oakland business review february 2014

April 2010 | 1

THE AWARD-WINNING PUBLICATION OF THE OAKLAND METROPOLITAN CHAMBER OF COMMERCE |

Oakland Business Review

www.oaklandchamber.com | VOL XXXX NO.2 FEBRUARY 2014

Visit www.oaklandchamber.com for more businessopportunities, news and event registration.

The ReadinessRevolution!Page 4

Women in Businesskicks off excitingnew year February 70

Chambercelebrates theLunar New YearPage 2

Page 8

The search for a permanent OUSD SuperintendentPage 20

A SALUTE TO BLACK HISTORY

MONTH

We have entered into anew era at the OaklandChamber and are enjoyingrevitalization on manylevels with higher Boardengagement, enhancedinternal and externalChamber communications,exciting upcoming events,and renewed collaborationwith city and communitypartners.

As of this writing,our Executive SearchCommittee is more thanhalf way through the searchprocess for the Chamber’snew chief executive officer.If everything stays onschedule, we hope to haveBoard ratification of ourcandidate at the end of

February and have the new CEO in place by April atthe latest. In the meantime, we are enjoying greatleadership from our interim CEO Dan Quigley. Danhas come into the position with a ton of enthusiasm,interest, inquisitiveness, intelligence and profes-sional foundation and fundraising experience thatare helping us navigate the first four months of thisyear and through our transitional period.

I evaluated and refined my goals as Chair uponentering the New Year as I had six months left in thisposition at the beginning of January. I wanted tokeep them clear, not too complicated and achievablein the time I have left. Not only to keep myselfaccountable, but also in the spirit of full disclosure,I wanted to share the highlights with you…

• Continue onboarding of interim CEO and samewith permanent CEO.

• Continue to chair and oversee searchcommittee.

• Create a renewed energy of collaboration andopenness that includes more transparency and dis-closure as needed.

• Open up the channels of communicationthrough conversation, both internal and external,and include cross pollination of all.

• Empower all committee chairs and build outthe necessary committees so they are strong, haveheightened bandwidth and the ability to do their jobto the best and highest good for the Chamber andthe business community as a whole.

• Gain full clarity on all financials and budgeting.• Revise the Board agenda and energize the

meetings.• Complete the fundraising for the Strategic

Plan.Collaboration is the name of the game in 2014

and it is time to step up to the table and into theconversation, so I invite you to commit to participat-ing on a committee, attending our events and spon-soring the Chamber on its way to future success.

My “virtual door” is always open so I look for-warded to your comments, suggestions and contin-ued support. Many thanks! �

From the Chair> Register now for ‘illuminating ideas: ENERGY & Sustainability Summit’ April 16

The Chamber’s spring economic development event tradition continues.Join us for an educational half-day conference and the fifth annual economic development summit

entitled, “illuminating ideas: ENERGY and Sustainability Summit” on Wednesday, April 16 at the OaklandConvention Center. The event will continue the strong tradition of work in the Northern CaliforniaMegaRegion, and identify priority economic development goals moving forward – the lasting messageunderscoring that Oakland’s port, city, and unique geographic position in the state makes it “open forbusiness,” ready to capitalize on positive trends in the energy and sustainability sector, and expand thepromise in our region for future generations.

The Oakland Metropolitan Chamber of Commerce has worked closely with regional stakeholders andbusiness partners to develop the annual Northern California MegaRegion Summit event series. In May of2012, the Chamber produced “Oakland: Heart of the MegaRegion” in conjunction with the city of Oakland,the Port of Oakland and other significant participants. This successful event was designed to maximize theimpacts of the 2010 “Northern California MegaRegion Collaboration” and 2011 “MegaRegion ExportInitiative.”

In its fourth year (2013), the Economic Development Summit entitled “Building A Strong Economy: AVision for 2020” engaged more than 300 business leaders, in which event participants revisited the strongregional sectors of the East Bay economy identified by the Oakland Partnership work of 2007, and envisioneda plan to create a world-class city by the year 2020.

This year, 2014, the Chamber will engage a diverse group of stakeholders including technologyinnovators, government leaders, small business owners, educators, development planners, and communitypartners in an innovative half-day summit in downtown Oakland. Through a series of dynamic speakers andengaging panel discussions, participants will be invited to revisit a strong regional sector of the East Bayeconomy as identified by the Chamber-produced Oakland Partnership/McKinsey report of 2007 – “ENERGY,sustainability and green technology.”

Following on the success of the 2013 Economic Development Summit, which re-examined the otheridentified sectors of strength from the Oakland Partnership report including healthcare, trade+ logistics, andarts + entertainment, 2014’s Economic Development Summit topic will complement the previous year’s work.

Participants will convene in the early morning at the Oakland Marriott Convention Center for a real estatemarket briefing known as a “Real Estate Insider Update + Forecast” from Garrick Brown, director of marketresearch at Cassidy Turley.

Following that, participants will be treated to a keynote address. The lecture will highlight current trendsin energy provision and innovation.

At the keynote’s conclusion, participants will enjoy three breakout sessions (“panel discussion sessions”)offered on green infrastructure, green buildings, innovative technology and the public private partnership.Each panel discussion session (green infrastructure, green buildings, technology and the public privatepartnership) will feature experts in the field and provide conference attendees with a deeper understandingof the given topic. We hope that you will join us.

by Eleanor Hollander

by Chamber Chair of the Board Shannon Pedder

Happy New Year!I hope your

2014 is off to aproductive andsuccessful startand that your

resolutions areholding strong as

we head intoFebruary.

– continued on page 22

Shannon Pedder

| OBR Oakland Business Review | www.oaklandchamber.com2

Names in the news

• Governor Jerry Brown has announced the

appointment of Donn Harris, the executive and

artistic director of the Oakland School of the

Arts, to the California Arts Council. Harris

was principal at the Ruth Asawa San Francisco

School of the Arts, Academy of Arts and

Sciences from 2001 to 2008. He held multiple

positions at the Raoul Wallenberg Traditional

High School from 1997 to 2001 including

principal and assistant principal, and held

multiple positions at the Galileo Academy of

Science and Technology from 1993 to 1997,

including assistant principal and dean of

students.

• The Airport Area Business Association

(AABA), an organization of more than 100

member firms actively working to improve the

economic and environmental conditions in the

area near Oakland International Airport, has

honored Port of Oakland Aviation Director

Deborah Ale Flint with its first-ever Leadership

Award. The award was established as a way to

recognize exceptional individuals who are

making a particular positive impact throughout

the Coliseum-Airport area of Oakland through

his or her actions, words and deeds.

• Crowning a year of rapid growth in 2013,

the Ultimate Sports Guidewas awarded a pres-

tigious photo credential to shoot the Rose

Bowl game (Stanford 20, Michigan State 24) in

Pasadena on Jan. 1, 2014. Said publisher

Christopher Weills, “This honor reflects the

growing respect the Ultimate Sports Guide is

receiving and the enthusiasm readers have for

our e-newsletter and Facebook page, which

have literally exploded. We could not have fin-

ished 2013 stronger.”

• Wendel, Rosen, Black & Dean LLP Partner

C. Gregg Ankenman has been re-elected to the

National Retail Tenants Association (NRTA)

Board of Governors. Ankenman currently

serves as general counsel to the organization

and will complete his second term on the Board

in 2016. He was honored with the NRTA’s

Founders Service Award in 2005.

• Blase Bova, who has more than 15 years of

nonprofit leadership experience with St. Vin-

cent de Paul (SVdP), has been named executive

director of St. Vincent de Paul of Alameda

County.He previously served as the executive

director of SVdP in Marin County and as direc-

tor of operations and development in Phoenix,

Arizona, the largest St. Vincent de Paul in the

U.S. He is a former recipient of a National Merit

Scholarship and a Virginia G. Piper Fellowship.

• The law firm of Donahue Gallagher Woods

LLP has promoted Daniel Schacht to partner

and welcomes Robert Walker as an

associate. Both Schacht and Walker specialize

in intellectual property and business law.

Schacht has been employed with the firm since

2008. Walker earned his law degree from UC

Hastings College of Law in 2013. �

Donn Harris

Deborah Ale Flint

Christopher Weills

C. Gregg Ankenman

Blase Bova

Daniel Schact

Robert Walker

> The Year of the Horse

The Chinese Lunar New Year will be celebrated by the Oakland AsianCultural Center on Saturday, Feb. 8 from 11 a.m. to 4 p.m. The publicprogram is free and open to the public.

Above, the annual Lunar New Year Bazaar was held last month inChinatown, celebrating the Year of the Horse. �

> Register now for ‘illuminatingideas: ENERGY & SustainabilitySummit’ April 16To secure your participation at this exciting economicdevelopment event, please visit the registration websitetoday: http://business.oaklandchamber.com/events/details/economic-development-summit-2823.

February 2014 | 3

> Your Chamber moving forward

This is a time for great innovation and investment in Oakland, and I’m finding tangible evidence of changeacross the city as we start 2014. And your Oakland Chamber is gearing up to help lead that change. We arelooking for new ideas and connections. Are there ways to strengthen our support to members as the city’s economystrengthens and diversifies? Are there new ways to define and take action around a business-friendly agenda with City Hallthat is consistent with Oakland’s community values? Please let us know your thoughts by talking to me or any of your greatChamber staff and by brainstorming with your fellow members.

Partnership with other groups and individuals in Oakland has been a priority for the Chamber, and we are working tostrengthen and expand our partnerships across the city. I joined a lunch in late January with Oakland’s African-AmericanChamber, the Hispanic Chamber of Alameda County, and the Oakland Chinatown Chamber and had a valuable discussionabout ways to collaborate more fully.

I attended the Chamber’s Nonprofit Roundtable in January – what a lively group! – and asked them what Chamberservices could help them be more successful.

The Chamber’s Public Policy Committee expressed a strong interest in formulating an agenda and working with City Hall in new ways. Pleasejoin this ferment and share your thoughts with us!

As many of you know, our vice president for public policy, Paul Junge, left in early January to accept a great job as vice president for localChamber relations with the California Chamber of Commerce in Sacramento. We celebrate Paul’s three years with the Oakland Chamber andlook forward to having an “inside contact” in Sacramento!

We are lucky to have hired Isaac Kos-Read as a part-time consultant for the next few months to cover most public policy work for theChamber. As you will see in his introduction on this page, he brings a wealth of experience, savvy, and contacts to the Chamber’s agenda.

Your Chamber Board of Directors is interviewing a strong array of candidates to become the permanent president and chief executive officerof the Chamber later this spring. Take a look at the report of Board Chair Shannon Pedder in this issue of OBR and stay tuned for further updates.

Thank you for your investment in the Oakland Chamber and please engage with us more in this great period of growth and change! �

Dan Quigley

by Chamber Interim President Dan Quigley

The Oakland A’s, theAmerican League WesternDivision Champions for thepast two years, will arrive inPhoenix this month to beginpreparation for the 2014season. And the Chamber isalready making plans to helpcheer them on to morevictories once the seasonbegins.

The Chamber has reserved asection at one A’s game thisyear that should be of particularinterest in the Bay Area. OnTuesday evening, July 8, joinChamber members and staff atO.co Coliseum for the Battle ofthe Bay – the A’s versus the SanFrancisco Giants.

And then, just to make thegame even more enticing, theChamber has acquired reservedseats on the Plaza Level (seconddeck) overlooking third base.The first pitch is at 7:05 p.m.

Tickets purchased for thegame will be held at theColiseum’s Will-Call windowunder your name, so you havethe option to arrive at whatevertime works for you.

To reserve tickets for theA’s-Giants game – always asellout – visit www.oaklandchamber.com or contact IvetteTorres at [email protected] or at (510) 874-4800, ext. 319.

Help the Chamber cheer theA’s on to victory! �

> Join us for‘Battle of theBay’ July 8

4 | OBR Oakland Business Review | www.oaklandchamber.com

> Welcome these new Chamber members

Anasa Yoga Studio4232 MacArthur Blvd.Oakland, CA 94619Phone: (510) 482-9642Jean Marie MooreEmail: [email protected]: www.AnasaOakland.comHealth & Wellness Programs

Ashton 212, LLC472 9th St.Oakland, CA 94607Phone: (510) 836-0316Mary Ann MunroConsultants

Bay Oak Law180 Grand Ave., Suite 700Oakland, CA 94612Phone: (510) 208-5500Fax: (510) 208-5511Andrew JacobsonEmail: [email protected]: www.bayoaklaw.comAttorneys

Charlie Stimson – Organizational Consulting11526 Bloomington WayDublin, CA 94568Phone: (925) 366-4998Fax: (925) 474-3771Charlie StimsonEmail: [email protected] Consultants

Conestoga-Rovers & Associates5900 Hollis St., Suite AEmeryville, CA 94608Phone: (510) 420-0700Fax: (510) 420-9170Peter MassonWebsite: www.CRAworld.comEngineers

Edelstein Public Affairs534 Fairbanks, Unit AOakland, CA 94610Phone: (510) 239-1102Jason EdelstenEmail: [email protected] Website: www.edelsteinpa.comPublic Relations

Macy Movers200 Victory CourtOakland, CA 94607Phone: (800) 332-6229Stevie AlatorreWebsite: www.macymovers.comMoving & Storage Services

> 2014: The Readiness Revolution!

