Contents
W.A.C.E. Award Winning Publication of the Turlock Chamber of Commerce
TURLOCK CHAMBER OF COMMERCE Business News 115 S. Golden State Blvd. Turlock, CA 95380 209-632-2221 Fax 209-632-5289 Hours: Mon-Fri 10am – 4pm Sharon Silva President/CEO sharonsilva@turlockchamber.com Tasha Van Santen Director Communications/Development Ext. 104 tasha@turlockchamber.com
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Solar Energy - The Forecasts Is Looking Rather Sunny
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Alliance - 2013 Business Survey
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CEO Roundtable - Down To Two Core Services
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Best Of Turlock
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Chamber Breakfast Packed the Carngie Arts Center
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It’s A New World for the City of Turlock’s Finance Office
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The State Water Resources Control Board (SWRCB)
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Q1 2013 - City Council - A Running Start at Planning for the Future
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Sequester: So When is a Deal, Not a Deal?
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Tenent Buys Emanuel
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World Series Trophy Hits Turlock
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New Members
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Chamber Ribbon Cuttings and Mixers
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Turlock Rea Estate - Limited Inventory Translates to Higher Prices
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What Can We Look Forward To?
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12 Steps To a Great Email
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Turlock Convention and Visitors Bureau Promotes Community Events
Sharon Berry Administrative Assistant Ext. 100 sharonberry@turlockchamber.com Kassi Fortado Membership/CVB Assistant Ext. 101 kassi@turlockchamber.com
TURLOCK CONVENTION AND VISITORS BUREAU Desa Cammack Director 115 S. Golden State Blvd. 209-632-2221 Ext. 106 desa@visitturlock.com PAGE 4
BUSINESS NEWS « SPRING 2013
Welcome
Chairman
A Long Year . . . . . But a Good Year
Exciting and Busy Year Ahead
From the President/CEO
T
he Turlock Chamber of Commerce will continue to play a positive role in making Turlock a business friendly community in 2013.
Specifically, the Chamber will continue its strong legislative advocacy on local, state and federal levels. We work closely and partner with our state local and federal representatives on behalf of Turlock and its business community. The Chamber will champion legislators’ efforts to help our area and call attention to their hard work. We will continue to assist local businesses that may have issues with governmental agencies. The Chamber of Commerce will maintain a dynamic relationship with regional and valley groups and associations because there is greater strength in numbers and the Valley has more that binds us together than divides us. We will keep reaching out to new businesses in Turlock to offer our menu of services and aggressively assist existing Turlock businesses in networking and expanding their contacts. The Chamber has several committees engaged in a diverse range of issues including education, economic development, business resources, governmental affairs and special activities, as well as other areas of interest. As the voice of business in Turlock, the Chamber’s goal is to advocate for our members’ best interests and for those of our community. The Turlock Chamber offers many services to our members. Call and see how we can help! • • • • • • •
Networking Referrals Publicity, Exposure and Marketing Opportunities Discounts & Services Education / Training Business Advocacy Community Involvement
Sharon Silva, President/CEOand the City of Turlock. The Chamber ended the year with a 10% increase in membership. The year began with the privilege of receiving three outstanding awards: one from Western Association of Chamber Executives; one for the Executive of the Year; and the First Place Award for our Business News publication, as well as receiving the CalChambers Award for the fourth year in BUSINESS NEWS « President’s SPRING 2013
Of The Board - Mike Romeo
2
013 has been and will continue to be a busy and exciting year for the Turlock Chamber of Commerce. The new board of directors is working diligently ensuring the chamber meets its commitment to be a value added resource to member businesses and the local community.
In January the Turlock Chamber hosted their annual “Best of Turlock” event which was well attended and where many great people were honored and recognized. In February the Sixth Annual State of the Chamber Membership Breakfast offered important updates for our local and regional community. Mayor John Lazar presented information on Turlock and County Supervisor Vito Chiesa gave updates on our county. CSU Stanislaus updates were given by Dr. Joseph Sheley and Turlock Unified School District updates by Dr. Sonny Da Marto. Everyone who attended agreed on the value of the shared information. As you are aware, we are experiencing major changes in the healthcare delivery system in the Central Valley. Tenet Healthcare Corporation has entered into an agreement to acquire Emanuel Medical Center. Upon completion of the deal, Emanuel Medical Center will become a part of Tenet Healthcare which includes Doctors Medical Center of Modesto and Doctors Hospital of Manteca. The goal will be to provide patient-centered care in the region. These hospitals will combine efforts to work towards improving the efficiency and coordination of healthcare delivery in communities where they provide their services. Locally developed wellness programs are another important employee-centered care change in the Central Valley. The Turlock Chamber is actively involved with local groups in the development of a cost effective employee wellness program. Such programs have been shown to lower employer healthcare costs and improve employee productivity and overall wellness. If we as the Chamber are as successful as we hope to be, there will be as much as a 30% savings per year for each family who commit to wellness and disease prevention. Being a family physician, I am excited about this initiative and the benefits it can offer to our members. More information will become available on this unique opportunity as the year progresses. The Turlock Chamber continues to actively promote its business members and assist with the development of a business friendly community. As the chairman of the board I look forward to working with the individual businesses and to a very productive and exciting 2013. Mike Romeo, MD Romeo Medical Clinic
