September Business Journal

Page 1



Marketing 101 P.6

Troubling Signs for CA Real Estate

| Investment Advice P.7


Cost of Tariffs


| Upcoming Events P.19

City of Salinas Employee Vacant Historic Buildings Overtime Study Get Chance at a New Life In the Chamber’s “City Budget Crisis” article series, we reported back in February 2018 that, over the last nine years, the City of Salinas has spent an average of $5M per year on overtime. The vast majority of that overtime comes from just two departments: Police and Fire. Police Department overtime costs have averaged $3.1 million per year, while the Fire Department costs have averaged $1.9 million. The City of Salinas hired consultants to study these departments’ overtime costs, analyze the roots, and make recommendations on how they could be reduced. For last year, the Police Department came in below their budgeted overtime allotment. Regardless, there were still recommendations made for improvement, which we’ll share next issue. The City paid nearly $100k to retain The Center for Public Safety Management to deliver a detailed, 86-page overtime report for the Fire Department. For this article, we only have space to share an overview of the analysis and the 16 cost-saving recommendations made by the consultant. Next issue, we’ll delve into more detail about a few of these recommendations that can help the City deal with these costs. If you’d like to see the complete report, please visit the City’s website or contact the Chamber and we’ll share it with you.

by Kevin Dayton, Chamber Board

The amount of overtime expended by the SFD saw a dramatic increase between FY 2013-14 and FY 2016-17. In FY 2013-14 total overtime costs for shift personnel was $1.9 million. In FY 2016-17 these costs exceeded $3.2 million, a 61 percent increase from the FY 2013-14 level. In this four- year period, overtime expenditures averaged $2.6 million annually. We found that minimum staffing overtime accounts for the largest portion of total overtime costs, nearly 69 percent. Included in the overtime calculations is the cost for holiday pay. In Salinas, line fire personnel work the normal city holidays and in lieu of receiving time off they receive 11.2 hours of straight pay for each holiday. Annually, this equates to approximately $335,000 in additional pay; for accounting purposes this is recorded as overtime hours (nearly 13 percent of the total overtime expenditures). In addition to the overtime that is paid for additional hours worked beyond the normal workweek, firefighters also receive FLSA (Fair Labor Standards Act) overtime for those hours that are worked as part of the normal workweek. FLSA specifies that firefighters can work up to 53 hours each week before an overtime

There’s a vision in Salinas to see the city’s many beautiful but vacant or underused historic buildings converted into restored buildings suitable for residential use. Recently, the Salinas City Council voted unanimously for a city “adaptive reuse” ordinance to streamline efforts to bring these older, appreciated properties back to new life in the 21st century. The Salinas City Center Improvement Association and Salinas Valley Chamber of Commerce supported the ordinance. At the City of Salinas staff level, Community Development Director Megan Hunter was a leading intellectual influence behind it. She saw a similar ordinance transform neglected historic properties in Downtown Los Angeles and wanted to see the idea adopted for Downtown Salinas. Buildings that could benefit from this ordinance include beautiful historic structures such as the underused Rabobank Building, the vacant Bruhn Building, the vacant Salinas Californian Building, and the vacant Old Monterey County Jail. The Worthington Law Centre at 215 West Alisal Street is likely to be the first adaptive reuse project performed under this new law, followed by the Rabobank Building. In fact, the Rabobank Building was designated as a Historic Resource by the city’s Historic Resources Board in August. This building is now also eligible for the city’s Mills Act tax break (a new program reported in the Chamber’s April 2018 Business Journal). Meanwhile, the Chamber is tracking the redevelopment potential for other historic properties in Salinas. In a letter sent to the Salinas City Council

OVERTIME - Continued on page 4 (left)

VACANT - Continued on page 4 (right)



El Rey Theater


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Chamber Grows with Salinas for a Century


by Jim Bogart, 2018 Chamber Board Chair (& President, Grower-Shipper Association) Please allow me to start off this article by reminding you that we are already in September and our Chamber’s Centennial Gala is only weeks away, on Saturday night, October 6.

Have you bought your tickets yet? or give the staff a call 831-751-7725. We’re also happy to talk with you about sponsorships or reserving a table. Thank you for paying attention to this short commercial. It has been my pleasure to lead this important community organization in our centennial year. A lot happens in a hundred years and our Chamber has seen and been a part of many changes from what Salinas was like a century ago.

Population Changes In 1873, the Monterey & Salinas Valley Railroad become the

first narrow gauge to be operated in California. Notwithstanding that important development, the population growth of Salinas was slow and steady for most of our history, averaging 4% per year. Following World War II major urban and suburban development converted much farmland to city. The city experienced two particularly strong growth spurts in the 1950s and 1960s, and again in the 1990s and early 2000s.

Demographic Changes The 2010 United States Census reported that Salinas had a population of 150,441. The racial makeup of Salinas was 45.8% White, down from 90.3% in 1970, 2.0% African American, 1.3% Native American, 6.3% Asian, 0.3% Pacific Islander, 39.2% from other races, and 5.1% from two or more races. Hispanic or Latino of any race comprised 75.0% of our population.

Our Economy Unsurprisingly, ag has been the mainstay of our economy all along. Early on, local farmers grew mostly barley and wheat. Today, our top crops are lettuce, strawberries, broccoli and wine. It will be interesting to see what happens to our economy in the future. With some of the most fertile land in the world, it’s a safe bet that ag will continue to be the driving force. With the City’s focus on becoming the Ag-Tech center of the world, there may be some important changes afoot. Regardless of what happens, you can depend on the Chamber continuing to support our area’s economic development and making this a great place to live. ■

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


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)


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)


Kasavan (SPARC)

■ Matt






➟ OVERTIME – Continued from page 1 (left)

premium is applied. This overtime premium is typically paid at time and one-half the employee’s regular rate of pay. Most agencies, including Salinas, utilize a 56-hour schedule, and subsequently are required to pay three hours each week at the overtime premium wage for all hours worked over the 53-hour level. In FY-2016-17, the FLSA overtime paid was in excess of $187,000 and in the four-year period (FY 2013-14 to FY 2016-17) FLSA overtime averaged $180,222 annually.

