1_LBBJ_Sept16_SectionA_LBBJ MASTER LAYOUT 9/16/14 9:46 AM Page 1
ege The Coll s es Of Busin ion trat Adminis B At CSUL
Health W
ise Gynecolo gic Canc er Awarene ss Month – Learn Th e Signs And Sym ptoms O f These ‘S ilent Kille rs’ See
g On A Embarkin o Learn T y e Journ ting ut Marke More Abo ge 4 See Pa
Page 22
lbbusinessjournal.com
September 16-29, 2014
Fortune Names Long Beach CEO Julia Huang Among Top 10 Most Promising Women Entrepreneurs In U.S.
259 Parcels State Agency Finishing Review Of Former Long Beach RDA Properties ■ By BRANDON FERGUSON Staff Writer or the past couple of F years, 259 parcels across the city have sat dormant and unused, remnants of the city’s redevelopment era. Now, after a lengthy state review, that may be about to change. According to H.D. Palmer, a spokesman with the California Department of Finance (DOF), the
Long Beach entrepreneur Julia Huang has been selected by Fortune as one of the top 10 most promising women entrepreneurs in 2014. Huang is founder and CEO of the Long Beach-based interTrend, an advertising firm focused on an Asian American audience, and Imprint Venture Lab, an incubator for and investor in creative properties. Huang, pictured above at her temporary offices while her new headquarters are being completed, founded both companies about 20 years ago. Fortune selected Huang from a pool of 150 founders of companies with earnings in the $1 million to $25 million range. “The process is quite rigorous,” Huang told the Business Journal. After she was nominated, she was required to send information about herself and her businesses to Fortune. “They spent quite a bit of time to select the winners,” she recalled. While there are many female entrepreneurs who are successful financially, she said, Fortune sought to identify women on the cutting edge. “The basic criterion is you have to be innovative, groundbreaking and game changers,” Huang explained. After being nominated by the publication’s readers, the editing staff at Fortune identified Huang and nine other women for the honor. The women are attending Fortune’s annual “Most Powerful Women Summit,” held this year in Laguna Niguel from October 6-8, where they are to be recognized in a special reception. Among the many speakers at the event are U.S. Secretary of Commerce Penny Pritzker, former Congresswoman Gabrielle Giffords, actress Goldie Hawn and Berkshire Hathaway Inc. Chairman and CEO Warren Buffett. Huang called the event “iconic.” (Photograph by the Business Journal’s Thomas McConville) – Senior Writer Samantha Mehlinger
Financing Challenges Business Faces Hurdles In A Slow-Growth Economy; Silver Lining – Interest Rates Expected To Remain Steady ■ By STEVE STELPFLUG Contributing Writer t begins with an idea. It may have come as an inspiration, a passion, desperation, or simply an opportunity from left field. Every entrepreneur has a reason for wanting to start his or her business but, as almost every successful business owner will attest, financing is the key to launching, growing and sustaining any venture.
I
From the start-
“The first thing any entrepre-
obtaining a business loan in today’s marketplace can present a daunting challenge. According to David Park, senior vice president and group manager, business banking at City National Bank, raising start-up money is one of the biggest hurdles when trying to launch a business.
is to have a business plan” Park
The Latest up to the estab- neur needs to do before he or she On Bitcoins lished company, begins to look for start-up funds
Long Beach Business Journal 2599 E. 28th Street, Suite 212 Signal Hill, CA 90755-2139 562/988-1222 • www.lbbusinessjournal.com
See Pg 19
PRSRT STD U.S. POSTAGE
PAID Long Beach, CA PERMIT NO. 254
(Please Continue To Page 17)
Job Market Remains Tough, California Economy Lagging ■ By MICHAEL GOUGIS Contributing Writer he nation’s economy is expected to increase its rate of recovery over the next several years, but finding jobs for workers displaced by robots and automation will remain a stubborn challenge, according to UCLA researchers. The most recent UCLA Anderson Forecast for the Nation, released last week, projects a gross domestic product improvement of 3.1 percent for 2015 and 3.5 percent in 2016. That is expected to generate an average payroll growth of
T
League Of Women Voters Asks: Why Isn’t Long Beach Voting?
nly about one-fifth of regO istered voters in Long Beach voted in the election in June, leading the Long Beach League of Women Voters to decide to hold an event this Saturday, September 20, examining why residents aren’t voting
(Please Continue To Page 10)
UCLA Forecast
Voter Turnout
■ By SAMANTHA MEHLINGER Senior Writer
agency is wrapping up its review of the city’s long-range property management plan (LRPMP), meaning residents could soon see a surge in new developments citywide. Palmer told the Business Journal that DOF staff expects the review process to take another four to eight weeks. “They’ve finished up their initial review. Staff advised me they’re probably going to be get-
and what may be done to increase voter turnout. While he may not be able to answer their first query, Long Beach City Clerk Larry Herrera may have a solution to increase voter turnout: voting by mail only. He is taking a proposal to the Long Beach City Council Elections Oversight Committee (Please Continue To Page 16)
Focus On Business & Education: See Section B
230,000 per month, driving the overall unemployment rate down to 5.3 percent at the end of 2016. Still, California will struggle to overcome a loss of relative competitiveness as its infrastructure is simply overloaded, driving businesses elsewhere, the forecast director says. (Please Continue To Page 15)
Water Rates MWD Raises The Price Of Water; Costs Trickle Down ■ By BRANDON FERGUSON Staff Writer ipple effects from the R Metropolitan Water District of Southern California’s (MWD) ever-increasing rates continue to impact Long Beach residents, a trend that’s likely to continue in the coming years. As part of its fiscal year 2015 (FY15) budget, the Long Beach Water Department, which purchases water from MWD, proposed a rate increase of four percent, citing annually increasing MWD rates. The Long Beach department also predicted the city (Please Continue To Page 14)
1_LBBJ_Sept2_SectionA_LBBJ MASTER LAYOUT 9/14/14 4:19 PM Page 2
INSIDE THIS ISSUE 2 Long Beach Business Journal
September 16-29, 2014
3 Newswatch 4-City Council Okays FY15 Budget 4-Civic Center Process To Include More Public Involvement 6-Long Beach City Hall News In Brief 6-Ramona Park Apartments Open In North Long Beach 9-Major Shoe Retailer Coming To Pine Avenue 10-Former RDA Properties Under Review, Continued From Page 1 11-Mayor Garcia Appoints Tracey Egoscue To Harbor Board 12-Governor Signs Paid Sick Leave Mandate 14-Water Rates, Continued From page 1 14-Boeing Opens Commercial Airplanes Operations Center In Seal Beach 15-UCLA Anderson School Forecast, Continued From Page 1 16-League To Hold Meeting September 20 On Voter Turnout, Continued From Page 1
17 Financial Services Industry 17-Financing Challenges, Continued From Page 1 19-Bitcoin Expected To Grow In Popularity 20-Wells Fargo Rolls Out Startup Creation Program 21-Credit Union Membership: Fastest Growth Since 2000
22 Perspective Realty Views Older Americans Housing Shortage By Terry Ross Effective Leadership Snowmen Fall From Heaven . . . Unassembled By Mick Ukleja HealthWise September Is Gynecologic Cancer Awareness Month – Learn Signs And Symptoms By Dr. Phillip DiSaia Third Sector Report Everything I Needed To Know About Fundraising I Learned From An Ice Bucket By Jeffrey Wilcox
Section B Focus On Business & Education • Obtaining A Master’s Degree: A Luxury Or Necessity? • Schools, Pacific Gateway Partner With Business On Jobs • New Transportation School To Open At Douglas Park Steve Stelpflug was 20 years old when he joined South Coast Publishing in 1985 as its first staff writer. He helped launch South Coast Business Magazine. Two years later, the Long Beach Business Journal was born and Stelpflug continued as one of its principal writers until 2002. Twelve years later, Stelpflug has returned to the Business Journal as a contributing writer. Welcome back Steve!
GET ALL THREE FOR FREE . . .
DIGITAL DIGIT TAL
edition
W WWW.LBBUSINESSJOURNAL.COM WW.LBBUSINESSJOURNAL.COM
1_LBBJ_Sept2_SectionA_LBBJ MASTER LAYOUT 9/14/14 4:10 PM Page 3
1_LBBJ_Sept2_SectionA_LBBJ MASTER LAYOUT 9/14/14 4:10 PM Page 4
NEWSWATCH 4 Long Beach Business Journal
City Council Okays FY15 Budget
Embarking On A Journey To Learn More About Business Structured, firsthand encounters make learning about non-US business practices an important component of MBA programs. In the second year of the Saturday MBA program, after students complete 7 months of courses and training in Sustainability and the By Dr. Ingrid Martin, Faculty, Department Business Organization we of Marketing go overseas. This year the destinations were Madrid and Lisbon, two capitals that are slowly recovering from the European debt crisis. The focus was to learn how organizations operate within the EU and global guidelines for sustainability as well as to compare these organizations with similar organizations in the U.S. Companies are selected based on their location, their focus on sustainability within the organization, and their willingness to spend time with our students. MBA teams analyzed three very different organizations selected to maximize the exposure of the students to various business models. We visited Syngenta (www.syngenta.com/) in the agribusiness industry that markets seeds and agrochemicals and conducts biotechnology and genomic research. Next, we toured Factum Arte (www.factum-arte.com), describing itself as “… team of artists, technicians and conservators dedicated to digital mediation - both in the production of works for contemporary artists and in the production of facsimiles as part of a coherent approach to preservation and dissemination”. These organizations were direct opposites of each other on many dimensions. These major differences allowed students to learn about sustainability and engaging in “business” but in very different ways with very different foci. Steve Gordon (MBA student) stated “The international trip was invaluable .... We saw first-hand how a variety of businesses operate and adapt to the local culture, economic conditions and regulatory environment. … lead to a deeper understanding of how business 'works' and the recognition of shared challenges in areas such as globalization, austerity and sustainability.” We visited the Port of Lisbon with the students comparing their sustainability practices to those of the Port of Long Beach. The differences between the two ports brought into clear focus the strengths of the POLB as a “Green Port”. Kerissa Kelly Slaten (MBA student) stated that “My MBA team was ecstatic when we met with the Port of Lisbon. We had completed a sustainability project with the POLB so it was wonderful to connect the industry across the globe.” (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.) ■
Councilmembers Set Aside Nearly $4 Million To Split Amongst Themselves To Use In Their Districts ■ By BRANDON FERGUSON Staff Writer After two months of staff recommendations, presentations and community meetings, the Long Beach City Council approved the fiscal year 2015 (FY15). The budget was passed unanimously by the council on September 2, a week earlier than expected. While the $3 billion budget is made up of multiple funds, $401 million comprises the general fund, which provides for critical city services such as police, fire and libraries. The FY15 budget is slated to pay for improvements to an antiquated sprinkler system in Heartwell Park, fund police and fire academies, as well as provide for district-wide infrastructure upgrades. Also adopted were seven budget proposals made by Mayor Garcia soon after he took office in July, including a recommendation to put $2 million from any FY14 surplus into the CalPERS stabilization fund. A recommendation by City Manager Patrick West to provide a strategic investment of $2.2 million for police overtime was also approved. “The council adopted a responsible and thoughtful budget which will put additional funds in our reserves, create a new economic development department, and provide added support to our libraries,” Garcia said in a statement. During the more than two-hour budget hearing on September 2, the city council unanimously adopted a series of last-minute changes recommended by the council’s threemember budget oversight committee (BOC), diverting $3,850,000 from reserve funds, and distributing the money equally (about $477,777) among the nine districts for infrastructure improvements and park programs. Third District Councilmember Suzie Price made a substitute motion to reduce that amount by $300,000 and divert those funds instead to police overtime to deal with residential burglaries. But, after several minutes of council discussion, Vice Mayor Suja Lowenthal made a second substitute motion to instead provide $350,000 from the FY14 yearend Uplands oil surplus to specifically fund police response to residential burglaries. Included in the motion was the use of $152,000 to be put toward upgrades to the city’s phone system to help implement a new language access policy. Included in this amount was $100,000 that was diverted from the city’s artificial turf conversion fund. When the discussion turned to a BOC recommendation transferring oversight of the city’s three park rangers from the department of parks, recreation and marine to the police department, 4th District Councilmember Patrick O’Donnell found himself at odds with his colleagues on the dais. O’Donnell cast the lone dissenting vote against the recommendation, saying he was concerned that increased administrative costs in the police department would negatively effect the ranger program. “I’m not in favor of this. I think this is going to lead to a reduction in ranger patrols of our parks,” O’Donnell said. Fifth District Councilmember Stacy Mungo, herself a Los Angeles County reserve sheriff ’s deputy, argued it made more sense for the rangers, who carry weapons, to be overseen by a law enforcement agency. Parks Director George Chapjian agreed. “It is appropriate for the chief to oversee [the rangers],” Chapjian said. “I don’t have weapons training, and I certainly wouldn’t be able to answer any questions if there was a shooting at the park.” While the city’s elected officials are comfortable with the budget for FY15, tough decisions lie ahead. As people live longer into retirement, the city’s CalPERS costs are projected to increase 87 percent by FY21 – more than $35 million. As retirement costs outpace revenues and new employee agreements loom, the city faces nearly $1.4 billion in unfunded liabilities. In a document outlining the FY15 budget, City Manager West alluded to the possibility of implementing service reductions beginning in FY17.
