When the Beijing Olympic organizing committee and the Beijing’s Mayor’s office contacted Thinkwell Design & Production in Burbank to come up with ideas on what to do with the lake at the main public gathering area, the instructions to the company were not to build a fountain show. Instead, Thinkwell designers and engineers spent six months sketching out a sculpture of the Olympic rings that would make gentle movements during the day and become part of a water, light and fire show at night. The rings were designed to be 51 feet in diameter and attain a height of 75 feet. Through the use of real-time data from the sporting events fed through motion control devices, the ring sculpture would become a visual interpretation of the action taking place at the games themselves. As big events came to an end, the rings would move faster. In between sporting events they would have slowed down and become more passive. “Those (rings) would have been moving by the athletes performances themselves,” said Craig Hanna, chief creative officer for Thinkwell. “We worked out how to move that data into a signal that would be able to converted into the (sculpture).” Due to Olympic committee constraints, Thinkwell’s design remains just that a concept that was never built. Yes, it was disappointing for the company but it wasn’t as though Thinkwell had lost a competition with its design, Hanna said. A positive for the company is that the technology of inputting real time data into motion controllers devised for the ring sculpture can be used for other moving sculpture or fountain shows. “Light, water, video: all can be interesting new display mechanisms based on real time data generated by sporting events or game or other production,” Hanna said. SAN FERNANDO VALLEY D.I.S.A.R.M.: Los Angeles County Supervisor Michael D. Antonovich joined Chief Probation Officer Robert Taylor and Jack Simms, director of Developing Increased Safety through Arms Reduction Management (D.I.S.A.R.M), in holding a press conference discussing the ongoing success of D.I.S.A.R.M. The D.I.S.A.R.M unit was created by Supervisor Antonovich following the August 1999 shootings at the North Valley Jewish Community Center. The D.I.S.A.R.M program entails pairing deputy probation officers with local law enforcement personnel to perform unannounced searches of probationers and their homes. It targets the confiscation of guns, drugs, and other contraband. The program has resulted in the seizure of 4,275 weapons and nearly $300 million in illegal drugs and drug money. Pictured (l to r): Robert Taylor, Chief Probation Officer; Michael D. Antonovich, Los Angeles County Supervisor; Jae Chong, Deputy Probation Officer (center); Jack Simms, D.I.S.A.R.M Director; Milton Robinson, Deputy Probation Officer. Glendale Excellence: DreamWorks Animation SKG CEO Jeffrey Katezenberg will receive the International Honour for Excellence from IBC for his efforts in promoting 3D feature films. Katzenberg will be given the award in September during the annual IBC entertainment technology conference in Amsterdam. Katzenberg will be interviewed via a 3D television hook-up from Los Angeles with equipment provided by 3Ality Digital based in Burbank. DreamWorks Animation is grateful to IBC for acknowledging its efforts in producing 3D films, Katzenberg said. Starting next year, the studio will release all its animated films in a 3D format. “As we enter the year of 3D, I have never experienced a more dynamic and exciting time within the film industry than right now,” Katzenberg said. IBC International Honour for Excellence recognizes an individual or body which has made an outstanding contribution to advances in technology, creativity or productivity in electronic media. Studio City Apple: Media Distributors started a new division to provide Apple post-production products to the entertainment industry. The Workflow and Technology Solutions Group will design, sell, install and provide service and support for clients in the post-production and broadcast industries. Among the products the group will make available are Apple’s Final Cut Pro and Apple’s Mac Pro. Media Distributors is an Apple valued added professional video partner with the ability to provide support for the complete line of Apple products, editing systems, network-based solutions and an expansive line of shared storage solutions, said President Richard Myerson. “This was a logical next-step in the evolution of our company, as we continue to focus on the needs of our clientele,” Myerson said. SANTA CLARITA VALLEY Santa Clarita Award: The College of the Canyons Foundation Board of Directors has named Harold and Jacqulyn Petersen recipients of the college’s “Silver Spur” Community Service Award for 2009. Since 2001, the couple’s support for College of the Canyons has revolved around several key projects, including the Dianne G. Van Hook University Center capital campaign and the annual Silver Spur celebration. In addition, the Petersens belong to the President’s Circle, a group of community leaders, alumni and corporations dedicated to the success of the college. For more information about how businesses and individuals can participate in the 2009 Silver Spur celebration, contact the College of the Canyons Foundation at (661) 362-3434 or visit the Foundation’s Website at: www.canyons. edu/Foundation. Valencia Arrival: Kabuki Japanese Restaurant announced the opening of a Valencia location at the Bridgeport Marketplace on Aug. 6. Kabuki, a casual dining Japanese restaurant, will open for lunch and dinner daily and has a menu of more than 150 items. Kabuki’s newly-arrived Sake Sommelier Yuji Matsumoto features cocktails on the beverage menu such as a Saketini and Tokyo-style Mojitos made with Sake and Soju. Kabuki also hosts a happy hour featuring a special lower priced menu of sushi, appetizers, and cocktails, Monday through Friday, from 3 to 6 p.m. The Bridgeport Marketplace, where the Valenica Kabuki is housed, is a new lifestyle center at the intersection of Newhall Ranch Road and McBean Parkway. ANTELOPE VALLEY Lancaster Walk: Lancaster held “Walk with the Mayor” activities Aug. 5 and Aug. 7, 8 to 9 a.m. at Lancaster City Park. The program not only provides for ongoing public access to the mayor, city officials, and city management, but also reinforces the city’s stance on building a healthy community. The biweekly walks help participants improve their physical fitness and overall health and give residents a chance to talk one-on-one with city officials and staff about issues affecting them. Fitness instructor Laura Wright supervises the walks and also teaches senior-targeted stretch and tone classes at Lancaster City Park from 9 to 10 a.m., Mondays through Thursdays. For more information about this program, contact Lancaster Recreation Supervisor Angela Riley at (661) 723-6074. Graffiti: In order to make graffiti reporting easier and more convenient for residents, the City of Lancaster has added an online reporting feature to its Web site. A Release from Liability form, which is required before the city can remove graffiti from private property, is also available for download on the site. “We are working to make the city and its services more accessible to our residents,” said Mayor R. Rex Parris. “The capability to report graffiti online is just one more way we at City Hall are reaching out to the community and attempting to make their lives easier.” The online reporting tool and the Release from Liability form can be found at www.cityoflancasterca.org under “I want to ” then “Report Graffiti.” Residents may also call the Graffiti Hotline at (661) 723-5985. Palmdale Ceremony: A ribbon cutting ceremony for Ginza Restaurant was recently held at the restaurant, 1215 Rancho Vista Blvd. Palmdale Mayor Jim Ledford and other city officials as well as Ginza’s owners Fei Fei and Michael McAlinden and members of the Palmdale Chamber of Commerce participated. The restaurant features a Japanese-style menu, including a sushi bar. Launch: A grand opening ceremony for Whispering Palms Senior Apartments was recently held at the complex, located at 38290 9th St. Mayor Jim Ledford and other city officials participated. Whispering Palms offers affordable senior apartments to seniors earning 50 percent of the area median income. CONEJO VALLEY Thousand Oaks Opening: California’s first Massage Heights, a membership-based, therapeutic massage clinic, has opened in Thousand Oaks. Massage Heights of Thousand Oaks differentiates itself from other massage establishments through its affordable, multi-tiered membership program, according to the company. Established as a way to develop long-term guest relationships and to offer consumers cost savings, the monthly fee starts at $49.99, which includes a monthly complementary, one-hour massage, and each additional one-hour massage is $39.99.
