MODESTO CHAMBER OF COMMERCE
VOL. 39 | ISSUE 1 | JANUARY 2018
TUOLUMNE RIVER MANAGEMENT PLAN LOCAL FORECASTS PREDICT POSITIVE ECONOMIC OUTLOOK
CALIFORNIA'S NEW LABOR & EMPLOYMENT LAWS
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JANUARY 2018 | CONTENTS MISSION STATEMENT
The Modesto Chamber of Commerce is dedicated to serving the greater Modesto Area, regional businesses and community prosperity through advocacy, collaboration, access to leaders, economic development, connectivity and business education.
EXECUTIVE COMMITTEE Chairman
Steven Rank, Rank Investigations and Protection, Inc.
Chairman-Elect
Thomas Reeves, Pacific Gas & Electric Co.
Past Chairman
Leadership Modesto Nonprofit Day
Eric Tobias, F&M Bank
Vice Chairman, External Operations Stephen Madison, STANCO
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Vice Chairman, Internal Operations
Patricia Gillum, Patricia A. Gillum,CPA
DIRECTORS
Annie Amies, Vintage Faire Mall Elliot Begoun, The Intertwine Group Brad Blakeley, Edward Jones Investments Paul Holshouser, Flowers Baking Co. of Modesto Michael Howell, Blom & Associates Warren Kirk, Doctors Medical Center Loren Kuntz, Atherton & Associates Naomi Layland, Huff Construction Co, Inc. Craig Lewis, Lewis Capital Advisors DeSha McLeod, Community Hospice Inc. Michael Moradian, Peace of Mind Pest Control & Home Inspections Kathy Monday, Damrell, Nelson, Shrimp, Pallios, Pacher & Silva and Squeeze In Tom Nielsen, Individual Member Peggy O’Donnell, Mid-Valley Promotion Dillon Olvera, Beard Land & Investment Co. Kristin Reza, Bank of Stockton Lucy Virgen, Bank of the West Pete Zahos, Sysco Central California, Inc.
Message from the CEO Chamber Calendar
COMMUNITY
Tuolumne River Management Plan
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Leadership Modesto Nonprofit Day
ADVOCACY
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MID and TID Unveil the Tuolumne River Management Plan
RELATIONSHIPS
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ADVISORS
Keith Boggs, Stanislaus County Chief Executive Office George Boodrookas, Modesto Junior College David Boring, Never Boring Tim Harms, Leadership Modesto Joe Lopez, City of Modesto David White, Opportunity Stanislaus Melissa Williams, Modesto Irrigation District
Local Forecasts Predict Positive Economic Outlook
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Cecil Russell, President/CEO Modesto Chamber of Commerce CRussell@ModChamber.org
Publisher: Modesto Chamber of Commerce
Announcements Ribbon Cuttings/People on the Move Local Forecast Predict Positive Economic Outlook
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January Anniversaries
EDUCATION
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MJC Strengthens Local Work Force
209.577.5757 • Progress@ModChamber.org www.ModChamber.org
SERVICE
Graphic Design: Never Boring
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209.526.9136 • www.neverboring.com
Printer: The Parks Group
209.576.2568 • mike@theparksgroup.com
Distribution: The Parks Group
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MJC Strengthens Local Work Force
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California's New Labor & Employment Laws Sam and Dave's Market
209.576.2568
DISCLAIMER: The views and opinions expressed in
Advertising Sales:
this publication are those of the authors and do not necessarily reflect the official policy or position of the Modesto Chamber of Commerce.
Never Boring 209.526.9136 • progress@neverboring.com © Copyright 2017 Modesto Chamber of Commerce. Some parts of this magazine may be reproduced or reprinted, however, we require that permission be obtained in writing. 209.577.5757, Progress@ModChamber.org
PROGRESS MAGAZINE
California's New Labor & Employment Laws
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1114 J Street • Modesto, CA 95354 209. 577.5757 • Fax 209. 577.2673 www.ModChamber.org • Progress@ModChamber.org
Attended City of Modesto City
MESSAGE FROM THE CEO
Council Swearing-In Ceremony Attended Modesto City Council Meetings Attended MID Board Swearing-In Ceremony for Stu Gilman
By Cecil Russell,
Chamber President and CEO Attended and Commented at MID Board meeting regarding MID employee raises
The start of a new year always holds so much promise. This month's issue is very informative and should give you some practical information to help your business or organization succeed in 2018. Specifically, you should review the articles on the local economic forecasts and the summary of changed employment laws.
(quoted in the Modesto Bee)
Met with Hispanic Chamber of Commerce President to plan various joint networking opportunities in 2018
December was a busy month, as you can see by the infographic here. We hosted a VIP reception to show Assemblyman Adam Gray our appreciation for his hard work for our region, especially when it comes to issues of protecting our water and economic development. We also were privileged to attend MJC’s Voss-Berryhill Scholarship Luncheon to see the money we raised at Harvest Lunch gifted as scholarships to deserving agricultural department students.
