November 11-24, 2014 Section A by Long Beach Business Journal

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ege The Coll s es Of Busin ion trat Adminis B At CSUL

Health Wise Air Quali ty And How It Affects Your Lun gs

Spotlight tudent On CBA S ns o Organizati . g See P 8

See Page 18

lbbusinessjournal.com

November 11-24, 2014

Retail Survey

Climate Change Aquarium CEO Schubel Warns Of A Warmer World, Rising Seas And Stronger Storms

Local Holiday Shopping Habits Explored By LBBJ

■ By SAMANTHA MEHLINGER Senior Writer

■ By GEORGE ECONOMIDES Publisher’s Analysis ity officials may need to C stop thinking about attracting a Nordstrom and start considering wooing an Apple store to locate to Long Beach. That conclusion is from a survey sent to Business Journal readers about holiday shopping and the stores they would like to see in the city. While far from scientific, the survey, conducted the end of October, does provide a glimpse into one of the key challenges facing retailers in Long Beach: residents plan on traveling to out of town stores or shopping online rather than visiting local shops (Please Continue To Page 12)

Guide To Long Be ach Annual Events Free Listing For Your 2015 Annual Events From Business Functions to Charitable Events to Entertainment and much more All Glossy, 4-Color, Keepsake Publication. Issue Date: November 25 Long Be ach Events Only Call Cori Lambert at 562/988-1222 for more information. De adline is Friday, November 14

ccording to Jerry Schubel, A president and CEO of the Aquarium of the Pacific, storms Pictured near one of their drilling sites with Signal Hill Petroleum President and CEO Craig Barto, center, are David Slater, left, the firm’s executive vice president and chief operating officer, and Kevin Laney, vice president of rig operations for the company. (Photograph by the Business Journal’s Thomas McConville)

#1 On West Coast Signal Hill Petroleum Named Top Exploration/Production Company ■ By MICHAEL GOUGIS Contributing Writer eautiful, high-end condoB miniums with a view of blue-green Pacific Ocean waters and crude oil drilling and pumping rigs would seem to go together like – well, water and oil. But not only has Signal Hill Petroleum managed to look for, find and extract thousands of barrels of crude oil a day in such a challenging environment, it has performed the task so well that it was named the TEEMCO E&P

Company of the Year for 2014 at the recent West Coast Oil And Gas awards ceremony. “A lot of people in the industry thought this field was dead,” says David Slater, executive vice president and CEO of Signal Hill Petroleum. “But it’s a huge remaining resource. It took technology to economically unlock it.” A combination of cutting-edge technology and old-fashioned public relations outreach has allowed the company to flourish in a potentially difficult environ(Please Continue To Page 16)

like Hurricane Katrina and Superstorm Sandy will happen again, thanks to rising sea levels and a warming planet caused by climate change. At an event held by the Long Beach Area Chamber of Commerce’s Green Business Council on October 29 at the Long Beach Marriott, Schubel laid out predictions for the impacts of climate-changed induced sea level rise in the coming years. Peppering his speech with light-hearted jokes, he had some serious things to say about the consequences of impending sea level rise to the environment, waterside communities and manmade infrastructure in coming years. His audience included Congressman Alan Lowenthal, engineers and members of the Green Business Council and others. Showing a photograph of a fleet of yellow taxicabs covered in

Philanthropy What Should Donors Focus On When Giving To Charity? ■ By BRANDON FERGUSON Staff Writer

survey released last month by the Better Business Bureau Giving Alliance indicated that when most people donate to charity, the ultimate impact of the money they spend

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isn’t the first thing on their mind. Rather it’s something much more mundane – overhead costs. The survey, sent to 4,350 donors nationwide, indicated that today’s philanthropists are more likely to scrutinize a charity’s income and expense statement rather than its overall benefits. Forty-six percent of respondents said they placed their trust in a charity based on finances, while only 11 percent said results. For Jeffrey Wilcox, a Business Journal columnist who founded Third Sector Company, a provider of interim leadership to non-profRead About Team 100 And The Important Work It’s Doing In The Community – And Membership Is For Men Only! See Page 6

its in transition, the survey’s findings are disheartening. “To say that the financial statements are more important than the social benefit absolutely flies in the face of why these organizations were put in business in the first place. They were put in business for social benefit,” Wilcox stressed. He explained that all too often donors look at the amount of money an organization spends to raise a dollar, which he said might be high depending on the kind of work an organization does. Non-profits that raise money by producing special events tend to have higher overhead costs, whereas organizations raising money through online donations may have lower costs. (Please Continue To Page 5)

seawater up to their windshields during Superstorm Sandy in 2012, Schubel joked, “It has always been hard to get a cab in New York.” The audience laughed, but, only moments before, they had gasped at one of his calmly stated assessments: (Please Continue To Page 14)

Longshore Workers Negotiations Grow Heated As Work Slowdowns At Ports Reported ■ By SAMANTHA MEHLINGER Senior Writer s of Friday, November 7, A 12 ships crowded the San Pedro Bay as the International Longshore and Warehouse Union (ILWU) orchestrated slowdowns at the ports of Long Beach and Los Angeles by, as a statement issued by the Pacific Maritime Association (PMA) put it, “refusing to dispatch hundreds of qualified, skilled workers for critically important positions transporting containers in terminal yards.” (Please Continue To Page 16)

Civic Center Financial Consultant Sought By City ■ By GEORGE ECONOMIDES Publisher he City of Long Beach has T issued a request for proposal (RFP) to hire a civic center financial consultant to, among other items, “minimize the project cost” and “risk” to the city. (Please Continue To Page 10)

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INSIDE THIS ISSUE 2 Long Beach Business Journal

November 11-24, 2014

4 Philanthropy 5-What Do Donors Focus On . . . continued from Page 1 6-Team 100â&#x20AC;&#x2122;s Food For Kids Program

8 Newswatch 8-Reggie Harrison Named Director Of Disaster Preparedness 8-Long Beach City Hall News In Brief 10-L.B. Police Crime Lab Earns International Accreditation 10-Entertainment Permitting Proposals Going To City Council 11-Laserfiche Moves Quickly To Fill Top Posts 12-Retail Survey . . . continued from Page 1 12-Restoration Hardware Expanding 13-Tax Exemption For Eligible Manufacturing/R&D Firms 14-Climate Change . . . continued from Page 1 15-New Lung Nodule Center Opens At Todd Cancer Institute 16-Longshore Slowdown At Ports . . . continued from Page 1 16-Signal Hill Petroleum . . . continued from Page 1 17-International Trade News In Brief

18 Perspective Realty Views Wages And Housing Growth At Odds By Terry Ross Effective Leadership Leadership Lessons From The Wizard Of OZ By Mick Ukleja HealthWise Air Quality And How It Affects Your Lungs By Dr. Robert Liou Trade And Transportation Election Results And The Trade Agenda By Tom Oâ&#x20AC;&#x2122;Brien

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VISIONARIES VIEW LONG BEACH COMMUNITIES THROUGH A PHILANTHROPIC LENS…….

One commendable way to keep communities viable and vibrant is to form a comm mmunity i foundation. That ity is exactly what the Founders of the Long Beach Community Foundation did in 1 1996. 6. Their philanthropic gifts of $1.2 million were intended to support initial operating at costs until asse sets reac eached a level of selff-

economic change in Long Beach through charitable giving. Tod day, assets have rea eached over $22,000,000

A BIG COMMUNITY “THANK YO OU TO TH OU” THE LONG BEACH COMMUNITY FOUNDATION TIO ON FOUNDERS O FO OUNDERS Anonymous* The Ackerman Family John Apostle & Helen Apostle Foundation George & Alice Atkinson Foundation William & Virginal Barnes Beachcomber* Bixby Land Company California Community Foundation Blake & Vicki Christian Dawna & Gary DeLong George & Gloria Deukmejian For information on establishing a donor advised fund or an endowment to “give back” and to support your favorite charity or area of interest in the community, please contact Jim Worsham at (562) 435-9033.

Farmers & Merchants Bank Bob b & Nan N ncy Foster Gazette Newspapers* wspaper ers* Frances S. Grover John W. Hancock Family Found dation Internationall City Bank ank Sara Wenkle kle Kapl Kaplan aplan John S. & James L. Kni Knight night Foundation o Keesal, Young oun ng & Logan* Kevin and An na M Maria McGuan McG Henryy & Jane an Me M yer Mil Foundation Miller und ndation Dani niel & Pam amela mela Munzer Frank & Margie Mar M Newell

www.longbeachcf.org w ww ww.longb .longbea eachcf.org chcf.org

Press-Telegram* Will J. Reid Foundation Dan & Frani an Ridder R Peter er & Cathy Ridder Shadden en Family y Foundation Jean Bixby Smith S James Sullos Family ily D & Marlene Temple Don Mick Ukleja M Mike & Arline Walter Windes & McClaughry cClaughry Accountancy Corp. Jamess & Patricia Worsham *In-kind In-kind contribution

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PHILANTHROPY November 11-24, 2014

Donors And Giving (Continued From Page 1)

“How much it costs to raise money and how much it costs to help people are two different ratios,” Wilcox said. Drew Gagner serves as president of St. Mary Medical Center Foundation, which was founded in 1970 to raise money to support programs at the Long Beach-based hospital. He told the Business Journal that a high level of efficiency doesn’t always correlate with high impact. He gave an example of a non-profit that spends 15 cents to raise a dollar, but only raises a total of $100,000. “Is that more effective than an organization that raises $5 million [but] costs 40 cents to raise a dollar?” he asked. Jane Netherton, who chairs the board of directors for the Long Beach Community Foundation, said that it’s difficult to apply one standard of efficiency to organizations of different sizes. In the case of a group like the YMCA, or Salvation Army, Netherton explained the cost required to pay someone to run an organization of that size is inevitably going to be higher. “You’ve got to pay someone a whole lot more than you’ve got to pay someone to run a smaller organization that serves maybe 100 clients and has three or four staff,” she said. Victoria Bryan, executive director of the non-profit Arts Council for Long Beach, said a donor’s decision of where to give is complicated in an era where there is so much need. She added that media reports highlighting the activity of poorly run charities complicates the matter. “No donor wants to feel that their precious resources are being potentially wasted,” Bryan said. Before heading the Arts Council, Bryan spent more than two decades co-directing a non-profit theater company. She recalled the challenges of justifying the group’s expenses to its donors. The group, she explained, wasn’t housed in a theater but rather operated as a traveling company. Actors would go into communities, juvenile halls, battered women’s shelters and senior centers using the dramatic arts as a therapeutic or educational tool. Much of the group’s funding was used to pay the actors as well as a facilitator who would assist the group in therapeutic settings. “It was sometimes really hard for us to explain, ‘This is our program’s costs. It’s paying people,’” Bryan said. She said that the key to winning donor’s trust came with building relationships. “We didn’t look good on paper, but if somebody knew our programs and had seen them, [and if] we had a relationship with them, then they understood,” Bryan said. Kevin Tiber, chief operating officer for Farmers and Merchants Trust Company, explained he’s worn different hats when it comes to non-profits – both through working in the trust company with charitably minded donors, and as a boardmember with various non-profits. Like Wilcox, Tiber said that a charity’s overhead costs are an overly simple measure of an organization’s effectiveness. “Different charities, depending on the nature of their focus and their mission, may inherently have different platforms and expense structures,” Tiber said. “Some charities are a little more pass-through where they act as a conduit; they don’t need