➟ VACANT – Continued from page 1 (right)

RECOMMENDATIONS Sixteen recommendations are listed below and in the applicable sections within CPSM’s report to the City. These recommendations are listed in the order in which they appear in the report.   1. SFD should evaluate the options of deploying smaller, more maneuverable EMS squad units instead of engines and ladder trucks for EMS and nonemergency service incidents.  2. SFD should evaluate its current deployment practice of maintaining ALS first response capabilities on all in-service units.  3. SFD should work with the 911 dispatch center and the EMS ambulance provider to develop methodologies that improve the call screening process in order to alter response patterns when calls are determined to be minor or nonemergency.  4. SFD should consider the implementation of the Mobile Medic concept to provide nonemergency and community healthcare to its residents and visitors.  5. SFD should conduct a formal fire risk analysis that concentrates on the city’s strip commercial establishments; big-box occupancies; the downtown areas; high- rise structures; and industrial, processing, and institutional properties.  6. SFD should implement a prefire planning process for all target hazards and high-risk commercial properties.  7. SFD should create, update, and maintain a master list of properties that require prefire plans and should implement an in-service company inspections program.  8. SFD should develop an integrated risk management plan that focuses on structure and outside fires throughout the community.  9. City of Salinas should attempt to negotiate a change in the current labor agreement regarding the interpretation of “time-worked” when calculating overtime eligibility for 53-hour fire personnel and consider the exclusion of any leave time as hours worked. 10. City of Salinas should modify its deployment practices and consider a reduction in its minimum staffing policy in order to reduce annual overtime expenditures. 11. City of Salinas should reconsider its acceptance of the 2016 SAFER grant award and reduce its deployment strategy by utilizing a total personnel complement of 81 line personnel with 27 personnel on each shift. 12. The Monterey County Emergency Communications Department should institute a Quality Assurance process that reviews the performance of its dispatchers against the generally accepted performance indicators associated with POST and APOC guidelines. 13. The Monterey County Emergency Communications Department should implement a call screening and call prioritization process for its dispatching operations. 14. The Monterey County Emergency Communications Department should establish a back-up communications facility that can rapidly assume full dispatch operations as well as the receipt of incoming 911 calls in the event of a system failure or an evacuation of the existing facility. 15. SFD should discontinue the use of a firefighter recruit academy and instead require attainment of Firefighter I & II and EMT certification as employment prerequisites for new firefighters. 16. SFD should consider an over-hire process for new firefighters and place over-hired firefighters in an on-call, part-time status to be utilized to cover daily vacancies until a full-time vacancy occurs. ■


Dick Bruhn Building

in mid-August, the owners of the Bruhn Building reported that architects are revising their adaptive reuse design in response to city Planning Department comments. For example, they intend to install exact replicas of the 55 original windows on the third floor. Their plan to reuse the Bruhn Building reuse includes 28 residential units, a 3,000 square foot atrium and interior gardens, up to 7,000 square feet of office space on the mezzanine and up to 8,500 square feet of retail/restaurant/office space on the first floor along Main Street. When completed, this adaptive reuse project will a major step forward for the City of Salinas Downtown Vibrancy Plan. Meanwhile, Monterey County Supervisor Luis Alejo has championed adaptive reuse of the Old Monterey County Jail. In October 2017, the Monterey County Board of Supervisors authorized the county Resource Management Agency to issue a Request for Proposal (RFP) on reuse of the old jail. The county has not issued this RFP yet. We’ll see if the ordinance can inspire plans to reuse the El Rey Theater (now for sale at a listed price of $475,000) or the Salinas Californian building (sold by newspaper owner Gannett in 2017 and now for lease). This new adaptive reuse ordinance will help the City of Salinas with economic growth and job creation, greater housing availability, increased pedestrian and bicycle use, downtown commercial vibrancy, and historical preservation. We’ll be tracking projects as they convert from forgotten potential assets into vibrant community assets. ■

Old Monterey County Jail



Saturday, October 6, 2018

Sherwood Hall, 940 N. Main St

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

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Reception & Silent Auction Dinner and Awards Ceremony


Marketing 101

Troubling Signs for CA Real Estate

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

by Natalie Campisi of Bankrate

Where to Begin with Digital Marketing It's no exaggeration to say that digital marketing is an indispensable promotional strategy in today's highly competitive economy. Sadly, many established businesses don't employ digital marketing to remain relevant and attract new customers. The good news is that getting started with digital marketing isn't difficult. I can guarantee you that your digital marketing efforts will be off to a strong start if you do these three simple things. First, claim Your Google Business Listing - First things first, you should register your company with Google My Business. Google My Business is an online directory of commercial enterprises. After you've formally claimed your listing, your business will show up more prominently in Google's organic search results. What's more, your listing and its associated reviews will appear on Google Maps. Claiming a Google listing for your operation is a snap. Just head over to and sign up. You'll need to provide a physical location for your business as well as a few details about the outfit. If your business already appears on Google Maps, you'll need to claim it and verify that you're the owner via a PIN code. Next, build a Mobile-Friendly Website - Like it or not, a growing number of consumers do most of their online shopping using a mobile device. In fact, phones and tablets account for 55% of global web traffic as of 2018.


