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August 31, 2006

Public Employees Oppose the Arena - Ed Ring

On 8-31 the Sacramento Bee ran a story entitled "Police Union Opposes
Arena Measure."

It is time for the media to stop treating public employee unions with
kid gloves. Instead the media needs to help educate voters on this
issue. It is a conflict of interests for public employees to exercise
such undue influence on public policy. With respect to the areana
debate, they are, once again, holding our public policy hostage to
their wages and benefits.

The reason we can't afford public works in general, and more police in
particular, is because of the costs of funding their pensions.

You don't have to be an actuary or a math genius to understand the
taxpayer's dollars involved. Public employees in general, and police
in particular, retire in their early 50's with pensions for life that
are usually around 80% of what they made in their final year of work
(i.e., their highest salary).

This means that they are retired for nearly as many years as they
worked, on average. And because their pension is 80% of their highest
salary, they actually cost taxpayers more, in sum, during their
retirement than they cost during the time they worked. Because of
this, take any salary a public employee makes, and double it.

triThis is a gross injustice to the private taxpayers, who fund these
generous public employee pensions when private workers only get social
security, available at age 65, at a rate perhaps 20% of their yearly
earnings while working.

Not only is this a gross injustice, it is the primary reason we have
government deficits, and it is the reason we can't afford more
services, such as more policemen to patrol the new arena. Just
reducing public employee pensions to half what they are now - which
would still be double what social security offers - would save
California's taxpayers tens of billions of dollars per year.

Voters should understand that Sacramento may not get a new arena
because a gang of self-interested government employees are using our
money to lobby against the arena unless we acquiese to the
perpetuation of their grossly inflated benefits. It's fine to give
people who take risks to provide for our safety a pension, even a much
better one than the rest of us get. But they should not get a pension
so extreme that it requires yearly pension fund inputs literally ten
times higher than what the rest of us pay each year into social
security. Especially when these costs are breaking our government
budgets and preventing the construction of vitally needed public works.

And there is no justification for public employees to have a
stranglehold on our elected officials, or to exercise so much
influence on our voters - using our money.

Public employee unions should not be running our agencies, controlling
our elections, and breaking our budgets. As it is, that is exactly
what they are doing, and this must be challenged.


Ed Ring
Editor
ecoworld
www.ecoworld.com

Evidence We Can Roll Back Pollution Damage

A report to be published in the Journal of Geophysical Research on September 9th projects, at the current recovery rates, ozone in the atmosphere could return to 1980 levels by the middle of this century.

The effort began in 1989 when more than two dozen countries joined together to replace the main culprit - chloroflourocarbons (CFCs). Unfortunately, little attention was paid to what would be used to replace CFCs. And, as usually happens when no one is paying attention, the users utilized the cheapest replacement products, with no concern as to long-term consequences. The replacements have now been shown to have caused a significant increase in global warming. So, we are on the road to fix one problem and have unintentionally dramatically worsened another.

Sadly, Switzerland first raised the alarm on the replacement products in 1990 and got no reaction. Sixteen years later, we are just facing up to the sizeable impact. But the United Nations fund doles out $150M a year to continue to help developing countries move from the old to the new product. Under the 1989 treaty, industrial countries have until 2030 and developing countries until 2040 to quit using HCFCs and HFCs, the replacement products. It is still not clear what the next products will be, but let's hope someone studies their effects before we unwittingly cause another problem, and let's hope someone comes up with something soon because global warming is being significantly impacted by an unintentional consequence.

Gillian Parrillo
The Sacramento Executive

Congratulations California

Congratulations to Republican Governor Arnold Schwarzenegger and legislative Democrats who have reached agreement on a bill that would make California the first state to impose a limit on greenhouse gas emissions.

The deal requires major energy companies to reduce their carbon emissions within 14 years to 1990 levels. California is aiming to reduce gas emissions by 25 percent.

And for those naysayers who think the Feds should be working on this issue and not the states - we couldn't agree more, but they aren't.

And for those naysayers who say this will hurt the economy, not true says a new University of California-Berkeley study which finds that going back to 1990 emission levels would boost the annual Gross State Product (GSP) by $74 billion and create 89,000 new jobs by 2020.

This is a major step forward in the war on the real terror - global warming.

Gillian Parrillo
The Sacramento Executive


August 30, 2006

Amazing Diet Secret Revealed!

The fattening up of America has taken an interesting twist - just in from Trust For America's Health - a new report about the obesity epidemic in America.

The top ten most obese states in descending order - Mississippi, Alabama, West Virginia, Louisiana, Kentucky, Tennessee, Arkansas, Indiana, South Carolina, and Texas.

Now the startling news - all ten of these states voted red in the 2004 presidential election.

And the rest of the story - the six leanest states - Connecticut, Rhode Island, Vermont, Massachusetts, Hawaii, and Colorado. Five of these six voted blue in the 2004 presidential election. Note: Colorado, a red state, was the leanest.

Nineteen states voted blue in 2004. Fifteen of these states were ranked in the 25 leanest states. That means twenty one out of twenty five of the most obese states voted red.

The moral of the story - Democrats are leaner than Republicans. We can blame the obesity epidemic on Republicans.

Now lets make America healthier. Vote Democrat!

Gillian Parrillo and Pierre Cutler
The Sacramento Executive

Local CEO Gets Local CEO Job

And what, you say, is so special about that?

Well if you know me, you know my hot topic is finding positions for experienced executives with Sacramento companies. There have been very few opportunities in Sacramento up until now and this has resulted in lots of great talent leaving the area permanently or commuting to the Bay Area or beyond.

A couple of years ago, I met such an individual. He had lived in Sacramento for many years but had never found suitable work in the local area. He had spent many years commuting to the Bay Area with the resultant negative impact on his family. We worked long and hard to find something to match his talents but at the end of the day he found a high paying, challenging job in the Bay Area and off he went again, leaving Sacramento without the positive impact of his presence.

Now, I am very pleased to note that he has taken a CEO job right here in Sacramento with a very promising local company. Could this be the beginning of something special - a new trend? A local company, started by local entrepreneurs, funded by local VCs, and now headed by a local CEO. Did we get the idea, the money and the talent all in the same place at the same time? Sounds so simple, but to-date it has not been.

So, congratulations Dave Chamberlain, new CEO of Satori. And if a company does well based on the ethics and decency of its management team, Satori is going to be a big winner!.

Gillian Parrillo
The Sacramento Executive

New Terminal for Sacramento Airport

From the Central Valley Business Times:

Design set for Sacramento airport’s new terminal

SACRAMENTO
August 30, 2006 7:34am

• Construction to start in 2008
• Will replace 1967 structure

The design for a new terminal building at the Central Valley’s largest airport, Sacramento International, has been selected by the Sacramento County Board of Supervisors.

The new terminal will replace Terminal B, which was built in 1967. It will be three times the size of the current terminal, have 23 gates and a “people mover” to shuffle passengers hither and yon.

Construction is expected to start in 2006, with completion projected for [2010].

The new terminal is being designed by Corgan Associates Inc. of Dallas, Texas.

It will incorporate a 200-room hotel, replacing the airport’s current hotel that is located across from Terminal B.

The old terminal will be torn down when the new one is opened, with the airport’s second parking garage built on its site.

The $1.1 billion project is to be paid for by fees paid by airlines along with federal grants.

Gillian Parrillo
The Sacramento Executive

Will Sacramento Do It The Warren Buffett Way?

By now everyone knows what Warren Buffett did.The world's second richest person endowed the world's richest person's foundation - The Bill and Melinda Gates Foundation with a multi-billion dollar gift. The Gates Foundation addresses two key global issues - education and health.

Buffett's actions should encourage other mega-wealthy people to do the same thing. Who in Sacramento will do it the Warren Buffett way?

This is my dream - Sacramento pools its vast resources to create an entrepreneurship foundation patterned after the Kauffman Foundation. Ewing Marion Kauffman, founder of Kansas City based Marion Laboratories, Inc., created the Kauffman Foundation to help young people with disadvantaged backgrounds. The foundation with an asset base of $2 billion fosters education and entrepreneurship.

What's wrong with my dream? Sacramento can do it. Let's put a foundation together the Warren Buffett way.

Any takers? The Sacramento Executive stands ready to work with the community to make it happen.

Pierre Cutler
The Sacramento Executive

August 29, 2006

How to Fund Your Startup

Listen to a series of podcasts entitled The Capital Food Chain, featuring Brock Blake, CEO of FundingUniverse.com, and Bill Payne, Entrepreneur-in-Residence at the Ewing Marion Kauffman Foundation. First in the series discusses the details of self-funding your early-stage venture. Next in the series - bootstrapping.

