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lbbusinessjournal.com

June 10-23, 2014

Mercedes Long Beach To Be Mercedes-Benz USA Regional Headquarters ■ By SAMANTHA MEHLINGER Staff Writer In less than 36 hours following his election as the next mayor of Long Beach, Robert Garcia, right, assembled a 17-member transition team to be led by attorney and former mayoral candidate Doug Otto, left. (Photograph by the Business Journal’s Thomas McConville)

Transition Mayor-elect Garcia Acts Quickly By Naming 17-Member Transition Team ■ By GEORGE ECONOMIDES Editor & Publisher ayor-elect Robert Garcia wasted no time in putting together a team to work with outgoing Mayor Bob Foster and his staff to ensure a smooth transition prior to the July 15 swearing-in ceremony. The 17-member team, led by local attorney and former mayoral candidate Doug Otto, represents a cross-section of Long Beach residents involved in community,

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business, nonprofit and civic affairs. “Long Beach is at a point in its history where there is going to be change,” Garcia said during a June 5 press conference at Long Beach City College. “It’s going to be change that is positive, it’s going to be inclusive and it’s going to be forward thinking and innovative. “I’ll be looking towards this team to provide leadership on the issues of commission appoint(Please Continue To Page 21)

fter nearly a year of relaA tive silence since signing L.A. County’s largest industrial lease in the past 25 years, Mercedes-Benz USA finally let the public in on its plans for a one million-square-foot former Boeing property. The 52.2-acre site is slated to house Mercedes’ West Coast regional offices, a (Please Continue To Page 17)

Councilmembers-elect April Primary Winners Suzie Price, Roberto Uranga And Rex Richardson Discuss Their Plans And Priorities ■ By BRANDON FERGUSON Staff Writer hile the dust settles W from the June 3 runoff elections, three new coun-

Election Recap PoliticalWire: Long Beach Elections Over, Thankfully ■ By GEORGE ECONOMIDES Publisher’s Perspective

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contentious and often negative campaign season has concluded in Long Beach. Friendships were tested, allegiances strained and lines drawn that may, in some cases, prove difficult to erase.

Much of the division was the result of people and organizations who – right or wrong – disagreed with how the city has operated under Mayor Bob Foster, particularly on issues related to the Port of Long Beach. Interestingly, candidates for mayor, city council and city attorney endorsed by Foster all won, either during the

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During June 4 ceremonies marking the groundbreaking of Mercedes-Benz USA’s West Coast Campus on former Boeing property, Mayor Bob Foster was presented a model Mercedes race car by Dietmar W. Exler, the firm’s vice president of sales. The 1,091,754-square-foot facility is situated on a 52.2-acre site on Lakewood Boulevard between Carson Street and Conant Avenue. The campus expects to employ 200 people. (Photograph by the Business Journal’s Thomas McConville)

primary or in the runoff. That’s a pretty good indication that most voters believe Foster has moved the city in the right direction. No doubt his leadership on budget matters brought much needed financial discipline to a city council that, over his eight (Please Continue To Page 20)

Who’s Who In Law

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8-Page Pullout – See Pages 9-16

cilmembers-elect, all of whom won their seats in the April primary, are gearing up to assume office on July 15. Orange County Deputy District Attorney Suzie Price is the new representative of the 3rd City Council District (primarily Southeast Long Beach), Long Beach City College Trustee Roberto Uranga takes over in the 7th District (Wrigley/California Heights/Bixby Knolls) and Rex Richardson, current chief-of-staff for Councilmember Steven Neal, takes over in the 9th District (North Long Beach). Each incoming representative spoke with the Business Journal about resident concerns in their respective districts as well as what they hope to achieve once in office. While concerns about crime were mentioned by all three, each councilmember-elect offered their thoughts on other pressing matters, including the multi-billion dollar city budget, which the new representatives must tackle immediately upon taking office. The incoming councilmembers also expressed their own unique plans for their first 100 days in office.

Suzie Price It should come as no surprise that Suzie Price is concerned about crime in the 3rd District. A prosecutor by trade, Price said residential burglaries top the list of concerns voiced by residents, adding that frustrations exist over (Please Continue To Page 18)

City Budget Cooperation By Foster, Garcia ■ By BRANDON FERGUSON Staff Writer he City of Long Beach T budget is anything but typical. Most cities do not have a port, airport, water department, health department, gas and oil department, and a fund that oversees expenditures along the coastline. Understanding the various funds within the budget, and their respective restrictions, is not a one-night cram session. There are enterprise funds, subsidiary agencies funds, internal service funds, tidelands funds, special funds, (Please Continue To Page 17)


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INSIDE THIS ISSUE 2 Long Beach Business Journal

June 10-23, 2014

3 Newswatch 4-Councilmembers Seek Delay For RMD Program 4-Long Beach City Hall News In Brief 4-BYD Bus Completes Durability Test 6-$11.4 Million In Cost Overruns For Middle Harbor 7-Southern Cal Receives Federal Manufacturing Designation 8-New Executive Director For Port Of L.A. Named

9 Who’s Who In Law 11-Using Social Media: Legal Minds Err On Side Of Caution 14-Starting A Business: Consulting A Lawyer Is Prudent Move

18 2014 Election 18-Councilmembers-elect Discuss Plans, Priorities 20-PoliticalWire 21-Garcia’s Transition Team

22 In The News 22-Local Architects Elevated To Fellowship Standing 22-Construction On New Grand Entrance At UAM 22-Bridges To Healing Opens In Bixby Knolls 23-Long Beach Chamber Again Wins Advocacy Award 23-Linda Drummond Elected Assistance League President 23-Reggie Harrison Named Acting Airport Director

Section B Focus On Signal Hill • An Annual Update On What’s Happening In Signal Hill As It Celebrates 90 Years

10-B Perspective Realty Views Gap In Affordability Is Widening By Terry Ross Effective Leadership The Myth Of Multitasking – Part II By Mick Ukleja HealthWise Becoming An Adult: Pediatric Patients’ Path To Medical Independence By Erika Jewell, LCSW Third Sector Report It Takes A Village To Raise A Philanthropist By Jeffrey Wilcox EarthTalk Driverless Cars

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June 10-23, 2014

City Council To Consider Ordinance Regulating Billboards ■ By BRANDON FERGUSON Staff Writer Tonight, June 10, the Long Beach City Council is considering an amendment to the municipal code that regulates city billboards. Aimed at controlling the blight caused by ubiquitous road-side advertising through a “cap and replace system,” the new ordinance would require advertising companies to permanently remove existing non-compliant billboards before creating new ones. According to the ordinance, if a company wanted to create a new electronic billboard, it would have to remove eight existing billboards. A non-electronic billboard would require the removal of six existing billboards. The proposed amendment appeared before the city council in January but was sent back to city staff with a request to modify some of the ordinance’s language, specifically as it pertained to billboard companies with limited freeway-only inventory. In a recent letter to the city council, the city’s department of development services described revisions to the ordinance’s language and recommended its approval. The revisions would allow companies

Long Beach Business Journal 3 unable to meet existing “takedown ratios” to apply for special “development agreements,” provided the companies prove they cannot meet the takedown ratios. “This development agreement will allow the billboard company to come to different terms with the city for construction of new billboards or conversion of existing billboards to electronic,” the letter read. In an email to the Business Journal, development services spokesperson Chelsey Finegan explained that development agreements may contain provisions that vary from the standards set forth by the ordinance. “Negotiating a development agreement is a more lengthy process than just going through the CUP process set out in the ordinance; in this case, a development agreement would allow the city to negotiate a different (larger or smaller) ‘take down’ ratio with the billboard company in exchange for some other type of public benefit,” Finegan wrote. According Mike Murchison, a public affairs consultant who represents Regency Outdoor Advertising, his client only has an inventory of 13 billboards around the city – all located near freeway areas. The new language of the ordinance would make it easier for the company to do business in the city, he said. “So now we have the opportunity to go through the planning commission to do development agreements that would allow the city to (Please Continue To Page 4)

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NEWSWATCH 4 Long Beach Business Journal

Billboard Ordinance (Continued From Page 3)

