California Business Images: 2009 by Journal Communications

CALIFORNIA BUSINESS ®

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Connecting the Docs Telemedicine is tonic for rural patients

Message in a Bottle

What’s s e Online Read about the state’s Emerging Technology Fund.

Vineyards, wineries continue to thrive

Solar Flares Companies, residents harness the sun SPONSORED BY THE CALIFORNIA ASSOCIATION FOR LOCAL ECONOMIC DEVELOPMENT | 2009

contents CALIFORNIA BUSINESS ®

OVERVIEW

BUSINESS ALMANAC

BUSINESS CLIMATE

It’s Go Time

Golden State companies view innovation as the key to replenishing gold in corporate treasuries.

Get Ready, Get Set

EDUCATION

Taking the Initiatives

Community colleges take a tenfold approach to training high-growth employment sectors.

Schooling the Creative Class

TR ANSPORTATION

Ports of Cal

Harbors on the Paciﬁc Coast and inland upgrade their infrastructures and adopt green policies.

Fast Times Ahead

HEALTH

Here’s to Your Health

The California Endowment funds a 10-year program aimed at building healthy communities.

Connecting the Docs

On the Move

LIVABILITY

California Dreamin’

Recreational opportunities remain a draw for tourists – and for employers and their employees. ENERGY/TECHNOLOGY

Raising the Green Standard

California’s vigorous green-energy policies set a high bar for the nation.

Solar Flares

On the Cover PHOTO BY JEFF ADKINS Solar field at Mariani Packing Co., Vacaville

CALIFORNIA

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NORTHERN CALIFORNIAâ&#x20AC;&#x2122;S ADDRESS OF SUCCESS

ONLINE

CONNECTIONS

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Workstyle A spotlight on innovative companies that call California home

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We are home to growing medical and clean technology industries, strategically positioned for national and global commerce We are proud of our educated, highly skilled work force and award-winning schools

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contents

RESEARCH & DEVELOPMENT

From Lab to Marketplace

Many private sector enterprises spring from research on the University of Californiaâ&#x20AC;&#x2122;s 10 campuses. AGRIBUSINESS

Message in a Bottle

Vineyards and wineries continue to thrive in many regions across the state.

Get the Daily Dirt

MANUFACTURING

Having It Made in California 42 California manufacturers chalk up $250 billion in annual revenue to place No. 1 nationally.

A Capital Idea

ENTREPRENEURSHIP/ SMALL BUSINESS

Startup Successes

With its pro-business spirit and policies, California is a leader in supporting young companies.

42 CALIFORNIA

A Refuge in Turbulent Times

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DON’T JUST TAKE OUR WORD FOR IT ... see it for yourself

2009 EDITION, VOLUME 2

CU S TO M M AG A Z INE M ED I A

MANAGING EDITOR MAURICE FLIESS COPY EDITOR JOYCE CARUTHERS ASSOCIATE EDITORS LISA BATTLES, SUSAN CHAPPELL, JESSY YANCEY ONLINE CONTENT MANAGER MATT BIGELOW STAFF WRITERS CAROL COWAN, KEVIN LITWIN CONTRIBUTING WRITERS RENEE ELDER, SHARON H. FITZGERALD, PAM GEORGE, JOE MORRIS, JESSICA MOZO, AMY STUMPFL DATA MANAGER CHANDRA BRADSHAW REGIONAL SALES MANAGER CHARLES FITZGIBBON

VIDEO >>

INTEGRATED MEDIA MANAGERS TRIP MILLER, DAVID MOSKOVITZ SALES SUPPORT MANAGER SARA SARTIN SENIOR PHOTOGRAPHER BRIAN MCCORD STAFF PHOTOGRAPHERS JEFF ADKINS, TODD BENNETT, ANTONY BOSHIER, IAN CURCIO, J. KYLE KEENER PHOTOGRAPHY ASSISTANT ANNE WHITLOW CREATIVE DIRECTOR KEITH HARRIS WEB DEVELOPMENT DIRECTOR BRIAN SMITH ASSOCIATE PRODUCTION DIRECTOR CHRISTINA CARDEN PRODUCTION PROJECT MANAGERS MELISSA BRACEWELL, KATIE MIDDENDORF, JILL WYATT SENIOR GRAPHIC DESIGNERS LAURA GALLAGHER, KRIS SEXTON, CANDICE SWEET, VIKKI WILLIAMS LEAD DESIGNER JESSICA MANNER GRAPHIC DESIGN ERICA HINES, ALISON HUNTER, JANINE MARYLAND, AMY NELSON, MARCUS SNYDER WEB DESIGN DIRECTOR FRANCO SCARAMUZZA WEB PROJECT MANAGERS ANDY HARTLEY, YAMEL RUIZ WEB DESIGN CARL SCHULZ WEB PRODUCTION JENNIFER GRAVES COLOR IMAGING TECHNICIAN TWILA ALLEN AD TRAFFIC MARCIA MILLAR, PATRICIA MOISAN, RAVEN PETTY CHAIRMAN GREG THURMAN PRESIDENT/PUBLISHER BOB SCHWARTZMAN EXECUTIVE VICE PRESIDENT RAY LANGEN SR. V.P./CLIENT DEVELOPMENT JEFF HEEFNER SR. V.P./SALES CARLA H. THURMAN SR. V.P./OPERATIONS CASEY E. HESTER V.P./SALES HERB HARPER V.P./SALES TODD POTTER V.P./VISUAL CONTENT MARK FORESTER V.P./EDITORIAL DIRECTOR TEREE CARUTHERS MANAGING EDITOR/BUSINESS BILL McMEEKIN MANAGING EDITOR/COMMUNITY KIM MADLOM MANAGING EDITOR/CUSTOM KIM NEWSOM PRODUCTION DIRECTOR NATASHA LORENS PHOTOGRAPHY DIRECTOR JEFFREY S. OTTO CONTROLLER CHRIS DUDLEY ACCOUNTING MORIAH DOMBY, DIANA GUZMAN, MARIA MCFARLAND, LISA OWENS RECRUITING/TRAINING DIRECTOR SUZY WALDRIP DISTRIBUTION DIRECTOR GARY SMITH INFORMATION TECHNOLOGY DIRECTOR YANCEY TURTURICE NETWORK ADMINISTRATOR JAMES SCOLLARD IT SERVICE TECHNICIAN RYAN SWEENEY

What makes California such a favorable place to do business? What is it about the livability of California that makes people who move there to work decide to stay for the long term? Experience the vitality and charm of California from the comfort of your computer. California Business Images shows you California like you’ve never seen it before, thanks to the work of our award-winning photographers and writers. California is just a click away.

HUMAN RESOURCES MANAGER PEGGY BLAKE SALES SUPPORT RACHAEL GOLDSBERRY SALES/MARKETING COORDINATOR RACHEL MATHEIS EXECUTIVE SECRETARY/SALES SUPPORT KRISTY DUNCAN OFFICE MANAGER SHELLY GRISSOM RECEPTIONIST LINDA BISHOP

California Business Images is published annually by Journal Communications Inc. and is distributed through the California Association for Local Economic Development, (CALED). For advertising information or to direct questions or comments about the magazine, contact Journal Communications Inc. at (615) 771-0080 or by e-mail at info@jnlcom.com.

FOR MORE INFORMATION, CONTACT: California Association for Local Economic Development 550 Bercut Drive, Suite G • Sacramento, CA 95811 Phone: (916) 448-8252 • Fax: (916) 448-3811 www.caled.org VISIT CALIFORNIA BUSINESS IMAGES ONLINE AT CALIFORNIABUSINESSIMAGES.COM ©Copyright 2009 Journal Communications Inc., 725 Cool Springs Blvd., Suite 400, Franklin, TN 37067, (615) 771-0080. All rights reserved. No portion of this magazine may be reproduced in whole or in part without written consent.