Five Honored for Exemplary Financial Performance
In our first special report on Valley CFOs, we received nearly 50 nominations of financial professionals to consider from readers and through our own Business Journal research. The list of these professionals was then culled to 20 individuals who are featured in detail in this report. The 20 were selected by an outside committee of financial professionals. The committee as well as the nomination and selection process was led by Business Journal Editor Jason Schaff with assistance from Business Journal Researcher Ari Morguelan. Five of the 20 honorees were then selected to be featured as the best in different categories based on company size and type. MEDIUM COMPANY AWARD Bob Hudson Henry Mayo Newhall Memorial Hospital Most hospitals have their doctors to credit with being heroes, but in the case of Henry Mayo, one may consider CFO and Executive Vice President Bob Hudson to be the real hero. Before Bob Hudson came aboard at the health care facility, it was in deep financial trouble, and was about to file for Chapter 11 bankruptcy. In April 2001, Hudson joined Henry Mayo when the hospital was $12 million in debt and was cash poor. Hudson assisted in developing a plan to reduce costs, enhance revenue and address Henry Mayo’s cash flow problems. He established goals based on industry standards and now calls Henry Mayo “very profitable,” with an operating margin of 13 percent. One of only a few healthcare providers in the Santa Clarita Valley, Henry Mayo is now healthy enough to pursue expansion opportunities. Before coming to Henry Mayo, the Valencia resident was a Director at KPMG where he was responsible for a wide range of business development matters. Hudson was also vice president of MedPartners, where he was responsible for the financial oversight of three hospitals and ancillary providers. He has used the experiences he has had at his previous jobs to employ a successful strategy at the hospital including installing a new full computer system for the finance department, $75 million in bond financing and maintained a top 25 percent finance performance for the hospital. All of this culminated in the successful navigation through Chapter 11, to a point where now Henry Mayo is now expanding and growing. According to Justin Brauer of Union Bank, before Hudson joined Henry Mayo his predecessors had tried to sell the facility but were unsuccessful. “Bob assisted in developing a plan to reduce costs, enhance revenue and address Henry Mayo’s cash flow problems. He now compares Henry Mayo’s performance based on peer analysis of the top performing hospitals in the state,” Brauer added. A large part of the expense reductions were a result of the elimination of non-core services that were draining Henry Mayo’s cash flow. Bob’s efforts have returned Henry Mayo to profitability and he is now working with the hospital’s management team and board of directors to expand and grow the hospital campus. Brauer adds that Hudson was instrumental in Henry Mayo’s reorganization plan which has ultimately led to positive cash flow and profitability. Bob worked with the court, bond issuer, credit committee, analysts, management team and the hospital’s board of directors to put an expansion plan in place. The expansion plan included a $75 million bond issuance in 2007 along with a $7 million term note from Union Bank of California for exit financing in 2003. The money is being utilized on new projects such as a connecting corridor between hospital buildings, new power plant, new radiology department, new acute care beds, new hospital wide computer system, new ICU, new operating room and emergency room expansion. Ari Morguelan NOT FOR PROFIT AWARD Ken Jones Woodbury University As Ken Jones has said publicly, what he likes best about his job as vice president for finance and administration at Woodbury University is the “family” environment. “We’re a small, private university,” he said, and “our staff really does work well together. It’s a close-knit group that always tries to be on the same page all the time, and we avoid the silo approach.” With just 1,500 students, Woodbury is a significant change from Jones’ experience at Texas A & M;, where he was employed back in the 1980s. In those days, just getting from one side of the campus to the other was a major effort, he recalls. As a non-profit organization, Woodbury also has different financial requirements from a major educational institution. Begun in downtown Los Angeles back in 1884, the Woodbury campus is now in Burbank and is funded from endowments, contributions and grants, and part of Jones’ function is to lead re-investment of that money back into the university. Jones has an extensive background in finance, with more than seven years in commercial finance, a dozen years in non-profits, and five years at the Otis School of Art and Design. He is now in his seventh year at Woodbury. Overall, Jones is in charge of treasury functions and reports directly to the president of the university and the university cabinet, of which he is a member. In addition, he oversees all university administration, human resources and facilities. His own staff includes the director of human resources, the accounting manager and the director of facilities. “I’m especially happy with the relationship that exists among the university trustees, our administrators and the faculty,” Jones said. “That’s a key component in any business and is essential in a non-profit context if we are to be in sync as we determine our mission and strategize our future. In more commercial organizations that sometimes doesn’t occur and it can be a problem. Jones ensures the closeness continues by placing a premium on very open communications where every member of the staff is encouraged to ask questions. Accordingly, the university cabinet meets at least once every week. “That way,” he said, “we create a transparent process where everyone is informed and up to date all of the time.” John Mitchell SPECIALITY ENTERPRISE AWARD Dr. Gary Lysik City of Calabasas One of several cities in the midst of the greater Los Angeles area, Calabasas incorporated a number of years ago and is now a community of about 26,000 residents. Overseeing financial matters is city CFO Gary Lysik. “We’re just 13.4 miles square,” Lysik said, “ranging from Las Virgenes Canyon to Valley Circle to Ventura Blvd., but being small gives us a lot of (operational) flexibility. We work from an annual budget of about $110 million dollars, a large portion of which comes from sales taxes.” Lysik noted that it doesn’t hurt that Calabasas is home to a number of high-end automobile dealerships, including Mercedes, Volvo and others. In addition, the per capita income soars up to $72,400 a year, among the highest in the county. When compared with revenues for the entire city of Los Angeles, Lysik said, Calabasas sees about 4.7 percent of one percent of available money. Lysik spoke from new offices adjacent to the Commons in Calabasas, which he and his staff of 10 occupied less than a month ago and which Lysik, through skillful financial management, helped