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GILROY september 09 VOLUME 28 NUMBER 08 A PUBLICATION OF THE GILROY CHAMBER OF COMMERCE Business Showcse 10th Breakfast Club 16th Networking Cafe 23rd Member Briefing 30th Details on page 12 business September Chamber Events: Health Care Reform takes center stage T he Santa Clara County Chambers of Commerce Coalition presented an overview of the current state of healthcare and issues at their August meeting at the Santa Clara Convention Center. President/C.E.O., Susan Valenta, provided a recap of the McKinsey Global Institute report that was completed in 2007 and updated again in 2008. The McKinsey Global Institute was founded in 1990 and is an independent economics think tank within McKinsey & Company whose primary purpose is to undertake original research and develop substan- tive points of view on critical economic issues facing businesses and governments around the work. Valenta noted, “The access to quality healthcare is important; however, how that is achieved does not come with easy solutions, and having an unbiased set of research information helps to defray myths generated by fear and anger.” Health care data was collected and compiled for the McKinsey Global Institute by the Organisation for Economic Co-operation and Development (OECD), using data from 13 OECD peer countries. Using the data from those 13 OECD peer countries, the McKinsey Group developed a measure they called Estimated Spending According to Wealth (ESAW) that adjusted health care spending according to per capita Gross Domestic Product (GDP). What the report found was that in 2006, the United States spent $2.1 trillion on health care, or more than twice what the U.S. spent on food (16% of GDP). In addition, the U.S. spent nearly $560 billion more on health care than peer OECD counties, even after adjusting for wealth. Other findings the report uncovered included: Outpatient care, which includes same-day hospital visits and is by far the largest and fastest-growing part of the US health system, accounts for $436 billion, or two-thirds of spending above what would be expected. US hospitals have a strong financial incentive to provide elective outpatient care, and this mode of care delivery ac- counts for a significant portion of hospital profits. Many patients are insensitive to price – on average, patients’ out-of-pocket expenses for outpatient care represent only 15% of total expenditures. Drugs, health administration and insurance, investment in health, and inpa- tient care are responsible for $279 billion in spending above expected. Business Showcase There are plenty of reasons to attend this year’s Business Showcase “Ticket to Success” with free parking, the beautiful venue at Gilroy Gardens, and businesses from bookkeepers to car dealerships all in the Garden Pavilion. A spectacular showcase of products and services offers something for everyone! Mark your calendar and join the business community at our largest tradeshow at Gilroy Gardens, September 10, from 4 - 7:30 p.m. Call the Gilroy Chamber of Commerce at 408- 842-6437 or email [email protected] for more information. Roof bid awarded to Affordable Roofing Major roof repairs on the Gilroy Chamber of Commerce head- quarters began on August 21. Affordable Roofing, a long-time Chamber member, was award- ed the bid following an open process to Chamber members. Completion of the project is esti- mated for September 4. Investing in a new 10-year roof underscores the Chamber Board’s commitment to maintaining the integrity of the member’s facility to ensure the highest and best use of the building. Chamber Board recom- mends re-schedule of directory Given the economic climate, the Gilroy Chamber of Commerce Board of Directors voted at the August Board meeting not to publish a member’s business direc- tory at this time. The Chamber encourages and supports all local business to take advantage of the free and low cost marketing strat- egies available through the Gilroy Chamber of Commerce. Citizen and Business Award nominations Nominations for the 2009 Citizen and Business awards are currently underway. The annual community event spotlights indi- viduals and businesses that have contributed to Gilroy’s greatness. This year’s categories include the 2009 Man and Woman of the Year, the 2009 Small and Large Business of the Year, the 2009 See Award, continued on page 11 Long-term and home care and durable medical equipment is $72 billion less than expected which is due to higher out-of-pocket costs for patients who rely on their own wealth to finance long-term care, nursing home facilities compete with each other on price, among other factors, to attract residents. Unfortunately, with the higher cost spent on healthcare in the U.S., the health of the population does not explain higher health care costs with the U.S. reporting lower life expectancy and higher infant mortality in comparison with the 13 OECD countries. And, perhaps one of the most defining factors in the healthcare reform debate is that, although the U.S. is a wealth nation, there are 45 million people without health insurance. The financial impact of healthcare – or the lack of it – is responsible for an estimated one-half of bankruptcies. To the credit of the U.S., some of the best hospitals in the world are located in this country, cutting-edge drugs and treat- ments are available earlier, and the waiting times to see a physician tend to be lower. Underlying discussions: who pays for the burden of healthcare? According to the McKinsey report, “Overall, health care consumers’ average direct out-of-pocket See Reform, continued on page 5

Gilroy Chamber of Commerce Focus, Sept 2009

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Page 1: Gilroy Chamber of Commerce Focus, Sept 2009

GILROY FOCUS

sept

embe

r 09

VOLUME 28

NUMBER 08

A PUBLICATION OF THE GILROY CHAMBER OF COMMERCEBusiness Showcse 10th

Breakfast Club 16th

Networking Cafe 23rd

Member Briefing 30th

Details on page 12

business September Chamber Events:

Health Care Reform takes center stageThe Santa Clara County Chambers

of Commerce Coalition presented an overview of the current state

of healthcare and issues at their August meeting at the Santa Clara Convention Center.

President/C.E.O., Susan Valenta, provided a recap of the McKinsey Global Institute report that was completed in 2007 and updated again in 2008. The McKinsey Global Institute was founded in 1990 and is an independent economics think tank within McKinsey & Company whose primary purpose is to undertake original research and develop substan-tive points of view on critical economic issues facing businesses and governments around the work. Valenta noted, “The access to quality healthcare is important; however, how that is achieved does not come with easy solutions, and having an unbiased set of research information helps to defray myths generated by fear and anger.”

Health care data was collected and compiled for the McKinsey Global Institute by the Organisation for Economic Co-operation and Development (OECD), using data from 13 OECD peer countries. Using the data from those 13 OECD peer countries, the McKinsey Group developed a measure they called Estimated Spending According

to Wealth (ESAW) that adjusted health care spending according to per capita Gross Domestic Product (GDP).

