August 19-September 1, 2014 Section A by Long Beach Business Journal

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Health Wise

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

Concuss ions And ACL Injuries – A Duo That Is On The R ise Youth Sp In orts

ot nding Ro Understa n e d f Stu t Causes O Failure Learning 4 a See P ge

See Page 18

lbbusinessjournal.com

August 19-September 1, 2014

Legislation

Downtown

‘Job Killer’ Bills Advance To Senate Floor

Urban Land Institute Recommendations For Improved Access To Waterfront ■ By BRANDON FERGUSON Staff Writer

■ By SAMANTHA MEHLINGER Senior Writer

n August 14, the California O Senate Appropriations Committee passed five bills labeled “job killers” by the California Chamber of Commerce to the Senate floor, where all but one (Assembly Bill 1897) awaited review by the entire Senate on August 18, after the Business Journal went to press.

This empty space at the southeast corner of Pine Avenue and Ocean Boulevard may be converted into a public gathering area, according to Sean Warner, pictured, placemaking manager for the Downtown Long Beach Associates. (Photograph by the Business Journal’s Thomas McConville)

group of panelists from the Urban Land Institute (ULI) gathered August 1 at the Ocean Theater at the Aquarium of the Pacific to present preliminary recommendations for improved pedestrian access in the downtown waterfront area. Referred to as the Technical Assistance Panel (TAP), the group of seven consultants and one chairman represented the

Mandated Sick Leave Opposed by the Long Beach Area Chamber of Commerce, many other California city chambers and CalChamber, Assembly Bill (AB) 1522 passed the Senate Appropriations Committee unanimously. Authored by Assemblymember Lorena Gonzalez of San Diego, the bill would require employers to give sick days accrued “at a rate of no less than one hour for every 30 (Please Continue To Page 8)

Health Care Quarterly

• Organ Transplants • The ACA And Emergency Rooms • Improvements To Pediatric Services See Section B

Paramedics Fire Chief Mike DuRee On RMD Program: ‘Paramedic Response Times Are Faster,’ But Union Still Has Issues ■ By BRANDON FERGUSON Staff Writer ccording to Long Beach A Fire Chief Michael DuRee, a two-year pilot program known as Rapid Medic Deployment (RMD) appears to be working well despite continued criticism from the Firefighters Local 372. The program, which reconfigured how the city delivers paramedic services, was implemented on July 10, following a two-year review by the Los Angeles County Emergency Medical Services Commission and the Long Beach City Council. Based on department dispatch data for 5,000 calls, DuRee told the Business Journal that since the program’s launch, the time it takes for a paramedic to arrive on an emergency scene dropped on

Long Beach Business Journal 2599 E. 28th Street, Suite 212 Signal Hill, CA 90755-2139 562/988-1222 • www.lbbusinessjournal.com

average by more than a minute and a half. Between July 10 and August 6 of this year the average paramedic response time was 6 minutes and 12 seconds, while in 2013, the average response was 7 minutes and 57 seconds, DuRee said. When asked how the data was calculated, DuRee said, “It’s CAD [Computer Aided Dispatch] data. We’re not making it up.” “The medical data shows the faster you can deliver the highest level of medical care to the scene

of somebody having a medical problem, the greater chance for a successful outcome,” DuRee explained. Prior to implementing the RMD model, all eight of the city’s paramedic rescue ambulances were staffed with two firefighter paramedics. Meanwhile, nine of the city’s 17 engines had one firefighter paramedic. Under the new model, one firefighter paramedic from each ambulance has since been placed on an engine, staffing

hotel, urban planning, real estate and transportation industries. The TAP convened at the request of the Downtown Long Beach Associates (DLBA), which paid roughly $25,000 for the ULI study. DLBA is a nonprofit group that oversees the downtown business improvement district (BID) and is funded by an assessment fee for downtown area business and property owners. The group seeks to improve the economic health of the area. Sean Warner, DLBA’s placemaking manager, said visitors and residents of Long Beach experience a general disconnect between the downtown area and the ocean. “Either people go down to the waterfront area and (Please Continue To Page 10)

Civic Center City Council To Hold Study Session On September 16 ■ By BRANDON FERGUSON Staff Writer

(Please Continue To Page 12)

Women In Business Profiles

he Long Beach City T Council is holding a study session on September 16 to discuss two proposals for a new civic center complex, according to City Manager Patrick West. “We’ll talk about rehabilitation, we’ll talk about where this all started, we’ll talk about the two developers we have,” West said. Last month, the Business Journal reported that city staff was expected to give a report on the two proposals, one by Plenary Edmore Civic Partners and the other by CivicCore Alliance, but

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Coming In The September 2 Issue: These Long Beach women entrepreneurs include an attorney, retail store owner, interior designer and travel company owner. Also, articles about bank programs targeting women entrepreneurs and results of a recent study about women business owners. See stories on Pages 14-17

Q&A With Mayor Robert Garcia And The Business Journal’s Annual, In-depth Review Of City Salaries – “$100,000 Club”

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INSIDE THIS ISSUE 2 Long Beach Business Journal

August 19-September 1, 2014

3 Newswatch 3-Next Phase Of Alamitos Bay Project 3-Long Beach City Hall News In Brief 4-Airport Director Search Underway 4-Rancho Los Cerritos Opens New California Native Garden 6-Long Beach Budget Discussions Continue 8-BNSF Lawsuit Update 10-Federal Reserve Survey Finds Many Americans Struggling 12-International Trade News In Brief 13-People In The News

14 Women In Business 14-U.S. Chamber Study: Female Entrepreneurs Optimistic 14-Women Attract The Attention Financial Institutions 14-Women In Business Profile: Denise Kuper 16-Women In Business Profile: Christina Lincicum 16-Women In Business Profile: Alisa Moffett 17-Women In Business Profile: Janet Moore

18 Perspective Realty Views REO Volume Increasing By Terry Ross Effective Leadership Lead Change. Manage Transitions. By Mick Ukleja HealthWise Concussions And ACL Injuries – A Duo That Is On The Rise In Youth Sports By Dr. Kenneth Huh Trade And Transportation Pursuing Intelligent Transportation Systems By Tom O’Brien and Steve Lantz EarthTalk Antarctica’s Melting And Its Impact On Southern California By Roddy Scheer and Doug Moss

Section B Health Care Quarterly 2-B-With Long Organ Transplant Wait Times Statewide, Organizations Seek To Boost Donations 5-B-After Affordable Care Act Implementation, Local Hospital Reps Reflect On Emergency Room Impacts 7-B-Local Pediatric Patients Benefit From Better Access To, And Quality Care From, Advanced Technologies

Long Beach Corporate Presence A Look At The City’s Growing Corporate Landscape

New Business Journal Employee . . . Cori Lambert, a Long Beach resident for the past 14 years, has joined the Business Journal as a sales and marketing assistant. She reports to Heather Dann, sales and marketing executive.

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NEWSWATCH August 19-September 1, 2014

Long Beach Business Journal 3

City Council To Consider Next Phase Of Alamitos Bay Project

Long Beach City Hall News In Brief ■ By BRANDON FERGUSON Staff Writer Budget Oversight Committee Meetings – The City Council Budget Oversight Committee meets August 19, September 2 and September 9 at 4 p.m. in the council chamber. Chaired by Vice Mayor Suja Lowenthal, the public is welcome to attend. The three-member committee, which includes 4th District Councilmember Patrick O’Donnell and Councilmember Mungo, deliberates over facts, figures and projections associated with the FY15 budget. According to the vice mayor, who invited residents to attend via e-mail, the committee is a “watchdog for city council, responsible for reviewing the budget in depth and developing fiscal policies for recommendation to the city council.” FY15 Budget – Tonight (August 19), the city council holds its third hearing on the proposed FY15 budget. The discussion will focus on an overview of health and human services, public works and the water department. The city council votes on the final budget in mid-September, which goes into effect on October 1. The following council districts have scheduled budget meetings: August 18: 1st District Councilmember Lena Gonzalez hosts a budget meeting at 6 p.m. at Drake Park, 951 Marina Ave. August 20: Gonzalez hosts a budget meeting for Spanish speakers at the Long Beach Rescue Mission, 1430 Pacific Ave. August 25: 5th District Councilmember Stacy Mungo hosts a budget meeting at 6 (Please Continue To Page 4)

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Tonight (August 19), the city council considers an agenda item amending a contract with Bellingham Marine Industries Inc. to embark on Phase 5 of the Alamitos Bay Marina project. If approved, the item authorizes an increase of $9,575,610 for a revised amount not to exceed $51,006,617. Work was first authorized on the marina, originally built in the 1950s and 1960s, in February of 2010. The multi-phase plan calls for a total rebuild of seven of the marina’s eight basins. Thus far, work has been finished on the project’s first three phases, which include Basins 1, 4 and 5. Phase 5 was approved in April and involves upgrades to the electrical infrastructure of Basins 2 and 3. According to a city memo, Phase 4 is scheduled for completion in October. Phase 5 will include reconstruction of Docks 11 through 14, which are located in Basin 2. The existing docks are slated to be demolished and the surrounding area dredged, followed by the construction of new concrete docks. The estimated cost for the phase is $10.9 million.

In March the Business Journal reported that the project had experienced delays due to questions about whether or not there were sufficient funds to continue. During an April 15 city council meeting, City Manager Patrick West explained that $10.9 million had been transferred from the Marina Fund to the Tidelands Fund at some point in the 1990s. A June ruling by the State Lands Commission, which oversees the Tidelands Fund, approved the transfer of $10.9 million to be used in the Alamitos Bay rebuild. “There’s $10.9 million right now coming from the Tidelands Fund,” said George Chapjian, director of parks, recreation and marine. “That’s going to continue this project, this next phase.” He explained that work would likely begin in October and last for nine months. After Phase 5 is completed, Chapjian explained that work on two smaller basins remains. “The city’s looking at financing some bonds to pay for the remainder of the rebuild. Hopefully by that time the bonds will have been sold and it will be a seamless process,” Chapjian said. A city memo indicates that a $34 million to $40 million bond issue in 2015, funded from slip fees, as well as a likely additional $15 million in funding from Tidelands, is expected to be sufficient to cover the remainder of the project. ■

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NEWSWATCH 4 Long Beach Business Journal

City Hall News In Brief

August 19-September 1, 2014

Airport Director Search Underway

(Continued From Page 3)

