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5 1 2 PA J A R O S T R E E T
SUITE 14
SALINAS, CA 93901
S P R I N G | 2 0 1 2
Exceptional caregivers. Exceptional care.
Yesterday. Today. Tomorrow.
Training, experience, dedication, compassion. That’s what you’ll find in the doctors,
nurses and other top-notch healthcare professionals at Salinas Valley Memorial. They
are the reason we were rated as “high performing” in the U.S. News & World Report
annual Best Hospitals issue. And why we received the American Heart Association’s
2011 Get with the Guidelines—Heart Failure Silver Quality Achievement Award.
These are only two of the awards Salinas Valley Memorial has received for outstanding
patient care.
And that’s what we’re all about. Yesterday, today and tomorrow.
www.svmh.com
COASTA L G ROW E R | S P R I N G 20 1 2
1
Features
5
PUBLISHER’S NOTES
6
CONTRIBUTORS
Community
10 PRESIDENT’S MESSAGE
12 INSIDE United Fresh Winter Leadership
Meetings By Ray Gilmer
14 TAX Multistate Taxes and Interstate
54 IMPOWER Luncheon
56 Rancho Cielo Culinary Round Up
57 Salinas Farm Day
Commerce By Gina Andersen
58 Monterey County Free Libraries Centennial
16 TECHNOLOGY Top Cyber Security
Concerns for 2012 By Luis Alvarez
18 INVESTMENTS Exchange-Traded Funds
By Matt Lewis
20 LAND USE Permitting Requirements of
Manmade Ditches By Jason Retterer
59 2012 Hero Awards
60 2012 CG Tour of Homes
62 Children’s Miracle Network Gala
64 Chamber Annual Awards Luncheon
66 CG Bulls Baseball
22 WEALTH How to Deal with an Illiquid
Estate By Kathryn Harrison
24 SAFETY Cal/OSHA Awareness for
2012 By Amy Wolfe
28 MARKETING Customer Loyalty
By Kate Weber
30 NORTH Interview with Gayle Ortiz
By Jess Brown
46 VINE Corralitos Wine Trail
By Laurie Daniel
36 Home Showcase Garlinger Ranch
By Melody Young
48 HISTORY Monterey Bay Whaling
By Burton Anderson
50 NUTRITION Foods for Fuel
By Stephanie Bouquet
52 GARDEN Basic Organic Gardening 101
By Steve McShane
COV E R P H OTO
Cover Photo: A wildflower blooms in
Monterey County.
Craig Lovell, Eagle Visions Photography.
© All Right Reserved.
www.eaglevisions.net
2
At Syngenta, teamwork
makes the difference
One company
Innovative solutions
By integrating Pybas and Synergene germplasm,
breeding and seed production capabilities with
Syngenta R&D and technology, the result is a
superior offering for growers.
Our commitment extends to developing
innovative varieties and solutions that meet
our customer’s needs today and tomorrow.
Leafy research and development
Building on success
We are focused on developing varieties and crop
solutions for all major lettuce segments, as well
as celery and endive.
The combined synergies of Pybas, Synergene
and Syngenta extend our capabilities and broaden
our commitment to the leafy vegetable market.
© 2012 Syngenta. Important: Always read and follow label instructions before buying or using Syngenta products. The instructions contain important conditions of sale,
including limitations of warranty and remedy. All crop protection products and seed treatments may not be registered for sale or use in all states. Please check with your state
or local extension service before buying or using these products.Durivo is highly toxic to bees exposed to direct treatment on blooming crops and weeds. Do not apply this
product or allow it to drift onto blooming plants while bees are foraging adjacent to the treatment area. FarMore Technology is a seed company- or seed technology providerapplied combination of separately registered seed protection products and proprietary application technologies. FarMore FI400 contains three fungicides: Apron XL, Maxim
4FS and Dynasty; and one insecticide: Cruiser 70 WS. Apron XL®, Durivo®, Dynasty®, FarMore®, Maxim®, Revus®, the Alliance Frame, the Purpose icon and the Syngenta
logo are trademarks of a Syngenta Group Company. Syngenta Customer Center: 1-866-SYNGENT(A) (796-4368).
Customer Center: 1-866-SYNGENT(A) (796-4368). www.FarmAssist.com
16VE2019
3
Don’t Miss A Single Issue!
1 1
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PA J A
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ALIN
Subscribe to Coastal Grower today.
$20 Annually for 4 Issues.
Coastal Grower
www.coastalgrowermag.com
Publisher
Tom Koster
SEND CHECK TO
Editorial Director
Subscriptions/Koster Communications
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Managing Editor
Karen Nardozza
Nardozza + Associates
295 Main Street, Suite 230
Salinas, CA 93901
[email protected]
Art Director
Jay Galster
Staff Historian
Burton Anderson
Advertising Sales
Whitney Brem
Whitney Brem Consulting
Phone: 831-596-4945
[email protected]
2011-2012 Grower Shipper Association of
Central California Board of Directors
Sam McKinsey, Chairman, Green Giant Fresh By Growers Express
Margaret D’Arrigo-Martin, Vice Chairman, D’Arrigo Brothers of California
Mark Borman, Taylor Farms, Treasurer
Phil Adrian, Coastline Produce
Butch Corda, Ippolito International
Mike Costa, Anthony Costa & Sons
Craig Dobler, Dobler & Sons, LLC
Ernie Farley, Sundance Berry Farms
David Hart, Royal Packing Co./Dole Fresh Vegetables
Chris Huntington, Hilltown Packing Company
Bob Martin, Rio Farms
Steve McIntyre, Monterey Pacific & McIntyre Vineyards
COASTAL GROWER is published by Koster Communications, Inc.,
in coordination with the Grower-Shipper Association of Central
California. All rights reserved by Koster Communications, Inc.
Koster Communications, Inc.
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Salinas, CA 93901
Phone: 831-594-1977
Editorial Content: [email protected]
Business Office: [email protected]
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COASTAL GROWER Magazine is a publication of articles
concerning agriculture and its history. Articles, opinions, advice and
points of view on various aspects of agriculture and state or federal
law are the opinions of the authors of each particular article and
not that of COASTAL GROWER Magazine which makes no warranty
whatsoever as to the validity of any opinion or advice given unless
expressly so adopted in writing.
4
N OT ES
Let’s Play Ball!
“Kids need to understand the
difference between failing and
It’s that time of year again. I don’t mean spring break or the Easter holiday, and I’m not
talking about daylight savings time or Mother’s Day. I’m talking baseball.
losing. Losing is a part of everyday
That’s right … this self-certified baseball mom is back in her element with both my boys
life. You will get beat and you will
playing at their respective league and high school. If you’ve been following the progress of
be bested, but those are life’s
the traveling baseball team we sponsor, you’ll understand what a love I have for the game.
true gifts when you take them
I grew up watching my brother and his friends play baseball. I smile when I see the little sis-
as lessons and learn from them.
ters running around the ballparks these days reflecting on how that used to be me and my
I truly believe the only way you
friends. My father started the Toro Pony Softball league with Bruce Adams in the 1980s. He
can fail in life is to quit. If you
coached Spreckels Little League and Pony Baseball with Tom Ryan and Joel Swanson. In
never quit, you can never fail.
fact my dad loved coaching these sports so much, he stayed on at Salinas High with coach
It really is that simple.”
Gary Alfonso even after both my sisters gave up the sport!
–Curt Schilling
I remember one Father’s Day my siblings and I grappled on what to get a dad who never
asked for much. We settled on a plaque for his office wishing him “Happy Coach’s Day.” We
realized while he was a great father, he touched the lives of many youth in this community—
not just ours. My brother calculated the years he spent coaching him in baseball and they
won 10 championships out of 14 seasons. While the statistic is impressive, I’ll never forget
him telling me once, “Winning is easy. Teaching kids to accept a defeat with pride is the
hard part.”
While not baseball related, some other winners taking the field this time of year are the
stellar volunteers behind Public Recreation Unlimited (www.publicrecreationunlimited.com).
Public Recreation Unlimited is a 501C3 charitable non-profit organization that was formed
in 1970 to raise funds in order to place needed improvements on property devoted to recreational purposes. Since its inception, this group has raised millions of dollars for projects in
Sherwood Park such as the renovation and reconstruction of the Rodeo Grounds into
today’s multi-use Salinas Sports Complex that includes not only the arena, but softball
fields, an indoor soccer facility and more. Public Recreation Unlimited is now embarking on
a major fundraising campaign to collect $6 million to build a state of the art stadium to
house high school football, soccer and more. Youth in the Salinas Valley will benefit tremendously from these efforts.
I encourage you to visit Public Recreation Unlimited’s web site to see how you can help.
There are some cool dimensional graphics of the new stadium, and you can see the impressive list of donors, both individual and corporate, that have once again stepped up to create
a jewel for the kids in our community. This stadium will definitely be churning out its share
of champions and, to my dad’s point, hopefully kids learning to take a defeat with pride.
5
Contributors
6
Matt Lewis
Stephanie Bouquet
Kathryn Harrison
Matt started with Western Growers Financial
Services in 2001 after beginning his career in
the securities industry at a major brokerage
house in the late 1990s. Matt now manages
retirement plans, corporate cash management
and investments for Western Growers
membership and their affiliates. He is also
responsible for the direction and management
of the entire organization’s portfolio. A
graduate from Cal Poly, Pomona, with a
degree in Finance, Matt currently lives in
Corona, CA, with his wife and two children.
Stephanie is a registered dietitian and
owner of SB Nutrition Consulting. She holds a
bachelor’s and master’s degree in Nutritional
Science from Cal Poly, San Luis Obispo and
Cal State University, Northridge. Since 1993,
Stephanie has practiced in the field of nutrition with specialized board certifications in
weight management, diabetes and sports nutrition. She offers individualized nutrition consultations, group style classes, athletic team
presentations and wellness coaching services.
A native of Salinas, Stephanie returned to the
area to raise her own family. Visit Stephanie’s
website: www.sbnutrition.net.
Kathryn has been helping families and business owners reach their financial goals for
over 25 years. A Certified Financial Planner
and former CPA, Kathryn is a partner at
Astera Financial Group, a multidisciplinary
wealth and investment management firm
serving affluent families, business owners,
non-profit organizations and retirement
plan sponsors. Kathryn is a member of the
Financial Planning Association and her community activities include The Women’s Fund
of the Community Foundation of Monterey
County and the Board of Directors of the Forest Theater Guild. Kathryn can be reached at
[email protected].
Luis Alvarez
Melody Young
Laurie Daniel
When he founded Alvarez Technology Group in
2001, Luis envisioned creating a professional
information technology (IT) services firm that
would cater to the very specific needs of small
and mid-sized companies, affordably providing
them the same level of IT support for which
Fortune 100 companies pay a premium. The
company is now recognized as the premier
technology leader on the Central Coast. He has
a BS/IT and MBA from the University of Phoenix and is a retired non-commissioned officer
of the U.S. Air Force where he spent his career
working in the field of Intelligence.
Melody, a lifestyle consultant and owner
of MY DESIGNS, provides custom tailored
home, personal, and professional services to
meet each clients’ unique needs. With many
years’ experience as a designer and organizer,
Melody acts as the liaison between her clients’
real world and their perfect world. Services
include home design, organization and event
planning, as well as custom gifts and accessories, and concierge services. She is a member
of the National Association of Professional
Organizers and donates time to various charities in Monterey County.
A resident of the Santa Cruz Mountains,
Laurie has been a journalist for more than
30 years. Although she grew up in winedeprived surroundings in the Midwest, she
quickly developed an interest in wine after she
moved to California. Her weekly wine column
is published in several newspapers, including
the San Jose Mercury News, and her work has
appeared in magazines such as Food & Wine,
Wine Country Living, Wines & Vines, Drinks,
and Wine Enthusiast. She is a frequent judge
at wine competitions in the U.S. and abroad.
Amy Wolfe
Gina Andersen
Jess Brown
Amy is the President and CEO of AgSafe,
a statewide nonprofit organization whose
mission is to minimize injuries, illness and
fatalities in California’s agricultural industry.
She currently sits on the Board of Directors
for the Agricultural Awareness and Literacy
Foundation and on the Board of Directors
for the United Way of Stanislaus County
and is actively involved in the Association
of Fundraising Professionals. Amy received
her MPPA from CSU, Sacramento and her BS
from Cal Poly, San Luis Obispo. She and her
husband Rich, a high school Ag teacher, live
in Escalon, CA.
Gina Andersen is the partner in charge of
the Tax Department at Hayashi and Wayland,
Accounting & Consulting, LLP, with expertise
in business taxation and agriculture. She is a
member of the American Institute of Certified Public Accountants, California Society of
Certified Public Accountants and California
Women in Agriculture. Ms. Andersen has a BS
in Agriculture Business and an MS in Taxation.
She currently serves as the Treasurer for Ag
Against Hunger.
Jess serves as executive director of the Santa
Cruz County Farm Bureau and the educational
organization, Agri-Culture. His community
activities include past-president of the Cultural
Council of Santa Cruz County, the Monterey
Museum of Art, Cabrillo College Foundation
and Community Foundation of Santa Cruz
County. Jess served as chairman of Goodwill
Industries for Santa Cruz, Monterey and San
Luis Obispo counties. He also served
as commissioner of the Santa Cruz County
Parks and Recreation Department. Currently,
Jess serves on the board for Leadership
Santa Cruz County, Santa Cruz Area Chamber
of Commerce and chair of the Tannery
Arts Center.
Jason Retterer
Ray Gilmer
Kate Weber
Jason is a land use and environmental attorney at L&G, LLP in Salinas, CA. He was
lead environmental counsel for the Panoche
Valley Solar Farm. Jason represents property
owners, developers, and public agencies on
mattters involving local, state and federal land
use and environmental laws, including the
California Environmental Quality Act, Williamson Act, California’s Planning and Zoning Law,
the Subdivision Map Act, and the California
Coastal Act, the National Environmental Policy
Act, and the state and federal Clean Water and
Clean Air Acts.
At United Fresh, Ray Gilmer provides communications counsel on behalf of members,
including recall and other crisis situations.
Ray’s background includes work in television
news as a reporter or producer, where he
contributed to a few crises as part of the job.
Additionally, Ray has served as public affairs
director for Florida Fruit & Vegetable Association, and as national media relations director
for a major public relations agency, where his
client list included Monsanto, Ralston Purina
and Farm Credit Bank. Other experience
includes directing U.S. marketing programs for
BASF Crop Protection and BASF Crop Science.
Kate recently made a career change from
teaching English at Hartnell College and Monterey Peninsula College to accepting her first
position in marketing as Account Coordinator
for Nardozza + Associates in December 2011.
She’s enjoying being a part of a new team and
networking with the greater Salinas community. In addition to assisting the N+A staff with
project management, Kate specializes in copywriting and editing. When she’s not learning
the ropes at N+A, you can catch her staying
active with running and Zumba.
7
Impressive Minds,
Impressive Moves
Burton Anderson
Burton Anderson is an author and historian
whose works include “The Salinas Valley:
A History of America’s Salad Bowl,”
“California Rodeo Salinas: 100 Years of
History,” and numerous other articles and
studies. A contributing member of the Monterey County Historical Society, Anderson also
is a speaker on topics related to the environment, culture and world agriculture. Burton
also is a member of the Board of Governors at
the University of California, Berkeley, College
of Natural Resources (formerly the College of
Agriculture).
