november 11-24, 2014 section a

November 11-24, 2014 lbbusinessjournal.com

HealthWiseAir Quality

And How It Affects

Your LungsSee 8

The College

Of Business

Administration

At CSULB

Spotlight

On CBA Student

Organizations

See Pg. 8

#1 On West CoastSignal Hill Petroleum Named TopExploration/Production Company

� By GEORGE ECONOMIDESPublisher’s Analysis

C ity officials may need tostop thinking about attract-

ing a Nordstrom and start consid-ering wooing an Apple store tolocate to Long Beach. That con-clusion is from a survey sent toBusiness Journal readers aboutholiday shopping and the storesthey would like to see in the city.While far from scientific, the

survey, conducted the end ofOctober, does provide a glimpseinto one of the key challenges fac-ing retailers in Long Beach: resi-dents plan on traveling to out oftown stores or shopping onlinerather than visiting local shops

RetailSurveyLocal HolidayShopping HabitsExplored By LBBJ

� By MICHAEL GOUGISContributing Writer

B eautiful, high-end condo-miniums with a view of

blue-green Pacific Ocean watersand crude oil drilling and pump-ing rigs would seem to gotogether like – well, water and oil.But not only has Signal Hill

Petroleum managed to look for,find and extract thousands of bar-rels of crude oil a day in such achallenging environment, it hasperformed the task so well that itwas named the TEEMCO E&P

Company of the Year for 2014 atthe recent West Coast Oil AndGas awards ceremony.“A lot of people in the industry

thought this field was dead,” saysDavid Slater, executive vice presi-dent and CEO of Signal HillPetroleum. “But it’s a hugeremaining resource. It took tech-nology to economically unlock it.”A combination of cutting-edge

technology and old-fashionedpublic relations outreach hasallowed the company to flourishin a potentially difficult environ-

PhilanthropyWhat Should Donors Focus On When Giving To Charity?

Guide To Long Beach

Annual EventsFree Listing For Your2015 Annual Events

From BusinessFunctions to

Charitable Events to Entertainment

and much more

All Glossy, 4-Color,Keepsake Publication.

Issue Date: November 25Long Beach Events Only

Call Cori Lambert at562/988-1222 for moreinformation. Deadline is

Friday, November 14

Climate ChangeAquarium CEO SchubelWarns Of A Warmer World, Rising Seas And Stronger Storms

Pictured near one of their drilling sites with Signal Hill Petroleum President andCEO Craig Barto, center, are David Slater, left, the firm’s executive vice presidentand chief operating officer, and Kevin Laney, vice president of rig operations forthe company. (Photograph by the Business Journal’s Thomas McConville)

(Please Continue To Page 16)

� By SAMANTHA MEHLINGERSenior Writer

A ccording to Jerry Schubel,president and CEO of the

Aquarium of the Pacific, stormslike Hurricane Katrina andSuperstorm Sandy will happenagain, thanks to rising sea levelsand a warming planet caused byclimate change.At an event held by the Long

Beach Area Chamber ofCommerce’s Green BusinessCouncil on October 29 at theLong Beach Marriott, Schubellaid out predictions for theimpacts of climate-changedinduced sea level rise in the com-ing years. Peppering his speechwith light-hearted jokes, he hadsome serious things to say aboutthe consequences of impendingsea level rise to the environment,waterside communities and man-made infrastructure in comingyears. His audience includedCongressman Alan Lowenthal,engineers and members of theGreen Business Council and oth-ers.Showing a photograph of a

fleet of yellow taxicabs covered in

seawater up to their windshieldsduring Superstorm Sandy in2012, Schubel joked, “It hasalways been hard to get a cab inNew York.” The audiencelaughed, but, only momentsbefore, they had gasped at one ofhis calmly stated assessments:

LongshoreWorkersNegotiationsGrow Heated AsWork SlowdownsAt Ports Reported� By SAMANTHA MEHLINGERSenior Writer

A s of Friday, November 7,12 ships crowded the San

Pedro Bay as the InternationalLongshore and Warehouse Union(ILWU) orchestrated slowdownsat the ports of Long Beach andLos Angeles by, as a statementissued by the Pacific MaritimeAssociation (PMA) put it, “refus-ing to dispatch hundreds of quali-fied, skilled workers for criticallyimportant positions transportingcontainers in terminal yards.”



Civic CenterFinancialConsultantSought By City� By GEORGE ECONOMIDESPublisher

T he City of Long Beach hasissued a request for pro-

posal (RFP) to hire a civic centerfinancial consultant to, amongother items, “minimize the proj-ect cost” and “risk” to the city.


