaving the business altogether, effectively reduc-

InsideTucsonBusiness.com

Save it for a rainy day

25%

What should the state do with the budget surplus?

Return it to the taxpayers

15%

Use it for incentives to bring jobs to Arizona

21%

Buy back the state buildings that were sold

8%

Invest in education

31%

Next week’s poll: Did the TUSD Governing Board make the right decision to end the Mexican-American Studies program?

ing the competition that the health-care law was supposed to foster. All of this is disrupting the marketplace. That’s why I applaud the efforts of the National Association of Insurance Commissioners. The commissioners are well respected and have a long history of protecting consumers and ensuring the stability of the insurance market. Their opinion rightfully carries weight among decisionmakers in Washington. Congress and the president never intended for the law to limit consumers’ health-care choices or reduce the quality of coverage. As President Obama has acknowledged, “Anything can be improved.” Treating agents’ compensation as a pass-through item and thereby removing it from the MLR equation would be a huge improvement toward ensuring that Americans continue to have access to the essential support and customer service that professionally trained and licensed agents provide.

Robert Miller is president of the National Association of Insurance and Financial Advisors, based in Falls Church, Va. NAIFA comprises more than 600 state and local associations representing the interests of 200,000 members and their associates nationwide.

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INSIDE TUCSON BUSINESS

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MAKING A MARK Now is the time to recognize young professionals who are on their way to greatness in the Tucson region. They are leaders in their 20s, 30s or early 40s who are making a difference for the better in their careers and their community. Go to: www.InsideTucsonBusiness.com and click on the Up & Comers icon. Nominate yourself or someone you know today. The deadline is Feb. 22, 2012. Honorees announced in a special section in the April 13 issue of Inside Tucson Business.

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