__MAIN_TEXT__

Page 1

BUSINESS JOURNAL

INSIDE THIS ISSUE:

Ag Recycling Sustainability P.3 | Economic Expansion Continues P.9

Chamber Steps Up for Local Kids by Paul J. Farmer, Chamber CEO Let’s start off with the punchline and then back up to explain: in the next couple of months, the Chamber’s Foundation will lead two major community events for Salinas. “Thrill the World – Salinas” is part of a worldwide, synchronized dance to Michael Jackson’s Thriller. The free event will take place on Saturday, October 27 from noon-4pm at Northridge Mall. And in December, we’ll be taking over the “Childrens’ Shopping Tour” – taking 400 underprivileged kids shopping for new school clothes. Now, let’s step back and give you the details.

P.5

Machines Create Jobs

P.6

| Healthier Drinks for Kids P.11

Chamber Endorsements

The Salinas Valley Chamber has announced its endorsements for the November 2018 general election. Be sure to vote on Tuesday, November 6th and if you vote absentee, the absentee ballots get mailed out beginning on October 8. 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. After the committee offered its input, our Board of Directors made the final decisions on our endorsements. We 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. Salinas Mayor – Joe Gunter Mayor Gunter deserves to be re-elected. He is friendly to the interests of business with government and he is a man who represents the entire community. He’s not afraid to call things what they are (a rare trait in politicians) and he’s not one to back down from “fighting the good fight.” To cite one specific example, the Mayor respectfully but forcefully explained his reasoning for voting against a significant raise for Salinas’s already well-paid firefighters. To cite another, he has been proactive in working on the challenge with the homeless. The City has spent millions to combat this problem and is focused on long-term solutions. They have spent Gunter great sums together with the County of Monterey, but when the County’s solution was to continue using Band-aids, the City said, “We’re not contributing any more of our residents’ money to that.” Judging by the sheer amount of time he dedicates to the position, it is clear Mayor Gunter enjoys his job (even the not-fun parts). We hope voters enable him to keep doing it. Amit Pandya is challenging incumbent Mayor Joe Gunter for a second time. He and his business, Green Phoenix Auto Repair, are long-time members of the Chamber. He has served as a member of the Measure V Oversight Committee and we encourage him to continue his involvement with City of Salinas civic activities. Salinas Valley Memorial Healthcare System Board of Directors The Chamber endorses: Zone 1 - Ricky Cabrera • Zone 3 - Alfred Diaz-Infante Zone 4 - Richard Turner • Zone 5 – Dr. Norman Nelson There is a battle going on for control of the Board of Salinas Valley Memorial Healthcare Board between interests friendly to labor and interests friendly to business. The candidates that the Chamber supports are a distinguished team of business leaders. Dr. Norman Nelson would be the only person on the hospital Board who has been an active physician; he won our endorsement last election cycle. The esteemed leader of CHISPA, Alfred Diaz-Infante has been recognized as the Chamber’s Citizen of the Year. Ricky Cabrera is the owner of Cabrera Contracting and has been a longtime supporter of the community. Rich Turner has served on the SVMH Foundation’s Board. We encourage you to vote for the endorsed candidate in your district.

Paul Farmer dances with hundreds of Salinas children.

Under its umbrella, the Salinas Valley Chamber operates a non-profit, charitable foundation. That profit has done many things over the years, including: • gathering and filling backpacks for schoolchildren • operating a Candidates School (to encourage

KIDS - Continued on page 4 (left)

OCTOBER 2018

Chamber Centennial Gala

www.SalinasChamber.com

ENDORSEMENTS - Continued on page 4 (right)

1


Does Your Technology Enable Your Business To Succeed? 20th Anniversary in Salinas

360⁰ TECHNOLOGY STRATEGY ASSESSMENT •

FINDINGS & ANALYSIS

Identify Critical Risks & Long Term Challenges •

DOCUMENTS & DIAGRAMS

Executive Overview provides Clarity & Understanding •

Discover What You Don’t Know

DISCOVERY

Conduct Interviews & Technical Scans •

GET A SECOND OPINION

STRATEGIC PLANNING

Recommendations with Consultative Discussion

Many organizations have trouble gaining a clear picture of their IT landscape, so we developed a unique assessment process to discover high-risk issues, and help you achieve successready status.

2

us avoid spending money on unnecessary expensive hardware upgrades and software renewals, giving us a much better strategic technology vision and budgeting plan for the future.” CFO, Large Grower/Shipper

Learn mo re now

Salinas * San Jose * San Ramon 408.383.2000

“Your assessment has helped

WWW. SALINASIT SUPPORT.COM

info@zagtech.com

www.SalinasChamber.com

OCTOBER 2018


The Chamber and Ag Working Together by Jim Bogart, 2018 Chamber Board Chair (& President, Grower-Shipper Association) The Chamber and the Grower-Shipper Association (of which I am the President, in case you skipped over the byline above) have worked together for decades to benefit the local business community. A recent Business Journal article addressed changes in the USChina business relationship because of tariffs and the trade war. There is another important impact that ag is dealing with because of other changes in our relationship with China – recycling. Until last year, 15 million tons of California’s recycling was exported, 62 percent of which was exported to China. But now China has closed its doors to recycling imports from the United States, creating an impending crisis for recyclers and the Ag industry, including Monterey County. The Monterey County agriculture sector is among the most productive in the world and an economic engine for the region. At the current trajectory, the largest industry in Monterey County will be without a recycling solution for a large percentage of the material waste it generates. Growers, processors, and shippers will face significant costs to dispose of materials that have traditionally been recycled. Behind the ban of recyclable materials is China’s National Sword - a policy that sets much stricter standards on the amount of contamination allowed in a shipment of recyclable materials and which bans other

materials outright. It hasn’t taken long to begin disrupting recycling operations at regional and local levels. In a one-two punch, China’s new higher standards r equire additional labor and resources in the US to prevent bales of mixed paper and plastics from being landfilled. This has led to declining recycling revenues, straining the economic viability for current recycling operations. Amid this crisis, the Monterey County Sustainability Working Group (MCSWG) is holding a meeting to discuss solutions to this urgent issue. Without new and innovative solutions for the agriculture industry, the region will struggle to achieve its recycling goals and the industry will face mounting costs. By providing a platform for stakeholders to work together to find solutions, the upcoming MCSWG meeting will reframe the future of recycling for the produce and recycling industries in Monterey County. The produce industry is tremendously resilient and has overcome many past challenges. Today, we are confronted with a new challenge; recycling ag-related plastics. To overcome this challenge, the Monterey County Sustainability Working Group meeting will present an opportunity to prepare and position the industry for long-term success. ■

PROFESSIONAL STAFF ■ Roxanne

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 (Haupt & Associates) ■ Jeff Lamb (Farm Fresh Deli & Café) ■ Kathy Miller (Aera Energy) ■ Rodney Meeks (Credit Consulting Services) ■ Tom Meyer (1st Capital Bank) ■ 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