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overview

AN ERA FOR MANUFACTURING IDEAS CALED works with partners to spur innovation, entrepreneurship With bank bailouts and mortgage meltdowns dominating news headlines, it’s no wonder that companies are looking for ways to cut costs and weather the storm. But with proper planning, the current downturn also could mean big opportunities for California businesses. “It’s more important than ever to look at ways to strengthen our approach to economic development – investing in long-term strategy and [maximizing use of] existing resources,” says Kathy Millison, city manager for the city of Clovis and incoming chair of the California Association for Local Economic Development, or CALED. “Now is the time to position ourselves for future growth.” Millison says the state is working hard to develop strategies that will support existing industries while fostering new ideas and technologies in everything OREGON

Eureka Redding

from health and life sciences to green industries and renewable energy. “California has a proven record when it comes to innovation and entrepreneurship,” she says. “Our economy is shifting from manufacturing products to manufacturing ideas. We have the intellectual resources and leadership in place to spur growth, but we also have to look at where we fit within the global marketplace.” Millison insists that such changes in strategy must occur at the local and regional level. “This is going to be a grass-roots effort. Change is not going to come from the top but rather from the bottom up. It’s important to help our local and regional economic development partners understand their strengths and seek out opportunities.” That has been CALED’s mission from the beginning. Established in 1980, the organization provides training, education, research and technical assistance to its more than 900 members, including cities, counties, state and federal agencies, and economic development corporations throughout the state – as well as the private sector. – Amy Stumpfl

Chico 80

Santa Rosa

Sacramento

80 5

Oakland StocktonSonora San Francisco Modesto San Jose Fresno

Monterey

Nine distinct regions are denoted by color tinting on this Golden State map, which also shows some principal cities within the regions. They are: Southern Border (San Diego, El Centro), Southern California (Los Angeles, Long Beach, Riverside, San Bernardino, Palm Springs), Central Sierra (Sonora), Central Coast (Santa Barbara, San Luis Obispo, Monterey), San Joaquin N EV Valley (Bakersfield, Fresno, Modesto, A DA Stockton), Bay Area (San Francisco, Oakland, San Jose, Santa Rosa), Greater Sacramento, Northern Sacramento Valley (Chico, Redding) and Northern California (Eureka).

CALIFORNIA Bakersfield

San Luis Obispo

A ON IZ

Santa Barbara

San Bernardino Riverside Palm Springs

Los Angeles

Long Beach 5

El Centro

San Diego

MEXICO

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business almanac

NORTHERN CALIFORNIA

CALIFORNIA STREAMING When most people think about California, hunting and fishing do not come immediately to mind. But for many residents of the state’s northern tier of counties, hunting and fishing are a way of life. Consider, as one prime example, Six Rivers National Forest in Del Norte, Humboldt, Siskiyou and Trinity counties. Blacktail-deer hunting on its nearly one million acres is renowned. Also popular is hunting for quail, grouse, wild turkeys and – on a limited basis – Roosevelt elk. Anglers, meanwhile, are drawn to such streams as the Smith and Klamath rivers, where trophy-size Chinook salmon and steelhead trout have been caught. How big? A state-record 27-pound, 4-ounce steelhead was landed in 1976, and a monster 68-pound Chinook salmon was netted in 2004.

GREATER SACRAMENTO

SOUTHERN BORDER

TRADE SECRETS Mexico is California’s largest trading partner. And that’s good news for the border counties of San Diego and Imperial. Golden State crossing points to Mexico are in Tecate, San Ysidro, Otay Mesa, Calexico and Andrade. In December 2008, officials from the two countries announced that a new crossing will be built and opened in east Otay Mesa by 2014. “This is one more step in our continued effort to rebuild and expand the infrastructure needed to accommodate increased international trade with Mexico and other countries,” Gov. Arnold Schwarzenegger said. An estimated $18.3 billion in California products – led by computers/electronic products and transportation equipment – were exported to Mexico in 2007.

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IF THIS DOME COULD TALK Like the state laws that percolate in its legislative chambers, construction of the California State Capitol was a tedious process. It started in 1860 – the year before Civil War broke out on the other side of the continent. In 1869, the legislature and the governor moved into the partially completed building, but it wasn’t until 1874 – two years before the nation celebrated its centennial – that the building was finished. Along the way, floods, materials shortages, labor issues and funding problems hampered progress. In 1864, a principal architect entered a mental institution with a diagnosis of insanity arising from “continued and close attention to the building of the State Capitol.” Initially budgeted at $100,000, the capitol ended up costing $2.5 million. More information: www.statecapitolmuseum.com.

CALIFORNIA

SOUTHERN CALIFORNIA

LIGHTS, CAMERA, ECONOMIC ACTION There’s no denying it: Hollywood means more than glitz and glamour. It also means big bucks for the region. A recent study commissioned by the Los Angeles County Economic Development Corp. found that the film industry employs about 200,000 people in Los Angeles County. That includes those working for motion picture or sound companies, in broadcasting, or as independent artists, writers and performers. The film industry is the county’s third-biggest employer. Another study, this one conducted in 2006 by the Motion Picture Association of America, ranked California as a clear No. 1 in the economic benefit of production of movies and TV shows. It had $42.2 billion of such benefit.

SAN JOAQUIN VALLEY

FIELDS OF PLENTY Agriculture defines this eight-county region – everything from olives and nuts to asparagus and nectarines, and from beef and sheep to dairy products and cotton. Heading the list are Tulare and Fresno counties, which are the nation’s top-two agricultural counties.

NORTHERN SACRAMENTO VALLEY

CONCRETE EVIDENCE In the same year the Allied troops stormed the beaches of Normandy, France, on D-Day (1944), the federal government completed construction of the Shasta Dam on the Sacramento River near Redding. The massive dam – 3,460 feet across at the top and 602 feet tall – provides vital control of water flowing southward toward Sacramento and the Bay Area. The impoundment it forms, Shasta Lake, covers as much as 30,000 acres and is the largest manmade reservoir in California, providing recreational opportunities of many kinds.

According to Paul M. Saldana, president and chief executive officer of the Tulare County Economic Development Corp., Tulare County produces about $4 billion worth of agricultural goods annually; it is No. 1 nationally in citrus and dairy production, No. 2 in almonds and grapes, and in the top five for pistachios. Tulare County is also home to the World Ag Expo – billed as the world’s largest annual agricultural exposition. It draws more than 100,000 people each February.

Another key component of the project is hydroelectric power. Shasta’s turbines can generate up to 676 megawatts of electricity.

CALIFORNIA

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business almanac

CENTRAL COAST

VINES AND WINES It’s been five years since the motion picture Sideways was released, but its effects are still being felt by scores of wineries on the Central Coast. The hit film, which was nominated for five Academy Awards and won one, revolved around a weeklong road trip through the region’s wine country. For many people, it was a revelation that this part of California – well southeast of the fabled Napa Valley – is a prime wine-growing region.

BAY AREA

RAIDERS AND CONTAINERS

But the truth is, Franciscan friars began growing wine grapes here a century ago. And now there are about 400 wineries in the three counties of Santa Barbara (130-plus), San Luis Obispo (200-plus) and Monterey (65-plus). Many have won awards for specific vintages of such wines as cabernet sauvignon and pinot noir.

Oakland is known to sports fans for the Raiders of National Football League and the A’s of Major League Baseball. In the world of commerce, the city is known for the Port of Oakland. The port incorporates not only the sprawling marine facilities on the east shore of San Francisco Bay but also the adjacent Oakland International Airport. Together, they cover about 3,500 acres and 19 miles of waterfront. In addition, the port owns and manages more than 900 acres of commercial real estate, including Jack London Square – a development of offices, restaurants and retail stores. In all, the port’s assets total approximately $2 billion, and annual revenues are about $260 million. In 1962, the Port of Oakland became the first on the West Coast to accommodate container ships. Today, its 35 cranes load and unload 99 percent of the containerized goods moving through Northern California, making it the fourth-busiest container port in the United States. More information: www.portofoakland.com.

CALIFORNIA

CENTRAL SIERRA

SKIING IS BELIEVING When the Sierra Mountains are blanketed in white, skiers and snowboarders are found on the region’s many slopes. Ski resorts include Mammoth Mountain and June Mountain in Mono County, Badger Pass and Dodge Ridge in Tuolumne County, and Bear Valley and Kirkwood Mountain in Alpine County. Of these, Mammoth is probably the best known. It offers bowl skiing on 3,500 acres, with three gondolas and 23 chair lifts available to whisk skiers up the mountain. Average annual snowfall is about 350 inches, but the resort supplements that with snowmaking machinery on about a third of the trails.

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business climate

Go Time

It’s

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CALIFORNIA

Companies see innovation as the key to overcoming the economic downturn

CALED’s Wayne Schell talks about the state’s economy at californiabusinessimages.com.

