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ege The Coll s es Of Busin tration Adminis B At CSUL
Health Wise
Beating The Heat Du ring The Dog Days Of Summ er
iness giate Bus Int’l Colle on Competiti Strategy 4 See Page
See Page 18
lbbusinessjournal.com
July 8-21, 2014
Inaugural Events
Solar Panels
Mayor-elect Robert Garcia’s Transition Team Announces Series Of Free Public Events
Permitting Power: The Battle Over Residential Solar Panels
Four events – all open to the public – are marking the occasion of Robert Garcia preparing to serve as the new mayor of Long Beach. Following is the schedule as presented by Garcia’s Transition Team. For more information or to get involved, visit: http://celebratelongbeachinaugurations.com/.
Saturday, July 12, 8 a.m. Day-of-Service: Tree Planting Garcia and community members will plant 75 to 100 Crepe Myrtle Trees along Atlatnic Avenue and Artesia Boulevard in North Long Beach. Volunteers will gather at Houghton Park at 8 a.m.
Tuesday, July 15, 8 a.m. Interfaith Prayer Service An Ecumenical Blessing for Unity Representatives of many faiths in Long Beach will provide blessings to the leadership of Long Beach at the Assumption Greek Orthodox Church, 5761 E. Colorado St.
Tuesday, July 15, 5:30-7 p.m. Ceremonial Swearing-in Mayor-elect Robert Garcia and other newly elected Long Beach City officials will be sworn in at the Terrace Theater of the Long Beach Performing Arts Center, 300 E. Ocean Blvd. Enter off Seaside Way for free parking.
Tuesday, July 15, 7-10 p.m. Inaugural Celebration A celebration that includes all elected officials is being held at the Pacific Ballroom at the Long Beach Arena. The event is hosted by Children Today.
Garcia Names Mark Taylor His Chief Of Staff Mark Taylor, a former chief of staff to a city councilmember and most recently the director of college advancement, public affairs and governmental relations for Long Beach City College, has been named by Mayor-elect Robert Garcia to serve as his chief of staff. “I’ve known Mark for 10 years and have had the opportunity to work with him on numerous projects at Long Beach City College and in the community. He’s smart, understands the legislative process, and is committed to making our city an even better place to live,” said Garcia in a statement. “He will do a great job of moving my initiatives forward on economic development, education, open government, and creating a safer and more livable city.”
Long Beach Business Journal 2599 E. 28th Street, Suite 212 Signal Hill, CA 90755-2139 562/988-1222 • www.lbbusinessjournal.com
Al Moro, right, welcomes Jon Slangerup as the new executive director of the Port of Long Beach. Moro has served as interim director since late last year. (Photograph by the Business Journal’s Thomas McConville)
■ By MICHAEL GOUGIS Contributing Writer seems like such a simple Iatoptidea:your Stick some solar panels home, generate your
New Port Leader Harbor Commissioners Confirm Jon Slangerup As Executive Director
extra attention this year as a new mayor and five new city councilmembers are sworn in next week. One of the most anticipated changes, how-
own electricity or hot water, save a few bucks. But in practice, getting permission to install solar panels on your home has turned out to be more difficult than some in the industry and state government have anticipated. Local governments, they say, are a roadblock to the installation of the solar panels that are a key factor in the state’s plans to transition to renewable, clean
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■ By GEORGE ECONOMIDES Editor & Publisher istorically, July is a big month for transitioning new leaders at H local associations and civic groups, as new officers and boardmembers are installed. In Long Beach, leadership changes are drawing
Greening The Ports Long Beach, Los Angeles Ports Continue Implementing Policies And Incentives For A Greener Future
o promote cleaner air and water to benefit the T local community and wildlife, the ports of Long Beach and Los Angeles have over the past
and capital improvements aimed at reducing their environmental impact. “The commitment we made in 2005 [with] our Green Port Policy still drives our planning, building and operations today,” said Rick Cameron, the Port of Long Beach’s (POLB) managing director of envi-
decade implemented a series of programs, incentives
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■ By SAMANTHA MEHLINGER Staff Writer
PRSRT STD U.S. POSTAGE
PAID Long Beach, CA PERMIT NO. 254
Millworks On Pine Ahead Of Schedule The 1920s-era, six-story Meeker-Baker building (pictured), part of the Millworks project bounded by 6th and 7th Streets and Pine and Locust Avenues in Downtown Long Beach, is being delivered four months ahead of schedule and under budget, according to Millworks Managing Partner Michelle Molina. The project includes the previously completed Press-Telegram building. Around 800 Molina Healthcare employees are moving in throughout the summer, Molina said. Approximately 1,200 people will eventually occupy the two buildings. This edition’s Section B includes the Business Journal’s Mid-Year Economic Outlook. (Photograph by the Business Journal’s Thomas McConville)
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INSIDE THIS ISSUE 2 Long Beach Business Journal
July 8-21, 2014
3 Newswatch 4-Long Beach City Hall News In Brief 4-Swearing-In Ceremonies July 15 5-Long Beach’s Citywide Elected Officials 6-Civic Center Proposal: More Review 6-BNSF Lawsuit Hearing Date August 6 7-Environmental Groups Challenge Port Plan To Export Coal
10 Going Green 10-Household Hazardous Waste Collection Center 12-Solar Panel Battle, continued from Page 1 13-Green News In Brief 14-Green The Ports, continued from Page 1
16 In The News 16-Magical Realism, ‘Neomexicanism” Take Over MoLAA 17-People In The News
18 Perspective Realty Views Student Debt Increasing As Obstacle To Housing By Terry Ross Effective Leadership Six Life-Changing Benefits From Simplifying By Mick Ukleja HealthWise Beating The Heat During The Dog Days Of Summer By Susan Melvin, D.O. Third Sector Report The New Normal In Fundraising: It’s What’s Behind The Numbers That Counts By Jeffrey Wilcox Guest Commentary To Provide Or Not To Provide A Health Plan? That Is The Employer’s Question By Ben Alvarado
Section B Economic Outlook Mid-Year Report Interviews with experts in the following industries: Health Care; Financial Services; International Trade; Oil & Gas; Technology And Communications; Utilities; Retail; and Real Estate
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July 8-21, 2014
City Council Votes On Bluff Erosion Project ■ By BRANDON FERGUSON Staff Writer At the July 1 city council meeting, councilmembers received an update on phase 2 of the Ocean Boulevard Bluff Erosion and Enhancement Project. After listening to Leighton Consulting Inc. engineer Djan Chandra’s peer-reviewed analysis of the project, the council voted 6-1 to continue staining tan existing sections of shotcrete, the concrete-like substance used to stabilize sections of the bluff. The council also directed city staff to explore other stabilization methods for bluff sections not yet covered in shotcrete. Residents who spoke during the public comment time expressed dissatisfaction with the shotcrete’s appearance, including one resident who said the shotcrete wall makes an attractive target for graffiti artists. “Tourists aren’t going to come and spend money at something that looks like Attica,” said resident Gabrielle Weeks, referring to the infamous New York State prison. She added the council should take its time to get the bluff stabilization project right. The city first approved the bluff master plan in 2000 to stabilize sections of the
Long Beach Business Journal 3 bluff stretching between 20th Place and 36th Place along Ocean Boulevard in the event of an earthquake. The city began work on phase 2 in October 2013, but in April 2014, the council delayed the project and directed staff to consider options for using a substance other than shotcrete, namely biotechnical solutions like planting trees to anchor the soil. In his presentation, Chandra said that biotechnical solutions were feasible in bluff sections not already covered in shotcrete. “This method, however, is not recommended where shotcrete has been installed because it will require removal of the shotcrete, which is a tedious process,” Chandra said. “The shotcrete is structurally connected to the soil nailing, and removal of the shotcrete may impact the integrity of the existing soil nails.” Following public comments, 3rd District Councilmember Gary DeLong made a motion, seconded by 2nd District Councilmember Suja Lowenthal, to continue staining existing shotcrete sections and to finish infrastructure portions of the project such as hand railings and sidewalks. Before voting on the motion, DeLong expressed some agreement with resident frustrations. “Certainly looking back with hindsight being 20/20, I do agree a different approach could have been taken with this project, even starting with something simple like finish phase one before moving on to phase two,” DeLong said, adding, “We (Please Continue To Page 4)
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NEWSWATCH 4 Long Beach Business Journal
City Hall News In Brief (Continued From Page 3)
CBA Reaccredited By Prestigious AACSB In late March, the Board of Trustees of the Association to Advance Collegiate Schools of Business International (AACSB) voted to extend CBA accreditation for an additional five years. CBA faculty, staff, and students were overjoyed because failure in this review would be like being an accountant without a CPA or a lifeguard without Red Cross certification. Today, we can proudly say that CBA is one of 691 business schools out of over 15,000 worldwide that are accredited by AACSB. AACSB’s 21 standards involve faculty qualifications and assurance of student learning. CBA’s misBy Dr. Michael Solt, Dean, College of sion is to graduate highly Business Administration, valued, ethical business proCalifornia State University, Long Beach fessionals prepared to excel in a dynamic global business environment. The columns in this series show how our faculty and staff work to achieve this mission, and the AASCB review team favorably noted our efforts. Many of our instructors are “professionally qualified” because of the work experience that brings a real-world flavor to classes. CBA’s tenured faculty members become “academically qualified” by publishing peer-reviewed research in academic journals. Since our last accreditation review five years ago, CBA’s 66 tenured/tenure-track faculty members published 167 articles, including 59 High Quality and 15 Elite publications. The faculty of the nation’s best business schools publish in these same journals. CBA regularly assesses whether students meet learning objectives that involve critical thinking, ethics, business functions, global business environment, and interpersonal, communications, and quantitative/technical skills. Assessment is used to improve courses and teaching. Although we met assurance of learning standards, the AACSB review team suggested we more strongly connect assessment and course improvement. We will do so since student learning is central to our mission. The review team noted many strengths: Student Center for Professional Development promoting career success, student organizations fostering leadership skills, and student and faculty diversity reflecting all the diversity of Southern California. Also commendable are the CBA Alumni and Friends Network, departmental advisory boards, and the Ukleja Center for Ethical Leadership and its Nell and John Wooden Ethics in Leadership Award. Maintaining AACSB accreditation was a major milestone but we are already looking toward to the next review in five years. Like I told our faculty, re-accreditation begins today! (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.) ■
