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Health Wise

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

Develop ing Early He althy Eating H abits A Defense Against Pediatric O besity See Sec

rday The Satu gram ro P A MB 4 g See Pa e

tion B, P age


March 4-17, 2014

No Intention To File Suit Against L.B. Transit, BYD VP Says


Mayoral Candidates Respond To Questions The Business Journal presents the last in a four-part series asking the top mayoral candidates to respond to questions.

■ By SAMANTHA MEHLINGER Staff Writer hinese-based bus manuC facturer Build Your Dreams (BYD) does not intend to

Question Damon Dunn

Robert Garcia

Bonnie Lowenthal

There have been many complaints that the Mayor and City Council do not do enough to support the arts in Long Beach. What do you think, and how would you support the arts?


Doug Otto

Why should voters support you to be the next Mayor of Long Beach?

Gerrie Schipske

Turn To Pages 16-17 To Read Their Responses

Peter Nily, general manager of Flight Safety International in Long Beach, sits in the cockpit of a Gulfstream GIV flight simulator, which is used to train corporate pilots. See stories about Flight Safety, Boeing employment, flight schools and possible customs service at Long Beach Airport on Pages 10-15. (Photograph by the Business Journal’s Thomas McConville)

State, Local Support For The Creative Sector Could Give Business A Boost ■ By TIFFANY L. RIDER Editor upport for the creative sector, a multi-billion-dollar segment of California’s economy, is growing at both local and state levels. This comes at a time when competition from other states for jobs in this sector is ramping up. Termed the creative economy, this sector is broader than “traditional” arts. It includes commercial application of design, art, education and entertainment, as well as nonprofit work and independent creative professions. For Southern California, the most apparent example is the sound recording and motion picture industry, according to Robert Kleinhenz, chief economist for the Los Angeles Economic Development Corporation (LAEDC).


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

Business Journal Weighs In On Possible New Civic Center See Section B, Page 11 “These creative industries have long been a part of the state’s economy, are a significant source of jobs and incomes, and have a ripple effect in other parts of the state economy,” Kleinhenz told the Business Journal in an e-mail. Since 2007, the LAEDC has produced an economic report on the creative sector in Los Angeles and Orange counties in partnership with Otis College of the Arts. The 2013 Otis Report,

released last month, included an analysis of the creative economy’s impact statewide. This is the first time the report has spanned the entire state, thanks to a grant from the California Arts Council. “In this era of information technology where ideas play such an key role, creative industries, occupations and activities typically bring those ideas to life and are essential to developing those ideas into commercial applications,” Kleinhenz said, noting that support for education and (Please Continue To Page 6)

sue Long Beach Transit (LBT), contrary to reports claiming otherwise, Micheal Austin, vice president of BYD America told the Business Journal. (Please Continue To Page 8)


Charles Parkin For City Attorney James Johnson Does Not Have The Experience To Serve In This Critical Post ■ By GEORGE ECONOMIDES Publisher any in the community M acknowledge that the most important decision faced by local voters in this election cycle is who shall serve as the city attorney for Long Beach. Providing the correct legal advice to elected officials and staff is absolutely essential for a smooth city operation. The wrong advice could prove costly. (Please Continue To Page 18)


1994-2007: Turmoil, Then Transition


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

PAID Long Beach, CA PERMIT NO. 254

■ By GORDON MORRIS, Staff Writer, Grand Prix Association of Long Beach Read About Digital Eye Strain In Health Care Quarterly Section B

hile Al Unser Jr. was W winning the 1994 Toyota Grand Prix of Long

Beach – enroute to his second Championship Auto Racing Teams (CART) championship – events in far-off Indianapolis were destined to have far-reaching effects. There, Tony George, president of the Indianapolis Motor Speedway, resigned from the CART Board of Directors and announced the formation of a new (Please Continue To Page 27)

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INSIDE THIS ISSUE 2 Long Beach Business Journal

March 4-17, 2014

3 Newswatch • Audit Of Port Travel • Long Beach City Hall News In Brief • Oxy’s California Spinoff To Retain Long Beach Workforce

10 Aviation/Aerospace Focus • Local Flight Schools Report Post-Recession Shift • New Airport App Provides Plenty Of Information • U.S. Customs May Be In Long Beach Airport’s Future • Boeing’s California Presence More Than Halved Since 2001 • Flight Safety Trains Pilots, Technicians And Attendants

16 PoliticalWire • Long Beach Mayoral Candidates Answer Questions • The Race For Long Beach City Attorney • PoliticalWire News/Events And Upcoming Forums

26 Encore – People In The News 27 Grand Prix Highlights • Part V In A Six-Part Series Leading Up To April’s Race

Section B Health Care Quarterly • ‘DigitEYEzed’: Frequent Computer Use Causes Eyestrain • Physician Groups Educating Doctors For Influx Of Patients • AB 241 Creates Concerns Among Home Care Employers • How Eating Right (Or Wrong) Impacts Daily Life, Health • Health Care Reform Law Not Likely To Reduce Jobs • State’s Online Enrollment Portal For Businesses Suspended

10 Perspective Realty Views Affordable Housing Being Squeezed By Terry Ross Effective Leadership Desire Is The Fire Within (Measuring Your Desire Meter) By Mick Ukleja HealthWise Developing Early Healthy Eating Habits Is Best Defense Against Pediatric Obesity By Dr. Emily Burritt A Better Way To Fly LGB And Destination Long Beach By Mario Rodriguez Editor’s Perspective Long Beach Needs A New Civic Center By Tiffany L. Rider





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NEWSWATCH March 4-17, 2014

Port Travel Audit To Be Addressed By Special Committee ■ By SAMANTHA MEHLINGER Staff Writer Port of Long Beach (POLB) Harbor Commission President Doug Drummond plans to form a committee to develop a proposal addressing concerns raised by City Auditor Laura Doud’s audit of harbor commission travel expenses, Drummond told the Business Journal. “We want to look at every aspect of the audit so the policy is complete,” Drummond said of the intention behind such a proposal. “We will have it come to the board for a decision,” he said. “I’m sure it will be within the next six weeks or two months.” Doud’s audit of commission travel expenses incurred from October 2011 to June 2013 cited several issues she would like to see addressed, including the harbor subsidizing the cost of spouses accompanying harbor representatives on trips, cursory reviews of travel reimbursement requirements and invoices, reimbursement of costs for non-business trips, and high travel and hotel costs remaining unquestioned or unjustified. “For an entity the size of [the] harbor [department] that engages in a great deal of travel, we would expect to see an organized and streamlined approach to overseeing and documenting travel arrangements and reimbursements,” the audit said. “However, our audit found that [the] harbor [department] relies on a decentralized process that does not promote coordinated planning or effective review. Efforts to contain costs were not documented nor does it seem to be a priority,” the audit continued. “These factors contributed to ineligible expenses being reimbursed, inconsistent

Space Tech Conference 2014 Coming To Long Beach April 1-3 Billed as the West Coast’s premier space event, Space Tech Conference 2014 takes place April 1-3 at the Long Beach Convention Center. The event brings together military personnel, government officials and private industry executives to discuss the key issues facing the space industry. To see the programs and speakers scheduled for each day, visit the group’s website: The exhibition features 150 companies and organizations showcasing their latest products, technologies and innovations. The event is free to attend, but to do so you must register in advance at the website listed above. ■

Long Beach Business Journal 3 costs between travelers, and limited documentation detailing the business conducted,” the audit’s findings revealed. In one case, former Harbor Commissioner Nick Sramek and former POLB Executive Director Richard Steinke were reimbursed for costs unrelated to business, including museum admissions, a tour guide and meals. Doud also took issue with inconsistency in the costs of hotel rooms and travel for port staff and harbor commission members during the same trips. The auditor’s suggestions for addressing these problems included centralizing travel coordination and file keeping, requiring all travel arrangements to be handled by a single administrative unit

and developing training for harbor staff related to travel guidelines and cost containment. POLB Acting Executive Director Al Moro’s response to the audit was included in the document, and it attempted to address why some of the issues Doud outlined had occurred. For example, in response to the auditor’s examination of some port representatives who had incurred more costs for arriving to trips earlier or later than others, he wrote: “It is very important that our trade mission delegates are well-rested for the grueling day-long meetings that sometimes go into the evening.” Concerns over whether port travel expenses were excessive were f irst

addressed by the Long Beach City Council during fiscal year 2014 budget meetings in late summer last year. Third District Councilmember Gary DeLong led a motion at a meeting in September to cap travel costs at $40,000 per year per harbor commissioner. That motion passed. DeLong told the Business Journal that he found nothing particularly surprising about the audit. “I think the city auditor did a very thorough job,” he said. “The report addressed all of my concerns.” He added, “There’s no further action required by the city council. I’m confident that Al Moro and Doug Drummond will partner with the city auditor’s office to resolve these issues.” ■

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NEWSWATCH 4 Long Beach Business Journal

Long Beach City Hall News In Brief Sustainability And The Business Organization – Saturday MBA Program MBA programs around the world are revising curricula so their graduates can remain relevant and adjust to the changes in the global economy. At California State University, Long Beach, the Saturday MBA (SMBA) program inaugurated an innovative set of courses, which integrate sustainability as the organizing theme. The structure of the new program evolved when Dean Michael Solt initiBy Dr. Ingrid Martin, ated program redesign Faculty, Department of efforts by challenging Marketing faculty to develop ideas for new courses and new teaching formats. The advanced portion of our SMBA program is designed in an integrative manner to better address business opportunities in a sustainability context. Courses and faculty emphasize the triple bottom line (economy, environment, and society), critical for all organizations doing business in today’s regulatory climate and easy access to information by the public. We integrate the sustainability context as an analytic device in three ways. First, we integrate the teaching format by having faculty representing multiple disciplines in the classroom based on the topic being investigated. For example, measuring and mitigating an organization’s carbon footprint needs to be understood from the perspective of accounting, regulatory economics, marketing, human resources, and strategy. The teaching configuration in the classroom is based on the specific business challenge in a particular class session. We may have two, three or four faculty in the classroom concurrently depending on the particular issue. Second, student teams complete a project for a business, university, or community organization. Each team addresses a client project focused on a business opportunity with a sustainability focus. The SMBA students work hand-in-hand with clients such as the Aquarium of the Pacific, Villages at Cabrillo, Catalina Sea Ranch, and CSULB. Finally, industry speakers and site visits provide students with more hands-on experience in how organizations integrate sustainability throughout their organization. We host speakers from the Port of Long Beach, Mattel, Disney, Sony Pictures, Union Bank, entrepreneurs such as Tom Bowman, Phil Cruver and Miles Baker, and video conferencing with EnergyPoints in Boston. The ultimate goal is for our students to graduate understanding how sustainability should be integrated throughout an organization to succeed in today’s competitive global economy. (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.) ■

■ By SAMANTHA MEHLINGER Staff Writer Water Restrictions – On February 28, the Long Beach Board of Water Commissioners declared an imminent water supply shortage for the City of Long Beach. They also declared various prohibited water uses including the following: irrigating landscaping with potable water any day other than Monday, Thursday or Saturday; serving drinking water at any establishment where food is sold unless requested by the customer; and irrigating landscaping with potable water for more than 10 minutes per authorized day if the sprinklers emit one gallon or more per minute or for more than 20 minutes if the sprinklers emit less than one gallon per minute. For a complete list of water use prohibitions, go to: Manufacturing Designation For City – The Long Beach City Council approved a request to have the city manager work with the Los Angeles County Economic Development Corporation to submit comments for Long Beach to be part of a federally designated manufacturing community. If selected for the program, the Los Angeles region would be one of 12 other communities provided federal funding from a $1.3 tril-

