By JENNIFER NETHERBY Staff Reporter Harold Feldman’s been doing hand transplants for years. For the delicate procedure, he imports hands from around the country and world to his Sherman Oaks shop hands of the porcelain and glass variety, that is. Feldman offers a one-stop shop for doll repair, collecting, appraising and decorating dolls that are shipped to him from around the country. Since opening the Doll Shoppe with his daughter eight years ago, Feldman has expanded to include more than 15,000 dolls, dollhouses, and other doll paraphernalia. In July, the Doll Shoppe quadrupled in space when it moved to a storefront on Fulton Avenue and Riverside Drive in Sherman Oaks. Feldman’s Doll Shoppe is one of a wide variety of businesses around the country cashing in on baby boomer nostalgia. Nearly 8 million American adults collect dolls, said Bessie Nostoras, assistant editor of Dolls: A Collectors Magazine based in New York. “I think doll collecting has always been pretty popular, and now with home shopping networks and E-bay, it’s gotten easier,” Nostoras said. Dolls can range in price from $100 to $10,000 for a one-of-a-kind, Nostoras said. At Feldman’s shop, dolls cost up to $3,000. They date back to the early 1800s, and most were made in Western Europe. But there are also Barbie dolls and other more recent American dolls such as Chatty Cathy. The most expensive doll he’s ever seen? Several years ago at a doll convention, he saw an antique German doll sell for $240,000. Feldman declines to reveal the shop’s annual revenues. “I thought I would be able to run the business and occasionally go fishing,” Feldman said. “It’s gotten to be a full-time thing.” While many enter the doll business first as collectors, for Feldman and his wife Ruth, it was “by accident.” A former law enforcement officer, Feldman began his second career when his daughter was in need of a job. “One of my daughters was out of work and getting depressed, and I figured we’d start a business,” Feldman said. His daughter chose the doll theme. But a few months after the shop opened on Ventura Boulevard, she got a job offer she couldn’t resist. “I said, ‘take it, I’m going to have fun with the doll shop,’ ” Feldman recalls. Since then, he and his wife have become doll aficionados of sorts. A few years ago he took a class on fixing dolls, and since then the repair side of business has boomed. In the store basement, rag dolls, wax dolls and even glass dolls are lined up on a workbench with missing arms, eyes and an assortment of other ailments. Repairs can range in cost from $5 to $500, depending on the age and type of doll. Feldman replaces glass eyes, sews on torn appendages and even repaints faces. The Feldmans scour doll hospitals throughout the country and estate sales for doll repair parts. Because of its location, the Doll Shoppe also gets business from film and television studios. Some dolls have appeared in movies and commercials as props. Several years ago, the Doll Shoppe branched onto the Internet, which has been one source of the recent growth in the doll business. Feldman now fields questions from around the world about such things as doll inventory and prices. Some customers come to the shop with no idea of the real value of their dolls. “This one lady came in with two small dolls to get repaired, she wanted to let her grandchildren play with them,” Feldman said. “I said, ‘I don’t think you want your grandchildren playing with these. They’re worth about $800 each.’ ” The older dolls, such as French Jumeaux dolls and some German bisque dolls, can cost thousands. Newer dolls that have gained popularity such as Alexander dolls tend to range in the hundreds, Feldman said. There are also the more unusual dolls, jack-in-the-box dolls and celebrity dolls that start out in the hundreds. Not all dolls have kept their value through the years. The rage over Cabbage Patch Kids has pretty much ended, and the dolls are now only seen in Feldman’s basement. As for Feldman, he says he’ll be in business until it’s no longer fun. “I plan to do it for awhile,” he said. “With this type of product, most people are in a good mood. There’s nothing in here anybody needs. It’s impulse buying, strictly pleasure.”