It Takes More Than Good Grades University life is an experience and students that do not take full advantage of the experience are at a competitive disadvantage when seeking that first career position. Recruiters assume that a student with a diploma has the technical skills required for the position. What recruiters want to know is if the student has the practical skills and attributes that are so essential to success – communication, teamwork, leadership, professionalism and By Howard Fletcher, drive. But how do students Director, CBA lacking in one or more of Internships and Student these attributes develop Center for Professional Development them? The answer is to participate in organizations and activities that foster personal and professional growth. The Student Center for Professional Development (SCPD) is one such organization. SCPD is a bridge between academia and career. It offers business students four programs that promote personal and professional growth. The Business Professional Certificate is a series of 20 professional development workshops covering topics such as resume writing, networking, business etiquette, conflict management, leadership, ethics and fourteen others. Community Scholars is a program in which a select group of business students mentor inner-city high school sophomores identified as being “at risk”. Our team mentoring approach promotes leadership, teamwork, planning, time-management, and public speaking skills, while fostering the self-realization and personal growth associated with impacting lives. The Junior Mentoring Program pairs recent alumni with junior students for a semester to prepare for senior year and graduation. Using their own experiences the alumni ensure that the students are doing those things today that will make their senior year more successful and improve the chances of landing that “career job” upon graduation. The Corporate Mentoring Program pairs a senior student with a mid-career executive in a mentoring relationship for one academic year. Mentors offer the wisdom of their personal successes and failures. They offer unbiased guidance and counseling. They reinforce professional skills and attributes. They help students overcome fears and selfdoubt and get started on the right foot. The programs offered by SCPD are voluntary and free. SCPD staff is trained to help students with their personal and professional development, assist students in finding career-related internships and encourage students to engage in other professional development activities. Interviews are the outcome of good grades. Careers are the outcome of professional skills and attributes. (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.) ■

recoup some significant monies to offset digital billboards down the road,” Murchison explained. For years the proposed amendment has been a source of discussion between the city and Long Beach advertising interests. Murchison said he believed that most companies and city staff involved in the discussion have reached an agreement. “I think that given the amount of iterations on the billboard ordinance and what’s been proposed over the last several years, we’ve worked with staff this time and have been able to reach a concurrence with staff moving forward,” Murchison said, adding, “I think from that standpoint I would expect the council will vote to support staff recommendations.” ■

Three Councilmembers Seek Delay For Rapid Medic Deployment Program ■ By BRANDON FERGUSON Staff Writer Councilmember Al Austin and two other members of the city council are requesting a status update and considering a possible delay in the implementation of the Rapid Medic Deployment (RMD) program. According to Long Beach Fire Chief Mike DuRee, the Los Angeles County Emergency Medical Services Commission gave its final approval for the city to implement the program, which is expected to begin after July 4. Originally billed as a cost-saving measure, the program would place one firefighter-paramedic on ambulances, which are currently staffed with two firefighter-paramedics. The freed firefighter-paramedics would be moved to one of the city’s fire engines. According to DuRee, the model would get advanced life support to emergency scenes faster. “From a paramedic service delivery standpoint, if you put a paramedic on every engine, we get advanced life support care to the scene faster because we have more engines than we have paramedic rescue units,” DuRee explained. DuRee added the RMD could also result in cost savings by replacing one firefighter-paramedic on each ambulance with basic life support personnel. “The thought was, why not take that second paramedic and put him or her on a fire engine where they can get out and stop the clock, if you will, then have a lower-cost, basic life support ambulance person drive the ambulance to the hospital,” DuRee said The fire chief said the department was prepared to give the city council an update on the program at tonight’s (June 10) meeting. “We, of course, will provide any information the council requests. I think we’re intending on providing a chronology of how we got here, and the process we’ve been engaged in in the past almost three years,” DuRee said, adding, “Barring any changes or specific direction from the city council, we’re moving forward.” But Councilmembers Austin, Gerrie Schipske and Steven Neal sent a letter to the rest of the council hinting that further deliberation may be necessary before implementing the RMD model. The letter writers argued that an April 15 report by the city’s budget manager indicated all departments are expected to finish the fiscal year within their budgets. Given that fact, the councilmebers requested that the city council receive an update on the program, “so the council can determine if now is the appropriate time to begin implementation of RMD, or if it is more responsible to have further discussion on the model as part of the FY 15 [fiscal year 2015] budget deliberations.” Jonathan Kraus, chief-of-staff for Austin, said that with a new budget coming up for consideration in August, it made sense to continue the discussion. “Councilmember Austin and the other authors of the agenda item, before implementation starts, want to have another discussion with the council, [and] city management in terms of how it’s being implemented, [and] the budget considerations because it was originally proposed as a budget savings measure,” Kraus said. ■

June 10-23, 2014

Long Beach City Hall News In Brief ■ By BRANDON FERGUSON Staff Writer City Council to Hold Closed Door Meeting – A special city council session held tonight (June 10) involves labor negotiations between City Manager Patrick West and the Long Beach Lifeguards’ Association. The public can comment on the issue before the council and mayor adjourn to the closed session. Occidental Petroleum to Become California Resources Corp. – Long Beach Gas and Oil is recommending the council approve the assignment of various consent agreements throughout the city be transferred from Occidental Petroleum Corporation (Oxy) to California Resources Corporation. Oxy plans on creating California Resources Corporation, which is to own all of Oxy’s current California assets including its Long Beach operations. Oxy is asking the council to make a decision on this matter tonight so that the California State Lands Commission can consider the proposal at its June 19 meeting. City to Consider Installation of Smart Meters – Tonight, the city council decides whether or not to authorize West to execute a $22,094,013 agreement with several companies to provide the components for and install smart meters for Long Beach Gas and Oil (LBGO) customers. According to an LBGO letter to the council, installing smart meters eliminates the need for gas company representatives to drive to customer homes to read meters, a move that promises to lead to a $1.4 million savings in annual meter reading costs. The project, if approved, is to be financed through issuance of bonds. Police Request Funds For New Boat – The Long Beach Police Department is asking the council to consider approving a $777,076 contract with NAIAD Inflatables to purchase a multi-use port boat. In a letter to the city council, Police Chief Jim McDonnell wrote that a 2008 analysis indicated “that enhanced tactical operations and emergency response capabilities are needed in order to enhance the response times related to threats from a variety of levels within the Long Beach and Los Angeles Port Complex.” Permit Considered For Three Mast Schooner, American Pride – The city council is set to consider an item authorizing West to enter into a five-year permit with the Children’s Maritime Foundation to use Rainbow Harbor docks and slips for an educational charter boat service. The Children’s Maritime Foundation operates the American Pride, a threemast schooner that provides educational and historical trips. Since 2007, the city has authorized an in-kind credit program to offset dock fees for the boat. The current permit is set to expire on June 30. The council is to consider extending the permit for another five years with a two-year renewal option at the city manager’s discretion. ■

BYD Bus Completes Durability Test ■ By SAMANTHA MEHLINGER Staff Writer Structural integrity testing on Build Your Dream’s (BYD) zero-emission electric bus, for which Long Beach Transit (LBT) once had a 10-vehicle contract, has been completed by the Altoona Bus Research and Testing Center, BYD announced in late May. When the report is released, “You are going to see we introduced one of the most structurally stable buses Altoona has ever seen,” Micheal Austin, vice president of BYD America, told the Business Journal. LBT’s 10-bus project with BYD, approved in 2013 and cancelled in April of this year, was characterized by tales of problems during Altoona testing, faulty substructures and accused labor violations (which were eventually dismissed). Ultimately the contract was cancelled because the Federal Transit Administration (FTA) found that BYD was not in compliance with its Disadvantaged Business Enterprise at the


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NEWSWATCH June 10-23, 2014

Long Beach Business Journal 5

time the contract was awarded. Compliance with this requirement was necessary for LBT to receive a $9.75 million FTA grant for the project, so LBT was forced to cancel. At the time, the FTA told the Business Journal LBT could rebid on the contract and would still receive the funds assuming all requirements were met. LBT plans to rebid, but has not yet indicated when. The U.S. government mandates Altoona testing for all new buses destined for U.S. roadways. It is not a pass-fail test, but instead is meant to provide the manufacturer with information about the vehicle, its maintenance schedule and strong and weak points. “It is a very tried and true process for new model testing,” Austin said. He explained that in every Altoona test, the bus manufacturer provides Altoona engineers with a preventative maintenance schedule. “What Altoona attempts to do is they attempt to simulate the wear and tear of a transit bus . . . to see if the preventative maintenance schedule provided is adequate,” he said. “This durability test helps expose your weak points so that you can focus on improving the design.” Altoona testing had to be restarted on BYD’s zero emission bus last fall when cracks above the bus’s rear door were discovered after it was shipped to BYD’s Lancaster facility following testing, according to an LBT staff report from last August. Austin said that Altoona engineers run buses on rough roads to intentionally crack welds and determine when maintenance issues might occur.

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“Unfortunately, every [LBT] board meeting was covered by the press. The press was not as adept or certainly not as versed in bus testing, so every set of issues that came up was like a huge catastrophic news report,” he said. “For these veterans of the bus industry, these are normal things.” The cracks reported on BYD’s testing bus were first reported by the Business Journal, and later by other local media outlets. News of problems associated with LBT’s contract with BYD eventually spread nationally. Now that testing has been completed, Austin said BYD’s bus, to his knowledge, never suffered what are known as Class 1 or Class 2 issues during testing. Altoona measures issues on a scale of one to four, with one indicating an impact to safety and four indicating cosmetic issues, he explained. “There were no safety classification issues during the whole testing,” he said. Austin emphasized that when BYD’s bus needed repairs, it was still able to complete its route before driving on its own power back to the Altoona facility; it never had to be towed, he said. All in all, “We felt very happy about the Altoona results,” Austin said of his company’s reaction. The report has not yet been released, but BYD’s onsite engineers at Altoona kept the company informed of the test results. Austin said BYD remains in contact with LBT about pursuing the rebid on the 10-bus contract. ■

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NEWSWATCH 6 Long Beach Business Journal