Bill Payne is a leading expert on angel funding. He has a lot of useful knowledge to impart for those who are looking for startup funding. More episodes to come .

Gillian Parrillo
The Sacramento Executive

Local Company Gets National Attention, Again

CoreLogic, a provider of collateral risk-analysis and management technology and services to the U.S. mortgage banking industry, has been named to Inc. Magazine's list of the 500 fastest growing companies. This is the third consecutive year the company has made the list.

Not bad for a company that was founded in 1997 as a two-person organization and now has annual revenues of more than $65M.

So what's their next move? Co-founder and CEO Steve Schroeder says "....we have kept a fairly low profile since our inception eight years ago. We are now poised to take a stronger stance in the industry."

IPO, acquisition, sale? Rumors abound...

Gillian Parrillo
The Sacramento Executive

August 28, 2006

Can't Governments Start Acting More Like Corporations?

When I led a division of a public company and had to find some budget cuts, I can't imagine a time I would have considered cutting a program that had a 338% return - returning $4.38 for every dollar spent. But that is exactly what the Federal government has just done.

The Federal program that provides funds to the States to help them collect child support from non-custodial parents has been very successful. In 1998, the Federal government tightened the program to ensure results were being met and provided performance-based reimbursement. This helped states double their collections and provided a means for many single-parent families to reach self-sufficiency.

Having raised two children singlehandedly, I met many single parents, almost always women, who had no funds to go hire an expensive attorney to track down their children's other parent and get them to contribute to the upbringing of their children. So many times I recommended that they use this program. And sometimes it had a successful outcome and made an enormous difference in the lives of the affected children. Simultaneously, it saved the government money and put personal responsibility where it should be - on both parents.

With a slash in Federal funds, and little hope that the individual States will have the funds to supplement the program, many more families will descend into poverty and strain the already overburdened welfare programs of the States.

Have we stopped holding our lawmakers responsible? Shareholders of a public company would vote the Board out if they did something as ridiculous as this. It's our tax dollars they are wasting. Let's start paying closer attention and speaking out.

Gillian Parrillo
The Sacramento Executive

Remember What Asparagus Tastes Like?

Someone in the family got news that they were borderline diabetic. It has caused us to change our eating habits. For the first time in a long time we are diligently trying to eat more fresh fruit and vegatables. We hang out at farmer's markets and search out interesting recipes.
The biggest surprise is how good vegetables taste all by themselves or with very simple, healthy, and limited additions.

Take some asparagus, snap off the woody bottoms, place on a broiler, drizzle with olive oil, and sprinkle with some sea salt and bake at 500 degrees farenheit for about 15 minutes. The stalks will caramelize slightly and the taste is sheer heaven. And no worrying about how the hollandaise sauce is going to curdle, or worse. Cauliflower, baked with a little olive oil and lemon juice, tastes amazing. And, if you are trying to shed some calories from your meal, try mashing cauliflower instead of potatoes - makes for a nice change. Substitute a sweet potato for a white potato. So much better for you.

And try something you think you hate. If you really think back, you can't even remember when you started hating it. Give it another try and you might find a new favorite. My new find - marinated black olives. I thought I hated them and then suddenly tried one at a Greek restaurant and love them.

New medical conditions have caused us to discover much healthier eating choices. And we are thankful that we live in a country that provides such great access to healthy food choices.


Gillian Parrillo
The Sacramento Executive

TechCrunch, An Entrepreneur's Best Friend

If you are an entrepreneur of a start-up technology company and you have not yet heard of TechCrunch, then you might take notice of this post.

Michael Arrington is the publisher of TechCrunch,

a weblog dedicated to obsessively profiling and reviewing new Internet products and companies. In addition to new companies, [TechCrunch] profiles existing companies that are making an impact (commercial and/or cultural) on the new web space.
If your company becomes a featured post on TechCrunch, then you have arrived. You see, TechCrunch enjoys a monthly online readership base of 1,350,000. That's impressive for a blog launched just a year ago June. In just 14 months TechCrunch has profiled 827 companies. Perhaps yours is next?

TechCrunch enjoys a strong media following, having been featured on CBS News and in Wall Street Journal. Arrington's weblog is the seventh most popular according to Technorati, with 11,997 links from other bloggers; 48th weblog of the Feedster 500; and in the CNet Top 100 blogs. TechCrunch is the cover featured article "Blogging For Dollars" in the September Issue of Business 2.0.

Arrington is well connected to the venture capital world and is a rising star in Silicon Valley. According to Business 2.0, Arrington is the "go-to person for VCs and execs". Entreperneurs, this means a lot of the 88,814 people currently registered on Feedburner for TechCrunch are VCs. For entrepreneurs, the strategy is simple. Go to a networking event in Silicon Valley. Seek out Michael Arrington. Get a posting of your company on TechCrunch. And wait for the phone to ring.

One unbelievable stat about TechCrunch, a one-man company - the weblog generates $60,000 in ad revenue per month. Just six ads, at $10,000 per ad, per month.

The California Gold Rush? Yep, Silicon Valley style.

Pierre Cutler
The Sacramento Executive

August 27, 2006

Charter Schools Have Lesser Results

Fourth-graders in traditional public schools scored better in math and reading (an average of 5.8 points in math and 5.2 points in reading) than same grade students in charter schools. The scores are from the 2003 National Assessment of Educational Progress test.

Charter school critics portrayed the results as evidence that charers schools are a failing experiment that takes necessary resources from traditional schools. Charter school proponents say the report is flawed and outdated and continued to state that charter schools provide competition to traditional schools thus imporiving public education.

What do you think? Mark Schneider, commissioner of the National Center for Education Statistics, which prepared the report for the Department of Education, said, "My advice to parents based on this report is: Shop around carefully."

Gillian Parrillo
The Sacramento Executive

Is that extra cream puff worth it?

A ten-year study has concluded that you don't have to be obese to increase your risk of dying prematurely. The study found that people who admitted to being slightly overweight in their 50s were 20-40% more likely to die in the next decade. The study of more than 500,000 US adults was lead by the National Cancer Institute. A study of more than 1 million Korean adults produced similar results.

Is there no fun left after 50?

Gillian Parrillo
The Sacramento Executive

The California Housing Affordability Index Indicates More Decline In Home Prices

According to the California Association of Realtors, the first-time housing affordability index (HAI) measures the percentage of first-time buyer households that can afford to purchase a home in California. Presently the index is at 23 percent. The median price home for first-time buyers in California was $482,000 for the second quarter of 2006. In order to qualify for a loan (assuming 6.48% adjustable rate and a ten percent down-payment) on the purchase of the median price home, the minimum household income was $98,720. The monthly payment including taxes and insurance was $3,290.

How many households can afford this? Not many – just 23 percent of Californians. How does an HAI of 23% compare on a historical basis? Not well. The lowest index for California since 1982 was 18% in May 1989 and again in June 2004. The lowest index for the U.S. was 48% in May 1989 (the U.S. index is currently a healthy 59%, the highest ever was 61%).

What does this data tell me? Not good news for California homeowners. Why? Let’s examine what happened within a year after the low point in May 1989. In 1990, California real estate entered a seven-year downturn in home prices. If you bought a California home in 1990, it took ten years, until 2000, for the price to recover to your purchase price in 1990.

Now take a closer look at June 2004 – again the lowest point in the cycle of the housing affordability index at 18 percent. At that time, I projected sometime in 2005 we would be facing a potential downturn in home prices. And it happened. If history repeats itself, it will take several years for the HAI to recover, and as it does, prices will continue to move down.

What’s the highest the HAI for California homes has been since 1982? 44 percent in February 1997 – within one year after the bottom of the real estate decline in the 1990’s.

My prediction? Prices will continue to fall for the next three to five years, perhaps up to another ten percent. My advice to first-time wannabe buyers – sit tight, save money towards the down payment and wait. Wait until the index reaches 45% and then move into the market. You will most likely be buying at the bottom of the market.

What if you don’t want to wait? Move. Move to a low cost of housing area. In Dallas, the medium price home is $140,000. Just yesterday I saw a new sub-division in the suburbs advertising new homes starting at $90,000. Amazing!

Oh, one last thing – the U.S. median price home for first-time buyers is $193,380 with a monthly payment of $1,320. Minimum qualifying income – just $39,600.

Enough said.

Pierre Cutler
The Sacramento Executive

August 25, 2006

Are You Getting All You Can From HDTV?

According to market research firm In-Stat, only one-third of U.S. households with HD-capable sets are tuning in to HD-programming. Most likely reason, when you buy an HD TV no one tells you that you need to sign up for additional services or buy additional equipment.