September 16-29, 2014 Mayor Garcia said in a statement that prudent financial decisions have put the city in a better position despite an economy that is recovering only slowly. “Despite the lean economic times we’ve been experiencing, this budget puts us in a strong position to manage our liabilities and provide essential services to residents,” the statement read. “We will continue to work hard so that our next budget will put us in an even stronger position.” The new budget becomes effective on October 1. ■
Civic Center Review Process To Feature More Public Involvement ■ By BRANDON FERGUSON Staff Writer Plans to rebuild the center of democracy in Downtown Long Beach just got a little more democratic. During a press conference held last week in his 14th floor office, Mayor Robert Garcia announced there would be more public participation as the city reviews plans to rebuild the civic center. Joined by Vice Mayor/2nd District Councilmember Suja Lowenthal, 1st District Councilmember Lena Gonzalez and city staff, Garcia said that a round of community meetings will be held throughout the city in the coming year – the first being tonight, September 16, at Long Beach City College – to look closer at plans presented by two developers, Plenary Edmore Civic Partners and CiviCore Alliance. Mayor Garcia said the public has a right to be as involved in the project as it wants to be. “This will likely be the most significant public project that is built in Long Beach for a very long time. We only get one shot at doing it right,” he said. A seismic study of the current civic center building that was commissioned in 2006 and updated in 2013 found that a large earthquake could lead to a significant loss of life. Over the years, local blogs, editorials and even councilmembers have questioned the transparency of the city’s plan to replace the building, which was constructed in 1977. Discussions to design a new civic center complex began in earnest in 2007 and, in February 2013, the city council authorized the release of a request for qualifications seeking companies to build, design, finance and operate the new civic center. The project was to include a new city hall building, main library and parking facilities. There has been some discussion that a new headquarters for the Port of Long Beach could be part of the new civic center. In February, the Business Journal reported that then-5th District Councilmember Gerrie Schipske criticized the city for not issuing a request for qualifications (RFQ) for a potential retrofit. But, according to city planners, even with a retrofit, the current city hall could become uninhabitable in the event of an earthquake such as the one that struck Northridge in 1994. According to Garcia, before a team is selected to design the project, there will be a series of meetings. After tonight’s, two are scheduled in October, one downtown and another in North Long Beach. If the council decides to move forward with a preferred proposer for the project, Garcia said there will be another round of community meetings held in each of the city’s nine council districts. In addition, he said, all of the background documents on the project proposals will be released to the public. Councilmember Gonzalez told reporters that, while out and about in her district, she’s fielded frequent comments from residents wanting to be involved in the civic center planning. “I think this new process allows more community input,” Gonzalez said. The new civic center design process is expected to be a public-private partnership. Under the terms of the RFQ, the city has requested the building be constructed at an annual cost not to exceed $12.6 million – the annual amount it costs to maintain the current civic center. Under the terms, the planner would essentially rent the building to the city for a period of 40 years, after which time the property would be owned by the city. A staff member with Garcia’s office didn’t have specific times and locations for the upcoming meetings, but added that they will be announced in the near future. ■
1_LBBJ_Sept2_SectionA_LBBJ MASTER LAYOUT 9/14/14 4:10 PM Page 5
1_LBBJ_Sept2_SectionA_LBBJ MASTER LAYOUT 9/14/14 4:10 PM Page 6
NEWSWATCH 6 Long Beach Business Journal
Long Beach City Hall News In Brief ■ By BRANDON FERGUSON Staff Writer Special Meeting Tonight – Tonight, September 16, the Long Beach City Council holds a special study session to review plans to build a new civic center. The meeting will be held in the Long Beach City College boardroom located at 4901 E. Carson St., Building T, Room 1100. The meeting begins at 4p.m. USS Ranger – Tonight, the council considers a recommendation by 6th District Councilmember Dee Andrews to conduct a feasibility study to bring the USS Ranger, an aircraft carrier, to the Port of Long Beach for use as city landmark. In a memo from Councilmember Andrews to the city council, he explained that the non-profit group, Top Gun Carrier of Long Beach Inc., is interested in collaborating with the city to secure a pier and permanent home port for the USS Ranger. Ordinance On Sales Tax Numbers – At its September 9 meeting, the Long Beach City Council considered a request by 5th District Councilmember Stacy Mungo to direct City Attorney Charles Parkin to draft an ordinance that would allow Mayor Robert Garcia, as well as the chair of the economic development and finance committee, to review city sales tax figures. The stated goal of the ordinance was to help the mayor and other city officials to find ways to increase the city’s sales tax revenues. During council discussion, Councilmember Mungo said the city is leak-
September 16-29, 2014 ing approximately $18 million in sales tax revenue. Lengthy council debate ensued and other members expressed concerns over the proposed ordinance, which would entitle only two of the council’s elected officials to review sensitive business information. Currently, only select members of the city staff are legally authorized to review sales tax revenue information. City Manager Patrick West explained to the council that, if the ordinance was passed, Mayor Garcia and Mungo, who chairs the economic development and finance committee, would be the only two elected officials in the state to have access to such information. Fourth District Councilmember Patrick O’Donnell immediately expressed opposition to the item. “Pretty sensitive information in the wrong hands could do major damage from a liability and also a business standpoint,” O’Donnell said. “If I’m a business coming in to Long Beach and I know that elected officials are going to be seeing my numbers – that they could be potentially shared – I might have concerns about that.” The rest of the council voiced similar opinions, at the same time commending Councilmember Mungo for addressing the city’s sales tax issue and thinking outside the box. Vice Mayor/2nd District Councilmember Suja Lowenthal issued a substitute motion directing city staff to come up with more recommendations on how to address the city’s sales tax issues and return to the council within 60 days. The substitute motion passed unanimously. Tax and Revenue Notes – At its September 9 meeting, the council voted 9-0 to authorize the issuance of $30 million worth of tax and revenue notes. The notes are a cash management tool used by the city to fund cash flow needs during the fiscal year,
allowing the city to have cash on hand for needed expenses while awaiting the receipt of revenues. City staff estimated the revenue note interest costs to be .20 percent. Net cost of the notes was estimated at $150,000, net interest was estimated at $60,000, and issuance cost was estimated at $90,000. Homeless Care – The city council voted unanimously to authorize City Manager Patrick West to apply for continuum of care funding (CoC). Since 1995, the city has applied for CoC to address the issue of homelessness. Funding comes from the U.S. Department of Housing and Urban Development and provides for street outreach services, intake and support services, rapid rehousing and permanent housing retention. The Long Beach department of health and human services is the primary recipient of the funding. The grant award sought will be between $5.5 million and $8 million, to fund activities from July 1, 2015, through June 30, 2016. The CoC system allows Long Beach to provide approximately 1,950 permanent and temporary beds and to serve approximately 5,400 people annually. Pulse Point – Long Beach Fire Department Deputy Chief Richard Brandt gave a presentation to the city council about a new mobile phone application that issues emergency alerts to users when someone nearby is in need of CPR. Known as Pulse Point, the application is linked to fire department dispatch. Those who download the app will be notified if they are in the vicinity of an individual suffering cardiac arrest. Brandt told the council the department expects to roll out the app in the next few weeks. WIC Program Funding – At its September 2 meeting, the council voted unanimously to authorize City Manager West to execute necessary documents to
accept $4,540,982 from the California Department of Public Health for the Nutritional Supplement Program for Women, Infants and Children (WIC). The agreement will cover the period October 1, 2014, through September 30 2015. Assistant City Manager – By a 9-0 vote, the council expressed its desire to be given ample time by City Manager West to review candidates being considered for the position of assistant city manager. Former Assistant City Manager Suzanne Fricke announced her resignation in June. City Manager West appointed Jyl Marden to temporarily fill the position. She is currently not under consideration for the job. The city council is responsible for appointing those who will serve as city manager and assistant city manager. AQMD Appointment – Tonight, the city council will consider Mayor Garcia’s recommendation to appoint 7th District Councilmember Roberto Uranga to the South Coast Air Quality Management District (AQMD) governing board. The AQMD board consists of 13 members representing the counties of Los Angeles, San Bernardino, Riverside and Orange. Magnolia Avenue Improvements – The council authorized, by a vote of 9-0, plans by the public works department to rehabilitate Magnolia Avenue between Pacific Coast Highway and Spring Street. The contract, which is not to exceed $2,933,857, provides for the replacement of damaged gutters, curbs, driveways and sidewalks, as well as the installation of bus pads and modern traffic signals. Brea company Sully Miller was awarded the contract. Airport Evaluation – A contract was awarded by the council to Kleinfelder West Inc., and Kimley Horn and
Ramona Park Apartments – A Senior Living Community – Open In North Long Beach
A former Farmers & Merchants bank building at 3290 E. Artesia Blvd. in the 9th Council District has been converted to a 61-unit, three-story apartment complex for low- and very-low income seniors. The Ramona Parks Apartments “is a great illustration of the city’s commitment to providing modern, safe and affordable living options for all Long Beach residents,” Mayor Robert Garcia said in a statement. The development is a project of Irvine-based WNC & Associates, Inc., a national investor in real estate, which provided $6.9 million in low-income housing tax credit equity to fund the apartments. The project includes 49 one-bedroom and 11 twobedroom units offered to seniors aged 55 and above with household income of up to 60 percent of the area median income. The ground floor serves as a parking garage. Pictured at the September 9 ribbon cutting are, from left: Scott Gayner, WNC executive vice president and chief operating officer; John Thomas, chair, Long Beach Community Investment Co. (LBCIC); Val Lerch, former councilman for the district; William Leach, vice president of public finance, Palm Communities and part of the development team; Lisa Castillo of WNC; Mitch Slagerman, vice president of project development, Palm Communities; Daniel Walker, CEO of Farmers & Merchants Bank; Mayor Garcia; District Councilman Rex Richardson; Stacy McDaniel, vice chair LBCIC; and Graham Espley-Jones, Caroline Kim, Kristine Lamcheck and Tammy Bliss, all of WNC. (Top two photographs by the Business Journal’s Thomas McConville; group photo by Andy Witherspoon)
1_LBBJ_Sept2_SectionA_LBBJ MASTER LAYOUT 9/14/14 4:10 PM Page 7
Associates to provide as-needed airport pavement evaluation. The contract is not to exceed $1,500,000. Maine Avenue Excavations – The council approved, by a vote of 9-0, a recommendation by the public works department for immediate excavations on Maine Avenue between Roble Way and 6th Street, needed for the health and safety of the city. The Long Beach Water Department filed for a discretionary permit to excavate the area, which had recently been slurry sealed and which is currently under an excavation moratorium until December 2015. The water department requested the permit to install new water mains and service laterals to replace existing mains that have been experiencing a high number of breaks. Long Beach Airport – Tonight, the city council considers adopting a plan to continue with the second phase of rehabilitation
of access to taxiways E and F at the Long Beach Airport. If approved, the city will award a contract not to exceed $3,230,930 to Griffith Company of Santa Fe Springs. Ocean Boulevard Improvements – The department of public works is recommending that the city council authorize City Manager West to amend an existing contract with Flatiron Electrical group to modernize three intersections and incorporate advanced communication and control systems, new signal equipment and improved lighting. The amended contract is not to exceed $2,458,010. The three intersections, located on Ocean Boulevard at Cherry, Junipero and Temple Avenues, are equipped with signal equipment that is more than 50 years old. Trash Collection Contracts – The city council is considering awarding contracts to Consolidated Disposal Services Inc. and
EDCO Transport Services to conduct trash service for a period of two years. The amount of the contract is not to exceed $1,540,000. If approved, the city will have the option of renewing the contract for two additional one-year periods.