OCTOBER 2018

www.SalinasChamber.com

3


➟ KIDS – Continued from page 1 (left)

and educated candidates for local elected office) • partly funding a major Economic Study for Salinas In recent years, the Chamber’s Foundation has operated two programs: • IMPOWER, a leadership program for women • Leadership Salinas Valley (which we operated for over 30 years) In 2018, the founders of IMPOWER decided to dedicate more time to the successful program by forming their own 501c3 organization. IMPOWER is now a member of the Chamber and we support them wholeheartedly. Also in 2018, the Chamber led the creation of Leadership Monterey County. Instead of there being a Leadership Monterey Peninsula and a Leadership Salinas Valley, we got together with others to create a regional program. Most of our area’s challenges are regional in nature and it just made sense for the program to educate participants about the entire region. Leadership Monterey County is now operated under its own 501c3 organization (of which the author serves on the Board). With the successful spinout of these two programs, the Chamber’s Foundation Board was looking for other opportunities to serve the community. To begin with, the Foundation settled on supporting the “Childrens’ Shopping Tour” and “Thrill the World – Salinas.” Thrill the World – Salinas “Thrill The World” was founded by dancer and choreographer Ines Markeljevic in 2006 in Toronto, Canada. Since then, it has spread to numerous countries on six continents. Thousands of people perform the Thriller dance, at the exact same time. Paul Farmer (that’s me, the author and CEO of this fine Chamber) brought the event to Salinas, starting in 2009. Salinas saw hundreds of people show up for our very first event, which was coordinated in only a few weeks. The event hasn’t been performed in Salinas for a number of years, but we’re bringing it back. With the support of the Chamber’s Foundation and iHeartMedia and Northridge Mall, we are expecting hundreds of people to show up on “Thrill Day.” There will be free practices every Saturday leading up to the event, from 10am-noon at Center Court in Northridge Mall. The event itself will be from noon4pm on Saturday, October 27. There will be zombie face painting for the kids, a costume contest, a dance contest, more practicing and the worldwide, synchronized dance will occur at 3pm. Come on out and join us. It’s all free. If you’d like more details, please visit the Chamber’s website at www.SalinasChamber.com/TTW . You may also contact us at 831-751-7725 or Info@SalinasChamber.com.  Childrens’ Shopping Tour The Salinas Jaycees has been an important group in Salinas for many decades. It has counted as members many of Salinas’s current prominent leaders (including former Mayor Dennis Donohue, current City Councilmen Steve McShane and Kimbley Craig, Rabobank VP Harry Wardwell, local architects Lino Belli and Peter Kasavan, and myself). The Jaycees started the Childrens’ Shopping Tour nearly 70 years ago. In the beginning, about 20 children went shopping with a $35 spending limit. In 1986, the Salinas Jaycees Foundation was formed in order to secure grants to provide a greater service to the children. This effort was very successful, garnering consistent support from the Harden Foundation and the Packard Foundation among others. Donations ballooned to the range of $50,000 a year. For a number of years, the Childrens’ Shopping Tour has been able to invite 400 local children to shop, with each receiving up to $125 for buying needed school clothes. Northridge Mall has also been a strong supporter, serving as not only the venue but also providing free marketing and assisting with getting significant discounts from retailers like JCPenney’s. On the second Saturday in December (December 8th, this year), hundreds of volunteers will gather at Northridge mall to take 400 children shopping for school clothes. It should be noted: the children are selected by teachers at local elementary schools, not by the program event itself. The Chamber is leading grant-writing and fundraising until then. We aim to raise $50,000. If you would like to donate to this worthy event or learn about participating as a volunteer (either on the day of the event, or helping plan beforehand), please visit the Chamber’s website at www.SalinasChamber.com/CST . You may also contact us at 831-751-7725 or Info@SalinasChamber.com ■

4

➟ ENDORSEMENTS – Continued from page 1 (right)

Salinas City Council, District 2 – Tony Barrera Tony Barrera is tireless. He is one of the hardest working Councilmembers Salinas is lucky to have, and since there are a lot of workhorses on Council, that’s saying a lot. He takes the time to understand issues and has the conviction to vote for what he thinks is right. In voting against a raise for one union of City employees, he stated plainly “We can’t afford it.” He understands the coming freight train of ever-increasing costs of pensions and benefits. Not long after that vote, the City Manager announced across-the-board cutbacks because, as Tony said, the City couldn’t afford it. The Chamber endorses Tony Barrera for his common-sense votes, his support for his constituents and the City at large, and his Barrera courage to vote according to his principles, even when it’s clear he won’t be on the winning side. Councilmember Barrera’s opponent is Anthony Lane, who has done much for the community as the owner of the Fox Theater on Main Street in Salinas. (The Fox Theater was once a member of the Chamber.) Mr. Lane has ample experience dealing with the challenges of running a business which make him very valuable. We encourage him to pursue other outlets in public service. Salinas City Council, District 3 – Steve McShane The personal access that Steve McShane affords the residents of Salinas is remarkable – he is always there to listen and respond to concerns. He is hyper-communicative and makes extra efforts to include all stakeholders in the conversation, whatever the issue may be. He somehow finds the time to do this, in addition to his professional and family obligations. As a businessman himself, McShane has proven himself to be friendly to the interests of business. His integrity is unquestionable – he is in it for the greater good. We hope you’ll support Steve McShane in his run for re-election. McShane Opposing Councilmember McShane is Nona Childress. We enjoyed her honest answers to tough questions and encourage her to pursue public service and seek appointment to a city board and commission. Salinas City Council, District 5 – Christie Cromeenes A resident of Salinas for nearly 30 years, Christie Cromeenes has proven her dedication to our City. As the long-time Executive Director of the Central Coast Builders Association, Cromeenes has proven herself to be a business-friendly candidate. She has served on the City of Salinas’s Design Review Board and currently participates on TAMC’s Measure X Oversight Committee. When the Councilwoman who currently represents this district, Kimbley Craig, decided not to run for re-election, Cromeenes was encouraged to run for the office. She’s not one who ever expected to run for local office, but she recognized the important role she could serve. We believe she’ll offer the dedication and fairness that will make her a strong member of the Council.

Cromeenes

Member of State Assembly, District 30 – Not considered. We were not able to secure responses from both major party candidates so the Chamber opted not to consider this race. State Senator, District 12 – No position. After interviewing both candidates, the Chamber was unable to come to a consensus. Rob Poythress is a farmer and business owner whose ideology speaks to the interests of business with government. Anna Caballero is a highly-respected local politician who is intelligent and prepared. As this seat is being vacated by Anthony Cannella, one of the few Republicans in the State Senate, it threatens to give Democrats a supermajority. Is it better to elect Poythress, a member of the minority party who would prevent that supermajority but whose voice may nonetheless be marginalized? Or is it better to elect Caballero, a moderate Democrat who may be more influential within the majority party in curbing some of the excesses of her compatriots in Sacramento? Again, the Chamber opted to take no position. ■

www.SalinasChamber.com

OCTOBER 2018


OCTOBER 2018

Saturday, October 6, 2018

Sherwood Hall, 940 N. Main St

6:00 p.m. 7:00 p.m.

