Issuu on Google+

1_LBBJ_Mar18_SectionA_LBBJ MASTER LAYOUT 3/17/14 3:27 PM Page 1

Health Wise

ege The Coll s es Of Busin ion tra t Adminis B At CSUL ss

Electron ic Medical R e co r d s – Take Co ntrol Of Your Health Section

ll Busine 2014 Sma s Index on Expectati e 4 See Pag

B – Page

POLITICALWIRE

James Johnson Misleading Voters In Effort To Win City Attorney Post ■ By GEORGE ECONOMIDES, Publisher’s Perspective he mailer to voters showed a T smiling picture of James Johnson’s opponent for city attorney with the words: “You would be smiling too if you had a $259,240 yearly pension at taxpayers’ expense. . . . City Hall Insider Charlie Parkin Profiting at Our Expense.” What voters were not told is that Johnson, a councilmember, voted for a pay increase for Parkin, which Johnson knew would automatically trigger an increase in the pension cost. It was a cheesy, below-the-belt tactic being employed by a desperate candidate who realizes he can(Please Continue To Page 20)

Focus On Nonprofit Sector See Pages 23-31

Women In Business See Section B

Future Of Transit’s Bus Project With BYD Uncertain ■ By SAMANTHA MEHLINGER Staff Writer he Federal Transit T Administration (FTA) has confirmed its position that Long Beach Transit’s contract with

Hotel Ownership Won’t Accept Further Delay On Mixed-Use Project Coastal Commission Chair Kinsey Says Group ‘Doesn’t Look Favorably To Threats’ ■ By TIFFANY L. RIDER Editor ilversands Property USA, S owner of the property at 2010 E. Ocean Blvd., is moving forward with a previously entitled design for a new mixed-use project unless the California Coastal Commission schedules a hearing for April to discuss a modified design. The project, located in the

February 2008, an agreement IthenwasChamp finally reached to merge Car Series with the

to build 10 zero-emission buses for Long Beach Transit. The December letter, penned by Linda Ford, director of the FTA’s office of civil rights, said that BYD’s DBE “certifications were false” when BYD was awarded the contract last year. (Please Continue To Page 12)

Where Do They Stand? 16 Of 19 City Council Candidates Respond To Business Journal Questionnaire ■ By GEORGE ECONOMIDES, Publisher effort to provide voters a better understanding of where city council candidates stand on a variety IAprilofn anissues impacting Long Beach, the Business Journal sent a questionnaire to all 19 individuals on the 8 ballot. The e-mail addresses on file with the city clerk’s office, supplied by the candidates, were used. Responses were received from 16 of the 19 candidates by the March 7 deadline. Below are the combined votes of the 16 candidates (to read their individual responses, answers to three additional questions and other data, see Pages 16 to 19). In fairness to the candidates, they deserve a little wiggle room since they were not allowed to explain their answers, nor did they have the benefit of a staff report or public input. But responses do provide readers a glimpse into their thinking. Remember, five of the candidates will be first-time members of the city council in mid July and may be casting votes on these or related issues. Questions

Yes

Leaning Yes

Leaning No

No

• Do you favor increasing the minimum wage for restaurant workers to anywhere from $11 to $13 an hour?

3

3

4

6

1

10

4

1

5

7

2

2

• In order to attract more businesses to Long Beach, would you support suspending the business license fee during a new business’ first two years of operation?

11

4

0

1

• The city’s economic development bureau was eliminated several years ago. Do you support reestablishing the bureau with a charge of attracting and retaining business?

15

0

1

0

• Assuming funding is available, would you support increasing the size of the Long Beach Convention Center to accommodate larger conventions?

10

6

0

0

• Would you support hiring an arts advocate to work from the city manager’s or the mayor’s office to serve as a voice for the arts community?

3

8

2

3

• The city currently allocates roughly $375,000 from the General Fund budget for the Long Beach Arts Council. Would you support increasing that amount to $700,000?

1

7

5

3

• The noise ordinance for the Long Beach Airport allows for a minimum of 41 daily commercial flights. If noise was reduced due to the development of quieter aircraft, would you support an increase in daily flights?

3

3

4

6

• Currently, the city attorney is an elected position. Would you support the position being an appointment by the city council, similar to the city clerk’s position?

2

4

4

6

• Do you support eliminating the Long Beach breakwater?

2

8

4

2

• If elected, would you make your appointment calendar available online for all to see?

15

1

0

0

PRSRT STD U.S. POSTAGE

• Do you feel the city council did the right thing in suing the City of Los Angeles over the proposed BNSF railway project?

7

5

2

2

PAID

• Do you support allowing marijuana businesses to operate in Long Beach?

2

10

2

2

• Do you support contracting out more city services if it is proven to save the city money and the service is equal to or better than that provided by city staff?

5

5

4

2

4 4

5 1

5 6

2 5

12

3

1

0

(Please Continue To Page 14)

Indy Racing League. The ongoing drama was over and the long and storied history of Champ Car racing was to become, officially, part of the IRL. Remaining Champ Car teams such as Newman/Haas Racing, Dale Coyne Racing and Conquest Racing were set to transition to the IRL for the new season and series. Kevin Kalkhoven’s PKV Racing Team, co-owned by 1996

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

FTA indicated that BYD was ineligible for the Transit Investments for the Greenhouse Gas and Energy Reduction (TIGGER) grant because it had not demonstrated that it complied with federal Disadvantaged Business Enterprise (DBE) requirement at the time it was awarded a contract

• Do you support developing a new Long Beach Civic Center?

2008-13: Detente, Then Full Speed Ahead!

■ By GORDON MORRIS, Staff Writer, Grand Prix Association of Long Beach

Chinese-based bus manufacturer Build Your Dreams (BYD) BYD is ineligible for FTA funding and that the transit company must either pay for the multi-million dollar project on its own or rebid. In letters dated November and December of 2013 and made public by the FTA two weeks ago,

• Do you support including the harbor department headquarters as part of a new Long Beach Civic Center?

LAST IN A SIX-PART SERIES

(Publisher’s note: To mark April’s 40th Toyota Grand Prix of Long Beach, the Business Journal has teamed up with the Grand Prix Association of Long Beach to present a series of articles highlighting America’s #1 street race.)

14

lbbusinessjournal.com

March 18-31, 2014

(Please Continue To Page 22)

Long Beach, CA PERMIT NO. 254

• Do you believe Long Beach needs to develop more low-income housing? • Do you believe Long Beach needs more homeless shelters? • The headline from the Long Beach Police Department read: “2013 crime statistics show lowest reported violent crimes in 41 years.” Does Long Beach need to hire more police officers?


1_LBBJ_Mar18_SectionA_LBBJ MASTER LAYOUT 3/16/14 8:02 PM Page 2

INSIDE THIS ISSUE 2 Long Beach Business Journal

March 18-31, 2014

3 Newswatch • Budget Forecast Predicts CalPERS Costs To Nearly Double • Long Beach City Hall News In Brief • Assemblyman Introduces Bill On SCIG Project • City National Bank Debuts New Branch Building

16 PoliticalWire • Long Beach City Council Candidates Answer Questions • PoliticalWire News/Events – And Political Mailers

22 Grand Prix Highlights • Last In A Six-Part Series Leading Up To April’s Race

23 Focus On The Nonprofit Sector • Nonprofits Increase Volunteer Base Through Engagement, Meaningful Experience • Social Impact Partnership Bill Would Require Participating Nonprofits To Receive “Pay For Success” • Legislation Would Shine Light On Nonprofit “Dark Money”

Section B Women In Business • Women-Owned Business Grew And Strengthened In 2013 • As Women-Owned Firms Grow, Long Beach Women Team Up In Business – Profiles On Eight Women Partners • Six Long Beach Waitresses Loving Their Work And Bonding With The Community

12 Encore – People In The News 14 Perspective Realty Views Second Mortgages Making A Comeback – For Now By Terry Ross Effective Leadership Who Is Your COO? (Chief Caring Officer) By Mick Ukleja HealthWise Electronic Medical Records – Take Control Of Your Health By Dr. Susan Melvin Third Sector Report Lobbying Vs. Advertising: It’s Time To Wrestle With The Truth By Jeffrey Wilcox Trade And Transportation Creating A Border Environment That Welcomes Trade By Tom O’Brien

GET ALL THREE FOR FREE . . .

DIGITAL DIGIT TAL

edition

W WWW.LBBUSINESSJOURNAL.COM WW.LBBUSINESSJOURNAL.COM


1_LBBJ_Mar18_SectionA_LBBJ MASTER LAYOUT 3/16/14 8:02 PM Page 3

NEWSWATCH March 18-31, 2014

Long Beach Business Journal 3

Budget Forecast Predicts City’s CalPERS Costs To Nearly Double By 2021 ■ By SAMANTHA MEHLINGER Staff Writer The ongoing cost for the city’s participation in the California Public Employees Retirement System (CalPERS) is expected to nearly double by 2021 due to new regulations adopted by the CalPERS board in February. In a presentation to the Long Beach City Council at a special meeting last week, Long Beach Director of Finance John Gross reported that from fiscal year (FY) 2015 to FY 2021, CalPERS costs are increasing from 16.3 percent to 29 percent of payroll for miscellaneous employees and from 24.1 percent to 45.7 percent for safety employees. The annual CalPERS cost to the General Fund is increasing from $4.6 million in FY 2016 to $35.6 million in FY 2021 due to changes in CalPERS’ smoothing and mortality assumption policies. Costs incurred due to changes in CalPERS’ smoothing policy, which is meant to balance the rate of impact on investment gains and losses by CalPERS, amount to $4.6 million in FY 2016 and $4.5 million per year, cumulative, for the following four years. The mortality assumption rate increases, which, Gross explained, were altered because people are living longer and, as such, are making pen-

sions higher, start in FY 2017. Costs amount to $3.9 million in FY 2017 and $2.4 million per year, also cumulative, for the following four years. The $35.6 million impact to the General Fund is equivalent to 19 percent of the police department’s budget or 86 percent of the combined budgets of the library department and parks, recreation and marine department, according to Gross. While the city budget should remain stable in FY 2015, a shortfall of $1.2 million is estimated for FY 2016 and a projected $8.5 million deficit by FY 2017, Gross said. Following the presentation, Mayor Bob Foster remarked, “What this is going to mean is we are going to have in the not too distant future a structural increase of our budget to some $30 million or $35 million a year.” He added, “I urge us to start dealing with that now.” Foster said that “as difficult as this pill is to swallow,” he believed CalPERS was doing the right thing and that the only way to deal with this is internally. “You hear a lot of noise out there in the public that ‘We don’t have a pension problem, we have an economy problem.’ You couldn’t have a robust enough economy to deal with this. This is a pension problem. (Please Continue To Page 4)


1_LBBJ_Mar18_SectionA_LBBJ MASTER LAYOUT 3/16/14 8:02 PM Page 4

NEWSWATCH 4 Long Beach Business Journal

March 18-31, 2014

Budget Forecast (Continued From Page 3)

2014 Small Business Expectations Index The CSULB-CBA Long Beach Small Business Monitor is a quarterly survey that provides an understanding of the expectations and challenges of Long Beach small businesses. The Survey Series is sponsored by the College of Business Administration and supported by community businesses and organizations. Since small businesses are an important part of our local economy, this survey helps gauge the health and trends of this business segment. By Dr. Scott Flexo, Currently, Long Adjunct Professor of Marketing, CSULB Beach small business owners and managers report positive expectations for the coming year. The Expectations Index Score, an aggregate measure of expectations for growth in sales and profits, hiring, capital expenditures, and consumer demand, is higher now compared to previous years. Four in 10 LB small businesses say they plan to increase capital spending on new equipment and technologies in the coming year, a significant increase over last year and further indication of optimism heading into 2014. Sixty percent (60%) of small businesses in Long Beach expect an increase in sales/revenues in 2014, and half (51%) anticipate gains in profits in the coming year. There is little indication of a trend toward downsizing, with 31% of respondents reporting they will hire more people, and only 7% saying they expect to let people go in 2014. There are important differences between micro and larger small businesses. Micro small businesses with less than 5 employees are optimistic about gains in sales and profits during the coming year. Yet, many of the smallest businesses report they will take expected new revenues as profits rather than investing back into their businesses. This is not the case with small businesses of 5 to 50 employees. Though about 6 in 10 (59%) anticipate an increase in sales/revenue in 2014, many of these small business owners and managers say they plan to increase spending on capital equipment, marketing and advertising, and hiring more people in the coming year. And, three in ten (29%) plan on increasing their use of credit and financing to further expand their businesses in 2014. More than 100 Long Beach small business owners, managers and supervisors participated in this year’s survey. More information on this report and access to past surveys can be found online at www.csulb.edu/colleges/cba/lbsbm. (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.) ■

Everyone is going to have to do more on their pensions.” As part of the presentation, the city manager requested that all departments maintain the services currently being provided, but to find other areas where efficiencies and cost reductions may be implemented. Because city expenses are growing faster than revenues, Gross said, “We must have an increased revenue growth or decrease our expenditure growth.” District Fifth Councilmember Gerrie Schipske suggested, “We need to look carefully at sick leave, the health care subsidy and workers’ comp to see if we can save money in those categories,” which respectively Increases to the city’s General Fund expenses for CalPERS take effect starting in fiscal year 2016 with annual, amount to $119 million, $220 cumulative investment fund smoothing costs. Another annual, cumulative cost hike starts in fiscal year 2017 million and $111 million of the due to mortality assumption changes. By 2021, today’s $40.4 million price tag is expected to increase to city’s current $1.393 billion $76.7 million. (Chart courtesy of the City of Long Beach) unfunded liability. The remainknew the city could not afford them and A memorandum of understanding (MOU) der is attributed to CalPERS. that “significant pension increases were with the International Association of In a later interview with the Business on the horizon.” He added, Machinists and Aerospace Workers Journal, 3rd District Councilmember “Unfortunately, it turns out that I was cor- (IAM) expires in October, Gross later told Gary DeLong indicated that the city has rect” about these increases. the Business Journal. IAM represents not done enough to address rising penDeLong was critical of the city’s bar- about 3,500 city employees, according to sion costs. “The pension reform the city gaining efforts with city employee the Local Lodge 1930 website. put in place over the past several years groups. “They say, ‘We’ll get it next “City staff are reviewing the MOU really only impacted future employees. It time.’ Well, next time, we won’t have any- terms in detail to prepare for the upcomdid very little to impact the pension costs thing to give,” he said. “So now you’re ing negotiations,” Gross stated. “We have of existing employees,” he said. asking for stuff when you have very little not yet set a specific date to begin the disHe emphasized that he voted against to offer in return. That’s a terrible negoti- cussion with the city council.” ■ 15 percent pay raises recently given to ating strategy. – Editor Tiffany L. Rider contributed to this article various city employee groups because he And more negotiating is on the horizon.