to make a reality. The title of “CFO” is not common in municipalities in California, he said, and he believes he was the first in the state to be so named preferring that designation over “director of finance.” During his five-year tenure as CFO, Calabasas has moved from a troubled financial posture to one of much greater precision and stability. With a new emphasis on “financial transparency,” Lysik designed a complete set of policies and procedures that have streamlined the path to better, more effective city governance. An acknowledged fan of the job, Lysik has been in financial matters for 26 years, with positions in the Mountains Recreation and Conservation Authority, Edison International and Northrop-Grumman. He followed an MBA from Pepperdine in 1988 with a doctorate of education degree from the same university in 2007. And he admits to political aspirations. Several years ago, he gave running for Congress a lot of serious thought, but his love for finance gained the upper hand. Still, his interest in public service continues, perhaps in the state house, perhaps Washington, D.C. One day, he thinks, the title Congressman Lysik might have a nice ring but not this year. John Mitchell ENTREPRENEUR COMPANY AWARD Sharon Manley Andy Gump Inc. Few products, let alone a company name, have ever become a generic description, but “Andy Gump” has. People speak of “an Andy Gump” when referring to the familiar portable restrooms at outdoor events all over Southern California even if provided by one of the company’s competitors. Talk about a marketer’s dream. Started in the 1930s by Messena “Andy” Gump, the company has become a success locally since 1936 when the family moved west to escape the Dust Bowl in Colorado, and for the past 20 years, Sharon Manley has been a major part of the story. Bringing a 15-year background in banking along with her, Sharon began with Andy Gump as a part-time accountant. “You could say I grew up with the business,” Sharon said. “At the time there were just 40 employees, and total revenues were $2 million. I became the office manager, then was promoted to controller, and finally to CFO. Then, as now, Andy Gump was a family business, and what I tried to do was bring some of the structure of the banking business to bear and make it work.” She also led the company’s transition from manual accounting procedures to a computer-based system. That has eased the financial and administrative complexities of working with multiple facilities, now accomplished by just three employees. And she was instrumental in the successful acquisition of five companies that added to Andy Gump’s reach. What hasn’t changed over the years, Sharon noted, are the old school values and culture that continue to ensure the company’s success. The family culture is “what makes it happen.” At the end of 2007, company revenues were at $25 million and the number of employees had reached 215. And there have been additions to the familiar portable restroom, including solar powered units to drive water pumps, and special upgrades to units seen on motion picture sets. The company also supplies temporary electrical power systems. In addition to the company’s headquarters in Santa Clarita, there are also offices in North Hollywood, Bakersfield, Lancaster and Orange. With no franchises seen for the future, Sharon says the direction for Andy Gump goes toward improved quality. “We don’t necessarily want to be bigger,” Sharon said, “we want to be better.” John Mitchell LARGE COMPANY AWARD Jonathan Mather American Reprographics Co. LLC Jonathan Mather accomplished a lot before he even landed at American Reprographics Company (ARC), most recently working as CFO of wireless router giant NETGEAR as it grew to be the forerunner in the wireless router market. Before working at NETGEAR, Mather worked at Applause Inc., and served in a variety of senior finance roles at other consumer-related and technology companies. Mather is a CMA and a Chartered Accountant, who also has an MBA from prestigious Cornell University. Two years ago he came to ARC where he oversees the entire finance department. Since Mather joined ARC in 2006, he has completed a number of key initiatives which has furthered the company’s acquisition and growth strategies. Just last year, Mather worked closely with a mergers-and-acquisition group to acquire 19 companies with revenues of more than $100 million dollars. ARC now has more than 5,000 employees and in its last fiscal year revenues of $688 million. Mather recently completed a $350 million credit facility, quite a feat during a very tight credit market. Mather, who not only reports daily to the CEO, but also formally four times a year to the Board of Directors as ARC is a public company, has a lot on his plate everyday. Mather, in an interview with the Business Journal, talked about how his experiences at NETGEAR prepared him for his post at ARC, “when I was at NETGEAR I joined the company when it was losing money, and it turned into a profitable company and it went public.” Adding, “(I have) done substantial value creation within companies, and I pride myself on operating with a high level of ethics.” People who work with Mather share a similar feeling about his work ethics. Carlos Herrera, vice president and senior relationship manager for Union Bank of California, said that during his time at NETGEAR, Mather completed a number of key initiatives which included acquisition and growth strategies. Adding, “American Reprographics continues to acquire and integrate companies into its operational platform. Jonathan’s experience has been integral in successfully managing this process.” Herrera stressed the importance of Mather’s completion of a $350 million syndicated credit facility in November of 2007 in a credit crunch. ARC is the leading reprographics company in the United States, providing business-to-business document management services to the architectural, engineering and construction industry. Ari Morguelan
Lockheed Martin, Northrop Grumman now hiring
PALMDALE – Employment at Air Force Plant 42 and its adjacent defense contractor facilities appears to have decreased slightly in the first six months of 2008, but two of the major contractors are hiring. For the first time in several years, the figures released by Plant 42 officials included the employment numbers for the Federal Aviation Administration Air Traffic Control Center. The center employs approximately 500 people, including controllers, technicians and the like, said FAA spokesman Ian Gregor. For the full story visit www.avpress.com/n/18/0818_s6.hts
Pirates, Off-Shore Drilling Concerns