$11.4 Million In Cost Overruns For Middle Harbor ■ By SAMANTHA MEHLINGER Staff Writer About $11.4 million is soon coming out of the $30 million contingency fund for the Port of Long Beach’s (POLB) Middle Harbor Redevelopment Project to pay for more cost overruns, according to Tom Baldwin, Middle Harbor program manager. Baldwin notified the harbor commission of the upcoming contingency drawdown at a commission meeting two weeks ago. In December of last year, the harbor commission approved a budget increase of $85 million for Middle Harbor, largely due to cost overruns associated with relocating and abandoning (sealing) oil wells. Four Middle Harbor projects in Phase 1 necessitate dipping into the contingency funds. The highest cost increases are for the rail-mounted Gantry Crane Container Yard Project, which involves installing gantry cranes at Long Beach Container Terminal’s (LBCT) facility. That project needs a $6 million budget adjustment for cost overruns, according

June 10-23, 2014 to Baldwin’s harbor commission meeting presentation. Baldwin told the Business Journal that the cost increase is due largely to a lack of space at that portion of LBCT’s facility – essentially, too many workers were crowded into one area, which forced some work to be displaced. “One of the things we have had to do is move one of the contractors’ concrete batch plants off site. As a result of that, there were additional costs to perform the move,” he said. This also led to increased labor and trucking costs. “As a result, there was also some loss of productivity that the contractor wanted to be compensated for,” he added. The second highest cost increase is $2 million for the Slip 1 and East Basin Fill Project. This project consists of widening Slip 3 and transferring dredged material to fill Slip 1 “to create additional acreage associated with the total terminal layout footprint,” Baldwin said. “Some of the issues we are having are on the demolition and dredge work over on Slip 3,” he said, explaining that buried structures hidden within the slip caused by subsidence (the sinking of ground caused by extracting oil) complicated dredging. Among buried structures are an old timber wharf, a rock dike and large concrete slab. “We have to remove those because those buried structures are within the footprint of the slip we need to widen to accommodate larger vessels in the future and to be able to navigate those vessels and berth them at the wharf,” Baldwin explained. Removing the structures was expensive and caused time delays, he added. A project to build a maintenance and operations building for LBCT to service its cranes is also over budget by about $1.4 million. “The budget adjustment associated with that project was primarily due to underestimating Long Beach building department permit [costs],” Baldwin said. Construction of an operations building for LBCT also caused a price hike of about $1 million. “It is a pretty critical building to LBCT in order for them to proceed with the development of their software and integrate all of their operating systems,” Baldwin said. The project is substantially complete, he said. Although he said there “isn’t any one particular thing” that caused the price increase, he noted most additional costs were associated with the Middle Harbor project being six months behind schedule. Baldwin said “there have been a lot of lessons learned” as the Middle Harbor project has progressed. To minimize future potential cost increases, POLB is undertaking a risk analysis study for the project’s second phase and plans to implement more potholing – digging down to identify hidden substructures – before ground is broken in other areas. The budget increases are to be requested in the coming weeks. After Baldwin’s presentation to the harbor commission, Anthony Otto, president of LBCT, called Baldwin the port’s hardest working man. “When we started this project, his hair wasn’t gray – and look at it now,” Otto said. ■


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NEWSWATCH June 10-23, 2014

Long Beach Business Journal 7

Southern California Receives Federal Manufacturing Community Designation, Long Beach Included ■ By SAMANTHA MEHLINGER Staff Writer The four-county Southern California region (including Los Angeles, Orange, San Diego and Ventura counties) was among 12 regions selected out of 70 applicants to receive a federal designation as a manufacturing community, U.S. Secretary of Commerce Penny Pritzker announced in late May. The designation gives certain regional entities, including the City of Long Beach, preference on grant applications from a $1.3 billion pool of federal funds. USC’s Center for Economic Development and the City of Los Angeles led the application process for the manufacturing designation, which was granted through the federal Investing in Manufacturing Communities Partnership (IMCP) initiative started by the Obama administration. JoAnne Stewart, the Los Angeles Economic Development Corporation’s (LAEDC) director of public policy, estimated hundreds of Southern California entities, including businesses, nonprofit organizations, workforce development providers, cities and ports, came together to complete the application. To qualify for the designation, applicants had to prove their regions were home to some of the nation’s largest manufacturing industry clusters, according to Stewart. A handout to the IMCP from the Advanced Manufacturing Partnership of Southern California Manufacturing Community (AMP SoCal), the organization administering the manufacturing community designation, noted that California is home to 17 percent of all U.S. aerospace production. According to LAEDC, the concentration of aerospace jobs in L.A. County alone is 2.5 times the national average. Because Southern California’s application focused on aerospace and defense manufacturing, those industries are the manufacturing community designation’s beneficiaries. Only entities that signed on to the application qualify for the preferential consideration that the designation affords. In all, this includes 88 entities, such as universities, city colleges, cities, businesses, ports and economic development organizations. “Basically, preferential treatment means bonus points on an application [for funding],” Stewart explained. The manufacturing designation translates to “elevated consideration” by the federal government, which “can sometimes make or break someone winning an application,” she said. The 88 groups within the Southern California community do not automatically receive this preferential treatment, however. AMP SoCal’s executive board determines which proposals go forward “under the auspices of the manufacturing community designation,” according to LAEDC. Entities within the manufacturing community may also be among the first to know when federal funding is available. “Essentially we get access to a concierge service, and it is going to alert us to different types of federal funding,” Stewart said. “It can be difficult to keep an eye out for every funding opportunity out there,” so having this service is a big benefit, she explained.

Dion Jackson, associate at USC’s Center for Economic Development and an instructor at the university, said one of the reasons Southern California’s application was selected was because of the strategies and projects it proposed to benefit the regional aerospace and defense industry. One such project is a website called AMP SoCal Red Carpet, which offers assistance to companies looking for new locations, workers, suppliers and more. “One feature it is going to contain is a jobs posting ability,” Jackson added, so that companies may “have better access to qualified personnel.”

The application also laid out specific projects AMP SoCal intends to support. One is the City of Industry’s proposal to improve on-ramps and off-ramps on the 57 freeway to reduce congestion, Jackson said. With AMP SoCal’s approval, the City of Industry’s application for this project is being submitted for the Federal Transit Administration’s Transportation Investment Generating Economic Recovery (TIGER) grant, she said. The project is related to aerospace and defense manufacturing because freeway delays increase the cost of shipping goods

between 50 and 250 percent, according to an AMP SoCal handout given to IMCP. Forouzan Golshani, dean of California State University, Long Beach’s (CSULB) College of Engineering, said his college intends to take advantage of the newly granted manufacturing community designation. “We will be submitting proposals hoping to access the funds,” he said, referring to the $1.3 billion pool of federal funds to which the Southern California region now has more direct access. The college may apply for funds to aid in its current development of a doctoral program for manufacturing and engineering, he said. “It will be a program involving multiple universities,” he said, although he could not yet name the partnering institutions. (Please Continue To Page 8)

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NEWSWATCH 8 Long Beach Business Journal

Manufacting Designation (Continued From Page 7)

Receiving the designation is “a big gain for Southern California,” Golshani pointed out. “Southern California has been impacted more than any other region in the nation because of the downtrend in aerospace manufacturing. This grant will be our vehicle to get back to the level [of aerospace manufacturing] that existed in the ’90s,” he added. The designation enables the aerospace and defense manufacturing industry in Southern California “to upgrade our infrastructure and modernize our facilities,” enabling the regional industry “to be competitive globally,” he said. Long Beach Director of Business and Property Development Michael Conway, in an e-mail to the Business Journal, called the designation “a unique opportunity . . . to showcase Southern California as the manufacturing center of our state. With our historic relationship with Boeing and ongoing partnerships with Douglas Park and Pacific Pointe [the industrial development by Sares-Regis], the manufacturing base in Long Beach has not only been preserved, but is now prospering in the new, post-recession, economy,” Conway said. “Our designation as a manufacturing community serves to underscore our success, but challenges us to do more through partnerships beyond our city limits.” ■

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Last week, the Los Angeles Board of Harbor Commissioners made two decisions that impact the future of the Port of Los Angeles (POLA): Approving Los Angeles Mayor Eric Garcetti’s appointment of American Presidents Line (APL) executive Gene Seroka as executive director of the port; and signing off on a $938.8 million budget for fiscal year 2014-2015. Seroka (pictured) is head of commercial overseeing APL’s Americas region. APL is a division of ocean carrier Neptune Orient Lines (NOL), which is based in Singapore and is the world’s seventh largest ocean carrier, according to POLA. Seroka has also served as president of the Americas region, vice president of APL Logistics Ltd. and managing director of APL and APL Logistics Indonesia, among other positions. Seroka replaces Interim Executive Director Gary Lee Moore, who was temporarily filling former Executive Director Geraldine Knatz’s position while the harbor commission sought a replacement after Knatz’s retirement in November of last year. Moore returns to his position as the City of Los Angeles’ city engineer. In a statement, Garcetti thanked Moore for his service at the port.

