California Business Images: 2009

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CALIFORNIA BUSINESSCALIFORNIA BUSINESS

Connecting the Docs Telemedicine is tonic for rural patients

Message in a Bottle Vineyards, wineries continue to thrive

Solar FlaresCompanies, residents harness the sun

SPONSORED BY THE CALIFORNIA ASSOCIATION FOR LOCAL ECONOMIC DEVELOPMENT | 2009

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On the Cover PHOTO BY JEFF ADKINS

Solar field at Mariani Packing Co., Vacaville

OVERVIEW 11

BUSINESS ALMANAC 12

BUSINESS CLIMATE

It’s Go Time 16Golden State companies view innovation as the key to replenishing gold in corporate treasuries.

Get Ready, Get Set 18

EDUCATION

Taking the Initiatives 19Community colleges take a tenfold approach to training high-growth employment sectors.

Schooling the Creative Class 21

TRANSPORTATION

Ports of Cal 22Harbors on the Pacifi c Coast and inland upgrade their infrastructures and adopt green policies.

Fast Times Ahead 25

HEALTH

Here’s to Your Health 26The California Endowment funds a 10-year program aimed at building healthy communities.

Connecting the Docs 28

On the Move 29

LIVABILITY

California Dreamin’ 30Recreational opportunities remain a draw for tourists – and for employers and their employees.

ENERGY/TECHNOLOGY

Raising the Green Standard 32California’s vigorous green-energy policies set a high bar for the nation.

Solar Flares 35

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RESEARCH & DEVELOPMENT

From Lab to Marketplace 36Many private sector enterprises spring from research on the University of California’s 10 campuses.

AGRIBUSINESS

Message in a Bottle 40Vineyards and wineries continue to thrive in many regions across the state.

Get the Daily Dirt 41

MANUFACTURING

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

A Capital Idea 43

ENTREPRENEURSHIP/SMALL BUSINESS

Startup Successes 44With its pro-business spirit and policies, California is a leader in supporting young companies.

A Refuge in Turbulent Times 46

RESOURCE GUIDE 47

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CALIFORNIA BUSINESSCALIFORNIA BUSINESS

2009 EDITION, VOLUME 2

C U S TO M M A G A Z I N E M E D I A

MANAGING EDITOR MAURICE FLIESS

COPY EDITOR JOYCE CARUTHERS

ASSOCIATE EDITORS LISA BATTLES,

SUSAN CHAPPELL, JESSY YANCEY

ONLINE CONTENT MANAGER MATT BIGELOW

STAFF WRITERS CAROL COWAN, KEVIN LITWIN

CONTRIBUTING WRITERS RENEE ELDER,

SHARON H. FITZGERALD, PAM GEORGE, JOE MORRIS,

JESSICA MOZO, AMY STUMPFL

DATA MANAGER CHANDRA BRADSHAW

REGIONAL SALES MANAGER CHARLES FITZGIBBON

INTEGRATED MEDIA MANAGERS

TRIP MILLER, DAVID MOSKOVITZ

SALES SUPPORT MANAGER SARA SARTIN

SENIOR PHOTOGRAPHER BRIAN MCCORD

STAFF PHOTOGRAPHERS JEFF ADKINS, TODD BENNETT,

ANTONY BOSHIER, IAN CURCIO, J. KYLE KEENER

PHOTOGRAPHY ASSISTANT ANNE WHITLOW

CREATIVE DIRECTOR KEITH HARRIS

WEB DEVELOPMENT DIRECTOR BRIAN SMITH

ASSOCIATE PRODUCTION DIRECTOR CHRISTINA CARDEN

PRODUCTION PROJECT MANAGERS

MELISSA BRACEWELL, KATIE MIDDENDORF, JILL WYATT

SENIOR GRAPHIC DESIGNERS LAURA GALLAGHER,

KRIS SEXTON, CANDICE SWEET, VIKKI WILLIAMS

LEAD DESIGNER JESSICA MANNER

GRAPHIC DESIGN ERICA HINES, ALISON HUNTER,

JANINE MARYLAND, AMY NELSON, MARCUS SNYDER

WEB DESIGN DIRECTOR FRANCO SCARAMUZZA

WEB PROJECT MANAGERS ANDY HARTLEY, YAMEL RUIZ

WEB DESIGN CARL SCHULZ

WEB PRODUCTION JENNIFER GRAVES

COLOR IMAGING TECHNICIAN TWILA ALLEN

AD TRAFFIC MARCIA MILLAR,

PATRICIA MOISAN, RAVEN PETTY

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EXECUTIVE VICE PRESIDENT RAY LANGEN

SR. V.P./CLIENT DEVELOPMENT JEFF HEEFNER

SR. V.P./SALES CARLA H. THURMAN

SR. V.P./OPERATIONS CASEY E. HESTER

V.P./SALES HERB HARPER

V.P./SALES TODD POTTER

V.P./VISUAL CONTENT MARK FORESTER

V.P./EDITORIAL DIRECTOR TEREE CARUTHERS

MANAGING EDITOR/BUSINESS BILL McMEEKIN

MANAGING EDITOR/COMMUNITY KIM MADLOM

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CONTROLLER CHRIS DUDLEY

ACCOUNTING MORIAH DOMBY, DIANA GUZMAN,

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RECRUITING/TRAINING DIRECTOR SUZY WALDRIP

DISTRIBUTION DIRECTOR GARY SMITH

INFORMATION TECHNOLOGY DIRECTOR YANCEY TURTURICE

NETWORK ADMINISTRATOR JAMES SCOLLARD

IT SERVICE TECHNICIAN RYAN SWEENEY

HUMAN RESOURCES MANAGER PEGGY BLAKE

SALES SUPPORT RACHAEL GOLDSBERRY

SALES/MARKETING COORDINATOR RACHEL MATHEIS

EXECUTIVE SECRETARY/SALES SUPPORT KRISTY DUNCAN

OFFICE MANAGER SHELLY GRISSOM

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

FOR MORE INFORMATION, CONTACT:California Association for Local Economic Development550 Bercut Drive, Suite G • Sacramento, CA 95811Phone: (916) 448-8252 • Fax: (916) 448-3811 www.caled.org

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CALIFORNIA

Chico

EurekaRedding

San Bernardino

Bakersfield

Modesto

Stockton

Riverside

Fresno

Oakland

San Diego

Los Angeles

San Jose

San Francisco

Monterey

San Luis Obispo

SacramentoSanta Rosa

Santa Barbara

Sonora

Long Beach

OREGON

NEVADA

ARIZO

NA

MEXICO

El Centro

Palm Springs

AN ERA FOR MANUFACTURING IDEASCALED works with partners to spur innovation, entrepreneurship

Nine distinct regions are denoted by color tinting

on this Golden State map, which also shows some

principal cities within the regions. They are:

Southern Border (San Diego, El Centro), Southern California (Los Angeles, Long Beach, Riverside,

San Bernardino, Palm Springs), Central Sierra

(Sonora), Central Coast (Santa Barbara,

San Luis Obispo, Monterey), San Joaquin Valley (Bakersfield, Fresno, Modesto,

Stockton), Bay Area (San Francisco,

Oakland, San Jose, Santa Rosa),

Greater Sacramento, Northern Sacramento Valley (Chico,

Redding) and Northern California (Eureka).

With bank bailouts and mortgage meltdowns

dominating news headlines, it’s no wonder that

companies are looking for ways to cut costs and

weather the storm. But with proper planning, the

current downturn also could mean big opportunities

for California businesses.

“It’s more important than ever to look at ways to

strengthen our approach to economic development

– investing in long-term strategy and [maximizing

use of] existing resources,” says Kathy Millison, city

manager for the city of Clovis and incoming chair

of the California Association for Local Economic

Development, or CALED. “Now is the time to

position ourselves for future growth.”

Millison says the state is working hard to develop

strategies that will support existing industries while

fostering new ideas and technologies in everything

from health and life sciences to green industries and

renewable energy.

“California has a proven record when it comes to

innovation and entrepreneurship,” she says. “Our

economy is shifting from manufacturing products

to manufacturing ideas. We have the intellectual

resources and leadership in place to spur growth,

but we also have to look at where we fit within the

global marketplace.”