A New Summer Program
Hosted by Palma School
June 11th – July 13th, 2012
J
oin us for an exciting summer at Palma School! The campus at
Palma will be transformed into a unique experience for boys and girls
entering grades 5 through 12. The diverse range of course offerings
include athletic camps for football, baseball, and softball, taught by AllAmerican athletes and Palma coaches, as well as unique science, art,
culinary, and writing courses for the curious young scholar! For more
information, including the full list of course offerings, please visit our
website at www.palmaschool.org.
EXCELLENCE
8
|
VALUES
|
LEADERSHIP
Steve McShane
Steve is Owner and General Manager of
McShane’s Nursery & Landscape Supply in
Salinas, CA. He has a BS in Soil Science from
Cal Poly, San Luis Obispo and an MBA from
Santa Clara University. He serves as a Salinas
City Councilman. When not working, he loves
hiking, traveling to far reaches of the planet
and experimenting with exotic fruits. He can
be reached at [email protected].
9
PRESIDENT’S MESSAGE
Boots on the Ground
B Y J A M E S B O G A R T, P R E S I D E N T & G E N E R A L C O U N S E L
encourage an interactive educational process with
FARM LABOR
FOOD SAFETY
both the presenters and classmates.
The course curriculum not only includes those
WATER
subjects noted above but also sessions on agricultural
NUTRITION
history, ethnic and cultural contributions of our
MARKET ACCESS
diverse workforce, ag/urban interface, economics
TRADE
and marketing, research and technology, geographic
SUSTAINABILITY
diversity and crop mix, and the ever-popular “day with
CROP PROTECTION
the farmer.” On controversial issues such as genetically
modified organisms, unionization, pest management
I’ve written about all these subjects in past issues
practices or environmental regulations, we make
of Coastal Grower. My purpose, of course, is to
sure that both sides of the issue are presented.
inform readers of the most pressing issues facing
agriculture. We at the Grower-Shipper Association
believe it is extremely important to educate and
tractors; tour coolers, food processing facilities,
enlighten the public on the numerous and complex
nurseries and seed companies; personally visit and
challenges affecting our ability to provide safe,
observe water storage facilities and dams; and see
affordable and nutritious produce to our nation’s
first-hand the interaction and confluence of production
families.
agriculture and an environmentally sensitive area like
While the written word is important in
communicating our message, just imagine what a
personal, “hands on” education on all these subjects
would be like!
You need look no further than the Grower-Shipper
Marine Sanctuary.
The AgKnowledge program consists of nine fullday sessions—one Friday a month starting in March
and concluding in November (plus the “day with the
farmer”). Curriculum and course syllabus are updated
Leadership Program. For the past five years, more than
each year based upon formal evaluations submitted by
100 Central Coast community leaders have graduated
class fellows.
This year marks Class VI of the AgKnowledge
and enlighten class members about the heritage,
program. We look forward to continuing the tradition
stewardship, complexity and interdependencies of
of educating the public on the importance of, and
Monterey County agriculture.”
Class diversity is key. Our fellows come from
government (elected and regulatory), education,
labor unions, environmental and conservation groups,
community advocacy organizations, media (print and
electronic), and philanthropic non-profits. Class size
is also important. We limit the class to 22 students to
the Elkhorn Slough and the Monterey Bay National
Association Foundation’s “AgKnowledge” Executive
from this program whose mission is “to educate
10
AgKnowledge is a “hands-on” educational
experience. Class fellows harvest crops and ride
the enormous contribution made by, those in the
agriculture industry. For more information visit
www.gsafoundation.org. CG
“If they grow it,
they’ll eat it.”
HUGE NEED:
Although half our plates should consist of fruits and
vegetables–about 5-9 servings–the majority of America’s
children go without eating one serving of fruits and
vegetables each day.1
Thirty percent of US children are obese; half are
overweight.2
Western Growers’ members grow almost half the produce
found in neighborhood grocery stores across America. Our
members grow the best medicine in the world.
DONATE TODAY
Any amount will help us toward our goal.
$1,500 will fund one school garden.
having a lower life expectancy than their parents.3
Western Growers Foundation’s mission:
To create and sustain an edible
garden in every willing Arizona and
California school.
Western Growers Foundation has:
Funded more than 600 school gardens; we estimate
that 90% are still active.
Built resources sites such as www.csgn.org and
www.producepedia.com.
Provided a free downloadable book, Gardens for
Learning, to all interested schools.
Spread the word through media, events and outreach.
www.westerngrowersfoundation.org/donate
Western Growers Foundation
17620 Fitch Street
Irvine, California 92614
[email protected]
Centers for Disease Control, 2009
American Journal of Medicine
3
American Journal of Medicine
1
2
11
INSIDE
United Fresh Considers Food Safety
Modernization and Celebrates Reggie Griffin
B Y R AY G I L M E R , U N I T E D F R E S H P R O D U C E A S S O C I AT I O N
It seemed like a good idea to invite Food
and Drug Administration’s Mike Taylor to
speak at the United Fresh Winter
Leadership Meetings in San Diego in late
January. After all, Taylor is FDA’s Deputy
Commissioner for Food, so who better to speak
about the new regulations stemming from the
Food Safety Modernization Act? The only problem: FDA’s FSMA rules were still under wraps at
the Office of Management and Budget, and
Taylor had his poker face on. There would be
no sneak peeks at the new food safety rules.
FDA missed a January 4 goal for releasing
the set of FSMA rules, which includes a preventive controls rule in food facilities, a foreign
supplier verification rule and a produce safety
rule. United’s volunteer leaders, 200 of which
attended the roster of board and council meetings, had hoped to hear details about the new
food safety regulations.
While Taylor couldn’t yet unveil the new
rules, he did underscore the need for FDA and
the produce industry to work together to
implement FSMA.
“It’s gratifying to me that we are on a path
to the mandatory federal standards that are
important for regulating food safety,” Taylor
said in remarks at United’s general session.
“We’re not close to done yet, but I think we’re
on the right path.”
Taylor went on to say that a lot of what’s
going to happen to make food safe in the next
five or ten years will not be what the government does, but it’s going to be the supply chain
working together with common standards to
achieve food safety. Part of that effort will be
working to help the produce community understand the rules, including outreach, education,
training, and technical assistance, with particu-
12
(l to r): Tony DiMare, DiMare Company; Will Steele, Frontera Produce; Tom Deardorff, Deardorff Family Farms; Mike Martin, Rio
Queen Citrus, Inc.; Reggie Griffin, United Fresh Chairman of the Board, The Kroger Company (retired), hear stories
from 42 years in the produce industry.
It’s simply inappropriate to add
new fees or “food taxes” that
place the financial burdens of
implementation and enforcement
of food safety requirements on
the backs of our members.
lar focus on the smaller firms that are “not yet
there” in terms of implementing modern preventive controls. “This can’t just be FDA puts
rules on the books and sends an inspector. It
doesn’t work that way,” he said.
Taylor added that the FDA wasn’t going to
“inspect our way to produce safety,” saying
that Agricultural Marketing Service (AMS) cer-
tification and private audits could play a role in
oversight.
The topic of how to pay for all this did come
up when Taylor suggested that FDA needed to
secure resources to put the regulations in play.
However, if the FDA proposes to add new
industry fees as part of the rules, United Fresh
and 30 other industry organizations think it’s a
non-starter, and stated as much in a letter to
Secretary of Health and Human Services,
Kathleen Sebelius, and Jeffrey Zients, Director
of Office of Management and Budget. Improved
food safety benefits everyone, not just the
industry, and companies have already made
substantial investments in food safety. It’s simply inappropriate to add new fees or “food
taxes” that place the financial burdens of
implementation and enforcement of food safe-
(l to r): Karen Caplan, Frieda’s, Inc.; Dan Spain, Kingsburg Orchards.
ty requirements on the backs of our members.
As of the time of this writing, the FDA’s rules
hadn’t yet been released. When they are, FDA
says the comment period will be at least 75
days. Each rule is several hundred pages, so it
will take a while to review, but it’s critical that
we do. It’s the industry’s best and only chance
to fix problems before FDA makes them final.
While food safety, labor and a dozen other
industry issues were the topics for United’s
meetings, there was also time to celebrate the
career of United Chairman, Reggie Griffin, who
recently retired from Kroger. Reggie lent his
name to a golf tourney at the Rancho Bernardo
Inn course in San Diego. Everyone had a great
time, even while dodging a rain drop or two,
and the event’s proceeds supported the United
Fresh Foundation.
Following the golf, United hosted a special
dinner to honor Reggie, who was joined by several family members for the evening. Former
United chairs Jim Lemke and Steffanie Smith
took the stage to deliver a humorous review of
Reggie’s career highlights. It sounds cliché to
say “a good time was had by all,” but in this
case it was absolutely true.
Top (l to r): Matthew D’Arrigo, D’Arrigo
Brothers Company of NY; Michael Muzyk,
Baldor Specialty Foods Inc; Teresa
Chaisson-Muzyk; Harris Cutler, Race West
Company.
(l to r): Reggie Griffin, United Fresh
Chairman of the Board, The Kroger Company (Retired); Sandra Griffin, Stephanie
Williamson, Fred Williamson, Andrew &
Williamson Fresh Produce don’t let a
light rain keep them off the green at golf
tournament to honor Reggie Griffin.
(l to r): Kathy Stenzel; Lisa McNeece, Grimmway Enterprises.
Don’t forget to join us in Dallas for United
Fresh 2012, May 1-3. The show is co-located
with the Food Marketing Institute show, and
that translates to lots of food industry decision
makers in attendance. This year’s education
will have extra emphasis on consumer marketing and related topics that can help produce
industry leaders and retailers work together
for driving sales. Visit United’s website at www.
unitedfresh.org to see the full schedule and
register. CG
13
TA X
Multistate Taxes and
Interstate Commerce
B Y G I N A A N D E R S E N , H AYA S H I & W AY L A N D
Living and working in California, we are continually reminded of the dire financial situation the state is facing and have seen efforts
by government in recent years to increase
revenue. Beginning in 2009, the California
State Board of Equalization (BOE) changed the
sales and use tax registration requirements
mandating that many more companies register
and file annual use tax returns. In 2011, a new
Internet Sales Tax Law was enacted, despite
strong opposition by Amazon.com, requiring
internet companies to collect sales taxes on
sales made over the internet to customers
living in California.
Other states are facing similar issues, like
decreases in property tax revenues, sales tax
revenues and income tax revenues, to name a
few, and they are finding creative ways to
replace some of this income. Because many
states are looking for alternative revenue
sources, you must be very careful when conducting business outside California.
A company can inadvertently
fall under a state nexus and not
realize it for many years. If this
happens, the company would be
liable for all taxes from the date
it began business in that state.
Typically if a business is headquartered in
California, it pays tax in California. However,
other states also want their piece of the tax
pie. Each state determines what they call
“nexus” and defines the amount and degree of
activity a business engages in or degree of
presence required in their own state before
their state is entitled to assess tax on income
14
generated within the state. Once nexus has
been established, it is up to the business to file
returns and remit taxes in that state respectively. A company can inadvertently fall under
a state nexus and not realize it for many years.
If this happens, the company would be liable
for all taxes from the date it began business in
that state.
Generally, nexus is created based on three
factors: (1) when a business derives sales within a state (2) whether a business owns or leases property within the state (3) if a company
employs people in the state who are engaged
in activities beyond simple solicitation. How
much activity or what combination of these
three factors is required to establish nexus in a
specific state is defined by individual state law.
Research must be done state by state to determine each state’s specific requirements. Here
are some general guidelines to help businesses
determine income, sales or use tax obligations:
3 Know the law regarding physical presence
in each state. Look at your company’s
transactions within a state. Certain states
will consider an out-of-state corporation
that sends a truck into a state to make
sales directly from the truck as qualifying
as doing business in that state, and therefore having a physical presence. It has
been determined that sending catalogs,
making mail order sales and licensing computer software to customers in that state
does not establish a physical presence, but
what does quantify physical presence? If a
company ships product on their truck to
another state to sell at a terminal market,
are they establishing presence? Each company needs to look at the facts and circumstances surrounding a transaction to
determine whether or not they have established physical presence.
3 Know where your property is located.
There are obvious property items, such as
real estate, but what about a laptop computer? Do you have an employee working
in another state using a company-owned
laptop or driving a company vehicle? You
may be establishing nexus in that state.
Additionally, where are your products on
consignment or inventory located? Who
owns the inventory at the point of delivery
in another state? All these items must be
considered and researched.
3 Know where your employees are working
and their activities. Any employee, independent contractor, sales agent or representative working outside of California
could establish nexus. One computer programmer working from home in another
state could create nexus for that company,
as could an independent contractor providing services for a company’s customer in
another state.
With careful consideration, many companies
are able to structure their businesses and
transactions in a way that avoids establishing
nexus in the traditional sense as described
above. This is causing states to look for more
ways to find tax revenue. Several states, including Ohio, Michigan and Texas have reinstated
what is called a gross receipts tax. Gross
receipts tax is based on sales and does not
take into account any expenses. This type of
tax was used during the depression era to provide stable state revenue. Many states adopted
it at that time, but it had completely disappeared by the end of the twentieth century.
States are once again looking at it as a source
of revenue and as a way to discourage out-ofstate companies from competing with in-state
companies.
Each state is determining its own version of
the gross receipts tax and its own definition of
nexus as it applies to this tax. In Michigan, having an out-of-state employee coming into
Michigan for one day may make the company
subject to the gross receipts tax. Or, for example, soliciting sales in Michigan in excess of
$350,000 may make the company subject to
this tax. In this scenario, the company could
potentially send an employee to Michigan for
three days to meet with customers, sell products to those customers and then be subject to
a tax.
Many tax experts believe that gross receipts
taxes violate several key state tax policies.
Many states are actively communicating with
companies they feel may be required to file
and/or pay one of these taxes. For now, we wait
and see what the courts will decide on the
gross receipts fee. If your company has activities in another state, whether through an
employee, independent contractor, warehouse,
trucking company or customer, you may be
required to pay taxes to another state and
should be aware of the risk. CG
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AAC_CoastalGrower_4.75x7.125_div.indd 1
1/26/2012 4:23:26 PM
15
T E C H N O L O GY
Cyber Security 2012:
Top Threats and What to Do About Them
B Y L U I S M . A LVA R E Z , A LVA R E Z T E C H N O L O G Y G R O U P
Business owners and managers in Monterey
County tell me they don’t worry much about
computer or Internet security threats
because of where we are located; we’re primarily a rural area that should be of little
interest to cyber criminals. Or maybe they feel
their business is too small to be targeted. To
which I always reply: The Internet is a virtual
world where everyone looks pretty much the
same, and cyber criminals would prefer to
exploit smaller, more vulnerable companies that
have lax protections in place than tangle with a
bigger player who has tightened security. No
one can ignore the threats because anyone can
be a victim.
The information technology security industry
took a look at 2012 and saw a landscape littered
with cyber landmines ready to do significant
damage. Security professionals at both public
and private institutions share a concern that
this year promises to accelerate some of the
threat trends we started seeing in 2010 and
2011, as well as introduce new cyber threats that
we haven’t seen before.
Researchers at the SANS Institute (www.sans.
org), the world’s most trusted source of computer security training and research, got together
at the end of last year and issued a report outlining the top cyber threats for 2012. Here are
the top three to be aware of, including what you
can do to protect against these threats.
Evolving Malware
Malware, a generic term used to describe all the
bugs that can infect your system, including
viruses, Trojans and spyware, is getting smarter
and scarier. Whereas the cyber villain of yesteryear was typically looking for the notoriety that
came with causing wide-spread disruption of
computers, today’s bad guys have a different
agenda: they work in the shadows and shun
exposure, instead writing malicious code that is
intended to steal information from your com-
16
puter, preferably without your knowledge.
