June 24-July 7, 2014 Section A

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ege The Coll s es Of Busin tration Adminis B At CSUL

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lbbusinessjournal.com

June 24-July 7, 2014

PoliticalWire

Women In Business Profiles

Reviewing The Mayoral Race And The Votes

State Economy Continues Rebound ■ By MICHAEL GOUGIS Contributing Writer ed by the tech and IT sectors, California’s unemployL ment rate dropped to 7.6 percent

■ By GEORGE ECONOMIDES Publisher’s Perspective ontrary to what was previC ously reported in another local newspaper, Robert Garcia did not lose City Council Districts 6, 7 and 8 to Damon Dunn during the June 3 election for mayor, and the 6th District (primarily Central Long Beach) did not have the highest voter turnout. In fact, the 6th District once again earned the distinction of having the lowest turnout – less than 11 percent.

The June 6 story in the PressTelegram claimed the 6th District had a turnout of 24.4 percent and called the district a “battleground” for the mayoral race, listing Dunn as having received 2,501 votes with votes still to be counted. Actually, fewer than 2,400 people voted in the district – for both candidates combined – with Garcia receiving nearly 54 percent of the vote.

(Please Continue To Page 18)

Two of these women are new Long Beach entrepreneurs and two have been established in the city for years and are expanding their operations. See their stories on Pages 15 and 16.

■ By BRANDON FERGUSON Staff Writer ollowing runoff contests on F June 3, the two remaining city council seats were filled with 1st District Councilmember-elect Lena Gonzalez, current field

F

medical offices, and new retail centers to multi-family housing projects. Here is a brief look at many of the larger projects underway or planned in the city.

deputy for the district, and 5th District Councilmember-elect Stacy Mungo, a Los Angeles County budget officer and reserve deputy sheriff.

According to an unofficial report by the city clerk’s office, Gonzalez beat candidate Misi Tagaloa with 60.7 percent of the vote, while Mungo overcame a strong challenge by Carl Kemp, who garned significant endorsements from unions and former city offiials. Mungo earned 54.5 percent of the vote.

Both incoming officials spoke with the Business Journal about their constituents’ concerns, current city issues and their plans for office.

the ports, Los Angeles County’s unemployment rate dropped to a seasonally adjusted 8.2 percent from 10 percent a year ago, according to data released by the California Employment Development Department.

Following on the news that as of last month, the nation as a whole has recovered all of the jobs lost during the recession, local experts called the report positive and a reflection of steady year-to-year job growth in a wide variety of categories.

“This is a very good report,” said Dr. Robert Kleinhenz, chief economist of the Los Angeles Economic Development Corporation.

At the current rate of recovery (Please Continue To Page 6)

June Runoff Winners Lena Gonzalez And Stacy Mungo Discuss Their Plans And Priorities

New Commercial, Residential Projects Planned Across City

or some real estate development companies, the years of the Great Recession appear to be behind them – it seems that nearly every month building plans are submitted to the City of Long Beach for everything from industrial buildings,

in May, with the state generating 340,200 new jobs in the past 12 months and hovering on the threshold of recovering all of the jobs lost since employment peaked in 2007, state economic officials announced June 20.

With rebounding entertainment and construction employment and solid growth in container traffic at

Councilmembers-elect

Development Update

■ By SAMANTHA MEHLINGER Staff Writer

Jobs Report

Lena Gonzalez Gonzalez, like most other incoming city officials, said crime is a pressing issue facing her district. But she said something else is on her constituents’ minds: parking. “Parking is always a concern,” Gonzalez said. “In downtown [Long Beach], it’s always the number one thing.”

She explained that during her first 100 days in office, she would like to explore solutions to this perennial problem. “We’d love to create some stronger [parking] policies. I think we have some opportunities for parking permits in some areas (Please Continue To Page 19)

Online Harassment New Study: Most Occurs Through Facebook ■ By SAMANTHA MEHLINGER Staff Writer ne quarter of adults in the O United States experience online harassment, and the majority (57 percent) are women, according to the results of an early June online survey titled “The Rise of Online Harassment.”

(Please Continue To Page 13)

Industrial And Office Industrial developments in PADNET Opens Satellite Office At WE Labs In Honor Of The Late Markus D. Manley Long Beach continue at Sares- PADNET, the Public Access Digital Network in Long Beach, has opened a satellite office in honor of Markus D. Manley, the Regis Group’s Pacific Pointe founder of WE Labs who unexpectedly passed away in March at age 39. The satellite office is located within WE Labs at 235 E. Broadway, 8th Floor. “WE Labs is a perfect fit for developments, which encompass

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

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a PADNET satellite location as both organizations are committed to helping people manifest their creative visions,” said Lisa Mastramico, PADNET’s director.

“Markus was an amazing force in the Long Beach community.” PADNET is a program of the Long Beach Community Action Partnership and, according to a spokesperson, “offers high quality media tools and training to empower residents to create local news, information and entertainment.” WE Labs, founded by Manley in 2012, was envisioned by him to be a “collaborative creative center for entrepreneurs, techies, artists and nonprofit organizers.” Pictured at the new satellite office are, from left, Manley’s mother, Mary Charles; Robbie Brown, co-owner and co-founder of WE Labs; and Mastramico. WE Labs may be reached by calling 562/264-5883. (Photograph by the Business Journal’s Thomas McConville)

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INSIDE THIS ISSUE 2 Long Beach Business Journal

June 24-July 7, 2014

3 Newswatch 7-Oil, Gas Tax Dies In Senate Committee 10-Lucille’s Opening At 2nd/PCH Today, June 24 10-San Pedro Artist Van Hamersveld Hired By Topaz 11-State Revises Proposed Regs For Oil, Gas Well Stimulations 12-International Trade News In Brief 12-Downtown Harbor, Square Unveiled At L.A. Waterfront

15 Women In Business 18 Election Results 18-City Attorney Parkin Doesn’t Skip A Beat 18-PoliticalWire continued from Page 1 19-Councilmembers-elect continued from Page 1

20 In The News 20-Long Beach Commercial Real Estate Council Luncheon 20-Long Beach Area Chamber Of Commerce Annual Gala

22 Perspective Realty Views Shared Responsibility Mortgages – Can They Work? By Terry Ross Effective Leadership Judging, Injustice, Collecting, Gossip And Piling On By Mick Ukleja HealthWise Less Means More With Minimally Invasive Surgery By Les Edrich, M.D. Trade And Transportation Sustainable Freight

By Tom O’Brien Business Law The Limits Of Protection Offered By Liability Insurance By Tom Ramsey

Section B Focus On The Hospitality And Tourism Industry and semi-annual Meeting Sites Guide

ooops!

• A story announcing that Linda Drummond has been installed as the new president of the Assistance League of Long Beach incorrectly stated the group has an chiropractic center. It’s an in-house orthodontic center.

• A photo/caption announcing the opening of Bridges of Healing in Bixby Knolls showed the incorrect website. It’s www.BridgestoHealing.net.

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June 24-July 7, 2014

Assistant City Manager Frick Leaving For Ketchum, Idaho ■ By BRANDON FERGUSON Staff Writer Assistant City M a n a g e r Suzanne Frick announced on Friday that she is leaving the City of Long Beach to serve as City Administrator for Ketchum, Idaho.

Frick began her career with Long Beach in April 2005 as the city’s director of planning and building before being promoted to assistant city manager in December 2007.

She has spent more than two decades as a public servant, including 22 years with the City of Santa Monica, 11 of which she served as director of the planning and community development department.

“It is a very difficult decision for me to leave Long Beach. But I have always had a special place in my heart for the City of Ketchum,” Frick said in a statement, adding, “My experience in Long Beach has been nothing short of incredible, and I am constantly impressed by the professionalism, dedication and ability of City of Long Beach employees.”

City Manager Patrick West expressed sorrow at Frick’s departure. “We are losing one of the city’s very best today, but I wish Suzanne all the best as she pursues her dream. This city has benefited tremendously from Suzanne’s passion, dedication and talent,” West said in a statement.

According to a story by KMVT Channel 11 in Idaho, Frick was chosen from 84 applicants. Her salary will be $160,000, far less than what she is being paid here.

Ketchum is located east of the state capital, Boise, and south of Sun Valley.

Frick’s final day will be August 1. West said that he hopes to appoint her replacement before her last day with the city. ■

Mayor-elect Garcia Sets Up Website For Transition ■ By BRANDON FERGUSON Staff Writer As the new city council prepares to be sworn in on July 15, Mayor-elect Robert Garcia continues to move forward with his transition efforts. According to a press release issued on June 19, Garcia launched a transition team website providing links for people to apply for jobs in the mayor’s office and to suggest city commission appointments.

Garcia also plans to launch a mayoral fellowship program, drawing from students

Long Beach Business Journal 3 who attend Cal State Long Beach, Long Beach City College and other local schools. According to the transition team website, mayoral fellows take on a variety of tasks including policy research and community engagement.

“I am committed to hiring a talented and innovative team to work in the mayor’s office and to recruit highly qualified commissioners who love our city,” Garcia said in a statement. “I encourage anyone who is interested to visit the website and inquire about our jobs, fellowships and commissions.”

On June 5, Garcia announced the formation of his transition team, a group of 17 community members headed by attorney and former mayoral candidate Doug Otto.

The team makes suggestions for the mayor’s staffing decisions and appointments and has met to discuss the mayorelect’s priorities, including economic development and open government. For more information, visit the transition team website at www.robertgarcia.com. ■

Long Beach City Hall News In Brief ■ By BRANDON FERGUSON Staff Writer Rapid Medic Deployment – An attempt at the June 10 city council meeting by Councilmember Al Austin and three other councilmembers to delay implementation of (Please Continue To Page 4)

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NEWSWATCH 4 Long Beach Business Journal

City Hall News In Brief (Continued From Page 3)

BA Hosts The 50th Annual International Collegiate Business Strategy Competition Three teams of undergraduate and graduate business students brought home four trophies from the 50th Annual International Collegiate Business Strategy Competition. Participating teams ran a virtual company in direct competition against three to four other teams over a period of five simulated years. During that time they reviewed recent and historical financial and operating reports to make marketing, operating and financial decisions for both domestic and

By Annette Lohman, Ph.D., Administrative foreign operations.

Director of the ICBSC The competition involved and Faculty Advisor a remote phase of 10 weeks to CSULB Teams and a second, on-site phase which was held in Anaheim on April 24-26. A total of 33 teams from 22 universities from the U.S., Canada, China, and England were divided into seven groups of four to five teams (called “worlds”) as they vied for top honors in two categories: Best Written Reports and Best Overall Performance.

During the remote phase, students submitted a Strategic Business Plan and made company decisions for three simulated years (12 fiscal quarters).

Upon arriving in Anaheim for the intensive on-site phase, the teams submitted an annual report of their most recent year of operations to the judges. Over the next two days, they completed two more years (8 quarters) of decisions and met with the judges twice, with the final meeting being a formal presentation.

Judges are business executives with extensive professional experience in strategic planning, marketing, product research and development, software development, mergers and acquisitions, investments, commercial real estate, banking, public accounting, among others. The judges served as the companies’ “simulated” board of directors and queried student managers about their company decisions and performance.

Participating in the competition allows students to apply what they have learned in the classroom to a simulated real world in which they, as managers, are responsible for their company’s performance.

According to Jared Fisher, an MBA participant, “The ICBSC placed me in a situation in which I saw how different divisions of a business fit together and how they affect the others.” Students also appreciate the opportunity to network with students from other US and international universities.

This was the fourth year that the College of Business Administration has hosted the ICBSC which is the longest running, most comprehensive business competition open to business students.

(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.) ■

the Rapid Medic Deployment model (RMD) was unsuccessful.

