With the opening of its new cardiac catheterization laboratory, Valley Presbyterian Hospital is now billing itself as the home of the most technologically advanced cardiac equipment in the Valley. The new $4 million Fritz B. Burns Valley Cardiac Cath Lab opened May 13 on the first floor of the hospital near the operating rooms and emergency department. The lab features a new monitoring system and digital imaging technology that will allow physicians to more clearly see the heart and blood vessels and review patient information from one workspace. The new technology will also allow the hospital’s cardiologists to explore treatments that will improve circulation to a variety of organs. “This lab allows us to visualize the anatomy of the heart and the rest of the body in a much more refined way,” said Dr. Munaf Shamji, director of the cath lab. “It’s going to allow us to do procedures better, and, in addition to do this, we’ll also have intra-vascular ultrasound, which also then allows us to go into the artery itself and look, make a more informed decision about what arteries would best benefit from interventions, such as angioplasty or stints, or from simple medical therapy.” Because Valley Presbyterian is designated as a STEMI, or heart attack, receiving center, the new cath lab makes all the more difference because the technology in the old cath lab wasn’t as cutting edge. “Basically, it allows us to treat more patients quicker,” said Valley Presbyterian CEO Albert L. Greene. “These are patients you want to get into a cath lab for angioplasty very quickly.” Because Valley Presbyterian’s patient volume is steadily rising,it has experienced an 8 percent increase in patient volume compared to last year,treating patients as quickly as possible is a priority, according to Greene. But the fact that the new technology will also enable the hospital to more effectively treat patients is equally as significant, he said. “This [technology] will also allow them to put in state-of-the-art electrophysiological equipment,” Greene noted. “We have far more patients who have electrical problems with the heart than plumbing problems , so it will have the capacity to do electrical cardiac mapping that we didn’t offer.” The new cath lab has been three to four years in the making. Its creation was made possible almost entirely from community donations, most notably a lead gift of $1 million from the Fritz B. Burns Foundation. “This is just one of a number of gifts that Fritz B. Burns has made,” Greene said. The foundation recently made another gift to allow Valley Presbyterian to renovate its operating rooms, a project that is now underway. “Fritz B. Burns has been one of our most generous benefactors,” continued Greene. But Dr. Shamji also credits the leadership of the hospital with making the new cath lab possible. “In the era of health crises all over the country, the bitter reality is that health care costs continue to rise and reimbursement continues to dwindle,” Dr. Shamji said. “It’s kind of humbling to make such a large investment in the hospital simply to ensure that the community it serves is being justly treated, even though Valley Pres is in a community … with a large number being underinsured. For the hospital, it’s a testament to great leadership.”

We’re an optimistic bunch here in the Valley. We’re also smart and take a long-range view of things. Maybe that’s why those in other parts of L.A. don’t think we’re as cool as they are. The recent San Fernando Valley Economic Forecast released by CSUN showed that area businesspeople were optimistic about the future despite concerns about the current economic downturn. – 38 percent of those responding to a survey said they expected to expand their plant capacity in 2008 while 5 percent expected to contract. Last year, 33 percent expanded. – 60 percent of Valley companies responding expect their gross sales to increase in 2008 compared to 57 percent in 2007. Nearly 24 percent expect level gross sales and 17 percent anticipate lower sales. Most local businesspeople expect heightened or intense competition this year and businesses expect to expand their workforces this year. In fact, the average expected reduction in workforces in 2008 is 8.6 percent compared to 14.3 percent last year. Yes, there are some severe problems in the local economy. Residential real estate is troubled. Home prices have come down at double digit rates and home sales are at new lows. Foreclosures are edging ever higher. Construction permit activity slumped last year. So these troubled conditions in the real estate sector tend to trickle down through the economy. Massive layoffs in the mortgage industry reduce the buying power of those people in that sector and related industries. Some uncertainties cloud things, too. A Screen Actors Guild strike this summer could send a jolt through the economy at a bad time. And of course there are fuel costs. But some experts say the housing sector has hit bottom or is close to it and then will recover. We’ll get through this. Key businesses see long-term growth and are planning for it. This Business Journal tries to be very cautious in jumping on the media bandwagon of doom and gloom that is all too prevalent today. I think our coverage reflects that. You see stories of businesses and sectors of the economy that are doing well and stories about how businesses are getting through this storm. And some stories of optimism. Let us know the good and the bad out there. Business Journal Editor Jason Schaff can be reached at (818) 316-3125 or at [email protected] .