� By BRANDON FERGUSONStaff Writer

A survey released lastmonth by the Better

Business Bureau Giving Allianceindicated that when most peopledonate to charity, the ultimateimpact of the money they spend

isn’t the first thing on their mind.Rather it’s something much moremundane – overhead costs.The survey, sent to 4,350

donors nationwide, indicated thattoday’s philanthropists are morelikely to scrutinize a charity’sincome and expense statementrather than its overall benefits.Forty-six percent of respondentssaid they placed their trust in acharity based on finances, whileonly 11 percent said results. For Jeffrey Wilcox, a Business

Journal columnist who foundedThird Sector Company, a providerof interim leadership to non-prof-

its in transition, the survey’s find-ings are disheartening.“To say that the financial state-

ments are more important thanthe social benefit absolutely fliesin the face of why these organi-zations were put in business inthe first place. They were put inbusiness for social benefit,”Wilcox stressed.He explained that all too often

donors look at the amount of moneyan organization spends to raise adollar, which he said might be highdepending on the kind of work anorganization does. Non-profitsthat raise money by producingspecial events tend to have higheroverhead costs, whereas organiza-tions raising money through onlinedonations may have lower costs.

Long Beach Business Journal2599 E. 28th Street, Suite 212Signal Hill, CA 90755-2139562/988-1222 • www.lbbusinessjournal.com

PRSRT STD

U.S. POSTAGE

PAIDLong Beach, CA

PERMIT NO. 254

Read About Team 100 And The Important Work It’s

Doing In The Community – AndMembership Is For Men Only!

See Page 6 (Please Continue To Page 5)


1_LBBJ_NOV_11_2014_SectionA_LBBJ MASTER LAYOUT 11/9/14 6:13 PM Page 1

INSIDE THIS ISSUE2 Long Beach Business Journal November 11-24, 2014

4 Philanthropy5-What Do Donors Focus On . . . continued from Page 16-Team 100’s Food For Kids Program

8 Newswatch8-Reggie Harrison Named Director Of Disaster Preparedness8-Long Beach City Hall News In Brief10-L.B. Police Crime Lab Earns International Accreditation10-Entertainment Permitting Proposals Going To City Council11-Laserfiche Moves Quickly To Fill Top Posts12-Retail Survey . . . continued from Page 112-Restoration Hardware Expanding13-Tax Exemption For Eligible Manufacturing/R&D Firms14-Climate Change . . . continued from Page 115-New Lung Nodule Center Opens At Todd Cancer Institute16-Longshore Slowdown At Ports . . . continued from Page 116-Signal Hill Petroleum . . . continued from Page 117-International Trade News In Brief

18 PerspectiveRealty ViewsWages And Housing Growth At Odds By Terry RossEffective Leadership Leadership LessonsFrom The Wizard Of OZ By Mick UklejaHealthWise Air Quality And How It Affects Your Lungs By Dr. Robert LiouTrade And Transportation Election Results And The Trade Agenda By Tom O’Brien

Section BReal Estate Quarterly• Updates On Residential, Office, Industrial And Retail Real Estate

• Revisions Proposed For City’s Mills Act Program• Universal Technical Institute Breaks Ground On Long Beach Campus

• Leases And Transactions • Updates On Residential, Office, IndustrialAnd Retail Real Estate• Revisions Proposed For City’s Mills Act Program• Universal Technical Institute Breaks Ground On Long Beach Campus

• Leases And Transactions

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PHILANTHROPYNovember 11-24, 2014 Long Beach Business Journal 5

“How much it costs to raise money andhow much it costs to help people are twodifferent ratios,” Wilcox said. Drew Gagner serves as president of St.

Mary Medical Center Foundation, whichwas founded in 1970 to raise money to sup-port programs at the Long Beach-based hos-pital. He told the Business Journal that ahigh level of efficiency doesn’t always cor-relate with high impact. He gave an exampleof a non-profit that spends 15 cents to raisea dollar, but only raises a total of $100,000. “Is that more effective than an organiza-

tion that raises $5 million [but] costs 40cents to raise a dollar?” he asked.Jane Netherton, who chairs the board of

directors for the Long Beach CommunityFoundation, said that it’s difficult to applyone standard of efficiency to organizationsof different sizes. In the case of a grouplike the YMCA, or Salvation Army,Netherton explained the cost required topay someone to run an organization of thatsize is inevitably going to be higher.“You’ve got to pay someone a whole lot

more than you’ve got to pay someone torun a smaller organization that servesmaybe 100 clients and has three or fourstaff,” she said.Victoria Bryan, executive director of the

non-profit Arts Council for Long Beach,said a donor’s decision of where to give iscomplicated in an era where there is somuch need. She added that media reportshighlighting the activity of poorly run char-ities complicates the matter. “No donor wants to feel that their pre-

cious resources are being potentiallywasted,” Bryan said.Before heading the Arts Council, Bryan