Consequently, you're shooting yourself in the foot as a business owner if your flagship website isn't easy to navigate on a smartphone. You can use Google's free MobileFriendly Test to assess your site's mobile compatibility. Simply go to search. to run the test on your own website. There are many free Wordpress plug-ins that will generate a mobile version of your site automatically. Alternatively, you can use a platform like Wordpress Responsive or Squarespace to deploy a site that works flawlessly on any device. Finally, establish a Social Media Presence - One of the easiest ways to reach a broader audience online is through social media marketing. Social media platforms allow brands to establish relationships, announce their latest developments and address negative reviews directly. The best thing about social media marketing campaigns is that they cost businesses so little while yielding massive dividends when executed properly. The easiest way to get started with social media is by establishing profiles on Facebook and LinkedIn. Be sure to post links to your social media profiles on your website and encourage visitors to follow you. It's important to use the same color schemes, logos and icons on all of your digital properties to reinforce your brand's identity and promote instant recognition. Finding a Helping Hand to Guide Your Efforts - While the actions outlined here are a good starting point, they're just the tip of the iceberg. Gambits like email marketing, pay-per-click advertising and video creation are equally powerful promotional strategies. If you feel like you're in over your head, hiring a digital marketing professional to show you the ropes is never a bad idea. ■

California real estate market shows troubling signs that may keep new buyers in their homes for years to come In the California real estate market the “b” word is on the minds of many: bubble. With reports of sharp declines in home sales, shrinking inventory and rising home prices, it might be an understatement to call California’s situation a puzzle, and one that may have implications for the entire country. June marked the slowest home sales month for California in four years. The state saw an almost 10 percent year-over-year drop in transactions, according to a report by CoreLogic. This number stood in sharp contrast to the record-breaking cost of new and existing houses. The median price, across the state, rose to an all-time high of $500,000. California’s trends might be exacerbated, but they’re not out of line with what’s going on in the rest of the country, says Eric Sussman, adjunct professor in accounting and real estate at UCLA Anderson. The tax bill changes limiting home equity loan interest and property tax deductions, lack of affordable housing supply, wage stagnation and higher interest rates are all problems California shares with the rest of the country, Sussman points out. However, California is unique in many ways, which means it might not be the most accurate barometer for judging the rest of the housing market. “California is California. People are always going to want to come here. We’ve got 40 million people. We’re the fifth-largest economy in the world. Global capital is going to come here. In that way, we’re different,” Sussman says. Prices are up, sales down and unemployment is low Like California, national median home prices are at an all-time high, hitting $276,900 in June. This is a 5.2 percent increase from a year earlier, according to the National Association of Realtors, or NAR. Existing national home sales were sluggish, falling 2.2 percent in June from a year ago. Meanwhile, the economy is strong. The national unemployment rate has fallen to 4 percent, which is the same on the state level for California. One problem is wages aren’t keeping pace, says Sussman. “The real wage growth is squat. It’s been persistent for some time. You’ve got wage growth running, nominally, at 2.5 percent and inflation running at 2.5 percent so you’re treading water,” says Sussman. “Those are national trends, they’re just magnified in California.”

California is getting more expensive all the time, wages aren’t keeping pace In California, price parity is higher than most of the country, according to a report by Money. The results were gathered by calculating the Census Bureau’s median income from the 2015 American Community Survey using the regional price parity method. This method shows how much cash will buy in any given area. For example, in California the median income was $64,500 but the actual value was $56,878 when you factored in cost of living. Although California is typically more expensive than the rest of the country, it does share the wage growth problem that the U.S as a whole is facing, says Danielle Hale, chief economist at “Affordability is really important in the housing market. From an economic theory perspective, when unemployment is as low as it is right now we tend to see wages start to pick up,” says Hale. “This is a question that’s been puzzling economists: Why aren’t wages growing faster? It’s hovered just under 3 percent. As mortgage rates start to move up we might see affordability become a problem nationwide.” Lack of construction and too much focus on the high-end market are two major problems, says Whitelaw. Housing starts dropped by 12 percent nationwide in June, according to a joint report by the U.S. Census Bureau and the U.S. Department of Housing and Urban Development last month. In California, single family residential construction is rising, up 16 percent in June from last year. But these gains aren’t enough to meet demand. In 2005, there were 150,000 single family residential construction starts compared with 58,000 in 2017, a 61 percent drop. “We have seen increases in construction but not at what we need. At 2007 it was at a high point. We’re not even at 30 percent of normal construction levels,” says Whitelaw. In the last recession, California’s home prices were gut-punched, taking a 42 percent hit in home values from the peak of the recession to the bottom, according to a report by CoreLogic. Since the worst days, California home prices have risen by 78 percent, just 2 percent higher than the pre-recession peak. Nobody can predict whether history will repeat itself, but today’s buyers might want to prepare themselves to stay in their homes for many years to come. ■


Investors Must Stay in Their Lane by Bill Hastie, MBA to-day volatility still exists, it’s been nothing a Bill Hastie truly aggressive investor hasn’t seen before. The real challenge seems to be with investors with moderate and conservative-risk portfolios, primarily due to the need to reduce portfolio risk using bonds in an environment of rising interest rates and inflation just beginning to rear its head. What may be a natural inclination is for this type of investor to begin to search for desired returns in other areas of the investment markets, may also cause that investor to “get outside their lane” of risk tolerance. It can be as detrimental to the investor’s overall investment strategy to seek better returns in this environment to pursue overly conservative investments (CDs, etc.) as it is to pursue investments that involve too much risk. The former may not keep up with inflation and may not generate sufficient long-term returns, while the latter may cause wide swings in portfolio value well outside the investor’s risk comfort zone. The moral of the story is, as an investor, clearly understand your longterm goals and risk tolerance, and maintain a disciplined approach to your investing. Do not fret when the market goes down for a few days, while avoiding getting too excited when the market goes up for a while. It’s called flat-lining one’s emotions. By doing so, it will help avoid the inclination to seek unwise investments that do not fit inside your portfolio. It can be very difficult at times, especially when current returns are meeting long-term goals, to remain disciplined and rely on your well-diversified, risk-appropriate portfolio to get you through the down swings in the market. 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 ■


