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BUSINESS JOURNAL

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Firefighters Compensation Compared to Peer Cities by Paul J. Farmer, Chamber CEO This is the fifth article in the “City Budget Crisis” series where we focus on the City of Salinas’s major challenge with an ongoing budget deficit. The first four articles are available on the Chamber’s website at www.SalinasChamber.com Those articles covered the following topics: 1. The ever-increasing cost of the City’s employee benefits and pensions 2. Overtime costs, focusing on the Police and Fire Departments (which together average $5M per year) 3. The Fire Department’s special deal and “binding arbitration” 4. The Fire Department’s compensation for each employee in 2017 The present article continues the discussion started in the previous article by analyzing data regarding the Salinas Fire Department versus that of “Peer Cities.” “Peer Cities” is in quotation marks because, while these were the cities used for evaluating compensation, it is open to debate whether these cities are

Power Struggle Ends

HyperLoop Beats Rail P.7

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Chamber Trip to Italy

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California Jobs P.15

Chamber Endorsements

The Salinas Valley Chamber has announced its endorsements for the June 2018 primary election. Be sure to vote on June 5th and if you vote absentee, the absentee ballots get mailed out on May 7. Keep an eye out for yours and return it by election day. Following its process, the Salinas Valley Chamber’s Candidate Review Committee solicited information from candidates and held a series of panel interviews to discuss their ideas. The committee and Board found these individuals to be most supportive of the Salinas Valley Chamber’s public policy positions and friendly to the interests of the business community and the community at large. Supervisor, 3rd District: Chris Lopez We believe Chris Lopez is the most capable and prepared candidate to represent District 3 on the County Board of Supervisors. Having grown up in this district, he has demonstrated his long-term commitment to serve its residents by planting many roots locally. Chris has served for ten years in the office of the soon-to-be-retired gentleman who has represented this district, the highly respected Supervisor Simon Salinas. For more than seven of those years, he has served as Simon Salinas’s Chief of Staff. These years of on-the-job training mean he has already built many of the connections Chris Lopez and an enviable base of knowledge in understanding the issues that confront the County. When asked when and why he decided to run for this office, Lopez responded that he has always wanted to serve the community, but it was not part of his plans to work in government. After college, he came back to the area to help his family, a long-time small business in South County. He accepted a position with Supervisor Salinas and earned his respect and ever-increasing responsibility. As Supervisor Salinas considered retirement, he started planting seeds with Lopez several years ago. Supervisor Salinas decided he would retire but if and only if there were a qualified and capable John Phillips person whom he could support. The Supervisor has put his full-throated support behind Lopez. In addition to his qualifications, intelligence and concern for the community, Mr. Lopez has demonstrated his understanding and personal experience with the challenges that businesses face operating in our heavily-regulated local environment. He shares anecdotes of the red tape he has encountered in running and making ENDORSEMENTS - Continued on page 4 (bottom)

CRISIS - Continued on page 4 (top)

MAY 2018

www.SalinasChamber.com

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FRIDAYS STARTING MAY 18, 1:30-5:30pm THROUGH OCTOBER

FARMERS’

MARKET Corner of Wilgart Way and E. Romie Lane

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www.SalinasChamber.com

MAY 2018


In Honor of Rick Antle

PROFESSIONAL STAFF ■ Roxanne

by Jim Bogart, 2018 Chamber Board Chair (& President, Grower-Shipper Association) I want to dedicate my column this month to the memory of a close friend of mine, who passed away last month. Many in our community were shocked and saddened to hear of the passing of Rick Antle, president and CEO of Tanimura & Antle. Rick was a leader among leaders. The impact that his life brought to so many was demonstrated clearly by the outpouring of affection we saw recently at Rick Antle the celebration (1956 — 2018) of his life that was held at T&A. I’m proud and honored to have called him my friend and I’d like to share a bit more about his remarkable life and leadership. Rick grew up in the family business as the grandson of vegetable pioneer Bud Antle and son of the equally imposing Bob Antle. He began his career at Bud Antle Inc. in the early 1970s and launched

Tanimura & Antle with his father and brother and the Tanimura family in 1982. That continued a tradition of the Antles selling the crops that the Tanimuras grow dating back to 1949. Together the two families built a powerful and innovative company, with Rick Antle taking a lead role in guiding the course for the past three decades. Over the past 35 years, T&A has been every bit the industry leader that its predecessor Bud Antle Inc. was. It has been involved in all aspects of the industry and is the largest grower-shipper in the commodity business. He also led the company into many different innovative areas of the industry as it currently has a greenhouse and artisan lettuce operation in Tennessee and is greatly increasing its presence in the organic sector. A year ago, the leadership of the organization formed an ESOP (Employee Stock Ownership Plan) to assure a smooth transition as the company moves forward and also to gives its vast number of employees a material stake in the operation.

Tanimura & Antle has always been one of Jim Bogart the leaders in the industry with regard to its workforce. Rick was also instrumental in planning and building the Spreckels Crossing farmworker housing project which is home to some 800 T&A employees. In 2016, Mr. Antle, along with his wife, Tonya, was honored by the United Fresh Produce Association with its distinguished Lifetime Achievement Award. Mr. Antle is survived by his wife, Tonya, and his two sons, Brian and Jeff, both of whom are involved in the company. He is also survived by his mother Sue, brother, Mike, who is currently on T&A's board of directors, and sisters Kathy and Karen. The Chamber and I, personally, extend our sincere condolences to Rick's family. We can all take comfort, however, in that we had the honor to have known, worked with, and been inspired by this agricultural icon.

Rest in peace, Rick. ■

Recycling Suffers Amid Trade Feud by Bob Tita, Wall Street Journal Chinese trade barriers are compounding the problems faced by companies that recycle scrap paper, plastic and metal. The U.S. generates more recyclable waste than any other country. China is the top customer for that scrap. China bought two-thirds of the used paper and half the scrap aluminum that the U.S. sold overseas last year, according to the Institute of Scrap Recycling Industries Inc., part of an overall haul of 13 million metric tons of cast-off American packaging, periodicals and shredded car bodies. China’s 25% tariff on U.S. scrap aluminum would make reusable metal from other countries more appealing. China also recently imposed tougher quality standards on other imported recyclables, sending the U.S. recycling industry into a tailspin.

MAY 2018

Prices for discarded newspaper, office paper and magazines have fallen to zero in the U.S. Inventories of paper, crushed milk jugs and old cardboard are swelling. No other country wants to buy as much U.S. junk as China had during the past several years. “It’s really been a jolt to the entire industry,” said Joel Litman, co-owner of Texas Recycling Inc. in Dallas, which recycles paper and cardboard. “If China doesn’t take it, you can ship it to other places, but nobody has the capacity that China has.” ■

www.SalinasChamber.com

Noble Boss, Membership Director ■ Sydney Allred, Member Services Coordinator ■ Phillip Saldaña, Operations Manager ■ Thom Taft, Finance Manager ■ Paul Farmer, CEO & Chief Member Advocate

2018 EXECUTIVE COMMITTEE ■ Chair

of the Board Jim Bogart (Grower-Shipper Association) ■ Past Chair Frank Geisler (Geisler3) ■ Chair-elect John Bailey (Alternative Dispute Resolution) ■ Vice Chair, GRC Kevin Dayton (Labor Issues Solutions) ■ Vice Chair, Finance William J. Hastie (Hastie Financial Group) ■ Vice Chair, Events Julie Ann Lozano (MBS Business Systems)

2018 BOARD OF DIRECTORS ■ Lindsey

Berg-James (Noland, Hamerly, Etienne & Hoss) ■ Mark Boos (Girl Scouts of California's Central Coast) ■ Kalah Bumba (Consultant Community/Health) ■ Raymond Costa (RHC Management - McDonald's) ■ John Haupt (Blach Construction) ■ Jeff Lamb (Farm Fresh Deli & Café) ■ Adrienne Laurent (Salinas Valley Memorial Healthcare System) ■ Rodney Meeks (Credit Consulting Services) ■ Tom Meyer (1st Capital Bank) ■ Esmeralda Montenegro Owen (Hartnell College) ■ Cody Ramsey (Mann Packing) ■ Kristy Santiago (KION TV) ■ Ba Tang (Union Bank)