CALIFORNIA

JEFF ADKINS

SEE VIDEO ONLINE

alifornia has experienced tough times before, and the state always has found ways to remedy the difficult situations. Many of those remedies came in the form of innovation. “Economic disruptions like those being experienced in California and the nation are challenging, but they also create new economic opportunities because the status quo is challenged,” says Brian McGowan, California deputy secretary for economic development and commerce. “California is historically innovative about creating new business models. The challenge is identifying where those new opportunities are going to lie. We will get through this and come up shining because we’re Californians – we are different from any other state.” McGowan says one of the future innovations will involve planning highways with interchanges at strategic points. “When we construct a highway from now on, we want the interchanges built where there will be future economic growth,” he says. “We will reason why an interchange should be here instead of having it over there. No highway thinking model such as this currently exists anywhere in the world, but it will become a reality in California.” McGowan, a board member of the California Association for Local Economic Development, says the state also is encouraging economic developers to step up their efforts. Some cities have responded by increasing their advertising budgets to implore residents to buy locally and thereby save gas money while stimu lating the

More Insight INNOVATION In 2008, California Gov. Arnold Schwarzenegger plunked down $125,000 of his own money and purchased a Tesla Roadster. Since then, 200 more people have done so. TESLA MOTORS INC. is a Silicon Valley-based electric vehicle manufacturer that began producing its two-passenger roadster models in 2008. The base price is $109,000. The company, which has about 300 employees in the San Mateo County city of San Carlos, has announced that it will begin manufacturing a sedan (base price $57,400) in 2011.

Cilion Inc. built a $60 million plant in Keyes to produce 55 million gallons of ethanol annually.

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business climate

Get Ready, Get Set Wayne Schell believes the federal government shouldn’t be doing everything to rescue California’s slumping economy. He believes individual communities should step up and initiate their own economic stimulus activities. “The main point that we are asking communities – as well as the state – to consider is, how are you going to accelerate your economic process to get your own house in order?” says Schell, president and chief executive officer of the California Association for Local Economic Development. “As for us at CALED, our job is to supply information to the state and communities that will help them with economic development.” Schell says one CALED suggestion is for communities to have land sites cleared and ready so that interested businesses can get facilities built quickly. Schell adds that there are still many growth opportunities for the business world in California, even though some news media fail to report that message. He asks, “When do we start mentioning the good aspects of business? Our job at CALED is to get the word out about all of the positives in California, so that a company’s grand opening can occasionally get ahead of headlines trumpeting a company’s closing.” – Kevin Litwin

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JEFF ADKINS

CALED PROMOTES STATE’S PLUSES

SureWest Communications is one of the tenants in McClellan Park, a corporate office park near Sacramento that offers more than 16 million square feet of space.

local economy. McGowan constantly promotes the state, reminding people “that while some states can maybe claim two or three leading industries, California can claim [many more]. We are the leader in entertainment, software technology, water technology, IT, logistics, nanotechnology, biotechnology and on and on. That’s why it is perfectly conceivable that Californians will lead the way in coming up with innovative new business models, as we eventually see a new economy emerge not only nationally but globally over the next five years.” EXPANSIONS AMID DOWNTURNS One county that continues to enjoy business success is San Joaquin, which has welcomed 52,000 new jobs over the past 15 years. Economic developers say they always look to capitalize on the county’s business strengths, such as its proximity to major markets. “Most of our local companies do business with Northern California and its population of 15 million people, plus the regional eight Western states that are easy to access,” says Mike Locke, president and chief executive officer of the

San Joaquin Partnership economic development organization. “We are lucky to have an ideally located water shipping port in Stockton, great weather for our large agricultural industry, plus easy trucking access to Interstates 5, 205, 580 and State Route 99. Locke says San Joaquin County is also a railroad freight hub. “We have BNSF doing about 400,000 container load-andunload lifts a year at their intermodal rail yard, while Union Pacific performs 150,000 annual lifts – and is currently undergoing a major expansion to double the size of its facility,” he says. Locke adds that USG Corp. is planning to build a $350 million gypsum sheetrock plant in San Joaquin County beginning in 2010, and The Home Depot in 2009 established its third huge distribution center in the county. In fact, 12 company expansion projects were completed in San Joaquin during 2008, even during the economic downturn. “Sure, economic times are tough right now, but a large part of an economic downturn is psychological,” Locke says. “We are Californians, we are innovative, and we will get through all of this as a leader – just like we always have.” – Kevin Litwin

CALIFORNIA

education

Taking the

Initiatives Workforce development flows from nimble community colleges’ program

CALIFORNIA

JEFF ADKINS

ith 110 community colleges operating in 72 districts, the California Community Colleges system is an important vehicle for delivering workforce training across the state. Ten strategic, priority initiatives that focus on high-growth, cuttingedge employment sectors form the basis of CCC’s Economic and Workforce Development Program, which operates out of numerous resource centers. By continually assessing workforce and business development needs across California’s diverse economic regions and industries, the program revs up the colleges’ workforce development engines, enabling them to provide relevant training programs quickly as well as craft career pathways for students. The Economic and Workforce Development Program also addresses challenges confronting workers, especially those in emerging technology fields. The program “is able to be at the forefront, to be agile in front of employers’ immediate needs,” says José Millan, vice chancellor of economic development and workforce preparation for California Community Colleges. Millan says the 10 initiatives “are our research and development to go out and find what programs are needed. Then, depending on the volume of demand,

A mural saluting the arts adorns the campus of two-year Cosumnes River College.

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More Insight FAST TRACK TO SUCCESS Community Colleges’ Economic and Workforce Development Initiatives: Advanced Transportation Technologies & Energy Applied Biotechnology Centers Centers for Applied Competitive Technologies Business & Workforce Performance Improvement Environment, Health, Safety & Homeland Security Health Care Centers for International Trade Development

we can develop short-term programs for training on a contract basis – or, if necessary, transform training into standardized programs for all of the colleges.” FROM RETRAINING TO VIDEO GAMING The Multimedia & Entertainment Initiative is a prime example. Various offerings at six MEI Centers range from traditional credit instruction to noncredit and fee-based classes. Some even offer low or no cost workshops on digital media subjects or on retraining motion picture union workers, says John Avakian, MEI director. “Beyond the more direct offerings at the various centers, there are hundreds of digital media programs offered at community colleges across California that are in existence in part because of the curriculum development efforts of the Multimedia & Entertainment Initiative,” Avakian says. As an example, he cites the Creative Entrepreneurship certificate program – developed by the Northern California New Media Center at Mission College – that was based on survey input from industry professionals. Another MEI success story relates to a series of products and events targeting the video game industry, a significant contributor to California’s economy. MEI cosponsored two industry studies and sponsored a symposium that brought together 70 community colleges faculty members and 12

game industry professionals to discuss workforce needs in game development and to assess related programs of study. The initiatives benefit from partners in related industries, all of which provide input and donate time, space and, in the case of MEI, software. MEI’s partners include Adobe, Apple, Autodesk, Unity3D, Acme Animation and the Entertainment Economy Institute. Being on the cutting edge of new technologies also means a green emphasis permeates the initiatives. “One thing I’ve directed all of them to do is focus on green technology within that sector,” Millan says. “For instance, in health care: Using electronic medical records versus paper or choosing supplies made from recyclable materials makes them greener. “Obviously, the Advanced Transportation Technologies and Energy Initiative deals more directly with hybrid cars, biodiesel, etc. But all the initiatives can stand to incorporate new efforts to go green. ‘Helping an employer to become more green’ is our new mantra,” he says. Visit www.cccewd.net to find out more. – Carol Cowan READ MORE ONLINE High school students gain insight into economic development.

Multimedia & Entertainment Small Business Development Center Workplace Learning Resource

The office of California Community Colleges in the state capital, Sacramento, oversees 110 colleges.

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CALIFORNIA

education

INNOVATION

Schooling the Creative Class In addition to enriching culture through the arts, creative people make vital contributions to the economy. But creative types don’t always thrive in traditional classroom settings. Ex’pression College for Digital Arts, in Emeryville on the east side of San Francisco Bay, takes an innovative approach that appeals to these kinds of students and outfits them with skills to succeed. The college offers bachelor’s degrees in animation and visual effects, game art and design, motion graphic design, and sound arts. It also offers advantages such as faculty that includes industry professionals, and professionalgrade equipment. In addition, the school is open 24 hours a day, seven days a week, so students can work on projects whenever their creative muse strikes. “The unique class structure provides an environment more conducive to creative people, who often are not inspired in a regimented 8-a.m.-to-3-p.m. classroom day,” says Randy Starbuck, director of redevelopment for the city of Pittsburg and father of an Ex’pression College student. “The schedule also affords the school the opportunity to employ as instructors people who have a day job in the creative world.” Starbuck continues, “Ex’pression provides training for the new world of performing arts – primarily movies – and these people can work just about anywhere.” – Carol Cowan

CALIFORNIA

P H OTO S B Y J E F F A D K I N S

OPEN 24/7, COLLEGE GIVES STUDENTS SCHEDULING FLEXIBILITY

Timo Preece uses an audio-mixing console at Ex’pression College for Digital Arts.