Photo by Batista Moon Studio

For most investors, 2017 was a great year in terms of investment performance. The Standard & Poor’s 500 (S&P 500) gained more than 20%, developed foreign stocks (EAFE) were up more than 25% and the foreign emerging markets produced a whopping 38%. The bond market (Barclays Capital) also cooperated by gaining more than 3.5%. So no matter how your portfolio was allocated, from aggressive to the most conservative, it seems that most investors were very pleased with last year. Now comes 2018 and the story changes, a lot. Beginning in February, the stock market began to show signs of volatility, something we saw very little of in 2017. The foreign developed and emerging markets also started to decline, perhaps for very different reasons. The biggest story, however, may be the bond market. As the gross domestic product (GDP), the growth of the U.S. economy measured by the value of goods and services produced, began to expand, interest rates rose and bond prices began to fall. And the more interest rate-sensitive the bond, the more it fell. This investment environment has generally not played well for investors so far this year. Trade tensions and fears of a strengthening dollar have created headwinds for stock markets around the world. More aggressive investors may still find returns in mid and small cap stocks while waiting for the foreign markets to reverse course. While day-

Photo by Batista Moon Studios

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Cost of Tariffs to Growers

Google Workshop

by Robert Price, The Record U.S. agriculture had the upper hand when it came to trade with China. Then President Donald Trump made good on his promise to address the overall trade imbalance. U.S. agriculture is winning no more. A new UC Davis study lays out the dire specifics, and California growers can back it up with stories of their own frustrations. Some of them were at Murray Family Farms, east of Bakersfield, on Aug. 16 for a discussion about Trump's tariff war with China and other nations. The meeting was facilitated by the nonpartisan Farmers For Free Trade and the California Farm Bureau Federation. "These games we play do have long-term consequences," said Brian Kuehl, executive director of the free trade organization. Candidate Trump had much to say on the campaign trail about America's trade imbalance with the world and he acted on it almost immediately after moving into the White House. In one of his first executive orders, Trump pulled the U.S. out of the Trans-Pacific Partnership, a trade agreement among Australia, Canada, Japan, Mexico, Vietnam and seven other Pacific Rim countries intended to serve as a counterweight to oftenfraught trade with China. "It was a terrible move for agriculture," Kuehl said.' But then it got worse. Eighteen months later, Trump's tariff war with China and others has U.S. agriculture in a tailspin. "He called our trade with China a bad deal," Kuehl said. "We in agriculture knew that wasn't true. U.S. agriculture wins every time, every year." Not anymore. A new study by the Agricultural Issues Center and Department of Agricultural and Resource Economics at UC Davis puts dollar figures on the tariff war's impacts. The study put the trade losses for 10 commodities alone — almonds, pecans, pistachios, walnuts, apples, oranges, raisins, sour cherries, sweet


cherries and table grapes — at $2.64 billion per year (including nearly $1.6 billion just for almonds, Kern County's number two crop). The loss from diverting those commodities to receptive alternative markets came to $3.34 billion per year. Harmeet Dhindsa, purchasing manager for the Bakersfield-based exporter Infinity 8 International Trade LLC, portrayed the situation from a ground-floor perspective. Last year, Infinity 8 — which Dhindsa described as a medium-sized exporter — shipped 10,000 11-pound cartons of cherries to buyers in Shanghai, China. This year Infinity 8 shipped 240. Last year Infinity 8 shipped 76,410 50-pound cartons of Valencia oranges to Shanghai. This year Infinity 8 shipped 3,240. Last year at this time Infinity 8 had shipped 44,036 11-pound cartons of plums to Shanghai. In 2018, year-todate, the company has shipped 170. Those losses may never fully be recouped, he said, not if Infinity 8's experience with China in 2013-14 is an indication. That year U.S. navel oranges developed a mold problem that prompted Chinese officials to reject shipments from this country. "We had to sit out of the China market," Dhindsa said. "We were able to get back into that market after about 12 months, but by that time China had started to consume more of their own domestic product and they were buying navel oranges from Egypt, South Africa, Spain .... So we lost market share for our navel oranges just because we were out for a year. And we still haven't gotten it back. We never will. "And it's same here (with the tariff war), but with so many more commodities. It's worse than what people think." John Moore of Arvin-based Moore Farms said the repercussions go well beyond trade relationships. "A lot of us kind of have our heads in the sand," he said. "How is this going to affect land values and tax (revenue) for the county?" ■

Phil Fisk will be conducting a workshop on how to claim your business’s Google Page and how to get found on Google Search and Maps

• • •

Wednesday, September 19th 11:30am-1pm Bring your lunch No cost to attend the workshop Salinas Valley Chamber RSVP at 119 E. Alisal St.

Take a Step Toward Better Health Let our unique health and wellness programs connect you with your best life. October 6, 2018 K NEXT WAL Breast Cancer Awareness New physicians and topics every month. For more information and to reserve your spot, call our Health Promotion Department at 831-759-1890.


