A pending bill would streamline the regulatory process large phone companies now undergo in order to merge with or buy competitors. Senate Bill 1389 removes what one telecom company referred to as an onerous checklist now required under state law before the Public Utilities Commission gives permission for mergers or buyouts to take place. San Fernando Valley State Sen. Alex Padilla sponsored the legislation at the request of Verizon, who along with AT & T;, would be a main beneficiary if it passes. The bill amending the Public Utilities Code goes before the senate Energy, Utilities, and Communications Committee for a hearing on April 15. Under current state law passed in 1989, the commission must consider whether a merger or buyout brings savings, is fair to the community and impacts competition. Removing the requirement streamlines a lengthy process, said Tim McCallion, West region president for Verizon. “From Verizon’s perspective, if we ever are involved in another merger we won’t have the months of delay in preparation in putting together all the material whether it is relevant or not to meet the checklist requirements,” McCallion said. One consumer-rights group, however, says not so fast. The Utility Reform Network opposes the bill and wants to see the review process stay in place. Companies justify mergers by saying they will result in greater efficiency, and with the mandatory showing of cost savings the PUC has the ability to say a savings exists, said Mark Toney, executive director of the organization. “Part of the benefit is to give back the consumers,” Toney said. When the legislation was originally passed, the business climate for telecommunications was different. The large phone companies and their land-line services were all that were available for consumers. Fast forward to 2008: Verizon and other telecom giants face competition from wireless carriers and internet-based and cable-based phone services. Many of those companies are not regulated by the commission and thus are not required to go through the same process when merging or buying another company. While the bill would remove the checklist requirements, it does not make the playing field completely level, McCallion said. The safeguard of PUC approval of a merger remains in place and the commission retails the ability to request information and data it considers to be appropriate and relevant, he added. While not supporting the specific bill, the Economic Alliance of the San Fernando Valley does favor its goals of deregulation and enhancing competition. Alliance President and CEO Bruce Ackerman also chairs the California Association of Local Economic Development, which does publicly endorse the bill. “Anytime you can loosen the regulations in place and make it easier for the business community to enter the marketplace, they can deliver a lower cost product by stimulating the market,” Ackerman said. The Regional Black Chamber of Commerce, San Fernando Valley; the Los Angeles Metro Chamber; the Long Beach Chamber of Commerce; and the U.S. Hispanic Chamber of Commerce are among the nearly 40 organizations that sent letters supporting the goals of the bill. TURN also sent a letter to the senate committee and Toney plans to testify at the hearing. Meetings have taken place between the organization and Padilla’s staff to discuss the bill. “He has a fine record of being consumer friendly and we hope he will reconsider once he sees the community sentiment on this,” Toney said. At-A-Glance California Senate Bill 1389 Sponsor: State Senator Alex Padilla What It Does: Exempts certain telephone companies from the requirement of providing certain information to the Public Utilities Commission when merging with or buying another company. That information includes the cost savings of the merger, impact on competition, and impact on local economies and small business.
UCC Says Trade Pact Offers Californians a Fair Deal
United Chambers of Commerce has been working with the U.S. Chamber of Commerce to support the Colombia Free Trade Agreement and is encouraging our Congressional Representatives to do the same. Congress is preparing to debate a recently- concluded trade agreement with Colombia. A careful evaluation of the facts reveals that approval of the agreement is overwhelmingly in the interests of Californian workers, farmers, and companies. It’s also squarely in the national security interests of the United States. First, this agreement is all about fair trade. Many people don’t know that the U.S. market is already wide open to imports; in fact, 92 percent of imports from Colombia enter the U.S. market duty-free. But Colombia imposes an average tariff on U.S. manufactured goods of 14 percent, and much higher for agricultural products. For American workers and farmers, that’s just not fair. It’s like starting a basketball game down a dozen points from the tip-off. The pending agreement would put U.S. trade relations with Colombia on a fairer, mutually beneficial footing by eliminating Colombia’s tariffs, most immediately. The trade agreement with Colombia would boost U.S. exports by more than $1 billion in short order. Second, the agreement is a helping hand for one of America’s closest allies in Latin America. In recent years, Colombia has made tremendous progress breaking up narco-trafficking cartels, slashing coca production and eliminating two-thirds of its opium production. Violence in the country is at its lowest level in a generation, and Colombia’s economy grew last year by 7 percent. Colombia’s transformation over the past decade is a triumph of brave and principled Colombians. It is also a bipartisan triumph for the United States, which lent support through an aid program known as Plan Colombia. The trade agreement will give Colombia a chance to build on this progress. Finally, the Colombia trade agreement will allow California to capitalize on its record of success as a major exporter. California exports reached $134.2 billion in 2007, ranking second only to Texas in total exports. These overseas sales support more than 660,000 jobs directly and thousands more indirectly. California has already benefited from the implementation of other free trade agreements in the Latin American region. For instance, exports to Chile have nearly quadrupled since 2004, the year the U.S.