would ask staff that on the portions that have not been shotcreted to go look at other appropriate alternatives; let’s take a look at that and see if there’s a better solution going forward,” DeLong said. Fifth District Councilmember Gerrie Schipske cast the dissenting vote, siting residents who had submitted a public records request but didn’t receive all the documents from the city. “[Residents] did a public records request and, lo and behold, there’s a permit missing,” Schipske said, adding, “Which obviously could subject the city to have an enforcement action.” City Manager Pat West said the permit was available but didn’t know why it wasn’t disclosed as part of the records request. “I didn’t see that public records request,“ West said. “We certainly will get back to you and see whatever we got and why it wasn’t provided.” Councilmembers James Johnson and Dee Andrews were not present for the vote. ■
Long Beach City Hall News In Brief ■ By BRANDON FERGUSON Staff Writer Commission Appointments – The city council voted 7-0 at the July 1 meeting to approve Mayor Bob Foster’s 94 appointments to noncharter city commissions. Of the total number of appointments made, which included the airport advisory commission, board of health and human services and cultural heritage, as well as the Pacific Gateway Workforce Investment Board, 79 were reappointments and 15 were new appointments. Appointments included: 9th District resident Jeff Rowe to the airport commission; 8th District resident Julianna Roosevelt to the cultural heritage commission; 3rd District residents Bronston Thomas Mayes and James Jennett to the marine advisory commission; and District 2 resident Stella Ursua to the sustainable city commission. Real Estate Ordinance – The city council voted 6-1 at the July 1 meeting to approve Mayor Bob Foster’s recommendation to direct City Attorney Charles Parkin to prepare an ordinance amending the municipal code. The amendment would require full transparency for all real estate transactions in excess of $1 million when the city is a buyer. The ordinance would require corporations that receive commissions or fees on such transactions to publically reveal the fees. “In my tenure here, there’s been a number of very large real estate transactions that the city may be involved in and one of the concerns I’ve come up with is that there’s not adequate transparency,” Foster said. “[This ordinance] is really a way to try to make sure that with any transaction going forward there is complete transparency.” Al Austin, councilmember for the 8th District, cast the dissenting vote. SEADIP Amended – At the July 1 meeting, the city council voted 5-0 in favor of a resolution that allows for the adoption of a consolidated coastal development permit (CCDP) process in connection with the Los Cerritos Wetlands (LCW) located at 6433 E. 2nd St. and with the “pumpkin patch,” Lyon Housing LLC’s property located at 6701 E. Pacific Coast Hwy. Last month LCW and Lyon Housing jointly submitted a proposal to restore approximately 90 percent of the Los Cerritos Wetlands to allow for public access. The project would involve moving existing oil infrastructure, such as pipes and tanks, from the wetlands to the pumpkin patch. Since the two parcels are in different jurisdictions (the wetlands falls under the jurisdiction of California Coastal Commission while the pumpkin patch is the city’s jurisdiction), staff determined that in order for the proposed project to proceed, an amendment to the Southeast Area Development And Improvement Plan (SEADIP) is required to allow for a CCDP. A letter to the city council from the department of development services indicated that if the coastal commission and city were issuing separate permits for the project, it would create “potential confusion, inconsistent conditions of
July 8-21, 2014
Long Beach City Council, Others To Be Sworn In On July 15th ■ By BRANDON FERGUSON Staff Writer On July 15, City Clerk Larry Herrera will be extra busy. In addition to swearing in councilmembers for the 1st, 3rd, 5th, 7th and 9th Districts, he’ll also swear in the mayor, city prosecutor, city auditor and city attorney. Though the ceremony takes place at the July 15th council meeting, Herrera will also individually swear in each incoming official on either the 14th or the 15th, depending on each councilmember’s preference. “It can take place here in the [clerk’s] office, in the council office or at a location that we agree to,” Herrera said. “For example, if somebody said I’m going to be at my outside office, let’s say in the middle of the city, I would just go out to there and do the oath of office. We’ll be as accommodating as we can.” The public ceremony begins by swearing in the councilmembers according to district number, followed by the city attorney, auditor, prosecutor, and finally, the mayor taking the oath. These public servants are then official officeholders at midnight on the 16th. Herrera explained that in addition to giving the oath of office, the city clerk also receives and maintains the California Fair Political Practices Commission’s conflict of interest form, officially known as Form 700. Incoming and exiting public officials complete the document, listing their assets and investments. According to Herrera, incoming officials have 30 days from the time they take office to file and are required to update Form 700 every April. Once filed, the documents are immediately available for public review. ■ approval or mitigation measures, and a lengthy timeline due to joint application processes.” Contract With Merrimac Approved – The city council voted 6-0 on July 1 to authorize City Manager Patrick West to amend a contract with Merrimac Energy Group, the company that provides diesel fuel for more than 2,100 city vehicles. The amendment allowed for an increase of $2 million. West was also authorized to extend the contract term to December 2014. Council Approves Three-Year Law Enforcement Contract – The city council voted 6-0 to authorize the city manager’s office to execute a three-year agreement that provides law enforcement services to Long Beach Community College (LBCC). A letter from the police department to the city council stated the agreement covers reimbursement for straight time benefits and overtime not to exceed 2,089 hours per year, as well as training, supplies and four police vehicles. The agreement also provides one lieutenant, four officers and a communications dispatcher for both LBCC campuses. The first year estimated reimbursement of $2,783,790 is set to adjust annually during the agreement period to provide for cost increases. Pool Hours Restored – The city council voted 7-0 at the July 1 meeting to restore the closing time at the Belmont Plaza Pool to 9 p.m. At a previous study session, several residents who live near the pool complained about excessive noise, leading the department of parks and recreation to set a 7 p.m. closing time. Councilmember Gary Delong supported a move to reestablish the 9 p.m. closing time on the condition that whistles not be used after 7 p.m. and the pool’s lighting be managed to reduce effects on local residents. Crime Lab Gets More Money For Cameras – The city council voted 6-0 authorizing the city manager’s office to enter into agreements with Federal Signal Safety and Security Systems, Halifax Security Inc., and Convergint Technologies to provide video surveillance systems for use in the Long Beach Police Department’s crime lab. Council approval authorizes the city manager to increase the amount of the contract by $200,000 for a contract total not to exceed $700,000. The city first entered into an agreement with the contracting companies in January of this year for an amount totaling $500,000. LBTV Honored – According to a June 23 press release issued by the city’s technology services department, the Long Beach Cable TV Channel LBTV received eight government programming STAR awards at the States of California and
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NEWSWATCH July 8-21, 2014
Long Beach Business Journal 5
Citywide Elected Officials
In addition to the mayor, the City of Long Beach has three citywide elected officials: the city attorney, city auditor and city prosecutor. While the mayor, by City Charter, may serve two four-year terms – unless reelected to more terms through a write-in process – there are no term limits for the other three positions. During the just completed 2014 election cycle, Charles Parkin, left, was elected to his first four-year term as city attorney; City Auditor Laura Doud ran unopposed; and Doug Haubert was reelected to a second term as city prosecutor. They will be sworn in, along with Mayor-elect Robert Garcia, during ceremonies on July 15 at the Terrace Theater (refer to Page 1 and Page 4 stories). Parkin beat back two opponents in the April primary race, then won with more than 60 percent of the vote in the June 3 runoff. Parkin joined the city attorney’s office in 1995 as a deputy city attorney. In October of 2006 he was promoted to principal deputy city attorney, and in January of 2012 to assistant city attorney. In August of 2013 the Long Beach City Council appointed Parkin city attorney to fill the unexpired term of his predecessor. Doud is ready to begin her third term as city auditor. She was elected in 2006, unseating the incumbent auditor, and reelected in 2010. She previously worked as a staff auditor for the city, then went on to become a certified public accountant, certified fraud examiner and earn a law degree. Prior to running for city auditor, she served as controller for the Water Replenishment District of Southern California. Haubert was easily reelected in April to a second term as city prosecutor. He previously worked in the office as a deputy city prosecutor, then joined a municipal law firm which represents cities and various public agencies. During that period he served as city prosecutor and city attorney to several cities in Southern California. He also became a partner in the law firm. All three city officials are available for speaking engagements for local groups and organizations.Visit their websites at http://www.longbeach.gov. (Photograph by the Business Journal’s Thomas McConville)
Nevada National Association of Telecommunications Officers and Advisors conference (SCAN NATOA). LBTV received a STAR award for overall excellence in government programming and took second place for its program Pulse of the Port, a production of the Port of Long Beach. In a statement, Mayor Foster heralded the public access station’s community contributions. “These awards are well deserved, because LBTV provides out-
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All Session are held at The Petroleum Club 3636 Linden Avenue – Long Beach, California 8:30AM to 12:00PM Register to attend at www.thirdsectorcompany.com or by calling Third Sector Company at (562) 484-8281. Space is limited to the first 12 organizations. Participants may register for a single seminar or the entire series. The Board Chairs Academy Faculty will include Jeffrey Wilcox, John Glaza and Kathy McCarrell.
standing programming that keeps our residents informed, entertained and connected throughout the community.” LBTV can be viewed in Long Beach on Charter Communications’ cable Channel 3 and Verizon FIOS Channel 21. The STAR awards were established in 1996 to recognize outstanding community television programming by local jurisdictions serving California and Nevada. ■
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NEWSWATCH 6 Long Beach Business Journal
July 8-21, 2014
Proposed New Civic Center Proposals Need Further Review ■ By BRANDON FERGUSON Staff Writer Long Beach city staff will take further time in reviewing two project proposals for a new civic center complex, one submitted by Plenary-Edmore Civic Partners and the other by CiviCore Alliance. According to Deputy City Manager Tom Modica, the original July reporting deadline is too soon, as the proposals under consideration require further analysis. “Both submittals are incredibly complex, and staff is reviewing each administrative and financial component in detail.