Leadership Monterey County by Kimbley Craig, CEO, Monterey County Business Council On “South County Day,” the Leadership Monterey County class ventured to the far reaches of Monterey County – San Ardo, to be specific. Have you been to San Ardo? You have probably driven by it on Highway 101 at some point, without realizing what happens in this sparsely-populated but economically vital part of the County. South County is home to agriculture (of course!), cattle grazing land, and a number of very significant oil production fields. The class learned that there are two major energy producers which operate in southern Monterey County: Chevron and Aera Energy (our class’s sponsor for the day). Together, Chevron and Aera are among the top tax contributors to Monterey County. They also support hundreds of well-paying jobs. They have operated safely in this area since the early part of the last century. The class learns about petroleum extraction The class was welcomed at the facilities of Aera Energy in San Ardo in San Ardo by Kathy Miller, Aera Energy’s Public Affairs Coordinator. Participants listened to a presentation about Aera’s oil production methods and focus on safety and

the environment. They got to do a few hands-on exhibits, including one that showed the oil that’s extracted from South County. It’s thick and Kimbley Craig dark. Kathy likened its consistency to that of “warm Tootsie rolls.” Afterward, we headed up to King City where the class visited the Monterey County Agricultural & Rural Life Museum. “I never even knew this was here!” was a phrase uttered by numerous classmates. The class watched a film that explained the history of ag in the Valley. Do you know what was the original commercial crop that was grown throughout the valley? It was sugar beets. And the ag pioneer who made tremendous leaps forward in figuring out how to irrigate on a large scale was none other than Claus Spreckels, after whom the former company town of Spreckels is named. Kurt Gollnick from Scheid Vineyards explains the wine-making process After that, the class took a tour of Scheid Vineyards, led by Kurt Gollnick, its Chief Operating Officer. They learned of the wine-making process, and witnessed the tremendous volumes that this successful producer is able to bottle. We might mention that the class *did* get to sample the wares in Scheid’s Tasting Room. “We should do this after every class!” was another popular phrase among the class’s participants. ■

Leadership Monterey County - class photo



Expansion of National Origin Protections by Sharilyn Payne, Fenton & Keller California’s Fair Employment and Housing Act (FEHA) sets forth strict rules prohibiting harassment, discrimination, and retaliation against applicants and employees based on multiple protected classes, including national origin. Recently, regulations amending the FEHA were enacted that expand national origin protections. These regulations took effect on July 1, 2018. The regulations require that employers refrain from intentional discrimination and harassment based on national origin, and from policies and practices that disparately impact applicants and employees based on national origin, that cannot be justified by business necessity, and/or for which a less discriminatory alternative could accomplish the business purpose equally well. The regulations broadly define “national origin” to include an individual’s or his/her ancestors’ actual or perceived: • Place of birth or geographic origin, national origin, or ethnicity; • Physical, cultural or linguistic characteristics of a national origin group; • Marriage to or association with persons of a national origin group; • Parental relationship with a person of a national origin group; • Tribal affiliation; • Membership in or association with an organization identified with or seeking to promote the interests of a national origin group; • Attendance or participation in schools, churches, temples, mosques or other institutions generally used by persons of a national origin group; • Name that is associated with a national origin group; • Language and/or accent. The regulations detail policies or practices that may constitute unlawful national origin discrimination: • Language restriction policies unless the restriction is justified by business necessity, narrowly tailored, and the employer has notified employees of the restriction and the consequences for violating it. The fact that customers or co-workers do not feel comfortable with another language being spoken is

not considered “business necessity.” English-only policies are never permitted during non-work time, such as meal and rest breaks. • Accent based discrimination unless the employer can show the accent materially interferes with the applicant’s or employee’s ability to do the job. • English proficiency discrimination unless the employer can show that the proficiency requirement is necessary for effective performance of the position, i.e., the employer may require language proficiency necessary to fulfill job duties. • Height and weight requirements where these characteristics are associated with national origin. In that case, the employer must show that the requirements are job related and consistent with business necessity, and that the purpose of the requirement cannot be met by less discriminatory means. • Recruitment and job segregation based on national origin, i.e., recruiting, and assigning positions, facilities or geographical areas of employment based on national origin. • Immigration-related practices such as inquiries about an applicant’s or employee’s immigration status except to comply with federal law. • Driver’s license requirements unless possession of a driver’s license is required by law or by the employer for a legitimate business reason such as when driving is a job duty. • Human trafficking involving employers using force, fraud, or coercion to compel employment on the basis of national origin. To be certain that they are in compliance with these new regulations, employers should review their written policies and workplace practices. To view the new regulations, click on the following link: FinalTextRegNationalOriginDiscrimination. pdf. ■ 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


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Scan Solutions

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


Bad Roads Cost CA Drivers $61B By Joy Powell, Equipment World Driving on bad roads in California costs the state’s drivers $61 billion each year, according to a new study by a national transportation research group. Driving on California roads that are deteriorated, congested, and that lack some desirable safety features costs California drivers a total of $61 billion each year, according to TRIP.


The organization has calculated the cost to the average motorist in the state’s largest urban areas in the form of additional vehicle operating costs (VOC) as a result of driving on rough roads. It also calculates the cost of lost time and wasted fuel due to congestion, as well as the financial cost of traffic crashes. The report examines the overall condition, use and safety of California’s roads, highways and bridges, and the state’s future mobility needs. And when it comes to bridges, more than 1,500 of California’s bridges (20 feet or longer) are structurally deficient. That means there is “significant deterioration of the bridge deck, supports or other major components.” More than half – 56 percent – of California’s bridges are at least 50 years old – the eighth highest rate in the nation, the TRIP report says. Bridges that are structurally deficient may be posted for lower weight limits or closed if their condition warrants such action. When it comes to public safety, a total of 15,730 people were killed in California traffic crashes from 2012 to 2016, an average of 3,146 fatalities per year, the researchers’ statistics show. In April 2017, the California legislature increased state revenues for transportation by increasing the state’s gasoline and diesel taxes, implementing a transportation investment fee on vehicles and initiating an annual fee on zero emission vehicles. It is estimated that SB 1 will increase state revenues for California’s transportation system by an average of $5.2 billion annually over the next decade. On November 6, 2018, Californians will vote on Proposition 6, which, if approved, would repeal SB 1. The elimination of SB 1 revenues would reduce funds available in California for transportation projects to improve road, highway and bridge conditions, improve traffic safety, enhance pedestrian and bicycle facilities, improve public transit and relieve traffic congestion. Due to inadequate state and local funding, 68 percent of major roads and highways in California are in poor or mediocre condition, the report says. And that’s costing the average state driver an extra $843 annually in additional vehicle operating costs as a result of driving on rough roads – a total of $22.1 billion statewide. ■


Each year, inspired men and women step forward to be a part of an exciting fundraising competition to earn the coveted title of, “Man & Woman of the Year”. This campaign brings together our local community to support those affected by cancer and save lives. Finding cures for cancer takes us all, and we need your help.