Thumbs Up For Atlantic Avenue Street Improvement Project As It Gets Underway Ninth District Councilmember Steven Neal (left in inset photograph) and 8th District Councilmember Al Austin hosted a kick-off event on March 14 for the Atlantic Avenue Street Improvement Project. Planned improvements on Atlantic Avenue from 52nd Street to North Atlantic Place include creating cement concrete curbs, gutters and sidewalks, rehabilitating asphalt concrete pavement and installing pavement markers and striping. The asphalt being used for street resurfacing contains 15 percent recycled materials, according to a statement from the city. New storm water catch basins with screens to prevent trash from entering storm drains are also being installed. Additionally, new medians are being added and existing medians are being repaired. “We’re working hard to maintain and improve our streets and sidewalks,” Mayor Bob Foster said in a statement. Neal noted: “This project transforms the business environment and will have ripple effects on everyone in the area,” Austin stated, “I am pleased that we are moving forward on this significant project . . . Good streets are good for residents, businesses and the entire community.” (Photographs by the Business Journal’s Thomas McConville)


1_LBBJ_Mar18_SectionA_LBBJ MASTER LAYOUT 3/16/14 8:03 PM Page 5

NEWSWATCH March 18-31, 2014

Long Beach City Hall News In Brief ■ By SAMANTHA MEHLINGER Staff Writer Adaptive Reuse Ordinance – The Long Beach City Council unanimously approved a city ordinance meant to promote the adaptive reuse of buildings. Adaptive reuse involves rehabilitating an existing building from one use to another – for example, from commercial to residential use. The ordinance provides a clear process for developers to pursue adaptive reuse projects and eases certain development standards to make those projects easier to pursue. For instance, the ordinance is more lenient on the number of parking spaces required for adaptive reuse projects than for brand new buildings. The council also voted to submit the ordinance to the California Coastal Commission for its review and certification. Alamitos Bay Rebuild Issues – Councilmembers Gary DeLong, 3rd District, and Suja Lowenthal, 2nd District, brought an item to council on March 4 requesting that the city manager return in 30 days with a status update and plan of action for completing the Alamitos Bay Marina Rebuild Project. Currently, three of seven basins within the project have been finished. The city manager indicated that city staff have not come up with a plan

Long Beach Business Journal 5 to move forward on the other basins yet because they have not identified funding. “For months now, I have been hearing that staff was looking at it . . . but I know I haven’t seen a plan yet,” DeLong said. He read aloud comments from citizens pleading that the docks at Alamitos Bay be fixed because they are hazardous and are causing injuries. DeLong explained that not moving forward with the remainder of the project now would result in demobilization and remobilization costs from the contractor of about $640,000. Costs amounting to $19.2 million could be incurred by not using an existing contract for dredging, according to the memorandum he and Lowenthal brought to council. “We want to make it clear to boat owners and city council that we are coming up with a plan to take care of dredging,” City Manager Pat West said at the meeting. DeLong later expressed to the Business Journal that city staff should have identified funding to retain the project contractor months ago and that the Washington state-based construction company is likely to leave by the end of the month. Review Of Marina Fund Expenses – DeLong and Lowenthal are bringing an item forward at tonight’s meeting requesting that the city auditor perform an independent review of the Marina Fund, Tidelands Operating Fund and Rainbow Harbor Fund. The memorandum from the councilmembers explains that the Marina Fund may be subsidizing the Tidelands (Please Continue To Page 6)

Debbie’s Café

cronuts | breakfast | soups | salads | sandwiches protein shots | real fruit smoothies | kale drinks

Lunch specials

West Coast Sandwich – ¼ lb. East Coast Sandwich – ½ lb.

London Brail Roast Beef, Capocollo Italian, Italian Meatball sub, Turkey, Tuna.

Drop in your business card for a free lunch – drawing every day at 11:45

Ask for your punch card!

Bring in this ad for: Free drink with Lunch Special purchase

Free ½ sandwich with purchase of East or West coast sandwich

Buy one get one free smoothie for the month of March 2014

100 Oceangate

(562)590-7177

Free Delivery

at the corner of Magnolia & Ocean (next to 24 Hr. Fitness)

pre-order by phone!

($10 minimum order)


1_LBBJ_Mar18_SectionA_LBBJ MASTER LAYOUT 3/16/14 8:32 PM Page 6

NEWSWATCH 6 Long Beach Business Journal

City Hall News (Continued From Page 5)

Ductile Iron Pipe Resilient Seated Gate Valves Underwriting Services

WD-10-14 WD-11-14 RFQ FM14-026

3/26/14 3/27/14 4/1/14

UPCOMING BID OPPORTUNITIES Historical Preservation Services Custodial Services Disposal Services Psychological Evaluation Services Physician Support Services Chemical Toilets Polygraph Services Design-Build Services Range Targeting System Risers and Fittings Tape Products Lumber Welding Services Slurry Ready-Mix LED Traffic Signals Boat Repair Bidder Registration Register with the City of Long Beach at www.longbeach.gov/purchasing to receive notifications of bid opportunities. Additional details on upcoming bids and how to register can be found on the website. Small Business Enterprise Program Take advantage of the City of Long Beach Small Business Enterprise (SBE) Program. To learn more about becoming a part of the SBE Program and certification process, visit the City’s Purchasing website. HUD Section 3 Program The City of Long Beach Section 3 Program provides economic and employment opportunities to low-income residents and businesses. More information is located on the City’s Purchasing website.

www.longbeach.gov/purchasing

www.longbeach.gov/pw/towing/auction.asp

Operating Fund by about $895,000 annually. One city document indicates that the Marina Fund should only be subsidizing Tidelands by about $195,000, while a conflicting document estimated $293,000 annually. DeLong and Lowenthal are proposing that the city auditor review how many funds are being transferred and determine if money should be transferred from the Tidelands Fund to the Marina Fund to compensate for the subsidizing that has occurred in previous years. Downtown Dining Ordinance Amendment – At the March 4 meeting, the city council unanimously approved a request for the city attorney to draft an amendment to the Downtown Dining and Entertainment District ordinance that allows entertainment on rooftop patios within the district during specific hours. The report for the amendment, brought to council by Lowenthal, indicated that the amendment is intended to allow BO-beau kitchen + rooftop, a new restaurant on Pine Avenue, to have entertainment on its rooftop patio. The amendment allows rooftop entertainment until 10 p.m. on Sundays, until midnight Mondays through Wednesdays and until 1 a.m. Thursdays through Saturdays. Tonight, March 18, the council votes on the amendment prepared by the city attorney. Pacific Gateway Lease – The city council on March 4 approved changes to a lease for the continued operation of the Pacific

March 18-31, 2014 Gateway Workforce Investment Network’s Harbor WorkSource Center at 1851 N. Gaffey St., San Pedro. The California Employment Development Department terminated a sublease at that office last June. The lease space has been reduced by 1,327 square feet and the rent has been reduced by $7,011 per month. The city is recouping about 50 percent of rent costs through subleases. Impact Fee Reports – The city council received a report on March 11 on impact fees imposed by the city to accommodate the needs of new residents and businesses and to offset the impact of new development. The fees include the transportation improvement fee, the parks and recreation facilities fee, the fire facilities fee and the police facilities fee. Impact fee revenue in fiscal year (FY) 2013 was $513,529, according to a staff report, and impact fee expenditures totaled $2,581,711 in the same year. The report indicated “the city spent more on projects than it collected in FY 2013 by drawing down fund balance built up over multiple years of collecting impact fees.” Watershed Management Programs – On March 11, the city council directed the city manager to approve three memoranda of understanding with the Los Angeles Gateway Regional Water Management Joint Powers Authority to develop management programs for regional watersheds. The City of Long Beach shares the cost of managing these watersheds with other regional cities and its FY 2014 cost is $428,700, while its FY 2015 cost is $188,730. $6 Million In Civil Engineering Contracts – Tonight, the council votes on three-year agreements with six firms for on-call civil engineering design services for a total of $6 million. According to a staff report, this figure is currently based on “appropriated and anticipated projects,” and any future unbudgeted work will be brought to city council for approval. RDA Long-Range Management Plan – Mike Conway, the city’s director of business and property development, told the Business Journal that the state has acknowledged that it received the city’s long-range management plan for former Long Beach Redevelopment Agency (RDA) properties. Amy Bodek, director of Long Beach Development Services (LBDS), said that the state estimates the review of the plan could take “at least a couple of months.” SEADIP Advisory Committee Meeting – The first meeting of the Southeast Area Specific Plan Community Advisory Committee, formed to help oversee a threeyear review process to update the Southeast Area Development and Improvement Plan (SEADIP), is March 26 at 6:30 p.m. in the Best Western Golden Sails Hotel’s Seafarer Room, 6285 E. Pacific Coast Hwy. The public is invited to attend. For more information, contact Brant Birkeland at 562/570-6922 or Brant.Birkeland@longbeach.gov. More information about the SEADIP update is available at www.lbds.info/seadip_update. Civic Center Presentation – The Downtown Residential Council’s free March forum event on March 17 at 7 p.m. at The Reef Restaurant, 880 Harbor Scenic Dr., features a presentation on the proposed Civic Center project by Bodek of LBDS. For more information, visit http://www.longbeachdrc.com.


1_LBBJ_Mar18_SectionA_LBBJ MASTER LAYOUT 3/16/14 8:03 PM Page 7

NEWSWATCH March 18-31, 2014

Long Beach Business Journal 7

Councilmember Patrick O’Donnell Recognized Patrick O’Donnell, Long Beach’s 4th District councilmember and a member of the Emerald Society, was named Irish American Public Servant of the Year 2014 by the Irish Fair Foundation. O’Donnell was recognized March 14 during the Los Angeles City Council’s Irish Day Civic Ceremony at Los Angeles City Hall. O’Donnell, left, is pictured at the ceremony with Fionnula Flanagan, named 2014 Actor of the Year, and Tom Keleher, president of the Los Angeles Police Emerald Society. The Irish Fair Foundation is “dedicated to preserving and promoting Irish and Irish-American culture in the Southern California Area.”

Port Electric Rates Reduced For Next 24 Years – The Long Beach Harbor Department announced on March 13 the California Public Utilities Commission agreed to reduce electric rates at the Port of Long Beach for the next 24 years and also approved a program for Southern California Edison “to install major electric infrastructure at no cost to the port or its tenants, so that the port and its tenants can proceed with critical electrification and environmental improvement projects.” The announcement went on to say, “The new rates and electric infrastructure are the result of an intensive effort by the Long Beach Board of Harbor Commissioners, its Harbor Department staff and City Attorney Charles Parkin, in coordination with Mayor Bob Foster, to win support for electrifying more Port operations to improve air quality and increase productivity.” 8th District News – On March 22, an e-

waste drive and shredding event takes place from 9 a.m. to 2 p.m. at the Long Beach Police Department’s North Patrol Division, 4891 Atlantic Ave. Shredding services are available until noon. For more information, call 562/570-1326. • Congressman Alan Lowenthal hosts a community coffee event from 9:30-11 a.m. at the Expo Arts Center, 4321 Atlantic Ave., to discuss issues facing the community and country. RSVP to 562/436-3828. • 8th District Councilmember Al Austin’s Celebrate the Eighth Event, held March 6 attracted 200 people, according to Austin’s office. Highlights of the year given by Austin included open hours at the North Patrol Division, a gun buy back event, summer programs at local parks, a baseball league for 18 to 25 year olds, street repairs, community events and business corridor improvement. ■

CHOOSE YOUR PATH TO FITNESS... KEEPING LONG BEACH FIT SINCE 2001

Ultimate Fitness Challenge (UFC) Is Back! ASK US ABOUT OUR

BIKINI BODY CLINIC ALSO STARTING ON MARCH 24TH

Sign up now for an intense, 8-week program to increase your fitness level and get in shape for summer! UFC runs from March 24 – May 15: ÷ Monday-Thursday with optional weekend add-ons. ÷ Teams are forming for 6am, 7am, 8am and 7:30pm. ÷ Only eight people per team, so call now to secure your spot! Contact John Garey Fitness & Pilates for more details at

JOIN TODAY

JOHN GAREY FITNESS & PILATES

www.johngareyfitness.com

(562) 598-8585 6547 E. Pacific Coast Hwy. In the Marketplace Shopping Center Long Beach, CA 90803


1_LBBJ_Mar18_SectionA_LBBJ MASTER LAYOUT 3/16/14 8:03 PM Page 8

NEWSWATCH 8 Long Beach Business Journal

March 18-31, 2014

Huntington Beach Assemblymember Introduces Legislation For SCIG Project â–  By TIFFANY L. RIDER Editor

“What we’re doing at this point is a wait and see. The language [of the bill] itself does nothing. Until there is

Huntington Beach Assemblymember Travis Allen introduced a bill late last month that would allow the state legislature to “facilitate the infrastructure development and implementation of the final impact report� for the Southern California International Gateway (SCIG) railyard project. On the surface it appeared to be an effort to expedite litigation over potential negative environmental impacts on nearby communities. Assembly Bill 2208 was introduced on February 20 as “California Environmental

some meat to it, there’s nothing to do but take it on his word. We will react to it depending on what [amended language] does.� Michael Mais, Assistant City Attorney, Long Beach

Quality Act: Southern California International Gateway Project.� Though this “spot bill� currently serves as a placeholder, it may be heard in a policy committee by March 21, pending referral and amendments to the language. Failing arrival of amendments, it will be held in the rules committee.

According to Stephanie Freedman, press secretary for Allen, substantive amendments would not move forward without having conversations with SCIG stakeholders. At press time, Freedman conveyed to the Business Journal that while conversations with the project’s stakeholders are happening, she said

"'#)"#)" $#) ("$#)%#&$#) $#)!%$#

the

CARSON Center

        

* 7 0*,01&++,31&3"+.2"1+! ,+#"/"+ " "+1"/ 7 0.2/"#""1,##)"5&)" *""1&+$0- "&+ )2!&+$  0.2/"#,,1))/,,* 7 "+1/))6), 1"!*&+21"0#/,* +!,+$" %&/-,/10"06!/&3" #/,*/+$",2+16+!1%" "010&!" 7 #)"5&)"0- "0  $2"010

,**,!1&+$

7 11",#1%"/12!&,3&02) ".2&-*"+101$"+!1%"1/& ) )&$%1&+$ 7 /,#"00&,+)"3"+1 ,,/!&+1,/,+0&1" 7 + ,*-/)"#,,!0"/3& "4&1% "1%+& *"+203&))" 7 /""-/(&+$ 7 !' "+11,1%" /,,*,2)"1/""%,1")

110

E University Dr

405

Links At Victoria

Avalon Blvd

Harbor Fwy Figueroa St

W 190th St

Normandie Ave

E Victoria St

Cal State Univ-Dominguez Hills

S Wilmington Ave

91

E Del Amo Blvd

E Carson St E 223rd St

the

CARSON Center  01/0,+1/""17/0,+ 7444 /0,+ "+1"/ ,*

Allen had no intentions of amending the bill – which means the bill could be dead. SCIG is a railyard project by Burlington Northern Santa Fe (BNSF) Railway for the Port of Los Angeles (POLA). The project site is within the POLA but near Long Beach homes and schools. A dispute between the POLA and the City of Long Beach over the proposed railyard’s potential negative environmental impact on the families living in West Long Beach evolved into a lawsuit filed by the City of Long Beach and several petitioners – including the Long Beach Unified School District and businesses currently located on the site of the proposed project – against the City of Los Angeles. AB 2208 mentions nothing of this lawsuit. According to Freedman, one of the reasons Allen introduced the legislation was to help move forward a project that could spur economic development and create jobs. Lena Kent, spokesperson for BNSF, told the Business Journal that the company is aware of Allen’s bill but was not involved in its development, nor did BNSF request the legislation. The same goes for the port, according to POLA spokesperson Phillip Sanfield. “We are glad to see Assemblymemer Allen and others recognize the importance of SCIG to the ports of L.A. and Long Beach as an economic engine to the region,� Sanfield told the Business Journal. “SCIG has many benefits to the regional economy. We’re obviously interested in seeing what becomes of it.� Michael Mais, assistant city attorney for Long Beach, told the Business Journal that it was Jesse Marquez of the Coalition for a Safe Environment – one of the petitioner groups siding with Long Beach in the lawsuit against L.A. – who notified Long Beach’s outside counsel about AB 2208. Marquez could not be reached for comment. “What we’re doing at this point is a wait and see,� Mais said. “The language [of the bill] itself does nothing. Until there is some meat to it, there’s nothing to do but take it on his word. We will react to it depending on what [amended language] does.� City Attorney Charles Parkin confirmed that, as of March 14, neither the city nor its outside counsel handling the litigation had been contacted by Allen’s office about the bill. “You’ve seen this kind of legislation before for the football stadium, but it was introduced at the beginning stages of the project to clear a path for it,� Parkin said. “They’ve already done an environmental report [for SCIG] and it’s in litigation.� The legislation Parkin is referring to, Senate Bill 292, was authored by Sen. Alex Padilla and signed into law September 27, 2011. One of the bill’s coauthors was Assemblymember Bonnie Lowenthal (D-Long Beach). Designed to help bring a convention center and professional football stadium to L.A., the legislation allowed special administrative and judicial review procedures in order to fast track environmental