Other Upcoming Meetings Belmont Pool Update Meeting – City staff will provide an update on the Belmont Pool Revitalization Project this Wednesday, September 17. In January 2013, the pool was closed after being deemed seismically unsafe in the event of a moderate earthquake. For the past two months, a committee comprised of residents, aquatic groups, businesses and other stakeholders has been meeting to discuss community input and develop a recommended design for the new pool. The public is welcome to attend this event and offer input on the pool’s redesign to the stakeholder committee. The meeting
will be held at Will Rogers Middle School auditorium at 5:30 p.m., 365 Monrovia Ave. Marijuana Ordinance – On September 18, the Long Beach Planning Commission considers the latest draft of a proposed medical marijuana ordinance. In September 2013, the city council directed the city attorney’s office to draft a zoning ordinance regulating the location and operation of medical marijuana businesses. The planning commission is expected to provide additional comments on the draft, which requires medical marijuana businesses to possess a conditional use permit and submit a security plan to the city. If approved, the ordinance will also put a limit of five medical marijuana businesses in each of the city’s nine districts. Belmont Shore Parking Meters – On September 18 the Belmont Shore Parking (Please Continue To Page 8)
1_LBBJ_Sept2_SectionA_LBBJ MASTER LAYOUT 9/14/14 4:10 PM Page 8
NEWSWATCH 8 Long Beach Business Journal
City Hall News In Brief (Continued From Page 7)
and Business Improvement District meets to discuss various scenarios for the installation of new parking meters. The meeting will take a closer look at projections for various rate increases and increasing the number of hours parking meters are active. Successor Agency – The oversight board of the successor agency meets on September 22 to discuss the transfer of several government properties that are part of the former redevelopment agency to the city. Many of these are under consideration for use as park space. El Dorado Nature Center – On September 20, El Dorado Nature Center and the City of Long Beach host the 30th Annual California Coastal Cleanup Day. Touted as the largest volunteer event in the state, participants will set to work cleaning up the city park. Last year, 1,000 volunteers removed two tons of trash over the course of three hours. The event begins at 9 a.m. and lasts until noon. Participants are encouraged to bring their own gloves and a reusable bag or bucket. For more information, visit www.longbeach.gov/naturecenter.
Appointment Announced Head Of Marine Operations Named – George Chapjian, director of the Long Beach Parks Recreation and Marine Department, announced the appointment of Elvira Hallinan as manager of marine operations for the city, effective August
September 16-29, 2014 23. Hallinan began her career with the city in 1989 as a management assistant. In 1998, she appointed was administrative officer for the department of library services. After leaving the city to raise a family for a few years, she returned in 2007 working for the department of parks, recreation and marine. She’s has been the acting manager of marine operations since September 2013. “Elvira Hallinan brings years of experience to the position of manager of marine operations,” Chapjian said in a statement. “She has demonstrated the ability to manage a wide range of responsibilities and develop a team of employees who are responsive to the boating community and their unique needs.” The marine operations bureau is responsible for managing the municipal marina system. The largest in the nation, the system is comprised of three marinas, 3,600 boat slips and five launch ramps. The marinas generate $19 million in slip revenue annually. Hallinan holds a bachelor’s degree in sociology and a master’s degree in public administration from the University of Texas at El Paso. “I am very proud of our marina system, and will continue to work to make it the best in the nation,” Hillinan said in a statement. ■
1_LBBJ_Sept2_SectionA_LBBJ MASTER LAYOUT 9/14/14 4:10 PM Page 9
NEWSWATCH September 16-29, 2014
Long Beach Business Journal 9
Major Shoe Retailer Coming To Downtown’s Pine Avenue ■ By SAMANTHA MEHLINGER Senior Writer Shiekh Shoes, a shoe retailer with 140 stores across the West Coast, Southwest and Midwest, signed a 10-year lease for a store at 248 Pine Ave. in Downtown Long Beach. The store is set to open by the end of September with eight to 15 employees, according to a company spokesperson. On September 10, Becky Blair, president of Coldwell Banker Commercial BLAIR WESTMAC, announced she and her associate, Sheva Hosseinzadeh, secured Shiekh Shoes’ lease of a 6,000-square-foot storefront between Outfitters and Starbucks by the southeast corner of Pine Avenue and 3rd Street. This marks the first major nonrestaurant retailer to open on Pine Avenue in Downtown Long Beach in years. Shiekh Shoes is based in Ontario, California, and carries brands such as Puma, Adidas, Nike, Jordan and Converse. The company was founded in 1991. The Pine Avenue location is a bit of a departure from the norm for the company, which has typically opened stores inside malls, according to the company website. Abdul Haleem, vice president of operations for Shiekh Shoes, called Pine Avenue a strategic location for his company. “There is a surge of millenials looking to move to the downtown area, and they are looking to shop close to home,” Haleem told the Business Journal in an e-mail. There are a multitude of multi-family projects underway throughout Downtown Long Beach right now, many of which are geared toward attracting millennial generation tenants. Just down the street from Shiekh, office space within the historic Security Pacific National Bank Building may soon be converted to 180 condominiums, if the Long Beach Planning Commission eventually approves the project. Haleem said his company wanted to provide downtown residents with “the
Becky Blair, right, president of Coldwell Banker Commercial BLAIR WESTMAC (CBC), and Associate Sheva Hosseinzadeh, flank Dev Mani, owner of the 6,000-square-foot retail site at 248 Pine Ave. CBC secured a 10-year lease agreement with Shiekh Shoes, a shoe retailer with 140 locations in the Western U.S., for Mani’s site. Abdul Hareem, Shiekh Shoes’ vice president of operations, said the company wanted to locate in Downtown Long Beach to tap into a growing consumer base of millennials living in the area. The store is expected to open this month. (Photograph by the Business Journal’s Thomas McConville)
opportunity to shop closer to home and get everything they need, from caps to shirts to jeans to shoes.” Nike and Jordan are to be the key brands at Shiekh’s Pine Avenue location, he added. “The interest of a national retailer such as Shiekh Shoes in making such a longterm investment on Pine Avenue really speaks to the revitalization of Downtown Long Beach,” Blair told the Business Journal. “Ongoing encouraging factors also include a falling unemployment rate, the overall improvement of the marketplace, city leaders willing to push for a more business-friendly environment and residential developments that continue to increase in Downtown,” she added. “If things continue the way they have been, we expect to see more of these types of opportunities arise that just years ago did not seem possible.” Kraig Kojian, president and CEO of the Downtown Long Beach Associates, said the DLBA had been actively involved in the process of finding a tenant for the location. “DLBA staff worked collaboratively with the property owner and pre-
sented a variety of options and proposed uses for consideration,” he told the Business Journal, referring to owner Dev Mavi. “Mr. Mavi’s decision to sign Shiekh Shoes brings a national-credit tenant to the heart of Pine Avenue, and we
look forward to their contribution to the downtown community,” he added. Gerardo Aguinis of The Zall Company, based in Denver, represented Sheikh Shoes in the transaction, while Coldwell Banker Commercial the property owner. ■
1_LBBJ_Sept2_SectionA_LBBJ MASTER LAYOUT 9/14/14 4:10 PM Page 10
NEWSWATCH 10 Long Beach Business Journal
September 16-29, 2014
Pictured is a former redevelopment agency property (RDA) located at the intersection of Lime Avenue and Artesia Boulevard. The city currently has 259 parcels that were acquired before the 2012 dissolution of RDA. The state is finishing up its review of the city’s Long Range Property Management Plan for the properties. Once the state review is complete, the city will move forward with plans to develop, or sell the properties.(Photograph by the Business Journal’s Thomas McConville)
Former RDA Properties (Continued From Page 1)
ting back to the successor agency with a couple of follow-up issues,” Palmer said. Following the California Legislature’s dissolution of the city’s redevelopment agency (RDA) in 2012, the state passed assembly bill 1484, which required Long Beach (and all cities which had RDAs) to submit a LRPMP, detailing how its former RDA properties would be disposed. Mike Conway, Long Beach’s director of business and property development, told the Business Journal that, since submitting a LRPMP to the state in October 2013, the city has been legally unable to do anything with those former redevelopment properties. The massive document, which lays out
each of the city’s 259 parcels in detail, was designed to address the various ways each of the properties is expected to be used: whether they’ll be sold, retained for government use, retained for future development, or used to complete transactions stalled by the dissolution of redevelopment. “I’m not anticipating a blanket approval of our plan, but I would be just tickled if they did that,” Conway said. Earlier this month, the Business Journal wrote an article focusing on businesses in the westside industrial area. Tony Rivera, who chairs the Westside Project Area Council, had explained that local companies wishing to expand were becoming frustrated at their inability to utilize former redevelopment properties. Some businesses, Rivera had said, were forced to look
at relocating to cities like Los Angeles and Carson in order to grow. At the time, Conway acknowledged the frustration at not having heard from the state in more than a year. When asked about the delay, DOF spokesman Palmer said the size of the city’s plan was a factor. “It’s one of the larger, long-range property management plans to review – there are more than 250 properties,” he said, adding. “It’s under review; it’s not sitting on a shelf somewhere.” Though it’s uncertain how many revisions of the plan, if any, the state may suggest to the city, staff is ready to move forward with the disposition of the properties. Today, September 16, the succes-
International Trade News In Brief ■ By SAMANTHA MEHLINGER Senior Writer Breakwaters Sustain At Least $20 Million In Damage After Hurricanes – After Hurricane Marie, a storm off Mexico’s coast, sent heavy waves pounding the three breakwaters off the coast of Long Beach for four days in late August, the Army Corps of Engineers determined repairs would cost at least $20 million. The Army Corps, which owns all three breakwaters, said the most damage was done to the 18,500-foot-long middle breakwater protecting the Port of Long Beach. Hurricane Marie caused 11 areas of major damage and 39 areas of significant or moderate damage to that breakwater, the Army Corps reported. In total, 4,125 feet of the breakwater need repairs. The adjacent Long Beach and San Pedro breakwaters also sustained damage, but the cost for those repairs has not yet been determined. On September 4, the Pacific Merchant Shipping Association, which represents businesses at the ports of Long Beach and Los Angeles, sent Rep. Alan Lowenthal and Rep. Janice Hahn a letter urging them to help make repairing the breakwater “a priority issue” for the Army Corps of Engineers. “Absent repairs to the breakwater, the ports of Los Angeles and Long Beach, which handle approximately 40 percent of all international cargo imported into the United States, will be threatened,” the letter stated. Lowenthal sent out a press release on September 10 announcing he, Hahn and Rep. Grace Napolitano sent a letter to the Army Corps of Engineers asking the
sor agency will hold a meeting to discuss a list of financial obligations left over from the now-dissolved RDA as well as the transfer of more than 10 government properties to the city, many of them to be used to develop park space. Once final approval is given, the city also plans to move on the sale of roughly 15 properties throughout the city. “My intention is to stick a for sale sign on them and likely list them with local brokers who we have on call and just dispose of them because they’re too small to be developed,” Conway said. The LRPMP also lists numerous sites designated as future developments. Conway said the city plans to consider the community’s vision for those properties while shoring up the city’s tax revenue base. “We currently have a number of retail sectors in which the City of Long Beach is falling behind the county and state averages for spending. We will likely try to target some of those sectors where we’re lacking in sales tax revenue as uses for those sites,” Conway said. Many of the properties listed in the LRPMP were acquired by the city during redevelopment to reduce blight. Money from property taxes was invested in development projects but, due to budget concerns, the state’s more than 400 redevelopment agencies were dissolved in 2012. According to DOF’s website, property taxes used for development projects through RDA have since been diverted to core public services. ■ organization to expedite repairs to the breakwaters. “The Army Corps has been tremendously responsive from the very beginning of this crisis, but I wanted to make clear that the ports are a critical economic engine in the Southern California region and the breakwater is their first and major line of defense against storms,” Lowenthal said in a statement. Port Budget Approved – On September 2, the Long Beach City Council approved the harbor department’s $858 million budget to operate the Port of Long Beach in the upcoming fiscal year, which begins October 1. Two-thirds of the budget – $579 million – was dedicated to the port’s capital projects, meant to modernize and improve port operations. The largest of these projects are the Gerald Desmond Bridge Replacement Project and the Middle Harbor Redevelopment Project, both of which aim to allow bigger ships to come to the Port of Long Beach. Another $30 million was set aside for programs aimed at reducing the port’s impact on the environment. The budget includes 28 new full-time positions, 20 of which are in the engineering bureau. The port projected $346.8 million in operating revenue for the upcoming year. Retailers Expected To Import At Above-Average Levels – The National Retail Federation (NRF) and Hackett Associates, an international trade consulting firm, anticipated retail imports at West Coast ports would continue to be above average in September as labor negotiations over longshore workers’ contracts continue. The last contract between the International Longshore and Warehouse Union, which represents the workers, and Pacific Maritime Association, which represents port businesses, expired in July and negotiations have been underway since then. ■
1_LBBJ_Sept2_SectionA_LBBJ MASTER LAYOUT 9/14/14 4:11 PM Page 11
NEWSWATCH September 16-29, 2014
Long Beach Business Journal 11
Newly appointed harbor commissioner, Tracy Egoscue, speaks during a press conference after being appointed by Mayor Robert Garcia, left. Port of Long Beach Executive Director Jon Slangerup looks on.