Automotive & Transportation 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. Aera Energy

East Bay Tire Co.

Nielsen Trucking Company (831) 449-1314

Assured Aggregates Company

Edwards Truck Center

Salinas Airport

Booth Machinery

Green Phoenix Auto Repair (831) 758-8326

Salinas Valley Ford - Lincoln

Bronco Van & Storage

Main Event Transportation

Sam Linder Auto Group

Calstar - AirMedCare Network

Monterey County Petroleum

Scarr Moving & Storage

Cardinale Moving & Storage

Monterey Regional Airport

Trio Petroleum

Chamber Discoveries

Monterey Salinas Transit


MY Chevrolet

Dawn Transportation

MY Jeep Chrysler Dodge RAM

Discovery Luxury Motorcoach Charters MY Nissan Kia

United Rentals Valvoline Instant Oil Change -Salinas -Soquel - Watsonville WeatherTech Raceway Laguna Seca

A Special Thanks to Our Strategic Partners and Stakeholder Members



New Member Profiles

Maple Park Old-World Mediterranean


Booth Machinery

Booth Machinery is the fastest growing Case-IH dealer in the United States, providing a full line of Case-IH equipment, parts and service along with a full line of implements and agricultural equipment and supplies. Booth services 7 counties throughout Arizona and California. If you are looking to purchase, rent, need service on, or shop parts for agricultural or construction equipment, Booth Machinery has a location near you. (831) 240-0378 • • 1081 Harkins Road, Salinas

Emerald Skyway

201 East Acacia Street, Salinas • 4 Bed, 4 Bath • $999,000

Lifestyle. Connection. Trust. With Concierge Service.

LuAnn Meador 831 601-6355

Farmers Insurance / Michael Medina CalDRE #01984843





T FOR 90 Y




Farmers Insurance Agent, Michael Medina, provides outstanding customer service by ensuring each client is educated on the coverage options to suit their specific needs. He brings a family-oriented approach by taking time to learn about his clients and their concerns. The types of insurances offered include: auto, home, life, renters, business, motorcycle, recreational, and umbrella insurance policies. Michael is proud to serve the residents of Monterey County. Give him a call today at (831) 663-9624 • 1463 N Davis Rd., Salinas.



Welcome to Emerald Skyway, the Salinas Valley’s premier Recreational and Medicinal Cannabis Dispensary. Come visit our beautifully appointed secure environment, where our seasoned crew will guide you to your ultimate cannabis experience. Virtual interactive videos, custom art, and an expertly procured selection along with unparalleled customer service await you. Come experience the difference! (831) 316-5207 • 1610 Moffett Street, Salinas.

Octave Hearing Systems

Octave Hearing Systems is a top tier hearing service provider in Monterey County. We have used our extensive experience to reformat the industry. Providing a direct source to the best hearing technologies at a fraction of the cost, when being compared to any location in the state. Our industry equipment is cutting edge and furthermore our testing protocols go beyond industry norms. If you need hearing services, you will not be disappointed in seeking our expertise. "It's A New Day, Hear In A New Way". (831) 258-7808 • 975 W. Alisal St. Ste. B, Salinas

Robert Half

Founded in 1948, Robert Half is the world’s first and largest specialized staffing firm. With more than 300 locations world-wide, Robert Half places professionals on a temporary and full-time basis in the accounting/finance, technology, legal, creative, and administrative fields. For more information, please call the Monterey team at: (831) 241-9042 • • 4 Lower Ragsdale Dr. Ste. 101, Monterey.


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

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


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!

CA Rodeo helps put this clown to work at our monthly networking mixer

The photo above shows from left to right the buildings on the east side of old town Main Street. The first building was our original location at 125 Main Street. This building no longer exists and is currently the alleyway to the garage. Continuing to the right, they are: 127: “PIA 1894” building is now the XL Pour House 129: “MAYERS” building was the Bon Ton Café, now Mi Tierra Mexican Restaurant 131: “Sang’s Café” (now closed) 137: “Crystal Theater” The defunct Crystal theater was demolished in late 2003 to make way for Maya Cinemas, a 14-screen multiplex, which opened July 30, 2005 at 153 Main Street with a film strip cutting ceremony. In honor of the old town Salinas heritage, Maya Cinemas proudly presents a scaled-back version of the original façade for both their marquee and exterior.


Monthly Mixer at iHeart Media - these folks are all happy because they won some great prizes


Salinas Valley Food and Wine Festival The Eighth Annual Salinas Valley Food and Wine Festival took place Saturday, August 11th in downtown Salinas The Friday night Kick-Off Chualar, Gonzales and Soledad. Event was held at CSUMB The Festival was sold out with at Salinas City Center and more than 1,300 tickets processed. featured more than 40 The nonprofit beneficiary for this different craft beers from year's event was The Growerour region. The Kick-Off Shipper Foundation's More Produce Event also included local wine in Schools Program. tasting, food trucks and a "This year's Food and Wine live band. "We set attendance Festival celebrated the unique food records and find this Smiles all around and wine culture Downtown Salinas streets were full of happy revelers event and heritage of the Salinas Valley and I believe we delivered offers an on that," said event Chair Joel Panzer." Attendees were incredible look at the local craft beer movement along the thrilled with the success of the event and report they Central Coast," shared event organizer, Jacob Abramson. will be back in 2019 on August 9th for the Kick-Off Event The Food & Wine Festival took place on one a beautiful and on August 10th for the Ninth Annual Festival, along Saturday. Guests were welcomed with a renewed focus on with the 2019 wine-makers dinner and wine tour on wine, food, art and some other significant changes to make August 2nd and 3rd. More information can be found at the event more inviting and to encourage people to arrive ■ early and to stay the entire day. Organizers reported 22 wineries and 9 breweries were If you attended this year, we encourage you to represented for 2018. The Monterey Jazz Festival had three share your photos on Facebook and Instagram. combos downtown to entertain the crowds. A total of 14 SEE YOU NEXT YEAR! food sampling booths resulted in a wide array of culinary Event Organizers included Joel Panzer and Danielle McShane treats from Salinas Valley cities, including Castroville, Salinas,