1_LBBJ_Mar18_SectionA_LBBJ MASTER LAYOUT 3/16/14 8:03 PM Page 9

NEWSWATCH March 18-31, 2014

Long Beach Business Journal 9 of Wells Fargo Advisors

Wells Fargo Advisors congratulates

impact report decisions without amending the California Environmental Quality Act (CEQA). According to Allison Ruff, chief of staff for Lowenthal’s office, the assemblymember is aware of AB 2208 but has not yet discussed it with Allen to determine any motive for introducing the bill. “We’re all just waiting to see what happens,� Ruff told the Business Journal. “It’s definitely one to watch.� As it stands today, the SCIG lawsuit was assigned a case number in Contra Costa County. The case was transferred from Los

Angeles County at the request of the City of Los Angeles. Under state law, according to Mais, if two entities in the same county are in litigation, if either entity feels there is an unfair prejudice because the case would be heard in that county, it can request to have the case moved. Los Angeles suggested the case be moved to Orange County, but all petitioner groups opposed that motion, Mais said. Before the motion occurred, the parties agreed last December to move it to Contra Costa County. A case number was assigned to the lawsuit on January 24. â– 

Wee congratulate The Schulten Groupp of W [FA Name] eells Fargo Fargo Advisors ed W sors on being named Wells [FA Title] to s Top ToptoFinancial Barron’s Advisors inn on Barron’ being named Barron’s Top for list the 6th th consecutive year r. year. America State by State

CalChamber Appeals In Lawsuit Against ARB’s Cap And Trade Auction After Sacramento Superior Court Judge Timothy Frawley made the admittedly “close question� decision in California Chamber of Commerce v. California Air Resources Board to provide sufficient authority to the state to continue holding carbon allowance auctions, the chamber filed an appeal last month. As part of the cap-and-trade regulation of Assembly Bill 32, known as the Global Warming Solutions Act of 2006, the air resources board has been holding carbon allowance auctions for emitting institutions to purchase as a hedge against its predicted emission amount. The cap is a 25,000 metric ton equivalent threshold for emitting greenhouse gases, and the carbon

allowance auctions are one option for trading down emissions while working toward actually reducing them. The California Chamber, in its appeal, argues that Frawley’s ruling created a new fee category that must be examined. “We believe that the judge inappropriately created a new category of regulatory fees in order to avoid ruling that the revenues came from an illegal tax – not approved by two-thirds of the legislature,� Allan Zaremberg, president and CEO of the chamber, said in a statement. “The judge himself called this ‘a close question.’� The appeal was filed with the 3rd District Court of Appeal in Sacramento. ■ – Tiffany L. Rider, Editor

Back row chulten, Merlin Micken, Brandon Hancock and Lori Zorn. Front Row: L to R Jessica Saunders, Rachael Waite, Allison Sheridan, Alexandria Koualczuk and Kylee Hibbs.

At Wells Fargo Advisors, we recognize the importance of service and dedication,    the accomplishments    Schulten   Group’ s being   and we proudly celebrate of The ranked  #25 in the list of 2014 Barron’   s Top 1200 Advisors. This distinction is ZLGHO\UHJDUGHGDVDEHQFKPDUNIRUSXWWLQJWKHQHHGVRIFOLHQWVÀUVW²RQHRIWKH FRUHIRRXQGDWLRQVRIRXUÀUP 

 

  







 









 



 



The Schulten Group of Weells Fargo Advisors (3DFLĂ€F&RDVW+Z\6XLWH /RQJ%HDFK&$ 3KRQH  7ROO)UHH   www.theschultengroup.com Rankings based on data provided by thousands of advisors and financial services firms. Factors included in the rankings were assets under management, revenue produced for the firm, regulatory record, quality of practice and philanthropic work. Investment performance isn’t an explicit component. Investment and Insurance Products: X NOT FDIC Insured X NO Bank Guarantee X MAY Lose Value Wells Faargo Advisors, LLLC, C, Member SIPC, is a registered brokeer-dealer and separate non-bank affiliate of Wells Fargo & Company. Š2014 Wells Fargo Advisors, LLC. 0214-01853 [83210-v4]

A Trip to Italy Lunch Buffet! Enjoy our Spring Garden Salad Bar plus a rotating menu of 7 or more specialties -HYMHSL(SMYLKV^*OPJRLU )YVJJVSP 9PNH[VUPHS-VYUV AP[P^:\U+YPLK;VTH[VLZ 4\ZOYVVT 3PUN\PUPL=VUNVSL 7LUULJVU7LZ[V7HYTPNNPHUV 3LTVU*OPJRLU7PJJH[H 4LH[)HSSZPU4LH[:H\JL 0[HSPHU:H\ZHNL^7LWWLYZ 6UPVUZ (UHZZVY[TLU[VM[YHKP[PVUHS NV\YTL[ WPaaHZ TVYL

$8.99 Mon. - Fri. 11am-2pm 562.432.2211 250 W. Ocean Blvd., L.B.

MHJLIVVRJVTI\VUVZH\[OLU[PJWPaaLYPH [^P[[LYJVTI\VUVZWPaaLYPH

562.595.6138 401 W. Willow St., L.B.

ORDER ONLINE

BUONOSPIZZA.COM


1_LBBJ_Mar18_SectionA_LBBJ MASTER LAYOUT 3/16/14 8:03 PM Page 10

NEWSWATCH 10 Long Beach Business Journal

March 18-31, 2014

City National Bank Debuts New Branch Building ■ By SAMANTHA MEHLINGER Staff Writer

City National Bank executives and staff show off the bank’s new Long Beach Marina Branch at 6398 E. Pacific Coast Hwy, which opened last week. Pictured, from left are: Jodi Huston, senior vice president and Westside regional manager; Lissette Najarro, assistant vice president and relationship manager; Kristine Negrete, vice president and branch manager; Melody Magana, vice president and client services manager; and David Doughty, vice president and senior business banking relationship manager. As shown at right, the bank has no teller windows. (Photograph by the Business Journal’s Thomas McConville)

I’ll be pr prepared. epared. And inspir inspired. ed. At CSUDH, you’ll earn more than a recognized degree CSUDH

respected by employers. You’ll receive the mentorship

connects conne cts of faculty and staff dedicated to your success. And you’ll gain the practical experiences you need to excel in your academic and professional career. Prepare to be inspired.

Learn more at CSUDH.EDU/FutureStudents.

 ‡(9LFWRULD6WUHHW‡&DUson,  ‡(9LFWRULD6WUHHW‡&DUson, CA 90747

City National Bank opened its new location off of 2nd Street and Pacific Coast Highway adjacent to the Marina Pacifica Shopping Center last week. The building, located at 6398 E. Pacific Coast Hwy., replaces a former branch office where a new CVS/pharmacy is now located. The new building’s architecture is different from the previous building and other City National Bank (CNB) locations due to its very open format, Jodi Huston, CNB’s senior vice president and Westside regional manager, told the Business Journal. Huston oversees 12 branches from Pacific Palisades to Belmont Shore. “We built this new location because we are very committed to the Long Beach market and wanted to stay here,” she said. Though the previous branch building was closed about a year ago when shopping center construction to build a new pharmacy and restaurant in the vicinity began, City National Bank continued to serve its client base from a temporary bungalow nearby. “At no point did our clients lack access,” Huston noted. The architecture of the new branch


1_LBBJ_Mar18_SectionA_LBBJ MASTER LAYOUT 3/16/14 8:03 PM Page 11

building, designed by Scott Johnson of the Los Angeles design firm Johnson Fain, features many windows to let in natural light and is Leadership in Energy and Environmental Design (LEED) Platinum certified, Huston said. The rating is the highest for environmentally sustainable buildings. CNB clients may be surprised to see that there are no teller lines. “The clients are not standing in a line,� Huston said. “Our employees come to our guests and we assist them with whatever they might need,� she added. Clients must be buzzed in to enter the building for security reasons. Kristine Negrete, the vice president and branch manager, has worked at the Long Beach Marina branch for five years and said that the bank continues to offer a full range of services, including everything from business accounts to personal accounts and even commercial lines of credit. Huston said that the new building enhances what she calls an already “superior� client experience and also illustrates CNB’s commitment to the area. “We did a complete build out at this new location because we were committed to this market and we didn’t want to impact our clients in the Seal Beach, Naples and Belmont Shore communities that really are the lion share of our business,� she explained. Branch hours are Monday through Thursday from 9 a.m. to 4 p.m. and from 9 a.m. to 6 p.m. on Friday. Appointments at alternate hours are available. For more information, call 562/936-5800. City National Bank, which is celebrating its 60th anniversary this year, has another Long Beach location in Downtown Long Beach. ■

Long Beach-based Imprint Venture Lab Provides Seed Funding For Entrepreneurs Imprint Venture Lab, a seed-stage incubator in Long Beach, is launching its third venture fund. Applications are being accepted now through May 31 to be part of the Imprint Venture Lab Fast Pitch Event in August 2014. The organization is seeking creative startup founders to partner with and provide funding and stewardship, according to Julia Huang. “There are so many creative-driven startups that don’t get the attention of investors because they’re not tech,� Huang told the Business Journal. “Or they get relegated to the field of crowdfunded projects that get seed funding but not the collaborative business education and support needed to advance from concept to success. There’s an untapped community of innovators here in Long Beach that’s as strong as in Silicon Valley or New York – we’re excited to see what smart, savvy ideas come out of this competition.� Categories of business startups that Imprint Venture Lab typically works with include product design, consumer goods, apparel and social good. Imprint will notify finalists in July. For more information or to submit an application, visit www.imprintventurelab.com/fastpitch. ■ – Tiffany L. Rider, Editor

Don’t dwell dwell on Tas Don’t Tasty sty tax relief taxes! taxes! Ea Eatt served up! BBQ instead!

‡ $OVR)HDWXULLQQJ6WHHDNV7UL7LS&KLFFNHQ 3ULPH5LEE)UHVK)LVVK6DQGZLFFKHV 6DO ‡ )DPLOO\2ZQHG 2SHUDWHG ‡ .LGœV0HQXV ‡ &RFNWDDLOO/RXQJHZLWK79œV ‡ 7DEOHVLGGH0DJLFF6XQGD\1LJJKWV ‡ :DUP &RPIRUWDEOHH%RRWKV ‡ 5HVHUYDWLRRQV$FFHSWHG ‡ 'LQQH,Q2SHQDWSP0RQ)UL ‡ 2SHQDW1RRQ6DWDQG6XQ ‡ 7DNH2XW$YDLODEOH'DLOO\DWDP ‡ %XFNHWV3DUW\3DNVDQG7UD\V ‡ +DSS\+RXU07+30 6DW6XQ30

Coupon p

Expires 05 /01 / 2014

$5 off off a any ny y order of $25 5 or o more* more* *Cannot be combined with any other offerr, coupon or discount.

LBBJ

11 Unit Apartment Building All 1BR & 2BR Units in Long Beach Below Market Rents with Great Upside Potential

18 Unit Apartment Building Los Angeles - No Rent Control 3 Floors - 1984 Construction

Steve Warshauer (562) 397-9520 George Bustamante (714) 856-7017


1_LBBJ_Mar18_SectionA_LBBJ MASTER LAYOUT 3/16/14 8:03 PM Page 12

NEWSWATCH 12 Long Beach Business Journal

March 18-31, 2014

Long Beach Global Entry Enrollment Center First In U.S. Near Seaport Earlier this month, the U.S. Customs and Border Protection (CBP) office in Long Beach opened the first Global Entry Enrollment Center to be located at a seaport. According to a CBP statement: “Global Entry is a program that allows expedited clearance for pre-approved, low-risk travelers upon arrival in the United States. Global Entry is open to U.S. citizens, lawful permanent residents, and Mexican nationals. Global Entry is also available to citizens of the Netherlands who are enrolled in FLUX and Korean citizens enrolled in the Smart Entry Service. Canadian citizens and residents may enjoy Global Entry benefits through membership in the NEXUS program.” While the program targets frequent international travelers, there is no minimum number of trips necessary to qualify for the program. The CBP says that participants may enter the U.S. by using automated kiosks located at select airports. “At airports,” according to CBP, “program participants proceed to Global Entry kiosks, present their machine-readable passport or U.S. permanent resident card, place their fingertips on the scanner for fingerprint verification, and make a customs declaration. The kiosk issues the traveler a transaction receipt and directs the traveler to baggage claim and the exit.” CBP is the agency within the U.S. Department of Homeland Security that is charged with the management, control and protection of the nation’s borders and between the official ports of entry. Pictured are CBP officers Humberto Macias, left, and Eddie Payne assisting travelers. The offices are located on the 8th floor of the Shoreline Square office building at the northeast corner of Ocean and Long Beach boulevards in Downtown Long Beach. Office hours are 10 a.m. to 6 p.m., Monday through Friday. (Photograph by the Business Journal’s Thomas McConville)

Long Beach Transit Bus Order From BYD (Continued From Page 1)

Long Beach Transit spokesperson Kevin Lee told the Business Journal that the transit agency is giving BYD a “chance to cure” this situation. However, an FTA spokesperson wrote in an e-mail to the Business Journal last week, “In order to comply with federal DBE regulations, BYD had to be in compliance at the

time of its bid,” meaning that even if it currently demonstrates that it is in compliance with DBE regulations, the company’s contract with LBT would still be ineligible for FTA funding unless BYD rebids on the project after receiving proper certification. “In subsequent discussions with LBT, we

advised that LBT could rebid the procurement in order to maintain the TIGGER funds, and if so, BYD now would be eligible to bid,” the FTA spokesperson wrote. She added, “Or LBT could keep the existing contract with BYD and pay for it solely with non-federal funds.” When asked if LBT was planning to rebid on the project or pay for it out of pocket, in addition to several other inquiries, Lee responded with this blanket

statement: “The FTA informed Long Beach Transit that BYD is out of compliance with certain Disadvantaged Business Enterprise (DBE) requirements. As required, LBT has given BYD a period in which they may attempt to cure. During that period, LBT will have no further comment regarding this issue.” When asked if BYD would participate in a rebid on the project, Micheal Austin, vice president of BYD America,

28

& c Year ou s nti ng !