Economic Development Committee Presentation by Angela Freitas, Director of Stanislaus County Planning Department on current projects and future opportunities for residential and commercial/industrial construction, and introduction of Tim Ritchey as new general manager of the Modesto Bee
Our 104th Annual Gala & Members’ Choice Awards is here! Please purchase your tickets from our office for this splendid event at the Gallo Center for Arts on January 27. There is not another celebration like it in Modesto, with food from our best local restaurants, adult beverages, and awards given to the individuals and companies that you nominated. What a way to kick off 2018! We are working on planning our events for 2018: the State of the City, State of the Region, Ag Aware Lunch, State of Business & Education, Harvest Lunch, Oktoberfest, and the Disney Institute. We are always looking for volunteers and sponsors. Please contact us if you are interested. See you at the Gala! | P
MESSAGE FROM THE CEO
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DOWNTOWN SECURITY MEETINGS
Attended various business’ and organizations’ Christmas parties
Chamber Board Hosted Ambassador and Welcome Team End-of-Year Party
RIBBON CUTTINGS & GRAND OPENINGS
HOSTED PRESIDENT’S CLUB VIP RECEPTION FOR
Assemblyman Adam Gray
Attended MJC’s Voss-Berryhill Scholarship Luncheon to bestow
ATTENDED MODESTO SUNRISE ROTARY
GOVERNMENT RELATIONS COUNCIL PRESENTATION BY MID & TID ON TUOLUMNE RIVER MANAGEMENT PLAN
Served at Modesto Gospel Mission’s Happy Birthday Jesus Party, serving dinner and passing out gifts to men, women, and children
Harvest Lunch scholarship awards
• Meetings with City Council Members
Hosted SCORE workshops and luncheons
• Comprehensive Fees Task Force Meeting • Community Organization Meetings • Chamber Committees and Special Events Planning Meetings
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MODESTO CHAMBER OF COMMERCE I MODCHAMBER.ORG
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JANUARY 2018
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CHAMBER CALENDAR JANUARY DEVELOPMENT 10 ECONOMIC COMMITTEE MEETING
FEBRUARY DEVELOPMENT 07 ECONOMIC COMMITTEE MEETING
CHAMBER CALENDAR MESSAGE FROM THE CEO
Modesto Chamber of Commerce** 7:30 a.m.
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CHAMBER ONLINE MARKETING TOOL CLASS Modesto Chamber of Commerce** 4 p.m.
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STANISLAUS GREEN TEAM Modesto Chamber of Commerce** 9 a.m.
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BUSINESS AFTER HOURS Modesto Bee Modesto Chamber of Commerce** 4 p.m.
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GOVERNMENT RELATIONS COUNCIL MEETING Modesto Chamber of Commerce** 12 p.m.
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AMBASSADOR & WELCOME TEAM MEETING Modesto Chamber of Commerce** 8 a.m.
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104th Annual Gala Members and Choice Awards Gallo Center for the Arts 6 p.m.
**The Modesto Chamber of Commerce is located at 1114 J St., Modesto
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MODESTO CHAMBER OF COMMERCE I MODCHAMBER.ORG
Modesto Chamber of Commerce** 7:30 a.m.
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New Membership Orientation Modesto Chamber of Commerce 3 p.m.
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STANISLAUS GREEN TEAM Modesto Chamber of Commerce** 9 a.m.
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BUSINESS AFTER HOURS Network Builders IT 4641 Spyres Way Modesto 5:30 p.m.
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GOVERNMENT RELATIONS COUNCIL MEETING Modesto Chamber of Commerce** 12 p.m.
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CHAMBER ONLINE MARKETING TOOL CLASS Modesto Chamber of Commerce** 12 p.m.
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AMBASSADOR & WELCOME TEAM MEETING Modesto Chamber of Commerce** 8 a.m.
CHAMBER WILL BE CLOSED Presidents' Day February 19, 2018
BUSINESS AFTER HOURS
1114 J St., Modesto Jan. 18 | 4 p.m. Since its inception in 1876, The Modesto Bee has been the region’s premier source of news and information and the leading provider of advertising options in the communities it serves. The Modesto Bee and Bee Media Services have been at the forefront of the digital news and advertising evolution. In September 2017, The Bee moved into a renovated space in the City Center building at 11th and J Streets in the heart of downtown Modesto. The Bee is a true digitalfirst operation—a modern newsgathering powerhouse with the region’s largest audience and a digital marketing and advertising agency that helps connect businesses with customers locally and nationally. The new location—with modern furnishings, floor-to-ceiling glass, and video boards displaying the latest analytics—befits this reality. The Modesto Bee recently named Tim Ritchey as General Manager and Vice President of Advertising. Ritchey played an integral role in the newspaper's digital transformation, successfully piloting the company's Salesforce CRM system earlier this year. "Modesto and the Central Valley communities we serve are rich with talented and innovative people,” Ritchey said. "I am honored and excited to lead our talented team at The Bee and continue working with the community and our business partners." | P JANUARY 2018
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LEADERSHIP MODESTO NONPROFIT DAY By Alana Scott, CDFA First Vice President, InvestmentsCo-Founder Lattig Scott Wealth Management at Raymond James President; Co-Founder. Women’s Education and Leadership league (WELL) Our Leadership Modesto Class of 2018 experienced a robust and heartfelt day visiting local nonprofit organizations, learning how they impact the lives of those who need their services most. We kicked off our morning at the Modesto Chamber of Commerce, meeting our Day Chairs, Mandy Gonsalves, and Kristin Mostowski, who invested much thought and preparation into this day, making us all more informed and civic minded as a result. From there, we headed off on our tours, visiting: • INTERFAITH MINISTRIES • THE VETERAN CENTER • THE SENIOR CENTER • HOSPICE HOUSE
• THE LOGISTICS CENTER
FOR HOSPICE • HUTTON HOUSE • FAMILY JUSTICE CENTER • BOYS AND GIRLS CLUB
Our day concluded at the Chamber of Commerce where we received an eloquent presentation from the Stanislaus Community Foundation’s CEO, Marian Kaanon. Each experience was special but the memory I will cherish most was the little girl who ran up and gave me a huge hug during our Boys and Girls Club visit, and introduced me to all of her friends. They portrayed such courage and joy, that it ignited a fire of hope and urgency to help in all of us who were listening. I will be returning with several of my LeMo family members to keep true to a promise we made to our newfound friends.
COMMUNITY
We learned that although there is still a lot of work to be done, the circumstances are in no way hopeless. If we all contribute in ways that we feel most compelled, to the organizations that we are most passionate about, the needle will move in the right direction, affording us the opportunity to play our part in leaving a lasting impact. | P
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MODESTO CHAMBER OF COMMERCE I MODCHAMBER.ORG
COMING SOON! A new and improved BMW dealership! Our state-of-the-art new dealership will make it easier than ever to enter the world of BMW and for us to better serve you. See you in the showroom!