Understanding Root Causes Of Student Learning Failure to the According National Center for Educational Statistics, roughly 360,000 out of 1.6 million bachelor’s degrees in the U.S. in 2009-2010 were conferred to business majors. Business is the largest group of all majors By Thang N. Nguyen, and is more than twice the Ph.D., Associate Professor, Department size of Social Sciences and of Information Systems History (170,000 degrees), three times larger than Health Sciences (130,000 degrees), and 3.5 times larger than Education (100,000 degrees). The Business Statistics course experiences a higher student attrition rate and lower success rate than any other undergraduate business course and is an ongoing concern to faculty, administration, and students themselves. Many suggestions on how to improve the student success rate and lower attrition rate are offered. Academic advising, tutoring services, and oneunit supplemental instruction courses are often provided. However, little attention is paid to student learning from the student perspective, which can help us understand the underlying reasons of low passing rates. Last semester we introduced a different approach to analyze the problem, adapted from George Kelly’s Personal Construct Theory and Repertory Grid technique. We conducted two survey/interviews to elicit and evaluate student learning and find the root causes of the low passing rates. The first survey was conducted on the first day of class and provided an initial assessment of student’s ability. The second was given after mid-term exams to identify students’ difficulties in learning. Students identified a number of elements which they considered were most problematic to their learning process (e.g. work, social life, etc.). They selected three elements at a time (triad), two of them with a commonality, called emerging construct, both different from the third element, called the implicit construct. Each triad was evaluated according to Kelly’s theory where students examined the reasons why and how each element was similar or different in terms of learning difficulty. Students then rated all constructs of elements on a 1-5 scale. This process created a grid, which has assisted both faculty and students in understanding the factors affecting their learning. Through this process, students reported they obtained an initial understanding of why they were failing and started their own remedy or improvement for the remaining of the semester. This has proven useful not only in business statistics, but also other business courses. (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.) ■

p.m. at Tracy’s Grill, 5511 Spring St. August 26: 6th District Councilmember Dee Andrews hosts a budget meeting at 6 p.m. at Ernest McBride Park, 1550 Martin Luther King, Jr. Ave. Reprographic Services – By a vote of 9-0, the council awarded a contract to C2 Reprographics of Costa Mesa to provide as-needed blueprinting and reprographic services. The annual contract is not to exceed $580,000 over a two-year period. The vote also authorizes City Manager West to renew the contract at his discretion for two additional one-year periods. City Ordinance On Controlled Substances – The council voted 9-0 to approve a new city ordinance aimed at curbing public nuisances associated with the manufacture and sale of controlled substances. The ordinance gives the city attorney’s office the power to file unlawful detainer actions and evict tenants who sell or manufacture narcotics from rental units. The city attorney’s office has participated in a statewide pilot program for 10 years allowing the unlawful detainer actions; however, the program recently sunset. A 2013 study by the city attorney’s office concluded the Long Beach program was the most efficient and intensive use of the pilot program statewide. A handful of residents took to the podium during public comments to oppose the ordinance saying that it could violate state law, which allows authorized individuals to use medical marijuana. One resident was concerned by the broad language of the ordinance and its definition of the term “controlled substance.” “[It] may apply to medical marijuana in the City of Long Beach. If that’s the case, this action is not in compliance with federal or state law,” he said. Prior to casting his vote, 8th District Councilmember Al Austin asked City Attorney Charles Parkin whether or not the intent of the law was to prosecute people using medical marijuana. Parkin answered that was not the law’s intent. EKG Units – The city council voted unanimously to authorize the city manager to execute a contract with Zoll Medical Corporation of Chelmsfor, Massachusetts, for the purchase of 17, 12-lead electro cardiogram (EKG) units, batteries and accessories. The amount of the purchase is not to exceed $557,919 for a one-year period. The council’s vote

Rancho Los Cerritos Opens New California Native Garden A multi-year, multi-agency effort to prepare a California Native Garden at the Rancho Los Cerritos Historic Site in Bixby Knolls has finally come to fruition. A ribbon cutting ceremony was held August 13 for the garden, which, according to a Rancho statement, “extends from the newly constructed visitor’s center to the northern perimeter of the property, and adds more than 30,000 square feet of rehabilitated landscape to the site. Combined with native plantings around the visitor center and along the western perimeter of the property, as well as the recently rehabilitated arroyo, well over 1.5 contiguous acres of land have been planted with California natives.” Funding was provided by the Port of Long Beach Greenhouse Gas Emissions Reduction Mitigation grant. Pictured at the ceremony are, from left: Heather Tomley, the port’s director of environmental planning; William Lorbeer, president of the Rancho Los Cerritos Foundation Board of Directors; Linda Forde, principal with NUVIS Landscape Architecture & Planning; Dale Hills, construction manager; Ellen Calomiris, executive director of the Rancho; Dennis Aldridge, owner of DMA Greencare Contracting; and Robert Doucette, greencare specialist with DMA. The Rancho’s current Monterrey-style adobe was built in 1844. The City of Long Beach acquired Rancho Los Cerritos in 1955 and opened it to the public as a museum. (Photographs by the Business Journal’s Thomas McConville)

■ By BRANDON FERGUSON Staff Writer A search is underway to find a new director for the Long Beach Airport (LGB). The previous director, Mario Rodriguez, who served in the position since 2009, announced his plans to take a job as the executive director of the Indianapolis Airport Authority in April. Since May, Deputy City Manager Reginald Harris has served as interim director. City Manager Patrick West told the Business Journal last week that Los Angeles-based Aviation Career Services has been charged with finding Rodriguez’s replacement. “They’re initiating a coast-to-coast survey job attraction to replace Mr. Rodriguez,” West said. West added that he’d like to have someone hired by November. “We hope someone’s sitting in the chair for the New Year,” West said. Aviation Career Services assists airports and aviation businesses with recruitment, leadership development and career services. ■ authorized the renewal of the contract for three additional one-year periods at the discretion of the city manager. The units are to be used by the city fire department. Park Grant – The council is considering authorizing City Manager Patrick West to accept $553,050 in housing-related parks program grant funds. The money, awarded by the California Department of Housing and Community Development, will be used to replace the playground and provide for the rehabilitation of park amenities at MacArthur Park. Belmont Pool – The council is considering whether or not to approve an amendment to an existing agreement with Psomas Corporation, which is providing inspection and construction management services for the demolition of the Belmont Pool. In early 2013 the pool was deemed unsafe in the event of a moderate earthquake and was closed permanently. In April of this year, the city authorized City Manager

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NEWSWATCH August 19-September 1, 2014

West to proceed with the design and bidding phase for the proposed demolition of the pool. City staff is recommending that Psomas provide management services based on other work they have conducted within the city. Approval of this agenda item by the council will provide an additional $206,400 to the existing contract for a total not to exceed $831,400. The city council also considers another agenda item to amend a contract with Job Order Contracting (JOC) contractor Exbon Development to perform the demolition of the pool. If approved, the amendment increases the contract amount by $2,850,000 to an amount not to exceed $12,850,000. Finally, the city is also considering an amendment to a contract with

Long Beach Business Journal 5

Gordian Group for access to their proprietary software, which is necessary to manage the JOC program. If approved, the contract amount increases by $55,575 for an amount not to exceed $623,075. Police Helicopter Parts – The Long Beach Financial Management Department is recommending the city council award a contract to Rotorcraft Support Inc. of Van Nuys for the purchase of parts and service to maintain two police department helicopters. The amount of the contract is not to exceed $396,270 for a period of two years. If approved, the city manager has the option of renewing the contract for two additional one-year periods. Artesia Boulevard Improvements – An August 15 press release issued by the city

said work is set to begin on street improvements on Artesia Boulevard from Butler Avenue to the city’s western boundary. The project, partly situated within the city of Compton, includes street resurfacing, replacement of damaged driveways, installation of bus pads and traffic striping. “The uptown renaissance continues with this significant project,” said 9th District Councilmember Rex Richardson. “We’ve been doing a great deal of work along Atlantic Avenue and are now turning the corner and making needed improvements along Artesia. Businesses and residents will both benefit from this investment in our infrastructure.” Businesses are to remain open during construction, which is expected to be completed in two months.

Motorists are encouraged to use alternate routes. The project is estimated to cost $1.2 million and was financed with Proposition C funds. The City of Compton will pay a prorated portion of $130,000. Storefront Improvements – At its August 12 meeting, the city council voted 8-0 to adopt a plan to improve 14 commercial storefronts on Long Beach Boulevard at Anaheim Street. The work is slated to be done by Corral Construction and Development of Commerce, California, which was awarded a contract in the amount of $394,400 with a contingency of $59,160, bringing the total amount to $453,560. The city is required by the U.S. Department of Housing and Urban (Please Continue To Page 6)

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NEWSWATCH 6 Long Beach Business Journal

City Hall News In Brief (Continued From Page 5)

Development (HUD) to expend community development block grant funds as part of a five-year consolidated plan. The action plan for FY13-FY14 identified commercial corridor revitalization as a primary focus. The Long Beach Department of Development Services (DDS) identified the southeast corner of Long Beach Boulevard and Anaheim Street as one of the areas that meets program criteria. Four occupied commercial buildings located adjacent to the MTA Blue Line Anaheim Street Station are scheduled to be renovated. Participating property owners have executed owner participation agreements and have provided assurances to the city that they will maintain the improvements. Prior to voting, Councilmember Gonzalez thanked DDS for its work on the project. “This has been a long time coming and it’s going to be a great beautification project for the area,” Gonzalez said. Council member O’Donnell was absent for the vote. Taser Equipment – By a vote of 8-0, the council authorized City Manager West to execute contracts with ProForce Marketing Inc. of Prescott, Arizona, TASER International of Scottsdale, Arizona, and leasing partner Municipal Asset Management of Golden, Colorado, for the purchase of Taser equipment. The amount of the contracts is not to exceed $1,500,000 for a period of five years. The vote also authorized the city manager to enter into a related contract with TASER and its leasing partner for a total amount not to exceed $1,047,721. According to a police memo, the department’s current Taser equipment and accessories were purchased in 2004 and are in need of replacement. After School Program – At its July 5 meeting the council voted 9-0 to authorize the city manager to enter into agreements with the Long Beach Unified School District (LBUSD) for the operation of the After School Education and Safety Program. The program, which takes place at eight of the district’s K-8 schools, provides afterschool literacy, tutoring and artistic activities. LBUSD allocated $1,386,192 in grant funding to the city, which is used to provide staffing, supervision and supplies for the program. The grant agreement requires a 15 percent “inkind” match funding totaling $207,929. A portion of this ($102,902) comes from community development block grant funding; the remainder ($105,027) comes from the department of parks, recreation and marine’s general fund. ■

Civic Center Proposal (Continued From Page 5)

Deputy City Manager Tom Modica said more consideration was required and the report had been postponed. “Both submittals are incredibly complex,” he said at the time. “Staff is reviewing each administrative and financial component in detail.” A seismic study conducted in 2006 concluded that a large earthquake could lead to the collapse of the current 14-story city hall building, which was built in the mid-1970s. In February, then 5th District Councilmember Gerrie Schipske criticized city staff for not issuing a request for qualifi-