The city is committed to providing the best recommendation and analysis to the mayor [and] city council for discussion,” Modica’s statement read, adding that the report’s completion date is currently unknown. A seismic study conducted at the behest of the city in 2006 concluded that a large earthquake could lead to a collapse of the current civic center and result in “a significant loss of life.” In February, the Business Journal reported that 5th District Councilmember Gerrie Schipske criticized the city for not issuing a request for qualifications to retrofit the current civic center.
According to city staff reports, however, even with a retrofit the building could become uninhabitable in the event of a medium to large-sized earthquake, like the 6.7 magnitude 1994 Northridge quake. A memo issued to the council in February by the city manager’s office indicated that a retrofit would cost close to $200 million, an investment that would be lost in the event of a quake. The city is currently exploring a public-private partnership option for civic center construction in which the city would lease the civic center from the builder for $12.6 million per year for 40 years. The annual payment is the same
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amount the city currently spends to maintain the current civic center. ■
Hearing Date Set On August 6 For BNSF Lawsuit ■ By BRANDON FERGUSON Staff Writer An August 6 hearing date has been set to determine whether or not the California attorney general’s office can join the City of Long Beach in its lawsuit against the Burlington Northern Santa Fe Railway Co. (BNSF) and the City of Los Angeles. The attorney general’s office (AG) first filed the motion to join the suit in early May. Long Beach and several other entities are suing BNSF over its proposed Southern California International Gateway (SCIG) rail yard project, to be built adjacent to West Long Beach and the Terminal Island Freeway. Opponents say the project brings more diesel emissions and truck traffic, in turn increasing air pollution near primarily low-income neighborhoods. In court documents, the Long Beach city attorney’s office alleged that Los Angeles’s environmental impact report for the rail yard downplayed the effects of the rail yard’s pollution on Long Beach neighborhoods located near the site. Long Beach Assistant City Attorney Michael Mais told the Business Journal it’s possible that by the time of the hearing, the AG will already be part of the suit. “The statute is pretty clear that unless somebody’s going to be prejudiced, they have an absolute right to come into the case,” Mais said. “I think that BNSF and the City of L.A. recognize that, so rather than waste everybody’s time on that part of it, I think they’re trying to see if everybody can agree that [the AG] can just be part of the case.” Also slated for consideration at the August 6 hearing is whether or not the City of Carson can join the suit. Mais estimated it could be next spring before the case goes to trial. ■
Long Beach Mobility Plan Earns Award Of Excellence
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The Los Angeles Chapter of the Amercian Planning Association awarded the City of Long Beach an Award of Excellence for its Mobility Element of the General Plan that was adopted by the city council last October. “More than just improving mobility, the plan is about enhancing our quality of life and stimulating our economy as well,” Mayor Bob Foster said. “Strategically guiding our city’s transportation networks allows for more choices and convenience, reduced traffic congestion and more efficient community options.” The plan, prepared by the city’s development services department, serves as a “20year guide for future decision making by establishing a vision with goals, strategies and implementation measures that support and encourage all roadway users.” ■ – From Staff Reports
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NEWSWATCH July 8-21, 2014
Long Beach Business Journal 7
Environmental Groups Challenge Port Of Long Beach’s Plan To Export Coal ■By PAT FLYNN Contributing Writer On behalf of Sierra Club, Communities for a Better Environment and Natural Resources Defense Council, environmental law organization Earthjustice filed an appeal on June 23 with the City of Long Beach, challenging the Port of Long Beach’s approval of two agreements enabling the export of coal and petroleum coke. The agreements in question are a lease with Oxbow Energy Solutions, LLC and an operating agreement with Metropolitan Stevedore Company, which will facilitate the export of more than one million tons of coal and petcoke each year for the next 15 years. At the Port of Long Beach Board of Harbor Commissioners’ June 9 meeting, Long Beach residents and community organizations raised concerns about the community health and environmental impacts of coal dust blowing off uncovered rail cars on their way from the coal mines in Utah and Colorado to the Port of Long Beach. They also objected to shipping coal and petcoke (an oil-refining byproduct) to countries with few to no emissions controls, such as China, thereby contributing to climate change. The commissioners nonetheless voted unanimously to approve the agreements. In its appeal letter, Earthjustice stated that the Board had approved the agreements “despite significant public opposition related to the failure to undergo any CEQA analysis.� The environmental groups claimed that the Port violated the California Environmental Quality Act, which requires the port to analyze and disclose the environmental impacts of proposed projects and adopt all feasible measures to mitigate those impacts. The appeal is to enforce state law requiring an adequate environmental analysis that assesses, among other things, the greenhouse gas emissions from burning the coal and petcoke to be exported under the agreements. Port officials asserted that CEQA clearance is not required. Heather Tomley, director of environmental planning for the port, reported to the commissioners in the
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June 9 meeting, “We believe the leases are categorically exempt,â€? because there is “negligible or no expansion of use.â€? She pointed out that “there are currently no limitations on the throughput for the facility based off of any of our previous agreements.â€? She went on to recommend another finding that, since CEQA clearance was completed for the project in 1992 and there have been no changes in the project, in circumstances related to the project, and no new significant information that had been unavailable in 1992, further CEQA analysis is not required. In response, Morgan Wyenn, Natural Resources Defense Council attorney, stated, “Both the U.S. government and the State of California have established clear policy goals to phase out dirty fuels like coal, and it is unacceptable for the Port of Long Beach, in this day and age, to go against these policy directives just so the City can turn a profit.â€? â–
Central Project Area Council To Discuss BNSF, Civic Center And Other Key Issues Meeting Thursday, July 10 The Long Beach Central Project Area Council (CPAC), which was formed by concerned residents and business people following the dissolution of the Long Beach Redevelopment Agency more than a year ago, continues to meet to discuss issues impacting Long Beach. The group is not sanctioned by the city nor does it receive funding from the city. This Thursday, July 10, the council will examine three key issues: The proposed Southern California International Gateway (SCIG) BNSF rail/truck yard proposal; medical marijuana and marijuana stores; and the proposed new civic center in Downtown Long Beach. The meeting begins at 6 p.m. at 240 Chestnut Ave., 11th floor. For more information, call Annie Greenfeld at 562/225-9462. â–
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NEWSWATCH July 8-21, 2014
Long Beach Business Journal 9
Commission Names New Executive Director (Continued From Page 1)
ever, has been the naming of a new executive director for the Port of Long Beach. On June 30, the Long Beach Board of Harbor Commissioners confirmed the appointment of Jon W. Slangerup to head up the city’s harbor department. He replaces Chris Lytle, who left late last year for a similar post in Oakland. In announcing the appointment, commissioners turned to a man who has more than 30 years of corporate leadership experience. According to a port statement, Slangerup has served as president, CEO and/or director of both public and private companies the past two decades, building businesses ranging from tech startups to a billion dollar subsidiary of FedEx Corp. “During the past seven years of a distinguished 20-year career with FedEx,” according to the statement, “Slangerup served as president of FedEx Canada, which he transformed from a small regional domestic courier operation into Canada’s leading international express logistics company.” More recently, Slangerup has been involved in leadership roles with environmental technology companies “providing leading-edge solutions in marine ballast water treatment, renewable energy and distributed power generation to customers throughout the world.” Commission President Doug Drummond referred to Slangerup as “an extremely capable leader, proven team-builder and expert at managing a world-class organization. In our highly competitive, quickly changing industry challenged by major environmental and energy issues, he’s the perfect person for the job.” Commissioner Lori Ann Farrell, who chaired the port’s search committee, added, “We undertook a rigorous and thorough review process. In Jon we found the ideal combination of leadership, vision and execution that we need to take us strongly into the next decade.” During the transition period, the port’s chief harbor engineer, Al Moro, stepped in to serve as interim executive director. “Al stepped into a challenging environment to calm the organization, keep our $4 billion of improvement projects underway and assist the board in getting to this exciting day,” Drummond said. “We thank Al and offer our deepest gratitude.” ■
Top, the Long Beach Board of Harbor Commissioners met on June 30 to confirm the appointment of Jon Slangerup as the new executive director of the Port of Long Beach. Above, from left: Commission Vice President Rich Dines, a longshoreman at the ports of Long Beach and Los Angeles; Commissioner Lou Anne Bynum, executive vice president of College Advancement and Economic Development for Long Beach City College, and the newest member of the commission; Executive Director Slangerup; Commissioner Lori Ann Farrell, director of finance for the City of Huntington Beach; and Commission President Doug Drummond, a retired Long Beach police commander and former Long Beach city councilman. Not pictured is Commissioner Susan Wise, who announced recently she will not seek a second six-year term on the commission. (Photographs by the Business Journal’s Thomas McConville)
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GOING GREEN 10 Long Beach Business Journal
July 8-21, 2014
Household Hazardous Waste Collection Center Prevents Toxic Dumping ■ By SAMANTHA MEHLINGER Staff Writer Three hundred tons of hazardous household materials have been recycled and disposed of since the Household Hazardous Waste Collection Center at EDCO Waste & Recycling Services’ March 2013 opening in Signal Hill, according to Jim Kuhl, manager of the Long Beach Environmental Services Bureau. On the second Saturday of every month, the facility offers free household hazardous waste collection to all Los Angeles County residents. Before the center opened, Long Beach residents who could not travel to other facilities in Lancaster and San Pedro would have to wait for a yearly L.A. County household hazardous waste disposal event held at Veteran’s Stadium, Kuhl recalled. “That’s why we were looking to locate something locally,” he said. Household hazardous waste includes items such as paint, cleaners with acid or lye, motor oil, pool chemicals, pharmaceuticals, medical needles, batteries, weed killer, pesticides and more. Typically these items are labeled as hazardous with instructions to take them to a special collection center, Kuhl said. The city provides a list of items accepted at the hazardous waste collection center’s bi-monthly events online at www.longbeach-recycles.org. Before the Southern California-based, family-owned EDCO offered to house the
facility, the City of Long Beach planned to build a $3 million collection center nearby. “Originally, the City of Long Beach received grant funds to build its own facility,” which was going to be across the street from EDCO in Signal Hill, Kuhl recalled. One day, Kuhl met with EDCO President and CEO Steve South and told him about the plan. “I said, ‘We’re going to be neighbors. We’re going to put a household hazardous waste collection center across the street.’ And he said, ‘You don’t need to do that. I have space for one.’ That is how it started,” Kuhl said. South’s offer saved the city $3 million it otherwise would have used to build a new center. The City of Long Beach used a $300,000 grant from CalRecycle to design the center, which is operated by an independent contractor paid $500,000 per year by Los Angeles County Public Works, Kuhl said. EDCO houses the facility and does not receive any funds, South said. “It is a true private-public partnership,” Kuhl said of the arrangement. Since the center opened, “We are seeing much less illegal dumping” of hazardous materials, Kuhl said. “We used to see a lot of calls on motor oil and paint because people get frustrated when they don’t have any way to get rid of it and it ends up in the alley or in a park or some place,” he said. “People want to do the right thing. It just needs to be convenient,” South said of household hazardous waste disposal. “All residents have to do is come here.