Millison insists that such changes in strategy must

occur at the local and regional level. “This is going

to be a grass-roots effort. Change is not going to

come from the top but rather from the bottom

up. It’s important to help our local and regional

economic development partners understand

their strengths and seek out opportunities.”

That has been CALED’s mission from the beginning.

Established in 1980, the organization provides

training, education, research and technical

assistance to its more than 900 members, including

cities, counties, state and federal agencies, and

economic development corporations throughout

the state – as well as the private sector.

– Amy Stumpfl


overview

GREATER SACRAMENTO

IF THIS DOME COULD TALK Like the state laws that

percolate in its legislative

chambers, construction of the

California State Capitol was a

tedious process.

It started in 1860 – the year

before Civil War broke out on

the other side of the continent.

In 1869, the legislature and

the governor moved into

the partially completed

building, but it wasn’t until

1874 – two years before the

nation celebrated its centennial

– that the building was finished.

Along the way, floods,

materials shortages, labor

issues and funding problems

hampered progress. In 1864, a

principal architect entered a mental institution with a diagnosis

of insanity arising from “continued and close attention to the

building of the State Capitol.”

Initially budgeted at $100,000, the capitol ended

up costing $2.5 million.

More information: www.statecapitolmuseum.com.

SOUTHERN BORDER

TRADE SECRETSMexico is California’s largest

trading partner. And that’s good

news for the border counties

of San Diego and Imperial.

Golden State crossing points to

Mexico are in Tecate, San Ysidro,

Otay Mesa, Calexico and Andrade.

In December 2008, officials from

the two countries announced that

a new crossing will be built and

opened in east Otay Mesa by 2014.

“This is one more step in our

continued effort to rebuild and

expand the infrastructure needed

to accommodate increased

international trade with Mexico

and other countries,” Gov. Arnold

Schwarzenegger said.

An estimated $18.3 billion in

California products – led by

computers/electronic products

and transportation equipment –

were exported to Mexico in 2007.

NORTHERN CALIFORNIA

CALIFORNIA STREAMINGWhen most people think about California, hunting and

fishing do not come immediately to mind. But for many

residents of the state’s northern tier of counties, hunting

and fishing are a way of life.

Consider, as one prime example, Six Rivers National Forest

in Del Norte, Humboldt, Siskiyou and Trinity counties.

Blacktail-deer hunting on its nearly one million acres is

renowned. Also popular is hunting for quail, grouse, wild

turkeys and – on a limited basis – Roosevelt elk.

Anglers, meanwhile, are drawn to such streams as the Smith

and Klamath rivers, where trophy-size Chinook salmon and

steelhead trout have been caught. How big? A state-record

27-pound, 4-ounce steelhead was landed in 1976, and a

monster 68-pound Chinook salmon was netted in 2004.


business almanac

SAN JOAQUIN VALLEY

FIELDS OF PLENTYAgriculture defines this eight-county region – everything from olives and nuts to asparagus and nectarines, and from beef and sheep to dairy products and cotton.

Heading the list are Tulare and Fresno counties, which are the nation’s top-two agricultural counties.

According to Paul M. Saldana, president and chief executive officer of the Tulare County Economic Development Corp., Tulare County produces about $4 billion worth of agricultural goods annually; it is No. 1 nationally in citrus and dairy production, No. 2 in almonds and grapes, and in the top five for pistachios.

Tulare County is also home to the World Ag Expo – billed as the world’s largest annual agricultural exposition. It draws more than 100,000 people each February.

NORTHERN SACRAMENTO VALLEY

CONCRETE EVIDENCEIn the same year the Allied troops stormed the beaches

of Normandy, France, on D-Day (1944), the federal

government completed construction of the Shasta Dam

on the Sacramento River near Redding.

The massive dam – 3,460 feet across at the top and 602

feet tall – provides vital control of water flowing southward

toward Sacramento and the Bay Area. The impoundment it

forms, Shasta Lake, covers as much as 30,000 acres and is

the largest manmade reservoir in California, providing

recreational opportunities of many kinds.

Another key component of the project is hydroelectric

power. Shasta’s turbines can generate up to 676 megawatts

of electricity.

SOUTHERN CALIFORNIA

LIGHTS, CAMERA, ECONOMIC ACTIONThere’s no denying it: Hollywood means more

than glitz and glamour. It also means big

bucks for the region.

A recent study commissioned by

the Los Angeles County Economic

Development Corp. found that the film industry employs

about 200,000 people in Los Angeles County. That

includes those working for motion picture or sound

companies, in broadcasting, or as independent artists,

writers and performers. The film industry is the county’s

third-biggest employer.

Another study, this one conducted in 2006 by the Motion

Picture Association of America, ranked California as a clear

No. 1 in the economic benefit of production of movies and

TV shows. It had $42.2 billion of such benefit.


E N J O Y T H E S U I T E L I F E

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your expectations; whether you are traveling for business or pleasure.

Accommodations272 studio and two-bedroom suites, most with fully equipped kitchens (Renovated in fall of 2008)

Well-lit oversized work deskVoice mail, dataports, dual-line speaker phones and wireless high-speed Internet access

Full-size iron, ironing board, hair dryer and coffee makerSatellite TV with premium channels and Pay-Per-View

Complimentary ServicesUSA Today

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Exercise facility, sports court, whirlpool and outdoor heated swimming pool(Renovated in fall of 2008)

For reservations, please call: (800) 767-1777

BAY AREA

RAIDERS AND CONTAINERSOakland is known to sports fans for the

Raiders of National Football League and

the A’s of Major League Baseball. In the

world of commerce, the city is known for

the Port of Oakland.

The port incorporates not only the

sprawling marine facilities on the east

shore of San Francisco Bay but also the

adjacent Oakland International Airport.

Together, they cover about 3,500 acres

and 19 miles of waterfront. In addition, the

port owns and manages more than 900

acres of commercial real estate, including

Jack London Square – a development of

offices, restaurants and retail stores. In

all, the port’s assets total approximately

$2 billion, and annual revenues are about

$260 million.

In 1962, the Port of Oakland became the

first on the West Coast to accommodate

container ships. Today, its 35 cranes load

and unload 99 percent of the containerized

goods moving through Northern California,

making it the fourth-busiest container port

in the United States.

More information: www.portofoakland.com.

CENTRAL COAST

VINES AND WINESIt’s been five years since the motion picture Sideways

was released, but its effects are still being felt by scores

of wineries on the Central Coast. The hit film, which was

nominated for five Academy Awards and won one,

revolved around a weeklong road trip through the region’s

wine country. For many people, it was a revelation that this

part of California – well

southeast of the fabled

Napa Valley – is a prime

wine-growing region.

But the truth is, Franciscan

friars began growing wine

grapes here a century ago.

And now there are about

400 wineries in the three

counties of Santa Barbara

(130-plus), San Luis Obispo

(200-plus) and Monterey

(65-plus). Many have won

awards for specific vintages

of such wines as cabernet

sauvignon and pinot noir.

CENTRAL SIERRA

SKIING IS BELIEVINGWhen the Sierra Mountains are blanketed in white, skiers

and snowboarders are found on the region’s many slopes.

Ski resorts include Mammoth Mountain and June

Mountain in Mono County, Badger Pass and Dodge

Ridge in Tuolumne County, and Bear Valley and Kirkwood

Mountain in Alpine County.

Of these, Mammoth is probably the best known. It offers

bowl skiing on 3,500 acres, with three gondolas and

23 chair lifts available to whisk skiers up the mountain.

Average annual snowfall is about 350 inches, but the

resort supplements that with snowmaking machinery

on about a third of the trails.


business almanac

It’sGoTime


business climate

Companies see innovation as the key to overcoming the

economic downturn

California has experienced tough times before, and the state always has found ways to remedy the difficult situations.

Many of those remedies came in the form of innovation.

“Economic disruptions like those being experi-enced in California and the nation are challenging, but they also create new economic opportunities because the status quo is challenged,” says Brian McGowan, California deputy secretary for eco-nomic development and commerce. “California is historically innovative about creating new business models. The challenge is identifying where those new opportunities are going to lie. We will get through this and come up shining because we’re Californians – we are different from any other state.”