Chamber Ambassador

Daniel Philpott INOSOT serves the business community by providing the knowledge and implementation of the “business of business.” This is having a strong working knowledge of tax strategy, coupled with an understanding of business structure, which creates a foundation that facilitates building a successful business. Understanding that a large Ambassador Daniel Philpott with his wife and kids percentage of businesses fail in their first 10 years, reasons often citied are bad location and insufficient funding. Reasons that are not often talked about is the “business of business.” This includes being structured properly to take maximum advantage of tax structure, benefits, funding, etc. INOSOT believes in setting a SEPTEMBER 2018

proper business mindset foundation, which structures your business to support the dreams and goals of the business. Then knowing the rules to win the business game. There is a time to use offense and a time for defense; the art is knowing which one to use when. It is time for people and businesses to know what their money does and how it does that. You need to know how money works – for you! We do not sell a bunch of products, rather design a system unique to you, to get what you want financially, when you want it. By understanding your intention, getting rid of the things that serve to block you from getting them, then knowing the rules of the system. This creates a clear path for you to follow to achieve prosperity you desire. In addition to his role as a Chamber Ambassador, Daniel enjoys spending off time with family exploring the Central Coast and finding its many treasures that make this a wonderful place to live. ■


Focus on Non-Profits Twenty years ago, Jacob’s Heart Children’s Cancer Support Services was inspired by one little boy diagnosed with one of the deadliest forms of childhood cancer, just as he was about to start kindergarten. The courage of Jacob and his family helped create an award-winning organization providing family-centered, comprehensive care to thousands over the last two decades. At Jacob’s Heart, we remain steadfast in our mission, our reason for existence: an unwavering dedication to improve the quality of life for children with cancer and support their families in the challenges they face right here in Monterey, Santa Cruz, San Benito and South Santa Clara Counties. In celebration of 20 years of service, Jacob’s Heart is presenting four commemorative events to honor Children’s Cancer Awareness Month.

• Friday, 9/14: Jordan and Kyra Memorial Golf Tournament at Seascape Golf in Aptos • Sunday, 9/23: Kidrageous Golden Carnival at the Watsonville Plaza • Sunday, 10/14: Kidrageous Super Fun Run at Santana Row in San Jose • Sunday, 10/21: Kidrageous Golden Gallop, Monterey’s Custom House Plaza Jacob’s Heart would not exist without you, and the other caring individuals within our amazing community. If you have sponsored one or more of our events during the past 20 years, we invite you to support us once again. Each event provides a variety of sponsorship levels, and there are opportunities to donate raffle prizes and auction items. We are proud to share that Jacob is now a happy, healthy 25-year-old. Jacob has grown up, and so has Jacob’s Heart. Together for 20 years, we have been a force for good and a source of love for thousands. Call us today at (831) 724-9100 or learn more at

Non-Profit Calendar Sept 8

& 9:

Sept 15:

Sept 27-30:

Sept 9:

Sept 15:

Oct 4:

Sept 12:

Sept 23:

Continental Tire Monterey Grand Prix 8am-5pm Sports Car Racing Association of the Monterey Peninsula (SCRAMP) 831-242-8203 •

Bears and Badges Donation Carnival 9am - 5pm Non-Profit: Teddy Bears with Heart den of Good Bears of the World 831-915-1112 • Info Session (use street parking please) 5:30-6:30pm Non-Profit: CASA of Monterey County 831-455-6800 ext 31 •

Sept 13:

Monthly Luncheon, Tri Tip, program the Honorable Judge Maldonado 11:30am-1:30pm Non-Profit: Active Seniors, Inc. 831-424-5066 •

Sept 14:

25th Annual Jordan and Kyra Golf Tournament Dinner and Auction 4:30-8pm Non-Profit: Jordan and Kyra Memorial Foundation | Jacob's Heart 831.724.9100 •


Laguna Seca Cars and Coffee 8-10am Non-Profit: Sports Car Racing Association of the Monterey Peninsula (SCRAMP) 831-242-8205 • REACH Theatre OINK! The Three Piggy Musical 10:30am Non-Profit: ARIEL Theatrical 831-775-0976 • 20th Annual Kidrageous Golden Carnival 12-5pm Non-Profit: Jacob's Heart Children's Cancer Support Services 831.724.9100 •

Sept 24:

Info Session (park on 11th, use front entrance) 6-7pm Non-Profit: CASA of Monterey County 831-455-6800 ext 31 •

Sept 27-30:

Porsche Rennsport Reunion VI 8am-5pm Non-Profit: Sports Car Racing Association of the Monterey Peninsula (SCRAMP) 831-242-8206 •

Airshow 11am-4pm Non-Profit: California International Airshow 831-754-1983 • Fall Harvest Mixer: Small Bites to Beat Hunger 5:30-7:30pm Non-Profit: Meals on Wheels of the Salinas Valley, Inc. 831-758-6325 • Search EventBrite

Oct 5

& 6:

Schoolhouse Rock Live! 7am Non-Profit: ARIEL Theatrical 831-775-0976 •

Oct 6:

Schoolhouse Rock Live! 2pm Non-Profit: ARIEL Theatrical 831-775-0976 •

Give Back To Your Community! SEPTEMBER 2018

Chamber Events Big Sur Land Trust celebrates the Carr Lake Project by offering a property tour and listening to attendees’ hopes for a future park.