Steve South, president and CEO of EDCO Waste & Recycling Services (left), helps Jim Kuhl, manager of the Long Beach Environmental Services Bureau, with a box of toxic household products. These materials, such as motor oil and light bulbs, must be taken to special collection centers like the one at EDCO’s Signal Hill facility where they are recycled, reused and disposed of properly. (Photograph by the Business Journal’s Thomas McConville)
Everything else is handled. They don’t even have to get out of their vehicles.” On the second Saturday of every month, EDCO allows residents to drive through a parking lot where workers remove household hazardous waste items from residents’ vehicles. The items are sorted, consolidated and stored in lockers before being sent to recycling and reuse facilities. Some items
must be disposed of at a special site in Central California. However, “The overwhelming majority of the material is recycled after it is consolidated,” South said. When the household hazardous waste collection program first began, about 500 cars came to the center per event, Kuhl recalled. “We are up to about 650 cars per month now,” he said.
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GOING GREEN July 8-21, 2014
Long Beach Business Journal 11 Steve South, president and CEO of EDCO Waste & Recycling Services (left), and Jim Kuhl, manager of the Long Beach Environmental Services Bureau, stand over a pallet of car batteries dropped off by L.A. County residents for proper disposal at the Household Hazardous Waste Collection Center. The center, housed at EDCO’s facilities at 2755 California Ave., accepts hazardous household products on the second Saturday of every month. Electronic waste is accepted five days a week. (Photograph by the Business Journal’s Thomas McConville)
By reducing illegal dumping, the center helps keep toxic materials out of the environment. Even throwing these materials into trashcans has a negative impact on people in the community, South and Kuhl noted. Medical needles tossed in trash bins pose a hazard to the workers handling trash, South pointed out. “People in our industry have the opportunity to get stabbed with those needles, so we need the people who are using those sharps to properly dispose of them,” he said.
Chemical products thrown in trash also pose a risk, South said. “The biggest challenge is when materials mix,” he stressed. “When you throw that stuff in the trash it goes into a truck and mixes, then it goes to a facility like ours and mixes, and then it goes to a landfill and mixes.” Most landfills have liners to prevent mixed hazardous materials from entering groundwater supplies, but mixed chemicals could still cause fires or harm workers, he explained.
Kuhl pointed out that dumping household hazardous waste in storm drains negatively impacts water quality. “Everything along the coastline ultimately leads to the ocean, so at some point it becomes the equivalent of pouring household hazardous waste into the ocean,” he said. While preventing illegal dumping of hazardous waste is a priority addressed by the collection center at EDCO, Kuhl emphasized the City of Long Beach’s goal
here is to prevent people from using hazardous materials in the first place. The environmental services bureau has a webpage explaining how to create nontoxic alternatives to many types of toxic products like insecticides and cleaners. The collection center is located at 2755 California Ave. Fats, oil and grease and traditional recyclables such as bottles and paper are also accepted. Electronic waste is accepted five days a week. Websites: Long Beach Environmental Services Bureau – http://www.longbeachrecycles.org; EDCO – http://www.edcodisposal.com/signal-hill. ■
Nearly Two Tons Of E-Waste Collected In Less Than Four Hours How’s this for an E-waste collection drive?: 825 TV carts; 50 LCD TVs; 186 monitor carts; 400 LCD monitors; 135 laptops; 665 towers; 1,053 UWEDs (universal waste electronic devices); and more, equating to 3,314 pounds of E-waste. That’s what a local marketing and promotions agency, Creative Productions, accomplished recently in less than four hours. “Our recent collections for Goodwill Serving the People of Southern Los Angeles County demonstrates that small businesses can be green by recycling their outdated electronics, which leads to job creation and a positive economic impact,” said Deborah Golian Castro, president/CEO of Creative Productions. ■
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GOING GREEN 12 Long Beach Business Journal
July 8-21, 2014
The Battle Over Residential Solar Panels (Continued From Page 1)
power and eliminate some of the need to import energy. A bill introduced by Assemblyman Al Muratsuchi, D-Torrance, that now is pending before state lawmakers would require local governments to adopt streamlined permitting processes for residential solar energy projects and fast-track any inspections needed to issue such a permit. Support from the bill comes from environmental groups like the California League of Conservation Voters, the Sierra Club, some of the state’s largest cities including San Francisco and Oakland, and a wide variety of solar panel installers. Opposition to the bill comes from other, generally much smaller cities, fire officials, the state Building Industry Association and the state Municipal Utilities Association. The opposition centers around concerns that the bill would prevent cities and counties from ensuring that solar installations are done safely. Twice in the past, state legislators have made it clear that homeowners should have the right to put solar panels on their homes. The 1978 Solar Rights Act prohibited non-governmental agencies, like homeowners associations, from banning residential solar energy projects. And that law also prohibited local governments from placing “unreasonable
restrictions on the use of solar energy systems,” according to a analysis of the bill created by state legislative researchers. The law was revised again in 2008 to further restrict the abilities of local governments to block such projects. Even still, “The industry continues to face steep obstacles that must be addressed if solar electricity generation is going to help the state address its growing
energy needs,” according to the state analysis. “Research indicates that while the hard costs of solar, namely materials and components, have come down in price in recent years, soft costs, including the cost of local agency permitting and inspection process, are preventing solar energy systems from being more affordable to many Californians.”