-Chile trade accord was implemented. Californian workers and farmers are selling sold $647 million more to Chilean consumers last year than they did before the agreement came into force. These benefits hold true across the country. In 2007, U.S. exports surged to $1.6 trillion, a 69 percent increase over the past decade. Across the country, one in five factory jobs depends on exports, and on America’s farms one in three acres is planted for hungry consumers overseas. Trade is especially important for smaller companies, which account for 97 percent of U.S. exporters. In our state, nearly 50,000 small- and medium-sized enterprises are already exporting, and trade agreements such as the one with Colombia help more of these firms boost their sales. These smaller companies account for 95 percent of all companies that export goods from California, generating nearly half of California’s merchandise exports. Nationally, small companies sell more than $230 billion worth of “Made in America” goods overseas. In the end, American workers, farmers, and companies are quite capable of competing and winning against anyone in the world when markets are open and the playing field is level. Indeed, who isn’t in favor of fair trade? This is a fair trade agreement for California exporters, and our Congressional delegation should support it when it comes up for a vote. Stephen T. Holzer, Esq. is chairman of the board of the United Chambers of Commerce of the San Fernando Valley & Region; a coalition of 36 business organizations including 24 chambers of commerce who together represent over 21,000 businesses that provide over 387,000 jobs. He can be reached at (818) 981-4491.
Tourism Shines
The devaluation of the U.S. dollar brings to mind a series of negatives, from foreclosures to bankruptcies, to the dreaded R word: recession. But the dollar’s falling value might yield some positives in Southern California, specifically in giving the region’s tourism industry a boost. In the San Fernando Valley, hoteliers are already preparing to receive more international tourists, bent on exploiting an advantageous exchange rate. Jay Aldrich, professor of hospitality and tourism at California State University, Northridge, said that the Valley has already seen a spike in visitors from other countries. “International tourism is already up quite a bit because of the devaluation of the dollar,” he said. “For people from Europe and Asia, it’s a real bargain to come here now to dine and shop and play. The international market has increased like three or four percent.” Dan Mishell, director of research for the Los Angeles Convention and Visitors Bureau, welcomes more tourists from international locales but is saddened that the jump in tourism can be attributed, in part, to the diminishing dollar. “A determining factor on long-term travel is value,” he said. “It is sort of bittersweet. We’re suffering economically in the domestic market, but, because that brings in visitors, that’s good for tourism.” Tourism is a resilient industry, according to LACVB Senior Vice President of Marketing Patti MacJennett. “Tourism as an economic driver is fairly stable,” she explained. “Since 2001, when international tourism declined after Sept. 11, we saw growth in the domestic market. Now, we’re seeing growth in the international market.” MacJennett said that Los Angeles receives more international tourists from Mexico than any other country. Canada, the United Kingdom, Japan and Australia follow. Along with Los Angeles World Airports, LACVB promotes the Los Angeles area internationally in offices in Tokyo, London and Beijing. “International tourism in Los Angeles plays a very important role. It accounts for a fifth, or 19 to 20 percent, of total overnight visitors,” MacJennet said. Last year the LACVB estimates that international tourism brought in $14.2 billion. This year the agency expects that number to go up to $15 billion, based on forecasts from the U.S. Department of Commerce and the Travel Industry Association. Foreign tourism is particularly important in Los Angeles County because it accounts for nearly a third, or 33 percent, of total visitor spending, MacJennet said. “When you look at the big numbers, 25 million [international] visitors contribute to L.A. County about $15 billion,” she said. “There’s a significant economic impact from tourism.” The San Fernando Valley is of particular appeal to international visitors because it offers a diverse mix of hotel products, appealing to international travelers on all types of budgets, MacJennet said. The Valley also has tourist attractions, with Warner Brothers Studios and the San Fernando Mission being among the most popular. But, arguably, the biggest tourist draws in the Valley are its theme parks, Universal Studios and Six Flags Magic Mountain. Mishell said that about 44 percent of visitors to Los Angeles report visiting a theme park during their trip. Moreover, MacJennet continued, “Historically, across the country, in cities that have theme parks or attractions, such as Universal Studios, you’ll find that when a new ride is added, it positively impacts tourism numbers.” Accordingly, the LACVB believes that the opening of the new Simpsons ride at Universal Studios will be a high point. “That is an attraction that is internationally recognized,” MacJennett said. “The fact that it’s not only a theme park but a working studio has great appeal.” As for Magic Mountain, new attractions are in store that will be a plus for the Valley as well, MacJennet said. Six Flags Magic Mountain spokeswoman Sue Carpenter believes that the summer re-launch of its $10 million thrill ride X2, the park’s most popular coaster, will attract more visitors. And, for children, Magic Mountain has developed an area called Thomas Town, inspired by the well-known Thomas the Tank Engine character. Because the theme park has more of a domestic appeal than the world-renowned Universal Studios, it doesn’t track the numbers of international tourists who visit. But Carpenter said that most of Magic Mountain’s foreign guests hail from Europe. “We haven’t really seen a measurable increase or decrease in the number of international tourists,” she said. However, if one of the 44 percent of tourists who report visiting theme parks during their time here happens to be in the area, “We are the place to go,” Carpenter stressed. “We are the thrill capital here. We have the best thrill coasters.”