Off-shore drilling, immigration and protection of copyrights were among the issues discussed by Congressman Howard Berman at a breakfast event Aug. 14 sponsored by the Valley Industry & Commerce Association. As chairman of the House Judiciary Subcommittee on Courts, the Internet and Intellectual Property, Berman has taken a lead on working to prevent copyright material theft. The House passed a bill that would consolidate enforcement of copyright protections. That bill is now before the Senate. Pirated audio and video content costs millions each year to individual artists and the large entertainment companies releasing the content, Berman said. Technology has made it easier to copy and distribute digital files of music and movies, and now law enforcement needs to crack down on pirated shipments of DVDs, and federal prosecutors need to file charges against the pirates, said Berman. “A couple of key prosecutions would have a chilling effect on what people do,” he said. When asked his views on off-shore drilling, Berman said he would be open to it but only as part of a larger overall energy plan that would reduce the U.S. reliance on foreign oil and fossil fuels. Statements by the presumptive presidential candidates on the matter are only a political game, Berman said, and the federal government has not shown an effort to develop a serious alternative energy plan. While he wouldn’t like more off-shore drilling, he has faith that technology would make it as safe as possible, Berman said.
As City Matures, Development Issues Get Complex
For a look at the future of development in Simi Valley, take a drive on Madera Road and across the street from the Madera Royal Plaza shopping center and in various stages of construction are the 26 professional and medical office buildings of the Woodranch Professional Center. Or go up First Street to where a multi-story office tower will rise near the Town Center mall or to Tapo and Eileen streets where The Marketplace project combines a shopping center with townhomes and a community center. The city still has some swaths of land for a last gasp of large-scale residential developments but for commercial and retail projects there will be no more the size of the Town Center coming to Simi Valley. Instead what the city will see are smaller infill projects and the redevelopment of existing commercial centers that have reached the end of their lifecycle. This is indicative of a maturing community moving through the transition period from growth mode to one of preserving and maintaining quality of life. Practically surrounded by mountains, the city cannot grow outward. The hillside performance standards restrict building there although the city council and the General Plan Advisory Committee made up of residents could loosen the standards. The city, however, has a practice to not amend those standards, said director of planning Peter Lyons. “At this stage the (committee) and the council wants to analyze growing from within and see what the numbers indicate,” Lyons said. To guide that growth the city is updating its general plan, a process that started last year and isn’t expected to finish until 2009. The plan was last updated in 1988. The planning department will study 12 areas throughout the city that are appropriate for land use changes. They include primarily residential areas, industrial and commercial areas, the Simi Valley Hospital and Ronald Reagan Presidential Library. For instance, the Tapo Street and Los Angeles overlay areas have been identified as ripe for mixed-use projects due to underutilized shopping areas, some of which have a high number of vacancies. In recent years mixed-use development have proven popular with cities as a way to put housing in formerly blighted areas, and near public transportation and jobs. The Americana at Brand lifestyle center in Glendale contains a housing component, complete with concierge service. The Collection in downtown Burbank has upscale apartments and townhomes above retail stores and restaurants. Both those projects are examples of the traditional vertical mixed use in which the living space is on the upper stories, whereas The Marketplace in Simi is a horizontal project in which the housing is behind the commercial buildings. While the horizontal approach is more conservative it brings the concern of handling parking in a separate building. When those types of projects get proposed the council and the community have to decide whether they want parking structures, Lyons said. When the real estate market improves, Simi Mayor Paul Miller expects the city will see more proposals for mixed use. The need for low cost housing for young adults and married couples is particularly strong as right now home prices are out of reach for that demographic, Miller said. “It would be nice to have housing for the kids who grow up and want to continue to live here,” Miller said. City councilmember Michelle Foster said there is a place for mixed use in the city but prefers not to see it done in the urban style of large cities. “It shouldn’t go beyond a suburban feel,” Foster said. Where the council is not thinking small is on the west edge of the city and 115 acres now owned by Waste Management. In updating the General Plan, the council asked city planners to investigate turning that land into an auto mall. By relocating the car dealership district to that parcel from land it now occupies on First Street would open up approximately 30 acres for commercial redevelopment in an area of the city that needs it. While close to the Ronald Reagan (118) Freeway, a drawback to the land is that is difficult to access, Lyons said. Need for office space The smaller infill projects also benefit the city by providing professional and medical office space. The city and neighboring Moorpark historically lacked that type of space to the point where professionals bought land and put up their own buildings. “That woke up a lot of people about the need for office space,” said Assistant City Manager Brian Gabler. The Woodranch buildings and the multi-story office on First Street are just the start of the new office space in the city. The council recently approved a 25,000-square foot medical office building on Los Angeles Avenue. As more professionals moved into the city bringing with them a higher average household income the demand rose for for-sale office space. A project such as Woodranch with unit sizes ranging from 1,716 square feet to 8,121 square feet offers flexibility to prospective buyers, said Gary Seaton, vice president and manager of the Simi Valley office of NAI Capital. As a bedroom community, the city never had the same demographics as, say, nearby Calabasas, Westlake Village and Thousand Oaks to justify a lot of office space, said Michael Slater, a senior vice president with CB Richard Ellis. That has changed. “It is now big enough to justify that type of office building,” Slater said. A housing boom is what helped Simi become big and while it is no longer a boom residential projects are in the planning stages. In Lost Canyon, a developer proposes to replace two golf courses with single family homes and villas. The environmental impact report on that project is expected to begin soon, Lyons said. North of the Town Center mall, a Seventh Day Adventist church has plans to build 125 single family homes, 40 multi-family homes, a church building, school and 100-room residential care facility for seniors. “There are still projects out there that are large scale subdivisions of various sizes and densities that have been in the planning stages for many years,” Lyons said.