Austin, along with Councilmembers Gerrie Schipske, Patrick O’Donnell and Steven Neal supported a motion calling for the RMD to be considered during the Fiscal Year (FY) 2015 budget discussions. The RMD program replaces one firefighter-paramedic on each city ambulance with less expensive EMTs. The remaining firefighter-paramedics are then to be moved to engine companies. Fire Chief Mike DuRee said the program saves the department $1.4 million dollars, while union leaders said it puts sworn firefighters out of work. Speaking before the council, Rex Pritchard, president of Long Beach Firefighters Local 372, said that with no current budget shortfall, the program is unnecessary. “This was a solution to a budget deficit we had two years ago that we no longer have today. The need to bring forward, when we’re on budget this year, and cut sworn firefighters at a time when we don’t have that need anymore, I hope we take hesitation in that,” he said. Councilmembers Suja Lowenthal, Gary DeLong, Dee Andrews and James Johnson opposed Austin’s motion leading to its defeat. Currently, implementation of the RMD program is scheduled for July 10.

Council Considers Placing Fire Captain On Lifeguard Vessels – The city council voted 8-0 at the June 10 meeting to receive and file a letter from Fire Chief DuRee regarding his plan to provide additional fire fighting training for lifeguards.

His letter explained that lifeguards have been injured while battling maritime fires and added that he plans to design an 80-hour course for lifeguards that goes beyond current training. DuRee wrote that he plans to put a fire captain on Rescue Boat #2 during the training period to assist two lifeguards already assigned to the vessel. At the end of the training, the captain is removed.

In another letter to the council, B. Chris Brewer, president of the United States Lifesaving Association, wrote that placing firefighters on lifeguard vessels is expensive and reduces the vessels’ capacities. “Lifeguards are recruited, screened and regularly tested for aquatic skills,” Brewster wrote, adding, “No firefighters are recruited for those skills. Modifying job duties for employees recruited for separate skills creates substantial challenges and limitations, including labor issues.”

Council Approves Transfer Of Agreements From Oxy To California Resources Corp. – On June 10, the city council voted 8-0 on multiple agenda items transferring agreements from Occidental Petroleum Corporation (Oxy) to California Resources Corporation. Oxy is in the process of creating the California Resources Corporation, which is set to own all of Oxy’s existing Long Beach operations.

Smart Gas Meters – On June 10, the city council voted 80 authorizing City Manager Pat West to enter into agreements with several companies responsible for supplying and installing smart gas meters at Long Beach and Signal Hill properties. The agenda item also authorized West to enter into a memorandum of understanding with Laborer’s International Union of North America Local 1309 to provide Long Beachfocused resident hiring and training for the project, known as the Advanced Metering Infrastructure (AMI) project. Funding for the $22 million project comes from the city’s gas fund and from gas revenue bond issuance. Companies tapped to provide services include Sensus USA Inc., Harris Utilities, Utility Partners of America and Utiliworks.

Children’s Maritime Foundation – On June 10, the city council authorized City Manager West to enter into a permit with the Children’s Maritime Foundation (CMF) allowing the organization to use docks and slips in Rainbow Harbor. The CMF operates the tall ship American Pride, which is used for historic interpretation and environmental education tours. The permit allows for an “in-kind” credit program to offset CMF’s dock fees. The permit is granted for a five-year term with one two-year renewal option at the city manager’s discretion.

City Awarded $924,000 For Park Restoration – Willow Springs Park is slated for upgrades thanks to a $924,000 state grant funded with Proposition 84 money. According to a June 11 city press release, the money is earmarked to build trails, plant trees and re-establish native vegetation. In a statement, 7th District Councilmember Johnson expressed excitement at the project as it moves forward. “When complete, this park will be the largest park space developed in Long Beach since El Dorado Park opened in 1952,” he explained. Proposition 84 provides funding for community green areas that reduce

June 24-July 7, 2014 energy consumption, conserve water and improve air quality.

In addition to new trails and foliage, the 12-acre Willow Springs Project also includes an outdoor classroom and a system of bioswales and ponding areas to divert storm water.

City To Acquire Former Army Base – The city council voted 8-0 at its June 17 meeting to authorize City Manager West to accept the transfer of the former U.S. Army Reserve Center located at 3800 E. Willow St. The property, formerly known as Schroeder Hall, was declared surplus under the 2005 Base Realignment and Closure Act provisions. The building is to house an east division police substation, and facility plans include locker rooms, showers and a gym. Fifth District Councilmember Schipske expressed appreciation for the city manager’s efforts to acquire the building. “It’s going to save the city a tremendous amount of money because we’re going to have an eastside police station where we don’t have to pay rent. I think it’s going to be a valuable asset for the community,” she said.

Location Agreement Program – On June 17, the city council voted 8-0 to authorize City Manager West to enter into a 20year location agreement with Dion and Sons Inc., the master distributor for Shell Oil Products U.S. in Southern California that provides fuel and lubricants to the ports of Long Beach and Los Angeles. City businesses that generate more than $50 million annually can apply for the Location Agreement Program (LAP), which allows the city to remit a negotiated portion of the businesses’ generated sales tax for an agreedupon period of time. In order for businesses to qualify for the LAP program, they must have a sales office in Long Beach and plans to consolidate other sales into their Long Beach location. Dion and Sons, which operates four additional distribution facilities around Southern California, has plans to consolidate management and sales operations into its Long Beach headquarters. Under the proposed agreement, Dion and Sons would receive 65 percent of the annual sales tax only after the city receives a base of sales tax equaling $490,000. In a letter to the mayor and city council, the department of financial management said the city would benefit from increased revenue. “After consolidation of Dion and Sons sales, the city is expected to receive significantly more revenue from Dion and Sons than if no agreement was in place.”

City Authorizes Purchase of $1.4 Million In Insurance Policies – On June 17, the city council voted 8-0 to authorize City Manager West to purchase a series of insurance policies totaling slightly more than $1.4 million in premiums. The policies provide coverage for municipal liability, airport liability and aircraft liability. The city’s casualty broker, Aon, is to purchase the policies.

Animal Impound Agreement Extended – On June 17, the city council voted 8-0 to extend its agreements between Long Beach’s Animal Care Services Bureau (ACS) and the cities of Cerritos, Los Alamitos, Seal Beach and Signal Hill to provide animal impound services. The agreement is scheduled to last for two years, from July 1, 2014, through June 30, 2016. The compensation schedule for FY15 is expected to bring a total of $606,243 to the general fund. The FY16 compensation schedule adjusts according to the change reported in the Bureau of Labor Statistics’ Consumer Price Index up to eight percent.

Sections of 55th And Louise To Be Converted To One Way Streets – Also on June 17, the city council voted 8-0 to approve conversion of 55th and Louise Streets between Linden Avenue and Long Beach Boulevard to one-way streets. The vote comes several years after a traffic study led to implementation of oneway traffic on 56th and Ellis Streets between Linden and Long Beach. Before voting on the item, 8th District Councilmember Austin urged support from fellow councilmembers. “We can really improve traffic flow in a neighborhood that desperately needs it,” he said. The estimated cost of labor and materials to install the traffic control is $10,000.

Billboard Ordinance Adopted – Following a staff recommendation, the city council voted 8-0 on July 17 to adopt an ordinance regulating billboard advertising. Aimed at reducing blight, the ordinance implements a “cap-and-replace” program. This means that a company interested in creating a new electronic billboard is required to take down eight existing, non-compliant billboards. Non-electric billboards require the removal of six billboards. Companies who don’t have the inventory to meet take-down requirements are eligible to come to different terms with the city, provided the companies can prove it’s infeasible to meet the take down ratios. ■

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NEWSWATCH 6 Long Beach Business Journal

June 24-July 7, 2014

Jobs Report

While the unemployment rate still isn’t at the level economists say is typical of a healthy and growing state and local economy, it is worth noting that Kleinhenz said that employers – particularly those who need high-trained employees for higher-paying jobs – actually are starting to report difficulties in filling positions in Southern California, particularly in the aerospace sector.

Los Angeles County has been generating new jobs at a rate of about 2.0 percent per year, although it has been lagging behind the strong technology and IT sector that is based in the Silicon Valley and the San Francisco Bay area.

The county, which had 4,287,500 people holding jobs at its pre-recession December 2007 peak, reported 4,193,300 job-holders

(Continued From Page 1)

(a 2.3 percent increase in jobs over the past 12 months), the number of jobs in California will exceed its 2007 employment peak in the next several weeks.

And even allowing for a slower rate of growth over the next six months, the state will generate enough new jobs to drop the unemployment rate to about 7.2 percent, the figure at which most economists would consider an indication of an expanding economy.

With nearly 15.5 million people employed, California in May reported having only 18,000 jobs less than it did in July 2007, and is second only to Texas in the number of new jobs generated in the last year.

“There are more positive signs today by far than there were. Even still, the level of confidence isn’t where we’d like it to be.”

Robert A. Kleinhenz, Ph.D. Chief Economist Los Angeles Economic Development Corporation

in May, Kleinhenz said. The health care, administrative support and wait services, leisure and hospitality all reported increases, and construction employment increased by 8.1 percent, he said.

This is significant in the context of a hesitant real estate market, where “construction and real estate activity is some-

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what uneven this year. The supply situation continues to be quite lean. There’s some concern about interest rates, even though they are still near historic lows,” Kleinhenz said.

Even with concerns about the real estate sector, construction jobs are growing in the county and in the state at a rate that outstrips the rest of the country, he added.

“Even construction, in a sector that continues to cause us concern, is registering some of the biggest percentage gains in the country,” he said. And in Los Angeles County, he added, “We’ve seen some pretty hefty gains in construction employment.

It’s still adding jobs at a faster clip than the nation as a whole.”

Another local sector that has rebounded is the entertainment industry, in particular the motion picture and sound recording industry, which is centered in Southern California. At this time last year, California had 31 percent of the nation’s jobs in those two sectors; this year, that number has grown to 40 percent.

The increase in container traffic at the ports of Long Beach and Los Angeles is indicative of the improving employment environment. Statewide increases in transportation and warehousing are linked to the approximately 5.0 percent increase in container volume at the ports.

While California has lost some high-profile corporate headquarters in recent

A Historical Look At The Long Beach Unemployment Rate May of each year except for 2014 since data by city has not been released

Year 2014 (April) 2013 2012 2011 2010 2009 2008 2007 2006 2005 2004 2003 2002 2001 2000

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Source: California Employment Development Department

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NEWSWATCH June 24-July 7, 2014 months, Kleinhenz pointed out that those activities are “nameplates,” compared to the overall economy, and those companies still rely on a vast array of subcontractors that are based in California and in Southern California in particular.

The aerospace sector, he said, is actually looking for engineers to fill highpaying jobs, largely in private aviation and areas like the development of drone technology. And at least some of the reduction in aerospace headcount, he said, can be attributed to improvements in the technology of production and manufacturing that have eliminated the need for employees.

“We have a pretty vibrant aerospace industry here in 2014,” Kleinhenz noted.

For Southern California, economists feel that an unemployment rate of about 7.4 percent indicates a healthy and growing economy, so there is more work to do in generating new jobs, he said.

Statewide, economic weaknesses include an over-reliance on part-time employees who want full-time work. However, Kleinhenz said recent data showing a downturn in U.S. worker productivity historically has been followed by an upturn in full-time employment figures, as full-time workers are more productive than parttimers. Kleinhenz said he expected the percentage of full-time workers to increase over the next 12 months.

And there still is a lack of confidence in the overall economy, Kleinhenz said.

“There are more positive signs today by far than there were. Even still, the level of confidence isn’t where we’d like it to be,” he said.

In the past 12 months, employment increases were reported in the following sectors statewide, according to state EDD data: • Mining and logging; • Manufacturing; • Trade, transportation and utilities; • Information; • Professional and business services; • Educational and health services; • Leisure and hospitality; • Other services; and • Government.

The increases took place in two pay regions, Kleinhenz said – entry-level positions and higher-skill levels. Those are jobs that typically require a bachelor’s degree or higher level of education.

Overall, those nine sectors added 356,400 jobs from May 2013 to May 2014, the data shows.

Two sectors – manufacturing and financial activities – posted losses of 16,200 jobs over the past 12 months, EDD data indicated.