WaMu to Close 3 Area Loan Offices
Washington Mutual Inc., affected by mortgage delinquencies and defaults, said it obtained an infusion of $7 billion capital from private equity firm TPG Inc. and other investors, Reuters reported, but projected a $1.1 billion quarterly loss and set plans to eliminate 3,000 jobs. WaMu, as the largest U.S. savings-and-loan is known, announced it will close its 186 stand-alone home lending offices and stop offering loans through mortgage brokers by the end of June. There are three such stand-alone home loan centers in the greater Valley region, Tarzana, Valencia and Camarillo. Mortgages will continue to be offered in WaMu’s retail branches, of which there are 72 in the greater Valley region and roughly 2,300 nation-wide. Gary Kishner, spokesman for Washington Mutual, said it’s premature to say how many local jobs will be cut, because some of those positions will be absorbed into the region’s retail financial centers. WaMu will also cut its quarterly dividend per share from 15 cents to 1 cent, saving $490 million a year. It is the second dividend reduction in the last four months. The Associated Press reported that impact to the thrift has been heavy from the depth of its writing interest-only and so-called negative amortization loans. The firm’s “significant” exposure in California and Florida, where property values have declined the most, have had a major affect as well. James Hames
Blockbuster plans takeover bid of Circuit City
DALLAS — Blockbuster Inc. said today that it would take an unsolicited $1 billion-plus bid for Circuit City Stores Inc. directly to shareholders of the nation’s second biggest consumer electronics chain, saying the struggling retailer has not responded to repeated offers. Blockbuster, however, has had troubles of its own competing with online movie rental operators like Netflix Inc., and Circuit City questioned whether it has the financiang to do the deal. Blockbuster Chief Executive James Keyes said a deal would create a chain that could sell portable devices and entertainment for them, much like Apple Inc.’s stores. For the full story visit http://www.latimes.com/business/la-fi-circuit15apr15,1,47161.story
Foreign Trade Zone Status Brands Tejon
A 177-acre sliver of the 1,450-acre development of the Tejon Industrial Complex is now a Foreign Trade Zone by virtue of its February 27 approval by the U.S. Department of Commerce. The designation was announced March 13. The FTZ designation provides an economic incentive to participants importing goods; cutting some costs by bypassing, reducing or deferring fees and possibly saving time in processing at the port. An FTZ allows manufacturers or distributors to pay no duty on imported items or raw materials until those goods enter the U.S. commercial marketplace. FTZ users may also receive permission from U.S. Customs to move imported items directly from the ports to the FTZ, thereby avoiding delays at congested ports. Additionally, FTZ users may submit weekly reports and pay one broker and processing fee per week, rather than submitting a report and paying a fee for each shipment, meaning significant potential cost savings. The portion of the site designated as a FTZ can be overlaid in whole or in part, as needed by users and approved by the Commerce Department. The first major user of the Tejon site was IKEA, enticed by John DeGrinis, SIOR with Colliers International in Encino. IKEA was fast-tracked with a sub-zone FTZ, because they were already in place and ready to go. The February 27 approval of the 177-acre FTZ supplements the furniture retailer’s prior use. When IKEA moved in seven to eight years ago, they occupied 850,000 square feet of the facility, DeGrinis said; now they have 2.5 million square feet. Oneida, the tabletop products marketer, has 350,000 square feet. There are 606,000 square feet just completed, for sale or lease, whole or divisible, DeGrinis said. Congressman Kevin McCarthy (R-Bakersfield) has been working toward getting the designation since he served in the California State Assembly for the area. Elected to Congress in 2006, he contacted the Commerce Department to help usher the application through the bureaucracy said Nick Bouknight, press secretary for the Kern County representative. “He wanted to make sure there was movement on the application,” Bouknight said. That contact took place last summer, he said, and required corresponding with the FTZ board. The congressman is “very supportive” of the FTZ for the broader economic benefits to the region, not only