CHAMBER LIAISONS ■ Peter

Kasavan (SPARC)

■ Matt

Ottone

LEGAL COUNSEL

CREATING A STRONG LOCAL ECONOMY PROMOTING THE COMMUNITY PROVIDING NETWORKING OPPORTUNITIES POLITICAL ACTION REPRESENTING THE INTERESTS OF BUSINESS WITH GOVERNMENT

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➟ CRISIS - Continued from page 1 left

appropriate peers. Readers will see in the data tables that accompany this article that only one of the nine peer cities has a lower cost of living than Salinas (that city being Modesto). On average, the cost of living in Salinas is 31% lower than the cost of living for the 9 cities that were selected as peers. Some of the other peer cities are in the Bay Area and have costs of living which are double that of Salinas. It is understandable that a comparison must look at the compensation paid by neighboring cities as there is competition in the market for employees, but the cost of living is an important factor that should also be considered. Give its paramount importance in determining our City’s compensation levels, it is a fair question to ask who selects which cities qualify as “peers.” Notwithstanding whether these peer cities are appropriate, Salinas’s firefighters are still paid 6% above the average for these cities. It should be noted that the “Average Cost of Fire Personnel” in the chart on the cover simply takes the average for the five employment classifications included in the compensation study. The Chamber does not have access to the employment detail from each city that would be needed to calculate a weighted average.

➟ ENDORSEMENTS - Continued from page 1 right

improvements on his own small ranch. Finally, the Chamber is in agreement with Mr. Lopez’s assessment of critical priorities: Housing, Infrastructure and Water. Should he be elected, Mr. Lopez will have one of five votes on Council. We believe that he will do his homework and he’ll become a reliable and fair voice that will support sensible policies. In his words, “[to] attract new businesses and develop our economy in an intentionally diverse way.” Supervisor, 2nd District: John Phillips Four years ago, when Judge John Phillips was first running for this seat, the Chamber endorsed him. We cited his background in the public sector as a respected judge and non-profit experience as the driving voice behind Rancho Cielo as reasons for his understanding the needs of the community. While Rancho Cielo is technically a non-profit organization, it is run like a business. Developing the campus has required leaders at Rancho Cielo to contend with much of the bureaucracy that other businesses deal with every day. In short, the judge can “feel our pain.” Fast forward four years: Supervisor Phillips has realized the promise we saw in him. He has become the most important and reliable representative on the Board of Supervisors when it comes to enacting policies that are supportive of smart

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Our Data Sources and Fairness Data for the present article comes from the following sources. Information on peer cities compensation was gathered by “Public Sector Personnel Consultants,” an Arizona firm hired by the City of Salinas to conduct a compensation study that was completed in February 2018. Data on cost of living estimates comes from “Sperling’s Best Places” (a free resource at www.bestplaces.net). The Chamber has been in discussions with representatives from the Salinas Firefighters Union. As we went to press, we had not received a formal written response. We have invited them to submit a response which the Chamber may publish in a future Business Journal. Fire Department compensation has been a focus of several articles in this series because it is an important overall driver of costs for the City. These articles are intended to spark community discussion about these costs. The Chamber Board has discussed and agreed that the current work we are undertaking is vitally important because if the City does not address the root causes of these budgetary challenges, then they inevitably aim to solve the problem by “growing the pie,” which means higher taxes on our local businesses and residents. ■

economic development. John Phillips is thoughtful and fair. In a world of spin, he also has the refreshing quality of being a plain-spoken politician. There are many votes on the Board of Supervisors that come down 3-to-2, with Phillips often supplying the swing vote. The Chamber believes its vitally important that we keep John Phillips in his role as Supervisor and we urge you to support him with your vote. Member of State Assembly, District 30: No endorsement at this time. While the Chamber met with several candidates, we have opted not to endorse for the Primary election. We may reconsider an endorsement for the General election in November. Sheriff: No endorsement. The Chamber met with both candidates for this position who engaged in a spirited debate. In the end, when personalities are set aside, the Chamber believes voters will have trouble identifying significant differences in policies. Each of the candidates has advantages and disadvantages, but we did not find the differences compelling enough to make an endorsement of one over the other. ■

www.SalinasChamber.com

MAY 2018


Salinas Power Struggle Is Over by Kevin Dayton, Chamber Board

Results Are In: Almost All Salinas Valley Businesses Will Get Their Electricity from Monterey Bay Community Power, Not PG&E Final results are in for the Monterey Bay Community Power (MBCP) opt-out period for commercial, industrial, and agricultural customers. Only 76 customers have chosen to opt out of MBCP and stay with Pacific Gas & Electric (PG&E) - a rate well below 1%. MBCP is not supposed to reveal identities of these 76 opt-out customers to the public. (A board member revealed the name of one at a recent public meeting, provoking a warning from the agency’s legal counsel). The load demand of the customers opting out is 2.32% of the total commercial, industrial, and agricultural sector and 1.75% of all customers, including residential. Six of those 76 opt-out customers (8% of the total number of customers opting out) are large enough to represent 72% of the total opt-out load demand. MBCP staff reports these customers are opting out because of “concern that the initial rate offered by MBCP won’t last” and “political or other issues may result in higher rates” than PG&E. However, staff has a plan to get these 76 customers to flip from PG&E to Monterey Bay Community Power, thus attaining 100% of the market for commercial, industrial, and agricultural customers. MBCP will offer a “Savings Guarantee Agreement” or a “Price Protection Agreement” that guarantees rates will never exceed PG&E rates. In exchange, customers that sign this agreement will forgo 50% of their annual rebate. Staff believes these terms “will significantly increase their likelihood to opt back in as MBCP customers.” The agreements would last for a fixed term of 1-5 years, with an opportunity for annual renewals after that term expires. The Competition Argument in Support of Community Choice Aggregation May Become Moot Very Quickly These extremely low opt-out rates mean PG&E will have almost no commercial customers in three counties. Essentially, a government utility with a monopoly is replacing an investor-owned utility with a monopoly. Will PG&E continue offering to supply electricity to a region where it has virtually no customers? And if not, will Monterey Bay Community Power take advantage of its monopoly to jack up electric rates? Time will tell. CEO Compensation Controversy Meanwhile, the MBCP Policy Board is divided by a controversy over how the interim Chief Executive Officer (CEO) is evaluated,

MAY 2018

retained, and compensated. It resulted in the first-ever divided vote of the Policy Board: a 7-4 vote on March 7 to approve an Employment Agreement with CEO Tom Habashi. To get the public power agency established and operational, certain Policy Board members decided in 2017 to hire an experienced municipal utility chief executive. Mr. Habashi was expensive to recruit and is expensive to retain at a base salary rate of $27,500 per month ($330,000 per year). He is also eligible for a bonus of up to $30,000 based on his performance in 2018. Why such a high salary for a ratepayerfunded government position? It’s a result of high demand and low supply. There are about two dozen community choice aggregation power agencies in California now in operation or in planning stages. And there are very few people with the knowledge and experience traditionally expected from someone who oversees an electric utility in California. In addition, creating and launching a public power agency is a major project with serious negative ramifications to the region if it isn't done in a competent and professional way. There are deeper ideological issues underlying the controversy. Some people are not enthusiastic about the agency’s choice for a CEO. Mr. Habashi clearly feels that a top priority for the agency is keeping electric rates for customers reasonable and competitive with Pacific Gas & Electric (PG&E). This is also the general perspective of the Salinas Valley Chamber of Commerce. Meanwhile, environmental and social justice organizations have a vision of the public power agency as an agent for deep, transformational change in the regional economy. They see the CEO’s compensation as excessively high, inadequately reviewed by the board, and hidden from the public -- essentially, no better than what they expect from profit-driven investor-owned utilities. On April 18, the Policy Committee held a special meeting to discuss the CEO compensation and evaluation. But board members didn’t even seem to agree on what they were there to discuss. In the end, the Policy Board appointed an ad hoc committee comprised of members of the Policy and Operations boards. The committee will develop performance goals for the CEO to earn the bonus. Your Salinas Valley Chamber of Commerce will be watching developments from a business perspective. ■

AGRICULTURAL BUSINESS AND TECHNOLOGY INSTITUTE

Register Today

Register online at give.hartnell.edu/register by May 1, 2018 to secure your participation.