While hard to believe, soon you won’tbe able to avoid the reminders. Please,don’t be swayed by the drama andimages from our past. This yearOakland has an unprecedentedopportunity to share some amazingreadiness successes with the world.

First, let’s own that past. Byinterrupting game three of the 1989World Series between the Oakland A’sand San Francisco Giants, hundreds ofjournalists in town for the big gamesuddenly became field disastercorrespondents. The unprecedentedcoverage of our response ranged frombrilliant heroics to horrificbureaucracy. The 6.9 magnitudeearthquake killed 63 people, injuredmore than 3,500, and le thousandsmore homeless. The earthquake tookdown the Cypress Freeway, collapsed asection of the Bay Bridge, devastatedthe real estate market, crushed theconvention and tourism industry, andwreaked havoc on small businessesacross the region.

Perhaps most notably, the 1989earthquake exposed long-standingsocietal inequities and correspondingstructural, political, andorganizational weaknesses that had

always le us unprepared and vulnerable. From that trauma,loss, and failure, brilliant successes and paradigm-changingknowledge emerged. That is both Oakland’s legacy, and it is theheart of her resilient future.

Some of what we’ve learned since 1989:1) The traditional preparedness messages about having kits

and making plans simply don’t work. Our friends at FEMA andthe American Red Cross even hosted a workshop in WashingtonD.C. with researchers sharing this hard-to-hear truth. It’s notthat kits or plans aren’t great. But aer decades and countlessmillions of dollars, there is overwhelming evidence that thismessage consistently fails to motivate sustained action, italienates many, and it is steeped in a profoundly affluentsensibility about how people prioritize their mental, emotional,and financial resources.

2) Technology is a readiness game-changer. Back in 1989pay phones were abundant. We didn’t have computers in ourhomes, purses, and pockets. We weren’t connected viaFacebook, LinkedIn, Twitter, text messages, and otherplatforms. It could take days or weeks to find out about lovedones and resources. To obtain research on past disasters youhad to go to a bricks-and-mortar library.

3)Nonprofits and faith agencies are essential to keepingbusinesses open, serving and protecting our most vulnerablecommunities, and in disseminating culturally appropriateinformation, training, and materials. The mightiest ofcorporations can be brought to their post-disaster knees whenworking parents lose their daycare and aer-school programs.Our communities need elder care, food banks, and disabilityservice providers to be resilient and brilliant in the face of crisis.CARD (Collaborating Agencies Responding to Disasters) wascreated by local agencies in response to Loma Prieta, and wenow have research-based, fear-free approaches topreparedness, with free and low-cost interventions that eventhe least-resourced among us can use.

2014 is the year to end Oakland’s unrequited love affairwith threat-based messages, brochures, and binders. Withinternational media attention for the upcoming anniversarycoming our way, let’s give the reporters something to talkabout. How about sharing Oakland’s readiness innovations, andpositioning Oakland to be the most prepared city in the state?

CARD is committed to having every Chamber of Chamberready and able to declare a true readiness success story. Call usat (510) 451-3140 or write to us at [email protected]. Bepart of the revolution! �

Ana-Marie Jones is the executive director of CollaboratingAgencies Responding to Disasters (CARD) and is co-chairof the Chamber’s Nonprofit Committee.

Ana-Marie Jones

by Ana-Marie Jones

Rather thanmaking a 2014

New Year’sresolution to“prepare for

emergencies,”Oakland

businesses areinstead invitedto join the 2014

OaklandReadiness

Revolution! onOct. 17, the 25thanniversary of

the Loma Prietaearthquake.

Marlon Bradford – State Farm Insurance1201 Franklin St.Oakland, CA 94612Phone: (510) 893-3300Fax: (510) 893-3335Email: marlon.bradford.k0wu@

statefarm.comMarlon BradfordWebsite:www.marlonbradford.comInsurance Agents & Brokers

Oakland CommunityOrganizations7200 Bancroft Ave., Suite 2,

Eastmont Town CenterOakland, CA 94605Phone: (510) 639-1444Fax: (510) 632-1225Ken JohnsonEmail: [email protected]:www.oaklandcommunity.orgNonprofit

Raphael & Associates4922 Desmond St.Oakland, CA 94618Phone: (510) 601-9600Len RaphaelAccountants

The Law Offices of Trang La109 Geary St., 4th FloorSan Francisco, CA 94108Phone: (510) 508-7093Trang LaLegal Services

Veronica Gomez – State Farm Insurance 1475 66th St.Emeryville, CA 94608Phone: (510) 596-1457Veronica GomezEmail: veronica.gomez.cch7@

statefarm.comWebsite:www.myagencycareer.

com/recruiters/veronica-gomezInsurance

Windstream2001 North Main St., Suite 310Walnut Creek, CA 94596Phone: (925) 956-4952Fax: (925) 937-1541Anthony LeRouxEmail: [email protected]: www.windstream.comInternet Service Providers

February 2014 | 5

> Visit Oakland adoptsOakland tourism class

On Dec. 17, Visit Oakland visited Ralph Bunche High School inOakland to donate industry textbooks to the “Hospitality, Tourism& Recreation” class. Visit Oakland has adopted the class of 11th and12th graders and will help further their hospitality education byproviding hands-on experiences at Oakland hotels, attractions andrestaurants.

Pictured above at the school are (le to right) Ester Dixon,teacher of the “Hospitality, Tourism & Recreation” class; AlisonBest, president and chief executive officer of Visit Oakland; OaklandMayor Jean Quan; a Ralph Bunche High School student; JumokeHinton Hodge, director of District 3, Oakland Unified School Board;Bostyon Johnson, visitor services coordinator, Visit Oakland; GaryYee, OUSD Superintendent; and Kim Bardakian, director of publicrelations and partnerships for Visit Oakland. �

> Transforming children’s lives in Oakland

The Chamber’s After FiveReception in January was held at theoffices of the East Bay CommunityFoundation, located at 200 FrankOgawa Plaza next to City Hall.

The Foundation asks itself thequestion, “What is the mostimportant thing we can do totransform lives in the East Bay?”Their answer? Build economicopportunities and the educationthat leads to it.

As a result, the East BayCommunity Foundation has workedwith those who come out of theeducation pipeline with skills lessthan necessary to succeed, and has worked with young children as they gointo the education pipeline to ensure they succeed in the education systemand have economic opportunity as adults.

For the past three years, those at the Foundation have harnessedfinancial capital, leadership and philanthropic expertise on these tworelated issues.

Above, at the Chamber reception, which was held in the James IrvineFoundation Conference Center, interim Chamber president Dan Quigley(left) presents a 2014 wall calendar to Mike Christie, the Foundation’soperations coordinator.

The conference center, which is available for meetings andconferences, features state-of-the-art audio-visual equipment, internetaccess and catering capabilities. For information, call Christie at (510) 208-0839 or email [email protected]. �

Isaac Kos-Read, the former director of externalaffairs for the Port of Oakland, has beenengaged as part-time public policy consultantfor the Chamber of Commerce. Kos-Read willtemporarily fill the void in the Public PolicyDepartment following the departure of PaulJunge.

Kos-Read spent three years with the Port, thefifth busiest container seaport in the U.S., whichalso oversees Oakland International Airport (OAK),the second busiest passenger airport and numberone air cargo airport in the San Francisco Bay Area.

Prior to joining the Port, Kos-Read was a deputy general managerand the senior director for government affairs at the Port of Los Angeles,the number one container seaport in the country.

Since leaving the Port, Kos-Read founded Kos Read Group, Inc.(KRG), building on nearly a decade and a half of success in lobbying andcommunications in the private and public sectors. He has served a broadrange of clients and focused on building a legacy of infrastructure,progress, trade development, job creation, and a cleaner and healthierenvironment. He has represented cities and their associated seaportsand airports; public education institutions, including communitycolleges and classroom-based charter schools; water districts; culturalinstitutions such as museums and science centers; and privatebusinesses, from local developers to multinational corporations. �

> Kos-Read joins Chamber’spublic policy effort

Isaac Kos-Read


> Mandatory recycling nowenforced in Alameda County

Since then, hundreds of businessesand property managers have increasedrecycling activities, thereby helping togreatly reduce greenhouse gas emissionsin Alameda County and collectively savingmore than $350,000 in reduced garbagebills.

The ordinance is now being activelyenforced through on-site inspections ofcovered accounts, and accounts that failto comply with requirements could face apenalty. Upon the first observation of aviolation an Official Notification will beissued, a second violation will result in awarning letter, and a third will result in acitation. At that point, a fine may beissued. Since enforcement began inJanuary of 2013, more than 11,000inspections have taken place resulting inmore than 1,400 Official Notifications forOrdinance violations.

Violations observed have been forfailure to provide recycling collectionservice, disposal of “Covered Materials” inthe garbage (cardboard, newspaper, white

paper, mixed recyclable paper, recyclable glass food and beveragecontainers, aluminum and metal food and beverage containers, PET (#1)and HDPE (#2) plastic bottles), insufficient recycling collection serviceand refuse found in recycling containers. The most common violationobserved has been failure to provide recycling collection service.

Fortunately, it is easy to avoid violation through compliance, and freeassistance is available to ensure that affected business and propertymanagers know what recyclable materials are covered under theordinance and what actions they need to take. Many businesses inAlameda County are proving how easy it is to recycle and going aboveand beyond in their efforts to improve their systems.

In July 2012, theAlameda County

Waste ManagementAuthority (ACWMA)Mandatory RecyclingOrdinance 2012-01

took effect inAlameda County, re-quiring businessesgenerating four or

more cubic yards ofgarbage per weekand multi-family

properties with fiveor more units to pro-vide adequate recy-

cling collectionservice for the

amount of recyclablematerial they pro-

duce.

> Oakland shines as an emerging destination

Oakland received more than 20 positiveaccolades in 2013, including “MostExciting City in America” by Movoto,“6th Best Rising Star Destination” by TheHuffington Post, and “5th Hippest City inthe U.S.” by The Thrillist.

“Oakland has always had a rich anddiverse culture, great food and amazingmusic, and now the world is finallystarting to take notice,” said Alison Best,president and chief executive officer ofVisit Oakland. “We have three

professional sports teams, 19 miles of waterfront, over 100,000acres of parks and trails, a booming restaurant scene – theofferings in Oakland are endless, and there are still so manyopportunities to look forward to. The Oakland InternationalAirport will welcome new direct international flights in 2014, aswell as the Airport Connector. Oakland is hot and we're thrilled tosee the city receive the attention it deserves.”

In 2012, the world recognized Oakland’s travel appeal when thedestination was named the “#5 Place to Go in America” by TheNew York Times.Multiple outlets followed suit, listing Oakland asone of “America's Best Cities on the Rise,” “America's 50 BestCities,” and “America's Coolest Cities.”

According to The Huffington Post, Oakland deserves acclaim asa rising destination due to its “hip” factor, stating that “Brooklynand Portland had better shuffle over and give Oakland somehipster room.” Walkscore.com recognized Oakland as the 9th mostwalkable large city in the U.S., proclaiming “Oakland isn’t the BayArea’s second city anymore. With its stunning location on theshores of Lake Merritt and proximity to Silicon Valley employers,it’s come into its own.”

The California Travel Association awarded Oakland chef TanyaHolland “California Chef of the Year” in 2013, based on her successin creating not one, but two, dining establishments that exemplifythe best in culinary arts.

Additional accolades for Oakland in 2013 included:• “11th Gayest City in America” – The Advocate• “Greenest City in the U.S.” – SheKnows.com• “One of America's Top 12 ArtPlaces” – Money Journal• “3rd Highest Hotel Room Demand in the U.S.” – Travel Weekly• “4th most Diverse City in America” – NerdWallet• “4th Best Destination For Nature-Lovers” – NerdWallet• “2nd Best California City for Singles” – Movoto• “Top 10 Best Cities to Own a Dog” – NerdWalletFor up-to-date information on Oakland accolades, visit

visitoakland.org or follow Visit Oakland on Twitter, Facebook,Instagram and Google+ for updated press. �

Oakland ismaking national

headlines,garnering

positive attentionfor attracting toprestaurants andchefs, emerging

technologycompanies andnew residents.

Twenty-four McDonald’s restaurants in Alameda County,including three in Livermore and one in Oakland, have recentlybeen recognized as leaders in waste reduction. McDonald’s PacificSierra Region took a restaurant-by-restaurant approach to ensureevery property had the resources needed to comply with city-specific guidelines for implementing proper sorting practices.Employees at these model restaurants now collect recyclable andcompostable materials from kitchens while customers sortmaterials for recycling and composting with the guidance ofcustom signage. The Mandatory Recycling Business Assistanceteam provided bilingual staff trainings to help launch the newprograms.

Phase 2 of the Mandatory Recycling Ordinance will go intoeffect July 1, 2014, expanding coverage to all businesses (includingsmaller ones with less than four cubic yards of weekly garbageservice) and adding discarded food and compostable paper to thelist of Covered Materials in jurisdictions that elect to participate.Covered accounts will have six months to comply before Phase 2enforcement action begins on Jan. 1, 2015.

For additional information about the Ordinance, includingdetails about who is affected, how to comply, or to request freeassistance, please visit www.RecyclingRulesAC.org or call (510)891-6575. �

> Chamber members hear ‘state of retail’ in Oaklandby Eleanor Hollander

February 2014 | 7

CREATING A STRONG ECONOMY

Economic Development

Solomon Ets-Hokin, the national chair for the retailservices group of Colliers International (and also a memberof the Chamber’s Board of Directors), gave a shortoverview of the history of retail in the Oakland area, andthen led a spirited discussion on new retail developmentsin Oakland for the 40+ attendees at the event.