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2013 Chamber Board of Directors
Mike Romeo (Chair) Romeo Medical Clinic
Andrew Wigglesworth (Chair Elect) MedicAlert Foundation
Paul Porter (Past Chair) Steve Gemperle (Treasurer) Winton-Ireland, Gemperle Enterprises Strom & Green
Mike Allen Allen Mortuary
Dianna Bettencourt Oak Valley Community Bank
Fred Brenda Valley Tool & Manufacturing
James Brenda JKB Energy
Dean Doerksen Central Ag Products
Julio Hallack DBA Concrete by Hallack
Mike Lynch Mike Lynch Consulting
Linda Nowak CSU Stanislaus
Steven Padilla Sunopta
Mike Rose B & B Manufacturing
Jeff Segars Foster Farms
2013 TURLOCK CHAMBER OF COMMERCE STAFF
Sharon Silva CEO/President IOM, Institute for Organization Management, University of Arizona Bachelor Arts Organizational Communication
Tasha Van Santen Director Communications/ Development Bachelor Science Business CSU Stanislaus
Chamber Champions Allen Mortuary • B&B Fluid Power Emanuel Medical Center • Gemperle Enterprises JKB Energy / Living • Kirkes Electric Lancaster Painting MedicAlert Foundation Romeo Medical Clinic Turlock Journal Turlock Scavenger/Turlock Recycling Winton-Ireland, Strom & Green Insurance Agency PAGE 6
Sharon Berry Administrative Assistant Bachelor Science Education Pacific University
Ashour Badal CSU Stanislaus
Chris Kiriakou Cornerstone Consulting
Bill Bassitt (Ex-officio Member) Alliance
Kassi Fortado Membership / CVB Assistant Merced College
Kyle Kirkes Kirkes Electric
Marty Jakosa (Ex-officio Member) Foster Farms
Desa Cammack Director Turlock Convention and Visitors Bureau Western Association of Chamber Executives Academy Graduate
Upcoming Events: Golf Tournament April 5th Mixer MedicAlert Foundation April 30th
BUSINESS NEWS « SPRING 2013
J SOLAR ENERGY The forecast is looking rather sunny
ames Brenda, President of JKB Development located in Turlock, CA has successfully navigated the perils and pitfalls of the business environment for 31 years. In 2007, James was building homes that met high-energy efficiency standards by incorporating solar energy to dramatically reduce homeowner’s utility costs. Recognizing the housing market was due for a correction, Brenda saw the potential with an unfulfilled need of farmers and businesses that were eager to reduce their rising energy costs by generating their own energy with solar power. It was then that JKB Energy was born. In 2008, with market research and product development completed, JKB Energy began selling turnkey solar projects. Because agriculture was less affected by the recession and was still doing well, JKB Energy focused their efforts on cost-saving solar solutions for this market. The declining cost of solar panels fueled JKB’s business. The company has experienced steady growth, with sales volume doubling approximately every thirteen months. Brenda stated, “Installation costs today are down 75% from just four years ago. California businesses have never been more interested in solar.” JKB Energy feels that being involved in the industries it serves, such as proudly sponsoring the Almond Board of California, Almond Hullers & Processors Association, and California Citrus Mutual, is an important foundation for the company. In 2009, JKB Energy partnered with Valley Tool & Manufacturing in Hughson, CA to manufacture panel mounting and racking hardware that reduces lead times and improves quality, while lowering the cost. Brenda explains, “This local partnership provides us a huge advantage. We can introduce new innovations to the marketplace in a matter of weeks versus months. It’s a good feeling knowing we are helping create local manufacturing jobs.” JKB Energy has grown from a handful of people in one office to four locations, and continues to expand. In 2012, seeing renewed demand for new homes in the area, JKB started building single family residences at its Sterling Ranch development in Denair, CA. New projects are already in the works for 2013, and Brenda is optimistic for the housing industry’s future. He rebranded JKB Homes as JKB Living to better convey a twenty-first century vision of sustainable and modern living, which families desire today. When asked about the future, Brenda quips, “The past few years have been challenging at times, but also a period of opportunity. Looking back, it’s rewarding to see all we have achieved during that time. There have been a few cloudy days, but the forecast is looking rather sunny.”
BUSINESS NEWS « SPRING 2013
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2013
BUSINESS SURVEY SAYS . . .
E
arly each year, the Alliance conducts a countywide survey of the business community. One thing stands out since starting this process in 2005 – every year brings new challenges that owners and managers must surmount. This time around, the issue that rose to the fore was insurance, particularly health insurance. Coverage mandates for firms with 50 or more employees loom larger as 2014 approaches. Nearly two-thirds of survey respondents expressed uncertainty about having enough information to support their decision-making process relating to health insurance. Among other topics, the survey showed that young consumers remain a challenging market, with over half reporting weak demand from those aged 24 and under. On the other hand, about four in ten businesses experienced strong purchasing by the 50 to 64 year old cohort.
To view more findings from the survey, visit http://www.stanalliance.com/dbm/demoind/_2013-Stanislaus-Economic-Outlook-Survey-Results.pdf Thanks are in order to the Turlock Chamber for helping promote the business survey, and to its members for participating.
