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lbbusinessjournal.com
September 2-15, 2014
Highest Paid Long Beach City Employees Position
Base Salary As Of Department August 1, 2014
Executive Director-Harbor . . . . . . . . . . . . . . .Harbor . . . . . . . . . . . . . . . . . . .$351,201 City Attorney . . . . . . . . . . . . . . . . . . . . . . . . .Law . . . . . . . . . . . . . . . . . . . . .$270,771 City Manager* . . . . . . . . . . . . . . . . . . . . . . . .City Manager . . . . . . . . . . . . . .$260,849 General Manager . . . . . . . . . . . . . . . . . . . . . .Water . . . . . . . . . . . . . . . . . . . .$256,408 Assistant City Manager . . . . . . . . . . . . . . . . .City Manager . . . . . . . . . . . . . .$246,252 Chief of Police . . . . . . . . . . . . . . . . . . . . . . . .Police . . . . . . . . . . . . . . . . . . . .$243,039 Fire Chief . . . . . . . . . . . . . . . . . . . . . . . . . . . .Fire . . . . . . . . . . . . . . . . . . . . . .$226,240 Assistant Executive Director-Harbor . . . . . . . .Harbor . . . . . . . . . . . . . . . . . . .$222,763 Director-Long Beach Gas & Oil . . . . . . . . . . .LB Gas & Oil . . . . . . . . . . . . . .$216,055 Assistant General Manager . . . . . . . . . . . . . .Water . . . . . . . . . . . . . . . . . . . .$215,053 Assistant City Attorney . . . . . . . . . . . . . . . . . .Law . . . . . . . . . . . . . . . . . . . . .$213,586 Managing Director . . . . . . . . . . . . . . . . . . . .Harbor . . . . . . . . . . . . . . . . . . .$212,943 City Prosecutor . . . . . . . . . . . . . . . . . . . . . . .City Prosecutor . . . . . . . . . . . .$211,795 Director-Development Services . . . . . . . . . . .Development Services . . . . . . .$209,985 Director-Parks, Recreation & Marine . . . . . . .Parks, Recreation & Marine . . .$204,239 Director-Public Works . . . . . . . . . . . . . . . . . .Public Works . . . . . . . . . . . . . .$204,239 Director-Financial Management . . . . . . . . . . .Financial Management . . . . . . .$204,204 Assistant City Attorney . . . . . . . . . . . . . . . . . .Law . . . . . . . . . . . . . . . . . . . . .$202,728 City Auditor . . . . . . . . . . . . . . . . . . . . . . . . . .Auditor . . . . . . . . . . . . . . . . . . .$201,464 Managing Director . . . . . . . . . . . . . . . . . . . . .Harbor . . . . . . . . . . . . . . . . . . .$198,911 Director of Business Development . . . . . . . . .Public Works . . . . . . . . . . . . . .$196,248 Director of Health & Human Services . . . . . .Health . . . . . . . . . . . . . . . . . . . .$194,250 Director-Human Resources . . . . . . . . . . . . . .Human Resources . . . . . . . . . .$188,701 Managing Director . . . . . . . . . . . . . . . . . . . . .Harbor . . . . . . . . . . . . . . . . . . .$185,637 Deputy City Manager . . . . . . . . . . . . . . . . . . .City Manager . . . . . . . . . . . . . .$184,743 Principal Deputy City Attorney . . . . . . . . . . . .Law . . . . . . . . . . . . . . . . . . . . .$184,299 Deputy Chief of Police (3 positions) . . . . . . .Police . . . . . . . . . . . . . . . . . . . .$183,470 Deputy General Manager-Business . . . . . . . .Water . . . . . . . . . . . . . . . . . . . .$182,773 Director Technology Services . . . . . . . . . . . .Technology Services . . . . . . . .$180,563 City Health Officer . . . . . . . . . . . . . . . . . . . . .Health . . . . . . . . . . . . . . . . . . . .$177,451 Asst Managing Dir-Eng Design/Maintenance .Harbor . . . . . . . . . . . . . . . . . . .$175,602 Director of Library Services . . . . . . . . . . . . . .Library . . . . . . . . . . . . . . . . . . .$175,381 *City manager’s salary set by city council. Source: City of Long Beach
The ‘$100,000 Club’ City Employee Salaries Spike During Past Year As Contracts Take Effect ■ By GEORGE ECONOMIDES Publisher s of August 1, more than A 25 percent of the 4,125 permanent, full-time employees working for the City of Long Beach receive a base salary of $100,000 or more, with six in 10 of those employees working in the police or fire departments. Since 2009, the number of city employees joining the “100,000 Club” – a term the Business Journal began using in the late 1990s to examine city salaries – has doubled. In the past year, club membership jumped by 14 percent. The most recent spike is due primarily to the negotiated raises for management, engineers, confidential employees and others, most of whom had not received a pay raise in five or six years. The number of club members is expected to increase again on
Ethnic Disparity ReThinking Greater Long Beach Report Could Help Develop Solutions For Problems Facing The City ■ By BRANDON FERGUSON Staff Writer n July, the community-based think tank ReThinking Greater Long Beach released its report on ethnic disparities in Long Beach. While the authors say the data, culled from the U.S. Bureau of Census, California Department of Education and local sources, reveal no real surprises, the findings are stark – even as the white population in Long Beach has significantly
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decreased over the years and the Latino population has increased, the prosperity level between the groups remains lopsided in favor of whites. The data also shows that the African American population, is struggling to achieve the same prosperity as whites. Among the report’s key findings: African American and Latino students are more likely to drop out of high school than are white or Asian students. Fortyfour percent of adult Latinos do not have a high school education
Long Beach Business Journal 2599 E. 28th Street, Suite 212 Signal Hill, CA 90755-2139 562/988-1222 • www.lbbusinessjournal.com
compared to 11 percent of African Americans and 5 percent whites. The median family income for whites is almost twice that of African Americans and more than twice that of Latinos. The report’s authors, William Crampon and Alex Norman, are (Please Continue To Page 8)
Focus On The City’s Westside Industrial Area
PRSRT STD U.S. POSTAGE
PAID Long Beach, CA PERMIT NO. 254
Section A • Pages 25-36
October 1, but by a smaller number, when these same individuals receive a 4 percent increase – the second part of a two-step, 15 percent pay raise approved by the city council a year ago. October 1 marks the city’s new budget year. But the pay increases don’t fatten employee wallets as much as some readers might think. Like police, fire and other employee groups before them that received increases, the managers and others agreed to pay their full share of the employee portion of pension costs. In fact, the savings in pension costs are huge. Other city employees received pay increases in the past year due to step increases, skill pay or merit increases. The overall payroll of city employees rose about $9.2 million in the past year. Let’s dig a little deeper into some of these areas.
$100,000 Club Continues To Add Members Total City % Who Are Year Employees Club Members 2014 5,322 19.69% 5,268 17.48% 2013 2012 5,393 15.98% 2011 5,569 10.65% 2010 5,742 10.00% 2009 5,822 9.95% Source: Calculated by the Long Beach Business Journal from data supplied by the City of Long Beach. Total city employees includes everyone who received a paycheck, including part-timers, on August 1 of each year. The percentage of “Club Members” is considerably higher when examining full-time employees only. Currently, more than 25% of full-time city employees receive a base salary of $100,000 or more.
Corporate Presence And 1st Annual Q&A With Mayor Garcia
Pension Costs, Savings The recession of 2007 brought extra scrutiny by elected officials – especially then-mayor Bob Foster and then-councilmember Gary DeLong – on the city’s pension obligations. (Please Continue To Page 16)
See 24-Page Section B
Destination For Meeting Planners, Long Beach Shows That Size Doesn’t Matter ■ By GEORGE ECONOMIDES Publisher espite being dwarfed by D the number of hotels and sleeping rooms found in cities like Chicago, Dallas, Los Angeles, Miami, New York, San Diego and dozens of others, Long Beach continues to impress meeting planners as a top destination for meetings, conventions, trade shows and special events. Last month, Cvent, Inc., a cloud-based enterprise event management platform with more than 12,650 customers worldwide, released its third annual list of the top 50 cities for meetings and events in the United States. Long Beach made it into the top 50 for the third consecutive year.
In fact, the city climbed four spots from last year, placing 44th – and that’s out of more than 5,000 U.S. (Please Continue To Page 12)
JetBlue Airline Confirms Its Seeking Okay For Int’l Flights ■ By SAMANTHA MEHLINGER Senior Writer etBlue’s rumored interest in J flying internationally out of the Long Beach Airport has become a reality. According to (Please Continue To Page 13)
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INSIDE THIS ISSUE 2 Long Beach Business Journal
September 2-15, 2014
3 Newswatch 4-Long Beach City Budget Update 4-City Auditor Releases Proposition H Report 5-City Council Denies Appeal On Coal Exports From Port 6-Long Beach City Hall News In Brief 8-Report: Ethnic Disparities, continued from Page 1 10-California Legislature Takes Action On “Job Killer” Bills 12-Destination Long Beach, continued from Page 1 14-International Trade News In Brief 14-Long Beach Young Professional Launched By Chamber 14-Can Sculptures Benefit Food Finders 15-U.S. HealthWorks Relocates To 100 Oceangate Building 15-Dignity Health St. Mary Trauma Recovery Center
16 City Salaries 22 Perspective Realty Views Millennials Hold Key To Housing By Terry Ross Effective Leadership Are You Tough-Minded Or Hardheaded? By Mick Ukleja HealthWise Choose Well During Open Enrollment by Dr. Jay Lee Trade And Transportation Southern California’s Role As A Major Trade Getaway By Tom O’Brien
25-36 WESTSIDE INDUSTRIAL AREA • Westside Overcomes Historical Tension With City And Keeps On Chugging • A Tale Of Two Cities • Westside Offers Diversity Of Services
Section B CORPORATE PRESENCE AND 1ST ANNUAL INTERVIEW WITH MAYOR GARCIA • Q&A With Mayor Robert Garcia • The Growing Corporate Presence In Long Beach
GET ALL THREE FOR FREE . . .
DIGITAL DIGIT TAL
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NEWSWATCH 4 Long Beach Business Journal
Long Beach Small Business And Digital Marketing A recent survey showed 97 percent of California consumers first go online to look for products and services offered by small business. To meet the needs of today’s consumers, small businesses must therefore be online and have an inteBy Dr. Scott W. Flexo grated Internet, social media Adjunct Professor of and mobile presence. How is Marketing, CSULB Long Beach Small Business doing in reaching online customers? The results of the latest CSULB-CBA Small Business Monitor survey show that many Long Beach small businesses are struggling with digital marketing. The CSULB-CBA Long Beach Small Business Monitor is a quarterly survey that provides an understanding of the challenges of Long Beach small businesses. The Survey Series is sponsored by the College of Business Administration at CSULB and supported by regional businesses and organizations. The survey results show that many Long Beach small businesses would benefit from help and support with digital marketing. Consumer demand for digital media is great. In the survey, 7 in 10 Long Beach small business owners and managers report that most of their customers use digital media to find out about their business and to see where they are located. In response, 89 percent of Long Beach small businesses have a traditional website. However, many report that their small business websites are a simple home page that is not updated regularly. Just half (51 percent) have a social media presence (such as a Facebook, Twitter or Instagram) and only 25 percent have a mobile website. Though they recognize the need, many small businesses lack the expertise and time to manage a digital marketing presence. 75 percent create and maintain their Internet presence by themselves, solicit an acquaintance or family member to do it, or assign an employee to mange it parttime. Just 25 percent hire professionals to develop and maintain a digital marketing presence. In an effort to help local businesses the Marketing Department at CSULB connects students with local businesses in need of an Internet presence. Student teams develop digital campaigns that include updated Web sites, Facebook pages and integrated Yelp, Instagram and mobile marketing. These marketing campaigns are typically the first real foray into professional digital marketing for many local small businesses. To view some of these CBA student digital marketing campaigns for Long Beach small business click this link http://csulb.edu/~sflexo/CBAStudentDMCampaigns More information on digital marketing and Long Beach small business and other topics in the Long Beach Small Business Monitor 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.) ■
September 2-15, 2014
City Council Hears Budget Reports From Three City Departments: Health, Public Works And Water ■ By BRANDON FERGUSON Staff Writer Fiscal Year 2015 (FY15) budget deliberations continued at the August 19 city council meeting. Under review were sections of the budget relating to the departments of health and human services, public works and water. A vote on the full budget could be held by the city council as early as tonight’s (September 2) meeting. During his presentation to the council, Long Beach Water Department General Manager Kevin Wattier announced a plan to raise water rates four percent each year through 2018 due to increasing rates imposed by the Metropolitan Water District (MWD) and Water Replenishment District (WRD). He explained that rates imposed by the two districts have increased 81 percent since 2008. “While we’ve absorbed in some cases these 81 percent increases in costs from MWD and WRD, our rates, including the four percent rate increase we’re proposing for 2015, have only gone up 44 percent,” Wattier said. When asked by 8th District Councilmember Al Austin to explain MWD’s reason for rate increases in light of their financial reserves, Wattier said he was unable to explain MWD’s reasoning. “So as I understand it,” Austin said, “they have a pretty robust reserve, yet they’re increasing rates?” Second District Councilmember Suja Lowenthal, who also sits on the MWD Board of Directors, said Wattier has done his best to understand the issue. “I want everybody to know that Mr. Wattier’s done a tremendous job to point out the financial irresponsibility of that, but to no avail,” Lowenthal said. In addition to increasing water rates, the department also plans to increase sewer rates four percent in FY15 and five percent each year after until FY19. Wattier told the council that the combined rate increase this year would cost the average Long Beach family an additional $2.12 a month. Combined, all three departments considered at the meeting projected expenditures totaling more than $386 million. The largest figures were given by public works, which projected expenditures of $145,519,936. Thirty-two million of that comes from the general fund and another $44 million from the department’s refuse and recycling fund. Health and human services meanwhile budgeted $117,233,226, of which only $1,008,489 comes from the general fund. The lion’s share, $76,915,056, is comprised of the housing authority fund, which relies totally on grants from the federal government. The housing fund administers a housing choice voucher program and provides assistance to lowincome, elderly and disabled residents of Long Beach for housing. Another $38 million of the health department’s budget comes from the health fund, which generates revenue from licensing fees and sales tax. City Auditor Report
During her presentation to the council, Kelly Colopy, director of the health and human services department, said her agency provides affordable housing to roughly 21,000 residents and, in the past 10 years, has reduced infant mortality by 44 percent. She explained that the department has added a homeless initiative coordinator who will attempt to reduce chronic homelessness. Colopy also noted that the department has realigned positions to help more people enroll in health insurance under the Affordable Care Act. Following Colopy’s presentation, Councilmember Stacy Mungo asked about the health department’s coordination with law enforcement. Colopy responded that she is currently in discussions with Los Angeles District Attorney Jackie Lacey’s office to begin a mental health diversion pilot program with the County of Los Angeles. Councilmembers Dee Andrews and Roberto Uranga both told Colopy they would like to eventually see more programs geared toward senior citizens. Also discussed was the issue of street sweeping efficiencies. Prior to leaving office, former Mayor Bob Foster recommended outsourcing street sweeping services in an effort to save money. But Mayor Robert Garcia, who released his own set of budget recommendations in July, argued against the plan to outsource street sweeping. (This subject is discussed further in the Q&A with the mayor in Section C of this edition.) Councilmember Patrick O’Donnell told Public Works Director Ara Maloyan at last week’s meeting that he hoped that public works was looking for ways to save money. “Around here we’ve had two extremes – we’re good at contracting out and we’re good at cutting. But we’re not good at finding efficiencies and innovation. That’s something we need to work on as a city,” O’Donnell said, adding that he’d like to see the current street-sweeping window reduced from four hours to two. When approved, the new budget goes ino effect on October 1. ■
City Auditor Releases Report On Funding Of Proposition H ■ By BRANDON FERGUSON Staff Writer On August 26, City Auditor Laura Doud released a summary report on funds collected since the 2007 passage of Proposition H. The voter-approved proposition assesses a 25-cent per barrel tax on the city’s oil producers, which is then used by the city to fund police and fire services. In 2006, Doud’s office reviewed the Long Beach City city’s oil production tax and determined Auditor Laura Doud that the rate fell significantly below the rate of neighboring cities. “[The auditor’s office] found that that the city’s oil production tax had not been adjusted in 17 years. But in those same 17 years, the price of oil had nearly doubled,” Doud said. A proposition was put on the ballot the following year to increase the oil production tax. It received more than 70 percent of the vote. (Please Continue To Next Page)
Total Proposition H Expenditures • Fiscal Years 2008 To 2013 Fiscal Year
Salaries Wages & Benefits
Materials Supplies & Services
Internal Support
Capital Purchases
Total
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NEWSWATCH September 2-15, 2014 According to the summary report, as of September 30, 2013, oil companies in Long Beach have produced 82,330,175 barrels of oil. As of the same date, a total of $21,901,103 in Prop H funds have been spent on public safety-related uses – primarily police and fire personnel. On average, the report claims, the city has been able to fund 12 police officers and 11 firefighters annually. In 2009 the fire department used Prop H funds to purchase a new fire truck for station 14. Though the tax is assessed on all oil producers across the city, Doud explained that most of the revenue is generated by THUMS and the Tidelands Oil Production Company (TOPCO). Asked about the findings of her report and whether there had been any surprises, Doud said the money has been collected and spent as expected. “I think it’s good news for Long Beach. It was a huge victory when [Prop H] passed; it’s been a tremendous success since its passage and the city as a whole has received huge benefits from increased public safety,” Doud said. During difficult budget years experienced by the city recently, Doud added that the money has been especially helpful. “It’s been like a shot in the arm,” she said. ■
City Council Denies Appeal On Coal Exports From Port ■ By BRANDON FERGUSON Staff Writer At its August 19 meeting, the Long Beach City Council considered an appeal filed by environmental groups challenging the Long Beach Board of Harbor Commissioner’s determinations over coal exports in the port. On June 9, the harbor commission approved two operating agreements affecting Metropolitan Stevedore Company (Metro), which operates the Pier G dry dock, and a coal shed operated by Oxbow Energy Solutions. The port has contracted with Metro to operate the dry dock since 1962. The agreement is set to expire in 2016. Currently, Metro sub assigns use of the dock’s coal shed to Oxbow Energy Solutions. The harbor commission’s new operating agreement would transfer control of the coal shed to the port. The port would lease the coal shed directly to Oxbow to maximize revenues for the city. As part of the approval process, the harbor commission determined that the new operating agreement is categorically exempt from the California Environmental Quality Act (CEQA) and the port is therefore not required to conduct a new review of the facility. On June 23, the environmental group Earth Justice, representing Communities for a Better Environment and the Sierra Club, appealed the harbor commission’s CEQA determination and requested the port undertake a CEQA review of the agreements. On August 19, the city council voted unanimously to deny the environmentalists’ appeal. During a presentation to the
Long Beach Business Journal 5 council, Port Director of Environmental Planning Heather Tomley said there would be no changes to the facilities under the new agreements, and therefore the port was exempt from conducting further review. “Under the new agreements there will be no changes to the capacities of the existing facilities. The operations of the facility are the same today under the current agreements as they will be tomorrow under the new agreements,” she said. Speaking on behalf of the environmental group EarthJustice, attorney Adrian Martinez showed pictures of uncovered train cars at the port, carrying loads of coal, a pollutant. He argued that previous port operating agreements were commodity neutral, but that the new agreements required a guaranteed throughput of coal totaling 1.7 million tons, which he argued locked the port into 15-years of coal export. But during council questions, 3rd District Councilmember Suzie Price asked Tomley if the throughput of coal would be increased under the new agreement. Tomley replied that it would not. Prior to voting, 8th District Councilmember Al Austin, who has served as a health and safety representative for Boeing, said he toured the coal shed and Pier G recently. “I have a trained eye for engineering and health and safety standards. I found that facility to be top class,” he said. During public comments, several people spoke about the issue, both in support and (Please Continue To Page 6)
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NEWSWATCH 6 Long Beach Business Journal
Coal Exports Continue From Page 5)
opposition. James R. Callahan, CEO of Nautilus International Holding Company, which owns Metro, said the facilities at Pier G contribute payroll and benefits in excess of $20 million annually. Resident Louise Flemming, however, said the operating agreement didn’t take into consideration the future impacts of the project. “I believe the port should not be in the business of supporting coal,” she said.