$100 per person www.SalinasChamber.com

Reception & Silent Auction Dinner and Awards Ceremony

www.SalinasChamber.com

5


Marketing 101

Machines Create Jobs by Hamza Shaban, Washington Post

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

How To Get A Better Response Rate From Your Email Campaigns One of the most effective ways to engage your customers and to connect with them about your brand is through email marketing. However, some businesses don't use this strategy, or they go about it the wrong way. They make it about their company, not their target audience. If you want to expand your business and to grow your sales, I'll show you three ways to use email marketing to your advantage. 1. Feature Your Customer, Not Your Brand Most businesses feature their brand first, but it's the wrong way to use email marketing. You want to feature your customers and make them the target of your affection. Avoid using first-person words in your emails, such as "we" and "us." Instead, use "you" and "your" to connect with your customer in a more personable way. 2. Address Your Customer in the Subject Line The subject line is an opportunity to engage your customers from the start. It's what captures their interests when they check their inbox. Make the subject line about them and what they can get by opening the email.

For example: "Your vacation is moment's away. Here's 10 percent off your next room."  The title may seem long, but it sure would pique my interest if I read this subject line in my inbox. I can save 10 percent off my next room? Which room is that, and where is it located? Crafting customer-first subject lines is something that you should start doing right away.  3. Make Your Services Your Customers' Benefits Email marketing isn't just about the customers – you can also use it to showcase your own products, services and features. However, you want to present your features and services as benefits to your customers. If you offer free shipping or have a really good product, frame the email in a way that tells your customers why it's good for them. For example:  "Get free shipping both ways! After all, why pay more if you don't have to?"  Not only do your customers know that shipping is free, but it also reinforces the message that they shouldn't have to pay for the service anyway. Many businesses offer this service, but only you are telling the customers why they deserve it. 

Machines will create 58 million more jobs than they displace by 2022, World Economic Forum says. In the next four years, more than 75 million jobs may be lost as companies shift to more automation, according to new estimates by the World Economic Forum. But the projections have an upside: 133 million new jobs will emerge during that period, as businesses develop a new division of labor between people and machines. The Future of Jobs Report arrives as the rising tide of automation is expected to displace millions of American workers in the long term and as corporations, educational institutions and elected officials grapple with a global technological shift that may leave many people behind. The recently-published report envisions massive changes in the worldwide workforce as businesses expand the use of artificial intelligence and automation in their operations. Machines account for 29 percent of the total hours worked in major industries, compared with 71 percent performed by people. By 2022, however, the report predicts that 42 percent of task hours will be performed by machines and 58 percent by people. Previous research offers mixed forecasts on the effects of automation on jobs. It’s unclear whether the new jobs created by innovative combinations of

automation and human workers will offset the displacements. But the World Economic Forum report confirms that a key challenge for grappling with the future of work will be equipping staff with new skills and fostering workplace flexibility. “To prevent an undesirable lose-lose scenario — technological change accompanied by talent shortages, mass unemployment and growing inequality — it is critical that businesses take an active role in supporting their existing workforces through reskilling and upskilling, that individuals take a proactive approach to their own lifelong learning and that governments create an enabling environment, rapidly and creatively, to assist in these efforts,” the report said. The report’s projections mainly represent roles gained and lost within large multinational corporations. Another analysis that focuses on small and medium-size businesses or certain sectors, such as health care and education, may show greater potential for new jobs, according to the report. ■

I hope that I've inspired you to increase your business's growth potential through email marketing. Consider it as another level of your marketing campaign. It doesn't take any money to get started, only your time and a keen sense of your customers' needs to produce effective and lasting results. ■

6

www.SalinasChamber.com

OCTOBER 2018


Retirement Plan Distribution Options You’ve worked your entire career accumulating your retirement nest egg in your company’s 401(k) plan, and now it’s time to retire. The first and very important decision you will have to make is what to do with your money. In a nutshell, this will largely depend on your goals for the first few years of your retirement. Here are the options available to you and how each may apply to different retirement goals. A complete cash-out means that you receive your complete retirement plan balance in one check. This option seems attractive to some in that you receive all of your retirement assets in one check and get immediate use of all the funds. The downside about this option is that the entire distribution is taxable in the year received for both federal and state income tax purposes. Payment of these income taxes usually comes from the retirement assets that have been accumulated which can significantly deplete your retirement nest egg before you’re even one year into retirement. Let’s say your retirement goals include beginning to draw a monthly income from your nest egg right away upon retirement.

Rollover to an IRA The most common approach here is to roll your entire retirement plan balance to an IRA, and then schedule the monthly income you wish to receive. This type of distribution can be accomplished in one of three ways, depending how your company’s

Photo by Batista Moon Studio

Complete cash out

retirement plan elects to make them. Some Bill Hastie plans make a direct transfer from the plan to your designated IRA, so you never touch a physical check. This is often the simplest and most direct way to receive your retirement distribution. Other plans elect to make the distribution check payable to your IRA company and will send the check to you. It is then your responsibility to send the check to your IRA company for deposit into your IRA. In either of these distribution options, the distribution does not create a taxable event for you. Income taxes continue to be deferred once the money is deposited in your IRA. The third distribution method is when the plan makes the distribution check payable to you – if this happens, there are two critical issues to be aware of. First, make certain the plan knows (by way of your distribution election form) that you are rolling your money over to an IRA so that federal income taxes are not withdrawn from your distribution. Second, you have 60 days during which to get your distribution deposited into your IRA, otherwise the distribution becomes taxable. For these two reasons, this is most often the least desirable option for rolling your distribution over to an IRA. A final option is not to take your distribution when you retire. As long as you have at least $5,000 in the retirement plan, you can leave your assets in the plan until you wish to begin receiving a monthly income. At that time you can request one of the distribution options noted above. As always, consult with your financial advisor to discuss your best course of action.

Photo by Batista Moon Studio

by Bill Hastie, MBA

Stephanie Chrietzberg , SVP Business Development; Sarah Gaebelein, VP Commercial Loan Officer; Clarissa Rowe, VP Community Relations Officer; Charles T. Chrietzberg Jr., President, CEO; Kathy Torres, VP SBA Loan Officer

GREAT FINANCING SBA LOANS

Funds can be used for Working Capital, Machinery & Equipment, Furniture & Fixtures, Land & Building (including purchase, renovation and new construction), and leasehold improvements • • •

New Business Start Up Business Acquisitions Existing Business

• •

Commercial Property Purchase or Refinancing Secured Term Loans to Businesses for Purchase, Expansion or Refinancing

Call Our BANKING Team TODAY!!! Monterey (831) 649-4600 Pacific Grove (831) 655-4300 Carmel Rancho (831) 625-4300 Salinas (831) 422-4600

Bill Hastie, MBA is the Founder of locallyowned Hastie Financial Group. If you would like to discuss your personal or company’s investment needs, please contact Bill at William.Hastie@lpl.com ■