View of the Valley
Elaine Freeman is more than happy to be on the sidelines as an observer as the City of Simi Valley updates its general land use plan. After all, she had her turn back in 1988 when a host of other issues faced the city about managing its growth and the look of the homes and businesses. “I think it’s better that the general population participates,” said Freeman, who has lived in Simi Valley before the city incorporated in the late 1960s. Freeman has spent a long career in land use planning in the private sector, first working for a civil engineer, later for Griffin Homes and now as an independent consultant. She also served as the director in Ventura County of the Building Industry Association. Outside of her consulting duties, Freeman chairs the Business Advocacy Committee and Legislative Committee of the Simi Valley Chamber of Commerce; and serves on the California Special Districts Legislative Committee; and the Rancho Simi Recreation and Park District Board. Question: How did you get involved in land use planning? Answer: I was working for the county supervisor. Moorpark was not a city and so there was a lot of proposed development going on. I got really fascinated by the process and what was needed. That was why I went into the urban studies/land use program because for me it was really fascinating. After working for the county I went to work for a civil engineer, which was a wonderful learning experience in the nitty gritty of the process. Then I worked for Griffin Homes, and then I opened my own business. Q: How has the approach to land use planning changed in the city? A: A lot of things have happened on the local, as well as the state and federal, levels; the rules regarding environmental documents. On the local level the general plan was updated in 1988 and that set the policies. In the meantime the city prepared landscape guidelines; they created design guidelines. These are policies, they are not ordinances, yet at the same time it is necessary to follow them. In the mid-1980s, the citizens approved the Hillside Performance Standards and also the growth control limitations, which only allow a certain number of building permits per year. Commercial and industrial is exempt from that. All of this comes from where Simi was, which was so helter-skelter when it was under county rule and we had to overcome a bad reputation with other areas in the county. I think the city has been successful in doing that. Q: When you say helter-skelter does that mean people building anywhere? A: Anytime and anywhere. Q: So the city incorporated to get all that under control? A: Yes. Some of the more controversial items in the early days was getting everybody on sewer, creating a general plan, taking care of Los Angeles Avenue in the business area because it had all different kinds of signs. The sign ordinance came into affect, which was very controversial because signs are important to businesses. Those were the things that were dealt with in the early years. Q: During the 1988 general plan update were there new regulations that were put in? A: The jobs-housing balance and also the mix of single-family versus multi-family. They established the goal of 80 percent single family, 20 percent attached (multi-family). Q: Are there any issues you hope they address that have emerged since the last update? A: I think the biggest issue the city is going to deal with is redevelopment. The city is almost built out. We have the state saying we need to provide so much affordable housing; how to do that without causing a lot of disruption to people, that is a challenge. How many stories do you build; how tall; do you get into high rise or is all low rise; and where is it; are there areas that are going to change significantly? With the urban growth boundaries approved by the voters to meet all of the requirements the city would like to see is what is going on right now and it is a little on the difficult side; I mean, to get housing, retail, all the components. Q: So mixed-use projects will probably be seen more in Simi? A: Yes, I believe so. Especially in light of people not wanting to travel as much and wanting easy access. Q: Do you think those kinds of projects will work in the city? A: There is one on Tapo [Canyon] that is what I would call multi-use, where they are putting in commercial with high-density residential. We’ll see. If the market wasn’t the way it is that project probably would be further along in terms of sales and occupancy. Q: What about the more traditional mixed-use projects with the residential component above the retail? A: I would like to see that and I think the city would consider it. I think it would be in areas of older commercial that need to be revitalized, that need to be torn down and started over again. Q: What can the city do better in terms of land use planning? A: If the process can be streamlined, it wouldn’t be so costly to applicants. The city, in all due respect, wants to see a full plan when it gets to the planning commission or the city council so that the project is well finished. It is not a tentative map or tentative project. It is the project. Q: That way the city knows what it’s getting? A: Exactly. I can understand that from the city’s perspective. It’s a carry over from the when the city was first formed and things were more helter-skelter. They want to make sure everything is the way they want it. Q: What are the big issues you pay attention to on the legislative committees you serve on? A: Regulation that is coming down like AB32 against business. It is greenhouse legislation and making sure that businesses can comply without being too onerous that they shut down or leave. That is a big concern. For local government it is the state budget. A few years ago the voters passed Prop 1A, which prevented the state from taking away local tax money. They can take it away but they have to repay within three years with interest. We are watching it because they are at such a stalemate up there that anything can happen. The [Rancho Simi] park district alone lost $18.8 million to the state to balance their budget over the last eight years. We don’t want the state to take our money. Local government has to balance their budget, why can’t the state? Q: Describe your role in assisting the Reagan Library and the Air Force One Pavilion. A: I did all the permitting through the county for the addition of the Air Force One, which everyone was delighted with. We didn’t have anybody unhappy about that one. Q: Was that a lengthy process? A: It took about a year. And that was pretty fast. The process generally is 15 months. We had great cooperation with the county and the city. SNAPSHOT: Elaine L. Freeman Education: BS Urban Studies, UC Riverside Personal: Married to Jack, one son and two step-daughters, 7 grandchildren Career Turning Point: When I was hired as a chief deputy for the Ventura County Supervisor Most Admired: Eleanor Roosevelt