So, next time you plunk down the extra bucks for HD gear, make sure you ask what else you need to get the full benefit.

Gillian Parrillo
The Sacramento Executive

August 24, 2006

Global Warming Skeptics Are Not Evil - Ed Ring

It is beyond debate that the earth is warming, and that CO2 is a
partial cause of this warming. The remaining debate, and it is by no
means closed, is how much the earth is warming, and how much of this
warming has to do with human-caused CO2 emissions. An under-reported
fact is that among atmospheric scientists, the most catastrophic
projections are not something for which there is anything near a
consensus.

Whether or not you believe greenhouse gas from humans is the biggest
problem to ever face humanity or not, the right to debate this issue
should not be infringed. But earlier this month, taking a step that
ought to chill any American who believes in the right to free speech,
California Attorney General Bill Lockyear filed a motion in federal
court to force auto makers to disclose all documents and
communications between the companies and "climate skeptics." Lockyear
claims these "climate skeptics" have played a "major role in spreading
disinformation about global warming."

This motion is part of a lawsuit by automakers challenging the state?s
greenhouse gas emissions limits for new cars, light-duty trucks and
sports utility vehicles. California has been joined in the lawsuit by
the Sierra Club, the Natural Resources Defense Council, and the
Environmental Defense Fund.

In a pre-trial discovery motion, California and the environmental
groups asked for:

"All DOCUMENTS relating to both GLOBAL WARMING and to any of the
following individuals: S. Fred Singer, James Glassman, David Legates,
Richard Lindzen, Patrick J. Michaels, Thomas Gale Moore, Robert C.
Balling, Jr., Sherwood B. Idso, Craig D. Idso, Keith E. Idso, Sallie
Baliunas, Paul Reiter, Chris Homer [sic], Ross McKitrick, Julian
Morris, Frederick Seitz, Willie Soon, and Steven Milloy, including but
not limited to:

All DOCUMENTS relating to any communications between YOU and these
individuals, and All DOCUMENTS relating to YOUR relationship (or the
relationship of any automobile manufacturer or association of
automobile manufacturers) with any of them, including but not limited
to payments directly or indirectly from YOU or any other automobile
manufacturer or association of automobile manufacturer to any of them."

Since when are greenhouse gas skeptics on trial here? What exactly is
the point of this motion - to intimidate anyone who challenges the new
greenhouse gas orthodoxy?

Why don't California's lawmakers and their powerful environmental
lobby stick to regulating pollutants from automobiles? The air in
California's central valley is filthy and disgusting, it's nearly
unbreathable on many summer days. And all CO2 does is make the corn
grow. It is not a pollutant. It may be a greenhouse gas, but it is
not a pollutant. Regulate air pollution, not CO2. As everyone,
including Governor Schwarzenegger, falls over themselves to be
proactive on the global warming issue, our eyes sting and our lungs
hurt and nothing's being done.

The measures that would have to be taken to make meaningful cuts in
CO2 emissions would be literally communist in scope. But big business
would buy into the process, earning even more profits from the new
carbon taxes that would fund lucrative contracts for carbon
sequestration and carbon mitigation - and every small entrepreneur
would lose. It would be a consolidation of state and private
enterprise akin to what we've seen in the waste management industry,
but on a far, far greater scale.

On the international level, forcing reductions in carbon dioxide
emissions will be a justification for war. Geopolitically, enforcing
these measures would be the equivalent of a blockade. It would
strangle the economies of emerging nations. But nobody thinks about
these other consequences - and nobody pauses to question just how
likely the worst-case global warming scenarios really are.

The fanaticism of the global warming zealots is dangerous. The
unquestioning obedience of the media to the global warming lobby is
criminal, if anything is criminal in this charade. And the
gullibility of the public proves H.L. Mencken right again. It would
be so easy to be cynical, in this crazy, mixed up democracy called
America.

Ed Ring
Editor
ecoworld
www.ecoworld.com

August 23, 2006

It's all in how you recover

Everyone (except my husband!) makes mistakes and every company does too. The key is how you recover. Lately, corporate recovery has been getting more and more flawed.

My six-year-old grandson is placed in intensive care two days before he and his Mom and two younger sisters are booked to fly on United to visit us. I called United. At first I am told that they will give me a full credit as soon as I send information re the hospitalization but that I need to call another number. The other number results in a phone call that last 3 hours and the answer I get never changes from the first moment – there will be no refund ever and each ticket will have to pay a $100 per ticket penalty. I am asked for my frequent flyer number and knowing that I have flown around the world several times with United and used to have the highest status available, I am sure they will relent. But no. Eventually I am told that no one at United can ever grant me a refund. I point out that I am sure the CEO could, but I am swiftly corrected on that notion! I suggest that maybe the 4 year old and 2 year old should fly alone while their mother stays home to take care of the 6 year old in the hospital. Silence. More calls, more frustration, more no results. It’s bad enough that I am very worried about my grandson without having to contend with these rigid customer service policies. I finally have to admit that they have won the battle. Now the war ensues. I cancel my credit card that gets me United Airlines miles. I vow never to fly on United again. I tell as many people as I can how badly they acted. And then a few weeks later when it’s time to rebook the flight, they suddenly give me a $100 travel certificate per ticket to make up for the $100 penalty they have charged me. This is a great example of too little, too late. The damage has been done. Providing the certificate the day I called would have been appropriate, but now there is no recovery to be bought. The fact is that for $400 and poor timing they have deprived themselves of thousands of dollars worth of future business. Is it United that always says at the end of the flight, “We realize you have a choice of airlines and we appreciate you choose us”? They sure don’t act like it.

A few days later, I have a similar situation with Apple. Early on I even suggest a way for them to recover which is quick, simple, cheap, but they insist they have their rules. I remind them that they already violated their rules when they made a mistake on my order, but that gets me nowhere. A couple of weeks later and another two hour phone call and they offer me the solution I had suggested initially. I was polite enough not to say, “If you had only taken my suggestion two weeks ago, you could have saved us both a lot of time and trouble.”

When I was running a division of a software company I periodically volunteered to take customer complaint calls. It gave me a great sense of how our customers were feeling about how we were treating them. I found that a little empathy and quick recovery was key.

How does your company recover when they make a mistake? Do you know? If not, you should. And do you empower your customer service reps to offer a recovery right up front before frustration levels are too high for most any kind of recovery to work?

My prediction is that as more and more customer service is sent offshore and the offshore employees are provided no latitude in managing customer satisfaction issues customer support will continue to degrade. Eventually, I think the pendulum will swing back, customers will be glad to pay a little more for a lot better service, and customer support jobs will start returning to the United States.

Just don’t fly United! And PS to husbands, flowers work great!

Gillian Parrillo
The Sacramento Executive

August 22, 2006

Sacramento Real Estate Market Cools Off

cali%20home%20sales%20for%20July.gif

Every now and then I make a prediction and I get it right. Back in May, I suggested that the price of a Sacramento County home could go down 5 to 10 percent in the nearterm. Well it looks like I was correct. The Sacramento Bee reports that the medium price of all homes sold in the County in July fell 5% from the previous July.The number of units sold declined 43%.

I guess a blind squirrel finds a nut once in a while. Unfortunately, I think further declines are likely to happen over the next twelve months. Look for another 5% decline from the median Sacramento County price of $361,000. Why? The affordability index is still out of whack, near an all time low. I will discuss this index in a future post.

Pierre Cutler
The Sacrameto Executive

August 21, 2006

Clean Energy, The Essential Ingredient For The Future

All of us at some point have wondered what the environment will look like to future generations. One has only to see the smog we are creating and the retreat of the glaciers to understand the damage we are causing to our environment.

It shouldn’t then be surprising to learn California is a leader in creating this damage. It is the 12th largest source of global warming emissions, exceeding most entire countries. We think it’s time California cleans up its energy.

Currently the state and federal government are considering legislation to help with our global warming. California Renewable Energy Standard already requires regulated electric utilities and competitive supplies to increase the use of wind, solar, and other renewable electricity sources by 20% by 2010 (SB107). Those actions will create a “pull” for new companies to provide the clean energy and that “pull” is already attracting the attention of investors.

In the US, approximately $2.5 billion will be invested in clean energy companies this year. That number could easily double in the next decade. Every week we hear of some new “clean energy” fund being created. CalPERS and CalSTRS are behind some of this and are willing to invest hundreds of millions of dollars. With PG&E money, there is a California Clean Energy Fund looking to invest specifically in Northern California. There is momentum behind creating more clean energy businesses.