Valley Glen Los Angeles Valley College can now take its job training program to those who need it most with its mobile manufacturing technologies lab. The newly refurbished lab contains $200,000 in office mills and lathes and computerized simulators to upgrade the skills of employees at Valley manufacturers; retrain workers who have lost their jobs; and to show high school students what manufacturing is about. The school rolled out the 40-foot lab for the first time at the third annual Aviation Career Day at Van Nuys Airport at the end of April, and invited students at the Valley College campus to take a look on May 13. “We just want people to see it so they know that it is available,” said Lennie Ciufo, the job training director at Valley College. The school purchased some of the equipment for the lab, while Haas Automation Inc. in Oxnard donated machines as well. Funding comes from a U.S. Department of Labor grant. The equipment is the office models of the larger permanent machines that Valley College offers through its job training program. The original targets of the mobile lab were employees at San Fernando Valley manufacturers in need of upgrading their skills. Adding the retraining of workers who have been laid off came along only when job losses began to occur. For example, the lab will be taken to the Harman International Inc. campus in Northridge where more than 300 manufacturing jobs will be phased out over the next year. The college has already started computer skills training and English classes for the workers losing their jobs, Ciufo said. “If we can do a good job of training maybe we can avert some of the layoffs,” Ciufo said. Even with the loss of jobs, Southern California still remains among the top manufacturing areas in the country. A common complaint among manufacturers in the San Fernando Valley is the difficulty finding qualified people to come work with them. The perception remains that the work is dirty and backward. In bringing the lab to high schools, Valley College wants to change that perception. With the computerized machines on board, a student can engrave a keychain with their name. Information will also be available on the types of careers manufacturing offers, Ciufo said. San Fernando Valley Burbank Concert: Burbank Music Academy hosts a fundraising concert “Rockin’ For the Arts” on June 14 at the Starlight Bowl. The concert features bands made up of academy students, adult bands and special guests. Proceeds will benefit the family of Raulito Ochoa who was diagnosed with leukemia and has been in and out of Childrens Hospital; and the Childrens Hospital Los Angeles Fund for Austin Cook, who died in November. For more information contact (818) 845-ROCK. Calabasas Festival: The awards ceremony for the Method Fest Film Festival will air on two area cable providers. The 85-minute ceremony is made available through its producer Charter Communications and the video-on-demand service of Time Warner Cable. Footage from Method Fest airs on Charter channel 980 under the Community Interest tier. On Time Warner, turn to Channel 1 across its Southern California service area. Charter and Time Warner are both media sponsors of the festival. Canoga Park Contest: Congressman Brad Sherman presented the 27th annual Congressional High School Art Competition awards May 4 at the Canoga Park Youth Arts Center. Best-in-show was awarded to Austin Tallynn Carpenter, a sophomore from Valley Alternative High School. Austin, who edged out 64 other students, received an all-expense-paid trip to Washington, D.C., compliments of Southwest Airlines and Time Warner Cable, to attend a June ceremony with Congressman Sherman. Her painting will be displayed at the U.S. Capitol for one year. Crystal Gutierrez, a junior from High Tech High School, and Thilina Fernando, a sophomore from Valley Alternative High School won first place in the categories of photography and painting, respectively. The runner-ups’ artwork will hang in Congressman Sherman’s Washington, D.C., and Sherman Oaks offices. High Tech High was also awarded a $400 Arts Grant from Gelb Enterprises for having the most contest entries. Chatsworth Recycle: Planet Green hosts a two-day electronic waste collection at its parking lot in Chatsworth on June 13 and 14. Residents can drop off televisions, computers, monitors, keyboards, cameras, inkjet and toner cartridges, wires and cables, video game consoles and telephone equipment. Any private information residing on hard drives will be destroyed using a state-of-the-art disk-wiping process. Planet Green, a remanufacturer and recycler of printer cartridges and cell phones, is located at 20724 Lassen St. Encino Derby: In an exclusive agreement with LA Derby Dolls, online social community and gaming site Urbaniacs.com is bringing a Derby Doll alter ego to its online community. In exchange for the fun new character on the site, Urbaniacs is cosponsoring LA Derby Dolls summer camp for teenage girls. “Adding the LA Derby Dolls avatar to Urbaniacs.com has already appealed to a new group of online gamers, notably young women,” said Josh Fisher, developer of Urbaniacs.com. Northridge Awards: The Alumni Association of California State University, Northridge, awarded sophomore Natalie Torbati, 19, a Best Buy gift card for creating the association’s official new slogan, “You’ve Got Connections.” This marks the first time that a student has created a slogan for the association. It will be featured on the CSUN Alumni Association’s homepage, in the Northridge magazine and in newsletters set to go out in the upcoming fall 2008 and spring 2009 semesters. CONEJO VALLEY Agoura Hills Launch: Family-run business Tifa Chocolate has opened its new store, Tifa Chocolate & Gelato, at 5013 Kanan Road in Kanan Village in Agoura Hills. “We are so excited about the opening of our new location. We have some really fun activities