spent more than two decades co-directing anon-profit theater company. She recalledthe challenges of justifying the group’sexpenses to its donors. The group, sheexplained, wasn’t housed in a theater butrather operated as a traveling company.Actors would go into communities, juve-nile halls, battered women’s shelters andsenior centers using the dramatic arts as atherapeutic or educational tool. Much ofthe group’s funding was used to pay theactors as well as a facilitator who wouldassist the group in therapeutic settings.“It was sometimes really hard for us to

explain, ‘This is our program’s costs. It’spaying people,’” Bryan said. She said that the key to winning donor’s

trust came with building relationships.“We didn’t look good on paper, but if

somebody knew our programs and had seenthem, [and if] we had a relationship withthem, then they understood,” Bryan said.Kevin Tiber, chief operating officer for

Farmers and Merchants Trust Company,explained he’s worn different hats when itcomes to non-profits – both through workingin the trust company with charitably mindeddonors, and as a boardmember with variousnon-profits. Like Wilcox, Tiber said that acharity’s overhead costs are an overly simplemeasure of an organization’s effectiveness.“Different charities, depending on the

nature of their focus and their mission, mayinherently have different platforms andexpense structures,” Tiber said. “Somecharities are a little more pass-throughwhere they act as a conduit; they don’t need

a lot of administration. Whereas othersactually have boots-on-the-ground impact,and the labor costs and associated overheadwith that is going to be much higher.”He suggested it’s best for those deciding

where to donate their money to dig beyondwhat is available through online resourcessuch as GuideStar, which provides report-ing information on non-profit organiza-tions. Sometimes, Tiber said, a phone callto a non-profit’s leadership is best.“Actually walk through the structure of

the platform, understand what they’redoing, what those expenses are goingfor,” Tiber said.In 2013, GuideStar and the BBB Giving

Alliance wrote an open letter to America’snon-profit corporations highlighting what

Jane Netherton (right)Chairs the Board ofDirectors for the non-profit Long BeachCommunity Foundation.She’s pictured withMarcelle Epley whoserves as the organiza-tion’s president andCEO. In an interviewwith the Business Journal,Netherton explained thatlow overhead isn’talways the best indica-tion of a charity’s impact.(Photograph by theBusiness Journal’sThomas McConville)

Donors And Giving(Continued From Page 1)

(Please Continue To Bottom Of Next Page)


PHILANTHROPY6 Long Beach Business Journal November 11-24, 2014


Since 2011, 100 men from Long Beachhave been united for a common cause –feeding the hungry children and familiesof their city. Every Friday since the groupformed, Team 100’s Food For Kids pro-gram has delivered bags full of nonper-ishable food to seven Westside LongBeach elementary schools with highnumbers of Title 1 program schoolchild-ren. To date, they have distributed morethan 100,000 bags of food to children inneed and have never missed a delivery.Of the Long Beach Unified School

District’s population of about 82,000 stu-dents, 72 percent qualify for reduced orfree school meals, according to JimGrubbs, co-founder of Team 100. Onethousand students in the district are identi-fied as homeless. While these studentshave access to school meals during theweek, when they go home they may nothave food on the table, Grubbs said.Grubbs became aware of the issue when

working at the Volunteer Center South Bay-Harbor-Long Beach in 2011. “At the time, Iwas working at the Volunteer Center, andprincipals were coming to me and tellingme there was a hunger issue in the LongBeach schools. I did not believe it, so I wentand met with principals and talked withSuperintendent Chris Steinhauser,” herecalled. After meeting with school staff,local businesses owners and representativesfrom the city to discuss the problem ofhunger among many Long Beach schoolchildren and their families, Team 100 andFood For Kids was born with help from co-founders Tim McBride and John Shadden.The group is made up of men not to be

exclusionary to women, but to make up forwhat Grubbs saw as a gap in the involve-ment of local men in Long Beach issues.“The reason it came to be men was becauseI was sitting on a couple of boards at thetime and every place I went, it was 100 per-

cent women who were doing everything.There were no men,” Grubbs said. “I keptsaying to myself, well, where the heck areall the guys? What are they doing? And thetruth was they were not doing anything enmasse.” Team 100 soon made a dent in thattrend when membership filled up in lessthan a month and a half, he recalled.“We said, okay, we are going to feed

these families for the weekend. So wewould show up with grocery bags stuffedwith food for people on Friday morning.The principal would make the decision ofwho were the neediest. Then the parentswould come in, grab the food, go home andhave a nice weekend,” Grubbs said of theconcept behind the organization.To fund the effort, the three co-founders

formed a board of 20 men. Each memberwas asked to invite four friends to join thegroup to grow it to 100 members, explainedTom Bennett, current Team 100 board pres-ident. “Each member pays $150 a year indues and that is where we get our initial[yearly] $15,000 funding from,” he said.