Sacramento, California, is aggressively pursuing alternative forms of clean energy through an organization called CleanStart. CleanStart, a clean energy initiative of McClellan Technology Incubator, is chartered with helping clean energy entrepreneurs in the Sacramento region take their technology ideas and turn them in to viable clean energy solutions. Today, Sacramento has approximately 40 start-ups in the clean energy space, with another 300 likely in the early development stage. Sacramento is well on its way to becoming the “Clean Energy Capital” of California. It is attracting clean energy entrepreneurs who want to establish companies in the area. Through CleanStart, the entrepreneur support structure—mentoring, senior business advisors and visibility with investors is established to help entrepreneurs move from an idea to a company. The time is right and the backing in terms of funding and entrepreneur support is here in Sacramento.

Sacramento has some real advantages as a future hub of the clean energy industry. The region is well-endowed with world-class academic institutions cranking out good ideas and with sources of research funding to take those ideas and prove they work. It has inexpensive space for inventors to try out their ideas and a growing bench of experienced coaches willing to help. Most of all, this region is blessed with customers that really want to “buy green”, the biggest asset of all. We hope to see all households participate in SMUD’s Greenergy Program, purchasing clean energy for a small additional fee.

CleanStart wants to see at least 10 new companies in the area by 2008 and 25 by 2010 come from its efforts. CleanStart will start small and build on success. In ten years, we want to have $5 billion in clean energy sales from businesses in the region, coming with 10,000 new jobs. That’s the plan—clean energy, a better environment, and a healthier local economy.
To learn more about CleanStart or to be a sponsor of CleanStart, visit our web site at www.cleanstart.org.

Ingrid Rosten
CleanStart
www.cleanstart.org


Satori's National Rollout

Very good article in the Sacramento Bee about the darling investment of local investors, Satori. Previously Kovars, this martial arts organization is planning a nation-wide rollout by buying up independent organizations in other regions. Read the whole story here.

It's going to be fun watching this success story!

Gillian Parrillo
The Sacramento Executive

Sacramento Angels featured in Sacramento Business Journal

An good overview article of the Sacramento Angels is featued in the most recent issue of the Sacramento Business Journal. Check it out.

Gillian Parrillo
The Sacramento Executive

August 20, 2006

Educating Our Children For Global Success

I have been very critical about our country's educational system in several of my posts. I assert that the dumbing down of America is a major problem. Being critical without providing answers or solutions is not constructive. It's time for for me to provide answers. How can we begin to solve this problem? We should educate our children for global success. What does this mean? Thomas Friedman discusses this point in his latest book The World Is Flat. Friedman contends in order to compete on a global level, we need to educate our children on how to succeed. Specifically our students need to:

  • learn how to learn, constantly absorbing and teaching themselves new ways of doing things;
  • have passion and curiosity, passion plus curiosity is greater than intelligence;
  • like people and excel at managing and interacting with other people, i.e., play well with others;
  • nurture their right-brain skills in order to develop creativity skills.

I would propose we modify John Molloy's famous saying "Dress for Success". Let us now adopt the motto "Educate for Success" and put our students in a position to succeed!

Pierre Cutler
The Sacramento Executive

August 19, 2006

Geeks and Grapes - Silicon Valley Meets Napa Valley

clos de la tech.jpgLast December I wrote about technologists moving over to the wine-making business in an article titled For the Love of Technology and Wine. It seems I was ahead of my time. In the current edition (August 21, 2006) of Fortune Magazine, Kate Bonamici authored The Grapes of Math, the featured story in Fortune's Business Life section. Ms. Bonamici concludes that high-tech tools help make better wine.

Chuck McMinn, an ex-Intel chiphead, employs several high-tech gadgets at his Napa winery, Vineyard 29 - mositure probes to monitor water use, weather stations, sap flow sensors, microturbines to produce electricity, Tanknet software to regulate fermentation, a titrator to test chemical balances. McMinn has taken his ex-boss Andy Grove's advice from the chip days and is applying it to wine-making -

If you can't measure it, you can't improve it.

Apparently HP's former CEO Lew Platt instilled the love of wine-making in his employees (Lew, recently deceased, left the top spot at HP to lead Kendall Jackson a few years ago). Former HP director of Internet Marketing and inventor of the term "Laser-Jet", Bill Murphy spends his days at his vineyard Clos LaChance near the Santa Cruz Mountains, applying his techical know-how to the art of growing grapes.

Ms. Bonamici reports that Acrolon Technologies, Inc's Tanknet software is now in use at over 80 vineyards. Tanknet is adding 20 to 30 new clients each year. I was rather surprised to find a software provider with such a niche focus - fermentation control. After a quick search of wine related software products (using my new found search engine - ask.com), I found over 40 companies offering winery software solutions on Wine Busienss Online in specialties from vineyard operations to wine production to sales.

Oh by the way, the career path of chiphead to winemaker seems to be rather popular. T.J. Rodgers, CEO of Cypress Semiconductor, has his own winery - Clos De La Tech. You gotta love the name! Unbelievably, people are snapping up his Pinot Noir at $101.50 per bottle. And one other thing - the bottle comes with a pair of chips, that's right, semiconductors with 107 million transistors on them embedded in sealing wax!

These techies have a lot of love for wine!

Pierre Cutler
The Sacramento Executive

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August 18, 2006

The Economics Of An Education

According to the National Governors Association only 43% of high school dropouts are employed. My math, which I learned in high school, suggests that if we are graduating 3 million high school students a year at a 70% graduation rate (i.e., 30% of this year's entering freshmen class will not graduate), then we are producing 730,000 non-workers per year. Translation - high schools produce 730,000 "students" who go on the dole every year. Nice job America! That's the road to prosperity.

Another fact from NGA - on average a high shool dropout earns $21 thousand per year less than a college graduate. That amounts to almost $1 million in lost income over a lifetime. More good economic news!

High school dropouts cost America $16 billion per year in lost productivity according to a 2005 Harvard University research study. Wow!

And one other troubling fact from NGA - the percentage of college students earning degrees in science, math, and engineering - China 59%, South Korea 46%, European Union 36%, and the U.S. 29%. I agree with Thomas Friedman. The world is flat. But I might add one more wrinkle to Friedman's thesis - The world is flat, and the U.S. is falling into the sea.

Pierre Cutler
The Sacramento Executive

August 16, 2006

Digg.com and Ask.com Are Rapidly Growing In Popularity

I am always a late adopter of technology. I worked at IBM, a technology innovator. Yet, I still didn't get the technology bug. I thought the Internet would never amount to anything. And look what happened! Ebay - my original thought was no way! Free software, what another dumb idea! Chat rooms - give me a break! On-line poker - who would gamble on-line?

You get my point - I am always on the wrong end of most of my technology prophesies. Well two companies have caught my eye in the past week - digg.com and ask.com. I started to do a little digging (pardon the pun). ask.com is the fastest growing search engine, according to the Nielsen NetRatings, growing year-over-year by 66%, to the number five most popular search engine. What brought ask.com to my attention? You did - the readers of Sacramento Executive. Recently, I noticed a lot of traffic on our site originating from ask.com searches. It caught my attention. The thought never occurred to me that there might be any legitimate search engines out there other than google. But, once again I am wrong. I think I will use ask.com for a while...just to prove that you can teach old dogs new tricks.

Oh, and digg.com - look out, this website will hit the top 20 most popular sites soon. digg.com is a technology focused news site where the stories are chosen by community members rather than editors. I like that approach. For a change, we get to say what is news and not Hollywood. What a novel idea. I think I'm going to really dig digg.com.

What about myspace.com you ask? Don't ask. I've missed that one too - it is now number 1 in page views, ahead of Yahoo! and google. Of course, the only reason why I even heard about it was the breaking news on CNN about all the "bad" things going on over there. Well, it turns out it's not all that bad after all. And besides, if it's on CNN, it's probably not news anyways - just more Hollywood hype (since when is it OK to present news with a music score and sound effects playing in the background?) and editorializing. Check it out, all the major TV news outlets do it. I think digg.com and my iPod will be just fine for me. But wait, I don't own an iPod. I guess it's time.