City Hall News In Brief ■ By BRANDON FERGUSON Staff Writer Budget Oversight Committee – The city council’s three-person budget oversight (BOC) committee will continue to discuss the FY15 budget at today’s (September 2) meeting. The BOC is comprised of Councilmembers Suja Lowenthal, Patrick O’Donnell and Stacy Mungo. Budget Discussion – At tonight’s city council meeting, members consider funding for the department of financial management and harbor department as part of the FY15 budget. The new budget goes into effect on October 1. Budget Action – Tonight the council considers approval of the FY15 budget. The council also considers adoption of Mayor Robert Garcia’s budget recommendations (released in July) as part of the FY15 budget.
September 2-15, 2014 Assistant City Manager – Several councilmembers are requesting, as a basis for confirmation, ample time to review the candidates being considered by city staff for the position of assistant city manager. A closed session meeting is being requested wherein councilmembers will review a list of candidates in order of preference. Assistant City Manager Suzanne Fricke resigned her position in June to take a job in Ketchum, Idaho. Jyl Marden has served as interim assistant city manager since August 2. By City Charter, the city council hires the city manager but has no authority over the hiring of other city personnel. Alamitos Bay Project – A recommendation by staff to authorize City Manager West to execute the ninth amendment to an existing contract with Bellingham Marine for continued improvements to the Alamitos Bay Marina was approved by a 70 vote of the council. Phase 5 of the project, which is expected to begin in the fall, includes reconstruction of Docks 11, 12, 13 and 14, which are located in Basin 2. The work will include demolition of existing docks, dredging and the installation of new concrete docks. The contract amount allows an additional $9,119,629 plus a contingency of $455,981. The revised contract amount is not to exceed $51,006,617. Councilmembers Andrews and O’Donnell were absent for the vote. North Library – At its August 19 meeting, the city council voted 8-0 to adopt plans for the construction of the North Branch Library, and awarded the contract
to Woodcliff Corporation of Los Angeles. The contract amount totaled $11,537,750 plus a 10 percent contingency. Renderings of the new library were shown during the meeting. The building is expected to total 26,491 square feet and include the tower from the historic Atlantic Theater that was demolished to make room for the library. City Manager Patrick West said construction of the project is expected to begin on October 1. Councilmember Dee Andrews was absent for the vote. Belmont Pool – The council voted 8-0 to authorize City Manager West to execute a second amendment to an existing agreement with Psomas Corporation to provide management and inspection services for the demolition of the Belmont Pool. The vote increased the existing contract by $206,400 for a revised total not to exceed $831,400. An 8-0 vote on a separate item by the council authorized the city manager to enter into a contract with Exbon Development to perform the demolition of Belmont Pool. The contract amount was increased by $2,850,000 for a revised amount not to exceed $12,850,000. Councilmember Andrews was absent for both votes. Women, Infants and Children – The council considers authorizing the city manager to execute an agreement between the city and the California Department of Health to receive grant funding of $4,540,982 for the Women, Infants and Children Nutrition Supplement Program (WIC). Since 1974 the city’s department of health and human services has operated the WIC program, which
provides nutrition education, counseling and food vouchers to eligible families throughout the city. According to a city memo, the program serves approximately 26,000 families per month. Airport Pavement – Tonight the city council considers awarding contracts to Kleinfelder West of Los Angeles, and Kimley-Horn and Associates of Raleigh, North Carolina, to provide as-needed airport pavement evaluation. The aggregate amount of the contract is not to exceed $1,500,000 for a period of two years. Maine Avenue Excavation – City staff is recommending the council determine that excavation on Maine Avenue, between Roble Way and 6th Street, is immediately required and cannot be delayed. The Long Beach Water Department (LBWD) has filed for a discretionary permit to excavate the area, which was slurry sealed in December 2013, and is currently under an excavation moratorium. According to a city memo, lateral water pipes in the area are experiencing a high number of breaks. LBWD maintains that the proposed excavations are necessary for the general health, safety and welfare of the city.
Meetings, Events “Chat With Pat” – Tomorrow, Wednesday, September 3, 4th District Councilmember O’Donnell will host a back-to-school themed “Chat with Pat.” The meeting will provide community members an opportunity to meet the new president of California State University, Long Beach, Jane Conoley and hear her vision for the
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NEWSWATCH September 2-15, 2014 university. Long Beach Police Department personnel will also be on hand to provide their regular community updates. The event takes place at 4:30 p.m. at the Los Altos Public Library, 5614 E. Britton Dr. Douglas Park – At its September 4 meeting, the planning commission considers approving a site plan review for the construction of a 138,299-square-foot automotive trade school facility. The building’s planned location is on Conant Street between Worsham Avenue and Bayer Avenue in Douglas Park. The facility plan calls for a total of 415 parking spaces and is expected to draw, on average, 225 people during the day and 220 people at night. Staff is recommending approval of the facility subject to commission conditions. SEADIP Meeting – Also this Thursday, the community is invited to attend a planning commission study session to be updated on the Southeast Area Specific Plan (SEADIP). The meeting will take place at 5 p.m. in the council chambers at city hall, 333 W. Ocean Blvd. No formal action will be taken by the planning commission at this meeting. Public Safety Committee – On September 5, the public safety committee will hear a presentation regarding a potential park ranger program for city parks. The committee is chaired by 3rd District Councilmember Suzie Price. Bixby Park Improvement – On Saturday, September 6, Vice Mayor/Councilmember Lowenthal invites residents to participate in the Bixby Park cleanup day. Neighborhood groups and
Long Beach Business Journal 7 volunteers will plant a drought tolerant garden under the Bixby Park mural, and will also paint portions of the skate park, and community center. Attendees are encouraged to bring shovels, paintbrushes and brooms. Students who volunteer can receive credit for community service hours. For more information contact Mark Magdaleno at 562/570-6684. Bixby Park is located at 130 Cherry Ave. The event begins at 9 a.m. and continues until 1 p.m. Parking Meter Study – A public workshop will be held on September 8 regarding the city’s recently released parking meter study report. The Belmont Shore Parking and Business Improvement Area Advisory Commission will be holding the workshop to obtain public input on the recommendations in the report, including installation of smart meters and potential rate increases. The meeting will be held in the concert hall at the Bay Shore Church located at 5100 The Toledo. More information can be obtained by emailing 3rd district staff at district3@longbeach.gov. Harbor Tour For 3rd District Residents – On September 18, 3rd District Councilmember Price invites residents to join her on a sunset harbor tour. The free event is intended as a way for residents to become familiar with the port’s environmental, security and infrastructure projects. Interested parties are required to reserve their seat with Kristina Duggan either by calling 562/570-8756 or emailing Kristina.duggan@longbeach.gov. Be sure to include subject line: Port Harbor Tour. ■
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NEWSWATCH 8 Long Beach Business Journal
September 2-15, 2014
Ethnic Disparities In Long Beach Continued From Page 1)
William Crampon Ph.D., left, and Alex Norman, D.S.W, are pictured at Martin Luther King Jr. Park in Long Beach. Both semi-retired professors are active in the community-based think tank ReThinking Greater Long Beach. The group recently released a report on ethnic disparity in the City of Long Beach. Among the report’s findings was that the white population in Long Beach enjoys a median family income more than twice as high as Latinos. Other findings showed that 44 percent of adult Latinos do not have a high school education. (Photograph by the Business Journal’s Thomas McConville)
semi-retired professors who started ReThinking Greater Long Beach nearly 14 years ago. Crampon, a Ph.D., taught management and policies studies at the University of Illinois at Springfield, and Norman, who holds a doctorate in social work, is professor emeritus of social welfare at UCLA’s School of Public Affairs. Since joining forces in the early 2000s, they’ve given public presentations on various issues from development in Long Beach to poverty along the Atlantic and Santa Fe Corridors. “Bill and I had been talking about doing an ethnic disparities report. With all this talk about inequality and income gap, we thought, why don’t we do something specific to Long Beach,” Norman said. The resulting 50-plus page report features a comprehensive series of color charts and graphs breaking down the Long Beach population across a wide range of dimensions – from education levels, to arrests and citations, to life expectancy. In addition to examining statistics detailing ethnic diversity, the report offers a series of short-term and long-term recommendations, many of them related to education. “If we are going to end the poverty cycle and other related problems, the focus must be to ensure that all children
According to the Ethnic Disparities in Long Beach report, this chart “presents a comparison of the Long Beach population reported in the 2008-12 American Community Survey, with the overall U.S. population, the California population, and the Los Angeles County population. It shows that Long Beach has a munch more diverse population than the rest of the U.S. and the State of California, and a similar population to the rest of Los Angeles County.”
receive the education they need to succeed in the current and future world environment,” the report read. Included in the short-term recommendations was a suggestion that the Long Beach Unified School District also establish an office of acculturation, “to assist with the transition and integration of new residents into civic life of Long Beach.” Norman likened such an office to the settlement houses and neighborhood centers of the early 1900s, which were a resource for Irish and Italian immigrants. “A sizeable part of our population are immigrants. My belief is that, in the same sense that those settlement houses and neighborhood centers acculturated immigrants so they could come into the fabric of our democratic society, we need the same thing here, otherwise we end up with a Bell or Commerce,” Norman said referring to cities where civic apathy created opportunities for corrupt politicians to raid the public purse. But though the report offers suggestions on how to tackle the problem of ethnic disparity, both Crampon and Norman said they were primarily interested in getting good data out for policymakers to consider. “Don’t get me wrong, we’ve got wonderful ideas for what the city should do, but our basic feeling is that no one can make rational decisions without having a common set of valid, reliable, or at least the best available, information,” Crampon said. To that end, the pair decided to float an advance copy of the report to Mayor Robert Garcia’s transition team. “It just so happened to come out at the same time as the mayor’s transition team,” Norman said. “Bill had the idea ‘why don’t we use this as an opportunity to crash the party?’” Though the pair said the mayor has yet to offer any feedback on the report, they’re hopeful it made an impression. During his inaugural speech, Garcia mentioned the city’s 20 percent poverty rate and the need to combat the problem. Ultimately, both Crampon and Norman say they are fine with public officials using their report, even if they don’t get recognized for their hard work. “I’d rather see something done and have somebody else take credit for it than see nothing done,” Crampon said. To view Ethnic Disparities in Long Beach, visit rethinklongbeach.org. ■
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NEWSWATCH 10 Long Beach Business Journal
September 2-15, 2014
California Legislature Takes Action On ‘Job Killer’ Bills ing employees to file liens on an employer’s or third party’s property for unpaid wages, a bill expanding requirements for developers under the California Environmental Quality Act, a bill holding businesses liable for the wages of contracted workers not under their employ, and legislation prohibiting anyone from requiring another person to sign a contract, as a provision of obtaining goods and services, that would waive the right to pursue litigation based on civil rights violations.
■By SAMANTHA MEHLINGER Senior Writer The California State Senate and Assembly were up against a deadline to vote on two bills impacting businesses when the Business Journal went to press on August 29 – one would ban certain retailers from using single-use carryout plastic bags throughout California, and the other would mandate paid sick leave for certain employees. The legislature’s session ended on Sunday, August 31. The two houses made final decisions on four bills impacting business during the last week of August, including one allow-
Plastic Bag Ban Senate Bill (SB) 27, which would ban certain retailers in California from distributing single-use carryout plastic bags to its
customers, was passed by the state assembly on August 28. At press time, the bill awaited final approval of the assembly’s amendments by the state senate. The bill was co-authored by Senator Ricardo Lara, representing Long Beach and other nearby cities, Senator Alex Padilla and Senator Kevin de León. Long Beach already has similar legislation in place. If passed, state retailers would have to follow specific requirements for what bags they are allowed to distribute to customers and who they are allowed to procure those bags from, to avoid civil penalties. The California Grocers Association released a statement in support of the
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assembly’s passage of the bill, explaining it backed the legislation “in an attempt to put an end to the growing patchwork of local ordinances.� The organization’s statement explained, “Inconsistency between jurisdictions creates operational and competitive challenges for grocers, and causes confusion for customers.� The bill was also backed by environmental groups such as Californians Against Waste and Heal The Bay. The American Progressive Bag Alliance, which represents plastic bag manufacturers, opposed the bill. The California Chamber of Commerce did not take a position on the legislation. On July 1, 2015, the bill would apply to full-line retailers with gross annual sales of $2 million that sell dry groceries, canned goods, nonfood items and some perishable items. On July 1, 2016, the bill would apply to convenience stores, food marts or other entities “engaged in the retail sale of a limited line of goods, generally including milk, bread, soda and snack foods� and hold a Type 20 or 21 alcohol license. If passed by the senate, retail businesses would have to study the text of the bill closely to ensure compliance, as there is a lengthy list of requirements associated with it. In place of single-use carryout plastic bags, retailers would have to distribute bags made from reusable plastic film, recycled paper or sewn fabric. Recyclable and reusable bags made from plastic film must consist of certain percentages of recycled material and be able to carry 22 pounds for a distance of 175 feet. In addition to these standards, reusable plastic bags used by retailers must meet the standards of certain organizations, including the American Society of Testing and Materials. Sewn bags would also have to meet specific composition and weight-bearing requirements. Recycled paper bags would only be allowed for use by retailers if those bags were distributed for 10 cents and the money collected from their sale was used to comply with the bill, to provide more compliant bags or to cover the costs of educational materials associated with the bill. Producers of allowed bags would have to receive certification from a third party entity verifying their bags meet the state’s requirements and submit that certification to the state. Retailers would only be able to purchase bags from certified bag manufacturers. The citation for not meeting the requirements of the bill would be $1,000 per day for the first violation, $2,000 per day for a second violation and $5,000 per day for third and subsequent violations.
Paid Sick Leave Assembly Bill (AB) 1522, labeled a “job killer� by the California Chamber of Commerce (CalChamber), awaited a vote by the senate as the Business Journal went to press. The bill would mandate employers provide paid sick days “accrued at a rate of no less than one hour for every 30 hours worked� and allow employers to limit the number of sick days to three per year. In mid-August, the senate removed a (Please Continue To Next Page)
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NEWSWATCH September 2-15, 2014 stipulation from AB 1522 requiring employers to provide paid sick days, not only for employees to attend to personal health matters, but also for attending to the health of their family members and as leave for domestic violence, sexual assault or stalking. Before it was amended, the bill would have required employers to roll over unused paid sick days from one year to the next. Now, no carryover would be required if the full amount of leave were granted to an employee at the start of the year. The carryover of sick days had been a point of contention for CalChamber. The chamber’s current stance on the bill is to oppose unless amended, according to Jennifer Barrera, a policy advocate for CalChamber. She did not specify what amendment the chamber was hoping for. A statement on the website of the bill’s author, Senator Lorena Gonzalez, indicated the bill was intended to help workers. “Workers without paid sick days have to go to work sick or stay home, lose pay and risk job loss or workplace discipline,” the statement said. “Nearly one quarter of adults in the United States (23 percent) report that they have lost a job or have been threatened with job loss for taking time off due to illness or to care for a sick child or relative.”
Two Job Killer Bills Passed On August 28, the State Assembly passed AB 1897, which holds businesses employing a contracted entity liable for wage and hour violations made by the contracted business under their employ, after the senate passed an amended version of the bill the day prior. The bill now moves to the desk of Gov. Jerry Brown. Amendments made by the senate on August 22 exempt businesses with fewer than 25 workers (including contracted workers), businesses using five or fewer contracted workers, as well as state, city and county governments. Other added exemptions include cable operators, satellite cable providers, telephone corporations, motion picture payroll services and more. Despite the exemptions, CalChamber remains opposed to the bill and has urged its constituents to contact the governor’s office to ask him to veto it. The bill’s author, Assemblymember Roger Hernandez, released a statement on August 28 following the assembly vote.
Long Beach Business Journal 11 “The bill protects workers from exploitation and abuses resulting from a new business model that we are seeing proliferate across all industries as we begin to emerge from the economic recession,” he stated. “AB 1897 is about saving good jobs, protecting legitimate employers and preserving our fragile middle class.” The other “Job Killer” bill opposed by the CalChamber passed the assembly on August 28. The bill, AB 2617, prohibits requiring anyone to sign arbitration and settlement agreements pertaining to civil rights violations as a condition of obtaining goods or services. Any contract requiring someone to waive the right to seek civil action for the violation of civil rights must be signed voluntarily in writing and not as a condition of obtaining goods or services. “Forced arbitration is eroding an individual’s ability to protect themselves from discrimination, wage theft and other abusive practices,” the bill’s author, Assemblymember Shirley Weber, said in a statement. “Nobody should be allowed to force their workers to sign away their legal rights as a condition of employment.” CalChamber has argued the bill conflicts with the authority of the United States Supreme Court and California Supreme Court, both of which have previously upheld the use of such contracts in the past. In a letter of opposition to the bill dated August 25, the chamber noted that arbitration and settlement agreements help save businesses the cost of going to court.