planned for the grand opening all centered around chocolate and gelato, of course,” said Mike Ashamalla, owner of the store. Tifa Chocolate specializes in sales of hard-to-find chocolates from around the world. Thousand Oaks KCLU: Larry Hagman of “Dallas” and “I Dream of Jeannie” fame and his wife, Maj, will host a celebration in honor of National Public Radio station KCLU May 31, at their Ojai ranch. The casual gathering is slated from 2 p.m. to 5 p.m. at the Hagmans’ Heaven Ranch. Guests can roam the grounds, enjoy the view and meet other KCLU supporters. KCLU serves more than 70,000 listeners in Ventura and Santa Barbara counties and is a community service of California Lutheran University in Thousand Oaks. Tickets for the “Spring into Summer” event are $150 and are partially tax-deductible. Various packages and sponsorship opportunities are available. For more information, call (805) 493-3684. ANTELOPE VALLEY Palmdale Purple Day: The American Cancer Society’s “Paint the Town Purple” event May 1 created awareness for the 2008 Relay for Life fundraiser. Purple ribbons, bows and a banner filled Palmdale’s Poncitl & #225;n Square to raise consciousness. Many local businesses took part in the festivities as well. The official Relay for Life kickoff took place at the Larry Chimbole Cultural Center. The run will be the weekend of Sept. 20 and 21 at Highland High School; teams forming now. DryTown: DryTown Water Park & Mining Company, the Antelope Valley’s only water park, opened May 24 for its third season. “New this year will be our ‘Sundown at DryTown’ events where we open the park from 6 p.m. to 9 p.m. on Friday evenings from July 11 through August 1,” said DryTown Water Park Manager Eric Dombrowski. Lancaster Honor: The National Kidney Foundation of Southern California honored Kaiser Permanente physician Phillip J. Tuso at its 29th annual Gift of Life Tribute Celebration Dinner on May 18. Dr. Tuso received the “Spirit of Nephrology Award” for his dedication to the Foundation to Improve Renal Nutrition, which he founded to help patients with kidney disease live longer and healthier lives through proper nutrition and education. SIMI VALLEY Simi Valley Remembrance: Holocaust Remembrance Day was observed May 4 at Mount Sinai Memorial Park in Simi Valley. The Mount Sinai Shoah Quilt has been 18 months in progress and is comprised of memory squares from families all over the world. During the event, Rabbi David Wolpe of Sinai Temple dedicated the Shoah Quilt of Memory and gave the kenote address.

The College of the Canyons will have its hands full in the next year thanks to a $400,000 state grant that will have them coordinating the workforce development programs of all of the community colleges in California. Called the Economic and Workforce Development Program Coordination Services Grant, it is renewable over a five-year period and will create three new positions at the college: a project director, a conference services coordinator and an hourly support position. “It’s related closely to our mission statement at the college,to provide relevant academic education at the lower division level and workforce opportunities for all who seek those kinds of opportunities,” said Bruce Getzan, dean of economic development at COC. “It was an important opportunity for us to pursue.” The grant, which the California Community College Systems Office awarded, kicks in June 1. Getzan believes that a primary reason COC obtained it is because of its history of promoting economic development in the Valley. The college has worked with the biotech and manufacturing sectors, in addition to other industries, to address workforce and economic development issues in the Valley, according to Getzan. It has also played a role in expanding and developing more than 600 businesses through a variety of training programs. To boot, COC runs an annual conference for entrepreneurs. Getzan believes that the college’s background in conference organizing was crucial because the grant mandates that its recipient run the annual Economic and Workforce Development Conference, which brings together economic development professionals as well as those from the government and private sectors. The grant also requires that COC coordinate meetings of the EdPac Advisory Committee, made up of community college presidents, other academic officials and government officials. Lennie Ciufo, director of job training at Los Angeles Valley College, is hopeful about the work that COC will do now that it has been given these additional responsibilities. “We have always believed in having people group together for a common cause,” Ciufo said. “If they can coordinate ideas and share ideas and institute partnerships for the same common goal of economic and workforce development, if they can get more of a regional approach to economic development we might be able to work out ideas and become a team.” Ciufo said that Valley College specializes in bridge training, or providing students with skills that meet the needs of specific industries. “We do a lot in logistics, a lot of manufacturing, healthcare, in giving people skill sets,” he said. “That’s what we’ve been successful in doing. As long as you organize the employers to help you determine what their needs are, you’ll be successful.” Getzan has a similar philosophy, but noted that the economic downturn will be a challenge as COC attempts to coordinate the various workforce development programs at community colleges throughout the state. “We’re in a tough economy right now, trying to keep business competitive, keeping the workforce up to date so that businesses can stay in California, stay in the Santa Clarita Valley, the San Fernando Valley and the Antelope Valley areas,” he said. For information on the three economic and workforce development positions now available at COC, contact Bruce Getzan at (661) 362-3144.