First Ets-Hokin called on forum audience member JohnJay, who is developing the Foothill Square project. Jayrecounted that the opening of Foothill Square (set forMarch of 2014) will be the “largest retail developmentopening in Oakland in decades.” The project, with more

than 200,000 square feet of retail space, will feature the largest Foods Co grocery storein Alameda County.

Foothill Square is located off the 106th Street exit from Interstate 580 and is twoblocks from San Leandro.

Other projects that were highlightedincluded Safeway’s three building projects invarious stages of completion –College/Claremont, 51st/Pleasant Valley andRedwood Road. Tom Fitzpatrick, a projectmanager for Safeway’s real estate arm,Property Development Centers, indicated thatthe College/Claremont Safeway would be“coming out of the ground” in a “few weeks”time and that the Pleasant Valley location(when built out) will have more than 300,000square feet of retail and “bay views” from thesouthwest corner of the lot. Construction isexpected to begin in 2015.

Retail developments in the area aroundthe Broadway Valdez Triangle were alsodiscussed. A new Sprouts grocery store isslated to go in at 30th and Broadway, and adeal is in the works for another largernational retailer (firm yet to be named) totake space at Harrison and 27th streets.

Ets-Hokin was optimistic about thestate of retail for the remainder of 2014,citing two other forthcoming deals, the first with the city’s sports teams, and thesecond with the Sears building at 20th and Broadway. He also cautioned that withrespect to comparison goods, it is hard to get the critical mass of retailers attracted tothe city of Oakland because of the high cost of the land.

Keira Williams from the city added that the top four things retailers need and wantare (1) affordable land (2) site control (3) developers who believe in the power of theurban market, and (4) public assistance for parking costs.

Following the presentation, the attendees had a robust round of questions for bothEts-Hokin and the assembled experts, mostly about the potential timeline for the futureretail projects, and possible funding sources for the full cost of the land improvements.

Please join us on Wednesday, February 12 at 3 p.m. at the Chamber for our nextEconomic Development Forum. The theme for 2014’s forum program will be “EconomicTrends” at the macro level. �

Eleanor Hollander is the Chamber’s director of economic development.

At last month’sEconomic

DevelopmentForum, Chambermembers weretreated to anupdate on the

state of retail inOakland.

> A look at the newEnterprise Zone tax credits

The replacement incentives aresummarized as follows:

• “Restructured Employee HiringTax Credit” (effective Jan. 1, 2014).

• New statewide “CaliforniaCompetes Incentive Credit”(effective Jan. 1, 2014). Specificdetails of the California CompetesCredit, which will be administered bythe Governor’s Office of Business &Economic Development (GO-Biz), arestill being refined. However, GO-Bizhas indicated that businesseslocated within an existing EZboundary could potentially qualifyfor the new California CompetesCredit. Oakland Enterprise Zone staff

will continue to work closely with GO-Biz representatives todetermine what necessary criterion, qualifications, andprocedures will be required in order for businesses to compete forthis replacement hiring credit incentive.

• “Partial Sales Tax Exemption” for qualifying equipmentpurchases (effective July 1, 2014).

Although the state’s Enterprise Zone program has expired, thestate is allowing EZs to continue processing hiring tax creditvoucher applications for eligible employees (hired prior to Dec.31, 2013) through the end of calendar year 2014. The OaklandEnterprise Zone is now in the process of developing a plan towind down activity for the program and will continue to supportthe administration of this program through the end 2014, whichis the deadline for issuing hiring credit voucher certificates.

The primary focus of Oakland Enterprise Zone’s efforts duringthis final wind down phase will be to collaborate with ourregional economic stakeholders to broadly engage localbusinesses with the goal of maximizing program participation byassisting qualified businesses to take full advantage of remainingavailable tax credit incentives.

Working with our economic development partners, chambersof commerce and business improvement districts and merchantassociations, Oakland Enterprise Zone staff will continue to offerworkshops, webinars and outreach meetings to help existingbusinesses take advantage of the tax credits.

Businesses interested in the Enterprise Zone tax creditprograms should visit http://www.caezonline.com/oakland/ tolearn more about the benefits and submit the easy-to-use onlineapplication. For more information on how you can benefit, call(510) 238-7794 or email [email protected]. �

Susana Villarreal is coordinator of the Oakland EnterpriseZone.

by Susana Villarreal

As a local businessowner you are most

likely aware thatGovernor Brown

signed a bill in July2013 repealing thestate’s Enterprise

Zone (EZ) programand replacing it

with new incentives.As a result, theEnterprise Zoneprogram expiredon Dec. 31, 2013.

> Alameda CTC receivesAAA credit ratingsFitch Ratings and Standard and Poor’s Ratings Services haveboth assigned a AAA rating, the highest-possible rating, tothe Alameda County Transportation Commission (Alameda CTC)sales tax. This top rating affirms Alameda CTC's high-qualityfinancial management of Measure B, the county's transportationsales tax measure.

This AAA credit rating comes just months after independentauditors and the independent Citizens Watchdog Committeepublicly reported Alameda CTC's 11th consecutive year of 100percent clean audits and full compliance on the delivery ofvoter-approved programs and projects funded by Measure Bfor county-wide transportation improvements.

Alameda CTC is now the first transportation agency of itskind in the state of California with a credit rating of AAA on asales tax revenue bond issuance. This rating has the potential tosignificantly reduce the interest cost over the life of the bonds.�

� Guest speaker SolomonEts-Hokin gave an overview ofmany new retail projects inOakland – from Foothill Squareto three Safeway projects toBroadway Valdez.

> Do you have an idea for a future Economic Development Forum? If so, email us at [email protected]. It’s never too soon to plantopic ideas for the rest of 2014!


A myriad of Oakland events celebrate Black History Month

Black History Month Walking Tour –Oakland Tours Program

Feb. 5, 10 a.m. to noonAfrican American Museum and Library at

Oakland659 14th St.This tour highlights African-American leaderswho helped shape present-day Oakland.www.oaklandnet.com/walkingtours238-3234

Black Success ConferenceFeb. 7, 9:30 a.m. to 2 p.m.Lorry I. Lokey Graduate School of Business 101

Mills College5000 MacArthur Blvd.Mills College’s first “Black Success” Conference is designedfor graduate, undergraduate, junior college and high schoolstudents who identify as Black. Its mission is to promoteacademic and professional development, growth and success.It’s designed to give students and future professionals thetools they need to thrive at college, in rewarding careers andin life. www.mills.edu/academics/undergraduate/eths/blackhistorymonth.php(510) 430-2080

Filmmaker Marion Bethel and Film Screening Freedom,Womanish Ways and Democracy: The Women’s SuffrageMovement in the Bahamas: 1948-1962

Feb. 10, 7 to 9 p.m.Danforth Auditorium, Mills College

5000 MacArthur Blvd.This documentary narrates the story of the movement ofthe 1950s while paying homage to the five women who werecentral to the movement – Mary Ingraham, Mable Walker,Eugenia Lockhart, Georgiana Symonette and Dame Dr. DorisJohnson. The film will also explore the lives of the womenactivists who stood shoulder to shoulder with these leaders.www.mills.edu/academics/undergraduate/eths/blackhistorymonth.php(510) 430-2080

African American Cultural CelebrationBlack History Weekend

Feb. 13, 7 to 8:30 p.m.First Congregational Church

2501 Harrison St. at 27thSt. Paul’s Episcopal School’s signature musical event isa knock-out evening of music presented by all students,grades K-8.(510) 285-9600

Black History Month Walking Tour –Oakland Tours Program

Feb. 22, 10 a.m. to noonAfrican American Museum and Library at Oakland

659 14th St.This tour highlights African-American leaders who helpedshape present-day Oakland.www.oaklandnet.com/walkingtours238-3234

Who Are We?: Exploring Black IdentitiesFeb. 22Peralta Hacienda Center for History and Community

2488 Coolidge Ave.Join in a discussion of identity, connection and culture led byparticipants in the Peralta House “Storyhorse” exhibit, “What Ihear, I keep: Stories from Oakland’s Griots.”peraltahacienda.org(510) 532-9142

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Community Building & Healing ThroughMindful Drumming

Feb. 22, 3 to 6 p.m.Attitudinal Healing Connection, Inc.

3278 West St.Mindful Drumming is a transformative learningprocess that offers individuals opportunities toexperience diversity through rhythm and sound.Mindful Drumming is an art form that facilitates

building relationships and synergistically builds community.www.ahc-oakland.org(510) 652-5530

The Art of Living Black – Open Studios Art FairFeb. 22-23, 11a.m. to 5 p.m.Student Union, Mills College

5000 MacArthur Blvd.Part of “The Art of Living Black,” Bay Area Black Artists Exhibi-tion and Art Tour 2014, sponsored by the Richmond Art Center.Featuring 15 Bay Area artists of African descent, includingMills Professor Ajuan Mance’s acrylic paintings.www.mills.edu/academics/undergraduate/eths/blackhistorymonth.php(510) 430-2080

OMCA Family Drop-in Workshop: HistoryMakers/ScienceMakers Series

Feb. 23, noon to 3 p.m.Oakland Museum of California

1000 Oak St.Celebrate Black History Month and explore the legacy of blackpioneers in science and invention with presenters from theMuseum of African American Technology Science Village.Cost is included with Museum admission.www.museumca.org/event/historymakers-sciencemakers-february-23(510) 318-8400

Forty Years Strong: Dimensions Dance TheaterFeb. 28, 7 to 9:30 p.m.Lisser Theater, Mills College

5000 MacArthur Blvd.Dimensions Dance Theater, the Bay Area’s preeminentAfrican-American dance company, proudly presents “FortyYears Strong.” This momentous occasion will celebrateDimensions’ rich cultural history of over four decades ofcreativity and community-building, during which time thecompany has premiered more than 50 evening-length works.www.mills.edu/academics/undergraduate/eths/blackhistorymonth.php(510) 430-2080

Black History Film Premier and Book Launch:“Unearthing the Dream” and “Proud Legacy: The‘Colored’ Schools of Malvern, Arkansas and theCommunity that Made Them”

March 6, 7 to 9 p.m.Danforth Auditorium, Mills College

5000 MacArthur Blvd.A multi-city tour of the new documentary “Unearthing theDream” comes to Oakland with a film and book launch eventsponsored by the Mills College Black Women's Collective andthe Mills College Ethnic Studies Department. Named bestdocumentary at this year’s Arkansas Black Independent FilmFestival.www.mills.edu/academics/undergraduate/eths/blackhistorymonth.php(510) 430-2080 �

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February 2014 | 9

> Annual all-city luncheon set for April 29Plan to attend the annual All-City Luncheon of the League ofWomen Voters on Tuesday, April 29.

The theme of the luncheon, “Building Citizens for the Future,” will beexplored by guest speaker California Supreme Court Chief Justice TaniGorre Cantil-Sakauye. The Chief Justice co-chairs the statewide task forceon civics education in our schools.

Chief Justice Cantil-Sakauye was appointed to the California SupremeCourt by Governor Arnold Schwarzenegger. Following her confirmationhearing and statewide election, she was sworn into office on Jan. 3, 2011 asthe first Asian-Filipina-American and the second woman to serve as ChiefJustice of California. She chairs the Judicial Council of California, theadministrative policymaking body of state courts, and the Commission onJudicial Appointments.

Chief Justice Cantil-Sakauye served for more than 20 years onCalifornia appellate and trial courts before her appointment to theCalifornia Supreme Court. She received her B.A., with honors, from theUniversity of California at Davis in 1980 and her J.D. from U.C. Davis, Schoolof Law in 1984.

Invitations to the League of Women Voters of Oakland’s 23rd annualAll-City Luncheon will be mailed in mid-March. Save the date – Tuesday,April 29. �

On Thursday, March 13, local public agency StopWaste willcelebrate the 2014 StopWaste Business Efficiency Awards.This inspiring event will recognize businesses from around the county –including several from Oakland – for outstanding achievements in wastereduc- tion and business efficiency. The industries represented by thisyear’s awardees include manufacturing, restaurants, food production,social media innovation, building material suppliers, compost producers,as well as commercial and residential property management.

Help celebrate the winners, hear their success stories, and learn howyour own company can reduce waste and become more efficient.

The awards ceremony on March 13 will run from 8 to 10:30 a.m. atthe Zero Net Energy Center, 14600 Catalina St. in San Leandro. A lightbreakfast will be served. The program will begin at 8:30 a.m.

Following the recognition program, guests are invited to join anoptional 30-minute tour of the Zero Net Energy Center, the largestcommercial building in California that produces more energy than itconsumes. The facility’s renewable energy systems and state-of-the-artefficiency features also serve as hands-on models for the center’selectrical industry training programs.

The event is free of charge, but an RSVP is required. For more infor-mation and to register, visit www.StopWaste .org/2014Awards. �

> StopWaste awards celebration> Complying with California’s energy benchmarking policy

The law requires owners of non-residential buildings to disclose theirbuilding’s energy usage during all realestate transactions, including the sale,lease or financing of the entire building.