March 4-17, 2014 lion pool as well as given assistance from federal agencies. E-Cigarette Ordinance – After an ordinance restricting the use of electronic cigarettes was laid over at the February 18 meeting, it is being voted on tonight, March 4. The ordinance would prohibit using e-cigarettes in public places and require businesses that sell the devices to pay an operational permit and limit advertising in the same way that tobacco product advertising is restricted. Online City Expenditures – The city council voted on February 18 to request that the city manager provide information to the council on the cost and feasibility of using a website called OpenGov for posting the city’s expenditures online for public access. The platform allows access to revenue and expenditure data by city fund, department or type of account. Fifth District Councilmember Gerrie Schipske proposed the item. Pedestrian Beach Path – At the last city council meeting, councilmembers made a substitute motion rather than authorizing the city manager to proceed with the design and bidding phase for a proposed pedestrian path project that would involve building a pedestrian path beside the bike path along 3.1 miles of the beach. The council requested that city staff ask the California Coastal Commission (CCC) if full CCC approval is needed for design changes that would retain parking spaces – the current proposal eliminates 20 parking spaces adjacent to the Belmont Veterans Memorial Pier. If approval is needed, the council asked that city staff return to the

CCC quickly to approve any design changes. The council also asked that city staff prepare a recommendation for the council about how beach art may be incorporated in the project. Schipske voted against the item. Exploring Free Preschool – Tonight, the city council votes on whether to direct the city manager to return to the city council in 120 days with suggestions for how to fund free preschool for city residents. After examining how similarly sized cities have accomplished this, the manager would also report on concrete policy goals and eligibility requirements for such a program as well as how to work with the local school district. The item authored by Vice Mayor and 1st District Councilmember Robert Garcia and 2nd District Councilmember Suja Lowenthal reports that free preschool programs have been implemented in San Diego and San Francisco, as well as in other cities across the country. Downtown Rooftop Patio Entertainment – The council votes tonight on an amendment to the Downtown Dining and Entertainment District ordinance which would allow rooftop patio entertainment within the district on Sundays until 10 p.m., Mondays through Wednesdays until midnight, and Thursdays through Saturdays until 1 a.m. A memorandum from Lowenthal, who is proposing the amendment, indicates that the change is intended to allow Bo Beau, a new restaurant on Pine Avenue, to have entertainment on its rooftop patio, which was built

Council To Vote On E-Cigarette, Vaping Regulations Tonight The Long Beach City Council votes tonight (March 4) to finalize an ordinance that would regulate e-cigarettes and vaping devices as tobacco products. One element of this ordinance prohibits e-cigarette and vaping businesses from allowing customers to sample products in store, as seen above with Alexander Rufener, left, store manager for Vapin USA in Downtown Long Beach. “In one fell swoop, the current vaping culture in Long Beach would be seriously jeopardized by the passage of this ordinance,” Alan Schroeder, owner of Vapin USA, told the Business Journal in an e-mail. “Criminalizing e-cigarettes and vaping in light of empirical scientific evidence that it is a far safer alternative to tobacco, is exactly what is not needed in Long Beach. It is a shame, because many other states are taking the necessary time to consider a more enlightened approach and creating ordinances in a positive and objectively manner by looking for intelligent solutions.” (Photograph by the Business Journal’s Thomas McConville)

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NEWSWATCH March 4-17, 2014

for that purpose. The memo indicates that she told the backers of Bo Beau that she would return to the council with this amendment after receiving feedback from neighbors who might be impacted by noise. Gas Rate Increase – The council voted on February 18 to allow a gas utility rate increase of about 86 cents per month in order to fund costs associated with federal regulations compliance. These regulations pertain to replacing aging gas delivery infrastructure and ensuring the safety of that infrastructure. $7.8 Million Contract For Belmont Plaza Pool – The council votes tonight on a contract with Harley Ellis Devereaux Corporation for architectural and engineer-

Long Beach Business Journal 5

ing services for the Belmont Plaza Pool totaling about $7.8 million. $3.58 Million For City’s Homeland Security – The City of Long Beach is receiving about $3.58 million from the U.S. Department of Homeland Security’s 2013 Urban Security Initiatives Grant, to be used for homeland security purposes. The council votes tonight to execute a contract with the City of Los Angeles, which administers the funds, to receive the money. Funds are to be used for ongoing public safety and training exercises, equipment for facility security, mass care sheltering supplies for citizens and their animals, an emergency dispensing truck and emergency operations center enhancements.

Eighth District Event – Eighth District Councilmember Al Austin hosts “Celebrate the Eighth” this Thursday, March 6, from 6-8 p.m. at the Expo Arts Center, 4321 Atlantic Ave. The event highlights 8th District projects and accomplishments that took place in the past year. Austin is recognizing local residents who have made significant contributions to the community. “I am excited about this great opportunity to recognize some of the stars of the 8th District and to share some of the important work going on in our district,” Austin said in a statement. Second District Event March 29 – From Councilmember Suja Lowenthal: “The Department of Parks, Recreation and

Marine invite you to re-imagine Bixby Park, its community center and playground. Over the course of three workshops, attendees will work with architects and Parks staff to update the existing park master plan, redesign the playground and prioritize one-time funding set aside by the 2nd Council District and city manager for high priority park and playground projects. 9-11 a.m., 130 Cherry Ave. Register To Vote – The last day to register to vote in the Long Beach April 8 primary election is Monday, March 24. The vote by mail request period begins Monday, March 10. For more information, visit the Long Beach City Clerk’s website at: ■

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NEWSWATCH 6 Long Beach Business Journal

March 4-17, 2014

Supporting The Creative Sector seven jobs in the southland and one in 10 in the state are part of the creative sector. That translates to about 1.4 million jobs in California, 44 percent of which work in the L.A. region. Looking at these numbers as a reflection of how the creative sector supports the overall economy, individuals with influence are now collaborating to strengthen support of that sector at a time


(Continued From Page 1)

research is needed. “More fundamentally than that, we need to recognize that arts education is an important part of an individual’s overall background and education, and in particular, it often complements the so-called STEM (science, technology, engineering, and mathematics) disciplines.” The Otis Report concluded that one in

when other states and places outside the country like Vancouver and British Colombia are luring businesses and jobs away from California. Sen. Ted Lieu, who represents the South Bay and parts of Long Beach, recently announced plans to introduce legislation to increase funding for the California Arts Council, which provides grant funding and programming to creative organizations up and down the state, to $25 million annually. The council’s





ArtExchange at 3rd Street and Elm Avenue

FIFTH FIF TH Museum of Latin American Art at 6th Street and Alamitos Avenue








East Village Arts Park on Elm Avenue and East Broadway



2 1













Tom Barter’s mosaic tile installation “Toy Car Pileup” at 1st Street and Elm

Sculpture on Aqua Tower at Ocean Boulevard and Elm Avenue

Photographs by the Business Journal’s Thomas McConville

According to a new report from the Otis College of Art and Design, 1 in 10 jobs in California and 1 in 7 in the Southland are related to arts and entertainment. City Fabrick Executive Director Brian Ulaszewski supports an effort to create an official state designation of arts districts in California, including the East Village Arts District in Downtown Long Beach. The thick blue line represents a walking trail of 2.6 milles that allows you to experience the District’s cultural focus with public art installations, galleries, studios and art museum.

budget for this year is about $5 million, he said. Lieu, chair of the joint committee on the arts, acknowledged that the state ranks 48th in the country for per capita spending on state art programs. “We want to restore council funding to about what they had when Governor Brown was first elected,” Lieu told the Business Journal. Taking what Lieu called a “multi-pronged approach,” the senator is also the principal co-author of legislation that would create a film and television tax credit. “People understand we are an innovative, creative place,” Lieu said. “This is how we are branded. We want to continue incentivizing the creative sector.” Brian Ulaszewski, executive director of nonprofit creative agency City Fabrick in Long Beach, was invited to speak at a hearing held by Lieu last month about support for the creative economy. “It’s a smart thing to do,” Ulaszewski told the Business Journal. “With just a little bit of investment, I think we will be more competitive against places like Michigan and Vancouver,” both of which have been offering incentives to creative sector companies to do business outside of California. Ulaszewski’s organization is involved in case and policy research on how to build “critical mass around the arts.” One way to do that is create a state designation for place-based arts districts, as many other states have done, Ulaszewski said. Jurisdictions would apply for a specific area to be designated as an arts district, such as the East Village Arts District in Downtown Long Beach, which would then qualify for various resources. “Some offer tax incentives and code incentives, while others offer marketing benefits, Ulaszewski said. The East Village Arts District is one of 12 identified in the state so far in Ulaszewski’s research. “We are investigating and seeing what the opportunities are, but also what the challenges are, and looking at metrics that have been developed,” he said. “Some states have been doing analysis of their programs. Some haven’t. We’re definitely scratching the surface as far as these sorts of programs. I could see us getting involved as it continues to formulate.” Kleinhenz agreed that jurisdictions should benefit from establishing a district for the arts since such districts also benefit dining establishments, retailers and other commercial activity. “Our research has documented the contribution the creative industries make to the state economy, but much more research can be done in this area,” Kleinhenz said. “It’s a fairly new area of research, and a lot of work lies ahead as we try to connect the dots that go from arts to other parts of the economy and ultimately contribute to the state’s longterm economic fortunes.” ■

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NEWSWATCH 8 Long Beach Business Journal

No Suit Against Transit (Continued From Page 1)

Window Glass Yamaha Personal Watercraft Law Enforcement Searchlight System Patrol Vessel for Police Department RFQ for Solar Power Purchase Gas Main and Service Lines

ITB PW-14-064 ITB FS-14-058 ITB PD-14-060 ITB FS-14-061 RFQ PW-14-036 ITB GO-14-059

3/04/14 3/04/14 3/06/14 3/06/14 3/07/14 3/13/14

UPCOMING BID OPPORTUNITIES Historical Preservation Services Custodial Services Psychological Evaluation Services Disposal Services Physician Support Services Chemical Toilets Underwriting Services Polygraph Services

Bidder Registration Register with the City of Long Beach at 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.

Last week, reports surfaced in the media that a lawyer for the bus company issued a letter to Long Beach Transit claiming BYD was considering suing the transit agency. “Lawyers sending letters taking legal positions do not represent an intention to file a suit,” Austin told the Business Journal via e-mail. BYD is manufacturing 10 zero emission buses for LBT, a process which has hit several road bumps, including testing delays and manufacturing issues, since it was approved by the LBT board in May. The latest hurdle is that the Federal Transit Administration (FTA) “informed Long Beach Transit that BYD is out of compliance with certain Disadvantaged Business Enterprise requirements,” according to Kevin Lee, spokesperson for LBT. The transit agency is giving BYD a chance to correct this issue, Lee said. While a new issue has arisen, another has been resolved now that Altoona testing on a BYD-built bus representing the make and model of those being delivered to LBT may resume. A letter obtained by the Business Journal from the FTA to BYD’s attorneys dated February 19 said that the FTA determined testing may resume on the original testing bus. “Bus A represents a single model, meets all applicable Federal Motor Vehicle Safety Standards, and is substantially fabricated and assembled using techniques, tooling

March 4-17, 2014 and materials that will be used in production of subsequent buses of that model,” the letter read. Kenneth McDonald, president and CEO of LBT, was copied on the letter. Last November 6, the FTA halted Altoona testing to determine if the bus going through testing was of the same make and model of the buses that would eventually be delivered to LBT. Altoona testing is required by the FTA for all bus models traveling on U.S. roadways. At the February 24 LBT board of directors meeting, Rolando Cruz, executive director and vice president of maintenance and facilities at LBT, told the board that Altoona testing should be complete within 12 to 15 weeks. Austin told the Business Journal, “We are confident that this testing will be successfully completed.” Over the next two weeks, LBT staff is going to meet with BYD to discuss other aspects of the bus project, including integrating the Wireless Advanced Vehicle Electrification (WAVE) charging system for the bus batteries. An LBT staff report from January said that the FTA was considering requiring the WAVE system to be included on the bus going through testing. Cruz indicated at the board meeting that this is likely no longer an issue, but that he is awaiting confirmation. Lee told the Business Journal that LBT does not believe the WAVE system needs to be included on the bus in Altoona testing. ■

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NEWSWATCH March 4-17, 2014

Oxy’s California Spinoff To Retain Long Beach Workforce, Operations ■ By SAMANTHA MEHLINGER Staff Writer Long Beach employees of Occidental Petroleum may rest easy following the announcement that the corporation is dividing its California assets to create an independent, separately traded company by the end of the year or by early 2015. Susie Geiger, director of external relations for the company, told the Business Journal that these employees’ jobs are likely to remain secure. “Current Long Beach area employees can safely assume that they will become a part of the new California company,” she said via e-mail. Occidental, commonly called “Oxy,” currently has more than 8,000 employees and contractors in California and “a significant presence in the Long Beach area,” Geiger said. The company’s subsidiary, Oxy Long Beach, Inc., operates wells on behalf of both the City of Long Beach and the state in the Tidelands trust area, which includes parts of the Wilmington Oil Field and the THUMS oil islands.