Are you interested in hosting a
BUSINESS BEFORE HOURS
in 2018?
Contact Communications Assistant,
COMMUNITY
Sandra Montez today! 209.577.5757 or smontez@modchamber.org
JANUARY 2018
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MID AND TID UNVEIL THE
‘TUOLUMNE RIVER MANAGEMENT PLAN’ MID, TID file Amended Final License Application for the Don Pedro Project and Final License Application for the La Grange Project
Water and power are essential resources to economic vitality. The Don Pedro Project (Project)—dam, reservoir, and powerhouse—supports more than $4 billion in economic output, $734 million in labor income and 18,900 jobs within our region. The Modesto and Turlock Irrigation Districts have been responsible and strong stewards of our water and power resources, including the Don Pedro Project, for more than a century. On Oct. 11, MID and TID filed the Amended Final License Application (AFLA) for the Don Pedro Project and the Final License Application (FLA) for the La Grange Project with the Federal Energy Regulatory Commission (FERC). The AFLA is the culmination of a multi-year, comprehensive effort by the Districts in consultation with numerous federal and state resource agencies, Indian tribes and members of the public—working under FERC’s Integrated Licensing Process—to identify and assess the effects of ongoing Project operations on environmental resources. As part of this effort, the Districts worked closely with relicensing participants to compile and review existing information and conduct more than 35 FERC-approved resource studies, including holding 20 consultation workshops with relicensing participants, covering the full range of environmental resources in the Project area. Based on the results of these studies, MID and TID have developed the comprehensive Tuolumne River Management Plan. The Plan describes the Districts’ proposed operations, improvements and resource protection measures under a new FERC license for the Don Pedro Project. “The Management Plan submitted by the Districts is a balanced, sustainable and achievable proposal developed using the best sitespecific science along the Tuolumne River. These studies and models demonstrate that when put into action together, the measures the Districts are proposing achieve the plans goals,” said TID Board President Joe Alamo.
ADVOCACY
The Districts propose, as fully described in the AFLA, a number of measures related to instream flows and flow management, habitat improvements, fish populations and recreation that, in total, are expected to improve targeted fish populations substantially in the lower Tuolumne River, while significantly and effectively protecting the Districts’ water supplies.
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“During the Worth Your Fight campaign, we told everyone how the State Board’s flow-centric proposal would devastate our communities and that a comprehensive proposal based on science was needed to benefit the fishery and secure our water supplies. The Tuolumne River Management Plan is that proposal,” said MID Board President Nick Blom.
MODESTO CHAMBER OF COMMERCE I MODCHAMBER.ORG
On Nov. 30, FERC issued its notice of Ready for Environmental Analysis as well as requests for public comments and preliminary conditions from agencies with license conditioning authority. FERC has begun its own Environmental Impact Study, a draft of which is expected to be released in July 2018. Timing for new license issuance is dependent on FERC’s review and environmental study process. The initial 50-year license to operate the Don Pedro Project expired on Apr. 30, 2016. Since that time, the Districts have been operating based on the previous license conditions and will continue to do so until FERC issues a new license. MID and TID confidently developed the Tuolumne River Management Plan based on the best-available science, which includes balanced solutions that benefit all: the Tuolumne River, the Don Pedro Project, various stakeholder agencies and, most importantly, our customers and our communities. This plan is a necessary component to promote the long-term prosperity of our communities and is the key to providing water security and reliability to our region for the next 50 years. The Tuolumne River Management Plan is: Balanced. Sustainable. Achievable. We encourage you to stay engaged in the process and show your support. Letters of support for the Tuolumne River Management Plan can be directed to and mailed or filed online at ferc.gov: Kimberly D. Bose, Secretary Federal Energy Regulatory Commission 888 First St. NE Washington, DC 20426 Please reference Don Pedro Project No. 2299 and La Grange Project No. 14581 To learn general highlights of the plan, visit www.tuolumnerivermanagementplan.com and for technical information, please visit www.donpedro-relicensing.com and www.lagrange-licensing.com. | P
Life happens at the tabLe
MEETINGS
路
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GROUPS
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JOIN US Saturday, January 27, 2018 Our 104th annual gala members choice awards
ADVOCACY
held at Gallo center for the arts purchase your tickets! modchamber.org or 209-577-5757
JANUARY 2018
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ANNOUNCEMENTS Your Future is Our Business The California Future Business Leaders of America (FBLA), Central Section Leadership Conference for 2018 will be hosted by Gregori FBLA at Joseph A. Gregori high school on Feb. 3, 2018 8 a.m. - 5 p.m. Students at this event will have the opportunity to compete in two of their choices of over 50 competitive business events! Officer candidates will give campaign speeches and student voting delegates will elect their section leaders for 2018-2019! All members will get the chance to network with other chapters throughout the Central Valley and have fun with their friends at the entertainment activities! If you would like to volunteer your time as a competition judge for the day of the event or donate Walmart gift cards for food supplies to be used on the day of the event, please contact: Mr. Lamar Wallace , Gregori High School Wallace.La@monet.k12.ca.us Or Elizabeth Facanha, Parent Volunteer/Brandman University efacanha@brandman.edu Brandman is a nonprofit, private University part of the Chapman University System. | P
U.S. Representative Jeff Denham (R-Turlock) recently announced Haiying Zeng and Divya Katyal of Elizabeth Ustach Middle School in Modesto as the
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California 10th District winners of the Congressional App Challenge for their app “Homeless Network.” Jeff Denham
8th graders Zeng and Katyal designed the app as a platform to pinpoint areas where help is needed the most through crowdsourcing. The app allows members of a community to place a dot on a map specifying an area of need. This then allows service providers and other citizens to more easily provide aid and relief to homeless by visiting marked areas. Their app will be featured on the U.S. House of Representatives’ website (www.house.gov) and displayed in a U.S. Capitol exhibit. “I admire these young students’ attention to issues in our community and their desire to serve those less fortunate,” said Denham. “Homelessness is a serious issue, and here in the Central Valley, we see far too much of it.” | P
MEMBER visit us at modchamber.org or call our membership Director, John Villines at 209.577.5757
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JANUARY 2018
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RIBBON CUTTINGS
MODESTO ON ICE 1131 11th St., Modesto, CA 95354
PEOPLE ON THE MOVE
Center for Human Services (CHS) is thrilled to announce that Gina Machado has Gina Machado been selected as the new Director of Development and Communications. She succeeds Kate Trompetter, who will be working with the agency as a consultant for their strategic plan and leadership development. Machado holds a Bachelor’s degree from California State University, Stanislaus and an MBA from the University of Phoenix. She has over 15 years of banking, finance, sales, and development experience and has a long history with CHS. Machado joined CHS as a volunteer in 2001 and, in 2008, became a member of their Board of Trustees. For the past three and a half years, she has worked with the organization in different capacities as their Capital Campaign Liaison, Corporate Giving Officer and Major Gifts Officer.