Southern California home sales jump in July
Southern California home sales rose last month for the first time in nearly three years, although prices continued their downward spiral, data released today showed. In July, the region’s median price fell 31% from a year ago to $348,000, the lowest since February 2004, when the local real estate market was in the throes of an extraordinary boom, according to La Jolla-based research firm MDA DataQuick. The ongoing decline in prices appears to be spurring sales. The number of homes sold picked up in July for the first year-over-year expansion since October 2005. All counties, save Los Angeles County, posted at least a 10% increase from July 2007. The biggest gainer was the region’s foreclosure nucleus — Riverside County — where sales jumped 48.6%. For the full story visit www.latimes.com/business/la-fi-homesales19-2008aug19,0,891063.story
Firms Help Businesses Get Strategy for Tough Times
By Thom Senzee Contributing Reporter Across the San Fernando, Conejo, and Santa Clarita Valleys, accounting firms are finding ways to shepherd their clients through one of the toughest economies to face American business in decades. Those efforts run the gamut from operating under a back-to-basics approach to investing in offshore gaming. At Good, Swartz, Brown & Berns,a Division of J.H. Cohn, business-consulting services from an accounting perspective have taken on a tough-love quality. “It comes down to ‘do you want to survive?'” said David Swartz, a partner at the recently-merged firm. Swartz says he has clients who spend way too much money on certain customers. He advises them to either raise their prices or cut such customers loose. “I have [manufacturing] clients who derive 80 percent of their revenue from 30 percent of their customers,” he said. “In tough times you can’t make up the difference with sales. Just let those high-cost customers go. Or tell them they need to let you drop-ship, for instance.” Swartz believes most business owners are entrepreneurs at their cores, and thus find it an anathema to walk away from a sale. But, he said, sometimes the cost of a sale can be too high. In addition to being a partner at the parent company’s newest division, Swartz was managing partner at Good-Swartz for 15 years prior to that firm’s recent acquisition by J.H. Cohn. As someone who has run a business and as an accountant, he knows first-hand what it feels like to be responsible for an entire operation. “I do get excited, even passionate, because these businesses are peoples’ livelihoods,” he said. “If I have to tell them Wal-Mart is too expensive to have as a customer because they make you act as their warehouse, that’s what I have to tell them.” Swartz said, to his and his clients’ surprise, even Wal-Mart will listen and make changes at the behest of its suppliers sometimes. “All these vendors got used to Wal-Mart telling them how they had to price their products, and no one thought they could tell Wal-Mart otherwise,” he said. “It turns out, these days, even Wal-Mart says yes to changes. Yes; even they will pay more.” The hardest advice Swartz has for companies struggling in this economy is the advice he has yet to offer. “I’ve never had to advise a client to go out of business,” he said. “But I have one now that I might.” Swartz is not ready to agree with the assertion that there is a recession-proof industry,except maybe one. “Accounting is recession-proof,” he said. His counterpart at Encino-based Kirsch, Kohn & Bridge, LLP (KKB) concurs. “I’ve been saying it for a year-and-a-half,” KKB partner, Mel Kohn said. “Everyone [in accounting] should be making money now.” Among the region’s predominant tax accountants, KKB takes a decidedly tax focused approach to advising clients about the nuisances of surviving in harsher times. “The first thing we want to see is whether they’re paying too much in estimated taxes,” Kohn said. “If so, that’s capital they could be spending on their businesses.” Other disciplines Kohn says are important nowadays are making accurate projections, keeping up with receivables, and watching inventory. “The old saying is not to keep cash on the floor,” he said. “It’s important to watch inventory levels.” Kohn said his firm has a wide diversity of clients, a fact which necessitates that he and his colleagues watch commodities markets that range from grain to concrete, as well as all of the world’s money markets with meticulous precision. “Accountants have to know their clients better than anybody these days,” he said. “Now, more than ever, we are in the relationship business.” Meanwhile, in Calabasas, another firm is telling its clients not to miss the boat. The firm’s founder and namesake, Craig Szabo, said he is pointing to a new casino cruise ship operator as a smart investment. Szabo Accountancy Corporation serves professional athletes, as well as Hollywood actors, writers, producers, agents and directors. The scope of such individual clients’ financial interests often amounts to one-person corporations. In addition to accounting services, Szabo says his clients expect him to advise them about where they can make smart investments these days. Contributing Reporter Thom Senzee writes about the accounting industry for the Business Journal. He can be reached at [email protected] .