Long Beach Business Journal 9 “We are still early in the planning process for the new California company, but at this time the impacts on our existing Long Beach operations are expected to be minimal,” Geiger explained. “Oxy has been a part of the Long Beach community for well over 10 years and we don’t anticipate changes to our community initiatives.” The California company’s location is still up in the air, according to Geiger, who could not confirm if a list of locations under consideration currently exists. Occidental Petroleum Corporation’s current headquarters are in Los Angeles, although they will be relocated to Houston following the corporate division. The management team for the California company should be announced in the third quarter of this year, according to a statement from Oxy. Geiger said that the new company’s name has not yet been selected. The California company’s assets will include 2.3 million net acres of land with major operations in Los Angeles, San Joaquin, Ventura and Sacramento. Last year, Oxy’s California assets garnered $1.5 billion before taxes, according to a statement from the company. Oxy’s board of directors authorized the split in February. President and CEO Stephen I. Chazen said in a statement, “Creating two separate energy companies will result in more focused businesses that will be competitive industry leaders.” Chazen is remaining in his position through 2016. ■

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

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

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

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March 4-17, 2014

Local Flight Schools Report Post-Recession Shift In Clientele ■ By SAMANTHA MEHLINGER Staff Writer The Great Recession seems to have caused a shift in the clientele of local flight schools, with more older, financially stable individuals seeking to fly for leisure rather than younger students looking to become career pilots, according to representatives of Long Beach flight schools. Miguel Puente, co-owner of Pacific Air Flight School, said that since starting Pacific Air about five years ago, “What I have noticed is there are more people doing

Angel City Flyers, Inc. Director of Operations Erick Bryant helps a student get familiarized with the controls of a Diamond Aircraft DA42NG, which is a twin-engine plane, and talks to the student about pre-flight checks. The firm is located at the Long Beach Airport’s Daugherty Sky Harbor complex at 2901 E. Spring St., Hangar F. Angel City Flyers office hours are 9 a.m. to 5 p.m., Monday-Friday; and 9 a.m. to 4 p.m. on weekends. To reach the company, call 562/366-4806, or visit its website at: (Photograph by the Business Journal’s Thomas McConville)

Free Long Beach Airport App Provides Plenty Of Information Kerry Gerot, public affairs officer for the Long Beach Airport, demonstrates the new Long Beach Airport (LGB) mobile application, which is available for free on iTunes and Google Play. The application provides information about flights, airport parking and concessions, ground transportation options and the airport terminal’s layout. Users may check-in to social media sites including Facebook and Twitter on the application to let people know that they are traveling. “Travelers can now book a flight or rent a car straight from the LGB Airport app,” Mayor Bob Foster said in a statement. He added, “It is also a direct link to listings of special events, conferences, dining and entertainment options via the Long Beach Are Convention & Visitors Bureau.” The City of Long Beach has been named a Top-10 Digital City for three years in a row for its mobile applications for various services, including the library, police department and animal care services. (Photograph by the Business Journal’s Thomas McConville)

it for fun.” Erick Bryant, director of operations for Angel City Flyers, Inc., made a similar observation. “They are flying for business or for pleasure,” he said. Angel City Flyers, Inc. has been in business for about nine years. It is a structured organization that is certified to fly Diamond Aircraft products. Since Pacific Air got its own fleet of aircraft at the start of 2014, Puente said he has noticed an uptick in business from clients looking to take just one demo flight. “They don’t even want to get their license, they just want to do a demo flight,” he said. That’s okay with him, Puente noted – so far this year the business is turning a profit. Both Puente and Bryant categorize flight school students into two groups: those looking to become career pilots and those looking to have a private license for personal use. The shift towards more business coming from leisure clients coincided with airlines not doing as well, Bryant observed. “When the economy tanked about five years ago, flight training and everything fell out of the bottom of aviation,” he said. Partially as a result of that, “For the past six or seven years nobody has been coming to us for professional courses, like the kids who want to join the airlines or the people who want to become corporate pilots,” he explained. The flight school market also took a hit after 9/11. “The market was destroyed,” Bryant recalled. “There were maybe four times as many flight schools pre-9/11 versus post-9/11.” Now, however, Puente reports that competition is steep, with about eight or nine flight schools at the Long Beach Airport. Statistics from the Federal Aviation Administration (FAA) show that enrollment in flight training has improved since the recession. In 2008, there were 75,382 flight students nationwide. In 2012, there were 109,091 – a healthy 45 percent increase. Lately it seems that the people looking to get their private pilot license for general aviation tend to be older and retired or financially stable, both aviation professionals told the Business Journal. “One of my clients was 65 when he got his private pilot [license],” Bryant said. A 2012 FAA report on pilot certificates by category and age group illustrates this trend. The 55 to 59 year old demographic held the most private pilot certificates with 28,074 total, while no age groups below the 40 to 44 year old demographic held even half that number of the same certificate. Even though the majority of his business seems to be based on leisure at the moment, Puente noted an increase in international interest from Europe and Asia. “They’re usually licensed and come in just because they need hours to qualify them for their airline over there,” Puente said. Because Pacific Air does not offer student visas like other local flying schools, Puente said the company is usually not able to accommodate those students. Most students enrolling in Long Beach flight schools are local, Bryant and Puente reported. ■

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Long Beach Business Journal 13

U.S. Customs May Be In Long Beach Airport’s Future ■ By SAMANTHA MEHLINGER Staff Writer After the possibility of adding U.S. Customs and Border Protection to the Long Beach Airport was shelved a few years ago, the subject may be revived after JetBlue recently expressed interest in footing some of the costs, according to Roland Scott, chair of the Long Beach Airport Advisory Commission. JetBlue General Manager Thomas Berg told the Business Journal in January that the company was interested in investing in U.S. Customs at the airport, although at this time he said he could not provide more information. Bringing U.S. Customs services to the Long Beach Airport was last looked at about three or four years ago, when the airport approached the Department of Homeland Security to discuss the cost of adding agents to the facility, Scott said. “The cost was prohibitive,” he said of why the concept was dropped. The idea at the time was to have U.S. Customs agents working at the airport on an on-call basis, perhaps borrowed as needed from the Port of Long Beach. “We had looked at it. I contacted somebody at customs and they were less than enthusiastic about sharing some of the port customs people to be on call,” Scott recalled. Now, the idea is to have agents

at the airport on a permanent basis, he said. A couple of months ago, JetBlue contacted airport administration about the possibility of footing part of the bill for adding customs services to the airport, and the administration in turn discussed it with the advisory commission, Scott explained. “JetBlue has demonstrated some interest in flying out of Long Beach to Mexico,” he said. “I think they said if they are awarded so many flights they would be willing to pay for the majority of it.” But, he stressed, “This is all very preliminary. Nothing has been decided yet.” JetBlue currently offers international flights to Cancun, Mexico, out of Florida, as well as destinations in the Caribbean, Central America and Northern South America. Many questions remain about adding customs to the airport, including whether or not JetBlue would foot the whole bill, and if not, who would pay for the remainder. After all, “You don’t want to dump it on the taxpayer,” Scott pointed out. Another question is whether or not a facility would have to be built for customs services or whether they would be integrated with existing facilities. “One of the questions is, where are you going to put it and where is the square footage available?” Scott said. “Obviously the best idea is to have it right there in the terminal so you could have people disembark an airplane, walk straight into cus-

toms and right out to the baggage claim,” he explained. An alternative would be building a remote facility separate from the concourse, but that would necessitate busing people from international flights to that building, which is less than ideal, Scott noted. Adding customs and international flights would benefit the airport, its tenants and the city, Scott said. “It would be tremendous because it would allow Long Beach to be an international destination,” he said. General aviation pilots would be able to fly to nearby locations where they may have summer homes, he pointed out, while fixed-base operators with international ties would not have to fly their executives through other regional airports, thereby saving them money. The city could benefit from increased revenues and travellers, he mused. “This is a nice convention city, so it would benefit the hotel and convention business. Who knows, you might have an international conference here,” he added. Another benefit would be increasing the airport’s attractiveness to other airlines. If JetBlue, which holds the majority of the airport’s flight slots, decided to merge with another airline and cease operations at Long Beach Airport, having customs could help attract other airlines, Scott said. “So if all your eggs are in one (Please Continue To Page 14)

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March 4-17, 2014

Customs Service

Boeing’s California Job Presence More Than Halved Since 2001

(Continued From Page 13)

Local Operations Shift Focus

basket with JetBlue, it would offer up the ability to get another airline in here if they bailed out.” Other nearby medium hub airports with U.S. Customs services include John Wayne Airport and Palm Springs International Airport. Scott said that the Airport Advisory Commission has not heard from JetBlue or the airport administration in a couple of months about adding U.S. Customs services to the airport. Whether or not the idea progresses depends on JetBlue’s investment decision, and as Scott summarized, “The ball is in their court.” ■

■ By SAMANTHA MEHLINGER Staff Writer Since 2001, the number of people employed by The Boeing Company in California has decreased by more than half from 42,800 to 17,929. With the announcement in 2013 that the aerospace company cease manufacturing the would Globemaster III C-17 at its Long Beach plant, nearly 3,000 more local jobs are being phased out by 2015. Still, the company maintains a local and statewide pres-

ence, although not as large as it once was. Boeing’s physical presence in Long Beach exists in its Douglas Center campus off of Carson Street and Lakewood Boulevard and at its C-17 plant located behind Douglas Park, according to Brittany Kuhn, a spokesperson for Boeing. In addition to manufacturing C-17s, Long Beach programs also contribute to the Boeing Defense, Space & Security and Boeing Commercial Airplanes (BCA) divisions. Boeing’s focus in Long Beach appears to be shifting toward its commercial division. In May, the company announced it would add about 300 engineering jobs in Long Beach and Seal Beach to be part of a




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Southern California Design Center focused on maintenance and design of out-of-production commercial aircraft. Boeing continues to hire for the design center, Kuhn said. “These employees are providing customer support to the BCA out-of-production airplane models – 707,727,737 Classic and 757,” Kuhn said of Southern California Design Center employees. “The Southern California team already supports all of the out-of-production McDonnell Douglas airplane models,” she said. “The number of out-of-production Boeing airplanes still in operation is approximately 4,500,” she estimated. Production of the C-17 continues until the fourth quarter of 2015, when the last airplane is scheduled for completion, Kuhn said. Boeing is building five more C-17s for the Indian Air Force and another 14 to other customers outside of the United States, she said. Incremental plant shutdown is set to begin in mid-2014. Kuhn said that the company is closing the assembly facility in Long Beach following completion of the last aircraft. She stated, “At this time, no decisions have been made about the disposition of the buildings. However, there are no plans for continued production in the facility.” ■