Long Beach Business Journal 5 a lot of administration. Whereas others actually have boots-on-the-ground impact, and the labor costs and associated overhead with that is going to be much higher.” He suggested it’s best for those deciding where to donate their money to dig beyond what is available through online resources such as GuideStar, which provides reporting information on non-profit organizations. Sometimes, Tiber said, a phone call to a non-profit’s leadership is best. “Actually walk through the structure of the platform, understand what they’re doing, what those expenses are going for,” Tiber said. In 2013, GuideStar and the BBB Giving Alliance wrote an open letter to America’s non-profit corporations highlighting what (Please Continue To Bottom Of Next Page)

Jane Netherton (right) Chairs the Board of Directors for the nonprofit Long Beach Community Foundation. She’s pictured with Marcelle Epley who serves as the organization’s president and CEO. In an interview with the Business Journal, Netherton explained that low overhead isn’t always the best indication of a charity’s impact. (Photograph by the Business Journal’s Thomas McConville)

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PHILANTHROPY 6 Long Beach Business Journal

November 11-24, 2014

Volunteers from Team 100 deliver bags of nonperishable groceries to Webster Elementary School in Westside Long Beach. Team 100, a group of Long Beach men united by the cause of fighting hunger, deliver bags of food to seven Long Beach elementary schools every week, which are then distributed by school staff to families with the greatest need. (Photograph by Team 100)

Team 100’s Food For Kids Program Feeds Hungry Local Students And Their Families ■ By SAMANTHA MEHLINGER Senior Writer Since 2011, 100 men from Long Beach have been united for a common cause – feeding the hungry children and families of their city. Every Friday since the group formed, Team 100’s Food For Kids program has delivered bags full of nonperishable food to seven Westside Long Beach elementary schools with high numbers of Title 1 program schoolchildren. To date, they have distributed more than 100,000 bags of food to children in need and have never missed a delivery. Of the Long Beach Unified School District’s population of about 82,000 students, 72 percent qualify for reduced or free school meals, according to Jim Grubbs, co-founder of Team 100. One thousand students in the district are identified as homeless. While these students have access to school meals during the week, when they go home they may not have food on the table, Grubbs said. Grubbs became aware of the issue when working at the Volunteer Center South BayHarbor-Long Beach in 2011. “At the time, I was working at the Volunteer Center, and principals were coming to me and telling me there was a hunger issue in the Long Beach schools. I did not believe it, so I went and met with principals and talked with Superintendent Chris Steinhauser,” he recalled. After meeting with school staff, local businesses owners and representatives from the city to discuss the problem of hunger among many Long Beach school children and their families, Team 100 and Food For Kids was born with help from cofounders Tim McBride and John Shadden. The group is made up of men not to be exclusionary to women, but to make up for what Grubbs saw as a gap in the involvement of local men in Long Beach issues. “The reason it came to be men was because I was sitting on a couple of boards at the time and every place I went, it was 100 per-

cent women who were doing everything. There were no men,” Grubbs said. “I kept saying to myself, well, where the heck are all the guys? What are they doing? And the truth was they were not doing anything en masse.” Team 100 soon made a dent in that trend when membership filled up in less than a month and a half, he recalled. “We said, okay, we are going to feed these families for the weekend. So we would show up with grocery bags stuffed with food for people on Friday morning. The principal would make the decision of who were the neediest. Then the parents would come in, grab the food, go home and have a nice weekend,” Grubbs said of the concept behind the organization. To fund the effort, the three co-founders formed a board of 20 men. Each member was asked to invite four friends to join the group to grow it to 100 members, explained Tom Bennett, current Team 100 board president. “Each member pays $150 a year in dues and that is where we get our initial [yearly] $15,000 funding from,” he said.

The group gets additional funding through a charity event called the Blue Martini Ball, an invitation-only party thrown once a year. In its first year, there were 700 guests. Last year, the event grew to 1,200 attendees. Invitees pay $50 for tickets. The event typically has casino tables, dancing, a silent auction, a raffle and entertainment, Grubbs said. “It is black tie optional and everybody has to wear something blue and bring a five-pound bag of rice,” Bennett said of the ball. Explained Grubbs, “We ask everybody to bring a five-pound bag of rice to the Blue Martini Ball so they can touch and feel that they are actually doing something very concrete other than giving money.” The event brought in two tons of rice last year for local families, he estimated. Feedback from school principals has shown that Team 100’s efforts have ripple effects throughout the school communities. Not only does nourishing hungry children through the weekend enable them to better concentrate in school, it also has inspired

Donors And Giving

these donors have intended, then I see no reason to not fully disclose what we’re doing,” Ruggirello said. Jim Normandin, president of the Memorial Medical Center Foundation, echoed a sentiment expressed by others interviewed for this article, explaining that relationship building is at the core of what non-profits do. “Our job is to engage individuals in the community. . . to consider us as a recipient of their philanthropy. In that consideration, there has to be some kind of relationship, some kind of dialogue about what Mr. and Mrs. Donor want,” Normandin said. When asked about his thoughts on the BBB study, Normandin offered his, perhaps kinder, description of today’s philanthropists. “I think most people give because of the impact they feel their gift is going to make,” he said, adding. “At least, that’s why I hope they give.” ■

(Continued From Page 5)

they described as the “overhead myth.” The letter referred to the myth as a “false conception that financial ratios are a proxy for overall non-profit performance.” The letter listed various ways non-profits could work toward solving the misconception of overhead, including practicing more transparency and sharing data about performance with donors. Kelly Ruggirello, executive director of the Long Beach Symphony Orchestra, said that her organization tries to be transparent in what it does, adding that her organization is proud of the fact that 81 cents of every dollar raised goes to producing concerts and educational programs. “If we are completely transparent about what we’re doing and if the dollars are really going to programs and services that

changes in some behavioral problems at the schools Team 100 reaches. “When a principal was able to start feeding the most hungry, it changed the atmosphere in the entire school,” Grubbs said. “There was one school where the teachers were actually being abused physically by the 5th graders, and, after one year of Food For Kids in that school, it stopped completely,” he continued. Where in previous years theft of school equipment had been an issue at one school during the summer, after a year of Team 100 donating food at the school, the thefts ceased, Grubbs said. Families benefitting from the program have even started paying it forward to others they view as in greater need. “I heard a couple of stories where families have donated their bag of food to other families they feel are needier,” Bennett said. In an effort to be closer to the community it serves, Team 100 is transitioning its base of operations from the Volunteer Center to Food Finders, a food bank and food rescue program based in Signal Hill. Food Finders picks up donated food from local grocery stores, restaurants, markets and bakeries and distributes it to those in need. “It is a great match for us because we are already serving so many people in the community,” Patti Larson, executive director of Food Finders, told the Business Journal. “We really liked the idea of being able to have a significant presence in the schools just because we know there is a huge need there for the kids and their families.” Food Finders’ goal is to provide more donated food for the Food For Kids program in order to stretch the dollars raised by Team 100. “We want to be able to stretch the dollar as much as we can,” Larson said. “We’re looking forward to working with them. They play a huge role in the community so it’ll be another way for us to serve Long Beach.” To learn more about Team 100 Food For Kids and how to help, visit www.team100lb.org. ■

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NEWSWATCH 8 Long Beach Business Journal

Spotlight On CBA Student Organizations What do you do when your proposal to stage a benefit concert in the Pyramid for disaster relief (with a two-month lead time) is nixed? How do you persuade the consul general of India to speak on campus? How do you assist low-income, elderly, foreign student or By Dr. Jeane Relleve limited English-speaking Caveness, Assistant Dean of Students clients in realizing $590,000 in tax credits and returns in one year? Answers to the above questions are: Organize the concert to take place next semester, use the Carpenter Performing Arts Center, realize $15,000 for direct donations, and subsidize travel for 35 students to fly to Louisiana to do rebuilding during spring break (American Marketing Association). Partner with the CSULB Yadunandan Center for India Studies and bring the consul general of India to speak to a packed house at The Pointe conference center (International Business Students Association). Collaborate with the Board of Equalization, Internal Revenue Service and Accounting faculty to offer the annual Volunteer Income Tax Assistance (VITA) program (Beta Alpha Psi/Accounting Society). The Associated Business Students Organization Council (ABSOC) and 11 business student organizations host an array of professional development, social, recreational and community service events each year. The organizations are: American Marketing Association, Beta Alpha Psi/Accounting Society, Black Business Students Association, Delta Sigma Pi, Financial Management Association, Hispanic Students Business Association, Human Resources Management Association, Information Systems Student Association, International Business Students Association, Society for Advancement of Management, and MBA Association. Students find a sense of community and develop their organizational and leadership skills. Examples of opportunities include speaker series, experiential leadership simulations, networking mixers, company tours, regional and national conferences and competitions, as well as programs offered by professional chapter affiliates. Students are also involved in fundraisers for charities and hands-on service projects such as beach cleanup, holiday parties for underprivileged children, and more. By actively engaging in out-of-classroom activities that allow them to practice skills related to their majors and future career interests, students prepare for life beyond the classroom. The interaction with business professionals strengthens the connection of our alumni and community partners with the College of Business Administration. We invite and welcome further connections, so if you are interested or would like more information, visit http://www.csulbabsoc.com/, email us absoc.csulb@gmail.com, or call 562/985-5297. (The College of Business Administration at Cal State Long Beach is an AACSB accredited business school that provides undergraduates and MBAs with the knowledge and skills necessary to be successful in their careers and to propel the economic development of our region.)