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BUSINESS NEWS ÂŤ SPRING 2013
CEO Roundtable
Down To Two Core Services
T
he Stanislaus County Sheriff's Department has been cut to the bone but remains dedicated to serving the community, Sheriff Adam Christianson told Turlock Chamber of Commerce members at the February Chamber CEO Roundtable lunch. “When cutting, we got down to two core services: answering emergency calls, and keeping bad guys locked up,” Christianson said. The poor economy wiped out 25 percent of the department's budget since 2008. The department is now hiring for first time in four years, but only a couple of deputies – not the 80 Christianson said he needs to answer 80,000 calls for service each year. At times Christianson has just 7 deputies to patrol the entire county, he said. Other monumental challenges like realignment only make the department's job more difficult. That program released hundreds of less-violent state prisoners into county care last year, increasing crowding at local facilities. Many of the leastserious offenders end up back on the streets after minimal sentences now, where a life of crime often awaits. Some relief is around the corner, as the county will soon open new jail facilities with nearly 600 beds, adding day reporting and mental health care facilities. A new coroner's facility will soon open too, in a repurposed Downtown Modesto county building. But it's going to take the entire community working together to solve the region's crime problem, Christianson said, with citizens policing themselves. Neighborhood watches can change the character of a community, he said, and make more impact than deputies ever could. “You will never be able to arrest your way out of some of the public safety challenges we face,” Christianson said. The bimonthly CEO Roundtable lunches bring together notable speakers with local business and government leaders for a discussion about the most important issues facing Turlock and the region.
BUSINESS NEWS « SPRING 2013
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Best of
Turlock
T
urlock is a city filled with kind-hearted people, who do whatever it takes to make the city a better place.
But the work is usually thankless, as those people who make Turlock great often work unnoticed. On one night a year, the city's finest are recognized at the annual Best of Turlock awards, hosted by the Turlock Chamber of Commerce. Awardees are brought to the ceremony under false pretenses, with no clue they are about to be honored until their names are called. Winners are selected by a panel of past winners who know what it means to truly be the Best of Turlock. The 2013 event was held on Jan. 25 at the Assyrian American Civic Club, and was sponsored by California State University, Stanislaus and the Emanuel Medical Center.
BEST OF TURLOCK WINNERS, 2013 AMBASSADOR OF THE YEAR Joy Biddle Biddle was not present to receive her award. COMMUNITY VOLUNTEER OF THE YEAR Jerry Powell Powell was honored mainly for his decade of work with the Salvation Army, where he sits on the advisory board and helped build the organization's facility. SPECIAL RECOGNITION Janice Virgo Virgo spearheaded the creation of the Turlock Community Theater, at a time when the former Turlock High School auditorium may have been lost. SMALL BUSINESS OF THE YEAR Woods Furniture The family owned and operated furniture has been in operation since 1950, adapting to the times through three generations of ownership. CORPORATION OF THE YEAR The Tower Health and Wellness Center, Owned by the Romeo family The visionary development combines medical services with restaurants, event hosting, florists, a salon, and a pharmacy. YOUTH INVOLVEMENT OF THE YEAR Kathy Sanders A poultry and dairy leader for Chatom 4H, Sanders has helped countless children over the years. EDUCATOR OF THE YEAR Glenn Blackley Blackley has taught students ranging from gifted to severely at-risk, and was instrumental in developing the Turlock Unified School District charter school, the eCademy.
HUMANITARIAN OF THE YEAR Sylvia Cox Cox founded Turlock's Off-Center Thrift and Gift, an all-volunteer thrift shop which has donated more than $400,000 to the community since opening. AGRICULTURAL LEADER OF THE YEAR Ron Macedo Macedo has served on the Stanislaus County Farm Bureau board, the California Farm Bureau board, and now serves on the Turlock Irrigation District Board of Directors while growing almonds, corn, and pumpkins. BUSINESS LEADER OF THE YEAR Dr. Antone Varani and Anokeen Varani, owners of Turlock Dental Spa The Varanis' dual dental business and day spa offers relaxing massage chairs, hand wax, and aromatherapy during dental work, as well as an array of spa treatments. YOUTH CITIZENS OF THE YEAR Pitman High – Kelsee Derr Derr is is a state-level track athlete, a standout student, student body president, and recently spent 13 days tiling bathrooms at an orphanage in Mexico. Turlock High – Katelyn McGinnis McGinnis is a member of the Turlock High Speech and Debate Team, the Key Club, and the Drama Club, has raised $7,000 for chemotherapy patients, and was recently chosen to be part of the prestigious Gallo Leadership program. CITIZEN OF THE YEAR Shirley Pok Pok has led Emanual Medical Center's fundraising program since 2000, raising more than $22 million, while serving on numerous community boards and helping to organize the Turlock Mayor's Prayer Breakfast.
EDUCATOR OF THE YEAR – HIGHER EDUCATION Julie Fox Fox heads the CSU Stanislaus Office of Service Learning, which helps students earn real-world experience while giving back more than 48,000 hours of service to the community each year.