Flight Safety International Trains Pilots, Technicians And Attendants In Long Beach ■ By SAMANTHA MEHLINGER Staff Writer

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Long Beach-based Flight Safety International is part of what General Manager Peter Nily said is “probably the most regulated and training intensive industry in the world.” “Brain surgeons don’t have to do this,” Nily said. The training company, which has 40 learning centers in 10 countries, has roots in Long Beach dating back to the 1960s. At the company’s 48,000-square-foot facility at the Long Beach Airport, 2,500 people a year receive corporate pilot, maintenance technician and cabin safety training, according to Nily, who has been with the company for about 15 years. At the Long Beach Airport, Flight Safety International trains corporate pilots and maintenance technicians for Gulfstream aircraft. “We have flight simulators that represent Gulfstream aircraft – those are the aircraft that are completed and serviced next door at the Gulfstream facility,” Nily explained as he gave the Business Journal a tour of his company’s property. Gulfstream’s facilities are a short walk from Flight Safety International. “In this building we currently have the G550, G450, GV, GIV and GIII simulators,” Nily said. The simulators look like something a student might want to climb

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AVIATION/AEROSPACE INDUSTRY FOCUS March 4-17, 2014 into on a field trip for a science class. Spaced evenly along the interior of the building, the massive equipment shifts as pilots inside run through flight scenarios using technology manufactured for the actual aircraft they are being trained to fly. “We build our own flight simulators in Oklahoma,” Nily said. To build a simulator, software engineers ride in an airplane to collect real flight data. The data they collect is then used to recreate actual flight scenarios for the simulation equipment, Nily explained. All pilots training at Flight Safety International are career pilots, Nily said. “They’re all professional pilots who are very accomplished in one or several aircraft types – they’re just adding this particular type of training,” he said. “I’d say 95 percent of the pilots who train here are airline transport pilot certificate holders, and that’s the highest level of pilot certification you can hold,” he added. Flight Safety International provides initial pilot training, which takes about three-and-ahalf weeks, and recurrent pilot training, which is refresher training that takes about a week and is required for pilots at least once a year by the Federal Aviation Administration. Before pilots train in the simulators, they receive classroom training on computers and then move to graphical flight simulator training in which they interact with a series of monitors placed around a cockpit chair to help them get a feel for an aircraft’s equipment. The company also trains maintenance

Long Beach Business Journal 15 Flight Safety’s cabin safety program is essentially airline flight attendant training that combines the courtesy and emergency aspects of the job, Nily said. Pilots and maintenance technicians may also take part in the emergency training. “They will run through a scenario where an aircraft will have a fire somewhere . . . and the cabin will fill with smoke and they will have to fight the fire,” Nily said. Training also includes water landings. Although the facility does not have a pool, trainees take a trip to the local YMCA to learn how to deploy a raft. The facility has two actual aircraft fuselages for emergency training. Flight Safety International General Manager Peter Nily stands beside one of the company’s several Gulfstream flight Flight Safety simulators at the company’s Long Beach facility. All of the company’s training programs are U.S. Federal Aviation International employs about Administration approved. (Photograph by the Business Journal’s Thomas McConville) 100 people in Long Beach, most of whom are fulltime, technicians for Gulfstream aircraft at its put our hands on the airplane. It’s not just according to Nily. The company, which is Long Beach facility through a program theoretical, but practical training.” called Total Technical Training. Nily said All of Gulfstream’s local maintenance owned by Berkshire Hathaway, has no curthat instructors from Gulfstream and Flight technicians go to Flight Safety for train- rent plans to expand its Long Beach operSafety International work together to ing, Nily said. “These folks go through a ations simply because there is no room to “accomplish initial and recurrent training significant period of studying and testing grow. “We’re limited by the leasehold size. for maintenance technicians on the before they get issued an airframe power There is nowhere to go on this property,” Gulfstream models.” He explained, “With plant certificate from the FAA. Then they Nily said. If a neighboring facility were to that partnership we’re allowed to go over to come here for specific make and model become available, the company might consider expanding, he said. ■ that facility and get on those aircraft and training,” he explained.

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March 4-17, 2014

Question: There have been many complaints that the Mayor and City Councilmembers do not do enough to support the arts in Long Beach. What do you think, and how would you support the arts? DAMON DUNN


he single m o s t important job of the next Mayor is to grow our economy and create jobs . . . and then use those new resources to improve our quality of life in Long Beach. My first goal will be to lead a neighborhood-by-neighborhood plan to make sure Long Beach is delivering what people here want and need for a quality life . . . including the arts, neighborhood revitalization and public safety. We should look at the arts in two ways . . . an important element of our quality of life and worthy of investment on that alone, but also as an economic catalyst. Other communities in California and throughout the nation have turned to their local diversity and their local artisans into an economic asset and created real economic value. Long Beach is rich in these same resources, but we have yet to bring them together as an economic driver. We are a diversified community, but the focus often is within our neighborhoods rather than across the city as a whole. We have a strong arts presence and many important events such as First Fridays, 2nd Saturday Art Walk, our museums, and our cultural organizations, but we do not yet have a coordinated strategy that considers the Arts as a core local industry. This approach is also key to sustained support. The arts should not be dependent on the vagaries of the City Budget and temporary infusions when times are good. Instead, we need sustained support that other communities have achieved by approaching arts as a source of jobs and a tool for broader economic growth. We need to work with our local arts groups in seeking private funding to expand our core resources, and create the destination venues that can draw on the incomparable resources within our broader region. We need to work with our business community in expanding local businesses such as restaurants that go along with a thriving arts economy. And to accomplish this, we need a catalyst who brings these parties and resources together in a focused economic development campaign. As Mayor, this is a role I pledge to undertake. ■



very great American city has a thriving arts and cultural economy. We need to continue supporting our arts community by making festival, music and events permitting easier and more affordable, and ensuring full funding and full support of the mission of our Arts Council. California State University, Long Beach graduates more artists than any other school west of the Mississippi, yet we do precious little to persuade them to stay and live and create in our city. We should look at further tax cuts for live-work artist spaces and support of studio space. We also need to increase support for our entertainment districts, which not only improve our quality of life and attract new visitors, but also contribute immensely to our tax base. Tourism has long been a vital part of our economy. Promoting Long Beach as an artistic cultural destination would support our artistic community and our city budget. As our large neighbor to the north, Los Angeles, struggles with runaway film production, we should partner with them to consider a variety of incentives for filming projects. We must also encourage our state government to look at how we keep these projects in California. I have already begun this process by authoring a proposal, which passed Council earlier this year, to have city management investigate the state of filming in Long Beach and recommend incentives to stimulate more production in our city. The city also needs to financially support our local art and cultural institutions like the Long Beach Museum of Art, Musical Theatre West, Museum of Latin American Art, University Art Museum, International City Theatre, Long Beach Symphony, Long Beach Opera, Long Beach Playhouse, the Ranchos, and Cal Rep at Cal State Long Beach. In addition, we need to support our smaller and independent venues and art galleries like the Found Theatre, the Garage Theatre, and numerous local dance troops, artists, and musicians. ■



hen public budgets are tight, support for the arts is often viewed as frosting on the operational cake. Public safety, street repair, and dozens of other financial demands compete for a finite number of dollars, and the arts lose out. We now know this is fiscally unsound: the “creative economies” make a substantial financial contribution to the economy. The Los Angeles Economic Development Corporation (LAEDC) and Otis Art Institute determined that the creative sectors supported 1 in 7 jobs in the Los Angeles-Orange County region, with a net economic output contribution of 10.4% of the gross regional total. Simply put, investing in the arts pays us back! We have an amazing opportunity in Long Beach to capitalize on this: our diverse cultures can be linked with the economic sectors of new media, the performing arts, design and creative services to create jobs and make the arts a sustainable economic driver. Our local tourism industry and CSULB will make it even stronger. As mayor, part of my job will be to forge those connections, elevate the Arts Council, and hire an arts advocate in the Mayor’s office. Each individual can support the arts! The people of Long Beach helped save the summer park concerts; we can participate in and support the many other artsrelated activities in the City. Did you know you can attend a Bon dance, watch a silent movie, hang out in art galleries, hear a worldclass orchestra and meet a former Phantom of the Opera – all within Long Beach? Even better: many opportunities are free or low cost. Unfortunately, many arts-related organizations lack the funding to adequately publicize their activities. We need a go-to information spot – a virtual “bulletin board” – where people could find out what’s happening next Saturday, say. Whether we use a social media site or the Mayor’s website, work with our newspapers, or share information through our libraries and schools, I think this small investment by the City will result in more dollars being spent in Long Beach by both residents and visitors. ■



t’s fascinating how so many current elected officials say they love the arts – except when it comes time to providing actual support. This has to change. The reason is simple: Arts and culture create economic prosperity. The creative economy totals over 636,000 jobs in L.A. County. Supporting the arts is a win-winwin: it creates jobs, attracts the high-skilled workforce that technology and information-driven businesses require and improves our neighborhoods and commercial corridors. Think First Fridays in Bixby Knolls on Atlantic, Retro Row on 4th Street and Art Walks in the East Village on Linden Avenue. Here are the steps I would take: (1) Creat a Cultural Arts Advisory Council with direct access to the Mayor which meets four times a year. (2) Make Cultural Affairs to address the creative economy a key component of the new Economic Development Department I propose in my Jobs Plan. (3) Establish a cultural trust fund to better aggregate arts and culture funding into one pool to maximize impact. (4) Establish a one percent art development fee on new developments to support the arts, similar to efforts in Seattle, Portland, Santa Monica, Sacramento, Pasadena, Los Angeles, San Jose, and Los Angeles County. ■







ong Beach is fortunate to have every form of art represented in our c o m m u n i t y. This City is rich with a diverse arts community that has developed on its own, largely free from government support or direction. I was very happy to sponsor TEDxSOCAL for two years which brought hundreds of creative people to our Convention Center and resulted in the booking of additional convention business. This successful event highlights the connection of arts and culture with economic development and points out why Long Beach needs to increase its support for making the city an artistic and cultural destination. Urban planners talk about the importance of “place making” in shaping a community’s social and economic future and the connection of arts and culture in strategies for making a community economically vibrant. A source of funding local arts and culture could be accomplished by utilizing a portion of the Transient Occupancy Tax which is collected on visitors to our hotels, motels and other lodging. Cities such as San Diego designate a portion of its TOT towards nurturing and maintaining art and culture. Last year, Long Beach collected $19 million in TOT. Long Beach needs to become involved with ART PLACE AMERICA, which is a collaboration of organizations and funders that provide financial assistance to accelerate creative place making in cities and has done so for Los Angeles, San Jose, and San Francisco. On a very practical level, the City of Long Beach should add an Office of Arts and Culture to the portfolio of the Library Services Department as has been done in so many cities across the U.S. For many, the library is the only access to arts and culture and this would provide a focal point for these efforts in the City. Finally, Long Beach needs an aviation museum which would celebrate the city’s long aviation history and bring a large amount of tourists. By partnering with the Smithsonian Air and Space Museum, Long Beach could serve as a Smithsonian West. ■

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Long Beach Business Journal 17