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Machado has a strong passion for the work CHS does throughout Stanislaus County helping children and families. She is excited about her new role and the opportunity to have a greater impact on the future of the community. | P
McClatchy (NYSE American: MNI) announced that Tim Ritchey has been promoted to General Manager /Advertising Vice President of The Modesto Bee. Ritchey previously was senior vice president of sales and marketing of The Modesto Bee. Tim Ritchey
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OPPORTUNITY STANISLAUS 1625 I St., Modesto, CA 95354
“Modesto and the Central Valley communities are rich with talented and innovative people,” Ritchey said. “I am honored and excited to lead our talented | P
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Tim has been at The Modesto Bee for the past 10 years and has great knowledge of McClatchy’s central valley media markets. In 2016, under his leadership, The Modesto Bee led the West region in digital revenue growth. Before joining The Modesto Bee in 2007, Tim worked for 13 years in advertising at The Fresno Bee, and was a former GM of a locally owned Fresno sporting goods store.
MODESTO CHAMBER OF COMMERCE I MODCHAMBER.ORG
PROGRESS TO SUCCESS Ta l k di r ect l y t o t h ou sa n ds of l oca l bu si n ess a n d St a n i sl a u s C ou n t y 's t op deci si on - m a ker s. A dv er t i se i n Pr ogr ess M a ga z i n e, t h e a w a r d- w i n n i n g bu si n ess pu bl i ca t i on of t h e M odest o C h a m ber of
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JANUARY 2018
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COVER STORY
LOCAL FORECASTS PREDICT POSITIVE ECONOMIC OUTLOOK
2002M01 2002M07 2003M01 2003M07 2004M01 2004M07 2005M01 2005M07 2006M01 2006M07 2007M01 2007M07 2008M01 2008M07 2009M01 2009M07 2010M01 2010M07 2011M01 2011M07 2012M01 2012M07 2013M01 2013M07 2014M01 2014M07 2015M01 2015M07 2016M01 2016M07 2017M01 2017M07
Annual Percent Change
RELATIONSHIPS
2002M01 2002M05 2002M09 2003M01 2003M05 2003M09 2004M01 2004M05 2004M09 2005M01 2005M05 2005M09 2006M01 2006M05 2006M09 2007M01 2007M05 2007M09 2008M01 2008M05 2008M09 2009M01 2009M05 2009M09 2010M01 2010M05 2010M09 2011M01 2011M05 2011M09 2012M01 2012M05 2012M09 2013M01 2013M05 2013M09 2014M01 2014M05 2014M09 2015M01 2015M05 2015M09 2016M01 2016M05 2016M09 2017M01 2017M05
Percent Change from Previous Year
9/1/1992 3/1/1993 9/1/1993 3/1/1994 9/1/1994 3/1/1995 9/1/1995 3/1/1996 9/1/1996 3/1/1997 9/1/1997 3/1/1998 9/1/1998 3/1/1999 9/1/1999 3/1/2000 9/1/2000 3/1/2001 9/1/2001 3/1/2002 9/1/2002 3/1/2003 9/1/2003 3/1/2004 9/1/2004 3/1/2005 9/1/2005 3/1/2006 9/1/2006 3/1/2007 9/1/2007 3/1/2008 9/1/2008 3/1/2009 9/1/2009 3/1/2010 9/1/2010 3/1/2011 9/1/2011 3/1/2012 9/1/2012 3/1/2013 9/1/2013 3/1/2014 9/1/2014 3/1/2015 9/1/2015 3/1/2016 9/1/2016 3/1/2017
Index Value
Consumer Confidence Index Interestingly, in an environment of Federal Reserve rate hikes, the Consumer 160 Confidence Index continued to increase BY: BY JACQUI D. SINARLE 140 in 2017. The last time such high consumer 120 confidence numbers were observed was as that includes a broader set of economic and social indicators and 100 TWO RECENTLY PUBLISHED REPORTS PREDICT early as 2000, which indicated consumers’ discussion specific to the three-county region. ability to foreseeECONOMIC their short-term u A POSITIVE OUTLOOK FOR THE 80 60 consumption patterns. However, there was STANISLAUS REGION IN 2018. Stanislaus State’s report includes more economic indicators, such a slight decline in the third quarter of 2017, 40 as local banking, and is an aggregate forecast of eight San Joaquin perhaps signaling —and as an important Both the California Metro Forecast,leading produced by the Center for 20 Valley cities from Stockton to Bakersfield, emphasizing the positive indicator that consumption Business—and Policy Research at expenditures the University of the Pacific, and 0 the economic developments of each city to attract new investments. would begin toValley change in theForecast comingReport, created by California San Joaquin Business months, particularly since retail tradethat the local economy will State University, Stanislaus, indicate Stanislaus State reported that in 2017, Stanislaus was the fastest andcontinue leisuretoand hospitality services grow, albeit at a slowing pace. growing county in total employment with 1.94 percent growth, Months employment growth is showing the Conference Board while other counties in the Valley stalled or posted slight declines. first signs of a slowdown. “I do see 2018 as a good year, with rising incomes for residents Modesto’s wholesale trade employment grew by 6.45 percent, the growing demand businesses,” said Jeffrey Michael, Labor Force vs. Employment Growth Forsupporting the first time since 2011,for labor force fastest among other metropolitan statistical areas in the Valley. PhD, executive director of UOP’s Center for Business and 5 growth caught up with employment growth Fresno and Modesto tied for second place in trade, transportation Policy Research. in the Valley, but the pattern that did not 4 and utilities employment, each growing 2.63 percent, and Modesto continue through 2017 as both displayed a 3 saw an average annual increase of 8.84 percent in home values. falling pattern. Labor growth slowed The Stanislaus area’s force economic outlook is “Positive but plateauing,” 2 down at a Gökçe faster rate and became negative agreed Soydemir, PhD, Foster Farms endowed chair of 1 Although construction employment grew 6.38 percent in 2017, Dr. in 2017, which corresponded to shrinkage business economics at Stanislaus State. 