VALLEY NEWSMAKERS
Aerospace Kevin Wright has joined Meggitt Fluid Controls as group vice president, marketing. In this newly created position, Wright will integrate marketing initiatives across the Group’s five companies, based in the United States and the United Kingdom. Prior to joining Meggitt, Wright was Group Vice President, Customer Satisfaction at Crane Aerospace based in Burbank where his responsibilities included product development, strategic new ventures and sales and marketing. He also held senior management positions with SITA, Vickers and Lucas Aerospace in Los Angeles, Seattle and the UK. A native of the UK, Wright received a bachelor’s degree with Honors in Electrical and Electronics Engineering from the University of Nottingham in England. Banking Wells Fargo Private Bank announces that Scott Hansen will be joining their ranks as senior vice president and regional manager for its Westlake Village and Encino offices. In this role he will oversee a team of 50 financial professionals throughout the San Fernando Valley and Conejo Valley. Prior to joining Wells Fargo, Hansen was vice president and private client advisor at U.S. Trust, Bank of America Private Wealth Management in Westlake Village for nine years. He previously held various positions at Santa Barbara Bank and Trust. Hansen earned his bachelor’s degree from the University of California, Santa Barbara and has served as an adjunct professor in the graduate school of business for California Lutheran University. Consulting Pete Tzavalas joined global outplacement and business coaching consultancy Challenger, Gray & Christmas, Inc. as vice president. Tzavalas will be based in Woodland Hills and is responsible for developing and maintaining business relationships in Los Angeles and surrounding areas. Tzavalas brings more than 20 years of business development and sales experience in management and recruitment to Challenger. Prior to joining Challenger, Gray & Christmas, Inc., Mr. Tzavalas served as a branch manager overseeing five divisions for Robert Half International. Previously, he was a client relationship manager for Capital H Group, an organizational consulting firm. Before his position at Capital H, Mr. Tzavalas was senior vice president of business development at Spherion in Los Angeles and served as vice president of client services at Right Management Consultants. Entertainment New Wave Entertainment has promoted Andrea DeLesDernier to director of communications. She will oversee all aspects of corporate communications, publicity, and media relations for the rapidly expanding production and marketing company. She will report to newly-appointed COO Rick Nowak. For the past two years, DeLesDernier has managed publicity for the company, joining New Wave in 2000 as executive assistant to Paul Apel and Alan Baral. She previously served in a variety of roles at Priority Records. Her new position is in line with the recent restructuring of New Wave’s operations. Hospitality Mike Domingo has been appointed assistant general manager of the new Embassy Suites Hotel in Glendale. The 272-suite hotel, currently under construction, is scheduled to open in September 2008. Domingo will assist in the direction of all areas of the hotel’s operations, including guest services and hotel administration. Previously, Domingo was assistant GM for Courtyard by Marriott in Marina Del Rey. He has a background in revenue management from Holiday Inn Santa Monica Beach and was also influential in leading the hotel to number one in guest satisfaction scores in 2004 as guest services manager. Domingo is not new to the Embassy Suites Hotel family as he was once a key player for the front desk and sales departments at Embassy Suites Hotel Arcadia-Pasadena. Furthermore, he is quite familiar with the Hilton family, since his hospitality career flourished from his employment at the Beverly Hills Hilton in 1999. Information Technology Micah Ciancia has joined Aspyra as regional sales manager for the South Central U.S. region. He has more than a decade of experience in imaging sales, representing companies such as Agfa Healthcare and GE Healthcare Technologies. Rob Pruter, senior vice president of sales and marketing for Aspyra, commented, “Micah has the tenacity and experience to effectively promote the Aspyra product solutions and contribute to the sales growth for the Company. Bringing him on board further represents our continued forward movement in the building of a powerful sales and marketing team for Aspyra.” Manufacturing Robert Haendel has been named as the new president of SolarWorld California Inc. based in Camarillo. Prior to joining SolarWorld, Haendel was product and sales director in the solar division of REC Group. He completed his undergraduate technical degree, as well as a Master in Solar Engineering and an MSc in Mechanical Engineering at Dalarna University in Sweden. Marketing Media production and marketing agency 1K Studios has hired Mitchell Rubinstein as Managing Partner. For the last seven years, Rubinstein was Executive Vice President of both the Original Content and DVD divisions of Trailer Park (formerly Creative Domain), a leading creative marketing services firm catering to the entertainment industry. A pioneer in advanced “added-value” content for DVD and Blu-ray projects, he has been responsible for supervising the development of thousands of projects including games and interactive features, documentary content and menu design. Prior to that, he was with The Cimarron Group serving as president and executive producer of the agency’s Interactive division overseeing more than 500 web, CD-ROM, and DVD projects for such major clients as Pepsi, Warner Bros., Sony, Microsoft, MGM, Nickelodeon, Universal, CAA, Boeing and ESPN. He began his career in the industry as a trailer and feature editor. Media Thomson announced today that it has appointed Alan Wright as senior vice president of business development for Technicolor Network Services. Wright most recently spent eight years leading business development activities at Motorola including the overall strategy and business development for Europe, the Middle East, Africa and India. Prior to that, Wright held a number of positions with systems integrators and professional service companies. Wright is a Chartered Electronic Engineer, and holds degrees from the University of Glasgow and the University of Durham in the U.K. Non-profit The Los Angeles Jewish Home has selected longtime board member and past-president of Jewish Big Brothers of Los Angeles David Swartz as its new board of directors’ chair effective July 1. The board also elected Marshall A. Gluchow, Gary Goldfein and Robert Rodin as new members. Swartz, who succeeds Arthur A. Greenberg in the Home’s top volunteer leadership spot, performs accounting, auditing and business advisory services at Good Swartz Brown & Berns, a Division of JH Cohn LLP, and is the immediate past managing partner of the firm. He has more than 35 years of experience providing business advisory services to clients in several industries, including manufacturing, wholesale, and retail, entertainment, real estate and professional services. Swartz will be actively involved in some of the Home’s newest ventures, including Skirball Hospice and the Annenberg School of Nursing. Goldfein was a co-founder, president and chief executive officer of Interstate Consolidation, a Los Angeles-based transportation and logistics company. Gluchow currently owns Valley Motor Center in Van Nuys. Rodin is the chairman and CEO of RDN Group, strategic advisors focused on corporate transitions, customer