Filing Liens Job Killer Bill Failed
28
A bill that would have allowed any employee, or entity designated by an employee, to file liens against an employer’s or a third party’s property for alleged wage violations failed to pass the California Senate in the last week of August. CalChamber had previously called AB 2416 an “outrageous ‘job killer’ bill” allowing “employer harassment.” The chamber opposed the bill partially because it would have allowed “an innocent third party” to be liable for wages not paid to a contracted worker who had worked on their property but who the third party was not responsible for paying. The bill failed on August 28 with 15 senators voting no, 13 voting yes and 12 votes not recorded. ■
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NEWSWATCH 12 Long Beach Business Journal
September 2-15, 2014
The staff of the Long Beach Area Convention & Visitors Bureau (CVB) is all smiles after learning that for the third consecutive year, Long Beach made the top 50 list of the best cities in the United States for meetings and events. The city moved up four spots to number 44. The ratings were issued by Cvent, a cloud-based enterprise event management platform, which connects event planners with venues. Pictured in front of the Long Beach Convention & Entertainment Center are, front row from left: Bob Maguglin, director of public relations; Tammy Johnson, CMP, national sales director; Kelly DeSimas, sales coordinator; Steve Goodling, president & CEO; Lillian Olguin, sales coordinator; Claudette Baldemor, membership director; Cindy Robbins, controller; and Kathy Ford, sales coordinator. Center row from left are: Sarah Nguyen Noh, executive assistant; Jennifer Kohatsu, national sales director; Blanche Campain, national sales director; Susan Valen, CMP, national sales director; Patricia Paige, vice president of digital communications; Julie Taber, senior visitor information specialist; Nicole Zylstra, digital communications manager; Loren Simpson, digital communications manager; and Pauline Taylor, sales coordinator. Back row from left are: Michael Mitchell, visitor services manager; Iris Himert, executive vice president; Paul Romero, national sales director; Jarrod Finley, vice president sales; Gary Watters, sales coordinator; Chris Zappia, national sales director; Jan Miller, membership director; Jeff Forney, vice president of marketing & membership; and Barbi Ajemian, CMP, vice president, convention services. For more information about the CVB or to become a member, call 562/436-3645 or visit www.visitlongbeach.com. (Photograph by the Business Journal’s Thomas McConville)
Destination Long Beach Continued From Page 1)
Long Beach Mayor Robert Garcia tapes a special video message urging the planners of a medical convention to bring their group to Long Beach for 2018. Mayor Garcia’s assistance with videos and letters to high potential meeting planners helps the Long Beach Area Convention & Visitors Bureau book conventions worth millions of dollars to the local economy. (Photograph by the Business Journal’s Thomas McConville)
The creation of the Pacific Ballroom at the Long Beach Arena as well as all of the renovations at the convention center “is creating a tremendous buzz in the meetings industry,” says Steve Goodling, president and CEO of the Long Beach Area Convention & Visitors Bureau. (Photographs provided by the CVB)
cities featured on the Cvent Supplier Network, which connects event planners with venues. The ranking is a testament to the work of the Long Beach Area Convention & Visitors Bureau Adaptability, flexibility, versatility and some bold, creative moves, according to some meeting planners, have kept Long Beach in the spotlight so it can compete with destinations that offer more hotel accommodations. Long Beach rings in with 32 meeting hotels and 5,051 sleeping rooms. By comparison, the city rated just ahead of Long Beach at 43rd on the list is Columbus, Ohio, which has 125 hotels and 15,704 rooms, according to Cvent. Moreover, the only cities with fewer rooms that ranked better than Long Beach are tourist-specific locations, including Coronado and Carlsbad, California (ranked 41st and 42nd, respectively); Hollywood, Florida (38th); National Harbor, Maryland (35th); and Grapevine, Texas (22nd). “Moving up four places from last year continues to validate our decision to create the Pacific Ballroom at the Long Beach Arena,” said Steve
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NEWSWATCH September 2-15, 2014 Goodling, president and CEO of the Long Beach Area Convention & Visitors Bureau (CVB) – the group charged with convincing meeting planners to choose Long Beach. “The addition of the new ballroom as well as all of the renovations at the center is creating a tremendous buzz in the meetings industry,” Goodling continued. “Clients love the innovation of the Pacific Ballroom in the Long Beach Arena. The lighting, sound and truss system integration creates a special events space that cannot be found anywhere in the U.S. The uniqueness, vibrancy and cost savings of the venue are being extensively talked about in the meeting planning community nationwide.” The Convention Center makeover has drawn rave reviews from meeting planners throughout the country. Here’s a sampling: • Joshua R. Dunn, director of sales at Salt Lake City-based LiveVantage, says: “The Long Beach Convention Center is going to revolutionize the way convention centers do business. The Arena with its built-in rigging, lighting, and curtain system offers a huge cost savings and convenience factor that is unique to Long Beach.” • Daniel Clancy, vice president of sales and event services for San Diego-based Vision Global Event Strategies, writes, “I do conferences in most convention centers in the United States. Long Beach is the only convention center that has this much versatility within the center already built in. I can use it in 10 different ways and I’m not spending an extra $30,000 in décor.” • And Peggy Cusack, managing director of Washington, D.C.-based Rendezvous Consulting says, “I’ve heard some amazing things about the renovations at the convention center in Long Beach. It sounds like you guys have set the bar out there.” The high ranking by Long Beach combined with testimonials from meeting planners is important and rewarding to the city and its businesses. As Cvent’s Senior Vice President of Sales Bharet Malhotra explains in a statement accompanying the top 50 list, “Destinations are increasingly jockeying for lucrative meetings and events business which is an important generator of revenue for the cities and local businesses.” The CVB’s Jarrod Finley, vice president of sales, tells the Business Journal that $55.4 million in estimated economic impact (EEI) has been booked into the Pacific Ballroom, and another $72.6 million in EEI is currently being held in prospective business. “Overall, in the
Long Beach Business Journal 13 course of eight months, we have seen a 45 percent increase in bookings into the Pacific Ballroom or a $17.3 million EEI increase since launch,” Finley says. The Cvent list is based on activity that it tracked between July 2013 and June 2014. The following criteria determined rankings: • Unique request for proposals received • Total room nights • Awarded request for proposal • Awarded room nights • Percentage of qualified meeting venues • Number of profile view In a statement, Cvent reports: “The destination's unique Cvent visits was added to the criteria this year, designed to help improve the quality of the rankings and to provide an even more accurate reflection of the most popular meeting destinations in the United States.” The top 10 cities in the Cvent ratings and their number of sleeping rooms are: 1. Chicago (42,291); 2. Orlando (118,000); 3. Las Vegas (144,497); 4. Atlanta (37,987); 5. San Diego (35,915); 6. New York (90,571); 7. Dallas (27,777); 8. Washington, D.C. (28,402); 9. New Orleans (24,529); and 10. Nashville (20,373). Other California cities included San Francisco, 12th (30,497 rooms); Los Angeles, 19th (22,962); Anaheim, 25th (16,920); and San Jose, 47th (7,562). ■
JetBlue Continued From Page 1)
Rob Land, JetBlue’s senior vice president of government affairs, the company has begun talks with the city about its ambition, which would require adding U.S. Customs services to the airport. “We’re hoping to make some progress this year as far as the city asking the federal government for permission,” Land told the Business Journal last week. “That is our goal.” In February, Long Beach Airport Advisory Chair Roland Scott told the Business Journal that the airport has investigated adding U.S. Customs in the past, but to no avail. About three or four years ago, airport staff approached the U.S. Department of Homeland Security about adding agents to the facility, but it would have been too costly, he said. Towards the end of 2013, JetBlue approached airport administration about the possibility of flying internationally from Long Beach, Scott noted. He also indicated JetBlue might be willing to foot the bill for the cost of adding U.S. Customs services. Land stressed adding international service to Long Beach would not mean adding flights above JetBlue’s currently allotted daily number under a city noise ordinance. “Where we fly has nothing to do with how much we fly. There is a huge distinction between JetBlue seeking to serve Mexico City, for example . . . once a day or five times a day versus looking to add flights above our 32 daily flights,” he said. “We are not, I repeat, not looking to add flights at the airport. We respect the ordinance and we join the city and all of the citizens . . . in fighting to maintain the ordinance. It is important to the community and therefore it is important to us. We are the community,” he emphasized. When asked where JetBlue hopes to fly from Long Beach, Land said the company is looking at Central America. ■
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NEWSWATCH 14 Long Beach Business Journal
September 2-15, 2014
International Trade News In Brief ■ By SAMANTHA MEHLINGER Senior Writer
Long Beach Young Professionals Organization Formed By The Chamber The Long Beach Young Professionals is a new program launched by the Long Beach Area Chamber of Commerce for professionals between the ages of 21 and 40 who have come together to learn what it takes to be successful and thrive in their respective industries, according to Jeremy Harris, chamber senior vice president who oversees the program. “The group is fun, innovative and committed, interacting in monthly networking breakfasts and social events,” he continued. “We honored our first 100 Charter members at our latest networking breakfast at the Long Beach Yacht Club on August 27 with special limited ‘Charter’ labeled lapel pins,” he said. “The Chamber is pleased to host such elite young professionals and hopes to encourage their positive energy and momentum as they develop into tomorrow’s leaders and business professionals. We are currently at 107 members and the annual membership fee is $150.” For more information, visit the chamber at www.lbchamber.com, or call Harris at 562/983-2141. (Photograph by the Business Journal’s Thomas McConville)
Port Of Long Beach Raises The Bar On Its Commitment To Small Business – In late August, the Port of Long Beach announced it was setting a higher goal for purchasing goods and services from small businesses and very small businesses as part of its Small Business Enterprise Program. In the past, the port has committed to and met a 25 percent small business participation goal. The port increased its goal to 27 percent, with approval of the Long Beach Board of Harbor Commissioners. According to a statement, 30 percent of the port’s funds for contracting, amounting to nearly $300 million, has been awarded to small and very small businesses in the past 10 years. “The port’s efforts to do business with small and very small businesses are beneficial for the local economy,” Harbor Commission Vice President Rich Dines said in a statement. “These smaller companies can increase competition for port contracts and also offer opportunities to nurture a more diverse business community in Long Beach and the Southern California region.” Longshore Union And Pacific Maritime Association Agree On Health Benefits, Other Negotiations Continue – The International Longshore and Warehouse Union reached an agreement with the Pacific Maritime Association, the group representing port employers, for health benefits for longshore workers at West Coast ports, the groups jointly announced on August 26. Negotiations on other labor contract issues, which began in May, remain underway. The previous labor agreement for about 20,000 longshore workers expired July 1. (Please Continue To Next Page)
Can Sculptures Benefit Food Finders On August 21, five locally based engineering firms competed in a canned food sculpture contest at the Mercedes-Benz Long Beach dealership, 2300 E. Spring St., benefitting Food Finders, a food bank providing food to nonprofit organizations and impoverished children, families and elderly individuals. Staff from Moffatt & Nichol, P2S Engineering, MHP Structural Engineers, Sennikoff Architects and Jeffrey Rome & Associates competed in the event, building elaborate structures with canned food, cereal boxes and water bottles. The completed structures are on display through today, September 2, when a winner is to be announced. Residents voted on the structures by bringing in canned food for donation to Food Finders and placing the cans by their favorite creation. “Food Finders is excited to be the beneficiary of the very first CANstruction [event] in Long Beach,” Diana Lara, vice president of operations for Food Finders, said in a statement. “This unique event will heighten awareness of food insecurity in our community and will play an important role in helping to feed the hungry in our own backyard.” The canned goods structure at left is a replica of the Queen Mary. Pictured, from left to right, are: Wale Malah, sales manager for Mercedes-Benz Long Beach; Moffatt & Nichol employees Tonia McMahon, Theresa Richards, Monica Martinez, Veronica Chocholek and Ari Konyalian; Diana Lara, vice president of operations for Food Finders; and P2S Engineering employees Daniel Sebastian and Steven Peterson. Above right, a sculpture made of canned food, water bottles and cereal boxes by Sennikoff Architects prominently depicts Long Beach City Hall. (Photographs by the Business Journal’s Thomas McConville)
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NEWSWATCH September 2-15, 2014 New Director Of Engineering Design – John Y. Chun, P.E., was recently named the Port of Long Beach’s director engineering of design, overseeing roads, utilities and other infrastructure projects. The engineering design division is responsible for generating “technical reports, studies, plans and specifications for port construction projects,” according to a port statement. In his new role, Chun is overseeing 45 staff members, various consulting contracts and several projects designed in-house. He replaces Neil Morrison, P.E., who was promoted to assistant managing director of engineering design and maintenance. Chun has worked at the port since 1996 and has served as its deputy chief harbor engineer since 2008, working on port capital improvement projects. He holds a bachelor’s degree in civil engineering from California State Polytechnic University, Pomona and a master’s in the same subject from California State University, Long Beach. He belongs to the American Society of Civil Engineers as well as the American Public Works Association. ■
Long Beach Business Journal 15
U.S. HealthWorks Medical Group Relocates To 100 Oceangate Building On Monday, August 18, national occupational health care and urgent care provider U.S. HealthWorks Medical Group moved its Long Beach center to a new facility at 100 Oceangate, Suite P245. The larger space is allowing the company to expand its services to include digital x-rays and a physical therapy department, according to U.S. HealthWorks. Soon, after-hours care is also going to be available. The facility also provides occupational medical services, urgent care and certain specialty care, and monitors medical exams for employers. U.S. HealthWorks specializes in providing employers with health care and claims management services. Pictured, from left, are: Keely Nunamaker, center manager; Stacey Perez, x-ray technician; Paul Anile, D.O., medical director; and Franz Leviste, medical assistant and physical exam reporter. (Photographs by the Business Journal’s Thomas McConville)
Dignity Health St. Mary Trauma Recovery Center Holds Open House On August 21, Dignity Health St. Mary Medical Center held an open house for the Long Beach Trauma Recovery Center, which provides free mental health care to survivors of trauma and crime. Long Beach Police Chief Jim McDonnell, city councilmembers, California State University, Long Beach (CSULB) President Jane Close Conoley and other local officials attended the event. St. Mary opened the center in conjunction with CSULB in April. The Long Beach Police Department, Los Angeles County District Attorney, Long Beach City Prosecutor’s office and Long Beach City Manager’s office are also involved in the center. Located at 1045 Atlantic Ave., Suite 801, the center provides outreach and educational services, clinical evaluations, therapy, crisis intervention, substance abuse counseling and psychiatric medication consultations to individuals 12 years and older who have experienced traumatic events within the past three years. At left, Debora Luken, assistant director of the trauma recovery center and a licensed marriage and family therapist, gives Long Beach city officials and residents a tour of the facility. At right is Dr. Bita Ghafoori, director of the trauma recovery center and a professor of advanced studies in education and counseling at CSULB. (Photographs by the Business Journal’s Thomas McConville)
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CITY SALARIES AND THE $100,000 CLUB 16 Long Beach Business Journal
September 2-15, 2014
Payroll Comparison By Category – Based On Payroll As Of August 1 – 2014 To 2009
City Manager Dept.-General City Manager Dept.-Police/Fire* Non-City Manager Depts.** Total
Aug 1, 2014 Total Number Of Payroll Employees 2014 2,638 $138,570,521
Aug 1, 2013 Total Aug. 1 2012 Total Number Of Payroll Number Of Payroll Employess 2013 Employees 2012 2,604 $136,755,322 2,725 $138,225,819
Aug. 1 2011 Total Aug. 1 2010 Total Number Of Payroll Number Of Payroll Employees 2011 Employees 2010 2,838 $139,352,409 2,913 $140,182,293
Aug. 1 2009 Total Number Of Payroll Employees 2009 2,965 $144,554,117
1,769
183,269,710
1,768
$179,634,229
1,767
$179,245,250
1,864
$176,165,150
1,961
$181,442,542
2,016
$180,656,695
915
$73,621,657
896
$69,843,021
901
$66,159,782
867
$63,897,838
868
$60,979,477
841
$58,359,291
5,322
$395,461,888
5,268
$386,232,572
5,393
$383,630,850
5,569
$379,415,397
5,742
$382,604,312
5,822
$383,570,103
Note: Employee counts are for everyone who received a paycheck, including part-timers, summer help, etc. in the city’s pay period of August 1 * Includes skill pays, but not overtime. **Non-city manager departments include city attorney, city auditor, city clerk, city prosecutor, civil service, harbor, water and legislative (mayor and city council) Source: City of Long Beach (Continued From Page 1)
At the time, taxpayers were picking up nearly 100 percent of the cost of pensions, which included the “employee fee” portion of either 8 or 9 percent, with the higher amount for sworn public safety personnel. (Through earlier contracts, some employee groups were paying 1 or 2 percentage points of the employee fee.) The taxpayers also paid for all of the “employer fee,” which is a fluctuating number set by the California Public Employees Retirement System. That percent has ranged from the mid teens to the mid 20s, with the higher number used for sworn personnel. As an example, on a base salary of $100,000, the annual pension cost to taxpayers could have been anywhere from $18,000 to $25,000, or higher, with the employee fee representing $8,000 or $9,000 of those amounts. Since 2007, city officials have negotiated new contracts or renegotiated existing contracts with city unions that have significantly increased pension contributions by employees, thus reducing the city’s exposure. Employees have received pay raises, but most of the increases have gone to pay for the entire “employee fee” of the pen-
sion cost. As one manager put it, “The bottom line is that all groups ended up diverting wage increases to pension payments, saving the city about $14 million a year in the General Fund alone.” This table from the city’s financial management department, provided at the Business Journal’s request, shows how negotiations with employee unions have translated into savings for taxpayers: Number Of Pension Costs Fiscal PERS-Covered Paid By Year Employees* Employees** 2004 4,780 $69,000 2009 4,769 $7,008,000 2014 (est.) 4,191 $27,409,000 *As of September 30 for 2004 and 2009; as of August 26 for 2014 **Employee contributions had just begun in 2004. 2014 projected based on data as of August 26, 2014
According to the financial management department, the PERS “employer cost” for the current fiscal year is 15.6 percent for non-sworn employees and 23.1 percent for public safety employees. As stated earlier, the taxpayer is paying all of this cost. Again, that’s $15,600 on a base salary of $100,000 for non-sworn employees and $23,100 for public safety employees for this year.
Here’s the bad news and why elected officials are concerned about the city’s financial outlook – and why taxpayers need to pay attention: The “employer cost” set by PERS “is expected to increase substantially over the next six years, rising to 29 percent for non-sworn and 45.7 percent for public safety in Fiscal Year 2021, based on current projections.” That statement is from John Gross, the city’s director of financial management. If the mayor and city council fail to budget wisely today, the city will find itself in deep trouble a few years down the road. Foster, in issuing his budget recommendations prior to leaving office, warned about the pension issue. “While we have weathered a very great storm with the financial crisis, there is another very large storm brewing and that is coming starting in 2017 all the way through to 2021,” Foster cautioned. “The point of these recommendations,” Foster continued, “is that, if the council and mayor take action now and start doing prudent things now, and in some cases some unpleasant things now, you can forestall what would be very draconian measures in the future.” The former mayor shared some tough ideas that will prove unpopular with city
employees, including no pay increases, elimination of skill pay and having employees pay more of the pension cost. It will be interesting to follow current budget discussions to see if the city’s new leadership – a new mayor and five new councilmembers – heed Foster’s advice.