0 Soydemir said, “The slowing of growth in Valley total employment in labor force numbers. u -1 became more visible in 2017. For the first time since the recession The two forecasts have some significant differences. -2 The abnormal dynamics can be seen from ended, employment growth was lower than the long-term comparing employment growth of the -3 benchmark rate.” Stanislaus State reported that Valley employment UOP’s haswith morethe geographic of Valley andforecast the state national detail but less breadth growth is slowing at a faster rate than at the state and national -4 indicators and a different geographic focus, covering the Northern figures. The Valley’s total employment levels, and California total employment growth is slowing at a faster -5 California Mega-region a focus on three sub-regions (North together with that of thewith state is slowing rate than at the national level. -6 San atJoaquin and Bay Area) and projecting down a muchValley, fasterSacramento, rate than nationwide. these metro areas individually rather than isaggregated. UOP also Further, the Valley’s slowdown in growth “Retail trade and leisure and hospitality services employment have produces Joaquin Valley Index, faster than the theNorth state.San A continuation of thisa separate publication been the first to feel the impact of rate hikes which are reflected in trend would mean the Valley would be one Months of the first regions in the nation to report a Labor Force Employment worsening unemployment rate after several years of improvement. Employment Growth: State vs. San Joaquin Valley The current unemployment rate in the 6 Valley is at an all-time low, which is u indicative of at or above full employment. 4 Employment is not expected to decrease 2 further in the coming months, consistent with naturally occurring business cycles. 0 However, these rates could be impacted -2 by several factors, most notably federal tax reform and its intent of stimulating -4 the economy without increasing the budget deficit. -6
Months
Valley
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MODESTO CHAMBER OF COMMERCE I MODCHAMBER.ORG
State
Nationwide
San Joaquin Valley Business Forecast Report, 2017 | Volume VII • Issue 1 | 5
credit card interest rates, causing Valley consumers to cut back on consumption expenditures,” Dr. Soydemir observed. “A higher than typical inflation rate and depreciating dollar led to a decrease in the purchasing power of Valley consumers in 2017.”
Michael. “While job growth is slowing, wage growth is picking up as employers are having a harder time finding skilled labor.” UOP’s forecast for slower job growth and long-run slower population growth in Stanislaus parallels the California forecast, projecting the Modesto area will have slightly slower growth than Stockton or Fresno.
Consistent with other dynamics, bank assets and net loans and leases in the Valley are increasing at a slower pace, Dr. Soydemir said. “Bank assets that are past due and nonaccruals are no longer displaying a falling pattern as in previous years. Instead, both the series now display a flat pattern, likely to start increasing in the coming months.”
“In 2018 we expect additional growth in construction and residential development,” Dr. Michael said. “Over the next two years, we expect construction of new housing within Stanislaus County to double from current levels. Even with this doubling, it will still be half the levels of the housing boom, but this should be sufficient to keep up with anticipated population growth.”
According to the Stanislaus State forecast, Dr. Soydemir said, “Stanislaus County/Modesto will do relatively better than the Valley average in 2018, provided that the FED does not resort to further rate hikes and provided the proposed tax cuts help small businesses and consumers.” At press time, however, he noted that proposed tax cuts did not equally benefit California.
Two related items of concern for the Stanislaus area: “First, we don’t anticipate unemployment dropping further in the four-year forecast, but stabilizing between 7.5 percent and 8 percent,” Dr. Michael noted. “Second, the forecast does not predict significant growth in high-wage professional service and information jobs for the area.”
“The depreciating dollar will help farmers’ exports but hurt Valley consumers since they will have to pay more for imported goods,” Dr. Soydemir added. “Cutbacks in retail trade will also affect workers in this industry.”