All Fired Up Jeff Edelstein has been promoting disaster preparedness for 10 years, but a few weeks ago, he actually got the chance to practice what he preaches. Fire struck Edelstein’s business, SOS Survival Products Inc. in Van Nuys, early one Saturday morning last month. Fire crews were able to put out the blaze, but not before the shop was damaged by smoke and water. When Edelstein arrived at work he found he was without electricity. “We broke out a generator and had the phones and computers running,” said Edelstein. “We used bottles of Arrowhead water to flush the toilet and we had lanterns all over the place. Everything we’ve been preaching for the last 10 years, we did.” Actually, Edelstein didn’t take heed of some of the advice he gives his customers he did not have backup copies of his insurance information and phone files at a separate location. But he did not want for supplies. SOS was able to open for business on that Saturday, and even help out its neighbors in the 12-unit building with extra lighting. Indeed, Edelstein thinks that the fire may have actually helped to boost his sales. “I think we sold quite a few more light sticks and lanterns,” he said. A Rose is a Rose Jay Kerner, president of KMI Real Estate Group in Woodland Hills, already has all the tenants he needs for a shopping center he is developing in Tarzana. What he doesn’t have is a name for the center. The mall, at Reseda and Ventura boulevards, sits along a stretch of Tarzana that is chockablock with shopping complexes. And all the obvious names Tarzana Square, Plaza, Village, etc. are taken. That’s left Kerner, who is less than two months away from opening the new center, calling it “The Tarzana Project.” Kerner says he thinks he’s closing in on some possibilities. Stay tuned. Taxing Matters Who says students don’t get real-life business experience? A group of students at Cal State Northridge has set up a Volunteer Income Tax Assistance program for local residents who can’t afford professional help with their taxes. About 300 CSUN students participate in the program, which runs through April 15. They receive training to deal with common tax problems. But the students draw the line at preparing estimated taxes, business-related returns, returns for non-residents and filing extensions. The students, accounting majors at the school, don’t get extra credit or pay for their efforts, but they do get the chance to practice first-hand what they have learned. “You get to meet some very interesting people and know that you are helping them,” said Greg Wible, a 34-year-old accounting major from Sunland. “Plus, you can put it on your resume. But that’s not why most of us do it. You’re doing something for the community and you get a real-world application of what you are learning in the classroom.” Calculated Move Watching the movie industry is often like studying the Kremlin during the height of the Cold War. Every little move, though seemingly minor, might precede a major change in leadership. Witness this recent development: Terry Curtain, who headed movie publicity at Walt Disney Co., moved over to Universal Studios Inc. just as her contract was coming up for renewal at the Mouse House. Sources say Curtain made her decision after being tipped not to link her future to that of her boss, Joe Roth, chairman of Walt Disney Studios, who is said to be considering his own future. Curtain moved on. Will Roth be far behind? Only his comrades know for sure.

I’m the first to admit that I’m not an expert on hiring procedures and practices. Yet, I often receive inquiries from small-business principals seeking assistance in the hiring of a marketing director. Normally, they want to know when to do it, how to do it and who to hire. But, when it comes to making the correct decision about hiring a marketing director, confusion, uncertainty and risk are the order of the day for most small businesses that have arrived at marketing late in the day. When do I need one? You’ll know it’s time to hire professional marketing help when you notice that your marketing is not happening, strategies are not being developed and the marketing execution is not getting done. Thoughts of acquiring professional marketing help begin to pop up when we have to answer embarrassing questions from clients about lack of marketing support. A decision to spend significant dollars on marketing elements like direct mail, expensive sales collaterals and advertising campaigns can also be the stimulus to seeking professional help. If your marketing requirements are at such a point that they cannot be effectively addressed with current resources, make the decision to acquire support. Remember, for most small businesses, an experienced marketing director will not come cheaply. Be prepared for a six-figure investment by the time you throw in overhead and benefits. Hiring the heavyweight If you’re hiring an experienced marketing director, make sure the candidate can perform two primary roles strategy development and program execution. The marketing head has to be capable of developing long- and short-term marketing strategies, working closely with other functions such as sales, manufacturing and finance, to ensure that the company’s marketing strategy is smoothly interwoven into the overall direction of the company. From an execution viewpoint, the marketing director must be capable of effectively supervising and implementing any number of marketing programs with attention paid to concept, detail and effective monitoring. Ad campaigns, database programs, direct mailings will all fail if they don’t receive proper supervision from the person at the top. The HR experts can provide a detailed list of attributes that make for the best candidate, but there are four traits, in this writer’s experience, that are common to the most successful marketing managers: ? Experience. Look for a minimum of seven to 10 years of experience in the marketing field. Sound marketing skills and prowess transcend most industries and sectors, so it’s not always necessary to hire somebody from your specific industry, even though most of us believe that our businesses are “special.” Look for somebody who’s been there and done it before, many times over. ? Passion. Look for someone who is genuinely excited by marketing and what it can achieve. The marketing director’s role is a tough one, and in many organizations marketing has to be “sold” before it is truly appreciated by senior management and functional heads. A passionate marketing director will get excited by the challenge and will motivate the rest of the organization as a result of that