Mayor Garcia Appoints Tracey Egoscue As New Harbor Commissioner ■ By BRANDON FERGUSON Staff Writer On September 9, the Long Beach City Council approved Mayor Robert Garcia’s recommendation that Tracy Egoscue, a Bixby Knolls environmental attorney, be appointed to the five-member Long Beach Board of Harbor Commissioners. Egoscue is the only harbor commissioner who lives west of Redondo Avenue; the other four live in East Long
Beach and are appointments of former mayor Bob Foster. The district in which Egoscue lives, the 7th, is considered the most impacted by port traffic and pollution, much of it caused by vehicles using the Long Beach and Terminal Island freeways. Garcia said Egoscue’s appointment would represent the city’s recommitment to having the greenest seaport in the world. “[Tracy’s] a strong advocate for the environment, an accomplished environmental attorney, a community leader and a person who understands both business and the industry,” Garcia said. Egoscue, who earned her law degree at George Washington Law School and was admitted to the bar in 1997, has worked in
a number of public roles, most notably as an environmental litigator while serving as a deputy attorney general for the California Department of Justice. She also served as executive officer of the state’s regional water quality control board, Los Angeles region, and was executive director of the non-profit group Santa Monica Baykeeper. During her time with Baykeeper, Egoscue oversaw a $5 billion Clean Water Act settlement, in which the City of Los Angeles accepted liability for a series of sewage overflows. The settlement resulted in a 10-year pipeline rehabilitation project. In 2012, she founded the Bixby Knollsbased Egoscue Law Group, which provides counsel on issues ranging from real estate
development to storm water management. Egoscue said she was honored to have been chosen for the position. “What gives me the biggest thrill is the fact that I can use my professional skills and experience to benefit and serve my community of Long Beach,” she said. The other harbor commissioners are President Doug Drummond, a former police commander and city councilman; Vice President Rich Dines, a longshoreman and former union executive; Lori Ann Farrell, the director of finance for the City of Huntington Beach; and Lou Anne Bynum, executive vice president with Long Beach City College and a former chair of the Long Beach Chamber of Commerce. ■
1_LBBJ_Sept2_SectionA_LBBJ MASTER LAYOUT 9/14/14 4:11 PM Page 12
NEWSWATCH 12 Long Beach Business Journal
Governor Brown Signs Paid Sick Leave Mandate Latest Hit Toward Business In A State With A Struggling Economy; Restaurants Heavily Impacted ■ By SAMANTHA MEHLINGER Senior Writer On September 10, Gov. Jerry Brown signed Assembly Bill (AB) 1522 into law, mandating employers to provide paid sick leave to employees working 30 or more days during a year. In the week prior, Brown said in a debate with his opponent, Neil Kashkari, that he would also likely sign Senate Bill (SB) 270, a bill banning the distribution of single-use plastic bags by certain retailers and grocers. The new legislation is causing concern among business groups about the cost to do business and potential impacts on the workforce.
Paid Sick Leave Known as the “Healthy Workplace, Healthy Families Act of 2014,” AB 1522 was labeled a job killer bill by the California Chamber of Commerce (CalChamber) because “It would add to the already growing number of costs for California businesses by requiring both small and large employers to provide their employees with mandatory, protected,
September 16-29, 2014 paid sick leave and face cumulative penalties for potentially innocent mistakes,” the Chamber wrote in a letter of opposition. Beginning July 1, 2015, employers must allow workers, starting on their 90th day of employment, to accrue paid sick days at the rate of no less than one hour for every 30 hours worked. Employers may limit paid sick time to three days per year or 24 hours. The legislation prohibits retaliation or discrimination against employees for requesting paid sick days. The National Federation of Independent Business (NFIB) recently conducted a study of the potential impacts of the bill, concluding that, “Depending on the future rate of inflation, the passage of AB 1522 could result in more than 180,000 jobs being lost in California over a 10-year period and a reduction in real output of $29.6 billion,” according to a statement from NFIB California Executive Director John Kabateck. “Our small business owners, who make up more than 99 percent of the employer community in California, already face an increase in minimum wage, among the highest taxes and more regulations than any other state,” Kabateck said in a statement after Brown signed AB 1522 into law. “This will only serve to eliminate any plans small employers have to grow and expand their businesses.” The potential impacts of AB 1522 on businesses are particularly concerning to the restaurant industry, which relies upon
more flexible scheduling practices than other types of businesses. “The flexible nature of our scheduling processes makes it so that people are able to swap shifts fairly easily and regularly,” Angelica Pappas, spokesperson for the California Restaurant Association, told the Business Journal. The bill would make this practice costly, she said. “A restaurant has to have a certain amount of bodies on the floor or in the kitchen to make it work. So, if somebody calls in sick, with this law the restaurant will essentially have to pay twice; they will have to pay for somebody to stay home sick and they will have to pay for somebody to come in for that shift,” she explained. Associated costs in addition to the recent increase in minimum wage and increasing health care costs may cause many restaurateurs to revaluate their business models, meaning a potential impact to workers, she noted. The association opposed AB 1522. Pappas was also concerned with the bill’s stipulation making it unlawful for a business owner to retaliate or discriminate against employees who take paid sick leave. “If an employee calls in sick and then following that incident the employer changes the employee’s hours for any reason, even if it is for legitimate business reasons, they could be accused of retaliation. That is going to have huge implications for our industry,” she said. “We have our legal team looking at it so we can properly guide our members . . .
because it does seem like it is leaving a lot of businesses vulnerable to lawsuits and litigation.” After signing the legislation, Brown stated his reasoning for his support. “Whether you’re a dishwasher in San Diego or a store clerk in Oakland, this bill frees you of having to choose between your family’s health and your job . . . Make no mistake, California is putting its workers first,” he said. United States House Democratic Leader Nancy Pelosi commented in a press release from the governor’s office as well, stating, “California’s Healthy Workplaces, Healthy Families Act will help lower health care costs, reduce employee turnover, prevent the spreading of illnesses, and support both men and women caring for their families.” Pelosi opened the door to pursuing similar legislation on a national level. “In order to jumpstart the middle class, Congress must now follow California’s lead and guarantee paid sick leave for workers across the entire country,” she stated. Business Journal Publisher George Economides weighed in on the sick pay issue. He said he used to provide six sick days a year until he realized employees were abusing the system, calling in sick when they weren’t. Now it’s three days a year and, he says, the change has worked well. “I understand the arguments for sick pay, but legislators have to understand that most employees, especially younger ones, do abuse the system,” he said, “using sick days for a weekend getaway or to recover from a late night. We’ve seen it all. Young people are generally healthier and rarely get sick, so providing too many days opens the door for abuse. Most public sector jobs provide 12 days a year, which is absurd and a waste of taxpayer dollars. As a small business, we are definitely impacted when an employee calls in sick, and some businessses, especially restaurants and other retailers will be severely impacted by this mandate. The Democrats in Sacramento, few of whom have ever had to meet a payroll, are slowly killing small businesses in California.”
Plastic Bag Ban Supported by grocers and opposed by plastic bag manufacturers, with CalChamber remaining neutral on the issue, SB 270 would ban certain retailers in California from supplying customers with single-use carryout plastic bags. On August 29, SB 270 passed the California Senate with 22 senators in favor, 15 opposed and three votes not recorded. Gov. Brown has not yet signed the legislation, but indicated he might do so when he debated Neil Kashkari, his opponent in the race for governor. Brown has until September 30 to sign the bill into law. If SB 270 does become law, retailers would have to follow detailed guidelines for what bags they would be able to distribute and what manufacturers they must procure them from, or face civil penalties. Long Beach already has similar legislation in place. In place of single-use plastic bags, retailers would have to distribute paper bags, sewn fabric bags or bags made from reusable plastic film. Retailers must charge at least 10 cents for compostable or (Please Continue To Top Of Next Page)
1_LBBJ_Sept2_SectionA_LBBJ MASTER LAYOUT 9/14/14 4:11 PM Page 13
NEWSWATCH September 16-29, 2014 reusable bags, the proceeds of which must “be retained by the store and be used only for specific purposes,” such as educating customers about the law. All allowable bags must meet specific load-bearing requirements and must be procured from manufacturers certified by a third party to meet certain standards, such as those from the American Society of Testing and Materials. Beginning July 1, 2015, the bag ban would apply to full-line retailers earning $2 million in gross annual sales and that sell dry groceries, canned goods, nonfood items and some perishable items. On July 1, 2016, the ban would also apply to food marts, convenience stores, and other smaller retailers selling food and that hold a Type 20 or Type 21 alcohol license. The California Grocers Association supports the legislation, arguing statewide legislation would provide uniformity for grocers to adhere to, while those businesses are currently contending with a patchwork of varying bag ban legislation among cities such as Long Beach. The American Progressive Bag Alliance, which represents bag manufacturers nationwide, opposes the legislation. “I think our primary concern is that this bill has never been about the environment. This is truly a behind-the-scenes deal between big labor and the grocers to scam California consumers out of millions of dollars without providing any public benefit whatsoever,” Mark Daniels, chair of the alliance, told the
Long Beach Business Journal 13 Business Journal. He argued the legislation puts no system in place to ensure revenue from the 10-cent fee on bags would be used for the prescribed purposes, such as purchasing more bags. “I think Californians would be appalled to know this bill initially failed in the Assembly and then, after some political maneuvering by the author, got an unexpected second hearing,” Daniels said, referring to the bill’s failure in the Assembly on August 25. Reconsideration was granted on August 28. “Then it passed narrowly after a widely reported secret agreement was struck between the labor union and the grocers that picked up the laborers’ endorsement. It flipped votes from labor-funded Democrats,” Daniels explained. The United Food and Commercial Workers Union backed the bill after the group supposedly struck a deal with a supermarket chain, various media outlets have reported. “There are 2,000 jobs in the manufacturing of plastic bags in California, and about 30,000 around the United States,” Daniels said, arguing that the bill would shut down factories unable to afford new equipment and would put workers at risk of losing their jobs. “It is beyond California. There are manufacturing facilities in every state in the U.S. that could be affected by what this bill does,” he said. Daniels said he has put in a request to meet with Brown to discuss his industry’s concerns about SB 270, but he has not heard back. ■
1_LBBJ_Sept2_SectionA_LBBJ MASTER LAYOUT 9/14/14 4:11 PM Page 14
NEWSWATCH 14 Long Beach Business Journal
Water Rates (Continued From Page 1)
will likely be required to increase water rates four percent annually through 2018. At a recent city council meeting, Long Beach Water Department General Manager Kevin Wattier was asked to explain the reasoning behind MWD’s rate hikes, which is reporting a healthy financial reserve. Eighth District Councilmember Al Austin seemed incredulous. “So I as I understand it,” Austin said, “they have a pretty robust reserve, yet they’re increasing rates?” Wattier said he was unable to explain the MWD’s reasoning. Rates displayed on MWD’s website show that the price of water sold to Long Beach has increased 12 percent since 2012. Back then, the price tag was $794 an acre-foot. By 2016, the price per acre-foot is expected to climb to $942, a more than 18 percent increase. Wattier explained to the Business Journal that MWD recently announced it had exceeded its own reserve limit by roughly $400 million. Long Beach purchases approximately 40 percent of its water from MWD.s “And despite that, they’re raising rates again next January,” he said. Wattier said that his department has resisted raising its own rates, and absorbed MWD’s increases between 2010 and 2013. But, by 2013, Wattier said, it had become too much.