August 19-September 1, 2014

Long Beach Budget Discussions Continue ■ By BRANDON FERGUSON Staff Writer As the mid-September deadline to approve the fiscal year 2015 (FY15) budget approaches, the city council continues to hear presentations from various department heads sharing details of next year’s proposed expenditures. Last week, both the city’s police and fire chiefs gave breakdowns of their proposed budgets and discussed officer staffing levels as well as the fire department’s controversial Rapid Medic Deployment (RMD) program. On August 5, the council heard from library services, code enforcement, and the department of parks, recreation and marine. The proposed price tag for next year’s police services is $208,935,992, which includes funding for 806 sworn personnel – three more than the previous year. The budget called for $181,500 for helicopter fuel and vehicle replacement. Funding from Proposition H is expected to increase the number of police academy recruits as well as provide a one-time $400,000 investment to refurbish Schroeder Hall, a former Army reserve base that will serve as the headquarters for the department’s east division. City Manager Pat West also proposed allotting $2.2 million for police overtime and high priority needs. Police Chief Jim McDonnell explained that next year, the department plans to restructure its investigations bureau by transferring juvenile investigators to increase the capabilities of homicide, burglary, computer crime and vice investigations. During the commenting period, Vice Mayor Suja Lowenthal asked West how he arrived at the figure of $2.2 million. “That was more empirical data,” West said. “What has worked in the department over the past few years.” Seventh District Councilmember Roberto Uranga expressed concerns about gang activity in his district and wondered how the department, which is currently staffed with 736 sworn officers (and is expected to lose officers through retirement), will increase its staffing level. “I don’t see you making advancements in personnel to reach that fully funded 806 (Please Continue To Next Page)

cations to see if retrofitting the center would be a viable option. At the time, a staff report said that, even with a retrofit, the building could become uninhabitable in the event of a medium- to large-sized earthquake. On September 23, the two developers are expected to give presentations to the city council on their individual proposals. “They’ll have their models that will be available as well,” West said. Before a final vote on the project, there will also be time for public comment on the matter, West explained. “We want to make sure that when we take this to the council and the community, all our ducks are in a row,” he said. ■

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NEWSWATCH August 19-September 1, 2014 officers unless you hold two academies. What’s the plan?” Uranga asked. While McDonnell responded that the department is moving forward with the selection process for its third academy in three years, he offered an open-ended answer to the councilmember’s question. “Hopefully the city gets healthier economically,” he said, adding that he would like to grow the department. The city’s fire department proposed spending $97,542,076, which would fund 388 sworn positions as well as 27 lifeguards. Seventy percent of the budget would come from the general fund. Calling for an additional nine sworn personnel to operate two new fireboats, expected to be put into service next year, the budget also proposed the transfer of $2.3 million in Ground Emergency Medical Transportation (GEMT) funds to replace four fire engines. An increase in Prop H funding was suggested to cover the $175,000 cost of extending the fire academy by two weeks, as well as $400,000 for one-time equipment replacement. During public comments, several councilmembers asked about the status of the two-year pilot program known as Rapid Medic Deployment, or RMD. Implemented on July 10, the program has reconfigured how paramedic services are delivered in the city (see story on Page 1). Based on early data taken from the department’s dispatch records, Chief Mike DuRee said the program is working well and paramedic response times are down. Eighth District Councilmember Al Austin, a vocal critic of the program, said he was glad to hear the data was positive so far. “I think it’s very risky to experiment with a city this size, but I’m glad to hear from early reports that it’s working out,” Austin said. Third District Councilmember Suzie Price wanted to know whether there is a backup plan if future data shows the program isn’t working well and RMD is abandoned. “We would immediately come back and either revert back to the system we had in place prior and try to realize the financial efficiencies in a different way, or I’m sure we would come up with a number of alternatives so as to restore the level of service that would have potentially been degraded,” DuRee said. A week earlier, the city council had heard presentations from library services, the department of parks, recreation and marine, as well as code enforcement. Together, the proposed budgets added up to $73,289,688: the lion’s share of that amount, $54,122,709, was for parks and recreation. Among the key areas of focus during the evening’s discussion was a $2.1 million investment to complete construction of the long-awaited north library, in addition to $2 million to replace what city officials called an antiquated irrigation system at Heartwell Park. Parks, Recreation and Marine Director George Chapjian explained to the council that the large watering system currently in place requires workers to engage in a daily ritual of installing and removing a sprinkler head and watering the more-than-one-mile-long park one section at a time. The process, Chapjian said, takes a week to complete.

Long Beach Business Journal 7 “This investment will allow us to modernize our infrastructure by moving to an electronically controlled irrigation system, which will allow us to remotely manage the system and will significantly reduce staff time expended,” Chapjian said During the council’s questioning, 4th District Councilmember Patrick O’Donnell told Chapjian that he’d like the parks department to reach out to the Long Beach Water Department to help shoulder some of the costs of installing the new system. “There’s a nexus between the water department and the expenses that would go into this system. I’d think they’d want to participate because this helps them as well. I wouldn’t want this to all fall on the city,” O’Donnell said. Ninth District Councilmember Rex

Richardson asked Chapjian about the future of the Be S.A.F.E. program, which has offered youth programs and extended park hours for the past two summers. According to Chapjian, the funds weren’t available in the structural budget to continue the program. Councilmember Austin, one of the program’s early supporters, said he’d consider finding a way to fund the program before the final budget is approved. “I certainly would entertain more discussion as we move forward with the city budget to carve out money to ensure we can at least continue to do that [program],” Austin said. Vice Mayor Lowenthal mentioned that she and Councilmember Price have received requests from neighborhood lead-

ers to re-establish a citywide park ranger program. She asked City Manager West to examine the potential “loaded costs” of such a program, including recruitment, training, equipment and pension, and report back to the budget oversight committee, which will hold its first meeting August 19. Price also asked Library Services Director Glenda Williams, to some applause from the audience, about the costs associated with opening the city’s libraries on Sundays. Williams said she would look into both the cost of opening the library additional hours as well as shuffling existing hours to accommodate Sunday operation. The council will continue to hold meetings on next year’s budget into September. The new budget year begins October 1. ■

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NEWSWATCH 8 Long Beach Business Journal

BNSF Lawsuit: Carson Is Out, State Attorney General Is In ■ By BRANDON FERGUSON Staff Writer On August 6, a superior court judge ruled that the City of Carson is not eligible to join Long Beach and several other entities that are suing the City of Los Angeles and Burlington Northern Santa Fe Railway Co. (BNSF), over the latter’s proposed Southern California International Gateway (SCIG) rail yard project. The judge found that Carson’s ineligibility resulted from its failure to file its petition to join the suit within the timely statutory period. Last August, the Business Journal reported that Long Beach, as well as Long Beach Unified School District, South Coast Air Quality Management District and the Coalition for a Safe Environment had consolidated individual lawsuits against BNSF over concerns that pollution from the proposed rail yard, to be built in Wilmington near the Terminal Island Freeway and adjacent to West Long Beach schools and neighborhoods. Carson City Manager Nelson

August 19-September 1, 2014 Hernandez told the Business Journal that his city is concerned with the increased traffic, noise and pollution that can stem from the proposed rail yard. He said Carson plans to discuss the issue further with the city’s attorney to decide whether or not to appeal the judge’s decision. “We’re going to talk to our attorney, and we’ll probably go into closed session and talk about that because it’s litigation. Then we’ll review our legal options at that time,” Hernandez said, adding, “Just because the judge ruled as he did doesn’t change our concerns.” As Carson mulls over its next move, the lawsuit’s current participants have agreed to allow the State Attorney General’s (AG) office to join the suit on the side of the petitioners. According to Long Beach Assistant City Attorney Michael Mais, unlike Carson, the AG is allowed to join the suit late because it operates under different procedural rules than other California petitioners. “Under procedural rules of the state, the attorney general has a right to intervene in important environmental issues,” Mais said. “The City of LA and BNSF railroad as well as all the other petitioners saw the writing on the wall that the AG was going to be able to come into the case. It would have been very unusual legally and procedurally to keep the AG out, so the parties, all of them, stipulated to allow the AG to come into the case.” A case management conference is scheduled for September 17. Mais said he expects a trial date to be set for next spring. ■

Job Killer Bills Advance (Continued From Page 1)

hours worked” to all employees who work more than 30 days per year, according to the legislation. Employers would be able to limit paid sick days to three per year. Unused sick days would be carried over to the next year, which CalChamber called a “significant change in existing law.” The bill also would allow sick days to be used to care for family members. In a statement released after the Assembly Committee on Labor and Employment approved AB 1522 in March, Gonzalez indicated the bill was intended to take into account the needs of working families. “Our economy has moved to a place where families cannot rely on a stay-at-home parent in times of illness. As a state, California must adapt to the reality facing today’s working families,” she stated. She also argued passing AB 1522 would be beneficial for employers in that their employees would not attempt to work while ill. A letter of opposition from CalChamber, cosigned by many other business organizations, stated not only would the bill increase costs for employers but it would also cause the state to incur costs by requiring the California Department of Labor Standards Enforcement to “enforce and investigate complaints associated with paid sick leave.” In its letter, CalChamber argued, “Given the cumulative costs and existing

protected leaves of absences California employers are already struggling with, California should refrain from implementing new mandates such as AB 1522. Rather, California should incentivize employers to offer these additional benefits by reducing costs in other areas.”

Liens Against Employer’s Property Another CalChamber-labeled job killer bill on the Senate’s agenda on August 18 was Assembly Bill 2416, which would enable an employee or any entity “authorized by the employee to act on the employee’s behalf ” to file liens against an employer’s property, or any property where the employee performed work, for alleged wage violations. Under AB 2416, a judge or labor commissioner’s ruling determining that the employer has violated wage laws would be unnecessary for the employee to file a lien, which is one of CalChamber’s points of contention with the bill. “Employees should not be allowed to interfere with an employer’s business or property, or someone else’s real property where work was performed . . . without first proving the merit of their allegations,” argued a letter of opposition by CalChamber, cosigned by entities such as the National Federation of Independent Businesses. The letter also stated the bill holds “an innocent third party liable for the alleged, unproven acts of another” by allowing employees to file liens on third party properties where they performed work. (Please Continue To Next Page)

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NEWSWATCH August 19-September 1, 2014 According to a statement on author Assemblymember Mark Stoneâ&#x20AC;&#x2122;s website, AB 2416 aims to â&#x20AC;&#x153;provide workers who are victims of wage theft with an opportunity to receive the wages they are owed . . . prior to a business closing.â&#x20AC;? Long Beach Assemblymember Bonnie Lowenthal coauthored the bill. Also scheduled for a vote on August 18 was AB 52, which would expand the California Environmental Quality Act (CEQA), which is legislation requiring agencies seeking approval of development projects to complete environmental impact reports to determine how their projects would affect the surrounding environment. AB 52 would require these agencies to consult with Native American tribes in their developmentâ&#x20AC;&#x2122;s region to determine if their project would impact any tribal cultural resources. The legislation states that any project causing â&#x20AC;&#x153;a substantial adverse changeâ&#x20AC;? to such a resource would be considered to have a â&#x20AC;&#x153;significant effect on the environmentâ&#x20AC;? under CEQA. After the bill passed the state Assembly in July 2013 with a 56-0 vote, author Assemblymember Mike Gatto released a statement explaining that the bill would increase protections for sacred Native American sites. â&#x20AC;&#x153;By including tribes in the decision-making process, we will build better relations between cultures and can protect and preserve Californiaâ&#x20AC;&#x2122;s unique cultural heritage,â&#x20AC;? he stated. In a letter of opposition cosigned by entities such as the California Business Roundtable and California Retailers Association, CalChamber stated it was not against protecting sacred tribal places but took issue with the bill because it includes â&#x20AC;&#x153;no definition of what constitutes a tribal resource.â&#x20AC;? In CalChamberâ&#x20AC;&#x2122;s view, AB 52 would grant tribes â&#x20AC;&#x153;broad, irrefutable authority to determine anything is a tribal cultural resource entitled to CEQA protection.â&#x20AC;? Assembly Bill 2617, another bill opposed by CalChamber, would prohibit anyone from requiring someone, as a provision of obtaining goods or services, to sign a contract waiving the right to pursue litigation based upon civil rights violations. Such a contract is typically referred to as an arbitration agreement, meant to prevent employers from being sued. AB 2617 would allow such contracts only if they were signed voluntarily and in writing, and not as a requirement of entering into a contract. â&#x20AC;&#x153;Nobody should be allowed to force their workers to sign away their legal rights as a condition of employment,â&#x20AC;? the billâ&#x20AC;&#x2122;s author, Assemblymember Shirley Weber, said in a statement in early August. The bill had the support of the National Association for the Advancement of Colored People, the American Civil Liberties Union and Equality California. CalChamber argued the bill would interfere with existing legislation including the Federal Arbitration and California Arbitration Act, which allow for arbitration agreements and restrict their enforcement. â&#x20AC;&#x153;Despite consistent authority from both the United States Supreme Court and California Supreme Court regarding