According to non-seasonally adjusted data, Marin County posted the lowest unemployment rate in the state at 3.8 percent, with Imperial County posting the highest at 21.1 percent. In Southern California, Orange County posted a 4.9 percent unemployment rate, Riverside and San Bernardino counties registered an 8.0 unemployment rate (as did Los Angeles County, compared to its seasonallyadjusted rate). Ventura County showed a 5.9 percent unemployment rate, San Diego County 5.8 percent, and Kern County 10.1 percent. ■

Long Beach Business Journal 7

Oil, Gas Tax Dies In Senate Committee Referred To As A ‘Killer Bill’

By California Chamber ■ By SAMANTHA MEHLINGER Staff Writer A state assembly bill that would have imposed a severance tax on oil and gas operators for the privilege of extracting oil and gas resources in California failed when it was held in the State Senate Appropriations Committee on May 23.

The California Chamber of Commerce labeled Senate Bill (SB) 1017 a job

killer due to the increased costs it would have imposed on the oil and gas industry, amounting to a 9.5 percent tax on the average price per barrel of oil and a 3.5 percent tax on the average price per unit of gas.

“We hope the reason SB 1017 was held in committee is due to the fact that legislators understand the bill would have cost jobs and hurt our economy,” Jennifer Barrera, CalChamber policy advocate, told the Business Journal via e-mail.

Before the bill failed, local oil industry professionals told the Business Journal the it would have negatively impacted their business by increasing production costs and reducing hiring capabilities.

The Western States Petroleum Association, which represents many large

oil companies in California, opposed the bill as well.

The bill’s author, State Sen. Noreen Evans, has authored similar legislation nearly early year for the past several years to impose taxes on the oil and gas industry to fund education. She told the Business Journal last month that oil and gas operators’ concerns about the bill were mostly “red herrings.”

“The proponents of the oil tax bill that was submitted in Sacramento this year are deliberately misrepresenting the California situation on taxation on oil,” said David Slater, COO and executive vice president of Signal Hill Petroleum. Slater pointed out that there is already a state tax on oil production in California called an ad valorem (property) tax. ■

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NEWSWATCH 8 Long Beach Business Journal

June 24-July 7, 2014

The Downtown Long Beach Associates (DLBA), a nonprofit organization overseeing downtown’s business improvement district, recently held an informational cocktail mixer for real estate brokers about creative office space development opportunities in the downtown area. DLBA staff showed brokers and potential tenants renderings of ongoing and proposed creative office space projects in Downtown Long Beach in the hopes of attracting further investment. Guests enjoyed drinks on a rooftop beer garden at Pine Avenue’s latest restaurant, BO-beau kitchen+rooftap. The speakers in the foreground are Toliver Morris (left), DLBA economic development committee member and leasing manager of Landmark Square, and Kraig Kojian (right), DLBA president and CEO. (Photograph by the Business Journal’s Thomas McConville)

Development Update (Continued From Page 1)

Douglas Park and other land adjacent to the Long Beach Airport. In terms of square footage, new industrial and office developments in this area make up the city’s largest commercial developments.

On June 4, Mercedes-Benz USA (MBUSA) began construction on its new West Coast regional facility on a one mil-

lion square foot property, located on the 52.2-acre lot that used to house the Boeing 717 commercial aircraft manufacturing facility. The company signed a 15-year lease with Sares-Regis, and the property’s plans include a Vehicle Preparation Center (VPC) for automobiles shipped into the Port of Long Beach and MBUSA’s Learning & Performance Offices, according to a company statement.

Mercedes Strategic VPC Operations

Manager Ted Boudalis estimated the company’s new facility would be operational in the first quarter of 2015.

Across the street from the MercedesBenz’s project, on the southeast corner of Lakewood Boulevard and Conant Street, Sares-Regis Group plans to develop a new industrial project called Pacific Pointe East. Plans submitted to the Long Beach Planning Commission call for three industrial buildings “intended for light industrial, light manufacturing, warehouse, office and/or research and development land uses.” Building sizes are 118,000 square feet, 144,000 square feet and 232,000 square feet.

Amy Bodek, director of Long Beach Development Services, said the development’s environmental impact report has been certified and the city has approved site plans. Sares-Regis may now either construct the buildings to suit specific tenants or “build out the core and shell for the buildings and then find tenants to move in and do tenant improvements later,” she said.

“With the success of the first two phases of Pacific Pointe, we hope to continue to invest in the City of Long Beach and develop another quality projects attracting new companies to the thriving Long Beach area,” Zoe Solsby, director of corporate communications for Sares-Regis, told the Business Journal.

On the west side of Lakewood Boulevard, commercial property development continues at Douglas Park, where two medical office buildings are under construction. Two local medical groups purchased the buildings, which measure 38,000 square feet and 52,000 square feet.

Developer Urbana Development, LLC estimated the buildings should be completed

by December. “We are anticipating the first tenants being in there and open for businesses in January,” said Richard Lewis, managing member of Urbana.

Also within Douglas Park, CBRE, Inc. recently sold a 3.5-acre parcel of land to Shimadzu Precision Instruments, a company specializing in medical and aerospace instruments. Shimadzu constructing a 55,000-square-foot building and relocating from Torrance.

Retail Westside Long Beach may soon be home to a new retail development. In early June, the California State University, Long Beach (CSULB) Research Foundation brought to the planning commission an environmental impact report and site plans for demolishing buildings on a 9.88-acre parcel at its Technology Park and replacing them with a new 122,500 square-foot retail building. Plans indicate one or two tenants may occupy the building.

“The intent of this project is to expand retail shopping opportunities in West Long Beach,” according to a city staff report. It would also generate about 250 on-site jobs, the report stated. Mo Tidemanis, director of property development for the CSULB Research Foundation, told the Business Journal he could not yet share details about potential tenants or a construction timeline.

In East Long Beach, the environmental impact report (EIR) process continues for a retail development by Taki Sun, Inc. called Shoppes At 2nd + PCH, located at the site of the SeaPort Marina Hotel. “The Notice of Preparation for the new draft EIR was circulated, and the time frame for initial comment on the scope of the draft EIR closed in mid April,” Bodek said. She estimated a draft EIR would be available for public comment by late summer or early fall. Conceptual plans include retail, office and restaurant uses as well as a movie theater.

At Marina Pacifica, which is located just across 2nd Street from the planned Shoppes At 2nd + PCH, a retailer may soon replace the big box vacancy left by Loehmann’s departure in January after the chain filed for bankruptcy. Mitchell Hernandez, the CBRE, Inc. associate handling leasing for the property, told the Business Journal that the location attracts an “endless amount of interest,” adding, “Ownership is negotiating with several parties.” He said an agreement should be finalized within 90 days.

Multi-Family Several multi-family developments are underway across Downtown Long Beach.

1_LBBJ_June24_SectionA_LBBJ MASTER LAYOUT 6/22/14 7:45 PM Page 9

The majority still need final city approval, according to Bodek, including the 222-unit project at 245 W. Broadway and two new adaptive reuse projects that would convert the former Security National Pacific Bank building at 110 Pine Ave. and the Ocean Center building at 110 W. Ocean Blvd. into apartments.

Construction has started on other multi-family projects, including the adaptive reuse of the former City Hall East into a 156-unit mixed-use residential and retail project called Edison Lofts. At 707 E. Ocean Blvd., a building has been demolished to make way for The Current, the first of two luxury rental towers.

“They are in the process of mobilizing their contractor and we expect them to break ground in the next couple of months,” Bodek said of the developers.

Slightly further inland, Urban Village, a

mixed-use development with 129 marketrate apartments at 1081 Long Beach Blvd., is scheduled for completion in August.

In May, developers Urban Pacific Multi-Housing LLC and Pacific Partners Residential announced another multifamily development in downtown. The 30-loft building at 6th Street and Elm Avenue is being built over groundwork laid for a previous development that never moved forward. “That gets rid of what was a blighted construction site. It adds new investment in that area of downtown,” Bodek said. “They are finalizing their building plans and will be starting construction very soon; I’d say probably in the next six weeks,” she added.

Lennar Multifamily Communities has proposed another multi-family project on Ocean Boulevard at a site it has owned

since around 2007 or 2008, according to Bodek and Ryan Gatchalian, Lennar’s president of Southern California urban/multi-family development.

“Originally it was going to be condos.

During the recession we put it on ice for awhile, and now we’re redesigning it and bringing it back as apartments,” Gatchalian explained.

Lennar has submitted preliminary plans for the property at 150 W. Ocean Blvd. to the city, Bodek said. Gatchalian said plans include 216 apartments available for lease and “typical apartment amenities” such as a pool and clubhouse.

Lennar is partnering with Intergulf Development Group on the project.

“We’re hoping to start [construction] in spring of next year,” he said.

After a modified project design for a hotel and residential development at the

site of the Beach Plaza Hotel on Ocean Boulevard was denied by the California Coastal Commission in April, developer Silversands Properties USA is moving forward with previously entitled plans.

The design by local architectural firm Studio One Eleven includes 40 hotel rooms and 56 residences. Mike Murchison, a representative for Silversands, said the developer is meeting with city staff over the next several weeks to review approved entitlements and prepare to submit a demolition permit for the existing hotel onsite.

“Assuming all goes well with the city process, we will start with demolition in the next several months following appropriate submittals and the construction will commence shortly after that,” Murchison said. He estimated construction may start in late fall. ■

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NEWSWATCH 10 Long Beach Business Journal

June 24-July 7, 2014

Lucille’s Smokehouse Bar-B-Que Opening At 2nd/PCH Today, June 24 Craig Hofman, president of the Hofman Hospitality Group (HHG) based in Signal Hill, points to the signature picture for his Flying Pig Lounge located within his popular Lucille’s Smokehouse Bar-B-Que restaurants spread throughout California, with two in Nevada and one in Tempe, Arizona. Today, June 24, Hofman is opening his latest Lucille’s at 6257 E. 2nd St., previously home to a Hof’s Hut, also owned by HHG. At the same time, he closed the Lucille’s located on 2nd Street in Belmont Shore. The first of 19 Lucille’s opened in 1999 at Long Beach Towne Center. The new Lucille’s at 2nd Street and Pacific Coast Highway is open daily for lunch and dinner.

Online orders and reservations are accepted at lucillesbbq.com or call 562/434-7427.

Pictured June 19 are employees and other workers putting the finishing touches on the new Lucille’s (Photographs by the Business Journal’s Thomas McConville)

Topaz In San Pedro Incorporates Local Art At Its Rebranded Office Tower San Pedro artist John Van Hamersveld, well known for his Endless Summer poster of 50 years ago, has been selected to develop a special installation as part of a curated arts program for Topaz, an 11-story, 292,540-square-foot office tower at 222 W. 6th St. on the San Pedro Waterfront. According to a statement, the art program, named TopazArts, is being commissioned and curated by building owner Jupiter Holdings “to enhance the work environment and experience for tenants and visitors alike.” A Jupiter spokesperson said the company is “dedicated to supporting the local arts community and is working closely with the San Pedro Art Association on securing additional art exhibits at the property from other local artists.” Van Hamersveld’s piece will be a 10-foot by 20-foot art installation that is a new addition to his “Waterworks” Collection. It will be featured in the building’s lobby. Hamersveld has designed more than 300 famous album covers including the Beatles’ Magical Mystery Tour and the Rolling Stones’ Exile On Main Street, to the classic posters for Jimi Hendrix, Eric Clapton, and the Pinnacle Dance Concerts.

In addition, he has designed corporate logos including Fatburger and Contempo Casuals, as well as the official poster & 360-foot-long mural for the 1984 LA Olympic Games. Jupiter Holdings LLC, based in Newport Beach, was founded by Ed St. Geme in 1997. “We are trying to help create the ‘next wave’ in San Pedro and this piece will be representative of that,” said St. Geme. “It’s a great way to add an artistic element to our multi-million dollar capital improvement program.” (Photo provided by Topaz)

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1_LBBJ_June24_SectionA_LBBJ MASTER LAYOUT 6/22/14 7:45 PM Page 11

NEWSWATCH June 24-July 7, 2014

State Revises Proposed Regulations For Oil And Gas Well Stimulations Public Meeting In Long Beach On July 17 ■ By SAMANTHA MEHLINGER Staff Writer The California Department of Conservation released revised proposed regulations for well stimulation treat-

Long Beach Business Journal 11

ments used in oil and gas production on June 13. The revised regulations add more detailed requirements related to reporting seismic activity near stimulated wells, neighbor notification of well treatments, permit applications for well treatments and oil and gas operators’ public disclosure notifications of well stimulation treatments.