3225 E. P Pacific acific Coast Coast Hwy. Hwy y..

FFast ast Delivery Deliver y 7 Da Days ayys a W Week eekk

562.498.8788 562.498.8 788 www.bigepizza.com www .big epizza.com


1_LBBJ_Mar18_SectionA_LBBJ MASTER LAYOUT 3/16/14 8:03 PM Page 13

NEWSWATCH March 18-31, 2014 responded, “BYD does not believe that there is a need to rebid.” He added, “The Federal Transit Administration has agreed to continue funding our Altoona stress testing of the bus to be delivered to Long Beach. We are confident that this testing will be successfully completed.” Neither BYD nor LBT responded to questions regarding how much money each has contributed to the project up to this point. According to LBT documents from February 2013, when BYD was selected as the contractor for the project, the total project cost was $13.95 million, most of which was to be funded by the $9,571,429 TIGGER grant. The rest was to be funded with Proposition 1B (the state goods movement emission reduction program) bonds and a $700,000 grant from the Port of Long Beach. With Proposition 1B funds and the port grant combined, LBT would still have about $4,378,571 for the project if it lost federal assistance. Lee did not address a question asking if LBT has the funds to pay for the buses without FTA funding. Although the FTA sent the letters to LBT President and CEO Kenneth McDonald in November and December of last year, presentations on the project at subsequent LBT Board of Directors meetings did not include any mention of the letters or any indication that the project had lost eligibility for federal funding. When asked if the board was informed of the letters, Lee said LBT had no further comment apart from the statement addressing the DBE requirements. He did not address a request to extend the question to the current board president, Freda Otto. Otto did not respond to an email regarding the same inquiry. Whether or not the board was informed is uncertain. Also unclear is why LBT staff presentations made after the FTA letters were received by McDonald have indicated that the project is moving forward without mention of needing to rebid or pay out of pocket.

Long Beach Business Journal 13

San Pedro Bay Waterfront Project Negotiations Extended Through May The developers of the San Pedro Bay Waterfront project and the Port of Los Angeles extended their exclusive negotiating agreement 60 days in order to resolve the infrastructure plans with the port and finalize a comprehensive proposal of the deliverables, according to Eric Johnson, co-founder of Jerico Development. Those deliverables include relocating a fuel dock, road realignment and building a promenade. “The port has been working internally to figure out when they can deliver them, which is something that we’re just now coming close to finalizing,” he said.

“Based on that, we will provide a comprehensive term sheet around development that is consistent with their plans for infrastructure. Johnson cited the significant changes of the port’s harbor commission as a reason for delays. “Things have been a little less efficient,” Johnson said. “We’re getting back after it . . . to solve the set of terms that works for us, the port and our equity and debt investors.” An agreement should be finalized on or before May 8. ■ – Tiffany L. Rider, Editor

Distinguished Speaker Series Features Brinkley The 7th Annual California State University, Long Beach (CSULB) Distinguished Speaker Series on March 27

features noted historian and best-selling author Douglas Brinkley. The event, with Edison International as the title sponsor, begins at 7:30 p.m. at the Carpenter Performing Arts Center. Reserved seat tickets are $20 for students; $30 for seniors and veterans; and $40 to the general public. Brinkley, professor of history at Rice University and a fellow at the James Baker Institue for Public Policy, is speaking about “The Evolution of the American Presidency,” including a special focus on President Obama and how his election changed the course of American history. For more information or for tickets to a pre-event BBQ dinner by Naples Rib Company at 6 p.m. on the patio of the peforming arts center, visit www.distinguishedspeakerseries.com. ■

At International City Bank, our expertise is helping businesses thrive. We offer a personalized and strategic business banking approach that allows you to focus your energy on what you do best.

Labor Citations Upheld, Reduced Citations for labor violations issued by the California Department of Industrial Relations (DIR) to BYD in October were upheld, although the penalties were reduced, DIR spokesperson Peter Melton told the Business Journal last week. The DIR hearing officer’s decisions were issued on March 11. The penalty for a citation that BYD paid employees at its Lancaster plant with itemized wage statements containing inaccurate or incomplete information was reduced from $74,500 to $25,500. The penalty for another upheld citation that BYD failed to provide two 10minute rest periods to workers was reduced from $9,755 to $9,153. A statement released by BYD on March 13 called the behavior for which it was cited “good faith technical errors.” In late January, the DIR dismissed a citation alleging that the bus company failed to pay the state minimum wage to workers at its Lancaster plant. The company paid $1,900 “in the spirit” of resolving the matter, a statement issued by BYD’s attorney Lanny J. Davis said at the time. ■

businessmadepersonal International City Bank | 249 E. Ocean Blvd. Long Beach, CA 90802 | 562. 436. 9800 | www.icb.biz

MEMBER FDIC


™Î i… Þ]›näU˜} Ü œÃÌ >Vˆv

ÈÓ£Ê °*

1_LBBJ_Mar18_SectionA_LBBJ MASTER LAYOUT 3/16/14 8:03 PM Page 14

NEWSWATCH

14 Long Beach Business Journal

March 18-31, 2014

Hotel/Condo Project (Continued From Page 1)

coastal zone, calls for condominiums and hotel rooms to replace the current Beach Plaza Hotel. Studio One Eleven, the architectural design firm for the proposed project, submitted a letter March 6 to coastal commission staff outlining three options proposed by Silversands Property USA.

11

3

13

5

1

9

10

8

12

4

6

2

7

Retail Space Available Bellflower 17152 Bellflower Blvd. 16,398 SF

Former Furniture Retail Storefront Additional 2,000 SF of Warehouse in Rear Rooftop Sign Facing 91 Freeway Midway between Lakewood Blvd. and 605 Freeway Lease Rate: $0.59 PSF, MG

562/498-3395

ÈÈÓ£ ° *>VˆvˆVÊ œ>ÃÌÊÜÞ°]ʛÓnä U œ˜}Ê i>V…]  ™änäÎ

This rendering shows a project design by Studio One Eleven entitled by the City of Long Beach in 2007 for the property at 2010 E. Ocean Blvd. (The Beach Plaza Hotel, inset photograph, currently occupies the site). The design includes space for 40 hotel rooms and 56 residential units. If the California Coastal Commission does not agendize a hearing for a modified project design of this project – which changes the configuration to 72 hotel rooms and 33 residential units – by April, then property owner Silversands Property USA will revert back to the entitled design. According to the rendering documents, the entitled design includes: (1) native landscaping; (2) alternative transportation parking; (3) natural ventilation; (4) resource reuse for (5) exterior materials; (6) passive solar shading; (7) natural light maximization; (8) a highly reflective cooling roof; (9) renewable and recyclable materials; (10) water efficiency; (11) Energy Star appliances; (12) recycling; and (13) building operations, maintenance and training on the green building components. (Image courtesy of Long Beach Development Services)


1_LBBJ_Mar18_SectionA_LBBJ MASTER LAYOUT 3/16/14 8:03 PM Page 15

NEWSWATCH March 18-31, 2014 Those three options were: (1) schedule the hearing in March and the owner will pay $1.2 million in “current” in-lieu fees; (2) schedule the hearing in April and continue to negotiate with the owners on the in-lieu fee amount; or (3) not schedule a hearing by April, have ownership pull its application and see the project revert to an entitled design approved by the City of Long Beach in 2007. Since the project was not part of the March 12-13 coastal commission meeting agenda, local consultant Mike Murchison presented the property owner’s two remaining options during public comment at the March 13 meeting. “On behalf of Silversands Property USA, we would like to see this situation resolved for the benefit of all, including for a wonderful project,” Murchison told the Business Journal prior to the meeting. “But if the commission decides not to take action by the April date, as indicated in the letter, then we will be reverting back to the original entitlement of which we believe we will be able to pull permits appropriately with the City of Long Beach. It will be an unfortunate loss to the coastal commission because they will be receiving no in-lieu fees. I can’t emphasize no in-lieu fees enough.” As a requirement to protect lower cost visitor-serving overnight accommodations in the coastal zone, the California Coastal Act charges in-lieu fees to developments that impact those accommodations. Once a project developer and the coastal commission agree to in-lieu fees, a low-cost overnight accommodation like a hostel or campground is specified to receive those funds. If the in-lieu fee recipient is not identified up front – which coastal staff confirmed happens most of the time – then the executive director of the commission is allowed to identify an acceptable allocation. “The coastal commission doesn’t look favorably to threats,” Steve Kinsey, chair of the coastal commission, told the Business Journal in response to the limited options offered by the property owner representation. Kinsey acknowledged that coastal commission staff has been working with Murchison and Studio One Eleven and that the project could quite possibly be on the April meeting agenda, although there are no guarantees. “There’s just a little over two weeks before the agenda goes out,” Kinsey said. “At the same time, there’s been a lot of progress made. Now it’s at the highest level.” The challenge, Kinsey said, is that the language of the local coastal plan (LCP) discusses preserving the hotel property because it is part of the designated coastal zone. Therefore the property must be examined for its use and potential preservation, as well as what kind of contribution could come from charging an in-lieu fee. One option, he said, would be to apply in-lieu fees toward building a youth hostel in Long Beach. Such a project could align with the low-cost amenity requirement of the LCP, he said. According to the March 6 letter, Silversands Property USA has until October 11, 2014, to pull construction permits with the city if the property

Long Beach Business Journal 15 owner decides to pursue the project under the entitled design. The entitled design, also by Studio One Eleven, includes 56 residential units and 40 hotel rooms. Two separate homeowners associations and Rachel Torres, research analyst for the hospitality union Unite Here Local 11, appealed the modified design project after it was approved by the Long Beach City Council last year. Several concerns were raised that the modified design of 33 residential units and 72 hotel rooms would create problems during demolition, cause traffic congestion and parking issues for local residents and that there were possible conflicts with the city’s LCP. The appeals were denied unanimously

by the Long Beach City Council last July. However, one of the appellants, Torres, took her appeal to the coastal commission. As a result, Studio One Eleven made additional changes to the modified project and submitted them to the coastal commission last October. Despite the changes, Torres re-filed her appeal. On November 15, the coastal commission, which includes Vice Mayor and Councilman Robert Garcia, heard the appeal and voted 6-5 (Garcia voting with the majority), finding substantial issues with the modified project. The vote, which triggered the option to revert back to the entitled project design, required the modified project be brought to a full hearing to vet concerns and discuss the

possibility of allowing mitigation through in-lieu fees. “In the nature of coastal development, specifically with hotels, the in-lieu fees have been discussed for years,” Murchison said. “In this particular situation, there was no appeal to the original entitlement. So with no appeal, nobody had the opportunity to pursue an in-lieu fee. Otherwise, in typical fashion, most of the time, development along the coast is going to be appealed to the coastal commission. Thereby the coastal staff and the commission have the opportunity to insert an in-lieu fee.” The agenda for the April 9-10 meeting of the coastal commission should be available online in about two weeks. ■


1_LBBJ_Mar18_SectionA_LBBJ MASTER LAYOUT 3/16/14 8:03 PM Page 16

POLITICALWIRE – CANDIDATES FOR CITY COUNCIL 16 Long Beach Business Journal

See Pages 18 & 19 For More Information On Each Candidate And Some Statistics Do you favor increasing the minimum wage for restaurant workers to anywhere from $11 to $13 an hour?

March 18-31, 2014

1st City Council District

Lena Gonzalez

Ricardo Linarez

Pilar Pinel

3rd City Council District

Misi Tagaloa

Stephen Bello

Martha F. Gibson

Jim Lewis

Suzie Price

Jack Rosenberg

Yes

Leaning Yes

No

Leaning No

No

No

No

Do you support developing a new Long Beach Civic Center?

Leaning Yes

Leaning No

Leaning No

Leaning Yes

Leaning Yes

Leaning Yes

Yes

Do you support including the Harbor Department Headquarters as part of a new Long Beach Civic Center?

Leaning Yes

Leaning Yes

Yes

Yes

Leaning No

Leaning Yes

Yes

In order to attract more businesses to Long Beach, would you support suspending the business license fee during a new business’ first two years of operation?

Leaning Yes

Yes

Leaning Yes

Leaning Yes

Yes

Yes

Yes

The city’s Economic Development Bureau was eliminated several years ago. Do you support reestablishing the Bureau with a charge of attracting and retaining business?

Yes

Yes

Yes

Leaning No

Yes

Yes

Yes

Assuming funding is available, would you support increasing the size of the Long Beach Convention Center to accommodate larger conventions?

Leaning Yes

Leaning Yes

Yes

Leaning Yes

Yes

Yes

Yes

Would you support hiring an Arts Advocate to work from the City Manager’s or the Mayor’s office to serve as a voice for the arts community?

Leaning Yes

Leaning Yes

Leaning Yes

Yes

No

Leaning Yes

Leaning No

Leaning Yes

Leaning Yes

Leaning No

Leaning Yes

No

Leaning Yes

No

No

Leaning Yes

Leaning Yes

Leaning Yes

Yes

No

Yes

Currently, the City Attorney is an elected position. Would you support the position being an appointment by the City Council, similar to the City Clerk’s position?

Leaning Yes

Leaning No

Leaning Yes

No

No

Leaning Yes

Yes

Do you support eliminating the Long Beach breakwater?

Yes

Leaning Yes

Leaning Yes

Leaning No

No

No

Leaning No

If elected, would you make your appointment calendar available online for all to see?

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Do you feel the City Council did the right thing in suing the City of Los Angeles over the proposed BNSF railway project?

Yes

Yes

Yes

Leaning Yes

No

Leaning No

Leaning No

Do you support allowing marijuana businesses to operate in Long Beach?

Leaning Yes

Yes

Leaning No

Leaning Yes

No

Leaning Yes

Leaning Yes

Do you support contracting out more city services if it is proven to save the city money and the service is equal to or better than that provided by city staff?

No

Leaning Yes

Yes

Leaning No

Yes

Leaning No

Leaning Yes

Do you believe Long Beach needs to develop more low-income housing?

Yes

Leaning Yes

No

Leaning Yes

Leaning Yes

Leaning No

No

Leaning No

Leaning Yes

No

No

No

No

No

Yes

Leaning No

Yes

Yes

Yes

Yes

Leaning Yes

Greatest Citywide Needs

Fair Share For Each Council District

Greatest Citywide Needs

Fair Share For Each Council District

Greatest Citywide Needs

Fair Share For Each Council District

Did Not Answer

Yes

Yes

Yes

Yes

Yes

No

Yes

Yes

No

No

No

No

No

No

The city currently allocates roughly $375,000 from the General Fund budget for the Long Beach Arts Council. Would you support increasing that amount to $700,000? The noise ordinance for the Long Beach Airport allows for a minimum of 41 daily commercial flights. If noise was reduced due to the development of quieter aircraft, would you support an increase in daily flights?

Do you believe Long Beach needs more homeless shelters? The headline from the Long Beach Police Department read: “2013 crime statistics show lowest reported violent crimes in 41 years.” Does Long Beach need to hire more police officers? If the City Council had $10 million to spend as it wishes, would you vote to split the money 9 ways so each Council District receives its fair share, or would you rather spend it where the greatest needs are citywide? (check one): Do you, or have you, owned a business where you had to meet a payroll? Have you signed the “Southern California District Council Labor Pledge” by the ILWU?