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BUSINESS NEWS « SPRING 2013
Chamber Breakfast . . . offers invaluable inside look at the region
B
usiness and community leaders packed the Carnegie Arts Center on Feb. 20, waiting with rapt attention to hear about the state of the city, county, university, school district and, of course, the Turlock Chamber of Commerce. The Turlock Chamber of Commerce's Annual Membership Breakfast is a Turlock tradition, offering an invaluable, inside look at the region. “Long before Modesto started doing theirs, we were doing it,” said Sharon Silva, Turlock Chamber CEO. The annual breakfast, catered by Latif's this year, kicked off with an update on the Chamber's activities over the past year. Members met the board and ambassadors, heard about events, and learned about initiatives like Leadership Turlock, the Business Leadership Summit, and the Chamber's government relations efforts. But major speakers from the community were also invited, highlighted by Turlock Mayor John Lazar. Lazar's annual speech at the breakfast is generally referred to as the State of the City address. Last year, Lazar announced new businesses pegged for Turlock – Old Navy and Ulta. This year, the mayor turned his speech toward Turlock's shoddy roads, urging passage of a new transportation tax. “For too long we have waited for some county, state or federal initiative to improve our transportation systems,” Lazar said “... I would like to explore the idea of placing some type of special road maintenance measure on the Turlock ballot for residents to give us the tools to fix our streets.”
“
... I would like to explore the idea of placing some type of special road maintenance measure on the Turlock ballot for residents to give us the tools to fix our streets.
”
Stanislaus County Supervisor Vito Chiesa also provided an update on the county, offering his vision to reduce crime, create jobs, and improve education. And this year, new Interim President of California State University, Stanislaus Joseph Sheley shared his vision for the university for the first time, mostly discussing the potentially hazardous effects of state budget cuts. Turlock Unified School District Superintendent Sonny Da Marto closed the event, speaking about the challenges facing and the successes of the district. BUSINESS NEWS « SPRING 2013
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It’s a New World FOR THE
CITY OF TURLOCK’S FINANCE OFFICE! by Fallon Martin
I
n March 2010, our office went live on the utility module of New World Systems. With this implementation came a number of changes, one of those changes being a new billing form. This billing form allows for important messages to be printed on both the billing stub and bottom portion of the bill. In January 2010, the City converted from flat to metered water, which is now reflective on utility bills as well, allowing customers to see their water consumption (in gallons) for each billing cycle. Some helpful tips are for our customers to be sure to bring their City of Turlock utility bill with them when visiting our office to pay their bill. This allows for accuracy with crediting the correct utility account. Occasionally, inserts are included with utility bills. These inserts contain important and useful information to our customers, such as leaf pick up schedules, holiday events in Turlock, Take Pride in Turlock, etc… For the convenience of our customers, there are a number of payment options available: mail, drop boxes (near TID and at City Hall), City of Turlock’s website (http://www.cityofturlock.org) phone
(668-5570), walk-in payments at City Hall, and electronically through banking websites. Customers are also given the option of managing their utility account from our website. This feature allows for customers to view their utility bill, make payments, and customize their account settings as desired (i.e. sign up for paperless billing, enroll in auto bill payment, etc…). The utility module is a part of the Financial Software Application of New World Systems and is near completion. In January 2012, the Finance Office went live with the business license module, which is a part of the Community Development Application. In an effort to streamline processes and improve electronic communication among City departments, Development Services, Municipal Services, Neighborhood Services, Human Resources, and our Payroll Department have also partnered with New World Systems. This is an ongoing conversion and the City of Turlock is looking forward to the enhancements that New World Systems has to offer our customers and daily processes.
The State Water Resources Control Board (SWRCB)
T
he State Water Resources Control Board (SWRCB) is currently weighing a proposal that, if passed, would negatively impact our region’s water supply, agriculture operations and economy. This proposal, which disregards historic water rights of local irrigation districts, would force these districts to dedicate 35 percent of unimpaired flows along the Merced, Tuolumne and Stanislaus Rivers from February 1 to June 30 annually for fish and wildlife beneficial uses. According to the SWRCB’s Substitute Environmental Document, if this proposal passes, in dry years, approximately 210,000 acres of farmland could be fallowed, Ag income loss could total $187 million each year, job losses would exceed 1,200, and Modesto and Turlock Irrigation Districts will combine to sacrifice 300,000 acrefeet of water annually. Additionally, hydropower generation would take a hit, groundwater supplies would be impacted, and water and power rates would likely rise. What makes matters worse is that this proposal does not possess any scientific evidence that increased flows will actually benefit fish and wildlife. Nor does the proposal address other factors that have been scientifically proven to be affecting fish populations such as predation by non-native fish. The state’s proposal represents a lowprobability gamble based solely on a whim in a high-stakes game to benefit fisheries. Except the only stakes in play are family farms, jobs and the welfare of our region. Learn more at www.tid.com
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BUSINESS NEWS « SPRING 2013
Q1 2013 – CITY COUNCIL -A Running Start at Planning for the Future John Lazar
Steven Nascimento
Forrest White
Amy Bublak
December of 2012 and the first two months of 2013 was a quarter of looking forward for the City Council. Among the major business items that the Council took action on was the Master Plan development in Southeast Turlock, Fulkerth Road improvements, a reliable supply of drinking water and the fees associated with future growth. Council items and votes are as follows;; MEETING COUNCIL AGENDA ITEM 1. 1/8/13 Master Plan Public Improvements Y 2. 1/8/13 Plan Check Services Y 3. 1/8/13 Downtown Property Owner’s Association Y 4. 1/8/13 Water Rate Study N 5. 1/8/13 Turlock Partnership Incentive Program Y 6. 1/22/13 Approval of membership in Bay Area Recycled Y Water Coalition 7. 1/22/13 Approval of City Labor Agreements Y 8. 2/12/13 Approval an Amendment to the East Stanislaus Y Integrated Regional Water Management Plan 9. 2/26/13 South East Turlock Morgan Ranch Master Plan Y 10. 2/26/13 Fulkerth Road Rehabilitation Y 11. 2/26/13 Updates to the Northwest Triangle and Westside Y Industrial Specific Plan Fee Study
Bill DeHart
By Chris Kiriakou
Y Y Y Y Y Y
Y Y Y Y Y Y
Y Y Y Y Y Y
Y Y Y Y Y Y
Y Y
Y Y
Y Y
Y Y
Y Y Y
Y Y Y
Y Y Y
Y Y Y
Following is a brief summary of each of the 2012 business related items. 1.