Reggie Harrison Named Director Of Disaster Preparedness Department ■ By BRANDON FERGUSON Staff Writer Last week, City Manager Patrick West announced the promotion of Deputy City Manager Reggie Harrison to director of Disaster Preparedness and Emergency Communications. Harrison has overseen the department since its formation in May 2013; however, last week’s formal announcement signaled Harrison as the first permanent director of the department. “Reggie Harrison is absolutely the right person to lead this department,” West said in a statement. “He has years of experience in public safety dispatch, homeland security and disaster preparedness. As director, he will be well positioned to strengthen the city’s efforts in these areas and complete the complex task of full consolidation of the city’s emergency dispatch functions.” Harrison has served in multiple capacities during his time with the City of Long Beach, including housing authority bureau manager, economic development bureau manager and acting director of the community development department. In 2001 Harrison was appointed deputy city manager. Last April, then-director of the Long Beach Airport, Mario Rodriguez, announced he was stepping down to take a job running the Indianapolis Airport Authority. Harrison was charged with serving as acting director of the airport while a national search was conducted for a new airport director. West is expected to announce a new director before the end of the year. The disaster preparedness department is charged with consolidating emergency communication and dispatch services as well as centralizing disaster management and preparedness functions in the city. According to a press release issued by the city last week, during his time overseeing the department, Harrison has developed a comprehensive training program and strengthened citywide relationships with multiple government agencies from the city to the federal level. In 2005 and 2011 Harrison led studies of the emergency communications and dispatch center, eventually leading to the implementation of a more efficient, consolidated dispatch model. In April, Harrison received media attention for his leadership in making Long Beach one of a few cities in the country to serve as a beta site for the testing of early earthquake systems. Once the disaster preparedness department is fully implemented, it will employ more than 90 workers and have an estimated budget of $13 million. ■

Long Beach City Hall News In Brief ■ By BRANDON FERGUSON Staff Writer Special Meeting – Tonight (November 11), the city council holds a special meeting at Houghton Park Community Center to continue discussions on a proposed redevelopment of the civic center. Two separate teams, Long Beach CiviCore

November 11-24, 2014 Alliance and Plenary-Edgemoor Civic Partners, are vying for the opportunity to build a new city hall as well as a new library. Also under consideration are plans for a new hotel, multiple residential buildings and retail space. The meeting begins at 4 p.m. Houghton Park Community Center is located at 6301 Myrtle Ave. Sales Tax Resolution – At tonight’s regular meeting, councilmembers consider a resolution to authorize certain city employees, as well the city’s revenue consultant, to examine confidential sales and use tax records. The resolution, which is sponsored by 5th District Councilmember Stacy Mungo, seeks to limit the flow of sales tax revenues from Long Beach to other cities. In an October 17 letter to City Manager West, Director of Financial Management John Gross and Director of Economic and Property Development Mike Conway argued that granting certain city employees access to confidential tax records would allow the city to identify Long Beach’s fastest growing retailers and develop a list of retailers looking to expand in this region. The city is looking for opportunities to develop former redevelopment agency properties. Currently, the city has 48 properties ready for sale or future development. In previous council meetings, other members, particularly 4th District Councilmember Patrick O’Donnell, have opposed the resolution, arguing that granting too many city officials access to private sales tax records is potentially an anti-business move. Municipal Code Amendment – Mayor Robert Garcia has placed an item on tonight’s agenda that would direct City Attorney Charles Parkin to prepare an amendment to the Long Beach Municipal Code relating to the Long Beach Economic Development Commission. As of press time, a staff report detailing the requested change was not yet released by the mayor’s office. Street Widening – The department of public works is recommending the city council authorize an easement deed for the purpose of widening the street at 3860 Lakewood Blvd. In a city memo, the street widening project would benefit Mercedes-Benz, which is in the process of renovating the former Boeing 717 facility. The new facility will be operated by Mercedes as a testing and preparation facility. The purpose of the street widening is to allow 5,917 square feet of public-right-of way to accommodate the construction of new turn lanes and traffic signal lights at the intersection of Lakewood Boulevard and Cover Street. Parking Lot Study – Councilmembers Lena Gonzalez and Suja Lowenthal are requesting that City Manager West conduct a study on downtown’s public and private parking lots and structures. They are requesting that West assess the efficiency of monthly usage and rates and examine safety issues as evidenced by high volumes of police calls at particular locations, among other things. Veterans Commission – Several members of the city council are requesting that City Attorney Parkin prepare an ordinance amending the Long Beach municipal code to establish a citywide veterans affairs commission. The proposed ordinance will require a minimum of four commissioners who are also veterans. The agenda item is being recommended by 9th District Councilmember Rex Richardson, Third District Councilmember Suzie Price and 7th District Councilmember Roberto Uranga. The proposed commission would serve as an advisory body to the city council on matters of the well-being of military veterans in Long Beach. Airport Noise Ordinance – The city council will consider whether or not to ask City Manager West to schedule an airport noise ordinance study session. The session will provide a historical presentation to councilmembers on the history of the airport noise ordinance that protects Long Beach neighborhoods impacted by airline flights. According to a city memo, some airlines have publicly stated a desire to change the Long Beach Airport. A new director of the airport is also expected to be appointed soon. If the session is approved, the city manager will be required to schedule the meeting within 45 days. Homeland Security Funding – Under consideration at tonight’s city council meeting is an item authorizing City Manager West to execute a contract with the County of Los Angeles allowing the city to receive up to $543,089 for the state homeland security grant program. The funding benefits (Please Continue To Next Page)

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the department of disaster preparedness and emergency communications as well as the fire department. Groundwater Monitoring – Tonight the city council considers transfer of several permits allowing the monitoring of groundwater at three different gas stations. The stations, formerly owned by ExxonMobil Corp. are now owned by Circle K. City staff is recommending the transfer of the permits since Circle K purchased the gas stations and is required to continue groundwater remediation at the sites. SEC – The department of financial management is recommending the city council decline the opportunity to voluntarily self-report any of the city’s bondissuing transactions to the Securities and Exchange Commission (SEC). Last March, the SEC issued its Municipalities Continuing Disclosure Cooperation

• Cataract Microsurgery including Crystalens© • Glaucoma Management & Surgery • Pterygium • Cosmetic Botox© and Fillers

(MCDC) initiative, offering favorable settlement terms to bond issuers for voluntarily reporting material misstatements made when issuing bonds. According to a city memo issued by the department of finance, “Although staff has worked diligently over the years to prevent a material misstatement, the rules of interpretations change and definitions of ‘material’ may become unclear; no operation is ever perfect and some mistakes may occur.” Airport Improvements – The city council is considering authorizing City Manager West to submit an application for the airport improvement program grant for fiscal year 2015 (FY15). The city plans to use the money for perimeter security improvements such as automatic gates, intrusion detection systems and security network infrastructure. In addition, the city council also considers staff

• Custom Blade-Free • Eyelid Plastic Surgery • Cornea Transplantation • Diabetic Eye Care • Glasses and Contact Lenses

recommendations to continue with improvements to Taxiways J and D and award the construction contract to SullyMiller Contracting Company of Brea. The amount of the contract is not to exceed $9,356,250. Disabled Access Appeals Board – Tonight the city council considers an amendment to the municipal code that would dissolve the Disabled Access Appeals Board (DAAB) and transfer its functions to the Board of Examiners, Appeals and Condemnation (BEAC). The reason for the request, which was made by Mayor Garcia, is that so few hearings are held by the DAAB because of infrequent meetings and a lack of written appeals to the board. According to a letter signed by City Attorney Parkin, “Staff of the development services department believes that the recommended action

will serve to conserve resources and strengthen the BEAC, while at the same time retaining all of the core functions of the DAAB.” Bixby Knolls Association – The Bixby Knolls Business Improvement Association (BKBIA) is asking the city council to continue the association’s assessment through September 30, 2015. If approved, membership for the BKBIA will be $250 for all businesses except for non-profits, which will be assessed a $150 fee. It is estimated the BKBIA will generate $131,487 in FY15. Changes To Public Hearings – Fifth District Councilmember Mungo and others are recommending the council vote to direct City Attorney Parkin to amend the municipal code to reduce costs imposed on city businesses. The proposed changes are (Please Continue To Next Page)

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NEWSWATCH 10 Long Beach Business Journal

City Hall News In Brief (Continued From Page 9)

aimed primarily at the noticing requirements for public hearings associated with zone changes, conditional use permits and other land use matters. The overriding goal is to reduce the mailing costs associated with such hearings. Labor Agreement – The city council considers tonight authorizing City Manager West to negotiate a citywide project labor agreement with the Los Angeles/Orange County Building and Construction Trades Council. The goal is to develop and implement a local workforce training and local hire policy. The agenda is sponsored by Councilmembers Gonzalez, Uranga, and Al Austin. Blight Removal – Several councilmembers are recommending that City Manager West and Director of Economic and Property Development Director Conway create a policy to allocate proceeds from the sale of city-owned property to fund blight removal. If approved, the policy will also fund economic development efforts, revolving loan funds for small business establishments and local incentives for business to locate or expand in the city. Currently, Long Beach has close to 50 properties ready for sale once the state approves its Long Range Property Management Plan. The properties are a remnant of the redevelopment era. Tom Modica – Tonight the city council votes to approve the appointment of

November 11-24, 2014 Deputy City Manager Tom Modica as the new assistant city manager. Douglas Park – On November 6, the planning commission voted unanimously to approve a waived parcel map request for a Douglas Park retail center located at 3801 Lakewood Blvd. The vote effectively allowed the petitioner, NTL Retail Investments LLC, to divide the existing 1.43-acre site into two smaller parcels, one

28,857 square feet and the other 33,332 square feet. The purpose of dividing the parcel is to allow the applicant to sell the properties individually at a later time if so desired. Two separate retail buildings are located on the parcels, each approximately 5,000 square feet. Located there are a Jersey Mike’s Subs, Starbucks and Flame Broiler. A California Fish Grill is expected to open at the location in December. ■

Civic Center RFP

create the financing structure for the P3 Project. In general, the Consultant will not have any direct assignments related to negotiating or development of documents. The Consultant’s role on the team is to provide advice and recommendations both to the Project Team and the Finance Director and the City Treasurer. The Consultant’s role will be to generally support the broad role and responsibilities of the Finance Director and City Treasurer in this Project. There are two key goals of this Scope of Work: minimize the project cost and risk to the City, and minimize the time on the project by the Finance Director and the Treasurer. Due to the nature of the work, this is intended to be a one or, at most, two person assignment. The number of hours is expected to be relatively low in relation to other consultants and advisors on the Project as there will not be specific assignments related to day-to-day work.” The bid due date is November 19. For more information (you must register as a vendor), visit: /www.planetbids.com/portal/portal.cfm?CompanyID=15810&BidI D=15852. ■