McGowan says one of the future innovations will involve planning highways with interchanges at strategic points. “When we construct a highway from now on, we want the interchanges built where there will be future economic growth,” he says. “We will reason why an interchange should be here instead of having it over there. No highway thinking model such as this currently exists any-where in the world, but it will become a reality in California.”

McGowan, a board member of the California Association for Local Economic Development, says the state also is encouraging economic developers to step up their efforts. Some cities have responded by increasing their advertising budgets to implore residents to buy locally and thereby save gas money while stimu lating the

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

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INNOVATION

In 2008, California Gov. Arnold Schwarzenegger plunked down $125,000 of his own money and purchased a Tesla Roadster. Since then, 200 more people have done so.

TESLA MOTORS INC. is a Silicon Valley-based electric vehicle manufacturer that began producing its two-passenger roadster models in 2008. The base price is $109,000.

The company, which has about 300 employees in the San Mateo County city of San Carlos, has announced that it will begin manufacturing a sedan (base price $57,400) in 2011.

More Insight

SEE VIDEO ONLINECALED’s Wayne Schell talks

about the state’s economy at

californiabusinessimages.com.


Get Ready, Get SetCALED PROMOTES STATE’S PLUSES

Wayne Schell believes the

federal government shouldn’t

be doing everything to rescue

California’s slumping economy.

He believes individual

communities should step

up and initiate their own

economic stimulus activities.

“The main point that we are

asking communities – as well as

the state – to consider is, how

are you going to accelerate

your economic process to get

your own house in order?”

says Schell, president and

chief executive officer of the

California Association for Local

Economic Development. “As for

us at CALED, our job is to supply

information to the state and

communities that will help them

with economic development.”

Schell says one CALED

suggestion is for communities

to have land sites cleared and

ready so that interested

businesses can get facilities

built quickly. Schell adds that

there are still many growth

opportunities for the business

world in California, even though

some news media fail to report

that message.

He asks, “When do we start

mentioning the good aspects

of business? Our job at CALED

is to get the word out about all

of the positives in California,

so that a company’s grand

opening can occasionally get

ahead of headlines trumpeting

a company’s closing.”

– Kevin Litwin

local economy.McGowan constantly promotes the

state, reminding people “that while some states can maybe claim two or three leading industries, California can claim [many more]. We are the leader in entertainment, software technology, water technology, IT, logistics, nano-technology, biotechnology and on and on. That’s why it is perfectly conceivable that Californians will lead the way in coming up with innovative new business models, as we eventually see a new econ-omy emerge not only nationally but globally over the next five years.”

EXPANSIONS AMID DOWNTURNS

One county that continues to enjoy business success is San Joaquin, which has welcomed 52,000 new jobs over the past 15 years. Economic developers say they always look to capitalize on the county’s business strengths, such as its proximity to major markets.

“Most of our local companies do busi-ness with Northern California and its population of 15 million people, plus the regional eight Western states that are easy to access,” says Mike Locke, presi-dent and chief executive officer of the

San Joaquin Partnership economic devel-opment organization. “We are lucky to have an ideally located water shipping port in Stockton, great weather for our large agricultural industry, plus easy trucking access to Interstates 5, 205, 580 and State Route 99.

Locke says San Joaquin County is also a railroad freight hub. “We have BNSF doing about 400,000 container load-and-unload lifts a year at their intermodal rail yard, while Union Pacific performs 150,000 annual lifts – and is currently undergoing a major expansion to double the size of its facility,” he says.

Locke adds that USG Corp. is planning to build a $350 million gypsum sheetrock plant in San Joaquin County beginning in 2010, and The Home Depot in 2009 established its third huge distribution center in the county. In fact, 12 company expansion projects were completed in San Joaquin during 2008, even during the economic downturn.

“Sure, economic times are tough right now, but a large part of an economic downturn is psychological,” Locke says. “We are Californians, we are innovative, and we will get through all of this as a leader – just like we always have.”

– Kevin Litwin

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


business climate

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Workforce development flows from nimble community colleges’ program

InitiativesTaking the

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

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With 110 community colleges operating in 72 districts, the California Community

Colleges system is an important vehicle for delivering workforce training across the state.

Ten strategic, priority initiatives that focus on high-growth, cutting-edge employment sectors form the basis of CCC’s Economic and Workforce Development Program, which operates out of numerous resource centers.

By continually assessing workforce and business development needs across California’s diverse economic regions and industries, the program revs up the col-leges’ workforce development engines, enabling them to provide relevant training programs quickly as well as craft career pathways for students.

The Economic and Workforce Development Program also addresses challenges confronting workers, espe-cially those in emerging technology fields. The program “is able to be at the forefront, to be agile in front of employers’ immediate needs,” says José Millan, vice chancellor of economic devel-opment and workforce preparation for California Community Colleges.

Millan says the 10 initiatives “are our research and development to go out and find what programs are needed. Then, depending on the volume of demand,


education

FAST TRACK TO SUCCESS

Community Colleges’ Economic and Workforce Development Initiatives:

Advanced Transportation Technologies & Energy

Applied Biotechnology Centers

Centers for Applied Competitive Technologies

Business & Workforce Performance Improvement

Environment, Health, Safety & Homeland Security

Health Care

Centers for International Trade Development

Multimedia & Entertainment

Small Business Development Center

Workplace Learning Resource

More Insight

we can develop short-term programs for training on a contract basis – or, if necessary, transform training into standardized programs for all of the colleges.”

FROM RETRAINING TO VIDEO GAMING

The Multimedia & Entertainment Initiative is a prime example. Various offerings at six MEI Centers range from traditional credit instruction to noncredit and fee-based classes. Some even offer low or no cost workshops on digital media subjects or on retraining motion picture union workers, says John Avakian, MEI director.

“Beyond the more direct offerings at the various centers, there are hundreds of digital media programs offered at community colleges across California that are in existence in part because of the curriculum development efforts of the Multimedia & Entertainment Initiative,” Avakian says. As an example, he cites the Creative Entrepreneurship certificate program – devel-oped by the Northern California New Media Center at Mission College – that was based on survey input from industry professionals.

Another MEI success story relates to a series of products and events targeting the video game industry, a significant contributor to California’s economy. MEI cosponsored two industry studies and sponsored a symposium that brought togeth er 70 community colleges faculty members and 12

game industry professionals to discuss work-force needs in game development and to assess related programs of study.

The initiatives benefit from partners in related industries, all of which provide input and donate time, space and, in the case of MEI, software. MEI’s partners include Adobe, Apple, Autodesk, Unity3D, Acme Animation and the Entertainment Economy Institute.

Being on the cutting edge of new technologies also means a green emphasis permeates the initiatives.

“One thing I’ve directed all of them to do is focus on green technology within that sector,” Millan says. “For instance, in health care: Using electronic medical records versus paper or choos-ing supplies made from recyclable materials makes them greener.

“Obviously, the Advanced Transportation Technologies and Energy Initiative deals more directly with hybrid cars, biodiesel, etc. But all the initiatives can stand to incorporate new efforts to go green. ‘Helping an employer to become more green’ is our new mantra,” he says.

Visit www.cccewd.net to find out more.– Carol Cowan

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

READ MORE ONLINEHigh school students gain insight into

economic development.


INNOVATION

Schooling the Creative ClassOPEN 24/7, COLLEGE GIVES STUDENTS SCHEDULING FLEXIBILITY

In addition to enriching culture

through the arts, creative people

make vital contributions to the

economy. But creative types

don’t always thrive in traditional

classroom settings. Ex’pression

College for Digital Arts, in

Emeryville on the east side of

San Francisco Bay, takes an

innovative approach that appeals

to these kinds of students and

outfits them with skills to succeed.

The college offers bachelor’s

degrees in animation and visual

effects, game art and design,

motion graphic design, and sound

arts. It also offers advantages such

as faculty that includes industry

professionals, and professional-

grade equipment. In addition, the

school is open 24 hours a day,

seven days a week, so students

can work on projects whenever

their creative muse strikes.