Master Plan Improvements – City staff reported that new home construction in the NE Master Plan Area has been brisker than anticipated. Developers advance funds for public improvements and the council voted unanimously to reimburse the developers. The City will then be reimbursed through new home construction fees.
2.
Plan Check Services – Another indicator of improving new project construction. Rather than staff up in uncertain times, the City is contracting out the plan check services.
3.
Downtown Property Owner’s Association – Reimbursement of administrative funds to the DPOA. Council provides administrative support to the Association until it becomes more self-sufficient.
4.
Water Rate Study – Council approved hiring a consultant to assist with the preparation of a study of water rates. A No vote by Blublak reflected her desire to do the study internally and use the money spent on a consultant for other purposes such as roads.
5.
Partnership Incentive Program – Unanimous Council approval to continue funding of a $1,000 economic incentive to new business locating in existing construction.
6.
Membership in the Bay Area Recycled Water Coalition – Approved of membership in advocacy group for the purpose of furthering the North Valley Recycled Water Program where the City could sell recycled water to the Westside.
7.
City Labor Agreements - Completion of the City negotiations with the labor unions for the current budget year.
8.
Regional Water Management Plan – Approved an amended cost sharing agreement for the study of long-term water resources for the cities of Turlock, Ceres, Hughson and the South area of Modesto. Turlock’s share is 20%.
9.
Morgan Ranch Master Plan – Continued development of the Golf Links Road, east of Highway 99 area pursuant with the City’s master plan for southeast Turlock.
10. Fulkerth Road Rehabilitation – Council approval of needed improvements to Fulkerth Road between 99 and Golden State partially using Gas Tax funds. 11. Northwest Triangle and WISP Fee Study – Approval of consulting services to update fees associated with development in the two areas (Monte Vista Crossings area and the Industrial Park). The first quarter of the City’s year covered a lot of different areas but from a business standpoint it appears to focus on advance planning and the fees associated with it. Growth brings jobs, opportunity and revenues to the City. These are all good things if effectively planned, consistent with the citizen’s desires. The City staff has certainly done its share of advanced planning this quarter. BUSINESS NEWS « SPRING 2013
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Sequester: So When is a Deal, Not a Deal? T here are plenty of newspaper articles on the Sequester pointing fingers at one party or another. The national debt is increasing substantially with no end in sight. But that’s not what this article is about. This article is about how we got here and a lot about when a deal is not a deal.
If you think back to the start of this discussion it takes place in 2011 when the nation was approaching the Debt Ceiling, the maximum the nation could borrow. The debt ceiling has increased over time as shown in the US Public debt ceiling Since 1981 graph (Wikipedia, Jeanne Sahadi, CNNMoney May 18, 2011). The difference this time was the historically high increases in debt over the past ten years. As of 3/11/13 it is $16.7 trillion. In summary, the deal involved a tax increase through the expiration of the Bush era tax cuts, the payroll tax cuts and tax increases on the wealthy in exchange for $1.5 trillion in budget cuts over ten years. The deal did not specify how the budget cuts would be accomplished but left it to a “Super Committee” made up of representatives from both Houses of Congress and political parties, which failed. In the event of a failure the $1.5 trillion would be cut evenly from both defense and domestic programs: “Sequestration”. The deal was for a $617 billion tax increase (Center for American Progress, 1/3/13) and for $1.5 trillion in budget cuts to reduce the deficit spending. The tax increase took effect on January 1, 2013 and the Sequester cuts took effect March 1, 2013. Ok so just how much will the government have to reduce its spending? There have been varying estimates but the Washington Examiner (2/27/13) reported that its 2.5% over the next ten years. But the January 1 payroll Social Security tax increase was 2% on employees and another 2% on employers in addition to increases on “wealthy Americans”. Recall the deal was for a tax increase in exchange for budget cuts. Congress was able to agree on a series of tax increases but when it came to cutting the budget what happened?? The Sequester is about a failure to complete a deal. A deal that may have a tax impact on each and every one of us and a failure of our elected representatives to live up to what was negotiated. Sure they can agree on taxes, but budget cuts, never! James Madison said, “Wherever the real power in a Government lies, there is the danger of oppression.” (Letter to Thomas Jefferson (1788-10-17). The test of “real power” for our elected representatives will be if they can live up to their “balanced” deals! PAGE 14
BUSINESS NEWS « SPRING 2013
TENET BUYS
Emanuel T
he landscape of Turlock healthcare will undergo a seismic shift in the coming months, as Emanuel Medical Center will be sold to Tenet Healthcare.