Those “soft costs” are the reason the bill is needed, Muratsuchi says. “AB 2188 will streamline the permit process for residential solar energy systems while protecting property and safety standards,” Muratsuchi tells the Business Journal. “Cutting down on bureaucratic delay will make solar more affordable and increase access to more California homeowners who
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GOING GREEN July 8-21, 2014 want to generate their own clean energy. This bill is good for consumers, good for the environment, and good for business.” AB 2188 would require: • Every city and county in California to adopt a streamlined permitting process for small, residential, rooftop solar systems. Such streamlined permitting processes must be in place by September 30, 2015. • Develop a checklist outlining the conditions for projects that would qualify for expedited review. • Require cities to issue permits for projects that meet all such qualifications. If a permit application is incomplete, the local agency “must issue a written correction notice detailing all deficiencies and information requirements for expedited review,” according to the state analysis. • Limits a city or county to one inspection per project, and said inspection must take place within five business days of the request for an inspection. Opponents say the bill would restrict the ability of local governments to enforce safe building practices, and would force those local agencies to make permitting solar installations a priority over other projects. “We remain in opposition to AB 2188 because it prescribes every city and county in the state to create a ‘streamlined’ solar permit checklist, application and inspection process irrespective of any consideration on workload, or the staff needed to review each solar application for permit approval,” Patrick Harbison, director of communications, California Municipal Utilities Association, tells the Business Journal. “Why, for a single commercial product that needs a permit, should local inspectors be subject to any inspection limitations?” Harbison continues. “Such limitations have the potential to comprise public safety. Plus, not a single word in the bill offers any protections between the customer and the solar roof contractor should something go wrong or a contractor fail to show up for an install. “Because some of our members play a direct role in the solar roof permit process, we believed it was necessary to join the League of Cities in opposition to the bill.” The state analysis points out that five days may be too short of a window for a city to coordinate all of the elements necessary for a single site visit. “Five days may not give cities and counties enough time to schedule all inspections, and it is unclear if all cities and counties can consolidate structural, engineering and fire safety reviews into a single inspection,” the analysis states. However, the bill allows cities and counties that feel that they cannot arrange for a site inspection in five days to adopt a local law detailing a specific time schedule for inspections. The bill is the latest skirmish in a longrunning battle over residential solar power installations. State researchers found no less than six different Assembly and Senate bills in the past decade alone dealing with permits and credits for solar power projects for the home. State law now makes it illegal for cities and counties to base the cost of issuing a permit on the value of the solar system, and specifically limits the amount of money a local government can charge for issuing a permit for a solar system. Prior to that leg-
Long Beach Business Journal 13 islation, a permit for a small, three kilowatt residential system could run as low as $30 or as high as $1,100, depending on the city issuing the permit. Other legislation limited the power of a homeowners association to restrict the installation of such systems, and required such associations to respond to requests to install systems within a specified period. ■
since 1978
GO SOLAR WITH
Green News In Brief • Sam’s Club has permanently stationed a Goodwill Attended Donation Center at its Long Beach Towne Center store. The donation center is open seven days a week from 8 a.m. to 7:30 p.m. to collect donations and give receipts to donors. Among items it accepts are: gently used clothing and accessories, household goods and small appliances, and e-waste items such as TVs and computer equipment. For more information, visit: www.thinkgood.org. • California State University, Dominguez Hills received two Higher Education Energy Efficiency and Sustainability Best Practice Awards for its efforts in environmental conservation and sustainability during the 2014 California Higher Education Sustainability Conference. According to a statement, the awards showcase model projects within the CSU and University of California systems in the areas of green building design, climate control and lighting retrofit, water efficiency, energy use tracking, waste reduction, transportation and food service sustainability, and education efforts. • Signal Hill Petroleum recently received a “Beautification Award” from the Signal Hill Planning Commission in recognition of the company’s sustainable approach to improving its well sites. During the past three years, Signal Hill Petroleum, according to a statement, has “undertaken an extensive program to improve its individual well sites through various cosmetic upgrades, including building new fences, landscaping and painting. Going well beyond local and state regulations regarding property improvements, the company has completed over 150 site renovations.” • Last month, the City of Long Beach was awarded a $924,000 state grant to improve wetlands and increase accessibility at Willow Springs Park – 2745 Orange Ave. – by building trails, planting trees and re-establishing native vegetation. “The grant will help restore the Willow Springs Park ecosystem and enable the public to experience natural resources in a highly urbanized area,” Mayor Bob Foster said. “These improvements will provide a range of recreational opportunities and activities for a healthier, more livable Long Beach.” • The application deadline is August 22 for a community to be considered for a $200,000 to $500,000 state grant aimed at helping coastal communities prepare for a changing climate. Funding is available for local governments and private organizations with “innovative ideas on how to improve California’s coastal areas and mitigate sea-level rise,” according to a statement from State Sen. Ted Lieu’s office. The grants are issued by the California Coastal Conservancy. For more information, visit: http://scc.ca.gov/2014/05/27/second-climate-ready-grant-round-announced. ■
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Alan Brawer Energy Analyst (562) 233-9934
alan.brawer@rgsenergy.com Cell: (562) 233-9934 Fax: (562) 938-8830 www.rgsenergy.com CA CSLB 840934
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GOING GREEN 14 Long Beach Business Journal
July 8-21, 2014
Greening The Ports (Continued From Page 1)
ronmental affairs and planning. The port defines the policy as “an aggressive, comprehensive and coordinated approach to reduce the negative impacts of port operations” which “serves as a guide for decision making and establishes a framework for environmentally friendly port operations.” Cameron said the policy influences everything the harbor department does. “It has changed our culture. It is probably the first thing anybody at the [harbor] department thinks of when we start talking about any projects or future operations,” he said of the policy. The international trade community is noticing these efforts. The Port of Long Beach, known as “The Green Port,” was recently honored as the “Best Green Seaport” in the world in a poll of freight transportation professionals conducted by Cargonews Asia, a shipping trade publication. The Port of Los Angeles (POLA) has many similar environmental policies and programs aimed at reducing its environmental impact, and the two ports often collaborate in these efforts. “While L.A. and Long Beach compete on the business side for cargo . . . on the environmental side there is a lot of collaboration that goes on,” Phillip Sanfield, POLA director of media relations, told the Business Journal.
Now undergoing testing, these automated guided vehicles for Long Beach Container Terminal produce zero emissions, contributing to the port’s efforts to reduce its impact on local air quality. (Photograph by the Business Journal’s Thomas McConville)
Clean Air In 2006, the ports collaboratively approved a Clean Air Action Plan, a policy meant to reduce air pollutants caused by port operations. Through this plan, both ports have developed programs to improve local air quality.
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The San Pedro Bay Ports offer many monetary incentives to encourage shipping lines to implement practices to reduce pollutant emissions into the air. The Long Beach Board of Harbor Commissioners approved two new incentives just last month. In one new incentive program, the port offers a dockage waiver fee, which is essentially free parking, to vessels that reduce their speeds when approaching the port and plug in to onshore electric power when they dock. These practices reduce air emissions, according to Cameron. Another recently approved incentive from POLB awards shippers $5 per total equivalent unit (a measurement of cargo containers) for all additional cargo distributed through on-dock rail instead of trucks. “What that does is reduces the truck trips and air emissions associated with those trips,” Cameron said. Using on-dock rail benefits shippers because the method “is a lot more efficient and streamlined,” he added. Last year, the Port of Long Beach adopted the Green Ship Incentive Program, which provides $2,000 to shipping lines using vessels with Tier 2 engines. These are some of the cleanest available engines for ships in terms of air emissions, Cameron said. “What we are trying to do is provide incentives for shipping lines and customers to put into service the cleanest available vessels they have,” he explained. In the future, shipping lines using Tier 3 engines are to receive a $6,000 incentive, but those engines are not yet available, he said. While shipping lines financially benefit from these incentives and the community benefits from better air quality, the Port of Long Beach also profits by attracting new business, Cameron said. Like POLB, the Port of Los Angeles also offers monetary incentives to shippers, such as through the Environmental Ship Index, an international scoring system used to rate how environmentally friendly a vessel is in terms of its air emissions, according to POLA Marine
Environmental Manager Lisa Ochsner. “Based on their score, [vessel] operators are rewarded through monetary incentives,” she explained. “Since July 2012, the port invested roughly $400,000 toward the program,” money paid directly to shippers, she said. This year, California began requiring 50 percent of all vessels traveling to and from state ports to hook up to shore power to help reduce air emissions, a standard both local ports are meeting. The Port of Los Angeles was “the first container port in the world to hook up a ship to shore side power back in 2004,” Sanfield pointed out. The POLA continues to encourage the practice and is now entering into an agreement Sanfield calls “a pretty big deal” to do just that. This week (the week of July 7), the port’s new executive director, Gene Seroka, travels to China to enter the port into a three- to five-year agreement with the Port of Shanghai which “will help establish China to U.S. green shipping routes, in which ships can plug in to standardized at-berth power systems,” Sanfield said. He explained the agreement aims to reduce emissions in Shanghai, L.A. and “eventually around the world at other ports,” adding, “We are thrilled to be part of this.” Both ports are also reducing air emissions by implementing new technology at their terminals through capital improvement programs. Through the Middle Harbor Redevelopment Program, for example, POLB introduced zero emission technology including automated cars for transporting containers on dock, Cameron said. “Once Middle Harbor is completed and is in full operation, it will be one of the greenest, most sustainable terminals,” he said. Long Beach’s port has also expanded on-dock rail to promote the use of trains, which emit less pollutants than trucks, he noted. The Port of Los Angeles is currently completing multiple environmental impact reports for capital improvement
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GOING GREEN July 8-21, 2014
Long Beach Business Journal 15
projects to modernize its terminals to similar effect, Ochsner said. The ports also promote cleaner air through their Clean Trucks Programs. The programs require that trucks servicing the ports meet 2007 Federal Clean Truck Emissions Standards, essentially requiring the trucks to be model-year 2007 or newer. Ochsner said many trucks are exceeding this standard at POLA. “About 25 percent of drayage moves are now being done with 2010 trucks. That is a great benefit to air quality,” she said. Both ports report an 80 percent reduction in air emissions thanks to these policies and incentives.
Water Quality In addition to their Clean Air Action Plans, the ports have a collaborative Water Resource Action Plan through which they strive to improve the water quality in their harbors. The water plan’s big focus is to reduce the impacts of storm water runoff. “We have a master storm water program we are very proud of which ensures that any storm water coming off the surface of our marine terminals is meeting standards and best practices in place,” Cameron said. “We’re monitoring storm water pollution prevention measures and we have already found that 50 percent of our cargo container terminals have installed some type of pollution prevention system,” Ochsner noted. Cameron said that the ports also work
Dredging, a process by which old and sometimes contaminated sediment is removed from the sea floor, helps restore habitats for local wildlife by creating a cleaner water environment, according to Rick Cameron, managing director of environmental affairs and planning for the Port of Long Beach. Pictured, dredging takes place for the port’s Middle Harbor Redevelopment Project. (Photograph by the Business Journal’s Thomas McConville)
with entities in regional watershed areas to ensure runoff into the Los Angeles River, which ultimately ends up in the Long Beach harbor, is as clean as possible. To remove trash in the water, the Port of Los Angeles recently purchased two new trash skimmers, which skim the water surface for debris, Ochsner said. Two more are arriving soon. “They clean up to 300 gallons a minute,” she noted. Cameron pointed out the San Pedro Bay Ports have been able to improve water quality through their capital improvement programs, which have often required dredging sediment from the sea floor. Dredging removes what he called “legacy pollutants” and “contaminated sediment from previous uses in the harbor,” such as the former Long Beach Naval Station. “The sediment acts as a habitat . . . that fish and other marine life rely upon,” Cameron said. “When we have clean water and clean sediments the habitat, fisheries and wildlife are going to thrive within the harbor complex.” Every five years, the ports engage in a study examining the quality of water and sediment with their facilities, which they are currently about to undertake again, Ochsner said. In previous years, the study has shown “great improvements” in those areas, she said. Cameron reflected, “[As] the No. 1 port complex in the nation and the ninth in the world with all the industrial activity taking place here, we have a very healthy habitat and water quality.” ■
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IN THE NEWS 16 Long Beach Business Journal
July 8-21, 2014
Magical Realism, ‘Neomexicanism’ Take Over Museum Of Latin American Art ■ By SAMANTHA MEHLINGER Staff Writer The Museum of Latin American Art (MOLAA) recently debuted two special exhibits, one of which is the first-ever solo museum exhibition of works by Cuban artist Roberto Fabelo. MOLAA President and CEO Stuart Ashman, who curated the exhibit, worked for two years with Fabelo to bring his art to Long Beach. Another exhibit focuses on Mexican artwork from the 1980s. “We’re really excited we have the opportunity to show Fabelo’s work because we consider him to be one of the most important and accomplished Latin American artists working today,” Ashman said. The artist, who is now in his 60s, has had a career of more than 40 years and has shown his work in exhibitions in Europe and South America. “He has never shown extensively in the United States,” Ashman said. “The only time you see his work is at auctions. In fact, we have two [of his] pieces in our collection which our founder purchased in 1999 and 2000 at Sotheby’s [auction house].” Ashman has personally known Fabelo since the 1990s, but about two or three years ago, he accepted an invitation to Fabelo’s studio. He recalled, “I saw a group of drawings on the table and I asked how many there were. At the time, there were 20 or 22. I said, if you give me those 20 drawings we will put up a show.”