What the report found was that in 2006, the United States spent $2.1 trillion on health care, or more than twice what the U.S. spent on food (16% of GDP). In addition, the U.S. spent nearly $560 billion more on health care than peer OECD counties, even after adjusting for wealth.Other findings the report uncovered included:

• Outpatient care, which includes same-day hospital visits and is by far the largest and fastest-growing part of the US health system, accounts for $436 billion, or two-thirds of spending above what would be expected.

• US hospitals have a strong financial incentive to provide elective outpatient care, and this mode of care delivery ac-counts for a significant portion of hospital profits.

• Many patients are insensitive to price – on average, patients’ out-of-pocket expenses for outpatient care represent only 15% of total expenditures.

• Drugs, health administration and insurance, investment in health, and inpa-tient care are responsible for $279 billion in spending above expected.

Business ShowcaseThere are plenty of reasons to attend this year’s Business Showcase “Ticket to Success” with free parking, the beautiful venue at Gilroy Gardens, and businesses from bookkeepers to car dealerships

all in the Garden Pavilion. A spectacular showcase of products and services offers something for everyone!

Mark your calendar and join the business community at our largest tradeshow at Gilroy Gardens, September 10, from

4 - 7:30 p.m. Call the Gilroy Chamber of Commerce at 408-842-6437 or email [email protected] for more information.

Roof bid awarded to Affordable RoofingMajor roof repairs on the Gilroy Chamber of Commerce head-quarters began on August 21. Affordable Roofing, a long-time Chamber member, was award-ed the bid following an open process to Chamber members. Completion of the project is esti-mated for September 4. Investing in a new 10-year roof underscores the Chamber Board’s commitment to maintaining the integrity of the member’s facility to ensure the highest and best use of the building.

Chamber Board recom-mends re-schedule of directoryGiven the economic climate, the Gilroy Chamber of Commerce Board of Directors voted at the August Board meeting not to publish a member’s business direc-tory at this time. The Chamber encourages and supports all local business to take advantage of the free and low cost marketing strat-egies available through the Gilroy Chamber of Commerce.

Citizen and Business Award nominationsNominations for the 2009 Citizen and Business awards are currently underway. The annual community event spotlights indi-viduals and businesses that have contributed to Gilroy’s greatness. This year’s categories include the 2009 Man and Woman of the Year, the 2009 Small and Large Business of the Year, the 2009

See Award, continued on page 11

• Long-term and home care and durable medical equipment is $72 billion less than expected which is due to higher out-of-pocket costs for patients who rely on their own wealth to finance long-term care, nursing home facilities compete with each other on price, among other factors, to attract residents.

Unfortunately, with the higher cost spent on healthcare in the U.S., the health of the population does not explain higher health care costs with the U.S. reporting lower life expectancy and higher infant mortality in comparison with the 13 OECD countries. And, perhaps one of the most defining factors in the healthcare reform debate is that, although the U.S. is a wealth nation, there are 45 million people without health insurance. The financial impact of healthcare – or the lack of it – is responsible for an estimated one-half of bankruptcies.

To the credit of the U.S., some of the best hospitals in the world are located in this country, cutting-edge drugs and treat-ments are available earlier, and the waiting times to see a physician tend to be lower.

Underlying discussions: who pays for the burden of healthcare? According to the McKinsey report, “Overall, health care consumers’ average direct out-of-pocket

See Reform, continued on page 5

Page 2: Gilroy Chamber of Commerce Focus, Sept 2009

Page 2 Gilroy Business Focus • www.gilroy.org September 2009

Chamber of Commerce

officersCHAIRMAN Of THE BOARD DAVID BOLL • Heartwood Cabinets

PAST CHAIRMAN SUSAN MURPHEY PATEREAU• Intero Real Estate Services

CHAIRMAN Of THE BOARD-ELECT GREGG GIUSIANA • Retired Police Chief

SECRETARY/TREASURER ALAN LADD • Heritage Bank of Commerce

VC OPERATIONS & DEVELOPMENT MARY HUMPHREY Seledon, Vanni, Humphrey, & Kawafuchi, CPA’s

VC PUBLIC AffAIRS TIM DAY • Beneficial Financial Services

VC BUSINESS PROGRAMS & SERVICES CHAR MARRAZZO • Edward Jones Investments

VC MARKETING & COMMUNICATIONS JOAN LEWIS • COSTCO board of directors BARBARA ORTH • I fIT financial Services JAN PEAT • McDonald’s of Gilroy LETICIA CLAY • South Valley National Bank KATHERINE FILICE • Articulate Solutions chamber staff Susan Valenta • President/CEO Michelle Garcia Chris Bevilacqua Rosie Vogel Administrative Assistants Sue Thurman Business Relationship Manager

visitors bureau staff Jane Howard • Executive Director Pam Gimenez • Office Coordinator

edc staff Richard Zahner • President/CEO Pamela Guerra • Administrative Assistant

http://www.gilroy.org E-mail: [email protected] Phone: (408) 842-6437

to reach the chamber:

Chairman of the Board Message

SUSAN VALENTA,President/CEOGilroy chamber of commerce

david boll, 2009 Chairman of the BoardGilroy Chamber of Commerce

What a great Garlic festival we had this past July. I am so pleased with this year’s turnout

of both visitors and volunteers. Thanks to all of you who came out and made the beer concession not only possible, but really fun and a huge success. Hundreds of you showed up with your smiles, great attitudes, energy and made it all happen. There really is a spirit of working together at the festival that is infectious and very special. Where else do we get a chance to throw a party for 100,000 people? Kurt Jacobsen, our beer committee chairman did a fantastic job. I can’t think of a better person to lead this enormous undertak-ing. Calm and pragmatic throughout the whole process; we all owe Kurt a big, big thank you – great job!

There is construction going on at the Chamber building again. Hopefully, not too much dust is falling down on everyone’s desks. The major roof repair tbeing done by our member company,

Kudos for a job well done

Keeping $circulatingin community

Affordable Roofing, is the culmination of the new purchasing policy put in place by the Chamber Board earlier this year. for major purchases, our intent is to have an open competitive bidding process that also recognizes the desirability of giving business to our members. I am happy to report that both goals were achieved in awarding the project to Affordable Roofing. By making sure that we get the best price possible, the board satisfies its responsibility to use the Chamber’s resources efficiently and effectively. By awarding the job to a member, we keep the dollars circulating in our community. It is definitely a win – win.