1_LBBJ_Mar18_SectionA_LBBJ MASTER LAYOUT 3/16/14 8:03 PM Page 17

POLITICALWIRE – CANDIDATES FOR CITY COUNCIL March 18-31, 2014

Long Beach Business Journal 17

7th City Council District

5th City Council District

Jack Rosenberg

Carl Kemp

Joe Luyben

Stacy Mungo

No

No

Leaning No

No

Yes

Leaning No

No

Yes

Leaning Yes

Yes

Lee Chaucer

9th City Council District

Joan Greenwood

Teer Strickland

Roberto Uranga

Ben Daugherty

Rex Richardson

Leaning Yes

Leaning Yes

Yes

Yes

Leaning No

Leaning No

Leaning Yes

Leaning Yes

Leaning Yes

Leaning No

Leaning Yes

Leaning Yes

Leaning Yes

No

Leaning Yes

Yes

Leaning No

No

Leaning Yes

Yes

Leaning Yes

Yes

Yes

Yes

Yes

Leaning Yes

No

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Leaning Yes

Yes

Leaning Yes

Yes

Yes

Yes

Leaning Yes

Yes

Leaning No

No

Yes

Yes

Leaning Yes

Leaning No

No

Leaning Yes

Leaning Yes

Leaning Yes

No

Leaning Yes

Yes

Leaning Yes

Leaning No

Leaning Yes

No

Leaning No

Leaning No

Leaning No

Yes

Leaning No

No

Leaning No

No

Leaning No

No

No

Yes

Leaning No

Yes

No

No

Leaning No

Leaning No

No

Yes

Leaning Yes

No

Leaning No

Leaning No

Leaning No

Leaning Yes

Leaning Yes

Leaning No

Leaning Yes

Yes

Leaning Yes

Leaning Yes

Leaning Yes

Yes

Yes

Yes

Yes

Leaning Yes

Yes

Yes

Yes

Yes

Yes

Leaning No

No

Leaning Yes

Leaning Yes

Leaning Yes

Yes

Yes

Yes

Yes

Leaning Yes

Leaning Yes

Leaning Yes

Yes

No

Leaning No

Leaning Yes

Leaning Yes

Leaning Yes

Leaning Yes

Leaning Yes

Leaning Yes

Leaning Yes

Yes

Leaning Yes

Leaning Yes

Leaning No

Yes

No

Yes

Leaning No

No

Leaning No

Leaning No

Leaning No

Leaning No

Yes

Yes

Yes

Leaning Yes

Leaning Yes

No

Leaning No

Leaning No

Leaning No

Leaning No

Yes

Yes

Leaning No

Yes

Yes

Leaning Yes

Yes

Yes

Leaning Yes

Leaning Yes

Yes

Yes

Yes

Yes

Yes

Did Not Answer

Greatest Citywide Needs

Fair Share For Each Council District

Greatest Citywide Needs

Greatest Citywide Needs

Fair Share For Each Council District

Fair Share For Each Council District

Fair Share For Each Council District

Greatest Citywide Needs

Greatest Citywide Needs

Yes

Yes

Yes

Did Not Answer

No

No

No

Yes

Yes

No

No

Yes

No

No

Yes

Yes

No

Yes

No

Yes

Thomas Sutfin


1_LBBJ_Mar18_SectionA_LBBJ MASTER LAYOUT 3/16/14 8:03 PM Page 18

POLITICALWIRE – CANDIDATES FOR CITY COUNCIL 18 Long Beach Business Journal

March 18-31, 2014

2014 City Council Candidates Who Responded To Questionnaire See Each Candidate’s Response To 21 Questions On Pages 16 & 17 Ricardo Linarez 1st City Council District

Misi Tagaloa 1st City Council District

Stephen Bello 3rd City Council District

Martha Flores Gibson 3rd City Council District

38 years old Long Beach resident for 30 years Former City Council Deputy

46 years old Long Beach resident for 25 years Commercial Real Estate Broker

59 years old Long Beach resident for 51 years Business Woman/Educator

www.ricardolinarez.com

48 years old Long Beach resident for 30 years Pastor/Teacher www.Misi4LB.com

www.stephenCbello.com

www.marthafloresgibson.com

Jim Lewis 3rd City Council District

Suzie Price 3rd City Council District

Jack Rosenberg 3rd City Council District

Carl Kemp 5th City Council District

59 years old Long Beach resident for 8 years Nonprofit/Corporate Executive www.JimLewisForCouncil.com

41 years old Long Beach resident for 15 years Senior Deputy District Attorney www.suziepriceforcitycouncil.com

67 years old Long Beach resident for 20 years Commercial Real Estate www.jackrosenberg4longbeach.com

41 years old Long Beach resident for 20 years Public Relations Consultant www.CarlKemp.com

Joe Luyben 5th City Council District

Stacy Mungo 5th City Council District

Thomas Sutfin 5th City Council District

Joan Greenwood 7th City Council District

55 years old Long Beach resident for 55 years JDL Packaging Systems, Inc. www.Joeluyben.com

33 years old Long Beach resident for 10 years Budget Manager www.StacyMungo.com

46 years old Long Beach resident for 23 years Teacher/Small Business Owner www.tomSutfin.com

65 years old Long Beach resident for 28 years Senior Project Manager www.Greenwood4Council.com

Teer Strickland 7th City Council District

Roberto Uranga 7th City Council District

Ben Daugherty 9th City Council District

Rex Richardson 9th City Council District

50 years old Long Beach resident for 16 years Board of Equalization Employee www.teerstrickland.com

60 years old Long Beach resident for 31 years Trustee, LBCC Board of Trustees www.RobeertUranga.com

48 years old Long Beach resident for 28 years Retired www.daughertyforcouncil2014.com

30 years old Long Beach resident for 8 years Chief of Staff, City of Long Beach www.joinRex2014.com


1_LBBJ_Mar18_SectionA_LBBJ MASTER LAYOUT 3/16/14 8:03 PM Page 19

POLITICALWIRE – STATS March 18-31, 2014

Long Beach Business Journal 19

Registered Voters By City Council District As of March 6, 2014 • Source: Long Beach City Clerk’s Office

District 1 22,585 District 2 29,795 District 3 37,823

District 4 27,466 District 5 36,343 District 6 21,908

District 7 30,857 District 8 27,935 District 9 25,422

2010 Census Data For Odd-Numbered City Council Districts (Note: Population of the district prior to any redistricting changes voted on by the city council) Source: 2010 United States Census

1st City Council District

3rd City Council District

District Population 2010 48,314* District Population 2000 47,142* Percent Of Total City Population 10.45% Percent Of Total City Population 10.21% Latino: Percent Of All Latinos In City 16.54% Latino: Percent Of All Latinos In City 18.29% White: Percent Of All Whites In City 4.25% White: Percent Of All Whites In City 3.89%

District Population 2010 52,320* District Population 2000 50,214* Percent Of Total City Population 11.32% Percent Of Total City Population 10.88% Latino: Percent Of All Latinos In City 4.18% Latino: Percent Of All Latinos In City 3.23% White: Percent Of All Whites In City 26.97% White: Percent Of All Whites In City 28.29%

2010 District Total Latino 31,162 White 5,770 Black 6,735 176 American Indian Asian 3,064 Pacific Islander 364 Other 111 2+Races 932

2010 District Total Latino 7,867 White 36,596 1,868 Black American Indian 156 Asian 3,859 Pacific Islander 103 133 Other 2+Races 1,738

% Of Total 64.5% 11.9% 13.9% 0.4% 6.3% 0.8% 0.2% 1.9%

2000 District Total 30,195 5,948 6,471 271 2,807 366 73 1,011

% Of Total 64.1% 12.6% 13.7% 0.6% 6.0% 0.8% 0.2% 2.1%

% Of Total 15.0% 69.9% 3.6% 0.3% 7.4% 0.2% 0.3% 3.3%

2000 District Total 5,337 38,390 1,568 188 3,078 130 149 1,374

% Of Total 10.6% 76.5% 3.1% 0.4% 6.1% 0.3% 0.3% 2.7%

*Population of the district prior to any redistricting changes voted on by city council. In 2001, city council boundaries increased district population to 49,979 from the 47,142 total shown above. Total city population: 462,257; total Latino population: 188,412; total white population: 135,698 2000 city population: 461,522; total Latino population: 165,092; total white population: 152,899

*Population of the district prior to any redistricting changes voted on by city council. In 2001, city council boundaries increased district population to 51,089 from the 50,214 total shown above. Total city population: 462,257; total Latino population: 188,412; total white population: 135,698 2000 city population: 461,522; total Latino population: 165,092; total white population: 152,899

5th City Council District

7th City Council District

District Population 2010 49,852* District Population 2000 49,544* Percent Of Total City Population 10.78% Percent Of Total City Population 10.73% Latino: Percent Of All Latinos In City 5.24% Latino: Percent Of All Latinos In City 3.93% White: Percent Of All Whites In City 23.49% White: Percent Of All Whites In City 23.81%

District Population 2010 50,597* District Population 2000 49,663* Percent Of Total City Population 10.95% Percent Of Total City Population 10.76% Latino: Percent Of All Latinos In City 9.94% Latino: Percent Of All Latinos In City 9.97% White: Percent Of All Whites In City 6.66% White: Percent Of All Whites In City 6.10%

2010 District Total Latino 9,871 White 31,877 Black 1,681 American Indian 139 Asian 4,081 Pacific Islander 234 Other 118 2+Races 1,851

2010 District Total Latino 18,737 White 9,036 Black 7,779 American Indian 123 Asian 12,358 Pacific Islander 933 Other 110 2+Races 1,521

% Of Total 19.8% 63.9% 3.4% 0.3% 8.2% 0.5% 0.2% 3.7%

2000 District Total 6,484 36,412 1,394 159 3,386 134 111 1,464

% Of Total 13.1% 73.5% 2.8% 0.3% 6.8% 0.3% 0.2% 3.0%

% Of Total 37.0% 17.9% 15.4% 0.2% 24.4% 1.9% 0.2% 3.0%

2000 District Total 16,463 9,334 9,135 188 11,722 1,185 93 1,543

% Of Total 33.1% 18.8% 18.4% 0.4% 23.6% 2.4% 0.2% 3.1%

*Population of the district prior to any redistricting changes voted on by city council. In 2001, city council boundaries decreased district population to 49,129 from the 49,544 total shown above. 2010 city population: 462,257; total Latino population: 188,412; total white population: 135,698 2000 city population: 461,522; total Latino population: 165,092; total white population: 152,899

*Population of the district prior to any redistricting changes voted on by city council In 2001, city council boundaries increased district population to 49,681 from the 49,663 total shown above. 2010 city population: 462,257; total Latino population: 188,412; total white population: 135,698 2000 city population: 461,522; total Latino population: 165,092; total white population: 152,899

9th City Council District

2010 CENSUS City’s Population By City Council District

District Population 2010 55,096* District Population 2000 57,637* Percent Of Total City Population 11.92% Percent Of Total City Population 12.49% Latino: Percent Of All Latinos In City 17.00% Latino: Percent Of All Latinos In City 16.29% White: Percent Of All Whites In City 3.85% White: Percent Of All Whites In City 5.57%

2010 District Total Latino 32,023 White 5,227 Black 10,253 American Indian 135 Asian 5,104 Pacific Islander 1,307 Other 126 2+Races 921

% Of Total 58.1% 9.5% 18.6% 0.2% 9.3% 2.4% 0.2% 1.7%

2000 District Total 26,900 8,513 14,228 185 4,698 1,499 105 1,509

% Of Total 46.7% 14.8% 24.7% 0.3% 8.1% 2.6% 0.2% 2.6%

*Population of the district prior to any redistricting changes voted on by city council. In 2001, city council boundaries decreased district population to 53,734 from the 57,637 total shown above. 2010 city population: 462,257; total Latino population: 188,412; total white population: 135,698 2000 city population: 461,522; total Latino population: 165,092; total white population: 152,899

City Council District 1st District 2nd District 3rd District 4th District 5th District 6th District 7th District 8th District 9th District Totals

2010 Population 48,314 52,341 52,320 51,456 49,852 48,206 50,597 54,075 55,096 462,257

Under Age 18 14,423 9,772 6,917 12,216 10,985 15,624 12,556 15,667 16,983 115,143

Age 18 And Over 33,891 42,569 45,403 39,240 38,867 32,582 38,041 38,408 38,113 347,114

Percent Over 18 70.15% 81.33% 86.78% 76.26% 77.96% 67.59% 75.18% 71.03% 69.18% 75.09%

Note: Population numbers shown are prior to any redistricting changes voted on by the city council.


1_LBBJ_Mar18_SectionA_LBBJ MASTER LAYOUT 3/16/14 8:03 PM Page 20

POLITICALWIRE 20 Long Beach Business Journal

March 18-31, 2014

Our Choices For Best (Most Effective) And Worst (Oops) Mailers On the left, the mailer – for by the paid Independent Committee to Elect City Attorney Charles Parkin 2014 – tells it all. It’s the most effective mailer the Business Journal has seen so far in the 2014 campaign season. At right, the campaign staff for mayoral candidate Bonnie Lowenthal failed to look at the photo. Yup, that’s the San Diego skyline. By the way, no truth to the rumor that Lowenthal is running for mayor in both cities. (Continued From Page 1)

not win any other way. Johnson does not have the experience to serve as city attorney. And he knows it. It appears, based on his mailers, he also lacks the professionalism and high ethical standards the office requires of its city attorney. Parkin has worked with the city attorney’s office for 15 years. Last year, the city council appointed him city attorney to fill the unexpired term of the former city attorney, Bob Shannon, who has endorsed Parkin – as have all 19 attorneys in the city attorney’s office. They know that experience does matter when it comes to being the legal advisor for the city. Johnson is resorting to negative advertising and misinformation, and relying on his

political alliances to win. The city attorney post is a non-partisan office that has intentionally been made partisan by Johnson. The problem – and deep concern from throughout the community – is that it could work. Numerous well-known politicians are supporting Johnson and uniformed voters may follow their lead. Individuals such as Los Angeles Mayor Eric Garcetti and Congressman Alan Lowenthal should be ashamed backing an individual who is illprepared to provide legal advice to the city. Johnson, who for years hasn’t been able to get a job at a law firm, wants to be the top lawyer for a city which has very complex legal issues. Johnson is misleading voters about the

Long Beach Business Jour nal Journal

Coming Attractions

role of the city attorney’s office. He claims in a mailer that he will “protect city resources that fund public safety” and fight for pension reform and other items, yet he knows full well the city attorney does not set policy. In another flyer he tries to take credit for a low crime rate and associates himself with police: “Working with our police . . . ”, yet the police officers endorsed Parkin. He claims that while serving as assistant city auditor he made “government more efficient and effective,” yet his former boss has not endorsed him. A mailer featuring a letter from Congressman Lowenthal states: “The next city attorney must be more than just a lawyer – he must be a leader who can bring people together to solve problems.” Again, the position is not that of a policymaker, which Lowenthal, a former city councilmember, should fully understand. Not once in the letter does Lowenthal refer to Johnson’s experience as an attorney. Not once.

Lowenthal Mistakes Mayoral candidate Bonnie Lowenthal continues to have missteps, including the recent mailing blunder that received statewide publicity. Her campaign staff ran a background picture of the San Diego skyline instead of Long Beach with the headline, “Getting things done in Long Beach” (see photographs of our best and worst mailers on this page). Last month, she failed to respond to part two of the four-part series of questions from the Business Journal. Another mistake by campaign staff. More recently, she showed her ignorance of how Long Beach city staffers have been taking care of potholes. In a mailer to voters she stated: “Do you have a pothole? . . . Bonnie will make sure it gets fixed within six months of her election.” Really? That means taxpayers will have to wait much, much longer under a Lowenthal administration to get it fixed. Right now, potholes are fixed in less than

The Chamber Or The Jobs PAC?