Cuban artist Roberto Fabelo discusses his work entitled “Meditation in the Garden of the Night” (left) at a special solo exhibition of his work at the Museum of Latina American Art. To his right is his oil painting entitled “Great Blue Rooster.” (Photograph by the Business Journal’s Thomas McConville)
Fabelo agreed. “It ended up being 30 drawings, six larger pastel drawings and six very large paintings. The exhibit kind of grew and became monumental in size,” Ashman said. Many of Fabelo’s paintings and drawings, which are hand-colored with ink on pages from vintage anatomy texts, feature nude females with wings, beaks and other fantastical characteristics. Despite their fictional traits, the images are represented very realistically. The combination of fantastical and realistic elements place the work in a Latin American artistic movement called Magical Realism, for which famed author Gabriel Garcia Marquez was known. Fabelo was com-
missioned in 2007 by Marquez, who has since passed away, to illustrate one of his best-known novels, One Hundred Years Of Solitude. Another current exhibit of pieces from MOLAA’s permanent collection focuses on art reflective of Marquez’s works. Ashman said it was “serendipitous” that the two exhibits should be at the museum at once. Another special exhibit at MOLAA, curated by Assistant Curator Edward Hayes, Jr., focuses on Mexican art in the 1980s. The exhibit, dubbed “Neomexicanism,” focuses on “a period of art production by artists who were disenchanted with fixed identities and critical of the official image of Mexicanidad
promoted by the state,” according to a statement from the museum. “It is a very colorful exhibit,” Ashman said. Featured artists in the exhibit include Monica Castillo, Julio Galan, Nahum B. Zenil and others. “This period in art history has a lot of humor in it and a lot of explosive ideas,” he said. Visitors to MOLAA may notice a connection among the exhibits. Ashman explained, “To tie it all together we engaged the work of an exhibit designer so the whole museum has a cohesiveness, and coming through the museum is like an adventure in a way.” “Fabelo’s Anatomy” and “Neomexicanism” are at the museum until
Meet The Chamber’s New VP Of Membership
LBS Financial Credit Union Awards 33 Scholarships
Randy Gordon, president and CEO of the Long Beach Area Chamber of Commerce, welcomes Catherine Armstrong as the organization’s new vice president of membership development. According to a chamber statement, the Long Beach resident and California State University, Long Beach graduate has more than 10 years of experience in visual merchandising and marketing geared to increase product awareness and establish high-stature branding. Armstrong was named Nordstrom’s “fashion board girl of the year” and went on to complete the store’s management program which led her to manage the flagship store at Michael Stars. She also studied at the College of Internationale de Cannes in France, where she received a certificate of excellence from the school for her efforts in art history and the French language. (Photograph by the Business Journal’s Thomas McConville)
Last month, LBS Financial Credit Union awarded $1,000 scholarships each to 33 students in Long Beach, Lakewood, Cerritos and nearby communities. The credit union worked with school counselors in identifying each of the recipients. “Awarding these scholarships each year is one of the many ways LBS Financial gives back to the community,” said Jeffrey A. Napper, president and CEO of LBS Financial. “We are proud of the students, their accomplishments and hard work to achieve their educational goals.” LBS Financial was founded in 1935 as the Long Beach Unified School District Employees Federal Credit Union. Today it serves 50 cities and has more than 115,000 members. Pictured from left are: Napper; scholarship recipient Connor Johnson, a graduate of Millikan High School in Long Beach; and Heather Summers, senior vice president of marketing for LBS Financial. (Photograph by LBS Financial)
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IN THE NEWS July 8-21, 2014 September 28. A lecture on July 26 by Dr. Teresa Eckman, author of Neomexicanism: Mexican Figurative Painting and Patronage in the 1980s, takes place at 3 p.m. and is free with museum admission. The museum is open from 11 a.m. to 5 p.m. on Saturdays, Sundays, Wednesdays and Thursdays, and from 11 a.m. to 9 p.m. on Fridays. General admission costs $9, or $6 for students with I.D., seniors over 65 and children under 12. The retailer Target sponsors free admission on Sunday. For more information, call 562/437-1689 or visit www.molaa.org. ■
People In The News • Thomas Phelps has been named chief corporate strategist and CIO for Laserfiche, a Long Beach based enterprise content management company. Phelps has more than a decade of experience as a director in PricewaterhouseCooper’s IT Security, Private and Risk national practice. While there, he led the innovation of content security practices for the motion picture industry as well as other multi-million dollar enterprise-wide engagements for Fortune 500 companies. • Capt. Braden Phillips (ret. U.S. Navy), who serves as administration bureau chief for the Long Beach Police Department, has been named “2014
Long Beach Business Journal 17 Veteran of the Year” for the 70th State Assembly District by Assemblywoman Bonnie Lowenthal. “Captain Phillips has dedicated his life to public service,” Lowenthal said. “His work has helped shape Long Beach, and we owe him a debt of gratitude for his continued service.” According to a statement from Lowenthal, Phillips is a 1968 graduate of the U.S. Naval Academy and served as a specialist in antisubmarine warfare. He amassed over 5,000 flight hours and 500 aircraft carrier landings. In 1989, Phillips commanded a deep draft ship, the U.S.S. Ogden, which later deployed to the Persian Gulf in support of Operation Desert Storm. He retired in 1995 after 27 years of active duty service. • Sylvia Lynch has been named chief information systems officer for Long Beach City College. She is responsible for managing all information technology and computer systems that support the college’s instructional programs and administrative operations. Lynch has more than 25 years of higher education information technology experience having worked as the assistant vice chancellor of information technology services at Rancho Santiago Community College, and as the chief information officer at Chapman University and Biola University. Lynch is a Long Beach resident.
• Matthew Faulkner has been named executive director of the Community Hospital of Long Beach Foundation. “Matthew has extensive experience in all aspects of fundraising, program and donor development,” said John Koenig, foundation chair. Most recently Faulkner, a Long Beach resident, served as director of individual giving for the Segerstrom Center in Costa Mesa. From 2004 to 2012 he was director of development and external relations for the USC Lusk Center for Real Estate. A graduate of Cabrillo College and the American Academy of Dramatic Arts, the English-born Faulkner previously worked as director of economic development for the Long Beach Chamber. • Tim Good, a partner at Windes, a Long Beach-based accounting and consulting firm, has been elected chair of the 43,000-member California Society of Certified Public Accountants (CalCPA). He previously served the organization as first vice chair and treasurer, as well as boardmember. “CalCPA is focused not just on our profession but, in a larger sense, on the impact CPAs can have on society and the economy at large,” Good said in a statement. “We’re in the forefront of the efforts to simplify financial reporting for privately owned companies, to reduce the complexity of tax rules and to promote financial literacy in the gen-
Fire Fighter Turnouts Solar Power Purchase Agreement Furnish & Deliver Water Meters Rehab of Access to Taxiways Houghton Park Community Center Sales Tax and Use Tax Auditing SB 90 State Mandate Consulting Property Tax Consulting Svcs Commercial Rehab REBID Shoemaker Bridge Replacement Jeep Wranglers Rubicon Unlimited Development of a master Watershed Appian Way Low Flow Diversion El Dorado Nature Center 2014 Ford F-550 CNG Powered Library Surv. Cameras & Parts General Fire Fighting Equipment
eral population,” Good said in a statement. Good is a partner in Windes tax and accounting services department. • Dr. Pedram Salimpour has been elected president of the Los Angeles County Medical Association, which represents 6,500 member physicians. Dr. Salimpour received his medical degree from Boston University School of Medicine. He completed his residency at L.A.-County USC Medical Center/Keck School of Medicine. According to a statement, he is the CEO and co-founder of Champion Health Enterprises, a company focused on the creation of novel health ecosystems for Native American tribes and their business entities. Dr. Salimpour is the 143rd and youngest president in the association’s history. • The ArtExchange Board of Directors recently appointed a seven-member advisory board “focused on high level visioning.” Members are: Joen Garnica, Garnica Interiors, who is serving as chair; Blair Cohn, Bixby Knolls Business Improvement Association; Michele A. Dobson, attorney; Douglas Gastaluem, attorney; Jim Lewis, NonProfit Management and Consulting; Steven Pakiz, D.D.S.; and John Thomas, historic preservation consultant. The board’s “advocacy and vision will be vital in guiding the ArtExchange in furthering its objectives,” Garnica said in a statement. ■
ITB FD 14-089 RFP PW 14-054 WD-20-14 R-6957 RFP PW 14-105 RFP FM 14-115 RFP FM 14-114 RFP FM 14-113 ITB DV 14-078 RFQ PW 14-033 ITB FS 14-103 RFP PW 14-060 R-6907 RFP PW 14-030 ITB FS 14-119 ITB TS 14-118 ITB FD 14-116
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Bidder Registration Register with the City of Long Beach at www.longbeach.gov/purchasing to receive notifications of bid opportunities. Additional details on upcoming bids and how to register can be found on the website. Small Business Enterprise Program Take advantage of the City of Long Beach Small Business Enterprise (SBE) Program. To learn more about becoming a part of the SBE Program and certification process, visit the City’s Purchasing website. HUD Section 3 Program The City of Long Beach Section 3 Program provides economic and employment opportunities to low-income residents and businesses. More information is located on the City’s Purchasing website.