Pierre Cutler
The Sacramento Executive

More Success Secrets From Highly Successful Companies

More success secrets from the founders of the Entrepreneur Magazine’s 2006 Hot 100 Companies:

  1. Our people. If I take care of them, they'll take care of our customers, and then our customers will take care of us. Founder Lynn Matson, Pro-Motion Technology.
  2. Hire quality managers, and let them manage. FounderJamie Lerma, Monticello Homes Inc.
  3. Hire people who possess a tremendous work ethic and great attitude. Train them, provide them with the best tools and processes to succeed, motivate them, and watch them perform. Founder Hany Girgis, SkillStorm Inc.
  4. Treat others as you would want to be treated. Founders Carl Whatley, Ben Stakely, Jim Harwick, ProEthic Pharmaceuticals Inc.
  5. Select the best employees, from management to underlying staff. Listen to your customers to develop programs for their needs. Founders Andrea Salazar-Hall, David Hall, LXSI Services Inc.
  6. Hard work, commitment to excellence, and incredible employees sharing the same commitment to excellence. FoundersDonald Jones, Kimarie Jones, George Borrego, Janet Borrego, Air Ambulance Specialists.
  7. Most people do not plan to fail, but rather fail to plan. Planning is the core focus of my daily activities. Founders Gerard J. Ferro, Christine Serenelli, SUNRx Inc.
  8. Building a business on the premise that our "assets" drive home every night, and providing a work environment that encourages them to return the next day, motivated and excited to be part of the team. Founder A. Ray Dalton, Parts Source LLC.
  9. Focus on where the puck is going, not on where it currently is. Founder Alan Pearlstein, Flying Point Media Inc.
  10. Surround yourself with talented people, and do not run out of cash. Founders Elise Wetzel, Rick Wetzel, iSold It LLC.
It appears that Hany Girgis has learned from Dallas Mavericks' owner Mark Cuban who often preaches the value "put your team in a position to succeed".

The Wetzels nailed it - most companies fail for one of two reasons poor management or poorly capitalized. Sometimes both.

Pierre Cutler
The Sacramento Executive

August 15, 2006

The Sales And Marketing Philosophy of Jeffrey Gitomer

redbook.jpg

I put myself in front of people who can say yes to me, and I deliver value first.

-- Jeffery Gitomer

What does Mr. Gitomer mean by "value first"? As a sales person, Mr. Gitomer "puts value in the hands of his potential customers before ever asking them to buy anything."

If you visit my website, you'll find tons of ideas and valuable sales information that I give away each week for free. I've been doing that for twelve years. It has earned me millions of dollars. First I give it away THEN I reap the rewards. Pretty ass backwards for a sales organization, wouldn't you say? It defies every rule or law of marketing you'll ever find in a textbook, except for one minor little item: It works. Find something that your customer considers valuable and give it away.

I wonder what the VCs think about this sales model? Scott Lenet? Corley Phillips?

Pierre Cutler
The Sacramento Executive

August 13, 2006

How To Increase Your Child's SAT Score

What's the best fool-proof way to increase your child's SAT score? It is simple - teach your child a foreign language. No other skill will add more points to your child's SAT score than ensuring a child takes four or more years of foreign language in school. The average SAT score of a 2005 college bound high school senior was 1028. Four or more years of the following disciplines yielded amazing results:

  • english, 1062
  • arts and music, 1074
  • social sciences/history, 1084
  • math, 1122
  • natural sciences, 1128
  • foreign language, 1144
Students with four or more years of foreign language boosted their SAT score on average by 116 points.

Think about the potential results of your student mastering a foreign language! Not only will he or she raise their SAT score and get accepted to a better school, your child will become a global player in the job market. Or better yet, a global entrepreneur!

Pierre Cutler
The Sacramento Executive

Career Path of An Entrepreneur - Ed Bailey

Ed Bailey, age 60. Background - raised in Cincinnati, Ohio; earned a psychology degree from University of Cincinnati; served in the United States Marine Corps. 1972, opened a men's designer clothing store. 1984, moved family to Plano, Texas, invested $180,000 in a small underperforming McDonald's restaurant located in a local mall. In 22 years, parlayed the single restaurant into present ownership of 61 McDonalds in North Texas, currently serving 115,000 customers each day, with an estimated $135 million per year in sales. 2006, purchased two Patrizio restaurants. Sounds like Sacramento's local restaurant entreprenuers Mike and Abe Alizadeh? Amazing!

Ed Bailey's key to success? Buying underperforming companies and managing them back to health. Says Mr. Bailey in an interview with Cheryl Hall of the "Dallas Morning News", "There's nothing more vulnerable than entrenched success - companies look in the rearview mirror and not down the road with a strategic mission. " Impressive!

Speaking of Abe and Mike, stay tuned for what's next in the Alizadeh's entrepreneurship journey. I understand their latest restaurant Crush 29 will be opening this fall in Roseville.

Pierre Cutler
The Sacramento Executive

How Others See Sacramento

From Fodors:

The midtown area, just east of downtown, contains many of the city's best restaurants and quirkiest shops; Good

Downtown, pedestrians-only K Street Mall has a persistent panhandling problem. Bad

An infusion of upscale, popular restaurants, nightclubs, and breweries is nevertheless energizing the downtown scene. Good

Ten miles west is the college town of Davis, which, like nearby Woodland, is beginning to feel more suburban than agricultural because many Sacramento workers are settling there. Good/Bad?

Sacramento contains more than 2,000 acres of natural and developed parkland. Good

Grand old evergreens, deciduous and fruit-bearing trees (many lawns and even parks are littered with oranges in springtime), and giant palms give it a shady, lush quality. Good

Genteel Victorian edifices sit side by side with art deco and postmodern skyscrapers. Good

Though cheap-looking apartment buildings abound in midtown, and stuccoed suburbs are obliterating a lot of the greater metro area's rural charm. Bad

I think that's pretty fair - K Street Mall is an eyesore, no matter how we pretend it's not, and there are some monstrosity apartment buildings in mid-town.

Gillian Parrillo
The Sacramento Executive

Tech Coast Angels Named No. 1 Source of Southern California Company Funding For Second Year

IRVINE, Calif. – August 10, 2006 – Tech Coast Angels (TCA), the largest angel network in the United States, today announced that it was the leading source of first-time funding to Southern California companies seeking venture capital financing. TCA’s ranking was part of a special analysis of the “Money Tree Report” prepared for Entrepreneur magazine by PricewaterhouseCoopers and the National Venture Capital Association, and based on data from Thomson Financial. With seven first-time, startup and early-stage financings, TCA tied for seventh nationally with eight top-tier venture capital firms including Draper Fisher Jurvetson, Greylock, Sequoia Capital and Venrock Associates. In addition to the seven first-time deals included in the report, TCA members also made 16 additional investments in 2005, for a total of 23 and $13.7M in capital invested.

“Over the past several years, TCA has focused on developing its members to become deal leads, which is critical to increasing the number of companies we fund each year,” said John Morris, TCA’s chairman. “As a result, more TCA members than ever are serving as active lead investors, so it is not surprising that, for the second year running, TCA is the leading source of early-stage financing to Southern California companies.”

For more information on the report, visit this report.

Gillian Parrillo
The Sacramento Executive

August 11, 2006

Sacramento Angels Are Looking For People To Soar

Angels, Soar, Wings, Fly...bad analogies.

But the Sacramento Angels is an organization that is worth a serious look The Angels is a group of accredited investors who meet on a monthly basis, over dinner, to hear presentations from entrepreneurs and make individual decisions regarding investment. Due diligence is handled by members of the group. Members are often involved in mentoring the companies - short and/or long term.

Benefits include:

A chance to meet some very interesting, smart people in town
A chance to learn more about Angel investing
A chance to view some very interesting local investment deals
A chance to mentor local companies, entrepreneurs and students

An invitation only membership recruiting event is scheduled for August 23rd. You are eligible to join if you meet the definition of an accredited investor as defined by the Securities and Exchange Commission (SEC) in Rule 501 of Regulation D.

If you are new to the area, this is a terrific way to get integrated fast! If you are interested in attending, please contact sherria.weiss@pillsburylaw.com by August 16th.

Editor's Note: Pierre and I joined the Sacramento Angels soon after we moved to Sacramento. We got involved on all sorts of levels; the Board, due diligence, mentoring companies, sitting on expert panels, even event planning! We thorougly enjoyed the monthly meetings and ended up making some lifelong friends. We are still waiting for a return on our investments! But I am sure they will come and, if not, we still had a great time, met some great people and learned alot about startups and investing in them!

Gillian Parrillo
The Sacramento Executive

Prosper Magazine Whiz Kid Nomination

Prosper Whiz Kids, 2007 nomination process is now in progress through August 15. Prosper Whiz Kids are young (25-35 years old) up-and-comers on management teams who by their hard work and sharp business acumen, are defining the bright future of business and communities throughout the region. You can make your nominations here.

One of last year's winners is Andy Eppinger, Founder of the Sacramento Speakers Series. If you don't know him, you should - because he's a great guy, with great ideas, and a great product. And if you don't know about his product, you should. The Sacramento Speakers Series is entering its second year, moving to a new venue, and booking truly outstanding speakers.