Election: Long Beach 2014

Toyota Grand Prix of Long Beach 14 AD RESER RESERVATION VATION DEADLINE: DEADLINE MARCH 26, 20 2014 ARTTWORK DEADLINE: MARCH 2 7, 20 14 ARTWORK 27, 2014

ISSUE ISSUE D DA DATE: ATE: APRIL 1, 20 2014 14

Real Estate Quarterly

Earth Day 2014

14 AD RESER VATION DEADLINE: DEAD APRIL 9 RESERVATION 9,, 20 2014 14 AR RTWORK DEADLINE: APRIL 10 ARTWORK 10,, 20 2014

IS SUE D DA ATE: APRIL 15, 20 14 ISSUE DATE: 2014

ADVERTISE IN THE

Call Martha at 562/988-1222 to reserve your ad space

Mayoral candidate Damon Dunn was endorsed by the Long Beach Jobs Political Action Committee, not the Long Beach Area Chamber of Commerce as he shows on this mailer. (The red circle is provided by the Business Journal.) The Chamber organization cannot endorse candidates for political office. Same goes for the mailer below by 3rd District city council candidate Suzie Price, which includes a statement from the chair of the chamber board of directors.


1_LBBJ_Mar18_SectionA_LBBJ MASTER LAYOUT 3/16/14 8:03 PM Page 21

POLITICALWIRE March 18-31, 2014 30 days – three to four weeks for residential streets, once a call is made to the city; one to two weeks for major thoroughfares. There’s considerable talk around town that Lowenthal is out of touch because she is more focused on statewide than local issues. There’s that old saying that a politician is only as good as the people she surrounds herself with. If she’s elected, she certainly needs people around her who know what’s going on, that do their homework and are responsive in a timely matter. With Lowenthal expected to be the top vote getter – due to her name – it will be interesting to see how she fares in the runoff. Her vote to eliminate redevelopment has hurt many parts of Long Beach, especially on the west and north sides of the city.

Long Beach Jobs PAC Endorsements Draw Concerns Over Use Of Name We can be critical of the business sector, too. The Long Beach Area Chamber of Commerce has become a big target this election season. First, the Chamber Political Action Committee (PAC) – a group consisting of about 15 individuals – was criticized for endorsing in the mayoral race seven months before the filing period had closed. It became common knowledge that a handful of people pushed one candidate. Fine, that was their choice and right to do, but the PAC’s process did not sit well with many in the business community. Now the problem is that the chamber may be coming under the scrutiny of the California Fair Political Practices Commission (a rumor we heard) for not clearly distinguishing between the official chamber organization and the Chamber PAC – officially known as the Long Beach Jobs PAC. The chamber organization of some 1,000 members cannot endorse candidates or provide donations to candidates. The PAC is a separate group whose money cannot be co-mingled with the official chamber organization. The PAC may endorse and give money. Yet, on several mailings, candidates have used the chamber organization name and masthead. The Business Journal has received numerous complaints from chamber members, several of whom said the organization is too political and not focused on business issues. Further confusing the matter is that many of the same people who serve on the PAC serve on the chamber board of directors, including the chair of the chamber board and its president and CEO. There should be a more definitive separation among the groups and the people involved. Mayoral candidate Damon Dunn used the official chamber organization name and masthead in a mailer. Third District city council candidate Suzie Price also used the name inappropriately (see photos at left, on opposite page). These mailers do not say Long Beach Jobs PAC, but they do say Long Beach Area Chamber of Commerce. A good comparison is the Long Beach Police Officers Association. Its endorsements do not say Long Beach Police Department. That would be illegal.

Another Question For The Chamber We find it interesting that the Long Beach Jobs PAC endorsed public sector employees in the 3rd and 5th City Council Districts when there are small businesspeople running in both districts.

Long Beach Business Journal 21 In the 5th District, Joe Luyben is a longtime successful entrepreneur who has lived in the district his entire life. Candidates Thomas Sutfin and Carl Kemp also claim business experience on their resumes. Stacy Mungo, the PAC’s endorsement, is a budget manager for Los Angeles County. In the 3rd District, both Stephen Bello and Jack Rosenberg are commercial real estate brokers (the city is constantly involved in real estate transactions, so it would be an asset to have an individual with real estate experience on the city council), yet the Chamber PAC went with Suzie Price, an Orange County deputy district attorney who entered the race late. Nothing against Mungo and Price. Both are very bright, very articulate individuals, but it is puzzling that a business organization would not support those who may be more agreeable with chamber positions or issues impacting business. Price, for example, opposes contracting-out more city services, which is contrary to a chamber of commerce position (check on this and related stances for Price and Mungo, and other candidates, on Pages 16 and 17 of this edition of the Business Journal).

Mayoral Candidate Doug Otto Continues To Issue “Vision Papers” Most people running for public office are unwilling to put their ideas or positions on issues in writing. They don’t want to be locked in or promise something they have to deliver if they win. Of course, some candidates may not have any ideas. Not so for mayoral candidate and local attorney Doug Otto. Last week he issued his seventh vision paper – he calls them “Vision Statements For Long Beach 2025.” His latest one is on the arts. So far, Otto has issued his ideas, in detail and in writing for all to see, on the following: • Make Public Safety Priority Number One; • Grow Our Economy; • Make City Hall Work; • Invest In Livability; • Support Our Neighborhoods; • Strengthen And Leverage Our Educational Infrastructure; and • Double Down On The Arts, Culture And The Creative Economy To read his vision statements, go to: www.dougottoforlongbeach.com. In his introduction, Otto writes: “Change is coming to Long Beach. By July, we will have a new mayor and many new councilmembers. We need to make this change a positive one by marshalling all our ingenuity, talents and resources to secure a successful future for Long Beach. We need to create and implement a 21st Century vision for Long Beach based upon the precept of sustainability by which our actions must be judged in the future. . . . “For our city to be successful, it must be a prosperous city. It must be a city driven by community, commerce and culture. It must be a city that embraces change and honors tradition. It must be a city with more jobs and more businesses, safe streets, great schools, thriving neighborhoods, vibrant culture and a healthy and sustainable environment.” It’s an impressive piece of work and a pretty good blueprint for the next mayor to follow – no matter who it is. ■


1_LBBJ_Mar18_SectionA_LBBJ MASTER LAYOUT 3/16/14 8:03 PM Page 22

GRAND PRIX HIGHLIGHTS 22 Long Beach Business Journal

March 18-31, 2014

2013 winner Takuma Sato crossing the finish line (Ken Slute photograph) and celebrating (Steve Dawson photograph)

Celebrating 40 Years (Continued From Page 1)

Long Beach winner Jimmy Vasser, would become KV Racing Technology. The stage was set for the 2008 season. The first newly merged IndyCar Series race would be held in St. Petersburg, Florida. followed by the Toyota Grand Prix of Long Beach. But there was a major problem: a scheduling conflict. The Toyota Grand Prix Champ Car race at Long Beach and the IndyCar race at Twin Ring Motegi, Japan, were scheduled for the same weekend. And, neither race could change its date. Problem solved. IndyCar boss Tony George and Kevin Kalkhoven and Gerald Forsythe, former co-owners of the Champ car series, simply agreed to stage an unprecedented “split weekend” of races at Twin Ring Motegi and Long Beach. All IndyCar drivers would compete in Japan and all ex-Champ Car drivers at Long Beach, with both races and driver points counting toward the IndyCar Championship. Champ Car drivers would drive their already-prepped turbocharged Panoz-Cosworth cars at Long Beach. But even before the Champ Cars took the green flag for the last time, more racing history was being made more than 5,000 miles and 16 hours time difference away. Danica Patrick, who four years earlier had impressed by qualifying 4th, leading the race and finishing 4th at the Indianapolis 500, had won the IndyCar race at Motegi, making her the first woman to win a top-tier IndyCar or NASCAR race and becoming news-flash fodder across the nation. Soon after her race, Patrick had hopped on a flight and came to Long Beach where, tired and hungry, she was mobbed by the media even while the Champ Car drivers were being strapped into their cars for qualifying. The distraction didn’t faze Australia’s Will Power. Starting fourth in a standing start, he powered his Aussie VineyardsTeam Australia car past polesitter Justin Wilson in Turn One and never looked back, leading all but two laps and cruising to a five-second win.

2010 race action (Scott Grasso photograph)

In Victory Lane, fully aware of the moment, he said, “It’s an honor to win the last Champ Car race.” The real start of the IndyCar era at the 2009 Toyota Grand Prix of Long Beach was like old home week, welcoming back many of the popular drivers like Helio Castroneves, Tony Kanaan and Dario Franchitti – and team owners like Roger Penske and Chip Ganassi – from the race’s CART and Champ Car days. Franchitti enjoyed his return the most. After a not-so-successful year in NASCAR’s Sprint Cup ranks, Franchitti and his Target Chip Ganassi team used near-perfect pit strategy to carve out a 3.3second win over polesitter Will Power. Franchitti went on to win four more races, clinching the IndyCar championship with a win at the season finale at Homestead, Florida. Ryan Hunter-Reay took the checkered flag in 2010, driving the Team IZOD car for Michael Andretti. Ironically, it was the first time an American driver had won the Toyota Grand Prix of Long Beach since 2002, when the winner was . . . Michael Andretti! The 2011 race featured three female drivers – Ana Beatriz, Danica Patrick and Simona de Silvestro – in the starting field. Of the three, Patrick finished highest – 7th place – behind race winner Mike Conway. It was a particularly satisfying win for Conway, who had missed most of the 2010 season with injuries suffered at the Indianapolis 500. Conway finished six seconds ahead of Ryan Briscoe, with Franchitti third. Will Power notched his second career Toyota Grand Prix of Long Beach win on the city streets in 2012, his Team Penske car just edging Simon Pagenaud for the

Above: 2010 winner, Ryan Hunter-Reay (Howard Anderson photograph)

2009 winner, Dario Franchitti (Brian Brantley photograph)

victory. Power went on to score two more victories and just missing winning the IndyCar championship, losing to Ryan Hunter-Reay by a measly three points. And, last year, the name of racing icon A. J. Foyt once again made racing headlines, as an A. J. Foyt Enterprises car piloted by Takuma Sato won the 39th Toyota Grand Prix of Long Beach. It was the first time a Japanese driver had won an IndyCar Series race – or made the podium at Long Beach – and Sato returns to defend his crown April 11-13. In the race's storied history, Sato was the 24th foreign-born driver to win on the streets of Long Beach, with 15 races won by American-born drivers. Appropriately, among the many special festivities surrounding the upcoming 40th

race weekend is an extensive historical display – “Four Decades of Racing in the Streets” – that will be available for race ticketholders to browse on the Pine Avenue side of the Convention Center’s interior. Multiple driver autograph session, including Mario Andretti and many other great drivers from the race’s past, will be another special attraction along with many of the cars that raced the city streets over the past 39 years. And, as usual, race fans will enjoy three days of hot racing and cool family fun: seven racing series, Lifestyle Expo and Family Fun Zone, two free concerts and all the many extras that – for 40 straight years – have made the Toyota Grand Prix America’s #1 Street Race. ■ (April 1 LBBJ includes special insert on the 40th Toyota Grand Prix of Long Beach)


1_LBBJ_Mar18_SectionA_LBBJ MASTER LAYOUT 3/16/14 8:03 PM Page 23

FOCUS ON NONPROFITS March 18-31, 2014

Long Beach Business Journal 23

Nonprofits Increase Volunteer Base Through Engagement, Meaningful Experience ■ By TIFFANY L. RIDER Editor Jordan Joseph Aguirre has always had a passion for the ocean. As a young boy, his family would take him to the Aquarium of the Pacific – a place full of wonder and amazement for Aguirre. “I used to get so excited that I couldn’t sleep the night before a visit,” Aguirre, who grew up in Orange County, told the Business Journal. “When I finally got there, I was always asking questions of the volunteers. I can picture myself as the little ones who are now asking me questions.” Aguirre is an education volunteer for the Aquarium. He started volunteering there a month ago after discovering online information about the Long Beach-based attraction’s volunteer opportunities. “I teach people about the marine life at the Aquarium . . . and show the little kids the experience of touching animals they can’t usually touch out in the ocean,” he said. “I have had a big passion for the ocean, ever since I was little. I always wanted to give back to the ocean and help out.” When asked to describe how volunteering made him feel Aguirre said, “It’s just something I can’t really explain. I love coming here every day. I love telling people

Jordan Joseph Aguirre, an education volunteer with the Aquarium of the Pacific, said he grew up visiting the Aquarium and was fascinated with touch pools like the one seen here in the North Pacific exhibit. (Photograph by the Business Journal’s Thomas McConville)

about the ocean and sharing the knowledge I have. It’s pretty much a dream come true.” That kind of volunteer experience – an engaging and meaningful one – is exactly what nonprofits should strive for, according to Jeffrey Wilcox, president and CEO of The Third Sector Company, a professional services social enterprise that provides leadership continuity pathways for nonprofits in the U.S. and Canada. “This is the voluntary sector,” Wilcox told the Business Journal. “You want to engage people so they feel like they have a vested interest, so they feel like they are part of a meaningful experience and that they’re advancing a cause.” Volunteer engagement is even more important today because in 2013 the volunteer rate hit its lowest point since the U.S. Bureau of Labor Statistics (BLS) began collecting data on the volunteer rate in 2002. The data is collected through a supplement to the BLS’s monthly Current Population Survey, an assessment of about 60,000 households that gathers information on unemployment and employment of citizens ages 16 and up. Over that 10-year period, the nations’ social landscape has changed quite a bit. The role of social media for nonprofits has (Please Continue To Page 24)


1_LBBJ_Mar18_SectionA_LBBJ MASTER LAYOUT 3/16/14 8:03 PM Page 24

FOCUS ON NONPROFITS 24 Long Beach Business Journal

March 18-31, 2014


1_LBBJ_Mar18_SectionA_LBBJ MASTER LAYOUT 3/16/14 8:04 PM Page 25

FOCUS ON NONPROFITS March 18-31, 2014

Long Beach Business Journal 25

Meagan Nadal, left, mammalogist at the Aquarium of the Pacific, prepares food for some of the animals with mammalogy volunteer Lauralee Motis. (Photograph by the Business Journal’s Thomas McConville)