www.longbeach.gov/purchasing
www.longbeach.gov/pw/towing/auction.asp
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PERSPECTIVE 18 Long Beach Business Journal
July 8-21, 2014
Six Life-Changing Benefits From Simplifying Vol. XXVII No. 13 July 8-21, 2014 EDITOR & PUBLISHER George Economides SALES & MARKETING EXECUTIVE Michael Watkins SALES & MARKETING ASSISTANT Heather Dann DISTRIBUTION Conrad Riley EDITORIAL DEPARTMENT STAFF WRITERS Brandon Ferguson Samantha Mehlinger CONTRIBUTING WRITERS Pat Flynn and Michael Gougis PHOTOJOURNALIST Thomas McConville COPY EDITOR Lindsay Christopher The Long Beach Business Journal is a publication
of
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Publishing, Inc., incorporated in the State of California in July 1985. It is published
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other
ome people take simple things and make them complicated. As we become wiser we take complicated things and make them simpler. In teaching, conversing or persuasion, this is what turns a good communicator into a great communicator. We know what it’s like to ■ EFFECTIVE have a professor wow us with LEADERSHIP By Mick Ukleja complex ideas. We might be impressed, but we remain disconnected. That’s why we appreciate talented teachers who take a complicated idea, give us the big picture, and broaden our ability to grasp the topic. So here’s the question. Are you simplifying your life? “Simplicity is the ultimate sophistication.” – Leonardo Da Vinci Here are six life-changing benefits from simplifying. 1. Simplicity creates room for growth. As humans we obsess with collecting stuff. When the house fills up, we put the stuff in the garage and park the car outside. When the garage is full, we buy a storage unit. Getting rid of stuff in our lives and schedules isn’t an option that automatically surfaces. It takes energy to do it. And if we don’t make room, it’s hard for something better to come in. Pruning is necessary for growth.
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(except between Christmas and midJanuary) – 25 copies annually. The Business Journal premiered March 1987 as the Long Beach Airport Business Journal. Reproduction in whole or in part without written permission is strictly prohibited unless otherwise stated. Opinions expressed by perspective writers and guest columnists are their views and not necessarily those of the Business Journal. Press releases should be sent to the address shown below. South Coast Publishing also produces Destinations and the Employee Times magazines. Office South Coast Publishing, Inc. 2599 E. 28th Street, Suite 212 Signal Hill, CA 90755 Ph: 562/988-1222 • Fx: 562/988-1239 www:LBBusinessJournal.com Advertising and Editorial Deadlines Wednesday prior to publication date. Note: Press releases should be faxed or mailed. No follow up calls, please. For a copy of the 2014 advertising and editorial calendar, please fax request to 562/988-1239. Include your name, company and address and a copy will be sent to you. Distribution: Minimum 25,000. 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)
2. Simplicity aligns with truth. Life can seem complex. Yet in reality we are the ones that complicate it. Meryl Streep and Alex Baldwin starred in the movie, “It’s Complicated.” But the thing that complicated “it” were the characters in the movie! Life is simple. As a result, the simple things end up being the right things. It takes work to sift out the confusion and get to the nuggets. The work comes in the search for what’s true. And since our lives collect clutter, effort is needed to clear it out. Simple and true go together. 3. Simplicity leads to satisfaction. At its core, simplicity is satisfying. It’s settling. It provides happiness and peace. There is no peace in complexity – only unnecessary burden and stress. Yes, some things are more complex than others, but satisfaction comes from keeping them as simple as possible. “Everything should be made as simple as possible, but not too simple.” – Albert Einstein As we live simply, we help others to simply live. 4. Simplicity clarifies who we are. It makes us more secure, more in control, more clear in our thinking, and less anxious. And even though the forces of clutter push against us, there shouldn’t be anything complicated about being ourselves. It’s like concentric circles. Simplicity helps move us from “what we do” to “how we do it” to “why we do it” – our purpose. Simple and “why” work hand and hand. The closer we get to the “why,” the less complicated life becomes. It’s not being simplistic. It’s being simple. Simplistic is naïve. Simple is profound. Simplicity helps quarantine
the clutter so we can more clearly see the main thing. “The main thing is to be sure the main thing remains the main thing.” – Unknown 5. Simplicity increases productivity. The engineer, Kelly Johnson, helped create “Skunk Works” at Lockheed in the mid 1900’s. He coined the phrase, K.I.S.S. (Keep It Simple Stupid). There was no intent to imply that engineers were stupid. In fact, it meant just the opposite! His point was that the jet aircraft they were designing must be repairable by an average mechanic in the field under combat conditions with the available tools. His point? “Things work best if they are kept simple rather than made complex.” – Kelly Johnson, Lockheed This is also true of our lives. 6. Simplicity cultivates contentment. As we clear out, scale down, and sift through, we get to the essentials – and we find they are enough. We realize that the intimate search for wholeness is not found in accumulating more things. Simplifying helps us focus on what we have rather than what we don’t have. Our mindset goes from surviving to thriving. As our lives simmer, we steam off the cravings and craziness that happen by default. I am discovering that my success is in my simplicity. How about you? (Mick Ukleja is the author of several books, a coach, keynote speaker and president of LeadershipTraq, a leadership consulting firm. Check his blog at www.leadershiptraq.com.)
Beating The Heat During The Dog Days Of Summer hen you live in S o u t h e r n California, it can be easy to become less cautious when it comes to the heat. Being too comfortable with your weather environment can get you into big trouble when it comes to beating the heat. ■ HEALTHWISE Since 1979, more than By Susan Melvin, D.O. 7,000 Americans have died from heat related illness. According to Weather.com, the city of Long Beach experiences its hottest months of the year in August (avg. high of 84 degrees) and September (avg. high of 82 degrees). Long Beach Memorial has some helpful tips and advice so you can enjoy the dog days of summer while being safe. First of all, staying cool and safe is tough for everyone at this time of year. The heat affects people of all ages, but the people who are most susceptible to heat complications are young infants and children, middle-age people who have chronic medical conditions and seniors (65 and older). Seniors are often on medications that impair the body's ability to regulate its temperature or that inhibit perspiration. Additionally, they lose their thirst drive as a normal part of aging so they may need to be coached to drink adequate fluids. Seniors need to be kept out of the heat and minimize outdoor activities to prevent overheating; as they may not be able to regulate their body temperature efficiently. Successful prevention of heat-related illness and injury requires being aware of the potential for heat stress that can be caused by environmental conditions and taking the proper steps to adjust to higher temperatures during outside activities. Specific actions include: 1. Limiting Your Activity • Parents and coaches should support efforts to restrict organized athletic activities when weather conditions pose a significant risk for heat injury. • Recommended safety precautions include more hydration breaks, more frequent player substitutions during organized competition, ensuring a shaded area for rest or canceling athletic activities when the risk of severe heat illness is too high.
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• When activity is allowed, completing rest and a cool-down periods after a period of strenuous exercise helps reduce the risk of increased heat strain during a subsequent exercise period in some children and young adults. Children who are currently ill should avoid or limit exercise. 2. Finding Creative Ways to Stay Cool • Air conditioning is an expensive luxury that not everyone can afford, but that shouldn’t stop you from making your very own homemade air conditioning system. All you need is a fan and a big bowl of ice. The wave of air from the fan will blow across the ice cubes and, as they melt, chilled air will spread and help cool off a small space, like a bedroom or your favorite chair. • Keep a spray bottle in the fridge and when you feel yourself overheating take it out and spray your chest and face with some cold water. 3. Hydration is Key • Scheduled hydration breaks are very important in children and young adults during the hot months of summer because they are more likely to not fully replenish fluid losses during extended activity when dehydrated. • Flavoring water by adding both carbohydrates and sodium chloride increases fluid intake by more than 90 percent.
• Cool, non-alcoholic beverages with low sugar levels are the best sources of hydration. 4. Clothing Matters • Light colors can help reduce absorption of solar radiation. • Lightweight, loose fitting materials allow for your body to breathe more and release perspiration to stay cool. 5. Getting Acclimated • Getting acclimated to the heat provides the best protection against heat exhaustion and heat stroke, but this takes repeated exposures to heat. The number and duration of exposures necessary for acclimatization varies by age. For example, an older adolescent may become acclimatized after four successive days of limited heat exposure. In contrast, a young school age child typically needs up to 14 days to achieve the same acclimation point. There are always going to be risks and obstacles at this time of year when it comes to dealing with the heat. However, as long as you are thoughtful, plan ahead and don’t underestimate it, then you will be able to safely enjoy the beautiful dog days of the Southern California summer. (Susan Melvin, D.O., is the chief medical officer at Long Beach Memorial.)