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Ports of Cal

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Harbors on the coast and inland improve infrastructure, adopt green policies

CALIFORNIA

transportation

alifornia’s ports are taking advantage of lesser traffic brought on by the sluggish economy to make improvements that will strengthen them for the future. From the twin ports of Long Beach and Los Angeles, which handle about 40 percent of the nation’s cargo, to smaller facilities such as those at Humboldt Bay and Crescent City, as well as inland sites in Pittsburg and Stockton, upgrades to infrastructure are under way or planned. “Our ports face competitive pressures from new and expanding ports in Mexico and Canada as well as other domestic ports, mostly on the East Coast,” says Bill Allen, president and chief executive officer of the Los Angeles County Economic Development Corp. “Trade diversion to other ports, the sour economy and the resultant drop in container traffic … ripples out to many port-related employment sectors including longshoremen, truck drivers, industrial real estate and port finance.” The ports of Long Beach and Los Angeles are implementing the San Pedro Ports Clean Air Action Plan, or CAAP, which involves hundreds of millions of dollars invested by them, local air districts, port-related industries and the state to cut particulate matter pollution from all port-related sources by at least 47 percent over the next five years. A major portion of CAAP is the Clean Trucks Program, which is expected to reduce air pollution from port-drayage trucks by more than 80 percent. “There must be a commitment to ‘green growth’ so that our ports modernize and expand in a way that cuts pollution, creates thousands of new high-wage jobs and contributes billions of dollars to our local economy,” Allen says. “From an

Burlingame-based Virgin America airline wins travel industry accolades.

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JEFF ADKINS

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Ports in Los Angeles, Long Beach and Oakland (pictured) are among the nation’s busiest – and taking steps to remain so.

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transportation

Scorecard PORTS REPORT

$100 billion+ value of cargo that moves through the Port of Long Beach annually

$190 billion

1 ranking of Los Angeles in container volume

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P H OTO S B Y J E F F A D K I N S

value of cargo handled annually by the Port of Los Angeles

economic development perspective, the bottom line is jobs, and some estimates forecast that green growth at our twin ports could generate close to 1 million new jobs over 20 years.” MAJOR IMPROVEMENTS IN LONG BEACH Currently, the Port of Long Beach has three major infrastructure projects in the works or wrapping up, according to James Hankla, president of the Long Beach Board of Harbor Commissioners. He identifies them as the $780 million Middle Harbor Project to combine two older piers into a new pier and terminal with enhanced rail transportation; a second new terminal costing about $700 million; and the $1.1 billion replacement of the Gerald Desmond Bridge. “When we come out of the recession, we will have a very, very attractive infrastructure in place,” Hankla says, “We’re also doing several smaller, rail-oriented improvements and are working on a zero-emission cargo system to move between the ports and the intermodal container facility. We’re trying to make use of this downtime to get the necessary improvements done to make us both more competitive and more environmentally sterile.” Similar efforts at the state’s smaller ports will be just as vital to their long-term success, says Barry Sedlik, president of California Business Ventures and former acting secretary of the California Business, Transportation & Housing Agency. “Having viable ports and the ability to move goods in and out efficiently is critical to the state’s future economy,” Sedlik

says. “They have tremendous challenges relative to emissions and health effects, and a lot is being done relative to changing out trucks for rail and other onsite operations. Those things are very expensive to do in the short run, and they have to find the balance between improving efficiency and keeping costs competitive. It’s a big challenge, and they’re trying to meet it.” – Joe Morris

Giant wind turbines are offloaded at the Port of Stockton. Left: Thanks to a $17 million dredging project on the Sacramento River, the port can accommodate larger vessels.

INNOVATION

Fast Times Ahead RIDING THE RAILS GOES HIGH-SPEED, WITH 800-MILE SYSTEM PLANNED California’s high-speed rail plans are fast becoming a reality, thanks to voter approval of funding that now may be augmented with federal stimulus dollars. With the establishment of the California High-Speed Rail Authority in 1996, the groundwork was laid for a high-speed system to serve the state’s major metropolitan areas. The authority began working on what would become Proposition 1A, which called for $9 billion in bond funding plus $950 million to improve commuter, intercity rail and local transit lines. The measure passed in November 2008.

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The massive undertaking is getting a boost from the federal government via both stimulus funding and the fiscal 2010 budget, which sets aside billions for such projects, says San Mateo Superior Court Judge Quentin Kopp, chairman of the authority. “We have notified both of our U.S. senators and other interested parties that with respect to the government stimulus bill, we’ll be applying on the basis of qualifying for about five or six different items, such as removing more than 600 grade crossings between Anaheim and San Francisco,” Kopp says. “We also will be including in

that application the acquisition of land and construction of a central maintenance facility in or near Merced in the Central Valley, and a storage yard in the Bay Area and one in the Los Angeles Basin.” The cost all requests will be about $2 billion. “I’m reasonably confident that a substantial part, if not all, of our application will be granted,” Kopp says. The proposed 800-mile system would stretch from Sacramento to San Diego. Trains operating as fast as 220 miles per hour would travel from Los Angeles to San Francisco in about 2 hours, 40 minutes. – Joe Morris

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health

Here’s to Your

Health California Endowment targets 14 communities for ambitious initiative

Scorecard CALIFORNIA ENDOWMENT GRANT MAKING

$165 million in fiscal year 2008

$133 million in fiscal year 2007

$163 million in fiscal year 2006

$165 million in fiscal year 2005

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ith nearly 7 million people lacking health coverage – including more than 700,000 children – California has the highest number of uninsured residents in the nation. To compound the problem, the state is peppered with pockets of poverty. “Low-income communities don’t have the same access to health, social, economic and cultural supports as their more affluent counterparts,” says Robert Alaniz, public affairs director for The California Endowment, based in Los Angeles. “Families in these communities live sicker and die younger.” The California Endowment is working to change that. The private foundation, established in 1996 after Blue Cross of

California converted to a for-profit entity, provides funding to improve the health of Californians, particularly those in underserved communities. “Where we live, work and play has a direct impact on our health,” Alaniz says. “The evidence is empirical, and the statistics are undeniable.” Consider that residents along Los Angeles’s South Figuerro Corridor are nearly twice as likely to die prematurely from heart disease as residents of the city’s wellheeled Westside. To address the inequities, The California Endowment is embarking on a 10-year initiative, Building Healthy Communities, with implementation to begin in 2010. The health foundation

Established in 1996 when Blue Cross of California converted to a for-profit entity, The California Endowment has offices in five cities, including Sacramento.

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JEFF ADKINS

CALIFORNIA

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health

INNOVATION

Connecting the Docs When a Colusa County hospital lost the nurses who monitored high-risk women in labor, the rural facility faced the end of its obstetric services. Enter the UC Davis Health System. In 1992, the University of California, Davis, set up a telephone-based fetalmonitoring link between the hospital and the UC Davis Medical Center in Sacramento. In 1996, the telemedicine program expanded to include real-time audiovisual technology. Today, the program covers more than 30 specialties – including dermatology, psychiatry, orthopedics, infectious disease and pediatric critical care – to give rural hospitals access to specialists. Critical-care consultations are available 24/7, 365 days a year. Indeed, one pediatrician did an urgent consultation from his home on Christmas Day, says Dr. Javeed Siddiqui, associate medical director of the Center for Health and Technology at UC Davis. Participating hospitals and clinics provide equipment for the telemedicine link. An onsite physician conducts a physical exam, if needed, and can control the camera to zoom in for a closer look. “By increasing access to specialists, telemedicine has demonstrated that it can decrease the cost of health care,” Siddiqui says. – Pam George

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JEFF ADKINS

TELEMEDICINE LINKS RURAL PATIENTS

The endowment’s Building Healthy Communities initiative will be implemented over 10 years, beginning in 2010. It will address inequities in access to health care.