“For businesses, the most important issue is that the labor market is nearing full employment so that there is tougher competition to attract and retain skilled talent,” Dr. Michael said. “For residents, in addition to the improving labor market, I would note that housing construction has still not closed the gap with population growth so we should see continued upward pressure on rents and relatively
While jobs in Stanislaus have been growing at a nearly 3 percent annual rate for the past five years, UOP projected the pace of growth to slow to 2 percent next year, and slow further to 1 percent growth in 2019-21.
few homes for sale.” | P
Central Valley Metro Forecast Summary Me tro Are a
No n-Farm Payro ll Emplo yme nt (% c hang e )
FOR MORE INFORMATION, VISIT
Une mplo yme nt Rate (%)
2016
2017
2018
2019
2020
2016
2017
2018
2019
2020
Sacramento
3.5
1.8
2.4
1.6
1.4
5.2
4.9
4.6
4.5
4.6
Stockton
3.4
1.8
2.1
1.6
1.3
8.1
7.5
7.2
6.8
6.8
Modesto
3.3
2.8
2.1
1.0
1.0
8.5
7.8
7.8
7.7
7.8
Merced
2.6
2.4
3.2
1.7
1.7
10.5
10.0
9.6
8.9
8.6
Fresno
3.5
2.0
1.7
1.2
1.2
9.4
California
2.7
1.6
1.5
1.2
1.0
5.4
9.1 4.9
9.0 4.8
8.8 4.7
NOTE: Sacramento MSA includes Sacramento, El Dorado, Placer, and Yolo Counties. Stockton, Merced, Fresno and Modesto MSAs correspond to San Joaquin, Merced, Fresno, and Stanislaus Counties.
8.8 4.7
Stanislaus State’s San Joaquin Valley Business Forecast Report:
WWW.CSUSTAN.EDU/SJVBFR UOP’s California and Metro Forecast: WWW.PACIFIC.EDU/DOCUMENTS/SCHOOL-BUSINESS/BFC/ FORECASTS/CA%20FORECAST%20OCTOBER%202017WEB.PDF UOP’s North San Joaquin Valley Index: WWW.PACIFIC.EDU/DOCUMENTS/SCHOOL-BUSINESS/BFC/ NSJV%20REG%20ASSESSMENT/2016/NSJV2017-FINAL2-WEB.PDF JANUARY 2018
RELATIONSHIPS
“The three hottest industries for job growth in recent years have been health care, hospitality, and construction; and we think health and hospitality will both see slower hiring next year,” said Dr.
17
Congratulations
TO THIS MONTH'S MILESTONE MEMBERSHIPS
100 + years
25 + years
PACIFIC GAS & ELECTRIC CO.
BANK OF THE WEST COMMUNITY HOSPICE, INC.
75 + years
DAMRELL, NELSON, SCHRIMP, PALLIOS, PACHER & SILVA GIANELLI & ASSOC - A PROFESSIONAL LAW CORP KENNI FRIEDMAN
BEARD LAND & INVESTMENT CO
MODERN STEEL STRUCTURES
CAPAX-GIDDINGS, CORBY, HYNES, INC.
MODESTO JUNIOR COLLEGE DEPT. OF AGRICULTURE
MODESTO & EMPIRE TRACTION CO.
O'BRIEN'S MARKET (MAIN STORE)
MODESTO IRRIGATION DISTRICT
SKEET'S INSURANCE SERVICE INC.
ROGERS JEWELRY CO. THE MODESTO BEE WILLE ELECTRIC SUPPLY CO., INC
50 years +
15 + years ANDREWS, GLENN & CAROL NEXUS ENGINEERING US BANK
AT&T
VARNI BROTHERS CORPORATION
10 + years
STORER COACHWAYS
CHUKCHANSI GOLD RESORT & CASINO
SYSCO FOOD SERVICES OF CENTRAL CALIFORNIA
GARTON TRACTOR, INC
I. C. REFRIGERATION SERVICE, INC. SEVEN UP BOTTLING CO. OF MODESTO/
O'BRIEN'S MARKET (DALE RD) POPEYES CHICKEN & BISCUITS SIMILE CONSTRUCTION SERVICE, INC.
RELATIONSHIPS
STUART-DAVID
18
VALLEY CHILDREN'S HEALTHCARE
MODESTO CHAMBER OF COMMERCE I MODCHAMBER.ORG
MJC STRENGTHENS LOCAL WORK FORCE
BY OFFERING FIRST IRRIGATION TECHNOLOGY DEGREE IN CALIFORNIA By Steve Amador, Irrigation Instructor Modesto Junior College
Agriculture is the number one industry in California and along
Training students for careers in the irrigation technology industry
with an ever growing urban population, the wise use of irrigation
involves a combination of classroom work as well as outside
water is more important than ever. This wise use and proper
activities and field trips. Field trips have included irrigation
management requires a workforce trained in the latest technology.
industry sights in Oregon, and Washington, Walla Walla Community College’s Irrigation Technology Program, and our
The Irrigation Technology Program at Modesto Junior College is
local C.W. Bill Jones Pumping Plant in Tracy, California. Being
working hard to provide the agriculture industry with qualified
able to see irrigation sites firsthand is a vital component of the
technicians. This past April marked a milestone for the program,
learning process.
as the first graduates participated in the Commencement Ceremony. Upon completion of the program’s second year, it
“With our degrees and classes in place, and our West Campus
awarded five Associate of Science (A.S.) degrees and fifteen
laboratory facilities at 100 percent, we are looking to make
certificates of achievement. This is not only a first for MJC, but for
a positive difference in the lives of our students. We sincerely
California as well, because MJC’s program is the first A.S. degree
thank everyone who has supported the program’s development
in Irrigation Technology in the state.