www.SalinasChamber.com

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Marketing 101

Agricultural Tech Benefits Valley

tips & advice on digital marketing by Phil Fisk, President Coastline Marketing Group

By Frank Plescia, Biotechnology Innovation Organization Modern agricultural technologies will bring benefits to the Salinas Valley

Where Does Your Target Market Hang Out? Don't Let A Lack Of Resources Hold You Back Countless small businesses make excuses to not market. You lack the budget, the people, or the time. Not having the resources is a challenge, but it’s no reason not to work on marketing. The easiest way to overcome this problem is by creating a marketing plan. It was once said that you can do something fast, cheap, and well. However, you can only do two of those things at once. If you want it done well and fast, it won’t be cheap. If you want it done well and cheap, then it won’t be fast. This is something to keep in mind as you work to create a marketing plan based on the resources that you do have. A marketing plan will ensure you don’t waste your time or your money. It has to be custom-made for you and your business. If you duplicate what another business is doing, it’s likely to fail because it’s not what’s right for you. In order to create a good, solid marketing plan, there are a few things to consider. After working in marketing for over 10 years, within a number of industries, I can honestly say that it’s

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important to include all of these: 1. Identify your goals. Whether it’s to generate more leads or to be more visible in social media, you have to identify what they are so you know what activities to focus your energy on. 2. Define your strategy. Consider the various things that will help you to achieve your goals, such as becoming more involved with social media, email marketing, or even advertising. 3. Outline your activities. List the activities that will fit within each strategy and that will work with the limited resources that you have. Once you have a marketing strategy in place, you can identify timelines for these. You may want to do some things daily, such as posting on social media. Other things may be more of a goal you want to work towards, such as achieving a particular ROI on your pay-per-click campaigns, within three months. Research the tools that will help you overcome a lack of resources. For example, there are various social media tools that will allow you to make all of your posts at once. The tool will then auto-post for you so that you don’t have to feel tethered to your Facebook and Twitter accounts all day, every day. A lack of resources can be frustrating. However, if you take the time to write a solid marketing plan, it can keep you motivated to move forward without wasting any resources in the process. ■

As a representative of the Biotechnology Innovation Organization and a new member of the Salinas Valley Chamber of Commerce, I am pleased to share with you more details about our organization and the benefits that modern biotechnologies can bring to agriculture in the Salinas Valley, to Monterey County, and to the world. Biotechnology Innovation Organization (BIO) is the world’s largest biotechnology trade association. Its members provide nearly 250,000 jobs in California in the bioscience industry and are leading bioscience innovation in health, energy, agriculture and the environment. California’s life sciences companies lead the country in research and development. The tools of biotechnology are solving some of society’s most pressing problems and creating high-skill and high-wage jobs (average wage approaching $125,000 per year) for the betterment of our lives and our communities. Over the years, dramatic improvements have been made thanks to agricultural biotechnology. • Ag biotech has helped improve human health. • Today allergen-free peanuts are currently being developed by a start up out of UC Berkeley. • And a new tomato is being developed at UCLA that mimics good cholesterol when eaten. • Ag biotech has helped reduce use of chemical pesticides by 8 percent from 1996-2015 globally. • Ag biotech allows farmers to grow more crops on less land using less water. In fact, new technologies have increased crop yields by almost 25%. • Ag biotech has led to reduced soil erosion and carbon emissions through no-till farming practices — equivalent to removing 11.88 million cars from the road for a year.

www.SalinasChamber.com

Even with these advancements, new challenges arise that will require constant innovation. Development and adoption of new technologies, such as gene editing, are essential to address the challenges facing California’s farmers and ranchers. In the coming decades, agriculture must produce sufficient amounts of safe, nutritious food while using fewer inputs and leaving a smaller environmental footprint. Meeting this challenge will depend, in part, on genetically improving cultivated plants and domesticated animals. Gene editing is a powerful new technique that allows agricultural scientists to make these improvements. Gene editing relies on naturallyoccurring processes and molecules, such as CRISPR, to make small, targeted changes to an organism’s own genes in order to produce a specific beneficial result. Minute changes to single genes can provide plants and animals with beneficial characteristics, such as disease resistance, or decrease undesirable characteristics, such as allergens. We’re just at the beginning stages of learning how gene editing can improve agriculture. We look forward to sharing more details with you in the coming months. Frank Plescia is a State Government Relations Consultant to the Biotechnology Innovation Organization. He is a Sacramento native and received his B.S. degree in Environmental Toxicology from U.C. Davis and his M.S. degree in Toxicology from the University of Arizona. Frank has been actively involved in shaping agricultural and biotechnology policy in California for over 25 years. ■

MAY 2018


What’s Beyond the 401(k) Plan?

Hyperloop Beating High Speed Rail

by Bill Hastie, MBA

by Investor’s Business Daily

For many Americans, the 401(k) plan serves as their primary retirement savings vehicle. The benefits are many – employees can make tax-deferred contributions to the plan, employers can add a matching or profit sharing contributions to the plan. Some employers may ask if there is a way to save more towards their retirement than is allowed in the 401(k) plan. The answer is yes, there may be. The Cash Balance plan can provide a way for certain employers to contribute much larger sums of money towards their retirement. A significant reason why Cash Balance plans are not very well known is due to their complexity. Very specific participant coverage and non-discrimination rules make the design of each Cash Balance plan unique to each plan sponsor. A Cash Balance plan is an employerfunded defined benefit plan that specifies both the contribution to be credited to each participant and the investment earnings to be credited based on those contributions. Each participant has an account that resembles those in a 401(k) plan. Defined benefit and cash balance plans may be appropriate for businesses with consistent revenues for long-term funding where owners are older and earn more than the average employee. For business owners who want to compress twenty years of retirement savings into ten years, or who may be in a position to make significant contributions, a common strategy is to add a Cash Balance plan to an existing 401(k) plan. In combination, the annual maximum contribution limits

are considerable. Let’s use a 60year old business Bill Hastie owner for our example. For 2018, the maximum that can be contributed to their 401(k) plan (known as the “Section 415 limit”) is $61,000 – that is the overall total of all elective deferrals, matching and profit sharing contributions. Assuming the required contributions have been made for eligible employees (employers can anticipate making contributions of 5% - 7.5% of employees’ pay), our 60-year old business owner can contribute up to $254,000 to their account in the Cash Balance plan – for a total retirement savings contribution in 2018 of $315,000. In the 37% income tax bracket, that equates to a potential tax savings of $116,500. The consulting process for designing a Cash Balance plan begins with understanding the plan sponsor’s primary goals for implementing the plan. While an initial design can be “penciled out” with all goals in mind, the final design is determined when an actuary calculates allowable contributions taking into consideration plan coverage requirements, nondiscrimination testing and required contributions for non-highly compensated employees. If plan efficiency, that is the amount of the employer contributions going to the owners/principals, is sufficient, then it may be a feasible plan. In many cases when the employer contributes 5% 7.5% of annual pay to the employees, plan efficiency can reach 85% or more. Each plan must be designed and tested on an individual basis to determine its suitability for a given company and plan sponsor. Bill Hastie, MBA is the Founder of locally-owned Hastie Financial Group. If you would like to discuss your personal or company’s investment needs, please contact Bill at William.Hastie@lpl.com ■