$ZDUGV Ä&#x2020; 5DIIOHV Ä&#x2020; )RRG Ä&#x2020; 0XVLF Ä&#x2020; 9HQGRUV Ä&#x2020; )XQ $ ZDUGV Ä&#x2020; 5DIIOHV Ä&#x2020; )RRG Ä&#x2020; 0XVLF Ä&#x2020; 9HQGRUV Ä&#x2020; )XQ Long Beach Business Journal 9 the inclination to promote arbitration and limit any statues or common law that interfere with arbitration, AB 2617 seeks to do just that,â&#x20AC;? a CalChamber letter stated. AB 2617 was also scheduled for an August 18 state Senate vote. Also approved by the Senate Appropriations Committee on August 14 but not included on the Senate floor session agenda for August 18 was AB 1897, which would require businesses â&#x20AC;&#x153;to share with a labor contractor all civil legal responsibility and civil liability for the payment of wages, the obligation to provide a safe work environment, as specified, and the failure to obtain valid workersâ&#x20AC;&#x2122; compensation coverage,â&#x20AC;? according to the legislation. Authored by Assemblymember Roger Hernandez, the bill would make businesses liable for wage and hour violations caused by contractors under their employ. Not impacted by the bill are motion picture payroll services, hiring halls, nonprofit community organizations and small businesses with fewer than 25 employees, including contracted employees. In June, Hernandez stated that businesses and contractors are often able to avoid responsibility for labor violations for contracted employees, and that the bill would help hold those entities accountable to the affected worker. In a recent letter, CalChamber argued AB 1897 would discourage businesses from hiring contractors and their employees. The organization also opposed the bill because it would hold businesses accountable â&#x20AC;&#x153;for the employment obligations of another employer.â&#x20AC;? Audio of California State Senate sessions is available online at www.senate.ca.gov/listentorooms. Information about actions on legislation is available at www.leginfo.legislature.ca.gov. â&#x2013;

Extension Of Pre-Affordable Care Act Coverage For Small Businesses California Senate Bill (SB) 1446, legislation allowing small businesses to keep their pre-Affordable Care Act (ACA) health care coverage through December 31, 2015, was signed by Gov. Jerry Brown in July. Only small businesses that renewed their plans in 2013 are eligible for the extension. According to the California Chamber of Commerce (CalChamber), the bill allows these businesses to take advantage of the first year of a federal extension of preACA health care coverage for small businesses, which runs through the fall of 2017. President Barack Obama announced the federal policy in March. â&#x20AC;&#x153;The extended transitional period will give small employers more time to prepare to bear the costs associated with plans that fully comply with the ACA, minimizing potentially negative impacts this new burden could have on continuing economy recovery,â&#x20AC;? according to a statement from CalChamber. â&#x2013; â&#x20AC;&#x201C; Senior Writer Samantha Mehlinger

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NEWSWATCH 10 Long Beach Business Journal

August 19-September 1, 2014

Sean Warner, placemaking manager with the Downtown Long Beach Associates (DLBA), stands near an under-utilized space at the intersection of Ocean Boulevard and Pine Avenue. A recent study conducted by the Urban Land Institute (ULI) at the request of the DLBA recommended extending the downtown business corridors to the waterfront to increase pedestrian access to the area. Among the ULI’s suggestions, which included putting a trolley on Pine, was that the lot shown in the photograph be turned into a public gathering area in the hope that it would increase foot traffic between north and south Pine Avenue. An artist’s rendering at left of the area shows the construction wall at the north (Ocean Boulevard) end of the lot removed and retail kiosks in place. The ULI interviewed several area businesses and residents seeking input on how to proceed with a revitalization of the area. An in-depth report on the ULI’s findings is expected to be released in several weeks. (Photograph by the Business Journal’s Thomas McConville and image courtesy of the Urban Land Institute)

Urban Land Institute Recommendations For The Waterfront (Continued From Page 1)

kind of stay in that area, or they’ll come to the downtown core and go to the promenade and Pine Avenue restaurants but don’t venture down to the water,” he said. According to Warner, a large city like Long Beach should increase its oceanfront connectivity. “That lack of connection, that’s a big opportunity that we’re missing out on,” he said. “The reason we brought ULI in is [the waterfront] is an important area, and it’s a complicated area. But we really wanted some outside experts to come in and give us that advice,” he explained. Los Angeles County Director of Regional Planning Richard Bruckner, who chaired the TAP panel, explained to the Business Journal that after several weeks of discussion between ULI and the DLBA, the TAP team gathered in Long Beach on July 31. The group broke into smaller teams to interview local business owners and residents as well as members of the convention and visitors bureau (CVB). Panelists also spoke with

Councilmember Lena Gonzalez, Vice Mayor Suja Lowenthal and Mayor Robert Garcia. Afterward, the group reconvened to discuss its findings. “We sort of came back together and began brainstorming and sorting out all the comments we got,” Bruckner said. The following evening, the TAP team presented preliminary recommendations that focused largely on extending existing business corridors south of Ocean Boulevard. “So the east side arts district, bring it all the way down and bring some vibrancy and connectivity for folks who live in that east portion and provide some open space and park areas for them,” Bruckner said. Suggestions for Pine Avenue included examining the retail potential of the convention center parking structure, which faces Pine near the intersection of Ocean. “There may be an opportunity to introduce retail at that frontage along Pine,” Bruckner said, with Warner adding, “Extending the street character of Pine Avenue south to Shoreline Drive could enhance the pedestrian experience and promote connections between upper and lower Pine Avenue.” Specific actions the panel suggested could happen soon along Pine included

removing the construction wall at the southeast corner of Pine and Ocean, as well as turning the adjacent parking lot into a public gathering area. While the presentation said extending the business corridors could be worked on in the near term, other suggestions, such as introducing a trolley along Pine Avenue would take longer to implement. “The idea of a trolley on Pine is something that takes a fair amount of capital and a long term look I think,” Bruckner said. First District Councilmember Gonzales told the Business Journal that during her conversation with ULI panelists, she discussed some of her constituents’ ideas, such as better ways to attract business to the area, as well as better signage and recreational opportunities along the waterfront. “I’m just really excited that we’re going to be talking about this,” Gonzalez said. “I think the time is now to start discussing our waterfront and how things are developing there and what the potential is.” The ULI team is expected to release an in-depth report of its findings to the DLBA. According to Bruckner, the report should take about eight weeks to complete. For more information on the TAP study, visit downtownlongbeach.org/downtownwaterfront-study. ■

Federal Reserve Survey Finds Many Americans Continue To Struggle ■ By BRANDON FERGUSON Staff Writer A recent report by the Federal Reserve suggests that many Americans aren’t feeling a pleasant afterglow in the post-recession recovery. In fact, 34 percent say they are doing worse, or even much worse, than they were before the recession. Issued in July, the Report on the Economic Well-Being of U.S. Households in 2013 sought to capture a “snapshot of the financial and economic well-being of U.S. households and the issues they face, as well as to monitor their recovery from the Great Recession.” The report’s findings came from a survey conducted on behalf of the Fed’s Division of Consumer and Community Affairs by online research firm GfK. The survey was given to 6,912 people over the age of 18 and yielded 4,134 complete responses. Data was collected between September 17, 2013, and October 4, 2013. Among the (Please Continue To Next Page)

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NEWSWATCH August 19-September 1, 2014 questions asked in the survey was how respondents’ incomes compared to 2008, the height of the economic crisis. The fact that so many respondents continue to struggle, noted the report’s summary, “highlights the uneven nature of the recovery.” While the report concluded that the majority of the population is making progress as the economy recovers, it added that challenges remain. Nearly half the respondents said they had given little to no thought to retirement savings and many said they plan to continue working into retirement to cover expenses. Many reported they had no retirement savings at all. “These challenges were exacerbated by the recession, which resulted in many respondents delaying their planned retirement,” the report stated. Further complicating matters, as well as making more vulnerable “a sizeable fraction of respondents,” were concerns over the ever-increasing costs of health care. One-third of the survey’s respondents said they had skipped some form of medical treatment over concerns of the costs of the recommended procedure. “Not surprisingly,” the summary stated, “the decision not to seek treatment was more common for those without savings, those indicating they were struggling with their finances, or those without insurance.” While the report’s findings weren’t all doom and gloom – more than 60 percent of those surveyed said they were “doing okay” or “living comfortably” – 25 percent said they were “just getting by” and 13 per-

Long Beach Business Journal 11 cent said they were struggling to get by. On the issue of home ownership, the summary reflected a more positive outlook – nearly 60 percent of those surveyed reported owning a home, and most expected the value of the homes in their neighborhood to increase in the next 12 months. Kimberly Ritter, an economist with the Los Angeles Economic Development Corporation, said there weren’t any big surprises in the Fed’s report. “It pretty much corresponds with what we’ve seen going on in the economy for quite some time now,” Ritter said. “Overall, households appear to be doing better, but there are some currents running beneath the surface that are leaving some people feeling uneasy, even if they’re doing okay.” Ritter said that she was particularly interested in the numbers accounting for low savings cushions and a lack of retirement funds, as well as low-income growth. She also pointed to the report’s findings on student loan debt, which pegged the percent of respondents claiming to have debt obligations either for themselves, someone else, or both, at 24 percent. “The fact that there was a fairly significant number [of people] who are having to curtail their spending in other areas in order to service their student loan debt, that’s something we’ve been tracking,” Ritter said. The report concluded that U.S. households for the most part appear to be stable but added that there was variation among respondents “along many indicators of economic well-being.” “Five years after the start of the Great

Recession,” the report stated, “A small but significant, core of respondents continue to experience economic hardship on multiple dimensions.” ■

New Study: Engineering Firms Bullish On Economy The American Council of Engineering Companies based in Washington, D.C., reports that 68 percent of engineering company leaders say the current business climate is better than last year at this time, and 60.5 percent say their backlogs are larger now compared to last year. The results are part of the council’s quarterly Engineering Business Index (EBI) released August 13.