interface, sales and marketing, distribution, and supply chain management. Marvin R. Selter has been appointed president of The Olive View-UCLA Foundation. Selter has been a member of the foundation’s board since 1996 and most recently served as the board’s Vice President. Selter is President and CEO of CMS, Inc., a national management consulting firm, which he founded in 1968. Selter has served on various boards throughout the San Fernando Valley and Los Angeles including the Valley Economic Development Center, Med First Health Care and the American Jewish University. He has also served on the Los Angeles Business Tax Advisory Committee and the San Fernando Valley Advisory Commission. He holds a bachelor’s degree from Rutgers and is a licensed Public Accountant. Real Estate Marcus & Millichap has also named three to the position of vice president investments: Jeff Benson, Matthew Friedman and Matthew Ziegler. The achievement of vice president investment status is one of the highest levels of recognition the firm awards its sales agents. It represents excellence in client relationships, investment real estate expertise and sales volume, according to Mitchell R. LaBar, managing director in the firm’s Encino office. Benson joined Marcus & Millichap in 2002 and specializes in multi-family investment sales. Friedman joined the firm in 2003 and specializes in multi-family investment sales. Ziegler joined the firm in 2002 and specializes in multi-family investment sales. Mark Dobbs has joined Hanes Investment Realty, Inc., a firm specializing in apartment investments. In 2007 Dobbs founded and operated a national investment company focusing on acquisitions, development and sales. Through his efforts this venture proved his ability to meet the challenge in all aspects of real estate while benefiting as an entrepreneur. Mark is a California native who received a bachelor of science degree from San Francisco State University. Marcus & Millichap Real Estate Investment Services has named Earle J. Hyman to senior vice president investments in the Encino office. Hyman began his career with the company 21 years ago and has won 11 National Achievement Awards and 20 Sales Recognition Awards in that time. He was inducted into the prestigious Seven-Figure Club in 1994. Hyman serves as a director of the firm’s National Multi Housing Group. SALES Drew Dixon has been hired as sales manager for Sin City Entertainment in Chatsworth. Dixon is a long-time adult industry veteran who has previously worked for Vivid Entertainment, Hustler and Pure Play Media. Staffing Lisa Knupp of Equis Financial Staffing has been promoted from recruiting manager to director of recruitment services. A part of the Equis Financial Staffing team since its inception, Knupp handles placement of CPAs and Accounting/Finance professionals across all industries. In her new position, Knupp will be responsible for all direct-hire placement and will also handle internal training for the department. Before joining the firm, Knupp was technical recruiting manger at Cross Creek Systems in Westlake Village and, in her two years there, was the fastest-promoted associate in company history. Knupp graduated from the University of the Pacific Eberhardt School of Business, earning her bachelors of science in Business Administration in 1995. Technology DataDirect Networks, Inc announced the appointment of David Zimmer to vice president of worldwide channel sales. Zimmer will be chartered with expanding the company’s channel sales and services operations, including growing its channel coverage model, introducing channel-optimized storage solutions and spearheading international growth. Zimmer, a technology veteran with more than 20 years of channel sales experience, comes to DataDirect Networks most recently from Pillar Data Systems, where as vice president of Worldwide Channel Sales, he was named one of CRN magazine’s 2008 Channel Chiefs, and his programs led the company to be recognized by VARBusiness in its Annual Partner Program Guide as a Gold 5-Star winner, as well as one of Computer Dealer News’ Hot Companies to Watch. Prior to Pillar, he was the senior director of Worldwide Channel Sales and Marketing at QLogic, where he was responsible for developing and implementing a global channel strategy that successfully increased channel revenue from $12 million to $200 million in five years. Zimmer has a B.S. in Business Computer Methods and an MBA from California State University, Long Beach.
Weston-Benshoof Westlake Village Office Seen as Critical in Alston & Bird Merger
By THOM SENZEE Contributing Reporter When Atlanta-based Alston & Bird LLC decided to acquire Los Angeles-based Weston, Benshoof, Rochefort, Rubalcava & MacCuish, LLP, the first question in the minds of local legal eagles was “will they keep the firm’s Westlake Village office?” The answer is “yes.” “Yes, because it’s a critical office,” said Weston-Benshoof partner, Tom Cohen, who is the partner-in-charge at Westlake Village. “We’re remaining open as a viable office for our tri-county clients.” Prior to the merger, Alston & Bird and Weston-Benshoof were both already heavyweight regional law-firms each with its own influential presence in Washington, D.C. However, Alston & Bird is much larger, with offices in New York, Washington, Charlotte, Atlanta, Dallas, Research Triangle Park, N.C., and a recently added Palo Alto office. By acquiring Weston-Benshoof, Alston & Bird has become a truly nationwide firm. Before the merger, the acquiring firm had 800 attorneys and practice specialties that included intellectual property, complex litigation, as well as corporate and tax law, focusing on the healthcare, energy and financial-services industries, as well as public policy. With Weston-Benshoof now in its corral, Alston & Bird has 900 attorneys and has added land-use, environmental, sustainability, and climate-change law to its areas of expertise, and has gained added resources in several overlapping practice areas. When Alston & Bird’s partners went shopping for a firm to acquire this year, they knew what they wanted: a powerhouse environmental and sustainability firm. And if it was to be a Southern California firm, it had to be a recognized leader. That, says Cohen is what they found in Weston, Benshoof, Rochefort, Rubalcava & MacCuish. “Alston & Bird was attracted to Weston-Benshoof largely because of our firm’s experience with land-use and environmental law, as well as its energy policy practice,” he said. Alston & Bird’s managing partner Richard R. Hays said the acquisition of Weston-Benshoof is the realization of his firm’s long-held desire to establish a permanent, authoritative home on the West Coast. “While Alston & Bird has been representing clients on the West Coast for years, teaming up with some of the best talent in Los Angeles and Silicon Valley gives us stronger footing in a number of key practice areas that will benefit our clients and better serve their needs.” It is not yet clear what name Weston-Benshoof will take after the merger is finalized. For now, no name change has been announced. Tom Cohen believes attorneys at his firm are also getting a good deal by becoming part of Alston & Bird. In fact, Alston & Bird was named one of the Top 100 Best Places to Work in America by Fortune Magazine. “Our clients will benefit as well,” he said. “It enhances our servicing to our client base from a project-development standpoint, completing the range all the way up to project financing. “Weston-Benshoof didn’t have that before, and from that perspective,just from a selfish viewpoint that really helps me help my clients.”