Senate Bill 4, signed into law by Gov. Jerry Brown last September, mandated the creation of notification requirements for oil and gas operators using well stimulation treatments to increase rock formation permeability. The revised regulations are now in a 45-day comment period, which closes on July 28, and go into

effect on January 1, 2015. The California Department of Conservation is hosting a public meeting on July 17 from 4-7 p.m. at the Long Beach Convention & Entertainment Center, 300 E. Ocean Blvd., where oral comments on the regulations are accepted.

The revised regulations address a concern oil and gas industry professionals expressed to the Business Journal last fall when the proposed regulations were first released.

They noted acid stimulation treatments are often used to simply clean out well bores rather than loosen natural resources in the earth for extraction. The revisions address this issue by including a differen-

tiation between well stimulation treatments and treatments used for “routine well cleanout work.” A calculated acid volume threshold was also altered to more accurately reflect the acid concentrations used in well stimulation treatments as opposed to routine cleanouts.

Revised notification regulations would require oil and gas operators conducting well stimulation treatments to notify neighbors in English and Spanish. These notifications, among other topics, let neighboring individuals know about their right to request water well testing before and after oil and gas well stimulations.

Another change relates to tracking seis(Please Continue To Page 12)

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NEWSWATCH 12 Long Beach Business Journal

June 24-July 7, 2014

Downtown Harbor And Square Unveiled At L.A. Waterfront On the morning of June 20, the Port of Los Angeles unveiled the new Downtown Harbor and Town Square at the L.A. Waterfront on Harbor Boulevard in San Pedro, between 5th and 6th Streets. The plaza and harbor, pictured, are adjacent to Ports O’Call Village and the World Cruise Center. The harbor, converted from a parking lot, encompasses 1.2 acres of waterfront between Fire Station 112 and the Los Angeles Maritime Museum and now provides free fourhour dockage for recreational boats.

The plaza features decorative LED lights, palm trees, an amphitheater, items from the Maritime Museum and art deco pathway bollards along the waterline. A public art installation called “The Ship Chandler” by Mark Dion is also located in the plaza. In a statement, Los Angeles Councilmember Joe Buscaino, whose district includes San Pedro, said the project was completed on time and came in $4 million under budget. The project started in March 2012 with a $32 million budget. L.A. Harbor Commission President Vilma Martinez said in a statement, “The completion of Downtown Harbor is a major step as we continue to enhance the L.A. Waterfront experience for residents and visitors.” (Photograph provided by the Port of Los Angeles)

International Trade News In Brief ■ By SAMANTHA MEHLINGER Staff Writer Port Of Long Beach Named World’s Greenest Port – The Port of Long Beach (POLB) was recognized as the world’s “Best Green Seaport” thanks to a poll of

freight transportation service professionals conducted by Cargonews Asia, a shipping trade publication. The port received the honor at the 28th Annual Asian Freight & Supply Chain Awards in Shanghai on June 17. Long Beach Board of Harbor Commissioners President Doug Drummond called the designation “an honor.” According to a press release from POLB, the award is given to ports that meet certain environmentally-friendly requirements: “demonstrated compliance with

Oil And Gas Well Regulations Revised By State (Continued From Page 11)

mic activity – under the proposed rules, oil and gas operators would have to monitor the California Integrated Seismic Network for earthquakes of magnitude 2.0 or greater within a five-mile radius of “five times the anticipated fracture length from each point of fracture” after employing hydraulic fracturing. This process, commonly known as “fracking,” involves pumping water, sand and other chemicals into rock at high pressure to crack the rock formation, allowing easier access to oil and gas.

The earthquake-related regulations were included due to concerns that fracking may cause seismic activity. A January report on the U.S. Geological Survey’s (USGS) website explained that the “number of earthquakes has increased dramatically over the past few years” in areas of the United States where fracking and the injection of wastewater – a byproduct of oil and gas production – deep into the earth have become common. However, the report noted, “USGS’s studies suggest that the actual hydraulic fracturing process is only very rarely the direct cause of felt earthquakes.” Wastewater injections, however, have been shown to induce earthquakes, the report stated.

Following the release of the revised regulations, Western States Petroleum Association (WSPA) President Catherine

Reheis-Boyd issued a statement in support of the drafted revisions.

“California is continuing down the path towards a comprehensive and robust set of regulations that will protect the state’s environment while ensuring hydraulic fracturing can be conducted safely and with great efficiency,” she stated. WSPA represented many oil and gas companies in California and other western states. Reheis-Boyd added that WSPA continues to review the updated draft, but so far finds “it appears to be in line with the Department of Conservation’s and the Department of Oil, Gas and Geothermal Resources’ commitment to transparency and collaboration with the industry and public.”

Department of Conservation Chief Deputy Director Jason Marshall told press in a follow-up to a media conference call on June 17 that of the 150,000 comments received in the comment period for the originally proposed well stimulation regulations, the oil and gas industry’s comments “expressed support for the department’s pragmatic and balanced approach to this rulemaking.” He added that their comments “tended to be technical in nature.”

As a result, “The department made some adjustments to definitions and criteria in the proposed regulations to provide industry with flexibility on some technical requirements and to minimize delays,” Marshall said. ■

green freight transport regulations and environmental standards; investment in green initiatives, technology and action plans; incorporation of environmental requirements in strategic planning; use of policy on reducing fuel emissions from freight handling operations; and ongoing training of staff in green initiatives and in measures to lower carbon footprints.” Over the past 10 years, the port has implemented various green programs, including its Clean Trucks, Green Flag Vessel Speed Reduction and Technology Advancement program. “The Port of Long Beach has made great strides in reducing air pollution and improving water quality, and we are committed to doing even more,” Drummond said in a statement.

POLB Cargo Volumes Increase – The Port of Long Beach’s cargo container volumes increased by 2.7 percent from May of 2013 to the same month this year, the port announced on June 16. With almost 599,509 twenty-foot equivalent unit (TEU) containers coming through the port, this was the busiest May for POLB since 2007.

Imported containers increased by 2.3 percent from last May, while exports experienced a slight 0.3 decrease. Empty containers made up the largest increase, with a 7.1 percent bump to 140,368 TEUs, according to the port. In the past five months, total container traffic has increased 1.3 percent over the same period last year.

Port of Los Angeles Cargo Volumes Increase – From May 2013 to the same month this year, total container traffic through the Port of Los Angeles (POLA) increased by 8.2 percent, the port announced on June 16. In total, 689,141 TEUs of cargo traveled through POLA in May. Imports increased by 7.75 percent from May of last year and exports increased 2.3 percent. Empty containers represented the largest increase in container traffic at 15 percent. Overall container traffic at POLA increased 8.2 percent in the first five months of 2014 compared with the same period the prior year.

POLB Harbor Commission Supports Business-Friendly Incentives – At the June 13 Long Beach Board of Harbor Commissioners meeting, the board gave initial consent to two incentives meant to attract business to the port. Through one policy, the Port of Long Beach would grant a $5 per container unit award to shipping lines for each loaded container they bring to Long Beach and ship via on-dock rail.

Not only does this policy use a monetary incentive to encourage shippers to bring cargo to the port, it also encourages them to use rail to ship goods, which eliminates some truck trips on local roads, according to a port statement. Through another incentive, the port would waive dockage fees to cargo ships that slow down and plug into on-shore power or use other “approved pollution cutting technology at berth,” a POLB press release stated. This policy encourages the use of cleaner power with the goal of reducing air pollution caused by ships in the POLB harbor. By implementing these incentives, the port would lose $3.3 million to $4.9 million per year, but by attracting new business the policies should offset the loss, port staff estimated in a statement. The harbor commission was scheduled to cast final votes on these items at yesterday’s (June 23) meeting.

POLB Launches Customer Website – The Port of Long Beach announced the launch of its new Customer Portal website on June 16, created in a partnership with Ignify, Inc. Any port customer with a valid e-mail address may use the portal, which provides access to payment history, invoices, lease terms and other documents in one online location. The system allows customers to print invoices and pay them online without additional charges. Security features on the website allow users to customize and restrict employee access. To request use of the site, send an e-mail to billing@polb.com with the subject line “Customer Portal Access Request,” and include your name, company name and telephone number. ■

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NEWSWATCH June 24-July 7, 2014

Online Harassment (Continued From Page 1)

Lincoln Park Strategies, Rad Campaign and the blog craigconnects sponsored the nationwide survey of 1,007 individuals.

Most online harassment occurs through Facebook, according to the survey – 62 percent of those harassed said they were victimized on the popular social media site.

Facebook had nearly a 40 percent lead over the second highest source of online harassment, Twitter. Six other social media platforms were cited as forums where harassment occurs online, as was e-mail. Sexual harassment was the most common type of web-based harassment reported.

Since women experience the most online harassment, businesswomen might also want to take note of the second most common type of harassment on the web – slurs about professional character and ability.

Twenty-eight percent of people who experienced online harassment said it fit this category.

Allyson Kapin, partner and co-founder of Rad Campaign, a firm providing web

Long Beach Business Journal 13 management and online marketing to nonprofit organizations, was one of the minds behind the survey.

“I had an interest in conducting the poll because I was personally seeing a rise in online harassment when it came to people in my community, who were women in technology and journalists,” she told the Business Journal by phone from Washington, D.C. Kapin is also the founder of Women Who Tech, a project connecting women in technology across the globe through online summits and panels.

Active social media users may have noticed increased discussion of online and face-to-face harassment of women after a young man who had posted YouTube diatribes against women went on a shooting rampage in Isla Vista, killing six people. The event sparked a social media outcry in which users on platforms such as Twitter and Instagram used the hashtag #yesallwomen to discuss the harassment and mistreatment of women. The discussion went viral and was widely covered by national media when it generated more than one million tweets.

(Please Continue To Page 14)

1_LBBJ_June24_SectionA_LBBJ MASTER LAYOUT 6/22/14 7:45 PM Page 14

NEWSWATCH 14 Long Beach Business Journal

Online Harassment (Continued From Page 13)

The survey also provides data on the type of harassment both women and men are experiencing – information which Kapin said has been largely unavailable until now.

When she began her research, she realized more data was available about online bullying of children and hardly any data had been collected on online harassment of adults. “There has been very little research done on online harassment. I think our [survey] is probably one of the most extensive polls that has been done about this in recent years,” she said.

Stefan Hankin, president of Lincoln Park Strategies, who spoke from D.C. with Kapin, noted the same lack of online harassment research. “Let’s start having this conversation around some actual data and not guess what is happening,” he said of the impetus for the survey.

Other key findings in the report, available online at www.onlineharassmentdata.org, were that 67 percent of those harassed knew their harasser, 52 percent of women and 40 percent of men under the age of 35 reported some harassment and of those who know someone who had been personally harassed, 65 percent knew a woman who had been harassed.

The report also examined the prevalence of online harassment across racial groups and political parties.

“We wanted to raise the public profile

June 24-July 7, 2014 of online harassment,” Kapin said. “It is destroying people’s lives, not just emotionally but professionally as well, because [other] people are witnessing this [harassment] online in a very public way,” she explained. “It is happening on their Facebook and Twitter profiles, which are very public to friends and colleagues at companies.”

Of those who reported experiencing online harassment, 38 percent reported it hurt self-esteem, 29 percent were fearful for their lives, 20 percent reported being afraid to leave their homes and another 20 percent were concerned about implications for their careers. Hankin noted the percentages in the survey do not add up to 100 percent because respondents were allowed to respond with multiple answers to each question.

Because 62 percent of web-based harassment occurs on Facebook, the Business Journal reached out to the company for comment. Matt Steinfeld, a Facebook communications manager, pointed out, “If you took any 1,000 people in a room, a larger proportion are likely using Facebook” than other social media platforms. He wondered if the survey’s results reflected this likelihood.

“We ran linear regressions of Facebook usage and the amount of time people have spent on Facebook. We found there was no correlation,” Hankin said. Linear regressions are equations measuring the relationship between variables. Kapin pointed out that if Steinfeld’s logic was

sound, e-mail should have come out as the top mode of harassment because people use it more than Facebook. Yet, e-mail came in as the third most-reported mode of online harassment.