infectious enthusiasm. Passionate marketing directors also tend to have better ideas, more creative concepts and a more compelling way of addressing the problem or the opportunity. ? Street smarts. Marketing is not always the science that we would like to believe it is. In few other fields can insight, intuition and gut response have a greater bearing upon development of strategy and decision making. Look for a candidate who has an intuitive understanding of the marketplace and the consumer and who is able to convert that understanding into direction and action. ? Decision-making ability. Because most marketing environments are known for their lack of perfect information, the field can be a disaster area for indecisive managers. A lot of marketing failure occurs because decisions are second-guessed and delayed until it’s too late. Good marketing directors will sometimes make bad decisions, but that’s part of the process. The more important determinant is hiring somebody who has the experience and confidence to make a decision and take a stand. A less-affordable alternative If you can’t afford that expensive marketing talent, be willing to break the job up into its component parts and hire accordingly. Leave the strategic direction to the principals of the firm, the sales director or, if need be, an outside marketing consultant. Program execution can be undertaken by an experienced marketing coordinator type, someone with three to five years of experience, who is capable of working with outside vendors in developing the P.R. program, getting the brochures designed and printed, making sure that the direct mail lists and the database files are updated, etc. A good marketing coordinator, in many cases someone who has made the transition from the overworked and unrewarding advertising agency side, can be hired at a salary cost of $35,000 to $50,000 a year, a reasonable sum given the marketing investment that is now at stake in most small businesses. Here, the hiring principles center on broad-scale experience, the ability to get things done, a self-starter mentality that works well with lack of supervision and a particular attention paid to discipline and detail. Marketing is now a major investment for the average small business. Quite often it was ignored or placed in the hands of the CEO’s spouse or kin. As the competitive battlefield intensifies, marketing becomes the defining element that separates winner from loser. If you’re at a point where your marketing is suffering, get professional help. It will be the best investment you’ve ever made. Alf Nucifora is an Atlanta-based marketing consultant. He can be reached e-mail at [email protected] or by fax at (770) 952-7834.

By SHELLY GARCIA Staff Reporter At first blush, Universal City seems a perfect spot to locate a business. It lies between North Hollywood and Burbank, where the major entertainment studios and related production houses can provide plenty of customer traffic at lunchtime. It’s adjacent to the affluent residential community of Toluca Lake. And each year the thousands of tourists visiting Universal Studios cut a path right through the surrounding streets lined with independent retailers and restaurants. But business is tough for those Universal City merchants. A number of businesses have closed, and many of those that remain are struggling to hold on, hoping that the Metro Rail station set to open on Lankershim Boulevard next spring will revive the ailing community. “It’s a state of transition for a lot of these businesses,” said Larry Applebaum, president of the Universal City-North Hollywood Chamber of Commerce. “My personal feeling is, when the Metro Rail station opens and all the repairs are done to Lankershim, the traffic flow will be much more conducive to business. Until that time, it’s a struggle.” The Metro Rail construction that began almost three years ago has blocked traffic along Lankershim Boulevard, preventing access to many of the businesses there, and the heavy truck traffic has created potholes that have made the road difficult to negotiate even now that a lot of the construction has been completed. Drivers who can’t avoid the area pass through without stopping. At the same time, the promise of added business from the thousands of tourists who visit Universal Studios has not panned out. With the opening of CityWalk, most visitors stay within the confines of the Universal Studios Inc. complex instead of venturing out to neighboring restaurants and shops. “Everything goes up the hill now,” said George Laczko, proprietor of the Universal Bar & Grill, a fixture on Lankershim for 30 years. “CityWalk took a tremendous portion of our walk-in business, especially from the employees of the studios.” Until the opening of CityWalk, an open-air mall of restaurants and shops, the area bordered by the Ventura (134) and Hollywood (101) freeways, Lankershim and Barham boulevards, had been a neighborhood enclave for residents from North Hollywood and Toluca Lake, with several thriving independent restaurants. “Years ago, there was a triangle,” said Frank Micelli, the owner of Micelli’s Restaurant on Lankershim. Three restaurants Micelli’s, Rubin’s and Le’Express created what Micelli calls a “mini restaurant row.” Patrons could dine late at Micelli’s, go dancing at Rubin’s and stop into Le’Express for a night cap. “Now it’s a mini fast-food restaurant row,” Micelli said. Carl’s Jr., Panda Express and In-and-Out Burger recently opened along the strip, transforming the neighborhood atmosphere. Micelli’s, with a 50-year-old Hollywood location and 20-year-old Universal City location, has managed to keep up a steady stream of regular customers for its Italian food and singing waiters, Micelli said. Just up Cahuenga Boulevard, Ca’ del Sole Ristorante also reports that business is good. “We’re happy,” said Rodolfo Costella, who opened the restaurant about five years ago, attracted by the proximity of the studios and the neighboring residential communities. His only complaint is about the confusion that comes from the way Lankershim intersects with Cahuenga at two different places. “I get at least 50 calls a day to explain to people how to get here,” said Costella. “The good thing is, once someone comes here they never forget, with how complicated it is.” But for many more shopkeepers, prosperity is far more elusive. Membership at the Chamber of Commerce has dropped to about 350 members, down 40 percent from the early 1990s, said Applebaum. While part of the problem lies in the chamber, which like many, is seeking ways to make its services more relevant to today’s business