FBAC members and sponsors had a great time at the association’s first Sacramento Area Networking Event on August 20. The event provided them with quick updates about FBAC’s activities and important legislation as well as ample time to network.
Ken Monroe making points about membership
FBA Chairman Ken Monroe kicked things off with a progress report about the association’s growing influence at the Capitol and urged members to help build membership.
“More members give us the power to make a huge difference with the Legislature, and we’re at a point where we think we can make a difference,” he said.
Political Director Robert Rivinius followed with a brief summary of key ballot measures and legislation, especially the need to support Proposition 36 in November. That measure would create tougher penalties for serial retail theft and smash-and-grabs while confronting the fentanyl crisis and incentivizing drug and mental health treatment. FBAC is part of the coalition working hard to pass the measure.
Members and sponsors interviewed at the event strongly agreed that having a family business presence at the Capitol is critically important.
Kenneth Fat and Dan Kellow
“I think FBAC does a good job on behalf of California’s family businesses,” said Dan Kellow, a commercial and industrial relationship manager with River City Bank – one of the few family-owned banks in California.
“I think that it’s refreshing to have people speaking on your behalf in this maze of lobbyists and legislators who don’t really understand the impact of their legislation and that the Legislature is more receptive when a family member represents his business as opposed to just a business owner. A lot of people vilify business owners, but they don’t really understand that family businesses primarily support their own family and the families of their employees.”
Jim Relles
Jim Relles, the second-generation owner of Sacramento’s beloved Relles Florist – soon to mark its 78th anniversary – said his company is a member because FBAC’s mission is so important.
“It’s so important to get the word to the public and the legislators how important family businesses are,” Relles said. “I mean, you constantly hear the politicians always say that small business is the backbone of America. But I would say probably 90% of small businesses are family businesses, so it just goes hand in hand.”
Relles also pointed out the difference between family businesses and corporate ownership: family businesses treat employees like family.
“We’re involved with the employees, we care about our employees, and they work together with us. We’re close to them, and we’re very fortunate that is the case,” he said. “We had one employee who recently retired. I think she was with us for 40 years. She was a hearing-impaired lady and we worked around her abilities.
“And we have a couple of other ones who are reaching 30 or 40 years, and I sometimes think that I must be doing something right that they want to stay. I think they do because they know we’re a family business.”
Another beloved institution is Frank Fat’s restaurant in downtown Sacramento, which has been serving great Chinese food and being the place legislative deals are made since 1939. Kenneth Fat, Frank’s son and a prominent area dentist, said the family business is an FBAC member because members have common issues.
“We’re a family business, right? And, of course, the business climate in California and Sacramento has been tough. It’s a great, great challenge. And so it’s interesting to compare notes, discuss similar problems and how we’re going to approach them politically and businesswise and, personally,” said Fat, whose son, Jerry, is the company’s CEO.
He added that how to transition from generation to generation is also a reason to belong.
“You know, time goes by, and our generation will be gone, so what do we do next and how do we do the transition?” he said.
Fat echoed Relles about the difference being a family business makes.
“We have a lot of long-term employees. I was just speaking to one waiter for example. I think he’s been with us close to 30 or 40 years. He’s doing well and told me his youngest son graduated from UCLA, with a Ph.D. So here’s this young waiter building his family while he started as a waiter and he’s been able to support his family,” Fat said.
“And I think I think he likes working in a family business. He likes knowing the owners. He likes the personal aspect versus corporate, you know. We have several employees who have worked for us for 20-plus years. And we’re proud of that.”
Cameron Rappeleye
FBAC Sponsors also see the value in supporting family businesses. Cameron Rappeleye is an interim vice president and partner with InterWest Insurance who has emerged as an evangelist for the Association, having recruited five new members last year alone.
“I went to an FBAC meeting last year and what really sparked my interest was what they were trying to accomplish with PAGA reform, which was taking the attorneys out of it and actually thinking about the employees. I sent that information to about 10 family business clients and five came back and said they were interested in learning more,” he said.
“This was a group that was specifically built over 10 years ago to fight for reforms versus just complaining about things and hoping something gets done.”
He also tells prospective members about the networking opportunities.
“These are pretty intimate settings, right? If you just walk across the room, you get to meet Ken Monroe of Holt Caterpillar. That’s not available for most business owners. There are people you’re going to meet that you would probably never cross paths with in everyday life,” he said.