Gillian Parrillo
The Sacramento Executive

August 10, 2006

Breaking Story du Jour

Today, we woke up to a foiled terror plot. Yesterday, we woke up to the Lieberman-Lamont election results. Last week, we woke up to the Israel-Lebanon conflict. And the week before that, we focused, for a microsecond, on what was happening in Iraq. Unless, of course, a tractor-trailer was being chased by 20 police cars, or a baby had fallen down a hole, or miners were trapped deep below the earth. There is barely a second that CNN doesn’t have the words Breaking Story scrolling on the bottom of the screen these days. Once in a great while, they change to Developing Story to ensure we don’t lose the excitement of a ‘real’ Breaking Story.

Could we possibly get a balance? Today, watching CNN interview everyone who might ever have known anything about terrorists plots – and lots who don’t know more than I do – and asking them the same questions over and over, one would think that conflicts in the Middle East have been completely resolved. Even though the Breaking Story was breaking all day yesterday - not a mention today. I guess Middle East conflicts passed their headline ‘shelf life’.

I am so sick of being shocked and awed. Could we get some balanced coverage? Could we get some real debate? Could we get some real experts? Could we get some real analysis? But, please, most of all, balance.
Or, try listening to BBC news for a change.


Gillian Parrillo
The Sacramento Executive

Former Raley's CEO To Buy Seattle Grocery Chain?

Michael Teel left his CEO position at Raley's - the company that his grandfather founded - in 2002. Since then he has become the majority shareholder of Prosper Magazine. But suddenly it appears he is headed back to the grocery business. And this time in Seattle. The target - Larry's Markets located in Seattle. A Sacramento investor group, headed by Teel, has made a $5.5M offer through the bankruptcy court and unless there is a higher offer by August 18th, the deal appears to be headed for a September 1 close. Under the terms of the deal, only 5 or the 6 stores would be purchased, along with the company's catering business. The company has approximately 500 employees and filed for bankruptcy in May.

Gillian Parrillo
The Sacramento Executive


Entrepreneurs: Present to 12 VCs simultaneously

An exciting opportunity from TechCoire:

SACRAMENTO -- TechCoire, Sacramento region's only business-technology education and networking organization, announced today Investorfest 2006, its annual VC Roundtable showcasing northern California's emerging technology startups. Leading venture capitalists participating in Investorfest 2006 include American River Ventures, DFJ Frontier, Draper Fisher Jurvertson, Emergence Capital, Gabriel Ventures, Garage Technology Ventures, Hummer Winblad Venture Partners, Outlook ventures, SAP Ventures, Storm Ventures, T-Ventures, and TechFarm Ventures.

"TechCoire has been offering various educational programs and coaching for entrepreneurs over the past five years. We are introducing Investorfest based on their feedback and interest in pitching to multiple VCs in the interest of obtaining funding for their current business or ideas. Entrepreneurs will pitch their business ideas to all of the investors simultaneously, exposing the idea to as many investors as well as increasing the chance of finding a VC or VCs who may be interested in their business," stated Gopan Madathil, Founder and President of TechCoire. "Additionally, investors will provide constructive suggestions to the entrepreneur presentations, thus providing valuable feedback that increases their chances of funding."

"I am looking forward to hearing the presentations from the Sacramento area startups. Our current fund is over $400M and are looking for sound businesses to invest in software and software related services," stated Lars Leckie of Hummer Winblad Venture Partners.

TechCoire is now accepting applications from entrepreneurs. Deadline for submitting an application is Tuesday, August 15, 2006. For more information, please visit

Once the application is received, a team of experts will be reviewing the applications and selecting the presenters. Even if you are not selected to present, you may have the opportunity to attend. Both presenting and attending CxOs will have the opportunity to meet and network with the investors during the conference.

Gillian Parrillo
The Sacramento Executive

August 8, 2006

Success Secrets Of Highly Successful Companies

Success secrets from the founders of the top ten Entrepreneur Magazine’s 2006 Hot 100 Companies:

  1. My father taught me two principles: The customer always comes first, and you have to have good people with you. You also have to treat those people like you treat your family; otherwise you have nothing. Founder Gary Holdren, Huron Consulting Group
  2. Develop a core competence and stick to it. Founders Tim Williams and Craig Woerz, Media Storm
  3. You can't do it all yourself. Use the advice of many people--both internal and external--with expertise and experience in a lot of different areas to help build your business. Founders Christopher J. Ziegler, Barry M. Koski, Steven S. Baum, Joseph C. Lyne Jr., James E. Johnson, and George A. Minor, Compass Energy Services, Inc.
  4. If you surround yourself with incredibly talented individuals and provide a culture where they can showcase their talents and grow, you can't help but be successful. Founders Mark Pugh and Art Deas, Alliant Pharamceuticals
  5. Hire the best person for the job. Founder Peter Foley, Nations Builders Insurance Services
  6. Don't be afraid to think outside the box and make decisions based on instinct. Founders David Gulian, Richard Hodge, Craig Wilensky, Cosmo Denicola, and Al Ciardi, Infologix, Inc.
  7. Stop focusing on yourself --focus on the people around you. When the success of others becomes a priority, success will follow you. Founder Rich Morgan, American Laser Centers
  8. Spend as much time and resources on customer relations and service as possible. Founders Tony Somers, Larry Pangalangan, Andy Haenszel, Nate Williams, Doug Broshar, John Roth, and Bill Kleeh, Capital Media Group
  9. Hire for attitude, and train for skill. Founder Kirwan, Razor Competitve Edge
  10. You're only as good as the people who work with you. Founders R. Scott Kelley, Lloyd S. Dollins Jr., and R. Randolph Weis, Service Center Metals, LLC

Pierre Cutler
The Sacramento Executive

August 7, 2006

Chose Your Top Place To Live

Money Magazine's annual list of the Best Places to Live allows you to input the degree of importance to you of several categories and personalize your choice of the best place to live.

Many of us are getting close to retirement. We can finally make choices on where to live, not based on the best place to raise our kids, but the best place for us. And so many of us are struggling with the sudden freedom and the variety of choices.

Criteria that you can rate from not important to very important are:

Affordable housing
Plentiful leisure activities
Plentiful cultural options
Job growth
Low crime rate
Good weather
Short commute time
Good health care access

I plugged in my choices and my list came out as:

1 AZ Phoenix
2 CA San Francisco
3 AZ Tucson
4 CA Los Angeles
5 NM Albuquerque
6 CA San Diego
7 TX Dallas
8 CA Sacramento
9 NM Santa Fe
10 MO Kansas City

Well, I lived in 8 for many years and now I am living in 7. Maybe I should work my way up the list, although LA and Phoenix air quality issues are a worry. But next stop San Diego and then Albuquerque. I could do that.

Give it a try...it might help narrow the multitude of choices.

Gillian Parrillo
The Sacramento Executive

Best Startups To Launch Right Now

Business 2.0 has issued a list of the top best startups to launch right now. The opportunities are worldwide in scope.

As they so aptly state:

Our goal isn't just to show where the latest business trends are converging, but to coax more of you armchair entrepreneurs out of your Aerons. We've supplied the ideas, the rationales, and even some how-to guidelines from local experts. The rest is up to you.

So here is the list and you can visit the site and click on each link to get more details.

1. Build cheap Wi-Fi networks for Brazilian resorts.

2. Become a biodiesel producer in Argentina.

3. Create an ad network for India's mobile content developers.

4. Launch an exclusive social network for Russian millionaires.

5. Open an American-style restaurant in one of China's fast-growing cities.

6. Remodel homes for China's burgeoning middle class.

7 Flip mining claims in Bolivia.

8. Export the planet's next great wines - from Greece.

9. Import fine wines to upscale restaurants - in India.

10. Export gourmet coffee from Rwanda.

11. Become a social entrepreneur in South Africa.

12. Be among the first to invest in the new Libya.

I can feel the entrepreneurial juices coursing...grab your passport and get busy

Gillian Parrillo
The Sacramento Executive


August 6, 2006

California Universities Lead the U.S. In Entrepreneurship

California has four of the top ten ranked graduate level entrepreneurship programs in the U.S., according to U.S News & World Report. The 2006 rankings (based on my research approach of visiting each school's website, versus purchasing the report from the magazine's website) put Babson College number one for the thirteenth consecutive time. What is Babson College doing to earn the top spot for so many years? I intend to look into this and report back my findings. The top ten entrepreneurship graduate programs are:

  1. Babson College
  2. Stanford Graduate School of Business
  3. University of Pennsylvania (The Wharton School)
  4. Harvard Business School
  5. MIT (Sloan School of Management)
  6. University of Southern California (Marshall School of Business)
  7. University of Michigan (Ross School of Business)
  8. University of Texas (McCombs School of Business)
  9. UC Berkeley (Haas Business School)
  10. UCLA (Anderson School of Business)

Pierre Cutler
The Sacramento Executive

August 5, 2006

The Launch of Startup Review

Nisan Gabbay of Sierra Ventures recently launched his blog Startup Review, Analyzing Web Success. The focus of Nisan's blog is to profile successful Internet companies. The first company profiled is Craigslist and is highlighted by an interview with founder Craig Newmark. Craig believes the key success factors to Craigslist.org are:

  • culture of trust
  • social aspects of site are key to driving the commerical aspects
  • site ease of use
It seems to me that these success factors could be applied to most start-up pursuits. Sage advice for all!