community, the membership drop-off also reflects the general business climate. “My personal business has been growing slowly, and I think that’s what the face of business is right now,” Applebaum said. “While businesses are enjoying stable economic times, I don’t think there’s a lot of robust economics. It’s not like someone turned a light switch on.” Some think the opening of the Metro Rail station, slated for June 2000, will boost business. “No. 1, the traffic will be better,” said Joe Tran, owner of Vendome Wine & Spirits. “It will bring more people up here. You don’t want to have a business in the desert, so the more people around, the better.” But others wonder whether Metro Rail passengers will simply make a beeline for their cars or the station without stopping off at any of the local businesses. “Those people will not walk around the area to look for neighborhood service businesses like mine,” said Laczko. “They will go to Universal Studios or they will go home.” Laczko is one of many area business owners who believe that the planned expansion at Universal Studios is certain to hurt their businesses even more. Universal’s plans to add hotels, restaurants, offices and sound stages stalled at the end of last year when the company said it needed time to reevaluate the controversial plan. No date has been set for resuming work on the plan, which was still in the hearing stage when Universal Studios put the brakes on. If the expansion does go forward, it is certain to bring many more people into the Universal City area, but merchants say that the added traffic wouldn’t necessarily translate to more business for those at the bottom of the hill. Rona Newman, owner of The Steak Joint, said that while hotel guests may venture down along neighboring streets seeking restaurants, most of the other tourists and studio workers are likely to remain on the Universal Studios premises if there are more options for eating and shopping. “I think it’s going to hurt me,” Newman said. “Their expansion is projected to be so huge that the more they have on or adjacent to CityWalk, the more it is going to leave people up there.” Universal City Year Founded: 1915 Origins: Ranch and farmland through the late 1800s, the area now known as Universal City was transformed when Carl Laemmle purchased the land for a new movie studio. Business Profile: Dominated by Universal Studios, the area also houses a number of entertainment-related offices and is peppered with small independent businesses, including many restaurants.

By HOWARD FINE Staff Reporter The race to fill the L.A. City Council seat once held by state Sen. Richard Alarcon has become the only hotly contested match in the Valley for the April 13 citywide election. The race pits Corinne Sanchez, a community leader with longstanding ties to the Valley’s political leadership, against Alex Padilla, an energetic young upstart with backing from Mayor Richard Riordan and local unions. The Seventh Council District, situated at the north end of the San Fernando Valley, includes the communities of Pacoima, Van Nuys and Lakeview Terrace. Alarcon represented the district until he won a bitterly contested election to the state Senate last year, defeating former state Assemblyman Richard Katz. The district, which is half Latino, has had a vacant council seat since last summer. Sanchez and Padilla are leading a pack of eight candidates seeking to replace Alarcon. Through the end of March, Sanchez held a slight fund-raising lead over Padilla, having raised $200,300 to Padilla’s $186,525. Only one other candidate has raised enough to qualify for city matching funds, former San Fernando Mayor Raul Godinez, with $52,000. With Sanchez and Padilla running neck-and-neck in terms of fund raising and endorsements, the likelihood is high that neither will win an outright majority and thus both are likely to end up in a runoff contest on June 8, sharing the ballot with the charter reform measure. Sanchez has picked up endorsements from such key political figures as Alarcon, council members Laura Chick and Mike Feuer, and four of the five county supervisors, including Zev Yaroslavsky and Gloria Molina. Padilla received an endorsement from Mayor Riordan, the county labor federation, and his current boss, state Assemblyman Tony Cardenas. “Sanchez has been around longer and has picked up support from more seasoned elected officials, but Padilla is very energetic, well organized and has the support of the unions,” said local political consultant Richard Lichtenstein. “With so few major philosophical differences between the two, it’s going to come down to who can get out the vote best.” Sanchez, 52, has made an issue of Padilla’s youth he turned 26 last month. She said he has too little experience and will be forced to turn to consultants to make decisions as a council member. Padilla, on the other hand, says his roots are in the district and says Sanchez is a carpetbagger, having just moved into the district last fall to run for this office. Both candidates say they want to improve the business climate in the Valley, but have outlined different approaches. Sanchez said she wants to expand tax incentives and streamline further the project approval process. She also said she wants more frequent city services for some of the district’s business corridors. Sanchez supporter Mel Williams, who owns the Williams Optima furniture store in Pacoima, said he has known Sanchez for almost a decade. “Businesses are looking for more activity and streets that are safe,” Williams said. “With her work on the Van Nuys Corridor Committee, Sanchez has demonstrated her commitment to the businesses in the area.” Padilla said he wants to make sure businesses have better access to funds going to enterprise zones, empowerment zones and other incentive districts. He said he also wants to introduce more after-school programs with a focus on job training. Ben Reznick, an attorney with the Century City law firm of Jeffer, Mangles, Butler and Marmaro, said he supports Padilla because of his work on the city’s Building and Safety Commission. “He has a sense of balance on business issues, which was very evident on the Building and Safety Commission. He also brings a practical perspective to very complicated issues.” Three of the council’s longest-serving members have filed for reelection, but none face serious challenges. The veterans running for reelection are Hal Bernson, in the Northwest Valley’s 12th District; Joel Wachs in the east Valley’s Second District; and Councilman John Ferraro, whose Fourth District extends from Hancock Park into North Hollywood.