Owners will need to use the U.S. EPAENERGY STAR Portfolio Manager tool toreceive a Statement of EnergyPerformance Report. The PortfolioManager compares the building’senergy usage to similar buildings across

the country and scores a building on a scale of 1-100 based on: • Energy and water consumption• Age of building• Type of use(s)• Operating hours• Heating and cooling needsEnergy benchmarking is now a requirement, but it also benefits

building owners – commercial buildings that consistently participatein benchmarking use 7 percent less energy over a three-year period,which can lead to cost savings. Additionally, studies have shown thatrental prices for green office buildings are 3 to 5 percent higher thannon-green buildings and selling prices of green buildings are 11 to 19percent higher compared to non-green counterparts.

AB 1103 implementation schedule:• On or after January 1, 2014, for a building with a total gross floor

area measuring more than 10,000 square feet and up to 50,000 squarefeet.

• On or after July 1, 2014, for a building with a total gross floor areameasuring at least 5,000 square feet and up to 10,000 square feet.

Get ahead of these requirements by signing up for ENERGY STARPortfolio Manager today and see how your building performs. Formore information on the AB 1103 law, visithttp://www.energy.ca.gov/ab1103/.

To get started benchmarking your building, visithttp://www.pge.com/en/mybusiness/account/diy/benchmarking.page?WT.mc_id=Vanity_benchmarking. �

If you own a non-residential buildingin Alameda County,you may soon haveto comply with theCalifornia Energy

Commission’s energybenchmarking policy,

AB 1103.

> Making music for Oakland youthFounded in 1974, the Oakland Youth Chorus (OYC) is the oldest andlongest running youth chorus in the East Bay with multicultural musiceducation and performance programs for youth, fostering talent,confidence and community.

OYC trains youth to learn and perform a varied repertoire, supportingthe Oakland community’s rich artistic diversity by providing community-based music education programs that reflect the cultural richness ofOakland. OYC youth develop self-confidence, a knowledge of the musicof several cultures, and a lifelong love of music.

Recently, at an OYC gathering (above), executive director KeriButkevich (holding the scissors) joins her participants and friends for aribbon cutting. �


Women in Business RoundtableEAST BAY

> Join the conversation as Womenin Business kicks off exciting year

The EBWIBR celebrated its 15th anniversary in2013 with a special evening event honoring themany volunteers who have helped build thegroup and awarded its first “Trailblazer Award.”This year, EBWIBR is continuing its extremelypopular luncheon series and expanding theopportunities it provides local businesswomenby adding evening networking opportunities andincreasing the size of the prestigious EBWIBRSteering Committee.

The EBWIBR will kick off the “Rising to theTop” 2014 luncheon speaker series on Friday, Feb.7 when Dr. Deborah Merrill-Sands will provideher perspective on women in leadership. As thedean of the Lorry I. Lokey Graduate School ofBusiness at Mills College, Dr. Merrill-Sands isherself a leader and she both interacts with otherlocal business luminaries and trains the nextgeneration of business leaders in the community.

“Rising to the Top” will feature four otherinspiring luncheons on the first Fridays of April,June, August and October. Topics includecommunity stewardship, featuring SuzanBateson, the executive director of the AlamedaCounty Community Food Bank. Two luncheonswill showcase dynamic business leaders/creatorswith panel discussions about small businessinnovators and the thriving Oakland art scene.

As an added bonus, each time you register fora “Rising to the Top” luncheon, you will enter a drawing to win two roundtriptickets to any Southwest Airlines destination (the winner must be present atthe October luncheon to win).

If you are looking to deepen your commitment to the Chamber or expandyour network, consider joining the EBWIBR Steering Committee. Volunteermembers plan the EBWIBR events, including the luncheons, and have theopportunity to meet the speakers and shape the agenda.

For more information, or to purchase tickets to a “Rising to the Top”luncheon, visit www.oaklandchamber.com or call Ivette Torres at the Chamberat (510) 874-4800, ext. 319. �

Jamie Rudman is a management-side labor and employment attorneywith Sanchez & Amador, LLP in downtown Oakland and a SteeringCommittee member for the East Bay Women in Business Roundtable.

by Jamie Rudman

Interested inmeeting other localbusinesspeople?Hoping to get

inspired to take yourbusiness or business

career to the nextlevel? The East BayWomen in BusinessRoundtable (EB-

WIBR) provides ex-citing opportunitiesfor the business-

women of Oaklandand the East Bay tobuild and strengthenboth their relation-ships and our localbusiness community

through excitingluncheons featuring

local businessleaders and other

networkingopportunities.

> Community Connection: SmallBusiness Innovators Panel April 4

The guest speakers are:• Sarah Filley, co-founder of

PopUpHood, sharing how her smallbusiness incubator is revitalizingOakland one block at a time;

• Erin Kilmer-Neel, executivedirector, Sustainable Business Alliance& Oakland Grown, highlighting thepower of co-marketing Oakland’slocal sustainable businesses andartists;

•Konda Mason, co-founder andchief executive officer of Impact HUBOakland, talking about how the HUBhelps grow businesses by offering co-working space, an entrepreneurialincubator and community of sociallyengaged people;

•Anca Mosoiu, founder, TechLiminal, discussing how her companyis assisting small and solo technologybusinesses by offering co-workingspace for technology projects, classes,web design and technologyconsulting; and

•Angela Tsay, chief executiveofficer and creative director ofOaklandish, discussing thedevelopment of one of Oakland’smost successful community-focused

by Kim Arnone

The East Bay Women inBusiness Roundtable has

compiled an amazingpanel of women who aresome of the best smallbusiness innovators inOakland. On Friday,April 4, we will hear

from five women whoare running successful

and acclaimedbusinesses – each one

with a strong and uniquecommunity focus andconnection. Learn how

each one of themharnesses their personal

connection andcommitment to Oakland

to drive theirbusinesses. Join us andlearn how you can put

their experience,resources and know-how

to use to strengthenyour own business and

community ties.

retail businesses.How does their focus on community help their businesses thrive? How do

they build and nurture their community connection? What are the rewards andchallenges of doing business in Oakland? These questions and others will beaddressed at the luncheon, which will also provide time to network with otherbusiness and civic leaders.

The luncheon will be held on Friday, April 4 at the Waterfront Hotel in JackLondon Square. Networking begins at 11 a.m. and lunch and the program beginat 11:30 a.m. The cost is $35 for members of the Oakland Metropolitan Chamberof Commerce and $45 for prospective members. Register now to reserve yourspace – visit www.oaklandchamber.com or call Ivette Torres at (510) 874-4800,ext. 319. �

Kim Y. Arnone is a senior attorney at Katovich & Kassan Law Groupfocusing on assisting businesses with corporate formation, capitalraising, securities offerings, and employment issues.

WIB

R

EAST BAY WOMEN IN BUSINESS ROUNDTABLE LUNCHEON SPEAKER SERIES‘RISING TO THE TOP”

Alison Best

Suzan Bateson

Margo Dunlap

Sarah Filley

Lori Fogarty

Erin Kilmer-Neel

Dana King

Konda Mason

Dr. Deborah Merrill-Sands

Anca Mosoiu

Angela Tsay

Carol Williams(invited)

2014

Save thedates

Feb. 7

April 4

June 6

August 1

October 3

Each time youregister for a“Rising to theTop” luncheon,you will enter adrawing to wintwo roundtriptickets to anySouthwestAirlinesdestination (thewinner must bepresent at theOctoberluncheon towin).

February 2014 | 11

SPECIAL SECTION Finance and Taxation

The 2010 Health Care Act created two

new taxes as a means of paying for the

costs of health care reform. Beginning in

2013 an additional .9 percent Medicare

tax is imposed upon the earned income

of high income individuals, raising the

employee portion of the Medicare tax

from 1.45 percent to 2.35 percent.

The 2010 Health Care Act also imposed

a 3.8 percent tax on high income individuals, trusts and estates' net

investment income.

This article will briefly summarize the 3.8 percent net

investment income tax (NIIT) and discuss some planning

opportunities to minimize your exposure to the new tax.

For individuals, the NIIT applies only if your Modified Adjusted

Gross Income (MAGI) exceeds $250,000 if married filing jointly,

$200,000 if single or head of household, and $125,000 if married

filing separately. The tax applies to the lesser of net investment

income or the amount of AGI in excess of the MAGI thresholds

discussed previously.

Net Investment income includes the following:

1) Gross income from interest, dividends, annuities, royalties,

and rents (unless derived in the ordinary course of business).

2) Gross income from a trade or business that is either a passive

activity or a financial instruments or commodities business.

3) Net gain from the disposition of property other than property

> A look at two new taxes resulting from the 2010 Health Care Act

by Raymond Evans

held in an active trade or business.

Net investment income does not include Social Security income,

tax-exempt interest, retirement income, alimony, or any item taken

into account in determining self-employment income for the tax

year; however, a portion of these items may increase MAGI and

cause more net investment income to be subject to the surtax.

We have identified a few strategies that should be considered in

navigating the new tax.

Participate more in the business or real estate activity. A

passive activity is any activity which involves the conduct of any

trade or business in which the taxpayer does not materially

participate. Individuals use one of seven tests (including the 500

hour rule) to establish material participation to avoid passive

income treatment.

Rental income is passive regardless of participation, but can be

excluded from NIIT if the taxpayer qualifies as a real estate

professional (750 hour test and more than 50 percent of the

personal services of the taxpayer performed in real property trade or

business), materially participates in the rental activity by meeting

the 500 hour test.

Taxpayers in 2013 or 2014 can, if subject to the NIIT, make an

election to regroup their activities to meet the hours requirement

and qualify for nonpassive treatment.

Note that once a grouping election is made the taxpayer may

not regroup in subsequent years.

Invest in tax-exempt investments: Consider investment in

tax-exempt bonds. The return on investment would be higher in

comparison to taxable interest investments when factoring in the

new Medicare rate.

Time stock sales: Recognize losses to offset gains during the

year.

Wealth transfer: Consider gifting assets that generate NIIT to

children who are below AGI limit or creating a Family Limited

Partnership (FLP). A FLP can serve as a vehicle to shelter a portion

of the net investment income by gifting partnership interests to

younger generations.

Contribute to your Roth 401(k):Higher-income employees

should use designated Roth accounts if their retirement plans offer

this option, and if they expect their MAGI to trigger NIIT during

retirement. Unlike regular Roth IRAs, where contributions can’t be

made by higher-income individuals, there is no income limitation on

annual contributions to a designated Roth 401(k) retirement

account. Qualified distributions from your Roth 401(k) are tax-free

and thus won't be included in MAGI. By contrast, distributions from

regular 401(k) contributions will be included in MAGI, although

excluded from NII.

Required Minimum Distributions: Taxpayers who attain age 70

1/2 in 2014 have until their required beginning date of April 15, 2015

to take their first required minimum distribution. Consider taking

your first distribution in 2014 if a higher MAGI is expected.

These are just a few of the strategies that taxpayers should

consider in limiting their exposure to a significant 3.8 percent tax.

Because of the complexity and interplay of these regulations, it is

critical to consult with experienced tax professionals. �

Raymond Evans is a tax shareholder with RINA AccountancyCorporation.

Raymond Evans



WHETHER YOU ARE INneed of a tax preparer(someone who prepares

or reviews your annual tax returns) ora tax consultant (a professional whocan assist you with tax planning ortax problem resolution), you areencouraged to do your due diligenceand consider the following:

Professional designationIf you only require tax preparation you will want to ensurethat he or she is properly licensed and trained to preparetaxes. Be sure that your tax preparer is either a CPA(Certified Public Accountant), Enrolled Agent (licensed bythe federal government), or a Registered Tax Preparer(certified by the federal government). All tax preparerswho are paid to prepare taxes must have one of thesedesignations. If you are unsure, request the preparer’sPTIN number.

Need tax planning for your estate or business? Lookfor a tax professional who specializes in tax planning andstrategies. This individual may be a CPA or a tax attorneyand can provide insight into and guidance for your futuretax issues.

TrainingHow many years of experience does the professionalhave? What is his or her expertise? Is he or her skilledenough to assist you with your complex tax issues?

IntegrityWe all want to pay the least amount of taxes possible, butwe should alsoensure that thereturns we file areaccurate. Choose aprofessional whoprides himself orherself on accuratefilings. Be wary ofanyone willing to“stretch the truth.”Remember, in theend, it will be youwho is responsiblefor paying theadditional taxes,interest and/orpenalties.

> Choosing the right tax preparerby Mittie Grigsby

ThoroughnessWork with the professional who goes that extra step andinterviews you about your situation to ensure he or she iscovering all aspects of income, credits and deductionsthat apply to you. Remember that he or she is theprofessional and should be able to enlighten you onopportunities to legitimately minimize your tax liability,not the other way around.

AccessibilityYou should be able to contact your tax preparer after youfile your return. Be certain that your chosen professionalis available to your after the filing of your return to answerquestions that may arise as a result of the workperformed.

FeesTax professionals are not regulated on what they cancharge in fees, so choose a professional whose feestructure fits within your personal or business budget.Be careful not to choose a professional simply for lowfees; you want the best professional with the right skillset for your situation to be your first priority.

Accuracy and timelinessAn accurately and timely prepared tax return can save youtime and money! Interview a prospective tax preparerabout his or her concern for accuracy and timeliness offiling. Ask if he or she will cover interest and penaltycharges if an error on their part results in a late orinaccurate tax filing.