OCTOBER 2018

COMMERCIAL LOANS

www.SalinasChamber.com

$5,000,000 SBA Loan Limit

Oldest Locally Owned, Locally Managed Bank in Monterey County - OVER 40 YEARS! The Leading SBA Lender in Monterey County Member F.D.I.C. ⬧ Equal Housing Lender

7


Prop. 10 and CA Housing Costs by Kerry Jackson, Fox & Hounds Would Prop. 10 Reduce the California’s High Housing Costs? Basic Economics Says No. Californians will be faced with a dozen voter propositions on Election Day. None is more important than Proposition 10, which would allow local governments to enact rent control laws. The outcome will have a profound effect on California’s housing crisis. Prop 10 would repeal the CostaHawkins Rental Housing Act of 1995, which bars local governments from imposing rent control on housing units that were first occupied after Feb. 1, 1995. Properties already exempt from local residential rent-control ordinances on or before that date are also protected. Rent control has unsurprisingly become a heated issue in the state with the nation’s costliest housing. At times, the debate has turned angry. Prop 10 supporters have staged rallies and protests, some quite stormy. The fury has spilled over into the wider public. A UC Berkeley, Institute of Governmental Studies poll from last year found six in 10 likely voters favor rent control. No one would be stunned if the initiative passes. Proponents argue in the state voter information guide that “rent is too damn high!” and enacting “Proposition 10 will free our local communities to decide what rent control protections are needed, if any, to tackle the housing crisis.” The argument also gets in obligatory digs at “Wall Street corporations” and “greedy Wall Street billionaires.” These pirates, they say, are to blame for California’s steep housing costs, because they “have profited from the current system for decades.” “Greedy corporate landlords” cause suffering for those who can’t defend themselves while “big corporations” walk away with “HUGE PROFITS,” which are emphasized in all-caps in case someone didn’t get the point. The proponents’ sophistry underlines the message that it’s time for voters to act. But their arguments lack economic facts. And that’s no oversight, because the facts tell us that rent-control laws keep rents high because they artificially depress the supply of housing. Democratic powerhouse Steve Maviglio told PRI’s podcast that Prop.

8

10 “does the opposite of what it’s trying to achieve and essentially pours gasoline on the housing crisis fire in the state because it will freeze housing construction in the state.” He’s right. As any high school student who’s paid even minimal attention in economics class knows, when supply is restricted, prices rise. But that’s a classroom exercise. What of the real world? No surprise, it tells the same story. A trio of Stanford researchers who recently looked at rent control in San Francisco found that landlords who have operated under rent-control laws “reduced rental housing supply by 15 percent, causing a 5.1 percent city-wide rent increase.” Their National Bureau of Economic Research paper bluntly stated that “rental supply in San Francisco decreased by 6 percent” when rent control was expanded. It happened due to the “over-consumption of housing” by those living in rent-controlled apartments. Economists have known about the negative effects of rent control for decades.  Peter A. Tatian, a senior fellow at the Urban Institute, says that “a scan of the research literature revealed very little evidence that rent control is a good policy.” An St. John & Associates analysis found that when owners were not allowed to set market rates on rental housing, the available stock fell 14 percent in Berkeley and 8 percent in Santa Monica. Rent control also leads to the ruin of good homes. When owners are barred from raising rent, their incentive to make needed repairs disappears. A 2014 Massachusetts Institute of Technology study determined that after rent was decontrolled in Cambridge, housing investment increased there by roughly 20 percent over what it would have had rent control continued. The authors cited a 2007 paper which noted “that chronic maintenance problems – such as holes in walls or floors, chipped or peeling paint, and loose railings – were more prevalent in controlled than in noncontrolled units during the rent control era.” Hopefully voters will do some homework when they go to the polls. If they do, they might be surprised to learn that rent control isn’t really the answer to California’s housing woes. ■

#SHOPSMALL ON NOV 24

www.SalinasChamber.com

OCTOBER 2018


U.S Economic Expansion Continues, But Growth Surge May Be Temporary by Dave Kilby, CalChamber Far from losing steam, the U.S. economy has been on a solid upswing lately. But as always, a deeper look at the data suggests that there are issues to keep an eye on, according to a recent report by the California Chamber of Commerce Economic Advisory Council. The United States is currently in the midst of the second longest expansion in the nation’s history at 111 months and counting. In July of next year, we will officially be in the midst of the longest expansion on record. Below are some of the highlights from the economic report. A Deeper Look Consider some recent statistics. • U.S. gross domestic product (GDP) growth in the second quarter came in above 4%, the best reading since 2014 and driven by strong growth in business and consumer spending. • Industrial production is up 4% from one year ago—another recent best. • Employment growth over the last 3 months has totaled more than 200,000 jobs added per month, even with unemployment below 4%. More importantly, the job openings rate is at 4.2%, suggesting that employers would hire even more workers, if they could find them. Temporary Surge As positive as all this news is, don’t be fooled into believing the U.S. economy has truly achieved a new pace of growth. Scratch away at the surface and there are any number of reasons to conclude that the current growth surge is, at best, temporary. At worst, the seeds of the next recession are possibly being sown in these current numbers. • First, we need to take a bit of a gut check on the recent numbers. The 4.1% growth rate in the second quarter was certainly impressive. But most of that growth came from a surge in consumer spending—an anticipated surge given the weak first quarter for consumer spending growth. • Second are the international trade battles currently in play. While the problems with the European Union seem to be on hold for the moment, the U.S. disputes with China are growing worse with both sides continuing to ratchet up the tariffs being levered on the other. Much has been made of the effects on U.S. exporters to China, particularly those that export agricultural products. But the U.S. imports almost four times as much from China as it exports to them. And what we do import are critical components of U.S. supply chains. As solid as industrial production looks from a growth perspective, recent data suggests overall production is starting to plateau. • Lastly, there is the Federal Reserve. Inflation has heated up as of late with the Consumer Price Index (CPI) getting close to 3%, the fastest since 2011. Beacon Economics, however, still doesn’t believe there is a real chance of higher permanent inflation. M2 growth remains below 4%, and bank lending is tepid.