“I wouldn’t want anyone to take the numbers and say it’s all Facebook’s fault,” Hankin stressed. ‘But, clearly, since most of this is happening on Facebook, I would argue it has a high level of responsibility to try to be on top of this.”

Sgt. Patrick O’Dowd, head of the Long Beach Police Department’s (LBPD) violent crimes division, said his office most frequently sees online harassment cases associated with Facebook and e-mail. The department currently handles about eight cases of online harassment per year, O’Dowd said. In these cases, “we have seen a majority of women” as the victims, he noted. He estimated that in about 80 percent of cases, the victims knew their harassers.

The small number of cases LBPD handles may be attributable to the fact that, according to the survey, only about 12 percent of adult Americans who experience harassment online report it to local law enforcement. Half of those harassed completely ignored the intrusive behavior, taking no action.

“Maybe it is because the victims don’t think it rises to the level of a criminal investigation,” O’Dowd said of why so few people report online harassment. So what does rise to the level of criminality?

“Obviously if there are criminal threats being made . . . [and] if they [harassers] are threatening specific violent actions and the suspect doing the threatening has the immediate capability of carrying through those threats, that would certainly qualify for a criminal investigation,” he said.

Simple arguments or one-time negative comments aren’t issues O’Dowd recommends reporting to the police.

“People have first amendment rights and they are allowed to speak their minds, and if someone doesn’t like what they are saying, I wouldn’t suggest that that type of thing needs to go through the police department.”

He noted that the violent crimes division handles 6,000 cases covering all manners of violent crimes per year with only six detectives – that’s 1,000 cases per detective. “Certainly we want to investigate criminal activity, but if something is not criminal we don’t have the resources, or really I don’t think it is appropriate for us to become involved in people’s personal lives if it is a simple argument.”

Some social media platforms, such as Facebook, give users the option to report content they feel is inappropriate or abusive; however, those platforms do little to proactively prevent online harassment from occurring.

Facebook does have a web page that outlines community standards and bars threats of violence, self-harm, ongoing bullying or harassment and hate speech, among other behaviors, but it is typically up to the user to report occurrences.

Depending on the type of behavior, Facebook may recommend the reporter consult with friends on how best to combat the issue, suspend an offending users’ account or even refer the issue to law

enforcement. When asked if Facebook was considering ways to more proactively combat online harassment, Steinfeld said he did not have a response.

To further reduce online harassment, Kapin suggested social media platforms could issue a code of conduct as part of their terms of service. She also noted that having social media companies explain to harassers whose accounts are suspended why their behavior was inappropriate might also help curb web-based harassment.

Hankin hopes to delve into the causes and effects of online harassment in further research. “We have two-thirds of people saying they knew their harasser, and clearly these events don’t just happen after 5 p.m.,” he said, explaining that he hopes to investigate how much of online harassment is workplace related.

Kapin noted that as more employees work virtually and more public relations employees represent their companies online, businesses themselves might have to start considering ways to combat online harassment.

Lowenthal Pushes Bill To Provide Private Space At Airports For Nursing Mothers ■ By BRANDON FERGUSON Staff Writer State Assemblymember Bonnie Lowenthal, who represents Long Beach, Signal Hill, Avalon and parts of San Pedro, is sponsoring a bill requiring airports to provide private space for nursing mothers to breastfeed. While legislation is already in place requiring employers to provide these areas, such spaces are rare in airports. Currently, San Francisco International Airport is the only one in the state to offer nursing spaces with a total of 14 – one in each terminal.

“Now more than ever, California moms are traveling as part of their jobs, and this bill helps them balance their commitment to breastfeeding their children with the demands of their careers,” Lowenthal said in a statement.

AB 1787 requires California airports with one million emplanements each year to provide a private space with a chair and electrical outlet. The space could not be part of a bathroom. Long Beach Airport has approximately 1.5 million enplanements per year and the bill, if passed, will apply.

“Currently we have a family restroom, in each concourse that is a private, single restroom for family needs.” Airport Public Affairs Officer Kerry Gerot told the Business Journal in an email. “The airport would comply with any future legal requirement mandated in the final legislation.”

Lowenthal’s bill passed the assembly on May 28 and will next be considered by the senate appropriations committee on June 30. ■

1_LBBJ_June24_SectionA_LBBJ MASTER LAYOUT 6/22/14 7:45 PM Page 15

WOMEN IN BUSINESS June 24-July 7, 2014

Long Beach Business Journal 15

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M

arina Hernandez’s quest to seek out natural products for her child inspired her to open a store where mothers may find a variety of organic, ecofriendly children’s goods.

As a former teacher for the Los Angeles and Long Beach Unified School Districts, Hernandez has a passion for working with children. She has taught for a few years at an after school program with offices on 2nd Street in Belmont Shore. While working with local families and seeing many mothers strolling down 2nd Street, Hernandez realized Belmont Shore needed a baby boutique with an eco-friendly twist, she said.

“The whole inspiration pretty much is my daughter,” Hernandez said about the impetus for her new shop, Born Free Children’s Boutique. Her daughter, who is nearly two, has sensitive skin, which caused Hernandez to seek out organic products as alternatives to mainstream brands. As a result, she stocks her store with natural, sustainable goods such as those from The Honest Company, which makes nontoxic products in environmentallyfriendly packaging.

Born Free Children’s Boutique opened on Park Avenue in Belmont Shore on May 1.

While Hernandez said business could be “much better,” she reflected, “I think it is going really well considering we have just been open a month.” Word of her business seems to be spreading – some customers recently visited the store because they read about it on a blog for mothers, she noted. Plus, the foot traffic from adjacent 2nd Street helps, she added.

There seems to be strong demand for eco-friendly, natural products, Hernandez observed. Most parents who come into her store already know about and are seeking the products she carries, she said.

As she navigates life as a new business owner, Hernandez said her greatest challenge is “finding time to move my business forward and also finding time for my personal life.”

Between juggling two jobs and her roles as wife and mother, finding that time is sometimes challenging.

Her role as a mother also plays into her vision for the future of Born Free. In addition to starting an online store to accompany her brick-and-mortar location, Hernandez wants “to offer classes for parents, like a sign language class or a nursing class . . . That is important for me as a parent,” she said. She hopes she can partner with local organizations such as Long Beach Memorial Medical Center to make those dreams a reality.

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WOMEN IN BUSINESS 16 Long Beach Business Journal

Sage Salon And Spa – Susan Weinstein Sage Salon And Spa: 4240 E. 4th St., Long Beach Sage Salon On Anaheim: 4126 E. Anaheim St., Long Beach 562/346-4772

S

usan Weinstein’s hair styling career inspired her to open a salon where hairdressers could choose the hours they work and build up clientele in a welcoming environment.

She now owns two salons in Long Beach – Sage Salon And Spa and Sage Salon On Anaheim.

Weinstein began cutting hair in Long Beach in 1989 and has been dreaming about opening a salon for 10 years, she told the Business Journal. She came close to realizing her dream about a decade ago, but when she found a location in Seal Beach she realized a beauty supply store would better suit the neighborhood’s needs. When the lease on that location expired in 2011, Weinstein closed the beauty store to pursue her original passion for salons.

A vacant office suite on 4th Street became available just as the lease on Weinstein’s beauty supply store expired. She rented it, seeing an opportunity to custom-design her salon in the bare space. “It was affordable and I saw lots of potential when I walked into it,” she recalled. “I took my time designing it and picking out what I thought would make a great atmosphere.”

About a year after Weinstein opened Sage, she leased out the rest of the building.

Originally, she was the only hairdresser at Sage. After expanding, “I have about 18 hairdressers at that location,” she said.

Stylists at Sage have “complete freedom” to “sell their own products, make their own hours, [and] come and go as they like,” Weinstein said. “They all have a key to the building. They all have their own businesses. I don’t do anything but collect the rent and make sure they have a nice, clean atmosphere.”

In February of this year, Weinstein opened a second Sage location on East Anaheim Street. “I enjoy the challenge of opening up a place in a neighborhood that could really use a more elegant, fun kind of salon,” she said. She opened the second location simply because she “loved the challenge” of starting up a new salon. Six stylists are employed at that location. Both Sage shops offer hair and nail services, skin care and massages.

“My biggest challenge right now is making sure that I am able to bring business into the salons,” Weinstein said. Advertising to attract clientele and make people aware of the salons is always a challenge, she said. Weinstein hopes to open more salons in the future.

Yellow 108 – Lauren Lilly 1105 E. 3rd St., Long Beach 562/491-6400 • www.yellow108.com

A

fter years of working in sales and marketing in the natural products industry, Yellow 108 founder Lauren Lilly saw the companies she worked for ultimately close their doors and decided to use her industry knowledge to strike out on her own.

“We kind of learned through the mistakes of watching CEOs and owners . . . not being involved in the day to day,” Lilly said of herself and Yellow 108 co-founder Jody Rollins.

June 24-July 7, 2014 “They were also ecological companies that weren’t necessarily as ecological as they could be. We just saw how we could take things to the next level,” she added.

Since founding Yellow 108 in 2010, Lilly’s sustainability-focused accessories company has saved 20 tons of textile materials from landfills.

“Everything we do is salvaged and recycled materials,” Lilly said of Yellow 108’s line of hats, sunglasses and napkins. “We work directly with textile mills to take their scraps and waste. We repurpose it into our line,” she explained. Yellow 108 does not dye or wash textiles to alter the fabric. “We salvage in the raw form to keep as ecological as possible.”

Whole Foods Market was the starting point for Yellow 108, approving the sale of the new company’s products in five of its stores in 2010. “We sold the line to Whole Foods from first run of samples, and it was really the mission and the idea that they liked the most,” Lilly said. Now, Yellow 108 products are approved for sale in every Whole Foods store in the U.S., Canada and the United Kingdom. The products are also available on Yellow 108’s website.

“We have had extremely rapid growth. We have more than doubled our business every year since we launched,” Lilly said. In order to grow her business by its own financial means, Lilly said the company never takes on bank loans. “We invest our profits back into our company so we can only grow as much as our profit allots,” she explained.

The biggest challenge to move Yellow 108 forward is “making sure I am thinking about the bigger picture at all times,” Lilly reflected. “A decision you make today could affect you a year from now or two years from now.”

In August, Yellow 108’s Long Beach showroom is moving to a historic building, which is currently undergoing construction and restoration, on Long Beach Boulevard between Broadway and 3rd Street. In the future, Lilly said she hopes to base Yellow 108’s manufacturing in Long Beach. Currently, the company manufactures its products at three locations, two in the U.S. and the other in China.

Yesterday’s Memories Village – Cindy Matranga 4143 Norse Way, Long Beach 562/676-8515

R

etired kindergarten teacher Cindy Matranga’s passion for collecting antiques blossomed into a business when she opened Yesterday’s Memories Vintage in Long Beach on June 7.

Collecting vintage items started out as a hobby after Matranga’s early retirement in 2011, but soon grew into a second career. “I have always loved antiques, and as my children got older and I was able to afford them, I started buying and trading with people,” she recalled.

It wasn’t long before she began selling 1950s-era hats and gloves on eBay and on a neighborhood Facebook page. When that was successful, she began collecting and selling vintage evening wear, sweaters and beaded purses as well. “Before I knew it, I had a full-blown business,” Matranga said. Her successful enterprise began to supplement her retirement income.

Matranga waited for about two years to open a shop on Norse Way in Northeast Long Beach while hoping for a vacancy. When retail space recently became available, she snapped it up. “I think it is a cute neighborhood. It is kind of retro,” she said of Lakewood Village, home to the liberal arts campus of Long Beach City College.

Opening Yesterday’s Memories Vintage allowed Matranga to expand her inventory. The store carries vintage mid-20th century furniture, housewares, clothing and other goods. “I have some shabby chic stuff, and I have a rack of vintage clothes for some of the young college students that come through here,” she said. The prices are “pretty reasonable,” she noted.

Although the store has only been open less than a month, Matranga said she already has a consistent stream of customers, and business has been going well. The other businesses on Norse Way and on adjacent Village Road have been welcoming, she added.

“Making sure people know we are here and we are in business” is the biggest challenge to move her business forward, she said. “It is such a small store and the street is kind of tucked away in a community,” she explained. “That is my biggest challenge: making sure people know where I am and what I am selling. Getting the word out.”