C. William Guy Position: Founder and managing director, Cornerstone International Group Born: March 23, 1945, Dayton, Ohio. Education: Bachelor’s degree in economics, CSUN. Most Admired Person: Mahatma Gandhi Personal: Married with two grown children By CHRISTOPHER WOODARD Staff Reporter When William Guy started out in the retained executive search business in the ’70s, the large firms wouldn’t give him the time of day. “I was well under 30, and most the people in the business were in their gray-haired period,” he says. “The majors wouldn’t have anything to do with me.” But then, some upstarts broke away from the stodgy mold and created Korn/Ferry International. Guy soon rose to the position of senior associate, later leaving to join New York-based Ward Howell International as senior partner and board member. Today, Guy, is managing director of Cornerstone International Group, a consortium of retained executive search firms he started in 1985. In the last two years, the consortium has seen a 500 percent increase in revenue growth thanks to increased corporate hiring. And Guy’s business plan calls for expanding the Glendale-based company’s network of firms to 75 within the next six months. Guy has longtime roots in the San Fernando Valley. He attended school in the area, and his dad, rocket scientist Charles William Guy, was a co-founder of Rocketdyne and one of the founders of Independence Bank, a now-defunct institution that was once the largest independent bank in the Valley. Question: What attracted you to the search business? Answer: I was doing general business consulting (after college), and in those days I had enough humility to know I didn’t have all the answers. So I would listen to the client’s needs and bring in people who were really good. Someone finally pulled me aside and said, “You know, you’re really doing executive search, you’re matching people to situations.” They suggested I try the business. I did, and it turned out I had a passion for it. I think that’s what has brought me success over the years. Q: You said your firm has seen a 500 percent jump in revenue in the past 24 months. What’s driving that growth? A: During the recession, everything dried up. Companies went into survival mode. Even if a company had an opening for an important position, they wouldn’t fill it. Also during the recession, they downsized. Sometimes two or three rounds. Many of our clients got rid of their bench strength, got rid of their middle management. As we came out of the recession, most of the companies began to increase their confidence level. As confidence increased, they were ready to grow, only they didn’t have the bench. So all of a sudden they were playing catch-up. And the search industry has just taken off. As much as it had imploded during the recession, now it’s exploding. The search industry now is seeing phenomenal growth at the local, national and international level. Q: How would you describe the differences between a retained executive search firm and a contingency search firm? A: The two are very different. A retained search firm does not market people at all. We’re hired by companies as evaluators. We’re paid up front. Our fees are not dependent on a placement, so there’s no incentive to force a wedding. We can look beyond the wedding to the marriage. Contingency search firms can, and will if they like you market you. But their fees are based on a placement. Consciously or unconsciously, they tend to force fit, to create a wedding, because if there’s no wedding there’s no fee. Contingency firms recruit and refer, we recruit and evaluate. They can argue all they want, but they’re really recruiters and we’re evaluators. Q: How should an executive go about looking for a job if she wants to do so discretely, without her employer finding out? A: They have to be careful. I do not recommend contingency firms if you’re quietly looking. Retained firms are a safer bet. We’re not pure but we’re closer to being pure. We don’t market people. Conversely, contingency firms some not all tend to be sloppy. And if you write to a whole bunch of contingency firms, you’re running a higher risk it will leak back to your employer. Q: What advice do you have for companies worried about getting their talent picked off by executive search firms? A: Many employers make my job easy because they don’t treat their employees properly. Many employers don’t keep checking the marketplace