for increasing the tax base but the added jobs that enhance the general commerce of the region, Bouknight said. Many FTZs in the region surround the harbor, but some other locations beyond the coast include Palmdale; Victorville; Palm Springs; the Riverside County city of Moreno Valley; and the Imperial Valley community of El Centro. The Tejon location, which is only 40 minutes out of Santa Clarita, includes a Best Western Motel, a smattering of fast food outlets, a Starbucks, a pair of gas stations and a Kern County Fire Department station house. The long-term plan for the Interstate 5-straddling site includes 212 acres designated as freeway commercial and an approved and entitled 15,000 acres (20,000,000 square feet) of industrial and warehouse space. What was once thought of as remote geographically, the Tejon location has become increasingly important to commerce in the region as the Los Angeles megalopolis continues to grow. New York-based Rockwell Group Development Corporation, a joint venture partner with Tejon Ranch Co., has come aboard the project and is shepherding the FTZ aspect of the development. “It’s our flagship California project,” said Brandi Hanback, Rockwell Group managing director of FTZ services, adding the developer has been involved in FTZs through its New Jersey development since the ’70s. The company sees a global advantage to the location. “Not only can it serve as a distribution center for staging of imported cargo,” she said, “but it can attract global activity that would otherwise take place outside of the U.S.” Because manufacturing and assembly that takes place inside the FTZ can avoid customs duties until the goods enter the U.S. marketplace, if the goods are exported from there, Hanback said, those fees are bypassed altogether. IKEA does that for its Canadian market, she said. The location is an advantage also, she said, because there are only so many places in California where you can put up a few million square feet of building. The Tejon site is removed from the residential concerns about operating hours, and urban traffic that inhibits efficiency, she said. “Importers can move freight out of congested areas where they can do their processing, distribution and staging,” Hanback said, “without affecting people with noise, pollution and congestion.” The site being at least 90 traffic-free minutes of drive time north of the harbor, puts most California markets within reach of new federal limits on truck drivers’ hours of operation. In 2003, the Federal Motor Carrier Safety Administration created the current rules for truck drivers: an 11-hour of service limit over 14 hours, after which they must go off-duty for at least 10 hours. After a trial period where fatigue-related accidents dropped and stayed lower those rules were made final in December of last year. The impact of that rule upon a supply chain-oriented company is how far away a truck driver can go, unload, and come back in time to spend the night at home. “It’s about the truck turn,” said Barry Hibbard, vice president of commercial and industrial with Tejon Ranch. Hibbard noted that a truck driver based out of Tejon can get home to Bakersfield, one of the few places with a home price within range of a truck driver’s salary. The location, said DeGrinis, the marketing agent with Colliers’ Tom Taylor, Patrick DuRoss for the project, makes sense as the Inland Empire distribution hubs get maximized and major supply chain retailers continue to seek a competitive advantage. “The goal,” he said, “is to get goods from the port to store shelves for the least cost as possible.” With the cost of land, even if you could find the space to house a big box distribution center, DeGrinis said, “Tejon is the first stop north” with space available. “It’s only 40 minutes out of Valencia,” he said. Fastener Company Aquired Saturn Fasteners Inc. in Burbank has been acquired by Acument Global Technologies as part of that company’s growth in supplying aerospace customers. Terms of the deal between Saturn and Acument, based in Troy, Mich., were not disclosed. Saturn employs more than 100 workers and provides threaded fasteners to distributors, original equipment manufacturers and their suppliers. “[The acquisition of] Saturn demonstrates our commitment to the aerospace industry and establishes a solid foundation for addressing the shortage of specialty threaded fasteners created by the dramatic ramp-up in global aircraft production,” said Martin Schnurr, vice president and general manager of Acument North America.