“The unique class structure

provides an environment more

conducive to creative people,

who often are not inspired in a

regimented 8-a.m.-to-3-p.m.

classroom day,” says Randy

Starbuck, director of

redevelopment for the city of

Pittsburg and father of an

Ex’pression College student.

“The schedule also affords the

school the opportunity to employ

as instructors people who have a

day job in the creative world.”

Starbuck continues, “Ex’pression

provides training for the new world

of performing arts – primarily

movies – and these people can

work just about anywhere.”

– Carol Cowan

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


education

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

Ports ofCal


California’s ports are taking advantage of lesser traffic brought on by the sluggish economy to make improve-ments that will strengthen them for the future.

From the twin ports of Long Beach and Los Angeles, which handle about 40 percent of the nation’s cargo, to smaller facilities such as those at Humboldt Bay and Crescent City, as well as inland sites in Pittsburg and Stockton, upgrades to infrastruc-ture are under way or planned.

“Our ports face competitive pressures from new and expand-ing ports in Mexico and Canada as well as other domestic ports, mostly on the East Coast,” says Bill Allen, president and chief executive officer of the Los Angeles County Economic Development Corp. “Trade diversion to other ports, the sour economy and the resultant drop in container traffic … ripples out to many port-related employment sectors including longshoremen, truck drivers, industrial real estate and port finance.”

The ports of Long Beach and Los Angeles are implementing the San Pedro Ports Clean Air Action Plan, or CAAP, which involves hundreds of millions of dollars invested by them, local air districts, port-related industries and the state to cut particulate matter pollution from all port-related sources by at least 47 percent over the next five years. A major portion of CAAP is the Clean Trucks Program, which is expected to reduce air pollution from port-drayage trucks by more than 80 percent.

“There must be a commitment to ‘green growth’ so that our ports modernize and expand in a way that cuts pollution, creates thousands of new high-wage jobs and contributes billions of dollars to our local economy,” Allen says. “From an

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

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READ MORE ONLINEBurlingame-based Virgin

America airline wins travel

industry accolades.


transportation

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ScorecardPORTS REPORT

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

$190 billionvalue of cargo handled annually by the Port of Los Angeles

1ranking of Los Angeles in container volume


transportation

INNOVATION

Fast Times AheadRIDING THE RAILS GOES HIGH-SPEED, WITH 800-MILE SYSTEM PLANNED

California’s high-speed rail plans

are fast becoming a reality, thanks

to voter approval of funding that

now may be augmented with

federal stimulus dollars.

With the establishment of

the California High-Speed Rail

Authority in 1996, the groundwork

was laid for a high-speed system

to serve the state’s major

metropolitan areas. The authority

began working on what would

become Proposition 1A, which

called for $9 billion in bond

funding plus $950 million to

improve commuter, intercity rail

and local transit lines. The measure

passed in November 2008.

The massive undertaking is

getting a boost from the federal

government via both stimulus

funding and the fiscal 2010

budget, which sets aside billions

for such projects, says San Mateo

Superior Court Judge Quentin

Kopp, chairman of the authority.

“We have notified both of our

U.S. senators and other interested

parties that with respect to the

government stimulus bill, we’ll be

applying on the basis of qualifying

for about five or six different

items, such as removing more

than 600 grade crossings between

Anaheim and San Francisco,” Kopp

says. “We also will be including in

that application the acquisition of

land and construction of a central

maintenance facility in or near

Merced in the Central Valley, and

a storage yard in the Bay Area

and one in the Los Angeles Basin.”

The cost all requests will be

about $2 billion. “I’m reasonably

confident that a substantial part,

if not all, of our application will

be granted,” Kopp says.

The proposed 800-mile system

would stretch from Sacramento to

San Diego. Trains operating as fast

as 220 miles per hour would travel

from Los Angeles to San Francisco

in about 2 hours, 40 minutes.

– Joe Morris

economic development perspective, the bottom line is jobs, and some estimates forecast that green growth at our twin ports could generate close to 1 million new jobs over 20 years.”

MAJOR IMPROVEMENTS IN LONG BEACHCurrently, the Port of Long Beach has three major infra-

structure projects in the works or wrapping up, according to James Hankla, president of the Long Beach Board of Harbor Commissioners. He identifies them as the $780 million Middle Harbor Project to combine two older piers into a new pier and terminal with enhanced rail transportation; a second new terminal costing about $700 million; and the $1.1 billion replacement of the Gerald Desmond Bridge.

“When we come out of the recession, we will have a very, very attractive infrastructure in place,” Hankla says, “We’re also doing several smaller, rail-oriented improvements and are working on a zero-emission cargo system to move between the ports and the intermodal container facility. We’re trying to make use of this downtime to get the necessary improve-ments done to make us both more competitive and more environmentally sterile.”

Similar efforts at the state’s smaller ports will be just as vital to their long-term success, says Barry Sedlik, president of California Business Ventures and former acting secretary of the California Business, Transportation & Housing Agency.

“Having viable ports and the ability to move goods in and out efficiently is critical to the state’s future economy,” Sedlik

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

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


California Endowment targets 14 communities for ambitious initiative

With nearly 7 million people lacking health coverage – including more than 700,000

children – California has the highest number of uninsured residents in the nation. To compound the problem, the state is peppered with pockets of poverty.

“Low-income communities don’t have the same access to health, social, eco-nomic and cultural supports as their more affluent counterparts,” says Robert Alaniz, public affairs director for The California Endowment, based in Los Angeles. “Families in these communities live sicker and die younger.”

The California Endowment is work ing to change that. The private foundation, established in 1996 after Blue Cross of

California converted to a for-profit entity, provides funding to improve the health of Californians, particularly those in under-served communities.

“Where we live, work and play has a direct impact on our health,” Alaniz says. “The evidence is empirical, and the statistics are undeniable.” Consider that residents along Los Angeles’s South Figuerro Corridor are nearly twice as likely to die prematurely from heart disease as residents of the city’s well-heeled Westside.

To address the inequities, The California Endowment is embarking on a 10-year initiative, Building Healthy Communities, with implementation to begin in 2010. The health foundation

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

ScorecardCALIFORNIA ENDOWMENT GRANT MAKING

$165 millionin fiscal year 2008




Here’s toYour

Health


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selected 14 communities, each of which must develop a plan to achieve 10 specific outcomes that will help reach statewide goals for better health.

One desired outcome, for instance, would be that residents live in commu-nities with equitable housing and health-promoting land use, transpor-tation and community development.

“We selected 14 communities so we can demonstrate that you can turn com-munities around and build them into environments that support community health,” Alaniz says. The selection took into account each community’s need, readiness and willingness to commit to a 10-year effort, infrastructure and leader ship.

The choice of 14 communities (from an initial list of 20) was based on the amount of resources the health foun-dation can commit to the project over the next 10 years.

CHILDREN DEFINE COMMUNITY HEALTH

The California Endowment, which has regional offices in Fresno, Oakland, Sacramento and San Diego, also will par-ticipate in statewide policy/advocacy efforts to create sustainable health

improvements for all Californians. Policy change can occur at the insti-

tutional, local or statewide level. An institutional policy change might mean that hospitals no longer bill low-income, uninsured patients at an inf lated rate for emergency services. A statewide policy change could involve laws that provide universal health coverage for uninsured children. A system change involves mov-ing from the current health-care model of primarily responding to the ill to focus-ing on preventing illness.

In addition to the Building Healthy Communities initiative, The California Endowment offers the Center for Healthy Communities, which provides space for nonprofit organizations and public institutions to tackle California’s most pressing health issues. It also offers curricula that address communication, advocacy and evaluation.

No matter the initiative, the health foundation’s efforts put children as a priority. “The health of a community’s children is a prime indicator for that community’s health,” Alaniz says. “If the children are doing well, it is likely that the community has access to the support it needs to be healthy.”

– Pam George

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

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INNOVATION

Connecting the DocsTELEMEDICINE LINKS RURAL PATIENTS

When a Colusa County

hospital lost the nurses who

monitored high-risk women in

labor, the rural facility faced the

end of its obstetric services.