September 16-29, 2014
About The MWD The Metropolitan Water District (MWD) of Southern California is headquartered at 700 N. Alameda St. in Los Angeles. It has a 37-member board. Its general manager is Jeffrey Kightlinger. The executive team includes 19 positions, two of which are vacant. MWD has about 1,830 employees. Board meetings are usually held the second Tuesday of each month. Following is the MWD mission statement, taken from its website. “The Metropolitan Water District of Southern California is a consortium of 26 cities and water districts that provides drinking water to nearly 19 million people in parts of Los Angeles, Orange, San Diego, Riverside, San Bernardino and Ventura counties. The mission of the Metropolitan Water District of Southern California is to provide its service area with adequate and reliable supplies of high-quality water to meet present and future needs in an environmentally and economically responsible way.” Metropolitan currently delivers an average of 1.7 billion gallons of water per day to a 5,200-square-mile service area. Source: MWD website
“We had to start raising our own rates because we were depleting our reserves too quickly,” he said. Vice Mayor Suja Lowenthal, who’s been a member of MWD’s board of directors
since 2008, told the Business Journal that she introduced a substitute motion at an April 8 meeting of the MWD in an effort to keep rates unchanged. “It really made no sense to me as a policymaker for the City of Long Beach,” she said. “The number of years I’ve been in this role, it seems like an anathema, where you’re sitting on a significant amount in reserve and then you’re asking your customers to pay higher rates,” Lowenthal said. Ultimately, Lowenthal’s substitute motion – which did receive a second – was tabled by other boardmembers, a move that Long Beach’s city attorney’s office said violated procedural rules. “Tabling the substitute motion without debate was a violation of your basic rights as a director to engage in debate and to vote on your substitute motion,” stated a letter written by Deputy City Attorney Richard Anthony to Lowenthal. MWD Spokesman Bob Muir told the Business Journal that his agency’s general counsel also reviewed the board’s vote and decided it was legally valid. When asked why MWD continues to raise its rates, Muir acknowledged the district has benefitted from an unexpected reserve due to higher-thanexpected water sales, but added that future costs loom down the road. “We are pulling more water out of storage, and we will have to replace that stored water at higher overall cost for the region. So the rate action was based on
Met [MWD] planning for the long term,” Muir said. But Wattier argued this isn’t a justification for raising rates, especially considering the amount of money MWD has in reserve. “Yes it’s important that they have money to refill storage when the time comes, but that doesn’t justify them raising rates $60 million when they’ve collected over $400 million already,” Wattier said, adding, “They still have plenty of money to restore storage when the time comes.” Lowenthal further explained that a common reason MWD gives for increasing rates is future infrastructure projects. “Fair enough, we’ll always have large projects,” she said, “but you don’t pay for them up front, you don’t pay for them in cash; you amortize them, you capitalize them over a certain number of years and you plan for that. You don’t keep money in reserve.” Though she admitted her substitute motion hadn’t had enough board support to pass, Lowenthal said she still wanted the opportunity to publicly discuss the issue. While she had the option to legally challenge the MWD’s decision to table her motion, she ultimately decided it wasn’t in the best interest of the taxpayers. “We would have had to throw money at it to challenge them legally. This is the public’s money. Do I just want to make a point? I do want to effectuate change, but I have to pick and choose our battles on behalf of Long Beach,” she said. ■
Boeing Celebrates Opening Of Commercial Airplanes Operations Center In Seal Beach
Lynne Thompson, vice president of customer support, Boeing Commercial Aviation Services, and Stanley Deal, senior vice president, Commercial Aviation Services, Boeing Commercial Airplanes, introduce Boeing employees and guests to the new Commercial Airplanes Operations Center in Seal Beach on September 12. The new center serves as the global hub for around-the-clock customer service for the 900-plus operators of the more than 13,000 Boeing aircraft currently in service – a number that is expected to grow over the next two decades based on company projections. According to a company statement, “Boeing’s comprehensive portfolio of commercial aviation services – known as the Boeing Edge – brings unparalleled value and advantage to customers in an increasingly competitive industry. The Boeing Edge comprises the industry’s broadest range of customer support products and services in four capabilities: material services; fleet services; flight services; and information services.” Boeing’s system stretches across the globe with eight spare parts distribution centers, 19 flight and maintenance training campuses, and a network of component repair services. The new operations center also allows Boeing to monitor airplanes in real time as they fly. (Photograph by the Business Journal’s Thomas McConville)
1_LBBJ_Sept2_SectionA_LBBJ MASTER LAYOUT 9/14/14 4:11 PM Page 15
NEWSWATCH September 16-29, 2014
UCLA Forecast (Continued From Page 1)
“It is the absence of a finding that we think is most significant,” says Edward E. Leamer, director of the forecast and professor of Global Economics and Management at UCLA. “We think that the economy over the next few years is going to behave in a way that is rather similar to the way that it has behaved in the past year,” Leamer says. “We’re certainly anticipating interest rate increases, starting in March of next year,” he continues. “That will be the major change. But in terms of the job market, and GDP growth, we expect the same, which is a positive outcome, but not an extraordinarily strong one.” While the outlook is positive, the recovery still has not addressed the sticky, difficult problem of putting people back to work, Leamer says. “We think we have a workforce development problem. We have too many Americans who cannot compete effectively next to the robots out there who are doing so much of the work,” Leamer says. “As a result, we are very persistent in the number of Americans who we cannot put back to work, who cannot find a job. A strong economy comes when you put people back to work. In this recovery, we are not putting people back to work.” Leamer says automation has done away with jobs, and those former employees have skills that are, in a word, worthless in the modern economy. “In the future, there will be two classes of workers. There will be those who compete against the robot, essentially doing the same task, and those who use the robots, the computers, in order to create value. It will be the second group who will be exceedingly well-paid,” he says. “Competing against a robot is rough. It’s rough competition. They work long hours, they don’t care about working conditions, they never join unions, and they get more and more productive each year.” The most recent recession illustrated those fundamental changes in the workforce, and the economy is still trying to catch up to those changes – which, make no mistake, are huge and deeply disruptive, says the head of a leading international job outplacement firm. “Automation and technology in every era transform the labor market. But this era is going to be written into the history books as representing a quantum leap in technology,” says John Challenger, CEO of Challenger, Gray & Christmas, Inc., the Chicago-based global outplacement and career transitioning company. “The most recent recession has been the deepest in terms of labor losses since the Great Depression,” Challenger says. “We lost 8.5 million jobs – but due to automation and computerization, we produced very nearly the same amount of goods and services without those people in the job market.” Challenger and Leamer say that in-person, service-oriented and intellectual services will mark the desirable positions in the future. “Education has to catch up,” Challenger says.“There’s all kinds of craftwork to be
Long Beach Business Journal 15 done,” Leamer says. “You’re still going to need plumbers and carpenters. They’re going to be helped by the equipment, but there are still going to be great jobs out there for people who are skilled. There are still a whole bunch of things out there that humans do better than computers, although the range is constantly shrinking.” Leamer says the economy is strong enough that interest rates will begin to rise, and that will mean an increase in the vehicle and home markets. “We think the 10-year treasury will begin to elevate at the beginning of the year. We think the economy will be strong enough and the interest rates have been held low long enough that they will eventually give in and start to raise interest rates.” But the housing market will remain steady and strong, Leamer says. “We see improvement there. We see the rate of building continue to increase in a nice steady fashion,” Leamer explains. “But we’re nowhere near the bubble market that we saw in 2003-2004. We’re seeing fundamental changes in that market. We’re seeing shifts from single-family to multifamily housing. People are opting for different lifestyles. The younger generation has very low employment rates, heavy debt – they are not in the home ownership mode and will not be there for a long time.” California will have to address its physical overcrowding, as congestion is now an issue driving businesses elsewhere, Leamer says. “California benefited from an incredible climate for a very long period of time,” Leamer says. “It built up an attitude that we didn’t have to be that friendly to attract people and business to the state. But that advantage has been completely dissipated by congestion, to a large extent, and by a businessunfriendly attitude by our state and local government. We’ve got to recognize that the advantage we have in the economy isn’t decisive anymore. We have to start behaving ourselves when it comes to attracting businesses. “We can’t have free access to the streets anymore. We can’t build our way out anymore. We have to have charging algorithms, where you have a transponder on your car and when you drive out of your garage in the morning, it starts charging you to use the streets.” And locally, Leamer sees two economies emerging – the well-paid intellectual economies along the coasts, and the underpaid physical labor economies just off the beaches of California. “The regional breakdown is east-west,” he continues. “It’s the innovative, intellectual assets that are being deployed along the coast, in Santa Monica, in Venice, the so-called ‘Silicon Beach.’ There’s biotech further south, there’s still some aerospace. But as you go further east, the economic activity gets weaker and weaker. Even 10 miles east of Santa Monica, you’re in a different area in terms of income and economic activity. “You’ve got relatively well-off, aging Anglos pushed up against the ocean, and the hard-working but not-well-paid Hispanics in the interior. And the folks on the coast dictate the environmental and work force regulations.” ■
1_LBBJ_Sept2_SectionA_LBBJ MASTER LAYOUT 9/14/14 4:11 PM Page 16
NEWSWATCH 16 Long Beach Business Journal
September 16-29, 2014 League of Women Voters of Long Beach Area members Jaenice McConnell (left) and Bea Antenore met with Dr. Craig Hendricks, a former Long Beach City College professor, to discuss their upcoming event about the importance of voting. The free, 10 a.m., September 20 event, is at the Los Altos Public Library, 5614 E. Britton Dr. (Photo by the Business Journal’s Thomas McConville)
Voter Turnout (Continued From Page 1)
on October 17, chaired by 1st District Councilmember Lena Gonzalez. Herrera is proposing a pilot program in which all votes in a special municipal election would be cast by mail. “The city council would have to adopt an ordinance authorizing it,” he explained. A special municipal election would seem an ideal opportunity since special elections typically attract an even smaller voter turnout – around 10 percent, according to Herrera. Then, if the results of that election are promising, a change to a vote-by-mail system could follow. A possible test run might be approaching if 4th District Councilmember Patrick O’Donnell is elected to the state assembly in November and a special election is held early next year to fill the vacancy. “This pilot in special elections would at least give us some data and some experience in how successful vote-by-mail elections could be conducted in Long Beach,” Herrera said. “Based on our success . . . it would be for the council to make the policy call as to whether to conduct [voting by mail] in state and citywide elections.” Why could voting by mail be a solution? As the Business Journal reported in June, approximately 51.9 percent of Long Beach voters voted absentee rather than showing up to the polls. “That basically says people who are engaged in a municipal election are the ones who vote by mail instead of voting at the polls,” Herrera said. Whether or not
voting by mail would increase voting among infrequent voters is up in the air, he added. For the League of Women Voters of Long Beach Area, the low voter turnout in the past election was very disturbing, Janeice McConnell, a League member, told the Business Journal. She and her fellow League member, Bea Antenore, a longtime Long Beach resident who previously served on the Long Beach Parks and Recreation Commission, believe voting by mail may be a solution to low voter turnout judging by the high percentage of voters who voted by mail in the last election. The League’s September 20 meeting, which is open to the public, is at the Los Altos Public Library, 5614 E. Britton Dr., from 10 a.m. to noon. The aim is to discuss the importance of voting, why people don’t vote and how to improve voter turnout. Guest speaker Dr. Craig Hendricks, a former history and political science professor