It is time to start thinking about our annual Citizen and Business Awards. We need your help with nominations. We want to have the widest possible outreach and participation this year in order to find those special people and businesses wor-thy of recognition. Please call the chamber office and request a nomination form.

These are challenging times for everyone, especially businesses. Now, more than ever, chambers

of commerce are critical to supporting the marketing efforts of our members. The consumer is still spending their valuable dollars, but they are being very selective.

To stay one step ahead of the game, businesses need to be center stage when it communicates that it is open for busi-ness. And with marketing dollars so pre-cious, there are some very affordable (and free) ways to give that clear message in September:

• On September 10, the annual trade show – Ticket for Success will have 3½ hours of solid one-on-one time. Anyone who attends and does not have a stack of business cards to distribute and an eleva-tor speech prepared is missing a golden opportunity.

• On September 16, the Breakfast Club will have 1¼ hours of network time. There is a promotions table in the lobby set up every month for everyone to place materials and a room full of people

President Message

Staying one step ahead of the gamewanting to connect their business with yours.

• On September 23, the Network Café will have 1½ hours with people who love to exchange business leads.

• On September 30, the Member Briefing will have another 1½ hours with people who not only want to exchange business leads, but want to learn more about the Chamber’s marketing program.

• The Gilroy Business Focus offers mem-bers free promotional in the “What’s New With Business” column. All that is needed is to send a quick e-mail to Sue Thurman at [email protected]. Watch for the reminder in our weekly e-news.

• The front lobby of the Chamber is a prime location for brochures and your business cards. This is your chamber of commerce – and your business is our business.

• The website www.gilroy.org has a direc-tory of our businesses with a free hyper-link to your own website.

Businesses Need to be Center stage

See Game, continued on page 11

Page 3: Gilroy Chamber of Commerce Focus, Sept 2009

September 2009 Gilroy Business Focus • www.gilroy.org Page 3

Jane howard,executive directorgilroy visitors bureau

News from the Gilroy Visitors Bureau

Fun Eventsat Our Local Wineries

RICHARD ZAHNER,PRESIDENT/CEOGILROY ECONOMIC DEVELOPMENT CORPORATION

GilroyOpen for Business

California — A Great place to start a Business

Did you know September is California Wine Month? Checking with our local Wineries of Santa Clara Valley, I found several wineries have special celebrations/discounts during the month of September. Following are several already confirmed:

The recession we are experiencing makes continuing a profitable business a challenge. Starting a

new venture in Gilroy may seem much harder, but there is good reason to believe that Northern California, and a city as well situated as Gilroy, is a great place to put new ideas to work. Brian McGowan, Deputy Secretary of the State Business, Transportation and Housing Agency, recently made the case for our state high-lighting the unique advantages of loca-tion, infrastructure and workforce. Several of his observations are summarized in the following:

• California’s strength lies in the size, diversity, and adaptability of its economy as well as in the talent and range of its population. The state’s quality of life is unmatched and it boasts many unique assets that inspire innovation and creativ-ity, and foster entrepreneurialism. New ideas are a natural part of life in the

Golden State. California supports creativ-ity with a superior educational system and job training that produces an unrivaled, highly skilled labor force.

• California is second to none when it comes to Research and Development and Venture Capital investment. In 2007, forbes.com announced that California led all states in the categories of “200 Best Small Companies” and “fastest-growing Tech Companies.” In addition, in June 2008, 52 California companies were ranked among fortune Magazine’s presti-gious fortune 500 list of America’s largest corporations. Another recent fortune Magazine article listed four California companies among the top ten best com-panies to work for in the United States.

• Our state executives understand that inaction does not keep California in the lead and that there is always room for improvement. for this reason, Governor

Schwarzenegger negotiated an eco-nomic stimulus package in this year’s budget to enhance California’s busi-ness environment while helping busi-nesses weather this difficult economy. The budget includes provisions such as the elective single sales factor to help level the tax playing field for California businesses; the “new hire” tax credit to reward California busi-nesses who are hiring when we need it most; and, to streamline the California Environmental Quality Act permitting standards, expediting projects and gen-erating jobs. The State of California will continue to invest in infrastruc-ture, encouraging innovation and pro-moting national economic growth.

In Gilroy our challenge is to take advantage of these state programs and match ideas and opportunity with incentives to build a new, vibrate econ-omy for the benefit of all our citizens.

See Tourism, continued on page 8

Clos LaChancefamily-owned, Old World European-inspired winery and hospitality center, Clos LaChance is celebrating California Wine Month offering a complimentary Premium Tasting and a 10% discount on your visit to Clos LaChance Winery when you bring this article with you. Mention California Wine Month and get a free VIP Tour and Tasting for two on your next visit. for more information visit www.clos.com.

Sycamore Creek VineyardsCelebrate California Wine Month on Saturday, September 19th with a “Harvest, Grape Stomp, Barrel Tasting, Live Music, BBQ” from 1 – 5 p.m. Mention California Wine Month and receive $5 off general admission and an additional 10% off any current discount offers on wines including the newly released 2007 Estate Chardonnay and 2007 Pinot Noir. Visit www.sycamorecreekvineyards.com for additional information.

Monte Verde VineyardsCelebrate the “Joys of Wine in the

Vineyard” all weekends of September. Picnic tables will be placed throughout the vineyard for visitors to come and pic-nic and taste the Spanish-influenced wines served with Tapas. Old world charm paired with award winning wines. for more information visit www.montever-devineyards.com.

Hecker Pass WinerySpecial offers during the month of September include 30% discount on each case of wine purchased/15% discount for every six bottles purchased. Also, in September visit the tasting room open seven days a week to enjoy the new releas-es including 2003 Zinfandel and 2004 Chianti. Visit www.heckerpasswinery.com for more details.

Continuing with the subject of wine, a reminder the weekend of October 3 - 4, 2009 is Passport Weekend sponsored by the Wineries of Santa Clara Valley. Sample award-winning wines and experi-ence VIP treatment as you travel through-out the Santa Clara Valley enjoying special activities such as barrel tasting, music,

antipasti and BBQ’s at various winer-ies. for additional Passport Weekend information visit www.gilroyvisitor.org or call 842-6436. Don’t miss this very special fall event in the oldest continuous wine producing region in the state, Santa Clara Valley.