Question: Why should voters support you to be the next Mayor of Long Beach? DAMON DUNN


y reason for moving to Long Beach was deeply personal. I wanted to be closer to my daughter so I could continue to be a big part of her life. In moving here, I sought to become a contributing part of what makes Long Beach so special. I joined Rotary Club, Chamber of Commerce, and Ukleja Center for Ethical Leadership at CSULB as a Faculty Fellow. At Long Beach Education Foundation, I helped raise money to save middle school sports and start the Long Beach College Prep Academy. I became active in our community because I truly believe in giving back for what I have achieved. I was born into poverty, but was taught the importance of education as the gateway to opportunities and the value of personal ethics in pursuing them. With the support and guidance of many, I was able to achieve success, in business and in life. I worked with different cities here and in other states. I know where they work well. I also know where their policies and actions work against creating jobs and sustainable economic growth. Before deciding to run for Mayor, I walked 12,000 homes and talked with thousands of you about what matters most, what the next Mayor can do to make Long Beach better and stronger. We need to create jobs and sustainable economic growth which will generate revenue to balance the budget without new taxes or debt, fully restore public safety, and revitalize our neighborhoods with tree trimming, repairing sidewalks and streets, and making investments in the arts. We need to work with our schools and colleges to make education a priority and make sure the opportunities I had are available to all our young people today. We need a new Code of Ethics to ensure our local officials continue working for the best interests of our community and not – as we have seen at the State level – for themselves. These are the issues I’ve heard that matter most to our community. I will champion these issues if I am honored to be elected your next Mayor. ■



he next Mayor of Long Beach needs to provide visionary economic leadership for our city. Long Beach experienced some tough times recently, as previous irresponsible fiscal management made it difficult for our local government to respond to the post-2008 economic collapse. But thanks to hard work, a willingness to make tough choices, and the creativity of our diverse and invigorated residents, we have made incredible progress in the last few years. We have gone from budget deficits to a budget surplus and from pension spiking to pension reform. In addition, we have increased our reserves and have begun to pay down our unfunded liabilities. We are turning the corner to better economic times. Still, we all know Long Beach has even greater potential. Our shared goal of fostering a city where economic opportunity is available for all is still incomplete. As Chair of the City’s Public Safety Committee, I have provided strong, consistent leadership and oversight for our Long Beach Police and Fire Departments. I successfully fought to fully fund public safety services and supported tough gang injunctions to take back our neighborhoods. Crime in Long Beach is at historic lows, with violent crime continuing to decrease citywide, and Long Beach is safer today than it has been in more than 40 years. I also worked to expand afterschool programs for youth to provide them with healthy and safe activities and alternatives to the street. I am determined to make this city a fantastic place to live for all. I’ve always believed Long Beach is the greatest city in the world and I am confident that our best days are ahead of us. ■



ecause I have spent my entire career preparing for this job. I have a more comprehensive grasp of the issues facing our city, a more significant set of accomplishments, and better set of relationships to get things done than any other candidate. I am not running for any other position after this, not beholden to any special interests, and not using this office as a stepping stone. Moving Long Beach forward, continuing our great run, and ensuring we can thrive during the inevitable challenges ahead is my sole focus. I will focus on the basic needs of our city: jobs, public safety, and investment in and revitalization of our infrastructure. I started as a teacher and activist in the community, organizing for better, safer neighborhoods. I had the honor of being elected to the school board where I helped institute reforms that led to Long Beach being named one of the top urban school districts in our nation. On the City Council I fought for more police on the streets, helping reduce crime to historic lows. Now I represent Long Beach in the State Assembly, where I worked to return tens of millions of our tax dollars to Long Beach, allowing our city to balance its budget, invest in public safety, and ensure our children have a quality education. My work on behalf of our great city has afforded me the opportunity to create relationships at the local, state and federal level, giving me not only the ability to marshal significant resources for Long Beach from across the region, but also to identify and take advantage of opportunities to help our city and expand our economic reach. I am running for Mayor because I want to make our city better, continue our revitalization, and prepare us for whatever the future may bring. I have spent my career preparing myself for this job. I am proud to be supported by Governor Jerry Brown, local elected officials, business owners and community leaders. I’m not afraid to make the tough decisions to keep our city moving forward and humbly ask for you support. ■



hange is coming to Long Beach. By July we will have a new mayor and at least five new councilmembers. The question is: Who has the vision and leadership to make this change a positive one? No other candidate offers my unique combination of experience, knowledge, vision and leadership. I grew up in Long Beach; Long Beach has always been my home. I have an unmatched record of community and civic service. I’ve offered a vision of a more prosperous Long Beach – and a detailed plan to achieve it. I understand the issues, such as public safety, because I was a prosecutor and defense attorney. Safe streets, great schools, vibrant neighbors, a prosperous economy: those are goals we can achieve with experienced leadership. Achieving those goals will take a mayor who can build consensus and collaboration, who is experienced and principled, and whose objective is a better city, not another elected office. I will be that mayor. ■

Coming Up . . . In the March 18 Business Journal – Responses from the city council candidates to 21 questions we asked them



irst elected to the City Council during one of Long Beach’s most difficult economic times, I've worked hard the past eight years to help bring Long Beach back from large deficits, high crime rates, broken infrastructure and unsustainable pensions and get us back on track. We passed pension reforms which will save our City over $234 million that we can now begin investing into our neighborhoods. I pushed for putting some of our surplus oil money towards our unfunded liabilities and for opening our collective bargaining process so that the public is informed before the contracts are finalized. I succeeded in getting City Management to finally agree to purchase an automated timekeeping system that will stop the practice of over 4,000 City employees filling out time cards by hand at the end of a work week. Most importantly, I have been passionate about reforming our City government so that it is open, transparent and accountable and was honored at The White House last summer as one of seven “Champions of Change for Open Government.” I was the first councilmember to post my calendar on line and the only one to write a blog to keep residents updated on City issues. I take residents behind the scenes at City departments through my Open Up Long Beach. I authored legislation so that lobbyists can no longer give gifts and outgoing elected officials cannot destroy their public records. I involve my constituents in taskforces on issues ranging from small business to lakes, ponds, wetlands and sustainability. My Solar Grand Prix is the highlight of many of our middle and high schools. Working with all members of the City Council, we passed my legislation to get the City involved in pursuing federal funds and designation as a manufacturing center and to explore developing a “Clean Technology Enterprise Zone” to attract high paying jobs. As a native of Long Beach, my roots are deep in this City. I am offering voters the strength of my record on City Council and the promise that I will get Long Beach back to working again for everyone. ■

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Long Beach City Attorney’s Race (Continued From Page 1)

That’s why three Business Journal staffers spent an hour-plus with Charles Parkin, the current city attorney appointed last year to fill the unexpired term of former City Attorney Bob Shannon, and with James Johnson, current 7th District councilman, who wants the job. Being city attorney is not like running for city council. Experience does matter. The ability to manage other attorneys and related staff does matter. Being knowledgeable about, and having hands-on involvement in, a wide range of city department functions – such as tidelands, the port, the water department – does matter. Being independent does matter. Every day, legal issues flood the office of the city attorney. It’s an all-encompassing job that requires a professional’s professional. On-the-job training is simply not acceptable. That’s a large part of why Charles Parkin should be elected Long Beach City Attorney. He has 15 years of experience in the city attorney’s office, with specific knowledge and personal involvement in every aspect of the operation. Johnson has been teaching law at Long Beach State for the past year or so, with very little time on his resume of working for a law firm. In fact, Johnson has so little legal experience that any of the other 19 attorneys working in the city attorney’s office is more qualified than Johnson to run the office. (As an aside, all 19 attorneys have endorsed Parkin – a very powerful statement of who they trust to do the job.) For the interviews, the Business Journal staff came prepared with two pages of questions, gleaned from conversations with several attorneys – retired and currently practicing. We read the City Charter Section 600 (Department of Law). We read Article 16 of the California Constitution (Public Finance). We read about the difference between a Charter City and a General Law City. We reexamined the city’s organizational chart, which includes a port, an airport, the tidelands area, gas/oil, water and health departments, etc., all requiring legal advice. Few cities have such diversity within their internal operation, making the selection of city attorney that much more critical. We asked Parkin and Johnson questions – some simple ones, to determine if they understood the responsibilities of the position – and some tough ones, to learn about their knowledge and experience in dealing with various issues that arise regularly during the course of a workday or during a city council meeting. Johnson is well educated, smart and has done an decent job as councilmember. He would have easily won a second term. But he’s simply not prepared to step into the city attorney’s shoes. He would be wise to get a job with a law firm – preferably one that practices municipal law – or join the staff of a city attorney’s office before seeking the top position. During the interview, Johnson often referred to his education instead of answering the question asked. Harvard and UC Berkeley Law School are very impressive on a resume, but they are not a substitute for experience.

March 4-17, 2014

Charles Parkin Charles Parkin was born in Long Beach, graduating from St. Anthony High School. He received a degree in management from California State University, Long Beach in 1980. After graduation, he spent several years working in oil fields in California and in 1984 he was hired by the City of Long Beach as a petroleum engineer field technician. He attended school at night to earn a law degree, graduating from the Pacific Coast University School of Law in 1991 with his Juris Doctor. He was admitted to the State Bar of California in June 1992. In 1995, he joined the Long Beach City Attorney’s office as a deputy city attorney. In October of 2006 he was promoted to principal deputy city attorney, and in January of 2012 was promoted to assistant city attorney. In June 2013, the city council appointed Parkin acting city attorney (to fill the unexpired term of the previous city attorney, Bob Shannon), and in August he was appointed city attorney. He and his wife, Terese, have three adult children. Johnson also said, “I’m the only one with elected experience. And that’s important because I had four years of saying no to very powerful groups.” The city attorney’s office should not be about politics, but Johnson has made it very political, calling on his friends in the Democratic Party to endorse him. We wonder if those who have endorsed him understand how inexperienced he is for the position? They are supporting a fellow Democrat – party loyalty – not who the best candidate for the job is. It’s clear from reading Johnson’s “Closing Argument” response on Page 25 that he confuses the role of city attorney with a city councilmember. For example, he states: “I think part of my role is to go to communities and solve problems . . .” No it isn’t. That’s what a mayor, councilmembers and city staff do, not the city attorney. Parkin’s backers span the political spectrum and include individuals with very strong credentials: the former speaker of the California Assembly, Willie Brown, probably the most powerful state Democrat of the past 50 years; former Long Beach mayors Beverly O’Neill and Ernie Kell; L.A. County District Attorney Jackie Lacey and the former DA,

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James Johnson James Johnson was born in Long Beach, graduating from Poly High School. He received an economics degree from Harvard in 2000 and his Juris Doctor in 2004 from Berkeley Law School (“I got Order of the Coif, meaning I was in the top 10 percent of the class”). He was admitted to the State Bar of California in December 2004. He was a litigation associate with Morrison & Foerster from 2004 to 2006, then joined the Long Beach City Clerk’s Department (2006) as a senior policy advisor (“We did revise the city charter structurally for the first time in 20 years”). From 20082010 he was assistant city auditor in the Long Beach City Auditor’s Department (“I helped review contracts, interpret CalPERS regulations for our pension system, make sure that people are compliant with our tax ordinances, etc.”). In 2010 he was elected to represent the 7th City Council District. He initially announced he was seeking a second term on the city council, then changed his mind and decided to run for city attorney. He and his wife, Nicole, have two children. Steve Cooley; former Gov. George Deukmejian, who also served as attorney general for the state; five retired judges of the Superior Court; and three former Long Beach city attorneys. Parkin earned these endorsements because of his experience, not due to politics. While most of Johnson’s “name” endorsements are outside the city, Parkin’s are within, including former councilmembers Rae Gabelich, Jackie Kell, Tonia Reyes Uranga, Doug Drummond, Frank Colonna, Doris Topsy-Elvord and Val Lerch – an interesting mix of supporters which indicates they recognize that this complex job requires an experienced hand. We know Parkin is a well respected professional. However, we question Johnson’s conduct and maturity. For example, the Business Journal challenged Johnson to respond to a rumor that, during a recent Democratic Party gathering, he publicly referred to Parkin as a “good old white boy.” Johnson’s response: “Sometimes you make jokes. I may have said something along those lines. I did not call him a good old white boy. What I said was I think the people