Article 1, Section 1 of the California Constitution states: All people are by nature free and independent and have inalienable rights. Among these are enjoying and defending life and liberty, acquiring, possessing, and protecting property, and pursuing and obtaining safety, happiness, and privacy. The dictionary defines inalienable as absolute and undeniable. Article 1, Section 19 of the California Constitution (establishing the law for “eminent domain”) states: Private property may be taken or damaged for public use only when just compensation, ascertained by a jury unless waived, has first been paid to, or into court for, the owner. When reading the above-noted sections of the California Constitution, it appears relatively clear that all people have an absolute right to their property unless the State or a local government requires it for “public use.” Unfortunately, the term “public use” has been broadly interpreted to include such actions as the taking of property from one private owner and transferring it to another private owner (a developer) to build a new commercial center in a “blighted” neighborhood and to transfer from one private owner to another private owner, who used it to operate the same type of business as the original owner, when the “public use” project that the property was originally taken for was aborted. Propositions 98 and 99 were created in an attempt to prevent the taking of property from one private owner and transferring it to another private owner, thus removing the ability to broadly interpret the Constitution in the area of “eminent domain.” Proposition 98, the “California Property Owners and Farmland Protection Act,” appears to cover all privately-owned property (personal and business) whereas Proposition 99, the “Homeowners and Private Property Protection Act,” regardless of its title, covers only the owner’s principle place of residence which has been occupied by the owner for at least one year prior to the State or local government’s initial written offer to purchase the property. Both propositions are flawed. Proposition 98, because it proposes to both constrain state and local government authority to take private property and to eliminate rent control, may be in violation of California’s Single-Subject Rule which states: “An initiative embracing more than one subject may not be submitted to the electors or have any effect.” Additionally, some people share the following concerns expressed by the Los Angeles Times on May 12, 2008: “By barring the transfer of any economic benefit to one or more private persons at the expense of the private owner, Proposition 98 could open the door to lawsuits whenever a government agency zones in such a way that it raises the value of some properties and reduces the potential for others. That could jeopardize efforts to create open space or protect water quality.” Personally, I’m not sure that this is a valid concern since the applicable provision in the proposition actually bars “regulation of the ownership, occupancy or use of privately-owned real estate property or associated property rights in order to transfer an economic benefit to one or more private persons at the expense of the property owner. Thus it appears that for the concern to be valid, the zoning would need to have been done for the purpose of transferring the economic benefit from the private owner to another private person rather than for a public purpose such as open space or a water quality project with an unintended transfer of benefit to one or more private persons at the expense of the property owner. Proposition 99, although prohibiting the government transfer of an owner-occupied residence to another private party allows some exceptions. One such exception is for private uses incidental to, or necessary for, a public works or improvement project. Some believe that this exception could be easily abused. This proposition also contains what is known as a “poison pill” provision. If both Propositions 98 and 99 receive “yes” votes of more than 50 percent and Proposition 99 receives more “yes” votes than Proposition 98, it wins and Proposition 98 is invalidated. Thus if both pass, the one that will survive is the one that does absolutely nothing for business property. Eminent domain is a very complicated issue. Any changes in the current law should go through the legislative process where they can be thoroughly vetted through committees where amendments can be made resulting in final bills that have been considered from many perspectives and have the best chance of being successful. To place the decision regarding this issue in the hands of the voters, many of whom are not adequately informed on the subject, with the result being a constitutional amendment that can only be changed through another drawn-out process requiring a vote of the people, could be disastrous. Gregory N. Lippe, CPA, is Managing Partner of the Woodland Hills-based CPA Firm of Lippe, Hellie, Hoffer & Allison, LLP, Chairman of the Valley Industry and Commerce Association and a Director of First Commerce Bank.

Question: We recently discovered that a company secured a web page using the trademarked name of a division of our company. They appear to be taking advertising revenue from our competitors and displaying it on the site. Beyond that, they are not selling any goods or services. Although the site URL is registered to them, this is damaging our business. What options to we have? Answer: The conduct you describe amounts to trademark infringement. You have several choices. The quickest and cheapest route is to engage counsel to send the offending company a cease-and-desist letter notifying them of the infringement and demanding that they stop using the domain name. Your counsel might further consider including a demand in the letter that they transfer the domain name to your company — the trademark holder (and perhaps even include a nominal fee the cost of the domain name registration). If this does not resolve the issue, there are two ways to proceed. Your company may file a trademark infringement action in federal court, which is a time consuming and expensive process. The other option, and the one that is preferable from my standpoint, is for your company to use an Alternative Dispute Resolution (“ADR”) process designed