Estimates of the annual cost of cybercrime run
from $115 billion to $338 billion, but every study
concludes that smaller businesses have a higher
cost per incident than their larger brethren.
The nature of the threat is changing, becom-
The Internet is a virtual world
where everyone looks pretty
much the same, and cyber criminals would prefer to exploit smaller, more vulnerable companies
that have lax protections in place
than tangle with a bigger player
who has tightened security.
ing much more sophisticated. Gone are the days
of the lone wolf hacker working feverishly into
the night in his basement, coding the next big
virus. Today, malware is high stakes business,
being produced not only by criminal gangs
intent on stealing money or information, but
more and more by government players getting
into the business of creating malware using
technology far beyond what is available publicly.
That may explain the likes of Stuxnet and Duqu,
elaborate viruses designed specifically to target
industrial equipment and whose purpose is still
being debated. Stuxnet is credited for crippling
the Iranian nuclear enrichment program and
many people suspect that the Israeli intelligence
service was behind the design of the virus.
As the nature of these threats evolves, so
must the protection used to fight them. You can
no longer rely on a single piece of dated antivirus software to protect your computer; instead,
you must use a sophisticated, layered approach
of protection. You start at the gateway to the
Internet, the firewall, which has morphed from a
router used to access the Web to a unified
threat management (UTM) device with built-in
security tools like antivirus and antispyware
software designed to intercept the threat before
it gets into your network. Your servers and
workstations must also be protected with the
latest and greatest versions of your choice of
anti-malware software and be regularly updated. You must also put in place a notification system so you can find out the instant of an outbreak and take immediate action. Check with
your IT manager or outside consultant to make
sure you have the best protection you can
afford and that it is current.
consumer devices that are being brought into
the office. It’s one thing to protect the data on a
laptop; it’s quite another to have to worry about
iPads and Android-based smartphones carrying
confidential company information.
At a minimum, organizations that allow the
use of mobile devices should develop a security
strategy and policies affecting those devices.
What can be done through the use of technology enforcement depends on the device being
used, with some being easier to protect than
others. A business needs to understand the
risks inherent in the use of mobile devices and
be prepared to mitigate those risks.
The bottom line is that as technology
becomes more transparent in our lives, at work
and at home, there a bad guys out there who
realize this technology represents an opportunity to do harm or take advantage of you. Take
precautions and don’t be a statistic. At the very
least, talk to IT professionals and understand
where you are vulnerable and do what you can
to protect yourself. CG
Social Engineering
With all the attention being paid to the technology in our networks, one critical element of the
process is being ignored: the people who work
on the computers. Social engineering is defined
as “The art of manipulating people into performing actions or divulging confidential information.” Sometimes cyber criminals forgo the
sophisticated technological route and instead
attack the weakest link in the system, the user.
Often simply picking up the phone and impersonating someone in authority, like a government official or a bank representative, will get
the criminals the information they need to
cause damage.
Social engineering attacks have become the
favored method for identity theft, since it works
more often than not. Someone can call the
office pretending to be an IRS agent and get
confidential information about an employee
such as her social security number and birth
date and the next thing you know that person
now has ten new credit cards issued to them.
The problem has become so widespread, the
Federal Trade Commission has developed a program called Red Flags Rule (http://ftc.gov/redflagsrule) that provides helpful tools on how to
educate your staff on the dangers of identity
theft through social engineering methods.
Education is the only way to prevent social engineering attacks.
Mobile Devices
You can thank Apple Computer for revolutionizing mobile computing. At one time, the only
mobile device we had to worry about was the
laptop, but at least the information it carried
was protected by a user ID and password, at a
minimum. Today the proliferation of mobile
device options means the nature of the threats
are growing, especially given the explosion of
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17
INVESTMENTS
Advantages of Exchange-Traded Funds
B Y M AT T L E W I S , W E S T E R N G R O W E R S F I N A N C I A L S E R V I C E S
There’s a new kid in town—and it’s finding
popularity in many investors’ financial portfolios. If you haven’t heard of exchangetraded funds yet, let me introduce you to
them. Since they came onto the scene in 1993,
exchange-traded funds, investment funds traded like stocks, have risen in popularity. Today,
there are more than 1,100 exchange-traded
funds in the U.S. with combined assets in
excess of $1 trillion. The funds may be low cost,
widely available and boast tax efficiencies. The
exchange-traded funds market has grown to
include funds that track commodities, bonds
and currencies in addition to the original indextracking exchange-traded funds.
Exchange-traded funds make
asset allocation painless. An
investor can purchase stock,
bond, commodity and real estate
investment trust funds in a
single account and track asset
allocation.
Exchange-traded funds and index mutual
funds are similar products. The main difference
between the two is that exchange-traded funds
trade throughout the day, like stocks, while
mutual funds are priced after the market closes each day. The investor buys or sells at the
end of each day after the net asset value of
the fund has been determined. This means that
if the market is dropping, investors can sell
their exchange-traded funds position at the
price at which it is trading at that moment in
time. With mutual funds, investors wishing to
sell must wait until the market closes to deter-
18
mine the price. The same goes for a market
uptick. Bottom line: exchange-traded funds
give you more control over your investments.
Another advantage of exchange-traded
funds over index mutual funds is cost.
Exchange-traded funds often have lower
expense ratios than index mutual funds. A
prime example of this is the iShares S&P 500
Index Fund (ticker: IVV) that charged 0.09 percent in fees in 2011. In contrast, the Vanguard
500 Index Fund charged 0.17 percent in fees
for 2011. Additionally, not all index mutual
funds are available to online brokerage customers. This is because online brokers usually
charge the fund company a fee for making
their fund available to customers. This can turn
into a costly proposition for fund companies
and as a result they may hold back from doing
business with online brokers such as E*TRADE
and Schwabb. Exchange-traded funds, on the
other hand, trade like stocks and are available
to online brokerage clients.
Exchange-traded funds make asset allocation painless. An investor can purchase stock,
bond, commodity and real estate investment
trust funds in a single account and track asset
allocation. It becomes a bit tougher with index
mutual funds. Since not all index mutual funds
are available to online brokerage customers,
you may have to invest directly with the fund
company. This can result in investments spread
over several different accounts, making it harder to track asset allocation. Or, investors may
get locked into one fund family if they choose
to keep their investments with the index mutual fund.
Additionally, exchange-traded funds are not
susceptible to the cash drag to which index
mutual funds often fall prey. Mutual funds must
carry a cash position to meet any investor
The Exchange-Traded
Fund is Born
Jan. 29, 1993—State Street Global Advisors
launched the first-ever exchange-traded
fund in the United States. It was launched
under the appellation SPDR 500 (ticker:
SPY) on the American Stock Exchange and
benchmarked the Standard & Poor’s 500stock index. It has since grown to become
the largest exchange-traded fund in the
world, with assets in excess of $95 billion.
Popularity Grows
The success of the first exchange-traded
fund prompted other companies to hop on
the bandwagon. In 1996, Barclays Global
Investors launched the World Equity
Benchmark Shares, or WEBS, which tracked
the MSCI foreign market stock index. This
was later renamed the iShares MSCI Index
Fund Shares. There’s also the successful
Dow Diamonds (ticker: DIA), which tracks
the Dow Jones Industrial Average, and the
QQQQ’s, which tracks the Nasdaq-100.
redemptions. This cash position earns very
little return and may put a drag on the fund’s
performance. Exchange-traded funds solve
that problem: they are traded like stocks and
therefore have no cash flow.
Exchange-traded funds are also tax efficient
and provide easier tax management than index
mutual funds. While index mutual funds are
more tax efficient compared to actively managed accounts, they still make capital gains distributions. An investor holding a mutual fund in
a taxable account would get hit with a tax bill
for the capital gains regardless of whether the
investor made redemption. However, exchangetraded funds, make minimal or no capital gains
distributions, thereby improving the portfolio’s
tax efficiency. Additionally, mutual funds are
usually sold using average purchase price. This
hampers an investor’s ability to realize tax losses. With exchange-traded funds an investor can
choose the tax lots to sell and may be able to
minimize taxable gains.
While exchange-traded funds have significant advantages over their counterpart’s the
funds aren’t perfect. First, not all exchangetraded funds are traded frequently. Funds with
low trading volume typically have large bid-ask
spreads and are less liquid than funds with
high trading volumes. Second, not all
exchange-traded funds are created equal.
While there may be a set of funds that track
the same index and have similar characteristics, their costs may differ. Shop around for the
most appropriate fund before investing.
Additionally, there may be some fees associated with the trade. Brokers may charge a commission. It is important to research all fees and
expenses associated with trading exchangetraded funds.
Exchange-traded funds have been part of
the financial landscape for nearly two decades.
They have grown to become one of the most
popular investment vehicles for institutional as
well as individual investors. And as this market
continues to grow, there are sure to be new
and improved funds entering the fray. There
are many outstanding reasons for making
exchange-traded funds part of your portfolio. It
is important to take into account your overall
investment strategy, risk tolerance and the
costs associated with the investments. CG
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19
LAND USE
California Fish and Game Code Violations
for Routine Maintenance of Agricultural
Drainage Ditches
BY JA S O N S . R E T T E R E R, L & G , L L P
Farmers are subject to a number of local,
state and federal statutory and regulatory
requirements, which are often intentionally
left vague to provide flexibility to those
delegated with enforcement authority. Even
the most diligent and knowledgeable farmers,
who understand the fundamental regulatory
schemes, may find themselves scratching
their heads over a regulatory interpretation
or enforcement action involving routine
farming activity. In addition, farm-related laws,
regulations and administrative interpretations
of these laws will change each administration;
therefore, a routine farming activity that is
“legal” one day could be deemed a violation of
state law the next.
Recently, one of these head scratching
moments occurred in Monterey County after
the District Attorney notified a farmer that the
farmer had violated several provisions of the
California Fish and Game Code for conducting
routine maintenance and re-contouring of
a man-made farm drainage ditch to correct
an off-site flooding condition after a period
of heavy rains. The drainage ditch, which
generally followed the natural contours of
the property, was created approximately 40
years earlier when the previously grazed
property was converted for row crops. In
order to control storm water run-off from
on-site and adjacent farm fields, the drainage
ditch was constructed and routinely cleared
of excessive sediment and maintained for
decades. Until recently, the farmer conducted
this maintenance unimpeded by any regulatory
agencies or permitting requirements.
To the farmer’s surprise and chagrin,
the DA concluded, based on the report of
a California Department of Fish and Game
warden who happened to be traveling in the
20
area and observed the maintenance activity,
that the farmer had illegally altered a river or
stream without the benefit of a Streambed
Alteration Agreement. Accordingly, the DA
alleged that the farmer violated section
1602 of the California Fish and Game Code
thereby subjecting the farmer to hundreds
of thousands of dollars in potential fines and
civil penalties. Section 1602 provides that “an
entity may not substantially divert or obstruct
the natural flow of, or substantially change
or use any material from the bed, channel, or
bank of, any river, stream, or lake” unless DFG
is notified, provided with specified information
relating to the work, and effectively authorizes
the work to occur. The end product of this
notification is typically a Streambed Alteration
Agreement, which includes conditions and
mitigation measures to reduce potential
impacts of the work, such as re-vegetation
and replacement of vegetation at specified
mitigation ratios, and ongoing monitoring once
the work is completed.
The DA further alleged that the farmer had
deposited substances or materials (in this
case natural sediment) that were “deleterious”
to fish, plant life, mammals or bird life to a
“water of the state” (broadly defined as any
surface water or ground water in the state
of California) in violation of section 5650
(and section 1602) of the California Fish and
Game Code. The civil penalty for violating this
provision could be as much as $25,000 per
violation.
The course of action chosen by the DA
and DFG against this farmer represents
a shift in the regulatory regime’s historic
interpretation of the requirements of DFG,
which until recently has not been applied
to man-made farm drainage ditches. If the
DA’s broad interpretation of section 1602 is
accepted, all drainage ditches constructed
to capture and divert irrigation or on-site
storm water or irrigation flows could now be
considered a “river” or “stream,” which would
trigger the requirements of section 1602
prior to undertaking repair and maintenance
work. Accordingly and prior to undertaking
such work, the farmer would need to retain
the necessary consultants and engineers to
prepare and submit plans to DFG for their
review and approval and would be responsible
for implementing any conditions and
mitigation requirements if the DFG approves
the work. The farmer also may have ongoing
reporting obligations once the agreement
is approved. DFG would also be responsible
for preparing any necessary documentation
pursuant to the California Environmental
Quality Act prior to authorizing the work.
Depending on the magnitude of the work, this
regulatory process can be expensive and time
consuming.
In addition, the DA’s interpretation of
section 5650 means that the practice of
enhancing, realigning, repairing or maintaining
(e.g. sediment removal) an on-farm drainage
ditch without DFG approval could expose
a farmer to liability because it would be
virtually impossible to prevent some quantity
of sediment from being deposited within the
confines of the irrigation ditch. Additionally,
any farm-related grading that occurs near an
If the DA’s broad interpretation
of section 1602 is accepted, all
drainage ditches constructed to
capture and divert irrigation or
on-site storm water or irrigation
flows could now be considered a
“river” or “stream,” which would
trigger the requirements of
section 1602 prior to undertaking
repair and maintenance work.
on-farm drainage ditch could potentially result
in the deposit of sediment into the on-farm
ditch. Even if the ditch is highly disturbed and
contains no evidence of plant or animal life,
potential liability could still exist if the ditch
ultimately drained into an area that supported
plant or animal life because sediment can
travel downstream.
As a result of this latest regulatory action
and to avoid potential civil penalties, the
prudent course of action for any farmer
is to request that their association set up
meetings with the DFG and DA to discuss these
issues and seek the advice of an attorney
experienced in handling these types of issues
prior to contemplating routine or emergency
work on any drainage ditch. If your farm has
received a notice of a violation or you believe
that you may have violated the California Fish
and Game Code, an attorney can assist you
in reducing your exposure and developing
a sound defense to an enforcement action,
including retaining the requisite consultant and
experts to help support your case, which can
be expensive, but will be essential to avoiding
or substantially lessening the potential civil
penalties that could ultimately result from the
enforcement action. CG
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Salinas, CA 93901
831-424-1414
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21
W E A LT H
A Dilemma for Business Owners:
How to Deal with an Illiquid Estate
B Y K AT H R Y N H A R R I S O N , A S T E R A F I N A N C I A L G R O U P L L C
On the Central Coast, where many families’
wealth is comprised of real estate holdings,
farms and other business interests, it is not
uncommon for an estate to have liquidity
problems. Upon death, certain short-term cash
requirements will often exist. Absent proper
planning, the lack of liquidity may force the
sale of assets resulting in an economic loss to
the estate and a physical loss of an asset the
family intended to keep.
Common Concerns
Many families share common concerns when
establishing their estate plans and similar
questions arise in this process. Some questions
a closely-held business owner will likely
consider when establishing an estate plan
include:
3 How much will my estate be worth when
I die?
3 Will my estate owe estate taxes and, if so,
how will they be paid?
3 Are there ways to reduce taxes that will be
owed?
3 Will my family be able to afford to keep the
business after estate taxes are paid?
3 If some, but not all, of my family members
are involved in the business, how do I
equalize the inheritances for my heirs?
Let’s look at the major cash requirements
that will likely exist at death, and then outline
several tax-advantaged strategies available
for reducing liquidity needs and increasing the
estate’s cash flow.
22
Major Cash Requirements at Death
Family Standard of Living: Funds are needed
to maintain the same accustomed standard of
living of the survivors.