According to the council, the EBI results represent responses from 340 engineering firm chairmen, CEOs and presidents. The results also show, “that engineering firm leaders are more optimistic about prospects in private sector markets than those in the public sector. At least half believe that opportunities in buildings/commercial (53.3 percent), land development/surveying (54 percent), and industrial/manufacturing (50 percent) will improve over the next 12 months. Expectations for major public sector markets were markedly lower. Only 41.5 percent of respondents anticipate improvement in the transportation sector, and only 40.9 percent for the water/wastewater sector.” ■

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NEWSWATCH 12 Long Beach Business Journal

August 19-September 1, 2014

Members of the Long Beach Fire Department command staff are pictured outside department headquarters on the Long Beach Airport. On July 10, the department implemented a two-year pilot study known as Rapid Medic Deployment (RMD). Expected to reduce department costs, the program staffs all 17 of the city’s engines with a paramedic-firefighter. Ambulances meanwhile are staffed with one paramedic fire fighter and one less expensive emergency medical technician (EMT). Fire Chief Michael DuRee says the program has increased response times for paramedics. Pictured from left are: Marine Safety Chief Randy Foster; Deputy Chief Mike Sarjeant; Chief DuRee; Deputy Chief David Segura; Assistant Chief David Kean; EMS Coordinator Capt. Dwayne Preston; and Assistant Chief Chris Rowe (Photograph by the Business Journal’s Thomas McConville)

Rapid Medic Deployment Program (Continued From Page 1)

all 17. The vacant paramedic positions on ambulances have been filled by less expensive emergency medical technicians (EMTs). DuRee said in addition to potentially saving a projected $1.4 million annually, the program increases paramedic response times because engines typically arrive on scene first. But Rex Pritchard, president of Local 372, said the program is inefficient. “The chief puts medics on every apparatus, so yes, you’re getting more paramedics on

scene quicker, but you don’t always need a paramedic,” Prichard said. “Our issue with this program is that it’s just not an efficient use of taxpayer dollars and resources.” Pritchard also noted that due to high call volumes, the department recently put two additional basic life support (BLS) ambulances into service, cutting into the department’s projected savings. “This whole thing came forward to save $1.4 million, and that’s no longer happening,” Pritchard said. In response, DuRee explained that the decision to deploy two more BLS ambulances around the downtown area was based on high call volumes from people with non-life threatening issues. While he admitted that the additional units would cut

into the program’s projected savings, they’re still less expensive than advanced life support (ALS) paramedic rescue ambulances. “The reality is basic life support ambulances cost me $45,000 a year versus a paramedic rescue ambulance with two firefighter paramedics on it [which] is $1.1 million a year. While yes that $45,000 is coming out of the savings, it’s still a very effective way to manage the non-emergent patients,” DuRee said. While he acknowledged that data fluctuations may still occur in the next two years of the pilot program, DuRee noted that no major anomalies have occurred yet. This is significant he said, because right now is one of the busiest times of the year for the department. At the moment, he’s happy with the results. “It’s good that we’re getting there fast, and we’ve been getting there fast for a long time. But now we’re getting there fast with the person who can actually make a difference,” he said. ■

International Trade News In Brief ■ By SAMANTHA MEHLINGER Senior Writer

American Gold Star Mothers The American Gold Star Manor located in West Long Beach welcomed National President Jennifer Jackman and First Vice President Cindy Krueger to the facilities on August 14. Situated on a 23-acre site near Spring Street and Santa Fe Avenue, American Gold Star Manor includes nine three-story buildings and one two-story building providing 348 apartments, and house women whose son or daughter made the ultimate sacrifice during service to the United States. Pictured from left ared Terry Geiling, president/CEO, American Gold Star Manor Long Beach; Kruger; Jackman; and Gail Schwander, board chair, Gold Star Manor Long Beach. (Photograph by the Business Journal’s Thomas McConville)

Port Of Long Beach Cargo Traffic Increases Mostly Due To Empty Container Shipments – While total cargo container traffic through the Port of Long Beach increased by 3.7 percent in July, imports remained relatively flat, increasing by just 0.9 percent from the same month last year. Total imported twenty-foot equivalent units (TEUs), the unit of measurement of shipping containers, were 583,060 in July. Exported container traffic decreased by 6.2 percent to 124,126 TEUs from July of 2013 to the same month this year. Shipment of empty containers, sent back overseas for reuse, increased by 19.5

percent to 161,319 TEUs. The port attributed flat import growth to “a surge” of container traffic in June “when retailers were stocking up for back-to-school shopping.” Overall, cargo traffic increased 2.7 percent in the first seven months of this year compared with the same period in 2013. Port Of Los Angeles Cargo Traffic Remains Flat Year Over Year – Compared with July of 2013, last month container traffic through the Port of Los Angeles increased by just 0.25 percent. Imported container traffic decreased by 1.98 percent from July 2013 to the same month this year, totaling 363,393.50 TEUs. Exported traffic increased by 3.62 percent to 163,294.50 TEUs from last July to the same month this year. Empty container volumes increased 1.82 percent in July from the same month in 2013. Total container traffic through the POLA increased 7.75 percent in the first seven months of the year compared to the same time period last year, according to the port. Retail And Trade Experts Expect Record Increase In Imports – Despite flat import growth at the POLB and declining imported traffic at the POLA in July, a report issued on August 11 by the National Retail Federation (NRF) and international trade consultant group Hackett Associates indicated imported cargo traffic at major U.S. ports would “hit an all-time high record in August.” The report suggested that lengthy contract negotiations for West Coast port longshoreman workers between the International Longshore and Warehouse Union (ILWU), which represents the longshoreman, and the Pacific Maritime Association, the negotiating party for businesses employing ILWU workers, might be the cause of a projected increase in imports. The previous labor contract for those workers expired July 1. The joint NRF and Hackett Associates report predicted retailers would “rush to bring holiday season merchandise” to the (Please Continue To Next Page)

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NEWSWATCH August 19-September 1, 2014 U.S. ahead of time due to concerns about the contract negotiations. About 1.54 million imported containers should arrive at major U.S. ports in August, the report stated. This would be the highest imported container traffic to the U.S. ever, topping the previous record of 1.53 million. Former Port Of Long Beach Acting Executive Director And Chief Harbor Engineer To Retire â&#x20AC;&#x201C; Al Moro, who recently served as acting executive director of the Port of Long Beach, is overseeing the portâ&#x20AC;&#x2122;s $4 billion capital improvement project until the end of the year, at which time he plans to retire from the port, according to a POLB spokesperson. Moro took on the role of acting executive director in June of 2013 after then Executive Director Chris Lytle left the port for a similar position at the Port of Oakland. Moro stepped down from the interim position after the Long Beach Board of Harbor Commissioners found a permanent replacement for Lytle in June, naming Jon Slangerup, a former FedEx executive, as chief executive of the port. Prior to his role as acting executive director, Moro had served as the portâ&#x20AC;&#x2122;s chief harbor engineer since 2007, a role in which he oversaw the engineering department. He first joined the port in 1997 as a senior civil engineer, and his engineering career spans 25 years. He holds a bachelorâ&#x20AC;&#x2122;s degree in engineering from UCLA, and an MBA from California State University, Los Angeles. Harbor Commission Honors Contractors For Employing Long Beach Residents â&#x20AC;&#x201C; On August 11, the Long Beach Board of Harbor Commissioners honored 10 construction contractors with Community Partner Awards for hiring the most Long Beach residents to work on the portâ&#x20AC;&#x2122;s $1.3 billion Middle Harbor Redevelopment Project. POLB Chief Executive Slangerup and 1st District Councilmember Lena Gonzalez were also present to honor the employers. According to the Port of Long Beach, more than 300 Long Beach residents worked on projects within Middle Harbor since construction began in April 2011. Those construction workers have worked more than 130,000 hours. â&#x20AC;&#x153;Iâ&#x20AC;&#x2122;d like to thank our contractors for making the decision to give back to the community by hiring from the Long Beach community,â&#x20AC;? Harbor Commission President Doug Drummond said in a statement. The recipients of the Community

Long Beach Business Journal 13 Partner Awards were American Plumbers, B&I Equipment Rentals, Cal Steel, Connolly Pacific, Dynalectric, Herzog Reyes Joint Venture Company, Manson Construction, Manson/Connolly Pacific Joint Venture, Neubauer Electric and Parker Diving. â&#x2013;

People In The News Schipske To Seek Water Board Seat â&#x20AC;&#x201C; Former Long Beach City Councilwoman Gerrie Schipske announced her candidacy for the Water Replenishment District (WRD) of Southern California â&#x20AC;&#x201C; Division #3. The election is November 4. The WRD consists of five divisions representing 43 Southern California cities, with Division #3 encompassing seven cities. â&#x20AC;&#x153;The critical issues surrounding our ongoing water crisis demand elected officials who are ethical, open and transparent,â&#x20AC;? Schipske said in a statement. Schipske was termed out as councilmember after serving eight years representing Northeast Long Beach. She also served a four-year term on the Long Beach Community College Board of Trustees. Schipske, who is known for urging more transparency in government, is calling for the Water Replenishment District to enact the following reforms: â&#x20AC;˘ Limit the dollar amount of political contributions candidates for WRD can receive during a campaign. Currently, there are no limits. â&#x20AC;˘ Place campaign reports online so that the public can see who gave what to whom. Currently, the reports are not available. â&#x20AC;˘ Prohibit the receipt of campaign contributions from contractors and those seeking to do business with WRD. Stop the â&#x20AC;&#x153;pay to playâ&#x20AC;? that is rampant. â&#x20AC;˘ Require that all contracts valued at more than $25,000 be posted on the WRDâ&#x20AC;&#x2122;s website in a searchable format. For each contract, the number of bidders shall be shown and for any sole source contract, written justification shall be posted as to why it is a sole source contract. Additionally, require all contracts for consultants, goods and services and all vendors of goods or services exceeding $25,000 be posted.

â&#x20AC;˘ Post all Statements of Economic Interest Form 700s on WRDâ&#x20AC;&#x2122;s website to fully disclose where candidates and elected members receive their income. â&#x20AC;˘ Require the general manager and the boardmembers to post on the WRDâ&#x20AC;&#x2122;s website their monthly calendars. â&#x20AC;˘ Require the boardmembers to post monthly on the WRDâ&#x20AC;&#x2122;s website their claims for per diem and reimbursement amounts. Terri Long Named VP At LBCC â&#x20AC;&#x201C; Terri Long is the new vice president of academic affairs for Long Beach City College. For the past 25 years, Long has worked at Mt. San Antonio College in Walnut, California, most recently serving as the dean of instructional services. Long was also a professor, teaching in the earth science, photographics and astronomy department at Mt. SAC. She began work at LBCC on August 5.