specifically for website domain disputes offered by World Intellectual Property Organization (“WIPO”). The WIPO process is fast (generally less than 60 days), and far less expensive than full-blown litigation or even other ADR options. When one registers a gTLD domain name (a “gTLD” is a generic top-level domain that ends in .com, .net, .org, etc.), the standard Terms and Conditions provide that the registrant agrees to submit to dispute resolution processes under the Uniform Domain Name Dispute Resolution Policy (“UDRP”). WIPO administrates cases under UDRP. If you are interested in learning more about this process, I invite you to visit www. wipo.int. Q: My company is currently under investigation by the Department of Labor regarding certain alleged wage and hour violations. The Department of Labor is responding to complaints received by certain ex-employees. My question is whether I, as a corporate officer, have personal exposure should the Department of Labor find violations. A: You can breathe easy. The current law in California is that individual owners, officers, and managers of companies are not personally liable for Labor Code violations arising from failure to pay earned wages, including accrued vacation. This issue was recently addressed in a case captioned Bradstreet v. Wong (decided April 16, 2008) by the California Appellate Court. The court, for a number of reasons beyond the scope of this limited discussion, applied the common-law definition of “employer”, which includes the company (not the individual owners themselves). Notwithstanding the foregoing, you should be diligent and proactive in addressing and correcting any true Labor Code violations while the problem is still manageable. Q: Can we offer a discretionary bonus plan to certain executives based on a percentage of net profits? A: Without carefully reviewing your proposed plan, I cannot opine as to whether your particular plan comports with applicable state and federal laws; however, as a general rule, the California Supreme Court affirmed that incentive bonus plans based on company-wide net profits are legal so long as they are otherwise properly drafted and implemented. Prior to the California Supreme Court ruling last year in Prachasaisoradej v. Ralphs Grocery Company, Inc., the answer to your question was much less clear. In Prachasaisoradej, filed as a class action, plaintiffs claimed that Ralphs’ plan unlawfully enabled the employer to deduct certain operating costs (e.g., costs of workers compensation, loss prevention, shrinkage, and the like) from employee wages, contrary to the California Labor Code. However, in reversing the Appellate Court, the California Supreme Court found that since the bonus plan was paid in addition to employees’ regular wages, and was not built around individual performance but rather store-wide performance, the bonus plan constituted a lawful incentive program rather than a scheme to illegally deduct operating expenses from employee wages. Nevertheless, this area is fraught with landmines for the unwary. Prior to finalizing and implementing any such plan, be sure to retain the services of qualified experts in this field. This column contains general information and under no circumstances constitutes legal advice. This information is not provided in the context of an attorney-client relationship and nothing herein creates an attorney-client relationship. Readers should not act upon this general information without first seeking professional advice. Ira Rosenblatt is a business and corporate lawyer and a co-founder and Director of Stone, Rosenblatt & Cha, a business law firm in Warner Center. Rosenblatt has earned Martindale-Hubbell’s highest rating (“AV”) for legal ability and ethics and is listed in Martindale-Hubbell’s National Bar Register of Pre-eminent Lawyers. He can be reached at [email protected].

By THOM SENZEE Contributing Reporter Ultra-clean stainless steel has been the bread-and-butter material for Chatsworth-based Fluid Line Technology Corp. for 19 years, but global competition has the firm taking a fresh look at its core business. “In the beginning, 19 years ago, customers wouldn’t buy anything but U.S.-made,” said company president and cofounder, Pete Marcilese. “But today there is a changeover. A lot of components are now made overseas, whether from Europe, or China, India, or Taiwan.” For the most part, Marcilese says, those countries and others now have the technology necessary to make the super-hygienic componentry needed by customers ranging from biotechnology firms to conventional pharmaceutical makers for the development, testing and production of medicines. Still, one factor is keeping the foreign competition at bay, at least for now. “Customers,at least our customers,need their orders yesterday,” Marcilese says. “And when you’re dealing with Taiwan, China, Europe, there’s no such thing as ‘you can have it tomorrow.'” Marcilese, who left a larger firm two decades ago to form Fluid Line with a colleague, describes his business in simple terms. “We manufacture custom-fabricated pieces,piping components, or tubing components for mostly the pharmaceutical, biotech and biopharma industries.” he says. “And because of logistics, we’ve been able to stay in business in spite of being in a high-cost labor market.” One of the company’s cornerstone business practices is rigorous tracking of where orders go, even though its sales are handled almost exclusively by distributors. Those efforts fall under the purview of marketing director, Vincent “Mitch” Mitchell, who believes in taking the company’s product line on the road to international trade shows, where, he says, customers gravitate to the Fluid Line exhibits. “Although there is kind of a gap between us and many of the customers, it’s incumbent on us to know where our products go,” Mitchell said. “So we keep a pretty big database of where everything goes and who has it.” All of Fluid Line’s metal-tubing products are ISO 9000-compliant, which means everything from materials to manufacturing processes are certified to meet a broad range of precise industry standards. “Initially these products were made in Europe,Italy, to be exact,but they didn’t conform to U.S. standards for surface finish and surface cleanness, so we began making them here,” Marcilese said. But a changing