(Continued From Page 1)

In its October 28 edition, the Long Beach Business Journal presented a lengthy question and answer discussion with Mike Conway, the city’s director of economic and property development, who is overseeing the proposed project for a new civic center. Many of the questions concerned the cost associated with the proposed development and how current city hall expenses are being determined and applied to a new civic center complex. There are two proposers for the civic center site being considered. On November 7, the city issued the following RFP: “This RFP is for a financial consultant (Consultant) to serve as a consultant to the Finance Director on a Public-Private Partnership (P3) Project, should the City decide to move forward with negotiation of a Project Agreement. The Consultant would be a participant in a City and Developer team to prepare all documents and negotiate a Project Agreement and

Downtown Task Force Releases Revised Proposals For Entertainment Permitting Final Recommendations To Go To City Council In December ■ By SAMANTHA MEHLINGER Senior Writer On October 29, the Downtown Dining & Entertainment District task force held a meeting to discuss its revised proposed recommendations for changes to the entertainment permitting process in the district. The task force’s original recommendations were released in August. Revisions included a new proposal to allow venues to apply for outdoor amplified entertainment as part of the permitting process, a suggestion that was well received but with some caveats, according to Rachael Tanner, program specialist with the city manager’s office. “What we had proposed at this point was you can have outdoor amplified entertainment, which is a step forward. Right now you cannot have outdoor amplified entertainment,” Tanner said. Tanner works alongside the task force as a representative from the city manager’s office. Under the (Please Continue To Next Page)

Long Beach Police Department Crime Lab Honored With International Accreditation ■ By BRANDON FERGUSON Staff Writer The Long Beach Police Department’s Crime Laboratory recently joined the company of some of the world’s finest forensic agencies when it received accreditation last month. The honor was bestowed by the American Society of Crime Laboratory Directors – Laboratory Accreditation Board (ASCLD/LAB). Described as an arduous and challenging process, accreditation requires a forensic laboratory to conform to standards applied to similar facilities around the globe. Before becoming accredited, lab personnel were subject to a program of surveillance visits, annual internal Pictured above in the firearms lab are, from left: Supervising Criminalist Troy Ward, Criminalist audits and what is referred to as a robust and Acting Administrator Jasmine Jefferson and Criminalist Alexandra Giuliano. Behind them program of proficiency testing. are the dozens of guns stored in the lab’s firearms collection. At right, Criminalist Greg Gossage “This achievement is the highest level tests marijuana in the controlled substances area of the Long Beach Crime Laboratory. Below, of accreditation a crime laboratory can Heather Cochrane, a forensic specialist II, is shown examining a fingerprint found at a crime attain, and a major milestone,” Police scene. (Photographs by the Business Journal’s Thomas McConville). Chief Jim McDonnell said in a statement. “I’m thankful to Chief McDonnell and our police “Forensic analysis supports our ability to investigate department, particularly our crime lab employees, for this crimes, and is a vital law enforcement tool. This accom- outstanding achievement,” Mayor Robert Garcia said in a plishment is a testament to the hard work and dedication statement. “This is another example of using technology of our crime lab employees and demonstrates their com- to support public safety, and it’s something our entire city mitment to the residents of our community.” can be proud of.” The crime lab received accreditation in the fields of According to a press release issued by the police departdrug chemistry, toxicology, firearms, latent prints and ment, accreditation is highly valued for the oversight and crime scene. The lab began preparation for accreditation review it requires of safeguards established to maintain the in March of 2011, and now joins more than 332 other lab- accuracy and reliability of results produced by the laboratory. oratories worldwide that are recognized under the interna“The LBPD’s crime lab has established a robust qualtional testing program. Included in this elite group are the ity management system, demonstrated the ability to U.S. Secret Service, Orange County Crime Lab, and Los meet the over 400 internationally recognized standards Angeles County Sheriff’s Department, as well as the U.S. . . . and provided confidence in the quality of work proFood and Drug Administration. duced,” the release stated. ■

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NEWSWATCH November 11-24, 2014 new proposal, â&#x20AC;&#x153;You can have music playing through speakers, but maybe not a live band. We thought maybe it would be too noisy,â&#x20AC;? she explained. Attendees at the October 29 meeting were pleased with the idea of outdoor entertainment, but pointed out that, if outdoor entertainment was to be allowed, â&#x20AC;&#x153;it shouldnâ&#x20AC;&#x2122;t matter if it is live or recorded, or what type of entertainment it is as long as it stays within the sound ordinance and regulations,â&#x20AC;? Tanner said. Of the 15 attendees at the October 29 meeting, most were business owners in the district. Other proposed changes to the permitting process included defining a nightclub-type

Laserfiche Moves Quickly To Fill Top Positions Following Death Of Founder

Long Beach Business Journal 11 establishment as a venue with a Type 48 ABC liquor license that has entertainment, requiring nightclubs to go through an $8,500 conditional use permitting process in addition to obtaining an entertainment permit, and requiring establishments in the mixed-use portion of the district to apply for enhanced entertainment permits. Type 48 ABC liquor licenses apply to bar and nightclub-type establishments that do not serve food. In order to obtain an enhanced entertainment permit, a sound study performed by a licensed acoustical engineer would be required to determine if an establishment is able to meet the required sound standards as defined in municipal code. Once an establishment has an entertainment permit, they would be required to adhere to a revised standard for what is

considered a reasonable amount of noise emanating from the property. The revised task force proposal suggests defining this reasonable sound standard so that noise coming from an establishment must not be heard more than 50 feet from the property. The task force has been working on these recommendations since last year. In September 2013, the Long Beach City Council placed a moratorium on the issuance of entertainment permits to businesses with Type 48 ABC liquor licenses in the Downtown Dining & Entertainment District. The moratorium was placed so that the task force, made up of local residents, business owners and city representatives, could reevaluate the policies governing entertainment permitting in the district and propose revisions to those policies.

A comment period on the task forceâ&#x20AC;&#x2122;s revised proposed regulations closed yesterday, November 10. â&#x20AC;&#x153;We will have one final meeting of just the task force and city staff to look at the feedback we have gotten and prepare our final recommendations, and those will go to council in December,â&#x20AC;? Tanner said. â&#x20AC;&#x153;It has been a really positive public process so far and I am really excited about the participation we have seen from people who seem very knowledgeable and invested in what happens downtown. The task force and the city have been really responsive and eager to collaborate,â&#x20AC;? Tanner reflected. â&#x20AC;&#x153;The process is going really well and I am excited to see it come to a close [in a way] that I think most people will be happy with.â&#x20AC;? â&#x2013;

â&#x2013; By SAMANTHA MEHLINGER Senior Writer Long Beach-based Laserfiche, a software development company with a worldwide reach, announced last week the promotions of Chris Wacker to CEO and Karl Chan to president. Wacker has worked at Laserfiche since 1987 and has served as executive vice president since 2011. He fills the position left by his wife, the late Nien-Ling Wacker, founder of Laserfiche, who passed away in October. Chris Wacker The companyâ&#x20AC;&#x2122;s website states: â&#x20AC;&#x153;What started in 1987 as a small custom software solutions business has grown into the worldâ&#x20AC;&#x2122;s largest privately owned enterprise content management (ECM) software company. Along Karl Chan the way, weâ&#x20AC;&#x2122;ve picked up 4 million users and developed software that helps organizations make documents accessible and enables workplaces to operate at their full potential.â&#x20AC;? The firm has offices in Ft. Lauderdale and Washington, D.C., plus overseas locations in Toronto, London, Shanghai, Hong Kong and Guadalajara. Chan has worked at Laserfiche since 1989 and has served as chief technology officer since 2005. â&#x20AC;&#x153;For me, Nien-Lingâ&#x20AC;&#x2122;s passing is an indescribable loss. She was my partner in life, an inspiration and an exceptional person,â&#x20AC;? Wacker said in a statement. â&#x20AC;&#x153;While her vision will continue to drive Laserfiche, there will be a minimal impact on operations. Since 2012, we have been transitioning day-to-day management to a team that Karl and I are proud to lead,â&#x20AC;? he said. Chan commented, â&#x20AC;&#x153;For the last 25 years, Iâ&#x20AC;&#x2122;ve focused on pushing technical advancements in our software . . . While Iâ&#x20AC;&#x2122;ll continue to focus on the technology, Iâ&#x20AC;&#x2122;m excited to have the opportunity to shape the future of the company.â&#x20AC;? â&#x2013;

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NEWSWATCH 12 Long Beach Business Journal

November 11-24, 2014

The Restoration Hardware outlet at The Pike at Rainbow Harbor is in the process of expanding into vacant retail space on the second floor, where Mai Tai Bar recently closed. Restoration Hardware has been at The Pike since 2013 and was the first outlet store to locate there. DDR Corp., the property management firm, is in the process of repositioning The Pike as an outlet center, as evidenced by a proposal slated for California Coastal Commission review on November 14. (Photograph by the Business Journal’s Thomas McConville)

Retail Survey (Continued From Page 1)

during the upcoming holiday shopping season. For the city officials, the challenge is how to get high end retail stores to locate here. More than 97 percent of the 170 survey respondents work in Long Beach and 67 percent live in the city as well, but, collectively, they estimate that 70 percent of their holiday shopping will not be done at local retailers. Only two respondents, both women, say they would do all their shopping in the city. South Coast Plaza continues to be a big draw for residents. Responding to the question: “If you are going to shop outside Long Beach, what is your likely destination (you may choose more than one),” South Coast Plaza tops the list by 55 percent of the respondents. But online shopping receives the most attention as 71 percent indicate they are doing their holiday shopping online. Newport Beach’s Fashion