by providing industry support and direction in order to make MJC Irrigation Technology a success” expressed Steve Amador, MJC
Most importantly, MJC’s Irrigation technology students are
Irrigation instructor. | P
finding jobs. Industry partners have played a pivotal role in placing the students, which has proven to be a win-win for all parties involved. Meras Engineering, Modesto Irrigation District (MID), Irrigation Matters, East Stanislaus Resource Conservation District, Pacific South West Irrigation, California Almond Board and Central Irrigation are a few of the partners that have hired both first-year students and graduates. The Irrigation Technology program is actively working to strengthen these partnerships and develop additional ones in order to provide students with handson experience in the irrigation industry. “I strongly believe that the program prepares you to enter the workforce as an asset to whichever company you are working for, and the MJC program has an instructor who truly cares about the success of his students,” said Ryan Lehikainen, an irrigation designer for Central Irrigation Company, who graduated from MJC in April with an A.S. degree in both Agriculture Business and
EDUCATION
Irrigation Technology. A group of MJC students took the Irrigation Association’s Certified Agriculture Irrigation Specialist (CAIS) test in April, and Lehikainen was one of five students receiving certification. This school year the program will prepare students for the Irrigation Association’s Certified Irrigation Designer (CID) test as well as the CAIS test. JANUARY 2018
19
CALIFORNIA’S NEW LABOR & EMPLOYMENT LAWS GOING INTO EFFECT JANUARY 1, 2018 By Ben Webster, Office Managing Shareholder, Littler Mendelson, Sacramento Office
For California employers, ringing in the New Year also means ringing in a host of new labor and employment laws—laws which generally will make it harder for you to run your business and easier for employees to file lawsuits. Let’s take a brief look at some of the most significant new laws affecting employers in and around Modesto. First, expanded wage requirements: AB 168 prohibits employers from inquiring into, and relying on, an applicant’s prior salary history. Two big ticket items here: this law applies to employers of all sizes (i.e., it has no small business exception), and will require employers to provide an applicant, upon request, the pay scale assigned to the position sought. Speaking of pay scales, the Fair Pay Act was substantially expanded in 2016 to require equal pay (without regard to gender or race/ethnicity) for “substantially similar work,” in contrast to prior law requiring equal pay for “equal work.” Another new wage law (AB 1701) affects certain construction contracts executed in 2018, and provides that direct contractors must assume, and are liable for, unpaid wages, benefits, or contributions that a subcontractor owes for labor connected to the contract.
SERVICE
Second, expanded anti-discrimination laws: Under SB 396, employers with five or more employees must post a workplace notice regarding transgender rights. Employers with 50 or more employees must provide training addressing harassment based on gender identity, gender expression, and sexual orientation, besides the anti-harassment training already required. Farm labor contractors are specifically impacted by SB 295; to be issued a license, farm contractors must provide sexual harassment training to all employees, not just managers and supervisors.
20
MODESTO CHAMBER OF COMMERCE I MODCHAMBER.ORG
Third, expanded civil rights protections: A broadened, statewide “ban-the-box” provision (AB 1008) prohibits most employers with five or more employees from asking an applicant to disclose criminal conviction information until the employer has made a conditional offer of employment. Further, the employer cannot withdraw the offer based on the conviction history until the employer performs an individualized assessment, and follows additional procedures designed to protect the applicant. Another big expansion comes under the New Parent Leave Act, SB 63, requiring employers with twenty or more employees to grant employees 12 weeks of unpaid, job-protected, parental bonding leave (current parental leave laws apply to companies employing 50 or more). Further, consistent with California’s developing role as a “sanctuary state,” AB 450 restricts employers from voluntarily permitting federal immigration officials access to personnel records or access to nonpublic areas of a workplace, unless presented with a warrant. Finally, to cap it off: SB 306 grants the Department of Labor Standards Enforcement (DLSE) the ability to initiate investigations of employers it suspects discharged or otherwise discriminated against an individual in violation of any law under its jurisdiction—even without receiving a complaint from an allegedly aggrieved employee. Please note: Our newest Sacramento associate attorney, Nate Jenkins, provided valuable input for this article. This provides only a brief description of some of the employment laws effective in 2018. It does not constitute legal advice. Employers should consult legal counsel to ensure full compliance with all laws. | P
MODESTO CHAMBER OF COMMERCE
WORK IN PROGRESS a series spotlighting some of our area’s most innovative and successful companies
SAM AND DAVE’S MARKET SERVICE WHEN YOU NEED IT
By: Jacqui D. Sinarle
(Courtesy of Never Boring)
Since opening in September 2016, Sam and Dave’s Market has brought the taste and convenience of an East Coast bodega to downtown Modesto. “I wanted to give the 3,000 people who work, shop, and visit downtown Modesto a place within walking distance where they can go get a quick aspirin, a candy bar, or a soda without having to wait in line or tip a waitress,” explained owner and former Modesto City Councilman Dave Lopez. Sam and Dave’s Market combines the atmosphere and variety of an all-purpose general store with the freshness of a fullservice deli. In addition to offering the prepackaged items typically available at convenience stores, the market boasts a full deli with salads, bagels, breakfast sandwiches, and burritos. Different homemade specials are featured weekly and include soups, chili, and nachos. It’s no coincidence that Sam and Dave’s Market also has a family atmosphere: Lopez works there full time and runs the store, manages inventory, manages books, and oversees all day-to-day operations, while his wife, Sheri Lopez, oversees all operations, and his nephew, John Lopez, helps run the deli. Customers can pick up items on a grab-andgo basis or enjoy a sandwich or snack in the comfortable dining area of the 3,009-squarefoot market, which is located on I St. between 11th and 12th and next to The Firkin & Fox pub and restaurant in Suite 104 of the Eleven/ Eleven Courthouse Plaza building.
“THE MARKET IS UNIQUE WITH AN OLD TIME GENERAL STORE FEEL AND VINTAGE MUSIC PLAYING FROM THE 40'S, 50'S AND 60'S,” …
Sam and Dave’s Market also provides catering and delivery. Its spacious dining area is perfect for hosting meetings and small parties in a friendly yet quiet environment. In addition, the market offers Post Office boxes and passports, and Lopez hopes to add a Fed Ex drop box and possibly include Fed Ex mailing station services in the future. “Since we opened we’ve had tremendous support from the public,” Lopez noted. “We love serving the downtown community, we’re happy to be there having fun, and we appreciate all of our customers!” Sam and Dave’s Market is located at 1111 I St., Suite 104, Modesto 209.408.0633. The market is open Monday through Thursday from 7 a.m. to 5 p.m., Friday 7 a.m. to 3:30 p.m., and closed on weekends unless there are special requests or events. Visit samanddavesmarket on Facebook for weekly specials, special events, and new updates! | P
When business is booming, advertising is the last thing on your mind. But when times get tough, an aggressive ad campaign becomes the last thing you want to spend money on. By maintaining an advertising presence through thick and thin, you can keep your business rolling, stay at the top of your customers’ minds and keep slowdowns to a minimum. Never Boring is an industry expert at creating unique, effective and affordable advertising. Find out how we can keep your business moving forward, visit us today at neverboring.com
B r a n di n g . S t r ate gy. D e si gn.