Volunteers And The Nonprofit Sector (Continued From Page 23)

changed, corporate social responsibility definitions have shifted and the economy has endured the Great Recession. With so much change, it’s impossible to attribute the decline in volunteering to any one thing, Wilcox said. According to a BLS report published last month, some 62.6 million people volunteered for or through an organization at least once in the year between September 2012 and September 2013. In the same time period, volunteers spent a median of 50 hours volunteering. “Among those who volunteered, median annual hours spent on volunteer activities ranged from a low of 36 hours for those 25 to 34 years old to a high of 86 hours for those age 65 and over,” according to the report. “What’s difficult is how an organization chooses how to define how to leverage being part of the volunteer sector,” Wilcox explained. “For some, it means governance and administrative level. That’s partly due to their mission statements. They may be working with populations who are vulnerable.” Otherwise, nonprofits are built to include paid and unpaid staff to provide services. By doing so, it allows nonprofits to be viewed as a venue for bringing like-minded people together to form community, Wilcox said. Sean Devereaux is the manager of volunteer services for the Aquarium, which has around 900 active volunteers to date and between 1,400 and 1,500 annually. “They pretty much do everything that our paid employees do,” he told the Business Journal. “We have volunteers in every department except the security department. And the only reason we don’t have anyone involved there is because we don’t have anyone who is very well credentialed to be a security volunteer. But if that came to be I would do what I could to make a match.” Devereaux assumed leadership of the Aquarium’s volunteer program seven years ago at a time when the attraction

had half of the level of volunteer service it has today. One big change he made to the program was to make the onboarding process more rapid for the volunteers, helping them get placed as soon as possible. For Aguirre, it took days for him to complete the volunteer application, interview and start volunteering. Hastening the application process “has helped us grab hold of that volunteer’s (Please Continue To Page 26)


1_LBBJ_Mar18_SectionA_LBBJ MASTER LAYOUT 3/16/14 8:04 PM Page 26

FOCUS ON NONPROFITS 26 Long Beach Business Journal

March 18-31, 2014 Assistance League of Long Beach members Kathy DeSilva, left, and Jane Jackson volunteer as tour guides for the Howard Asian Art Collection at the Assistance League’s Philanthropic Center in Northeast Long Beach. Here DeSilva and Jackson give 7th grade students from Jefferson Middle School a tour as part of their world history curriculum. (Photograph by the Business Journal’s Thomas McConville)

Volunteers And The Nonprofit Sector (Continued From Page 25)

Operation School Bell, a philanthropic program of the Assistance League of Long Beach, provides backpacks full of supplies and school uniforms to local students in need. Some of the Assistance League members who volunteer with the program are pictured, from left: Karleen Nicholson, Loree Kenyon, Joyce Ricci, Nanci Gee and Marilyn Haas. (Photograph by the Business Journal’s Thomas McConville)

interest and have them get involved without being distracted by the next opportunity that’s available,” Devereaux said. “But really, our strategy is just to provide a quality volunteer experience – one that is enriched and valued by the institution.” Long Beach-based Catalyst Network of Communities created 33 different projects in 2013 that provided opportunities for some 300 volunteers to serve about 40,000 people, according to Catalyst Executive Director Eric Leocadio. He told the Business Journal that many of those projects have since branched off and are now operating independently in the community. “I think volunteering is an important way to cultivate a balance to community,” Leocadio said. “It is important to give back, whether or not you have a job or not. It’s important for us to connect with each other and find ways to give back to the community. That helps cultivate empathy. Through nonprofit organizations, that’s where they have access to people in need and have an opportunity to relate and hear stories. It contributes to the health of our community.” Rather than continuing as a fiscal sponsorship program, this year Catalyst is focusing on six core projects with about 20 volunteers. Those volunteer roles are specific, so when the organization’s “community concierge” works with potential applicants, the concierge can more accurately direct someone into the right role based on experience and the level of time commitment. “That concierge helps them along so they don’t fall through the cracks,” Leocadio said.

Fifty to 60 volunteers regularly help out at the Long Beach Gay & Lesbian Center, which started out as an entirely volunteer run organization. According to Executive Director Porter Gilberg, about 300 unduplicated volunteers do everything from administrative work to HIV testing, facilities maintenance and event planning at The Center each year. In terms of general volunteer recruitment, Gilberg said The Center gets between 10 and 15 volunteer applications a week. The Center actively recruits through graduate programs at local universities to get mental health interns and trainees, hosts service learning internships and helps place people who have court-ordered volunteer hours to complete. “Working in a nonprofit organization, volunteers are our lifeblood,” Gilberg said, and expressed disappointment in hearing that national volunteerism was at a 10-year low. “We value and appreciate our volunteers. We are a community center, so we are here for the community.” Thankfully, Long Beach has a thriving LGBTQ (lesbian, gay, bisexual, transgender, queer) community, he noted, “so we have a base of folks who are interested in getting involved in the community. We are fortunate to have a ton of volunteer support.” At the Assistance League of Long Beach, more than 900 members and a number of nonmembers volunteer their time to help run the nonprofit’s 10 philanthropic programs. The organization is run and managed by volunteers, as is the case with Assistance League chapters across the nation. The Assistance League of Long Beach, a nonprofit corporation whose mission is to (Please Continue To Page 28)


1_LBBJ_Mar18_SectionA_LBBJ MASTER LAYOUT 3/16/14 8:04 PM Page 27

A Safe And Healthy Home For Every Person Rebuild Day AP PRIL 26, 2 014 APRIL 2014

Rebuilding Together Togeth her Long Beach (R (RTLB) TLB) de develops evelops par partnerships tnerships wit within hin the community to rebuild owner-occupied owner--occupied homes and non-profit facilities for low-income residents, particularly ticularly the elderly or those with disabilities, so they may live independently par with dignity dignity, warmth y,, in war w mth and safety. safety. All services ser vices are at no cost to the recipient(s). It works because neighbors helping neighbors build safer and stronger communities.

t .POUITPGFYUFOTJWFQMBOOJOHBOEQSFQBSBUJPOMFBE .POUITPGFYUFOTJWFQMBOOJOHBOEQSFQBSBUJPOMFBE VQUPPVSTFNJBOOVBMSFCVJMEJOHEBZTIFMEUIFMBTU VQUPPVSTFNJBOOVBMSFCVJMEJOHEBZTIFMEUIFMBTU 4BUVSEBZTPG"QSJMBOE0DUPCFS 4BUVSEBZTPG"QSJMBOE0DUPCFS t t 3FCVJMEJOH5PHFUIFSJTCBTFEJOQSJODJQMFPOUIF 3FCVJMEJOH5PHFUIFSJTCBTFEJOQSJODJQMFPOUIF DPODFQUPGBOPMEGBTIJPOFECBSOSBJTJOHXJUIBT DPODFQUPGBOPMEGBTIJPOFECBSOSBJTJOHXJUIBT NBOZBTTLJMMFEBOEVOTLJMMFEWPMVOUFFST NBOZBTTLJMMFEBOEVOTLJMMFEWPMVOUFFST BTTJHOFEUPBQBSUJDVMBSQSPKFDU BTTJHOFEUPBQBSUJDVMBSQSPKFDU t t 'VOEJOHDPNFTGSPNDPSQPSBUFTQPOTPST JOEJWJEVBMT  'VOEJOHDPNFTGSPNDPSQPSBUFTQPOTPST JOEJWJEVBMT  MPDBMCVTJOFTTFT MBCPSPSHBOJ[BUJPOT GPVOEBUJPOT  MPDBMCVTJOFTTFT MBCPSPSHBOJ[BUJPOT GPVOEBUJPOT  DJWJDPSHBOJ[BUJPOTBOESFMJHJPVTHSPVQTJOUFSFTUFEJO DJWJDPSHBOJ[BUJPOTBOESFMJHJPVTHSPVQTJOUFSFTUFEJO IFMQJOHUPCVJMEBCFUUFSDPNNVOJUZ IFMQJOHUPCVJMEBCFUUFSDPNNVOJUZ t t 5IFMBSHFTUWPMVOUFFSIPNFSFIBCJMJUBUJPO 5IFMBSHFTUWPMVOUFFSIPNFSFIBCJMJUBUJPO PSHBOJ[BUJPOJO"NFSJDBXJUIBGmMJBUFTJODJUJFT PSHBOJ[BUJPOJO"NFSJDBXJUIBGmMJBUFTJODJUJFT BOEUPXOTJOBMMTUBUFT BOEUPXOTJOBMMTUBUFT tt ''PVOEFEJO 3FCVJMEJOH5PHFUIFS-POH#FBDI PVOEFEJO 3FCVJMEJOH5PHFUIFS-POH#FBDI OOPXIBTSFIBCJMJUBUFENPSFUIBOIPNFTBOE PXIBTSFIBCJMJUBUFENPSFUIBOIPNFTBOE OOPOQSPmUGBDJMJUJFTUISPVHIPVUUIF-POH#FBDI"SFB POQSPmUGBDJMJUJFTUISPVHIPVUUIF-POH#FBDI"SFB XXJUIUIFIFMQPGPWFS WPMVOUFFST5IF JUIUIFIFMQPGPWFS WPMVOUFFST5IF FFTUJNBUFENBSLFUWBMVFPGUIFMPDBMFGGPSUJTXFMM TUJNBUFENBSLFUWBMVFPGUIFMPDBMFGGPSUJTXFMM PWFSNJMMJPOTPGBS PWFSNJMMJPOTPGBS

Contributions Rebuilding Together Long Beach PO Box 3823 Long Beach, CA 90803 or www.rtlb.org

Local (562) 490-3802 National (800) 4REHAB9


1_LBBJ_Mar18_SectionA_LBBJ MASTER LAYOUT 3/16/14 8:04 PM Page 28

FOCUS ON NONPROFITS 28 Long Beach Business Journal

March 18-31, 2014

Volunteers And The Nonprofit Sector (Continued From Page 26)

create a community of volunteers who deliver philanthropic services, is preparing to take in a new member class next month, adding 40 to 45 more paid members to volunteer for the organization, according to President Bonnie Dorrans. While the organization’s members are women, Dorrans said there are many husbands and others in the community who will volunteer from time to time and have not yet become members. “Most of our new members are brought in by current members who have talked with them about what they do and why they enjoy it,” she said. “Many of our women have already had careers and want to find a new way to add value to the community.” Annette Kashiwabara, director of development for the Assistance League of Long Beach, explained that the organization’s volunteers get hands-on experience through programs like Operation School Bell, where individuals pack hundreds – sometimes thousands – of backpacks with school uniforms and supplies for local children. “That’s what a lot of people want,” Kashiwabara said. “A lot of times when a volunteer goes out into the community, they want to be busy and they like to keep active. I think Assistance League is a great example of keeping active and uti-

Behind the scenes at the Aquarium of the Pacific’s Southern California gallery, animal husbandtry volunteer Kathleen Czaia, left, helps senior aquarist Jennifer Elroy place rocks in a tank. (Photograph by the Business Journal’s Thomas McConville)

lizing volunteers’ expertise levels. The real magic of it is trying to find what fits their needs and fits our needs to provide a meaningful experience. Assistance League does a good job of that. I work with volunteers here who work harder than a lot of employees I’ve worked with in the past.” At the Pacific Battleship Center, about 70 percent of the nonprofit’s ongoing work is done by volunteers. The organiza-

tion supports the U.S.S. Iowa, a battleship now permanently docked in San Pedro and open for public tours. According to Patrick Salazar, vice president of development and communications for the nonprofit, there is an active core of about 300 volunteers with another 2,500 who have expressed interest in volunteering. Those volunteers serve in various roles to help maintain the ship – from tour guides to plumbers, carpenters, painters and more. Church groups, Harley riders, active duty naval officers, recovering addicts from organizations like Beacon House and people living with autism and other disabilities who work through Easter Seals make up just some of the volunteers at the battleship. “We determined early on that it’s in the DNA of this ship that volunteers would play an integral role in all that we do,” Salazar said. “We’ve had some volunteers literally take on entire projects like training volunteers and developing manuals and pocket guides for volunteers.” When the ship first opened to the public, the volume of work was very high and so was the number of volunteers, he explained. “What has happened is, like with every volunteer cadre, you find people who are excited but don’t want to put the time in,” he said. “Our core of 300 volunteers is steady.” To get the word out about volunteer opportunities, the organization participates in speaking engagements and sets up exhibit booths at fairs, air shows, car shows and other events. The best volunteers they get are by word of mouth, according to Salazar. “If our existing volunteers are not feeling good about their experiences here, they’re not being managed well, then they will disappear,” he explained. “The best strategy we have is word of mouth, and that means leveraging the experience of our existing volunteers.” All volunteers and paid staff are considered crew. As a way to unify everyone involved, the organization hosts crew movie nights and potlucks. “We are all one crew,” Salazar said. “I think that philosophy has helped volunteers feel like

they’re part of something bigger. . . . What Battleship Iowa has been able to do is link itself visibly with the maritime industry of this community. People take ownership of that. If anything, we have to manage that.” At the Long Beach Rescue Mission (LBRM), volunteers take ownership of an underserved population of our community – the homeless. According to Mario Galeano, volunteer program supervisor with LBRM, the organization has approximately 900 active volunteers working just about every month. The entire volunteer database at LBRM includes 1,637 people – many of whom volunteer for special events throughout the year, or just stop in to help every once in a while. Volunteers help in a variety of ways, including setting up, preparing, serving and cleaning up every meal the LBRM serves daily. Volunteers also sort and organize food donations, manage special events and community fairs, provide mentoring and counseling services, offer guidance for improving health and nutrition, conducting Bible studies, arts classes, financial education – the list goes on. “We try to make every volunteer experience the same when they walk through our doors and we make sure they know how much we appreciate them,” Galeano said in an e-mail. “We understand that we cannot provide the level of service that we do without the help of our wonderful volunteers. We know that if we can manage to impress a volunteer, that person will return and bring friends and family.” Ronda Dunham began volunteering with the LBRM nearly eight years ago, starting after just one hour at a Saturday service day event. “While I was there I learned a lot about what the mission was about,” Dunham told the Business Journal. “You always think that at a rescue mission, people on the street get a bath and a bed and some food. They’re really more about restoration of the person. That really intrigued me.” Before she attended that service day event, Dunham, a manager with The Boeing Company, said she had spent years thinking about how she wanted to give back. “I didn’t know what to do,” she said. “It’s hard to get started and figure that out.” But once she did, she was hooked. Dunham has been volunteering on Wednesday nights at the LBRM’s kitchen ever since. She is the lead for dinner service and works with about eight regular volunteers. “It just became a place that became family in a way,” she said, reflecting on how her volunteer experience has changed her life. “It’s become a part of my community.” ■ GET ALL THREE FOR FREE . . .

DIGITAL DIGIT TAL

edition

W WWW.LBBUSINESSJOURNAL.COM WW.LBBUSINESSJOURNAL.COM


1_LBBJ_Mar18_SectionA_LBBJ MASTER LAYOUT 3/16/14 8:04 PM Page 29

FOCUS ON NONPROFITS March 18-31, 2014

Long Beach Business Journal 29

Social Impact Partnership Bill Would Require Participating Nonprofits To Receive ‘Pay For Success’ ■ By TIFFANY L. RIDER Editor A bill allowing the state to partner with nonprofits and private sector groups to provide needed community services is making its way through the state legislature. Senate Bill 593, authored by State Sen. Ted Lieu (D-Torrance), would create the first social impact partnership program in the state. The program would serve as a financing mechanism modeled after similar programs in Ohio, Massachusetts and New York. If the bill becomes law, it would provide a means for the state to collect federal dollars and kick start the program. The program creates a path for so-called “pay for success contracts” or “social impact partnerships.” These contracts would be entered into by a nonprofit, a private funding source and the state government once they are submitted and vetted by the California Office of Planning and Research. Under this type of contract, more risk is placed on nonprofits to ensure that the government only pays for actual benefits to the communities served. SB 593 would require the state’s planning and research office to submit at least three proposed social impact partnership contracts to the legislature’s budget committee. If granted approval, the office, on behalf of the state government, would then enter into a contract with outlined performance goals, specific budget savings and a method of independent evaluation of the services rendered. This data-driven approach to funding services needed for the community creates a new dynamic in the relationships between investors, nonprofits, governments and intermediary organizations that facilitate partnerships. If the goals outlined in these contracts are met, the state would be required to repay the intermediary organization in the contract – with interest. If they are not met, the state would no longer be accountable for refunding the project. According to Lieu, the bill pushes participating nonprofits to increase accountability and efficiency. “The concept is that as governmental resources continue to shrink, we need to look at other areas for support where the government doesn’t provide services or doesn’t do it well,” Lieu told the Business Journal. “This gives nonprofits that are doing good work the potential of getting state funding to continue their work and expand it.” GRACE (Gather Respect Advocate Change Engage), a nonprofit charity focused on child poverty, is a sponsor of the bill. Supporters of the bill include the California Hospital Association (CHA), which represents nearly 400 hospitals and health systems across the state, as well as the Los Angeles Chamber of Commerce and the Los Angeles Junior Chamber. According to a letter of support for SB 593 addressed to Sen. Kevin de León from Barbara Glasser, senior legislative advocate for CHA, “CHA is in support of the

legislation as it provides an opportunity for California to . . . address chronic homelessness and improvement of health outcomes in underserved populations.” Social impact partnership programs have only been growing in popularity, domestically and internationally. Both New York State and the City of New York set up social impact partnership programs in 2012 focused on recidivism reduction and prisoner rehabilitation, respectively.