Island Center is a favored destination by 21 percent of the respondents, with Cerritos and Lakewood centers at 18 percent each. But the big surprise is how many people want an Apple store. Asked to name up to three stores they would like to see open in Long Beach, the top pick, by far, is an Apple store. It is the pick by 24 percent of the respondents. Other top choices are, in order: Nordstrom, Anthropology, Urban Outfitters and Kenneth Cole, all at 20 percent or less. The popularity of Apple may be a further indication that residents are becoming more tech oriented and that new businesses are reflecting a growing creative sector opening up shop here. It also helps that Mayor Robert Garcia is part of the younger, tech-savvy generation. In fact, one of his early announcements is that he is changing the city’s technology department to technology and innovation. The Pike and Rainbow Harbor, both straddling Shoreline Drive in Downtown Long Beach, may be where some of the stores recommended in the survey find a

home. H&M, a trendy clothing store, is set to open at The Pike next year, and Restoration Hardware, which has been popular since opening adjacent to the Aquarium about a year ago, is expanding, adding a second level where the Mai Tai Bar and Kavikas once operated. Other areas for an Apple store could be the Los Altos shopping centers along Bellflower Boulevard or part of a planned development at 2nd Street and Pacific Coast Highway. The nearest Apple store is in Cerritos, so locating one at The Pike should be enough market separation for Apple executives to consider it. Maybe a writing campaign to grab the attention of Apple is in order? Another item popping up from the survey is how to reach the many people who work in the city and have high disposable income, but live outside the city. An woman who works in the public sector on the east side said she is not familiar with Long Beach and “what stores exist here already.” The city may want to consider a promotional campaign reaching state and Northgate Market Opens On Cherry In North Long Beach A ribbon-cutting ceremony was held recently to celebrate the grand opening of a full-service González Northgate Market at 4700 Cherry Ave. The store, which has drawn large crowds since opening last month, is much needed in an area with few options for grocery shopping. Pictured in front of the 51,000 square-foot building is 7th District Councilmember Roberto Uranga (right) with Store Director Adrian Martinez. (Photographs by the Business Journal’s Thomas McConville)

federal employees. After all, the city does have scores of small retailers and boutiques along some of its corridors that provide top quality, high-end products. The survey, through an e-blast, provided a fairly representative sampling of working residents but did not request ethnicity: • 56 percent women • Age breakdown: 12% under 30; 24% 31-44; 28% 41-55; 19% 56-65; and 17% 66 or older. • 67% live in Long Beach; 21% Orange County; 6% South Bay; 3% Mid-Cities; and 3% other Los Angeles County. • Of the Long Beach residents, 55% live in East or Southeast Long Beach (90803, 90808, 90814, 90815 zip codes); 21% in the Bixby Knolls area (90807, 90810); 11% Downtown (90802); with the remainder scattered throughout the western portion of the city. One woman sums up what is probably the feeling of most local residents: Bring in “any upscale department store – would love to shop Long Beach!!” ■

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NEWSWATCH November 11-24, 2014

Long Beach Business Journal 13

Manufacturing And R&D Businesses Eligible For New State Tax Exemption ■ By BRANDON FERGUSON Staff Writer Certain California businesses may be eligible for a partial tax exemption when purchasing specific equipment and buildings. On July 17 the California Board of Equalization (BOE) unanimously approved a 4.1875 percent tax exemption for manufacturing, research and development. The vote signaled the end of a months-long process during which time BOE boardmembers developed the final wording of the exemption and met with stakeholders from various industries throughout the state – manufacturing, information technology, recycling and biotechnology. According to a statement issued by the BOE, the exemption was part of a broader economic development initiative approved by Gov. Jerry Brown. In the statement, BOE Boardmember George Runner described the exemption as an attempt to stanch the flow of California employers, lured out of state by the promise of lower tax rates. “For years, California has been losing manufacturing jobs to other states,” Runner said. “This new tax exemption will help us fight to win back these good-paying jobs. It’s vital to our economy we get this right.” Last week the BOE held a town hallstyle telephone conference call to field questions from the public about the new exemption. Representatives, including Board Chairman Jerome Horton, took more than 20 calls and discussed the various types of equipment and buildings that are eligible for the tax break. He explained that in order for a person or business to take advantage of the exemption they must be involved primarily in manufacturing or research and development. If a person or business is eligible, the exemption applies to purchases of “qualified tangible property,” which would include special purpose buildings, research equipment and machinery. A BOE rep explained that the exemption wouldn’t apply to consumable items with a useful life of less than a year. One person, who identified himself as a manufacturer from Los Angeles, asked if repair parts purchased for manufacturing equipment would qualify. BOE reps said those items would not be eligible because they aren’t capitalized.

“When you buy repair parts for your manufacturing equipment, you’re going to expense it in that year so it’s not a capitalized piece of equipment,” the BOE rep said. Another woman who said she operated a research and development firm asked if the computers used by engineers at her firm would qualify. “My understanding is that computers can qualify. They have to be used primarily for research and development so they can’t be used for other purposes like regular administration and things like that,” the BOE rep responded. Though the exemption was approved on July 17, it was enacted retroactively to July 1. Individuals who made purchases immediately following that date may be eligible for the exemption. For more information, visit www.boe.ca.gov/sutax/manufacturing_exemptions.htm. ■

Bynum Named To Commerce Council On Innovation And Entrepreneurship Lou Anne Bynum, executive vice president of college and economic development at Long Beach City College (LBCC) and a port harbor commissioner, was selected recently by U.S. Secretary of Commerce Penny Pritzker to serve on the National Advisory Council on Innovation and Entrepreneurship (NACIE). The council is dedicated to “identifying and recommending solutions to issues critical to driving the innovation economy, including enabling entrepreneurs and firms to successfully access and develop a skilled, globally competitive workforce,” according to the its web page. The 27 NACIE members were selected for two-year terms. “The new NACIE members are a diverse and dynamic group of successful entrepreneurs, innovators and investors, as well as leaders of nonprofit organizations and academia,” Pritzker said in a statement. “I look forward to participating on the council and sharing how we support small business as part of our economic development and award-winning entrepreneurship programs, and how we work with the business community to educate and train workers with the skills needed in today’s economy,” Bynum said in a statement. ■

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NEWSWATCH 14 Long Beach Business Journal

November 11-24, 2014

The diagonal line through the data on this graph illustrates a long-term trend of increasing temperatures. From 1970 to 2010, temperatures have risen to about one degree above the long-term average. (Chart provided by the Aquarium of the Pacific)

Jerry Schubel (right), president and CEO of the Aquarium of the Pacific, and Clay Sandidge, head of the Long Beach Area Chamber of Commerce’s Green Business Council (GBC) and president of green energy solutions company Muni-Fed Energy, chat at a GBC event at the Long Beach Marriott on October 29. Schubel was the keynote speaker of the event, which focused on water and transportation-related issues. He spoke about the likelihood and impacts of sea level rise. (Photograph by the Business Journal’s Thomas McConville)

Climate Change (Continued From Page 1)

that studies have shown San Mateo and Orange Counties are at risk of a 100-year event if sea levels rise by 4.6 feet, with San Francisco at greatest risk. That puts half a million people at risk of a natural event that on average only happens once in 100 hundred years, he noted.

“My assessment is, if you look at all of the data, the most probable worldwide increase in sea level will be somewhere between 3 and 7 feet,” Schubel said. “There are large regional differences, not because the ocean is behaving terribly differently, but the land does,” he said, explaining that, in areas where land is rising due to tectonic activity, sea level rise might not be as noticeable. Areas with

lower elevations would more greatly experience the impacts. For example, due to its low-lying delta region, parts of the country of Bangladesh are at risk of eventually going under sea level. “Pretty soon, it will be under water, and [finding] fresh water there will also be a major challenge. There will be millions of environmental refugees,” Schubel said. Although sea levels have fluctuated throughout the Earth’s history, they remained stable through much of mankind’s time on Earth, Schubel said. But sea levels have been rising more rapidly than has been typical in human history since about 1880. Since then, the sea rose 20 centimeters through 2005, according to data he presented in a PowerPoint slideshow. Two factors cause sea levels to rise: thermal expansion, the phenomenon in which water expands when heated, and the addition of new water from melting, Schubel explained. “Right now it is about 50/50 thermal expansion and the addition of new water,” he said of the causes of current sea level rise. “In the short term, thermal expansion probably will win out. Over the longer term of many decades, we expect that the addition of new water will begin to be the larger of these two signals.” Water level rise from melting ice only occurs from ice melt from land sources, he emphasized. Sea ice melting does not elevate the sea level, just as melting ice in a glass does not increase the amount of the water in that glass. Climate change is the culprit behind both thermal expansion and the addition of new water to the sea, Schubel stressed. “The scientific evidence is unequivocal that the earth is warming,” he said. From 1970 to 2010, temperature has steadily risen to slightly higher than one degree above the average long-term temperature, he pointed out. Fluctuations have occurred from decade to decade but, when a line is drawn through the data on a graph, the long-term trend of increasing temperature becomes clear. “If you look at the short term fluctuations, you could pick out years in there to make almost any case that you want. But the trend is very clear that the earth is warming, and that has consequences,” he said. Data measured at Mauna Loa, Hawaii, illustrated that the concentration of carbon dioxide in the atmosphere has increased by about 72 parts per million by volume during the same time period. Although most scientists attribute climate change to rising carbon dioxide in the atmosphere, at this point sea level rise is

imminent regardless of the reduction of the compound in the atmosphere. “If we were to eliminate all carbon dioxide emissions tomorrow, sea level would continue to rise for decades and maybe centuries. More slowly, but it would continue to rise,” Schubel said. The top five cities on our planet most at risk of being impacted by sea level rise are in the United States, according to a study by the United Nations. In order from numbers one through five, these cities are Miami, New York, New Orleans, the Tampa Bay/Fort Lauderdale area and Virginia Beach. San Francisco and Los Angeles are also high on the list, Schubel said. Insurance companies Allstate and State Farm are so concerned about the potential impacts of sea level rise in Florida that representatives from both companies have said they might pull service from the entire state, he noted. If rising seas were to impact California, one of the natural resources at greatest risk is wetlands. If sea levels rise, wetlands would be forced to migrate inward, which research has shown they have done in other periods of sea level rise, Schubel said. But in the past century, Californians have built out a vast amount of infrastructure that would prevent this from occurring. “In California, think of all of the coastal infrastructure that we put in: railways, highways, treatment plants, power plants . . . for wetlands to be able to migrate landward, there aren’t very many places they can go.” To prevent the loss of more of our wetlands (Schubel estimated 95 percent have already been lost to development), California must harness its scientific and engineering resources to plan ahead and design the coast it wants for the future, Schubel said. Another result of sea level rise is more impactful storms. “It’s not that the storms get stronger, but as sea level goes up, you put the same storm on top of it and on a higher sea, it will cause more damage,” Schubel said. In a follow-up interview with the Business Journal, Schubel went more in depth into the potential effects of rising sea level on extreme weather. “If you look at some storms, like hurricanes, they get their energy from the ocean, so it is not unreasonable to expect that, as the ocean and air warms, they will increase in intensity because they get their energy from a warmer ocean,” he said. “The probability of having extreme weather events goes up as the earth gets warmer,” he said, but noted that, while much (Please Continue To Top Of Next Page)