On a closely related topic to wine, preliminary results from California’s first statewide economic survey of agritourism operators conducted by a group of researches from throughout University of California Cooperative Extension and the UC Small farm Program support the long-held notion that agritourism can be a profitable supplement to a farm or ranch busi-ness. A total of 554 responses were received from the nearly 2000 surveys originally mailed in January, 2009 to existing Agritourism businesses and participants from UC-sponsored Agritourism workshops.

The survey aimed to quantify the size and profitability of California’s

Page 4: Gilroy Chamber of Commerce Focus, Sept 2009

Page 4 Gilroy Business Focus • www.gilroy.org September 2009

G iven the tide of the increasingly restrictive regulatory climate, it has become important now more than ever for the business community to leverage lines of direct communication with clients, customers, the

public, media, business and trade associations, elected officials and beyond. Several tools and venues have emerged in recent years including e-newsletters, blogging, using social media venues such as YouTube, MySpace, faceBook, Twitter and posting comments directly in chat rooms and on media outlet websites.

Especially when it comes to regulatory proposals, the business community is notorious for weighing in on the last minute, traditionally in opposition. These viral communication outlets offer the opportunity to directly communicate wants, needs and concerns — your story. By establishing this direct contact, one establishes an intimate relationship with a greater and growing network, improv-ing chances for success, if even to lessen an impact.

Impending legislative activity on the federal level for health care reform, on the state level for taxation, and locally on environmental and political issues offers an excellent opportunity to become engaged.

for example, on the state level, major business organizations, including the California Chamber of Commerce, have expressed strong concern and opposition to several items included as part of the latest “tax package” being considered by a special state tax commission.

Governor Arnold Schwarzenegger created the Commission on the 21st Century Economy last fall and asked it to examine how the volatility of state revenues related to California’s tax structure. Business and other observers have raised concern that the commission is straying from that assignment. The menu of proposed tax changes the commission will consider at a meeting in September includes proposals geared toward increasing revenues rather than addressing vola-tility and a new approach to taxation that lacks details which can be analyzed:

A “split roll” property tax for non-residential property. This proposal by Commissioner fred Keeley, current 2 Cruz County treasurer and former Assembly member (D-Boulder Creek), increases property taxes by removing Proposition 13 protections from non-residential properties, which would amount to a tax increase of up to $7.5 billion on employers, based on figures from the state Board of Equalization.

An energy tax that raises the price of gasoline and California-produced crude oil. This Keeley proposal seeks to change individuals’ behavior to promote environmental goals by levying a “pollution tax.” If the proposal had been in effect over the last year, it would have cost California motorists billions of dollars more in additional gasoline taxes and millions more in new taxes on domestically produced crude oil.

A new “business net receipts” tax and related changes to the existing tax structure.Proposed by commission Chairman Gerald Parsky, a Los Angeles businessman appointed by the Governor — typically a business net receipts tax is a type of value-added tax in which companies are taxed on total receipts minus all purchases from other firms. The intent behind this new tax is to bring a large category of services businesses into the tax base. No specific proposal has been released for comments, however.

The CalChamber and others are pointing out that it is impossible to evalu-

ate the impact of a business net receipts tax on the California economy and jobs until the commission has provided a clear, specific written proposal; provided an analysis of the policy, operational and transitional implications of the new tax; and given an opportunity for California businesses and economic experts to respond to the proposal and analysis.

Last month, the Governor extended to September 20 the deadline for the commission to present its findings and said he intends to call a special session of the Legislature afterwards to consider the commission’s recommendations.

Economic Recovery KeyCalChamber and business community have consistently stated that the solution to California’s revenue problems will come only from robust economic growth and job creation.

The proposed “split roll” property tax and energy tax would be extremely detrimental to the state’s economy. Proceeding with dramatic changes to the tax structure associated with adding a business net receipts tax to the mix is risky and inappropriate without first fully determining their impact on California jobs and the economy.

Action NeededThe CalChamber is urging members to join the effort to urge the commission to reject the “split roll” and energy taxes and to further study the business net receipts tax before making recommendations to the Governor and Legislature.

Going viral in times of uncertaintyby Kristina Chavez Wyatt, Meridian Pacific, Inc./Chairman, Government Relations Committee

Representing the Interest of Business With Government

Impending legislative activity on the federal level for health

care reform, on the state level for taxation, and locally on

environmental and political issues offers an excellent

opportunity to become engaged.[

Page 5: Gilroy Chamber of Commerce Focus, Sept 2009

September 2009 Gilroy Business Focus • www.gilroy.org Page 5

expenditure is relatively low and indeed has declined from 47% in 1960 to 12% in 2006. Conversely, private health insurance’s share of total costs increased from 21% to 35% and government’s share of health care expenditure doubled during the same period from 25% to nearly 50%.”

In the 2007 Study: How stakeholders can participate to improve the US health care system, the following stakeholders were identified along with the role they could potentially play in the overall solution.

Regulators: Regulators should take a broad view of health care reform in the US and strive to address a number of entangled issues through a combination of promoting awareness, creating financial incentives, and (if necessary) issuing mandates or taking direct action. It is important for regulators to focus on both supply and demand to reduce unintended consequences.

Employers: As the bearers of much of the high cost of health care, employ-ers could play a more active role in managing health care costs. This is best performed by exerting pressure on payors and benefits administrators to demine and maximize value and value consciousness. Employers are perhaps best posi-tioned to shape efforts to promote transparency and value-based reimbursement systems.

Patients: Patients should seek to become more value conscious, as health ben-efits increasingly become more consumer-directed, and take a more active role in their care and health.

Physicians: Physicians are the key intermediary in matching supply and demand. Among the players in the health care system, physicians possess the knowledge regarding the important/relevance of tests, drugs, and imaging.

Providers: Providers should strive to create value by improving productivity, effectively monitoring and managing operating variations, and consolidating to create efficiencies of scale when feasible.

Payors: Payors can support system reform by designing products that favor value-conscious behavior on the part of patients and leveraging their existing data to help consumers efficiently identify high-value provides and treatment options.

According to the report, “The principal issues that account for high and ris-ing costs are widespread within the US health care system, and if they are not addressed in broad terms, health care spending growth is likely to continue unabated.”