OCTOBER 2018

State Forecast: OK for Now With two quarters down and sights turning toward the last part of the year, it is apparent that the California economic engine continues to hum along, much like the nation as a whole. Job gains have been steady and the state’s leading industries have expanded despite ongoing concerns on the international trade front. Still, good news notwithstanding, anxieties linger about California’s extremely tight housing market and the resulting affordability challenges it presents, and the long-term consequences of slow growth in the state’s labor force. 2018 Shaping Up to Be Good Year California continues to land in record territory, with its unemployment rate at 4.2% for the fourth month in a row as of July 2018. At the same time, job growth so far this year has outpaced 2017 by a slim margin, with wage and salary jobs in July increasing by 2.0% or 332,700 jobs compared to one year earlier. Steady Job Gains Similarly, headline numbers for California’s gross state product (GSP) and taxable receipts reveal continued growth in the statewide economy in the first part of the year. Both the coastal and inland regions of the state have enjoyed economic and job gains for several years running. Through the first seven months of this year, every metro area in California experienced job growth. Housing: Mixed Performance California’s housing market has been a mixed bag so far this year. According to the California Association of Realtors, the monthly median home price in California finally surpassed its pre-recession peak earlier this year, a long-awaited milestone that signifies how far the market has come. The median price in the state was $591,460 in July, up 7.6% year-to-year, continuing a string of yearly price gains going back several years. Still, home sales have been average, at best, and disappointing when considered against the backdrop of the state’s long economic expansion. New home construction moved up a notch in the first half of this year compared with last year, a development that should also temper, but not halt, price increases. Overall, housing permits rose 9.4% in the first half of 2018 compared to one year earlier, with increases of 7.3% in single-family permits and 11.4% in multi-family permits. The state is on track to add about 130,000 new units this year, still far below its needs, which are closer to 200,000 units annually. As long as home construction lags behind what the state needs, high housing costs will be a painful thorn in the side of the California economy. Long-Run Concerns Linger High housing costs impede California’s economic growth over the long term to the extent that these costs serve as a deterrent to labor force growth. As growth in the state’s labor force slows further, it will tighten like a noose on the economy and limit future growth and business development. ■

www.SalinasChamber.com

9


Supreme Court Rules on Arbitration Agreements by Terry O'Connor, Noland, Hamerly, Etienne & Hoss Background : Since 2012, the National Labor Relations Board (NLRB) has held that class and collective action waivers violate employees' rights under the National Labor Relations Act (NLRA). Over the years several Circuits including our own Ninth Circuit have supported the NLRB's position by holding that class action waivers between companies and their workers violate the NLRA by limiting employees' right to engage in concerted activity.  In Epic Systems Corp v. Lewis ("Epic"), the U.S. Supreme Court held that the Federal Arbitration Act (FAA) requires arbitration agreements containing class action waiver to be enforced and that the NLRA contains no legislative mandate prohibiting such waivers. The Epic Decision: The federal courts barring class waivers focused on the FAA's "savings clause" which allowed attacks on arbitration agreements on "grounds as exist at law or in equity for the revocation of any contract." The Supreme Court recently held that this savings clause only recognized general contract defenses such as fraud, duress and unconscionability.  The plaintiffs in Epic had attacked the class action waiver clauses as unlawful only because the agreements mandated individual arbitration.  As Justice Gorsuch noted, "the savings clause cannot save [plaintiffs’] cause."  The Court held that the NLRA's Section 7 protects employees' rights to organize and bargain collectively, but those rights do not include the right to participate in class actions.  Justice Gorsuch also impliedly mocked the NLRB (a notoriously political agency) for "discovering" 80 years after the NLRA was written and 90 years after the implementation of the FAA, that the NLRA superseded the FAA.  While the NLRB may be entitled to deference in its opinions when it interpreted the NLRA, it was not entitled to any deference when it interpreted a law (FAA) that it did not administer.  According to the Supreme Court majority, such analysis should be left to the courts. Wage and hour class actions are still plaguing California employers.  The threat

10

of a costly class action greatly strengthens the hand of individual Plaintiffs to leverage huge settlements. All employers of any size should strongly consider implementing arbitration agreements with class and collective action waivers.  Such agreements do need to be reviewed by experienced employment counsel to ensure that they are neither unconscionable nor obtained through fraud or duress. Notwithstanding the Epic decision, the California Legislature recently passed a bill to limit arbitration agreements and settlement agreements in an effort to please plaintiff-side attorneys. On August 22, the California Senate passed AB 3080 to limit the use of Settlement Agreements and Arbitration Agreements for labor and employment claims. In an effort to respond to the #MeToo movement’s opposition to non-disclosure agreements in settlements of sexual harassment and retaliation claims, this bill will ban such non-disclosure language. AB 3080 would also prohibit any arbitration agreements made as a “condition of employment” for any claims arising under the California Labor Code or the Fair Employment Housing Act including class action waivers which, as noted above, are crucial to prevent frivolous claims. In my opinion AB 3080 is clearly preempted under the Federal Arbitration Act (FAA) and is only intended to benefit trial attorneys seeking class action litigation who coincidently generously support such bills in the Legislature. Since both the California Supreme Court and the U.S. Supreme Court in Epic Systems have unreservedly approved use of arbitration agreements which include class action waivers of employmentrelated claims, it will be interesting to see if Governor Brown will let AB 3080 perish on his desk or let it be summarily struck down in the courts. ■ Mr. O’Connor has a general employment practice that emphasizes counseling and representing business owners in employment practices. This article is intended to address topics of general interest and should not be construed as legal advice. © 2018 Noland, Hamerly, Etienne & Hoss

Advanced Solutions from f your y locally owned business neighbors. Interactive Touch Display p y Simply p y touch a TRUTOUCH H display p y and experience p an incredible p presentation platform.

From large copiers to small laser printers!

Document Solutions with leading edge technology for your growing office needs. 

Air Print Wireless

Scan Solutions

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

OCTOBER 2018


Healthier Drinks for Kids by John Myers, LA Times Milk and water will be default drink options for California kids' meals starting in 2019 Restaurants in California that sell special meals for children will have to offer milk or water as the default drink option beginning in 2019, making sodas and sugary drinks available only by request. The law, signed Thursday by Gov. Jerry Brown, follows ordinances enacted in a number of cities and counties around the state in recent years. Some fast-food and dine-in restaurants have voluntarily changed their kids’ meals, and the new law had no formal opposition as it made its way through the California Legislature. “Our state is in the midst of a public health crisis where rates of preventable health conditions like obesity and Type-2 Diabetes are skyrocketing, due in large part to increased consumption of sugary beverages,” state Sen. Bill Monning (D-Carmel), the law’s author, said in a written statement. “This bill is an important part of a statewide public health strategy that will better inform consumers about the unique impacts that sugary

beverages have on their health and that of their children.” Under the new law, kids’ meals will have to be served with milk, a nondairy alternative of less than 130 calories, water or flavored water with no added sweeteners. The financial penalty for a restaurant that breaks the new law is minor. The business will receive a written notice on the first violation. Additional violations over a five-year period would result in fines starting at $250, but only a single fine would be assessed per inspection. The law follows the trend set in some communities and by some national fast-food chains, but it also goes further by banning even watered-down fruit juice as a default drink option. ■

U.S. Household Net Worth Neared $107 Trillion The total net worth of U.S. households rose farther into record territory in the second quarter, propelled by climbing home values and stock prices. Household net worth—the value of all assets such as stocks and real estate minus liabilities like mortgages and credit-card debt—rose by nearly $2.2 trillion in the second quarter to

OCTOBER 2018

a record $106.929 trillion, according to a report by the Federal Reserve on Thursday. That marked a 2.1% increase from the first quarter and the eleventh straight quarter of rising U.S. wealth. The figures are from a quarterly report known as the Flow of Funds, which tracks the aggregate wealth of all U.S. households and nonprofit organizations. The report provides no details of how that wealth is distributed between households. The figures aren’t adjusted for inflation. ■

FREE PRESEN TATION

Take A Deep Breath eath

Avoiding, Detecting and Beating Lung Cancer Find out your risk, learn about advanced technology for early lung cancer detection and how to avoid this deadly disease.