Long Beach Business Journal 19 have the right to choose here. And I think it’s an old boys’ network where basically the old city attorney passes down the new city attorney. And I oppose that. I may have said something along the lines of there’s nothing wrong with white guys, I am one myself, but I do think the people have the right to choose. I think that’s the big issue here. One issue in the race is do people have the right to choose whoever they want, or should the last city attorney pick the new city attorney? That’s the question.” We’re not sure where Johnson is coming from. Voters always have a right to choose. It’s called an election, and promoting from within is admirable. Lastly, serving as city attorney requires an individual to be independent and not beholding to any group. Yet, when asked, Johnson admitted to signing a pledge statement from a local union (Parkin said he did not sign the pledge). Here’s our exchange with Johnson, which, again, is further evidence of his misunderstanding of the office: LBBJ: Have you signed a pledge from the Southern California District Council of the ILWU [International Longshore and Warehouse Union]? Johnson: I did sign the ILWU pledge. LBBJ: Why would you sign it if you are trying to be independent? Johnson: Well, I looked at it and a lot of it, frankly, was not relevant to the city attorney’s race. LBBJ: So why sign? It reads: “I will unflinchingly support organized labor, collective bargaining and workers’ rights.” That’s a pretty strong statement to agree to. Johnson: I support their legal right to organize. That’s the law. What am I going to say, that I will not support that right? LBBJ: How about, “I will not support the subcontracting of public services?” Johnson: Let’s talk about that. As the city attorney, you are not a policy maker. Of course I’m not going to support it because I’m not going to advocate for it either way. So the way I saw that was, a lot of that was frankly written for people running for city council and mayor. It was not addressed to city attorney because most people understand what the city attorney does. And so it was pretty easy to sign it because, in a sense, I know it’s not going to constrain me as an elected official. I’m going to be the city attorney who does not take these policy positions. I’m going to advise the city council, so of course I’m not going to support various things. I generally have not signed pledges, but in this case I felt that it would not constrain me as an elected official because they weren’t really relevant to the aspects of the city attorney. So while I didn’t sign pledges when I ran for city council, in this case, since it’s irrelevant to my duties, I didn’t see any harm to the people of Long Beach. The question is, will it affect your independence as a city attorney. I felt like it would not. That was my decision.” (Please Continue To Page 20)

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March 4-17, 2014

Long Beach City Attorney’s Race (Continued From Page 19)

Mayoral Candidates Weigh In The February 18 edition of the Business Journal asked the top mayoral candidates to tell our readers what experience they felt was needed for the city attorney to do a good job. Robert Garcia said: “I believe that a qualified candidate for city attorney will have experience in municipal law, understand the charter, and have litigation and management experience.� Bonnie Lowenthal wrote: “Of course, our city attorney must have an extensive litigation background and experience practicing municipal law.� Doug Otto, an attorney, wrote: “The job of the Long Beach City Attorney is one of the most complex jobs any attorney could undertake. This is because the breadth of responsibilities that the Long Beach City Attorney’s Office has exceeds similar jobs in almost all other cities. To be truly successful, the elected city attorney should have a diverse background in many of the areas for which the City Attorney’s Office is responsible.� Lastly, Gerrie Schipske said: “Long Beach has been fortunate to have stability in the Office of City Attorney. More importantly, the voters have elected those attorneys who have worked their way up through the office, bringing with them a wealth of experience and knowledge that has served the city well.� On the following several pages are responses to some of the questions we asked Parkin and Johnson regarding the city attorney’s position. The Business Journal is devoting a considerable amount of space to this race, but, as stated in the opening paragraph, this is the most important decision voters have to make this election season.

Who’s The City Attorney’s Client? The City Charter is very clear about the role of the city attorney: “To be the sole and exclusive legal advisor of the City, the City Council and all City commissions, committees, officers and employees with reference to all of their functions, powers and duties under this Charter . . .� When asked, “Who do you consider to be the city attorney’s clients?� Johnson’s reponse was: “There’s no clear answer. . . . I see my client, basically, as the people of Long Beach as represented by the Long Beach City Council. . . . I see myself as, basically, advising the city council. They are the policy makers and they represent the people of Long Beach at large. I always say the ultimate client is the people of Long Beach, but because the people of Long Beach are kind of an amorphous group that I can’t know exactly what they think on any given issue, I think my duty on a typical day-to-day basis is to accept the fact that nine councilmembers represent them.� Here’s Parkin’s response to the same question: Under the charter, the city attorney is the sole and exclusive legal advisor to the city, and the city is the city council acting as a

Long Beach Business Journal Journal

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body, it’s boards and commissions, it’s employees and it’s officials. The way I would describe it is, the city attorney’s office is a small law firm. We have one client. And our duty of loyalty is to the city and the city sets policy through its city council. We have a city manager-city council form of government, so that is our client. We constantly get calls from the public saying, ‘You’re the city attorney. I want you to sue this guy for me or I want you to represent me.’ And we have to explain to them, we’re not the attorney for the citizens of Long Beach. We have a municipal corporation as our client and we represent them. We can’t give legal advice to the citizens.�

Charter Versus General Law Cities? In very basic terms, a Charter city, such as Long Beach, has authority over its own affairs, while a General Law city must abide by the state’s general law. We asked the candidates: “Tell us the difference between a Charter city and a General Law city.� Johnson’s response: “Cities, unlike states and the federal government, are not sovereign entities. Sovereign entities control their own destinies. Cities can be eliminated because we are controlled by a higher power, which is the State of California. So if the State of California tomorrow said, “There is no City of Long Beach,� they could pass a bill and it would be eliminated as a city. . . . In the early part of the 1900s, the legislature would have to pass bills to create every city. As California grew, that became unwieldy. So they decided to create a default law called the General Law. Basically the state legislature said we’re going to have a general law in the government code where, if you choose, you can just follow these general rules. Five councilmembers, a rotating mayor, etc. A lot of cities in California follow that code, so they are General Law cities. They also said that, if you want to have more power, more control over your own destiny, you could write your own rules, which is a City Charter. A City Charter would basically govern your city. That’s how you can govern yourself. Now, it’s not technically a constitution because, once again, you are not a sovereign entity, but in many ways it acts as a constitution because it is your highest law. Most big cities are Charter cities, but a lot of smaller cities follow the default rules.� Parkin’s response: There are two types of cities in the State of California: General Law and a Charter city. The Charter city has a document that is adopted by its voters and that acts as the city’s constitution. If you are in a charter city you have some additional authorities or limitations of power, depending on what the charter says, that General Law cities don’t. General Law cities are controlled by the state legislature and enactments by the state legislature, so their roles, responsibilities and duties are all determined by legislation. An example would be in elections. The City of Long Beach holds our elections at our own dates and times. And we have adopted a municipal code that deals with elections. And those sections that are not covered by our elections code, we refer back to the state elections code. So we can adopt an ordinance, and we have adopted an ordinance, that says we want to do our elections in April and June, not June and November. General Law cities’ elections would be June and November. So it allows the cities additional flexibility and additional powers. That’s the main difference between those two cities.

The Charter: A Grant Of Power, Or A Limitation Of Power? Question: How do you view the City Charter? Is it a grant of power or a limitation of power? Please explain. Johnson’s Response: The federal constitution is a law of enumerated power. So, for example, the Affordable Care Act debate was all about if Congress had the authority to pass legislation that required people to have health insurance. They ended up saying yes, but that was debatable. So the question you’re asking is what is a City Charter? Is it that kind of document? I say, look, the City Charter basically lays out how the city is going to be governed, what powers people have and you have no powers that are given. That’s why I say it is a limiting document. For example, if the City Charter says that the mayor can veto a law, the mayor has the power to do that and it lays out exactly how the city council can override that veto. I see the City Charter as laying out the rules of the road for how the city is governed and how all of the departments – the highest rule of the departments, basically. Question: So it’s both? Johnson: I think essentially it is enumerated powers. You can’t do things that are more than what the charter allows you to. For example, limited. I see it more as a limiting document. Parkin’s Response: It is best described as a document of limitation of power. It clearly says what the city can do and sets the limits. But it gives parameters on what we can do or it clearly calls out what’s required to be done. Certain sections would say if the city is going to adopt a resolution or an ordinance, it clearly says you have to have five votes of the council. So it is a limitation on powers in that if you only have six people like we had at council [recently], we had an ordinance that was coming up, it might have passed four to two, but it wouldn’t have passed because the charter says you have to have five votes. So I would describe it as a limitation.

Litigation Experience Election: Long Beach 2014




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The Business Journal asked the candiates about their litigation experience, such as how many trials they’ve had and whether or not they were municipal cases. Johnson’s response: I did work as a litigator for several years, which meant I was involved in dozens of cases. When at the highest levels of the law, you don’t have a lot of trials. So I did have some involvement in some trials, but not very many because a good attorney, number one, settles cases and, number two, in very large cases, very often they don’t go to trial. For example, if you have a $70 million litigation case that might go for six or seven years of legal work, it almost always settles the day before trial because of the expense of trial, etc. But I got very good outcomes for my clients. I actually worked on an international slavery and trafficking case. This is a case that spanned countries. It was in Indonesia. It was in California. She was abused sexually and physically. It was such a difficult case that prosecutors didn’t even bring it. She came to us for justice, and I represented her at no charge to the firm. It was a pro bono case. After years of litigation – I spent over a year of my time – we

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Long Beach Business Journal 21

got her what I think is a very fair settlement. That’s an example of all of the things we work on, all of the motions, all of the practice leading to a great outcome for the client. So I have quite a bit of litigation experience. I think that is going to be a benefit to Long Beach. Parkin’s response: My entire career is municipal. So yes, I have six actual jury trials to conclusion. They ranged from trip and fall on a sidewalk to an auto accident to a civil rights police case. So those are kind of the areas. I had a lawsuit involved with the Queen Mary bankruptcy, which was a four-year case in federal bankruptcy court. Then I had a lawsuit that went up to the Court of Appeal in the California 2nd District. We sued the State of California on oil well abandonment funds – setting aside money for oil well abandonments – and we got a decision out of the Court of Appeal to set aside up to $200 million for the abandonment of the oil wells in Southern California in the Long Beach unit, which then went to the legislature. In addition to the jury trials, I have probably had 20 or 30 bench trials, which means in front of a judge, no jury. And then arbitrations and mediations, probably in excess of 50 or so, and depositions and all discovery stuff that’s related to that. I did litigation from 1995 to almost the end of 1999 for the city.