Enter the UC Davis Health

System. In 1992, the University

of California, Davis, set up a

telephone-based fetal-

monitoring link between the

hospital and the UC Davis

Medical Center in Sacramento.

In 1996, the telemedicine

program expanded to include

real-time audiovisual

technology. Today, the program

covers more than 30 specialties

– including dermatology,

psychiatry, orthopedics,

infectious disease and pediatric

critical care – to give rural

hospitals access to specialists.

Critical-care consultations are

available 24/7, 365 days a year.

Indeed, one pediatrician did an

urgent consultation from his

home on Christmas Day, says

Dr. Javeed Siddiqui, associate

medical director of the Center

for Health and Technology at

UC Davis.

Participating hospitals and

clinics provide equipment for

the telemedicine link. An onsite

physician conducts a physical

exam, if needed, and can control

the camera to zoom in for a

closer look.

“By increasing access to

specialists, telemedicine has

demonstrated that it can

decrease the cost of health

care,” Siddiqui says.

– Pam George


health

Loma Linda University Medical Center enhances health care in Inland Empire

Bigger is better at Loma Linda University Medical Center, the only Level I trauma center in San Bernardino, Riverside, Inyo and Mono counties. The 939-bed

medical center includes a children’s hospital, a behavioral health center and the 23-acre East Campus.

“We’ve been growing by leaps and bounds,” says Steven Mohr, senior vice president of finance, who’s been on the staff for 10 years. “Since I’ve started here, we’ve grown from a $550 million organization in revenues to a $1 billion organization.”

Loma Linda’s reputation is as big as its campus. In 2008, NBC News correspondent George Lewis discussed on-air his nine-week proton cancer therapy there, and U.S. News & World Report included the medical center’s ear, nose and throat specialty on its list of America’s Best Hospitals.

Part of Loma Linda University, founded in 1905 by the Seventh-day Adventist Church, LLUMC treats the mind and spirit as well as the body. Consequently, it’s expanding behav-ioral health services at the Redlands Behavioral Medicine Center, which offers inpatient and outpatient services to treat psychological and substance abuse.

The 46,000-square-foot building, scheduled to open in fall 2009, will increase outpatient services in such areas as mar-riage and family counseling, and social work. “It will be a one-stop shop,” Mohr says.

The facility in Redlands is one of many LLUMC has built or is building in the Inland Empire.

In December 2008, it opened the Loma Linda University Heart & Surgical Hospital in Colton, which offers services in cardiac care, urology, women’s health, head and neck care, and minimally invasive surgery.

Current construction of the 106-bed Loma Linda University Medical Center-Murrieta represents a new direction for LLUMC. The $211 million hospital, expected to open in late 2010, is a joint effort between LLUMC, Physicians Group of Murrieta and Surgical Development Partners, a Nashville, Tenn.-based hospital developer. “We’re always looking to collaborate with other organizations,” Mohr says.

An accompanying medical building is slated to open in January 2011. In five years, the hospital should generate 500 jobs with an estimated payroll of $32 million, according to Surgical Development Partners’ projections. The hospital is considering the addition of 114 beds within two years after opening.

In Beaumont, LLUMC is partnering with Beaver Medical

Group and Redlands Community Hospital to build an outpa-tient surgery center, urgent care center and medical offices. The 85,000-square-foot building is scheduled to open by summer 2009.

“We’re working with area providers,” Mohr says. “Rather than expect them to drive to Loma Linda University Medical Center, we decided to team up and bring quality care to the citizens in these areas.”

– Pam George

On the Move

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


Tourists f lock to California to enjoy – for a week or a weekend at a time – the state’s multiple attractions and exceptional climate. The people who live here can

do so, of course, 52 weeks a year. “The great thing about California is that there are so many

different activities to experience – you can even snow ski and ocean surf all in one day,” says Carolina Beteta, president and chief executive officer of the California Travel and Tourism Commission. “There are world-class entertainment cities and majestic mountain adventures, and wildly beautiful coasts and deserts. No other state offers our diversity and abundance of inspiring landscapes and engaging activities.”

Recreational adventures range from hiking in the High Sierra to kayaking amid sea otters on the Pacific Coast. The landscapes include the highest point in the continental United States (14,505-foot Mount Whitney) and the lowest point on the North American continent (Badwater in Death Valley, 282 feet below sea level).

In fact, the topographic and recreational options in California are so diverse that tourism officials have separated the state into 12 destination regions: Central Coast, Central Valley, Desert, Gold Country, High Sierra, Inland Empire, Los Angeles County, North Coast, Orange County, San Diego County, San P

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CaliforniaDreamin’

State remains a leader in recreational opportunities

30 C A L I F O R N I A B U S I N E S S I M A G E S . C O M C A L I F O R N I A 30 C A L I F O R N I A B U S I N E S S I M A G E S . C O M C A L I F O R N I A

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

Francisco Bay Area and Shasta Cascade.“Each of the state’s 12 regions has its own character, and to

travel from one to another can give you the impression you’ve traveled into a different country entirely,” Beteta says. “There are mystic redwood forests of the North Coast, magnificent granite peaks of the Sierra Nevada and stunning beaches of Southern California. This state simply possesses a spectacular array of landscapes for residents and visitors to enjoy.”

A BOON TO EMPLOYEE RECRUITMENTThe abundant recreational options also help employers

attract the kind of talent needed to keep their companies in high gear.

“There are so many positive things happening here, including the fact that California is a leader in innovation,” Beteta says. “Creative people enjoy living in a creative atmosphere, and California is also a leader in attracting such talent.”

Beteta adds that California’s weather is a major reason why the quality of life is so exceptional. Not only is the climate ideal for active lifestyles, but it is a key component in why the state has such a vibrant agricultural industry.

“As the top producer of agriculture and wine in the United States, California offers the greatest opportunities to expe-rience the best in food and wine – not only in taste but in harmony with the land,” she says. “Great food and great wine also attract visitors, and are simply two more reasons why California remains one of the most desirable tourism and recreation destinations in the world – and always will be.”

In fact, with more than 350 million annual travelers, California is easily the most-visited state in America. Collectively, tourists spend an average of $100 billion annually, and nearly 20 percent of that spending can be attributed to international travelers.

Travel spending in California directly supports 925,000 jobs and a payroll of $30 billion. – Kevin Litwin

READ MORE ONLINEAn eco-friendly development

with 50,000 homes is

proposed in Kings County.


livability

RaisingtheGreen


S ince passage of Assembly Bill 32, the California Global Warming Solutions Act of 2006, the Golden State has been

pumping up efforts to get its energy policy in top shape.

Its sweeping action plan is widely viewed as a national model for pursuing renewable energy and reducing greenhouse gas emissions.

I n November 20 08, G ov. A r nold Schwarzenegger signed an executive order that raised the state’s targeted renewable-energy standard to 33 percent by 2020 – the most aggres sive standard in the country. To reach it, Californians must grow the state’s solar, wind and geothermal energy assets. To further encour-age the growth of green energy, the governor’s order streamlines the approval process for renewable-energy projects.

One month after the signing of that execu-tive order, the California Public Uti l it ies Commission gave the green light to San Diego Gas and Electric’s Sunrise Powerlink electric transmission line. The $1.9 billion project will carry renewable energy that is being developed in the Imperial Valley east of San Diego, says Jennifer Briscoe, SDG&E spokesperson.

“The goal for the Sunrise Powerlink is to fill the 120-mile line with 1,000 megawatts of green energy, which is enough to power 650,000 homes here in San Diego. SDG&E has an agreement

with Stirling Energy Systems for more than 750 megawatts of solar energy. We also have two geothermal contracts for a 20-megawatt and a 40-megawatt geothermal facility. We are also interested in wind opportunities,” Briscoe says. The company expects Sunrise Powerlink to be fully energized by 2012.

The state’s largest electric utility – Southern California Edison – already is the leading pur-chaser of green power in the United States. In 2007, the company purchased 80 percent of all solar power generated in the United States. Its renewable-energy portfolio contains 1,137 mega-watts from wind, 906 megawatts from geothermal, 356 megawatts from solar, 185 megawatts from biomass and 200 megawatts from hydroelectric power sources.