Full-Time Versus Part-Time City Employees While the overall number of city employees has declined – from 5,474 a year ago to 5,204 this year – the number of full-time employees has increased, going from 3,948 to 4,125. During the same period, part-time employees fell from 1,526 to 1,079. A year ago, part-time employees made up 28 percent of all city employees; the percentage is now 21 percent. Most of the increase in full-time employees is a result of city departments filling vacancies. For example, there are 38.9 more full-time employees in the police department due to vacancies being filled through Academy Class 86. The same is true in the fire department, which added 28.5 full-time positions from vacancies filled through Academy Class 2013. The harbor department brought another 31.3
Payroll Comparison By City Department – August 1 Through July 31 – 2014, 2013, 2012, 2011 Number Of Department Name Employees 2014 Airport 87 City Auditor 19 City Clerk 17 City Manager 34 City Prosecutor 40 Civil Service 17 Development Services 161 Disaster Preparedness 4 Financial Management 123 Fire 585 Harbor 481 Health & Human Services 307 Human Resources 92 Law 61 Legislative (Mayor/City Council) 59 Library Services 158 Long Beach Gas & Oil 199 Parks, Recreation & Marine 867 Police 1180 Public Works 496 Technology Services 114 Water 221 Total 5,322
Total Payroll 2014 $6,251,916 $1,393,302 $1,541,178 $2,948,766 $2,942,268 $1,173,069 $12,080,700 $358,870 $8,664,863 $61,209,407 $39,854,693 $18,329,053 $6,395,931 $6,108,751 $2,827,326 $6,102,132 $14,595,275 $20,098,781 $121,701,433 $32,598,678 $10,504,426 $17,781,070 $395,461,888
Number Of Total Employees 2013* Payroll 2013 90 $6,488,785 17 $1,397,370 17 $1,150,487 30 $2,389,237 38 $2,918,856 18 $1,101,507 169 $11,667,900 1 $76,013 123 $7,939,280 571 $60,905,295 468 $36,761,269 308 $18,089,662 90 $6,220,291 61 $6,128,973 51 $2,731,308 167 $6,146,806 199 $14,586,660 817 $20,103,029 1197 $118,728,934 488 $32,370,898 122 $10,676,761 226 $17,653,251 5,268 $386,232,572
* Employee counts are for everyone who received a paycheck, including part-timers, summer help, etc. on August 1 of each year
Number Of Total Employees 2012* Payroll 2012 98 $6,478,966 17 $1,444,164 20 $1,409,402 29 $2,323,487 39 $2,887,552 19 $1,077,574 163 $13,300,620 --119 $7,420,721 544 $60,132,374 465 $34,071,641 327 $18,371,249 93 $6,672,715 64 $6,131,427 51 $2,744,826 162 $6,336,220 215 $14,735,792 857 $19,988,586 1,223 $119,112,875 532 $32,077,882 130 $10,519,581 226 $16,393,195 5,393 $383,630,850
Number Of Total Employees 2011* Payroll 2011 92 $6,018,642 16 $1,492,374 19 $1,273,158 29 $2,141,983 37 $2,909,452 19 $1,094,348 202 $13,385,990 --121 $7,411,215 580 $59,565,745 447 $32,650,594 367 $19,904,548 101 $6,121,979 65 $6,053,228 50 $2,762,988 182 $6,484,467 215 $14,487,007 848 $18,695,189 1,284 $116,599,405 550 $31,842,101 131 $10,314,616 214 $15,661,696 5,569 $379,415,398
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CITY SALARIES AND THE $100,000 CLUB September 2-15, 2014
Long Beach Business Journal 17
$100,000 Club Comparison – Based On Payroll As Of August 1 – 2014 To 2009
City Manager Dept.-General City Manager Dept.-Police/Fire*
Aug 1, 2014 Number Of Employees 2,638
Number Of Employees $100,000+ 208
1,769
636
1,768
598
1,767
581
1,864
317
1,961
292
2,016
299
915
204
896
170
901
148
867
141
868
141
841
141
5,322
1,048
5,268
921
5,393
862
5,569
593
5,742
574
5,822
579
Non-City Manager Depts** Total
Aug 1, 2013 Number Of Number Of Employees Employees $100,000+ 2,604 153
Aug 1, 2012 Number Of Number Of Employees Employees $100,000+ 2,725 133
Aug 1, 2011 Number Of Number Of Employees Employees $100,000+ 2,838 135
Aug 1, 2010 Number Of Number Of Employees Employees $100,000+ 2,913 141
Aug 1, 2009 Number Of Number Of Employees Employees $100,000+ 2,965 139
Note: Employee numbers are the total of individuals receiving a paycheck on August 1 of each year. * Includes skill pays, but not overtime. **Non-city manager departments include city attorney, city auditor, city clerk, city prosecutor, civil service, harbor, water and legislative (mayor and city council) Source: City of Long Beach
full-time people on board, primarily engineers, to help with infrastructure projects at the Port of Long Beach. Other department vacancies that have been filled include: 9.7 in public works; 8.4 in financial management; 8 in the water department; 7.6 in parks, recreation and marine; and 6.1 in development services. The city’s health and human services department added 16.2 full-time jobs that are grant funded, and the city’s new disaster preparedness department created 3.3 new jobs.
The ‘$100,000 Club’ In the 1996-97 Fiscal Year, the highest salary in the city went to the city manager at $174,480, with the executive director of the port next in line at $154,500. Today, a salary of $175,000 is last on the list of 32 city employee salaries listed on Page 1. Today, the port director is by far the highest paid at $351,201. There are, of course, few ports in the U.S. and even fewer people qualified to serve as top executive of a port the size of Long Beach. While the port director’s salary has shot up 127 percent in nearly a 20-year period, the city manager’s is up only 49.5 percent. There are a lot more city managers in the U.S. than port directors, but the responsibilities of the city manager – especially in a city with a port, airport, water department, health department, etc. – far outweigh those of any other city position. It’s not that the port director is overpaid; it’s that, at a salary of $260,849, the Long Beach city manager is a bargain.
Highest One-Year Pay Increases By Percentage Listed are the position and the percentage increase from the salary paid that position on August 1, 2013. An asterisk (*) indicates a new person in the position. Two asterisks (**) indicate that a merit increase is included in addition to the negotiated increase. Only employees with a $100,000-plus base salary are included: POSITION PERCENT Treasury Operations Officer-Financial Mgt* 31.2% General Supt. Development Services* 30.0% Supt. Operations-Long Beach Gas & Oil* 27.8% Manager Facilities Maintenance-Harbor* 27.7% Manager Utilities/Fleet-Harbor** 24.3% Director Development Services** 18.8% Fire Captain-Fire 18.7% Civil Engineer-Harbor 16.6% Marine Safety Captain-Fire 16.5% Senior Civil Engineer-Harbor 16.5% Senior Civil Engineer-Public Works 16.5% Asst Dir Envir Plan/Air-Water Quality-Harbor* 16.0% Director of Security-Harbor* 15.9% Police Officer-Police 15.9% Director Public Works* 15.5% City Controller-Financial Management** 15.4% Mgr Infrastructure Maintenance-Harbor** 15.4% Admin Officer-Airport* 15.1% Mgr Business Relations-Financial Management* 15.0% Source: City of Long Beach
Back in 1996-97, fewer than 20 city employees out of a staff of more than 5,000 earned a six-figure salary. Today, more than 1,000 of the just over 5,000 employees earn $100,000 or more. When the “$100,000 Club” was inaugurated, data was taken directly from the budgets being proposed for the new fiscal year. That changed in 2009 when the city manager’s staff began working directly with the Business Journal to ensure accurate, up-to-date information was being presented to readers. To provide a fair and accurate year-toyear comparison on where city salaries were headed, the Business Journal decided to compare salaries based on August 1 paychecks. Skill pay is included, but overtime is not. We now have six years of data that can be compared, with some of that data shared in the tables on this and adjoining pages. The 1,048 “Club members” include 208 within city manager departments except public safety; 636 in the police and fire departments; and 204 in non-city manager departments such as city attorney, harbor, water, etc. All 1,048 positions are listed on the following pages. Additionally, there are 612 city employees with a base salary ranging $90,000 to $99,999. Those positions are also listed. (Turn the page to see salary listings by position.)
The City Of Long Beach $100,000 Club Members (Based On August 1 Payroll For Each Year – Past 6 Years) Number Of Club Members Club Members Checks Issued All City City Mgr Depts 2014 2013 2012 2011 2010 2009
To City Employees* 5,322 5,268 5,393 5,569 5,742 5,822
Depts. 1,048 921 862 593 574 579
Club Members Club Members Public Non-City Mgr Non-Public Safety Safety Departments** 208 636 204 153 598 170 133 581 148 135 317 141 141 292 141 139 299 141
Note: The August 1 totals are a true year-to-year comparison based on employee checks issued on that date. This data is different than what is presented in the city’s proposed 2014 fiscal year budget – or other budget years – which are working documents that may change during the course of the year. * Full and part-time employees. Historically, about 3/4 of city employees are permanent full-time **City Attorney, City Auditor, City Prosecutor, Harbor, Legislative (Mayor & City Council) and Water. Source: City of Long Beach.
City Of Long Beach Unions And Their Members (as of August 2014) Union (Association) Name International Association of Machinists and Aerospace Workers Long Beach Police Officers Association Long Beach Firefighters Association Long Beach Association of Engineering Employees Long Beach Management Association Long Beach Lifeguard Association Long Beach Association of Confidential Employees Long Beach City Attorneys Association Long Beach City Prosecutors Association
Employees Represented 3,634 846 350 282 257 186 38 29 17
Dues/Agency Shop Paying 3,106 764 345 280 168 20 no fees no fees no fees
Note: Some employees do not pay dues (by choice), though they are representated by a union. Source: City of Long Beach
City Employes: Full-Time And Part-Time Notes:
City Department Total Employees Airport 94 City Auditor 16 City Clerk 27 City Manager 31 City Prosecutor 40 Civil Service 17 Development Services 162 Disaster Preparedness 4 Financial Management 122 Fire 605 Harbor 481 Health & Human Services 311 Human Resources 90 Law 61 Legislative (Mayor and City Council) 53 Library Services 161 Long Beach Gas & Oil 197 Parks, Recreation & Marine 683 Police 1,213 Public Works 497 Technology Services 119 Water 220 Totals 5,204
Perm Full 81 16 13 31 32 13 150 4 110 459 445 252 76 61 41 74 192 186 1,115 449 115 210 4,125
Part Time 13 0 14 0 8 4 12 0 12 146 36 59 14 0 12 87 5 497 98 48 4 10 1,079
% 14% 0% 52% 0% 20% 24% 7% 0% 10% 24% 7% 19% 16% 0% 23% 54% 3% 73% 8% 10% 3% 5% 21%
• Part-Time includes Permanent Part Time, Temporary Part Time, and Seasonal Part Time. Seasonal Part Time accounts for approximately 88% of all Part Time employees. • There are variations in the number of part-time employees for some departments, particularly during the summer months (e.g., parks, recreation and marine. fire/lifeguards). • For the Legislative Department, 9 of the 12 part time employees are councilmembers Source: City of Long Beach.
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CITY SALARIES AND THE $100,000 CLUB 18 Long Beach Business Journal
September 2-15, 2014
Notes: • Salary amounts were derived by multiplying the employee’s hourly rate as of August 1, 2014 by 2,088 hours. • Salary amounts for police and fire department employees include skill pays, but do not include overtime. • All employees now pay the full employee share of their pension costs (9% for Police and Fire, 8% for all others). • In some instances, positions have been grouped (e.g., police officers, fire engineers), although there may be slight differences in their actual salaries. • “Neg Increase” – short for Negotiated Increase – refers to a general salary increase and/or a step increase per an existing memorandum of understanding (MOU).
City Manager Departments – Non-Public Safety $100,000-Plus Base Salary (Double asterisk indicates management position) Position City Manager ** Assistant City Manager **
Department City Manager City Manager
Aug. 1 Salary 260,849 246,252
Director-Long Beach Gas & Oil ** Director of Development Services **
Long Beach Gas & Oil Development Services
216,055 209,985
Director of Parks, Recreation & Marine Director of Public Works ** Director of Financial Management **
Parks, Recreation & Marine 204,239 Public Works 204,239 Financial Management 204,204
Director of Business Development ** Public Works Health & Human Services Director of Health & Human Services ** Director of Human Resources ** Human Resources Deputy City Manager ** City Manager Director of Technology Services ** Technology Services City Health Officer ** Health & Human Services Director of Library Services ** Library Services Deputy Director-Development Services ** Development Services Deputy City Manager ** City Manager Director of Long Beach Airport ** Airport Public Health Physician Human Resources Deputy Director/City Engineer ** Public Works Deputy Director-Development Services ** Development Services Manager-Gas & Oil Operations ** Long Beach Gas & Oil Manager-Budget/Performance Management ** Financial Management Division Engineer-Oil Properties ** Long Beach Gas & Oil Manager-Business Operations ** Long Beach Gas & Oil Superintendent-Building and Safety ** Development Services Public Health Physician Health & Human Services Manager-Business Information Services ** Technology Services Manager-Public Services ** Public Works Division Engineer-Oil Properties ** Long Beach Gas & Oil City Treasurer ** Financial Management Manager-Property Services ** Public Works Manager-Electric Generation ** Long Beach Gas & Oil Division Engineer-Oil Properties ** Long Beach Gas & Oil Manager-Technology Infrastructure Services ** Technology Services Assistant City Engineer ** Public Works Manager-Environmental Services ** Public Works Manager-Administration ** Human Resources Manager-Personnel Operations ** Human Resources Manager-Airport Operations ** Airport Mgr-Risk & Occupational Health Services ** Human Resources General Superintendent-Development Services ** Development Services Exec Dir-Regional Workforce Investment Board ** Human Resources Geologist II Long Beach Gas & Oil Petroleum Engineer II (2 Positions) Long Beach Gas & Oil City Controller ** Financial Management
196,248 194,250 188,701 184,743 180,563 177,451 175,381 173,160 172,049 170,000 170,000 168,000 166,500 161,455 160,000 158,443 155,398 153,501 153,340 153,073 152,844 150,894 150,070 149,851 149,538 149,446 148,897 147,000 146,359 144,988 144,988 143,850 143,591 143,013 143,001 142,329 142,329 141,993
Traffic/Transportation Program Administrator ** Manager-Engineering & Construction ** Manager-Business Relations ** Manager-Commercial Services ** Manager- Fleet Services ** Assistant to the City Manager (Tidelands) ** Treasury Operations Officer ** Manager-Administration ** Manager-Financial Controls ** Treasury Operations Officer ** Manager-Disaster Management ** Manager-Recreation Services ** Manager-Maintenance Operations ** Petroleum Operations Coordinator II Real Estate Officer ** Manager-Business Operations ** Business Information Technology Officer ** Technical Support Officer ** Business Information Systems Officer ** Wireless Communications Officer ** Senior Structural Engineer Deputy City Prosecutor III
140,970 138,749 138,002 137,261 137,000 136,117 136,025 135,420 135,420 134,182 132,195 130,325 129,868 129,587 128,466 128,409 128,409 128,409 128,409 128,409 127,487 126,896
Public Works Long Beach Gas & Oil Financial Management Financial Management Public Works City Manager Financial Management Disaster Pre/ Emrg Comm Financial Management Financial Management Disaster PreEmrg Comm Parks, Recreation & Marine Parks, Recreation & Marine Long Beach Gas & Oil Public Works Parks, Recreation & Marine Technology Services Technology Services Technology Services Technology Services Development Services City Prosecutor
% Change/Reason 11.0% Neg. Increase 13.2% Neg Increase, Merit Increase 11.0% Neg Increase 18.8% Neg Increase, Merit Increase 11.0% Neg Increase 15.5% New Person 9.2% Neg Increase, Merit Increase 0.0% New Position 4.8% New Person 11.0% Neg Increase 11.0% Neg Increase 11.0% Neg Increase 5.0% New Person 11.0% Neg Increase 11.0% Neg Increase 0.0% New Position 0.0% Vacant 0.0% New Person 0.0% Vacant 0.0% Vacant 11.0% Neg Increase 11.9% New Person 11.0% Neg Increase 11.0% Neg Increase 8.3% New Person 0.0% 11.0% Neg Increase 11.0% Neg Increase 11.0% Neg Increase 11.0% Neg Increase 11.0% Neg Increase 11.0% Neg Increase 11.0% Neg Increase 11.0% Neg Increase 5.0% Neg Increase 11.0% Neg Increase 0.0% New Person 11.0% Neg Increase 5.0% Neg Increase 11.0% Neg Increase 30.0% New Person 11.7% New Person 11.0% Neg Increase 0.0% 15.4% Neg Increase, Merit Increase 11.0% Neg Increase 11.0% New Person 15.0% New Person 11.0% Neg Increase 12.3% New Person 0.0% New Position 11.0% Neg Increase 0.0% New Position 0.0% 31.2% New Person 0.0% New Position 11.0% Neg Increase 11.0% Neg Increase 0.0% 11.0% Neg Increase 3.6% New Person 11.1% New Person 11.0% Neg Increase 11.0% Neg Increase 11.0% Neg Increase 10.0% Neg Increase 0.0% Vacant
Negotiated Salary Increases Timetable Long Beach Management Association – 252 Employees Negotiated Changes October 1, 2013: 11% salary increase, with employees paying an additional 6% of Employee Share of PERS (for a net increase of 5%) Negotiated Changes October 1, 2014: 4% salary increase Contract Expires: September 30, 2015 Long Beach Association of Confidential Employees – 36 Employees Negotiated Changes October 1, 2013: 11% salary increase, with employees paying an additional 6% of Employee Share of PERS (for a net increase of 5%) Negotiated Changes October 1, 2014: 1% salary increase Contract Expires: September 30, 2015 Long Beach Association of Engineering Employees – 275 Employees Negotiated Changes October 1, 2013: 11% salary increase, with employees paying an additional 6% of Employee Share of PERS (for a net increase of 5%) Negotiated Changes October 1, 2014: 4% salary increase Contract Expires: September 30, 2015
salary increase, with employees paying an additional 6% of Employee Share of PERS (for a net increase of 5%) Negotiated Changes October 1, 2014: 4% salary increase Contract Expires: September 30, 2015 International Association of Machinists &Aerospace Workers – 3,621 Employees Negotiated Changes October 1, 2013: N/A* Negotiated Changes October 1, 2014: N/A* Contract Expires: September 30, 2014 Long Beach Police Officers Association – 808 Negotiated Changes October 1, 2013: 1% salary increase for Police Officers and Lieutenants (effective April 1, 2014)* Negotiated Changes October 1, 2014: N/A* Contract Expires: September 30, 2016 Long Beach Firefighters Association – 340 Negotiated Changes October 1, 2013: N/A* Negotiated Changes October 1, 2014: N/A* Contract Expires: September 30, 2016 Long Beach City Attorneys Association – 30 Negotiated Changes October 1, 2013: N/A* Negotiated Changes October 1, 2014: N/A* Contract Expires: September 30, 2015 Long Beach City Prosecutors Association – 15 Negotiated Changes October 1, 2013: N/A* Negotiated Changes October 1, 2014: N/A* Contract Expires: September 30, 2015 *Employees are entitled to salary adjustments associated with step increases and/or special pays. Source: City of Long Beach
Long Beach Lifeguard Association – 180 Employees Negotiated Changes October 1, 2013: 11%
Manager-Administration & Financial Services ** Development Services Parks, Recreation & Marine Manager-Marine Operations ** Manager-Housing Authority ** Health & Human Services Manager-Administration & Financial Services ** Airport Manager-Animal Care Services ** Parks, Recreation & Marine Financial System Integration Officer ** Financial Management Human Resources Officer ** Human Resources Capital Projects Coordinator IV (2 Positions) Public Works Telecommunications Officer ** Technology Services Construction Services Officer ** Public Works Senior Civil Engineer Airport Senior Civil Engineer (2 Positions) Development Services Senior Mechanical Engineer Long Beach Gas & Oil Senior Traffic Engineer Public Works Senior Civil Engineer (2 Positions) Public Works Senior Traffic Engineer Public Works Housing Development Officer ** Development Services