Take it upon yourself to do the due diligence necessaryto make this tax season a worry-free one, and select and

work with a taxprofessional who caresabout you and yourbusiness.

Report abusive orfraudulent tax preparersYou can report abusivepreparers and thoseyou suspect of fraudto the IRS by calling800-TAX-FORM(800-829-3676). �

Mittie Grigsby is ownerof Grigsby Finance andTax Services in Oakland,and is an Enrolled Agent,licensed to practicebefore the IRS. She canbe reached at (510) 638-4878.

Mittie Grigsby

Your tax preparation needs will dictate the attributes you look for in a tax preparer. Be aware that not all tax preparers and consultants have the same set of skills and expertise; therefore, not just anyone will do for your particular situation.


February 2014 | 13

IN EARLY DECEMBER THEIRS released proposedregulations on contentious

issues related to partnershipterminations. The IRS has nowconcluded that under Section 708,partnerships may not deductunamortized startup ororganizational costs at technicaltermination. Here is a breakdown

of the details and a few examples of how the newlyproposed regulations work.

Technical terminationsSection 708 considers a partnership terminated if eitherof the following apply:

1. The partners no longer perform any type orportion of the business of the partnership.

2. The partnership sells or exchanges 50 percent ormore of the partnership interests in any 12-monthperiod.

This is what the IRS considers a technicaltermination. Legally, the partnership still exists, butfrom a tax perspective it does not. Instead, a newpartnership is created for tax purposes under Reg.Section 1.708-1(b)(4).

The new partnership is technically born through atwo-step process. First, the old partnership is deemedto have contributed all its assets and liabilities underSection 721 in exchange for an interest in the newpartnership. Second, under Section 731, the newlycreated partnership immediately distributes interest initself to the partners of the technically terminatedentity.

Startup and organizational costsPartnerships regularly have necessary expenses such aslegal fees to set up and form the business. These arewhat the IRS refers to as “organizational expenses.”Expenses incurred after this formation period butbefore the start of active trade or business activities areconsidered startup costs. Startup costs typically includeexpenses such as marketing, advertising and trainingcosts.

Generally, organizational and startup costs are notdeductible because they have an indefinite useful life.Code sections 709(b) and 195(b), however, allow thededuction of up to $5,000 of organizational costs andan additional $5,000 of startup costs during the firstyear the partnership is in business. These deductionsare limited, dollar for dollar, for every dollar theseexpenses are over $50,000. Costs that cannot bededucted right away are allowed to be amortized over a

> IRS introduces new regulations related to partnership terminationsby Doug Regalia

15-year period. Take a look at the following example ofthese rules.

Excelon (a partnership) incurs $8,000 oforganizational costs and $12,000 of startup costs duringits first year of operations. Excelon is allowed to deduct$5,000 each of the organizational costs and startupcosts. The $3,000 of organizational costs and $7,000 ofstartup costs cannot be deducted, but can be amortizedover a 15-year period.

You might be wondering what happens if thepartnership liquidates before it can fully amortize theexpenses. In this case, whatever portion remains isdeductible in the year of liquidation. �

Doug Regalia is a partner with Regalia & Associates, CPAs.He can be reached at (925) 314-0390.

The Internal Revenue Code and its related regulations stretch over 70,000 pages long – but that does not mean every issue is addressed.

Doug Regalia



Of course, you should not “put all youreggs in one basket.” Make sure yourretirement account is properlydiversified. Nevertheless, the taxbenefits for this technique areundeniable.

BackgroundIf you receive a retirement plan payoutin the form of company stock, you onlypay tax on the original cost of the stock.

There is no tax due on the NUA. Furthermore, any subsequentgain on the NUA is treated as long-term capital gain if youhave held the stock for more than one year.

To qualify for these breaks, a distribution must meet thefollowing three requirements:

1. It must be from a qualified retirement plan such as a401(k), pension, or profit-sharing or stock bonus plan.

2. The distribution must be due to death, after attaining59½ years of age; or separation from service.

3. It must be made in one tax year.Currently, the maximum tax rate on long-term capital gain

for most taxpayers is 15 percent, increasing to 20 percent ifyou are a single filer with taxable income above $400,000 ora joint filer above $450,000 (indexed to $406,750 and$457,600, respectively, for 2014). This still compares favorablyto the top ordinary income tax rate of 39.6 percent.

ExampleYou have acquired 20,000 shares of company stock in your401(k) over the years. The shares are currently worth $1

million. Originally, the stock was$5 a share, but now it is valued at$50 a share.

If you sell the stock insidethe plan and then take a cashdistribution, you will receive$1 million. However, the entiredistribution will be taxed asordinary income. If you arealready in the 39.6 percent taxbracket in the year of retirement,you owe federal income tax of$396,000 on the distribution(39.6 percent of $1 million).Conversely, if you take the distri-bution in the form of companystock, you are taxed on theoriginal cost of $100,000(20,000 shares at $5 a share).

ResultYour federal income tax bill isonly $39,600.

Suppose you immediately sellthe stock at $50 a share for atotal of $1 million. Assuming all

> Discover ‘secret’ tax break for employees – Benefits of company stock in retirement plan

by Robert “Bob” Griffin, CPA

of your $900,000 gain is taxed as long-term capital gain at the 20percent rate, you pay $180,000 in capital gains tax (20 percent of$900,000). Therefore, your total federal income tax bill is$219,600 ($39,600 + $180,000), a tax savings of $176,400($396,000 – $219,600). Note that other tax factors, including the3.8 percent Medicare surtax, and state and local taxes, may alsocome into play.

Congress has threatened to close this tax loophole in the past,but it remains in place, at least for the time being. This may be anopportune time to take advantage of the NUA tax breaks. Consultyour professional advisers. �

Robert “Bob” Griffin, CPA is the managing partner of Williams Adley

& Company-CA, LLP, located in downtown Oakland.

Robert “Bob” Griffin

One of the best-kept secrets in the tax law is a unique opportunityavailable to employees, including business owners, who own companystock in their retirement plan. If you play your cards right, you canavoid tax on the appreciation in the stock’s value, called the “netunrealized appreciation” (NUA) on a distribution, as well as benefit-ting from favorable capital gain rates on a sale.

The following is important information fromLifehappens.org.

Most high-income earners are familiar withthe burden of writing large checks to the IRS.These high income individuals often look tolower today’s taxes through traditional planningmethods such as maxing out 401(k)s or otherqualified retirement plans. This essentiallydefers the tax bill to a future date when taxesmay in fact be higher. These qualified accountsalso have maximum contribution limits, whichmay equal a small percentage of their grossincome – making it difficult to put away enoughto continue to have an adequate lifestyle in the

retirement years.Would you like to retain the following goals? Take a look at the

accompanying websites:• Reduce current taxationhttp://www.lifehappens.org/blog/20-reason-you-may-need-life-

insurance-after-60/• Contribute an unlimited amount (subject to insurance companies

financial guidelines)http://www.lifehappens.org/blog/20-reason-you-may-need-life-

insurance-after-60/• Provide tax-free income in retirementhttp://www.lifehappens.org/blog/20-reason-you-may-need-life-

insurance-after-60/• Provide an income tax free lump sum to the familyhttp://www.lifehappens.org/blog/20-reason-you-may-need-life-

insurance-after-60/• Help employers retain top employeeshttp://www.lifehappens.org/blog/20-reason-you-may-need-life-

insurance-after-60/ �

Dawnn Hills is a financial representative with Guardian Life Insurance

Company of America.

> The importance of insurance

As an insuranceprofessional Ihave conversa-tions on a dailybasis about theimportance of

insurance.However, a

conversationregarding taxes is

not normallyassociated with

life insurance as apositive option.

by Dawnn Hills


February 2014 | 15

Tax legislation – 2014 hascommenced in a very differentbudgetary and fiscal climate inWashington compared to the same timelast year. At the end of 2012, lawmakerswere in tough negotiations over thefiscal cliff. The result was the AmericanTaxpayer Relief Act of 2012 (ATRA),which finally passed Congress on Jan. 1,2013. The new law extended

permanently the Bush-era tax cuts for lower and moderateincome taxpayers, including reduced income tax brackets,marriage penalty relief, some education incentives, and muchmore. ATRA also increased taxes on higher income individualsby restoring the 39.6 percent tax bracket and revising otherprovisions. These and other changes made by ATRA arereflected on 2013 returns filed in 2014.Extenders – Although ATRA resolved uncertainty about

the Bush-era tax cuts, it did not make permanent many othertemporary incentives. After 2013, a host of temporaryincentives, known as tax extenders, expired. The impact ofthe expiration of these incentives will not be felt untiltaxpayers file 2014 returns in 2015. That effectively givesCongress time to extend the expired incentives.Affordable Care Act (ACA) – The ACA continued to

generate new rules, regulations and controversies in 2013.The Obama administration surprised many observers with aone-year delay in the so-called employer mandate. Theindividual mandate, which generally requires individuals tocarry minimum essential health coverage or pay a penaltyunless exempt, will go into effect on March 31, 2014. Someindividuals whose existing policies were cancelled becausethey did not meet new standards under the ACA may beeligible for a hardship exemption to the penalty.New Medicare taxes – 2014 will be the start of two new

Medicare taxes imposed by the ACA: the Net InvestmentIncome (NII) tax and the Additional Medicare Tax. These twotaxes generally impact higher income taxpayers, but theyhave some especially complex features that complicate taxplanning. Final NII tax regulations are intended to shed lighton the many types of income that could be subject to the tax.Same sex marriage and domestic partners –On June 26,

2013, the U.S. Supreme Court struck down asunconstitutional Section 3 of the Defense of Marriage Act.The IRS announced that same-sex couples, legally married injurisdictions that recognize their marriages, will be treated asmarried for federal tax purposes. This impacts not only ataxpayer’s filing status. It also applies to all federal taxprovisions where marriage is a factor, including claimingpersonal and dependency exemptions, taking the standarddeduction, employee benefits, contributing to an IRA andclaiming the earned income tax credit or child tax credit. TheIRS also reminded domestic partners and individuals in civil

> 2013 federal tax year in reviewby Dennis Kaneshiro

unions that they are not married for federal tax purposes.Repair regulations – In September, the IRS issued final

regulations on the treatment of amounts paid to acquire,produce, or improve tangible property. The complexregulations reach nearly every type of taxpayer. Theircomplexity should not be a barrier to taking advantage ofsome of the taxpayer-friendly provisions. For example, thefinal regulations include a de minimis safe harbor, a safeharbor for small taxpayers to assist them in applying thegeneral rules for improvements to buildings, and more.Foreign compliance activities – In 2014, foreign financial

institutions will have new reporting obligations under theForeign Account Tax Compliance Act (FATCA). FATCA, itssupporters argue, will significantly boost taxpayercompliance. Its detractors counter that the law is too complexand sweeps in its reach taxpayers who have no intention topurposefully evade U.S. taxation. Along with FATCA, the U.S.has been expanding its tax treaties and informationagreements with foreign jurisdictions to encourage greatertransparency. This trend is likely to continue in 2014.

2014 is an election year and new tax legislation before theelections are doubtful. However, there is still a chance for taxlegislation before 2014 ends, some of which may beretroactive to Jan. 1, 2014. Although this uncertainty makes itvery difficult to do any tax planning for 2014, tax planningopportunities still exists. �

Dennis Kaneshiro is a partner in the Oakland-based

accounting firm of Timpson Garcia LLP. He can be reached at

(510) 832-2325.

As 2014 begins, it is a valuable time to look back at some of the importantfederal tax developments in 2013 and their impact on the new year and be-yond. Some of these developments were anticipated; others were surprises.In nearly all cases, the developments open tax planning opportunities.

Dennis Kaneshiro



IN ADDITION TO THE GRANT, GOOGLE

WILL HOST Milagros – which also has an

Oakland location – and the other businesses

for an exclusive marketing workshop at Google

headquarters next month.

“Chase serves almost 25,000 small businesses

across San Francisco, so we have a first-hand

appreciation of the

important role they

play in the commu-

nity and the

economy,” said

Chase Business

Banking Executive

Vice President and

Region Manager

Alice Rodriguez.

“We hope

Milagros de

Mexico can use its

Mission Main

Street Grant to continue expanding its retail

presence across the Bay Area in its quest to bring

health and wellness alternatives to the Latino

community.”

Nearly 35,000 small businesses from all 50

states submitted applications for consideration to

receive a $250,000 grant from Chase and a trip to

Google headquarters. More than 1.7 million people

showed their support for those participating

businesses by voting on Mission MainStreet-

Grants.com. Applications submitted by businesses

that received at least 250 votes were eligible to

continue onto the judging phase.

“We are thrilled to accept the Mission Main

Street Grant,” said Mauricio Simbeck, owner of

> Chase provides grant to San Francisco retailer

Milagros de Mexico, a five-store health and

wellness retail chain based in San Francisco. “Many

Latinos are struggling with health issues, including

obesity and diabetes. It is my hope that by provid-

ing vitamins, herbs, weight loss and skin care

products with Spanish language labels, my

customers can begin their journey toward healthy

living.”

“The hard

working

owners of

America’s small

businesses

deserve

recognition for

continuing to

grow our

economy and

provide much

needed jobs

during our

recovery,” said David Chavern, U.S. Chamber

executive vice president and chief operating

officer. “This year’s winners prove that with hard

work and determination, there are still many

success stories to be told.”