selected 14 communities, each of which must develop a plan to achieve 10 specific outcomes that will help reach statewide goals for better health. One desired outcome, for instance, would be that residents live in communities with equitable housing and health-promoting land use, transportation and community development. “We selected 14 communities so we can demonstrate that you can turn communities around and build them into environments that support community health,” Alaniz says. The selection took into account each community’s need, readiness and willingness to commit to a 10-year effort, infrastructure and leadership. The choice of 14 communities (from an initial list of 20) was based on the amount of resources the health foundation can commit to the project over the next 10 years. CHILDREN DEFINE COMMUNITY HEALTH The California Endowment, which has regional offices in Fresno, Oakland, Sacramento and San Diego, also will participate in statewide policy/advocacy efforts to create sustainable health

improvements for all Californians. Policy change can occur at the institutional, local or statewide level. An institutional policy change might mean that hospitals no longer bill low-income, uninsured patients at an inflated rate for emergency services. A statewide policy change could involve laws that provide universal health coverage for uninsured children. A system change involves moving from the current health-care model of primarily responding to the ill to focusing on preventing illness. In addition to the Building Healthy Communities initiative, The California Endowment offers the Center for Healthy Communities, which provides space for nonprofit organizations and public institutions to tackle California’s most pressing health issues. It also offers curricula that address communication, advocacy and evaluation. No matter the initiative, the health foundation’s efforts put children as a priority. “The health of a community’s children is a prime indicator for that community’s health,” Alaniz says. “If the children are doing well, it is likely that the community has access to the support it needs to be healthy.” – Pam George

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On the Move Loma Linda University Medical Center enhances health care in Inland Empire

igger is better at Loma Linda University Medical Center, the only Level I trauma center in San Bernardino, Riverside, Inyo and Mono counties. The 939-bed medical center includes a children’s hospital, a behavioral health center and the 23-acre East Campus. “We’ve been growing by leaps and bounds,” says Steven Mohr, senior vice president of finance, who’s been on the staff for 10 years. “Since I’ve started here, we’ve grown from a $550 million organization in revenues to a $1 billion organization.” Loma Linda’s reputation is as big as its campus. In 2008, NBC News correspondent George Lewis discussed on-air his nine-week proton cancer therapy there, and U.S. News & World Report included the medical center’s ear, nose and throat specialty on its list of America’s Best Hospitals. Part of Loma Linda University, founded in 1905 by the Seventh-day Adventist Church, LLUMC treats the mind and spirit as well as the body. Consequently, it’s expanding behavioral health services at the Redlands Behavioral Medicine Center, which offers inpatient and outpatient services to treat psychological and substance abuse. The 46,000-square-foot building, scheduled to open in fall 2009, will increase outpatient services in such areas as marriage and family counseling, and social work. “It will be a one-stop shop,” Mohr says. The facility in Redlands is one of many LLUMC has built or is building in the Inland Empire. In December 2008, it opened the Loma Linda University Heart & Surgical Hospital in Colton, which offers services in cardiac care, urology, women’s health, head and neck care, and minimally invasive surgery. Current construction of the 106-bed Loma Linda University Medical Center-Murrieta represents a new direction for LLUMC. The $211 million hospital, expected to open in late 2010, is a joint effort between LLUMC, Physicians Group of Murrieta and Surgical Development Partners, a Nashville, Tenn.-based hospital developer. “We’re always looking to collaborate with other organizations,” Mohr says. An accompanying medical building is slated to open in January 2011. In five years, the hospital should generate 500 jobs with an estimated payroll of $32 million, according to Surgical Development Partners’ projections. The hospital is considering the addition of 114 beds within two years after opening. In Beaumont, LLUMC is partnering with Beaver Medical

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Group and Redlands Community Hospital to build an outpatient surgery center, urgent care center and medical offices. The 85,000-square-foot building is scheduled to open by summer 2009. “We’re working with area providers,” Mohr says. “Rather than expect them to drive to Loma Linda University Medical Center, we decided to team up and bring quality care to the citizens in these areas.” – Pam George

LLUMC’s main campus includes a 939-bed medical center.

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California

Dreamin’ State remains a leader in recreational opportunities

P H OTO S B Y J E F F A D K I N S

ourists flock to California to enjoy – for a week or a weekend at a time – the state’s multiple attractions and exceptional climate. The people who live here can do so, of course, 52 weeks a year. “The great thing about California is that there are so many different activities to experience – you can even snow ski and ocean surf all in one day,” says Carolina Beteta, president and chief executive officer of the California Travel and Tourism Commission. “There are world-class entertainment cities and majestic mountain adventures, and wildly beautiful coasts and deserts. No other state offers our diversity and abundance of inspiring landscapes and engaging activities.” Recreational adventures range from hiking in the High Sierra to kayaking amid sea otters on the Pacific Coast. The landscapes include the highest point in the continental United States (14,505-foot Mount Whitney) and the lowest point on the North American continent (Badwater in Death Valley, 282 feet below sea level). In fact, the topographic and recreational options in California are so diverse that tourism officials have separated the state into 12 destination regions: Central Coast, Central Valley, Desert, Gold Country, High Sierra, Inland Empire, Los Angeles County, North Coast, Orange County, San Diego County, San

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livability

READ MORE ONLINE An eco-friendly development with 50,000 homes is proposed in Kings County.

Francisco Bay Area and Shasta Cascade. “Each of the state’s 12 regions has its own character, and to travel from one to another can give you the impression you’ve traveled into a different country entirely,” Beteta says. “There are mystic redwood forests of the North Coast, magnificent granite peaks of the Sierra Nevada and stunning beaches of Southern California. This state simply possesses a spectacular array of landscapes for residents and visitors to enjoy.” A BOON TO EMPLOYEE RECRUITMENT The abundant recreational options also help employers attract the kind of talent needed to keep their companies in high gear. “There are so many positive things happening here, including the fact that California is a leader in innovation,” Beteta says. “Creative people enjoy living in a creative atmosphere, and California is also a leader in attracting such talent.”

Beteta adds that California’s weather is a major reason why the quality of life is so exceptional. Not only is the climate ideal for active lifestyles, but it is a key component in why the state has such a vibrant agricultural industry. “As the top producer of agriculture and wine in the United States, California offers the greatest opportunities to experience the best in food and wine – not only in taste but in harmony with the land,” she says. “Great food and great wine also attract visitors, and are simply two more reasons why California remains one of the most desirable tourism and recreation destinations in the world – and always will be.” In fact, with more than 350 million annual travelers, California is easily the most-visited state in America. Collectively, tourists spend an average of $100 billion annually, and nearly 20 percent of that spending can be attributed to international travelers. Travel spending in California directly supports 925,000 jobs and a payroll of $30 billion. – Kevin Litwin

Left: A cyclist climbs a hill in the Marin Headlands, with the Golden Gate Bridge and San Francisco Bay as a dramatic backdrop. Above: Kiteboarders soar at Ocean Beach, which, like Marin Headlands, is part of the Golden Gate National Recreation Area.

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Raising the

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Green

CALIFORNIA

energy/technology

Standard California’s vigorous green-energy policies set a high bar for the nation

ince passage of Assembly Bill 32, the California Global Warming Solutions Act of 2006, the Golden State has been pumping up efforts to get its energy policy in top shape. Its sweeping action plan is widely viewed as a national model for pursuing renewable energy and reducing greenhouse gas emissions. In November 20 08, Gov. A rnold Schwarzenegger signed an executive order that raised the state’s targeted renewable-energy standard to 33 percent by 2020 – the most aggressive standard in the country. To reach it, Californians must grow the state’s solar, wind and geothermal energy assets. To further encourage the growth of green energy, the governor’s order streamlines the approval process for renewable-energy projects. One month after the signing of that executive order, the California Public Utilities Commission gave the green light to San Diego Gas and Electric’s Sunrise Powerlink electric transmission line. The $1.9 billion project will carry renewable energy that is being developed in the Imperial Valley east of San Diego, says Jennifer Briscoe, SDG&E spokesperson. “The goal for the Sunrise Powerlink is to fill the 120-mile line with 1,000 megawatts of green energy, which is enough to power 650,000 homes here in San Diego. SDG&E has an agreement

with Stirling Energy Systems for more than 750 megawatts of solar energy. We also have two geothermal contracts for a 20-megawatt and a 40-megawatt geothermal facility. We are also interested in wind opportunities,” Briscoe says. The company expects Sunrise Powerlink to be fully energized by 2012. The state’s largest electric utility – Southern California Edison – already is the leading purchaser of green power in the United States. In 2007, the company purchased 80 percent of all solar power generated in the United States. Its renewable-energy portfolio contains 1,137 megawatts from wind, 906 megawatts from geothermal, 356 megawatts from solar, 185 megawatts from biomass and 200 megawatts from hydroelectric power sources. In 2008, SoCal Edison signed contracts to purchase an additional 1,500-plus megawatts of wind energy, and in February 2009, it announced an agreement for 1,300 megawatts of solar thermal power, pending CPUC approval. GOALS SET AS FAR AHEAD AS 2050 Along with developing clean, green power, the state is taking measures to improve energy efficiency and drastically reduce greenhousegas emissions. Assembly Bill 32 calls for emissions to be decreased to 1990 levels by 2020,

Two of hundreds of wind turbines at Altamont Pass near Tracy in Northern California

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More Insight INNOVATION PACIFIC GAS AND ELECTRIC CO. is making it easy for customers to reduce their carbon footprint. Its voluntary ClimateSmart program uses participants’ tax-deductible payments to fund environmental projects that curb greenhouse gas emissions, such as forest conservation and the capture of methane gas from dairy farms and landfills. More than 31,000 customers have signed on, including individuals, companies and cities.