June 10-23, 2014 Garcetti announced his nomination of Seroka on May 27. “I’m confident that Gene will be a strong leader who will enhance our international trade agenda, increase reliability and efficiency through effective management and labor relations and ensure our port is a sustainable and positive neighbor to the harbor community,” the mayor said in a statement. “I’m thrilled that Mayor Garcetti has tapped me to lead the Port of Los Angeles – the busiest container port in the United States,” Seroka said in a statement. “I look forward to focusing our operations to provide world-class customer service while continuing to invest in a healthy and vibrant harbor community.” The announcement of Seroka’s nomination as POLA executive director also received a positive response from the head of the harbor commission and the business community. “Gene Seroka is uniquely qualified to lead the Port of Los Angeles,” Vilma Martinez, president of the L.A. harbor commission and former U.S. ambassador to Argentina, said in a press release. “His maritime and global commerce expertise, leadership skills and strategic vision are exactly what we need as the nation’s premiere trade gateway.” The Pacific Merchant Shipping Association (PMSA), which represents POLA customers, applauded Seroka’s appointment. “Gene has extensive experience within the maritime industry and is greatly respected by all segments of the community,” PMSA President John McLaurin said in a statement. McLaurin praised Garcetti and the harbor commission for “conducting a transparent, thorough and methodical search” for an executive director. Seroka’s appointment awaits final approval by the L.A. City Council.

Budget Approved Also at the June 5 meeting, the L.A. harbor commission approved a $938.8 million fiscal year budget for 2014-15, with about 37 percent of the funds dedicated to capital expenditures. A POLA staff summary said projects within the Capital Improvement Program (CIP) enable the port “to maintain its competitive edge and support waterfront development while enhancing job creation and economic development.” A statement from POLA indicated 87 percent of the CIP budget is dedicated to terminal development and transportation projects. About $100.4 million was allotted for the TraPac Terminal expansion, an ongoing project to improve TraPac’s facility with stacking cranes, automated vehicles and ondock rail, among other features. POLA tenants Yang Ming, APL, Evergreen, YTI and China Shipping were allotted $19.2 million for improvements to their terminals. Transportation-related rail, vehicle movement and grading projects are the beneficiaries of about $109 million from the CIP budget. About $38 million in CIP funds are for projects benefitting the community, including the redevelopment of the L.A. Waterfront, according to POLA. Port operating expenses make up $217.3 million of the total fiscal year 2014-15 budget, of which $18 million is allocated for environmental management. ■


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Who’s Who In Law

INSIDE Clinton Clinton & & Clinton Clinton Attorneys Attorneys at at Law Law Curd, Curd, Galindo Galindo & & Smith, Smith, LLP LLP Davert Davert & & Loe Loe Lawyers Lawyers Demler, Demler, Armstrong Armstrong & & Rowland, Rowland, LLP LLP Graham Graham & & Dunn Dunn Harting Harting Simkins Simkins & & Ryan, Ryan, LLP LLP Law Law Offices Offices of of Lombardi Lombardi & & Perry Perry LLP LLP Law Law Offices Offices of of Glen Glen L. L. Rabenn Rabenn Pacific Pacific Coast Coast University University School School of of Law Law Photograph at the law library of Demler, Armstrong & Rowland, LLP, by the Business Journal’s Thomas McConville

ALSO: • When Using Social Media, Even Legal Minds Need To Err On The Side Of Caution • For Those Going Into Business, Consulting A Lawyer Is A Prudent Move


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WHO’S WHO IN LAW June 10-23, 2014

Long Beach Business Journal 11

When Using Social Media, Even Legal Minds Need To Err On The Side Of Caution ■ By BRANDON FERGUSON Staff Writer The world of social media is littered with embarrassing horror stories – many of them involving youthful indiscretions, regrettably posted and transmitted across a worldwide medium. Surprisingly, though, even highly educated professionals need to be mindful of their web postings – and lawyers are no exception. At the American Bar Association’s (ABA) 40th Annual Conference on Professional Responsibility, which was held on May 30 at Hyatt The Pike in Long Beach, Seattle attorney Bruce E.H. Johnson told the Business Journal, “Lawyers are increasingly using social media as a marketing tool, and many of them are running afoul of lawyers’ ethics rules.” Johnson moderated a panel that explored the legal ethics of using social media sites such as Facebook, Twitter and LinkedIn. While some of the panelists presented extreme examples, others illustrated how the rapid evolution of technology has left legal ethicists scrambling to figure out how ethics rules apply in the digital age.

In a paper titled “It’s Complicated: How To Walk the Fine Ethical Line in the Age of Social Media,” panelist and attorney John Browning discussed one case that involved a public defender from Miami-Dade, Florida, who posted to Facebook a photo of her client’s underpants. Browning’s article explained that as a result the attorney was fired. “Unfortunately, poor judgment plagues lawyers just like anybody else,” wrote Browning. “And social networking sites have provided a wider audience than ever [before] for such lapses.” Although such a case is likely to garner the public’s attention, attorneys can also find themselves in trouble over less public matters. In California in 2012, the Standing on Professional Committee Responsibility and Conduct (COPRAC) issued an opinion arguing that a seemingly innocuous statement by an attorney on a personal Facebook page can qualify as an advertisement and is therefore subject to certain rules and regulations. The statement could be as simple as “Another great victory in court today! My client is delighted. Who wants to be next?” (Please Continue To Page 14)

Demler, Armstrong & Rowland: A Legacy of Success

The partners at Demler, Armstrong & Rowland wish to extend their congratulations to our partner, Terry A. Rowland, for his successful verdict in the San Diego case of Berry v. Hicks. After several weeks of trial, the plaintiff asked the jury for a verdict of $42 million. After rejecting the defense offer of $4 million, the jury returned a verdict of $1,287,028.82. This victory caps a “winning streak” of 15 consecutive successful jury trials. Congratulations are also in order for his recognition, for the ninth consecutive year, as a Southern California “Super Lawyer” (top 5%) by the publishers of Los Angeles Magazine. For over 30 years, Demler, Armstrong & Rowland has provided the Long Beach business community, homeowners and individuals with legal assistance in all aspects of insurance, business, contract, casualty and construction litigation. The firm also has significant experience in anti-SLAPP proceedings, recovering substantial attorney fee awards in response to frivolous lawsuits. In over 150 jury trials for both defendants and plaintiffs, the firm has a track record of success exceeding 90% in lawsuits throughout California. Demler, Armstrong & Rowland has consistently been awarded the highest possible rating (“A-V”) in both ethics and competence by Martindale-Hubbell and our trial lawyers have repeatedly been recognized as Southern California “Super Lawyers” (top 5%) in peer rating reviews published in Los Angeles Magazine. Paragon v. Weber-Madgwick Condominium insurer paid $2 million in flood damages to the owners and then sought reimbursement, claiming that the defendant’s grading operations on the project created an artificial dam which flooded after being filled with rainwater. Judgment for defendant plus an award of attorney’s fees. Niguel Summit v. Sanderson Owners of apartment complex sued contractors for structural construction defects on the property on theories of negligence, breach of warranty, breach of contract and express indemnity. Defense verdict. DeArmand v. Shanfeld Plaintiffs sought $400,000 in compensatory and punitive damages, claiming multiple violations of the Santa Monica Rent Stabilization Ordinance. Defense verdict. Leakos v. Westwood Center Plaintiff sought $800,000 in damages after suffering injuries during an attempted sexual assault in defendant’s office building. Plaintiff alleged that the defendant provided inadequate security despite a history of criminal activity in the building. Defense verdict. Mo Hotta Mo Betta v. Lotta Hotta DAR represented the plaintiff in a lawsuit for trademark and copyright infringement, alleging that the defendant adopted a similar-sounding name and produced a catalog which was deceptively similar to the plaintiff’s after the plaintiff refused the defendant’s proposal to franchise its operations. Defendant agreed to a stipulated judgment, company name change and payment of attorney’s fees. Bubonic v. Safeco Plaintiffs sued their insurance company for breach of contract and insurance bad faith, claiming that the carrier refused to pay them for the loss of over $300,000 worth of jewelry allegedly stolen from them while they were staying at the Ritz Carlton Hotel in Rancho Mirage. After removing the matter to federal court, DAR obtained a verdict in favor of the defendant and an award of attorney’s fees against the plaintiffs. Silva v. Paul Frank Industries Plaintiff contended that he had created the “Julius” monkey cartoon character and sued the defendant for copyright violations. DAR contended that Paul Frank Industries, Inc. was the owner of the copyright and the lawsuit was resolved via a successful motion for summary judgment by the defense.