“The 12 grant recipients are a great

representation of the incredible businesses all

across the country, and we were very impressed

by the thousands of businesses that submitted

applications,” said Jon Kaplan, vice president of

U.S. Sales & Operations, Google Inc. “We know

how important a successful web presence is for

any company, and we’re excited to host the chosen

businesses to discuss ways that they can market

themselves in today’s digital age.” �

Chase and Google have announced that San Francisco retailerMilagros de Mexico is one of 12 small businesses chosennationwide to receive a $250,000 grant through Mission MainStreet Grants, a campaign to support American small business.

February 2014 | 17

> Panel explores public safety benefits, discusses Measure Y future

This year is a big one for public safety in Oakland. Measure Y,the Violence Prevention & Public Safety Act, which was over-whelmingly passed in 2004, expires at the end of the year.Unless renewed, the city’s already resource-constrained police,fire, and social services budgets face further cuts.

Funding for Measure Y comes from a $97.62 parcel tax and 8.5 per-cent surcharge on commercial parking lots. Around $19 million is gener-ated annually, with $4 million going to fire prevention, a particularlyimportant issue given the severe drought we are facing. 60 percent ofthe remaining, or about $9 million, goes to hiring at least 63 ProblemSolving Officers for the Oakland Police Department.

The remaining 40 percent, or about $5 million, goes to violence pre-vention and intervention programs that are targeting the hottest crimespots in the city with research-tested policies that are yielding tangibleresults.

At the Inside Oakland event on Jan. 24, a panel of representativesfrom the city of Oakland, Oakland Police Department, a local nonprofitorganization, and a small business owner and blogger discussed thebenefits of Measure Y, how it has been improved over time, and whatfurther enhancements are needed.

Public PolicyREPRESENTING THE INTERESTSOF BUSINESS WITH GOVERNMENT

by Isaac Kos-Read

“This is an ethical approach to addressing violent crime – and it’sworking,” explained Deputy Chief Paul Figueroa, who as an officer inthe 90s was involved in drug busts that contributed to around 30,000arrests annually in Oakland. He noted that last year the number ofarrests was around 8,000 while overall violent crime is down.

Meanwhile, as was widely reported earlier this month, Oakland sawa 33 percent decrease in the homicide rate last year from the year prior,reaching its lowest level since 2004.

Yet no one would disagree that even one homicide is one too many,and that Oakland businesses and residents continue to face a real andperceived crime threat. This is one of the central critiques of Measure Y,which is not, for example, focused on property crime. OPD contends,however, that tackling violent crime helps reduce overall crime levels,including property crime.

“We’ve made improvements and continue to make more,” noted In-terim City Human Services Director Sara Bedford, adding, “This is onlyone small piece of a package of programs that the city and other agen-cies are implementing to address all crime in Oakland.”

Yet the fate of Measure Y is unclear. The city administrator’s officehas engaged a consultant to look at polling, conduct outreach and edu-cation around the measure, and determine what can and should betaken to the voters in November. This review and evaluation will takeplace over the next six months.

The Chamber plans to be front and center in helping foster a con-structive dialogue around this vital issue for Oakland. Please keep onthe lookout for future events, and check out the presentations from theInside Oakland event on the Chamber’s website, www.oaklandcham-ber.com. �

Isaac Kos-Read is the new public affairs consultant of the Chamberof Commerce.

� At the Inside Oakland Breakfast Forum (left to right) –guest speaker Len Raphael, local CPA and blogger; DanQuigley, the Chamber’s interim president; Paul Figueroa,Deputy Chief of the Oakland Police Department; guestspeakers Sara Bedford, interim human services director for

the city of Oakland and Anne Marks, executive director ofYouth Alive; and Isaac Kos-Read, the Chamber’s public affairsconsultant. The group discussed the future of Measure Y,Oakland’s Violence Prevention & Public Safety Act,


SPECIAL SECTION Small Business

John Driscoll, who has more than 30 years of commercialexperience in international maritime transportation, has beennamed the director of maritime for the Port of Oakland.

Driscoll most recently served as the vice president of export salesCMA CGM (America) LLC, a leading global container shipping group.

As director of maritime, Driscoll is responsible for building andgrowing maritime business through efficient operations, stakeholderengagement and strategic planning. He will oversee the full range ofmaritime operations including administration, finance, customer service,planning and development, and seaport security.

Driscoll has worked for Sea-Land Service, Maersk Line and CMACGM. He has also served in an executive capacity with CMA CGM since2005. �

PORT OF OAKLAND

> Driscoll named Port’s director of maritime

ASK THE EXPERT

> ‘ADA’ boys all around! –Sens. Steinberg and Duttonreform ADA litigation by Brian Sanders

We have all heard of a particular groupof plaintiffs and their attorneys(sometimes the same person) who visita business and, after merely viewing thepremises, file disabled access claims. Ithas gotten so common that phrases like“drive-by ADA” have become part of ourvocabulary. Some plaintiffs have goneso far as to visit the same businessmultiple times to “stack” theircomplaints to increase their recoveryunder the statutes. Such plaintiffs senddemand letters to the owners andoccupants of the premises, demandingmoney to avoid lawsuits. The demandsare often no more than the minimumstatutory damages for each claim,making it less expensive to simply paythe claims rather than defend againstthem.

SB 1186 – which took effectimmediately upon Governor Brown’ssignature – enacts numerous controlson the process of filing ADA lawsuits inCalifornia, including the following:

• “Stacking” – the practice ofvisiting the same premises multipletimes each day in order to increase thealleged number of violations theplaintiff can claim – should bedramatically curtailed by the statute’sprovision treating multiple violations in

a single day as one violation. Plaintiffs could try to evade theoperation of this provision by sending more than one person tothe premises in order to allege separate claims for each person,but the statute also requires the court to determine whether theplaintiffs’ conduct in visiting the premises is reasonable. Adroitdefense counsel should argue that, having once visited thepremises for the purpose of assessing ADA compliance inanticipation of litigation, the plaintiffs should not re-visit beforethe claim is noticed to the putative defendant and there has beenan opportunity to resolve it.

• The minimum statutory damages are reduced from $4,000per claim to $2,000, or even as little as $1,000. The amountdepends on (among other things) whether the claimed deficiencyis corrected in 30 days or 60 days from the notice of thecondition, and whether the recipient of such notice is a smallbusiness owner.

• A written notice must be provided with each demand letterand complaint. In a new requirement, legal counsel must statefacts about the claim that are sufficient to give a reasonableowner enough information to identify the actual basis for theclaim (i.e., the specific condition complained of).

• Complaints filed with respect to construction-relatedaccessibility claims must be verified – meaning the plaintiff mustaffirm the claims under penalty of perjury.

• The demand letter and notice may not contain a request ordemand for money or make a settlement offer to the businessowner that involves paying money to the plaintiff. Attorneysissuing such letters may be subject to State Bar disciplinaryaction.

• The law provides assistance to lessees/tenants as well.Owners of commercial real estate must disclose, in their leaseagreements executed on or after July 1, 2013, whether theleased/rented property has been inspected by a certifiedspecialist. If it has, then the lessee and owner may be able to takeadvantage of additional statutory advantages if the conditioncomplained of was set forth in the specialist’s report andcorrected before the ADA plaintiff’s visit to the premises.

It seems the legislature has taken significant steps tosubstantially reduce the cottage industry of making money byfiling specious Federal ADA-based accessibility claims inCalifornia. More is needed, but this legislation is an encouragingdevelopment in the eyes of the California ADA defense bar. �

Brian Sanders is a partner in the Oakland office of EricksenArbuthnot. He can be reached at (510) 832-7770 or [email protected].

Brian Sanders

When the governorapproved SB 1186

on Sept. 19, 2012, itheralded a new dayin ADA litigation in

California. Thelegislation,

shepherded throughthe legislature bysenators Darrell

Steinberg (D) andBob Dutton (R),reins in so-called

“serial plaintiffs” byplacing obstacles intheir paths – both tosettlement money

and to thecourthouse.

CHAMBER VOLUNTEER

> Ambassador of the Month

Cynthia Dorsey, the president of the OaklandChamber Toastmasters Club, has beennamed the Chamber’s Ambassador of theMonth for the second time in three months.

Dorsey has served on the AmbassadorCommittee for several years. She enjoysnetworking with other Chamber members andattending the activities.

Her role as an Ambassador offers her theopportunity to be a founding member of theToastmasters Club, which meets twice a monthon the first and third Fridays at 12:30 p.m. The

club’s goal for 2014 is to become a “Distinguished Club.” To reach thatgoal they need to collaborate with you.

Dorsey’s career path is in transportation, tourism and marketing.She enjoyed a long tenure at AC Transit as a senior marketing andcommunications representative, and as the chair of the Citizen’s AdvisoryCommittee for Alameda County Transportation Commission (ACTC).

She was recently appointed to the Citizen’s Watchdog Committee forACTC by the Mayor’s Conference, and has served on the board for VisitOakland.

Dorsey enjoys developing collaborative business partnerships. She iscurrently a marketing and communications consultant, and her hobbiesinclude travel, gardening, property and project management.

Would you like to increase your client base? Build your self-confidence? And make more money? Dorsey enjoys Toastmasters and itsphilosophy of improving personal communications skills. ToastmastersInternational is a world leader in communication and leadershipdevelopment. Members improve their speaking and leadership skills byattending one of the 14,350 clubs in 122 countries that make up its globalnetwork of meeting locations.

Membership in Toastmasters is one of the greatest investmentsyou can make. At $36 every six months, it is also one of the most cost-effective, self-paced, skill-building tools available anywhere.

Cynthia Dorsey can be reached at (510) 444-0945. For moreinformation about Toastmasters visit, www.toastmasters.org. �

Cynthia Dorsey

February 2014 | 19

SPECIAL SECTION Small Business

SMALL BUSINESS ADVOCATE

> 2014 employment updates – A check listby Christine K. Noma

The following is a list of the key changes inCalifornia employment laws for 2014:

New wage and hour laws• Minimum Wage – Effective July 1,

2014, the California minimum is increasedto: $9 per hour. Effective Jan. 1, 2016 theCalifornia minimum is increased to: $10 perhour. In San Francisco, effective Jan. 1, 2015,the minimum wage is $10.55 per hour.• Minimum Wage Violations

Liquidated Damages: In a LaborCommissioner hearing, the employee canrecover liquidated damages, equal to theunpaid minimum wage amount.

No retaliation against employees filingcomplaints • Prohibits retaliation against employees

for filing a written or oral complaint thathe/she is owed unpaid wages. A civil penaltyof up to $10,000 per employee per violation.

Labor commissioner lien • The amount due under a Labor Commissioner order, decision

or award that has become final shall create a lien that may berecorded on the employer’s real property.

Attorneys’ fees for wage claims• Employers who win wage claim lawsuits may recover attorneys’

fees and costs from the employee only if a trial court finds that theemployee filed the lawsuit in bad faith.

Discrimination • Military and Veteran Status is added to the list of categories

protected from employment discrimination.• Sexually Harassing Conduct Expanded. Sexually harassing

conduct need not be motivated by any sexual desire. If harassment isbased upon “sex” of the employee and creates a hostile workenvironment, it can constitute sexual harassment.• Sexually Harassing Conduct Expanded - Gender. It is

unlawful to harass an employee based upon the employee’s genderidentity or expression.

Whistleblower protections•Whistleblower protections

have been expanded to includereports alleging a violation of alocal rule or regulation, inaddition to reporting violationsof a federal or state statute.

Employee – Immigrant laws• Retaliation: Employers are

prohibited from retaliatingagainst immigrant workers whocomplain about unfair wages orworking conditions.• Business License

Revocation: An employer’sbusiness license may be revokedor suspended if the employerreports, or threatens to report,the immigration status of anyemployee (or family members)because the employee makes acomplaint about employmentissues.• Criminal Extortion:

Threatening to report the

As every employerknows, the start of

each new yearbrings in a bevy ofnew laws or clarifi-cation of existinglaws. This year is

no exception. Somechanges are

significant andothers are technical.

Christine K. Noma

The Oakland law firm of Wen-del, Rosen, Black & Dean willhost a seminar on “14 NewEmployment Laws in 2004”and how they impact howyour business must operateon Thursday, Feb. 13 from 8to 9:30 a.m. at 1111 Broad-way, 19th floor.

Topics will include the ex-panded definition of “sexuallyharassing conduct,” newly cre-ated protections for employeeswho are victims of stalking, newpenalties if businesses threatento report employees with ques-tionable immigration status,new limits on criminal back-ground checks for job appli-cants, and ten moreemployment issues impactingbusinesses.

RSVP by Feb. 10 [email protected], or for moreinformation call (510) 834-6600.�

> New employment laws

immigration status or suspected immigration status of an individual,or his/her relative or a member of his/her family is criminal extortion.• Driver’s License for Undocumented Immigrants: Effective

on Jan. 1, 2015 or on the date the DMV’s director executes a specifieddeclaration, whichever is sooner: The DMV must issue a driver’slicense to an undocumented person who can prove identity andCalifornia residency and who can meet all other licensingrequirements.