126,539 124,536 124,506 124,321 124,321 124,099 123,788 123,567 123,348 123,338 121,580 121,580 121,580 121,580 121,580 121,580 121,401
11.0% 0.0% 11.0% 0.0% 11.0% 0.0% 5.0% 5.2% 11.0% 11.0% 11.0% 11.0% 11.0% 11.0% 11.0% 11.0% 22.1%
New Person Vacant Neg Increase New Position Neg Increase New Position Neg Increase Neg Increase Neg Increase Neg Increase Neg Increase Neg Increase Neg Increase Neg Increase Neg Increase Neg Increase
Employee Serving in Acting Capacity (Additional 10% in Salary)
Superintendent-Street Maintenance ** General Superintendent of Operations ** Assistant City Controller ** Assistant City Controller ** Petroleum Operations Coordinator I (4 Positions) Superintendent-Airport Security ** Manager-Preventive Health ** Manager-Environmental Health ** Manager-Community Health ** General Superintendent-Development Services ** Planning Officer ** Manager-Main Library Services Fleet Finance Officer ** Manager-Gas Services ** Administration Officer-Public Works ** Business Systems Specialist VI (4 Positions) Communication Specialist VI (2 Positions) Business Systems Specialist V (3 Positions) Business Systems Specialist IV (2 Positions) Manager-Special Events & Filming ** Code Enforcement Officer ** Special Projects Officer ** Superintendent-Refuse & Street Sweeping ** Administration Officer-Public Works ** Occupational Health Services Officer ** Mgr-Customer Service-Technology Service ** Business System Specialist V-Confidential City Safety Officer ** Budget Management Officer Redevelopment Project Officer ** Superintendent-Traffic Operations ** Administrative Officer **
Public Works Public Works Financial Management Financial Management Long Beach Gas & Oil Airport Health & Human Services Health & Human Services Health & Human Services Development Services Development Services Library Services Public Works Long Beach Gas & Oil Public Works Technology Services Technology Services Technology Services Technology Services City Manager Development Services Human Resources Public Works Public Works Human Resources Technology Services Technology Services Human Resources Financial Management Development Services Public Works Long Beach Gas & Oil
121,000 120,898 120,752 120,752 120,562 120,000 119,879 119,879 119,879 119,456 119,456 118,529 118,439 118,199 117,437 117,122 117,122 117,122 117,122 116,552 116,550 116,550 116,550 116,550 115,997 115,684 115,519 115,438 114,864 113,221 113,117 112,391
11.0% 11.0% 0.0% 0.0% 0.0% 0.0% 11.0% 11.0% 11.0% 0.0% 12.0% 5.0% 0.0% 11.0% 0.0% 0.0% 0.0% 0.0% 0.0% -2.1% 11.0% 11.0% 11.0% 11.0% 11.0% 0.0% 11.0% 9.9% 11.0% 11.0% 11.0% 11.0%
Neg Increase Neg Increase New Position New Position New Position Neg Increase Neg Increase Neg Increase New Person New Person Neg Increase New Person Vacant
New Person Neg Increase Neg Increase Neg Increase Neg Increase New Person Vacant Neg Increase New Person Neg Increase Neg Increase Neg Increase Neg Increase
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CITY SALARIES AND THE $100,000 CLUB September 2-15, 2014
Long Beach Business Journal 19
Neighborhood Resources Officer ** Development Services Purchasing Agent ** Financial Management Public Works Chief Construction Inspector Manager-Support Services-Health ** Health & Human Services Civil Engineer (3 Positions) Development Services Nutrition Services Officer ** Health & Human Services Airport Noise Abatement Officer ** Manager-Branch Library Services ** Library Services Petroleum Engineering Associate II Long Beach Gas & Oil Inspection Services Officer ** Development Services Public Works Special Projects Officer ** Civil Engineer (2 Positions) Public Works Planner V Development Services Laboratory Services Officer ** Health & Human Services Long Beach Gas & Oil Gas Supply Officer ** Nursing Services Officer ** Health & Human Services SERRF Operations Officer ** Long Beach Gas & Oil Video Communications Officer ** Technology Services Human Resources Officer ** Human Resources Neighborhood Improvement Officer ** Development Services Plan Checker-Mechanical II Development Services Administration Officer-Airport ** Airport Parks, Recreation & Marine Veterinarian Park Development Officer ** Parks, Recreation & Marine Physician Assistant Health & Human Services Capital Projects Coordinator III Public Works Business Systems Specialist VI (4 Positions) Technology Services Systems Support Specialist VI (4 Positions) Technology Services Systems Support Specialist V Technology Services Administrative Analyst III Technology Services Superintendent-Operations ** Long Beach Gas & Oil Special Projects Officer ** Parks, Recreation & Marine Accounting Operations Officer ** Financial Management Financial Services Officer ** Financial Management Civil Engineer Public Works Facilities Management Officer ** Public Works Business Systems Specialist IV Technology Services Administrative Officer-Development Services ** Development Services Financial Management Budget Analysis Officer ** Revenue Management Officer ** Financial Management Assistant to the City Manager ** City Manager Assistant to the City Manager ** City Manager Development Project Manager III Development Services Transportation Planner III Public Works Real Estate Project Coordinator III Public Works Community Information Officer ** Parks, Recreation & Marine Superintendent-Pipeline Maintenance ** Long Beach Gas & Oil Superintendent-Fleet Maintenance ** Public Works Planner IV Development Services Nurse Practitioner (3 Positions) Health & Human Services Financial Services Officer ** Health & Human Services Administrative Officer ** Health & Human Services Chief Building Inspector Development Services Assistant to the City Manager ** City Manager Plan Checker-Electrical II Development Services Administrative Assistant-City Manager ** City Manager Storm Water/Environmental Compliance Officer ** Public Works Facilities Management Officer ** Airport Planner IV (3 Positions) Development Services Development Project Manager II Development Services Communication Specialist V Technology Services Superintendent-Personnel & Training ** Parks, Recreation & Marine Financial Services Officer ** Financial Management
112,109 111,992 111,900 111,437 110,877 110,460 110,249 110,207 110,082 110,001 110,001 109,834 108,596 107,811 107,669 107,473 107,473 107,473 107,221 107,114 107,085 106,999 106,511 106,323 105,781 105,781 105,781 105,781 105,781 105,781 105,703 105,458 105,311 104,935 104,603 104,345 104,332 104,103 103,984 103,984 103,896 103,896 103,199 103,199 103,199 102,804 102,353 102,120 102,038 102,038 102,001 102,001 101,487 101,402 101,381 101,368 101,145 101,009 100,577 100,575 100,527 100,164 100,097
11.0% 6.7% 10.8% 0.0% 11.0% 11.0% 0.0% 11.0% 11.0% 0.6% 0.0% 11.0% 0.0% 11.0% 11.0% 11.0% 11.0% 11.0% 11.0% 11.0% 10.8% 15.1% 0.0% 11.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 27.8% 11.0% 11.0% 0.0% 0.0% 11.0% 11.0% 11.0% 0.0% 0.0% 11.0% 11.0% 9.2% 0.0% 0.0% 11.0% 11.0% 11.0% 0.0% 0.0% 10.9% 10.2% 0.0% 11.0% 0.0% 11.0% 11.0% 11.0% 0.0% 1.0% 0.0% 11.0% 11.0%
Neg Increase Neg Increase Neg Increase Vacant Neg Increase Neg Increase New Position New Person Neg Increase New Person New Position Neg Increase Neg Increase Neg Increase Neg Increase Neg Increase Neg Increase Neg Increase Neg Increase Neg Increase New Person New Person Neg Increase New Person
New Person Neg Increase Neg Increase New Position Neg Increase Neg Increase Neg Increase New Position New Position Neg Increase Neg Increase Neg Increase
Neg Increase Neg Increase Neg Increase
New Person New Person Vacant Neg Increase New Person Neg Increase Neg Increase Neg Increase
New Person Neg Increase Neg Increase
City Manager Departments – Public Safety $100,000-Plus Base Salary (Double asterisk indicates management position) Position Chief of Police ** Fire Chief ** Deputy Chief of Police ** Deputy Chief of Police ** (2 Positions) Deputy Fire Chief ** (3 Positions) Assistant Fire Chief ** (2 Positions) Battalion Chief Police Commander ** (11 Positions) Battalion Chief (5 Positions) Marine Safety Chief ** Battalion Chief Police Lieutenant (7 Positions) Battalion Chief Police Lieutenant (13 Positions) Battalion Chief Police Lieutenant (5 Positions) Battalion Chief Police Lieutenant (3 Positions) Battalion Chief
Department Police Fire Police Police Fire Fire Fire Police Fire Fire Fire Police Fire Police Fire Police Fire Police Fire
Aug. 1 Salary 243,039 226,240 183,470 183,470 172,550 161,472 155,667 155,384 153,136 151,264 150,867 150,180 149,212 148,982 146,081 145,048 144,412 142,951 141,746
% Change/ Reason 12.0% Neg Increase 12.0% Neg Increase 0.0% New Person 12.0% Neg Increase 12.0% Neg Increase 12.0% Neg Increase 0.0% 12.0% Neg Increase 0.0% 12.0% Neg Increase 1.1% Neg Decrease 1.1% Neg Increase 0.0% New Person 1.1% Neg Increase 4.9% Neg Increase 5.9% Neg Increase 4.7% Neg Increase 1.0% Neg Increase 0.0% New Person
Police Administration Bureau Chief ** Fire Captain Battalion Chief (3 Positions) Police Lieutenant (2 Positions) Manager-Business Operations ** Manager-Administration ** Manager-Disaster Management ** Police Sergeant (29 Positions) Fire Captain (4 Positions) Manager-Administration ** Police Sergeant (26 Positions) Fire Captain (7 Positions) Police Sergeant (14 Positions) Fire Captain (8 Positions) Police Sergeant (3 Positions) Fire Captain (30 Positions) Police Sergeant (11 Positions) Emergency Medical Education Coordinator Fire Captain Deputy Fire Marshal Police Sergeant (9 Positions) Fire Captain (7 Positions) Fire Captain (7 Positions) Police Corporal Police Sergeant (3 Positions) Police Corporal (4 Positions) Fire Captain (3 Positions) Jail Administrator ** Marine Safety Captain Fire Captain (4 Positions) Police Sergeant (2 Positions) Fire Engineer (3 Positions) Police Corporal (2 Positions) Fire Boat Operator (4 Positions) Fire Engineer (9 Positions) Police Corporal (2 Positions) Fire Captain (3 Positions) Firefighter (6 Positions) Criminalist Supervisor Police Officer (8 Positions) Plan Checker-Fire Prevention II Fire Boat Operator Fire Engineer (21 Positions) Firefighter (2 Positions) Police Officer (16 Positions) Police Sergeant Fire Captain Firefighter (9 Positions) Plan Checker-Fire Prevention II Fire Engineer (4 Positions) Police Officer (5 Positions) Firefighter (4 Positions) Police Officer (39 Positions) Fire Engineer (4 Positions) Fire Captain Firefighter (8 Positions) Fire Boat Operator Police Officer (9 Positions) Fire Engineer (16 Positions) Administration Officer-Police ** Marine Safety Captain Administration Officer-Police ** Firefighter (2 Positions) Police Officer (46 Positions) Marine Safety Captain Fire Engineer (2 Positions) Emergency Medical Educator Police Officer (28 Positions) Fire Engineer (4 Positions) Police Sergeant Firefighter (5 Positions) Police Officer (12 Positions) Firefighter (11 Positions) Fire Captain Police Officer (80 Positions) Firefighter (4 Positions) Fire Engineer (4 Positions)
Police 141,679 Fire 139,515 Fire 139,215 Police 138,305 Police 137,639 Dis. Prep/Emrg Comm 135,420 Dis. Prep/Emrg Comm 132,195 Police 131,004 Fire 129,793 Fire 129,259 Police 128,363 Fire 127,383 Police 126,617 Fire 125,592 Police 125,308 Fire 124,993 Police 123,774 Fire 123,567 Fire 122,021 Fire 121,580 Police 121,484 Fire 121,422 Fire 119,725 Police 117,360 Police 116,761 Police 115,853 Fire 115,525 Police 115,500 Fire 113,411 Fire 112,927 Police 112,374 Fire 112,019 Police 112,011 Fire 110,424 Fire 110,349 Police 109,821 Fire 109,558 Fire 109,410 Police 108,596 Police 108,523 Fire 108,129 Fire 108,045 Fire 107,776 Fire 107,538 Police 107,146 Police 107,110 Fire 106,885 Fire 106,634 Fire 106,563 Fire 105,987 Police 105,866 Fire 105,566 Police 105,211 Fire 104,881 Fire 104,781 Fire 104,760 Fire 104,679 Police 104,491 Fire 104,205 Police 104,199 Fire 103,814 Police 103,785 Fire 103,570 Police 103,541 Fire 103,213 Fire 103,211 Fire 103,199 Police 102,821 Fire 102,750 Police 102,725 Fire 102,706 Police 102,201 Fire 102,068 Fire 101,809 Police 101,729 Fire 100,834 Fire 100,801
11.0% 18.7% 0.0% 0.0% 0.0% 0.0% 0.0% 0.2% 0.0% 11.0% 0.3% 3.2% 0.2% 0.0% 0.3% 0.0% 0.1% 0.0% 0.0% 11.0% 0.0% 0.0% 0.0% 2.2% 4.8% 2.1% 0.0% 5.0% 0.0% 0.0% 5.0% 0.0% 2.2% 3.7% 1.1% 2.0% 8.5% 0.0% 0.0% 1.3% 11.2% 0.0% 0.0% 1.1% 1.3% 0.0% 0.0% 0.0% 10.8% 0.0% 1.2% 0.0% 4.9% 0.0% 5.0% 0.0% 0.0% 1.1% 0.0% 11.0% 0.0% 0.0% 0.0% 1.2% 16.5% 3.6% 0.0% 5.7% 0.0% 12.5% 4.5% 1.1% 0.0% 5.2% 1.1% 0.0% 0.0%
Neg Increase Neg Increase New Person New Person New Person New Position New Position Neg Increase Neg Increase Neg Increase Neg Increase Neg Increase Neg Increase Neg Increase
Neg Increase
New Person Neg Increase New Person Neg Increase Neg Increase New Person New Person Neg Increase Neg Increase Neg Increase Neg Increase Neg Increase Neg Increase
Neg Increase Neg Increase
Neg Increase Neg Increase New Person New Person Neg Increase Neg Increase Neg Increase
Neg Increase Neg Increase New Person New Position Neg Increase Neg Increase Neg Increase Neg Increase New Person Neg Increase Neg Increase New Person Neg Increase
Non-City Manager Departments $100,000-Plus Base Salary (Double asterisk indicates management position)
Position Executive Director-Harbor**
Department Harbor
City Attorney ** General Manager-Water ** Assistant Executive Director-Harbor **
Law Water Harbor
Aug. 1 Salary % Change/Reason 351,201 40.1% Prior Employee was Serving in an Acting Capacity 270,771 9.2% New Person 256,408 11.0% Neg Increase 222,763 11.0% Neg Increase (Please Continue To The Next Page)
1_LBBJ_Sept2_SectionA_LBBJ MASTER LAYOUT 8/31/14 6:02 PM Page 20
CITY SALARIES AND THE $100,000 CLUB 20 Long Beach Business Journal
Position Department Assistant General Manager-Water ** Water Assistant City Attorney ** Law Managing Director ** Harbor City Prosecutor ** City Prosecutor Assistant City Attorney ** Law City Auditor ** City Auditor Managing Director ** Harbor Managing Director ** Harbor Principal Deputy City Attorney ** Law Deputy General Manager - Business ** Water Asst Mang Dir-Engineering Design/Maintenance ** Harbor Assistant City Auditor ** City Auditor Assistant Managing Dir-Program Delivery ** Harbor Director of Security ** Harbor Principal Deputy City Attorney ** Law Assistant City Prosecutor ** City Prosecutor Director of Operations ** Water Director of Information Management ** Harbor Director of Engineering ** Water Director-Program Management ** Harbor Director-Human Resources-Harbor ** Harbor Senior Deputy City Attorney Law Executive Director-Civil Service ** Civil Service Director of Communications ** Harbor Director-Real Estate ** Harbor City Clerk ** City Clerk Division Engineer ** (2 Positions) Water Deputy City Attorney Law Assistant Director Security-Homeland Security ** Harbor Director-Environmental Planning ** Harbor Director-Master Planning ** Harbor Director-Construction Management ** Harbor Deputy City Prosecutor III City Prosecutor Director-Government Affairs ** Harbor Director of Trade Development ** Harbor Director-Transportation Planning ** Harbor Assistant Director-Security Support ** Harbor Deputy City Attorney (3 Positions) Law Chief Financial Officer ** Harbor Director of Risk Management ** Harbor Deputy City Prosecutor III City Prosecutor Director of Maintenance ** Harbor Principal Deputy City Attorney ** Law Executive Officer to the Board ** Harbor Director-Engineering Design ** Harbor Deputy Chief Harbor Engineer II (3 Positions) Harbor Deputy City Attorney (2 Positions) Law Manager-Network Operations ** Harbor Manager-Business Applications ** Harbor City Mayor ** Legislative Asst Dir-Environmental Planning /Water Quality **Harbor Senior Program Manager (4 Positions) Harbor Deputy Chief Harbor Engineer I Harbor Manager of Rail Transportation Harbor Senior Program Manager-Water Water Manager-Water Process ** Water Water Treatment Superintendent ** Water Manager-Internal Controls ** Harbor Assistant Director-Human Resources ** Harbor Business Systems Specialist VII Water Deputy City Attorney (3 Positions) Law Deputy City Auditor ** City Auditor Deputy Director-Civil Service ** Civil Service Manager-Technical Security ** Harbor Executive Assistant/Mayor & Council ** Legislative Management Information System Officer ** Water Deputy City Auditor ** City Auditor Manager-Safety/Business Continuity ** Harbor Manager-Environmental Remediation ** Harbor Manager of Master Planning ** Harbor Manager-Sustainable Practices ** Harbor Manager-Contract Compliance ** Harbor Senior Structural Engineer Harbor Deputy City Prosecutor III City Prosecutor Manager-Emergency Management ** Harbor Assistant Director-Real Estate ** Harbor Manager-Security Operations ** Harbor Office Systems Analyst III Harbor Manager-Air Quality Practices ** Harbor Manager-CEQA/NEPA Practices ** Harbor Director-Finance ** Water Assistant Director-Information Management ** Harbor Office Systems Analyst III (8 Positions) Harbor
September 2-15, 2014 Aug. 1 Salary 215,053 213,586 212,943 211,795 202,728 201,464 198,911 185,637 184,299 182,773 175,602 174,400 169,580 168,576 166,034 163,242 161,593 160,048 159,358 158,731 158,731 156,757 154,601 152,775 151,781 149,899 149,627 148,903 148,630 148,509 148,461 148,054 147,778 146,325 145,969 145,520 145,499 144,783 144,071 143,591 143,439 143,001 141,283 139,999 139,000 138,375 137,914 137,159 136,969 136,151 135,764 134,594 134,594 134,594 134,594 134,399 134,015 133,959 133,197 132,999 132,947 131,528 131,267 130,446 130,000 128,393 128,311 128,090 128,088 128,088 128,086 127,652 127,487 126,896 126,433 125,763 125,431 124,611 124,427 124,319 124,114 123,601 123,567
% Change/Reason 11.0% Neg Increase 11.0% New Person 11.0% Neg Increase 5.1% Increase by Charter 8.9% New Person 5.1% Increase by Charter 11.0% Neg Increase 3.6% New Person 11.0% Neg Increase 0.0% Neg Increase 0.0% New Position 9.0% Merit Increase 7.1% New Position 15.9% New Position 0.0% Vacant 11.0% Neg Increase 11.0% Neg Increase 11.9% New Position 11.0% Neg Increase 11.0% Neg Increase 11.0% Neg Increase 3.0% Neg Increase -0.6% New Person 5.0% New Person 11.0% Neg Increase 5.1% Increase by Charter 11.0% Neg Increase 0.0% 11.0% Neg Increase 3.9% New Person 11.0% Neg Increase 3.5% New Person 0.0% 11.0% Neg Increase 11.0% Neg Increase 11.0% Neg Increase 0.0% New Position 0.0% 0.0% Vacant 11.0% Neg Increase 0.7% Neg Increase 0.0% Vacant 11.0% Neg Increase 0.0% Vacant 0.0% Vacant 11.0% Neg Increase 6.1% Neg Increase 0.0% New Position 0.0% New Position 3.1% New Person 16.0% New Person 11.0% Neg Increase 11.0% New Person 10.1% Neg Increase 11.0% Neg Increase 0.0% Neg Increase 0.0% Vacant 0.0% New Position 11.0% Neg Increase 0.0% 0.0% New Person 9.0% Merit Increase 11.0% Neg Increase 0.0% New Position -3.7% New Person 11.0% Neg Increase 9.0% Merit Increase 0.0% New Position 0.0% New Position 0.0% New Position 0.0% New Position 11.0% Neg Increase 11.0% Neg Increase 0.0% Vacant 0.0% New Position 11.0% Neg Increase 0.0% New Position 0.0% 0.0% New Position 0.0% New Position 11.0% Neg Increase 0.0% Vacant 0.0%