Administration Expenses: Are commonly
estimated as a percentage of the estate, and
can range from 1-5 percent, depending upon
the estate circumstances.
Debts of the Estate: Includes any unpaid
liabilities such as installment debts, mortgages
and income taxes.
Expenses and Taxes Related to Succession of
a Business: Additional funds may be needed
to meet payroll and operating expenses while
other family members step in or replacement
personnel are recruited and trained. Cash
may be needed to fund a buy-sell agreement.
Many businesses consider life insurance as one
component of the buy-sell funding.
Estate Transfer Taxes: Paid at the second
death (for a married couple), includes estate
and generation-skipping taxes. Through the
end of 2012, the estate and gift tax applicable
exclusion is $5,120,000 per person, and, absent
any tax law changes, this exclusion will revert
to $1,000,000 per person beginning in 2013.
Planning for the estate tax often poses the
most significant challenge, with the tax rate at
35 percent in 2012 and a top rate of 55 percent
beginning in 2013 under current law.
Through proper planning, business owners
can successfully prepare for the transfer
of their businesses, reduce the size of their
taxable estates and achieve estate and gift tax
savings by utilizing estate planning strategies
particularly advantageous to farms and other
closely-held businesses.
If properly structured, you may
freeze the value of certain assets
and transfer all excess appreciation to heirs.
Wealth Transfer & Liquidity Strategies
Asset Discounting Techniques: For
asset protection and consolidation of
business purposes, many families consider
establishing business entities, such as a
family limited liability company or a family
limited partnership. One benefit of this is a
discounting of values for estate tax purposes.
The elder generation may transfer assets to
the entity and begin gifting limited interests to
the next generation. Often, the gifted interests
may be discounted for lack of marketability
and lack of control.
Elders may gift interests or shares up
to the annual gift tax exclusion amount,
$13,000 per year per recipient or, if the gifts
are substantial, utilize the lifetime gift tax
exemption of up to $5,120,000 in 2012, without
incurring any gift taxation. These interests
may be transferred to a trust established for
the benefit of the heirs rather than outright
to the individual. Although discounting may
result in lower gift and/or estate taxes, these
techniques must be carefully structured by a
qualified estate attorney and are potentially
subject to scrutiny by the IRS. Families may
want to consider discounting strategies
while they are available and combining those
strategies with the increased $5,120,000
gifting capacity.
Estate Freeze Techniques: While the current
economic climate still has challenges, it
provides an ideal environment for many
planning opportunities. Continued low interest
rates make certain techniques more attractive.
In addition, assets with depressed values
that have future growth potential may be
candidates for planning. If properly structured,
you may freeze the value of certain assets and
transfer all excess appreciation to heirs.
In such an environment as described above,
techniques to consider are Gifts to Grantor
Retained Annuity Trusts and Charitable Lead
Trusts, and Sales of Assets to Intentionally
Defective Trusts. The impact when interest
rates are low is the potential for the heirs/
beneficiaries of the trusts to receive most of
the appreciation.
Installment Payments of Estate Taxes
(Internal Revenue Code Section 6166): Estate
taxes are due nine months after death. Subject
to specific guidelines, business owners may
pay federal estate taxes attributable to a
closely-held business interest in installments,
with interest only payable for the first four
years after the return due date, and interest
plus an equal installment of tax paid in each of
the following ten years. This is allowed if the
“closely-held interest” is included in the gross
estate of a decedent who was a US citizen or
resident at the time of death, and the value
of the interest is at least 35 percent of the
adjusted gross estate.
For asset protection and consolidation of business purposes,
many families consider establishing business entities, such as a
family limited liability company
or a family limited partnership.
While this may greatly assist with the
liquidity issue, there are some disadvantages.
This deferral does not apply to other assets
in the estate and the estate may be required
to provide a bond or other similar collateral
to secure the payment. In addition, the full
amount of the deferred tax may become due
if a payment is late or missed, if 50 percent or
more of the business assets are withdrawn or
if 50 percent or more of the business interest
is sold, exchanged or distributed otherwise.
Special Land Use Valuation (IRC Section
2032A): If the value of the land on a farm
constitutes the majority of the owner’s total
estate, the estate may elect the “special land
use valuation” and reduce the value by up
to $1,040,000 in 2012. Assuming specific
requirements are met, the special use
valuation provision allows the farmer’s
estate to value real property used for farming
based on the property’s value in its current
use (farming) rather than its “highest
and best” use.
Irrevocable Life Insurance Trust (ILIT): Once
a family determines to what extent they are
willing and able to utilize some of the above
techniques, many consider the use of an ILIT
to hold life insurance on an individual (or
a couple) to create the cash needed to pay
the estate tax. One significant benefit is the
insurance proceeds, owned by the ILIT, are
excluded from income and estate taxation.
Mechanically, assets or cash are typically
gifted or sold to the ILIT and used to purchase
the insurance. This leveraging concept allows
a family to pre-fund their estimated estate tax
liability with cents on the dollar. For example, a
55-year-old couple in good health may be able
to pre-fund their estate liability with 20-30
cents on the dollar, because of the leverage
that inherently exists within insurance. This is
calculated by considering all of the premiums
paid over their joint life expectancy and the
death benefit proceeds purchased with those
premiums.
Most families wish to preserve the wealth
they have worked hard to create for their
families and the causes in which they believe.
This necessitates proactive and thoughtful
planning, which brings to mind this quote by
Pablo Picasso, “Only put off until tomorrow
what you are willing to die left undone.” CG
23
SAFETY
Make It Count—Your
Workplace Safety Priorities
BY A M Y W O L F E , A G SA F E
Growers often remark that one of their
biggest challenges doing business today is
being aware of the countless local, state and
federal regulations impacting day-to-day
operations. There is certainly no shortage of
laws dictating how to keep workers safe and
healthy. While most growers want to protect
their employees from the hazards inherent in
this industry, it’s easy to become overwhelmed
with the legal requirements. To get a handle on
the chaos, start with the five most commonly
cited violations of the California Code of
Regulations.
The California Department of Industrial
Relations, Division of Occupational Safety and
Health (Cal/OSHA) oversees adherence to
these standards and conducts enforcement
activities throughout the year, examining
different segments of the agricultural industry.
From September 2010 to October 2011,
according to the most current reporting period
data available, a total of 1,027 citations were
issued, totaling just under $1.5 million in
penalties. (Ref: California Code of Regulations,
Reporting Period October 2010—September
2011, as of January 29, 2012, Classifications:
0100—Agricultural Production Crops, 0200—
Agriculture Production Livestock and Animal
Specialties and 0700—Agricultural Services)
Cool, potable water must be provided at a rate of one quart per hour for each worker.
CITATION #1
Heat Illness Prevention (Standard 3395)
continues to be a safety priority for Cal/OSHA
specific to agriculture, and as a result, it was
the most frequently cited violation with
penalties reaching $283,695. The standard
includes the provision of water to employees,
From September 2010 to October
2011 a total of 1,027 citations were
issued, totaling just under $1.5
million in penalties.
Shade must accommodate 25 percent of employees on shift
when temperatures exceed 85 degrees.
24
access to shade, the development of written
heat illness-specific safety plans, the training
of employees in the signs and symptoms of
heat illness, and what to do during a heatrelated emergency. Additional requirements
take effect when temperatures reach 95
degrees, including having communication
systems with employees to remind them to
drink water, monitoring new employees to
ensure they acclimate to warmer temperatures
and observing all employees for signs and
symptoms of heat illness.
The issue of heat illness prevention training,
outreach and education has been universally
tackled by the agricultural industry. Trade
associations, ancillary businesses like workers’
comp insurance and Cal/OSHA itself has
invested countless hours and dollars to help
employers comply. Fixing this problem is as
simple as picking up the phone, sending an
email or hitting the web for templates,
checklists and best management practices.
CITATION #2
Number two on the list is Field Sanitation
(Standard 3457). Agriculture racked up 197
citations worth $160,030 in fines. The core of
the standard addresses the availability of
drinking water, access to toilet and hand
washing facilities, the establishment of
maintenance standards and reasonable use
parameters for employees. A common issue is
the proximity of toilets to workers. Portable
toilet facilities must be in locations readily
accessible to employees. The rule of thumb is
no more than a five-minute walk away or onequarter mile, whichever is less.
Keep in mind that readily available potable
water, another component of this standard as
well as Heat Illness Prevention, must be even
closer to employees. That being the case, if
California passed its groundbreaking
Injury and Illness Prevention
Program (IIPP) legislation (SB 198)
in 1989, and in 1991 the law went
into effect requiring all businessesregardless of size-to have a
written IIPP.
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BY CRAIG LOVELL
831-659-4445 | www.eaglevisions.net | [email protected]
you have drinking water with the portable
toilets, keep them even closer than the
5-minute or one-quarter mile rule, or have
potable water separate from the toilets and
on-hand at any time.
CITATION #3
California passed its groundbreaking Injury and
Illness Prevention Program (IIPP) legislation
(SB 198) in 1989, and in 1991 the law went into
effect requiring all businesses—regardless of
size—to have a written IIPP. Over 20 years later
this continues to be one of agriculture’s great-
2010-2011 TOP 10 CAL/OSHA CITATIONS IN AGRICULTURE
Standard Cited
Number of Citations
Total Penalties
Standard 3395.
Heat Illness Prevention
327
$283,695
Standard 3457.
Field Sanitation
197
$160,030
Standard 3203.
Injury & Illness Prevention Program
185
$72,785
Standard 3439.
First-Aid Kit
74
$34,720
Standard 3314.
Lockout Tagout
60
$446,760
Standard 3421.
Tree Work, Maintenance & Removal
44
$95,015
Standard 3341.
Operation of Agricultural Equipment
42
$144,015
Standard 342.
Reporting Work-Connected Fatalities & Serious Injuries.
36
$160,400
Standard 5194.
Hazard Communication
35
$6,260
Standard 3440.
Agricultural Equipment
27
$90,580
est compliance challenges and is repeatedly in
the top five violations for the industry. In this
reporting period, 185 citations were issued for
a total of $72,785 in fines. The standard is intricate, detailing eight components that must be
included in a written IIPP:
3 Responsible person(s) for workplace safety
3 Employee compliance with safe and healthy
work practices
3 System for communication with employees
3 Procedures to identify and evaluate workplace hazards
3 Investigate injuries and/or illnesses
3 Procedures for correction of unsafe/
unhealthy conditions, work practices and/or
procedures
3 Safety training and instruction
3 Thorough document retention relative to
the implementation of the safety program.
Failing to provide evidence of having each of
the components in place, including employeetraining records, incident investigation
documentation and hazard inspection protocol
are often the problem for growers. It is
important to remember that an IIPP doesn’t
need to be overly complicated or lengthy. The
focus should be on developing a program that
addresses the eight required components in a
thoughtful manner, is reviewed and updated on
a regular basis reflecting the current state of
the business and creates a culture of vigilance
in documenting all safety activities.
CITATION #4
The fourth most cited regulation was First Aid
Kit (Standard 3439) with 71 citations issued for
25
Toilets must be within a 5-minute walk or one-quarter mile of where
employees are working, whichever is less.
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a total of $34,720 in penalties. The standard’s
major components are relatively
straightforward: there must be a first aid kit at a
business’s headquarters, kept in sanitary and
usable condition. When workers are in a remote
location a first aid kit along with a plan of
communication and transportation in the case
of a medical emergency must be in place. In
addition, at each location, one worker for every
20 must be trained in administering first aid.
Businesses should consult with a medical
professional to ensure the first aid kits include
items applicable to the hazards specific to
the operation.
The migratory nature of crews and employees
working independently tend to be the roadblock
with this standard. If employees are moving
between facilities regularly, make sure their
supervisor has a first aid kit in his/her vehicle at
all times. Workers tackling jobs alone, such as
irrigators, should also have first aid kits with
them and a plan in place with their supervisor
for communicating when a medical emergency
takes place. For example, many growers have
irrigators check in on the hour. Failure to hear
from the employee within a specified time frame
triggers that emergency action plan.
It is also critical that employers meet the first
aid training requirement. A number of resources
exist to annually conduct the requisite first aid
training including the American Red Cross, nonprofit organizations and private companies. A
Cal/OSHA inspection may require asking to see
first aid training certification, so it is critical that
workers receive the required education and that
it is maintained.
CITATION #5
The Control of Hazardous Energy for Cleaning,
Repairing, Servicing, Setting-Up, and Adjusting
Operations of Prime Movers, Machinery and
Equipment, Including Lockout/Tagout
(Standard 3314) was the fifth most frequently
cited violation. Its intricate name is
accompanied by multiple components, making
it a common violation: 60 citations totaling
$446,760 in penalties.
It’s easy to understand why this standard
poses an issue for agricultural employers: it
includes requirements for cleaning, servicing
and adjusting operations; repair work and
setting-up operations; proper use of hardware
and materials; protocol for repetitive process
machines; hazardous energy control
procedures; inspection procedures and
training. Because this standard addresses so
many potential risks, employers must invest
the time necessary to come into compliance.
This is the ideal opportunity to reach out to
your equipment vendors, insurance
representatives and AgSafe to provide the
breadth of information necessary to cover all
the standard’s bases.
NEXT STEPS
Protecting agriculture’s employees is an
intricate business. To stay on top of the
regulatory heap, employers need to consider
asking for help. Organizations such as AgSafe,
the Grower-Shipper Association of Central
California and the Monterey County Farm
Bureau work collaboratively to provide
members with safety training, templates and
documentation checklists. Workers’
compensation insurance brokers and carriers
with knowledgeable loss-control staff can also
assist in developing safety programs and
protocol. And never forget talking to other
business owners about how they tackle safety
and health compliance. Learning from each
other is perhaps the best lesson of all and is
grounded in practical, tangible lessons for
ensuring both farm workers and businesses
are protected. CG
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27
MARKETING
Customer Loyalty:
Building Lifelong Relationships
B Y K AT E W E B E R , N A R D O Z Z A + A S S O C I AT E S
One of the biggest challenges facing businesses this year is customer loyalty.
Customers have countless options when it
comes to where and how they spend their
money. They search for and make purchases
with a few quick clicks and share their reviews
just as easily. Add to that the booming social
media industry that has exploded consumers’
need for individual attention, and it is easy to
see that loyalty has become even more important in recent years yet also more elusive.
Of course customer loyalty starts with producing a great product or service. But having
good quality isn’t enough; most companies,
after all, believe they have a great product or
service. To attract lifelong customers, a business must develop interactive and personalized
relationships with customers.
Past marketing wisdom said above all else,
customers want to be heard and understood.
Although understanding is important, it’s now
a starting point. Today’s customers expect to
be heard and to receive immediate, personal
response and interaction. Other common loyalty misconceptions and mistakes include:
3 Not using social media. Maintaining a
Facebook or Twitter account for small businesses or B2B could seem like more time
than it’s worth; however, these networking
sites allow customers to easily interact with
an organization and, even better, talk about
it with their friends.
3 Relying solely on long-term rewards programs. Customers might not be interested in
accruing miles or points to be redeemed
several months or years later without any
immediate, practical benefits to entice them
to sign up and make purchases now.
3 Poor customer service. Whether in-person
interaction, a call center or a contact form
on a website, slow response times and uninformed personnel with poor communication
skills simply don’t cut it anymore.
28
Conflicts over deadlines or quality
can actually be opportunities for
you to give your undivided attention
to individual clients, which could
turn an unhappy customer into a
lifelong advocate of your brand.
Customers have multiple avenues for
expressing their displeasure with unhelpful
service with review sites such as yelp.com.