philosophy about cleaning the custom fabrications Fluid Line produces may mean storm clouds are on the horizon. “We have discussed the idea of single-use products,” Mitchell said. “The cost of the cleaning regiment for the tubing that is used in pharma can be very high. A lot of companies are now talking about one-use, disposable fluid line products.” Marcilese says new plastic materials may make it possible to create a new line of disposable tubing products for their biotech and pharmaceutical customers. But it’s not yet clear if Fluid Line Technology’s customization business would crossover into plastics. For now, the company sees no sign of a slowdown as it continues producing its line of ultra-clean, ultra-polished, advanced-materials tubing. It goes back to the adage, “If ain’t broke, don’t fix it.” “We have been profitable almost from the beginning,” says Marcilese, who was born in Argentina. “The challenge is to stay that way. People see the cost disparity between our product and the non-custom stuff from overseas and they say ‘why? It’s only 12 bolts.'” But, says Mitch Mitchell, customers soon realize the savings attained in the labor-intensive cleaning process required for pharmaceutical fluid lines, in which all biological material must be eliminated. “It takes longer the more joints and connections they have,” Mitchell explains. “The more customization you have, the fewer connections, and of course less cleaning costs.” Fluid Line’s labor costs range from $12 to $23 per hour for welders and polishers, plus benefits such as vacation pay and health insurance (the company pays half for employees, and allows family members to be added for an extra premium per person). “We also pay 100 percent of the employees’ pensions,” Marcilese said. He says training of experienced welders takes about five to six months before they are up to speed with the specific requirements of Fluid Line’s manufacturing processes. “The way things are welded today bears almost no resemblance to 19 years ago,” he said. “But it’s the ongoing training they get used to; they get used to seeing different pieces of which they will only ever make one.” The company has no current expansion plans, but is capable of doubling production in its current space should the need arise. “Occasionally we do have a need to bump it up, and we just work overtime,” Mitchell said. SPOTLIGHT: Fluid Line Technology Corp. Year Founded: 1989 Revenues in 2004: $2.5 million Revenues in 2007: $4 million Employees in 2004: 20 to 22 Employees in 2007: 20 to 22

When a major national retailer says they’re closing hundreds of low-performing stores across the country, and four of them are in relatively close proximity to each another, one might expect to hear a lot of buzz about it. But it seems to be business as usual for the four Valley shopping centers where Linens ‘n Things has declared they will be pulling up stakes under a bankruptcy reorganization plan. General Growth Properties, which owns the Fallbrook Center in Woodland Hills, seemed unfazed by the news. “We certainly never want to see a retailer close at any property,” said Kirsten Lee, vice president of leasing for GGP’s regional office in Glendale. But, she added, “We just put the wheels in motion to find an appropriate tenant to backfill the space.” It would be the only space available in the fully-leased center, Lee said. Over at Glendale Marketplace, a principal with Western Commercial Real Estate echoed Lee’s sentiment. “It’s well located and there’s a limited supply of space like that,” said WCRE’s Scott Burns, who represents the center, “so we’re confident that we’ll find a replacement tenant.” Although Glendale Marketplace lost another major tenant, CompUSA, last year, Burns said they are “very close” to signing a lease with a major retailer. Moorpark Marketplace owner David Blatt of DSB Properties, simply said that they had not been notified of when the store would be closing because it was up to the bankruptcy court. He declined to comment on future prospects but John Tchetchenian, leasing manager at the Janss Marketplace in Moorpark about five miles away, which hosts a Linens ‘n Things that will stay open, said that he didn’t anticipate that DSB would have any problem filling the space. The smallest center of the four, Riverside Woodman Plaza in Sherman Oaks, on the east side of the Fashion Square mall might have problems attracting a new national tenant given that their building has not been renovated in years and has challenging parking and access issues. But representatives from the ownership, a private trust, did not respond to a request for comment and the manager of the Riverside Linens ‘n Things said he had no information about a closing date yet. Optimism on the part of the leasing people at these shopping centers is warranted, according to John Weiss, first vice president of Marcus & Millichap in Encino. The San Fernando Valley economy is in much better shape than the nation in general. For example, a recently-released Colliers International report on the national state of retail reported that retail sales across the U.S. have been slowing, ” as reflected in March retail sales which were up just 3.8% year-to-date.” That number jumps significantly, to 5.3 percent, when sales of automobiles are removed from the retail revenues equation, according to the U.S. Census Bureau’s April numbers. Even after factoring in rising prices the consumer price index increased 0.6 percent in the quarter, and 3.9 percent over April of 2007 there is still retail sales growth. The Colliers report stated that in the Los Angeles area, the average retail vacancy rate in the first quarter was still just 3.9 percent compared with a national retail vacancy average of 6.5 percent. The area’s retail rents are also still among the highest in the country, averaging $28.41 per square foot, compared to $16.93 nationally. With nearly 2 million square feet of retail space under construction in the region, that vacancy rate could climb somewhat, but new centers do not seem to be struggling to find tenants. “The worst thing out there is uncertainty,” said Valley native Weiss, adding that the area’s diverse economic base is still generally healthy: “I don’t see a lot of homeless people (in the Valley). I don’t see a lot of distress foreclosures.”