Politicians Forget Gas Taxes When Decrying Gas Prices
Buy now or watch the price go up! And up! And up! Now is your last chance to buy gasoline for only $3.99 per gallon! Of course, you may not have the ability to purchase 500 gallons of gasoline at under $4 a gallon and store it in your garage at home. But no worry, we can always rely on our elected officials to look out for our best interests and to find a way to lower the cost of gasoline. Sure! Only the most na & #271;ve among us would expect politicians to truly seek to reduce the cost of gasoline and diesel. The truth is they are working on ways to keep the cost spiraling upward. Why? First of all, they have the perfect scapegoat. The media and government take great delight in blaming Exxon/Mobil and the other oil conglomerates for the continuing and steep increase in the price of gasoline. Both the media and politicians take great delight in talking about the oil companies’ excessive profits. One of these days some enterprising journalist is going to show the public where the money really is. It is true that the oil companies are making billions of dollars, but that only equates to a little over 20 cents a gallon for their hard work, risk and hundreds of billions of dollars of investment. It is almost never mentioned that our government is collecting more than a dollar per gallon of gas that comes out of the pump. In other words, the government is taking in five times what the oil companies are making for gasoline and the figure is growing. Why don’t our elected officials, who sanctimoniously try to convince us that they are trying to help the economy, put a cap on the amount of taxes that are charged on each gallon? For example, how about making gasoline taxes equal to the amount the oil companies make. That alone would bring the price of gas down to about $3.00 per gallon. Not a bad start. But that’s not the only thing our government could do to ease the sticker shock we all endure when we pull up to today’s one-armed bandit the gas pump. If the politicians really want to help and minimize our reliance on foreign oil, why not make it easier to build and operate more refineries, instead of creating more and more restrictions? Today there are fewer than 200 refineries in all 50 states to process our continuing need for gasoline. Just 25 years ago, there was twice that number. How can we deliver gasoline for less when the capacity of America’s existing refineries is running at maximum? That alone makes us rely more on imported oil. Our local, state and federal governments continue to apply a growing number of restrictions on the products we use so that we conserve more energy; at the same time this has doubled the cost of our own American-made products. Yet, our own federal government, the number-one consumer of oil and energy, has not complied with its own restrictions. Wouldn’t it be interesting to see the results of placing an embargo on importing any oil for 30 days or so? Doing so would force us to use only a fraction of our existing oil reserves. The real sufferer would not be us. Such an embargo would result in oil piling up on tankers, barges and storage facilities throughout the Middle East’s oil-producing countries. Their oil rigs would be shut down as there is no place to store the oil. A potential labor uprising would create a nightmare for the Middle Eastern leadership as there would be fewer jobs. The Middle East refineries would have to drop the price of oil just to entice other countries to stockpile for their future consumption. Additionally, their own cash flows would dry up and they would not be able to keep building their monster malls, luxurious resorts, and built-nearly-overnight cities in the Middle East with U.S. dollars. We seem to love czars in this country. Mayor Villaraigosa has a gang czar. President Bush has a public safety czar. Baseball’s Commissioner is often called a czar. Maybe we need an oil-price reduction czar of course, for him to be successful he’d have to report to the people, not a politician. Reporting to the people: what a concept! Rickey M. Gelb is managing general partner of Gelb Enterprises, a real estate development and property management company.
Encino Chamber Gives its ‘Teacher of the Year’ Award
The 2008 Encino Chamber “Teacher of the Year” was announced March 18 at a special program. “Richard Surendranath is one of the most extraordinary teachers with whom I’ve had the pleasure to work,” said Birmingham High School Principal Martha Coates as she read the merits of this young math teacher to a packed house. In addition to the award, Surendranath received gifts from First Commerce Bank, the Gelb Group, Phillips Graduate Institute and Warner Center Marriott. He also was given a flag that flew over the U.S. Capitol building by Congressman Brad Sherman. Canoga Park/West Hills A Special Evening with City Attorney Rocky Delgadillo will be sponsored by the CPWH Chamber on April 29 at the Clyde Porter West Valley Playhouse, 7242 Owensmouth, Canoga Park. Topics of discussion will include gang injunctions, Operation Bright Future and the Neighborhood Prosecutor Program. A wine and cheese reception before the main event will start at 5:30 p.m. To make reservations (which are required) contact the chamber office at (818) 884-4222. Seating is limited. The 20th Annual Canoga Park Memorial Day Parade May 26 will be sponsored by the Canoga Park Neighborhood Council, Councilman Dennis P. Zine, CRA/LA, the U.S. Army and is being produced by the CPWH chamber, If you know of an