Wednesday, October 17, 2018; 6pm program RSVP required. Call 831-759-1890 or register online at svmh.com/asktheexperts

www.SalinasChamber.com

11


Retail and Services 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.

ACE Hardware AceHardware.com Alta Vista Mortuary AltaVistaMortuary.com American Cancer Society Cancer.org Discovery Shop DiscoveryShop-Salinas.org Bobcat Bicycles BobcatBicycles.com Campus Bridal Shop CampusBridalShop.com Carlon's Fire Extinguisher Sales Carlon.com Costco Wholesale Corp Costco.com

La Princesa Market LaPrincesaMarket.com

Salinas Mattress Company SalinasMattress.com

Lowe's Lowes.com

Sears Sears.com

Food 4 Less Food-4-Less.com

McWherter's Jewelers & Gemologist McWhertersJewelers.com

Smile Business Products SmileBPI.com

Gifts on the Go (831) 758-5118

Monterey Cleaning Service MontereyCleaningService.org

Gin's Super Market (831) 422-0841

North County Industrial Machine Shop (831) 771-2867

El Camino Machine & Welding ElCaminoMachine.com First Security Services FirstAlarm.com

Harden Ranch Plaza (PGI Mgmt) HardenRanchPlaza.com J&M Cleaning Services JMCleaningServices.net

JT Healthcare Uniforms DataFlow Business Systems JTHealthCareUniforms.com StartDBS.com Kirkorian Enterprises ShopKirkwoodPlaza.com

Northridge Mall/Starwood Retail Partners Shop-Northridge-Mall.com Office Depot/Office Max OfficeDepot.com

Star Market StarMKT.com Struve & Laporte Funeral Home struveandlaporte.com Swenson & Silacci Flowers OnlineFowers.com The Home Depot HomeDepot.com Turner's Outdoorsman Turners.com

Peninsula Business Interiors Wal * Mart North Main PBIFurniture.com Wal-Mart.com

A Special Thanks to Our Strategic Partners and Stakeholder Members

12

www.SalinasChamber.com

OCTOBER 2018


New Member Profiles Adaptive Information Systems We build scalable solutions and network architecture that will grow your business and make the most of your investment. Whether adapting your existing structure and equipment for compliance and peak functionality or designing an entirely new network to take your organization to the next level, your business goals remain the priority. We adjust the technology and our approach to achieve the results you need. Adaptiveis.net • (831) 644-0300 support@adaptiveis.net

Pearl Dentistry Pearl Dentistry is a state of art dental office which recently opened its door in the heart of Salinas. We provide our patients the finest dental care by providing a warm, welcoming and family oriented atmosphere. Our professional team is committed to provide you the best dental care. We aim to create an office atmosphere that changes the way you think about dentistry by providing a trustworthy and reliable experience that you and your family can enjoy. 1710 N. Main St. • (831) 200-4000

Alterra Home Loans Rossy Santamaria believes success comes from the personal commitment she has to her customers, referral partners and family. With 20 years of experience in the mortgage industry, she works hard for each of her customers. She offers clients security and peace of mind as they navigate the complex and ever-changing mortgage loan market. “Buying a home is the largest purchase most people will make in their lifetime and I feel honored to be a part of the process from beginning to end.” (831) 917-0021 Rsantamaria@goalterra.com 14 Maple St. Ste. B, Salinas

Central Coast AVL Central Coast AVL is dedicated to providing you and your guests with a memorable experience that will remain beyond your event. Up-Lighting can bring any room to life. Add a personal and elegant touch to your event with Monograms or HD Monitors. PhotoBooth-Completely Touch Screen; easy to use, even though there is a Host for you. Insanely fast classic double strips printed and automatically cut in only seconds. www.DJGalaxyMusic.com • (831) 293-7070 Admin@CentralCoastAVL.com

Monterey County Pops! Monterey County Pops! is an orchestra dedicated to bringing pops and patriotic music performed by professional musicians to the families of Monterey County while engaging and educating under-served youth of our community. We present 8-12 free professional performances each year at various locations on the Monterey Peninsula and in Salinas and the Salinas Valley.  These performances take place in informal settings appropriate for families and always include guest youth performers whom we are mentoring. MontereyCountyPops.org (831) 484-5511 Carl@MontereyCountyPops.org

OCTOBER 2018

Tope's Tree Service We are a family owned and operated full service tree company, providing professional tree care to the Central Coast since 1979. Being a family owned and operated company means we provide a more personal touch to all your tree care needs. Thank you for considering Tope’s Tree Service for your tree care needs. We service the Tri-county area. Our goal is to provide quality tree care to the community at affordable rates. Customer satisfaction is our number 1 concern, that’s why your satisfaction is guaranteed with all of our services. We take pride in quality tree care with a certified arborist on site daily, ensuring all work is to the highest standards. If you have any questions or comments, feel free to contact us. (831) 373-7765 • TopesTreeService.com 650 E. Franklin St., Monterey

TPO TPO is a Human Resource Management. Since 1991, TPO is a Human Resource Management firm based in Monterey, California. We are a team of highly experienced, certified HR professionals and Licensed Private Investigators (Lic: PI-25638). We partner with our clients to provide the expert support and advice they need to comply with complex State & Federal employment regulations, achieve positive employee/management relations and optimize organizational effectiveness. www.tpohr.com • (831) 647-7292 AmberA@tpohr.com

www.SalinasChamber.com

Follow us on Social Media

Salinas Valley Chamber of Commerce @SalinasChamber Salinas Valley Chamber of Commerce

13


Chamber Events

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! Chamber Mixer - WeatherTech Laguna Seca

Example of Electrolier shown in Main Street photo.

100 Years Ago, Main Street lights were changed from gas to electricity. At about the same time that the City of Salinas was converting Main Street’s street lighting from gas to electricity, we find this entry in the Salinas City Council Minutes Book No. 3: City Hall Salinas City, Cal. January 7, 1918 The Council of Salinas City met in regular session in the Council Chambers on the City Hall in Salinas City, California, on January 7, 1918 at eight o’clock P.M. Present the Mayor G. A. Daugherty and Councilmen J.P. Nichols, Walter Wallace, W. A. Anderson, C.B. Outhier, J.N. Anderson, W.C. Hill, S. Bullene and W.H. Hughes. A petition from Ford & Sanborn Co. for permission to erect two Electroliers in front of their premises on the South side of Gabilan Street between Main and Salinas Streets, to be of the same style and pattern as those now being erected by the City on Main Street and to be erected in accordance with the plans and specifications for those now being erected on Main Street, was received, and on motion made and carried such permission was granted, and permission was also granted said Ford & Sanborn Co. to pay its pro rata of the cost and expense of lighting and maintaining said two Electroliers.