Community Homeless Solutions celebrates 40 years of service as Monterey County’s largest provider of emergency shelter and transitional housing.

Recently having moved to a new location, TreeHouse Mortgage Group Celebrates 10 years in Salinas.

Salinas welcomes Lowe Packaging Group which has relocated to our fine city.



Construction Contracts

Member News Barber Joins JRG Attorneys

by Patrick Casey A construction contract is an agreement between a property owner and a contractor to build or construct some type of improvement to the property. Sometimes, a lessee or tenant may enter into a construction contract for improvements. All construction contracts should be in writing and contain certain terms and provisions to ensure that the parties agree on the work to be performed. The most important part of any construction contract is the scope of work. How to define the scope of work depends upon the scale of the project. If the construction is a simple project, such as installing a retaining wall, then the scope of work should describe the length, height and location of the retaining wall. For more complicated projects, such as constructing a new building, the construction contract should attach detailed construction plans prepared by an architect, reviewed by an engineer and approved by the appropriate city or county building department. Price is the next most important issue. Construction contracts state the price either on a time and materials basis (which sometimes includes a guaranteed maximum price) or on a fixed price. Even if the contract is for a fixed price, the price can change if there are change orders to the project or if certain unexpected conditions arise (such as unanticipated foundation problems). If the work is done on a time and materials

basis, then the contract should detail the hourly rate for all types of workers on the project. Large scale projects typically have a detailed construction budget that is part of the contract. Any deviation on individual line items within a certain percentage (such as 5%) may be permissible, but deviations beyond that amount require prior approval of the owner. Another significant issue is the time frame for construction. All property owners want the job done as quickly as possible and most contractors want flexibility as to staffing and a completion date. Therefore, the contract should establish a date of substantial completion and a final completion date. If the project is large enough, then there should be a project schedule detailing milestone dates for when certain stages must be completed (such as permits obtained by September 1st, foundation work completed by October 1st, framing and rough plumbing completed by November 1st and so on). A construction contract should address staffing, including whether workers and the job foreman will be on-site every day. It should address change orders and what happens if there are cost overruns or unexpected delays; who obtains the building permits; what, if any, role does the architect have in construction; will there be an independent construction manager; are there designated representatives of the owner and contractor to make decisions; and how are disputes resolved (mediation, arbitration or litigation), among other issues. Finally, the contractor should provide proof of insurance and a valid contractor’s license. ■ 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


Stephan A. Barber has joined JRG Attorneys at Law as Partner and Director of Litigation. Stephan practiced for over 30 years as a senior partner in the national law firm of Ropers, Majeski, Kohn & Bentley’s San Jose office specializing in complex litigation. Stephan has practiced law in the greater Bay Area for over 40 years. He is leading the JRG litigation department comprised of seven experienced attorneys, including Bob Rosenthal who is well known for his $12.6 million victory over Toyota in 2014 in the case of Hill v Toyota.

Stephan A. Barber

Fisk to Chair SCORE As of October 2018, Phil Fisk will assume the role of Chapter Chair for SCORE Monterey Bay. As CEO of Coastline Marketing Group, Phil had already devoted more than 10 years of his life to helping small and medium-sized business owners expand their business through digital marketing efforts. As Chairperson, Phil will be tasked with building a team of local business experts willing to give a few hours of their time each week to helping other small business owners solve business problems.

Phil Fisk

Read to Me Endorsed Congressman Jimmy Panetta endorses the Read To Me Project (RtMP). RtMP is a prevention-based, early-literacy program addressing the fact that seven out ten children in Monterey County start kindergarten as much as two years behind in cognitive, vocabulary and language skills – most never catch up. “Reading has a major impact on a child’s development, enriching their understanding of the world and igniting their imaginations,” says Congressman Panetta. “The Read to Me Project provides the next generation of leaders with the knowledge, vocabulary, and comprehension skills that will help pave the path to future school and career success.” Visit to learn more.



(831) 422-4910 307 Main Street, Suite 300 • Salinas, CA 93901


September / October 2018

Meet the Chamber Board:


WeatherTech Raceway Laguna Seca Joint Mega Mixer


Ribbon Cutting – Salinas Valley Dental Care




5:30 PM - 7:30 PM 1021 Monterey- Salinas Hwy 68, Salinas

6:00 PM - 6:30 PM 1211 S. Main St., Salinas


Government Relations Committee (GRC) Meeting- Downtown Improvement Effort


Ambassador Committee Meeting



27 Oct



11:30 AM - 1:00 PM Chamber Office

12:00 PM - 1:00 PM Chamber Office

California International Airshow Joint Mixer 5:00 PM - 7:00 PM 100 Sky Park Dr., Monterey

Connect at Lunch – Haute Enchilada 12:00 PM - 1:00 PM 7902 Moss Landing Rd, Moss Landing

Centennial Gala "A Legacy of Leadership"


6:00 PM - 10:00 PM Sherwood Hall- 940 N. Main St., Salinas


Government Relations Committee (GRC) Meeting


Mark Boos

11:30 AM - 1:00 PM Chamber Office


7902 Moss Landing Rd Rd., Moss Landing La Wednesday sdaay, a October O Octob 3rd 122-1pm 1pm Your onlyy cost is what yyou order Meet the Chamber Board:

Mark Boos

John Haupt


GROWTH STARTS SMALL. Rabobank Personal Banking I Business Banking I Home Lending I


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

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