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WHO’S WHO IN LAW 14 Long Beach Business Journal

Social Media (Continued From Page 11)

According to Los Angeles-based attorney Wendy Chang, violation of these advertising rules can have many consequences, ranging from a simple reprimand to the loss of one’s license, depending on the severity of the violation. To protect against such repercussions, “Attorneys just need to recognize that the normal rules that encompass attorney advertising are implicated when you are using social media platforms,” Chang said. Complicating matters is the lag time between rules that have been on the books for years and the rapid evolution of computer technology. For example, in the California Business and Professions Code, which regulates attorney advertising, the wording makes no mention of social media platforms. “The rules have existed for some time. [But] technology moves as quickly as you can blink. So there’s always a bit of a gap,” Chang said, adding, “but the rules are, if you take it down to the core, applicable.” Nicole Hyland, a New York attorney and panelist, added, “The rules themselves don’t expressly talk about social media. You’re starting to see ethics opinions interpreting the rules and attempting to apply the rules to social media.” Some common pitfalls attorneys may encounter when using social media include violation of attorney-client privilege, unintentionally creating attorney-client relationships, and in the case of communica-

June 10-23, 2014 tions occurring across state lines, engaging in the unauthorized practice of law. According to Hyland, the informal nature of some social media platforms can make it easy for some lawyers to forget that the rules governing the practice of law still apply. also Hyland Attorney Nicole Hyland referred to what she called the “myth of the privacy bubble,” stating “When they’re communicating with their friends and their family, [some lawyers] just don’t think about the fact that the rules still apply to their conduct. In fact, their conduct is still public even though they’re primarily interacting with their close associates and friends.” But while the potential for trouble exists, Hyland added that social media provides attorneys with important tools necessary to remain competitive and to best serve their clients. “I wouldn’t say you have to be worried all the time or you have to be overly cautious about what you do on social media. Use common sense, familiarize yourself with the opinions that are out there,” Hyland said, Added E.H. Johnson, “Educate yourself on the technology. Under the American Bar Association rules, lawyers now have an ethical duty to understand the technology they’re using.” ■

For Those Going Into Business, Consulting A Lawyer Is A Prudent Move ■ By BRANDON FERGUSON Staff Writer According to U.S. Small Business Administration (SBA) statistics, in 2011 the nation was home to 28.2 million small businesses. In the wake of the Great Recession, small firms (businesses having fewer than 500 employees) accounted for 60 percent of net new jobs. While these numbers may be heartening, entrepreneurs should remember that the process of starting a business entails more than choosing a snappy name and working flexible hours. According to Long Beach attorney John Romundstad, it’s prudent for people who are starting a business to consult a lawyer as well as a certified professional accountant (CPA). “Every situation’s a little different. You need to have all of [the] information laid out before someone who knows the drill, so to speak, and who can help you make the right decisions from the get go so that you best protect yourself,” Romundstad recently told the Business Journal. When entrepreneurs ask Romundstad, who has been practicing law for 37 years, for advice, he has a series of questions he asks. “I ask them what their objective is,

what kind of business is it, what they want to do with it, where they want to take it,” Romundstad said. He explained that the answers to these questions often help determine whether an entrepreneur should set up a sole proprietorship, a limited liability corporation or some other corporate entity. Each choice, he explained, affects an owner’s liability differently. “Increasingly, people who are starting businesses recognize that protecting themselves, their families, their assets and so forth from liability is crucial right from the get go," Romundstad said. Attorney Paul Carter, who practices law at the Long Beach firm Bergkvist, Bergkvist & Carter, added that it’s important for potential business owners to consider factors such as workers’ compensation coverage and liability insurance. “If you’re not insured properly the penalties can be severe, so you definitely want to have adequate insurance,” Carter said. Although discussing potential failure is not always a pleasant conversation to have with a client, Carter added that it’s a good idea to consider failure before it happens. “When you talk to people, you hope the business is going to succeed, but what

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WHO’S WHO IN LAW June 10-23, 2014

Long Beach Business Journal 15

into partnership agreements and operating agreements, joint venture agreements – just different exit strategies depending on what the circumstance is.â€? SBA.gov offers information on business law, including topics ranging from employment and labor law to finance law and environmental regulations. However, in an email to the Business Journal, SBA press officer Cecelia Taylor said none of these web articles should replace the advice of competent legal Long Beach attorney John E. Romundstad says that when starting a busi- counsel. “Businesses should ness, it’s prudent for entrepreneurs to consult with a lawyer “who can avail themselves to legal help you make the right decision from the get go so that you best protect counsel on matters that may yourself.â€? (Photograph by the Business Journal’s Thomas McConville) make-or-break their busiyou’re really trying to do is design what the ness,â€? Taylor wrote, adding, “SBA resource exit strategy is going to be if it fails. How partner advisement doesn’t replace the are you properly protected in the event it need for legal counsel.â€? doesn’t turn out to be the next big thing?â€? Carter further explained that he has seen Carter said. clients choose not to draft a $2,500 conAdding multiple partners to a business tract that could protect their interests, precan also complicate a small businesses ferring to save the money, only to experiowner’s plans. Romundstad said this often ence a problem down the road and find requires an operating agreement or in cer- themselves facing tens of thousand of doltain cases a shareholder’s agreement. “You lars worth of costly litigation. “An ounce of want to be able to address what happens if prevention would eliminate these probsomebody dies, somebody gets disabled, or lems,â€? Carter said, adding, “We’re looking somebody decides they just want to get out at it like how do we plan for the worst to of the business,â€? Romundstad said. protect your interests. That’s really why you Carter added, “You want to put things should talk to an attorney.â€? â–

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NEWSWATCH June 10-23, 2014

Mercedes-Benz USA (Continued From Page 1)

vehicle preparation center (VPC) and staff training facilities, Dietmar Exler, Mercedes vice president of sales, told a crowd of local city officials during a June 4 press conference. Now that Mercedes’ landlord, SaresRegis Group, has readied the property by stripping away old equipment and buildings from the site’s former Boeing 717 plant, Mercedes is starting construction. Last year, the company signed a 15-year lease agreement with Sares-Regis. “Mercedes-Benz planted roots in Southern California 46 years ago,� Exler said. “Today, after a long period of growth and success, California is truly one of the most important markets that we have in the world.� The growth Mercedes has experienced in California is what necessitated moving into a large facility, Exler said. In the entire Western region, which spans from Hawaii to Alaska to California, Mercedes sells nearly 100,000 vehicles per year, he said. The West Coast regional offices moving to Long Beach are “responsible for wholesaling the cars to the dealers,� to ensure dealers have the appropriate vehicles for retail sale, and for supporting dealers’ services and parts needs, Exler said. Ted Boudalis, strategic VPC operations manager, later said during a facility tour that

FY 2014-15 City Budget (Continued From Page 1)

etc. and, of course, the general fund, that must be understood and voted on. It’s a daunting task, to say the least. That task awaits five new councilmembers who are taking their places on the dais on July 15 and who, along with the four existing councilmembers, are immediately set to decide on the city’s most important issue: a multi-billion dollar budget that goes into effect on October 1. The current year budget is more than $3.1 billion, of which $438 million is for the general fund that pays for critical city services such as police and fire, parks and street repairs. According to city officials, every effort is being made to prepare the new councilmembers for the budget process. “There’ll be time to do a number of study sessions. We’ll be doing our normal process in terms of giving everyone an overview of the budget and how it works in August when we release it,� Deputy City Manager Tom Modica explained. According to Modica, the city manager’s office prepares the budget details then releases them to the mayor for consideration by July 3. The mayor then releases the budget with his recommendations to the city council, typically by August 1, Modica said, at which time a series of hearings leads up to a council vote on the final budget in early- to mid-September. Added Modica, “We don’t wait until they’re seated in July. We’re willing to give the overview of how the budget works, what the process is, what our major revenues are, what our major expenditures are.� Though the budget initially goes to current Mayor Bob Foster, Doug Otto, chairperson for Mayor-elect Robert Garcia’s transition team, said at a press conference last week that Garcia’s office plans to also

Long Beach Business Journal 17 these offices are to be on the second floor of a building on the corner of Lakewood Boulevard and Conant Street. Employees at the future VPC are to work with the Port of Long Beach (POLB) to transfer Mercedes-Benz vehicles shipped from Germany to the new Long Beach site. The VPC handles customs and tax paperwork and quality-inspects all vehicles coming from the port, Exler said. Last year, more than 70,000 Mercedes vehicles arrived at POLB. The VPC is to be located toward the eastern side of the property, behind the regional offices and learning center, according to Boudalis. The Mercedes’ Learning & Performance Offices, to be located on the ground floor off the main entrance on Lakewood Boulevard, are for training and educating Mercedes employees and dealership staff about the company’s vehicle portfolio, Exler explained. “This is going to be a great facility, not only for Mercedes-Benz but for the City of Long Beach,â€? Mayor Bob Foster said. “I believe you are going to see many lateral businesses come in to serve Mercedes and serve the workers here. I think this is the beginning of a real nice cluster in and around Douglas Park that will enhance the economy in Long Beach.â€? Boudalis led a tour of the facility following the press conference. The two existing buildings on the site were stripped bare, request a copy of the manager’s budget. “We’re going to ask that he [Foster] also gives his budget to Mayor-elect Garcia as well so we have a chance to think about the issues the city is looking at from a fiscal point of view,â€? Otto said. City Budget Manager Lea Eriksen, explained that her office is preparing a presentation to help educate the incoming councilmembers on city finance. “What we plan on doing is reaching out to each councilmember-elect individually and asking them to sit down with us and go over the presentation,â€? Eriksen said. Incoming 3rd District City Councilmember Suzie Price said that before taking office she plans to attend meetings with outgoing Councilmember Gary DeLong and city department heads in order to get a handle on the new budget. “I would hope that everyone would take the approach that we need to start educating ourselves on the budget as early as possible,â€? Price said. Stacy Mungo, councilmember-elect for the 5th District, said she and other incoming representatives have scheduled meetings with the city manager as well as current and incoming councilmembers. “I’ve already talked with current councilmembers and councilmembers-elect . . . to discuss our priorities and their priorities and what they’ve seen in the budget in the past. We’re all getting to work right away,â€? Mungo said. Mungo further explained that her background as a Los Angeles County budget officer has prepared her for the task. “The local funds are similar to things I’ve already worked with,â€? Mungo noted. Rex Richardson, councilperson-elect for the ninth district, added, “The timing is a bit awkward, but it’s not strange for Long Beach considering it happens this way every time. The good thing this year is that we’re not dealing with any significant cuts.â€? â–

with construction workers scattered across the million square feet, chipping away at the concrete floor. When completed, Boudalis said the Mercedes facility would house about 200 employees, most of whom are being transferred from other locations. “Most of the staff will transfer, but there could be some additional hiring,� he said. The VPC is also to be used for storing cars to ensure they remain in pristine condition before they are shipped to dealers, Boudalis said. Facility plans include storage space for up to 5,000 vehicles. “Ships come in, roughly about one per week, with anywhere from 1,000 to 2,500 vehicles on each,� he said.