at Long Beach City College, and League members Phyllis O’Connor, Estelle Burns, Antenore and McConnell will examine the issues surrounding voter turnout. Antenore, McConnell and Hendricks met last week with the Business Journal to discuss their concerns and to share some insights about what they plan to discuss at the event. One of the basic principles of elections is to legitimize one party’s or person’s view over others’ by earning a majority approval, Hendricks said, “which is extremely important in a democratic context.” When a candidate wins an election with an overwhelming majority, that sense of legitimacy is heightened. “Now Robert Garcia’s vision has been legitimized, but by 20 percent of the vote. That’s the problem,” Hendricks said, referencing the newly elected mayor. “With 2,000 votes either way, we would have had a different mayor,” he pointed out. “The point is, people who oppose Garcia’s viewpoint can say with great legitimacy, well, what percentage of voters in Long Beach actually accepted your vision? That’s why this [low voter turnout] is dangerous. It delegitimizes the democratic process.” Why didn’t Long Beach residents vote in this last election? Herrera whittled the issue down to two causes: “It is either that people are basically satisfied with the way city government is being run or they don’t care. It’s not that they don’t care; they are just busy doing other things,” he said. “People need to understand that when it comes to day-to-day activities in their neighborhoods, it is the city government that is probably the most prevalent and present,” he stressed. “But we don’t have CNN covering us every day. We don’t have Entertainment Tonight talking about the city clerk.” Relying on television as a news source may be one reason voter turnout has diminished locally as well as nationally since early in the 20th century, Hendricks speculated. “One issue is that people have stopped reading newspapers. They rely on television for their main news source, which is not the most reliable way to get information about what is actually happening,” he said. He called TV the “worst possible source” for news because news networks do not delve into issues in depth. “I also think negative campaigning and voter burnout are issues that affect people,” Hendricks said. “People are really turned off by negative campaigning. It just gets to the point where people stop listening,” he continued. He acknowledged America has a long history of negative campaigns. “The political campaigns of 1792 and 1796 were not exactly gentlemen’s affairs either,
[with] campaign songs and ditties and obscene pictures circulated about presidential candidates. We have a long history of cutting to the bone,” he said. Those tactics were meant to activate voters, but Hendricks believed American society has changed. In the modern era, attack ads serve more to turn people off than spur them to vote, he observed. Attack ads were certainly present in the last Long Beach election. Take the city attorney’s race for example. Nearly every day, Long Beach residents’ mailboxes were stuffed with attack ad flyers about Charles Parkin, then acting city attorney, and his opponent James Johnson, former 7th District Councilmember. The inundation of paper may have been an issue for residents in itself, Antenore said. “One of the things I found was that people were turned off by all the paper they got every single day . . . They started to throw things away without even looking at them,” she recalled. Perhaps these tactics to get voters to the polls in addition to very intense national and state political seasons since 2008 have caused voter burnout, Hendricks said of a potential cause for people not voting. Herrera’s pilot program for voting by mail may ultimately prove a solution to improving voter turnout, but he acknowledged the process wouldn’t be without difficulties. “The problem with voting by mail is voters not keeping their addresses current and their signatures up to date. For example, we sent out 92,000 vote-by-mail ballots in April of 2014 and almost 16,000 came back as undeliverable. That costs money,” he said. Solutions to this issue would be proactively reaching out to voters to remind them to update their voter registration and signatures, and contacting residents who have moved within the past year. On October 17, the city clerk’s office is also proposing new voting outreach for youth. “What we are going to be doing over the next year is reaching out to the youth of our communities and the schools and colleges, just reminding them that we have municipal elections here in Long Beach,” Herrera said. “We’re going to be going into classrooms. We’re going to have a mock election program where we can do student body or issue-oriented elections for the schools.” Hendricks also advocated for a hands-on approach to encourage voting. “The way to get after this [issue] is to follow the model of drug education, the DARE program, which sent people and police officers into elementary schools and middle schools to talk about the problems of drugs and so forth,” he said. “The only way to remedy this is education. If I were king, I would be sending people into middle schools and elementary schools to begin voter education at the earliest possible age, like Grade 5. You would hold mock elections and so on.” The League of Women Voters already does some of this, visiting local schools to discuss the importance of voting and even holding mock elections and informational activities about ballot measures, McConnell pointed out. When visiting schools, McConnell said youth often tell her they don’t believe their one vote would make a difference in an election. To combat this attitude, at the September 20 event, Antenore is going to present a list of instances when one vote changed the course of history. ■
1_LBBJ_Sept2_SectionA_LBBJ MASTER LAYOUT 9/14/14 4:19 PM Page 17
FINANCIAL SERVICES INDUSTRY September 16-29, 2014
Financing Challenges (Continued From Page 1)
advises. “Once the business plan is developed, it will serve as a guide as to how much money will be needed to start the business. Then, after the amount needed is determined, the business owner has to decide where the best place to get it is. In today's economy, it is very difficult to walk into a commercial bank for a start-up business loan. “Many first-time entrepreneurs will start off by using their own personal savings or look to a relative or friend to see if they can borrow money,� Park adds. “Some people will look at taking out a loan against their home, assuming they have adequate equity. It’s also common for a person to turn to credit cards to help fund their start-up. I think it's perfectly okay to take the credit card option if the individual can qualify for a low interest rate and if it’s managed in a responsible manner. And there is always the Small Business Administration (SBA) loan option, which will require some manner of security to qualify. � For many borrowers, the biggest hurdle to acquiring business financing is simply qualifying for a loan. Not only has the economy taken its toll on personal and company credit lines, but other factors such as over-extended receivables, shrunken real estate values and increasing upward pressure in terms of taxes and employee wages have combined to make obtaining a business loan increasingly difficult. Henry Walker, president of Farmers & Merchants Bank, notes that banking institutions are all vying for the well-qualified borrower. “Commercial lenders are primarily looking for borrowers who have collateral support,� Walker says. “One thing that is key to obtaining a business loan in today’s market is being able to present good financial information that is verifiable. That holds true for just about any kind of loan, but it’s especially important for business loans. I can’t over-emphasize the importance of having a good track record of being a responsible business owner and borrower and having a positive cash flow. “From the borrower’s perspective, it’s important to find a lender who can demonstrate consistency and competency of staffing,� Walker adds. “You want to create a relationship with your banker, just as the bank wants to create a relationship with its clients. In business, there are going to be times when you need to pick up the phone and call your bank to ask for a favor and, when you have a solid relationship with your bank, they will make every effort to accommodate you – that’s what we do for our clients. From conventional loans to SBA financing to personal lines of credit, we provide a personalized touch to banking.� One critical factor to financing any business venture – which should be incorporated into any business plan – is, how much should be budgeted for interest expense? According to Walker, the answer varies depending upon which type of financing is obtained. “We foresee interest rates for traditional business loans remaining fairly steady for the balance of 2014,� Walker says. “While we do think there will be an uptick in rates,
Long Beach Business Journal 17 we think it will be slight. There is just not enough fuel in the carburetor to drive the economy and to justify higher rates.�
Traditional vs. Non-Traditional Financing For decades, the SBA loan has served as the cornerstone of affordable financing for the small business owner. Unfortunately, the economy and its impact on prospective borrowers have kept many from obtaining these government-backed loans. “The rules regarding qualification for an SBA loan have changed little over the years,� says Maria Contreras-Sweet, administrator for the Small Business Administration. “However, the percentage of people who qualify for SBA loans has declined in recent years due to the economy. In order to accommodate people with
innovative business ideas but who may have less-than-perfect credit, we are working with large lenders to create regional clusters to nurture small business. It’s an opportunity to help encourage business growth, while supporting the small business community.� Katie Murray, private author and a contributing writer to the SBA.gov website, says there also is a growing trend among small businesses to acquire start-up funding. “Increasingly, crowdfunding is becoming a popular way for people to get start-up financing for their businesses. Many people have probably heard of a “Kickstarter� campaign, which is essentially crowdfunding. It works through a collective cooperation of people who network and pool their money and resources together, usually
online, to support efforts initiated by others. So it gathers multiple, smaller investments as opposed to a single source of funding.� There are a few things to consider before going this route, Murray says. The first thing she urges prospective borrowers to do is begin working on the crowdfunding campaign at least six months before launching a business or project. “When your campaign starts, you should’ve already made a significant effort in letting people know about it and collecting email addresses so you can really hit the ground running when you open the gates for your campaign,� Murray says. “Set your funding goal as low as you can manage because some crowdfunding platforms, like Kickstarter, are “all or nothing.� (Please Continue To Page 18)
business
made personal $W ,QWHUQDWLRQDO &LW\ %DQN \RXU VXFFHVV LV RXU EXVLQHVV 2XU FXVWRPHUV GHDO GLUHFWO\ ZLWK ORFDO GHFLVLRQ PDNHUV ZKR NQRZ WKHP SHUVRQDOO\ÂłDQG KDYH D JHQXLQH LQWHUHVW LQ WKHLU ORQJ WHUP VXFFHVV 7UXO\ SHUVRQDO EXVLQHVV EDQNLQJ
EXVLQHVVPDGHSHUVRQDO ,QWHUQDWLRQDO &LW\ %DQN _ ( 2FHDQ %OYG /RQJ %HDFK &$ _ _ ZZZ LFE EL]
4,4),9 -+0*
1_LBBJ_Sept2_SectionA_LBBJ MASTER LAYOUT 9/14/14 4:11 PM Page 18
FINANCIAL SERVICES INDUSTRY 18 Long Beach Business Journal
September 16-29, 2014
Financial Challenges (Continued From Page 17)
For instance, if you set a goal of $1,000 and you meet it, then you get the money. If you raise only $500, you won’t get anything. Read the fine print about the platform you choose so you can be strategic about your funding request. Also, don’t forget to award your donors. You’re asking people to take a risk on your business venture – there are no guarantees. So thank them and show your appreciation by offering your product or service at a discount when the time comes.”
Managing Wealth – ROI Assuming the business owner has successfully weathered the start-up and growth phase(s), at what point in a businessperson’s career should he or she formulate – and, perhaps more importantly, begin to implement – an exit strategy? According to Lisa A. Petrie, CFP, with Wells Fargo Advisors, it is important for anyone, business owner or not, to start putting together a wealth management plan so that shareholders can make sure he or she is focused on long-term goals. “For business owners, specifically, the early days of the business are mainly focused on creating and growing the business,” Petrie says. “As the business matures, it becomes increasingly important to put together a wealth management plan. When a business owner is three to five years from their transition or exit from their business, the details of the plan become more and more focused and important as well as more complex.”
“While we do think there will be an uptick in rates, we think it will be slight. There is just not enough fuel in the carburetor to drive the economy and to justify higher rates.” Henry Walker, President, Farmers & Merchants Bank on interest rates for traditional business loans
“With the economic recovery over the last five years, I think business owners as well as individuals are becoming more and more interested in looking at the bigger picture and planning for the future of their business and their families. Most realize the importance of this planning, but many of them fail to take the first step and get started with the process,” Petrie adds. “The most important thing to remember about planning for retirement is that it is not a one-time only event. It is an ongoing process that should start early in
someone’s career and continuing to evolve as they get closer to retirement. At the beginning it may be creating their savings strategy, how much they need to save, where to save it (401k, IRA, Roth 401k, 403b, 457 etc.) and how to allocate those savings so they will grow and achieve your goals. As time goes on, the retirement plan will become more complex and becomes more than just savings and investing: it involves estate planning, tax planning and legacy planning.” Petrie says that, since this is such a
complex process, it is important that business owners have a trusted advisor they can use to develop their plan and the strategy to get them not only to retirement, but decades beyond retirement. “As part of any wealth management plan, the most important part is the process, not the products,” Petrie explains. “The process is about setting goals, finding your risk tolerance, planning for taxes and estate issues and then building a customized portfolio that achieves those goals with the desired level of risk.” ■
1_LBBJ_Sept2_SectionA_LBBJ MASTER LAYOUT 9/14/14 4:11 PM Page 19
FINANCIAL SERVICES INDUSTRY September 16-29, 2014
Bitcoin Expected To Grow In Popularity ■ By BRANDON FERGUSON Staff Writer Readers of the Business Journal may be surprised to hear that the Sacramento Kings are now accepting Bitcoin in exchange for goods and services. Then again, many readers may be surprised to find out Bitcoin is something that actually exists. Whether or not you’re up to speed on the finer points of cryptocurrency, be it digital wallets, mining or block chains, things continue to evolve for the technology many thought was a flash in the pan. Put simply, Bitcoin is digital currency that can be purchased through online exchanges. According to the website coindesk.com, which features the Bitcoin index, the price for one Bitcoin in U.S. dollars is hovering in the $470 range. Bitcoin can also be purchased with any number of world currencies including Euros, Pounds and Yuan. The director of communication for the Bitcoin Foundation, Jinyoung Englund, explained to the Business Journal that Bitcoin is an open-source protocol. “It’s technology that nobody owns and no one company owns,” Englund explained. Unlike the U.S. dollar, which is issued by the Federal Reserve, Bitcoin is not controlled by a central bank or clearinghouse. Rather, it’s purchased through exchanges such as Coinbase, or Cryptsy, and stored in digital wallets provided by companies such as Blockchain or Armory on an individual’s personal computer or cell phone. General advantages include rapid peerto-peer transactions: Unlike a wire transfer, or bank deposit, which can take days to complete, sending Bitcoin across the world is as fast as sending an email, and fees are generally lower than those offered by credit card companies, or are nonexistent. According to its second quarter state of Bitcoin report, Coinddesk forecast continued growth for Bitcoin, including an increase in the number of merchants accepting Bitcoin, from 63,000 in June to 500,000 by year’s end. Companies providing wallet services are expected to grow from 5,372,688 in June to 8 million by year’s end. But while Bitcoin may be gaining in popularity, it’s yet to catch on with mainstream consumers. Darryl Webb, who owns the Signal Hill-based Centerlen Sevices Inc., a restaurant equipment company, recently told the Business Journal his company’s website was set up to accept Bitcoin in November of last year. “I’ll be honest with you, to date we have not received a payment [in Bitcoin],” he said. Webb explained that he was drawn to the concept of Bitcoin because he felt it would give customers more options in how they make purchases. He explained that Bitcoin would also be convenient for out-of-country transactions that would require less paperwork. He also liked the idea of lower exchange fees. “The points are less, which in our business, a point is a point. Compared to credit card fees that are on average three percent per transaction, at the end of the year, that could very well be another employee for