“No-Reply” emails send the message that an
organization does not want to hear from its
clientele.
The key to building strong relationships with
customers begins with putting the topic on the
agenda. If you do not already have a marketing
plan, create one in house or with a marketing
agency. Set goals for keeping customers coming back, make a plan for achieving those goals
and set objectives for each stage in your plan.
Make it clear internally that customer loyalty is
a priority and give explicit examples to staff of
how that translates in day-to-day operations
and communications.
As you plan, consider the customer lifecycle:
an unaware buyer encountering your product
or service for the first time, a tentative buyer
who requires more information to make a decision, an engaged buyer who would like reassurance that you are meeting expectations, and
the invested buyer needing to feel valued for
continuing to support your business.
Customers who can still benefit from your
product or service should not feel that they
have outgrown your company. How can your
business grow to meet the needs of each of
these stages?
Be present in the customer community
online and in-person. Use social networking
sites to build a following, distribute exclusive
offers and answer questions. This is also your
chance to show there’s a real-live person at the
wheel. Customers appreciate being able to put
a face to a brand. Additionally, build a local following by making a commitment to community
events, charities or social issues. One survey
reports 94 percent of customers would leave
their current brand for another one that supported a cause. If you have mostly local customers, support an issue that is relevant to the
community, or if your customer base is broader, partner with widely-recognized charities
that represent your customers’ interests.
To appeal to customers’ need for immediate
gratification, incorporate event-based rewards
and communication. Customers initiate an
event by “liking” the company page on
Facebook, visiting the store, making a purchase, writing a review, taking a survey, or recommending the business to friends. When customers initiate events, you can send them
product suggestions and offers. Additionally,
you can use these events as a way to gather
information on customers, allowing you to tailor future offers and communications for a personal touch.
Build trust by stepping up your customer
service and living up to expectations. Trust is
the cornerstone of any successful relationship,
including professional ones. Deliver on your
promises, and if you can’t, be open and communicate with your customers. Conflicts over
deadlines or quality can actually be opportunities for you to give your undivided attention to
individual clients, which could turn an unhappy
customer into a lifelong advocate of your
brand.
Overall, think personal. Cut back on generic
email blasts and one-size-fits-all marketing.
What can your business do to personalize a
customer’s experience? What can you do to
make your customers feel more valued? CG
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29
NORTH
French Bakery … Capitola Style!
Interview with Gayle Ortiz, co-founder of the famous Gayle’s Bakery
BY J E S S B R OW N
How old were you when you realized
you had an interest in cooking?
On my father’s side I come from a very foodcentric family. The adults ate and talked about
food all the time. My mom didn’t love to cook
but she was a good cook. I started going
into the kitchen when I was about 8. I always
wanted to help but since it was a chore for
her, she didn’t want to teach. But finally she
taught me to make her beef stew. I’d start it
for her while she was still playing bridge at a
friend’s house so when my dad got home it
would be ready. I did have a specialty that she
would let me make on my own. It was stuffed
grape leaves from the San Francisco Firehouse
Cookbook. I began baking early, too. Once I got
electrocuted when our hand mixer fell into a
sink of water without our knowing. Must have
singed the love of baking into my bones!
Who most influenced your love
of cooking?
My paternal aunt and uncle were both great
cooks. I remember a fantastic chicken liver
pasta around the big family table one night and
my uncle’s cioppino was legendary.
Besides family, how else did you learn
baking skills?
I took a baking class in 7th grade and baked
that same recipe of French bread for the rest
of my childhood. Also, my grandmother’s
caregiver was German and tried to teach me
how to bake sticky buns but they were horrible.
I didn’t really learn until I took classes in San
Francisco when I was 26.
How did you meet your husband Joe?
We first met when he was dating my next-door
neighbor. Then a few years later when she and
30
I were roommates she brought him home
for dinner. That was it.
Was he also interested in food?
We were pretty young then so neither of us
could afford good food. It wasn’t until years
later we really got into food. But we ate well
and Joe has always been a fantastic cook. He
does most of the cooking at home.
Whose idea was it to open a bakery?
It was mine. I had been baking from our home
for a few years; mostly croissants that I sold
to local restaurants and shops. The business
got so big that there was flour and butter
everywhere. My dad, who owned a restaurant
supply company in San Jose, told us we had
to sell bread, too, so he and I talked Joe into
learning how to bake bread.
Why did you settle in Capitola?
We were lucky enough to find our current
location. We knew immediately it was the right
one, easy off the freeway, parking, corner lot
… location, location, etc. Plus we vacationed
in Capitola when I was a child so it was my
childhood fantasy to someday live here.
Did either of you have any previous
bakery or restaurant experience?
I had worked in Chez Panisse the summer of
’76 when their pastry chef, Lindsey Shere,
went to Europe. There I met a woman who was
opening a bakery in Oakland. I helped her open
that bakery. Joe had briefly owned a small
café in Half Moon Bay. His specialty was clam
chowder. He makes a killer clam chowder.
You were the first one to bring French
baking methods to Santa Cruz County.
How did this come about?
I took two 9-week French pastry classes from
Flo Braker in San Francisco and then studied
with the woman who owned Fat Albert’s in
Berkeley. I learned croissants from her. It just
blossomed from there.
What was the first item you sold from
your bakery?
We opened Valentine’s Day, 1978. We had
twelve items on the menu. The croissants were
a big hit as was the Old World Bread (Joe’s
creation) and our Rich Chocolate Cake. We’re
selling all three to this day.
When did you decide to expand your
bakery to include a rotisserie?
We were traveling to France every year to
study and in about 1983 we decided to venture
into Italy. We ate in dozens of rosticcerias and
fell in love with them. We knew that we needed
one in our town. If we were too tired to dine
out every night we knew there were others.
What is the most popular food item
at Gayle’s Bakery?
We make more than 200 products a day so
naming just one is hard. The Francese bread
is really popular, we learned that in Milan. Our
Princess Cake is mentioned more to me than
any other item. And we sell more sandwiches
than anything else.
You have the most beautifully decorated
baked goods and cookies, plus they are
delicious. What type of training does
your staff receive in decorating baked
goods?
We like to train our staff in-house. That way
they have our aesthetic. We have some
incredible bakers who have been with us for
over 25 years.
Has there been a food item that you’ve
thought would be the next big thing but
was pulled from the menu for lack of
interest?
We love to go to focaccerias in Italy. I think
focaccia should sell really well here in
California but it just doesn’t. I think people
have so many other things to choose from at
Gayle’s they just don’t see it.
How important is it to you to use
local products and business?
We are constantly trying to source local goods.
Sometimes it’s hard because of the price.
Since we aren’t a sit-down restaurant people
are reluctant to see the value in higher priced
foods. But I think our customers are more
educated today about local food so it’s getting
easier all the time.
How have customers’ tastes changed
since you first started?
We have a wide range of customers. We have
extreme foodies all the way to people who
are just awakening to better quality foods. I
wouldn’t say our customer base has changed,
just expanded.
What food items were popular when you
first started that aren’t so popular now?
Cookies are harder to sell now for some
reason. I don’t understand that because I
love a good cookie! We’ve never been able
to sell lemon desserts as much as I’d like. We
used to have a lemon bar that was delicious
and buttery but never sold. Then we went to
England and saw a dessert called Lemon Lust.
We came back, renamed it and sales tripled.
That was a lesson!
Bodacious Broccoli Salad
FROM: GAYLE ORTIZ, OF GAYLE’S BAKERY
Now don’t say, “Oh, I’m not going to make this,
it’s broccoli! Who wants a broccoli salad?” Well,
we’re here to tell you that this is one of our
customers’ favorite salads. It’s tangy and rich
with cheese and crunchy with a bit of sweetness
from the raisins. Give it a try! It’s easy and super
delicious.
4 cups chopped and grated broccoli
(see note below)
3/4 cup golden raisins
1/2 cup toasted sunflower seeds
1 1/4 cup grated sharp cheddar
2 Tbs. grated red onion
Dressing:
cup (scant) mayonnaise
2 tbs. cider vinegar
2 tbs. sugar
1/4 tsp. salt
1/4 tsp. pepper
1/2
Whisk together all ingredients for the dressing
and set aside.
Mix the ingredients for the salad. Pour dressing
over the salad and toss well. This salad can be
eaten immediately or refrigerate for up to
8 hours.
Note: Buy about 1 pound of broccoli to obtain 4
cups of prepared broccoli. Cut off the woody
last 1 inch of each stalk. Cut florets off of the
remaining stalk. Chop the florets into half-inch
pieces. Grate the stems using the grater
attachment of a food processor.
31
You obviously have a deep interest in
politics; you even became the Mayor
of the City of Capitola. What prompted
that interest?
One of the main reasons I love living in Capitola
is that it’s small and achievable in regards
to getting to know everyone. We really are a
village community and politics here reflect
that. There is a respectfulness and dignity to
our community. Plus, on a local level you can
actually get something accomplished.
Are you still involved in the politics?
Yes, I’m just ending a year of being the chair of
the Planning Commission. I love serving on the
commission because it is the body that helps
preserve the look of Capitola in many ways.
You have a variety of interests: baker,
politician and even a writer. What
inspired you to get into writing?
The baking book, The Village Baker’s Wife, was
something we wanted to have as a companion
to Joe’s bread book, The Village Baker. I don’t
particularly love the cookbook writing process.
But I wrote two Capitola mysteries with four
friends and absolutely loved that process. I
wouldn’t consider myself a writer though.
The Law Offices of
Thomas S. Worthington
Certified Specialist Criminal Law
What are the titles of your books?
The Village Baker’s Wife, The Jewel Box and
A Killer Festival.
How can someone obtain these books?
They are all for sale at the bakery and most
are at the Capitola Book Café and Bookshop
Santa Cruz.
You’re multi-faceted! What other
talents do you have?
I’ve been a mosaic artist for many years. Our
partner, Louisa Beers, and I just did a beautiful
mosaic mural that hangs over our espresso
bar. And I’m working as a fiber artist. I remake
vintage cashmere sweaters into little jackets,
make necklace collars from vintage scarves
and kimono fabrics and sew drapy fleece vests
adorned with vintage fabrics. They sell at shops
in Capitola, Carmel and Santa Fe.
Northern California
1987-2011
Salinas
758-1688
32
Toll Free
800-626-0808
2006, 2008-2010
Hollister
636-6633
Where do you see Gayle’s Bakery
in 20 years?
We have been in the same mode for the last
20 years; fine tune the quality and variety
of our offerings, perfect our service which
we consider as important, and keep our little
building up-to-date with the latest equipment
that makes operating the business more
efficient and beautiful. We are just remodeling
the rosticceria so look for a new, bright red,
rotisserie in the near future!
Bon Appétit! CG
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33
The Salinas Valley Chamber of Commerce and
Frontier Self Storage cordially invite you to
AN AUCTION TO BENEFIT
2nd Chance Family & Youth Services
Come join us for an evening of fun, food,
drinks and music! Bid on exciting items in
both our silent and simulated “Storage
Wars” auction!
Sponsored by The Salinas Valley Chamber of Commerce,
Frontier Self Storage, PCH Productions, House of Auction
(Bond #24935240), and Media Sponsor KOTR My 11 TV
Cost:
$10.00 For SVCC Members
$20.00 For non-members
Tickets can be purchased in advance thru the Salinas Valley Chamber of
Commerce website at www.salinaschamber.com or at the door
34
Date: Thursday, May 17th, 2012
Time: 5:00 - 7:00 pm
Location: Frontier Self Storage
425 N. Main St. Salinas, CA 93901
Phone: 831-783-1000
Website: www.biddersball.com
35
36
SHOWCASE
Garlinger
Ranch
BY M E LO DY YO U N G, M Y D E S I G N S
P H O T O G R A P H Y B Y P AT R I C K T R E G E N Z A
37
It was the mid-1870s when brothers Hans
Gregerson Hansen and Chris Hansen made
their way to California from their homeland
in Denmark. After a brief stay in the bay area,
they settled in our beautiful Salinas Valley.
Pat Garlinger tells the story: “They were poor
as church mice.” But they carried with them a
mighty work ethic and a dream. The brothers
lived and worked together until each of them
married and started a family. Hans had either
the good sense or just sheer intuition to
choose the beautiful land that is now known
as Garlinger Ranch. He, along with his wife
Mary, built a lovely two-story home that is still
standing on the property now. A bunkhouse,
barn and cookhouse also still stand. This is a
testament to the care and attention that their
descendants have given the property. The
home was remodeled in 1947 as it looks today.
This was the first of many stories Pat
Garlinger and her daughter Jane Brem recalled
as we spent an idyllic morning exploring the
various properties that make up Garlinger
Ranch. Pat encouraged our imagination to slip
back into the late 19th century when there
were no tractors and no machinery, only
animal and man power. The original ranch was
600 acres. It wasn’t long before Hans was
able to purchase another 600 acres to double
the size of his original investment. One can
only imagine the courage and faith it took to
make such a bold move. Barley was the crop
The table is set.
38
A cozy place to relax.
of choice back then with the Salinas Valley
glistening a beautiful gold in the fall. White
beans and sugar beets followed soon after.
The ranch was dry-farmed for years until deep
water wells were dug. The operation then
moved to row crops.
Hans and Mary had three children. Their
daughter Alice was born in 1886, followed by
their first son Ralph in 1890 and Henry in 1892.
Alice married Marshall Garlinger in Watsonville
in 1917. They had two children, Delorma and
Marian.
Del grew up learning the farming business
and came home after college to run the ranch.
He met and fell in love with his very own
California Rodeo Hostess, Miss Patricia Adcock.
They married on October 11, 1942. In 1947,
after the war, they built their own home on the
ranch. This was where they lived for years and
raised their family.
Although Del was schooled in farming,
his dream was to have a cattle ranch. That
dream was realized when the adjacent
property known as the Kaler Ranch went up
for sale. He finally had his cattle ranch. When
the Sorrenson property became available
Pat convinced him to go out on a limb and
purchase that also. He now had enough land
wandering up into the foothills to have a good
sized profitable herd. This became his passion
as well as that of the rest of the family. Del
and Pat had five children, all girls, Kathy, Mary,
Joan, Judy and Jane. The cattle ranch is now
run by the girls, their husbands and their
An original ranch house.
39
A beautiful vista high above the ranch.
40
41
The Hansen homestead (above) and outbuilding (below).
42
children (Del and Pat’s grandchildren). “We
are a cow and calf operation,” says Jane. They
produce approximately 130 calves a year.
The Garlingers started renting out the
farming land in 1964 to devote all their time to
the cattle ranch. Even in retirement Del could
be seen at the ranch on a daily basis.
Riding through the countryside in our
jeep, I felt the love and pride the family has
for this piece of land. Pat still has her eye on
every detail, from the workers in the fields
to the condition of the fencing. She knows
every rock, tree and pond on the 2,700 acres.
She talks to Jane about fertilizers, the pesky
squirrels and badgers, and the lack of rain. As
Jane says, “She’s the boss.” Extended family
is encouraged to use the ranch all year, but
reservations still need to be made with Pat.
She is the keeper of the dream.
Our destination is a clearing in the pasture
where all sorts of work and play commence.
This is where the ranch hands, male and
female, gather after working the cattle
four times a year. Here you will find a barn
equipped with all the necessities to celebrate
a day’s hard work. Everyone in the family does
their part to make this place special. A river
rock and flagstone fireplace built by Jane
dominates the space and provides the barn
with a warm and relaxing atmosphere. Outside
there are horseshoe pits, a bocce court, picnic
tables and a barbecue pit ready for a group
of weary cow-folk. The family also gathers in
this magical place several times a year. “The
immediate family now numbers forty, soon to
be forty one” says Pat. “Can you believe it?”
she adds. “We try to get here every Easter.”