Hiring Attorneys And Contracting Out Services Question: If you were elected city attorney and current attorneys employed with the department left, are you prepared to hire attorneys? Johnson: Absolutely. One thing I want to do is actually hire more attorneys than there are today. For example, I think we can save tremendous monies by bringing some attorneys in-house. So even if nobody leaves, the city attorney’s department has over $4 million in outside counsel fees that are essentially no-bid contracts. What I mean by that is there is no request for qualifications for these folks. What happens right now is these firms might get paid $300,000 or $700,000 a year. We don’t go to market. We don’t say who can do the best work at the lowest price. It’s just basically whoever the last city attorney thought, their friend or whatever [should be hired]. That’s not a good process. I think we’re paying too much and getting too little. So one thing I’m going to do is have a fair process so when we do have outside counsel anyone can participate and tell us how they are going to provide a better service at a lower price. But also, I’ll tell you as someone who has been outside counsel and charged $450 an hour, these folks are very expensive. I think we should bring more attorneys in house to do some of that work. Not all of it, but some of it. I think our attorneys probably provide the work at half the cost, even with all of their benefits. And you get better quality because, when those cases are over, that institutional memory stays in the office. So one thing I’m interested in doing is relooking at the balance. Question: As appointed city attorney, are you prepared to hire attorneys? Parkin: I have hired one attorney in the past eight months. We had an attorney in our (Please Continue To Page 23)

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Long Beach Business Journal 23

Long Beach City Attorney’s Race (Continued From Page 21)

litigation section retire. I have a group [within the office] that does the initial interview and we get it to three or four [candidates]. Then we talk and try to reach a consensus. Since it is a small office, you’ve got to have people who fit personality-wise and experience-wise. Sometimes we’re looking for a certain skill set since we don’t have a training opportunity because we don’t have a lot of attorneys. Question: We were a little bit unclear here about the city attorney’s budget used for contracting services. Is it $1 million, is it $4 million? What’s the number? Parkin: For outside legal services it’s more than $4 million, and that varies from year to year. The average might be $4 or $5 million a year for the last few years. I can tell you, I think the majority of that is being paid for on projects in the harbor. Question: So the harbor is actually picking up the tab. Parkin: The harbor is paying for it, yes. I’m sensitive to outside counsel, as everybody else is. But we also look at it as we’re contracting labor and it’s expensive, but it’s cheaper than bringing on a full-time person forever. So, for example, in the harbor department they currently have maybe $4 billion in construction projects coming through the pipeline. That’s not always going to be the case.

Workers’ Compensation LBBJ: What is the extent of your knowledge and experience handling workers’ compensation matters? Johnson: At the private firm I did do some workers’ compensation work in terms of advising State Fund. That’s the largest insurer in California for workers’ compensation for employers. I think about half of employers use the State Compensation Insurance Fund. . . . They are a government agency. But they operate like a for-profit business. They use no tax dollars. So in many ways, they are like an enterprise department we have here. So I did advise them quite a bit. They have a lot of the typical issues of a government agency, like how do you use the Brown Act, what are the public procurement regulations, how does civil service work. These are all things you don’t have to worry about as a private employer. You can just hire whoever you want. So I did a lot of advising for them. Also, as a workers’ compensation insurer, they of course ask us for our advice on a number of matters about how basically to most effectively pay claims, keep rates down, etc. Parkin’s Response: Twenty-two of our 64 employees are handling workers comp. It’s a huge part of the city’s budget and a huge part of our office. It’s a balancing test – to balance getting the medical attention and benefits that the employee needs because they have been injured on the job against the cost of those services and trying to minimize the cost

and comply with the law. It’s a heavily regulated area of the law. There are a lot of rules that probably don’t make sense to normal people, don’t make sense to me when I’m working on those cases. It’s something that we’re looking at and we have talked about. We’re starting an audit of the workers comp section for the city attorney’s office. We’re going to bring somebody in, they’re going to take 400 or 500 claims, they’re going to pick them apart and they’re going to tell us are you guys using best practices. The state comes in and audits the workers comp I think every four or five years, and that’s going on. But in addition to that, we’re bringing somebody from the outside in saying hey what’s the industry doing out there? Are we doing it right? Are we doing everything we can be doing to minimize cost, deliver the services we need to deliver and minimize our exposure?

Tidelands Question: As you know, the city oversees the tidelands area for the State of California. What is your knowledge regarding the legal aspects of the administration and operations of the tidelands trust assets? Johnson: This is something I’ve been interested in for many years and have been involved in since working for the city for the last eight years. The tidelands, as you probably know, is a trust. The tidelands area is state property and the city manages it as a trustee on behalf of the people of California. So one thing I always keep in mind is whatever we are doing, is it for the benefit of the people of California or is it for the sole benefit of the people of Long Beach? If it’s the latter, then it’s a trust violation. That’s the basic doctrine of the tidelands. I’ll give you a simple example. The Aquarium of the Pacific, that’s a tidelands asset. We paid for it with tidelands money. That’s okay because the people of California benefit by coming and visiting this beautiful aquarium, et cetera. What’s not okay is if they do something like, say, free admission day for residents of Long Beach or free admission day for 7th District residents. That’s not okay because now you are taking a state asset and having it benefit only Long Beach residents. Parkin: I’ve been working with the Tidelands probably since I started with the city in 1984. My initial introduction to it was working for the city in our oil operations department. Tidelands basically began in the City of Long Beach and the other cities around 1911 when the state granted to the City of Long Beach all the rights interest and control into the Tidelands. That means basically the mean high tide line along the shore is Tidelands, and then you have property that’s Tidelands-adjacent. And in the oil operations, they had subsidence in the 1950s and they have a subsidence control act which meant they had to unitize and start injecting water. And then they discovered oil offshore of Long Beach and decided they wanted to build four oil islands and produce oil over on Pier J by where the Queen Mary is. The state owns that property and we are the owner in trust for (Please Continue To Page 25)

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Long Beach Business Journal 25

Long Beach City Attorney’s Race (Continued From Page 23)

that property. Just to back up a minute, in the 50s the city was producing all this oil. We had a lot of money. Then we started spending it a little more and more out of the Tidelands on municipal projects. The city went to the legislature, got approval, said we don’t need this much money for the Tidelands, we want to build libraries and roads and etc. The City of Long Beach was sued and the court found that the money was restricted use Tidelands money. That was known as the Mallon decision in 1955. After that case, there was legislation in 1964 that identified the boundary of the Tidelands basically along Seaside Way and along the bluff, and it also took a lot of the money that the city had and transferred it to the State of California. They said you don’t need all this money for the trust, it’s coming to us. Oil money. . . . To the city’s credit, they are always trying to find a creative way to spend Tidelands money, and it has been my job to tell them no. . . . So our job has been, under legislation, to report what we spend Tidelands money on to make sure that it’s an appropriate Tidelands use, so that it’s for the benefit of the people of the state of California, not just the citizens of Long Beach.

Closing Arugments Question: Is there anything else you would like to discuss? Johnson: I think this race offers the people a clear choice, and they have the right to make that choice. The question is, do we want to continue as we have for 50 years and basically have this be an inherited position passed on from one city attorney to another, or do the people have the right to choose? I think it’s also what kind of city attorney do you want? If you think leadership is not important, then don’t choose me. I’m the leadership candidate. My position as the city attorney is fundamentally a leader, someone who leads that office and makes those tough calls like when it’s time to settle even when it’s not politically popular, or when it’s time to give pension reform advice even though it goes against major special interest groups. Those are the skills that I believe the city attorney should have. And my opponent, he has been in the city attorney’s office, he is kind of the career guy. So I think the people are really going to decide, what do they want in the city attorney’s office? Do you want proactive leadership? One thing I’m finding in this race is that very few people, when I knock on doors, even know we have a city attorney, much less who the city attorney is. And that’s the truth. Why is that? They’re on the same ballot as mayor. I think part of my role is to go to communities and solve problems and make this a better place. That’s the leadership I’m going to provide. . . . I’m the only one with elected experience. And that’s important because I had four years of saying no to very powerful groups. I think if you ask the question, what are the main issues coming up for future councils, the big issues are not going to be Social Security or child education. The big issues are going to be pension reform, which is going to have to happen again; and fair negotiated contracts, where the city attorney is the advisor and where 90 percent of the money goes. . . . I think the legitimate question is going to be, can my opponent, the handpicked successor of the previous city attorney, stand up and go against his patrons and do the right thing? Parkin: The city attorney position shouldn’t be a political position. I have spent my entire career here. I have no other political aspirations. This would be the culmination of my career. It’s a challenging job. It’s an extremely interesting job to do. One of the reasons I decided to run is because of the folks in the office. We have a great office. I’d like to keep that. We have a wealth of municipal law experience. We don’t do a good enough job of tooting our horn or advocating what our office does and all of the things that we are involved with in the city. But at the end of the day, that’s okay. If we do it right, somebody else can take the credit and get the headlines. The people who work in the city attorney’s office want to work there. They could probably go out and make more money in the private practice. I think that’s clear. This is a complicated city and has a lot of different aspects. So I agree one hundred percent that experience and knowledge are necessary to be able to do this job. Lastly, institutional knowledge is important. We’re going to have five new councilmembers. As city attorney, I am going to sit down with those five people and discuss items such as how you make a motion, how a public meeting is different from a private meeting, etc. They’ve got to be careful who they talk to, when they talk to them, all those things. We want to answer their questions and have them understand the services we provide. We want to make sure that they have what they need from us. If we do that, I think we’re doing a good job. ■

PoliticalWire News Bob Foster Endorses Robert Garcia For Mayor

am endorsing Vice Mayor Robert Garcia for mayor of Long Beach. Vice Mayor Garcia has been a strong partner and has led the efforts to grow the local economy, reform pensions and provide a sustainable future in that regard, and support our public safety personnel. And there is no one better equipped or prepared to lead our city into the future than Robert.” “I want to start off by thanking Mayor Foster for an incredible eight years of leadership,” Garcia said. “He has served Long Beach well and served Long Beach at a time that was very difficult for our local economy and for a lot of the challenges that we had.” The endorsement should help Garcia achieve his goal of making it to the June runoff. More importantly for Garcia, Foster has proven he can raise a lot of money, which should help offset the money that is expected to be poured into the race by the state and county Democratic parties in support of Bonnie Lowenthal. Garcia is also a Democrat, as is Foster and mayoral candidates Doug Otto and Gerrie Schipske. Foster’s backing should also remove part of the sting for Garcia in not receiving the support of Long Beach Firefighters Local 372, which, in a surprise, opted to back Damon Dunn. The Foster endorsement most likely impacts Lowenthal the most, possibly pulling votes from her to Garcia. There should be little if any impact on Dunn, Otto and Schipske.

Upcoming Debates/Forums • March 6 – 1st District City Council Candidates Forum, 6:30 p.m. at Stevenson Elementary School, 515 Lime Ave. Sponsored by the Long Beach Central Project Area Council. • March 6 – 7th District City Council Candidtates Forum, along with candidates for city attorney and city prosecutor. 6 p.m. at the Long Beach Petroleum Club, 3636 Linden Ave. Presented by the Los Cerritos and California Heights neighborhood associations. • March 8 – This Saturday from 9:30 a.m. to 1 p.m., the 14th Annual Candidate Brunch will be held at the Long Beach Dairy and Creamery Historic Landmark, 167 E. South St. The public is invited. All candidates running for mayor, city attorney, city prosecutor and city council have been invited. The event is hosted by the North Long Beach Community Action Group, Long Beach Dairy and Creamery and the NAACP. • March 19 – A Long Beach mayoral debate, sponsored by the Press-Telegram and the CSULB Journalism and Mass Communications Department, is scheduled in the Beach Auditorium of the Student Union at Cal State Long Beach. Time not announced.