Boudalis said the location was chosen by because it met a very specific set of criteria. “We knew we needed 50 acres. We knew we needed to park a certain number of vehicles. We needed a city and a location that was going to work well with our port operation,â€? he explained. “Everything came together very nicely having this opportunity here.â€? Exler added, “We were very keen to find a location where the city is very interested to work with this business. The City of Long Beach was great for us.â€? He emphasized that city staff, including the mayor, have been readily accessible to Mercedes. “You pick up the phone, they call back . . . We appreciate that.â€? â–

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1_LBBJ_June10_SectionA_LBBJ MASTER LAYOUT 6/8/14 6:23 PM Page 18

2014 ELECTION 18 Long Beach Business Journal

June 10-23, 2014

Councilmembers-elect Discuss Plans, Priorities

Councilwoman-elect Suzie Price is pictured at the Colorado Lagoon with her husband, Mark, and their two sons, Kian, left, and Kaeven. The new council representative for the Long Beach City Council’s 3rd District is a deputy district attorney in Orange County. She will be sworn into office on July 15. (Photograph by the Business Journal’s Thomas McConville)

(Continued From Page 1)

Councilman-elect Roberto Uranga is pictured at the California Heights mural at Orange Avenue and Wardlow Road. The mural was created by Art Mortimer in January 2004. Uranga remains a member of the Long Beach Community College District Board of Trustees, where he has served since 2000. As of press time, no decision had been made as to whether he will continue on the five-member board. Uranga is sworn in as the new 7th District councilman on July 15. (Photograph by the Business Journal’s Thomas McConville)

Councilman-elect Rex Richardson with his wife, Nina, at their North Long Beach home that features a water efficient landscape. (Photograph by the Business Journal’s Thomas McConville)

allocating public safety resources to other districts. “Obviously, you’re going to put the resources where the direct needs are in terms of violent crime – violent crime is always going to trump theft-related crime,” Price acknowledged. “But we need to be mindful that even theft-related offenses are a huge deal to people.” To alleviate the problem, Price said she plans to facilitate better communication between the police and neighborhood association presidents. “Even before I start my term, I will be meeting with Commander [Paul] LeBaron to talk about a very structured community watch program that will literally encompass every block of the 3rd District,” Price said. As for budget concerns, Price admitted it is a large task – especially for those new to office. “I would hope that everyone would take the approach that we need to start educating ourselves on the budget as early as possible. I’ve been very fortunate to have not had a runoff,” Price said, adding that she plans to attend monthly meetings with current councilmember, Gary DeLong, and department heads while he’s still in office in order to get a better grasp on issues surrounding the budget. Another area of concern, she said, is the Southeast Area Development and Improvement Plan (SEADIP). Adopted in 1977, SEADIP is an ordinance governing development of an area covering 1,500 acres of Southeast Long Beach. “Within the first 100 days, I want a full briefing on what’s happening with SEADIP and whether we’re moving along in an efficient manner. It seems a little slow to me,” Price said. Price also explained she’s completed the staffing process and plans to make Julie Maleki, DeLong’s current field deputy, her chief-of-staff. Her team also includes Ricky Dockery as business liaison. “He’s going to service the needs of all the small businesses in the 3rd District. He’s going to help them with permitting, licenses, variances . . . basically a VIP service for the business community,” Price said. Most of all, Price is excited to take office. “I look forward to many partnerships with people who want the best for the community as I do,” Price said, adding, “It’s going to feel really amazing to be sitting at a council meeting and look to my right and look to the left to see so much new energy, diversity and spirit.”

Roberto Uranga Roberto Uranga recently told the Business Journal he’s not waiting for July 15, the day he officially begins leading the 7th District, to get to work. “What I’ve been doing already is meeting with constituents, meeting with laborers, meeting with business people and neighborhood leaders to talk about what they would like to see, what they feel their needs are,” Uranga said. A four-term member of the Long Beach City College Board of Trustees, Uranga said his plans for his first 100 days include getting to know his colleagues. “I’m going from a body of five at the Long Beach


1_LBBJ_June10_SectionA_LBBJ MASTER LAYOUT 6/8/14 6:23 PM Page 19

2014 ELECTION June 10-23, 2014 Community College District Board of Trustees to a body of 10, including the mayor, at the City of Long Beach. So there’s some relationship building that I need to get done,” Uranga said. Among the 7th District’s most pressing concerns is revitalizing the business corridors, Uranga said, adding that many buildings currently sit shuttered. “We need to look at buildings in those business corridors and also maybe look at some beautification projects, making them more attractive for individuals wanting to shop and buy [there]. The health of a city is the health of the businesses we have,” Uranga said. While Uranga said he would like to see the city work with both city colleges and state universities to create workforce development programs, he explained that for him, the budget is also a central concern. “One of the main issues is the budget, keeping it solvent and keeping it so we can keep our police and fire departments fully funded and fully staffed – to be able to provide the services our communities not only deserve, but demand,” Uranga said. Asked whether he was concerned about tackling the budget so soon after taking office, Uranga said his past city employment, which included a stint as administrative officer with the city health department, has well prepared him for the challenge. “In my situation, I’m a 28-½-year employee of the city, so I’m pretty familiar already with a lot of the city in terms of the budget and departments and the areas that I would need to be familiar with. Obviously,

Long Beach Business Journal 19 I’m going to have to set up meetings with the various department heads to get to know them and, obviously, I need to get to know my colleagues,” he said. Uranga noted he hasn’t made any final decisions regarding his staff but is reviewing resumes. He said he plans to have his staff in place two weeks before he takes office. Looking to the future, Uranga expressed optimism about his new job. “I’m looking forward to another era in my career as far as the elected position of a city councilman as opposed to a trustee. [I’m] looking forward to working with five new councilmembers and all nine of them,” Uranga said.

Rex Richardson Like his fellow councilpersons-elect, incoming 9th District representative Rex Richardson has been busy. “Normally a transition won’t [start] until you take office. Our process begins now. It’s going to go through four months where we create a district-wide policy agenda, [and] district-wide budget priorities,” Richardson said, adding that he’s tapped Shawna Stevens of the Long Beach Health Department to oversee the transition process. “She’s the chair of the Coalition for a Healthy North Long Beach, and she’s worked with us the last four years on the Kaiser Permanente Heal Zone Program. [She] helps to organize a lot of the residents, so she’s the perfect person to lead this effort that I want to take the community through,” Richardson said. The incoming councilmember explained he hopes to see multiple infrastructure

projects move forward as he assumes office, including the Houghton Park Community Center, which is in the planning and design phase, and a new library, for which the district is currently receiving construction bids. “If the bids come in within the budget we established, $12 million to $13 million, if it’s in that range then we’re going to be able to break ground within 30 days. That’s a newly certified project that’s going to bring a lot of pride to North Long Beach,” Richardson said. When asked about the biggest issues facing the city as a whole, Richardson explained that the budget tops the list.

“I think our biggest challenge is going to be our identity and figuring out how we operate, how we move forward and address our issues, keep our budget balanced and continue to provide quality public services for the residents who pay taxes and depend on our city to be run well,” Richardson said. While he has decided on a chief-of-staff, Richardson said he isn’t quite ready to publicly announce who that is. In the end, Richardson added, he feels humbled to be serving the 9th District. “To be on the council with such a dynamic group is really an honor, and I look forward to serving the residents and the City of Long Beach with dignity. I won’t let them down.” ■


1_LBBJ_June10_SectionA_LBBJ MASTER LAYOUT 6/8/14 6:23 PM Page 20

2014 ELECTION 20 Long Beach Business Journal

June 10-23, 2014

Mayor-elect Robert Garcia on Election Night with fraternity brothers during his days at California State University, Long Beach. (Photograph by the Business Journal’s Thomas McConville)

City Attorney Charles Parkin with his wife, Therese, and their son, Greg. (Photograph by the Business Journal’s Thomas McConville)

PoliticalWire (Continued From Page 1)

years as mayor, wanted to spend more money than it could afford. With five new councilmembers ready to take office July 15, and an economy that remains somewhat iffy, it is imperative that discipline continue. Dealing with the budget for the new fiscal year takes center stage on Mayorelect Robert Garcia’s first day in office. (Refer to separate story on Page 1.) Another immediate challenge for Garcia, is to see if he is successful in bringing all sides together. This is especially important within the corporate business community which, for the most part, aligned itself with Garcia’s mayoral opponent, Damon Dunn. But Dunn also attracted support from many of the city’s well-healed residents who, over decades, worked hard to position Long Beach as a city that has successfully evolved from the shadows of Los Angeles. Many in the business community remain skeptical about Garcia’s abilities as an advocate for business. They are also concerned about the new mayor’s pro-union voting record. It is therefore essential that Garcia reach out to the business commu-

First District Councilwoman-elect Lena Gonzalez, center, with, from left: her parents, Isabel and Vince Gonzalez; her son, Zorion; and her brother, Steven Gonzalez. (Photograph by the Business Journal’s Thomas McConville)

nity to assure it that he wants to work with business executives to improve the local economy and not saddle firms with ordinances that discourage business expansion. The selection of local attorney Doug Otto to head up Garcia’s transition team (refer to separate story on Page 1), is a step in the right direction. Otto is not only well known to those who opposed Garcia’s election, but has gained a reputation over the years as a good listener and a consensus builder. In fact, Otto would have been the choice for mayor of Dunn supporters if Dunn had not been in the race.