Position Department Asst Dir-Communications/Community Relations ** Harbor Director-Planning/Water Conservation ** Water Senior Civil Engineer (18 Positions) Harbor Law Deputy City Attorney Harbor Senior Electrical Engineer Environmental Specialist II Harbor Senior Traffic Engineer (2 Positions) Harbor Chief Surveyor Harbor Environmental Specialist II (2 Positions) Harbor Assistant Chief Financial Officer-Accounting ** Harbor Manager-Transportation Development ** Harbor Deputy City Attorney (2 Positions) Law Legal Administrator-Attorney ** Law Manager-Commercial Trade-Import Cargo ** Harbor Manager-Commercial Trace-Ocean Carriers ** Harbor Port Planner V Harbor Environmental Remediation Specialist II Harbor Senior Civil Engineer (2 Positions) Harbor Program Scheduler Harbor Port Commercial Appraiser Harbor Deputy City Auditor ** City Auditor City Auditor Deputy City Auditor ** Assistant City Clerk ** City Clerk Manager-Infrastructure Maintenance ** Harbor Manager-Utilities/Fleet ** Harbor Manager of Accounting ** Harbor Manager-Facilities Maintenance ** Harbor Port Financial Analyst III (3 Positions) Harbor Port Planner IV Harbor Office Systems Analyst II (2 Positions) Harbor Manager-Workers Compensation ** Law Water Laboratory Manager ** Water Manager-Grants Administration ** Harbor Manager-Business Development ** Harbor Manager-Business Development-FTZ ** Harbor Water Operations Superintendent ** Water Chief Construction Inspector Harbor Senior Civil Engineer Harbor Civil Engineer (12 Positions) Harbor Electrical Engineer Harbor Civil Engineer (2 Positions) Water Senior Port Leasing Officer Harbor Administrative Officer ** City Clerk Chief of Staff-Prosecutor ** City Prosecutor Sewer Operations Superintendent ** Water Port Leasing Sales Officer V Harbor Capital Projects Coordinator III (3 Positions) Harbor Civil Engineer Harbor Senior Civil Engineer Harbor Civil Engineer (2 Positions) Water Senior Civil Engineer (2 Positions) Water Administrative Officer-Water ** Water Manager of Port Projects ** Harbor Financial Reporting/Controls Officer Harbor Port Planner III Harbor Water Quality Organic Chemist Water Capital Projects Coordinator III Harbor Telemetry Systems Superintendent ** Water Business Systems Specialist V Water
Aug. 1 Salary 123,352 123,077 122,624 121,985 121,580 121,580 121,580 121,580 121,580 121,415 121,163 119,497 118,577 118,406 118,406 117,471 115,793 115,793 115,313 115,306 114,999 114,999 114,469 113,284 113,284 112,599 112,384 111,478 111,478 111,478 111,255 110,998 110,990 110,627 110,627 110,537 110,335 110,072 109,834 109,834 109,834 108,596 107,603 106,732 106,588 105,781 105,781 104,603 104,603 104,603 104,603 104,418 104,357 104,242 103,199 103,199 101,988 101,009 100,527
% Change/Reason 11.0% Neg Increase 11.0% Neg Increase 0.0% New Person 2.0% Neg Increase 0.0% New Person 0.0% 11.0% Neg Increase 11.0% Neg Increase 0.0% New Person 0.0% Vacant 0.0% New Position 3.0% Neg Increase 11.0% Neg Increase 0.0% New Position 0.0% New Position 5.4% Neg Increase 11.0% Neg Increase 0.0% New Person 0.0% 0.0% New Person 0.0% New Person 8.4% Merit Increase 11.0% Neg Increase 15.4% Neg and Merit Increase 24.3% Neg and Merit Increase 11.0% Neg Increase 27.7% New Person 0.0% New Person 0.0% New Person 0.0% New Person 5.0% Neg Increase 11.0% Neg Increase 0.0% New Position 0.0% New Position 0.0% New Position 11.0% Neg Increase 11.0% Neg Increase 0.0% New Person 11.0% Neg Increase 0.0% New Person 11.0% Neg Increase 0.0% Neg Increase 11.0% Neg Increase 0.0% New Position 11.0% Neg Increase 0.0% New Person 0.0% New Person 0.0% New Person 0.0% New Person 0.0% New Person 11.0% Neg Increase 7.2% Neg Increase 0.0% New Position 0.0% New Person 0.0% New Person 0.0% 0.0% New Person 11.0% Neg Increase 5.1% Neg Increase
Knocking On The “Club” Door City Manager Departments – Non-Public Safety $90,000-$99,999 Base Salary (Double asterisk indicates management position) Position Financial Services Officer ** Workforce Development Officer ** Planner V (2 Positions) Plan Checker-Fire Prevention (2 Positions) Civil Engineer Workforce Development Officer ** Petroleum Operations Coordinator I Department Safety Officer ** Veterinarian Development Project Manager II Development Project Manager II Development Project Manager II Real Estate Project Coordinator II Principal Building Inspector (6 Positions) Recreation Superintendent ** (3 Positions)
Aug. 1 Department Salary Development Services 99,899 Human Resources 99,899 Development Services 99,409 Development Services 99,239 Airport 98,949 Human Resources 98,624 Long Beach Gas & Oil 98,432 Parks, Recreation & Marine 98,179 Parks, Recreation & Marine 98,096 Development Services 98,071 Human Resources 98,071 Public Works 98,071 Public Works 98,071 Development Services 97,839 Parks, Recreation & Marine 97,125
% Change/Reason 11.0% Neg Increase 11.0% Neg Increase 0.0% Vacant 0.0% New Person 0.0% Vacant 11.0% Neg Increase 11.1% Neg Increase 5.0% Neg Increase 0.0% 0.0% 0.0% 0.0% 0.0% 9.3% Neg Increase 11.0% Neg Increase
1_LBBJ_Sept2_SectionA_LBBJ MASTER LAYOUT 8/31/14 6:02 PM Page 21
CITY SALARIES AND THE $100,000 CLUB September 2-15, 2014
Long Beach Business Journal 21
Position Principal Building Inspector (2 Positions) Admin Analyst IV-Confidential (4 Positions) Airport Public Affairs Officer ** Library Youth Services Officer ** Superintendent-Park Maintenance ** Housing Assistance Officer ** Principal Construction Inspector Administration Officer-Library Services ** Special Projects Officer ** Business Systems Specialist V Business Systems Specialist V (3 Positions) Business Systems Specialist IV (2 Positions) Communication Specialist IV Systems Support Specialist V Department Safety Officer ** Human Resources Officer ** Principal Construction Inspector (2 Positions) Planner III (2 Positions) Financial Services Officer ** Airport Operations Officer ** Workforce Development Officer ** Supt-Park Maintenance ** (2 Positions) Manager-Automated Services ** Administration Officer-Development Services ** Superintendent-Towing & Lien Sales ** Capital Projects Coordinator II Planner III (2 Positions) Capital Projects Coordinator I Capital Projects Coordinator I Traffic Signal Coordinator Traffic Engineering Associate II Planner IV Civil Engineering Associate Civil Engineering Associate Civil Engineering Associate (4 Positions) Traffic Engineering Associate II Homeless Services Officer ** Administrative Analyst III Department Librarian II (3 Positions) Administrative Analyst III Communication Specialist VI Plan Checker-Plumbing II Administrative Analyst III (3 Positions) Senior Accountant Community Development Analyst III Community Dev Specialist V (2 Positions) Administrative Analyst III (3 Positions) Community Development Analyst III Senior Accountant (4 Positions) Administrative Analyst III Administrative Analyst III (2 Positions) Administrative Analyst III Community Development Spec V (3 Positions) Senior Accountant Department Librarian II Administrative Analyst III Senior Accountant Administrative Analyst III (6 Positions) Administrative Analyst III (10 Positions) Real Estate Project Coordinator I Community Development Analyst III Senior Accountant Communication Specialist VI Systems Support Specialist V Communication Specialist V Personnel Analyst III-Confidential Executive Assistant to City Manager ** Recycling & Sustainability Officer **
Aug. 1 Department Salary % Change/Reason Development Services 96,795 0.0% New Person Financial Management 96,729 0.0% Airport 96,599 5.0% Neg Increase Library Services 96,599 5.0% Neg Increase Parks, Recreation & Marine 96,570 11.0% Neg Increase Health & Human Services 96,455 11.0% Neg Increase Long Beach Gas & Oil 96,274 10.8% Neg Increase Library Services 95,771 11.0% Neg Increase Public Works 95,731 11.0% Neg Increase Technology Services 95,635 0.0% Technology Services 95,635 0.0% Technology Services 95,635 0.0% Technology Services 95,635 0.0% Technology Services 95,635 0.0% Public Works 95,462 0.0% New Person Human Resources 95,000 0.0% Vacant Public Works 94,708 11.0% Neg Increase Development Services 94,689 0.0% Parks, Recreation & Marine 94,662 11.0% Neg Increase Airport 94,351 11.0% Neg Increase Human Resources 94,351 11.0% Neg Increase Parks, Recreation & Marine 94,351 11.0% Neg Increase Library Services 94,349 11.0% Neg Increase Development Services 93,786 0.0% Vacant Public Works 93,241 0.0% New Person City Manager 93,228 0.0% New Position Development Services 93,228 5.2% Neg Increase Public Works 93,228 0.0% Public Works 93,228 0.0% Public Works 93,228 0.0% Public Works 93,087 10.9% Neg Increase Development Services 92,068 0.0% Vacant Airport 92,043 11.0% Neg Increase Long Beach Gas & Oil 92,043 11.0% Public Works 92,043 11.0% Neg Increase Public Works 92,043 11.0% Neg Increase Health & Human Services 91,995 5.0% Neg Increase City Manager 91,945 0.0% Library Services 91,945 0.0% Public Works 91,945 0.0% Technology Services 91,945 0.0% Development Services 91,694 16.5% Neg Increase Airport 90,901 0.0% Airport 90,901 0.0% Development Services 90,901 -1.1% Neg Decrease Development Services 90,901 0.0% Development Services 90,901 0.0% New Person Development Services 90,901 0.0% Financial Management 90,901 0.0% Financial Management 90,901 0.0% Health & Human Services 90,901 0.0% Human Resources 90,901 0.0% Human Resources 90,901 0.0% Human Resources 90,901 0.0% Library Services 90,901 0.0% Library Services 90,901 0.0% New Person Long Beach Gas & Oil 90,901 0.0% Parks, Recreation & Marine 90,901 0.0% Public Works 90,901 0.0% Public Works 90,901 0.0% Public Works 90,901 0.0% Public Works 90,901 0.0% Technology Services 90,901 0.0% Technology Services 90,901 0.0% Technology Services 90,799 0.0% Human Resources 90,701 0.0% City Manager 90,503 11.0% Neg Increase Public Works 90,000 0.0% Vacant
City Manager Departments – Public Safety $90,000-$99,999 Base Salary (Double asterisk indicates management position) Position Police Records Administrator ** Fire Engineer (4 Positions) Police Officer (46 Positions)
Department Police Fire Police
Aug. 1 Salary 99,899 99,843 99,607
% Change/Reason 0.0% 0.0% 1.0% Negotiated Increase
Position Department Police Criminalist II-Miscellaneous Plan Checker-Fire Prevention Fire Firefighter (4 Positions) Fire Police Officer (35 Positions) Police Fire Emergency Medical Educator Criminalist II-Miscellaneous Police Firefighter (17 Positions) Fire Police Officer (32 Positions) Police Police Forensic Science Services Administrator ** Fire Engineer Fire Firefighter (2 Positions) Fire Marine Safety Sergeant-BT-OP Fire Police Police Officer (45 Positions) Fire Engineer (2 Positions) Fire Firefighter (12 Positions) Fire Nurse Practitioner Police Police Officer (64 Positions) Police Marine Safety Sergeant-BT-OP (6 Positions) Fire Firefighter (11 Positions) Fire Criminalist II-MISC (2 Positions) Police Police Police Officer (48 Positions) Fire Engineer Fire Firefighter (7 Positions) Fire Forensic Specialist Supervisor Police Administrative Analyst III Police Police Officer (21 Positions) Police Firefighter (10 Positions) Fire Administrative Analyst III (2 Positions) Fire Administrative Analyst III (2 Positions) Police Police Officer (25 Positions) Police
Aug. 1 Salary 99,114 98,718 98,496 98,434 98,071 98,071 98,016 96,597 96,568 96,272 96,236 96,180 96,169 96,040 96,034 95,635 94,500 94,249 93,736 93,228 92,212 92,072 92,068 91,945 91,945 91,784 91,671 90,901 90,901 90,114
% Change/Reason 0.0% Negotiated Increase 10.8% Negotiated Increase 0.0% 1.2% Negotiated Increase 5.2% Negotiated Increase 0.0% Negotiated Increase 0.0% 1.0% Negotiated Increase 0.0% 0.0% 0.0% 10.3% Negotiated Increase 1.0% Negotiated Increase 6.0% Negotiated Increase 0.0% 0.0% Negotiated Increase 5.9% Negotiated Increase 10.5% Negotiated Increase 0.0% 5.2% Negotiated Increase 1.0% Negotiated Increase 0.0% 1.3% Negotiated Increase 0.0% Negotiated Increase 0.0% Negotiated Increase 1.0% Negotiated Increase 10.5% Negotiated Increase 0.0% 0.0% 9.2% Negotiated Increase
Non-City Manager Departments $90,000-$99,999 Base Salary (Double asterisk indicates management position) Position Deputy City Attorney Civil Engineer Environmental Specialist I Water Conservation Specialist Senior Surveyor Port Risk Manager II Communications Officer (3 Positions) Port Leasing Sales Officer IV Water Treatment Supervisor I Investigator III Legal Technologist-Prosecutor Office Systems Analyst II (2 Positions) Workers' Comp Claims Examiner III (2 Positions) Senior City Clerk Analyst Port Planner II Principal Construction Inspector Water Treatment Operator IV Principal Construction Inspector (4 Positions) Environmental Specialist I (2 Positions) Civil Engineer Deputy City Attorney Senior Surveyor Garage Supervisor II Office Specialist-Prosecutor Civil Engineering Associate (2 Positions) Water Utility Supervisor II Investigator II Water Treatment Operator IV City Clerk Analyst (4 Positions) Administrative Analyst III Senior Surveyor Water Utility Supervisor II Civil Engineering Associate (5 Positions) Traffic Engineering Associate II Civil Engineering Associate (3 Positions) Water Utility Supervisor II Audit Analyst Port Planner II Chief Wharfinger Administrative Analyst III (3 Positions) Business Systems Specialist IV (2 Positions) Senior Accountant (2 Positions) Administrative Analyst III (4 Positions) Deputy City Prosecutor II Garage Supervisor II-Harbor
Department Law Harbor Harbor Water Harbor Harbor Harbor Harbor Water Law City Prosecutor Harbor Law City Clerk Harbor Water Water Harbor Harbor Water Law Harbor Water City Prosecutor Harbor Water Law Water City Clerk Water Harbor Water Harbor Harbor Water Water City Auditor Harbor Harbor Harbor Water Water Water City Prosecutor Harbor
Aug. 1 Salary 99,960 99,394 99,394 99,114 98,173 98,071 98,071 98,071 98,071 97,349 96,349 96,301 95,979 95,635 95,635 95,439 95,284 94,708 94,458 94,458 93,560 93,354 93,172 93,160 93,087 93,068 92,878 92,592 92,362 92,362 92,310 92,129 92,043 92,043 92,043 91,920 91,394 90,901 90,901 90,901 90,901 90,901 90,901 90,864 90,668
% Change/ Reason 0.0% New Person in Position 0.0% New Person in Position 0.0% New Person in Position 0.0% 0.0% New Person in Position 0.0% New Person in Position 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% New Person in Position 0.0% 0.0% New Person in Position 0.0% New Person in Position 10.9% Negotiated Increase 0.0% 11.0% Negotiated Increase 0.0% New Person in Position 0.0% New Person in Position 0.0% 0.0% 0.0% 11.0% Negotiated Increase 10.9% Negotiated Increase 0.0% New Person in Position 0.0% 0.0% 1.6% Negotiated Increase 0.0% 0.0% 0.0% 11.0% Negotiated Increase 11.0% Negotiated Increase 0.0% New Person in Position -3.5% Negotiated Decrease 13.6% Merit Increase 13.6% Negotiated Increase 5.3% Negotiated Increase 0.0% 0.0% New Person in Position 0.0% 0.0% 0.0% New Person in Position 0.0%
(To download a pdf copy of the city salary pages, visit www.lbbusinessjournal.com and follow the download instructions)
1_LBBJ_Sept2_SectionA_LBBJ MASTER LAYOUT 8/31/14 6:02 PM Page 22
PERSPECTIVE 22 Long Beach Business Journal
September 2-15, 2014
Are You Tough-Minded Or Hardheaded? Vol. XXVII No. 17 September 2-15, 2014 EDITOR & PUBLISHER George Economides SALES & MARKETING EXECUTIVE Heather Dann SALES & MARKETING ASSISTANT Cori Lambert DISTRIBUTION Conrad Riley EDITORIAL DEPARTMENT SENIOR WRITER Samantha Mehlinger STAFF WRITER Brandon Ferguson PHOTOJOURNALIST Thomas McConville COPY EDITOR Pat Flynn The Long Beach Business Journal is a publication
of
South
Coast
Publishing, Inc., incorporated in the State of California in July 1985. It is published
every
other
Tuesday
(except between Christmas and midJanuary) – 25 copies annually. The Business Journal premiered March 1987 as the Long Beach Airport
e live in a world that is constantly battling for our minds. A weak mind is no match for that kind of exposure. Mental fortification is a must if we are going to survive – let alone thrive – in today’s world. Is talent important? Yes, but that’s not the key. We ■ EFFECTIVE all know talented people LEADERSHIP who have charisma and By Mick Ukleja other gifts, but who lack tenacity and persistence. They aren’t toughminded. They don’t follow their good intentions – often starting things without finishing them. The truth? People don’t receive rewards and recognition, or personal satisfaction by how they began. It’s how they end. Beginnings are important. But endings trump beginnings. All is well that begins well. Yet even better is all is well that ends well. Persistence is really a term that means strongminded, or tough-minded. Persistence is about having a strong mind that gives you the energy and endurance to face challenges. Being toughminded gives you the courage to grow from the stresses you experience. A word of caution, though: tough-mindedness is different than hardheadedness. Hardheaded people might at first appear tough-minded. Hardheaded folks cut themselves off from learning. They are right, “and that’s the end of the debate.” No learning or feedback takes place. And more than anything, the ego is in the way. Tough-minded people seek out feedback and input. In fact strong-minded people do not have
W
weak egos. They will change if there is a better way. They will openly embrace failures as valuable learning tools. They aren’t interested in being right. They are interested in being better. Hardheaded folks are close-minded. The mentally tough are open-minded. Being tough-minded doesn’t mean we are mistake-free. Some mistakes we even grieve. But being tough-minded means we don’t allow grief to become our lifestyle. The mentally tough mourn, whereas the mentally weak moan. There is a difference between weeping and wallowing. A loss can deepen us, but should not define us. It’s an aspect of our maturity, but not our identity. Talent is a gift to us, but don’t rely on talent to carry the day. Tough-mindedness includes . . . Tenacity – Commitment – Courage – Conviction – Humility This helps connect your beginnings to your endings. Tough-minded people learn along the way. And here’s a side effect. People always follow the tough-minded. This is a major quality of a leader. They avoid hardheaded people. Having a strong mind lets people know you are serious. Are there failures and setbacks along the way? Of course! But isn’t that the reason we need to be tough-minded? It tells others you are a contender, and everybody loves a contender. It tells you that you are a winner. Finishing strong is the end, but playing to win is the means to that end. Calvin Coolidge, our 30th president, put it this way: Nothing in the world can take the place of being tough-minded. Talent will not – nothing is more common than unsuccessful people with talent. Genius will not – unrewarded genius is almost a proverb. Education will not – the world
is full of educated derelicts. Persistence and determination are alone omnipotent. The difference between a winner and a quitter is that one has a strong will, and the other has a strong won’t. Are the winners simply lucky? We are all lucky in so many ways. Acknowledge this fact, but do not embrace luck as your friend. Luck is a fairweather friend that shows up once in a while when it’s convenient. Yet it is quick to abandon you. When it’s there, fine. But don’t count on it. It’s like the wind – here one minute, and blowing on someone else the next. Tough-mindedness is the game changer, not luck. Tough-mindedness means that when you fail, you fail forward. Failures become the fertilizer for future growth. When we get to the threshold of our comfort zones, we get tested. This is how we learn in the lab of life. Persistence breaks resistance. Yes, talent lights the flame, but persistence keeps the flame burning. What is beyond your grasp that you need to reach? Bring your personal self-beliefs to the surface so you can challenge them. Go ahead and step over the threshold of your comfort zone. Expand your territory. The way you see your life shapes your life. Mental toughness elevates your game. Blessed are the persistent, for they shall be heard . . . eventually! (Mick Ukleja has co-authored several books including Managing the Millennials. He helps organizations create environments in which all generations can thrive. He is a keynote speaker and president of LeadershipTraq, a leadership consulting firm. His clients have included Fortune 500 corporations and non-profit organizations. Check his weekly blog at www.leadershiptraq.com.)