The report further states, “US health care spending will rise to $4.3 trillion by 2017 – posting an average annual growth of 6.7% over the next decade, all by certainly exceeding GDP growth. The Congressional Budget Office projects that, in the absence of changes in federal law, total spending on health care would increase from 16% of GDP in 2007 to 25% in 2025 and 49% in 2082. It also estimates that federal spending on Medicare and Medicaid would rise from 4% of GDP in 2007 to 7% in 2025 and 19% in 2082.”

References:

Accounting for the Cost of Health Care in the United States (January 2007) – McKinsey & Company

Accounting for the cost of US healthcare: A new look at why Americans spend more (December 2008) – Executive Summary – McKinsey & Company

Dave Villar, Broker-Owner

September 10, 2009 Gilroy Gardens 4PM-7:30PM

18th Annual Gilroy Chamber of Commerce Business Showcase

Join us for the 18th AnnualGilroy Chamber of CommerceBusiness Showcase

Thursday, September 10, 2009Gilroy Gardens from 4PM – 7:30PM3050 Hecker Pass Hwy

Premier Sponsors First Class SponsorsBest Western Forest Park InnSouth Valley National BankSeledon Vanni Humphrey& Kawafuchi, CPA’sGolden1 Credit Union

In-Kind SponsorsArticulate Solutions • Gilroy DispatchOut & About • CMAPA Festive Affair • Stages Unlimited

It’s just the ticket you need to build business!

This is a great opportunity to learn and connect with local businessesin southern Silicon Valley—in a casual, creative, and fun environment!

Going viral in times of uncertainty Reform continued from page 1

Page 6: Gilroy Chamber of Commerce Focus, Sept 2009

Page 6 Gilroy Business Focus • www.gilroy.org September 2009

Gilroy Chevrolet Cadillac is home to the $5 oil change on all domestic makes and models, and together with their fine line of new and used vehicles, the dealership is a genuine one-stop shop. As sponsor of the August Breakfast Club, Site Manager, Troy Pelzl, touted the benefits of the Cash for Clunkers program to stimulate new car sales, and shared experiences by many dealerships throughout the country in get-ting reimbursements.

Breakfast Club attendees tested their driving skills with remote-control cars and an improvised race track in the Hilton Garden Inn dining area. Justin Zimmerman, the auto shop instructor at Gilroy High School, was the top “racer” and won a valuable certificate from Gilroy Chevrolet Cadillac.

Gilroy Chevrolet Cadillac is located at 6720 Bearcat Court in Gilroy. Contact them at 408-842-9301 or go to www.gilroychevy.com or stop by the dealership and meet the friendly, professional staff.

Gilroy Chevrolet Cadillac: Troy Pelzl, GM, Lee Liberatore, Mike Dionne, Ray Diaz

New MembersGilroy Chevrolet Cadillac sponsors August Breakfast Club Boynton Electric

Power Pros1485-B Villa Real Drive Gilroy * 842-4111Electricians

Farmers Insurance District Office835 Blossom Hill Road, Ste. 101 Gilroy • 440-5125Insurance Services

Heartland Payment SystemsGilroy • 595-6090Business Services

Home Depot8850 San Ysidro Gilroy • 847-7712Home Improvement

Pacific Coast Benefits, LLC.7970 Princevalle Street Gilroy • 847-1000Insurance Services

Preete Bhanot, M.D. Inc.18550 De Paul Dr. Ste. 207 Morgan Hill • 782-2515Physicians

Mike TernaskyGilroy • 848-3046Individual

Thank You

NEW MEMBER: Thane Boynton, Boynton Electric/Power Pros

receives membership plaque from Sue Thurman, Business Relationship Manager,

Gilroy Chamber of Commerce.

August Breakfast Club

Gilroy Chevrolet CadillacJoyce’s Collectiblesfortino’s WineryIfit financialThe Nimble Thimble at Garlic City MercantileExtreme WirelessRabobank

August After Hours Mixer

Joyce’s Collectiblesfortino WineryRabobankHarry & DavidBruce’s Tire

RACE CAR DRIVERS: (l-r) Thane Boynton, Power Pros, Justin Zimmerman, GHS Auto Instructor, Kurt Michielssen, South Valley National Bankrace to the finish line during the August Breakfast Club.

Page 7: Gilroy Chamber of Commerce Focus, Sept 2009

September 2009 Gilroy Business Focus • www.gilroy.org Page 7

Member Renewals The Gilroy Chamber of Commerce is made up of over 700+ individuals and businesses offering quality prod-ucts and services. Stop by and visit these members and let them know that they are appreciated for their invest-ment in our community, for generating sales tax revenues, for providing jobs, and for overall supporting the high quality of life Gilroy enjoys.

20 years & overfritter & Schulz Physical/ Occupational TherapyGilroy LibraryHatch Mott McDonaldRound Table PizzaSouth Valley National Bank

15 years & overColdwell Banker, Brad BannisterEl Camino PackingInfoPower CommunicationsJohn Blaettler Accountancy Corp.Paymaster Payroll ServiceTanglewood Construction, Inc.

10 years & overHeadstart Nursery, Inc.Heritage Bank of CommerceIntero Real Estate Services, Susan PatereauManpower Staffing Servicesfaith Protsman, M.D.

5 years & overCommercial Construction Services, Inc.Gavilan Employers Advisory CouncilGilroy Hispanic Chamber of CommerceGuy’s Heating, Air Conditioning & Sheet MetalHello Gorgeous SalonIntero Real Estate Services, Rick PatereauPalace Art & Office SupplyPhase I Language LearningRom’s Auto ServiceStudio ThreeWellington Corp. of Northern CaliforniaWells fargo Bank, Stacie Moreno

Fortino Winery hosts August MixerSituated in one of the finest wine growing regions of Northern California, Fortino wines are 95% Estate grown on their Gilroy and San Martin vineyards. In Gilroy, their 80 year-old Carignan’s roots descend over 40 feet down into the rocky, sandy soil in the dry-farming method, with no trellis to support them. The vines truly represent the history and effort man and nature put into the Fortino fine wines.

Hosting of the August Mixer, Gino Fortino, brings the knowl-edge of the winery business with a penchant for hospitality his parents, Ernie and Marie Fortino, have long inspired in their family-owned business.

Fortino Winery offers a number of special events and parties that run the gamut from a “Girls Night Out” to Private Tastings for their Wine Club members. Gino is an accomplished chef, and brings food and wine together to make every Fortino experi-ence memorable.