In 2008, SoCal Edison signed contracts to purchase an additional 1,500-plus megawatts of wind energy, and in February 2009, it announced an agreement for 1,300 megawatts of solar thermal power, pending CPUC approval.

GOALS SET AS FAR AHEAD AS 2050

Along with developing clean, green power, the state is taking measures to improve energy efficiency and drastically reduce greenhouse-gas emissions. Assembly Bill 32 calls for emissions to be decreased to 1990 levels by 2020,

Two of hundreds of wind turbines at Altamont Pass near Tracy in Northern California PHOTO BY JEFF ADKINS

StandardCalifornia’s vigorous green-energy

policies set a high bar for the nation

More Insight

INNOVATION

PACIFIC GAS AND ELECTRIC CO. is making it easy for customers to reduce their carbon footprint.

Its voluntary ClimateSmart program uses participants’ tax-deductible payments to fund environmental projects that curb greenhouse gas emissions, such as forest conservation and the capture of methane gas from dairy farms and landfi lls.

More than 31,000 customers have signed on, including individuals, companies and cities.


energy/technology

The San Gabriel Economic Partnership is a regional, not-for-profit corporation committed to the continued

successful economic development of the San Gabriel Valley. The Partnership, a collaboration of businesses,

local government, colleges and universities, pursues this commitment through three areas of focus: Providing

Professional Business Assistance, Advocating Public Policy and Marketing the San Gabriel Valley.

www.VisitSanGabrielValley.com

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

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

OAKLAND

PINOLE

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Solar FlaresPHOTOVOLTAICS PROVIDE ENERGY BRIGHT SPOT

In 2008, Golden State

residents, business owners

and local governments shelled

out cash for a record number of

solar photovoltaic installations

that will generate 158

megawatts of electricity.

With a boost from state and

federal incentives, that figure

was more than double the 78

megawatts installed in 2007.

California now boasts nearly

70 percent of solar installations

nationwide, with a cumulative

total of 441 megawatts of

distributed solar PV systems.

One of the largest

installations in Northern

California is at the Mariani

Packing Co. in Vacaville, which

processes about 100 million

pounds of dried fruit each year.

The company recently put up

5,800 solar panels on seven

acres adjacent to the plant.

The panels generate one

megawatt of electricity –

about 25 percent of the

company’s needs, says Mark

Mariani, chairman and CEO.

“With the state and federal

tax credits and Pacific Gas and

Electric Co. rebates, we’ll be

able to recoup our costs in six

or seven years,” Mariani says.

He adds, “It makes good

business sense because it will

hedge our future utility costs.

And, being in the agriculture

business, we’ve been stewards

of the land for more than 100

years; we want to be good

stewards of the air as well.”

– Carol Cowan

with the governor’s next goal being a reduction to 80 percent below 1990 levels by 2050.

In addition, Senate Bill 375 aims to cut carbon-dioxide emissions by reducing driving. The bill, which garnered support from diverse factions such as builders, environmentalists, local governments and affordable-housing advocates, requires cities and counties to improve public transportation and combat urban sprawl. Under the law, regional planning authorities must develop workable strategies for meeting emission-reduction targets to be eligible for transportation funding.

Energy-conservation programs for businesses and homeowners represent another key component of the state’s overall strategy. For example, Southern California Gas Co. offers free, on-site energy audits for commercial customers. “Since late 2005, we have provided assess-ments for more than 100 of our largest customers – industrial end users that spend more than $500,000 per year for natural gas,” says Raul Gordillo, public relations advisor with the company. “Those who implement our recommen-dations save about 8 percent to 12 percent of their total energy use. Some save 30 percent to 50 percent.”

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

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

Scorecard

RENEWABLE ENERGY USE

14.5percent of state’s electricity drawn from hydro projects

4.6percent from geothermal

2.3percent from wind

2.1percent from biomass

Source: California Energy Commission (2007)


energy/technology

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

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research & development

University of California research spawns hundreds of private sector companies

Imagine a washing machine that notifies you when it’s time to wash clothes, based on the time of day when electricity rates are lowest.

The idea is to reduce electricity consumption at times of peak demand, thus improving power-production efficiency and ultimately curbing the number of plants needed to handle the load.

Researchers at startup company SynapSense Corp. in Folsom aren’t imagining the device that will make this happen. They’re designing it.

Launched in 2006, SynapSense specializes in wireless instrumentation to collect and transmit data. Packaged as devices the size of a matchbox, the SynapSense technology already is in use by Yahoo! and the Lawrence Berkeley National Laboratory to improve the energy efficiency of their data centers.

SynapSense is just one example of a private-sector enterprise born from research at one of the University of California’s 10 campuses. In fact, more than 400 startup companies have been founded based on UC-developed tech-nologies, 55 of them during the fiscal year that ended June 30, 2008, according to Patricia Cotton, director of business development and intellectual property management for the UC system. Licens-ing income for the system from agreements with industry totaled an impressive $128.4 million for fiscal 2008.

GREEN ENERGY AND GENENTECH

“One of the goals of our tech-transfer program is to create public benefit from UC research,”

Cotton says, adding that more than 30 startup companies are in renewable or sustainable energy. From UC Riverside, there’s Viresco Energy LLC, converting feedstocks to a fuel gas. From UCLA, there’s Solarmer Energy Inc., producing trans-parent, f lexible plastic solar cells. From UC Berkeley, there’s Aurora BioFuels Inc., using microalgae to generate bio-oil. And from UC Davis, there’s SynapSense.

“We consider ourselves almost like an exten-sion of UC Davis,” says Raju Pandey, SynapSense co-founder and an assistant professor on leave from the UC Davis Department of Computer Science. Pandey’s university research forms the technological core of SynapSense’s product-devel-opment initiatives. “SynapSense is more about how to take this technology and make it more robust and more scalable and then how to apply it,” Pandey says. The data-center application is the first of many, he adds.

SynapSense employs 27 people who work mostly on system design – both hardware and software – and implementation.

Businesses spawned by UC research cover an array of sectors, from telecommunications and automation to medical devices and biotech-nology. One premier example is Genentech Inc., founded in 1976 after UC San Francisco bio-chemist Herbert Boyer and geneticist Stanley Cohen pioneered the scientific field of recom-binant DNA technology. Considered the first biotech company, Genentech uses human genetic information to make new medicines. – Sharon H. Fitzgerald

INNOVATION

In 2004, California voters approved Proposition 71, which set the wheels in motion for the state’s dominance in stem-cell research.

The ballot initiative authorized the state to sell $3 billion in bonds over 10 years to fund research and to establish the CALIFORNIA INSTITUTE FOR REGENERATIVE MEDICINE.

Today, CIRM is the world’s largest source of funding for human embryonic stem-cell research. It has funded $693 million in research, and donors and insti-tutions have provided about $900 million in matching funds.

More Insight

MarketplaceFromLab to


H ere’s a toast to the California wine industry, which is growing strong even in these tough eco-

nomic times.The industry continues to provide a

$52 billion economic impact for California each year, with nearly 2,700 wineries in oper ation. Wine grapes valued at almost $2 billion are produced annually in California vineyards covering a total 527,000 acres.

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

Ross says California wineries are still

reporting robust sales, although con-sumers have been changing their buying habits to adjust to the times.

“In the past few years, we saw signif-icant growth in the sale of higher-priced California wines, with many bottles selling for more than $20 apiece,” she says. “But ever since late 2008 and now in the current economy, we are seeing a shift by consumers looking for value. Many bottles are selling for under $7,

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

Vineyards and wineries continue to thrive

BottleMessagein a

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agribusiness

INNOVATION

Get the Daily DirtCOMPANY IS AT FOREFRONT OF ORGANIC GROWING

Peaceful Valley Farm &

Garden Supply has been around

since 1976, which is basically

when the organic growing

movement began.

The Grass Valley-based

company has gone from a small

operation to one that sells more

than 4,000 organic products

and today has thousands of

customers. It also has 40

full-time employees.