New Director Of Development At Long Beach Opera â&#x20AC;&#x201C; Following a national search, Elizabeth Kurila has been named the new director of development for the Long Beach Opera. She previously served as the director of development for both the Nine Network of Public Media and the University of Missouri-St. Louis College of Fine Arts and Communications. She also served as chief operating officer for Suttle Mindlin, an international architectural design studio specializing in urban planning and development projects. New Exec Director For Seafarers Center â&#x20AC;&#x201C; Capt. Dick McKenna has been named executive director of the International Seafarers Center â&#x20AC;&#x201C; Long Beach and Los Angeles. He is former chief of staff for U.S. Navy operations in Southern California and former executive director of the Marine Exchange of So. California. â&#x2013;

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WOMEN IN BUSINESS 14 Long Beach Business Journal

U.S. Chamber Of Commerce Study: Female Entrepreneurs Optimistic About The Future ■ By BRANDON FERGUSON Staff Writer For decades female entrepreneurs have cut out a significant slice of the business market pie. As the economy improves, studies indicate that the slice is set to widen. According to a March report by the U.S. Chamber of Commerce Foundation, in the last 15 years small, women-owned businesses have grown one-and-a-half times faster than other small businesses and now account for 30 percent of all new businesses nationwide. Citing numbers released by the Small Business Administration, the Chamber report stated that women’s ownership of business remained “sizeable and stable” between 2007 and 2012, adding that growth is expected. A recent study conducted by the Guardian Life Small Business Research Institute projected that women-owned companies could create as many as 5.5 million new jobs for the nation by 2018. Reflecting these studies’ positive numbers, women entrepreneurs are increasingly optimistic about the future. The National Association of Women Business Owners (NAWBO) surveyed more than 600 women business owners across the country and found that 87 percent are confident about their businesses’ outlooks for 2014, a 12 percent increase from the previous year. Mina Trujillo, executive director of the Los Angeles chapter of NAWBO, said that based on discussions with her chapter’s members, she believes Los Angeles-area womenowned businesses are growing. “[Women] are leaving corporate America to start their own businesses. We’ve had tremendous influx of women joining NAWBO just because of the support system. Obviously when you start your own business you always look for a network,” Trujillo told the Business Journal. Trujillo explained that as the economy improves, women are willing to take on more risk, and this is what she thinks is driving women to the entrepreneurial side of the labor market “I think that as the signs started to get better, the employment numbers got better, manufacturing started to get better . . . I think women started to kind of take that leap into entrepreneurship,” Trujillo said. ■

Women Continue To Attract The Attention Of Financial Institutions ■ By BRANDON FERGUSON Staff Writer As the number of women-owned businesses continues to grow, banks are increasingly mindful of the opportunities this growth represents. Wells Fargo began courting female entrepreneurs in 1995 when it pledged $1 billion over a three-year period to women business owners. Last year, Wells Fargo updated this goal and aimed to lend $55 billion to women by 2020. According to Ben Alvarado, regional president Wells Fargo Orange County and Long Beach, the bank has lent $44 billion to women entrepreneurs since 1995. “Wells Fargo is very aware of the growth in female-owned businesses and the needs of those businesses,” Alvarado said. He explained that although as many as 68 percent of female-owned businesses generate less than $25,000 worth of revenue, the opportunities are great. According to Alvarado, these lower numbers provide “an opportunity to do financial planning with those businesses – provide a lot of outreach and services to ensure we’ve got the right bankers in front of our small business owners to help them with their business plans and make sure we provide them with strong financial advice.” Citing the example of Zoey Van Jones, owner of Brow Studio in the City of Pasadena, Alvarado explained Van Jones used the Wells Fargo Works Program, an online resource offering financial guidance to help small business owners with issues such as building credit and sustaining growth. The bank provided Van Jones with a Small Business Administration express loan, allowing her to expand her operation and sell her products nationally. “[She’s] a great example of some of the work we’re doing,” Alvarado said. “Wells Fargo got in, provided some financial services, some lending, and really just helped her get established.” In an e-mail to the Business Journal, JP Morgan Chase spokesperson Suzanne Ryan said her bank is currently conducting a national series of women’s business symposia. In April, entrepreneur Lori Greiner hosted one Chase event in Universal City, which featured a group of female business leaders who discussed subjects ranging from the evolving workplace to work-life balance. According to Ryan, more than 500 women from the greater Los Angeles area attended. “The idea is to engage local female entrepreneurs at a networking event where ideas can be exchanged, and hopefully guests can leave inspired,” Ryan’s said. According to Gwen Miller, City National Bank executive vice president of private client services in Los Angeles, her company’s recent efforts to provide financial advice to women, including women entrepreneurs, is shaped in large part by a study the bank conducted with UCLA in 2012 – a study geared toward understanding women in the emerging and high-net worth categories.

August 19-September 1, 2014 “[The study] was to inform us how we want to work with women as clients or women across various partners in the business world,” Miller said. She explained that one of the study’s key findings was that 95 percent of women are the primary financial decision makers. “What that told us was we had a whole bulk of clients, prospects and other business partners that needed to be educated. Ninety-five percent of them were going to have to make the decisions eventually,” Miller said. But more than just controlling finances, Miller said women are extremely active in the business world. “Clearly, women control a ton of small businesses as well. It’s increasing. It’s a super important market,” Miller said. One of the ways City National keeps up with women’s financial needs is through networking events. “We focus a lot more on women’s events. Not always big events – they tend to be small business events. Women love to meet other women in the business,” Miller said. She added, “We do special breakfasts [where we] talk about very specific topics [women] should be caring about,” such as the technicalities of hiring children to work at a family-run business. Through its research, Miller said, City National has learned that women have different approaches to finances than men, specifically on the issue of value. “Women care about price,” Miller said. “They’re less worried about the dollar sign of that price, than the value they’re going to get for that price.” And when it comes to the things women increasingly value, statistics show that higher education tops the list. According to a Pew Research Center survey, women outpace men in college enrollment by 10 percent – perhaps one underlying reason for the growth in womenowned businesses. It’s one of the reasons, Miller said, that outreach to women is so important. “If you’re not connecting with [women] and you’re not doing business in a manner that is going to keep them around, you’re going to have a high amount of loss of business,” Miller said. ■

Women In Business Profiles ■ By DIANA BOSETTI, Contributing Writer

Denise M. Kuper Law Offices Of Kuper & Wilson, A Professional Law Corporation 4344 Atlantic Ave., Long Beach 562/595-5600 www.KuperWilson.com

fter working in hotel management and witnessing the problems hotel workers faced, Denise Kuper decided to enter the field of law and open her own practice to advocate for struggling workers. She was especially concerned about the impacts of job-related injuries on hotel workers and their families, especially those who took home little pay for difficult work. As she recalled on her website, “An on-the-job injury devastates the lives of not just the injured worker, but her whole family. This experience motivated me to become an advocate for their cause.” Kuper passed the California State bar exam in 1994 and opened her Long Beach-based law firm, the Law Offices of Denise M. Kuper, in 1995 and slowly built a client base. In 2013, she and her law partner and partner in life, Paula Wilson (who passed the bar in 2010), purchased a 4,000-square-foot office building in Bixby Knolls to house Kuper & Wilson. This new firm focuses on workers’ compensation, personal injury, estate planning, general business and personal litigation. Kuper said the firm has expanded its reach to represent employees of the Long Beach Unified School District and Disneyland (where she briefly worked in hotel management), among others. Still, one of Kuper’s greatest challenges is reinforcing the legitimacy of work-related injuries. “Fraud?” Kuper asked rhetorically. “I’ve seen it maybe twice in the last 20 years, and when I do I show [those clients] the door.” Kuper has volunteered for several years as a judge pro tem on the Long Beach Worker’s Compensation Appeals Board – a position she said has taught her to better understand all sides of an issue. “It has made me a better attorney when it comes to evaluating my own cases,” she said. In addition to her law practice and office renovations, she and Wilson are raising their eight-year-old daughter, Roxy. Kuper also volunteers at Roxy’s elementary school and is a founding member of the Long Beach Alive Foundation, a non-profit corporation which focuses on HIV/AIDS health and housing issues. Kuper earned a bachelor’s degree in journalism from the University of Georgia in 1988 and received her law degree from Western State University College of Law. ■ (Please Continue To Page 16)

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WOMEN IN BUSINESS 16 Long Beach Business Journal

August 19-September 1, 2014

Christina Lincicum Kidz Head 2 Toe 5467 E. Carson St., Long Beach 562/627-5438 • www.kidzhead2toe.com

Alisa Moffett

oon after her second child was born, Christina Lincicum decided to open a children’s clothing and accessories store in Long Beach because she had trouble finding a second-hand store for kids that didn’t feel like, well, a second-hand store. “I became disappointed by what was out there,” she explained. What started out as disappointment, however, quickly turned to inspiration. In March 2011, Lincicum opened Kidz Head 2 Toe at 5467 E. Carson St. in the Parkview Village shopping center. “We are not a thrift store; we are a boutique experience,” she said. Kidz Head 2 Toe aims to create an atmosphere where shoppers find it hard to imagine the items are previously owned. The store features hardwood floors, chandeliers, handpainted walls, steam-cleaned clothing, toys and gadgets crosschecked for recalls, as well as handmade costumes, tutus, bibs and aprons. Business increased by 50 percent after the first year and has grown steadily since. “Our transaction numbers are also up,” Lincicum said. “In our first year we had about 10 to 15 [transactions] a day. Now we have about 30.” That’s good news for the Lincicum family. Christina first had to convince her husband, Ken, that she should leave her finance job of 13 years at Northrop Grumman to build a retail business. Once he was on board, it truly became a family venture as Ken, an electrician, made all the necessary upgrades to the 1,800-square-foot space. Lincicum’s mother, a retired elementary school librarian with 10 years of children’s retail experience, helped with the shop design and business plan. Ariel Portillo, Lincicum’s sister, oversees the dayto-day operations at Kidz Head 2 Toe and updates the store’s social networking sites. Kidz Head 2 Toe recently reached 2,000 “likes” on its Facebook page – which connects users to the latest products and sales, their personalized “wish lists” and incoming merchandise. As for the future, Lincicum said, “I’ve considered opening a second location, and people have offered to buy the business or have asked for a license. Those are all things I would consider, but at the end of the day I just want to be sure that they wouldn’t want to change the business plan.” ■

5500 E. 2nd St., Suite 1A, Long Beach 562/438-1828 • www.domanidesigns.com

Domani Designs

t’s no surprise that designers’ decorating skills are based on instinct and experience, but it’s rare that such proficiencies manifest at the age of 15. But they did for Alisa Moffett when she was just a Bakersfield teen. The city was in the midst of a cookie-cutter homebuilding frenzy when Moffett saw an opportunity to express her creativity beyond moving around the furniture in her custombuilt childhood home. The teen marched across the street, talked with a homebuilder, and convinced him to allow her to stage his model homes. An interior designer was born. Today Moffett owns Domani Designs, a high-end residential and commercial design company she opened in 2008. Moffett trained at the Interior Design Institute in Newport Beach and traveled extensively throughout Europe and Asia. The ornate designs and wood designs of those continents inspired her future work. Moffett returned to California when she was 21 and took a job in Costa Mesa with Fort Worth-based homebuilders D.R. Horton, Inc. She worked for other large firms as well, but said she always felt stymied. “It can be challenging working among seasoned designers who are less flexible when it comes to taking risks and thinking outside the box,” Moffett said. “I’ve always been an entrepreneur, and starting my own company has allowed me to bring an unexpected level of service to my clients, creating spaces and designs that are timeless, fresh and current.” Designing a room involves balancing possibilities with reality and dreams with budgets, a concept recently learned by one of her clients, Dr. Helen Tang, whose 16,000-square-foot occupational medical practice is entering its third year and next phase of renovation. “What I found helpful in working with Alisa was that we originally had grand plans,” Tang said. “She helped us realize that we needed to cut down on our budget by doing the work in phases.” Moffett said she has had many wonderful clients who are constantly referring new business to her. Though hiring an interior designer is a luxury for some, Moffett said she is