As with many new business owners, Matranga’s focus for the future is making sure Yesterday’s Memories Vintage is financially stable and is able to survive its first few years of business. She added, “My goal is to be financially fluid and be able to support myself through this.” ■

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1_LBBJ_June24_SectionA_LBBJ MASTER LAYOUT 6/22/14 7:46 PM Page 18

ELECTION RESULTS 18 Long Beach Business Journal

City Attorney Charles Parkin Doesn’t Skip A Beat After Election Win Seeks Audit On Workers’ Comp Section To Ensure ‘Best Practices’ ■ By BRANDON FERGUSON Staff Writer Following a hard-fought election culminating in a runoff victory over a sitting councilman, City Attorney Charles Parkin is being sworn into office July 15.

June 24-July 7, 2014 Since Parkin has been with the city attorney’s office for 15 years and took over for former City Robert Attorney Shannon who retired last July, he is well prepared. In fact, in a recent email to the Business Journal, he said he’s already making changes at the city attorney’s office, including hiring staff to replace recent retirees and reviewing operations to improve efficiencies and save tax dollars.

“Having served as the city attorney for the past year I have already made some changes in the office including the promo-

tion of Monte Machit to assistant city attorney,” Parkin stated. He further explained that he has requested an audit of the workers’ compensation section “to ensure we are using best practices to monitor and process cases while delivering the required benefits at the best possible cost.”

Parkin said that his office is handling a number of issues, many of which are scheduled to appear before the city council, from an electronic cigarette ordinance to the Belmont pool rebuild.

“In addition, we are very busy in litigation handling approximately 210 cases,” Parkin wrote, citing a list of issues including claims of police misconduct and public records act suits.

Parkin easily defeated his challenger, 7th District Councilmember James

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Johnson, in the June 3 runoff election, receiving 61.3 percent of the vote. Parkin expressed gratitude to those who supported him, adding that he is excited about the future.

“I look forward to working with Mayorelect Garcia and the city council on the many issues facing Long Beach. This is an exciting and historic time in Long Beach. I hope by continuing to provide quality legal services, the office of the city attorney can contribute to the future of Long Beach,” he said. ■

PoliticalWire (Continued From Page 1)

A political consultant used by the newspaper stated that the two campaigns “decided to make a fight out of one of the more diverse parts of the city.” But the fact is, in citywide races, little attention is given to districts which historically have a low voter turnout.

We don’t usually critique another newspaper’s articles, after all we all make mistakes (we have a couple of “ooops!” on Page 2), but election results should be reported accurately. (Yes, writers should always strive for accuracy no matter the story.) The article also reported that Dunn had received 3,218 votes versus Garcia’s 2,674 votes in the 8th District. Yet, only around 4,500 people voted in the district.

Following are some facts we gleaned from reviewing all of the precincts: • Mayor-elect Garcia won eight of the nine council districts, losing only the 5th District (Northeast Long Beach). Dunn won the 5th District handily, receiving more than 56 percent of the vote.

• It appears the vote count was extremely close in three of the nine districts. Garcia won the 9th District (North Long Beach) by roughly 20 votes, the 3rd District (Southeast Long Beach) by around 40 votes, and the 8th District (Bixby Knolls/North Long Beach) by fewer than 75 votes. Those are all approximate numbers.

• The Downtown area and neighborhoods north and east of downtown proved to be the difference in the election. Garcia won the 1st District (where he has served as councilman since 2009) by more than 700 votes, receiving 63 percent of votes cast. He did even better in the 2nd District, receiving 68 percent of the nearly 5,000 votes cast. Combined, those two districts gave Garcia an edge of just over 2,500 votes. Garcia won the election by 2,145 votes.

• The 3rd and 5th Council Districts (nearly 24,000 votes combined) accounted for just over 45 percent of all votes cast for mayor.

• The combined votes in the 1st, 6th and 9th Districts totaled around 8,250 – that’s out of nearly 70,000 registered voters. That is why candidates for citywide office do not spend a lot of time or money in those three districts.

• The citywide turnout was 20.77 percent, according the city clerk’s office.

The 5th District had the highest percentage of registered voters turn out with around 33.5 percent. The 3rd District was next with more than 32 percent, followed by the 7th District (West Long Beach, Wrigley and California Heights) with

1_LBBJ_June24_SectionA_LBBJ MASTER LAYOUT 6/22/14 7:46 PM Page 19

ELECTION RESULTS June 24-July 7, 2014 more than 21.7 percent, and the 4th District with just over 20 percent.

• Approximately 2,000 more people voted by absentee ballot than went to the polls to vote: 51.9 percent to 48.1 percent.

Prior to Election Day, it was expected that a low voter turnout would be helpful to Dunn. It didn’t work out that way.

Why? It appears Dunn did not have a good Election Day get-out-the-vote effort. A Business Journal writer walked

Long Beach Business Journal 19 into Garcia’s election headquarters on the Friday before Election Day and saw two dozen people making phone calls. Dunn did not have a headquarters office.

Dunn also did not have the social media savvy of Garcia, who, along with supporters, used the Internet successfully to get voters to the polls.

In the end, several factors led to Garcia’s victory, beyond running a better campaign. Dunn spent a whole bunch of

his own money – roughly $900,000 – which turned off some voters who thought he was buying the election (we heard from many people who told us that’s why they were voting for Garcia).

Dunn did not have roots firmly planted in the city, having moved to Long Beach in December 2011. While he was involved in several organizations, that’s not the same as being involved in the neighborhoods, serving on task forces,

Lena Gonzalez, 1st District councilmember-elect, is pictured at the corner of Pacific Avenue and Anaheim Street. She said that a lack of parking is an ongoing issue for district residents and businesspeople, and that tackling it is one of her top priorities. She also wants to find creative ways to generate funds for district needs. Gonzalez easily defeated her runoff opponent in the June 3 election, garnering more than 60 percent of the vote. (Photograph by the Business Journal’s Thomas McConville)

Councilmembers-elect Gonzalez, Mungo (Continued From Page 1)

that in the past have been overlooked,” she said.

Another priority for Gonzalez is the port.

She explained that she plans to work closely with the port’s executive director and commissioners, and has been in contact with the neighboring city council district to discuss port issues. “Meeting with Councilmember Suja Lowenthal in the 2nd District, I think she and I can work on some really good policies together and also shine a light on a lot of the job opportunities available [at the port],” Gonzalez said.

But even more pressing an issue is perhaps the city’s multi-billion dollar budget, which Gonzalez and the other councilmembers are set to decide on soon after being sworn in. When asked about tackling the issue straightaway, Gonzalez said her experience working for current Councilmember Robert Garcia – now Mayor-elect Garcia – has prepared her.

“I've been pretty well informed with the budget having worked on it,” Gonzalez said, adding, “I work with our parks budget and our public works budget. I can see the effects of the cuts and what happens.”

Gonzalez said that while budget decisions are tough, she hopes to find additional ways to fund the things important to her community.

“It’s finding other funding opportunities like grants and CDBG (Community Development Block Grant) funding and getting more creative on that side for more of our fun pet projects, and our parks programs and figuring out fiscally how we can put ourselves into a better position,” Gonzalez explained.

While Gonzalez said she has chosen her chief-of-staff as well as an individual to influence legislative issues, she added that she’s not prepared to announce names.

As for the future, Gonzalez said she's excited to take office. “I have a lot of ideas already, and I’m ready to put them in place with a good staff and a good team,” she said.

testifying at city council meetings, volunteering for beach cleanups, etc. He was – and is – unknown to the vast majority of residents.

But don’t dimiss Damon Dunn, who’s only 38 years old, quite yet. He proved a very capable and knowledgeable candidate who came very close to being the new mayor. If he stays in Long Beach as he said he will, expect to hear his name in a future Long Beach campaign. ■

Since winning the election, Mungo has prepared for the early September council vote on the budget by meeting with the city manager’s office and other councilmembers and councilmembers-elect. “We’d all like to discuss the civic center project and the Belmont pool. We’re talking about one-time expenditures for things like turf on fields so that ongoing maintenance costs are reduced. We can put some of those committed dollars into repairing our streets and sidewalks more completely,” Mungo said.

She added that she is well prepared to deal with the budget after taking office, thanks to her work as a budget officer for Los Angeles County.

Though she has yet to make any final staffing decisions, she said she is currently reviewing resumes. “One thing I’m definitely strong on is my commitment to bring in paid and unpaid interns from local universities. Southern California has a wealth of talent, and individuals need to be put to work,” Mungo said, adding that she plans to

keep her office accountable to residents. “I want residents to know that the 5th District is accessible, honest and transparent. We’re going to start off on a foot of inclusion.”

Long Beach’s new city councilmembers – including Suzie Price, Roberto Uranga and Rex Richardson covered in the June 10 issue of the Business Journal – are sworn in on July 15, as is Mayor-elect Garcia, City Attorney Charles Parkin, City Prosecutor Doug Haubert and City Auditor Laura Doud. ■

Stacy Mungo When discussing crime issues within the 5th District Stacy Mungo said her district has experienced a couple of daytime home burglaries in recent weeks. In response, she plans to set up two task forces with business community volunteers to focus on community development and neighborhood watch.

“Some of the brokers and realtors in the area have already stepped up and said they want to support neighborhoods by being the eyes and ears while people are at work,” Mungo said, adding, “Even one crime is too many.”

Stacy Mungo, councilperson-elect for the 5th District, is pictured with fellow members of the Junior League of Long Beach, an organization of volunteers working to improve the community: from left, Debra Bein, Heidi Cook, Holly Henderson, Mungo, Kim Bryan and Allison Anderson. Mungo said she’s committed to creating a safer community, including the formation of more neighborhood watch programs. (Photograph by the Business Journal’s Thomas McConville)

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IN THE NEWS 20 Long Beach Business Journal

June 24-July 7, 2014

Long Beach Commercial Real Estate Council Annual Luncehon Meeting The Long Beach Commercial Real Estate Council held its annual meeting June 11 at the Westin Long Beach. More than 200 people attended to hear a panel of speakers discuss new trends in urban development.

Pictured on the bottom row from left are members of the Long Beach Commercial Real Estate Council Board of Directors: Chris Barbieri; Brian Russell; Mike Soutar; Randy Jones; President Kelly Dent; Mark Sokolowski; Todd LaPlante; Myles Helm; and Arnie Garfinkel. On the top row far left is Richard Rizika, managing director, CBRE, and moderator of the event panel, with panelists, from left: Sondra Wenger, first vice president, CIM Group; Robert Tarnofsky, director From left, of real estate, Continental Development Corp.; Gregory Ames, managing director, Trammell Crow Company; Alan Pullman, AIA, senior principal, Studio Chamber One Eleven; and Tony Shooshani, president, ETC Real Estate Services.

Downtown Townsend,

International City Bank’s Ron Wilippo, left, and Alexander Rodriguez.

Tom Heller, left, and Scott Huntly are with the Apartment Association California Southern Cities, based in Long Beach.

Randy Gordon, Long Beach Area of Commerce; Kraig Kojian, Long Beach Associates; and Bill Inco Company.

From left, CBRE’s Justin McMahon, Chris Gentzkow, Tim McMahon, Annika Riphagen and Mitchell Hernandez.

From left, Andrew Mitrosilis of Appraisal Pacific; Mike Muetzel of Spectrum Commercial Lending; Ted Douglas of Appraisal Pacific; and Dean Haidl of From left: Derek Burnham, Burnham Planning & Developmemt, with Lee & Spectrum Commercial Lending.

Associate agents Sean Leippman, Garrett Massaro and Brandon Carillo.

From left, Curt Yaworski, Environmental Management Group; Ann Doherty, ODIC Environmental; and Nick West of Barry Slatt Mortgage.

Photographs by the Business Journal’s Thomas McConville

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IN THE NEWS June 24-July 7, 2014

Long Beach Business Journal 21

Long Beach Area Chamber Of Commerce Annual Gala About 750 people attended the Long Beach Area Chamber of Commerce 123rd Gala June 12 at the Long Beach Convention Center Ballroom. The evening also honored the health care industry as Diana Hendel was installed as 2014-15 chair of the Chamber Board of Directors. Hendel is the CEO of Long Beach Memorial Medical Center, Miller Children’s and Women’s Hospital Long Beach, and Community Hospital Long Beach. She replaced outgoing chair, LaDonna DiCamillo, regional vice president of government affairs for BNSF Railway Company.