To Provide Or Not To Provide A n 2014 there are many new opportunities and challenges for the insured, the uninsured, employees, employers, and employer-sponsored health plans. Whether employers continue to provide a health plan in 2014 and beyond ■ GUEST COMMENTARY may depend on what By Ben Alvarado the employer plan looks like, the cost of the plan, what competitors’ are practicing and, finally, what the political landscape looks like. Many employers feel it’s a competitive advantage to provide a plan to their employees in order to attract and retain key talent. But how can an employer comply with the Affordable Care Act (ACA), engage their
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employees, and keep their wallets intact? Here are four steps employers should consider to determine the fate of their benefit programs: 1. Stay informed. A few ACA mandates have been delayed and/or will be modified by agencies once they issue final guidance, and an employer’s ability to stay up to date is key to remaining competitive. The “large employer” (50 or more full-time employees) mandate, also known as the “Play or Pay mandate,” has been postponed until 2015. This gives large employers more time to understand the requirement to provide full-time employees and their dependents health insurance and avoid paying a penalty to the government if an employee receives a subsidy when they purchase coverage from a state exchange. We need more guidance to see whether transition relief will be granted to non-calendar year plans (plans renewing on a date other than January 1st) that
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PERSPECTIVE July 8-21, 2014
Long Beach Business Journal 19
Student Debt Increasing As Obstacle To Housing s the dynamics of the housing market continue to change, one issue that seems to be of increasing concern, not only to economists but to many professionals in the business of selling homes, is the vast drop-off in the number of younger first■ REALTY VIEWS time buyers. By Terry Ross Much of the blame for this trend has been laid at the feet of the increasing debt loads that students leave college with, as well as a stagnant job market that has seen very little upward movement in wages – resulting in young adults who have less ability than their predecessors to make a real estate purchase. Two-thirds of individuals who have attended college went into debt for their degrees, according to statistics supplied by the College Board. Thus, roughly two-thirds of college-educated adults must weigh their home purchase against the burdens of the college debt they still carry or their reduced sav-
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ings (in the form of smaller down payments) if they have already paid off their student debt. The Class of 2014 is said to have graduated from American colleges and universities with the highest student debt load in history. And this debt appears to be impacting consumers across several age groups, depending on how long they spend in school and the time frame for paying off the debt. For instance, 40 percent of individuals with student debt balances are under 30 years old, 42 percent are 30-50 years old, and 17 percent are older than 50. The cost of education appears to be one of the bigger culprits in this disappointing trend, as educational costs in California for public colleges and universities have just about doubled in the five-year period from 2006-2007 to 20112012. Nationally they are up 42 percent, according to the College Board. A college education is essential to obtaining a high-paying job in these times, and in California the numbers reflect this with a 16 percent increase in the number of students in public colleges or universities between 2000 and 2010. The median wage for four-year col-
lege graduates is twice the median wage of those with only a high school diploma, according to the New York Federal Reserve, and in turn, these jobs are a great boon to local housing markets. Areas with highskilled jobs requiring college degrees foster higher home prices and rents, and more stable demand from end users. However, when obtaining a college degree means accruing thousands of dollars of debt even before starting a career, a home purchase – particularly in high-priced areas where the best jobs are located – is often beyond reach. Of course there are other factors at work making it difficult for the first-time buyer age group (25-34 years), such as higher unemployment due to the 2008 recession and underemployment with stagnant or lower-paying jobs. But in all of the studies and demographic modeling, the huge increase in student debt appears to be an overriding negative factor in getting younger consumers into the market as homebuyers. The future forecast as to when this situation could right itself or return to some semblance of what we had a decade or more ago is somewhat
of a guess. Information from The California Employment Development Office and First Tuesday pegs a possible recovery by 2018-2020, based on greater job creation and retiring baby boomers downsizing in retirement. In the meantime, there are some federal programs to help those with large student debt obligations to reduce their payments through income-based repayment plans that extend the loan terms and reduce payments – or even gain loan forgiveness in certain instances with a public service loan forgiveness program for those who work at a non-profit or at some government agencies. The solution isn’t going to be an easy one, with the rising cost of education coupled with an uneasy job market and loan qualifications that are more stringent than in the past. But it is something that the real estate community is facing as the buyers in this segment of the market meet increasing challenges. (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.)
The New Normal In Fundraising: It’s What’s Behind The Numbers That Counts for undraising America’s charities got its annual physical report last month from the Giving USA Foundation – and the vital signs are looking promising. Over the years, the results from this comprehensive study have come to ■ THIRD SECTOR serve as the baseline for most fundraising comREPORT By Jeffrey Wilcox parisons and the directional compass for the entire nonprofit sector. The good news is that, during 2013, Giving USA reports a total of $335.2 billion in monetary contributions was shared with religion, arts, health, human services, public safety, the environment, animal welfare, and international affairs. More than 85 percent of that generosity was contributed by individuals like you and me, as well as through bequests and family foundations. It’s taken a number of years since the economic plunge of 2009, but most of the subsectors during 2013 finally surpassed their previous fundraising peaks realized in 2007 and 2008.
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The largest rebounders are education institutions. Not only has education realized a 37.2 percent growth in contributions since 2009, giving to these institutions jumped 8.9 percent between 2012 and 2013. Arts, environmental and animal welfare organizations aren’t far behind. Each is vying for place and show in the fundraising race, with each realizing more than a 20 percent jump in their charitable contributions since 2009 and at least a 7.5 percent jump in their respective results over the previous year. Perhaps a more interesting story is about the subsectors that aren’t faring so well: Religious organizations, including churches and synagogues, have not yet surpassed their fundraising yields of at least six years ago. International organizations saw a dip in contributions of nearly 7 percent between 2012 and 2013, and have suffered an overall loss of 16.1 percent since 2009. It’s a changed landscape in American philanthropy; and, for the fundraising junkies in the crowd, there are three undisputable trends emerging that every nonprofit organization must acknowledge in its resource development and strategic planning: The first is that bequeathed contributions, those dollars that people earmark in their wills and estates for charity, is the hottest source of new funds.
Bequeathed dollars are up over 33 percent since 2009 and this form of philanthropy is the largest gainer among all others with a growth rate of nearly 9 percent during the past year for a total of $27.7 billion. The second trend is that loyalty to charities isn’t what it once was. Attrition rates amongst givers is now at 12 percent. That means for every 100 contributors a nonprofit has this year, it will take reaching out to 112 next year just to keep participation levels flat. Tracking givers is as important as tracking dollars. The third trend is not new, even though there are too many organizations which act as though it is: Corporations represent 5 percent of the entire philanthropic pie; and foundations, another 15 percent. Any nonprofit that is enjoying corporate and foundation giving that is more than 20 percent of its total charitable income is living on borrowed time and is out of pace with the sector. The new normal is for a grant, at best, to have a two-year lifespan. Today, most grantmakers want to see, in advance, how their investments will be sustained before cutting the first check, to avoid the risk of starting something and then facing its stoppage when the grant runs out. The real story hidden in the wealth of data
released by Giving USA is what’s behind the numbers: What would have been considered “normal” fundraising activities behind the prerecession stats of 2009 is anything but normal five years later. Every boardroom, executive director’s office and development staff work area should have a posted sign that reminds its readers that there are four drivers of the new normal in fundraising: engagement, experience, evidence and electronics. A simple translation to these “e-words” is: Sell what you stand for instead of what you do; continuously invite people to participate in and personally feel good about what you do; constantly deliver data that proves your value; and, communicate in bytes. As in selling, there is a fundamental difference between raising money the hard way and raising it the smart way. This year’s report card on philanthropy is clearly showing those nonprofits that understand the new math behind their fundraising sums and those that don’t. (Jeffrey R. Wilcox, CFRE, is president and chief executive officer of The Third Sector Company, Inc. Join in on the conversation about this article at the Long Beach Business Journal website www.lbbusinessjournal.com)
Health Plan? That Is The Employer’s Question would delay this effective date to the first plan year beginning after January 1, 2015. The effective date of the automatic enrollment mandate (imposed on employers with more than 200 employees) is yet to be determined, as well as the effective date of the nondiscrimination rules applicable to fully insured plans that lost their grandfathered plan status. These rules would require those insured plans to comply with rules similar to the Internal Revenue Code § 105(h)(2) nondiscrimination rules. 2. Understand your immediate compliance deadlines. There are a number of other ACA changes that take place in 2014 that are not affected by the delay of the Play or Pay mandate, and employers must modify their health plans now to be in compliance. Those changes include a maximum 90-day eligibility waiting period,
prohibition on all pre-existing condition limitations, prohibition on dollar caps on essential health benefits, expansion of wellness incentives, dependent coverage up to age 26 (regardless of dependent’s access to own coverage), various plan design requirements applicable to non-grandfathered health plans, expiration of waivers for certain limited medical plans, and assessments and payments of various ACA-related fees. 3. Look for opportunities. Employers should not let a few rules stop them from exploring creative solutions. Selffunding is a very attractive alternative. Small to mid-sized employers (50-250 employees) who may have thought that only the largest employers can self-fund are finding their tolerance for risk to be acceptable in this new and changing environment. Designing a selffunded plan can be made easier with the aid of
certified self-funding specialists. It is also a way to offering minimum essential coverage to full time employees, thereby complying with one of the aspects of the ACA. Employers are also finding that designing and funding these new health and welfare plans can help them meet rules for a variable hour workforce, cap their expenditures and allow them to maintain focus on their business. 4. Look ahead. Once the employer has addressed its immediate compliance needs under the ACA, the next challenge is to control health care costs as an increase in the number of insured lives (employees and dependents) and population continues to age and suffer from chronic health conditions. Employers will be required to understand their employee population’s risks and find programs or processes to
reduce health care spending as they are faced with a new risk, the imposition of excise taxes if their health care costs are over the thresholds set by the federal government (“Cadillac Plan Tax”). In the past, designing the right health benefits package was a matter of choosing one insurer’s plan over another’s, a decision driven largely by cost and services. Today, the decision about what to do with health benefits is best made with the help of knowledgeable experts and a thoughtful approach. No matter what lies ahead with respect to the fate of the ACA, employers should look for insurance partners who can help them identify financial risks and develop customized solutions for their group health plans, their employees and their business. (Ben Alvarado is president of Orange County Coast Community Bank for Wells Fargo.)
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