Long Beach Business Journal 19 us,” Webb said, adding, “Maybe we’re ahead of our time a little bit, I don’t know.” Englund explained that Bitcoin, which was first launched in 2009, is a technology still in its infancy stage. “In the lifestyle of the technology, we’re still in the early adopter stage,” Englund said. “We’re kind of in the uphill battle of educating the masses.” Though nascent it may be, more and more people of power and influence are starting to pay attention to its potential. In March, the IRS issued a notice stating that, for federal tax purposes, virtual currency is to be treated as property and therefore is subject to existing regulations. The New York Department of Finance is also currently considering a set of regulations to address digital currency. In June, California Governor Jerry Brown signed AB 129, which changed existing legal language to recognize technology such as Bitcoin as viable currency. Assemblymember Roger Dickinson, who represents California’s 7th District and chairs the assembly finance committee, sponsored the bill. He said that, prior to the passage of AB 129, the only currency legally recognized in California was federal money. “That actually had its origins in the original California Constitution in 1850, [which] said that the only lawful currency in California was currency of the United States,” Dickinson explained. Though Dickinson remains unsure about where the technology is headed, he feels it’s worth paying attention to. (Please Continue To Page 20)
1_LBBJ_Sept2_SectionA_LBBJ MASTER LAYOUT 9/14/14 4:11 PM Page 20
FINANCIAL SERVICES INDUSTRY 20 Long Beach Business Journal
Bitcoin (Continued From Page 19)
“I don’t pretend to know where all this is going [in the future], but I would say it’s not something that we necessarily want to try to limit or stifle,” Dickinson said. While officials continue to look closer at the regulation of Bitcoin, more and more high profile companies are accepting accepting digital currency as payment. Some of the larger companies where Bitcoin can be used to make purchases include: Overstock.com, Amazon, 1-800Flowers, Dell, Target, The Sacramento Kings, as well as satellite provider Dish. John Hall, a spokesperson for Dish, told the Business Journal the company’s decision
September 16-29, 2014 to begin accepting Bitcoin stemmed from suggestions by employees who were Bitcoin enthusiasts, as well as a desire to reflect the company’s technology-forward image. “We have the top technology system out there in our Hopper Whole Home DVR. We wanted to match that for our brand and for our customers to give them the choice and the convenience, whether it be in how they watch TV or how they pay their bill,” he said. The company has partnered with Bitcoin exchange Coinbase to accept digital currency. “In working with them we found a fairly seamless way to integrate that into our systems,” Hall said. But even with increasing corporate inter-
est, banks still remain skittish when it comes to even discussing Bitcoin. The Business Journal reached out to Wells Fargo for its take on the issue. Though the bank declined to be interviewed for this story, Ben Alvarado, regional president for Orange County and Long Beach, issued a statement. “We as a company are learning more about these currencies and their potential rewards and risks, but we are in no way embracing or endorsing any of them and have not made any decisions on their viability,” the statement read. A statement released to the Business Journal by Farmers & Merchants Bank CEO Dan Walker, was blunter. “F&M Bank uses only proven technologies, such as online banking and mobile banking systems from best-inclass technology partners that keep our clients’ money safe and secure,” the statement read. Jim Harper, who serves as global policy counsel for the Bitcoin Foundation, acknowledged that banks continue to hold back on embracing Bitcoin, adding that he’s been discussing the issue with lawmakers on Capitol Hill. He said he welcomes the day when banks provide Bitcoin-related services. On the issue of regulation, Harper explained that many existing laws can be tweaked to apply to Bitcoin. He pointed to the examples of Texas and Kansas, which both issued guiding memoranda in April and June pertaining to the use of Bitcoin
and which now recognize it as subject to existing financial laws. “That makes a lot of sense. You have lawyers in the state who already know how the regulations work. All they have to do is enact them to Bitcoin rather than writing something new that’s technology specific,” Harper said. When it comes to the issue of how much regulation Bitcoin should be subject to, Harper explained there are two sides to the coin, so to speak. “The conventional view is that regulation hampers innovation, and raises costs,” Harper said. “There’s another argument that regulation will help establish that Bitcoin businesses are trustworthy and that people can interact with them. I don’t think it’s right to say flatly that regulation is bad, but obviously heavy regulation doesn’t have clear benefits.” For now, it remains to be seen where Bitcoin’s future will lead, but forecasts are optimistic. The Bitcoin Foundation was founded in 2012 with the goal of developing, promoting and ensuring the safety of the technology, and Englund said there’s significant possibility in Bitcoin. “What we see is Bitcoin’s social and economic potential. We’re talking about millions of people who are unbanked around the world; we’re talking about banking and traditional transaction inefficiencies that cost non-profits money in order to even receive donations,” she said. “Our high level vision is to ensure that all people have the opportunity to realize Bitcoin’s potential.” ■
Wells Fargo Rolls Out Program Aimed At Startup Creation Wells Fargo is launching Startup Accelerator, a six-month semiannual boot camp that aims to drive technological innovation in the field of financial services, focusing on payment, deposit and fraud operations. According to the bank, selected startups will receive $50,000 to $500,000 of direct equity investment from Wells Fargo, as well as the opportunity to participate in workshops and individual coaching sessions. Successful companies may also become Wells Fargo vendors. In the statement, Steve Ellis, executive vice president and head of wholesale services at Wells Fargo, touted the program as a way to grow the available opportunities for small businesses while providing enhanced service to bank customers. “The startup accelerator adds a new cylinder to our corporate innovation engine,” Ellis said. “We’re taking a proven business model from the venture capital community and repurposing it as a strategy for connecting with startups whose ideas and growth prospects could add value to our business and customers.” Ten to 20 companies will be picked each year to develop and refine products in a collaborative environment. “We’re interested in any technology that could be used by an institution like Wells Fargo to better serve our customer or better operate our business,” Ellis said. “Analytics, big data, mobile, security and infrastructure are all important to us. We’re looking to engage with innovators beyond the edge of our own creative enterprise.” The deadline to submit applications for the fall Startup Accelerator is October 1. Candidates will be evaluated by an investment committee comprised of venture banking, senior technology and innovation leaders. Interested startups can find more information at https://accelerator.wellsfargo.com/.
Credit Union Membership: Fastest Growth Since 2000
INTERNATIONAL CITY ESCROW, INC.
PATREECE COBURN Commercial Escrow Officer
Specializing In s #OMMERCIAL 4RANSACTIONS s "ULK 3ALES s !"# ,ICENSE 4RANSFER s %XCHANGES s ,EASE /PTIONS s !ND !LL 9OUR %SCROW .EEDS
INTERNATIONAL CITY ESCROW, INC.
www.icescrow.com
An Independent Escrow Corporation. Licensed by the Dept. of Business oversight
562-497-9777
5000 E. Spring St. · Suite 120 · Long Beach, Ca 90815
In the past year, 8.58 million people nationwide have joined credit unions, representing the industry’s fastest growth since 2000. Data collected by the Credit Union National Association (CUNA), released in June, found that between June 2013 and June 2014, 100 million new memberships occurred. In a statement, Jeff Napper, president and CEO of LBS Financial Credit Union, said his company mirrored the nationwide trend. “LBS Financial Credit Union represents approximately 120,000 members Jeff Napper in the local area,” Napper said. “Similar to the industry’s numbers, our credit union has experienced an increase in our membership growth in the last two years and we are pleased to share the benefits of credit union membership with more of our local community.” Unlike banks, which often answer to shareholders, credit unions are not-for-profit institutions and cooperatively owned by their members. This allows credit unions to offer higher interest rates on deposits and lower fees. According to a press release issued by LBS Financial last month, the 2013 year-end American Customer Satisfaction Index found that credit unions have led banks in customer satisfaction for the past five years. Consumers wanting to learn more about credit unions should visit www.weownourbank.com. ■
1_LBBJ_Sept2_SectionA_LBBJ MASTER LAYOUT 9/14/14 4:11 PM Page 21
1_LBBJ_Sept2_SectionA_LBBJ MASTER LAYOUT 9/14/14 4:11 PM Page 22
PERSPECTIVE 22 Long Beach Business Journal
September 16-29, 2014
Snowmen Fall From Heaven . . . Unassembled Vol. XXVII No. 18 September 16-29, 2014 EDITOR & PUBLISHER George Economides SALES & MARKETING EXECUTIVE Heather Dann SALES & MARKETING ASSISTANT Cori Lambert DISTRIBUTION Conrad Riley EDITORIAL DEPARTMENT SENIOR WRITER Samantha Mehlinger STAFF WRITER Brandon Ferguson CONTRIBUTING WRITER Michael Gougis and Steve Stelpflug PHOTOJOURNALIST Thomas McConville COPY EDITOR Pat Flynn The Long Beach Business Journal is a publication of South Coast Publishing, Inc., incorporated in the State of California in July 1985. It is published every other Tuesday (except between Christmas and midJanuary) – 25 copies annually. The Business Journal premiered March 1987 as the Long Beach Airport Business Journal. Reproduction in whole or in part without written permission is strictly prohibited unless otherwise stated. Opinions expressed by perspective writers and guest columnists are their views and not necessarily those of the Business Journal. Press releases should be sent to the address shown below. South Coast Publishing also produces Destinations and the Employee Times magazines. Office South Coast Publishing, Inc. 2599 E. 28th Street, Suite 212 Signal Hill, CA 90755 Ph: 562/988-1222 • Fx: 562/988-1239 www:LBBusinessJournal.com Advertising and Editorial Deadlines Wednesday prior to publication date. Note: Press releases should be faxed or mailed. No follow up calls, please. For a copy of the 2014 advertising and editorial calendar, please fax request to 562/988-1239. Include your name, company and address and a copy will be sent to you. Distribution: Minimum 22,000. Regular Office Hours Monday-Friday 8:30 a.m.-5:30 p.m. Business Journal Subscriptions Standard Bulk Rate: $28.00 1st Class: $70.00 (25 issues – 1 year)
rowth is natural. It is imprinted in our DNA. Yet it’s not automatic. It needs to be developed. The miracle of life starts with a single cell which multiplies into a complex organism of hyper-learning, along with the potential to accomplish amazing tasks. So having a ■ EFFECTIVE growth plan that is intenLEADERSHIP tional is the most natural By Mick Ukleja thing in the world and, therefore, the most fulfilling. But don’t misunderstand. Since it’s natural, change is inevitable. Growth is optional. Growth can only happen when we embrace change and incorporate it into our lives. It’s not always comfortable. Don’t let the pain of pruning, probing and pressing scare you away. Bill Cosby said it well: “Decide that you want it more than you are afraid of it.” To grow requires a personal audit so you can identify what needs pruning and probing. This pinpoints where you will be most fruitful. Rather than surrendering to pruning, embrace it as your loyal partner and ally. This is another way of nurturing yourself – of becoming the best version of yourself – of deploying your best self. And that’s when your influence gains traction. This means you are willing to bet on yourself. After all, if you won’t bet on yourself, why should others? So today make that bet, along with your pledge, I will invest in my growth – physically, mentally, emotionally, financially and spiritually. I will share my knowledge with others.
G
Why? Because a major part of growth comes from contribution. A good place to start is in the area of your strengths. It’s what the late Stephen Covey referred to as “sharpening the saw.” Know what your strengths are. Sharpen them by maximizing them. Make them count. The more you sharpen them, the more effectively they cut. Statistics show that the majority of people focus on what they don’t have rather than what they do have. How do you grow them? Try these three strategies. (1) Discover them. Since you have them, it would be a good idea to know what they are. There are a lot of tools to help you do this, says Marcus Buckingham in his book, “Now, Discover Your Strengths.” Ask those who are around you what they think your strengths are. They probably have a pretty good idea. (2) Develop them. Laziness is an enemy here, along with its cousin, procrastination. Fear of failure or embarrassment is another one. Fear of immobility ought to be a greater concern. You stumble only if you are moving, and that’s where your strengths are truly developed. A few years ago Sergio Zyman resigned in disgrace from Coca Cola. He was the one who engineered the New Coke strategy, one of the biggest flops in marketing history. He kicked around for seven years as a consultant before he got another job. Who would hire him? Coca Cola!! His former employer. Robert Goizueta, the president of Coca Cola at the time, defended his position by saying, “We’ve become uncompetitive by not being tolerant of mistakes. The moment you let avoiding failure become your motivator, you are down the path of inactivity. You stumble only if you are moving.”