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NEWSWATCH November 11-24, 2014 has been discussed in the media about incredibly damaging storms like Hurricane Katrina and Superstorm Sandy possibly being tied to climate change, there is not yet enough data to uncover a trend. “The evidence like hurricanes or typhoons – we don’t have a long enough record to tie any

Long Beach Business Journal 15 single one to a changing climate,” he said. The impact of future stronger storms would depend on how well we prepare for them, Schubel noted. “The impact depends on how seriously we take it and how quickly we adapt to the new normal. The best way to curb the impacts of cli-

mate change, including sea level rise and stronger storms, is to decrease use of fossil fuels, Schubel said. There is no one solution to do so, but many solutions, he said – solar power, wind power, nuclear power, electric power – there are many ways to generate energy without emitting carbon

dioxide into the atmosphere. Harnessing these energy forms is the best way to reduce the impacts of climate change in the long term, he emphasized; but, in the short term, humanity is going to have to find ways to protect itself from the impacts of a warming world with rising seas. ■

New Lung Nodule Center Opens At Memorial’s Todd Cancer Institute On November 3, a new Lung Nodule Center for screening and treating potential and diagnosed lung cancer patients opened at the MemorialCare Todd Cancer Institute at Long Beach Memorial Medical Center. The center features innovative technology meant to help doctors better diagnose and treat lung cancer, as well as to reduce discomfort and recovery time for patients. Once such device is an endobronchial ultrasound machine, which enables doctors to use a small needle to biopsy swollen glands within lungs without having to create an incision. Using the equipment, “We go in and using real-time ultrasound imaging we can see the needle going into the gland,” Dr. Robert Liou, a pulmonologist at the center, told the Business Journal. The Lung Nodule Center is one of few centers in California to have a 320-Slice CT Scanner, which can take rapid images of a moving lung for more accurate diagnosis. After nodules are detected through this technology, a team of specialists works directly with patients to determine their cancer risk level, and how to monitor and treat the nodules. Following a first visit to the center, a nurse navigator manages and coordinates care for patients. “Our multidisciplinary team has designed a program to identify lung cancer at the earliest possible stage, when there is a better chance of a cure,” Deborah Oates, nurse navigator and registered nurse at the center, said in a statement. In a previously released statement, Liou said the center “gives patients the care and hope that they need to beat lung cancer.” Pictured, from left to right, are: Dr. Caroline Kim, pulmonologist; Oates; Liou; Dr. Jeffrey Riker, pulmonologist and medical director of respiratory care services for the Long Nodule Center; Dr. Corey Chakarun, diagnostic radiologist; Dr. Sherief Gamie, MemorialCare Imaging Center department chair and medical director of nuclear medicine for Long Beach Memorial; and Joanna Showman, chief CT technologist for the MemorialCare Imaging Center and Long Beach Memorial. (Photograph by the Business Journal’s Thomas McConville)

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NEWSWATCH 16 Long Beach Business Journal

November 11-24, 2014

Longshore Workers

Repairing The Breakwaters

(Continued From Page 1)

Workers from Connolly-Pacific Co., a rock quarrying and marine construction company, repair damage to the Middle Breakwater and San Pedro Breakwater outside the San Pedro Bay Ports. In late August, a hurricane off the coast of Mexico caused unusually strong waves to pound the three breakwaters protecting the ports and the Long Beach shoreline, damaging them. According to Greg Fuderer, senior public affairs specialist with the corps, the worker pictured is guiding a crane operator who is placing a 10-ton rock on the Middle Breakwater. About 20,000 to 30,000 tons of rocks are needed to complete the repairs, he said. In September, the U.S. Army Corps of Engineers, which owns the breakwaters, determined the cost to repair the most damaged portions of the breakwaters would total $20 million. The cost to repair the remaining lesser-damaged portions of the breakwaters still hasn’t been confirmed. Repairs began in October after the U.S. Army Corps of Engineers provided $5 million to Connolly-Pacific for the work, according to Fuderer. Jim Fields, project manager with the U.S. Army Corps of Engineers, said corps headquarters has provided another $4.5 million. They are trying to find additional funding to cover the remaining $10.5 million needed to repair the most damaged portions of the breakwaters, he noted. (Photograph by the U.S. Army Corps of Engineers)

The PMA is the negotiating party representing carriers and terminal operators on the West Coast in contract negotiations with the ILWU. Those negotiations had, until about two weeks ago, proceeded without public contention from either party. In the months since July 1, when the contract for longshore workers at West Coast ports expired, the PMA and ILWU have issued joint statements about once a month or so to let the public and their constituents know that negotiations were progressing without impacts to work at the ports. That changed on November 3, when the PMA issued a press release accusing the ILWU of initiating “orchestrated slowdowns” at the ports of Seattle and Tacoma during the peak of holiday shipping activity. Three days later, the PMA issued a similar statement announcing the slowdowns had spread to the Port of Los Angeles and Port of Long Beach, which together form the nation’s largest port complex. The ILWU informed the PMA it would not dispatch its workers to L.A. or Long Beach “on short notice,” according to the PMA. “We’ve used the same dispatch procedures for qualified crane operators since 1999,” PMA spokesperson Wade Gates said in a statement. “After 15 years, the ILWU leadership has unilaterally decided to change the rules for hundreds of qualified workers who are dispatched daily to help operate terminals at the Los Angeles and Long Beach ports,” he stated. The union did not respond to the PMA’s release dated November 6 but did issue a statement in response to the PMA’s November 3 announcement regarding northwestern ports. “PMA’s media offensive is designed to smear the union and to

Signal Hill Petroleum (Continued From Page 1)

ment, said the judges who awarded the firm the Exploration & Production Company of the Year award. “Through use of sustainability programs, innovative exploration and extraction techniques, environmental/emission controls and community enhancement programs, the company appears to be able to work very successfully in an urban environment where other companies may struggle,” the judges said. Founded in 1984, the company started with the acquisition of Shell’s assets on Signal Hill. Shell was repositioning in oil extraction operations elsewhere, and had put the Signal Hill assets up for sale. The field actually was owned by three large companies – Shell, ARCO and Texaco – and Signal Hill Petroleum spent the next two decades consolidating those properties into a single company.

West Coast Oil & Gas 2014 Annual Awards The West Coast 2014 Oil & Gas Awards Ceremony was held October 21 in Bakersfield. California State Sen. Jean Fuller (18th Senate District), who was the guest of honor at the awards ceremony, told the crowd gathered for the event, “This should be as important to California as the Academy Awards or moreso.

deflect responsibility from a growing congestion problem that is plaguing major West Coast ports,” the ILWU’s November 3 response stated. “PMA’s press statement dishonestly accuses the ILWU of breaking a supposed agreement ‘that normal operations at West Coast ports would continue until an agreement could be reached.’ This is a boldfaced lie,” the ILWU stated. “No such agreement was ever made, nor could it be made given the parties’ historic disagreement regarding the definition of ‘normal operations’ – a disagreement that has been the subject of arbitrations for decades.” Dr. Noel Hacegaba, chief commercial officer of the Port of Long Beach, did not directly answer the Business Journal’s inquiries as to whether or not the ILWU had initiated slowdowns or if any port tenants had reached out to him about the issue. In his position as chief commercial officer, Hacegaba is the principal contact for port customers. Away on a business trip to Tokyo, Hacegaba responded via e-mail with the

following statement: “The Port of Long Beach continues to monitor terminal activity very closely and engage our industry partners to facilitate solutions. At the same time, we continue to encourage our partners at the ILWU and the PMA to reach a resolution quickly and amicably. We are confident both parties understand the significance of their negotiations to our gateway and to the national economy. Equally important is our ability to maintain the confidence of the cargo owners in our gateway, and that is why we are focused on relieving congestion and fixing the chassis shortage today and for the future.” A shortage of chassis, equipment used to haul containers via truck, has caused work slowdowns at the San Pedro Bay ports over the past year. In its November 3 statement, the ILWU attributed current slowdowns to the chassis shortage in addition to a shortage of truck drivers and of rail car capacity for containers. On November 6, more than 100 organizations with interests in international

trade sent a co-signed letter to President Barack Obama expressing concern over the now-contentious labor negotiations between the ILWU and PMA. The groups included the National Retail Federation, the U.S. Chamber of Commerce, the United States Council for International Business and many others. “The sudden change in tone is alarming and suggests that a full shutdown of every West Coast port may be imminent. The impact this would have on jobs, downstream consumers, and the business operations of exporters, importers, retailers, transportation providers, manufacturers and other stakeholders would be catastrophic,” the letter stated. The letter continued, “The threat of a West Coast port shutdown is creating high levels of uncertainty in a fragile economic climate which has forced many businesses to once again undertake contingency plans that come at a significant cost to jobs and our economic competitiveness. The West Coast lockout 12 years ago cost the U.S.

“It was a very, very major accomplishment to aggregate ownership,” Slater says. “What that did was open the economic possibility of applying technology and doing a lot of things that had not been done before because of the fragmented ownership. As a more mature asset, the field relies on salt water injection to make the field productive, Slater says. Salt water injection is done “to re-pressurize it (the underground reserves) and mobilize the remaining oil,” he says. But drilling injection wells and extraction wells accurately relies on a thorough, detailed understanding of the subsurface soil formations. The high-end technology used by the company involves the three-dimensional mapping of the sub-strata in a way that Signal Hill Petroleum helped develop, a method of subsurface imaging that met the needs of an oil producing company trying to work in an urban environment. Traditional three-dimensional imaging

“is not very urban-friendly,” Slater says. “Lots of equipment, lots of cable.” Basically, the process relies on thousands of sensors that detect minute vibrations – but those sensors had to be connected together via cables. Signal Hill Petroleum began working with a company that was developing a system that collected the data wirelessly. When the wireless data gathering was perfected, Signal Hill Petroleum became the first oil company in the world to put such a system into field operation. What the data shows the company “is how the earth is cracked and bent. It’s similar to what people who study earthquakes are interested in,” Slater says. The data has, in fact, been shared with institutions and universities across the nation. And it has given the company a clearer view of the cracks, bends and folds of the earth's crust – data that the company uses to drill for crude. It has worked so well that the company actually is drilling new wells in the field – the first new wells in decades.