MAY 2018

Hyperloop Is Running Circles Around California's 'High Speed' Rail Boondoggle Innovation: Just five years ago, Elon Musk proposed his breakthrough "hyperloop" transportation idea, and there is already talk of building it in major urban areas. Over those same five years, California's government-funded high-speed rail project has seen nothing but cost overruns and delays. When Musk announced his futuristic hyperloop idea — a mass transit system in which passengers would travel in pods going hundreds of miles an hour inside vacuum tubes — in 2013, he blasted California's high-speed rail project. "The train in question would be both slower, more expensive and less safe by two orders of magnitude than flying," he wrote, "so why would anyone use it?" Why indeed. And that was before it became clear that not only would California's bullet train be slow and expensive, but riddled with endless delays and cost overruns. In the five years since Musk issued his hyperloop document, California has made precious little progress on its bullet train. The state's latest report pushed the completion date back four years — to 2033 — and hiked the cost by another 20%. Even the initial 119-mile phase in the state's Central Valley won't be finished until 2022. That's probably a stretch, too, since the only things completed so far have been two short bridge spans and a new overpass. Meanwhile, progress on the hyperloop idea has moved at breakneck speed. Recently, Hyperloop Transportation Technologies announced plans to build a test track in France this year, and a working 1-kilometer-long system by 2019. That would be the third test track built. In the U.S., Virgin Hyperloop One has a full-scale track in Nevada and Musk built his own test track outside SpaceX headquarters. Also recently, Musk's Boring Co. announced that it had raised $112.5

www.SalinasChamber.com

million in funding to build underground hyperloop tunnels. There is already talk of a loop connecting downtown Chicago with O'Hare Airport, one from Baltimore to Washington, and a Great Lakes Hyperloop from Cleveland to Chicago. Hyperloop's advantages over traditional rail are fairly stunning. Because the pods travel in a nearfrictionless environment, they can go extremely fast. Hyperloop One estimates it would take just 43 minutes to go from Los Angeles to San Francisco on a hyperloop. That compares with nearly three hours on California's "high speed" rail. Unlike high-speed rail, the trains won't be noisy or prone to derailing. And the system is far easier to build. Advocates of high-speed rail keep telling us that the U.S. is behind the curve, because other countries have already built thousands of miles of high-speed tracks. A better way to look at it is that the U.S. has largely avoided making the costly mistake of pumping taxpayer money into costly boondoggles like the one California is currently trying to build. Even when California completes its high-speed rail — if it ever does — it's hard to imagine why anyone would use it, even with heavy government subsidies. In other words, it's a project only government would see fit to pursue. In contrast, private investors risking their own money aren't going to build hyperloop systems that are endlessly over budget and that won't attract significant ridership. And when they do see an opportunity, they won't t ake two decades to build it. If you want an example of the benefits of private investment vs. central planning, hyperloop is a powerful one. ■

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Measure X Oversight Taken Seriously

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Chamber Members packed the house at Little Italy in downtown, owned and operated by an actual Italian, Michael Pappalardo.

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excessive and unnecessary demands on TAMC staff. So far everything is going well. In fact, Measure X sales tax revenue totals for the first nine months exceeded expectations. Prosperous times have resulted in extra funding for repairing streets. TAMC is also planning for its first regional projects: the Marina-Salinas Multimodal Corridor and the Fort Ord Recreational Trail and Greenway (FORTAG). One area the committee has identified as a vulnerability is the potential for local governments to try to shift money between internal accounts so that Measure X revenue ends up effectively used for something other than road repair. Local governments will be required to submit paperwork annually demonstrating and certifying that this did not happen. Committee members will be alert in their own communities and neighborhoods for projects that don’t seem to match what was told to the committee. If any local government tries to circumvent what voters were told in the ballot measure, TAMC has authority to deprive it of future Measure X funds. The Measure X Citizens Oversight Committee takes its volunteer responsibilities seriously. Its meetings are open to the public, with public comment encouraged. For more information, see the committee website at www. tamcmonterey.org/board-committees/ citizens-oversight-committee. ■

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In November 2016, Monterey County voters approved Measure X, a sales tax for the Transportation Agency for Monterey County (TAMC) to fund regional and local transportation improvement projects. It was the fifth try since 1998 to get a sales tax approved for this purpose. To help win voter support for the tax, the TAMC board included in the ballot measure a mandatory Citizens Oversight Committee with broad and diverse representation. This committee is supposed to be a check and balance against the spending decisions of the TAMC board, agency staff, and local governments that are entitled to some of the Measure X tax revenue. Now the board has 20 members and 20 alternates representing many different perspectives throughout Monterey County. John Haupt of Blach Construction is the designated Salinas Valley Chamber of Commerce oversight committee member, and John Bailey of Alternative Dispute Resolution, A Professional Law Corporation is the alternate. The author, Kevin Dayton, represents another organization and serves as chairman of the committee. Committee members meet quarterly. We review written material in advance, receive staff representations at the meeting, ask the staff many questions, and discuss recommendations and concerns. We’re always vigilant for inconsistencies and seek accountability for Measure X funds without imposing

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by Kevin Dayton, Chamber Board

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333 Salinas Street Salinas, CA 93901 831.424.1414 470 Camino El Estero Monterey, CA 93940 831.373.3622

nheh.com MAY 2018


Leadership Monterey County – Defense Day by Kimbley Craig, CEO, Monterey County Business Council Recently, the participants of Leadership Monterey County gathered for its “Defense and Security” day. The focus of the day was to enlighten participants on the vital role the defense and security industries play in the county’s economy, the local community and in the nation’s defense. Participants also learned how their businesses can successfully provide goods and services to the defense industry. The class started its day by being welcomed at the Defense Language Institute Foreign Language Center (DLI-FLC) by its leadership team including Colonel Phillip Deppert, Commandant and Lingo the campus support dog! Col. Deppert gave a comprehensive overview of DLI. It is a United States Department of Defense (DoD) educational and research institution consisting of two separate entities which provide linguistic and cultural instruction to the Department of Defense (DoD), other federal agencies, and numerous customers around the world. The bulk of the Defense Language Institute's activities involve educating DoD members in assigned languages, and international students in English.

The Leadership Class poses beside Soldier Field

Col. Deppert shared the Institute’s main goals to provided strategic planning, curriculum development, and research in the most needed second languages globally. Further, he shared the vision of how DLI integrates into Monterey County, and how it partners with other educational institutions in the area to ensure students can receive a degree at the end of their time at DLI. Next the participants’ enjoyed a tour of the Naval Postgraduate School. The Naval Postgraduate School is a graduate university offering master’s and doctoral degrees in more than 70 fields of study to the U.S. Armed Forces, DOD civilians and international partners. During the visit, the class was welcomed by Ronald Route, President of the Naval Postgraduate School, who gave a history of the Hotel Del Monte. They learned that Hotel Del Monte was a large resort hotel in Monterey from its opening in 1880 until 1942. During World War II, it closed and the building was leased to the Navy. It was first used by the Navy as a school where enlisted men spent the second, third, and fourth months of an eleven-month course being trained as electronic technicians. Later the Hotel Del Monte became the Naval

MAY 2018

Postgraduate School of the United States Navy. It is now known as Herrmann Hall and functions as administrative offices and a hotel for the school. Kimbley Craig Additionally, students met and were provided information and presentations about the focus of the school today and how it determines its major courses of study. Further, speakers shared that the school strives to be a welcoming host to the community and visitors to the peninsula by having concerts on the lawn and regular Sunday brunches which are open to the public. As a part of the visit, the leadership team including Heather Isvooren with the Center for Homeland Defense and Security, Marc Pritchard with the Center for Homeland Defense and Security, Captain Rich Wiley, Commander - Naval Postgraduate School, Laurel Minik, Director of Resource Management and Daniel Cunningham, Faculty Associate - CORE Lab discussed research and Masters programs designed for local, state, tribal, and federal authorities to LMC Classmates Meagan Edwards and Grant Leonard work together to secure our nation. Lastly, the class returned to the Monterey County Business Council office for a presentation by Teri Williams, Program Manager, Monterey Bay Procurement Technical Assistance Center (PTAC) on the fundamentals of providing services to government entities. She also shared the goals of PTAC which is to provide free confidential counseling and assistance to local businesses wishing to sell products or services to government agencies. PTAC currently serves 16 counties in the Central and Northern California region. Finally, the participants had a robust question and answer discussion with Paul Temple, CEO of Advanced Onion. The firm has successfully provided Technology Consulting Services to the defense industry since 2006, including private sector industry leaders such as Northrop Grumman, Hewlett Packard, SAIC and SRA, to name a few, to support federal programs. A special thanks to Teri Williams and PTAC, who sponsored the day, and Jeff Lamb - Farm Fresh Deli who sponsored the delicious lunch. ■