By THOM SENZEE Contributing Reporter A San Fernando Valley law firm has created a special task force to advocate for victims of the auction-rate securities crisis, which has made investments that were billed as being “as good as cash,” in terms of liquidity, now virtually illiquid. While not exactly the millionaires’ mortgage meltdown, the $330 billion ARS debacle bears some parallels to that more middle-class financial crisis. The most significant similarity is the assertion that investment brokers obscured the risks of such securities, as did some mortgage brokers with variable-rate home loans. “These are securities that allowed either individuals or businesses to invest at rates of return, on a short-term basis, that would otherwise be typically given in a money market or other vehicle,” says Sanford Michelman, partner at Encino-based Michelman & Robinson, LLP (M & R;). Auction-rate securities are long-term investment opportunities that have paid like short-term bonds. Issuers reset rates every few weeks, so investors could cash out with a profit in as few as seven days,theoretically. Furthermore, conventional auction-rate securities usually had a penalty clause that compelled the issuer to pay investors who couldn’t sell their securities at auction at a price that would make them whole. But a different type of auction-rate security eventually made its way to brokerage houses and investors. So-called “preferred” securities appeared to be no different than conventional ARS investments, yet they had no buy-back guarantee from issuers. “As attorneys representing clients, anytime you hear ‘cash-equivalent,’ your antennae should go up,” Michelman said. “You do your due diligence and you start to peel back the onion, and see they’re not as safe as they say.” That, says Michelman, is what began happening at his firm in 2005 when some of M & R;’s clients began to be involved in transactions in which auction-rate securities were presented as collateral or capital. “By 2006 we were on high alert,” he said. In fact, Michelman said, not only was M & R; tracking the issue as the firm’s lawyers saw more and more transactions based in part on the liquid value of ARS investments, it averted disaster for more than one client by advising them to divest themselves of the instruments as soon as possible. “We were able to advise a host of clients not to invest as well,” he said. Michelman says ARS investors range from wealthy individuals (this type of security was once sold only in increments of $250,000, though recently in denominations of $25,000), as well as medium- and large-sized companies. ARS auctions began to fail earlier this year. Institutions that were once willing to step in and stem losses by buying ARS certificates, such as Bank of America, Merrill Lynch, and Morgan Stanley suddenly declined to do so. Locally, some brokers are not completely surprised by the predicament facing ARS investors, while others are fighting not to become scapegoats for their bosses. “We are representing a handful of brokers,” says Michelman. “The ARS task force is working to make sure people at the top of some brokerage houses who were really responsible for deceptive practices don’t get away with using subordinates as their scapegoats.” But Dennis DeYoung, branch manager for Morgan Peabody in Northridge, says selling auction-rate securities as if they are absolutely liquid is unconscionable. “Any honest broker is going to tell you the only thing as good as cash, is cash,” DeYoung said. “I don’t think those investors have much in the way of options now, other than to ride out the current storm.” DeYoung believes ARS investments will make a comeback when the overall economy improves. “This is a temporary situation,” he says. “As time goes on the pendulum will swing back.” However, the auction-rate securities market could actually “cease to exist.” At least that was the prediction from a prominent Citicorp analyst speaking to the Wall Street Journal. Prashant Bhatia’s prediction has been reverberating in newspapers and magazines around the world. The only option for investors when there is no auction will be to keep their money in ARS’s and accrue whatever interest they can until the bonds mature. That could be decades for some. Worse, says broker DeYoung, there is always a possibility that if things get bad enough, ARS bond funds could be restructured to mature at dates later than originally stated. “I don’t want to panic anyone,” he said. “That’s one of the worst-case scenarios.” But M & R;’s Sanford Michelman says the current situation is already “worst-case” for many of his clients. “The travesty is there are a lot of companies who are getting pummeled because they need the funds [tied up in ARS’s] to operate their businesses,” Michelman said. In fact, Westlake Village-based Move, Inc., an online real estate information clearinghouse firm, had a rough first quarter in ’08 because of ARS auction failures. ARS-heavy investments caused the firm, which operates the consumer website for the nation’s foremost authority on real estate,the National Association of Realtors,to charge off $8.4 million. Overall, Move, Inc. has $129 million invested in auction rate securities. The company declined to comment on the loss for this story. Michelman and Robinson’s ARS task force is peopled by a combination of corporate lawyers, litigation attorneys, as well as regulatory experts. “The reason we put it together that way is so the corporate lawyers can understand the companies’ need for cash, while the rest of the diversified team is there to address all the moving parts of auction-rate securities and the regulations that govern them,” Michelman explained. Moreover, Michelman hopes his firm’s task force on auction-rate securities will have a positive impact on the potentially devastating national crisis. By navigating the legal system, a maze of securities regulations, and negotiating with financial institutions, M & R;’s task force aims to unlock what are effectively locked-up funds. “I think we will have an impact on the evolution of the issue,” he said. “Our goal is not to saber rattle; our goal is to get our clients the liquidity they need to feed their families or operate their businesses.” While Michelman says he does not think any of his firm’s clients are at risk of losing their homes because of the ARS debacle, he says many of the families M & R; represents stand to see a decline in their standard of living. “For some their entire business is at stake,” Michelman said. “There is great stress and juggling to maintain their lifestyle.” But make no mistake, he says, for people with tens of thousands or even millions of dollars in auction-rate securities, the problem does not fall into a category Michelman referred to as “a high-class problem to have.” To those affected, Michelman advises not to take their brokers’ word that nothing can be done. “They should seek legal advice,” he said.