14

Connect at Lunch – Black Bear Diner

California Unemployment Rate Steady At 4.2 Percent In August California's unemployment rate remained at 4.2 percent in August. The state Employment Development Department says the rate has held steady for five months. The department says California added 44,800 nonfarm payroll jobs in August, for a total gain of more than 3 million jobs since economic expansion began in February 2010. ■

www.SalinasChamber.com

OCTOBER 2018


Chamber Ambassador

Krishna Patel

Krishna Patel is the Financial Controller for Allen Brothers Oil, doing business as Valvoline Instant Oil Change. She enjoys living in Salinas for its abundance of fresh produce, yet also enjoys the breathtaking views on the Peninsula. She is pictured here at her “happy place” – the Monterey Bay Aquarium – because it’s okay to be a kid at heart! Valvoline Instant Oil Change is a new name for Salinas. You might recognize the name Oil Can Henry’s – yes, those guys with the bow ties & caps. The former Oil Can Henry’s at 1042 N. Davis Road has a fresh new look and is now fully rebranded. Even though there is a name change, it’s important to

remember that the owners, employees, policies and trusted service are still the same. What differentiates us is simple - you can stay in your vehicle during the service. A monitor near the driver’s window shows multiple camera angles so the customer can see the services being performed. After all, the Valvoline motto is “Service You Can See. Experts You Can Trust.” From the moment you enter the bay, a typical service could take 15-20 minutes. Valvoline Instant Oil Change services include oil changes, transmission, radiator, gearbox and AC services, wiper blade, air filter, light bulb and serpentine belt replacements. Valvoline has spent more than 140 years under the hood perfecting their lubricants to improve vehicle performance. Valvoline Instant Oil Change is part of that rich heritage. When you drive into a Valvoline Instant Oil Change service center, you’re part of that heritage too... so come visit us and be a part of our family. ■

SER

VING T

H

NTRAL C O

EA

RS

OCTOBER 2018

2.7%, the Labor Department said Tuesday. The benefit gain was driven by a nearly 12% increase in bonuses and other forms of supplemental pay. Paid leave, including vacation time, rose 4% in June from a year earlier. The trend extends a longrunning but slow shift in compensation toward benefits and away from baseline salaries. “Bonuses and supplemental pay speak to labor market conditions, and workers are in a good spot to get a little more,” said Ryan Sutton, a district president for staffing agency Robert Half. “Companies are still reluctant to move base wages up too much. It’s a lot harder to take that away than bonuses.” ■

CE

T FOR 90 Y

U.S. employers are boosting benefits—including bonuses and vacation time—at a faster pace than salaries, a move that gives them more flexibility to dial back that compensation if the economy turns sour. The cost of benefits for privatesector employers rose 3% in June from a year earlier, while the cost of wages and salaries advanced

E

AS

Employers Choose Bonuses Over Raises

Client Focused. Relationship Driven. A Tradition of Excellence Since 1928 Agriculture Law Business & Taxation Construction Creditor’s Rights Estate Planning Labor & Employment Litigation Personal Injury Public Agencies Real Estate & Land Use

www.SalinasChamber.com

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

nheh.com

15


Focus on Non-Profits In 2004, the Future Citizens Foundation (FCF), a youth development organization, began operations as The First Tee of Monterey County. Future Citizens Foundation’s mission is to offer young people of Monterey County opportunities for a better future. Clearly meeting a community need, to date FCF has impacted the lives of more than 60,000 youth, their families, and the neighborhoods in which they reside. After only two years of opening, FCF had enrolled 960 program participants in Salinas, South County, and the Peninsula. Today, FCF serves more than 8,500 children, youth, and young adults annually due to large partnerships with area school districts for both during and after school programming and growing opportunities for young adults still in need of guidance and support. To fulfill our mission, a continuum of character development services is 6,500 children in grades 4-6 reached through The First Tee of Monterey County daytime programs and conducts more than 200 classes Monday-Friday at 20 local schools.

provided to participants through an evidence-based curriculum (The First Tee of Monterey County), a full college scholarship program for first generation students (Pay It Forward Scholarship & Mentoring Program), and a state-of-the-art center for learning (Taylor Farms Center for Learning). If you would like to support our efforts to provide programs throughout Monterey County that work to break down barriers, enable children to experience success, and support them in planning a productive future please call (831) 800-3455 or visit our website www.fcf-ca.org.

$2.1M in scholarships awarded to scholars of the Pay It Forward Scholarship & Mentoring Program and over 45% of our graduates have graduated with honors.

541 youth served at the Taylor Farms Center for Learning in our first year. The center offers programs in three primary focus areas of: Academia, STEAM, and Life Exploration and Preparation.

Non-Profit Calendar Oct. 3 - Dec. 1:

Volunteer Income Tax Assistance (VITA) program training 8am-5pm CSUMB BIT Building 3052 Divarty St, Marina Non-Profit: United Way Monterey County 831-372-8026 x114 UnitedWayMCCA.org/vita-volunteer-opportunities

Oct. 6:

Fall Festival 11am-3pm 345 E. Alvin Drive Non-Profit: Hearts and Hands Preschool 831-449-7536 HHPreschool.com/hearts-hands-north-salinas

Oct. 6 - Oct. 20:

Schoolhouse Rock Live! 2pm & 7pm 320 Main Street, Salinas Non-Profit: ARIEL Theatrical 831-775-0976 • ArielTheatrical.org

Oct. 10:

Info Session 5:30-6:30pm Union Bank Community Rm- 615 Abrego, Monterey Non-Profit: CASA of Monterey County 831-455-6800 x31 CASAOfMonterey.org

16

Oct. 14:

Oct. 22:

Oct. 14:

Oct. 22:

Central Coast Motorsports Spectacular Gates-noon, Event-2pm 1034 N. Main St. Non-Profit: California Rodeo Inc. 831-775-3100 • SalinasSportCcomplex.com Kidrageous- Super Fun Run 8am-12pm 368 Santana Roe, San Jose Non-Profit: Jacob’s Heart 831-724-9100 • JacobsHeart.org/fun-run

Oct. 15:

Showing of Take My Eyes 6pm Maya Cinemas- 153 Main St. Non-Profit: National Steinbeck Center 831-775-4721 • Steinbeck.org

Oct. 20:

Fall Open House 12-2pm 938 S. Main St. Loaves, Fishes & Computers Non-Profit: 831-393-9260 LoavesFishesComputers.org

Oct. 21:

The 5th Annual Kidrageous Golden Gallop 11am-4pm Monterey’s Custom House Plaza Non-Profit: Jacob’s Heart 831-724-9100 • JacobsHeart.org/gallop

www.SalinasChamber.com

Info Session 6-7pm Martinez Hall, 220 12th St, Seaside Non-Profit: CASA of Monterey County 831-455-6800 x31 • CASAOfMonterey.org Showing of This Boy’s Life 6pm Maya Cinemas- 153 Main St. Non-Profit: National Steinbeck Center 831-775-4721 • Steinbeck.org

Nov. 2

&3

The Three Piggy Opera 2pm & 7pm 320 Main Street, Salinas Non-Profit: ARIEL Theatrical 831-775-0976 • ArielTheatrical.org

Nov. 11:

Bubbles & Bags 1-4pm The Inn at Spanish Bay, Pebble Beach Non-Profit: Girls Inc of the Central Coast 831-772-0882 • girlsinccc.org

Nov. 28:

“Give and Get” Luncheon 12pm-1pm Corral De Tierra - 81 Corral de Tierra Rd. Non-Profit: Legal Services for Seniors 831-899-0492 • legalservicesforseniors.org

OCTOBER 2018


Chamber Events - Ribbons Cuttings

Rossy Santamaria from Alterra Home Loans celebrates her new business in Salinas with an open house.