Tenet Healthcare is already a major player in the Central California healthcare industry, owning and operating Modesto's Doctors Medical Center and Manterca's Doctors Hospital. The purchase of Emanuel, at an undisclosed price, will allow Tenet to improve both the efficiency and the delivery of healthcare locally, Tenet said. “The combination of Emanuel Medical Center with Tenet’s existing hospitals represents the alignment of leading healthcare organizations with a long history of providing high-quality patient care in the Central Valley region,” said Jeff Koury, senior vice president for Tenet’s California region. The sale makes good sense for Emanuel, too, hospital leaders said. As local healthcare professionals struggle to adapt to the increased demands of the Affordable Care Act, also known as Obamacare, the power and resources of a national company like Tenet will allow Emanuel to continue to thrive. “This is a way we can ensure we have healthcare in our community,” Emanuel Board Chair Jennifer Larson said. Turlockers will likely see little change in the day-to-day operations of the hospital, which will continue all previous services and its affiliation with the Evangelical Covenant Church. Other current Emanuel assets – the Brandel Manor nursing facility and Cypress of Emanuel assisted living – will continue to be operated by the Covenant Church, and will not be sold to Tenet. BUSINESS NEWS « SPRING 2013
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World Series Trophy . . . hits Turlock
I
t's tradition for the World Series-winning baseball team to embark on a trophy tour, showing off the fruit of their labor to an adoring fan base spread across a region. But it's certainly not normal for a World Series trophy to end up in Turlock. After the San Francisco Giants won the 2012 World Series, sweeping the Detroit Tigers in the process, the team planned a typical trophy tour. Stops were planned across the Central Valley, in cities like Modesto, Atwater, and Merced – but not Turlock. But then on Feb. 20, by happenstance, Giants personnel transporting the trophy got a little hungry while driving from Modesto to Atwater. The Giants employees decided to stop for lunch at the former Wellington Station, bringing the 2012 and 2010 World Series trophies inside for fans to see while they ate. The unexpected, approximately one-hour Turlock stop took even Wellington's owners by surprise. Just shortly after the World Series trophy left, Wellington Station too left Turlock. The longtime bar and eatery closed forever in mid-March, with owners reopening 10 days later as 10 East Kitchen and Tap House, a new restaurant and bar focused on craft beer and upscale casual food.
New Members Cindy Fraze Realtor DAC Remodeling Inc. First California Mortgage Company Fresno Pacific University, Merced Center H&R Block IBEW Local 684 Jacobs, Wes, D.V.M.
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Quilts of Honor Stanislaus Council of Governments Tom Michael Insurance Agency Turlock Gospel Mission Turlock Monument Co. Valley Care Medical Group Valley Vein Health Center
BUSINESS NEWS ÂŤ SPRING 2013
Mixers
CARNEGIE
PET AVENUE
Ribbon Cuttings
BRENDA ATHLETIC CLUB BUSINESS NEWS « SPRING 2013
STOP-N-SHOP
H&R BLOCK
PAGE 17
TURLOCK REAL ESTATE –
Limited Inventory Translates To Higher Prices… By Jim L. Theis, Broker
W
hat a difference a year makes! Last March we were still talking about the “foreclosure tsunami” and the swelling “phantom inventories” of bank owned properties that were being held by the large banks, both of which have failed to materialize. As we start the 2nd Quarter of 2013, there are 53 available properties for sale in Turlock (all prices, all areas) and approximately 10% are bank owned and another 10% are short sales. Last year there were 192 homes for sale with 73% being distressed sales. The market is transitioning from a market dominated by distressed sales to one that is predominately traditional sales with “real” buyers and sellers on each side of the transaction.
still very favorable when compared to the 40-yr historical average in the 8% range. With the current low inventory levels, there is strong upward pressure on prices as buyers over-bid asking prices, with multiple offers the norm on most sales. Today’s $111/sf median market value is significantly below the peak of $257/sf, however it is up 19.4% from the bottom last year. This positive trend is encouraging news for home owners looking to move back to a positive equity position in their home values. Low inventory of available homes will continue to be the story for 2013 as only 19 building permits were issued for new homes in all of 2012 – down from the peak of 873 issued in 2003.
Going back to 2nd Quarter of 2007, inventories of unsold properties had ballooned to 481, 30-year mortgage rates were 6.25%, and the median price per square foot was $221 after dropping from the previous all-time high in 2006 of $257/sf. Turlock median home prices bottomed last year at $93/sf and have gradually been moving up to the current $111/sf. Mortgage rates bottomed at 3.38% and are currently in the 3.75% range –
Opportunities are still available for both first-time home buyers and investors. With the limited inventory, buyers must be patient, however must be in a position to move quickly when the perfect home becomes available. It is still a great time to buy or sell a home!
CALIFORNIA DISTRESSED SALES 70% 60% 50% 40% 30% 20% 10% 0% 9
-0
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9
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9
9
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2
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13
2
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SOURCE: California Association of REALTORS®
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BUSINESS NEWS « SPRING 2013
t looks like the Greek government will not go into default on nearly $1.3 trillion Euros. Oh, by the way 1 Euro = $1.3256 today so that’s really $1.72 trillion give or take a few bucks. Come on, what does a default in a country the size of Connecticut mean to me here in Turlock on the other side of the world?? Well it really could mean a lot because guess who holds some of that debt??