To me, he’s still Tommy. To everyone else he’s Homicide Detective Thomas Townsend. To me, he’s my tow-headed nephew sitting on the side of his bed practicing his guitar. To everyone else, he’s one of Los Angeles’ Thin Blue Line…the line that separates the law-abiding from the lawless. Earlier this month was National Police Week, and on May 29, the annual Z Awards are presented to police and other public servants in recognition of outstanding service to Our Valley. So it’s particularly appropriate to take a minute and think about those men and women who wear the blue uniforms. The first modern police force was created by Sir Robert (that’s why they’re called “Bobbies” in England) Peel in 1829. They wore blue uniforms with copper buttons…hence the nickname, “coppers.” Before then, vigilante justice and neighborhood-watch-type organizations passed for public safety. Although not popular initially, soon Londoners were crying for more police on the streets not unlike our own situation, where the allocation of police resources has been an issue for those who feel our north-of-Mulholland community is short-changed when it comes to public safety. Frankly, I don’t worry about it too much; as far as I’m concerned, what we don’t have in quantity we more than make up for in quality. With Deputy Chiefs in charge of the Valley Division such as Mark Kroeker, Marty Pomeroy, Mike Bostic, and Ron Bergmann, all of whom have been friends, the Valley Division has enjoyed superior leadership. Pomeroy , now retired out of state , and I used to sign our notes to each other “The Other Marty,” as if we were the only two Martys in the Valley. Our current Deputy Chief, Michel Moore, carries on that tradition of leadership. According to him, “Year-to-date we are down in overall crime nearly seven percent (1,115 fewer serious felony crimes than last year). In violence, we are down in every category Overall gang crime is also down 18 percent and gang-related homicides down more than 50 percent.” Backing up and often freeing up the regular officers in the Valley is a cadre of business and community leaders who serve as reserve officers, for a total of 1,910 police personnel. Two of the most notable reserve officers are a pair of Our Valley’s City Council members, Dennis Zine and Greig Smith. And while we don’t agree with every Council vote they cast, no one can argue that they deserve our respect and appreciation for their law enforcement volunteerism. Of course, the ambivalence we feel toward the police is understandable. There’s nothing we appreciate more than seeing a black-and-white pull up when we’re in trouble; and nothing we resent more than when one pulls us over after we’ve gone through a red light (I wonder how many times a day they hear, “But it was still orange, officer”). One day several years ago, not yet a detective, Tommy came in to have lunch with me. Resplendent in blue uniform, nightstick; gun and his other “cop paraphernalia,” he went to the receptionist , who, like everyone else on staff , had no idea I had a police officer as a relative. The receptionist, in a slightly tremulous voice, informed my secretary that a policeman wanted to see me. That information took but seconds to spread throughout the office…and all eyes were on me as I walked out to meet the waiting officer of the law. Upon seeing me, that blonde policeman gave me a big hug…and I heard one of the nearby staff members wonder out loud, “Why is that cop hugging our boss?” At one point, Detective Townsend was in the not-too-enviable situation of having to extract a criminal suspect from a white supremacist bar. A bit more cautious and prudent than was Eddie Murphy in the film 48 Hours, he decided that ingenuity was to be preferred over bravado. So instead of going inside, he called the bar on the phone without identifying himself and whispered to the manager, “This is Jimmy, the cops are going to raid the place in 10 or 15 minutes ” Like rats fleeing a sinking ship, the bikers scurried from the establishment, scattered, and Townsend followed, and then arrested, the suspect. When he was about 12, I asked Tommy why he wanted to be a policeman , since he had recently announced that to be his career choice. “To put all the bad people in jail,” he told me. Just last week, we had lunch at Mezzomondo in Studio City, and I asked him why he wanted to be in law enforcement. “To get all the bad guys off the street,” he said, without a moment’s hesitation. The same answer a quarter century apart and I’m sure he didn’t even realize it. Do me a personal favor, the next time you pull up beside a police car or a couple of motorcycle officers at a red light, smile or wave at them…that’s the least we owe them. “My heroes are those who risk their lives every day to protect our world and make it a better place – police, firefighters and members of our armed forces.” , Author Sidney Sheldon Martin Cooper is President of Cooper Communications, Inc., President of the Los Angeles Quality and Productivity Commission, Founding President of The Executives, and Vice Chairman of the Boys & Girls Club of the West Valley. He is a Past Chairman of VICA, Past President of the Public Relations Society of America-Los Angeles Chapter, and Past President of the Encino Chamber of Commerce. He can be reached at [email protected].