Currently, the company operates about 450 wells and produces about 3,500 barrels per day. And it does so largely in harmony with its neighbors. Debra Montalvo Russell, director of community relations, says Signal Hill Petroleum is a visible, accessible member of the community, and that helps maintain positive relations with the people who live and work near the company’s operations. “We are out there so much, and we are giving information, and we are so accessible,” she says. “The difference about our company is that we put a face to the name,” she says. “Most of our employees are local residents. They are faces that people will recognize in the store, in the community. So people know and trust us. We’re here as members of the community.” “We work really hard to be transparent, to be face-to-face, to provide real information, to open the gates,” Slater says. “Come on in and take a look – we’ll show you what we do and how we do it.” ■

That’s how important your industry is.” The winners of each of the 15 categories are chosen by a panel of judges, and are not revealed until the ceremony. In addition to Signal Hill Petroleum, other winners are: • Award for Drilling Excellence – Baker Hughes • Award for Excellence in Corporate Social Responsibility – E&B Natural Resources Management Corporation • Award for Excellence in Health & Safety –

Ensign United States Drilling (California) Inc. • Breitling Energy Future Industry Leader – Robert Murphy, Chevron • Construction Company of the Year – EIU of California Inc. • Consultancy of the Year – Roberts Companies • Engineering Company of the Year – TJ Cross Engineers, Inc. • General Industry Service Award – Tachyus • Industry Supplier of the Year – Metal Supply, Inc.

• Kenworth Truck Company Oilfield Services Company of the Year – Halliburton • MTS Solutions Industry Leader – Steve Layton, E&B Natural Resources Management Corporation • New Technology Development of the Year Award – Clearsign Combustion Corporation • VZ Environmental Award for Excellence in Environmental Stewardship - Preferred Sands • Water Management Company of the Year – Water Planet Engineering ■

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NEWSWATCH November 11-24, 2014 economy $1 billion a day. It took half a year for the ports to clear the backlog and recover from this 10-day shut down. A shutdown now could be even more costly. A new study released in June by the National Association of Manufacturers and the National Retail Federation anticipates impacts at a much greater cost in 2014 – nearly $2 billion in daily costs to the economy for a five-day interruption.” There has been no word from either the ILWU or PMA as to whether or not a work stoppage is indeed imminent. ■

Port News In Brief ■ By SAMANTHA MEHLINGER, Senior Writer

New Execs At Long Beach Port On October 27, the Long Beach Board of Harbor Commissioners confirmed the appointments of four new executives to the Port of Long Beach, all of whom were hired from outside of existing port staff: • Duane Kenagy was hired to fill the newly created position of capital programs executive, working directly under Chief Executive John Slangerup. Kenagy is responsible for overseeing the port’s capital improvement program. He leaves his position as senior vice president of Moffatt & Nichol, a Long Beach-based international engineering consulting firm, where he has worked since 1994. Kenagy has 30 years of engineering and management experience, has a bachelor’s degree in structural engineering and is a registered civil engineer. • Diane Pierson was appointed by the commission as director of project controls, which is also a newly created position. In this role, she serves in the engineering bureau’s program delivery group overseeing cost and scheduling for port development programs. She leaves a position at City of Hope in Duarte where she worked from 2011 to 2014 as project controls manager. Prior to that she served as the chief of project controls for the U.S. Army Corps of Engineers’ Los Angeles District. She has a bachelor’s degree in accounting and a master’s in business administration, and is a certified public accountant. • Appointed by harbor commissioners to fill the position of director of finance was Betsy Christie, who is to oversee all financial functions for the port. Christie most recently worked for container terminal company NYK Terminals as chief financial officer from 2008 to 2013 and previously held various high-level financial management positions for LifeMasters Supported SelfCare. She holds a bachelor’s degree in accounting and a master’s in business administration, and is a certified public accountant. • Also filling a vacated position is Fred Greco, who was appointed director of maintenance within the design and maintenance group of the engineering bureau. Prior to taking this position, Greco served as public works operations superintendent for the City of Anaheim since 2013. From 2002-2012, he served as deputy director of operations and maintenance for the Sacramento County Airport System. He has a bachelor’s degree in aeronautical operations and a master’s in natural science. In other port employee news, Michael Gold, director of communications and community relations, has been appointed to the

Long Beach Business Journal 17 Museum of Latin American Art (MOLAA) Board of Directors. “We are very pleased that Michael has joined our board and are looking forward to working with him over the course of his three-year term,” MOLAA President/CEO Stuart Ashman said in a statement. “Mike’s passion for art and culture, professional expertise and positive energy make him a great addition to our board.”

L.A. Port Reduces Air Emissions The recently released Port of Los Angeles inventory of air emissions for 2013 shows air pollution within the port was reduced significantly between 2005 and 2013. Diesel particulate matter, a carcinogen and contaminant, decreased by 80 percent, according to a November 3 statement from the port. Nitrogen oxides decreased 57 percent and sulfur oxides decreased 90 percent. These compounds are key causes of smog. Greenhouse gases, which are linked to climate change, were also reduced by about 23 percent. “Today, only 6.1 percent of all sulfur oxide emissions throughout the South Coast Air Basin are attributable to port operations – down sharply from 25 percent in 2005,” according to the port. “Likewise, port-related diesel particulate matter emissions are now at 4.8 percent, compared with 10 percent, and nitrogen oxide emissions have shrunk to 3.5 percent from 5 percent.” The port attributed the improvements in air quality to clean air measures it has implemented since 2005, including requiring the use of newer trucks that create fewer air emissions. “This port’s commitment to clean air is stronger than ever,” Gene Seroka, Port of Los Angeles executive director, said in a statement. ■

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PERSPECTIVE 18 Long Beach Business Journal

November 11-24, 2014

Leadership Lessons From The Wizard Of Oz Vol. XXVII No. 22 November 11-23, 2014 EDITOR & PUBLISHER George Economides SALES & MARKETING EXECUTIVE Heather Dann SALES & MARKETING ASSISTANT Cori Lambert OFFICE ASSISTANT Larry Duncan EDITORIAL DEPARTMENT SENIOR WRITER Samantha Mehlinger STAFF WRITER Brandon Ferguson CONTRIBUTING WRITER Michael Gougis PHOTOJOURNALIST Thomas McConville COPY EDITOR Pat Flynn The Long Beach Business Journal is a publication of South Coast Publishing, Inc., incorporated in the State of California in July 1985. It is published every other Tuesday (except between Christmas and midJanuary) – 25 copies annually. The Business Journal premiered March 1987 as the Long Beach Airport Business Journal. Reproduction in whole or in part without written permission is strictly prohibited unless otherwise stated. Opinions expressed by perspective writers and guest columnists are their views and not necessarily those of the Business Journal. Press releases should be sent to the address shown below. South Coast Publishing also produces Destinations and the Employee Times magazines. Office South Coast Publishing, Inc. 2599 E. 28th Street, Suite 212 Signal Hill, CA 90755 Ph: 562/988-1222 • Fx: 562/988-1239 www:LBBusinessJournal.com Advertising and Editorial Deadlines Wednesday prior to publication date. Note: Press releases should be faxed or mailed. No follow up calls, please. For a copy of the 2014 advertising and editorial calendar, please fax request to 562/988-1239. Include your name, company and address and a copy will be sent to you. Distribution: Minimum 22,000. Regular Office Hours Monday-Friday 8:30 a.m.-5:30 p.m. Business Journal Subscriptions Standard Bulk Rate: $28.00 1st Class: $70.00 (25 issues – 1 year)

eventy-two years ago MGM produced one of the best films of all time – The Wonderful Wizard Of Oz. It was a 1939 film starring Judy Garland, and it continues to inspire millions today. The Oz characters are ■ EFFECTIVE examples of natural great LEADERSHIP human behavior when By Mick Ukleja things go wrong. We get involved in the “Blame Game.” Just like Dorothy, Tin Man, Lion and Scarecrow, it is easy to excuse ourselves and accuse others. This results in being ineffective at work and in life. So what can we learn from our Oz characters? 1. Dorothy: “There’s no place like home.” With all her incredible adventures and friendships along the way, this was her constant goal throughout the storyline. LESSON #1 – Clarity of Purpose. She was focused on this goal. She never lost this very clear picture of the future, in spite of all the distractions. 2. Dorothy: “What would you do with a brain if you had one?” The motivations for Dorothy, Tin Man, Scarecrow and Lion for traveling that Yellow Brick Road were a little different. But even so, their destination was the same. All of them needed to get to the Emerald City to see the Wizard. LESSON #2 – Great strategies take into consideration individual goals and motivations. By traveling together towards the same goal their safety and success were enhanced. The individual and organizational goals are aligned in such a way as to accomplish the higher purpose. Good leaders understand this connection.

The Tin Man needed a heart. The Lion needed courage. The Scarecrow needed a brain. Dorothy needed her home. A leader must be aware of the different needs and motivations of the team. 3. All Four In Unison: “Lions and tigers and bears! Oh My!” Now this was difficult enough for them. Yet just when you think things can’t get worse, here comes those pesky flying monkeys. LESSON #3 – Deal with it. Great organizations face tough realities head on. Yet they do not lose sight of their mission. Every worthwhile venture encounters lions, tigers, bears and those flying monkeys. Rather than become distracted, deal with it. 4. Oz: “I am the great and powerful Oz!! Who are you?!” LESSON #4 – Understand the difference between your role and who you really are. Having a professional PERSONA must be balanced by your PERSON – your personal authenticity. The Wizard finally came out from behind his props and controls – his persona – and engaged this strange quartet of people as a real person. That’s when the real magic begins. The team develops a vulnerability-based trust that pulls them together. Customers are drawn to the honesty of spirit and the integrity of action. The image and brand can pull people in the door, but just as with the Wizard, it’s the authentic relationships that keeps them coming back. 5. Wizard: “Back where I come from we have universities, places of great learning, where people go to become great thinkers. And when they come out they think deep thoughts, and with no more brains than you have. But they have one thing you haven’t got – a diploma.” LESSON #5 – How leaders frame issues helps others transform for the better.