Endorsements/Candidate News • Damon Dunn – The mayoral candidate was endorsed by the Howard Jarvis Taxpayers Association and by Jon Meyer, a member of the Long Beach Board of Education. • Robert Garcia – The mayoral candidate was endorsed by Lt. Gov. Gavin Newsom and the Los Angeles County Young Democrats. • James Johnson – The Long Beach City Attorney candidate was endorsed by Los Angeles Mayor Eric Garcetti. • Charles Parkin – The Long Beach City Attorney candidate was endorsed by former 3rd District councilmember, Frank Colonna. • Jim Lewis – The 3rd District City Council candidate was endorsed by former Long Beach Police Chief Carl J. Calkins and by Mick Ukleja, president and CEO of LeadershipTraQ and founder of the Ukleja Center for Ethical Leadership at Cal State Long Beach. Jean M. Benson, a councilmember and former mayor of Palm Desert, has endorsed Lewis, as has another former mayor and councilmember from the city, Cindy Finerty. On March 10, from 5:30-7:30 p.m., Lewis is hosting a wine tasting at Gladstone’s restaurant at Rainbow Harbor. • Roberto Uranga – The 7th District City Council candidate opened his campaign office at 482 W. Willow St. For more information and office hours, call 562/544-7163. • Rex Richardson – The 9th District City Council candidate was endorsed by the Long Beach Register and the Sierra Club. • Sunny Zia – The 1st District Community College Board of Trustees candidate was endorsed by the Los Angeles/Orange County Building and Construction Trades Council. • Stella Ursa – The 3rd District Community College Board of Trustees candidate was endorsed by HONOR PAC, the Latino/a LGBT Political Action Committee, and by Green Technology industry members Clay Sandidge and Rose Tourje. • Megan Kerr – The 1st District Board of Education candidate was endorsed by former Long Beach mayor, Beverly O’Neill. • Uduak-Joe Ntuk – The 3rd District Board of Education candidate was endorsed by Compton Mayor Aja Brown, the Los Angeles County Federation of Labor and the Los Angeles County Young Democrats. • Juan Benitez – The 3rd GET ALL THREE FOR FREE . . . District Board of Education candidate was endorsed by UNITE HERE Local 11. • Harbor Trucking Association – The group that represents 60 percent of drayage trucking companies serving the twin ports, has endorsed Garcia for mayor. It also announced the following endorsements in the city council races: Lena Gonzalez, 1st District; Jack Rosenberg, 3rd District; Stacy Mungo, 5th District; Roberto Uranga, 7th District; and Rex Richardson, 9th W WWW.LBBUSINESSJOURNAL.COM WW.LBBUSINESSJOURNAL.COM District. ■


On February 25, during a press conference at the Colorado Lagoon, Mayor Bob Foster confirmed what many in the community had suspected for months: he endorsed Robert Garcia to succeed him as mayor. Garcia was elected to represent the 1st District on the Long Beach City Council, and currently serves as vice mayor. Foster said, “When I made the decision not to run for reelection, I knew that there was one person that I trusted to keep us on track and to bring new ideas and energy to city hall. Today I


Photograph by the Business Journal’s Thomas McConville

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ENCORE – PEOPLE IN THE NEWS 26 Long Beach Business Journal General Counsel Named At Moffatt & Nichol – David W. Huchel has been named general counsel for Long Beach-based Moffatt & Nichol. He has more than 23 years in construction law, civil litigation, dispute resolution and mediation. Huchel most recently served as vice president and chief counsel for AECOM. He was admitted to the California Bar in 1990 after earning his Juris Doctor degree from the University of Pacific, McGeorge School of Law. Moffatt & Nichol, with 30 offices nationally and internationally, is involved in a variety of areas including coastal, environmental and water resources, marine terminals, urban waterfronts and marinas, energy, inspection and rehabilitation, and transportation, bridges and rail. Two New Staffers At P+R Architecture – David Sheldon and Bee Rarewala have joined Perkowitz + Ruth Architects, a fullservice international architecture firm based in Long Beach. Sheldon serves as the director of business development and Rarewala as director of marketing. Sheldon oversaw business development for nearly 12 years for the Americas, Europe, the Middle East and North Africa for Jerde Partnership. He also served as a designer with the environmen-

March 4-17, 2014 tal and design firm EDAW (now AECOM). Among his responsibilities is to serve as a “liaison between the clients and members of the design team to ensure the client’s goals and vision are being met.” Rarewala has more than 14 years of experience in the architecture, engineering and construction industry, including working at Yazdani Studio of Cannon Design and with SmithGroupJJR. She provides “strategic oversight for the growth and brand management of P+R, while advising senior leadership on innovative approaches for cultivating market smart strategies and business practices.” The SimpleDeal App – Earlier this year, entrepreneur James McKinney, founder owner of and SimpleDeal, launched a new mobile app aimed at helping small The businesses. SimpleDeal App enables Southern California residents to point and shoot their smart phones for immediate dining deals. The app is free for users (, while restaurants pay a monthly fee to be included. The app allows you to point and shoot your smart phone at a restaurant, prior to entering it, to learn about current deals the establishment is offering. If the restaurant is not a partic-

Bradon Carrillo, left, and Trauger Ralston, both principals with Lee & Assocates’ Los Angeles-Long Beach office are the newest company shareholders for the broker-owned commercial real estate office. “Brandon and Trauger’s new shareholder positions are representative of the Lee business model, where each broker earns ownership in the firm through hard work, determination and excellent customer service,” said Gregory Gill, president of the Lee & Associates L.A.-Long Beach office. “Their impact in their respective areas thus far has been significant, and both continue to be outstanding brokers.” Carrillo has more than nine years of commercial real estate experience. He joined the firm in 2009 as a senior associate. Ralston join the firm as an associate in 2010. He has more than eight years of commercial real estate experience. (Photograph by the Business Journal’s Thomas McConville)

ipant, the app guides you to the nearest restaurant that is. McKinney expects to eventually go nationwide. Former Local Art Executive Joins Nonprofit – Joan Van Hooten, who has been involved in leadership roles with several Long Beach arts organizations, has been named interim executive director of GrowingGreat in Manhattan Beach. The announcement was made by the Third Sector Company, which places interim executives in nonprofit operations until a permanent replacement is hired. GrowingGreat is a nationwide communitybased nonprofit nutrition education organization “dedicated to inspiring children and adults to adopt healthy eating habits, decreasing the risk of obesity and disease.” Leadership Award To LBCC’s Ortiz – The James Irvine Foundation Leadership Award is being presented to Long Beach Community College District Superintendent/President Eloy Ortiz Oakley. The award, in its ninth year, recognizes and supports “individuals who are advancing innovative and effective solutions to significant challenges in California.” Oakley is being honored for Promise Pathways – “a program that is greatly increasing community college students’ completion of transfer-level courses through better placement and enrollment strategies.” Oakley is one of six individuals being honored. Each receives $125,000 “in support and assistance in sharing their promising approaches with policymakers and practitioners.” The James Irvine Foundation is a private, nonprofit grantmaking foundation “dedicated to expanding opportunity for the people of California to participate in a vibrant, successful and inclusive society.” Mark C. Doyle, a partner with Tredway Lumsdaine & Doyle, LLP, helped establish his client’s right to inheritance under German law to this painting, Max Liebermann’s ‘Summer Evening on the Alster’ (1910). The painting was confiscated by the Nazis in August 1941 and “shuffled through private buyers and galleries for nearly half a century.” The painting sold February 5 for more than $1.4 million. (Sotheby photograph)

2014 Members For Community Hospital Foundation Board – John Koenig of The Koenig Companies is the new chair of the 22-member Community Hospital Long Beach Foundation. Also on the seven-member executive committee are Vice Chair Ross Riddle of South Coast Shingle Company; Treasurer Jeff Wimbish of Kensington Investment Counsel; Secretary Kit Katz of St. Mary Medical Center; Andrea Caballero of Catalyst For Payment Reform; Brendan Diette of Northwest Mutual; and Suzanne Nosworthy. Use Of Force Advisory Committee Members Named – The Long Beach Police Department (LBPD) has announced the members of the newly-formed LBPD Use of Force Advisory Committee. The group was formed to “provide a variety of community perspectives on the police department’s use of force policies and procedures.” The committee does not serve as a review board for individual use of force incidents. The members are: Peter Bibring; Sandy Cajas, Wayne Chaney, Jr.; Marc Greenberg; Greg Meyer; Alex Norman; Sara Pol-Lim; Jessica Quintana; and Mort Stuhlbarg. EPA Honors Boeing – The Boeing Company received the Climate Leadership Award from the U.S. Environmental Protection Agency for its “success in managing and reducing greenhouse gas emissions.” Through the Climate Leaders program, Boeing set a goal of reducing absolute emissions from its U.S. operations by 1 percent from 2007 to 2012 and surpassed it. Among its emission reduction programs, Boeing uses hydroelectric and renewable energy sources for nearly half of its total domestic electricity consumption. ■

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Long Beach Business Journal 27

Celebrating 40 Years

Paul Tracy crossing the finish line in 2004, and later on the podium at right

(Continued From Page 1)

racing series, the Indy Racing League (IRL). The racing world took notice, but for CART teams and drivers it was business as usual. “Little Al” came back in 1995 to win his sixth victory on the streets of Long Beach, beating Scott Pruett and Teo Fabi to the checkered flag. The race featured a young Canadian driver, Jacques Villeneuve, the son of ex-Formula One star and winner of the 1979 Toyota Grand Prix of Long Beach, Gilles Villeneuve. The young Villeneuve would go on to win four races, including the Indianapolis 500, and capture CART’s 1995 series championship. The fledgling IRL made its debut in 1996 with just three races, all ovals on U.S. soil and with mostly American drivers. But, the drama was building: IRL boss Tony George all but eliminated CART drivers from the centerpiece Indianapolis 500 – and fostered years of bad blood – by guaranteeing the top 25 of 33 starting positions would go to IRL drivers, known as the “25/8 rule.” Overall, however, CART, remained the clearly dominant series. Jimmy Vasser won the 1996 Toyota Grand Prix of Long Beach, edging out Parker Johnstone and Al Unser Jr. in a race in which foreignborn drivers filled out half the 28-car starting field. Vasser went on to win the series championship. The following year a young Italian, Alex Zanardi, stood the CART world on its ear. He won at Long Beach in a race that featured six lead changes, then won four more races to win the series title. Zanardi came back to repeat in 1998, winning not only here but six more times to capture his second straight CART championship in a year that featured new drivers, new chassis, new engines and fully two-thirds of the Long Beach starting field from outside the U.S. It was also the farewell appearance at Long Beach for popular two-time series king Bobby Rahal. No CART drivers appeared in the IRL’s Indianapolis 500 race . . . and would not run at Indy again until 2000. Meanwhile, the IRL was slowly expanding, adding races at such high-profile venues such as Texas Motor Speedway and Charlotte Motor Speedway. In 1999, another rookie – Juan Pablo Montoya – burst on to the CART scene with a convincing win at the 25th Toyota Grand Prix of Long Beach in front of more than 102,000 fans. His win, in only his third start, kicked off a championship year for the young Colombian, who went on to win seven more races. (After a stint in Formula One and seven years in NASCAR racing series, Montoya will return to Long Beach April 11-13 driving the #2 Team Penske entry.) Paul Tracy won his second Toyota Grand Prix of Long Beach in 2000 and Helio Castroneves took the checkered flag the following year. In 2002, Michael Andretti took home his second Long Beach victory . . . but things had begun to unravel in the CART camp. One powerful team, headed by owner

Al Unser, Jr., 1995 (Tim Owens photo)

Michael Andretti, center, 2002 (Scott Grasso photo)

Al Unser, Jr., 1995

Roger Penske, had already left the series to join the Indy Racing League, and two more, Target Chip Ganassi and Andretti Green Racing, followed after the 2002 season. More importantly, the series lost its major sponsor – FedEx – as well as engine manufacturers Toyota and Honda, to the IRL. As a result, CART filed for bankruptcy after the 2003 season, with a trio of car owners – Kevin Kalkhoven, Gerald Forsythe and Paul Gentilozzi – gaining the series assets over a bid from Tony

George. The trio re-branded the series the Champ Car Open Wheel Racing Series, later changed to the Bridgestone Presents the Champ Car World Series powered by Ford in 2004. On our city streets, Paul Tracy reeled off two straight wins, in 2003 and 2004, amid even more defections . . . most notably Team Rahal and Fernandez Racing, who jumped to the IRL just days prior to the 2004 Long Beach race! From 2005 through 2007, a young driver from LeMans, France – Sebastien

Bourdais – made Long Beach race fans temporarily forget about the off-track political circus with three straight convincing victories. But, the series was on its last legs. As a result, 2008 would be another year of transition in Long Beach, with one era ending and a new one beginning. ■

To download the circuit map and the ticket brochure, visit:

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March 4-17, 2014 Section A