www.SalinasChamber.com

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Guns in the Workplace After the school shooting in Parkland, Florida, it was suggested that teachers and coaches who are adept at using firearms be required to bring a gun to school to deter school violence. Most employers have policies prohibiting employees from bringing weapons of any kind to the workplace, and any employer considering such a requirement must first do a careful analysis of its obligation to maintain a safe work environment and the risks and benefits of weapons in the workplace. But if an employer in California decides to require certain employees to bring a firearm to work, there are related wage and hour obligations that it must fulfill. California law requires that an employer reimburse its non-exempt and exempt employees for “all necessary expenditures or losses incurred by the employee in direct consequence of the discharge of his or her duties, or of his or her obedience to the directions of the employer.” California law does not allow an employee to waive his or her right to that reimbursement through any contract or agreement. In other words, an employer must reimburse its employees for business expenses they incur. For example, many employees use their own personal cell phones for work. Previously, many employers did not perceive an employee’s use of a personal cell phone as a business expense for which an employee must be reimbursed since most cell phone plans provide for unlimited minutes and, as such, the employee is not incurring any additional expense. But in 2014, the California Court of Appeal held that an employer must reimburse an employee for the reasonable expense of the mandatory use of a

personal cell phone, regardless of the details of the employee's cell phone plan, whether the phone bill is paid for by a third person, and whether the employee changed plans to accommodate worked-related cell phone usage. The court stated that the employer must pay “some reasonable percentage” of the cell phone bill. Similarly, if an employer requires an employee to bring a gun to work, the employer must reimburse the employee for the expense of purchasing the weapon as well as ammunition. If the employee uses the weapon only for work, the employer must reimburse the employee in full, although it can impose a spending limit on the employee. If the employee uses the weapon for personal purposes and for work, the employer must reimburse the employee for at least a percentage of the purchase price of the weapon plus ammunition. Furthermore, if an employer is going to require that employees bring a gun to work, training in the use of the weapon should be mandatory. When an employer requires that an employee attend training, it must pay for that expense as well as the hours spent in the training. The employer can compensate the employee for the time spent in the training at a lower rate than his or her regular rate of pay, but the employee must be paid at least the minimum hourly rate. In deciding whether to require at least some employees to bring a gun to work, the first priority is to analyze the effect on safety in the workplace. If, after that analysis, an employer decides to impose such a requirement, it must be aware of the effect on the wages of those employees and comply with its legal obligations.

Photo by Batista Moon Studio

by Sharilyn Payne, Fenton & Keller

L to R

: Kathy Torres, VP MCB; Ray Retez, Luis Solano, Kim Solano, Haute Enchilada Cafe and Gallery Owners; Charles T. Chrietzberg, Jr., MCB President/CEO

The Haute Enchilada Cafe and Gallery boasts an eclectic menu of sustainable seafood and local organic produce, wine and beer tasting plus two art galleries with local artists’ original work. From palate to palette the Haute Enchilada Cafe and Gallery has something for everyone! Open daily from 11 AM to 9 PM for lunch and dinner as well as full bar, espresso bar and dessert. 7902 A Moss Landing Rd., Moss Landing, CA 95039 (831) 633-5843

Ray Retez, Luis Solano and Kim Solano, Owners

Call Monterey County Bank Today! Monterey (831) 649-4600 Pacific Grove (831) 655-4300 Carmel Rancho (831) 625-4300 Salinas (831) 422-4600

Sharilyn Payne is a lawyer with the Fenton & Keller law firm in Monterey. This article is intended to address topics of general interest, and should not be construed as legal advice. For more information, please visit www.fentonkeller.com.

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“Monterey County Bank” has provided us with exceptional customer service and has made it possible for us to move forward making much needed improvements to our property and business.”

www.SalinasChamber.com

$5,000,000 SBA Loan Limit

Oldest Locally Owned, Locally Managed Bank in Monterey County - OVER 35 YEARS! The Leading SBA Lender in Monterey County Member F.D.I.C.  Equal Housing Lender

MAY 2018


Chamber Trip - Italy! By (and with) Chamber CEO Paul Farmer

Have you traveled with our Chamber (and me) yet? If not, read on – you might want to join us. Traveling with the Chamber is a fantastic way to travel internationally with someone you trust and our group travel rates will save you plenty of dough and headache. The Chamber and our travel partner agency handle all the details so all you have to do is enjoy yourself. Especially with the new friends you’ll make on our trip, that’s not hard! Our Chamber travel group travels on our own private motor coach. A professional tour guide accompanies us on the trip, takes care of the logistical details and shares with us the background and histories of the places we visit. Some good news this year. Good news? Actually, it’s great if you don’t like packing and unpacking. And if you like staying in really nice hotels, I’d say the news is even greater. We’ll be staying in a beautiful 4+ star hotel in Sorrento (overlooking the glorious Amalfi Coast) for our entire stay. We’ve learned – a very nice hotel is key to having a top-notch vacation experience. The sites we will be visiting are nearby, meaning the bus rides each day are short. And if you want some leisure time to yourself, that’s easy enough with this trip. We have two optional days built in, take advantage of them so you can do your own discovering or take it a little slower if you like. You won’t need a vacation to recover from your vacation. Our travel partner this year has bent over backwards for us. This is the third year in a row we’ll be

MAY 2018

Impor tant!

Due t o ove rw po adde pularity, whelming da eh date second de ave optio n (Oc parture t 25). Cont ac t us f

or de

tails.

traveling with them. Those who joined us last year in Ireland know about all the special treatment we enjoyed. If you haven’t been to Italy before, you’re probably going to want to add a 2-day post-trip extension to visit Rome. There’s a reason Italy is the #1 destination in Europe. This will be my third time in Rome and I absolutely love it. If you want to spend even more time in Italy, we can easily arrange that into this trip. There are so many cool things to share, you’re going to have to learn more about it. Please join us for the no-pressure Travelers Information session on Wed., May 30 (details in the ad beside this article). Or shoot me a note: President@SalinasChamber.com Our traveler satisfaction is very high because the tours are top-notch, the pricing is very competitive (thank you, group discounts) and…let it never be said that I don’t know how to show people a good time!

2018 Chamber Trip (open to anyone)

Italy

Amalfi & Pompeii

Oct 10 - Oct 17, 2018 OR - NEW OPTION Oct 25 - Nov 1, 2018

8 Day Journey of a Life�me Includes Breakfasts & 2 Dinners Highlights: Stunning Amalfi Coast, historic City of Pompeii (where Mount Vesuvius erupted), Sorrento, Capri, Ravello, Positano Our 4-star Bristol Hotel overlooks the coast DISCOUNTED RATE:

$2999 Rate is double-occupancy, + all taxes and fees = $150 $450 deposit holds your seat

Is Italy for You? You’re invited to a

Travel Presentation

One more thing: a little

over half of our travelers are couples, but we also get a lot of singles who like to travel with our always-friendly group. Also, every year we get a few groups of friends who decide to leave the spouses at home and have their own adventure with us. So…set aside any reasons you might have for not joining us and at least come hear about the trip! ■

www.SalinasChamber.com

When: Weds May 30, 6-7pm Where: Salinas Valley Chamber 119 E Alisal St, Salinas Info: (831) 751-7725

Pompeii

Or email us for a brochure to President@SalinasChamber.com

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Real Estate & Property Management The Salinas Valley Chamber of Commerce encourages you to shop and dine at local businesses. For every $100 spent at locally owned businesses, $73 stays in the community.