The family also entertains relatives from
Sweden. “They all come to the states to see
places like Las Vegas and Yosemite and such,
but fall in love with the ranch and don’t want
to leave.”
As we take our own moment to soak up
the sun on this unusually warm winter day,
peace and serenity surround us. We could be
miles and miles from civilization, but we’re
only 10 minutes from the highway. No wonder
the family comes out as much as they can. It
is a heaven on earth. Although the original
family members bought this paradise to
make a living, it has become so much more. It
forever established a healthy and happy way
of life that not too many people still get to
enjoy. Next time you are driving down highway
101 don’t forget to look at the beauty that
surrounds us. Those of us fortunate enough
to live in this beautiful Salinas Valley are very
fortunate indeed. CG
A peaceful moment.
43
OCTOBER 19, 20, 21 2012
John O’Conor, Heidi Hau, piano
Field, Concerto For Piano No. 1
Haydn, Concerto No. 11 in D Minor
Mozart, Concerto For Two Pianos in E -flat Major
NOVEMBER 16, 17, 18, 2012
Tanya Gabrielian, piano
MONTEREY
SYMPHONY
12-13
Verdi, Overture to La forza del destino
Khachaturian, Piano Concerto in D-flat Major
Sibelius, Symphony No. 1 in E Minor
Season
JANUARY 25, 26, 27, 2013
Anna Petrova, piano
Toldrá, Vistes de Mar (“Sea Views”)
Turina, La Oración del torero
Mozart, Concerto for Piano No. 13 in C Major
Dvorak, Serenade in E Major
FEBRUARY 23, 24, 2013
Josu de Solaun, piano
Schumann, Toccata in C Major
Schumann, Arabeske in C Major
Schumann, Études Symphoniques
Mussorgsky, Pictures at an Exhibition (piano version)
MARCH 22, 23, 24, 2013
Check Out
OUR Season
Jean Louis Steuerman, piano
Mozart, Tres Viejos Aires de Danza
Beethoven, Piano Concerto No. 2 in B-flat Major
Schubert, Symphony No. 3 in D Major
APRIL 19, 20, 21, 2013
Philippe Bianconi, piano
Satie, Gymnopédies Nos. 1 & 2
Ravel, Piano Concerto in G Major
Fauré, Ballade
Hindemith, Symphony “Mathis der Maler”
MAY 17, 18, 19, 2013
Dubravka Tomsic, piano
Bernstein, Overture to Candide
Rachmaninoff, Piano Concerto No. 2 in C Minor
Mussorgsky (Arr. Ravel), Pictures at an Exhibition
Max Bragado-Darman,
conductor
Great Music...LIVE!
2012-2013 PERFORMANCES
Friday at 7:30 pm
Steinbeck Institute of Art and Culture, Salinas
Saturday at 8:00 pm and Sunday at 3:00 pm
Sunset Center, Carmel
44
Tickets: 831-645-1121
Current Season Available Online At:
www.montereysymphony.org
45
VINE
Corralitos Wine Trail
BY L AU R I E DA N I E L
Touring the wineries of the Santa Cruz
Mountains is a scenic way to spend the
day. It can also be a little treacherous: lots
of narrow, winding roads and large distances
between many of the wineries. You could opt
for convenience and visit Santa Cruz’s Surf
City Vintners, an assemblage of tasting rooms
in warehouses on the west side, but that’s not
nearly as picturesque. Or you could visit a
compact area that combines the best of both
experiences.
The Corralitos Wine Trail, a short drive off
Highway 1 near Watsonville, is a group of four
small, family-owned wineries. Three of the
wineries are a stone’s throw apart; the fourth
requires a bit more driving.
Much of the wine trail is centered on the
Pleasant Valley area of Corralitos, which used
to be populated with numerous apple orchards.
Although some remain, the apples have largely
given way to vineyards, olives and statement
homes.
Craig Handley, who owns Pleasant Valley
Vineyards with his wife, Cathy, describes
the area as “its own little microclimate.” It’s
shaped like a bowl and heats up during the day;
Handley likens it to a convection oven. Still,
the nights are cool and influenced by chilly
Monterey Bay. The area is especially well-suited
to Pinot Noir and Chardonnay, though offerings
at the various wineries are much more diverse.
At Pleasant Valley Vineyards, for example,
the two-acre estate vineyard is planted to Pinot
Noir and Chardonnay, but Handley, who is
mostly self-taught as a winemaker, also makes
Syrah, Cabernet Sauvignon and Merlot from
the Santa Cruz Mountains as well as a few
other wines from elsewhere in the state. The
Handleys have lived on Pleasant Valley Road
for about 25 years and they planted their first
vines in 1995.
In good weather, tastings take place on a
pleasant deck behind the Handleys’ house,
overlooking a waterfall in the garden and a
46
Windy Oaks Pinot Noir blocks in Corralitos vineyard.
pretty redwood grove. The juicy, savory Pinot
Noir—Handley made five of them in the 2011
vintage—are particularly good (Handley poured
for me a 2004 Pinot Noir, his first release,
which has aged magnificently). www.pvvines.
com.
It was Alfaro who had the idea of
assembling the area’s vintners
into a marketing group. “You get
more momentum if you’re four,
five or six people,” he says.
Just up Pleasant Valley Road is Nicholson
Vineyards, owned by Brian and Marguerite
Nicholson. Brian, a real estate appraiser, is a
ninth-generation Californian whose ancestors
built the Presidio of Monterey. The 4.5-acre
estate vineyard and four acres of olives used
to be an apple orchard. Like Pleasant Valley,
Nicholson produces wines from its own
vineyards, as well as bottlings from vineyards
in places like Amador County and the Hecker
Pass area of the Santa Clara Valley. I didn’t
taste the Nicholson Pinot Noir during a recent
visit, but the Estate Chardonnay is racy yet rich.
“Stylistically, we sit in the middle of the Santa
Cruz Mountains style and the European style,”
Marguerite Nicholson says.
Wine tasting is conducted on a patio outside
the modest winery, weather permitting, with a
view of the vineyards. The olive oil made from
the estate olives is particularly popular (sadly, it’s
made in such tiny quantities that it’s not available
for tasting). www.nicholsonvineyards.com.
Alfaro Family Vineyards, on nearby Hames
Road, is large by Corralitos Wine Trail standards:
6,000 to 8,000 cases of wine produced each
year. After selling their bakery business in
1997, Richard and Mary Kay Alfaro bought land
in Corralitos and started planting Pinot Noir
and Chardonnay. They now have 38 acres of
vineyards around the winery and also farm 18
acres elsewhere in the Santa Cruz Mountains.
Richard Alfaro, who makes the wines, says
he was initially attracted to Pleasant Valley
by Storrs Winery’s Chardonnay from Christie
Vineyard, the first vineyard planted in the area.
He liked farming and had planned to be a small
grower. The whole business “was kind of a
hobby that got out of control,” he says.
The vineyards at the winery are mostly on a
slope, with a variety of exposures. That means,
in addition to Pinot Noir and Chardonnay, Alfaro
can grow grapes such as Merlot and Syrah.
He even has a small block devoted to Gruner
Veltliner. The Chardonnay is fleshy, with firm
acidity; Pinot Noir is structured yet supple. The
very good Merlot offers bright cherry fruit with
some savory overtones.
The pretty tasting room, with great views of
the vineyard, was designed by Mary Kay. Alfaro
Family is also kid-friendly, with coloring books
and a basketball court. www.alfarowine.com
It was Alfaro who had the idea of assembling
the area’s vintners into a marketing group. “You
get more momentum if you’re four, five or six
people,” he says.
Craig Handley of Pleasant Valley Vineyards
adds, “Our wines were a bit different (from
other Santa Cruz Mountains wines.) We
thought it would be wise to start promoting
the area.”
To get to the fourth winery on the Corralitos
trail, Windy Oaks Estate, you’ll have to drive
about six miles through the familiar Santa Cruz
Mountains landscape of redwood forest and
narrow roads. But it’s worth the extra drive:
Proprietors Jim and Judy Schultze produce a
stunning collection of Pinot Noirs, as well as a
tiny amount of Chardonnay.
Management consultant Jim Schultze picked
up some winemaking skills when he lived in
Australia, and when he later moved to England,
he fell in love with Burgundy. When the family
moved to California in the mid-1990s, they
bought an abandoned apple orchard with the
idea of planting grapes. The property was so
overgrown, Jim Schultze recalls, that “you
couldn’t see the contours of the land.” But the
land was cleared to reveal the rolling terrain,
which has a variety of exposures. “It turned
out to be an even better site than I thought,”
Schultze says.
Windy Oaks is at a higher elevation than
the other Corralitos wineries, with a different
microclimate–harvest is later, for example. The
focus is on Pinot Noir: Schultze makes nine of
them, ranging from an estate cuvée to smaller
bottlings from specific vineyard blocks or wines
that use a specific winemaking technique
(wild yeast, whole-cluster fermentation, etc.).
All the wines are elegant and distinctive. The
Schultzes are in the process of starting a new
brand focusing on white wines made from
purchased grapes that son Spencer—assistant
winemaker for Windy Oaks—will spearhead.
The Windy Oaks tasting room is in the
small winery, which was built in 2001. If
the weather is good, you can picnic on the
ridge overlooking Monterey Bay.
www.windyoaksestate.com
Before the end of the year, there will be
another tasting room on the trail. Storrs
Winery is building a winery on its Pleasant
Valley property and plans to open a tasting
room in late summer, according to owner/
winemaker Steve Storrs. But there are more
than enough wines to warrant a visit to
Corralitos now.
Wineries along the Corralitos Wine Trail
are, in general, open from noon to 5 p.m.
Saturdays, although you should always check.
Tasting at each winery is usually $10-$15.
The wineries also host occasional special
events. For information and a map, go to
www.corralitoswinetrail.com. CG
Craig and Cathy Handley Pleasant Valley Vineyards.
Nicholson Proprietors Brian and Marguerite Nicholson.
Jim and Judy Schultze at the Zen bell in their vineyard.
Richard Alfaro tending vines in Lindsay Paige vineyard planted in 1998. Photo courtesy of Patty Hinz Imagery.
47
H I STO RY
The Early Day of Whaling
on the Central Coast
B Y B U R T O N A N D E R S O N I N C O O P E R AT I O N W I T H T H E M O N T E R E Y C O U N T Y H I S T O R I C A L S O C I E T Y
The story begins with the discovery of Alta
cooper, two boat helmsmen, and eleven men,
Most whales harvested were humpbacks,
California by Juan Rodriguez Cabrillo, a
with four left on shore as lookouts. The
gray, right and blue. At first, the whales taken
Spaniard, who was born in Portugal. He was
whalers went to sea on a sailing ship, and when were humpbacks. The humpbacks were
on a voyage of discovery for the Viceroy of
a whale was sighted they dispatched in two
valuable not only for their oil but for the bone
New Spain seeking the fabled Northwest
whaleboats, six men to a boat. The boats
used as stays in women’s corsets. The
Passage. He sailed up the Pacific Coast of
always operated in pairs for safety reasons.
humpbacks were noted for their beautiful
Mexico from Navidad, and after a voyage of
The Carmel Co. (aka Old Company) moved to
songs that can last 30 minutes or more. The
three months reached what is now San Diego
Whalers Cove in 1862. Whalers Cove was at
origin of the name “right whale” came from
Harbor on September 28, 1542. He is credited
Point Lobos where the crews also built
the Portuguese whalers, since this whale was a
with the discovery of Alta California, but not
whaler’s shacks. Whaler’s Knoll, a hill nearby,
slow swimmer and thus the right whale to
Monterey Bay.
pursue. Blue whales were
It was Sebastian Vizcaino’s
too swift for a sailing ship
entry into the bay in 1602 that
to get near enough for a
began the further expeditions
hand-thrown harpoon. As
and colonization of the
of 1874, grays were the
Monterey area. He observed
predominant species
abundant whales in the bay,
taken after the grays’
naming it “Bahia de Balenas.”
calving ground was
Further verification and
discovered in Scammon’s
presence of whales in
Lagoon. Sperm whales
Monterey Bay was noted by
were rather rare and few
the French explorer La
were taken. Whalers sailed
Perouse in 1786 on his voyage
close to shore about 10-15
of discovery. Although La
miles out, since Monterey
Perouse didn’t identify the
Bay was a favorite resting
species he viewed, it was
and feeding ground for
clear that Monterey Bay was a
whales on their annual
prime feeding ground for
migration between the
whales. The whale species
Arctic and Baja California.
Whaling Station at Moss Landing 1919 Courtesy of Monterey County Historical Society.
were later identified by
There were three types
subsequent immigrants as
of whale hunting
was so named because lookouts were
blue, gray, humpback and right whales.
techniques that developed over the years. The
stationed on the hill. When a whale was sighted first, an ancient one, involved sailing ships and
The first whalers were Portuguese
near shore they signaled the boats at sea with
immigrants mostly from the Azores. Initially
six-man whaleboats, launched when a whale
flags.
the only industry in Monterey was whaling,
was spotted nearby. The whaleboats had to
By 1861 there were four whaling companies
begun by Captain J. P. Davenport in 1854 when
get close enough for the crew to use a handhe established the Monterey Whaling Company. in the Monterey area. The First Theater owned
thrown harpoon and a long-poled lance
by Jack Swan, operated as a hotel for Capt.
In 1855, seventeen Portuguese whale men,
attached to heavy ropes. When hit, the whale
Davenport to house whale crews. The brick
often called the “Old Company,” established a
headed for the open sea or dived. Sometimes,
Whaling Station (still standing) was the
settlement at Monterey. A whaling company
when wounded, it took the whale boat on a
usually consisted of one captain, one mate, one residence and headquarters for Davenport.
wild ride until the prey was exhausted or came
48
to the surface where it could be finished off.
Many early day sailors were killed or drowned
when their whaleboat was swamped or hit by
the whale’s tail. When harpooned with a long
rope attached to the whaleboat, the wounded
whale could sound (dive), drowning the crew.
After the kill the carcass was towed alongside
the sailing ship. The flensers (strippers) went
to work and tossed the strips of blubber on
board for rendering. The whale carcass was
cast adrift after flensing. When they had a full
cargo of oil the crew returned to their home
port.
The second technique was known as “shore
whaling.” The improvement came when
whalers sought a sheltered cove and
established living and rendering facilities on
the beach. The whale carcass was towed to
shore instead of being flensed at sea. The
rendering works on the beach were called “Try
-works.” This name is the short version for
“Trying-Works,” the process that removed the
blubber and boiled it to extract the oil. Another
innovation to the ancient method of taking
whales was the invention of the harpoon gun.
With the gun mounted on the whale boat, the
crew did not have to get as close to the whale
and risk an accident. The effectiveness of the
harpoon gun and harpoon bombs was the
beginning of the long decline of whales
worldwide. By the mid-1880s, whales were
becoming so scarce that it was no longer
profitable to continue shore whaling and the
last station disappeared in 1904.
There were ten shore whaling companies on
the Central Coast, established at various times
between 1854 and 1888. They were located at
Santa Cruz, Half Moon Bay 1860-1863, Pigeon
Point 1864-1895, Davenport 1860s, Monterey
1854-1880, Point Lobos 1862-1884, Morro
Whaling Co. (Point Sur) 1877-1878 and San
Simeon 1865-1880.