Fortino Winery is located at 4525 Hecker Pass Highway, or visit them on their website www.fortinowinery.com.

ABOVE: Angela & Emilio De Sousa with Ernie Fortino, and Lee Rodriquez, Fortino Winery, in the foreground.

LEFT: Dawn Anderson and Jill Fortino, Fortino Winery

David Boll, 2009 Chairman of the Board, presents the Nob Hill Foods Good Egg award to Janet Byrd in recognition of her class at Gateway School. The class is made up of post second-ary students from the ages of 14 to 22 years old and they pick up litter along the downtown areas on a volunteer basis.

Janet Byrd’s Gateway School Class are Good Eggs

The Nob Hill foods “Good Egg” award was pre-sented by 2009 Chairman of the Board, David Boll (Heartwood Cabinets) to an outstanding

teacher and an equally outstanding group of students who are making a difference in our community – Janet Byrd and the class she teaches at Gateway School in Gilroy.

Janet Byrd’s class is made up of post secondary stu-dents from the ages of 14 to 22 years old. They have various disabilities, and many are diagnosed as autistic. But those challenges do not get in the way of volunteer-ism and pride of community. Janet Byrd’s class picks up trash along various streets in the downtown area. They walk the route – rain or shine – every day that school is in session. Motorists often show their appreciation with a wave or a honk.

Boll stated, “Local police have even stopped to thank them for doing such a great job. This service has been a generous donation of the time of these students, and they are truly appreciated by the community and by the Gilroy Chamber of Commerce.”

The Nob Hill foods Good Egg award is presented each month to an individual, group, business, or organi-zation which makes Gilroy a great place to live and work. for information on submitting a nomination, contact the Chamber at 842-6437 or e-mail [email protected].

Page 8: Gilroy Chamber of Commerce Focus, Sept 2009

Page 8 Gilroy Business Focus • www.gilroy.org September 2009

Agritourism community and to better understand the goals and needs of Agritourism operators in order to develop useful educational programs and informa-tion. Researchers will continue to analyze the data in the coming months with further results published in academic journals. More extensive preliminary results of the sur-vey are available for viewing online at http://ucanr.org/agtour/prelim-results.pdf.

finally, I encourage you to join facebook and sign up as a fan of the Gilroy Visitors Bureau. By doing so you will receive regular reminders of events and ideas about what to do and see in the area. Go to www.gilroyvisitor.org and click on facebook.

Tourism, continued from page 3

This Month the Gilroy Chamber of Commerce Features: Restaurants & Dining

Looking for someone? There’s a good chance they are eating at the local hang-out and restaurant, O.D.’s Kitchen, enjoying a meal prepared by chefs Brian and Michael O’Donoghue. Carrying on the family tradition and busi-

ness, O.D.’s Kitchen provides fresh and delicious meals at a fair price. Brian and Michael, along with their brother Mark, are continuing their parents’ dream that began in the same location over 20 years ago.

Mom, Diana, currently takes care of the restaurant’s bookkeeping but has reduced her hours to part-time, leaving the boys to fine-tune their chef and man-agement skills. Brian has been overseeing the breakfast and lunch crowds while Michael prepares the dinner offerings. Breakfast is served all day, lunch after 11:30 a.m. and dinner after 5 p.m. The dinner menu includes their popular grilled steaks (hand-cut by Brian); salmon with Mike’s special lemon-butter sauce; pork chops, chicken and pasta, and fresh home-made gravies and sauces.

Become a fan and join the locals at O.D.’s Kitchen, 28 Martin Street in his-toric downtown Gilroy. Open Monday and Saturdays, 8 a.m. to 9 p.m.; Tuesday through friday, 7 a.m. - 9 p.m.; and Sunday 8 a.m. to 2 p.m.

Industry Highlight

O.D.’s Kitchen celebrating 20 years in downtown Gilroy

O.D.’s crew, Santana, Rudy, Juan, Diana, Brian, Raylene and Esmerelda take a short break from their busy downtown restaurant to pose for our photographer.

Applebee’s Neighborhood Bar & Grill 8200 Arroyo Circle • 848-5600

Black Bear Diner395 Leavesley Road • 842-9901

Carino’s Italian Grill6805 Camino Arroyo • 842-3130

Chevys8440 Murray Avenue • 847-2726

Chili’s850 Renz Lane • 842-4000

Claddagh Irish Restaurant & Pub1300 1st Street, Suite A • 848-5050

Dutchman’s Pizza6940 Chestnut Street • 848-3322

Eagle Ridge Bar & Grill/ Wedgewood Banquet Center2951 Club Drive • 846-4531 x100

El Pollo Loco6986 Chestnut Street • 842-7253

Famous Daves Bar-B-Que6925 Camino Arroyo • 842-1400

Firehouse Bar & Grill55 5th Street • 847-2765

Fresh Choice8697 San Ysidro Avenue • 842-6919

Garlic City Cafe7461 Monterey Street • 847-7744

Ginger Cafe8657 San Ysidro Avenue • 847-2625

Great China Garden7760 Monterey Street • 842-8611

In-N-Out Burger #100641 Leavesley Road • (626) 813-8201

Joe’s Italian Restaurant168 W. Tenth Street • 842-1446

Le BistroP. O. Box 358 San Martin • 460-2016

Longhouse Restaurant8195 Monterey Street • 842-7664

Mama Mia’s Ristorante Italiano1360-B First Street • 847-8808

McDonald’s of GilroyGilroy • 847-3588

McDonald’s Restaurant in Super Walmart7150 Camino Arroyo (831) 637-9683

Mimi’s Café6935 Camino Arroyo • 842-4043

Ninja Sushi715 First Street • 847-8855

O. D.’s Kitchen28 Martin Street • 847-3818

Panera Bread Bakery - Cafe’6865 Camino Arroyo #50 • 846-7430

Quickly565 First Street • 506-1383

Quizno’s1280 First St. Ste. E • 847-0707

Round Table Pizza815 First Street • 842-0321

Stubby’s Sports Bar & Grill707 First Street • 848-3455

Sunrise Café6120 Monterey Street • 848-1200

Taco Bell995 1st Street • 929-2113

Tasso’s Old House383 First Street • 847-7527

Victoria’s Mexican Restaurant757 First Street • 848-1052

Westside Grill8080 Santa Teresa Blvd. #100 • 847-3800

Wienerschnitzel #629711 First Street • 846-6361

Page 9: Gilroy Chamber of Commerce Focus, Sept 2009

September 2009 Gilroy Business Focus • www.gilroy.org Page 9

Workforce Preparation

Workability II can assist employers at no cost in their hiring needs

Your business can take advantage of WorkAbility II Program administered through the Santa Clara County Regional Occupational Program. The program offers recruitment resources for qualified, pre-screened applicants. In addition, employers who hire WorkAbility II applicants may be eligible for some financial incentives, such as tax credits from the WOTC and “on the job training” (OJT’s) agreements.