I
A Greek Tragedy The Greek government has issued about $1.72 trillion in bailout bonds to keep the country alive, more or less. A payment on the debt is coming due March 20 and the Greeks don’t have the cash. (No wonder, in December unemployment was 21%.) The Greek government has asked the private bond holders to take a 53.5% cut in the current value or a near 70% loss in the full value of the bonds, as well as, seeking a $172 billion loan. Well here’s the connection between Turlock and Greece, guess who holds Greek bonds and related derivatives, several large US banks!! Remember those pesky derivatives from four years ago, Mortgage Backed Securities (MBS) that we’re still trying to recover from. Local Banks In June last year CNN reported that JP Morgan Chase, CitiGroup, and Bank of America held around $185 billion in Greek related derivatives. These are some of our local banks that we rely on for credit and services. But you say that’s a drop in the bucket compared to the $878 billion the US government bailout that the banks received under the Toxic Asset Relief Program (TARP). Guess what, Greece is just the leading edge of the storm with Italy, Spain, Portugal and Ireland not far behind. If Greece
BUSINESS NEWS « SPRING 2013
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forward t o?
What can we look . . .
by Mike Lynch
W
hile 2013 is not a presidential election year we will not be spared either political issues or campaigns. Many very consequential discussions and decisions will be undertaken which will shape our community state and nation for years to come. Locally, foremost is water and power. Agencies like the California Water Quality Control board are intent on increasing substantially the flows from the reservoirs on the Tuolumne, the Merced and the Stanislaus. This could mean loss of water and power to TID and MID customers and ratepayers. It is particularly important to TID, where the long standing plans to provide safer and cleaner surface drinking water to its area (Turlock, Ceres, Hughson etc) could be impacted by the decision. TID electric customers, who already pay much of the cost of bringing TID water to TID irrigators, could see even larger power bills, since the water would be released at a time when power generation revenues are low. The threat to the water supply doesn’t stop there. The Federal Energy Regulatory commission has to relicense Don Pedro. More outside demands for increased or water use are expected at that level. It is ironic that TID and MID, which have invested in water storage, are now expected to supply water at no cost to wealthier areas of California who have made no such investments. This kind of disparity continues to keep the
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valley well behind other parts of California in economic, employment and opportunity success indicators. Roads and police will also be on the minds of local government. Some cities are considering a sales tax for police services or road improvements. Stanislaus county is looking at a county wide road improvement plan. If the jurisdictions proceed with these plans some may be on the local ballot this November. Our state and federal legislators will have to constantly be on guard to forestall threats not just in water, but in land use, and funding formulas, so that our area is treated equally with others.
So we will have an interesting year. Get ready for political posturing as various potential candidates for office in 2014 test the waters. More importantly however, watch closely the policy developments that can have enormous impact on our economy and quality of life in Turlock.
BUSINESS NEWS ÂŤ SPRING 2013
12 Steps ...
TO A GREAT EMAIL Alan W. Seaton
B U S I N E S S C O N S U LT A N T A L L I A N C E S B D C T U R L O C K
P
redictions have a funny way of coming true…or not. A few years ago, email as a way of reaching existing customers and potential new customers was said to be going the way of newspapers, Top 40 radio, and door hangers,. “Not the best way to target customers”. “No one reads emails anymore” “There’s a better way”. There is a better way, and that better way is a better email! Great restaurants, hotels, even great athletes pay attention to the details and frequently find success for their efforts. Great email marketing comes from the right content, an attractive presentation, and a strategy for understanding how your recipient reacts and how to follow up. Here are 12 steps to better email marketing.