organization, band, or marching group that would like to participate in the parade, go to www.canogaparkmemorialdayparade.com, or call the chamber office at (818) 884-4222. Chatsworth/Porter Ranch On May 22, the CPR chamber, along with Gwyn Petrick of State Farm Insurance and the Child Development Institute Parent’s Association, will present the eighth Unforgettable Educator Award to Dr. Joan Maltese, Executive Director of the Child Development Institute. For the past 12 years, Dr. Maltese has served as the co-founder and executive director of the Child Development Institute (CDI), a non-profit organization devoted to providing essential resources for children and their families during a child’s early years. Encino The Fourth Annual Encino Open Miniature Golf Tournament will be played April 17 at Castle Park in Sherman Oaks beginning at 5 p.m. The now traditional Green Sweatshirts will then be awarded for lowest individual score, lowest team score; with Green T-shirts going to those with the highest individual and highest team scores. North Valley Regional The Salute to Recreation returns to Northridge Park, May 31 through June 1. This year, the NVRCC will play an even larger role than it has in the past. On May 30, the chamber’s Senior Services Council will kick-off the weekend with a Senior’s Dance which last year drew 400 participants. On June 1, NVRCC will put on a 5K Walk/Run fundraiser with a percentage of proceeds benefiting local schools. For more information about the event or sponsorship opportunities, please contact the chamber office at (818) 349-5676. The Regional Black Chamber The RBCC and its United Partners are hosting their 4th Annual Professional Business Development Day Conference April 29 from 8:30am to 3:30pm at L.A.Valley College in the Monarch Hall Building. Products, services, seminars and workshops especially geared to small-, minority- and women-owned business owners will be featured. Register by e-mail: [email protected]; or by calling (818) 464-3484 or (818) 377-7424. — Ivy Weiss
AROUND THE VALLEYS
Celebrating 80 Years of Van Nuys Airport Van Nuys The Van Nuys Airport celebrates its 80th anniversary this month with a series of special entertainment and education events. The events serve as a way for the airport to thank the community for its support and highlight its programs that stir interest in aviation-related careers, enhance public education and build relations with its neighbors. A free screening of the documentary “One Six Right” takes place on April 24 at the Airtel Plaza Hotel. San Fernando Valley filmmaker Brian J. Terwilliger displays the wonderment and romance of flight and the benefits of small airports that are disappearing. Terwilliger has screened the film nationwide; it has also been shown on cable television and is available on DVD. The same night of the Airtel event, Terwilliger will be screening his film at the National Aviation Hall of Fame in Dayton, Ohio. “I am delighted there is a lot of life in it,” Terwilliger said. “It keeps going and going.” “One Six Right” allowed Terwilliger to combine two of his interests into a single project filmmaking and a love of flying. Rather than being a straight documentary on a history of Van Nuys founded in 1928 as Metropolitan Airport the film is a story of the life of an airport told in a way that is relevant both to aviation enthusiasts and those with little interest in aviation, Terwilliger said. The screening takes place at 6:30 p.m. and seating is limited to 500 viewers. For reservations call (818) 909-3529. Hundreds of middle school and high school students will be visiting Syncro Aviation on April 25 for Aviation Career Day. Now in its third year this career fair offers aircraft displays, video presentations and airfield bus tours all geared toward generating student interest in considering aviation-related career fields. New this year will be interactive exhibits offering a flight-simulator experience and an exhibit showing how math and science skills apply to aerospace and aviation jobs. On April 26, the airport and the Encino Chamber of Commerce host Community Day from 10 a.m. to 4 p.m. at the Airtel Plaza Hotel. The event gives a glimpse into the world’s busiest general aviation airport with airfield tours, aircraft displays and activities for children. Community Day is free and parking is available for $4 at the Van Nuys FlyAway Bus Terminal, 7610 Woodley Ave. A free shuttle is available to and from the Airtel. SAN FERNANDO VALLEY Burbank Gala: The Burbank Jaycees celebrated their annual Awards and Installation Gala March 30 at The Castaway Restaurant to recognize achievements of the past year and welcome its 2008 board of directors. This year’s gala was especially significant because it doubled as a tribute to the chapter’s 10th anniversary. Canoga Park Board: Four San Fernando Valley business and community leaders have been added to the Board of Directors of the Boys & Girls Club of the West Valley: Dan Gruber, Allen Lawrence, Vince Liuzzi and Scott Sachs. Gruber’s law firm (Gruber & Gruber) emphasizes the representation of people who are harmed as a result of taking dangerous pharmaceuticals and those who have had insurance claims improperly denied. Lawrence is the chairman and chief executive officer of insurance brokerage firm Allen Lawrence & Associates Inc. Liuzzi is senior vice president and regional president of Wells Fargo’s San Fernando Valley Community Bank in the Los Angeles metro region. He is a member of the board of directors of the Economic Alliance of the San Fernando