Business Journal. Reproduction in whole or in part without written permission is strictly prohibited unless otherwise stated. Opinions expressed by perspective writers and guest columnists are their views and not necessarily those of the Business Journal. Press releases should be sent to the address shown below. South Coast Publishing also produces Destinations and the Employee Times magazines. Office South Coast Publishing, Inc. 2599 E. 28th Street, Suite 212 Signal Hill, CA 90755 Ph: 562/988-1222 • Fx: 562/988-1239 www:LBBusinessJournal.com Advertising and Editorial Deadlines Wednesday prior to publication date. Note: Press releases should be faxed or mailed. No follow up calls, please. For a copy of the 2014 advertising and editorial calendar, please fax request to 562/988-1239. Include your name, company and address and a copy will be sent to you. Distribution: Minimum 22,000. Regular Office Hours Monday-Friday 8:30 a.m.-5:30 p.m. Business Journal Subscriptions Standard Bulk Rate: $28.00 1st Class: $70.00 (25 issues – 1 year)
Choose Well During Open Enrollment or many companies, open enrollment will be taking place over the next few months. Employers may be offering a variety of health plan choices for the coming year: keeping the same plan, changing to new plans or opting to let employ■ HEALTHWISE ees use individual plans. By Jay Lee, M.D. For retirees, Medicare’s Annual Enrollment Period (AEP) also arrives Oct. 15 and will end Dec. 7, 2014. With few exceptions, this is the one time of year Medicare beneficiaries can change their coverage for the following year. Regardless of whether people are choosing an employer sponsored plan, a Medicare plan, or a private plan “on or off ” the Covered California Exchange, they should first review their current plan in order to make informed comparisons to new options. Here are some questions to ask when reviewing a current plan: • What did and didn’t work this year? • Do I anticipate any major medical needs for next year, such as surgery, medical equipment, pregnancy, etc.? • Do I foresee any new medications and what tier will they be on the plan formulary? • What were my out-of-pocket costs for this year, (include premiums, co-pays, deductibles and payments for non-covered services)? Once those questions are answered, new plan options can be evaluated with these additional questions: • Do I want to keep my family physician and if I do, can I? • What is the trade-off between possible premium costs and out-of-pocket expenses such as co-pays, deductibles, etc.?
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• Are the costs “up-front” or as I use the services? • Will this plan work better for me/us? Choosing the Right Physician An equally important part of the process is choosing a health care provider. Ultimately, the value of the health plan option selected is determined by the quality of the physician who delivers the care and administers the medical benefits. “They all say they’re good doctors, so how do I know who the best is for me?” As with health plans, research and ask questions about the physician being considered. Recommendations from family and friends are a good place to start. For objective fact-based information, look to un-biased sources. Independent, third-party organizations such as Integrated Healthcare Association (IHA), California Cooperative Healthcare Reporting Initiative (CCHRI) and the Office of the Patient Advocate (OPA) of California, among others, routinely survey patients and publish service and quality of care ratings on physicians and physician groups. Anyone can visit these websites to investigate the scores and grades given to the physicians. What Else Should You Look for From Your Health Care Provider? Along with high ratings from independent sources, patients can maximize their plan benefits by looking at what the health care provider has to offer in the way of convenience, services and best practices. Look for a great full-service health care provider who provides: Access to Care: • Same day appointment availability • Urgent care access at the same co-pay as an office visit and with no pre-authorization needed • Flexibility to be seen near work or home • 24-hour telephone access to a registered nurse advice line • Onsite lab and x-ray
Even if no plan change is made, having gone through this review process can bring peace of mind by knowing the right health plan was chosen. • Connectivity to award-winning hospital • Fully credentialed specialty physician network Up-to-Date Technology and Practices: • Best practice, evidence-based medicine • An electronic medical record (EMR) system connecting patient, physician, urgent care, hospital and other services • Online (email) communication with physicians and the office • Access to medical records and test results • Electronic transmission of prescriptions to pharmacies • Specialty nurses to assist and follow patient care whether in the hospital or at home Not all health plans are created equal and neither are medical providers. The actual value of the health plan benefits selected may very well depend on the quality of care received and how the physician coordinates patient care within the parameters of the plan. Even if no plan change is made, having gone through this review process can bring peace of mind by knowing the right health plan was chosen. Being health wise means looking at health plan coverage choices as well as personal health, especially during the open enrollment period. Be health wise and choose well. (Jay W. Lee, M.D., is a family medicine physician with the MemorialCare Medical Group and assistant program director at Long Beach Memorial Family Medicine.)
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PERSPECTIVE September 2-15, 2014
Long Beach Business Journal 23
Millennials May Hold Key To Housing t seems like everyone in real estate these days is trying to figure out who are the real buyers in today’s market and what segment of the population is going to fuel the next big surge in housing in this country. For years we have REALTY VIEWS heard economists talk By Terry Ross about the impact of the baby boomers (those born between 1946 and 1964), generation X (born between 1965 and 1984) and generation Y – also known as the millennials (born between 1980 and 2000). There is also generation Z (those born after 2000), but they don’t figure in as an economic force just yet. With the significant shifts in generational wealth and habits, predicting which of these groups is more likely to spend or not spend on housing – and the corresponding influence on the economy – seems to be constantly up for discussion. It has been documented that the baby boomers – with many of them at or approaching retirement – represent the largest wealth among these groups and continues to be a driving force in the housing market. But the fastest-growing segment of the population, when it comes to consumer spending, are the millennials. The big question is, will that spending spread to homebuying as it did with the boomers and generation X? Because of what has happened to the economy over the past seven years and to wealth building in general, many are speculat-
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ing that generation X and for sure the millennials will not park as large a percentage of their financial assets in housing as did their parents, which could have long-lasting implications across the economy in general. Millennials, who came of age about the turn of the century, are an extremely fast growing segment of our population. They’re old enough to be buying houses on their own now, but too few of them are doing so. That is why we have a first-time homebuyer ratio in this group that has dropped from the normal 40 percent level to below 30 percent. One of the theories cited by many is that the industry – real estate and banking – hasn’t figured out how to sell to this demographic yet. In about six years, by 2020, one out of three adult Americans will be a millennial. By 2025, they will make up about 75 percent of the workforce. They probably won’t be working for the same big companies their parents worked for, however. In fact, about two-thirds of millennials surveyed agreed with the statement that businesses make too much profit. That’s a higher level of agreement than any other generation surveyed. In surveys, only 19 percent of millennials agreed with the statement that most people can be trusted. When members of older generations were hit with the same statement, more than twice as many agreed that it was true. When it comes to the companies that millennials trust the least, a recent Accenture survey found that financial institutions ranked high on the untrustworthy list. And that’s a shame because this is the group
that has the money. Millennials keep more of their assets in cash and less in stocks, making them, as a group, the best savers we’ve seen in generations. The average millennial investor has over half of their savings in cash, compared to about 25 percent for other age groups. A UBS report described them as the most conservative generation since the Great Depression. Worse, this group is actively moving away from traditional banking. This should come as no surprise, given that nestled in among the 10 least-liked brands for this demographic are four of the nation’s most powerful banks. This is also a perception created by experience – after all, millennials were influenced by the storm of media (traditional and social) about the financial crisis. Many are left with the impression that banks get bailed out, that the mortgage industry crashed the economy, and that the idea of long-term employment is a bygone era. When it comes to financial advice, this techsavvy group will go to the Internet, social media and personal networks for financial advice and not the bank branch or financial advisor. Whether this is just youthful naivety or a longterm value change for a new generation remains to be seen but, for now, the shift in attitudes is causing broad ramifications in the industry. With millennials representing the largest demographic group in the country, their noncommittal attitude toward everything from jobs to marriage is stifling the housing recovery. “The millennials will have a huge impact on the housing market,” says Jed Kolko, chief economist for the real estate website, Trulia.
“Whatever this age group does, whether it’s housing or jobs or consumer spending, will have a big effect on the economy.” Polls suggest that millennials haven’t given up on homebuying altogether, but are simply delaying the decision. Herb Tousley, director of real estate programs at the University of St. Thomas, said that the lack of job security is a major factor. “Young people are reluctant to commit to purchasing a home if they think there is a chance that they end up in a different job across town or in another city,” he says. Research indicates that the recession was particularly hard on the millennials, who are more likely to be unemployed than other age groups and are more in debt. The number of millennial households in their 30s is expected to increase by 2.7 million over the coming decade, boosting demand for new and existing houses. More than 90 percent of millennial renters say they’ll eventually buy, despite coming of age during the worst housing crisis since the Great Depression. “Ultimately,” says Daniel McCue, research manager for the Joint Center for Housing Studies at Harvard University, “The large millennial population will make their presence felt in the owner-occupied market just as they have already have in the rental market.” .(Terry Ross, the broker-owner of TR Properties, will answer any questions about today’s real estate market. E-mail questions to Realty Views at terryross1@cs.com or call 949/457-4922.)
Southern California’s Role As A Major Trade Gateway ast week’s announcement that longshoremen and the Pacific Maritime Association reached a tentative deal on health benefits was welcome news to an industry still recovering from a nearly ■ TRADE AND decade-long ecoTRANSPORTATION nomic buffeting. A new contract will By Tom O’Brien allow everyone to get back to the business at hand: moving cargo. While that means tracking TEU volumes at the port, the health and well-being of the goods movement industry also depends on other trade sectors. This includes air cargo. Southern California’s role as a major trade gateway is defined not only by our ports, but our airports as well, LAX in particular. LAX is the world’s 14th largest air cargo airport, moving some 1.7 million tons of freight last year. It is the 5th largest air cargo facility in North America, trailing only Memphis and Louisville which are hubs for small package operations, Anchorage – a major air cargo transshipment center, and Miami. Carriers across the globe experienced declines in business as a result of the recent global financial crisis. Currently, air cargo is making a rebound, but unrest in the Middle East, financial issues hampering Europe, complex security requirements, environmental regulations, and a need for greater collaboration within the industry are still holding air cargo back. As the most expensive mode of goods movement, air cargo is particularly sensitive to shifts in supply and demand as well as global financial and political trends. But there are some bright spots. One of the greatest air cargo growth opportunities in California is in the agri-
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cultural sector. Maritime shipping can be unreliable for value-added goods movement (such as fragile produce products), worldwide demand for such goods is increasing rapidly, and more liberal import/export laws are opening new markets for California producers. However, as international passenger and cargo volumes increase, a currently stressed California transportation infrastructure will be increasingly burdened. LAX and San Francisco International Airport (SFO) together handle close to 100 percent of all airborne imports into California and more than 90 percent of all airborne exports from the state. Both airports face severe constraints on their ability to handle significantly greater levels of additional cargo. LAX has little room for expansion and faces very stiff political opposition from neighboring communities to any increase in flight operations. SFO suffers from high rates of weather-induced flight delays and diversions and has been slow to upgrade its air cargo handling capabilities. Highway access to both facilities is increasingly congested, posing a particular problem for shipments of perishable commodities. And then there are the planes. As ever increasing ship size poses challenges for ports, the development of new airplanes challenges airports. New passenger aircraft types will require expensive improvements to airport facilities, especially for major airports like LAX, and impact overall airport capacity. As a result, land acquisition will play a pivotal role in future air cargo success as will creative funding approaches, such as private venture capital, that make expansion possible. The ability of airports to raise revenue from parking, retail operations or passenger facility charges may determine, in part, how accommodating an airport is to cargo operations. So both large scale infrastructure and operational improvements will need to take place. But there are a number of smaller initiatives that can also be undertaken to streamline air cargo activities and improve the outlook for the industry.
This includes facilitating risk-focused Transportation Security Administration (TSA) air cargo screening which makes for a more efficient and effective supply chain. The industry could also benefit from more inter-industry collaboration. Far-flung networks are the hallmark of the air cargo industry and help keep the supply chain moving despite economic fluctuations. Technological innovation will help facilitate information sharing as well as the development of new relationships from an operational and security perspective. Traditionally strong air cargo markets like those in North America and Asia are important but so are rapidly growing markets in places like Latin America. Collaboration will matter there too.
Collaboration between the industry and local government is also critical. Currently, airport development and planning is disjointed. The continuing shift toward making transportation investment decisions from an intermodal perspective will require increased attention to the broader context of airport development. Increased coordination between airports and regions will achieve greater efficiency within the system while addressing major infrastructure needs. (Dr. Thomas O’Brien is the interim executive director of the Center for International Trade and Transportation at CSULB and an associate director for the METRANS Transportation Center, a partnership of USC and CSULB.)
Long Beach International City Bank Marathon Official Program . . . Inserted Into The September 30 Edition Of The Business Journal And 22,000 Copies Of The Program Given Out – One To Each Marathon Participant For Media Kit, Call 562/988-1222 Ad Space Deadline: September 24
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Focus On Westside Industrial Area
Inside This Issue Tell Steel employee Lorenzo Armendariz cuts a piece of metal with a plasma cutter. Tell Steel was founded in 1959. (Photograph By The Business Journal’s Thomas McConville)
• Westside Overcomes Historical Tension With City And Keeps On Chugging • A Tale Of Two Cities • Westside Offers Diversity Of Services
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WESTSIDE INDUSTRIAL AREA September 2-15, 2014
Long Beach Business Journal 27
The industrial areas of the westside include the Westside Industrial Project Area in the foreground and the Magnolia Industrial Group on the east side of the Los Angeles River and Long Beach Freeway. There are approximately 700 businesses in the two industrial areas combined, which stretch from Pacific Coast Highway on the north to roughly Anaheim Street to the south. Both industrial areas are close to Downtown Long Beach and the Port of Long Beach. (Photograph by the Business Journal’s Thomas McConville)
Westside Overcomes Historical Tension With City And Keeps On Chugging ■ By BRANDON FERGUSON Staff Writer escribed as a critical “economic engine,” Long Beach’s Westside Industrial Area is a world unto itself. Though part of the city proper, the region feels far removed from the patchwork of residential neighborhoods and trendy business districts found throughout the rest of the city. In satellite photos of the westside, densely colored housing tracks encircle a faint, oblong sprawl of industrial complexes stretching from just east of the Los Angeles River to the Terminal Island Freeway. Here, container trucks idle along the narrow streets, which hum with forklifts loaded with pallets and boxes. The omnipresent thrum of heavy machines stamping metal rings out from the gaping double doors of aluminum-sided buildings. Divided into two sections, approxi-
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mately 700 businesses inhabit the area – 300 on the east side of the river, which is represented by a property and business improvement district (PBID) called the Magnolia Industrial Group (MIG), and 400 west of the river, which is represented by the Westside Project Area Council (WestsidePAC). While local entrepreneurs tell the Business Journal that, these days, the westside is a good place to run a company, that wasn’t always the case. Deepseated mistrust between Westside business owners and city hall boiled over in the 1970s and ’80s – back before the area had properly paved roads, gutters and streetlights. Fears that the city would aggressively use eminent domain to force out existing businesses led westside business owners to sue the city in 1975. The suit was settled in 1981 when the city agreed not to use its eminent domain powers. According to a September 1985 Los
Angeles Times article, as part of the settlement, the city agreed to spend $23 million to improve roads, sewers and utilities on the westside. Those who remember the era say progress was slow. Pat Cullen, president of Dion and Sons, told the Business Journal that in 1989 the street where his business was located was still largely a dirt road. “Prior to that we did not have curb and gutter. Prior to that we did not have storm drains. Prior to that some of the businesses were still on septic system,” Cullen said. “To save people from running into my building, I had staked telephone poles to keep cars away from the building.” Much of the city’s neglectful attitude, Cullen said, stemmed from attitudes left over from the area’s navy days. “There was a stigma that it was still old navy property and the federal government took care of everything,” Cullen said, adding that the city held negative
views of the area’s former “swabby” residents. “That carried over for a long period of time.” But things did slowly begin to improve. In 1997 the westside welcomed a police substation, and redevelopment brought building improvements, sidewalks and streetlights. While hundreds of businesses, many of them family owned, operate in the area, leaders representing the westside’s two business districts, say concerns linger over truck congestion and the need for upgrades to roads and other infrastructure. Yet, despite the ongoing concerns, Jane Kelleher, who serves as vice chair of the Westside PAC, explained the region continues to be a powerful economic force. “We have some very old companies that provide well-paying jobs. Some of them have been around for years, so it’s a good strong industrial base,” she said, adding, “[The westside] keeps on chugging along, whatever the circumstances.” ■ (Please Turn To Next Page)
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WESTSIDE INDUSTRIAL AREA 28 Long Beach Business Journal
September 2-15, 2014
A Tale Of Two Cities ■ By BRANDON FERGUSON Staff Writer epending on what side of the river they fall on, businesses in West Long Beach benefit from one of two advocates. West of the Los Angeles River (the lion’s share of the industrial area) is represented by the nonprofit group, Westside Project Area Council (Westside PAC). Originally formed in the 1970s as a liaison between the redevelopment agency (RDA) and the community, Westside PAC now acts as a conduit for the concerns of area businesses. The project area is bordered by Pacific Coast Highway, the Terminal Island and 710 freeways, and Anaheim Street. East of the river, businesses are represented by the Magnolia Industrial Group (MIG), which, unlike the non-profit Westside PAC, is a property and business improvement district (PBID). Originally formed in 1996, the district is bordered by Pacific Coast Highway, 12th Street, Magnolia Avenue and the Los Angeles River. A PBID is formed with the consent of more than 50 percent of the area’s property owners who agree to pay a fee to the PBID based on the size of their properties for services such as security. In July of 2013 the city council approved a 10-year extension of the MIG PBID, which was supported by more than 77 percent of the area’s businesses.