An early station was the one on the shore
below the Presidio of Monterey. The site was
near old Chinatown and the locale of the later
Associated Oil tanks. The blubber was rendered
in “Try-Pots” which were iron kettles with one
flat side. The flat side allowed more pots to be
stored in a confined place. Monterey old timers
remembered the clouds of smoke and the
stench from the Try-Works.
The next advance in whaling occurred when
rendering factories were built near a beach.
Large whaling steamships ranged far to sea,
hunted with harpoons and harpoon bombs, and
towed the carcasses to a shore factory.
California Sea Products Company owned the
Moss Landing factory which operated from
1919 to 1926. The ramp at Moss Landing could
hold three whales at the same time. The whale
was winched up the ramp and flensers sliced
off the blubber in six foot sheets that were
hydraulically lifted into eighteen wooden vats,
heated by steam pipes. At the factory the
entire whale was converted into useful
products such as soap, paint, fertilizer,
perfume (Ambergris), glue, leather dressing
and chicken feed. Factory whaling on the
beach eventually shut down for lack of whales.
Initially the only industry in
Monterey was whaling, begun by
Captain J. P. Davenport in 1854
when he established the Monterey
Whaling Company.
Some of the recorded names of whalers in
history are Capt. Charles Melville Scammon,
Capt. J.P. Davenport, Capt. Manuel Silva, Capt.
Manuel Mariano, Capt. Joseph Clark founder of
San Simeon Co., Francisco and Antonio Silveira,
Jacinto De Amaral, Juan Vierra, Cristiano and
Mario Machado, Francisco Ambrosio and
Antonio Victorine.
Capt. Scammon, for whom Scammon’s
Lagoon is named, noted that early whalers
discovered the lagoon and harvested the gray
whales that were calving in the Lagoon. The
result was a drastic decline in gray whale
numbers since mothers and calves were both
taken.
Capt. Clark was a cousin of Christiano
Machado and founded the San Simeon Whaling
Company in 1865. Christiano Machado settled
at Point Lobos in 1866 when he joined the
Portuguese Whaling Company (Old Company).
In 1873-1874 he was listed as Captain of the
Carmel Whaling Company. After retiring from
whaling in 1877, he rented 37 acres of Carmel
Mission lands adjacent to the ruins, including
an adobe house and a pear orchard. He farmed
the property for 37 years and, because of his
proximity to the Mission, became concerned
about the condition of the site and became the
caretaker. He set about clearing away the dirt
on the ruin’s floor in hope of finding the grave
of Father Serra. He was successful, with the
help of hired Indians, and found Serra’s
remains and those of several Mission fathers.
This discovery made national news and he was
instrumental in raising funds to restore the
Mission. He is credited with saving the Mission
from complete destruction and founding the
first attempt at restoration. His great
granddaughter, Beverly Martin Sillimann, was
my neighbor and grew up across the road from
our ranch in Salinas.
Francisco Ambrosio was also a Portuguese
whaler until his retirement to a ranch at the
foot of Mt. Toro. He is the grandfather of Roy L.
Diaz, a Company C Bataan Death March
survivor who recently celebrated his 95th
birthday and is still living on the ranch.
Francisco was a harpoon man in a whale boat
that attempted to get close enough for a shot.
Antonio Victorine, another whaler at
Whalers Cove, built a home overlooking
Monastery Beach in the 1870s that is still
standing.
By 1875 the whaling industry was in decline
due to the scarcity of whales. Another reason
whaling declined was that after the production
of petroleum oil starting in about 1860, the
demand for whale oil to light lamps
disappeared. This caused the price of whale oil
to decline to an unprofitable level. Shore and
beachfront factories all shut down on the West
Coast by the early 1920s.
Whaling continued after the 1920s by virtue
of large factory steamships where they could
stay at sea indefinitely and do the flensing and
rendering oil aboard the ship. These ships,
mostly of foreign ownership, harvested 29,649
whales in 1931, the peak year. The International
Whaling Commission in 1966 declared whales a
protected species and most nations ceased
whaling operations. In 1972 the U.S. Marine
Mammal Protection Act was passed and as a
result the gray whale population has increased
to about 23,000. The population of most
species has shown considerable increase. A
few countries refuse to go along with the
moratorium and continue to hunt, but today
the total world whale harvest is less than
10, 000. Pressure is mounting, especially by
environmental groups, to halt all whaling, but
that goal has not been accomplished. CG
49
NUTRITION
Foods for Fuel
B Y S T E P H A N I E B O U Q U E T, S B N U T R I T I O N C O N S U LT I N G
Do you feel like you run out of energy before
the day is over? Is it challenging to fit in daily
exercise because your body feels sluggish? The
culprit to low energy levels may be in part how
you are fueling your body.
Food is not only one of life’s pleasures; it’s
also the body’s primary form of energy. To
boost day-to-day vigor, begin to think of your
body like the car you drive. It’s important to
provide your body with the right fuel at the
right times during the day for peak
performance.
Try these strategies to increase your
energy during the day:
Consume evenly sized meals every
four hours throughout the day.
The energy from foods we consume raises our
blood sugar level in a four-hour bell curve.
Waiting longer than that to refuel causes your
blood sugar to drop too low and extreme
hunger can lead to less than optimal food
choices. It’s important to have consistency in
the diet and to plan for a snack if meal times
are delayed. Combining at least three different
kinds of foods at each meal and at least two
kinds for snacks ensures you will get a good
mix of vitamins, minerals and nutrients to fuel
your body and stabilize your blood sugar level.
The United States Department of Agriculture
(USDA) recently developed an easy-to-use
visual of this concept called MyPlate which
can be viewed and used interactively at
www.choosemyplate.gov.
Include a carbohydrate food
at each meal and snack.
Carbohydrates are the body’s primary fuel for
muscles. They are also the only source of
energy our brain uses. In recent years,
carbohydrates have been viewed as bad or
fattening foods. There are no bad foods but
50
rather bad habits that have developed with
foods. Choosing fiber-rich carbohydrates from
fruits, vegetables and whole grains most often
will give the body the “gas” needed to perform
efficiently and provide overall health. Watch
out for energy drinks and sweetened coffee
drinks that give a large dose of carbohydrate
(i.e. sugar) and quick burst of energy, but then
subsequently drop the blood sugar too low
causing greater fatigue and lethargy.
Include a protein source
at each meal and snack.
Protein keeps us full and helps maintain level
blood sugar until the next time we fuel our
bodies. Including a protein food at most meals
is common in the American diet, but the lack of
protein found in a typical snack is a major
dietary downfall. For example, adding a small
handful of nuts to an apple for a mid-morning
snack will hold blood sugar level until a meal is
consumed a few hours later. Lean proteins
such as reduced fat dairy products, nuts,
seeds, chicken, fish and beans are
recommended protein sources.
Add heart-healthy fats for energy and flavor.
The addition of fat in our diet makes foods
more pleasurable and aids in meal satiety.
Choosing unsaturated fats (found in avocado,
seeds, olive oil, oily fish, nuts and nut butters,
for example) in place of animal-based
saturated fats or manufactured trans fats
(margarines, fast foods) can also lead to
improved overall heart health. Recent dietary
studies have linked the use of unsaturated fats
to the reduction of other inflammatory
diseases of the body.
Drink plenty of water and
fluids throughout the day.
Walking around in a state of dehydration can
cause fatigue. A good rule of thumb for
hydration needs is to drink in ounces half of
your body weight throughout the day. Foods
such as low fat dairy products, vegetables and
fruits contain a large water content which also
contributes to recommended daily fluid needs.
Watch your intake of caffeinated beverages
and sodas (regular and diet) as they may
further contribute to dehydration.
Slow down and enjoy foods consumed.
Busy schedules may make eating on the run
normal without much attention to how much
or how quickly our body is fed. An internal
feeding mechanism does exist between our
brain and stomach that signals when we have
eaten enough. Unfortunately, it takes
approximately 20 to 30 minutes to process this
connection, so if you consume meals or snacks
in a shorter time frame, chances are the
amount eaten is more than your body needs at
one time. A larger than needed food intake
diverts energy to digesting these foods which
leads to difficulty staying awake after a large
business luncheon, for instance.
Vitamin and mineral
supplements may be helpful.
Vitamins and minerals do not give you energy,
but they unlock the energy stored in food so
your body can use it as fuel. If your diet is
not as balanced as you’d like, consider taking
a multivitamin supplement containing
100 percent of the recommended dietary
allowances (RDAs) to fill in the deficient spots.
Other supplements to consider include: Iron,
Calcium, Vitamin D and Omega 3 Fatty Acids.
A registered dietitian can provide further
insight into your dietary intake and make suggestions for improvement. CG
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Bandelier produces a medium to large size
head, ideal for carton pack or processing.
Best suited for Salinas Valley February
planting, with harvest in late April into
May in southern areas and complements
Telluride in the northern areas. Bandelier has
improved Downy Mildew resistance CA I-VII
and Corky Root resistance.
Contact your
Local Sales
Representative:
Enza Zaden, Inc.
7 Harris Place
Salinas, CA 93901
T 831-754-2300 office
E [email protected]
W www.enzazaden.com
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Sharing our Passion
for Green Innovation.
51
GARDEN
Tips for Successful Organic Gardening
B Y S T E V E M C S H A N E , M C S H A N E ’ S N U R S E R Y & L A N D S C A P E S U P P LY
There has been a great resurgence of folks
growing their own food here along the
Central Coast. With this excitement has come
a popular trend to “go organic” in the
garden. If you’re thinking of partially or
completely switching to organic methods in
your outdoor landscape, here’s a short
introduction to getting started.
The definition of “going organic” varies
depending on who you speak with. Some are
under the impression that organic production
is only for hippies. Others think it is just trendy.
I am happy to say we have more choices than
ever for what we do in the garden. Organic
production is based on fertilizer that comes
from naturally derived vegetable- or animalbased sources. This also applies to pest and
disease control.
Organic production amounts to much more
than just what we feed our plants or how we
control bugs. As a soil scientist, I have seen the
impact of organic gardening on the health of
our soil and therefore the health of our plants.
Soil is much more alive than you can
imagine. In fact, just one teaspoon of soil has
more than a billion micro-organisms. Even
more important for us along the Central Coast
is that soil is most alive when it is above 50
degrees Fahrenheit. That amounts to more
than 300 days out of the year for us.
When put plainly, you can think of your soil
as a highly productive factory for nutrients and
biological compounds that help plants
thrive. When you feed your soil, you in turn
feed your plants. Seasonally, I recommend
huge doses of compost, organic fertilizer and
natural amendments. Within a few months,
nutrients become plant available. While the
process may take longer than spraying
commercial fertilizers on your plants, the
results are just short of amazing. Organic
52
production often yields stronger molecular
biology allowing for better pest and disease
resistance. Best of all, you will often enjoy
better tasting fruits and vegetables.
Steve’s Tips for Healthy Soil:
3 Add compost such as the Master Nursery
Gold Rush Brand under the drip line of your
fruit and landscape trees twice a year.
3 Utilize a high quality organic fertilizer such
as Dr. Earth (fish based).
3 Add mycorrhizae to your soil. It is a remarkable fungus that will boost the roots of your
plants.
3 Add alfalfa and kelp meal annually before
planting your spring veggies.
When it comes to organics, I’m not a die
hard. In a pinch I often depend on chemical-
based fertilizers. This especially applies to
“instant” results that are often desired in the
case of lawns. I simply appreciate a choice as
a consumer. It boils down to the soil. Healthy
soil supports healthy plants. I invite you to visit
your local independent nursery to find out
more about just how you can reap the bounty
of an organic program. CG
You manage your business.
We’ll manage your water.
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53
COMMUNITY
IMPOWER Brings
Women Together
P H O T O S C O U R T E S Y O F S U S A N S I LVA
IMPOWER held their 11th luncheon on January 12th
at Corral de Tierra Country Club. Before sitting
down to lunch, more than 200 attendees
enjoyed some mix and mingle time in the sunshine on Corral’s patio. While reconnecting with
colleagues and seeing old friends, guests
enjoyed Scheid wine and shopped for unique
accessories, purses and clothing provided by
Sweet Envy of San Juan Bautista.
The guest speaker Tonya Antle spoke to the
group about her thirty years in the agricultural
industry. Tonya shared her dedication and passion for the produce industry. Now that she’s
retired, she talked of her commitment to give
back to the industry and community that made
her who she is today.
IMPOWER’s mission is to Inspire, Motivate,
Prepare and Organize Women to Engage and
Reinvest. To help fulfill this mission women were
encouraged to bring gently used books with
them to the luncheon. Over 600 books were
collected and then donated to the Monterey
County Free Libraries.
IMPOWER operates under the Salinas Valley
Chamber of Commerce Foundation. The group
hosts three luncheons per year—January, May
and October—and a mixer in August. To register
for the upcoming May luncheon please visit
www.salinaschamber.com.
Top to bottom (l to r):
Dee Dee Reyna and Claudia Pizarro-Villalobos.
Ed Winiecki, Lisa Sherman and Cathy Schlumbrecht.
Tonya Antle.
Johanna Koch and Adri Pura.
Pirjo Hamalainen, Eric Summers and Chris Ward.
Sr. Barbara Matasci, Susan Silva, Katie Cunanan, Rachel Garcia and Maren Neff.
54
patricktregenzafoto
agriculture
architecture
product
www.tregenza.net
831.372.3786
449 Calle Principal
Monterey CA 93940
55
COMMUNITY
Rancho Cielo’s Third Annual
Culinary Round-Up
P H OTO S C O U R T E SY O F R I C H A R D G R E E N
On January 22nd, Rancho Cielo’s Third Annual
Culinary Round-Up delighted guests with outstanding offerings from 20 of Monterey
County’s top chefs and six of Monterey
County’s best wineries.
The Monterey Plaza Hotel and Spa provided
an elegant setting, with the tented patio and
the 49er playoff game playing on the neighboring warehouse wall.
Students from the Ranch’s Drummond
Culinary Academy assisted chefs at their stations, providing an opportunity for guests and
students alike. Student speakers, National
American Culinary Federation President Chef
Michael Ty and Sylvia Panetta addressed the
western-attired crowd of 300 before the auction of unique culinary-themed packages.
Claudia Smith of Paraiso Vineyards & Vivien Lindley, wife of auctioneer Butch.
Dennis Donohue of Royal Rose Radicchio and family.
Student Speaker Reyna Gabot.
Ken “Cookie” Goebel and Rancho Cielo students at their pizza oven station.
Karen Curtis, Mike and Cass Antle.
Student Yuri Caballero works with chef at gourmet food station.
56
COMMUNITY
Salinas Farm Day
Experience
The 2012 Farm Day Experience-Salinas hosted
3,000 third graders, 110 teachers and 600 parent chaperones on February 9th, at Growers
Cooling, Inc. This was the 21st year that
Monterey County Agricultural Education has
offered this hands-on, nationally recognized
program. Farm Day is a unique opportunity for
children to learn about Monterey County’s
number one industry—agriculture.
Every year approximately 6,000-7,000 students are bused to one of three venues:
Monterey, Salinas and South County. They are
exposed to professions that make up the vast
ag industry. The two-hour program exposes
students to seed science, plant doctors, food
safety, and healthy choices. Students also see
multiple aspects of production, such as various
food crops, production services, equipment,
production animals and working animals.
Farm Day is free to schools and relies on the
help of more than 700 volunteers. The mission
of MCAE is fostering respect and appreciation
of Monterey County’s agriculture industry.
MCAE brings together urban, rural and agricultural communities to illustrate the impact of
Monterey County’s agricultural heritage, and
how its use of progressive science and modern
technology results in better health and nutrition throughout the world.
Antique tractor, Hibino Farms.
April Mackie.