Valley and The Executives, a support group for the Los Angeles Jewish Home for the Aging. Sachs is managing partner of public accounting firm Good Swartz Brown & Berns LLP. Chatsworth Festival: The Chatsworth Historical Society presents a garden festival featuring roses and crafts April 27, 11a.m. to 4 p.m., at The Homestead Acre,10385 Shadow Oak Drive, Chatsworth. Admission is $4 for the general public and free for children under free. Proceeds will go to the Chatsworth Historical Society for the Preservation of the Hill-Palmer Property and Virginia Watson Historical Museum. Information: (818) 882-5614. Universal City Expo: The State Board of Equalization hosts a small business fair on April 22 at the Hilton Universal City.The event features workshops on financing, developing business plans, sales and use tax advice and marketing; and a resource expo of federal, state and local government agencies and other organizations supporting small business. Kick-off is at 9 a.m. with the workshops going from 10 a.m. to 2:30 p.m. For more information or to register call (213) 593-1311 or visit their website at www.boe.ca.gov/sutax/tpsched.htm. Move: Adult talent agency L.A. Direct Models has moved to new offices in the Cahuenga Pass. The firm outgrew its 1,600- square-foot space in Studio City and its new digs are 2,000 square feet. The agency will be in the same building as Vivid Entertainment. Studio City Salsa: Mama Juana’s celebrates its 5th anniversary on May 1.An all-star band made up of today’s best musicians and soneros from bands that have performed in the past will be on hand to entertain the crowd. There will be door prizes, raffles, drink specials and more. Mama Juana’s is located at 3707 Cahuenga Blvd. Sound: Emmy Award-winning audio specialist Peter Cole has launched Before Noon Post Production Sound Services for the entertainment and corporate industries. Before Noon will specialize in audio post for television projects, major and independent film releases, DVD and home entertainment properties, trailers, and theme park audio. The firm’s independent approach gives clients a dedicated mixer with proven talent and experience to keep projects on track, Cole said. “We can send a client a first mix pass digitally anywhere they are, anytime of day or night, via one of the most advanced Internet delivery systems available,” Cole said. Cole’s Emmys were in the Best Film Sound Editing and Best Film Sound Mixing categories. Sun Valley Light: LA ProPoint nears completion of its work on the Cottonwood Christian Center in Cypress, Calif. Sun Valley-based LA ProPoint installed moving line sets for scenery and lighting as well as lighting pipes above the stage. Staff also engineered steel framers and wallboard installers for audience lighting in the sanctuary. The company’s goal was to respect the architecture of the new sanctuary while making it possible to install a sophisticated lighting system that shows off the space and enhances the sensory experience of being a congregant in the church, said Harvey Sweet, vice president of LA ProPoint. CONEJO VALLEY Newbury Park Award: The Hogan Family Foundation announces the creation of its Lifeline 4 Paws Award program to recognize those who have demonstrated extraordinary acts of kindness to dogs during the year. Applications are due Nov. 27. Applications may be found at www.lifeline4paws.org. Thousand Oaks Lecture: James C. VanderKam will present “The Dead Sea Scrolls and the First Christians” April 17 at 4:30 p.m. in Lundring Events Center of California Lutheran University. His lecture will address the similarities and differences between the contents of the scrolls and other early Christian writings. VanderKam, a professor of Hebrew Scriptures at the University of Notre Dame, is one of the leading international experts on the Dead Sea Scrolls, ancient Judaism and Early Christianity. He is the chief editor of the Journal of Biblical Literature and has written or edited more than 25 books and 200 articles. For information. contact Samuel Thomas at [email protected] or (805) 493-3693. SANTA CLARITA VALLEY Santa Clarita Tech: The Center for Applied Competitive Technologies at College of the Canyons hosts an open house from 10 a.m. to 3 p.m. on April 18. The event features services offered to companies and entrepreneurs throughout the region; programs and classes available to employees; and engineering design equipment and software demonstrations. For more information call the center at (661) 362-3521. Valencia Doctors: In honor of National Doctors’ Day, Henry Mayo Newhall Memorial Hospital thanked the physicians on staff for their dedication and outstanding service with a recognition luncheon March 28. “Our physicians devote countless hours to caring for our community,” said Roger Seaver, president and CEO of Henry Mayo. “They are dedicated to going above and beyond to exceed patient expectations, and we are pleased to show our gratitude for their commitment and compassion.” ANTELOPE VALLEY Plane: More than 60 volunteers participated in the City of Palmdale’s Adopt-a-Plane program held at the Joe Davies Heritage Airpark at Palmdale Plant 42 on April 5. The Antelope Valley Sunrise Rotary Club provided refreshments for the groups. Since the program’s inception, a total of 13 groups have adopted planes. “When a group adopts an aircraft, it means that the group can commit to cleaning the aircraft display on a regular basis,” said Deputy Director of Public Works Tim Hughes. To learn more about the Adopt-a-Plane program, call (661) 267-5300.