to see if they’re competitive. And it’s not always who pays the most money. Years ago, it was difficult to get people from Marriott because the people weren’t overpaid but they were over-loved. Willard Marriott treated people exceptionally well, so it was hard to recruit from there. Today, companies have lost that attitude. Conversely, if you buy somebody, ultimately somebody is going to buy him or her from you. If you compensate people with genuine appreciation, and you help them grow professionally, you have a better chance of retaining them. Q: What are major corporations looking for in terms of executives these days? A: If a person has a sterling background, better schooling or higher level of education and a brand-name employer, they’re probably more desirable from our client’s perspective and more desirable from the search firm’s perspective. We’re paid to figure out who are the A-plus people and come up with the A-plus match. If someone is that good, invariably they’re employed and in good jobs. So the search firms have to pry them out. Q: What can an executive expect in the way of compensation in a new job? A: Historically, if someone is currently employed, they have leverage. Employers will typically offer some incentive for them to come, typically 10, 15 or 20 percent. Conversely, if an employer has lots of choices, and a lot of people are hungry for the job, they may just take the lowest bid of the people on the short list. If someone is unemployed, the company will likely offer what the person had been making because the person has no leverage. If you are unemployed, like it or not, form a business. If you’re self-employed, even if it’s an interim step, you have some leverage. Q: Do executives face age bias out there? A: I wish I could say it didn’t exist, but it does. There is a bias and it has gotten tighter. When I started 30 years ago, the age bias was probably 30 to 55. At 52 or 53 you’d be discriminated against. Whether they told you to your face or made an excuse, you wouldn’t have very good luck getting a job. Today, because of merger mania, we’ve probably moved down five clicks. Now they’re looking for someone 30 to 50 with an MBA. So the guy who is 47, 48 is starting to run into discrimination. Q: What should older executives do to compete? A: I would suggest they go back and get their MBA if they don’t have one. They should also dramatically increase their computer knowledge if they’re not already computer literate. Otherwise, they’ll be dinosaurs. Even if they’re only 45, they may be competing with a 35-year-old who already has a 10-year track record and a master’s. There’s too much importance placed on education. But that’s a fact of life, like it or not. So go back and improve your education. There are plenty of excellent MBA programs in the area, at UCLA and USC and Pepperdine that are designed for mid-career people. Q: What are the prospects for women and minorities advancing in the corporate world? A: I’d say they’re excellent. I do a lot of diversity search for women and minorities. When I started out it was hard to find good people. Some of the people out there were there because of their gender or race. Today, there are a lot of people out there who are good, who happen to be minority or female. Also, the precedent has been established. There’s still a lot of chauvinism out there, but it’s far less than it was 10 years ago. Q: What’s the pay scale for executives you place, and how much does your company receive for its evaluation? A: In retained executive search, if you charted it out on a bell curve, salaries start at about $75,000 and peak at about $125,000 to $150,000. Occasionally, you get one that’s $1 million. We get a third of annual compensation. If someone is paid $300,000, our fee would be $100,000. That’s a lot of money, but companies are willing to pay that for the assurance they’re getting the right person. Q: What do you need in terms of attributes to do your job well? A: Having a passion for the marriage rather than the wedding. Most people in executive search are good wedding makers and not good marriage makers. Also, we try to treat people with dignity and courtesy. We’re very guilty in the search business with treating job seekers very poorly. These are people who are out of work, they’re frightened and often they’re treated without dignity. Well, that’s not the way I was raised, so I always try to treat people with dignity.