PHOTO BY JEFF ADKINS

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San Pablo Bay 580

PINOLE

680

SAN FRANCISCO

OAKLAND San Francisco Bay

880

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Location. Location. Location. Location. Location. Location.

Come Come visit visit San San Gabriel Gabriel Valley Valley A great great place place to to live, live, work work and and play. play.

www.VisitSanGabrielValley.com The San Gabriel Economic Partnership is a regional, not-for-profit corporation committed to the continued successful economic development of the San Gabriel Valley. The Partnership, a collaboration of businesses, local government, colleges and universities, pursues this commitment through three areas of focus: Providing Professional Business Assistance, Advocating Public Policy and Marketing the San Gabriel Valley.

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CALIFORNIA

energy/technology

Solar Flares PHOTOVOLTAICS PROVIDE ENERGY BRIGHT SPOT

Although solar provided just 0.2 percent of the state’s power in 2007, new projects such as Stirling Energy Systems’ SunCatcher installations will boost that share.

with the governor’s next goal being a reduction to 80 percent below 1990 levels by 2050. In addition, Senate Bill 375 aims to cut carbon-dioxide emissions by reducing driving. The bill, which garnered support from diverse factions such as builders, environmentalists, local governments and affordable-housing advocates, requires cities and counties to improve public transportation and combat urban sprawl. Under the law, regional planning authorities must develop workable strategies for meeting emissionreduction targets to be eligible for transportation funding. Energy-conservation programs for businesses and homeowners represent another key component of the state’s overall strategy. For example, Southern California Gas Co. offers free, on-site energy audits for commercial customers. “Since late 2005, we have provided assessments for more than 100 of our largest customers – industrial end users that spend more than $500,000 per year for natural gas,” says Raul Gordillo, public relations advisor with the company. “Those who implement our recommendations save about 8 percent to 12 percent of their total energy use. Some save 30 percent to 50 percent.”

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Scorecard RENEWABLE ENERGY USE

14.5 percent of state’s electricity drawn from hydro projects

4.6 percent from geothermal

2.3 percent from wind

2.1 percent from biomass Source: California Energy Commission (2007)

A recent state law enables homeowners to get low-interest loans from cities and counties to install solar panels, dual-pane windows, energy-efficient air conditioners or other environmentally friendly products. – Carol Cowan

In 2008, Golden State residents, business owners and local governments shelled out cash for a record number of solar photovoltaic installations that will generate 158 megawatts of electricity. With a boost from state and federal incentives, that figure was more than double the 78 megawatts installed in 2007. California now boasts nearly 70 percent of solar installations nationwide, with a cumulative total of 441 megawatts of distributed solar PV systems. One of the largest installations in Northern California is at the Mariani Packing Co. in Vacaville, which processes about 100 million pounds of dried fruit each year. The company recently put up 5,800 solar panels on seven acres adjacent to the plant. The panels generate one megawatt of electricity – about 25 percent of the company’s needs, says Mark Mariani, chairman and CEO. “With the state and federal tax credits and Pacific Gas and Electric Co. rebates, we’ll be able to recoup our costs in six or seven years,” Mariani says. He adds, “It makes good business sense because it will hedge our future utility costs. And, being in the agriculture business, we’ve been stewards of the land for more than 100 years; we want to be good stewards of the air as well.” – Carol Cowan

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P H OTO C O U R T E S Y O F S T E P H A N I E D I A N I

research & development

UCLA is one of the 10 UC campuses where research has given rise to scores of companies, including 55 in the last fiscal year.

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From Lab to

Marketplace University of California research spawns hundreds of private sector companies

magine a washing machine that notifies you when it’s time to wash clothes, based on the time of day when electricity rates are lowest. The idea is to reduce electricity consumption at times of peak demand, thus improving powerproduction efficiency and ultimately curbing the number of plants needed to handle the load. Researchers at startup company SynapSense Corp. in Folsom aren’t imagining the device that will make this happen. They’re designing it. Launched in 2006, SynapSense specializes in wireless instrumentation to collect and transmit data. Packaged as devices the size of a matchbox, the SynapSense technology already is in use by Yahoo! and the Lawrence Berkeley National Laboratory to improve the energy efficiency of their data centers. SynapSense is just one example of a privatesector enterprise born from research at one of the University of California’s 10 campuses. In fact, more than 400 startup companies have been founded based on UC-developed technologies, 55 of them during the fiscal year that ended June 30, 2008, according to Patricia Cotton, director of business development and intellectual property management for the UC system. Licensing income for the system from agreements with industry totaled an impressive $128.4 million for fiscal 2008. GREEN ENERGY AND GENENTECH “One of the goals of our tech-transfer program is to create public benefit from UC research,”

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Cotton says, adding that more than 30 startup companies are in renewable or sustainable energy. From UC Riverside, there’s Viresco Energy LLC, converting feedstocks to a fuel gas. From UCLA, there’s Solarmer Energy Inc., producing transparent, f lexible plastic solar cells. From UC Berkeley, there’s Aurora BioFuels Inc., using microalgae to generate bio-oil. And from UC Davis, there’s SynapSense. “We consider ourselves almost like an extension of UC Davis,” says Raju Pandey, SynapSense co-founder and an assistant professor on leave from the UC Davis Department of Computer Science. Pandey’s university research forms the technological core of SynapSense’s product-development initiatives. “SynapSense is more about how to take this technology and make it more robust and more scalable and then how to apply it,” Pandey says. The data-center application is the first of many, he adds. SynapSense employs 27 people who work mostly on system design – both hardware and software – and implementation. Businesses spawned by UC research cover an array of sectors, from telecommunications and automation to medical devices and biotechnology. One premier example is Genentech Inc., founded in 1976 after UC San Francisco biochemist Herbert Boyer and geneticist Stanley Cohen pioneered the scientific field of recombinant DNA technology. Considered the first biotech company, Genentech uses human genetic information to make new medicines. – Sharon H. Fitzgerald

More Insight INNOVATION In 2004, California voters approved Proposition 71, which set the wheels in motion for the state’s dominance in stem-cell research. The ballot initiative authorized the state to sell $3 billion in bonds over 10 years to fund research and to establish the CALIFORNIA INSTITUTE FOR REGENERATIVE MEDICINE. Today, CIRM is the world’s largest source of funding for human embryonic stem-cell research. It has funded $693 million in research, and donors and institutions have provided about $900 million in matching funds.

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agribusiness

Message

in a

Bottle JEFF ADKINS

BRIAN MCCORD

Vineyards and wineries continue to thrive

ere’s a toast to the California wine industry, which is growing strong even in these tough economic times. The industry continues to provide a $52 billion economic impact for California each year, with nearly 2,700 wineries in operation. Wine grapes valued at almost $2 billion are produced annually in California vineyards covering a total 527,000 acres.

“If we were a stand-alone country, we would rank fourth in the world for wine production behind France, Italy and Spain,” says Karen Ross, president of the California Association of Winegrape Growers. “More than 90 percent of the wine in the entire United States comes from California, with wineries and vineyards stretching from San Diego to the Oregon border.” Ross says California wineries are still

reporting robust sales, although consumers have been changing their buying habits to adjust to the times. “In the past few years, we saw significant growth in the sale of higher-priced California wines, with many bottles selling for more than $20 apiece,” she says. “But ever since late 2008 and now in the current economy, we are seeing a shift by consumers looking for value. Many bottles are selling for under $7,

The Grapecrusher by sculptor Gino Miles sits along Highway 29 and welcomes visitors to the fabled Napa Valley wine district. Middle: Some results from the state’s 527,000 acres of wine grapes Right: Antelope Valley Winery is in Los Angeles County.