Pearl Dentistry has expanded their locations to Salinas. Congrats!

Congressman Jimmy Panetta does the honors as HUB International Insurance Services celebrates serving the community for 130 years (formerly Monterey Insurance Agencies). Photo by Julie Ahearn

Salinas Valley Dental Care offers astonishingly good customer service at their facility at 1211 S. Main St.

In Chinatown, the Monterey County Housing Authority Development Corporation (HDC) opened Hikari, the final phase of the four-phase Haciendas affordable housing development.

Please welcome the dynamic duo - Kristen Edgar and Lupe Ruiz, owners of Virtuous Tax & Financial.

OCTOBER 2018

www.SalinasChamber.com

17


Real Estate Purchase Agreements by Patrick Casey A real estate purchase agreement is a contract between a seller and buyer for any type of real estate including vacant land, agricultural land, a condominium, commercial property or a residence. Regardless of the type of real estate, all real estate purchase contracts have some essential elements to them. The first element is to accurately describe the real property. This can be done through either a street address, a legal description or a reference to a particular parcel on a recorded parcel map. An Assessor’s parcel number by itself is insufficient to describe the real property. If there is uncertainty as to how to describe the property, a title company or a real estate attorney can help with the description. The next element is the price. The contract typically states a set price for the real estate. Sometimes, the price may be a price per acre and the parties have the property surveyed to determine the total number of acres. On rare occasions, the price may be determined by an appraiser. The purchase agreement will give the buyer a certain period of time to conduct its due diligence investigation into the property. This investigation can include reviewing a preliminary report for the property, conducting various inspections and tests, and reviewing leases, rent rolls and various disclosure documents from the seller. The buyer may also have a phase 1 environmental site assessment and a survey done.

The seller’s representations and warranties are one of the most heavily negotiated provisions of the purchase agreement. Representations and warranties are the seller’s promises as to certain aspects of the property. Typical representations and warranties include: the seller having good title to the property; the seller having authority to sell the property; whether there are any leases, any options or rights of first refusal; any lawsuits, third-party claims or disputes related to the property; any hazardous materials or governmental investigations or proceedings; and other such items. The purchase agreement will then state certain seller and buyer closing conditions, which conditions must be satisfied prior to the closing date in order for the parties to be obligated to proceed with closing. Typical seller closing conditions include the buyer having removed all conditions to closing and the buyer having deposited the full purchase price and signed all escrow closing documents. Typical buyer closing conditions include that the title company will issue a satisfactory title insurance policy, all seller’s representations and warranties remain true as of the closing date, the buyer having obtained financing, there have been no material changes to the condition of the property and there have been no adverse actions (such as lawsuits) initiated relating to the property. Finally, the purchase agreement will state the closing date and each party’s obligations to sign escrow closing documents and deliver certain items to the escrow holder. The parties can then proceed to close escrow. ■

Member News Hicks Celebrates a Century James F. Hicks, O.D. and those who have owned the same optometry practice before him have shown dedication to serving our community for 100 years. Like the Salinas Valley Chamber of Commerce, Doctor Hicks is celebrating his practice’s century of service this year. In 1918, Richard Hitchcock of the Hitchcock Family Ranch opened an optometry practice that is still operating today. He spent seven years as an optometrist until he returned to working on his ranch and sold the practice to Bard Daughters. In 1955, Bard Daughters was the Salinas Valley Chamber of Commerce’s 35th Board Chair. In 1963, James F. Hicks started practicing optometry as an associate doctor in Daughter’s practice until he bought the practice in 1969. You can still find Dr. Hicks treating patients in his Salinas office at 262 San Jose St. Ste. A. Dr. Hicks enjoys getting to know his patients and their families. He has participated in local organizations including the Salinas Rotary- Downtown Club, the Colmo del Rodeo Association, and the Salinas Jaycees. He is proud that the practice has thrived for a hundred years and will continue serving residents for many years to come.

Can you believe Dr. James Hicks has been practicing since 1963? To help you out with the math, that’s 55 years!

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.

18

www.SalinasChamber.com

OCTOBER 2018


October November December 2018 Oct

12

Montage Wellness Center 1910 N. N Davis Rd. Rd Thurss., November Noovember m 15 5:300 –7pm

Ribbon Cutting – Songbird Care Homes 3-6pm 15961 Toro Hills Ave., Salinas

Ribbon Cutting – Lopez Tax Service, Inc.

Oct

Laurel Inn Mixer

Oct

Ambassador Committee Meeting

Nov

Connect at Lunch – Buffalo Wild Wings

Nov

14

Combined Government Relations and BDC Meeting

Nov

Montage Wellness Center Mixer

Nov

Ambassador Committee Meeting

Dec

Connect at Lunch- InterContinental – The Clement Monterey

18 22 7

15 26 5

Dec

12

Featured Non-profit Featured Non-profit

Oct

17

The Salinas Valley Chamber and the Monterey County Cannabis Industry Association are teaming up for a joint mixer. Meet others in the business community who want to form a professional network.

5-7pm 265 Reservation Rd., Suite M., Marina

The Salinas Valley Chamber and the Grower-Shipper Association are joining together for a mixer. Grow your professional network and learn tips for achieving optimal health.

Laurel Inn Conference Center 801 West Laurel Dr. Dr Thurs urs., October Octoob Oc ber 18 1 5:300 –7pm

5:30-7pm 801 W. Laurel Dr 12-1pm Chamber office

12-1pm 1988 N. Main St.

11:30am-1pm Chamber office

5:30pm-7pm 1910 N. Davis Rd. 12-1pm Chamber office

12-1pm 750 Cannery Row, Monterey

Government Relations Committee (GRC) Meeting 11:30am-1pm Chamber office

OCTOBER 2018

The only cost is what you order

www.SalinasChamber.com

19


GROWTH STARTS SMALL. Rabobank America.com/Grow Personal Banking I Business Banking I Home Lending I

20

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

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

Salinas Main 301 Main Street (831) 737-1213

Castroville 10601 Merritt Street (831) 633-3302

King City 532 Broadway (831) 385-4144

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

Gilroy 805 First Street (408) 842-1938

Monterey 439 Alvarado Street (831) 242-2000

Seaside 1658 Fremont Blvd. (831) 394-6900

Gonzales 400 Alta Street (831) 675-3637

Pacific Grove 561 Lighthouse Avenue (831) 649-5010

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

www.SalinasChamber.com

Food & Agriculture Watsonville 1915 Main Street (831) 768-2668

OCTOBER 2018

Profile for salinaschamber

October Business Journal  

October Business Journal  

Advertisement