(3) Deploy them. Even though it might be a strength, it takes work, and sometimes a little pain, to develop them. Opportunities to use them will drop in your lap, only if you place your lap where opportunities drop. Life offers no stagnant state. Abraham Maslow said, “You will either step forward into growth, or step backward into safety.” Intentional growth is a deliberate decision to step out of our comfort zone. All forward movement and momentum assumes crossing the comfort line. It also impacts the responses we get from others. Again, Maslow said, “Are you behaving the way you are because of the way I treat you, or am I treating you the way I do because of the way you behave? What is necessary to change a person is to change his awareness of himself.” Growth is natural, but not automatic. It must be intentional. It begins with what you want your life to represent. It’s not stagnant or always comfortable. There are opposing forces that will include fatigue, frustration and occasional failure. Yet encouragement is all around you and within you. Draw on it. You were created to grow. You were created to be fruitful. Snowmen fall from heaven . . . unassembled. (Mick Ukleja has co-authored several books including Managing the Millennials. He helps organizations create environments in which all generations can thrive. He is a keynote speaker and president of LeadershipTraq, a leadership consulting firm. His clients have included Fortune 500 corporations and non-profit organizations. Check his weekly blog at www.leadershiptraq.com.)
September Is Gynecologic Cancer Awareness Month – Learn The Signs And Symptoms Of These ‘Silent Killers’ n estimated 91,730 new cases of gynecologic cancer will be diagnosed in the United States this year alone. Some of these gynecologic cancers have been called “silent killers” because women are often unaware of the signs and symptoms associated ■ HEALTHWISE with these cancers and/or By Philip DiSaia, M.D. until it is too late. What Is Gynecologic Cancer? Gynecologic cancer is an uncontrolled growth and spread of abnormal cells that originate from the reproductive organs. There are several types of gynecologic cancers which include cervical, gestational trophoblastic disease (GTD), primary peritoneal, ovarian, uterine/endometrial, vaginal and vulvar cancers. What are Symptoms of Gynecologic Cancer? • Frequent bleeding/pain after intercourse • Excessive discharge and abnormal bleeding between periods • Extreme, sudden onset: o Bloating o Pelvic or abdominal pain o Difficulty eating or feeling full quickly after meals o Problems with urination or bowel movements • Abnormal vaginal bleeding o Younger women should note irregular/heavy vaginal bleeding, including bleeding between periods • Bleeding after menopause o Even brown spotting or a single spot of blood is abnormal o New lump/ulcer in genital area
A
Cervical Cancer Worldwide, cervical cancer is the second most common cause of death by cancer in women. Cervical cancer can be prevented by regular screenings and a preventive vaccination. Since nearly all cervical cancers are caused by a persistent infection with HPV, vaccinating women and young girls before they are sexually active can lead to the greatest prevention of pre-cancer and cancer. Also, routine Pap tests to screen for HPV or signs of cervical cancer can be critical to early detection. Ovarian Cancer Ovarian cancer is called a “silent killer” because its symptoms typically do not develop until the disease is already quite advanced. It is important to understand that the symptoms associated with ovarian cancer seem “common” and women often attribute them to other causes. However, women with ovarian cancer reported that these symptoms were persistent and a change from their body’s normal behavior. Therefore, the frequency and/or number of these symptoms are the key factors in diagnosing ovarian cancer. Uterine/Endometrial Cancer Uterine cancer also known as endometrial cancer, is the most common type of gynecologic cancer. The most common warning sign for uterine/endometrial cancer is abnormal vaginal bleeding. Recognition of this symptom can allow for early diagnosis and treatment. Vaginal Cancer Vaginal cancer is one of the rarest forms of gynecologic cancers usually affecting women between 50 to 70-years-old. Due to the fact that vaginal cancers are often associated with HPV, vaginal cancer can be prevented by vaccinating women and young girls before they are sexually active.
Vulvar Cancer Vulvar cancer is a rare, abnormal growth on the external female genitalia, typically occurring in elderly women. Fortunately, vulvar cancer is very curable when it is detected at an early stage. Treatment can, however, have substantial adverse effects on a patients’ sexual function, bladder and rectal function, as well as their body image. Prevention and Early Detection of Vulvar Cancer Protection against infection from HPV can reduce the risk of vulvar cancer by vaccinating women and young girls before they are sexually active. Also, examination of the vulva for changes by women at home or by their gynecologist can lead to the detection of pre-invasive or early vulvar cancer. A Call for Action – Be Proactive: Know Your Body Although many of the symptoms associated with gynecologic cancers may seem common and often times are due to other causes, it is important to be in tune with your body and pay attention to any changes. If you notice new symptoms that are occurring almost daily for more than a few weeks this can be a sign of gynecologic cancer. Do not hesitate – you should seek medical attention promptly. With more than 100 different types of Human Papillomavirus, HPV is responsible for almost all cases of cervical cancer and some vaginal and vulvar cancers. Be proactive – get regular Pap tests to screen for the HPV virus. Pap tests are very effective in prevention and early detection of certain gynecologic cancers. If possible get vaccinated against HPV and continue to learn and be aware of gynecological cancers so that together we can help diagnose cancer sooner. (Philip DiSaia, M.D., is the medical director for MemorialCare Todd Cancer Institute at Long Beach Memorial.)
1_LBBJ_Sept2_SectionA_LBBJ MASTER LAYOUT 9/14/14 4:11 PM Page 23
PERSPECTIVE September 16-29, 2014
Long Beach Business Journal 23
Shortage Of Housing For Older Americans ne segment of the population that is sometimes overlooked when it comes to analyzing what consumers in the market for housing are looking for is the older homebuyer – those over 50 years of age either nearing or REALTY VIEWS planning for retirement By Terry Ross and the life changes that often dictate changes in lifestyle. This is of course the well-known baby boomer segment of the population that is sometimes overlooked as a driving force in the economy in general. But, according to housing industry studies, this group continues to be an economic force that home builders need to consider not only because of their financial status but also because of what they want in a home. The income factor for the 50-and-over set can cut a few ways. Yes, they have been in the workforce longer and theoretically have made more and saved more money than their younger counterparts; yet high costs currently force a third of adults 50 and over to spend more than 30 percent of their income on housing, resulting in them cutting back on food, health care and retirement savings, according
O
to a joint report from Harvard University’s Joint Center for Housing Studies and AARP Foundation. An even higher number – 37 percent – of those 80 and over spend more than 30 percent of their income on housing. Data shows that baby boomers who are now in their 50s have lower incomes, wealth and homeownership rates and higher debt than previous generations in that age range and are “of special concern” because they represent a large age group that may not be able to cover housing or health care costs in their retirement years. The other important factor is the physical setup of a home and what this age groups needs and desires. According to the study, much of the nation's housing inventory lacks basic accessibility features for older people with disabilities. There is also a lack of transportation and pedestrian-friendly infrastructure for those who live in car-dependent suburban and rural areas. Also, disconnects between housing programs and the health care system for those with disabilities or long-term care needs put many older adults “at risk of premature institutionalization.” A two-story versus a single-level home can sometimes mean the difference in being able to stay in a home or having to move out because of physical limitations in using stairs, for instance. The number of Americans aged 50 and over is expected to increase to 132 million by 2030,
up more than 70 percent compared to 2000, according to data by Housing America’s “Older Adults – Meeting the Needs of an Aging Population” report. Older homeowners, however, are in a better position than older renters. An estimated 70 percent of those who reach the age of 65 will eventually need some form of long-term care. But the typical homeowner aged 65 and over can cover the costs of in-home assistance for nearly nine years, compared to only two months for the typical renter. The John Burns Real Estate Consulting Group, which advises many home builders, has also studied the older homebuyer and has found even more tendencies that make this demographic unique. Many of these buyers are looking for their next home opportunity as their children leave the nest and they consider retirement, so the larger home for a family is not nearly as important. According to the Burns’ 2014 Consumer Insights Study, 42 percent of the home shoppers who took the survey are 55+ and indicated that home design will make them move (it is the third most important motivator for moving, after location and price), but 55 percent said they can’t find what they are looking for. Forty-three percent said they want to downsize, with most wanting 1,500 to 1,999square-foot homes. Among those without chil-
dren, 46 percent want to live in a community that is more multigenerational, 33 percent want an age-restricted community and 21 percent want an age-targeted community. The economic clout of these older homebuyers makes it the largest force currently in the housing market: The 55-and-over age groups represents 25 percent of the total population and more than 50 percent of all current homeowners (likely with plenty of equity). They also have a homeownership rate in excess of 75 percent. They also are responsible for over 30 percent of total home transactions and tend to not move as often – less than 3 percent move per year. According to Chris Herbert, acting managing director of the Joint Center for Housing Studies, acknowledging the importance of this group is vital for the housing industry and the economy in general. “Recognizing the implications of this profound demographic shift and taking immediate steps to address these issues is vital to our national standard of living,” he noted, and suggested that policymakers at all levels of government need to address these issues and plan accordingly. (Terry Ross, the broker-owner of TR Properties, will answer any questions about today’s real estate market. E-mail questions to Realty Views at terryross1@cs.com or call 949/457-4922.)
Everything I Needed To Know About Fundraising I Learned From An Ice Bucket f the secret formula for CocaCola is any indication about the extent that corporate America will go to protect itself from a winning idea getting into the wrong hands, just imagine what would ■ THIRD SECTOR REPORT happen if the secret By Jeffrey Wilcox formula for raising lots of money for an obscure charity was suddenly discovered? Given the results of the highly publicized “Ice Bucket Challenge” to benefit the ALS Association, there’s little imagination that’s needed. Any charity that can benefit from friendly dares that result in videotaped dumping of ice on people’s heads that ultimately grosses over $100 million and involves more takers than the entire population of Houston must be doing something right. The basic stunt isn’t new. Cold water has been used to help raise money for local causes for generations. Firefighters, for example, have shared their ready supply to entertain audiences and challenge other firefighters to amusing competitions in the name of charity. More than a few brave souls have also taken the “polar plunge” for Special Olympics. Yet, the Ice Bucket Challenge is significantly different. It all began in late June with an amusing YouTube posting by the Washington Township (New Jersey) Fire Department entitled, “The Cold Water Challenge.” The clip was aired on the Golf Channel complete with an in-studio reenactment using an ice bucket and some good old boy betting. Golfer Chris Kennedy, then, challenged his cousin, Jennifer Senerchia whose husband, Anthony, had lived with ALS for 11 years, to take the all-in-good-fun bet, but chose to add an especially meaningful purpose
I
for her: money from the bet would go to ALS research. And, when former Boston College baseball player Pete Frates, who himself has amyotrophic lateral sclerosis (ALS), became aware of this and began posting about it on Twitter, the rest of the story became fundraising history. In the face of success, critics abound: It’s wasting a scarce natural resource called water. It can create unconsciousness. It’s draining needed dollars away from other diseases. It’s not sustainable. It’s a silly gimmick. In the end, some criticisms may prove correct. Nevertheless, the Ice Bucket Challenge is a sobering cold shower about some of the basic elements that have been a part of successful fundraising for generations: The idea was born out of a desire to honor a human being and so many others just like him. It was doing something for people not for an organization. The challenge developed on its own. It became a movement because it was an idea that had permission to evolve. It was not outlined in a multi-page plan that worked its way through a bureaucratic process. Word of mouth was its primary media channel using the latest means. It was fueled by volunteers who took it upon themselves to reach out and start challenging others. Paid staff or consultants weren’t ordered to figure out how to raise five times the amount of money in the history of the organization and make sure it gets done in three months. Money was raised as a result of doing something. It didn’t happen as a result of reading something or being told something. High-profile people were asked by their peers to get on board with an idea that took one moment out of their busy lives to help others in a visible and captured way. They weren’t recruited to sit on a board with a multi-year term and a give or get policy. Business owners used their own creativity to incorporate the idea to increase both business
and contributions. Even the local bar owner, for example, had readily available ice cubes and a ready-made audience for such an activity. In the end, the biggest problem ALS is facing is how to create a legacy for this effort that will result in some people seeing the Ice Bucket Challenge as their first step towards a more personal association with this great cause. Isn’t that the right kind of fundraising problem any organization should have to face? Every element of the Ice Bucket Challenge is
a learning lesson. If you we look at the story with the curious and eager eyes of a kindergartener, we may find out all we ever really needed to know about fundraising. The next step is peaking that curiosity to understand what’s needed to know about development. (Jeffrey R. Wilcox, CFRE, is president and chief executive officer of The Third Sector Company, Inc. Join in on the conversation about this article at the Long Beach Business Journal website www.lbbusinessjournal.com.)
Long Beach International City Bank Marathon Official Program . . . Inserted Into The September 30 Edition Of The Business Journal And 22,000 Copies Of The Program Given Out – One To Each Marathon Participant For Media Kit, Call 562/988-1222 Ad Space Deadline: September 24
1_LBBJ_Sept2_SectionA_LBBJ MASTER LAYOUT 9/14/14 4:11 PM Page 24