Step #1 – Have Clear, Attention-Getting Email Subject Line: If it’s hokey it gets passed by, if it’s blank it gets ignored. If you take a minute and really think of what you want them to look for, not just what your message is about, the chances of it being opened are increased. Avoid spam triggers. Step #2 – A Real Person as the Sender: I don’t care what your company has to say, much less a 3rd party sending email on your behalf. I want to know it’s you, and why you feel you should be sending me an email. All this should come across in the From: line. Step #3 – Company Logo – I may not care as much about companies as I do about people but I want to be reassured in it is you behind a company. In a split second people identify and associate a logo, to a brand, to a company, to you; a good logo, makes us think, makes us feel, calls us to action and puts us at ease all in the same split-second. A great email always features your logo, prominently. At the beginning, at the end, or both. Step #4 – Personalized Content – Add the recipient’s first name to your email. Personalized email increases the click through rate (the rate your recipient actually opens your email). Think how your offer affects them personally, and adjust the offer to fit different demogrpahics, pyschographics or personas. Step #5 – Create Groups or Segments within your Email List. Different circumstances, different reactions, different message. Who are they?, Where are they?, What have they bought in the past? Step #6 –State Your Case Early – Your “case” is the value proposition, or context of your offer. Tell the reader as quickly as possible, why they clicked open your email. Getting someone to open an email is hard; getting them to stay through the show is more difficult. Tell them why you have sent it to them particularly. This reduces the big brother effect; “why are you BUSINESS NEWS « SPRING 2013
sending me an email? Who told you to email me?” Step #7 – Call to Action – What do you want me to do? Have a button(hyper link) they can click on to purchase what you’re selling, or learn more about what you’re saying. Step #8 – Pictures say a thousand words Emails are like show and tell in 2nd grade, people want to see pretty pictures rather than read words. #9- Sharing buttons/additional links: Facebook, Google+, Twitter, LinkedIn, Pinterest, Instagram, Reddit. Putting social media buttons on your emails allows the reader to share their thoughts immediately if they like what they read. #10 – Access to the Deep End – If you got a prospect to notice, open, realize, and understand what your email is about, give them a bonus link at the bottom which offers more. Kind of like a complimentary dessert after a great meal. This increases credibility even if they have not chosen to purchase or taken advantage of your offer. More detailed information may make them a buyer. #11 – Respect Privacy – Be very clear on how you respect the recipient’s privacy. Have a privacy policy that the recipient can easily click. Assure those that read your email, and/or click through for more information, or to make a purchase, that their information will be protected and respected. #12 – Allow Them off the Bandwagon – All emails of a nonpersonal nature require an Unsubscribe link. Nothing damages your credibility more than incessant, unwanted emails from sellers or providers. It’s the law! Do not send an email without an Unsubscribe link. I realize there is much more to marketing, email or other than I can provide in such a short article but the keys to successful email marketing are: be clear, be concise, be relevant, call for an action, show respect, and provide an unsubscribe link. Email allows companies of all sizes and types to market their goods or services, but if you don’t do it right, you may cause more harm than good. Special thanks to Meghan Lockwood of Hubspot Marketing, for her inspiration. Alan Seaton is a small business consultant for the SBDC for local start ups and business owners that have a issue about their business. SBDC assistance is provided free of charge. Sign up for services at alliancesbdc.com. Contact Al at 209-585-9508, or email @ seatonideas@sbcglobal.net PAGE 21
CVB Promotes . . .
Turlock Community Events
2013 Distinguished Artist Retrospective 3/14/2013‐4/14/2013 More Info: 209‐632‐5761 www.carnegieartsturlock.org
Intuition And Holistic Expo 4/13/2013 10:00:00 AM More Info: 209‐604‐5413 www.intuitionandholisticexpo.com
3rd Annual Haywire Car & Truck Show 5/11/2013 8:30:00 AM More Info: 209‐613‐2654
MACBETH ‐ Shakespeare Under The Stars 4/30/2013‐5/5/2013 6:00:00 PM More Info: 209‐667‐3166 www.csustan.edu
6th Annual Rib Cook‐off 4/19/2013 11:00:00 AM More Info: 209‐668‐5098 Artist Open Studio 4/6/2013‐4/7/2013 12:00:00 AM More Info: 209‐222‐TOUR www.facebook.com/StanislausAOS Bounders United Kanga Roos Chapter 4/2/2013 7:00:00 AM More Info: 209‐823‐5688 CCAA Track & Field Conference 5/2/2013‐5/4/2013 12:00:00 AM More Info: 209‐667‐3016 www.warriorathletics.com Central California Bluegrass Assn. ‐ RV Rally & Campout 4/15/2013‐4/21/2013 12:00:00 AM More Info: 916‐ 989‐0993 www.cbaontheweb.org CSUS Student Shows (Titles & Directors TBA) 3/15/2013‐3/19/2013 8:00:00 PM More Info: 209‐667‐3166 www.csustan.edu/SOA/theatretickets.html David Sedaris 5/7/2013 7:30:00 PM More Info: 209‐668‐1169 turlocktheatre.org E‐Waste Collection 4/6/2013 9:00:00 AM More Info: 209‐668‐1738 Gold and Treasure Expo 3/23/2013‐3/24/2013 10:00:00 AM More Info: 951‐850‐1582 www.goldprospectors.org
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Pitman High School Annual Jazz Band Dinner 3/15/2013 7:00:00 PM More Info: 209‐277‐3706 www.pitmanhighbands.com San Joaquin Labrador Retrievers Dog Show 3/15/2013 8:00:00 AM More Info: 209‐402‐4488 www.shadowbrooklabs.com St. Paddy's Day Celebration 3/17/2013 12:00:00 PM More Info: 209‐668‐8729 http://www.facebook.com/events/366434063391373/ St. Patrick's Day Pub Crawl 3/16/2013 11:00:00 AM More Info: 209‐815‐3731 Turlock Chamber 14th Annual Golf Tournament 4/5/2012 11:00 AM More Info: 209‐632‐2221 www.turlockchamber.com Tournament of Champions ‐ Cal State Stanislaus Warriors Softball Tournament 4/5/2013‐4/7/2013 12:00:00 AM More Info: 209‐667‐3016 www.warriorathletics.com TYPA presents Once on this Island, Jr. 4/19/2013‐4/21/2013 7:00:00 PM More Info: 209.537.5227 Vines, Signature Dishes, Wine & Brews 3/14/2013 7:00:00 PM More Info: 209‐667‐3836 http://www.csustan.edu/stanbyme/vines/ WGAS Motorsports‐ Monster Truck Spring Nationals 5/11/2013‐5/12/2013 6:00:00 PM More Info: 530‐745‐0100 www.wgasmotorsports.com BUSINESS NEWS « SPRING 2013
BUSINESS NEWS « SPRING 2013
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