Election Results Following is a brief recap of what happened on Election Day, June 3. As of press time, there were more than 5,100 vote-bymail ballots remaining to be counted by the city clerk, but those ballots are not going to change the results. Mayor – Robert Garcia had 23,296 votes (52.12%) to Dunn’s 21,398 votes (47.88%). Garcia led by 325 votes after the initial absentee count and slowly built his lead when the final Election Day count came in at 1 a.m. Evidently, Dunn did not do as well as expected in the 3rd and 5th

Fifth District Councilwoman-elect Stacy Mungo, center, with Election Night supporters. (Photograph by the Business Journal’s Thomas McConville)

Council Districts (Southeast and Northeast Long Beach). While Garcia had a huge team of volunteers mobilized to ensure his supporters voted, it did not appear Dunn had an Election Day support group. Also, Garcia used social media effectively to get the vote out. City Attorney – The race the Business Journal referred to as the most important this election season turned out good as Charles Parkin easily beat back James Johnson, who does not have the experience to serve as city attorney. We’re glad the voters were attentive, plus Johnson’s immature antics turned off even his one time supporters. Parkin received 26,804 votes (61.78%); Johnson received 16,581 votes (38.22%). 1st City Council District – The favorite, Lena Gonzalez, won in a runaway. She led early, receiving 55.2% of the absentee votes, and continued extending her lead over Misi Tagaloa through the night. Final result: Gonzalez, 1,375 votes (60.36%) to Tagaloa’s 903 votes (39.64%). 5th City Council District – Stacy Mungo, also considered the favorite, won handily over Carl Kemp. Mungo received 5,457

votes (54.61%) on Election Day compared to Kemp’s 4,535 votes (45.39%). Some political observers expected this race to be closer since Kemp had the backing of the police and fire unions; the current and former district councilmembers, Gerrie Schipske and Jackie Kell, respectively; and the support of former mayor Beverly O’Neill. 70th Assembly District – Long Beach Councilmen Patrick O’Donnell won the primary with 17,460 votes (40.96%), and will face John Goya in November. Goya received 13,657 votes (32.04%). The third candidate, Councilwoman Suja Lowenthal, received 11,514 votes (27.01%). The district represents nearly all of Long Beach, all of Signal Hill and Avalon, and parts of San Pedro. Because of the district’s heavy Democratic registration, O’Donnell is considered a shoo-in. 64th Assembly District – Long Beach 9th District Councilman Steven Neal’s bid for a runoff spot fell well short. Mike Gipson finished first with 10,474 votes (51.53%), and will face Prophet L. Walker in November. Walker was a distant second with 4,306 votes (21.19%). Neal was third with 3,026 votes (14.89%) and Micah Ali was fourth with 2,519 votes (12.39%). The assembly district covers only the North Long Beach portion of the city. Most of the district lies in Carson and Compton. Since Neal gave up his council seat to run for assembly, he steps down as a councilman on July 15. 47th Congressional District – In a race that was closer than expected, incumbent Alan Lowenthal received 36,503 votes (56.3%) to Andy Whallon’s 28,281 votes (43.7%). Whallon received more votes than Lowenthal in the West Orange County portion of the congressional district. Signal Hill Measure U – An effort to require a two-thirds vote by citizens for tax increases was defeated with just 377 yes votes (34.30%) to 722 no votes (65.70 percent). ■


1_LBBJ_June10_SectionA_LBBJ MASTER LAYOUT 6/8/14 6:23 PM Page 21

2014 ELECTION June 10-23, 2014

Long Beach Business Journal 21

On June 5, on the campus of Long Beach City College, Long Beach Mayor-elect Robert Garcia named his 17-member transition team to work with outgoing Mayor Bob Foster and others to ensure the change in city leadership goes smoothly. He named local attorney Doug Otto to chair the team. Pictured, front row from left are (for titles/affiliations, see story): Becky Blair, April Economides, Andy Perez, Jessica Quintana, Otto, Garcia, Judy Ross, Dr. Sabrina Sanders and Mary Zendejas. Top row from left are: Raul Anorve, Jeannine Pearce, Peter Santillan, Darick Simpson, Blair Cohn, Brian Ulaszewski, John McGinnis, Charles Song and John Taeleifi. (Photograph by the Business Journal’s Thomas McConville)

Transition Team (Continued From Page 1)

ments, on recommendations to bring in the best and the brightest to the mayoral staff and the mayoral team. [Additionally] giving advice as well as thoughtful discussion about the budget and the way the budget reflects the priorities of the city.� In naming Otto to lead the transition, Garcia noted that the long-time resident and current trustee on the Long Beach Community College District Board has been involved in leadership positions on numerous city initiatives including, in the late 1990s, as former Mayor Beverly O’Neill’s point man for the 2010 Strategic Plan. “This is really an opportunity for various constituencies and stakeholders in this community to come together and ask questions about where we’re going and how we’re going to get there,� Otto said. “The work’s going to go pretty fast. We’re looking forward to this opportunity and looking forward to this challenge.�

On July 1, City Manager Pat West is required by charter to provide his proposed budget for the 2014-15 fiscal year to Mayor Foster. The mayor then has 30 days in which to review the budget, make recommendations and present the information to the nine-member city council. With Garcia taking office July 15, both mayors may end up providing input (refer to related story on Page 1). “We’re going to ask that he [West] also give his budget to Mayor-elect Garcia as well so we have a chance to think about the issues the city is looking at from a fiscal point of view,� Otto stressed. The mayor also has the responsibility of recommending individuals to serve on the city’s various commissions. Recommendations must be approved by the city council. Existing commissioners are expected to fill out their terms, but Garcia can ask for their resignation. The transition team may also recommend that Garcia change the commission structure, for example, adding or deleting commissions.

There is no end date for the transition team, which could serve as a sounding board for Garcia as issues arise. In addition to Otto, transition team members are: Raul Anorve is on the Citizen’s Police Complaint Commission and a boardmember of Center Long Beach. Becky Blair is president and principal of Coldwell Banker Commercial BLAIR WESTMAC. Blair Cohn is executive director of the Bixby Knolls Business Improvement Association. April Economides is founder and principal of the environmental services firm Green Octopus Consulting. John McGinnis is president of the Long Beach Board of Education. Jeannine Pearce is director of Long Beach Hospitality for the advocacy group LAANE. Andy Perez is Union Pacific Railroad’s director of port affairs for the ports of Long Beach, Los Angeles and Oakland.

Jessica Quintana is executive director and president of Centro Community Hispanic Association in Long Beach. Judy Ross is executive director of the Long Beach Nonprofit Partnership. Dr. Sabrina Sanders is assistant director, student academic support, academic affairs for California State University, Long Beach. Peter Santillan is business manager/secretary-treasurer for Laborers’ International Union of North America Local 507. Darick Simpson is executive director of the Long Beach Community Action Partnership. Charles Song is chairman of the Khmer American Civic Engagement Committee in Long Beach. John Taeleifi is former president of the West Long Beach Association, businessman. Brian Ulaszewski is executive director of City Fabrick, a nonprofit design studio. Mary Zendejas is executive director and founder of DisABLED Professionals Association of America. â–

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IN THE NEWS 22 Long Beach Business Journal

June 10-23, 2014

Architects Robert Murrin And John Caldwell Elevated To “Fellowship” Standing Architects and Long Beach residents Robert Murrin, left, and John Caldwell have been elevated to “Fellowship” by the American Institute of Architects (AIA). Both architects are members of the local AIA Long Beach/South Bay Chapter. Fewer than 4 percent of the 80,000 AIA members nationally are granted this honor. In fact, the only previous local members elevated to Fellowship were Hugh Gibbs in 1969 and Donald Gibbs in 1980. Murrin, FAIA, LEED AP, graduated from Millikan High School. After receiving his bachelors and masters degrees in architecture from USC, he joined the Los Angeles architectural firm, AC Martin, where, after 38 years, is currently principal. He is responsible for many award winning architectural designs at colleges and universities throughout California, including the Molecular, Life Sciences Building at CSULB, the Ronald Tutor Campus Center at USC, The Madden Library at CSU Fresno, UC Irvine Humanities and Fine Arts Complex, along with the design of Chapman University’s Kennedy Law School, Wallace All Faith’s Chapel, and Leatherby Library. Caldwell, FAIA, LEED AP, is a Long Beach native who graduated from Long Beach Wilson High School. His architectural education was completed at Cal Poly San Luis Obispo. After graduation, he worked for architects Donald and Hugh Gibbs, FAIA Architects, Black O'Dowd Architects and John Lautner, FAIA before opening his own firm in 1977. His firm designed projects that have received local, state and national recognition from the AIA. His local work includes projects for the Port of Long Beach, CSULB, Long Beach City College and Long Beach Unified School District. Murrin and Caldwell are being honored June 27 during the National AIA convention in Chicago. (Photography by the Business Journal’s Thomas McConville)