New leaves of absence• Time Off for Crime Victims: Employer cannot fire, retaliate or

discriminate against any employee for attending court proceedings ifthe employee (or the employee’s spouse, parent, child, sibling orguardian) is a victim of murder, rape, felony child abuse, stalking,domestic violence, kidnapping, carjacking or vehicular manslaughterwhile under the influence.• Time Off for Domestic Violence Victims: Existing law

provides protections for victims of domestic violence and sexualassault. The new law expands the requirements to include stalkingvictims. Employers must provide time off to allow a victim to seeklegal relief. • Time Off for Emergency Duty: Employers with 50+

employees must provide time off of up to 14 days per calendar yearfor reserve peace officers and emergency rescue personnel to receive“emergency rescue training” in addition to the existing protectionsfor fire or law enforcement training.• Paid Family Leave (PLF) Benefits: Effective July 1, 2014, PFL

wage-replacement benefits for employees is expanded to includebenefits for time taken off to care for a seriously ill grandparent,grandchild, sibling or parent-in-law. �

Christine K. Noma is a partner at Wendel, Rosen, Black & Dean LLPin Oakland. She may be reached at (510) 834-6600 or [email protected].

Among the more than 400 Medicare planssurveyed, Kaiser Permanente Northern Californiaranked second in the nation.

The NCQA, established in 1990, is a private,not-for-profit organization dedicated toimproving health-care quality. Its surveys areamong the most comprehensive and widelyrespected in the nation, and cover a wide rangeof clinical and service measures. Health plansare scored on dozens of measures of carecovering preventive medicine, reproductivehealth, mental and behavioral health,management of chronic conditions, and cancerscreening.

It has also been announced that KaiserPermanente’s Medicare plans in Californiaagain have received an overall rating of 5 stars

for parts C and D, the highest rating possible from the Centers forMedicare & Medicaid Services (CMS).

Through the Medicare Star Quality Rating System, CMS assignsscores of 1 to 5 stars to Medicare plans based on more than 50 care andservice quality measures across nine categories including stayinghealthy, managing chronic conditions, member satisfaction, customerservice, and pharmacy services.

For the first time, all of Kaiser Permanente’s Medicare health planshave earned 5 stars. The 5-star rating applies to Kaiser Permanente’s2014 Medicare health plans that operate in California, Hawaii,Colorado, Georgia, Mid-Atlantic States (Virginia, Maryland and theDistrict of Columbia) and Northwest (Oregon and Washington). �

| OBR Oakland Business Review | www.oaklandchamber.com 20

common support for the strategic plan, with a sense of mutual respectand communication. Our schools sometimes seem to be in constantturmoil – but the fact that Oakland’s elected board could lead our districtthrough a successful superintendent search that brought Dr. Tony Smithfive years ago – could decide in this interim year to prepare for the nextpermanent superintendent, and is about to embark on a communityinformed process to select my successor. It’s really a remarkableexpression of local democratic leadership.

The next superintendent should understand and appreciate thisboard, every resident and student, and this city.

For more information on the superintendent search, and to add yourcomments about what you would like to see in the new superintendent,please visit our website, ousd.k12.ca.us, review the calendar for thesuperintendent search, and take the quick survey! �

Dr. Gary Yee is superintendent of the Oakland Unified School District.

> Kaiser Permanente honored

I did it because we wanted to be sure that the five-year plan, Community Schools, Thriving Students,was going to move forward with integrity, and Iwanted to be sure that the board would be able totake its time recruiting and selecting just the rightsuperintendent.

Adopting the district budget (in June) andselecting and evaluating the superintendent areconsidered the two most important responsibilitiesfor a school board.

I want to share with you what I think we as acommunity need to watch for in that selectionprocess. First, the next superintendent should havea clear connection with our instructional initiativesthat are starting to bear fruit. We have begun aconcerted effort to significantly transform our highschools. Linked Learning, the Common Core, SocialEmotional Learning, and our belief that ourstudents need extended instructional time andopportunities are just four of the strategies thatneed strong instructional leadership to continue.

Some of our elementary schools are becomingk-8s, and others are becoming 6-12, and the newsuperintendent will need to support instructionalflexibility.

Second, our accountability tools, anchored byour Balanced Scorecard, means that we will have atransparent and consistent tool to assess ourprogress. Our Community Schools, ThrivingStudents plan means that we want our students to

graduate with a clear sense of college, career, and community success. Ourscorecard includes student academic progress, indicators of social emotionallearning, and factors such as discipline and attendance that are indicators ofpositive culture and climate in the schools. The next superintendent shouldbe able to use data to clearly explain program success and priorities.

Finally, our fiscal outlook is improving, with the Governor’s commitmentto simplifying and accelerating state support for our schools. While we havenot yet even made up the losses of the past four years, and we worry aboutthe federal capacity to support special education and other mandatedprograms, we appreciate the Governor’s priority on education. We need tomake sure that we fund the basic programs at every school and that we fulfillthe commitment to extra funding for students and schools with more needs.

At the same time, voters committed to modernizing our infrastructurethrough our Measure J bonds, and we will also need significant upgrades andimprovements in our operational systems to ensure that our state auditfindings are minimized. The next superintendent will need to work with ourboard to make sure that these precious public funds are used wisely.

Above all else, what I think has defined this year’s work is an overridingcommitment by the board and the superintendent to work together, in our

> The search for a permanentsuperintendentby Superintendent of Schools Dr. Gary Yee

Dr. Gary Yee

Last year, when Iwas asked by theBoard President

to become the act-ing superintend-

ent of the OaklandUnified School

District, I had togive up a job Iloved (Linked

Learning Consult-ant for the CareerLadders Project)and being on theboard with col-

leagues.

SPECIAL SECTION Education

5 1 0 . 6 5 3 . 2 1 5 3 • c c @ c h e r i e c a r t e r d e s i g n s . c o m

C O M M U N I C A T I O N D E S I G N T H A T R E A L L Y M E A N S B U S I N E S S

BrandstormingWe work with you and your team to connect your product

or service with your target. We create quality publications

and websites that help build your brand – annual reports,

brochures, logos, corporate newsletters,

advertising, sales kits and

WordPress web sites.

=C A R T E RD E S I G N S

KaiserPermanenteNorthern

California is thetop-ranked

commercial healthplan in the state –and seventh in thecountry – in the2013 ranking ofmore than 480

health plans in theU.S., accordingto the NationalCommittee for

Quality Assurance(NCQA).

February 2014 | 21

SPECIAL SECTION The Oakland Restaurant Association

> Dine & Unwind – Bocanova-style

Chef Michael Erwin, Francesco’s Restaurant, 8520 Pardee Drive at HegenbergerRoad near Oakland International Airport, (510) 569-0653, www.francescosrestaurant.com

BACKGROUNDI was born in Colorado and moved to California when I was 12. I worked atFrancesco’s for 13 years and then moved on to other restaurants for several years –Manzella’s, Girasole and La Rochelle. I spent some time with Ogden Aviation,in-flight catering, and on to Sodexho as food services manager.

First job? Delivered newspapers when I was 10.Education? Culinary Arts Program at Laney College.Residence? Castro Valley

BUSINESS STRATEGYWhat’s your business strategy? Purchase wisely without sacrificing

quality. Listen to your customersHow’s business? Business seems to be on the up-swing. I’m noticing more

banquet activity.Biggest challenge that you face? Trying to maintain a stable food cost

with such a fluctuating market.Personal goal yet to be achieved? Retiring with some sanity.Why people like working for you? I am a team player. I treat people with

respect.Mentor? Bud Hanks (Laney College Culinary Arts) and Bob Viani, a talented

chef at Francesco’s in the 1970s.What do you like most about your job? I like the daily challenges that

pop up. I enjoy cooking and creating and the personal interaction withcustomers.

> Chef’s / Owner’s Corner –Michael Erwin

Bocanova in Jack London Square was the scene for January’s Dine& Unwind, a series of monthly featured events hosted by some ofOakland’s top restaurants focusing on wine or beer tastings andcutting edge cuisine at various Oakland-based venues.

The series is presented by the Oakland Restaurant Association inpartnership with the Chamber of Commerce and Visit Oakland.

The dinner benefited the Oakland Lighthouse Community CharterSchool, with Bocanova donating 15 percent of proceeds. The five-course,family-style menu featured sustainableseafood dishes.

For more information on Bocanova,call (510) 444-1233.

For more information on the Dine &Unwind series, visit www.oaklandchamber.com. �

� Martha Dotti of StageLeft Cellars (left) and MarthaRueca-Gustaffson of RolandRosario Cellars served theirwines at January’s Dine andUnwind event at Bocanovain Jack London Square.

What do you like least about your job?Dealing with badattitudes.

Best meal/dish you ever created and to whom was it served?Barbecued oysters, Boston clam chowder, Caesar salad, beef tournedoswith asparagus and Zabaglione for my hunting buddies before our pokernight.

Most respected competitor? Any successful “Joe’s” style operation.This style has unique challenges.

PREFERENCESStranded on a desert island; what cookbook would you want?

“The Silver Palate.”Lunch with Julia Child - one question for her? What was it like

working with Jacques Pepin?Favorite cause?American Red Cross.Favorite movie? The Thornbirds.Favorite restaurant?Chez Panisse.Favorite way to spend spare time?With wife and family.What’s on your iPod? Gladiator. �


SPECIAL SECTION Leadership Oakland

> Leadership takes a close look at public safety

The early morning panel included Sara Bedford,director of the city’s Department of HumanServices; Dr. Patricia Bennett, president ofResource Development Associates and MeasureY’s independent evaluator; and Kevin Grant andEmilio Mena, both of whom work for the city’sDepartment of Human Services and are involvedin street outreach and gang intervention.

Measure Y is a 2004 ballot measure approvedby Oakland voters that provides nearly $19 mil-lion annually – violence prevention ($5 million),additional police officers ($9 million) and firesservices ($4 million) – over a 10-year period. Itsviolence prevention program areas are DomesticViolence and Sexually Exploited Minors, focusedYouth Services, Re-entry Employment, and CrisisIntervention.

The outcomes are significant amongclients served: 57 percent reduction in arrests,86 percent decline in school suspensions,87 percent enrolled in employment training and

67 percent employed. While the results are impressive, the violence preven-tion programs are limited to a small number of high risk individuals undercurrent funding levels. Measure Y sunsets this year, and city leaders will needto determine what type of reauthorization they want to present to Oaklandvoters.

The second panel discussion was focused on community policing andwhether it can work in Oakland with long-time neighborhood activist, DonLink and Oakland Police Department Deputy Police Chief Paul Figueroa.Link and Officer Figueroa shared details on the collaboration between theOakland Police Department and community-based public safety efforts, and

The December 2013Leadership Oaklandsession focused onpublic safety. The

panel presentationsincluded discussions

about Oakland’s Meas-ure Y and its outcomesrelated to violence pre-vention services, com-munity policing, whatOakland residents cando to improve public

safety in their commu-nity, and Oakland’s

Fire Department andemergency prepared-

ness programs.

discussed the benefits of collaborationbetween the police department and com-munity members. Reciprocal relationshipbuilding between officers and thecommunities they serve fosters a sense oftrust between the two groups that lowersthe anonymity of crime and keepscommunities safe.

The afternoon panel – A Call to Actionto Make Oakland a Safer City – included Bishop Bob Jackson, pastor of ActsFull Gospel Church; Oakland City Councilmember Noel Gallo, who chairs theCouncil’s Public Safety Committee; and former Chamber of CommercePresident Joe Haraburda. Councilmember Gallo stressed that there are manyexamples of excellence that get lost in people’s perceptions of Oakland.However, Oakland needs to develop a clear strategic direction regarding itspublic safety goals. Bishop Jackson emphasized the need for accountabilityin programs that are funded to address violence and the need for strongmentorship programs such as his Our Kids Program.

Both Councilmember Gallo and Haraburda emphasized quality educationand bringing back business to create more jobs. Haraburda also stressed

mentorship, support of education bonds, and increasingthe number of police officers as part of the Measure Yreauthorization in 2014.

In the final presentation of the day, Deputy Fire ChiefMark Hoffmann presented an overview of the OaklandFire Department, which has 24 engines and seven laddertrucks. He talked about Citizens Organized for Responseto Emergencies (CORE), which trains residents how toassist themselves and neighbors in the event of a majordisaster. He noted that a big change he has witnessed inhis nearly 30 years of service in Oakland is the differencethat technology has made in emergency response.

Following Deputy Chief Hoffman’s remarks, the groupreceived a tour of the fire station, dispatch center andemergency operations center �

Robin Gentz is director of government affairs at TheClorox Company, Joanne Karchmer is a governmentaffairs representative at the Port of Oakland, NikkiMendez is the director of membership at the Chamberof Commerce, and Tarik Scott is site director at BUILD.

� At Public Safety Day,one panel featured BishopBob Jackson (left), pastor ofActs Full Gospel Church; CityCouncilmember Noel Gallo;and former ChamberPresident Joe Haraburda(not shown).

by Robin Gentz, Joanne Karchmer, Nikki Mendez and Tarik Scott

> ENERGY summit

Event details“illuminating ideas: ENERGY & SustainabilitySummit” will be held from 8 a.m. to noon at theOakland Convention Center (550 10th St.) onWednesday, April 16 and will include breakfast withregistration. To secure your participation at thisexciting economic development event, please visitthe registration website today:http://business.oaklandchamber.com/events/details/economic-development-summit-2823.

Note: Many conference sponsorship packagesare still available; please email [email protected] for more information. �

Eleanor Hollander is the Chamber’s director ofEconomic Development.