WorkAbility II is a joint program of the Department of Education and Department of Rehabilitation. This blending of services has proven to be most effective. It is believed that successful solutions to many of social problems can become a reality when the business world and education also form mutual and effective partnerships.

Additional opportunities for the business community are available for those willing to serve on the WorkAbility II Business Advisory Committee. The com-mittee meets two to three times a year and gives employers and opportunity to evaluate existing curriculum components and suggest changes, improvements and new directions.

To learn more about tax credits, on-the-job training programs that supplement up to half of a new employees wages for 3 months, or to join the WA II Business Advisory Committee please contact Abby Ortiz-Baldwin at 408-842-0361 or at [email protected]. More information is also available on the WAII web page at www.sccoe.org/depts/scrop/wa2.asp.

www.pinnaclebankonline.comCommercial Banking | Real Estate Lending

Loans and Lines of Credit | Cash Management

Gilroy Office(408) 842-82007597 Monterey StreetGilroy, CA 95020

SBA Preferred Lender

Pinnacle Bank is a local, community-minded bank that doesn’t ever compromise its deposits or client relationships by making risky lending decisions. Backed by over $100 million in deposits and guided by an experienced banking team, Pinnacle Bank is the bank you can trust, 100% of the time. That’s a promise.

Steady and strong.

Page 10: Gilroy Chamber of Commerce Focus, Sept 2009

Page 10 Gilroy Business Focus • www.gilroy.org September 2009

What’s new with Chamber Businesses!

sue thurmanbusiness relationsHIP managergilroy chamber of commerce

Christi Garcia, financial Advisor for Edward Jones, is scheduling private, free workshops on “A Woman’s Guide to Money Matters”. Topics include: What you can do now to prepare for retirement; your options to pay for a child’s or grandchild’s education; and developing a strategy to help achieve your financial goals. Now is the time to take charge of your financial future, so invite your sisters, mothers, daughters and friends because its never too late to develop a financial strategy. Call 408-842-6943 or stop by Christi’s office at 7877 Wren Avenue, Suite A, to sched-ule your session.

Don’t miss the spectacular, annual Labor Day Weekend Sale from September 4 – 7 which takes place at Gilroy Premium Outlet Center. Center Manager, Jeannie Omel, sug-gests that you’ll save even more with VIP coupons or the voucher for a free VIP Coupon Book before you shop.

Just like a healthy garden, Rabobank, N.A., 761 1st Street , is safe, sound and growing. Manager, Deanna franklin says that the safe and sound approach to banking has allowed them to open new branches to better serve their customers. In the past year, 12 new Rabobank branches have sprouted in communities throughout California, with more to follow. Being a part of the Rabobank Group is being a part of one of the safest banks in the world with a 110 year history of trustworthy services that will help you thrive too. Right now they have a limited time special

offer: a free order of checks, free personal online banking and bill pay and free eStatements, so give them a call, 408-847-3133 for details.

Integrated Financial Benefits Network (IFIT Financial) has announced its support of Life Insurance Awareness Month (September) and is encouraging local residents, families and business owners to take stock of their life insurance and know what to do should the unexpected occur. They will help consumers evaluate their long-term finan-cial plans to determine how much life insurance they need and how to properly access it when the time comes. To make your appointment for this consultation call Jeff Orth at 408-842-2716 or stop by the office at 7881 Church St., Suite B in Gilroy.

Acquiring and keeping people employed is critical for our communities during these tough times. Increased employment brings local advantages through improv-ing the tax base, increasing sales and building businesses. Gavilan College’s Community Education Program is offering classes that can help the unem-ployed and underemployed gain skills toward employment. Returning this fall is the Pharmacy Technician Training and Human Resources Management series. New classes for the fall include Phlebotomy for the Medical Professional, Administrative Medical Assistant, Medical Billing and Paralegal Training. There will also be classes to help start a new business, including, computing skills, marketing and web page design. Classes are offered in Gilroy, Hollister and Morgan Hill as well as online. for more information, visit the website, http://gavilan.augusoft.net or call 408-852-2801.

Recognize your staff or clients this year with unique Harry and David’s wide variety of gifts ranging from $20 to $100. Pre-packaged gifts, such as Gift Towers, Gift Boxes and Gift Baskets; their world famous Royal Riviera Pears and personal-ized custom gifts filled with delicious and unique gourmet fare all meet the highest

standards and come with the company’s strong guarantee that you and those who receive your gifts will be delighted! Stop by the store at 8375 Arroyo Circle, (10 a.m. -- 9 p.m. Monday thru Saturday; and 1 - 6 p.m. on Sunday) in the Gilroy Premium Outlets, to see their selections or give manager, Paul Perez a call at 408-848-2566.

In support of Habitat for Humanity, Coldwell Banker invites you to attend their fourth Annual Luncheon and Party in the Piazza. September 17 is the date of this year’s event that will serve St. Louis Ribs and Chicken meals from Westside Grill, feature fabulous raffle prizes, a silent auction, and music from Pat & Les of the fast Lane Band. Over the past ten years, $1.9 million has been raised, 95 homes built, 41,700 volunteer hours donated and countless dreams achieved. To join in this years’ fund-raiser contact Toni Morris at 408-848-7999 or [email protected].

Allergicare Relief Center is proud to announce the opening of five more loca-tions throughout the Bay Area. Beginning with the flagship Gilroy office, 7461 Eigleberry Street, they have new loca-tions in Campbell, Salinas and Capitola and will be adding locations in Monterey and Redwood City in time to mark the one year anniversary of Allergicare at the Gilroy office. for more information on the Allergicare system or a Chiropractic consultation, call Dr. Davis at 408-842-5959.