Construction Of New Grand Entrance Underway At University Art Museum A new grand entrance for the University Art Museum (UAM) at Long Beach State University is under construction. It is part of a campaign that raised about $850,000 for the entrance and renovations to the Steve and Nini Horn Center inside the building. The project by architect Frederick Fisher has been designed, according to a statement, as “a landscape artwork titled ‘Room’ which used Italian cypress trees to delineate an outdoor room for sculpture. The new plaza design reinforces that original idea to frame a multi-purpose space for casual gathering, events and sculptural installations.” The UAM offers programs for CSULB’s 35,000 students and hosts more than 40,000 visitors annually. According to a university spokesperson, the museum is ranked in the top 10 percent of the nation’s more than 16,000 museums and is ranked among the best in the state by the California Arts Council. Pictured are, from left: Michael Davis, president of the UAM Advisory Board; Joseph Coriaty, AIA, partner with Fisher and Partner Architects; Christopher Scoates, director of the UAM; and Chris Miles, interim dean, CSULB College of the Arts. (Photograph by the Business Journal’s Thomas McConville)

Bridges To Healing Counseling And Training Center Opens In Bixby Knolls The women who own and operate the newly opened Bridges to Healing Counseling and Training Center on Long Beach Boulevard in Bixby Knolls describe their operation as follows: “Bridges to Healing embraces the transformative qualities of non-judgmental, collaborative, feminist therapy to provide a superior quality of mental health services, offered by therapists who are a diverse, inclusive reflection of surrounding communities near and far. Specially trained in sexual assault, intimate partner violence, child and adolescent therapy, family therapy, and historically marginalized communities (people of color, LGBTIQQA, people with disabilities), these therapists cover a wide range of counseling, training and advocacy skills.” The mental health group private practice opened last month at 3711 Long Beach Blvd., Suite 1016A. For more information, visit: www.bridgestohealing.com, or call 562/528-0606. Pictured from left are: Ebony Jones, Tiombe Sewell, Mayana Lea, Mahima Mohan, Joanne Howe and Ana Jayme. (Photograph by the Business Journal’s Thomas McConville)


1_LBBJ_June10_SectionA_LBBJ MASTER LAYOUT 6/8/14 6:23 PM Page 23

IN THE NEWS June 10-23, 2014

Long Beach Business Journal 23

Chamber Once Again Receives Advocacy Award The California Chamber of Commerce recently honored 26 local chambers – including the Long Beach Area Chamber of Commerce – with its annual Excellence in Business Advocacy President’s Circle Award. It marks the sixth year the state chamber has recognized local chambers for publishing the voting records of their state legislators on key business issues, generating letters to state elected officials on issues of interest to members, and related items. The Long Beach Chamber has been honored every year since the recognition began in 2009. Pictured, from left, are: Allan Zaremberg, president and CEO of the California Chamber; Randy Gordon, president and CEO of the Long Beach Chamber; and Anne Buettner, chair of the California Chamber Board of Directors. (Photograph provided by the Long Beach Chamber)

• Peter Mackler, a Long Beach resident and the executive director of government relations and policy for MemorialCare Health System, recently received the American Association’s “Grassroots Hospital Champions Award.” According to a statement, Mackler was recognized for his “exceptional leadership in generating grassroots and community activity in support of the mission of hospitals.” The award was created “to recognize hospital leaders who most effectively educate elected officials on how major issues affect the vital role of hospitals in the community, perform an exemplary job in broadening the base of community support for hospitals, and is a tireless advocate for hospitals and their patients.” • Holthouse Carlin & Van Trigt, LLP (HCVT), a Los Angeles-based certified public accounting firm with seven offices in Southern California, including one in Long Beach, announced that Rebecca Gibb was recently admitted into the partnership. She focuses on HCVT’s audit practice but also has experience in a wide range of financial reporting services. Gibb earned her bachelors from California State University, Northridge. Prior to joining HCVT in 2000, she served as an accountant and financial analyst at Paramount Pictures. • Norman Hauser has been named interim president of Metro Ports, replacing the firm’s former president, James Dillman. Hauser reports to Michael Giove, chief operating officer of Nautilus International Holding Corp. Hauser began his maritime career in 1982 in San Francisco. He later joined the Pacific Maritime Association and in 1997 came to Metropolitan Stevedore Co. in Southern California, where he served in management and executive positions until his retirement in August 2010 as COO of Nautilus. • David Rogers, FAIA, has joined Long Beach-based P+R Architects as design

principal. He is focusing on retail, commercial and mixed-use typologies. Rogers has a 40-year career in architecture, concentrating, according to a statement, “in the revitalization of city centers globally, sustaining their historical and cultural elements and thereby enriching the lives of millions of people.” Rogers has won numerous design awards, including a Viva award for the repositioning of Santa Monica Place. • J. Kim McNutt has been named dean of the College of Extended and International Education at California State University, Dominguez Hills, effective July 1. McNutt most recently served at Our Lady of the Lake University in Texas, where he was assistant vice president of continuing learning for the university’s weekend college units in San Antonio and Houston. He also served as dean of extended education at California Maritime Academy, director of online programs at Arizona State University, director of distance education at Southern Methodist University, and instructional TV manager at New Mexico State University. • Kristi Elias of Kristi Sutton Elias Photography in Long Beach received the 2014 California Photographer of the Year Award by the Professional Photographers of California association during the group’s recent convention in Pasadena. Elias also won “2014 California Child Photographer of the Year,” the “2014 California Portrait Photographer of the Year,” “2014 California Illustration Photographer of the Year.”

Assistance League Installs Linda Drummond As Its New President Last month the Assistance League of Long Beach, one of the city’s largest nonprofit groups with 900 members and 10 philanthropic programs, installed Linda Drummond as its 74th president. Born and raised in Long Beach, Drummond served as a teacher in the Long Beach Unified School District, including 20 years as a history teacher at Wilson High School. She is married to Doug Drummond, a former councilmember, retired police commander and currently president of the Long Beach Board of Harbor Commissioners. She has a long history of service through the Assistance League and has served in numerous leadership capacities. The theme for her presidency is, “Together we plant the gardens of tomorrow.” Among its many programs, the Assistance League annually provides new school uniforms to 10,000 school district students, serves approximately 850 patients in braces monthly at its chiropractic center, and volunteers at Miller Children’s Hospital by bringing arts, crafts and conversation to the children. For more information, visit: www.ALLB.org.

• Mark Ruwedel, a School of Art professor at California State University, Long Beach, was named the recipient of two national creative recognitions from two different countries. Ruwedel is known for his black and white images of North American landscapes. He was the winner of Canada’s 2014 Scotiabank Photography Award. The prize, according to a press release, carries with it a $50,000 cash award along with a solo exhibition at the Ryerson Image Centre in Toronto next spring and a full catalogue of Ruwedel’s works, to be published by the renowned German publisher Steidl. Prior to that award, Ruwedel was named a 2014 Guggenheim Fellow in Photography. The John Simon Guggenheim Memorial Foundation awarded 177 fellowships, chosen from a group of almost 3,000. According to Jay Kvapil, CSULB director of the School of Art, the awards “properly

places Mark in the ranks of today’s top artists worldwide. ■

Acting Airport Director Long Beach City Manager Pat West recently named Deputy City Manager Reggie Harrison (pictured) as the acting director of the Long Beach Airport. Harrison replaces Mario Rodriguez, who accepted the top job at the Indianapolis Airport Authority. “Reggie has a proven history of stepping in to provide management and leadership skills whenever necessary,” West said in a statement. “The airport will be in good hands and continue to provide excellent service as we conduct our nationwide search.” Harrison continues to serve as the city’s director of emergency communications and disaster preparedness.

Journal Long Beach Business Jour nal

Coming Attractions

Convention & Tourism Industry

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Oops! Paulette Thornton (pictured), the new director of marketing and community outreach for Goodwill, Serving the People of Southern Los Angeles County, was incorrectly identified in the May 27June 9 edition of the Business Journal. Among her responsibilities are building partnerships with businesses, community groups, school and government and nonprofit agencies to solicit donation drives and grant funding.

Women In Business 14 AD RESER RESERVATION VATION DEADLINE: JUNE 18, 20 2014 ART TWORK DEADLINE: JUNE 19 14 ARTWORK 19,, 20 2014

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Profile for Long Beach Business Journal

June 10-23, 2014 Section A  

The Business Journal presents its Annual Focus on Signal Hill and a focus on law.

June 10-23, 2014 Section A  

The Business Journal presents its Annual Focus on Signal Hill and a focus on law.

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