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CALIFORNIA

INNOVATION

Get the Daily Dirt

BRIAN MCCORD

COMPANY IS AT FOREFRONT OF ORGANIC GROWING

while we are also seeing significant growth in the $7-to-$15 price range. So the industry is growing by volume but not as much in value right now, compared to what we experienced over the past four or five years.” Ross adds that California should remain a strong wine-producing region simply because of Mother Nature. “Our Mediterranean climate of moderate temperatures, warm days, cool nights and Pacific Coast breezes makes California ideal for grape growing,” she says. “Plus the innovations of our winemakers help us compete on a worldwide basis.” ADVANTAGES OF HAND-PICKED GRAPES Charlie Olken, publisher of a monthly subscription-only magazine, Connoisseur’s Guide to California Wine, says the state also is fortunate to have a large number of agricultural hand laborers available. “We can hand-pick our grapes, not like Australia and other places that grow grapes but don’t have such a labor force,” Olken says. “Many of those countries pick grapes by machine, which means that all

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of the grapes get picked. That includes the less desirable ones that might have mold, are shriveled and have other defects. That doesn’t happen with California hand-picked grapes.” The Napa Valley, Sonoma and the Central Coast continue to be the superstars of California wine production, but Olken says several other parts of the state are strong producing regions. On the southern extremity of the Central Coast, “Santa Barbara is excellent, and its close proximity to Los Angeles makes it where Los Angelinos go to taste wine and enjoy a weekend in wine country,” he says. “Other top areas include the counties of Alameda, Lake, Mendocino, Monterey, San Luis Obispo and Santa Clara.” Olken also points out that California wineries don’t necessarily need to grow grapes to succeed. “For example, Rosenblum Cellars in Alameda City ships in all of its grapes to a headquarters building, where it then makes 200,000 cases of wine each year,” he says. “There are a variety of ways to make wines these days in California – a variety of successful ways.” – Kevin Litwin

Peaceful Valley Farm & Garden Supply has been around since 1976, which is basically when the organic growing movement began. The Grass Valley-based company has gone from a small operation to one that sells more than 4,000 organic products and today has thousands of customers. It also has 40 full-time employees. A third of Peaceful Valley’s annual revenue is generated from walkup customers to its store, while another third comes via Internet sales from its www.groworganic.com Web site. The other third is from catalog sales. “Our catalog has become an institution in itself and has actually become required reading at some colleges that offer organic agriculture courses,” says Luke Giniella, marketing director. “Organic farming and gardening has certainly grown in interest, especially over the past 10 years, and we have been along for the entire ride.” Organic agriculture involves growing food and plants while strictly limiting the use of synthetic fertilizers and synthetic pesticides. This sustains the health of soils, ecosystems and people. “For example, most people want to use fertilizers in their personal gardens, so we recommend natural products such as liquid kelp or liquid fish,” Giniella says. – Kevin Litwin

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manufacturing

Having It Made in

California Capital investment and good wages in manufacturing strengthen the economy

Scorecard CALIFORNIA MANUFACTURING

1.43 million workers

30,000 companies

$250 billion in annual revenue

As the nation’s leader in manufacturing, California produces products as varied as pipe components at the Tri Tool Inc. plant in Rancho Cordova (above) to Budweiser and Busch beers at Anheuser-Busch Cos. Inc.’s brewery in Fairfield (facing page).

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INNOVATION

A Capital Idea P H OTO S B Y J E F F A D K I N S

LETTER OF CREDIT HELPS GUARANTEE INDUSTRIAL BONDS

he long track record of success hasn’t dimmed for the state’s 30,000 manufacturing operations, which continue to provide a solid base of capital investment and jobs throughout the state. California manufacturers employ an estimated 1.43 million workers and produce $250 billion in annual revenue – making it the top manufacturing state in the nation. “Manufacturing’s salary, benefits and job multipliers are very important to California’s working families,” says Gino DiCaro, vice president of communications for the California Manufacturers and Technology Association. “Manufacturing is the gateway to the middle class for our workers.” Computer and electronic products, petroleum and coal, chemicals, food products, and transportation equipment make up the top five manufacturing categories in the state. The average annual salary for manufacturing employees exceeds $66,000 – a figure $10,000 higher than the average of all jobs in the state, according to the National Association of Manufacturers. INCENTIVES PAY DIVIDENDS Although the sector faces challenges, such as increased environmental regulation and suppliers’ price hikes, California’s leaders are working to ensure that businesses continue to thrive.

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The state has instituted a system of enterprise zones offering incentives for companies making certain types of business investments, which helps draw new companies to the area, says Richard Chapman, president and chief executive officer of Kern Economic Development Corp. in Bakersfield. “Some companies can get a $35,000 credit per employee in tax offsets,” he says. Another positive factor is the state’s network of deep-water ports, providing access to Asia and other overseas markets, Chapman says, adding, “Our market strengths are location, logistics and labor.” While traditional manufacturing continues under such brand names as Alcoa, Del Monte Foods and Tyco Electronics, the use of innovative technologies and new product development move the industry forward. One such company is Tesla Motors, an electric vehicle plant in San Carlos. Tesla benefits from another state program that waives sales tax on new manufacturing investment for zeroemission vehicles. The company’s production facility constitutes a $300 million investment and creates about 300 jobs. While impressive, those figures actually underestimate the plant’s impact, DiCaro says. “For every one job created, 2.5 jobs are created in the economy as a result of the vast supplier networks that are needed in manufacturing.” – Renee Elder

A business needs to grow to thrive, and California is finding ways to nurture growth even when financial times are tough. In one case, the California Enterprise Development Authority turned a new federal provision to its economic advantage by helping Pocino Foods in the city of Industry in Los Angeles County, says Daniel J. Bronfman, president of Growth Capital Associates Inc. CEDA is a government agency – local cities and counties created it – “and its role is very specific,” Bronfman says. “It issues bonds with low interest rates to finance various types of projects.” The federal law passed in July 2008 was intended to support the struggling housing market by permitting Federal Home Loan Banks to back tax-exempt bonds with letters of credit. But its provisions also benefit agencies like CEDA that issue industrial development bonds. Shortly after the law was passed, CEDA became one of the first issuers to use a support letter of credit from the Federal Home Loan Bank Board to complete a financing. This “credit enhancement” helps guarantee the bonds, making them more saleable. Pocino Foods, which produces meat and poultry products, will use the $9 million in bond financing to cover $5.5 million of debt and spend $3.5 million for building renovation and equipment purchases. – Renee Elder

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Startup

Successes Entrepreneurs benefit from California’s pro-business spirit and policies

f you’re thinking about starting a business, there may be no better place than California. A 2007 ranking of startup activities nationally found the Golden State was No. 1 or No. 2 in a dozen industries. These successes come as no surprise to Tracie Stafford, who sits on the

California Small Business Board and owns a Sacramento-based event marketing and planning company, Exceptional Events Inc. “Before starting Exceptional Events, I was in management for a high-tech company,” Stafford says. She chose to build the business in California – as opposed to, say, Nevada – because “there are so many programs here to support entrepreneurs, including the governor’s Small Business Board, where folks come together to make sure small-business owners have a voice.” Stafford’s devotion to California was further strengthened by her travels elsewhere. “I found California is one of the most innovative states. There’s definitely a spirit of entrepreneurship here that I didn’t see in other states.” Stafford, who in 2007 became the first African-American to win the Mrs. California pageant, says she’s also been impressed with the state’s efforts to reach out to minority-owned businesses. “There are so many small minority businesses aided by programs the state offers to ensure there’s equality in the distribution of government contracts.” GOVERNOR SETS TONE The administration of Gov. Arnold Schwarzenegger strongly supports entrepreneurship and small business, as evidenced by the first Governor’s

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Conference on Small Business & Entrepreneurship held in Los Angeles in November 2008. Schwarzenegger invited entrepreneurs and small business leaders to discuss ideas on improving the partnership between the private sector and state government to stimulate the economy. “The governor understands that in times of economic change like we’re going through now, you have to have a process to listen to what constituents need, and that was the whole purpose of the conference,” says Marty Keller, director of the Governor’s Office of the Small Business Advocate. “Clearly, the governor has a very strong commitment to ensuring entrepreneurs have the opportunity to be successful and are not stymied by state policies.” One example of a successful small business is Merlot Marketing Inc., a full-service marketing agency started in Sacramento by entrepreneur Debi Hammond in 2001. It now has a fulltime staff of 17 and recently added a San Francisco office. In fact, about 98 percent of California enterprises are small businesses; they number 3.6 million companies and employ about 52 percent of the workforce. And that workforce is highly skilled, “thanks to our community college network,” Keller says. – Jessica Mozo

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READ MORE ONLINE Statewide competition will reward innovative entrepreneurs.