Over the years, your skin has been exposed to a number of environmental stressors, which cause damage that can reach the deepest layers of your skin. Photodamage, caused by the sun’s harm-ful rays, is the main cause of the fine lines, wrinkles and age spots that you may already see or you will eventually see on your face. Lynda Green, BSN, RN, owner of South Valley Medical Skin Therapeutics, 9460 No Name Uno #110, introduces the Obagi Nu-Derm System, a physician-dispensed, prescrip-tion-strength, skincare system that can

actually transform your skin at the cel-lular level. By addressing the signs of photodamage and restoring the healthy function of your skin cells, this system is clinically proven to result in young-er- and healthier-looking skin. To con-sult with Lynda call 408-842-4466.

Kathy Bisbee, Executive Director of CMAP gives special thanks to the Youth Media team members, Spencer Wilkinson, Operations Manager, and the documentary project trainers, Emery Hudson and Lisa Mastramico, for their efforts as together they cre-ated a positive community video through the Youth media Training Program. During the 6-week CMAP summer program, eight youth from Gilroy, Hollister, San Jose and Morgan Hill learned first-time job skills and community outreach. To view their short documentary go to http://www.cmap.tv/node/147 .

Join Tim fortino of Edward Jones Investments, Wednesday September 16 at the firehouse Bar and Grill for an Investing 101 class. When it comes to investing there’s no better place to start than with the basics. This is a free seminar and seating is limited. Call Char Marrazzo at 408.846.7748 to reserve your space. Refreshments will be served.

InfoPower Communications (IPC) is pleased to announce that the 20th issue of Gilroy Today, Gilroy’s community magazine is scheduled to be mailed mid September. The 32 page fall issue features: Gilroy’s own Bird Man, Al Howard; Rusty Hunt, a Gilroyan that works on the moon; the new and exciting “Character Counts” program adopted by the Gilroy Unified School District, the home of James Suner; and many articles from local writers. Advertising space is avail-able for the holiday issue scheduled to be out the first week in December. for more information, call 848.6540 or email [email protected].

Page 11: Gilroy Chamber of Commerce Focus, Sept 2009

September 2009 Gilroy Business Focus • www.gilroy.org Page 11

New BusinessMerry MaidsOwners: Brian & Trina Jackson • General Manager: Julianne Palma

Merry Maids is celebrating 30 years in business and has been locally owned since 1985. The Gilroy office is known for providing consistently high quality house cleaning delivered by the most trusted service people. Understanding that your home is your most valued possession, they will treat it as if it were their own home providing high quality, secure and reliable attention to detail. Open through friday, 9 a.m. - 4:30 p.m. Receive the fourth cleaning free for new week-ly and bi-weekly customers.

Year, the 2009 Small and Large Business of the Year, the 2009 firman B. Voorhies Volunteer of the Year, and the 2009 Gilroy Educator of the Year.

The Business of the Year awards are presented in two categories: Small Business with 25 or fewer full or part-time employees and Large Business with more that 25 full or part-time employees. Selection is based on management skills, innovation, personal commitment, community involvement and support, and contribution to the entrepreneurial spirit. The Man and Woman of the Year award is designed to acknowledge individuals who have a history of unself-ish, non-paid service to the community. The firman B. Voorhies Volunteer of the Year award is the only category that is specifically recognition to a cham-ber member and acknowledges outstanding Chamber volunteerism. As in the past, the Gilroy Educator of the Year will recognize an outstanding individual who has made a significant contribution within the educational community of Gilroy.

Recipients of awards are recognized at a gala evening event on Saturday, february 6, at the San Juan Oaks Golf Club.Deadline for nominations are friday, October 30. forms are available by contacting the Chamber at 842-6437.

Award, continued from page 2

Game, continued from page 2• A database of 700+ members is available from the “Members Only” section of the website or by request. It is in an easy-to-use excel format – and it’s free!!

What is described above is an investment of your time to communi-cate your business. In these tough economic times, the Gilroy Chamber of Commerce Board of Directors has decided not to publish a print directory at this time; however, we are confident that our marketing strategies will save you money and build new business leads.

Page 12: Gilroy Chamber of Commerce Focus, Sept 2009

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PAIDGILROY, CA 95020

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“I did my first column in Gilroy’s Today’s June issue and the response was amaz-ing! Within a few days of publication, my phone started to ring non-stop! I not only received new clients interested in trying acupuncture but also people interested in finding out more about my yoga studio.”

Ahnna Goossen, OwnerAcupuncture & Herbal Clinic of Gilroyand Yoga Bella Studio

Production StaffEditor Susan Valenta Gilroy Chamber of Commerce

Production & Design J. Chris MickartzInfoPOWER Communications •IPC

Photography Larry MickartzInfoPOWER Communications •IPC

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Focus Sponsors:

Ticket For Success TradeshowThursday, September 10 • 4:00 – 7:30 pm Hosted by Gilroy Gardens, 3050 Hecker Pass Hwy.Trade Show — Ticket to SuccessDoor Prizes • Networking • Wine • Hors d’oeuvres

Breakfast ClubLocation: Hilton Garden Inn Sponsored by Noland, Hamerly, Etienne & Hoss and Leadership GilroyWednesday, September 16 • 6:45 - 8:00 amRaffle Prizes • Cash Prize Drawing • Networking • Economic Updates Members: $12 per person $15 without a reservation. Non-Members $25 per person (includes full buffet breakfast) For reservations, call 842-6437. Find out what’s new in the business community …can you afford NOT to be there?

Networking CaféWednesday, September 23 • 11:45 am to 1:15 pmLocation: Mama Mia’s Ristorante 1360-B First Street $20/members • $45/non-member • RSVP required, call 842-6437. The Networking Café is a business lead group designed to develop new contacts. Reserve your seat at the Networking Café and build your business over lunch.

Membership BriefingWednesday, September 30 • 11:45 am to 1:15 pmLocation: Gilroy Chamber of Commerce, RSVP by calling 842-6437Learn about free marketing tools available for your business over lunch!

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“I did my first column in Gilroy’s Today’s June issue and the response was amaz-ing! Within a few days of publication, my phone started to ring non-stop! I not only received new clients interested in trying acupuncture but also people interested in finding out more about my yoga studio.”

Ahnna Goossen, OwnerAcupuncture & Herbal Clinic of Gilroyand Yoga Bella Studio