Let’s keep the Salinas Valley strong – shop at these member businesses. Sammut Brothers (831) 449-2475

Piini Realty PiiniRealty.com

Taylor Farms Property Management (831) 676-9051

Steinbeck Real Estate SteinbeckRealEstate.com

Northridge Villas Apartments NorthridgeVillasApartments.com Coast & Valley Properties Inc CoastAndValleypm.com Bay Property Management BayPropertyMgmt.com CHISPA ChispaHousing.org Backus Property Management BackusPM.com AG Davi Property Management AGDavi.com Coldwell Banker Gay Dales ColdWellBankerGaydales.com

Real Time Realty NoreenTowers.net Team Barrera @ Windermere Real Estate Windermere.com

RE/MAX Miracle Agents - Connie Jo Stubblefield Remax-unlimited-ca.com First American Title Company Firstam.com Cushman & Wakefield Cushmanwakefield.com Jim Gattis Investment Properties Fusion.realtourvision.com

Tammy LaSala - Coldwell Banker Del Monte Realty TammyLaSala.com

JNM Company, Commercial Real Estate JnmCommercial.com

Monterey Coast Realty MontereyCoastRealty.com

Grupo Flor GrupoFlor.com

Pro View Property Inspection ProViewPI.com

Mahoney & Associates Mahoneycommercial.com

Marina Community Partners TheDunesonMontereyBay.com

DeSerpa Investments, LP Deserpa.com

Brandon D Patterson Windermere Valley Properties Windermere.com

Shaw Development Shaw-development.com

Corral de Tierra Realty CorralDeTierraRealty.com

Wells Fargo Home Mortgage wfhm.com/loans/salinas

A Special Thanks to Our Strategic Partners and Stakeholder Members

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www.SalinasChamber.com

MAY 2018


New Member Profiles Black Bear Diner

Measure to Improve

At Black Bear Diner, you’ll find something for everyone. Huge portions of good old-fashioned family food at reasonable prices make this a favorite stop in every community. With twenty-three years of experience and restaurants throughout ten western states, Black Bear Diner continues to be recognized as one of the country’s fastest growing brands. Visit any one of our locations for breakfast, lunch or dinner. Be sure to leave room for a house-made pie or a hand-dipped ice cream milkshake (with the tin on the side)! #FeedYourInnerBear BlackBearDiner.com/Location/Salinas

Community Builders for Monterey County Community Builders for Monterey County (CBMC) serves as an online and physical hub that links community members to impact local needs within the diverse population of Monterey County to build a vibrant community. CBMC strives to further its overall mission by connecting volunteers to specific causes of their choosing, while also assisting nonprofits to retain new and returning volunteers. www.ComBuildersMC.org

Discovery Shop With stores throughout California, American Cancer Society Discovery Shops help support the fight against cancer through the sale of high quality, gently used, donated merchandise. For over 40 years, the Society has owned and operated these specialty resale stores, featuring items such as clothing, accessories, jewelry, furniture, artwork, antiques, collectibles, and other household items. SalinasACS.NonprofitSoapBox.com

Embassy Suites Monterey Bay- Seaside

Monterey Coast Realty Monterey Coast Realty represents buyers and sellers of quality properties, from cozy cottages to magnificent mansions throughout the Monterey Peninsula, all the way east through Carmel Valley and south to Big Sur. We are comprised of a handpicked team of Realtors known for their professionalism, ethics and business success. We work together to offer the highest quality of personalized service to our clients. 831-624-2300 • www.MontereyCoastRealty.com Dolores Street SW of Seventh, PO Drawer C BRE License #: 01871677

St. John's Administrative Services I provide a full bookkeeping service with the primary goal of helping independent businesses handle and manage their bookkeeping needs. This service will entail handling daily transactions, financial records, bank and credit card reconciliations, and creating financial reports. It may also include setting up and maintaining vendors for Accounts Payables and clients/ customers for Accounts Receivables. I have 20 years of experience in this field. I have supported several companies in the past, and am efficient in QuickBooks, Excel, and Word. Linda St. John (831) 272-3459 • LindaSJ2252@comcast.net

Valvoline Instant Oil Change

Newly renovated Embassy Suites by Hilton Monterey Bay features 225 spacious suites and over 16,000 sq. ft. of flexible event space. Plan your next business meeting or fundraiser and let our experienced staff help put on a perfect event. www.EmbassySuites3.Hilton.com Call today 831-241-9136

Grand Canyon University Founded in 1949, Grand Canyon University is a private Christian university with more than 200 academic programs across nine distinct colleges for both traditional students and working professionals. Both our in-person and online classes involve engaging interaction with classmates and individual attention from instructors who care about student success. As a regionally accredited university, we provide all of our students with an exceptional academic experience that helps them find and pursue their purpose. For more information, visit: GCU.edu/udc/Monica.Glover

MAY 2018

The mission of Measure to Improve is to help agricultural producers and processors measure, improve, and credibly promote their sustainability efforts. We believe the driving force behind sustainability starts with a good business case. We set out to discover the economic savings that also translate into environmental benefits and show companies how to stay ahead of mandates and appeal to the growing segment of environmentally and socially conscious buyers. ​ For more information, visit www • MeasureToImproveLLC.com

Allen Brothers Oil is a franchise operator for Valvoline Instant Oil Change. Valvoline Instant Oil Change is a new name to the Central Coast, but Allen Brothers Oil has been providing exceptional customer service since 2005. In 2016, the franchise transitioned to Valvoline Instant Oil Change from Oil Can Henry’s. Our stores are located in Salinas, Watsonville, and Soquel. We provide quick, convenient maintenance for personal vehicles and can provide fleet services for your business. (831) 753-0242 1042 • North Davis Rd, Salinas • www.store.vioc.com/ca/salinas

Zag Technical Services Our talented team of professionals are driven to meet challenging IT needs, while reducing risk and improving productivity. We deliver impactful solutions and services through strategic assessment and design, followed by professional deployment and support. Our passion is to enable your success by being your complete IT Partner. www.ZagTech.com

www.SalinasChamber.com

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Thursday, May 17th from 5:30-7pm

6 Rossi Circle, Ste. F

Look What We Found! We’ve started preparing for the Chamber’s 100 year anniversary this year. Check out what we’ve found in our vault! The beginnings of the Salinas Valley Chamber of Commerce … At 2pm on January 7, 1904, a conference was held in Salinas, at the Salinas City Chamber of Commerce rooms. The purpose of this conference was to arrange a joint exhibit of Santa Cruz, San Luis Obispo, and Monterey counties at the Louisiana Purchase Exposition, informally known as the St. Louis World's Fair. This meeting represents one of the earliest references we have found about the existence of the Salinas Chamber (never mind that we’re celebrating our Centennial in 2018. In performing research related to our Centennial, that’s when the Chamber learned we are actually much older than we had been told!). We know from a 1913 Sanborn Insurance Map that the Chamber was once located at 110 Main Street, just inside the lobby of the Bardin Hotel. The Bardin Hotel housed the addresses numbering from 101-135 on Main Street. In those days, hotels were not just a place for travelers to sleep – they were also the homes for many businesses, including our Chamber of Commerce. The Bardin Hotel was one of the first hotels in Salinas. It would later become the Franciscan Hotel which was destroyed by fire in 1945. The Steinbeck Museum & CSUMB @ City Center now occupies most of the site formerly held by the hotel. Watchful eyes will understand, this is why the addresses 101-125 no longer exist on Main Street. By December 20, 1919, the Chamber was holding weekly luncheons in the parlor at the Hotel Jeffery, where business leaders discussed matters like free parking, water, gas for cooking, tourism and the conversion of Central Park to accommodate an automobile campground. The Hotel Jeffery was at 269 Main St (near the corner with Alisal St). You can see it in the photo accompanying this article. The other tall building behind it was the Crocker Bank, now the home of Rabobank.

RSVP online at SalinasChamber.com Free admission to Salinas Valley Chamber Members

Meet the Board

Rodney Meeks Tom Meyer

Free one-time admission to prospective members Live music by Money Duo

(above) The Jeffery Hotel - also the site of Chamber meetings in the early 1900s (left) The Bardin Hotel an early home of the Salinas Chamber

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www.SalinasChamber.com

MAY 2018


Chamber Ambassador

Jon Brandt

Jon and Emily Brandt moved to the Central Coast in 2000 when Jon retired after 20 years with the Marines. Jon is the local owner of Always Best Care Senior Services. With this business he serves his neighbors throughout Monterey County by providing compassionate in-home care for adults needing help with their activities of daily living. As part of the Salinas Valley Chamber of Commerce, Jon opted to become an Ambassador. As one, he enjoys meeting Chamber members and promoting the value of a connected

California Loses Jobs In March, Though Unemployment Stays at a Record Low In a signal that California's economic engine could be slowing after a remarkable run, the state lost 7,200 net jobs last month and increases in February were far less than originally estimated, according to data released Friday by the Employment Development Department. The decline was the first in nearly two years and follows a disappointing national report that showed the U.S. added only 103,000 jobs in March. In California, the drop-off was broad-based, with eight of the state's 11 industry sectors reporting job losses. February's increases were revised sharply down, to 1,200 from 14,000. "The overall economic momentum is slowing both for the U.S. and California," said Sung Won Sohn, an economist at Cal State Channel Islands. "We've reached an inflection point." ■