THE CHAMBER C.A.R.E.S. The Chamber stands by this statement. We practice it on a daily basis. As an organization, we use Chamber Members exclusively. We hope we can ‘count on you’ to practice using Chamber Members to meet all of your business needs. You can find new and current members online at www.ModChamber.org. Progress Magazine is the voice of the Modesto Chamber of Commerce, and the leading business publication in Stanislaus County. For more information or advertising info call 209.526.9136.
PRESIDENT’S CLUB CIRCLE OF INFLUENCE PLATINUM LEVEL
SILVER LEVEL
Flowers Baking Co. of
Storer Coachways
E. & J. Gallo Winery
Acme Construction Company, Inc.
Sutter Gould Medical Foundation
American Chevrolet
Food Maxx
Telcion Communications Group
Walmart
American Medical Response
Galletto Ristorante
The Eberhardt School of Business
Walmart Neighborhood Market
Aramark Uniform Services
Gianelli & Associates
The Modesto Bee
Atherton & Associates, LLP
Gilton Solid Waste Mgmt, Inc.
Turlock Irrigation District
Bank of Stockton
Golden Valley Health Centers
Union Bank
Bank of the West
Brightwood College
Grimbleby Coleman CPAs, Inc.
US Bank
Beard Land and Investment Co.
Brunn & Flynn
Grover Landscape Services, Inc.
Valley BMW
Capax-Giddings, Corby, Hynes, Inc.
California State University,
I.J. Larsen Pumps, Inc.
Valley Children's Healthcare
Doctors Behavioral
Stanislaus
Infiniti of Modesto
Valley First Credit Union Valley Lexus
Kaiser Permanente
DIAMOND LEVEL
Modesto, LLC
Care One Home Health and
International Paper Co.
Doctors Medical Center-DMC
Iron Mountain, Inc.
Vintage Faire Mall
Frito-Lay Company, Inc.
Central Sanitary Supply Co.
JS West & Companies
W.H. Breshears, Inc.
Modesto & Empire Traction Co.
Central Valley Ag Grinding
Maxx Value Foods
Warden's Office Furniture Outlet
Central Valley Automotive
Mercer Foods
Warden's Office Products Center
Central Valley Chrysler,
Mocse Credit Union
Wells Fargo Bank
O'Brien's Market
Winton-Ireland, Strom & Green
Health Center- DMC
Pacific Southwest Container Physician Referral Service-DMC
Hospice, Inc.
Jeep, Dodge
GOLD LEVEL
Central Valley Nissan
Oak Valley Community Bank
Insurance Agency
5.11, Inc.
Central Valley Specialty Hospital
Pacific Gas & Electric Co.
Yosemite Meat Co., Inc.
Crystal Creamery
Central Valley Volkswagen Hyundai
Panelized Structures Inc.
Doubletree by Hilton Modesto
Chukchansi Gold Resort & Casino
Pepsi Bottling Group
Fiscalini Cheese Company
Clark Pest Control
PMZ Real Estate
HealthSouth Rehabilitation
Cloudy in California
Prime Shine Car Wash
Collins Electrical
Rizo-Lopez Foods, Inc.
Memorial Medical Center
Comcast
Rogers Jewelry
Modesto Irrigation District
Covanta Stanislaus, Inc.
Rogers Jewelry Co.
Modesto Nuts Professional Baseball
Damrell, Nelson, Schrimp,
San Joaquin Valley College
RACOR, Division of Parker
Save Mart Supermarkets
Del Monte Plant
Seven Up Bottling Corporation
Seneca Foods, LLC
Delta Sierra Beverage
Smile Shine Family Dental
Sysco Food Services of
English Oaks Nursing
Solecon Industrial Contractors
Solid Networks, Inc.
of Modesto
Hannifin Corp.
Central California
Taco Bell
Pallios, Pacher & Silva
& Rehabilitation Hospital
F&M Bank
Stanislaus Food Products Co.
Final Cut Media
Stanislaus Surgical Hospital
First Choice Physician Partners
Stinson Enterprises Inc.
Flooring Liquidators, Inc.
CONTACT THE CHAMBER TO LEARN MORE ABOUT OUR PRESIDENT'S CLUB LEVEL BENEFITS
dba Modesto Toyota
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WELCOME NEW MEMBERS ACCESS PROPERTY MANAGEMENT
Management
JACKSON HEWITT
PLAYLIVE NATION
Bookkeeping & Tax Services
MATTY RINGEL AMBECK MORTAGE
1700 McHenry Ave., Ste. 2C
Mortgage Services
3401 Dale Rd.
Amusement Places
1165 Scenic Dr., Ste. C-3
Modesto, CA 95350
4265 Spyres Wy. Ste. A
Modesto, CA 95356
Modesto, CA 95350
415.638.0929
Modesto, CA 95350
209.297.3000
209.579.2373
jhnet.com
209.380.3433
playlivenation.com
accesspmca.com
MODESTO CHAMBER OF COMMERCE I MODCHAMBER.ORG
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MODESTO 1016 14th St., Modesto 209.526.9136
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STOCKTON 445 W. Weber Ave. Ste. 124A, Stockton
THE FILM VAULT 1401 J St., Modesto 209.526.9136
neverboring.com 800.317.9136
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Countdown to better.