A third of Peaceful Valley’s

annual revenue is generated

from walkup customers to

its store, while another third

comes via Internet sales from

its www.groworganic.com Web site. The other third is

from catalog sales.

“Our catalog has become

an institution in itself and

has actually become required

reading at some colleges

that offer organic agriculture

courses,” says Luke Giniella,

marketing director. “Organic

farming and gardening has

certainly grown in interest,

especially over the past 10

years, and we have been

along for the entire ride.”

Organic agriculture involves

growing food and plants

while strictly limiting the

use of synthetic fertilizers

and synthetic pesticides.

This sustains the health of

soils, ecosystems and people.

“For example, most people

want to use fertilizers in their

personal gardens, so we

recommend natural products

such as liquid kelp or liquid

fish,” Giniella says.

– Kevin Litwin

while we are also seeing significant growth in the $7-to-$15 price range. So the industry is growing by volume but not as much in value right now, compared to what we experienced over the past four or five years.”

Ross adds that California should remain a strong wine-producing region simply because of Mother Nature. “Our Mediterranean climate of moderate temperatures, warm days, cool nights and Pacific Coast breezes makes California ideal for grape growing,” she says. “Plus the innovations of our winemakers help us compete on a worldwide basis.”

ADVANTAGES OF HAND-PICKED GRAPES

Charlie Olken, publisher of a monthly subscription-only magazine, Connoisseur’s Guide to California Wine, says the state also is fortunate to have a large number of agricultural hand laborers available.

“We can hand-pick our grapes, not like Australia and other places that grow grapes but don’t have such a labor force,” Olken says. “Many of those countries pick grapes by machine, which means that all

of the grapes get picked. That includes the less desirable ones that might have mold, are shriveled and have other defects. That doesn’t happen with California hand-picked grapes.”

The Napa Valley, Sonoma and the Central Coast continue to be the super-stars of California wine production, but Olken says several other parts of the state are strong producing regions. On the southern extremity of the Central Coast, “Santa Barbara is excellent, and its close proximity to Los Angeles makes it where Los Angelinos go to taste wine and enjoy a weekend in wine country,” he says. “Other top areas include the counties of Alameda, Lake, Mendocino, Monterey, San Luis Obispo and Santa Clara.”

Olken also points out that California wineries don’t necessarily need to grow grapes to succeed. “For example, Rosenblum Cellars in Alameda City ships in all of its grapes to a headquarters build-ing, where it then makes 200,000 cases of wine each year,” he says. “There are a variety of ways to make wines these days in California – a variety of success-ful ways.” – Kevin Litwin

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Capital investment and good wages in manufacturing strengthen the economy

CaliforniaScorecardCALIFORNIA MANUFACTURING

1.43 million workers

30,000companies

$250 billionin annual revenue

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

Having It Made in


manufacturing

The long track record of success hasn’t dimmed for the state’s 30,000 manufacturing opera-

tions, which continue to provide a solid base of capital investment and jobs throughout the state.

California manufacturers employ an estimated 1.43 million workers and produce $250 billion in annual revenue – making it the top manufacturing state in the nation.

“Manufacturing’s salary, benefits and job multipliers are very important to California’s working families,” says Gino DiCaro, vice president of communica-tions for the California Manufacturers and Technology Association. “Manufac-turing is the gateway to the middle class for our workers.”

Computer and electronic products, petroleum and coal, chemicals, food products, and transportation equipment make up the top five manufacturing cate-gories in the state. The average annual salary for manufacturing employees exceeds $66,000 – a figure $10,000 higher than the average of all jobs in the state, according to the National Association of Manufacturers.

INCENTIVES PAY DIVIDENDS

Although the sector faces challenges, such as increased environmental regula-tion and suppliers’ price hikes, California’s leaders are working to ensure that busi-nesses continue to thrive.

The state has instituted a system of enterprise zones offering incentives for companies making certain types of busi-ness investments, which helps draw new companies to the area, says Richard Chapman, president and chief executive officer of Kern Economic Development Corp. in Bakersfield. “Some companies can get a $35,000 credit per employee in tax offsets,” he says.

Another positive factor is the state’s network of deep-water ports, provid-ing access to Asia and other overseas markets, Chapman says, adding, “Our market strengths are location, logistics and labor.”

While traditional manufacturing con-tinues under such brand names as Alcoa, Del Monte Foods and Tyco Electronics, the use of innovative technologies and new product development move the indus try forward. One such company is Tesla Motors, an electric vehicle plant in San Carlos. Tesla benefits from another state program that waives sales tax on new manufacturing investment for zero-emission vehicles.

The company’s production facility con-stitutes a $300 million investment and creates about 300 jobs.

While impressive, those figures actu-ally underestimate the plant’s impact, DiCaro says. “For every one job created, 2.5 jobs are created in the economy as a result of the vast supplier networks that are needed in manufacturing.”

– Renee Elder

INNOVATION

A Capital IdeaLETTER OF CREDIT HELPS GUARANTEE INDUSTRIAL BONDS

A business needs to grow to

thrive, and California is finding

ways to nurture growth even

when financial times are tough.

In one case, the California

Enterprise Development

Authority turned a new federal

provision to its economic

advantage by helping Pocino

Foods in the city of Industry in

Los Angeles County, says Daniel

J. Bronfman, president of

Growth Capital Associates Inc.

CEDA is a government

agency – local cities and

counties created it – “and its

role is very specific,” Bronfman

says. “It issues bonds with low

interest rates to finance various

types of projects.”

The federal law passed in July

2008 was intended to support

the struggling housing market

by permitting Federal Home

Loan Banks to back tax-exempt

bonds with letters of credit. But

its provisions also benefit

agencies like CEDA that issue

industrial development bonds.

Shortly after the law was

passed, CEDA became one of

the first issuers to use a support

letter of credit from the Federal

Home Loan Bank Board to

complete a financing. This

“credit enhancement” helps

guarantee the bonds, making

them more saleable.

Pocino Foods, which

produces meat and poultry

products, will use the $9 million

in bond financing to cover $5.5

million of debt and spend $3.5

million for building renovation

and equipment purchases.

– Renee Elder

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

If you’re thinking about starting a business, there may be no better place than California.

A 2007 ranking of startup activities nationally found the Golden State was No. 1 or No. 2 in a dozen industries. These successes come as no surprise to Tracie Stafford, who sits on the

California Small Business Board and owns a Sacramento-based event market-ing and planning company, Exceptional Events Inc.

“Before starting Exceptional Events, I was in management for a high-tech company,” Stafford says. She chose to build the business in California – as opposed to, say, Nevada – because “there are so many programs here to support entrepreneurs, including the governor’s Small Business Board, where folks come together to make sure small-business owners have a voice.”

Stafford’s devotion to California was further strengthened by her travels else-where. “I found California is one of the most innovative states. There’s definitely a spirit of entrepreneurship here that I didn’t see in other states.”

Stafford, who in 2007 became the first African-American to win the Mrs. California pageant, says she’s also been impressed with the state’s efforts to reach out to minority-owned businesses. “There are so many small minority busi-nesses aided by programs the state offers to ensure there’s equality in the distri-bution of government contracts.”

GOVERNOR SETS TONEThe administration of Gov. Arnold

Schwarzenegger strongly supports entrepreneurship and small business, as evidenced by the first Governor’s

Conference on Small Business & Entrepreneurship held in Los Angeles in November 2008. Schwarzenegger invited entrepreneurs and smal l business leaders to discuss ideas on improving the partnership between the private sector and state government to stimulate the economy.

“The governor understands that in times of economic change like we’re going through now, you have to have a process to listen to what constituents need, and that was the whole purpose of the conference,” says Marty Keller, direc-tor of the Governor’s Office of the Small Business Advocate. “Clearly, the governor has a very strong commitment to ensur-ing entrepreneurs have the opportunity to be successful and are not stymied by state policies.”

One example of a successful small business is Merlot Marketing Inc., a full-service marketing agency started in Sacramento by entrepreneur Debi Hammond in 2001. It now has a full-time staff of 17 and recently added a San Francisco office.

In fact, about 98 percent of California enterprises are small businesses; they number 3.6 million companies and employ about 52 percent of the work-force. And that workforce is highly skilled, “thanks to our community college network,” Keller says.