Councilmember-elect Stacy Mungo with her boyfriend, Kurt Williams.

Chamber chairs – past, presdent and future – surround Randy Gordon, who in April celebrated his 20th year as president and CEO of the organization. Pictured from left are: Past Chair LaDonna DiCamillo; current Chair Diana Hendel; past Chairs Lori Lofstrom, Dave Dedinsky, Jay Davis and Mark Gray; Gordon; past Chairs Mike Walter, Blake Christian and Jim Gray; Chair-elect Kristi Allen; and past Chairs Joseph Prevratil and Lou Anne Bynum.

Assemblywoman Bonnie Lowenthal with Mike Walter of Walter Pyramid fame.

Immediate Past Chamber Chair LaDonna DiCamillo with her husband, Dennis.

Long Beach Area Chamber Of Commerce 2014-2015 Board Of Directors

RUTH CANLOBO

JOHN FREEBORN

MITRA NOVIN

CLAY SANDIDGE

DENSO Products & Services Americas

RK Properties

The Boeing Company

Muni-Fed Energy

DIANA HENDEL

ELOY OAKLEY

DOUG SHEA

DEBORAH GOLIAN CASTRO

Long Beach City College

INCO Commercial

ANTHONY OTTO

WAYNE SLAVITT

Long Beach Container Terminal

Mobul

Hyatt Regency Long Beach

Long Beach Memorial Medical Center/Miller Children's & Women’s Hospital Long Beach/Community Hospital Long Beach

MICHAEL SOLT

KENNETH DAMI

TED HILDRETH

JOSHUA OWEN

California State University, Long Beach

Tesoro Refining and Marketing

Opus Bank

Ability/Tri-Modal Transportation Services

State Farm Insurance

HILDA DELGADO

KEN HOUP

ANDY PEREZ

Alta Service/Foodcraft Coffee Service

KRISTI ALLEN

Southern California Edison

UHS Insurance Agency

Union Pacific Railroad

JON DEUSENBERRY

CRAIG IMA

TRAVIS TAYLOR

Hotel Maya

KENT PETERSON

AECOM

JAVIER ANGULO

United Parcel Service

Windes

P2S Engineering

LADONNA DICAMILLO

PHIL JONES

LESLEY WILLE

Walmart Stores

RON PIAZZA

JOHN BAKKER

BNSF Railway Company

Coldwell Banker Coastal Alliance Realty

Piazza Family Restaurants

Kaiser Permanente South Bay Medical Center

City National Bank

IVONNA EDKINS

GAIL KODAMA

DEBRA RUSSELL

SHENUI WEBER

THOMAS BERG

DeVry University Long Beach

Charter Communications

Signal Hill Petroleum

JetBlue Airways

JEFF EVANS

JIM MCCLUSKIE

PAM RYAN

Long Beach City College, College Advancement & Economic Development

WILLIAM BETTISON

AES Alamitos

Moffatt & Nichol

Renaissance Long Beach Hotel

NICK WORTHINGTON

Enterprise Rent-A-Car

STEPHEN FAICHNEY

BILL MCFARLAND

DAVE SAKAMOTO

Worthington Ford

KATHY BOYER

Valero Energy

OXY Long Beach

Farmers & Merchants Bank

JIM ZEHMER

TMK Dental Management dba/Village Dental Center Building

THOMAS FIELDS

MICHAEL MILLER

TOM SALERNO

TABC/Toyota

TCT Enterprises

International City Bank

St. Mary Medical Center

ENA ALCARAZ

From left, Blake Christian of HCVT; Bruce McRae of UPS; and Robert Garey of Cushman & Wakefield.

Creative Productions

STEPHEN D'AGOSTINO

PHIL STEUBER

Photographs by the Business Journal’s Thomas McConville

From left, Chamber Chair Diana Hendel with Thomas Salerno of Dignity Health St. Mary Medical Center and Chamber Chair-elect Kristi Allen of the Hotel Maya.

From left, Ron Gastelum, Marianne Venieris, Nancy Becker and Randy Gordon.

1_LBBJ_June24_SectionA_LBBJ MASTER LAYOUT 6/22/14 7:46 PM Page 22

PERSPECTIVE 22 Long Beach Business Journal

June 24-July 7, 2014

Judging, Injustice, Collecting, Gossip And Piling On

■ EFFECTIVE LEADERSHIP

By Mick Ukleja If you judge people, you have no time to love them.

– Mother Theresa

he fact is, no matter how much we think we ‘shouldn’t’ judge, we are so conditioned to do so that without increasing our selfawareness, we will not only judge one another but we will continually judge ourselves and even our judgments!

In order to begin gently upping our awareness, it is useful to make a clear distinction about what constitutes a judgment (as opposed to an assessment or distinction, both of which are essential in the process of making decisions and moving towards goals).

Here’s the distinction that I use, based on the work of Barry Neil Kaufman:1 A judgment is any evaluation of something as being good, bad, right or wrong.

First the obvious. We all have weaknesses and strengths. And all of our strengths have a shadow side. We can help one another with these errors in judgment, inconsistencies, and down right stupid behavior. How? When we approach others knowing our own proclivity for bad behavior, we approach them with humility. This turns judgmental thinking into helpful feedback. We disarm

T

the defensive. The recipient is more receptive and the results are more productive. Now, it’s up to the other person to respond. Our part is not to add poison to the well. Without this humility the temptation is to engage in injustice collecting.

When we judge we are essentially setting ourselves up as moral arbiters, claiming we know best what the world is supposed to be like.

Not only is this a trifle presumptuous, it creates an environment where conflict and violence are both natural and ongoing.

An attitude of humility is an antidote. It’s an antidote to gossip, back biting, injustice collecting, or what is referred to in football as piling on. In extreme cases we can put a person or a group into a virtual box. That becomes our definition of who they are. That often times defines them on a personal level. We are then able to add or subtract certain characteristics as we feel appropriate. This becomes the person’s or the group’s definition. The ability to sustain that identity rests on the observer’s ability to keep them “other.” If we get too close then the definitive lines begin to fade. We see that we have more in common than we thought.

I once heard a story that supplies an example of how we can error in our outlooks and attitudes toward others.

A young couple moved into a neighborhood.

Their next door neighbors were Don and Alice.

One morning as they were eating breakfast, Alice looked out her window seeing her young neighbor hanging out her wash to dry. She observed that her neighbor’s laundry wasn’t very clean.

Alice said to Don, “Our young neighbor doesn’t know how to clean her clothes.” Don, reading his

The Limits Of Protection Offered By Liability Insurance

■ BUSINESS LAW

By Tom Ramsey here is no doubt that a policy of liability insurance provides important protection against claims based on a rather broad spectrum of actions or omissions. However, as illustrated below, there are limits to such protection.

Over a 30-year span, Linda Reinoso and her husband, Edgar, owned and managed a significant number of apartment buildings. During that time, there was also a history of problems with governmental entities concerning the condition and operation of the buildings.

In May 2003, Linda and Edgar acquired a 48unit apartment complex in Lancaster, known as the J-3 Apartments. By the following September or October, the City of Lancaster issued a Notice of Code Enforcement Corrections with regard to the condition of the complex. The notice described general dilapidation of the units, infestation of insects, vermin and rodents, inadequate garage storage, lack of proper water and heat, and dampness of the apartment units.

By January 2005, the focus shifted to a civil action by the J-3 Apartments tenants against Linda, Edgar and their management company concerning habitability deficiencies. In this lawsuit, the tenants sought damages in excess of $10 million.

In response, Linda and Edgar tendered the defense of the tenants’ civil action to their insurer, Axis Surplus Insurance Company. Axis agreed to represent them, but under a reservation of rights.

This response by Axis allowed Axis to investigate

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(or even defend) the J-3 Apartments tenant claims to determine whether coverage applies (in whole or in part) without waiving its right to later deny coverage based on information revealed by its investigation. Subsequently, the J-3 Apartments tenant lawsuit was settled for just over $3,000,000.00, with Axis contributing $2,162,500.00 toward the settlement. Axis also footed the cost to defend the lawsuit.

Axis then initiated an action against Linda, Edgar and their management company to recover the $2,420,000.00 it spent to defend and settle the J-3 Apartments tenant lawsuit. At the trial of the Axis lawsuit, the evidence painted Edgar as the source of the problems with the J-3 Apartments.

The trial court found that Edgar was an involved and informed owner who insisted on managing the property in a manner that led to poor living conditions for its tenants. Although the evidence showed that Linda’s participation in the management of the J-3 Apartments was not at the level of Edgar’s, the trial court nevertheless found that Linda was more than a ministerial bill payer: She was not an innocent insured entitled to the benefits under the Axis insurance policies. The trial court awarded Axis most of its defense costs and settlement contribution. The judgment was against Linda, Edgar and their management company.

Linda appealed, claiming that she should not be liable at all, and certainly not jointly liable with the remaining defendants for the trial court’s judgment.

First, as to whether Linda was entitled to coverage under the Axis insurance policies: The Court of Appeal first stated the general rule that policy coverage for the consequences of accidents does not include coverage for intended, deliberate and anticipated consequences of acts. It determined that there was substantial evidence at trial that Linda, as a co-owner of the J-3 Apartments, knew of the conditions at the J-3 Apartments and how the apartments were being managed and thus

paper, didn’t say a word. This went on for some time and Alice observed the laundry from her kitchen window while making the same comment. Don as he had done each time before, didn’t say a word. Several weeks later, Alice, to her surprise, looked out the window and saw a fresh, clean row of wash hanging out drying.

Alice said, “Don, look! Our neighbor has finally learned how to clean her laundry. I wonder who taught her?” Don said, “Sweetie. I might have an answer. I got up early this morning and washed the windows.” Then Don said, “I guess we finally learned how to clean the windows.”

We all look out our own windows, and much of what we observe is reflected through our own looking glasses. How are your windows looking?

Edward Wallis Hoch said, There is so much good in the worst of us, And so much bad in the best of us, That it hardly becomes any of us, To talk about the rest of us.2 In other words, it would be wise to focus on our own windows before we worry about someone else’s dirty laundry.

Here’s an exercise: Let go of at least one judgment today. You can do this by converting it to the opinion or preference behind it, or even by letting go of defending it. If you like how it feels, let go of more.

Even letting go of just one judgment a day can lead to a tangible increase in your sense of happiness and well-being.

1

Barry Neil Kaufman, “Happiness Is A Choice”, Ballantine Books, 1994.

2Edward Wallis Hoch, Marion Record (Kansas).

17th Governor of Kansas.

(Mick Ukleja is the author of several books, a coach, keynote speaker and president of LeadershipTraq, a leadership consulting firm.

Check his blog at www.leadershiptraq.com.) expected the tenants to suffer injuries. Although her role was limited, she was involved in managing the apartments. She paid the bills for it. She was aware that Edgar had twice been prosecuted for and pleaded no contest to charges concerning deficiencies in other properties. Some five months after Linda and Edgar purchased the J-3 Apartments, she was aware that the City of Lancaster issued the Notice of Code Enforcement Corrections concerning substandard conditions of some of the units at the J-3 Apartments. Such evidence supports the trial court’s finding that Linda knew of the conditions and how the apartments were being managed. She was therefore not entitled to coverage under the Axis insurance policies.

Second, with regard to allocation of the Axis judgment: Although the trial court made no specific finding on the point, Linda concluded that the judgment was “joint and several “against her and Edgar. The practical effect of joint and several liability empowers Axis to try to collect its entire judgment against one, all or any combination of the defendants. If Axis were to single Linda out to collect its judgment, Linda could seek contribution from Edgar. Taking this tack would have no effect on the efforts of Axis to collect its judgment. Apparently Linda did not find this to be a practical solution. The Court of Appeal decided substantial evidence existed to support an implied finding of joint and several liability, notwithstanding the fact that the trial court did not make a specific finding on this point. It determined that there is no evidence that Linda’s liability should not be joint and several with Edgar. She was a co-owner of the property and she participated in its management.