Pierre Cutler
The Sacramento Executive

ESPN Shop

TED Prize Winner Podcasts Available

The TED (Technology, Entertainment, Design) conference is an annual event where leading thinkers and doers gather for inspiration.

We have previously featured (via Podcast) the presentation that Tim Robbins and Sir. Ken Robinson made at the conference. Now we are pleased to recommend to you podcasts of the presentations of the three 2006 TEDPrize winners: Larry Brilliant, Cameron Sinclair and Jehane Noujaim. Not only does each TEDPrize winner receive $100,000 and a stunning trophy, but they receive something truly remarkable - one wish to change the world. They each have six months to prepare their wish and then the TED community helps to make each come true.

Easier said than done, you imagine. But the TED community is truly made up of the 'leading thinkers and doers' and it's going to be amazing watching what this 'community' can accomplish.

Watch these important podcasts and we will keep you updated on the wishes and their implementation progress. And to give you a flavor of the wishes that might emenate from this distinguished group of winners:

Larry Brilliant is an epidemiologist who led the successful WHO campaign to eradicate Smallpox. He was recently named Executive Director of the Google Foundation.

Jehane Noujaim is an award-winning documentary filmmaker, responsible for Control Room and Startup.com.

Cameron Sinclair is founder of Architecture for Humanity, and author of Design Like You Give A Damn: Architectural Responses to Humanitarian Crises In this presentation.

As Margaret Meade so aptly said: 'Never doubt that a small group of thoughtful, committed citizens can change the world. Indeed, it is the only thing that ever has'.

And thank you BMW for underwriting the free distribution of these amazing speeches.

Stay tuned.

Gillian Parrillo
The Sacramento Executive

August 4, 2006

City Ironing Personalities

More from the Rowenta Ironing Survey (see previous post).

The fifteen cities surveyed included: Atlanta, Boston, Charleston, Chicago, Cleveland, Dallas, Denver, Los Angeles, Milwaukee, Nashville, New York, Phoenix, Pittsburgh, San Francisco and Washington, DC.

Winners of the various ironing categories

85% iron their jeans in Dallas - nationwide 72%
65% iron their T-shirts in Dallas - nationwide 55%
21% iron their socks in Cleveland - nationwide 12%
5% iron their bathing suits in Chicago - nationwide 3%
41% iron their gym clothes in Cleveland - nationwide 27%
32% iron their towns in Cleveland - nationwide 23%
43% iron their sheets in New York - nationwide 34%
44% iron their pillowcases in Pittsburgh - nationwide 37%
64% iron their curtains in Pittsburgh - nationwide 56%

Many report ironing on the hood of a car - one reports ironing on an altar - hopefully it's the same one who reported ironing priest robes.
Many wear mumus while ironing - others wear nothing at all.
Be careful when you fly out of Denver, because one respondent from that city says they fly planes while ironing!
In San Francisco, a respondent said they ironed a wet suit. Another, a lampshade. Think costume party?

When all is said and done, San Francisco ended up in the Peer Presser Category, while Dallas was a definite Ironing Afficionado. One more reason I am not sure Dallas fits my ironing personality "If Absolutely Necessary - Hire It Out'

Gillian Parrillo
The Sacramento Executive

August 3, 2006

What's Your Ironing Personality?

Rowenta, a high-end German home appliance maker, has undertaken a 15 city study to understand ironing habits.
Based on the results, three distinct personalities revealed themselves:

Ironing Aficionado - a perpetual presser ironing a large variety of items from boxers to socks to curtains;
Peer Pressure Presser - an ironer who sticks to the basics yet has a firm grasp on the importance of the task;
Seasonal Steamer - an infrequent presser that dusts off the iron for special occasions, only pressing what's necessary.
Some of the more interesting data:
rowentairon.jpg

25% confessed that they iron their clothes while wearing them. There were multiple incidents of respondents ironing in the nude, others used their irons to make grilled cheese sandwiches. Nearly 40% reported combining ironing with some other task such as singing, dancing, praying and having sex. (Editorial comment: the mind boggles!)

If the idea of ironing in the nude, while making a grilled cheese sandwich, praying and having sex (or some combination thereof) appeals to you, you can go to Rowenta's website and take the survey and determine your 'ironing personality'.

Gillian Parrillo
The Sacramento Executive

Calculating Your Life Expectancy

ESPN ShopCheck out this fascinating site where you input personal data to answer 40 questions about your lifestyle and family and in return receive a prediction of your life expectancy and some suggestions as to how you can improve it based on your input. The questionnaire takes about 10 minutes to complete.

The index was devised by Thomas Perls MD, MPH, who is the founder and director of the New England Centenarian Study, the largest study of centenarians and their families in the world.

living to 100.jpg
The index is an extension of a book that Dr. Perls wrote entitled 'Living to 100: Lessons in Living to Your Maximum Potential at Any Age.'

Gillian Parrillo
The Sacramento Executive

Response to Global Warming Is All Over The Map

Target .com, Online AdvertisingHouse Majority Whip Roy Blunt (R-Mo.) said he would oppose global warming mandates if Republicans control the 110th Congress. “I think the information is not adequate yet for us to do anything meaningful,” he said.

Hundreds of scientific researchers, policy experts, and risk analysts from all over the world disagree. You can read their report here. They concluded:

There is new and stronger evidence that most of the warming observed over the last 50 years is attributable to human activities.
They predict that global warming will increase temperatures worldwide between 2.5 and 10.4 degrees Fahrenheit between 1990 and 2100 if no action is taken to reduce greenhouse gases. This could raise sea levels by as much as three feet. That would have a devastating effect worldwide.

Thankfully, the citizens of California seem alot more savvy about the realities and dangers of global warming than our federal politicians. A recent survey by the Public Policy Insitute of California finds:

Eight in 10 residents believe global warming will be a very (49%) or somewhat serious (30%) threat to California’s future economy and quality of life.

Sixty-five percent of all adults and 70 percent of likely voters favor having the state make its own policies on global warming.

The proposal to reduce GHG emissions to 1990 levels by 2020 receives majority support from residents across all regions, racial/ethnic, and demographic groups.

Seventy percent of all adults say they would seriously consider purchasing or leasing a hybrid vehicle, with 57 percent saying they would even if it were more costly.

The good news is that we already have all of the technology necessary to turn this sorry state of affairs around, but it takes leadership to get it implemented.

Franky, don't you find it completely embarassing that the State of California has to step up to sign an environmental treaty with the UK because our politicians in Washington have their heads buried so deep in the sand, or maybe elsewhere!

Gillian Parrillo
The Sacramento Executive


August 2, 2006

Another View on the 'Kings Arena'

A great visionary article by Andrea Lepore, co-founder of Flavor magazine originally published in 2004 but even more relevant today

The "Kings" Arena
by Andrea Lepore Tuesday, July 18, 2006. 09:22PM

Calling Frank Gehry by Andrea Lepore

Published in the "Stud" Issue of FORK IT, 2004

This is not about the Kings.

This is not about the Maloofs or if you do or don’t care about the team staying or going, or if you think there is nothing wrong with ARCO Arena, or even if you agree or disagree with the Chris Webber trade. This is so much bigger than all of that. This is about the Sacramento region. This is about the direction of the city and our communities. This is about you and me and everyone who lives here after us for years and years to come.

The tale of two cities...

Imagine Sacramento with a Wal-Mart as its anchor, flagship store. The same Wal-Mart that within ten years of staking claim in Iowa, nearly half of the clothing and grocery stores closed. In the 11 store types studied, businesses lost more than $603 million in sales. In that ten-year period, Iowa lost: 555 grocery stores, 591 hardware stores and building supply stores, 422 apparel stores, and 116 drug stores. Imagine Sacramento without Taylor’s or Nugget Markets, East Sac Hardware, any of the new boutiques popping up in Midtown, Pucci’s Pharmacy, or Raley’s and Bel Air. Or how about a downtown similar to the one we had even five years ago that shut down as soon as the offices closed and you couldn’t get a good meal after 8 pm.