RICHARD H. CLOSE Businesses and residents of the San Fernando Valley are enthusiastic about the possibility of the Valley becoming a separate city. Over 25 percent of registered voters in the Valley signed petitions calling for a cityhood study by the Los Angeles County Local Agency Formation Commission, or LAFCO. The agency will determine whether the Valley can operate as a separate city with no increases in taxes and whether the assets and liabilities of the city of Los Angeles can be divided in a manner that will not hurt the remainder of the city. If LAFCO results are positive (which most people expect), the voters will decide whether or not to create the Valley as a separate city. The measure has to be approved by a majority of the Valley voters, and a majority of the entire city. Why did 202,000 residents in the Valley sign the LAFCO petition? The central reason, I believe, is that Valley businesses and residents want a local government that will focus on local needs and objectives. For instance, how many businesses have moved out of the Valley because of the city’s archaic and unfair gross receipts tax? Los Angeles businesses are taxed based upon their gross receipts, not profits. That is unfair and wrong. Most cities surrounding the San Fernando Valley do not have a similar tax. The tax may make sense for downtown Los Angeles, but not for the Valley. The government, of course, cannot have a different tax code for different areas of the city. But as a separate city, the San Fernando Valley will have the ability to create its own tax system, which will encourage businesses to locate and expand in the Valley. Currently, most city employees work in downtown Los Angeles. It takes a long time to drive downtown to get city services. You are lucky if the city employee knows anything about your area. Contrast this with the level of service in Burbank. There, city employees are located nearby, they are concerned about your business or neighborhood, and they are knowledgeable about your needs. Can you imagine the benefits if all city employees were focused on making the Valley a better place to work and live? As a separate city, all public transportation tax dollars received from the Valley would stay in the Valley. Currently, most of the sales-tax dollars to be used for mass transit are spent outside the Valley. How many billions of dollars were spent on the subway? Why are we only receiving a stub in North Hollywood? The entertainment business is booming in Burbank. Very little of this business has spilled over into North Hollywood, even though land is much cheaper and readily available. Part of the answer is that Los Angeles has focused on other programs in other areas of the city. As a separate city, the Valley would be able to focus on attracting and retaining businesses right here. Mayor Richard Riordan and other civic leaders acknowledge that there needs to be a restructuring of the city. We were told that charter reform will be the answer. However, the new charter is a compromise that does not fulfill most of the mayor’s goals. The proposed city charter is better than the current charter, but it does not solve most of the problems that exist. Most people look at Burbank and Glendale to see the benefits of a smaller city. However, a more striking example is the city of San Fernando. It has a population of about 24,000 residents, most of whom are not wealthy people. Still, the community has less graffiti and fewer potholes than Los Angeles. Police response time is substantially less than in the rest of the Valley. There are 88 cities in Los Angeles County. Virtually all of them have lower taxes and provide superior services than the city of L.A. We need the LAFCO study to find out why the 33,000 employees of the city are not providing the level of service we expect and need. Why did the city have to pay $800,000 in late charges to Pacific Bell? Why did the city lose $65 million in the Baldwin Hills Crenshaw Plaza and the Grand Central Market? The Howard Jarvis Taxpayers Association supports the LAFCO study. It believes that the study will, for the first time, open the books and records of the city to public scrutiny. A vote on whether the Valley should be a separate city could be in November of 2000 or more probably the spring of 2002. No matter what happens, this process is good for the Valley and for the remainder of the city. Richard H. Close is an attorney and chairman of Valley Voters Organized Toward Empowerment, a coalition of San Fernando Valley residents, educators, business leaders, community activists and organizations who support studying the creation of an independent Valley city.

By LARRY KANTER Senior Reporter As a U.S.-led NATO assault sent bombs and missiles raining down on targets in Serbia in recent weeks, there was something missing: Much of L.A.’s defense industry. Where military conflicts in years past sparked assembly lines at manufacturing plants throughout the region, little of the high-tech military hardware being deployed in the current assault is manufactured in Southern California a stark reminder of just how much the defense industry has changed in the post-Cold War era. Homegrown behemoths such as Lockheed, Douglas Aircraft and Rockwell International once dominated the entire industry. But these days, L.A. is just one of many stars in the nation’s aerospace and defense constellation, overshadowed by Seattle, Bethesda, Md. and Marietta, Ga. “The old name plates have disappeared” from Los Angeles, said Jon Kutler, an aerospace analyst and president of Quarterdeck Investment Partners Inc. Instead, he said, “the work is handled by small subcontractors” the hundreds of largely anonymous firms that supply components to large prime contractors, as well as companies that provide some of the technological brains behind so-called “smart” bombs and guided-missile systems. Such companies are keeping a close eye on current developments in the