In a footnote, the Court of Appeal noted that Linda and Edgar sold the J-3 Apartments for a profit of $3,800,000.00, “an amount that exceeded the settlement payment.”

The judgment of the trial court was affirmed.

The case is entitled Axis Surplus Insurance Company v. Reinoso. It was decided in 2012.

(Tom Ramsey is a Long Beach attorney who has specialized in business law for more than 41 years.

He may be reached at bizlawwiz@aol.com.)

Less Means More With Minimally Invasive Surgery hen it comes to surgery, physicians work with their patients to develop the most appropriate treatment plan to help get them back on their feet as fast as possible. invasive Minimally surgery is one option that results in less pain ■ HEALTHWISE and a quicker recovery

By Les Edrich, M.D. time compared to traditional surgical methods.

Minimally invasive surgery is available in a variety of medical specialties, including gynecology, surgical oncology, general surgery, cardiac surgery orthopedic, and other subspecialties. For patients, the benefits of minimally invasive surgery are numerous, including the elimination of a large incision. The precise movements result in smaller incisions, which means less scarring, less pain, shorter hospital stays and a quicker recovery compared to traditional surgery.

Whether it is robotic-assisted surgery, laparoscopic surgery or thoracoscopic surgery, surgeons are equipped with the latest technology and training to provide optimal care tailored to each patient.

Robotic-Assisted Surgery Using robotic-assisted surgery, surgeons have improved visualization, dexterity, precision and control, while only making small 1 - 2 cm incisions. Controlled by the surgeon, and assisted by a highly trained surgical team, each movement of the surgeon’s hands is translated into precise, real-time movements by the robot. Exact precision is possible because of the robot’s “wrists,” which provide surgeons with natural dexterity and a range of motion far greater than even the human hand. Surgeons are able to perform smaller incisions to reach often hard-to-access areas of the body.

Additionally, the robot’s viewing system produces high-definition, 3-D images, allowing the surgeon to see inside the patient in unprecedented detail.

Laparoscopic Surgery Laparoscopic surgery is available for a number of surgical procedures. During endoscopic or laparoscopic surgery, small incisions are made for an endoscope or laparoscope (a tiny camera connected to a video cord) and surgical tools to be inserted into the body, like the abdomen or pelvic region. By watching a monitor, the surgeon is able to see inside the body to perform the surgery.

Thoracoscopic Surgery Thoracoscopic surgery is a technique used to diagnose and treat problems in a patient’s chest.

Through small incisions, surgeons insert a thoracoscope (a tiny video camera connected to a video cord) and surgical tools into the patient’s chest. By watching a monitor, the surgeon is able to see inside the body to perform the surgery.

What Minimally Invasive Surgery is Right for You? What type of surgery – traditional, laparoscopic or robotic – depends on a patient's particular condition, general health and physician recommendation. Your physician and surgeon will work with you to determine the best treatment options to fit your unique health care needs.

(Les Edrich, M.D., is the medical director of the minimally invasive and robotic surgery program at Long Beach Memorial.)

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PERSPECTIVE June 24-July 7, 2014

Long Beach Business Journal 23

Shared Responsibility Mortgages – Can They Work?

■ REALTY VIEWS

By Terry Ross ith housing decidedly in a stagnant state during this spring-summer selling season, and economists predicting more of the same for the foreseeable future, it is no wonder in some circles we are seeing “outside of the box” ideas being offered to try and rekindle the robust housing market that helped fuel the economy prior to 2008.

A recent Wells Fargo Economics Group report, Housing Chartbook, doesn’t paint a picture of a housing market that is going to blossom on the current path anytime soon. It noted that most markets in the US are “wildly out of balance” from inflated home prices driven by investor purchases last year, as well as exceptionally tight inventories that are well ahead of any improvement in demand.

The report adds that the “lack of a rebound in home sales this spring has reinforced our view that there was more than harsh winter weather behind the recent slide in home sales and mortgage applications,” and that the road to housing recovery will be longer – and much bumpier – than earlier expected.

The Economics Group commented that a 70-basis point rise in mortgage rates coupled with a 6.2 percent rise in prices resulted in a 17.1 percent

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jump in monthly principal and interest payments for new owners.

Consumer confidence in purchasing a new home within six months fell in May to 4.9 percent, below the 12month moving average of 5.7 percent.

Overall economic growth will also hamper housing growth, according to the group from Wells Fargo. Real Gross Domestic Production is expected to rise just 2.0 percent in 2014, with new home sales and single-family housing starts expected to rise much more slowly than that. The group forecasts that new home sales will climb 8.4 percent to 465,000 units, while single-family housing starts will climb 10.9 percent. New home prices will moderate, rising just 2.6 percent to $276,000 in 2014.

The question becomes what can be done under these circumstances to recharge the housing market. In a new book, House of Debt: How They (and You) Caused the Great Recession, and How We Can Prevent It From Happening Again, authors Atif Mian and Amir Sufi take a 36-year old thesis by long-time Massachusetts Institute of Technology economist Charles Kindleberger and combine it with another idea that is not exactly new, to present an interesting concept in these days of an unsettled economy.

According to Kindleberger, an economic (or housing) bubble can’t exist without massive debt, and his 1978 work – Manias, Panics, and Crashes: A History of Financial Crises – dissected famous economic disasters through history. Before he died at the age of 92 in 2003, Kindleberger was fearful of a bubble in the housing market, according to a 2002 Wall Street Journal pro-

Sustainable Freight?

■ TRADE AND TRANSPORTATION

By Tom O’Brien he Long Beach Board of Harbor Commissioners preliminarily approved two incentive programs designed to bring cargo to the port by helping to reduce the cost of complying with environmental measures.

The first of the two programs waives dockage fees for ships that reduce speeds as they approach the ports and use shoreside power or other pollution-cutting technologies at berth.

The second program will offer a $5per-container incentive for cargo that travels by on-dock rail – and not truck – from the port.

The local ports have taken the lead in developing programs like these that accommodate growth in trade while addressing the impacts of freight on local communities. They have to in order to remain competitive but still secure their “social license” to operate from elected officials and the public. As a result, the ports have found a way to gain some credibility in a discussion of sustainable growth.

Too often however, the sustainabil-

T

ity movement excludes freight from the planning process. The problem is that this may actually make creating livable and sustainable communities more difficult. Like other uses that are considered to be integral to sustainable living (including open space, quality residential environments and transit), freight needs dedicated urban spaces, like those for loading and unloading, to avoid negatively impacting the quality of life for residents and businesses alike.

Early in his first administration, President Obama developed a sustainability model that tied infrastructure investments, especially transportation investments, to housing, land use and the environment. The model came with a set of livability principles to guide federal funding programs, policies, and legislation.

The principles include enhancing economic competitiveness and making targeted investments that build upon strategies like transit-oriented development, mixed-use developments and land recycling. Neither principle references the need to increase capacity for freight movements. Similarly, smart growth principles have coalesced around mixed use development, compact building design, walkable communities, preservation of open space, and public transit but without addressing that role that freight plays in providing the goods and services that help to make

file of the economist.

Mian and Sufi take this premise that economic disasters are almost always preceded by a large increase in household debt and, to prevent the next disaster, say society should change the terms of debt contracts to make them more flexible – hence less harmful than the $10 trillion in U.S. home equity that was lost during the Great Recession.

Their idea of a Shared Responsibility Mortgage program where both the homeowner/borrower and lender share the risk and profits of a volatile housing market is bold, but has elements of shared equity and investor programs that have been tried or available for many years on a very limited basis.

What they are advocating is something on a larger, mainstream scale that would cut the risk for the borrower while sharing some of the appreciation (or deflation) with lenders.

“Had such mortgages been in place when house prices collapsed, the Great Recession in the United States would not have been ‘Great’ at all,” Mian and Sufi argue. “It would have been a garden variety downturn with many fewer jobs lost.”

Although this idea probably makes too much sense for regulators and is certainly being looked at as far-out by many observers, it does have merit.

This is one scenario on how it could work: If an index of home prices in a home’s ZIP code fell, say, 30 percent, then the borrower’s monthly payment of principal and interest would also fall 30 percent. That’s not achieved by stretching out the length of the loan; the mortgage would still get paid off over 30 years. Financially speaking, it would be equivalent to getting a

reduction in principal.

If prices recover, payments go back up, but never above the original amount. Lenders would ordinarily charge a higher rate for that protection, but Mian and Sufi calculate that they would be willing to forgo a bump on the rate if they were given some upside potential: five percent of any capital gain the homeowner gets upon selling or refinancing the house.

It would, some economists say, mostly end foreclosures, which devastate poor neighborhoods. Families lose their home when the price they can get for it is lower than what it would cost to pay off the mortgage. With a sharedresponsibility mortgage, when the value of the house goes down, so does the cost of paying off the mortgage.

The reason: The loan’s worth becomes less to the lender. Imagine that a home’s price goes down 30 percent and the payment automatically goes down by the same amount. Then a banker who was owed $100,000 will accept $70,000 for a loan payoff.

Reducing foreclosures in this way benefits the entire neighborhood since foreclosed houses bring down surrounding property values.

One of the advantages of a sharedresponsibility mortgage is that it makes those painful but essential write downs of principle automatic and part of the original contract, which would lead to a huge streamlining for the mortgage industry. It is certainly an idea worth looking at.

(Terry Ross, the broker-owner of TR Properties, will answer any questions about today’s real estate market. Email questions to Realty Views at terryross1@cs.com or call 949/457-4922.)

a community livable in the first place.

At the state level, Senate Bill (SB) 375 requires California’s 18 metropolitan planning organizations to align regional transportation, housing and land use plans and to prepare a Sustainable Communities Strategy (SCS) to reduce the amount of vehicle miles travelled in the region.

While SB 375 does not target the trade and transportation sector, the impact on goods movement is great.

Like the national livability and sustainability principles, at the more local level where the SCS is developed, freight is rarely part of the vocabulary of urban sustainability. It should be. Compact building design and a concentration of activity generate freight and pedestrian conflicts, slow the movement of freight, and result in congestion, pollution, noise, excess energy consumption, and greater accident risks for pedestrians, bicyclists and passenger cars. Smart growth may also require more frequent and concentrated deliveries and pickups. Denser urban environments like those considered desirable in newly revitalized urban cores also generate significant trips tied to service delivery (trash pickup, maintenance services, etc.) but with limited parking and loading facilities and competition for scarce road, curb and sidewalk space. When cities respond by limiting truck size or access, it in turn impedes freight movements.

Toolkits for sustainable development also rarely incorporate freight.

In fact, traffic calming solutions like roundabouts and pedestrian-friendly environments with limited (or prohibited) vehicle access actually constrain freight movements or displace traffic to other and in some cases less direct and efficient routes. Inadequate loading and parking facilities result in illegal double parking which in turn increases local street congestion and increases travel times for both passenger vehicles and trucks.

Zoning and planning standards for new residential and commercial developments may provide an opportunity to create new parking and loading spaces that accommodate freight.

But redevelopments or infill developments may, on the other hand, create new problems. In infill developments where freight-related land uses such as warehouses and railyards already exist, the implementation of a desired smart growth or sustainable plan can cause encroachment on freight land uses and introduce new conflicts where none existed.

The problems are challenging but not intractable. As the ports – and their supply chain partners – have proven, it’s possible to move goods in an environmentally sustainable manner. But it first requires accepting the notion that freight is part of the solution.

(Dr. Thomas O’Brien is the interim executive director of the Center for International Trade and Transportation at CSULB and an associate director for the METRANS Transportation Center, a partnership of USC and CSULB.)

Vol. XXVII No. 12 June 24-July 7, 2014 EDITOR & PUBLISHER George Economides SALES & MARKETING EXECUTIVE Michael Watkins SALES & MARKETING ASSISTANT Heather Dann DISTRIBUTION Conrad Riley EDITORIAL DEPARTMENT STAFF WRITERS Brandon Ferguson Samantha Mehlinger CONTRIBUTING WRITER Michael Gougis PHOTOJOURNALIST Thomas McConville COPY EDITOR Lindsay Christopher The Long Beach Business Journal is a publication

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