Organic Treats Just as Sweet
Business is sweet at Valencia-based Maria Elena’s and Bernod Group, a pair of niche food companies that released certified organic products this past February. That sweetness comes from the content and success of their organic horchata (a cinnamon and rice drink) mix and an organic cotton candy, dubbed Spun City. Both are, the creators said, the first-to-market for products of their kind. The two companies are run by principals and co-founders, Jerry Gonzalez, John Mularky, and Gonzalez’ brother Victor. The partners have been making theme park concession food packaged caramel corn and cotton candy under the Bernod line for a few years already and the development of the new products was a natural outgrowth, they said. “There are two different companies because it’s two different target markets,” John Gonzalez said. The newcomer, Maria Elena’s Authentic Latino Inc., is a certified Minority Business Enterprise. “We decided to open up a Hispanic company, and it just evolved that way and works out fine for us.” That evolution has been long in coming. Mularky worked in the restaurant business and was selling ice cream at Magic Mountain before he teamed up with Gonzalez, who had a similar narrative. “I was working at Whole Foods, and Mrs. Gooch’s before the buyout, and left to open my own company selling shaved ice at Universal Studios,” Gonzalez said. He soon expanded his Tropical Ice services to Magic Mountain. “John was selling ice cream at Magic Mountain and when our contracts came up, we said ‘let’s try this together’,” Gonzalez said. Bernod Group was formed for their amusement park concessions and is an outside food contractor with “a small distribution network,” Gonzalez said. It took about three years, the business partners said, to create and develop the products, and navigate the paperwork for the Certified Organic endorsement. To get the certification, organic content must be documented. “There’s a huge paper trail to make sure we’re doing what we say we’re doing,” Gonzalez said. “It protects the consumer; it protects us by keeping some guy from saying he’s organic when he’s not.” Mularky said it’s a different level of standards and documenting where ingredients come from. “We hired a person to help us [with that],” Mularky said. There were some obstacles amid development: “A coloring agent fell off” of the approved list of ingredients, Gonzalez said. It was a sudden double clutch for them as Gonzalez said: “We thought we had this and now we don’t.” They also tried a sugar-free cotton candy, which in a world of sugar substitutes may not sound like an unreasonable idea. But cotton candy is made by melting sugar at high heat and then exposing it to air where it re-crystallizes in wispy threads. They tried various “alternative sweetener products,” hunting for the ideal concoction. “We filled many rooms with smoke,” Gonzalez said. “We’re not chemists, and we had to start somewhere,” he admitted. Gonzalez also admitted that selling sugar-based products is somewhat counter-intuitive to the upscale, organic, health-conscious niche they are aiming at. “We call the cotton candy ‘a practically guilt-free indulgence’,” he said. “We’re not saying sugar’s good; we’re saying there’s an option for moms who somehow limit what’s going into their kids bodies.” And that option is quite popular so far, they said. Both products are just a few months old and can be found in 40 Whole Foods stores around the region; the horchata is available through web retailer MexGrocer.com. At a recent natural food expo in Anaheim Natural Products Expo West said more than 50,000 people attended this March the organic products were met with a “tremendous response,” Victor Gonzalez said. They spun cotton candy onsite. “There were a lot of skeptics, but they’d take some,” he said. It’s a gathering filled with “nutritionists and doctors who were skeptical; all of that melted away. They loved it,” he said. Jerry Gonzalez said the reaction is usually one of nostalgia. “That it is a kind of comfort food is kind of surprising to us,” he said. The horchata has a different appeal, Gonzalez said “The target demo[graphic] is not first-generation Hispanics. It’s more an acculturated second- and third-generation Latino, one who has more education and income and is going to a Whole Foods market,” he said. In addition to feeding the over-the-counter/consumer market, they have the horchata mix in a 1.5-pound institutional size while the cotton candy ingredients are available “ready to spin.” The horchata retails in “the neighborhood of $4.50” and the cotton candy is priced at $3.99. The team has ideas for more products to come out of their 2,300-square-foot business park facility. “A lot of the fun is coming up with other things to do,” Gonzalez said. “We are three guys who get along very well. We’ve got really cool jobs to be able to do stuff we really like and make cool stuff, instead of sitting at a popcorn wagon at Magic Mountain,” he said. “We’re interested in doing something unique and different,” Gonzalez said. “We’re not interested in doing another salad dressing.” SPOTLIGHT Maria Elena’s Authentic Latino, Inc./Bernod Group Location: Valencia Established: MEAL, 2005 / BG, 2002 Revenue in 2007: MEAL, $15,000 / BG, $1.4 million Revenue in 2008: (est.) MEAL, $500,000 / BG, $2 million