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WOMEN IN BUSINESS August 19-September 1, 2014 encouraged by a steady growth of clients and believed that through continued relationship building, her business grows. “I like to think of Domani Designs as the client’s advocate,” Moffett explained. “Our goal should be helping to accomplish the goal of the client, while helping them to stay on budget and see their goals come into reality. That’s where building relationships come into play, then creating an end product that we are all proud of.” ■

Long Beach Business Journal 17 Since then, Distant Horizons has been among the first travel agencies to initiate cultural program tours to Burma, Laos, Vietnam, Lebanon, Tuva (a federal subject of Russia), Iran, Ethiopia, Cuba, Afghanistan and Libya. A guest scholar accompanies all Distant Horizons tours to give lectures and infuse the trips with an educational component, according to the company’s website. Moore conducts most of her business with institutions, although she sometimes books for large, general-traveler groups. Such a specialized niche in the travel industry doesn’t come without its risks. Misconceptions about an area’s safety are common, and recent events, such as the Malaysian airliner downed over Ukraine, increase traveler’s concerns. “If something like that happens again, it could impact the travel industry,” Moore said. She isn’t worried, though, because geopolitics evolve and with it so do her itineraries. For her expertise, Moore has been voted as an “A-LIST Travel Operator” by Travel and Leisure Magazine for several years running and is frequently interviewed by National Public Radio’s program, “The World.” A Long Beach resident, Moore also volunteers with the Long Beach Unified School District and is on the board of the Downtown Long Beach Associates. ■

Cynthia D. Schoelen, CPA

Named Partner of Onisko & Scholz, CPAs, LLP

Janet Moore Distant Horizons 350 Elm Ave. Long Beach 562/983-8828 • www.distant-horizons.com

Onisko & Scholz, CPAs, LLP is pleased to announce that Cynthia D. Schoelen, CPA has been named a partner at the firm. “We are excited to bring Cynthia on as a partner in the firm,” said Paul P. Scholz, CPA, ABV, and Managing Partner. “Through her client service focus, professionalism, and proactive attention to detail, Cynthia exemplifies the culture that we strive to provide our clients.” Cynthia was formerly the principal of Cynthia D. Schoelen, CPA, PC, and joined Onisko & Scholz, CPAs, LLP in 2005. With over twenty years in public accounting, Cynthia oversees consulting, forensic accounting and financial statement engagements. She has extensive experience working with nonprofits, government entities and privately held companies. She earned a B.S. in Business Administration from California State Polytechnic University, Pomona. She is a Certified Fraud Examiner (CFE), a member of the American Institute of Certified Public Accountants (AICPA), and the California Society of Certified Public Accountants. Onisko & Scholz has been serving the Long Beach area business community since 2004. Onisko & Scholz is one of the largest independently owned accounting and business advisory firms in the greater Long Beach area and provides tax and accountCertified Public Accountants ing services to small to mid-size businesses and indi562/420-3100 viduals throughout Southern California. www.oniskoscholz.com

ONISKO&SCHOLZ, LLP

nspired by excursions to exotic locations but unsatisfied with what she considered a “real lack of thoughtful travel opportunities to more remote parts of the world,” Janet Moore opened a cultural tour company, Distant Horizons, in Long Beach’s East Village Arts District in 1985. “It was hard during the first three years, but then the company took off,” said Moore, who employs three people and has a long list of clients, including groups from Stanford, Harvard, Yale, the American Museum of Natural History, the Washington Institute, World Affairs Council of Los Angeles and the Pan Am Foundation. Born in England and raised by a Spanish mother and an English father, Moore said she learned to appreciate diverse people and communities at an early age. She completed her undergraduate studies in England at the University of Bristol and her graduate work in public policy and economics at the University of Michigan. After graduating, she attempted to join the English Foreign Service, but a recession-induced hiring freeze prompted her to instead take a position with a Boston travel company. That was 1983. Moore said she quickly realized that remote areas of the world weren’t being marketed, and two years later she attempted to fill that gap by opening Distant Horizons. “I was very naïve and didn’t know what I was doing,” she said. Her first excursion fell flat when no one signed up, but she eventually came across a museum curator who was interested in assembling a large tour to India.

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PERSPECTIVE 18 Long Beach Business Journal

August 19-September 1, 2014

Lead Change. Manage Transitions.

EDITOR & PUBLISHER George Economides SALES & MARKETING EXECUTIVE Heather Dann SALES & MARKETING ASSISTANT Cori Lambert DISTRIBUTION Conrad Riley EDITORIAL DEPARTMENT SENIOR WRITER Samantha Mehlinger STAFF WRITER Brandon Ferguson PHOTOJOURNALIST Thomas McConville COPY EDITORS Lindsay Christopher and Pat Flynn The Long Beach Business Journal is a publication

South

Coast

Publishing, Inc., incorporated in the State of California in July 1985. It is published

every

other

hether change is being thrust upon you or you are boldly going where others have not, it would be a good idea to dissect change to gain a better understanding of it. Change is not always the dreaded exercise often portrayed in the media. There are times when change ■ EFFECTIVE excites us, energizes us, and LEADERSHIP motivates us. Buying a new By Mick Ukleja car, getting a different house, developing that new relationship, are all examples of inviting change. So where’s the real rub in change efforts? It’s not the actual change, but the transitions – adapting to the change – that create most of the tension. Change is an event. Buying a new house and moving in. Transitions are the protracted processes that we must go through subsequent to a change effort. Getting used to the house – new ways of doing things, different impact on relationships, new routes to community locations – can take months of adjustment. The same principle is true when changing jobs, overhauling your golf swing, or adopting a new company policy. The transition requires new ways of doing things. This is not automatic. What is automatic are the 95 percent of the things we are now doing, the things on autopilot that we get so much done with little effort or thought. Folding clothes and driving cars fall into this category, as do many routines around the home and office.

Vol. XXVII No. 16 August 19September 1, 2014

Tuesday

(except between Christmas and mid-

The 5 percent that is left over is used to recognize and make necessary changes. Let me state the obvious. Something must end for something better to begin. And it can hurt! But there is a big difference between hurt and harm. Everyone hurts when making a change leading to growth and productivity. But it’s not harmful. Harm leads to damage. Do not avoid hurt because you confuse it with harm. Pruning can hurt, but it produces growth and development. This is why transitions require emotional awareness and regulation. Our emotional responses are real. Every leader must acknowledge this. Embrace the fact that you are uncomfortable. Then ask, “What is the stress from? Let’s analyze it. Is it from something that’s wrong, or is it due to the transitions in changing?” Just thinking about it can bring relief. Gaining insight into the stages of transitions is helpful. Here are four. The first stage involves “routines.” They are already in place. Familiarity with certain routines makes the transition much easier to navigate. Sometimes it’s a matter of building on what exists. It could be as simple as canceling a low-value meeting and sending an email instead. Small improvements can make a big difference. Don’t change everything, but improve something. A second stage deals with “endings.” The resulting discomfort is normal. This is because it has a more personal impact on our lives. Our natural tendency is to resist. This can make us crosswise with life itself. It’s a time of goodbyes. Grief is an accompanying emotion since loss is a factor. A third stage is abeyance. This is simply a time of waiting for a change to happen. It can be character-

ized by low energy, apathy or ambiguity. This is a condition where the person adapts to the “misery” because there is nothing they can do about it. It is out of their control. This can be incredibly distressing for those professionals who view themselves as energetic and decisive. They think, “What’s happened to me?” The key is to lead people through these stages to the fourth stage which is “starting.” The “starting” stage is a time of energy, vision, hope, and excitement. New things are eagerly tried. Freedom to make progress is juicing the employee’s energy. This eventually becomes routine, right where we started. Like all models, it is not always perfectly sequenced by you or your people. But it provides markers to know where you are in the process, and where to move them next. Understanding this model prevents everyone from being blindsided. Knowing what stage you are in minimizes the “despair.” If you want change initiatives to be successful, then transitions will take a lot of energy and require a lot of attention. If managed well, any loss of productivity will be temporary and promises more productivity in the future. If managed poorly, toxic behavior can be seeded in the organization and linger for years. Lead Change. Manage Transitions. (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 non-profit organizations. Check his weekly blog at www.leadershiptraq.com.)

January) – 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)

Concussions And ACL Injuries – A Duo That Is On The Rise In Youth Sports ids competing in sports is as common as fireworks on the Fourth of July, because for most kids being active and playing sports is a way of life. Participation in sports offers social, emotional and physical benefits for children, and the rate at ■ HEALTHWISE which kids are playing By Kenneth sports has never been Huh, M.D. higher. In the U.S. alone, approximately 30 million children participate in some form of organized sports each year. However, just because playing sports is fun does not mean there isn’t potential for injury and that is where the numbers get interesting. According to the Centers for Disease Control (CDC), more than 2.6 million children 0 to 19 years old are treated in the emergency department each year for sports and recreation-related injuries, while high school athletes account for an estimated two million injuries, 500,000 doctor visits and 30,000 hospitalizations each year. Whenever you associate the words injury and sports in the same sentence it rarely ends without talking about two of the most common and serious injuries in sports today – concussions and anterior crucial ligament (ACL) injuries. These two injuries seem to be grabbing all the headlines, but for all the wrong reasons, as concussion and ACL injury rates are on the rise in professional sports and now their presence can be felt in youth sports as well. A concussion is a type of traumatic brain injury (TBI) and TBI’s are responsible for nearly 630,000 emergency room visits, more than 67,000 hospitalizations and 6,100 deaths in children and teens each year, according to research from the CDC. There are between 250,000 and 300,000 ACL injuries per year, and they're almost exclusively happening to

athletes. The incidence of ACL injuries in adolescents has risen dramatically over the past decade and account for 30 percent of all knee injuries in young soccer players. Despite the fact that these injuries are two of the more prevalent injuries in sports, the key is to be aware and to learn how to prevent sport-related injuries. A concussion can be caused by a blow or jolt to the head that can change how the brain normally functions. Concussions can occur from a fall or a blow that causes the head and brain to move quickly back and forth. In most cases, a concussion is described as a “mild” brain injury because they usually are not life-threatening. Even so, their effects can be serious which is why kids and parents need to know how to prevent them. Some of the most basic ways your child can avoid a concussion is to always wear proper safety equipment and make sure it fits properly, follow their coach’s rules for safety, the rules of the sport and practice good sportsmanship. Awareness of signs and symptoms of concussions – commonly headaches, nausea, vomiting, dizziness and short

term memory loss – is vital to allow for immediate removal from the sporting event and to help monitor when it is safe to return. An anterior cruciate ligament (ACL) injury is a tear in one of the knee ligaments that joins the upper leg bone with the lower leg bone. The ACL keeps the knee stable and bears a large amount of stress during sport activities. Injuries can range from mild, such as a sprain of the ligament, to severe, when the ligament tears completely or when the ligament and part of the bone separate from the rest of the bone. However, if your child performs training drills that improve balance, power and agility to their lower body, and plan for at least four weeks of endurance training before their sport begins, they can help protect themselves from ACL injuries. A pediatric orthopedic specialist knows that musculoskeletal problems in children are different than adults so if your child suffers a sports-related injury you should take them to see a pediatric orthopedic specialist right away. (Kenneth Huh, M.D., is a pediatric orthopedic surgeon, sports medicine specialist at Miller Children’s & Women’s Hospital Long Beach)

EARTHTALK: Antarctica’s Dear EarthTalk: To what extent is Antarctica really melting and what impact might it have on coastlines around the world? – Andrea Hutchinson, Cary, NC he Antarctic continent, roughly the size of the United States and Mexico combined, is composed of rock covered by glaciers some 16,000 feet thick. The glaciers form from fallen snow compacting into successive layers of ice, and they eventually move downhill toward the coasts and “calve” into the ocean as icebergs and eventually melt out into the sea. Antarctica and Greenland combined hold about 99 percent of the globe’s freshwater ice.