– Jessica Mozo

StartupSuccesses


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

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READ MORE ONLINEStatewide competition will

reward innovative entrepreneurs.


entrepreneurship/small business

See what has arrived at the Montclair Plaza and other popular retailers in the City of Montclair

Your One StopShopping Venue

Make it fun and easy by having all your shopping choices

in one convenient community.

Come see what’s new in town.

Visit Montclair Plaza and you will be amazed at its new look

and exciting new stores.

While you’re in town, be sure to shop at Montclair’s other great

retailers and restaurants.

www.cityofmontclair.org

INNOVATION

A Refuge in Turbulent TimesSMALL BUSINESS DEVELOPMENT CENTERS OFFER VITAL HELP

California leaders know good

businesses often come in small

packages. That’s why 30 Small

Business Development Centers

dot the state to help owners

with everything from securing

financing to expanding operations.

“SBDCs are really valuable,” says

Mike Roessler, director of Small

Business Programs for California

Community Colleges’ Economic

and Workforce Development

Program. “A person can spend

four hours or 14 hours with a

business consultant at an SBDC,

and it’s completely free. Most of

the centers have expertise

in many different areas.”

Twenty-three of

California’s centers are

hosted by community colleges

and receive state dollars to

supplement funding from

the federal Small Business

Administration.

“All our SBDCs are really

focused on the retention of

jobs in this economy, because

there isn’t a whole lot of new

job creation right now,”

Roessler says. “All of them

offer training events focused

on doing business in tough

economic times.”

Despite the fact SBDC

services are helpful and free,

Roessler says they’re not used

as much as they could be.

“We want to encourage small

business owners to visit an

SBDC before they get into

trouble,” he says. “They’re

a support system where

business owners can

seek assistance.

“The centers are focusing

on reaching out as much as

possible and figuring out how

we can work together with

state agencies to assist small

businesses as much as we can.”

Nineteen of the centers are

even reaching out to young

people and inspiring them to

consider the possibility of

starting a company. “Our Youth

Entrepreneur Program focuses

on our SBDCs getting in front of

14-to-27-year-olds to talk about

entrepreneurship as a potential

career path,” Roessler says.

– Jessica Mozo


entrepreneurship/small business

visit ouradvertisersCity of Barstowwww.barstowca.org

City of Montclair www.cityofmontclair.org

City of Pinole www.ci.pinole.ca.us

City of Tulare www.ci.tulare.ca.us

Elk Grove Economic Development Group www.elkgroveedc.org

Hawthorn Suites www.hawthorn.com

Merced County Department of Economic Development www.co.merced.ca.us

Pacific Palms Resort www.pacificpalmsresort.com

Palm Dale www.cityofpalmdale.org

Rancho Cucamonga Redevelopment Agencywww.rcrda.us

Regional Hispanic Chamber of Commerce www.regionalhispaniccc.org

Riverside www.riversideca.gov

San Gabriel Valley Economic Partnership www.visitsangabrielvalley.com

Southern California Edison www.sce.com

Town of Apple Valley www.applevalley.org

BUSINESS CLIMATEThis section of the magazine gives an overview of the economy in

each of nine regions: Northern California, Northern Sacramento Valley,

Greater Sacramento, Bay Area, San Joaquin Valley, Central Coast,

Central Sierra, Southern California and Southern Border.

RESOURCE GUIDE

NORTHERN CALIFORNIA

POPULATION532,494

PER CAPITA INCOME (2006)$30,466

JOB GROWTH (2001-06)1.3%

The Northern California region

is composed of 11 counties –

Del Norte, Humboldt, Lake,

Lassen, Mendocino, Modoc,

Nevada, Plumas, Sierra, Siskiyou

and Trinity – along the north

coast, Oregon border and

northeastern Sierra Nevada.

In terms of population, it is

the third-smallest region in the

state, with 1.5 percent of

Californians residing here

(2006). The region is the second

smallest based on employment,

with 1.1 percent of California’s

jobs (2006).

NORTHERN SACRAMENTO VALLEY

POPULATION508,733


JOB GROWTH (2001-06)6.4%

The Northern Sacramento

Valley region encompasses

Butte, Colusa, Glenn, Shasta

and Tehama counties.

It is the state’s second-smallest

region based on 2006

population, with 1.4 percent

of the population, and is the

third smallest based on 2006

employment, with 1.2 percent

of its jobs.

GREATER SACRAMENTO

POPULATION2,255,258


JOB GROWTH (2001-06)9.4%

The six counties of El Dorado,

Placer, Sacramento, Sutter,

Yolo and Yuba make up the

Greater Sacramento region,

which is the state’s fifth most

populous. The region is home

to 6.1 percent of the state’s

population and 6.2 percent

of its jobs (2006).

MORE ONLINE


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

RE OEEEEEEEEE O


BAY AREA

POPULATION5,746,018

PER CAPITA INCOME$54,234

JOB GROWTH (2001-06)-5.8%

The Bay Area region includes

11 counties: Alameda, Contra

Costa, Marin, Napa, San Benito,

San Francisco, San Mateo, Santa

Clara, Santa Cruz, Solano and

Sonoma. This is the California’s

second-most-populous region,

with 19.8 percent of the state’s

population and 22 percent of its

jobs (2006).

SAN JOAQUIN VALLEY

POPULATION3,834,766

PER CAPITA INCOME

JOB GROWTH (2001-06)9.9%

The San Joaquin Valley

region covers eight counties:

Fresno, Kern, Kings,

Madera, Merced, San Joaquin,

Stanislaus and Tulare. It is

the state’s third-largest region

based on population and

fourth largest based on

employment, with 10.4

percent of the population

and 8.6 percent of the

jobs (2006).

CENTRAL COAST

POPULATION1,128,937


JOB GROWTH (2001-06)3.6%

The counties of Monterey, San

Luis Obispo and Santa Barbara

comprise the Central Coast

region. It is California’s sixth-

largest region, with 2.9 percent

of its population and 3 percent

of its jobs (2006).

CENTRAL SIERRA

POPULATION190,759


JOB GROWTH (2001-06)5.9%

The Central Sierra, California’s

least populous region, is

composed of seven counties:

Alpine, Amador, Calaveras, Inyo,

Mariposa, Mono and Tuolumne.

SOUTHERN CALIFORNIA

POPULATION17,755,322


JOB GROWTH (2001-06)6.5%

Southern California is the

state’s largest region, with

48.7 percent of its population

and 46.9 percent of its jobs

(2006). Los Angeles, Orange,

Riverside, San Bernardino

and Ventura counties make

up the region.

SOUTHERN BORDER

POPULATION3,136,726


JOB GROWTH (2001-06)7.7%

Imperial and San Diego counties

form the Southern Border

region. It is the state’s fourth-

largest region based on 2006

population and third largest

based on 2006 employment,

with 8.6 percent of the popu-

lation and 8.8 percent of the jobs.

FOR MORE INFORMATION

California Association for

Local Economic Development

550 Bercut Drive, Suite G

Sacramento, CA 95811

Phone: (916) 448-8252

Fax: (916) 448-3811

www.caled.org

SOURCES:

California Economic Strategy

Panel, California Association for

Local Economic Development

The information provided was the most current available.


resource guide

Ad Index 9 CITY OF BARSTOW

46 CITY OF MONTCLAIR

34 CITY OF PINOLE

38 CITY OF TULARE

6 ELK GROVE ECONOMIC DEVELOPMENT GROUP

14 HAWTHORN SUITES

C4 MERCED COUNTY DEPARTMENT OF ECONOMIC DEVELOPMENT

10 PACIFIC PALMS RESORT

2 PALM DALE

4 RANCHO CUCAMONGA

REDEVELOPMENT AGENCY

47 REGIONAL HISPANIC

CHAMBER OF COMMERCE

C3 RIVERSIDE

34 SAN GABRIEL VALLEY

ECONOMIC PARTNERSHIP

1 SOUTHERN

CALIFORNIA EDISON

C2 TOWN OF APPLE VALLEY

Documents

California Business Images: 2009