Now imagine a Downtown Plaza with Saks Fifth Avenue or Bloomingdales as anchor stores, an Old Sacramento similar to Old Town Pasadena with a European feel, featuring brick loft apartment housing, a variety of restaurants within strolling distance, including Roy’s, Palomino’s, and McCormick & Schmick’s, as well as street side cafes and wine bars, and a W Hotel. Across the Tower and I Street bridges are river front hotels and condominiums, all bringing people back into the hub and heart of Sacramento.

The only way that picture will be painted is with a downtown arena and entertainment district. Not more movie theaters and not an arena in Natomas. Downtown needs to be a destination. Natomas will survive with or without the arena because of the housing developments, business parks, schools, and retail. If we as a community build the arena in Natomas we will continue to contribute to the Sacramento sprawl. The National Trust for Historic Preservation defines “’sprawl” as "poorly planned, low-density, auto-oriented development that spreads out from the center of communities.” If that doesn’t depict Natomas, Roseville, Rocklin, Elk Grove, and El Dorado Hills, I’m not sure what does.

Bank of America described the impact of sprawl in our state as follows:

“Urban job centers have decentralized to the suburbs. New housing tracts have moved even deeper into agricultural and environmentally sensitive areas. Private auto use continues to rise. This acceleration of sprawl has surfaced enormous social, environmental and economic costs, which until now have been hidden, ignored, or quietly borne by society. The burden of these costs is becoming very clear. Businesses suffer from higher costs, a loss in worker productivity, and underutilized investments in older communities.

California's business climate becomes less attractive than surrounding states. Suburban residents pay a heavy price in taxation and automobile expenses, while residents of older cities and suburbs lose access to jobs, social stability, and political power. Agriculture and ecosystems also suffer. We can no longer afford the luxury of sprawl. “

Moreover, from the book "Slam-Dunking Wal-Mart" by Al Norman (1999; Sprawl-Busters), the author eerily lists what could be the Sacramento region:

The 10 sins of retail sprawl

1. It destroys the economic and environmental value of land.

2. It encourages an inefficient land-use pattern that is very expensive to serve.

3. It fosters redundant competition between local governments, an economic war of tax incentives.

4. It forces costly infrastructure development at the edge of towns.

5. It causes disinvestment from established core commercial areas.

6. It requires the use of public tax support for revitalizing rundown core areas.

7. It degrades the visual, aesthetic character of local communities.

8. It lowers the value of other commercial and residential property, reducing public revenues.

9. It weakens the sense of place and community cohesiveness.

10. It masquerades as a form of economic development.

If you build it, they will come…

Since we’re dreaming, this is what I envision to create a destination in downtown Sacramento: located in the 240-acre Union Pacific Railyards, a Frank Gehry-designed arena and amphitheater, all in one. Combine the look of Gehry’s Walt Disney Concert Hall in Los Angeles with his Jay Pritzker Pavilion in Chicago, and we would have the ultimate state-of-the-art sports and entertainment center and architectural landmark. Gehry’s work was once described as having proven that people will travel halfway around the world to look at a building as well as its contents and “stands as evidence that a building can put a town on the map.” The same would prove true about our arena/amphitheater.

Close your eyes and picture a beautiful, smooth, steel structure facing east and an amphitheater stretching out over acres of grass facing west. The arena would be capable of hosting a minimum of 160 events per year, while the outdoor pavilion would create additional opportunities for world-class music festivals ala South By Southwest in Austin or Bumbershoot in Seattle, as well as live theater and dance performances. Two events could even be held on the same day to maximize space and revenue: a concert at the pavilion during the day and a Kings game at night. An option not currently feasible at ARCO Arena or any of our other current venues, which have numerous restrictions, including available dates and configuration (Raley Field, Mondavi Center), amenities (Discovery Park), size (Wells Fargo Pavilion, Memorial Auditorium) and location and seasonal bookings (Sleep Train Amphitheater).

In agreement with the Keyser Marston Associates 2002 analysis, with the UP Railyards location for the entertainment venue, spin-off activity including revitalization and business attraction could provide “the spark to land use development that could accelerate the timeline for development by a significant margin” and “help strengthen downtown Sacramento as a destination.” Not to mention, the transportation opportunities the Railyard location would open up including biking, walking, scooters, light rail, train, etc. that would enhance the overall experience, reduce traffic congestion, and be environmentally more appealing.

Show me the money…

As we’ve seen in numerous occasions in other similar-sized markets within the last 20 years including Cleveland, Charlotte, Denver, Houston, Indianapolis, Nashville, Oklahoma City, Portland, and Seattle, sports and entertainment facilities have generated new jobs, restaurant and retail growth, and additional corporate and tourism revenue. According to a Chamber of Commerce reports, the Oklahoma City Bricktown area sports and entertainment project created 4,500 new jobs and produced $1 billion in economic impact. In Denver, when Coors Field opened in 1995, an increase of over $40 million in taxable sales occurred from the previous year, 25 new restaurants opened, and adjacent land that was assessed at $1.77 per square foot prior to the stadium construction sold for $27.00 per square foot, less than seven years later. Sacramento would be no different.

In addition to the post-building revenue streams, pre-, during, and post-construction funding possibilities include hotel, rental car, and limousine/car service tax (see Oklahoma City) and historic district development incentives (see Cleveland), as well as supplementary tax income from the new development projects the venue would precipitate. With a venture of this nature, the prospect of hosting an NBA All Star Game or other first-rate events all of a sudden becomes viable, thus bringing in earnings not before possible to our market.

Furthermore, by building not only a venue, but a historic landmark, a Sacramento sports project of this stature will attract corporate dollars. In the age of TiVo and DVR’s, satellite radio and IPods, TV and radio spots are becoming increasingly less valuable and companies are looking to sports. The IEG Sponsorship Report stated that of the $11.1 billion spent last year on sponsorships, $7.6 billion was targeted to sports fans, an increase of almost ten percent from the previous year. With the inclusion of the amphitheater in the development, other corporate dollars become available through arts and music grants and commercial support.

With several downtown loft and condo projects on the horizon and other restaurant and retail projects pending, the timing is now to make the crucial decision to move Sacramento ahead before our golden opportunity is gone. The debate about if, when, and where to build the arena is the most important decision we’ve faced as a community and will have the biggest impact since the State Capital moved here in 1854. This is the defining moment for Sacramento in our lifetime and it’s too critical to leave in the hands of inexperienced politicians and developers with ulterior motives.

This most definitely is not about the Kings.


Kings' Season Starts November 1st

The Sacramento Kings first regular season game will be on the road - they will play the Minneapolis Timberwolves. The first home game will be against Minneapolis and will take place on November 6th at 7PM. So, all of you season ticketholders, you have got to hold on three more months.

The final game of the season - April 18th against the Lakers. Let's hope it's not a playoff berth clincher!

Gillian Parrillo
The Sacramento Executive

Congrats Monarchs

Congratulations Monarchs for making the playoffs.

And speaking of the Monarchs - check out Flavor magazine's website to watch a video of a photo shoot of several of the players for the upcoming Summer 2006 issue. Quite a fun piece.

And speaking of Flavor magazine - if you loved ForkIt magazine and you can't find it anymore - you just found it. Same creative force - Audrey Wells and Andrea Lepore

Gillian Parrillo
The Sacramento Executive

August 1, 2006

Thank You Sacramento!

Thank you Sacramento!

The Sacramento Executive website has received wide support since we launched last November. It has been very gratifying to Gillian and me. For the month of July we had 7,433 visitors (not including crawlers, spiders, and robots) from 81 countries. We are putting Sacramento on the map!

Content is key. As our content grows, so does the readership of Sacramento Executive. We have posted 296 articles in our first eight months. We expect to do much more. Please provide comments and ideas through the commenting process on what you would like to see and how to make our website better.

Pierre Cutler
The Sacramento Executive

What Happens to Arco Arena?

If the new arena deal goes through and a new arena emerges in the railyards, what happens to Arco? Beware that the taxpayers don't get another surprise bill.

In Dallas, the old arena, known as the Reunion Arena, has lost more than $4.5M over the past three years. When the new arena, the American Airlines Center, was built it received a sweet deal - a non-compete clause with Reunion. So American Airlines Center gets the right of first refusal for every event suitable for its size. It's castoff cousin, Reunion Center, is left with the dregs - hence the large losses.

And yes, there were big plans for redevelopment of the site of the old arena, but no deal has come together three years later.

Ask questions. Make sure you know all of the answers. Minimize surprises down the road.

Gillian Parrillo
The Sacramento Executive


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