P H OTO S B Y J E F F A D K I N S

entrepreneurship/small business

Inspirational words decorate a colorful meeting space at Merlot Marketing Inc., which was founded in Sacramento in 2001. Left: Also in 2001, Tracie Stafford started Exceptional Events Inc., and she now serves on the California Small Business Board.

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entrepreneurship/small business

INNOVATION

A Refuge in Turbulent Times SMALL BUSINESS DEVELOPMENT CENTERS OFFER VITAL HELP California leaders know good businesses often come in small packages. That’s why 30 Small Business Development Centers dot the state to help owners with everything from securing financing to expanding operations. “SBDCs are really valuable,” says

Mike Roessler, director of Small Business Programs for California Community Colleges’ Economic and Workforce Development Program. “A person can spend four hours or 14 hours with a business consultant at an SBDC, and it’s completely free. Most of

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the centers have expertise in many different areas.” Twenty-three of California’s centers are hosted by community colleges and receive state dollars to supplement funding from the federal Small Business Administration. “All our SBDCs are really focused on the retention of jobs in this economy, because there isn’t a whole lot of new job creation right now,” Roessler says. “All of them offer training events focused on doing business in tough economic times.” Despite the fact SBDC services are helpful and free, Roessler says they’re not used as much as they could be. “We want to encourage small business owners to visit an SBDC before they get into trouble,” he says. “They’re a support system where business owners can seek assistance. “The centers are focusing on reaching out as much as possible and figuring out how we can work together with state agencies to assist small businesses as much as we can.” Nineteen of the centers are even reaching out to young people and inspiring them to consider the possibility of starting a company. “Our Youth Entrepreneur Program focuses on our SBDCs getting in front of 14-to-27-year-olds to talk about entrepreneurship as a potential career path,” Roessler says. – Jessica Mozo

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RESOURCE GUIDE BUSINESS CLIMATE This section of the magazine gives an overview of the economy in each of nine regions: Northern California, Northern Sacramento Valley, Greater Sacramento, Bay Area, San Joaquin Valley, Central Coast, Central Sierra, Southern California and Southern Border.

NORTHERN CALIFORNIA

state, with 1.5 percent of Californians residing here (2006). The region is the second smallest based on employment, with 1.1 percent of Californiaâ&#x20AC;&#x2122;s jobs (2006).

POPULATION 532,494

PER CAPITA INCOME (2006) $30,466

population, with 1.4 percent of the population, and is the third smallest based on 2006 employment, with 1.2 percent of its jobs.

GREATER SACRAMENTO

NORTHERN SACRAMENTO VALLEY

JOB GROWTH (2001-06) 1.3% The Northern California region is composed of 11 counties â&#x20AC;&#x201C; Del Norte, Humboldt, Lake, Lassen, Mendocino, Modoc, Nevada, Plumas, Sierra, Siskiyou and Trinity â&#x20AC;&#x201C; along the north coast, Oregon border and northeastern Sierra Nevada. In terms of population, it is the third-smallest region in the

MORE RE EO ONLINE californiabusinessimages.com

More facts, stats and community information, including links to business resources.

POPULATION 2,255,258

POPULATION

PER CAPITA INCOME (2006)

508,733

$36,307

PER CAPITA INCOME (2006)

JOB GROWTH (2001-06)

$28,074

9.4%

JOB GROWTH (2001-06) 6.4% The Northern Sacramento Valley region encompasses Butte, Colusa, Glenn, Shasta and Tehama counties. It is the stateâ&#x20AC;&#x2122;s second-smallest region based on 2006

visit our

advertisers City of Barstow www.barstowca.org City of Montclair www.cityofmontclair.org City of Pinole www.ci.pinole.ca.us City of Tulare www.ci.tulare.ca.us Elk Grove Economic Development Group www.elkgroveedc.org Hawthorn Suites www.hawthorn.com Merced County Department of Economic Development www.co.merced.ca.us

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Pacific Palms Resort www.pacificpalmsresort.com Palm Dale www.cityofpalmdale.org Rancho Cucamonga Redevelopment Agency www.rcrda.us Regional Hispanic Chamber of Commerce www.regionalhispaniccc.org Riverside www.riversideca.gov San Gabriel Valley Economic Partnership www.visitsangabrielvalley.com Southern California Edison www.sce.com Town of Apple Valley www.applevalley.org

The six counties of El Dorado, Placer, Sacramento, Sutter, Yolo and Yuba make up the Greater Sacramento region, which is the stateâ&#x20AC;&#x2122;s fifth most populous. The region is home to 6.1 percent of the stateâ&#x20AC;&#x2122;s population and 6.2 percent of its jobs (2006).

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resource guide BAY AREA

CENTRAL COAST

POPULATION 17,755,322

PER CAPITA INCOME (2006) $37,306

JOB GROWTH (2001-06) 6.5%

POPULATION

5,746,018

1,128,937

PER CAPITA INCOME

PER CAPITA INCOME (2006)

$54,234

$39,697

JOB GROWTH (2001-06)

-5.8%

3.6%

The Bay Area region includes 11 counties: Alameda, Contra Costa, Marin, Napa, San Benito, San Francisco, San Mateo, Santa Clara, Santa Cruz, Solano and Sonoma. This is the California’s second-most-populous region, with 19.8 percent of the state’s population and 22 percent of its jobs (2006).

The counties of Monterey, San Luis Obispo and Santa Barbara comprise the Central Coast region. It is California’s sixthlargest region, with 2.9 percent of its population and 3 percent of its jobs (2006).

CENTRAL SIERRA

Southern California is the state’s largest region, with 48.7 percent of its population and 46.9 percent of its jobs (2006). Los Angeles, Orange, Riverside, San Bernardino and Ventura counties make up the region.

SOUTHERN BORDER

POPULATION 3,136,726

PER CAPITA INCOME (2006)

SAN JOAQUIN VALLEY

$41,784

JOB GROWTH (2001-06) 7.7%

POPULATION 190,759

PER CAPITA INCOME (2006) $31,226

JOB GROWTH (2001-06) POPULATION

5.9%

3,834,766

The Central Sierra, California’s least populous region, is composed of seven counties: Alpine, Amador, Calaveras, Inyo, Mariposa, Mono and Tuolumne.

PER CAPITA INCOME

JOB GROWTH (2001-06) 9.9% The San Joaquin Valley region covers eight counties: Fresno, Kern, Kings, Madera, Merced, San Joaquin, Stanislaus and Tulare. It is the state’s third-largest region based on population and fourth largest based on employment, with 10.4 percent of the population and 8.6 percent of the jobs (2006).

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SOUTHERN CALIFORNIA

Imperial and San Diego counties form the Southern Border region. It is the state’s fourthlargest region based on 2006 population and third largest based on 2006 employment, with 8.6 percent of the population and 8.8 percent of the jobs.

FOR MORE INFORMATION California Association for Local Economic Development 550 Bercut Drive, Suite G Sacramento, CA 95811 Phone: (916) 448-8252 Fax: (916) 448-3811 www.caled.org

SOURCES: California Economic Strategy Panel, California Association for Local Economic Development The information provided was the most current available.

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Ad Index 9 C IT Y O F BA R S TOW 4 6 C IT Y O F M O N TC L A I R

2 PA L M DA L E 4 R A N C H O C U C A M O N GA R E D E V E LO P M E N T AG E N C Y

3 4 C IT Y O F P I N O L E 3 8 C IT Y O F T U L A R E 6 E L K G ROV E ECO N O M I C D E V E LO P M E N T G RO U P 1 4 H AW T H O R N S U IT E S C 4 M E RC E D CO U N T Y D E PA RT M E N T O F ECO N O M I C D E V E LO P M E N T 1 0 PAC I FI C PA L M S R E S O RT

47 R EG I O N A L H I S PA N I C C H A M B E R O F CO M M E RC E C3 RIVERSIDE 3 4 SA N GA B R I E L VA LLE Y ECO N O M I C PA RT N E R S H I P 1 SOUTHERN C A LI FO R N I A E D I S O N C 2 TOW N O F A P P L E VA L L E Y