Balkans. Consider Brad Spahr, president of Composite Structures, a Monrovia-based manufacturer of aircraft parts, including rotary blades for Boeing Co.’s Apache helicopter. Following the Gulf War, Composite Structures, which has 460 employees and had 1998 sales of about $60 million, experienced a brief surge in orders as the military sought to replace worn-out helicopter blades. Will the current conflict spark a similar demand? “It depends what happens,” said Spahr. “If they just continue the bombing, we will not see a major spike. But if there is ground action, and they send in Apache (helicopters), then we most certainly will see a spike in sales.” How big a jump? Demand for helicopter blades, the company’s second-largest product line, could leap some 10 percent, Spahr said, adding as much as 5 percent to the firm’s overall sales. But he’s not counting it. Nor should he, says Kutler. “Limited campaigns like this one (in Serbia) tend not to have a direct impact on companies’ bottom lines,” he said. “The money spent just isn’t enough to flow through to companies.” Indeed, like many local subcontractors, Composite Structures is steadily scaling back its reliance on defense subcontracts in favor of commercial business, which currently represents about half of its annual revenues, up from 40 percent in 1997. “You always want to have a good balance between military and commercial customers,” Spahr said. It’s only relatively recently that L.A.’s defense suppliers have had to become so careful. For much of the region’s recent history, the military was a reliable and deep-pocketed customer. As the nation entered World War II, for example, government orders for aircraft like Lockheed P-38 fighters and Douglas C-47 transports stimulated assembly lines throughout the region, putting hundreds of thousands of people to work and remaking the local economy. Later military conflicts unleashed similar economic dividends. But even if a prolonged Serbian conflict leads to an increase in defense spending and a demand for new equipment, the local impacts will remain minimal, especially in the short term, Kutler said. He cited the significant lag time between when a contract is awarded and the time the funds actually work their way into the procurement cycle. The employment numbers bear out L.A.’s loss of stature in the defense industry. In 1998, 142,400 people in L.A. County worked in aerospace, according to the state Employment Development Department, compared to 274,200 in 1988. The Economic Development Corp. of L.A. County is forecasting a further dip in local aerospace employment, to 136,700 in 1999. The Yugoslav conflict has to be particularly bittersweet for Northrop Grumman Corp. Its B2 stealth bomber, long the subject of controversy thanks to its $2.1 billion price tag and one of the few pieces of hardware made here in L.A, made its military debut last month to generally enthusiastic reviews just as the aerospace giant begins to phase out the project, closing the Pico Rivera plant that once employed thousands. Northrop also is a significant subcontractor on Boeing’s F/A-18 Hornet and C-17 transport jets, and builds the radar for the F-16 all of which are being deployed in the Balkans. Will demand for those products increase? It’s difficult to gauge a direct cause and effect, said Northrop spokesman Jim Taft. However, he added, “Obviously, as they distinguish themselves in operational use, then that increases their value to the customer community.”

April 5-18, 1999 Volume 4, Number 7 On the Cover GOVERNMENT A bid by the San Fernando Valley to secede from L.A. appears to be gaining credibility and momentum. PUB Chicago Beer & Pizza is pushing into the San Fernando Valley for the first time, opening a microbrewery and restaurant called BJ’s. CONDOS Builders are shying away from condominium construction. The problem: sky-high insurance rates fueled by homeowner lawsuits. Up Front DEVELOPMENT Newhall Land & Farming Co. is ready to beat back legal challenges as it pushes forward with its new community. 5 TOURISM Valley leaders are demanding money from the city to promote tourism, but critics say a separate promotional campaign would be redundant. 6 NEWLAMP As L.A.’s marketing agency disbands, a new, smaller organization is forming to take its place. 7 POLITICS There’s almost sure to be a runoff in the hard-fought race for the Seventh District L.A. City Council seat. 8 RETAIL Harold Feldman opened a doll shop eight years ago for his daughter. Today the business is thriving thanks to the popularity of doll collecting. 8 GROWTH Agoura Hills’ commercial core is growing fast, despite the city’s plans to halt new residential growth. 9 TV Dolby Laboratories Inc. is positioned to capitalize on high-definition television. That is, if the technology catches on with the public. 10 DEFENSE L.A. is not benefiting much, economically, from the war in Kosovo, illustrating the area’s declining status as a defense-industry center. 12 BANK The failure of DD Westen Wear in Pacoima is symptomatic of the Community Development Bank’s troubled history. 13 Fast Track INTERNET In less than six months, Westlake Village-based NetZero has become the fastest growing Internet service provider ever. 16 Spotlight On UNIVERSAL CITY Despite what most would consider a great location, this community is in a state of transition, with many businesses struggling to hold on. 17 People C. WILLIAM GUY The founder and managing director of Cornerstone International Group offers job-hunting tips for executives on the move. 18 Columns & features Newsmakers 19 Strategies Columns & features Enterprise 22, Personal Finance 23, Econowatch 23 Real Estate Columns & features Real Estate Column 24

Irene Ryding Owner Ad Vantage Promotions I don’t think they’re doing a good job. I know nothing about it, and I read the L.A. Times every day. I haven’t seen anything on it. It hasn’t been on TV. So I’d say no, they haven’t done a good job.