Massachusetts set up a program that same year to reduce juvenile recidivism. The program was launched under the name “Social Innovation Financing” and is similar to the pay for success model. And, last summer, the U.S. Department of Labor spent $24 million to fund social impact partnership pilot programs across the nation. As part of the fiscal year 2014 budget, (Please Continue To Page 30)

Be a child’s Super Hero, be a Foster Parent! Join our team! Foster Parent Orientation every week. Monthly compensation per child Social Worker support available 24/7 For more information, call 1-800-945-KIDS Foster parents are needed in Los Angeles, Orange, San Bernardino, Riverside and Kern counties.

Foster Family Network 4223 E. Anaheim St. Long Beach 90804

Behavioral Health Services BHS provides mental health services to children from infancy to young adulthood. Our research-based practices have proven to be effective in diminishing and/or eliminating emotional and behavioral symptoms that interfere with children’s functioning at home, in school and in their community. BHS services are provided at no cost to Medi-Cal eligible children.

ChildNet Youth and Family Services Helping vulnerable children and families

For more information, call 562-490-7600. www.childnet.net


1_LBBJ_Mar18_SectionA_LBBJ MASTER LAYOUT 3/16/14 8:04 PM Page 30

FOCUS ON NONPROFITS 30 Long Beach Business Journal

March 18-31, 2014

“The concept is that as governmental resources continue to shrink, we need to look at other areas for support where the government doesn’t provide services or doesn’t do it well. This gives nonprofits that are doing good work the potential of getting state funding to continue their work and expand it.” State Sen. Ted Lieu (D-Torrance) (Continued From Page 29)

the Obama Administration has allocated $500 million to expand social impact partnerships. If passed, Sen. Lieu’s bill would allow California access to those funds. That funding could support needed services in Los Angeles County, according to L.A. County Supervisor Don Knabe. Knabe introduced a proposal to the five-member board last year to have staff explore social impact bonds as opportunities for programs like health services and those at the county jail facilities. These programs could impact homelessness, recidivism and potentially help alleviate reliance on emergency room use, Knabe told the Business Journal. “We’re all going to be, and continue to be, in very tight budgets,” Knabe said. “And we need to look at all innovative financing models that we can look at.” The board’s staff is still looking at contracting and financing requirements – what is needed, a template design for each county department and appropriate use for social impact bonds. Social impact partnership programs first came to Knabe’s attention while visiting with Michael Bloomberg during Bloomberg’s final term as mayor of New York City. Global investment firm

Goldman Sachs, Knabe said, originally financed the program there. “They really backed out after a year after they found out how hard it is to validate any progress and that the return would be so small,” Knabe said of Goldman Sachs. “So they reduced their amount. Bloomberg, who is very wealthy, his foundation stepped in and did a lot of the financial backing. So this piece with the federal government, that would help alleviate that problem on a publicprivate sector kind of opportunity. SB 593 puts us in a position to access those dollars.” Though the labor intensive data collection that must occur to ensure social impact program contracts have been met is a big hurdle, what happened in New York City is an example of the most difficult piece of social impact partnership programs right now, Knabe said. “The original problem is finding some private sector person that wants to accept a reasonable rate of interest and the ability to make money, but it may take three or four years,” he said. “It may be a small return, but it’s really a social investment.” SB 593 has been assigned, and referral to the assembly’s policy committee is expected later this month. ■

Legislation Would Shine Light On Nonprofit Political Campaign ‘Dark Money’ ■ By TIFFANY L. RIDER Editor Pending passage of two senate bills, California voters could see the names of billionaires on printed and broadcasted political campaign materials instead of fluffy nonprofit titles like Californians for Happiness and Sunshine. The names of major donors whose contributions are used by nonprofit 501c4 groups and other political entities in California to support or oppose statewide ballot propositions would be further illuminated with the passage of two bills: Senate Bill 52, co-authored by Sen. Mark Leno (D-San Francisco) and Sen. Jerry Hill (DSan Mateo); and Senate Bill 27, authored by Sen. Lou Correa (D-Santa Ana). SB 27 was approved by the California State Assembly and could be voted on in the senate this week. SB 52, which passed the senate last year, has been amended in the assembly and awaits a hearing with the assembly elections committee this summer. According to Senator Leno’s office, SB 52 is similar, but not identical, to Assembly Bill 1648, which was carried by

Women’s Health Center At St. Mary Receives Accreditation For Mammography Unit The St. Mary Sabina Sullivan Women’s Health Center/Vincent Esposito, MD Imaging Center recently received accreditation by the American College of Radiology for a new mammography unit. Since 2001, the Imaging Center, on the campus of St. Mary Medical Center in Downtown Long Beach, has provided 4,460 no-cost services to 2,780 women and men who could not afford to pay, according to a hospital spokesperson. Of the free diagnostic services, 30 cancers were detected and patients were treated. The Los Angeles Affiliate of the Susan G. Komen Foundation has granted more than $360,000 over the past 12 years to support the work of the Imaging Center. In 2013, a $100,000 grant from The Ahmanson Foundation helped to purchase the Siemens Mammomat Inspiration eco mammography unit (pictured). Celebrating the accreditation are, from left: Pamela Nicholson, mammography technologist; Lillian Herrera, manager; Kathryn Morgan, mammography technologist; Bassam Zahlan, M.D.-radiologist; and Tiffany Cantrell, director of grants and contracts for St. Mary. (Photograph by the Business Journal’s Thomas McConville)

Assemblymember Julia Brownley in 2012. The bill, called the DISCLOSE (Democracy Is Strengthened by Casting Light On Spending in Elections) Act, passed the assembly but was held in the senate. Both bills were authored in response to last year’s landmark settlement from two 501c4s. The nonprofit designation 501c4 allowed these groups to contribute to the opposition of Proposition 30 (a temporary tax for public education) and provide support for Proposition 32 (to prohibit employee union dues from being used for political purposes) without disclosing where the money came from. That $11 million financial contribution arrived in the final days of the 2012 election. This type of contribution is known as “dark money.” Darren Chesin, chief consultant to the California Senate Committee on Elections and Constitutional Amendments, explained: “In this instance, money was contributed to a series of nonprofit corporations – one initially got the money and then it contributed to another nonprofit, and another, to finally one set up in California legitimately to support and oppose ballot measures.” Under the constraints of the state’s Political Reform Act of 1974, there was no way to find out the original source of the funding used in California, he said. Under today’s political campaign law, nonprofits operate under what’s called the “one bite of the apple” rule, according to Chesin. A nonprofit it is allowed to use the money it takes in for political purposes only once prior to scrutiny. “We don’t make you disclose the money the first go around because the people who gave it to you would have no way of knowing you would be using it for that purpose,” he said. “You write a check with the expectation of anonymity and not for political purposes.” Though the state lets it slide the first time, it’s essentially a warning to contributors that they will have to be disclosed next time around “because they took their first bite of the political apple,” he said. In the case of Americans for Responsible Leadership and the Center to Protect Patient Rights, Chesin said the amount of money involved and how it was moved from one nonprofit to another made it “obvious it was for political purposes.” The creation and disappearance of 501c4 nonprofits has become more prevalent for the sole purpose of making big contributions to political campaigns and then never being heard from again. The nonprofits exist, in theory, to educate the public on issues and are required to only report who is donating money to the Internal Revenue Service. Many legitimate 501c4s serve this purpose, as do traditional 501c3 nonprofits that have formed political action committees (PACs). If contributors donate more than $100 to nonprofit PACs, the law requires that their names must be disclosed. What led to the introduction of SB 27 and SB 52 was the result of a lawsuit filed by California Attorney General Kamala Harris and the state’s Fair Political Practices Commission (FPPC) against the two California-based 501c4s involved – the Center to Protect Patient Rights and Americans for Responsible Leadership.


1_LBBJ_Mar18_SectionA_LBBJ MASTER LAYOUT 3/16/14 8:04 PM Page 31

FOCUS ON NONPROFITS March 18-31, 2014 The nonprofits ended up paying a $1 million settlement in the case for not disclosing that the $11 måillion contributed in the 2012 election came from billionaire industrialists David and Charles G. Koch’s company, Koch Brothers Network. Both pieces of legislation would, if passed, amend the Political Reform Act of 1974 in different ways. The new information – true sources of contributions – that SB 27 requires would be included in the disclosures SB 52 requires for political campaign ads. SB 52, known as the California DISCLOSE Act, would require the three largest funders of a political ad be prominently identified on a print ad and for at least five seconds at the beginning of a broadcast ad. Ads include billboards, web ads, radio spots, television ads, mass mailers and websites. “The only way to stop this covert financing of campaigns is to require the simple and clear disclosure of the top three funders of political ads so voters can make well-informed decisions at the ballot box,” Senator Leno said in a statement. Those funders are to be revealed under SB 27’s provision that multi-purpose organizations that contribute to political campaigns must disclose their funders if they spend at least $50,000 “on the first bite of the apple” or more than $100,000 in a four-year period. Multi-purpose organizations include 501c4 nonprofits, fraternal organizations, out-of-state organizations, trade organizations and essentially any group that wouldn’t otherwise fit under a political committee and that could gather money and then turn around and spend it. While all political committees have to file documents with the California Secretary of State’s Office, SB 27 would also require that committees formed to support or oppose a ballot proposition – that spend at least $1 million – disclose their top 10 contributors to the FPPC. That disclosure would appear on the commission website and be updated regularly, according to Chesin. “Voters rely heavily on the identity of who is supporting or opposing a ballot measure when they are deciding if they support or oppose it,” Chesin said. “Certain organizations that they trust, that they think are doing God’s work here, they will support. When you know who is really behind something, then you have a better idea of what it’s about.” Trent Lange, president of the California Clean Money Campaign, agreed. “The flood of secret money in campaigns and political ads that mislead voters about who funds them illustrate why we need SB 27 and SB 52,” Lange told the Business Journal. The top three donors to his nonprofit last year were: William Forthman, a retired philosophy professor from California State University, Northridge who is on the nonprofit’s board of directors; the Orange County Community Foundation; and the Ted and Rita Williams Foundation. They each gave less than $10,000. “Passing SB 27 is crucial to closing the loopholes that let billionaires and other special interests hide behind ‘dark money’ non-profits,” Lange said. “Then we need to pass SB 52, the California DISCLOSE Act, to make sure that political ads must use the

Long Beach Business Journal 31 information unveiled by SB 27 to show who really pays for them by clearly listing their top three original funders. Together they will make sure voters always know who is trying to buy their votes.” ■

News In Brief Free Nonprofit Financial Conference Friday: Leveraging Capital, Minimizing Tax Burden The California Association of Nonprofits, in partnership with the California Board of Equalization (BOE) Chairman Jerome E. Horton, host “Nonprofit Financial Conference – Building Financial Capacity for Change” on March 21. This free event includes information for nonprofit organizations about tax credits, refunds and business loan assistance available, as well as a seminar on how to minimize tax burdens and leverage both traditional and nontraditional capital. Elected representatives, including Assemblymember Bonnie Lowenthal, Sen. Ted Lieu, State Treasurer Bill Lockyer, State Controller John Chiang and others, are conference guests and will engage attendees in learning and capitalizing on opportunities for nonprofits. “California has the highest poverty rate in the nation,” Horton said in a statement. “Our goal is to educate California nonprofit leaders about the millions [of dollars] in resources and tax credits that are available to help nonprofit organizations reduce the rate of poverty in California.” The conference is being held from 8:30 a.m. to 4:30 p.m. at El Camino College in the Marsee Auditorium, located at 16007 Crenshaw Blvd. in Torrance. Register online at www.boe.ca.gov/sutax/nonprofitsched.htm or by calling 888/847-9652.

St. Mary Medical Center Receives $125,000 Healthy Harbor Grant The Harbor Community Benefit Foundation recently awarded St. Mary Medical Center a $125,000 grant to establish respiratory and pulmonary health services for the community of Wilmington. The hospital is using the funding to offer services one day a week for 50 weeks through its medical mobile clinic, staffed with a respiratory therapist, nurse practitioner, social worker and case manager. Services are being provided to low-income and underserved residents of Wilmington suffering from asthma and other respiratory illnesses. Through the mobile clinic, those residents have access to screening, testing, physician referrals and assistance with insurance enrollment. “We have a long-standing relationship in the community, providing screenings for respiratory and heart related disorders, and wraparound services to the people of greater Long Beach,” Nancy Johnson, who is in charge of the mobile clinic at St. Mary Medical Center, said in a statement. “This grant will help us continue our mission and extend healthcare specifically to people in Wilmington.” For more information on services, including those provided through the mobile clinic, visit www.stmarymedicalcenter.org. ■ – Tiffany L. Rider, Editor

Nonprofit Leadership “Only 62% of nonprofit board members feel adequately informed about their roles and responsibilities.” BoardSource Nonprofit Governance Index 2012

Since 2002, The Third Sector Company has been a national leader in helping nonprofit organization with services and programs that promote leadership continuity through Board Chairs Academy, Succession Planning, Interim Executive Management, Executive Performance Planning and Review, and Board Training and Facilitation. Over the past 12 years, we are very proud to have been selected by the following outstanding Long Beach nonprofit organizations, in addition to over 300 other organizations throughout the United States and Canada, to be of service. We thank our hometown customers and look forward to earning your continued business. Community Hospital Foundation of Long Beach Leadership Long Beach Comprehensive Child Development Long Beach AIDS Foundation Boys and Girls Club of Long Beach Long Beach Community Foundation Downtown Long Beach Associates Long Beach Day Nursery

Why not see what the Third Sector Company team could do to help you advance a continuity of leadership for your nonprofit organization?

Family Service of Long Beach Long Beach Symphony Orchestra Gay and Lesbian Community Center Musical Theatre West Healthy Kids Coalition of Long Beach Rancho Los Cerritos Foundation Westerly School

www.thirdsectorcompany.com concierge@thirdsectorcompany.com (562) 484-8281


1_LBBJ_Mar18_SectionA_LBBJ MASTER LAYOUT 3/16/14 8:04 PM Page 32


March 18-31, 2014 Section A