According to the National Snow & Ice Data Center, the result of the entire Antarctic continent melting out completely would be sea level rise of about 200 feet around the world, which could in turn lead to untold devastation. While no one can be sure how hot things will get as a result of global warming, most climate models don’t forecast conditions hot enough to cause the wholesale melt-out of Antarctica. In fact, the British Antarctic Survey (BAS) reports that the East Antarctic Ice Sheet, which constitutes about two-thirds of the world’s southernmost and iciest continent, is remaining relatively stable, with some slight melting that is bal-

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PERSPECTIVE August 19-September 1, 2014

Long Beach Business Journal 19

REO Volume Increasing espite a generally strong stock market, an improvement in employment figures, and home prices that are reflecting some progress if not dramatic appreciation, there appears to be the re-emergence of the dark underbelly of the REALTY VIEWS housing market: The volBy Terry Ross ume of REO (Real Estate Owned) foreclosure properties is on the rise again across the country in specific markets, particularly in Massachusetts, New York, Florida, Ohio, Illinois, Tennessee and elsewhere. The reasons are many. Lenders who have taken back foreclosed properties during the past seven-plus years of the economic downturn have in many instances held on to these properties in their portfolio and are only now starting to release them back into the sales pipeline. Much of the motive behind this stockpiling was to not flood the market when it

was at its worst, in 2008-10, which would have driven prices even lower. Another reason is that, even though government figures keep telling us that unemployment numbers are getting better, other sources reveal that more Americans are underemployed with falling wages, and many have given up on finding jobs and are no longer counted in the workforce numbers. The length of time Americans are spending unemployed rose in June after reaching its lowest point in more than five years. This will not help the housing market or the economy to improve much at all. And, according to information reported by Reuters regarding economic growth in the second quarter of this year, the U.S. economy grew at a 4 percent pace, but early reports like this one have been revised downward time and time again – such as the first quarter report that was revised and showed the GDP to be shrinking at a revised 2.1 percent pace. According to reports coming out of the National REO Brokers Association, most of

their members reported increased listing activity of REOs – with one company reporting 7,000 homes in their current portfolio – and expect that number to more than double through portfolio acquisitions and organic growth from their lending side. This is perhaps only anecdotal evidence of a worsening housing market and general economy, but even lenders themselves report that problems with loans have never really gone away. Many individuals and families who received loan modifications and other workouts are falling back into default, while the backlog of foreclosures in judicial foreclosure states are beginning to make it to the system, adding more REOs to the mix. Home equity lines of credit are recasting into much higher loan payments and could be the next big bubble for lenders to overcome. Another problem might be mortgages that were modified through the Treasury Department's HAMP program, which means higher mortgage payments while home prices are beginning to decline in many markets. FHA loans have become the "new" subprime loans,

and the government is pushing lenders to make loans to low-income families. But with a job market that is sketchy at best, even this program won’t help many people get into homes. Real average hourly earnings declined 0.1 percent, seasonally adjusted, from June 2013 to June 2014, according to the Department of Labor. The decrease in real average hourly earnings, combined with an unchanged average workweek, resulted in a 0.1 percent decline in real average weekly earnings over this period. This agency also reported that real average hourly earnings for all U.S. workers fell 0.2 percent from April to May this year, seasonally adjusted. Given these real numbers for American workers and the fact that foreclosed homes continue to be in plentiful supply in many markets, these issues will need to be addressed before we’ll be able to move away from the current stagnation. (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.)

Pursuing Intelligent Transportation Systems (ITS) TRADE AND TRANSPORTATION By Tom O’Brien and Steve Lantz egotiations continue between management and dockworkers over the next longshore contract for West Coast ports. There’s been little word from San Francisco, where the negotiations are taking place, as both sides have remained tight lipped. You can bet that one point of contention is the use of technology at the ports and what it means for union jobs on the waterfront. Regardless of the outcome, the use of technology throughout the supply chain will only grow. California faces significant transportation capacity challenges to meet current goods movement demand and to expand the state’s central role in global trade. Technology, including Intelligent Transportation Systems (ITS), will have to be one of the solutions if we’re going to keep pace. ITS has become one of the ubiquitous enablers of global trade. Typical public sector highway ITS programs include traffic management centers, closed circuit TV, permanent and portable dynamic message signs and video detection systems. Recent technology innovations include real-time adaptive signal control, photo detection to replace loop detectors embedded in the roadway, active doppler radar sensors to detect highway delays and BlueTooth travel time and delay reporting using data from mobile devices and moving vehicles. Yet integration of these systems has eluded state and regional agencies because integration has been beyond the scope of the

individual ITS initiatives. Funding the operation and maintenance of installed systems is also a significant challenge for over-stretched agencies. Transportation planning for metropolitan areas has traditionally focused on building and maintaining basic infrastructure to ensure adequate roadway capacity. Strategically using ITS requires agencies to shift focus from planning construction and maintenance of roadways to planning the operations of the surface transportation system. ITS deployment has not always been well integrated with other transportation strategies and programs. Lack of quantifiable information about benefits can put ITS projects at a disadvantage compared with other types of hardscape transportation projects, which have more easily quantified benefits. In addition to developing a workforce skilled in ITS, transportation agencies also need leaders who support ITS. Historically, California has focused its ITS initiatives on Traffic Management Systems and Traveler Information Systems. But regional initiatives are emerging to extend ITS to demand management and real-time trip routing. Growing congestion on the rails and parallel highways is forcing locales throughout California to consider ITS solutions that better integrate highway and rail networks. Locally, the Regional Integration of Intelligent Transportation Systems (RIITS) project, is an upgrade of the countywide traveler information system being developed by L. A. Metro, Caltrans and other agencies throughout L. A. County. The project will use a diverse set of data sources across a number

of agencies. Metro is also developing the Archived Data Management System data warehouse to enable development of multimodal products that mirror the USDOT’s Intelligent Transportation Systems strategic plan. The Gateway Cities Council of Governments (GCCOG), a joint powers authority of local jurisdictions adjacent to the San Pedro Ports, is undertaking an ambitious freight-specific ITS integration program. The GCCOG Goods Movement Technology Plan developed a concept of operations and a business plan containing a number of highwayrelated elements including freeway detection, arterial travel time reporting, queue detection at port gates, truck data collection, truck fleet communications, scheduling systems, performance monitoring, truck parking management, truck platooning, autonomous freight vehicles, truck enforcement, traveler information sharing, emergency notification, weather, and accidents / detours. Regardless of the initiative, the private sector will need to be an active partner in financing, testing and deployment. That means figuring out what matters most to key stakeholders like rail companies and truckers. For railroads there is a benefit to rail projects that are integrated with highway investments as part of a national freight policy. Railroads serving West Coast ports learned that the international transportation system can become congested when the rail and highway networks and intermodal connectors don’t keep pace with the growth in freight. In response, multi-modal business-related proprietary systems have

been implemented for global logistics, security of goods, and resource allocation and management. However, proprietary ITS technologies and proprietary data that provide a potential competitive advantage have created barriers to sharing that have slowed industrywide implementation. For its part, the trucking industry needs to improve existing real-time routing and scheduling information to help trucks avoid congested areas and peak travel periods. California has an opportunity to more aggressively lead ITS network initiatives throughout the state through private-public partnerships and by providing regulations and funding of open-standards technology and data source integration. This leadership role is important since statewide environmental and sustainability policies rely on the continued development of reliable and cost-effective demand management and system management tools that can be implemented seamlessly across modes throughout the state. (Dr. Thomas O’Brien is the director of research for the Center for International Trade and Transportation at CSULB and associate director for Long Beach Programs for the METRANS Transportation Center, a partnership of USC and CSULB. Steve Lantz is a transportation consultant to the South Bay Cities Council of Governments. For past articles in this series, please go to www. ccpe.csulb.edu/IndustryArticles.)

Melting And Its Impact On Coastlines anced out by new winter snows. Because East Antarctica rests on rock that is higher than sea level, it is unlikely to collapse. In fact, East Antarctica’s ice cover may thicken moving forward due to predicted increases in snowfall amounts over the coming decades. But on the west side of Antarctica, ice across an area roughly the size of Texas called the Amundsen Sea Embayment (ASE) is already thinning rapidly in large part as a result of surrounding waters warming up due to changing ocean circulation patterns. Many scientists believe that these ocean changes are happening as a result of human-induced

global warming as well as thinning of the stratospheric ozone layer. “This is an area that has always caused glaciologists concern, because here the bedrock beneath the ice is a long way below sea-level and the ice is only kept in place because it is thick enough to rest on the bed,” reports BAS. “Thinning of the ice around the coast could lead to glacier acceleration and further thinning of the ice sheet. Essentially, the ice sheet may be unstable, and the recent pattern of thinning could be a precursor to wholesale loss of the ASE ice sheet.” Meanwhile, researchers from NASA and

UC Irvine studying the ASE ice sheet report a “continuous and rapid retreat” of glaciers there and think that there is “no [major] obstacle that would prevent the glaciers from further retreat.” They worry that within a millennium and perhaps as soon as two centuries, the ASE could melt out entirely – leading to between four and 10 feet of sea level rise around the world – if moderate warming models prove to be correct. Of course, we can all play a role in preventing such scenarios by reducing our carbon footprints. Take fewer airplane trips. Buy organic food. Walk, bike or take public transit

to work. If you must drive, get a hybrid or electric car. Wear a sweater instead of turning up the heat. And urge legislators to push new laws that limit greenhouse gas emissions by industry, utilities and other big polluters. It may be now or never. Contacts: National Snow & Ice Data Center, nsidc.org; British Antarctic Survey, www.antarctica.ac.uk. (EarthTalk® is written and edited by Roddy Scheer and Doug Moss and is a registered trademark of E - The Environmental Magazine, www.emagazine.com. Send questions to: earthtalk@emagazine.com.)

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