– continued from page 1

February 2014 | 23

Keeping you connected and informed

> FEBRUARY3 | Oakland Young Professionals (OCYP)committee meeting|5:30 - 7 p.m.Spice Monkey Restaurant, 1628 Webster St.

6 | OCYP Lunch-n-Learn |noon - 1 p.m.“Making a Good Life Happen,” featuringJim and Bonnie Bell from BellInvestment

7 | East Bay Women inBusiness Roundtable luncheon|11 a.m. - 1:30 p.m.featuring Dr. Deborah Merrill-Sands,dean of the Lorry I. Lokey GraduateSchool of Business at Mills College.Discussing “Women in Leadership –What Does Gender Have to Do With It,”Waterfront Hotel in Jack London Square

12 | Ambassador Committeemeeting |noon - 1 p.m.

12 | Economic DevelopmentForum |3 - 4:30 p.m.featuring a discussion of the Port ofOakland Strategic Outlook and CapitalProgram Status with guest speakerJean Banker, the Port’s acting maritimedirector

13 | East Bay Women inBusiness Roundtablecommittee meeting|3 - 4:30 p.m.

18 | Nonprofit RoundtableCommittee meeting |2:30 - 4:30 p.m.

19 | Oakland Chamber Young Professionals Mixer|5:30 - 7:30 p.m.location to be announced

20 | Chamber 101 |7:30 - 9 a.m.learn how to maximize your Chamberbenefits. Free marketing andnetworking opportunities. Specialoffers available

27 | After Five Reception|5:30 - 7:30 p.m.Faz Restaurant, 1111 Broadway

28 | Inside Oakland BreakfastForum|8:30 - 10 a.m.

All events held at Chamber offices, 475 14th Street, unless otherwise noted. Call 874-4800 to confirm dates and times. Meetings are open to all Chamber members.

CHAMBER 101Maximize yourChamber benefits

| FEBRUARY 20

> MARCH3 | Oakland Young Professionals (OCYP)committee meeting|5:30 - 7 p.m.Spice Monkey Restaurant, 1628 Webster St.

12 | Ambassador Committeemeeting |noon - 1 p.m.

13 | East Bay Women inBusiness Roundtablecommittee meeting|3:30 - 4:45 p.m.

18 | Nonprofit RoundtableCommittee meeting |2:30 - 4:30 p.m.

20 | Chamber 101 |7:30 - 9 a.m.learn how to maximize your Chamberbenefits. Free marketing andnetworking opportunities. Specialoffers available

27 | After Five Reception|5:30 - 7:30 p.m.Golden Gate Fields Turf Club, a jointmixer with the Oakland Chamber YoungProfessionals, 1100 Eastshore Highway,Berkeley

28 | Inside Oakland BreakfastForum|8:30 - 10 a.m.

> APRIL4 | East Bay Women inBusiness Roundtable luncheon|11 a.m. - 1:30 p.m.“Small Business Innovators: Connectionwith Community,” featuring successfulsmall business owners – Angela Tsay(Oaklandish), Konda Mason (Impact HUBOakland), Erin Kilmer-Neel (SustainableBusiness Alliance & Oakland Grown),Anca Mosoui (Tech Liminal) and SarahFilley (PopUpHood), Waterfront Hotel inJack London Square

Economic Development ForumPort of Oakland strategic outlook

| FEBRUARY 12

WOMEN IN BUSINESSLUNCHEON| FEBRUARY 7Featuring Dr. DeborahMerrill-Sands

The purpose of the Oakland Metropolitan Chamberof Commerce is to promote commerce and industry,to advance economic growth and to enhance thequality of life in the city of Oakland.

OBR OAKLAND BUSINESS REVIEW (ISSN 1092-7220)is published monthly at $100.00 a year by the Oak-land Metropolitan Chamber of Commerce, 475 14thStreet, Oakland, CA 94612-1903. Membership duesinclude subscription. Periodicals postage at Oakland,CA. Contents can’t be reproduced without permis-sion. POSTMASTER: Send address changes toOAKLAND BUSINESS REVIEW, 475 14th Street,Oakland, CA 94612.

EditorHANK MASLER, (510) [email protected] | www.oaklandchamber.com

Design/Production EditorCARTER DESIGNS

The articles published in this publication do notnecessarily reflect the policies or opinions of the OaklandMetropolitan Chamber of Commerce.

EXECUTIVE COMMITTEEChair of the BoardSHANNON PEDDERBRAND: CREATIVE

Vice ChairMARK EVERTONWaterfront Hotel

DAN COHENFull Court Press

CHARISSA FRANKFMG Architects

DAVID TUCKERWaste Managementof Alameda County

ZACK WASSERMANEx Officio CorporateCounselWendel, Rosen, Black & Dean LLP

KEN WHITEFidelity Roof Company

Immediate Past ChairJOHN NELSONmurakami/Nelson

BOARD OF D IRECTORS

KIM ARNONEKatovich & Kassan LawGroup (representingWomen in BusinessRoundtable)

HARMINDER BAINSSecuritas

ALICIA BERTPG&E

ALISON BESTVisit Oakland

DAVE CANNONBarney & Barney LLC

GREG CHANEast Bay MunicipalUtility District

CYNTHIACHIARAPPAChildren’s Hospital& Research CenterOakland

JOHN DOLBYCassidy Turley

SOLOMONETS-HOKINColliers International

RON FORESTMatson NavigationCompany

JOHN GOODINGThe Quadric Group

STAN HEBERTCalifornia State University, East Bay

MICHAEL HESTERMcGuire & Hester

VICTORIA JONESThe Clorox Company

ISAAC KOS-READPort of Oakland

MICHAEL LEBLANCPICÁN Restaurant

BARBARA LESLIEAT&T

KEN LOWNEYLowney Architecture

KEN MAXEYComcast

IKE MMEJEAlta Bates SummitMedical Center

SAM NASSIFCreative HospitalityCorporation

NATHANIELOUBRE, JR.Kaiser Permanente

HILARY PEARSONSungevity

MARK PHILLIPSChase

CHUCK RAMANUJAMBank of America

MICKY RANDHAWAWells Fargo

KEITH TURNERSafeway

ELÑORA TENA WEBB,PH.D.Laney College

RICHARD WHITEFitzgerald Abbott &Beardsley LLC

JOSEPH HARABURDAPresident and CEO

AFTER FIVERECEPTIONFaz Restaurant

| FEBRUARY 27

Inside Oakland Breakfast Forum| FEBRUARY 28

Feb.27

No charge for Chamber members.$15 for non-members. 5:30 - 7:30 p.m.

After Five Reception

and Oakland ChamberYoung Professionals Mixer

1111 BroadwayStreet Level

> ENERGY summit– continued from page 1

24 | OBR Oakland Business Review | www.oaklandchamber.com

Small Business Development Center

> 2014 free seminar calendarEditor’s note: The following story is the first in a series of articles writtenby Gerry Baranano, who is principal of The RevLaunch Company, anentrepreneur in residence for the Tech Futures Group, and an AlamedaCounty Small Business Development Center (SBDC) business advisor. Theseries will cover the unique challenges companies face when introducinginnovative technology products to the marketplace.

> Introducing technology products to market

It all starts with understanding two things quickly: 1. The kind of technological innovation that you have; and, 2. The maturity level of your technological innovation –

whether you have a product or a technology.Tony Davila, in his book “Making Innovation Work,” has the

following innovation matrix, which is useful in answering the firstquestion.

Where your company’s technology innovation falls on this matrixdetermines which market introduction strategies and tactics will be

most effective in introducing your innovation to themarket. I will address the marketing needs of the upperright and left-hand corners of this chart because theseinnovations require new technologies.

As part of the upper right-hand corner, radicalinnovations are sometimes called discontinuous ordisruptive innovations. These types of innovationstypically come from new companies. Their challenge is to

disrupt existing markets, existing market relationships, andfundamentally change the game.

An example would be the iPod shuffle, which disrupted the entire

music industry and destroyed the portable CD player market.As part of the upper left-hand corner, semi-radical innovations are

sometimes viewed as breakthrough products. These represent a stepchange in performance and the value given to users. An examplewould be the iPhone, a huge improvement in terms of simplicity ofuse, computing power, and beauty. Existing clamshell-based phonescompeting on their small size or even the larger Palm Treoimmediately lost market share. Companies offering these phonesscrambled for several years to offer an iPhone-competitive phone.

The second question is to understand whether you have a“product” or simply a “technology.” A “product” incorporates yourtechnological innovation, its performance can be reliably repeated, ithas been tested, prototypes are available, and manufacturing hasbegun. In other words, you can give a sample to a customer today. Itmay be a prototype, but a customer can use it today.

A “technology” is still in a developmental stage. Typically it is stillin the lab and further research is required. There may be a “lab hero”

that works well on one bench but itsperformance cannot be repeated. Thesetechnologies are in still in the research andexperimentation phase. Technologies need to beintroduced to the market but in an entirelydifferent way from products.

For an innovation that is a “product,” youwant to meet with potential distributors,marketers to sell your product. For an innovationthat is in an earlier stage and still a “technology,”you want to meet with and “market” to technicalgroups in target companies, such as researchers

in the office of the chief technical officer. You may also attendresearch symposiums, technicalmeetings, standards bodies, andso forth.

In the next series of articles,I will cover how to choose andsegment a market, theimportance of positioning yourproduct, how to evangelize atechnological innovation, andgo-to-market strategies. �

For more information call (510)828-7243.

The following calendar of free seminars is presented by the Alameda CountySmall Business Development Center (ACSBDC). To register for any of the work-shops, visit www.acsbdc.org/events2. For free business counseling, visitwww.acsbdc.org.

Grow Your Business with Email and Social MediaWednesday, Feb 5, 2 p.m. Berkeley Public Library, 2090 Kittredge St., 3rd Floor Community Room, Berkeley Many businesses seek the right strategies and tactics to make their marketing effortseffective. But between Facebook, Twitter, email, mobile and coupons, thepossibilities can be overwhelming. In this seminar, you will learn: how to combineemail and social media; what to offer in a campaign; how to get your email opened,read, shared and socially visible; how to engage with your existing supporters andreach new prospects; how to establish good marketing goals.

Using Census Data to Get Funded Thursday, Feb. 13, 1 p.m. Oakland City Hall, Hearing Room #4, Oakland The market research section of your business plan can be a critical element forgetting debt or equity funding. But how can you get the hard data to back up yourintuition and assumptions? The Census Bureau website and database can provide thefacts you may need. In this workshop you will learn to use census data to: measurebusiness competition and market share, get population characteristics and othermarket data, create customized maps, examine potential site locations, analyze tradearea, examine trends for market planning and measure sales performance.

Meet the Lenders• Thursday, Feb. 20, 9 a.m. Fremont Library, 2400 Stevenson Blvd., Fremont • Wednesday, Feb. 26, 8 a.m.Dublin Public Library, 200 Civic Plaza, Community Room, Dublin• Wednesday, March 5, 2 p.m.Berkeley Public Library, 2090 Kittredge St., 3rd Floor Community Room, Berkeley This seminar is an interactive panel discussion with lenders offering advice in today'stough lending environment. You will learn how a wide range of banks and otherlending organizations evaluate your loan application and the types of funding theycan provide. This seminar provides an overview of how to get “capital ready” toinsure a greater chance of success. Panelists to include a micro lender, 7a lender, 504lender, alternative financing lender, and the SBA.

Successful Business PlansThursday, March 6, 9 a.m.Fremont Library, 2400 Stevenson Blvd., Fremont This seminar is a building block for any small business owner or entrepreneur insearch of a simple and sure-fired way to understand the fundamentals of writing anexcellent business plan for their specific business. The business plan is thefoundation for profitable growth, raising capital, communicating with employees,vendors and customers. Without one, the business simply isn't being well managedand won't be successful. This seminar is a must for business in all industries, of alltypes and at all stages of development.

Starting a Business Wednesday, April 2, 2 p.m.Berkeley Public Library, 2090 Kittredge St., 3rd Floor Community Room, Berkeley This seminar discusses several elements necessary for starting a successful newbusiness. These elements include: business planning, accessing capital, legal,technology, and human resource issues. Understanding these issues is critical tobeing a successful entrepreneur. A must for anyone interested in starting a businessand is designed to work in concert with other Alameda County SBDC seminars. Therewill be a panel discussion as part of the program and time for networking at the end.

Social Media Monday, April 21, 6 p.m. Fremont Library, 2400 Stevenson Blvd., Fremont In the Social Media for Small Business course you will learn the importance of socialnetworking as an integrated marketing tool for your business. Are you curious aboutall the buzz surrounding social media but not sure where to start, and not sure if it’sworth the time and effort? Find out how to market your business using socialnetworking tools, such as Facebook, Twitter, Yelp, and LinkedIn. Learn how toestablish a true dialogue with your customer base. This course will help you decidethe best social networking tools to use in a business context, and how to leverageexisting social networks to market your business. �

To learn more about the business counseling, technicalassistance, seminars,online courses andother services offeredby the ACSBDC, visitwww.acsbdc.org.

by Gerry Baranano

Gerry Baranano

New

Near to theExisting

Near to theExisting

New

Innovation Matrix

Business Model

Terchnology RadicalSemi-Radical

Semi-RadicalIncremental

oakland business review february 2014

Documents

new ceo

onboarding of interim

samewith permanent ceo

energy sustainability

interim ceo dan quigley

event registration

executive searchcommittee

chair uponentering