MAY 2018

and interactive community while constantly learning about that community. Always looking for ways to improve the lives of others, he volunteers in several capacities locally. He is a Watch Lead with the Los Olivos-Riker Neighborhood Association (LORNA). He drives with ITN Monterey and Meals on Wheels Salinas Valley as well as sitting on that Board. The Central Coast offers many beautiful and inspiring opportunities to get outdoors. Jon and Emily enjoy exploring. Pictured here they pause

on a trail at the Fort Ord Public Use Lands with their dog, Blake. They also spend time working to raise funds and awareness for several worthy causes. These include the Alzheimer’s Association, ITN, the Children’s Miracle Network, and Meals on Wheels Salinas Valley. For any questions you may have concerning his involvement with the Chamber or finding the best in-home non-medical care for one’s self, a friend or a loved one, please contact Jon at jbrandt@abc-seniors.com,

(831) 975-4072 or checkout his website at www. AlwaysBestCareCentralCoast.com. ■

o m to a ve M t a ry S y a Tr e D p eci a l M o t h e r ’s Royal Retreat

A Vitamin C facial An hour Relaxation Massage Soothing Foot Treatment Warm Paraffin Hand Dip

$225

Ultimate Mom Aromatherapy Facial Exfoliating Hand Treatment

$109

Giſt Cards Available GIFT CERTIFICATES HELP CELEBRATE THE DAY…

Mommy and Me An hour Relaxation Massage for two in our beautiful Mediterranean Suite

EVERY Royal Retreat Gift Certificate includes a Beautiful Gift with Purchase.

$190

229 Main St., Beautiful Oldtown Salinas • www.aquabluespa.com • 831-422-2500

CA Unemployment Rate Steady

4.3% Unemployment Rate

EDD reports California's unemployment rate (seasonally adjusted) in March held at 4.3%, a repeat of the lowest level since the current unemployment series began in 1976. Total employment was up 2,400 from February, while total unemployment dropped 15,600. Total labor force dipped 13,200, while the labor force participation rate edged down 0.1 to 62.2%.

www.SalinasChamber.com

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Focus on Non-Profits CWA Connects Ag Women Formed in 1975 in the Coachella Valley, California Women for Agriculture (CWA) is dedicated to the promotion and advancement of women in agriculture. The Salinas Valley Chapter was formed in 1977. Today, our membership is as diverse as the industry we represent: bankers, lawyers, accountants, marketing professionals, consumers, farmers, and ranchers. The Salinas Chapter proudly represents Monterey, Santa Cruz, and San Benito Counties. Agriculture plays a

significant role in these counties, and we saw a need for women to be represented in this industry. As a member of California Women for ag, you will be a part of a 100% volunteer group which supports local communities. Members become involved in building relationships, which is a way to spread knowledge about the various aspects of the ag industry. We stay informed through guest speakers that provide insight into the world of ag and its rapidly evolving nature. 2018 President Donna Given leads monthly meetings at the Grower Shippers Association office in

Salinas, which can also be attended via conference call. Some of our engagement includes non-political legislative endorsements, networking, community outreach opportunities, ag scholarship programs, mixers, specialty events and much more. CWA is well known for its annual Holiday Fundraiser Bus Trip to San Francisco! CWA could not achieve all these areas of outreach without the generous support of our sponsors. For information on how to join CWA or become a sponsor please see our website at www.salinascwa.org

When you support Ag, you are part of feeding the World!

Non-Profit Calendar May 5:

May 25:

May 5-6:

May 29:

2018 Gleaning Season 8:30-11:30am • Call for details 831-755-1480 • AgAgainstHunger.org Non-Profit: AG Against Hunger Relay For Life 10am-10am (24 hr event) Monterey County Fair & Event Center 831-772-6527 • Main.AcsEvents.org Non-Profit: American Cancer Society

May 6:

Monster Jam 12-5pm • 1034 N. Main Street  831-775-3100 • CaRodeo.com Non-Profit: California Rodeo Inc.

May 10:

Monthly Luncheon with Speaker, Steve Zalan 12 - 2pm • 100 Harvest 831-424-5066 • ActiveSeniorsInc.org Non-Profit: Active Seniors Inc.

May 11:

Annual Symposium Beyond Opioids: Alternative Treatments & Medical Cannabis 8:30-3:30pm 1441 Canyon Del Rey Blvd., Seaside 831-333-9023 • HospiceGiving.org/event/as2018/ Non-Profit: Hospice Giving Foundation

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Info Session 7:30-8:30am • 945 S. Main Street, Ste. 107 831-455-6800x31 • CasaOfMonterey.org Non-Profit: CASA of Monterey County Monterey Annual Education Conference: Navigating Through Alzheimer's Disease 8-4:30pm • 1 Old Golf Course Road, Monterey 800-272-3900 • Tinyurl.com/MontereyEdConf2018 Non-Profit: Alzheimer's Association

Jun 4:

Info Session 4:30-5:30pm • 945 S. Main Street, Ste. 107 831-455-6800x31 • CasaOfMonterey.org Non-Profit: CASA of Monterey County

Jun 18-22:

Structured Literacy Teacher Training institute - CA EC56335(a) FULL Day 8-3:30pm • 2511 Numa Watson Rd. Seaside 831-394-3468 • Chartwell.org/summer/tti Non-Profit: Chartwell School

Jun 18

- Jul 6:

Summer At Chartwell Reading Clinic & Enrichment Programs See website for info 2511 Numa Watson Rd. Seaside 831-394-3468 • Chartwell.org/summer Non-Profit: Chartwell School

www.SalinasChamber.com

Jun 21:

Info Session 11-12pm 945 S. Main Street, Ste. 107 831-455-6800x31 • CasaOfMonterey.org Non-Profit: CASA of Monterey County

Jun 22:

2018 Rock & Rod Show Sock Hop to benefit Gateway Center 5-10pm Gateway Center of Monterey County 831-372-8002x210 • MontereyRockRod.com Non-Profit: Monterey County Fair & Event Center

Jun 23:

2018 Rock & Rod Show to benefit Gateway Center 10-6pm Custom House Plaza, Monterey 831-372-8002x210 MontereyRockRod.com Non-Profit: Gateway Center of Monterey County

Jun 25-29:

Structured Literacy Teacher Training institute - CA EC56335(a) HALF Day 8-12pm 2511 Numa Watson Rd. Seaside 831-394-3468 • Chartwell.org/summer/tti Non-Profit: Chartwell School

MAY 2018


CalPERS Costs Increase by John Myers, LA Times

California's largest pension fund sends next year's invoice to state government: $6.3 billion As part of a shift toward less optimistic expectations for investment returns to pay for government worker pensions, board members of the California Public Employees Retirement System voted recently to require an almost $6.3-billion payment from the state budget in the fiscal year that begins on July 1. The action, which could receive final approval on Wednesday, reflects a gradually higher annual contribution to public employee pensions by the state and from local governments across California. In 2016, CalPERS approved a half-percentage point decrease in its official estimate of the long-term investment return on its $353.3-billion portfolio. That shift was designed to happen over several years, in hopes it would lessen the financial shock of shifting more of the costs onto government employers. The highest costs are also, in part, a reflection of increases in the size of the state’s payroll. The state’s CalPERS payment will be about $450 million more than the total paid in the current fiscal year and more than double what it was only a decade ago. CalPERS board members voted on Tuesday’s staff proposal with little discussion, save for a question about the increase in contributions also required from workers hired after a pension overhaul that took effect in June.