Leaders help their followers look at the world in a way which opens it up and encourages progress. He reframed what could be done even without a “brain.” A diploma was possible. Doors which seemed closed are now open. 6. Glinda: “Are you forgetting your ruby slippers?” LESSON #6 – No one can do it for you. Glinda has informed Dorothy that she has always had the power to go home. Dorothy asks, “Why didn’t you tell me?” Glinda said, “Because you have to find out for yourself.” Good leaders know that some things have to be experienced. You can’t always get the important lesson from being taught or reading a book. The process of becoming a leader is something that no one else can do for you. Glinda says, “It’s always best to start at the beginning, and all you do is follow the Yellow Brick Road.” It’s your journey. OZ-SOME LESSONS: • Gain clarity of purpose • Align individual goals with organizational goals • Deal with problems as soon as they show up • Understand the difference between your role and who you really are • Learn to reframe so others can see possibilities • There are some things that no one can do for you, or you for others. (Mick Ukleja has co-authored several books including Managing the Millennials. He helps organizations create environments in which all generations can thrive. He is a keynote speaker and president of LeadershipTraq, a leadership consulting firm. His clients have included Fortune 500 corporations and nonprofit organizations. Check his weekly blog at www.leadershiptraq.com.)

Air Quality And How It Affects Your Lungs t is something that the more than 10 million Los Angeles county residents don’t really think twice about. Air is always there and there is no risk of running out of it, like water. The fact of the matter is though that air, and the quality of it, is vital to your ■ HEALTHWISE By Robert Liou, M.D. lungs and your health. According to the American Lung Association’s State of the Air 2014 Report, the greater Long Beach/Los Angeles area ranked in the Top-5 as one of the United States’ worst cities in air quality. The Long Beach/Los Angeles area ranked 1st as the most ozone polluted city in the country, 3rd in long-term particle pollution and 4th in short-term particle pollution. These numbers seem troubling, but it is important to understand what ozone and particle pollution mean so you can protect yourself, and help to improve the air around you since air quality affects lung health of 100 percent of the population. Ozone is a gas molecule composed of three oxygen atoms. Ozone develops in the atmosphere from gases that come out of tailpipes, smokestacks and many other

sources. When these gases come in contact with sunlight, they react and form ozone smog. Excessive amounts of ozone are harmful to breathe as it aggressively attacks lung tissue by reacting chemically with it. Particle pollution refers to a mix of very tiny solid and liquid particles that are in the air we breathe. These particles are created by mechanical and chemical processes like construction or burning fossil fuels. Our natural defenses help us to keep the larger particles out of our lungs, but those defenses don’t keep out the smaller particles which can get trapped in your lungs. Once that occurs, particles can diminish lung function so that people begin to cough, wheeze or have inflammation of lung tissue with short-term exposure. Long-term exposure to particle pollution can lead to lung cancer or even death. Nearly half of the people in the U.S. live in counties that have unhealthy levels of either ozone or particle pollution but here’s how you can help protect the lung health of yourself and your loved ones: • Pay attention to forecasts for high air pollution days • Avoid exercising near high-traffic areas • Avoid exercising outdoors when pollution levels are high • Do not let anyone smoke indoors, and support measures to make all places smoke free

• Reduce the use of fireplaces and woodburning stoves Poor air quality can cause or contribute to the development of infections, lung cancer, and chronic lung diseases such as asthma or other respiratory conditions. In addition, it can cause headaches, dry eyes, nasal congestion, nausea and fatigue. Also, people who already have lung disease are at greater risk. However, air has gotten cleaner in recent years and there are ways that you can give back to your community to help make your air cleaner: • Drive less by using public transportation or car pool with work colleagues or friends: • Walk or bike when possible to avoid driving, and exercise at the same time • Make a conscious effort to turn out the lights and use energy efficient appliances • Don’t burn wood or trash • Make sure your local school system requires clean school buses to reduce emissions • Shop with a reusable bag instead of using paper and plastic bags If you are always aware of these proactive steps and do your part to help clean the air, then you are not only assisting to better your community but you are helping your lung health as well. (Robert Liou, M.D., is a pulmonologist at the Lung Nodule Center, MemorialCare Todd Cancer Institute at Long Beach Memorial.)

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PERSPECTIVE November 11-24, 2014

Long Beach Business Journal 19

Wages And Housing Growth At Odds on epending whom you listen to and what survey is cited, housing prices are up year over year at various rates – and each price range has its own peculiarities. There certainly isn’t a ■ REALTY VIEWS simple answer – that is By Terry Ross why so many conflicting reports regularly appear about the status of housing. The one question that really trumps all of the others when it comes to housing is, how much can people afford? There was a time – in the early to middle part of the last decade – when prices escalated at a pace that had no relation to what consumers could afford given incomes and expenses. That housing boom was made possible by government policy encouraging home ownership by allowing lenders to offer loan products with low introductory rates and stated income programs to get buyers in a property, with the only vehicle to sustain them being the ability to easily pull equity out of the home when extra funds were needed. At some point, that equity would be

exhausted and, when prices stopped going up and then started to fall around 2007, the housing bubble burst. The real kicker was that the two forms of income that sustain a robust housing market – wages and property appreciation – were pretty much tapped out. Enter the Great Recession with bailouts, reform and much tighter lending standards. From the depths of this economic fiasco, housing has climbed out of its hole to a point. Prices have gone up – not to where they were, but higher than in 2009 in most instances – and jobs appear to be more plentiful. But two factors are playing against a quick – or even steady – upsurge in housing transactions and prices. Lending regulations, as most are aware, are nowhere near as liberal as they were a decade ago, with mostly only borrowers with fully verifiable income and assets able to qualify for a mortgage. Perhaps this is how it should be to guard against another housing collapse, but the reality is that many borrowers who could get a loan 10 years ago cannot do so today. This reality alone is enough to dampen the housing market, but the really troubling statistic that has not been very widely discussed is the vir-

tual standstill in real income when you adjust for inflation. In California, for example, per capita income and the Consumer Price Index (CPI) have increased at a similar rate over the past 10 years. Therefore, income looks like it’s doubled in the past 20 years, but it hasn’t gone very far at all. Most of the income gained has gone towards paying for goods at increased prices – inflation’s ubiquitous bite on the dollar earned. Real incomes rose pretty quickly from 1995-2000. But, since then, real income hasn’t changed much at all, from $46,512 in 2000 to $48,434 today (in 2013 dollars). That’s an increase of just four percent over the course of 13 years. Nationally, the average American family makes less than it did 15 years ago in real dollars. When you compare this with the change in home prices over the same period, home prices in California were an astonishing 160 percent higher in 2013 than in 2000. Compare this to the four percent real increase in income over the same period, and it is not hard to see the disparity. To further demonstrate that home

prices are so far beyond the reach of most potential buyer-occupants, consider the fact that it has taken California nearly seven years to regain all jobs lost due to the 2007-08 recession. That doesn’t even take into account the additional 1.2 million jobs still needed to cover the increase in the working-age population. At our current rate of job additions, this “real” jobs recovery is expected in 2019. Because of the flood of investors in the market two years ago, prices surged but started to flatten as 2013 came to a close. With the so-called “real buyers” or owner occupants dominating the market again, the real income factor becomes more important to the health of the housing market. Right now the regulatory agencies are looking at some important changes to make it easier to obtain home mortgages, but, until we see some real income growth to go along with it, housing appreciation is going to trudge along pretty much at the rate it is moving today. (Terry Ross, the broker-owner of TR Properties, will answer any questions about today’s real estate market. E-mail questions to Realty Views at terryross1@cs.com or call 949/457-4922.)

Election Results And The Trade Agenda epending upon where you fall on the political spectrum, last week’s election results were either a referendum on the president’s policies or part of the natural political cycle, ■ TRADE AND just what happens to a TRANSPORTATION second-term president By Tom O’Brien in a midterm election. Many of the political ads in the run-up to the election not surprisingly dealt with health care, job growth, or the (in)effectiveness of policy makers of all stripes in Washington, D.C. Foreign policy is sometimes on the agenda but usually falls victim to the “all politics is local” rule. This is particularly the case with foreign trade agreements. The complex and often long and drawn-out development of trade policy doesn’t make for a good sound bite. And yet, election results matter for global trade. In January, President Obama asked Congress to grant him trade promotion authority, also known as fast track authority, which would allow him to submit trade agreements to Congress for an upor-down vote without the risk of House or Senate amendments or a filibuster. It’s a temporary power that legislation authorized in 1974 and again in 2002 but which expired in 2007. It makes the president’s job easier and sends a signal to potential free trade partners that the deal negotiated is the one that Congress will ultimately approve. Trade promotion authority is an essential part of the president’s plan to wrap up two major trade agreements, the Trans-Pacific

Partnership (TPP) and the Transatlantic Trade and Investment Partnership (TTIP). The former is a proposed agreement involving 12 nations including the U.S., Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam. From the perspective of the President’s Office of the U.S. Trade Representative (USTR), the TPP is a good opportunity to open up new markets for American goods and services in a region that has become dominated by Chinese trade and investment. The latter is a proposed pact with the 28 members of the European Union. While the rest of the nation has been focused on the elections, the USTR has been eyeing a date later this month when President Obama travels to Asia for meetings with, among others, China’s President Xi Jinping. The hope is that the trip will provide some momentum to close a deal on Pacific trade. The ironic thing is that the devastating blow the Democrats took on election night could help the president move both pacts forward. Some of the biggest opposition to giving Obama fast track authority has come from members of his own party who want to reserve the right to amend aspects of the agreement pertaining to labor and environmental protections. Similar opposition to cross-border trade agreements with Canada and Mexico have come from groups normally friendly to the president, including labor unions. Republicans are normally considered more trade-friendly and as a result more likely to grant the president trade promotion authority. But even there, things are not so clear cut. There’s a natural reluctance on the part of Congress to relin-

quish agenda-setting authority to any president, particularly one from the opposing party. And both Democrats and Republicans from regions with key industries that are perceived to be vulnerable to freer trade – think certain segments of agriculture and the automotive industry – are likely to move more cautiously than those with more to gain from a trade agreement. Which brings us back to local politics. The jockeying has already begun for the 2016 presidential election, and both parties may decide it’s simply wiser (and easier) to avoid having a discussion about winners and losers of trade policy with the electorate. Of course, while we’re having the debate here, the same thing is happening in the countries with whom the USTR is negotiating. The fact that any agreement

can be hammered out at all is amazing, let alone among a group of 12 or 29 nations. It’s clear evidence of the importance of global trade to the economic well-being of nations, despite the clear risk to some homegrown industries. The prospects for fast track authority may be brighter with a Republican-controlled Congress, but, regardless of the outcome of that debate, trade will continue. Cargo likes the path of least resistance. If the lack of a trade agreement raises barriers, it will look for an alternative. In most cases, it finds one. (Dr. Thomas O’Brien is the interim executive director of the Center for International Trade and Transportation at CSULB and an associate director for the METRANS Transportation Center, a partnership of USC and CSULB.)

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