Claudi Smith, Mary Ann Leffel, and Samantha Harrison.
Dirk Giannini.
Claudia Smith and Justin Murphy.
57
COMMUNITY
Monterey County Free Libraries
Centennial Celebration
Surprised laughter broke out on the afternoon of Saturday,
February 11th, as County Librarian Jayanti Addleman rode
out on a mule to welcome people to the Marina Branch
Library. The occasion was the launch of the Centennial celebrations for Monterey County Free Libraries.
Addleman explained, “The first County Librarian, Anne
Hadden, delivered library materials however necessary—by
train, automobile, on foot and on burro. The image of her
riding a burro around the County is an iconic one for MCFL.”
More than 800 visitors attended the celebration. Children
did Zumba, made centennial themed eyeglasses and played
Pin-the-Tail-on-the-Burro, the library mascot. There was
cake and even a “Name the Burro” contest.
MCFL was established by the Board of Supervisors on
August 6, 1912. The first branch was opened in Greenfield,
and by 1923 there were 105 library locations in schools, post
offices, stores and private homes.
Today MCFL serves 3,125 square miles including King City,
Sand City, Del Rey Oaks, Seaside, Marina, Greenfield,
Gonzales, Soledad and all the unincorporated areas of the
County. It delivers services through seventeen branches,
three bookmobiles, Library-by-Mail and the Internet.
Today you don’t even need to go to the library to use
their services. You can apply for a library card online, download books over the Internet, and contact librarians by
e-mail or text message.
Supervisor Lou Calcagno remarked, “Yesterday they’d
ride their burros, mules and jackasses, and today, 100 years
later, we have a beautiful bookmobile.” He was referring to
the state-of-the-art 32-foot vehicle, which has over 4,000
books and DVDs and four computers on board.
To find out more about library services, visit
www.MontereyCountyFreeLibraries.org.
The Dairy Ranch Branch in South County with Mr. and Mrs. J.M. Pura.
Mayor Bruce Delgado, Supervisor Lou Calcagno, Lew Bauman, Jayanti Addleman, Stacey Aldrich, and Supervisor Jane Parker.
MCFL Staff Robin Cauntay, Ray Melendez, Sharon Freed and Beth Lopez stand by the program for the afternoon.
Staff members Marky Starks and Barbara Espe post at the popular Picture Yourself as a Librarian booth.
County Librarian Jayanti Addleman kicks off the events with a mule ride, the way early librarians delivered materials around the county.
58
COMMUNITY
Community Foundation for Monterey County
Receives 2012 Natividad Hero Award
At Natividad Medical Foundation’s annual meeting on February 16th, Community Foundation
for Monterey County received the 2012 Natividad Hero Award for their support
of Natividad programs, spanning seventeen years with donations
of more than $400,000.
CFMC’s support for Natividad programs includes The Onyx
Fund for Women, which has enabled essential surgeries for 29
women. A grant from the Women’s Fund will fund a medical
interpreter paid internship, including transportation and childcare for six indigenous women who will be trained to interpret
medical information for Natividad patients who speak Triqui,
Mixteco and Zapotec.
“Facing a surgery can be very scary especially for someone who
doesn’t speak our language,” said Dr. Peter Chandler, Obstetrics
and Gynecology Services Director at Natividad Medical Center.
“It’s wonderful to cut through the cultural divide and make a real
impact in people’s lives,” said Dan Baldwin, President of CFMC.
“That the 29th beneficiary of The Onyx Fund for Women is here is
a testament to that effort. The real heroes are the donors to the
Community Foundation.”
Also at the meeting, the Monterey Bay Plein Air Painters
Association opened its “Impressions of the Central Coast” juried
exhibition, and Youth Orchestra Salinas and Ensemble La
Campanella performed.
A $240,050 donation from The Agricultural Leadership Council
brought TALC’s total donations to fund Natividad Medical Center’s
essential equipment to more than $600,000 since its inception by John
D’Arrigo in 2010.
“Each of you were inspired to answer the call to help the poor and
medically underserved patients here at Natividad,” said Linda Ford,
President and CEO of Natividad Medical Foundation. “Each gift to
Natividad begins three stories—for our healers, patients and givers.”
Tina Starkey Lopez, Dan Baldwin, Julie Drezner and Tobi Marcus.
Craig Johnson, Dan Baldwin and John D’Arrigo.
Monterey Bay Plein Air Painters Association artists Carole Belliveau and Sibyl Johnson accept awards.
Natividad Medical Foundation President and CEO Linda Ford greets retiring Dr. Valerie Barnes.
New Natividad Medical Foundation Chair Cathy Schlumbrecht and the Comerica Bank team.
Check presentation from The Agricultural Leadership Council to Natividad Medical Foundation.
59
COMMUNITY
Coastal Grower Home Tour
P H O T O S C O U R T E S Y O F D E X T E R FA R M
On Saturday, February 18th, the Grower-
home includes views of the valley, sitting atop
Shipper Association Foundation held its first
Crazy Horse Canyon Road in Prunedale. Guests
annual Coastal Grower Home Tour. Guests
played in the Chapin’s private bowling alley,
toured the Monterey County, California homes
relaxed in the built-in theatre room, and danced
of Steve and Margaret D’Arrigo-Martin, Tom and
to The Money Band alongside the home’s lay-
Lorri Koster, and Don and Barbara Chapin. Each
ered pools. Dinner was served by the Central
home showcased the distinctive style of its resi-
Coast Young Farmers and Ranchers and stu-
dents.
dents from Rancho Cielo, a favorite charitable
The D’Arrigo-Martin home, set at the end of a
organization of the Chapin’s. For dessert, guests
tree-lined private lane with a beautiful view of
enjoyed cupcakes from Fluff Cupcakery and
Toro Hills, was the first stop. The Martins relied
fresh berries.
on their own instincts to re-vamp this house into
All proceeds from this event, of which
their “forever” home. Guests enjoyed D’Arrigo
Rabobank was the presenting sponsor, will bene-
Brothers of California’s own broccoli rabe in a
fit the Grower-Shipper Association Foundation,
delightful lasagna prepared by Gino’s Italian
a public-benefit organization dedicated to pro-
Restaurant of Salinas, Prickly Pear Martinis and
viding the public factual and educational infor-
wine selections by Paraiso Vineyards.
mation about the agricultural industry and giv-
The chauffeured luxury bus next stopped at
ing back to the community it serves. This non-
the home of Tom and Lorri Koster. This post-
profit organization helps support local educa-
adobe home resides atop a hill with an expan-
tional, training, scholarship and leadership pro-
sive view of Markham and Pattee Ranches in
grams as well as community out-
Corral de Tierra. Purchased by the Kosters in
reach and philanthropic endeavors.
1994, the home was remodeled in 2002 with a
Learn more about our leadership
design from architect Richard Rhodes. Guests
programs, AgKnowledge and
were invited to play pool and shoot hoops on
Economic Development of
the sports court. Student volunteers from North
Underserved Growers, and visit our “A
Monterey County Interact Club helped to host
Greater Vision” page at www.grower-
guests, while appetizers highlighted the rustic
shipperfoundation.org. To ensure
cuisine of Mike Howard and the Inn at Tres
you’ll receive an invitation to next
Pinos.
year’s Coastal Grower Home Tour,
The event’s finale was held at the home of
Don and Barbara Chapin. This breathtaking
please contact Abby at 831.422.9007
or [email protected].
Carmelita and Gabriella D’Arrigo kept guests refreshed with Paraiso wine, Salinas Valley Half Marathon water and D’Arrigo prickly pear martinis.
Emily Donohue and Suzi Cameron shake it up at the second tour stop—Tom and Lorri Koster’s home.
Jennifer Murphy Smith, Tiffany DiTullio and Jason Smith are all smiles at the Chapin home.
Justin and Megan Murphy with Ben Wilson and Alyssa Bernal take in some fresh air and a gorgeous view at the Koster home.
Volunteers, Abby Taylor-Silva and Luis de la Garza, are able to relax at the final stop of the tour—Don and Barbara Chapin’s home.
Steve Martin shows guests WHO and WHO around his motorcycle racing shop—a very popular spot at the home tour.
Lino and Teri Belli board the bus on the way to the first stop on the tour—the D’Arrigo-Martin home.
Steve Martin entertains Sally Backus Reinmann and Bob Reinmann at the D’Arrigo-Martin home.
Susan Kraker and Pat McCrumb enjoy prickly pear martinis at the D’Arrigo-Martin home.
60
61
COMMUNITY
Salinas Valley Memorial Hospital Foundation
and Children’s Miracle Network Gala
The Salinas Valley Memorial Hospital
Foundation and Children’s Miracle Network held
their 23rd annual gala dinner/auction on March
3rd at the beautiful Beach Club at Pebble Beach.
160 guests attended, raising over $45,000 for
children’s healthcare needs. KSBW Anchor Dan
Green and Auctioneer Pete DeVries led the live
auction. After the auction, guests enjoyed
entertainment by Jeff Peters, performing as
Buddy Holly, and dancing to Randy Handley and
U.S. Express.
In 1989, Salinas Valley Memorial partnered
with the Children’s Miracle Network organization to raise money for children’s healthcare
services throughout the Central Coast community. Since that time, over $10 million has been
raised. Most importantly, 100 percent of those
dollars have gone directly to services that benefit children, both at SVMH and throughout the
community.
“The economic challenges facing families
today has had a dramatic impact on healthcare
needs for children in our community”, says
Kendra Howell, Director of Corporate &
Community Development. “Children’s Miracle
Network is proud to be a resource for children,
families, and organizations throughout the
Central Coast.”
Foundation Board President Bill Norman with Kendra Howell,
Director of Corporate & Community Developement.
Gary and Joan Vincenz with Holly Boekenoogen.
Jeri and Jim Gattis.
Karen Fanoe and Shirley Lavorado.
Pam Bengard, Paula Taylor and Joanne Taylor Johnson.
Teri Hunsdorfer, Julia Kuwada, Rebecca Redmon-Stein, Michelle Malone and Jackie Vinkler.
62
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63
COMMUNITY
Salinas Valley Chamber
91st Annual Awards Luncheon
Saluting the Business Community and the Agriculture Industry…
with Wine and Roses
On February 23rd, more than 500 people
Central Coast Federal Credit Union
Bev Ranzenberger
gathered at the Steinbeck Institute for Arts
Outstanding Large Business of the Year
ATHENA Business Woman of the Year
and Culture to honor six community members
For more than 62 years, Central Coast Federal
The mission of ATHENA International is to
with special awards for their outstanding
Credit Union has maintained a focus on
support, honor and develop women leaders.
contributions:
fundamentally sound financial decisions that
Bev was selected for her long record of
have made them a safe place for more than
business leadership in the healthcare industry
Anthony (Tony) Costa and
11,000 members. Their commitment has added
and generously serving the greater good in our
Costa Family Farms
value to the lives of their members and our
community. Bev currently serves as Board
Agricultural Leadership Award
community.
Chair for the United Way of Monterey County.
themselves to being quality growers of more
Kimbley Craig
Andy Matsui
than 20 crops in the Salinas Valley. Started by
Spirit of Community Award
Citizen of the Year
Anthony and Elsie Costa, the Soledad-based
The Spirit of Community Award, created to
The Citizen of the Year Award is presented to
operation now involves three generations of
honor a person that has gone above and
one individual whose significant contributions
family members who volunteer their time and
beyond to help our community, went to
demonstrate commitment and dedication to
talents throughout the nation.
Kimbley Craig. She has been involved in
the community. Andy has become the largest
leadership positions for the Salinas Jaycees
orchid grower in the world, and students in the
SSB Construction
and volunteers with numerous other
area benefit from the Matsui Foundation
Outstanding Small Business of the Year
organizations. She currently owns K. Craig
college scholarship program. Andy said, “I am
SSB has had ties to the community since 1960
Media Worldwide and is a member of the
committed to invest all of my fortune in these
beginning with founder, Homer Goldman.
Salinas City Council.
young kids in this valley to get a college
Since 1956, the Costa family has dedicated
Current owners Jeff and Stephen Goldman
attribute their success to the solid alliances
they have with the area’s most talented
architects, engineers, consultants and
subcontractors.
Citizen of the Year, Andy Matsui with Staff from Rabobank.
2010 winner Kristina Chavez Wyatt with Spirit of the Community Award
winner Kimbley Craig.
Bev Ranzenberger accepting the 2011 ATHENA Business Woman of the
Year Award with 2010 winner, Karen Nardozza.
Bruce Adams of Central Coast Federal Credit Union accepting the Outstanding Large Business of the Year award.
Three generations of the Costa family with Bob LaBrier of American Ag
Credit (second from left), sponsor of Ag Leadership Award.
David Costa accepting the Agricultural Leadership Award on behalf of
Costa Family Farms.
Steve and Jeff Goldman accepting the Outstanding Small Business of the
Year award with 2010 winner, Chris Bunn.
64
education for not only their future but ours.”
65
COMMUNITY
Bulls Nation
Fourteen and under team. Top row (l to r): Jordan Morrison, Noah Ryan, Anthony DeSantis, Nico DeSantis, Jack Koster, Joseph Gutierrez, James Donlon, Brock Bueno, Isaac Garcia,
Gabe Valdez, Sal Aguinaga, Jake McCormick, Derek Uemura and Ryan Jensen. Twelve and under team. Bottom row (l to r): Jesus Vasquez, Ivan Perez, Wes Noble, Sam Stoutenborough,
Nate Martorella, Kelly McDermott, Dominic Scattini, Elijah Pinon, Jackson Meuter, Ben Mudd, Sam Koster ands Caden Batista.
Our Bulls baseball family is growing with the addition of
our 12 and under tournament team (affectionately
referred to as the “Little Bulls”). This fine group of players
made a strong showing by making it to the championship
game of their first tournament played together! The 12 U
team is comprised of players from Toro, Salinas Valley,
Watsonville and Carmel leagues.
The “Big Bulls” continue to dominate in Nor Cal travel ball
going undefeated to win the January Weekend Warrior
Tournament and hitting the second spot in the Power Rating
(www.usssa.com). The Little Bulls, with just four tournaments
under their belts (taking runner up in two of them), currently
rank 9th in the Power Rating.
Bulls Baseball is stampeding on with our 8th grade team
currently leading the Central Coast Baseball Babe Ruth
league (team not pictured here).
As our boys return to their respective leagues and high
schools for regular season play we wish all of them the best
of luck. We can’t wait to see them after the season for our
summer tournament play. We are very proud of each and
every one of them. They play the game with dignity and class
and let their talent speak for itself. Every day they play like
champions!
66
USSSA’s Mardi Gras Classic Tournament Runners Up. Back Row (l to r): Caden Batista, Jackson Meuter,
Ivan Perez, Joseph Navarette Ben Mudd. Front Row (l to r): Sam Stoutenborough, Nate Martorella,
Dominic Scattini, Elijah Pinon and Sam Koster.
Weekend Warrior’s Runners Up. Twelve and under. Bottom row (l to r): Nate Martorella, Dominic Scattini,
Caden Batista, Sam Koster. Top row (l to r): Elijah PInon, Ben Mudd, Sam Stoutenborough, Jesus Vasquez,
Ivan Perez, Wes Noble.
All World’s Weekend Warrior Tournament Champions, 14 U Division. Back Row (l to r): Isaac Garcia,
Daniel Farfan, Jack Koster, James Donlon, Noah Ryan, Anthony DeSantis. Front Row (l to r): Brock
Bueno, Jordan Morrison, Nico DeSantis, Ryan Jensen, Gabe Valdez and Jake McCormick.
67
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