“It seems like it will be a ding on people's salaries,” said Theresa Taylor, the chairwoman of CalPERS’ finance committee and a member of SEIU Local 1000, the union that represents some 96,000 state employees. The $6.299-billion payment required from California’s state government must now be factored into the budget crafted by the Legislature and signed into law by Gov. Jerry Brown in late June. Brown had already assumed a similarly sized payment in his budget proposal unveiled in January. In February, a coalition representing city governments warned about the effects of rising pension costs under the expectations of less money from Wall Street investments. The report issued by the League of California Cities projected an average increase of more than 50% in annual pension payments made by the state’s largest cities over the next seven years. A CalPERS staff report notes that the net return on all of the fund’s investments for the fiscal year that ended in July was 11.2%. But expectations on profits over the next 30 years remain significantly more modest, and there’s long been a robust debate about how to properly set those future expectations. The lower the rate of projected investment return, the larger the share of pension costs that must be covered by taxpayers and some employees. Overall, CalPERS officials believe the system has assets to cover 71% of its long-term obligations. ■

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MAY 2018

Phone 831-759-8760 startdbs.com 540 Work St. Suite E, Salinas, CA 93901 Call us to schedule a no obligation presentation in your office or our showroom.

www.SalinasChamber.com

17


Dissolving a Corporation

Member News Lowrey, Jr. Recognized

by Patrick Casey There are various reasons why shareholders want to dissolve their corporation, such as they may no longer want to conduct the business, they may have sold the business or they may no longer get along. Whatever the circumstances, the shareholders will likely decide that they want to dissolve the corporation. At that time, they will need to follow certain procedures in order to properly do so. The basic steps to dissolve a corporation involve liquidating the assets, paying off all the creditors, properly terminating all contracts or leases, filing final tax returns and distributing any remaining proceeds to the shareholders. The corporation needs to understand to whom it owes money and therefore may want to notify its creditors of the impending dissolution and request final invoices from the creditors. In certain circumstances, the corporation may want to publish a notice of impending dissolution and give creditors a chance to submit any claims. Concurrently with paying its liabilities, the corporation needs to terminate its contracts or leases, which could be in the form of service contracts to customers or equipment or office leases. The corporation will need to determine if those leases are terminable at will or if there must be advance notice of termination. If the corporation wants to terminate the contract or lease before its normal expiration date, then the corporation may need to negotiate with the

other party to the contract or lease for an early termination. This may involve the corporation making some type of early termination payment as an incentive to be let out of the contract or lease early. The corporation needs to be sure that it has enough money to pay all its creditors. As part of the dissolution, the corporation usually sells its assets to raise sufficient funds to pay all its creditors. The corporation can conduct the sale in any manner it chooses so long as it is commercially reasonable. This will be especially important if the corporation does not have enough money to pay all the creditors as the creditors may challenge any sale of assets as being below-market sales. In that event, the corporation must be certain that all asset sales are at fair market value. The corporation must pay all secured creditors first and then any remaining funds will be proportionately paid to the unsecured creditors (meaning that if the corporation can only pay $.50 for every dollar owed to the unsecured creditors, then all unsecured creditors only receive $.50 for each dollar owed them). The corporation will need to file a Certificate of Dissolution and a Certificate of Cancellation with the California Secretary of State in addition to filing final federal and state tax returns. The corporation’s shareholders should also adopt a resolution approving the dissolution and, if necessary, enter into a plan of liquidation detailing its dissolution procedures. ■ This article is written by Patrick Casey, who is a business attorney with the JRG Attorneys At Law firm in Monterey. You may reach the author at (831) 269-7114 or at patrick@jrgattorneys.com.

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Noland Hamerly is pleased to announce that Lloyd Lowrey, Jr. will receive the Gibson Award by the Monterey County Bar Association. The Gibson Award is given annually in honor of Chief Justice Phil Sheridan Gibson. The award honors a Monterey County Bar Association member who exemplifies the spirit of distinguished community service demonstrated by Justice Gibson, who was the 22nd Chief Justice of California. His lengthy tenure was notable, as he exhibited the finest traits of human understanding, personality and character. Mr. Lloyd Lowrey, Jr. Lowrey will receive this award on June 15, 2018 at the Annual Gibson Award Dinner held at the Monterey Plaza Hotel. Mr. Lowrey graduated from Stanford Law School in 1971 and has been an attorney with Noland Hamerly since 1976.

UnitedAg Awards $10k Twelve Students in Monterey and neighboring Counties received scholarship awards totaling $10,250 in a Scholarship Awards Ceremony Luncheon that took place at the Growers Pub. UnitedAg awarded the scholarships after reviewing 86 submitted applications. Applicants submitted in addition to detailed information, an essay focused on top issues impacting agriculture and new challenges and opportunities that farmers face every day. UnitedAg is proud to announce the following winners. From Monterey County: Sinai Cabrera, Alesha Corral, Emely Cruz, Tanya Dimas-Guillen, Rebeca Gallaga, David Gonzalez, Kevin Gonzalez, Daniel Kennedy, Veronica Leon-Vega and Adrian Ortiz. From Santa Cruz County: Divianna Navarro. From San Benito County: Ryan Yeaman.

“Measure to Improve” Succeeds New Chamber member “Measure to Improve” assisted their client Ippolito International in earning two TRUE Gold Zero Waste Certifications for its Value Added Facility and Packing Shed; a first for Monterey County. Measure to Improve has guided and supported Ippolito's comprehensive zero waste efforts for the past two years. Ippolito’s two gold certifications aren’t just a first for them and Monterey County, but for Measure to Improve as well. With this accomplishment under their belts, MTI is looking to apply their zero waste expertise towards new projects.

www.SalinasChamber.com

MAY 2018


Rodeo Mixer Find out how fun a Rodeo can

May / June 2018

make a trip to the Airport

May

Ribbon Cutting – Windsor Gardens of Salinas

May

Government Relations Committee (GRC) Meeting

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May

10

May

10

May

11

May

17

May

21 Jun

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Jun

6

Jun

13 Jun

14 Jun

15 Jun

20 Jun

25 Jul

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Wednesday June 20th 5-7 pm 200 Fred Kane Dr. Meet the Board Monterey

1:00pm - 1:30pm • 637 E. Romie Ln.

11:30am - 1:00pm • Chamber Conference Room

Register Online •

Member Orientation

7:30am - 8:30am • Chamber Conference Room

Ribbon Cutting – incotec

$10 for Salinas Valley Chamber members $20 for prospective

members

11:00am - 3:00pm • 1293 Harkins Rd.

Ba Tang

Julie Ann Lozano

Ribbon Cutting – Interim Inc.

11:45am - 1:30pm • 601 Bayonet Cir., Marina

Around the World, Around the Block Mixer

5:30pm - 7:00pm • ProSource - 6 Rossi Cir., Ste. F

Ambassador Committee Meeting

12:00pm - 1:00pm • Chamber Conference Room

Chamber Night at the AmberJack Baseball Game 6:00pm - 9:00pm • 777 Pearl St., Monterey

Connect at Lunch – Max Fit Meals

12:00pm - 1:00pm • 341 Monterey St., Salinas

Government Relations Committee (GRC) Meeting 11:30am - 1:00pm • Chamber Conference Room

Ribbon Cutting – Montage Wellness Center 12:00pm - 1:00pm • 1910 North Davis Rd.

Ribbon Cutting – Christopher M. Mule. DDS Inc. 5:00pm -5:30pm • 130 E Romie Lane, Suite D

Joint Rodeo Mixer

5:00pm - 7:00pm • 200 Fred Kane Dr., Monterey

Ambassador Committee Meeting

12:00pm - 1:00pm • Chamber Conference Room

Connect at Lunch – Pizza Factory 12:00pm - 1:00pm • 926 S. Main St.

MAY 2018

www.SalinasChamber.com

19


GROWTH STARTS SMALL.

R a b o b a n k A m e r i c a . c o m /G r o w Personal Banking

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Business Banking

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Home Lending

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Food & Agriculture

Capitola-Santa Cruz 3555 Clares Street, Suite X (831) 475-5412

King City 532 Broadway (831) 385-4144

Seaside 1658 Fremont Blvd. (831) 394-6900

Castroville 10601 Merritt Street (831) 633-3302

Monterey 439 Alvarado Street (831) 242-2000

Soledad 2149 H. De La Rosa Sr. Street (831) 678-7338

Gilroy 805 First Street (408) 842-1938

Pacific Grove 561 Lighthouse Avenue (831) 649-5010

Watsonville 1915 Main Street (831) 768-2668

Gonzales 400 Alta Street (831) 675-3637

Salinas Main 301 Main Street (831) 737-1213

Hollister 1730 Airline Highway, Suite 310 (831) 638-4861

Salinas Westridge 1285 North Davis Road (831) 784-7700

www.SalinasChamber.com

MAY 2018

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