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Business Leaders Express Their Concerns estside PAC Vice Chair Jane Kelleher explained to the Business Journal that some of the concerns on the minds of westsiders involve projects that have yet to be approved. Chief among them is BNSF’s proposed Southern California International Gateway rail yard project (SCIG). The $500-million project is slated to be built adjacent to the westside in the community of Wilmington on 156 acres. “That’s a big concern for westsiders because of the number of trucks. I think by their own [BNSF’s] projections there are going to be 5,000 more trucks [daily] coming down Anaheim Street. We can’t handle that,” Kelleher said. In 2013 the Business Journal reported that several entities, including the City of Long Beach and the Long Beach Unified School District, consolidated lawsuits against BNSF and the City of Los Angeles over the proposed rail yard, citing concerns over increased truck traffic and pollution. The state attorney general joined the action in July on the side of the petitioners. Long Beach Assistant City
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Pictured on a 60-foot platform next to a diving tank is the team at Subsea Global Solutions, located at 1651 Seabright Ave. The company employs specially trained divers who perform underwater ship repair and maintenance services. From left: Operations Coordinator John Renaud, Operations Manager Karl Lutz, Diver Bailey Logan, Diver Blake Riddle. Headquartered in Miami, the firm has operations in the Caribbean, Europe, North America and the Far East. For more information, call 562/436-2701 or visit www.subseaglobalsolutions.com. (Photograph by the Business Journal’s Thomas McConville.)
Attorney Michael Mais said he expects a trial date to be set in the spring. Regardless of whether or not the project is approved, truck traffic always has been (and likely always will be) an issue on the westside. Greg Moore, president and CEO of Tell Steel, half jokingly said that, with the current flow of truck traffic and rigs parked in the area, motorists occasionally take their lives into their own hands when navigating westside streets. “You’ve got to go out into the middle of [the street] to see around the truck and by that time somebody is about to hit you,” Moore said. Mark Shutts, owner of Shutts Fabricators, expressed frustration at idling trucks that often park near his business. Once, he said, a trucker left a rig double-parked in front of his business, blocking him in. “We were parked in, we couldn’t leave until [the driver] got back,” Shutts said. One project currently under consideration that could potentially mitigate truck traffic in the area is a plan by the Port of Long Beach to build an on-dock rail system at Pier B. The pier is located south of Anaheim Street adjacent to the 710 Freeway. Lee Peterson, a spokesperson with the port, said the project would allow ships to offload cargo directly onto trains (and vice versa), which could then be shipped out across the country. “There wouldn’t be any truck trips involved, at least not here at the port,” Peterson said. But while Kelleher said westsiders would like to see the project move forward, construction of the on-dock rail facility could lead to significant traffic disruptions for businesses in the area. “One of the options for this Pier B ondock project was to remove the ramp connecting the 9th Street freeway access to downtown,” Kelleher said. “That’s how we get to downtown.”
Added Daryl Phillips, owner of Phillips Steel, “We are highly affected by that because it’s our egress and ingress to our neighborhood.” According to Peterson, the port is in the process of drafting its environmental impact report for the project, which he said should be completed in spring 2015. The report is expected to consider multiple options for construction. “We’re studying three alternatives,” Peterson said. “Two of which do not affect that [9th Street] connection.” While Peterson explained that port officials don’t currently have a preferred alternative in mind, there will be public discussion once the EIR is released. “We’ll solicit comments from the public and all of the stakeholders who want to get involved, including the folks that have businesses and live and work on the westside, of course,” Peterson said.
Life After Redevelopment roposed construction projects in the area aren’t the only issue causing growing pains for 2estsiders. Tony Rivera, who chairs the Westside PAC, explained that since the dissolution of redevelopment agencies in 2012, businesses interested in expanding are coming up against a wall because of government bureaucracy. Rivera sited the example of a westside welding company located next to one of the 26 vacant lots currently owned by the city in the project area. “They want to grow, and they’ve been trying to buy the property . . . they want to get bigger, but they can’t. The dissolution of the RDA and those issues, it’s been a little tough,” Rivera explained. According to Mike Conway, Long Beach’s business and property development director, the 26 properties in question were all formerly owned by the redevelopment agency. He explained to the Business Journal that under Assembly Bill 1484, passed in June
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2012, the city was required to submit a longrange property management plan to the California Department of Finance. Conway said the city submitted the plan in October of 2013 and added that, until the state approves the plan, the city’s hands are tied when it comes to selling the properties. “The department of finance has the obligation of reviewing and approving that plan or modifying or recommending modifications before the successor agency can do any type of transaction with the property,” Conway said. “It’s been a little frustrating because we’ve heard nothing back from them since October 2013.” While the city awaits Sacramento’s decision, Rivera said he’s concerned businesses wanting to expand will leave for other areas such as Carson, where there’s more room to grow. He said business owners have come to him inquiring about property in the area, but have decided to locate in other areas. “I already have several, and they just went to another place. They’ve been going to LA, [and] Carson. Long Beach is basically out,” Rivera said. Vacant lots aren’t the only reminder of the loss of redevelopment. Back in 2010 the agency began a storm drain improvement project to deal with flooding during the rainy season in the project area. Due to the dissolution of RDA, the project was never completed. Though the state is currently experiencing a drought, the area is still prone to flooding, which affects businesses. “When you talk about subterranean pumping stations, we see it every year,” Phillips said. “The funds have been dwindling and these projects are incomplete. I think [the city] is doing the best they can, but these are all critically important issues to discuss for the welfare of the westside.” Other infrastructure issues for the Westside Project Area include an antiquated electrical grid. “The electrical grid on the westside is the
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WESTSIDE INDUSTRIAL AREA September 2-15, 2014 only grid [the city] hasn’t upgraded,” Moore said. “If you go across the street to the industrial park on Pacific Coast Highway, they have fiber optic right now. We’ve got copper wire over here.” Over on the MIG side of the river, infrastructure remains a concern as well; however, crime, once a significant issue for area businesses has declined since the PBID was established. MIG President Bill Townsend attributes this to quality police services and the constant patrols of privately owned Platt Security, whose services are funded by the PBID. “When we first started we had graffiti, prostitution, we had a metal recycling company right in the middle of the district, and [thieves] literally stealing metal off of buildings in the area. It was terrible,” Townsend said. While crime has dropped, Mike Zupanovich, who for nearly 40 years has run Harbor Diesel And Equipment Incorporated, said other problems such as illegal dumping continue to be a problem. In recent years, homeless people living in motor homes parked along the streets were also a problem. About a year ago, Zupanovich said the city put in signs in the MIG area restricting parking between 2 a.m. and 5 a.m., though he added the vehicles have begun appearing in other areas of the westside.
Long Beach Business Journal 29
John Provenghi, owner of Bruno & Sons Cabinet, right, and his nephew Charles Provenghi, are working on maple cabinets at the shop located at 1690 Hayes Ave. The company has been providing cabinetry services since 1959. For more information, call 562/432-1720. (Photograph by the Business Journal’s Thomas McConville.)
When asked about infrastructure, Zupanovich said the streets are in a poor condition and most haven’t been repaved in the 40 years since he started his business. “It’s just been pothole filling,” Zupanovich said. “There’s been more and more industrial and truck traffic in the neighborhood and potholes are just going to keep happening.” While he said that fewer incentives for business, especially since the days of rede-
velopment, have led to frustration, Zupanovich said the Westside is where his roots are and any thoughts he’s had about leaving the area are usually short lived. “The council districts are friendly and help us as they can, and listen. We have a voice with them and with the [police]. Could it be better? Absolutely. I’ve stated that I feel Long Beach leans too much toward being socially friendly rather than
business friendly. They’ve got to find a better balance because the businesses are what create jobs and get people out of unemployment and get the economy going.” First District Councilmember Lena Gonzalez, who has met with westside business leaders since her days as a staffer for former councilmember/now mayor, Robert Garcia, said she understands the frustrations of many businesses – especially when it comes to the issue of expansion. She told the Business Journal that she has discussed the issue with Conway and hopes to make expansion easier once the state approves the city’s long-term management plan. Gonzalez added that she also supports Mayor Garcia’s recent recommendation to restructure the business and economic development department in order to more strategically dispose of the city’s former redevelopment parcels. “We need to put more responsibility on that department,” Gonzalez said. “They were focused for so long on redevelopment dissolution and the long-range management plan. That’s going to end now. We need to focus on expansion, attraction and also business retention.” She added, “I hope to give [westsiders] more attention so they will know that they have a partner in this city.” ■ (Please Turn To Next Page)
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WESTSIDE INDUSTRIAL AREA 30 Long Beach Business Journal
September 2-15, 2014
The City’s Westside Industrial Areas Offer A Diversity Of Services ■ By BRANDON FERGUSON Staff Writer ake a drive through the Westside Industrial Area and one thing becomes clear – businesses offer an incredibly diverse array of goods and services. Wholesalers, forklift repair, architects, fabrication, manufacturing, aerospace . . . and the list goes on. Many businesses are family owned and have been handed down for generations – some are approaching 100 years in business. Some are small, employing immediate family, but have been contributing to a global economy for years. A person could spend a month wending through the neighborhoods and streets here and not scratch the surface of the work being produced. The Business Journal spent a several days talking to some local businesses. Here’s what they had to say.
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Watts New In Electric d Spotskey has owned Spot Lighting Supplies located at 1200 Oregon Ave. for the past 15 years. His uncle originally founded the company in 1974. “We are primarily wholesale lighting – bulbs, ballasts, commercial fixtures. Not the stuff at Lamps Plus, we’re more industrial fixtures,” Spotskey said. With nearly 15,000 square feet of inventory housed in two westside buildings, Spotskey stocks merchandise from GE, Sylvania and Phillips. He explained that between 30 and 35 percent of his business comes from Internet sales, with national distributors accounting for another 20 percent. The rest, Spotskey said, goes to local contractors. “We sell to the Queen Mary, the convention center, the downtown hotels,” he pointed out. When asked about where the lighting industry is headed, Spotskey explained that LED lighting, which can last between 50,000 and 100,000 hours, is revolutionizing the business. “With LED, you have no more maintenance of the fixture. You don’t have to buy light bulbs anymore. No maintenance, no further purchase of light bulbs,
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Ed Spotskey has owned Spot Lighting Supplies located at 1200 Oregon Ave. for the past 15 years. The company, which was founded by Spotskey’s uncle in 1974, is a wholesaler of industrial lighting products. Though his 15,000 square feet of inventory includes conventional light bulbs and fixtures, Spotskey is most excited about the impact that advances in LED lighting – which is more efficient than other lighting sources – is having on the industry. For more information, call 562/437-1300 or visit www.spot-lighting.com. (Photograph by the Business Journal’s Thomas McConville.)
and you have significant energy savings. That’s why this is such a popular light source,” Spotskey said. While most businesses struggled during the recession, Spot Lighting Supplies ironically managed to grow. Spotskey explained because his business purchases a lot of surplus, deals were plentiful at a time when other businesses were liquidating their inventory. “It was the best time in Spot Light’s history. We increased business every single year,” Spotskey said. Though he does business on a national level, Spotskey said he treats his workers like family. “We have a chef come in every day and cook lunch for us. We sit down as a family and eat. We shut the business down. We shut the phones off and we shut the door. We discuss business a lot and we have vendors in. We started that two and a half years ago. And it’s made all the difference.”
cutting. We basically cut to the shape or size the customer needs.” While he expressed concern over westside truck congestion and lack of fiber optic utilities, he said he’s noticed the city has been more cognizant of the westside’s business concerns as of late. “In working with some of the city officials in the last year or so, there’s been a sense that they’ve been more cooperative than they have been in the past. It’s a positive approach,” Moore said.
Phillips of Phillips Steel, located at 1368 W. Anaheim St., said his company has been in the same location since 1933. Family owned since the beginning, the company celebrates its centennial anniversary next year. Phillips Steel employs 65 workers. He explained that, though he’s been active with the Westside PAC for years, he hasn’t attended as many meetings lately and added that, while the area has ongoing infrastructure issues, he believes the city is doing a pretty decent job.
Steel Resolve reg Moore has served as president and CEO of Tell Steel, located at 2345 W. 17th St., for the past 10 years. A 100,000-square-foot compound, Tell employs 53 workers. The business got its start in the same location it stands today, back in 1959. “We buy materials, finished products from the mills. We sell them to the end users – refineries, machine shops, even a little bit to the City of Long Beach,” Moore said. “We do a lot of saw cutting, plate cutting, plasma cutting and water jet
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Tell Steel employee Lorenzo Armendariz is pictured cutting metal with a plasma cutter. Tell Steel is located at 2345 W. 17th St. and has been in business since 1959. The location features several buildings totaling 100,000 square feet of space, where a variety of cutting techniques provide end users (including the City of Long Beach) with metal products cut to requested sizes and shapes. For more information call 562/435-4826 or visit www.tellsteel.com. (Photograph by the Business Journal’s Thomas McConville.
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WESTSIDE INDUSTRIAL AREA September 2-15, 2014
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“Really, the city manager is doing an excellent job. He’s got limited funds, but I think they’re doing the best they can,” Phillips said. “We’ve made do the best we can with what we have to deal with. We’re all business people, and you know we’re pretty ingenious sometimes when it comes to working around these issues,” Phillips said laughing.
Fueling The Economy he Long Beach Travel Center, located at 1670 W. Pacific Coast Hwy., can get a little busy during the week as truckers queue up along the Shell station’s islands waiting to gas up their rigs. Spread out across an acre and a half, the center features a convenience store, a Carl’s Junior, Green Burrito as well as a check cashing service and Western Union. Owner Gil Ficke explained that the center as it currently
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Brothers Gus (left) and Gil Ficke are owners of the Long Beach Travel Center, located at 1670 W. Pacific Coast Hwy. The one-and-a-half-acre property features a Carl’s Jr., Green Burrito, and a convenience Store, as well as money wiring and check cashing services. The center’s gas station serves local truckers delivering goods to and from the port. On busy days, the station refuels its tanks as many as eight times. For more information, call 562/983-7827. (Photographs by the Business Journal’s Thomas McConville.)
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WESTSIDE INDUSTRIAL AREA 32 Long Beach Business Journal sits was built in 1999, prior to which it had been just a simple gas station. “We bought the apartment building next door and expanded some fuel islands, then through redevelopment in the ’90s we were able to purchase some property behind us and ended up with three-fourths of the city block and built a whole new facility,” Ficke said. He explained that most of the truckers who buy fuel at his station are operators delivering goods locally. “The traffic here is local port traffic. We do get a couple long haulers, but most are the local business people who go home at night,” Ficke said. Being positioned so close to the port, from which a veritable river of commerce runs, has given Ficke a unique window into the ebb and flow of the economy. As a result, he was able to adjust his business accordingly before the recession hit. “We were anticipating it. Being associated with the port, we actually see what’s going on with volume before the reports come out in the news about retail sales,” Ficke said. “We actually started seeing a decline in 2007 and started making adjustments accordingly, to try and limit our overhead.” Today, business is good. He explained that Mondays are often busy days for the Travel Center, requiring multiple refuels of the underground tanks. “On Mondays we actually don’t have enough storage capacity. We actually have to bring in truckloads during the day. On some Mondays we have to bring in as many as eight loads of fuel,” Ficke said.
September 2-15, 2014 Aircraft Company. He began there in 1979 as an apprentice running machines and doing straightening work. He founded A&A Aerospace about nine years ago in a small building on 16th Street. Today, he employs more than 30 workers and operates four buildings total-
ing 19,400 square feet on a block between 16th and Cowles Street. He said the company, which provides fabrication, forming and deburring of aviation components, is in the process of expanding. While the company currently serves other machine shops, Puentes hopes to soon be interfacing
Fabrication Station Shutts owns Shutts ark Fabricators, located at 1632 W. 15th St., and went to grade school on the westside. “I’m from this area. I moved away and moved back. The building was right. I thought the area was correct,” Shutts said. He added that he was drawn to do business on the westside because it was a good place to do noisy work without drawing too much attention to himself. “I started my business a long time ago in my garage. Everytime I’d weld or cut metal somebody would go, ‘Hey, what are you doing in there?’” Shutts said. Housed in a 3,500-square-foot building with an additional 500 square feet outside, a large portion of Shutts’ business comes from the yachting industry. A former professional yacht racer, he fabricates equipment such as rails, anchor rollers and fuel tanks. He also does work for port customers. Projects have included fabricating hydraulic tanks for port cranes, as well as conveyor belts used to load grain from hopper cars onto ships. A family-run operation that has been in its current location since 2005, Shutts runs
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The Sky’s The Limit rnie Puentes, owner and president of A&A Aerospace Forming and Fabrication Corporation, located at 1951 W. 16th St., got his start at another local aerospace business, the family-owned Neill
directly with the aviation industry’s prime movers – Lockheed, Boeing and Northrop. “Right now we are expanding. We’re infusing some capital into the operation to buy machines so we can go ahead and go with the big boys,” Puentes said. He explained that now is an exciting time for the aviation industry with unprecedented sales numbers in places like Dubai, United Arab Emirates and Toulouse, France. Puentes cited the recent purchase by the Bank of China of 82 Boeing 737 planes – a deal reportedly worth $8.8 billion. “That’s just music to my ears,” Puentes said.
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A&A employee Fermin Anaya is pictured working in the deburring department. He’s seen here removing blemishes from parts that will be used on a Boeing 737. For more information, call 562/901-6803 or visit www.aaaerospace.net. (Photograph by the Business Journal’s Thomas McConville.)
Arnie Puentes, left, is president of A&A Aerospace Forming and Fabrication Corp., located at 1951 W. 16th St. Puentes got his start in the aerospace business in 1979 at the locally owned Neill Aircraft. A&A, which was started nine years ago, offers straightening, deburring and forming services for the machine shops serving aerospace companies. Puentes said he’s infusing capital into his business and plans to begin working directly with major industry players including Boeing and Lockheed. Nine years ago, Puentes explained he started with one small building on 16th Street. He now runs four buildings in the area totaling 19,400 square feet. At right, Manufacturing Leadman Ignacio Ortiz is shown checking dimensional tolerances on parts that will be used for an F5 fighter jet. For more information, call 562/901-6803 or visit www.aaaerospace.net. (Photographs by the Business Journal’s Thomas McConville.)
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WESTSIDE INDUSTRIAL AREA September 2-15, 2014
the business with the help of his wife and son, as well as occasional help from his son’s friends. When asked about the main issues businesses face on the westside, Shutts said he had few complaints, adding that the police do a good job of patrolling the area.
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“The truck congestion – that would be the only thing that would be a real bummer. And there’s a lot of dust over here. It’s ok, it’s an industrial area. I make dust too. Our cars get dirtier over here,” he said. ■
Mark Shutts, who owns Shutts Fabricators, is pictured at left working on a piece of metal that will be used in a custom fabrication. The firm has been located at 1632 W. 15th St. for the past nine years. Prior to opening a shop in the Westside Industrial Area, Shutts’s business was located in the Shipyard Marina for 16 years. The company specializes in fabricating parts for the yachting industry, but also creates equipment for port and other industrial customers. Pictured above with Shutts are, from left, employee Greg Cain, son Luke Shutts and wife Judy Shutts. For more information, call 562/432-4648 or visit www.shuttsfab.com. (Photographs by the Business Journal’s Thomas McConville.)
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