The group gets additional fundingthrough a charity event called the BlueMartini Ball, an invitation-only partythrown once a year. In its first year, therewere 700 guests. Last year, the event grewto 1,200 attendees. Invitees pay $50 fortickets. The event typically has casinotables, dancing, a silent auction, a raffleand entertainment, Grubbs said.“It is black tie optional and everybody

has to wear something blue and bring afive-pound bag of rice,” Bennett said of theball. Explained Grubbs, “We ask every-body to bring a five-pound bag of rice tothe Blue Martini Ball so they can touch andfeel that they are actually doing somethingvery concrete other than giving money.”The event brought in two tons of rice lastyear for local families, he estimated.Feedback from school principals has

shown that Team 100’s efforts have rippleeffects throughout the school communities.Not only does nourishing hungry childrenthrough the weekend enable them to betterconcentrate in school, it also has inspired

changes in some behavioral problems at theschools Team 100 reaches. “When a principal was able to start feed-

ing the most hungry, it changed the atmos-phere in the entire school,” Grubbs said.“There was one school where the teacherswere actually being abused physically bythe 5th graders, and, after one year of FoodFor Kids in that school, it stopped com-pletely,” he continued. Where in previousyears theft of school equipment had beenan issue at one school during the summer,after a year of Team 100 donating food atthe school, the thefts ceased, Grubbs said. Families benefitting from the program

have even started paying it forward to oth-ers they view as in greater need. “I heard acouple of stories where families havedonated their bag of food to other familiesthey feel are needier,” Bennett said.In an effort to be closer to the community

it serves, Team 100 is transitioning its baseof operations from the Volunteer Center toFood Finders, a food bank and food rescueprogram based in Signal Hill. Food Finderspicks up donated food from local grocerystores, restaurants, markets and bakeriesand distributes it to those in need. “It is a great match for us because we are

already serving so many people in the com-munity,” Patti Larson, executive director ofFood Finders, told the Business Journal.“We really liked the idea of being able tohave a significant presence in the schoolsjust because we know there is a huge needthere for the kids and their families.”Food Finders’ goal is to provide more

donated food for the Food For Kids pro-gram in order to stretch the dollars raisedby Team 100. “We want to be able tostretch the dollar as much as we can,”Larson said. “We’re looking forward toworking with them. They play a huge rolein the community so it’ll be another wayfor us to serve Long Beach.”To learn more about Team 100 Food For

Kids and how to help, visitwww.team100lb.org. �

Volunteers from Team 100 deliver bags of nonperishable groceries to Webster Elementary School in Westside Long Beach. Team 100, a group of Long Beach men united by the cause of fighting hunger, deliverbags of food to seven Long Beach elementary schools every week, which are then distributed by school staff to families with the greatest need. (Photograph by Team 100)

Team 100’s Food For Kids Program Feeds Hungry Local Students And Their Families

they described as the “overhead myth.” Theletter referred to the myth as a “false con-ception that financial ratios are a proxy foroverall non-profit performance.” The letter listed various ways non-profits

could work toward solving the misconcep-tion of overhead, including practicing moretransparency and sharing data about per-formance with donors.Kelly Ruggirello, executive director of

the Long Beach Symphony Orchestra, saidthat her organization tries to be transparentin what it does, adding that her organiza-tion is proud of the fact that 81 cents ofevery dollar raised goes to producing con-certs and educational programs.“If we are completely transparent about

what we’re doing and if the dollars arereally going to programs and services that

these donors have intended, then I see noreason to not fully disclose what we’redoing,” Ruggirello said.Jim Normandin, president of the Memorial

Medical Center Foundation, echoed a senti-ment expressed by others interviewed for thisarticle, explaining that relationship buildingis at the core of what non-profits do. “Our job is to engage individuals in the

community. . . to consider us as a recipientof their philanthropy. In that consideration,there has to be some kind of relationship,some kind of dialogue about what Mr. andMrs. Donor want,” Normandin said. When asked about his thoughts on the

BBB study, Normandin offered his, per-haps kinder, description of today’s philan-thropists.“I think most people give because of the

impact they feel their gift is going tomake,” he said, adding. “At least, that’swhy I hope they give.” �

Donors And Giving(Continued From Page 5)


NEWSWATCH8 Long Beach Business Journal November 11-24 , 2014

Reggie Harrison NamedDirector Of Disaster

Preparedness Department� By BRANDON FERGUSONStaff Writer

Last week, City Manager Patrick West announced the promo-tion of Deputy City Manager Reggie Harrison to director ofDisaster Preparedness and Emergency Communications.Harrison has overseen the department since its formation inMay 2013; however, last week’s formal announcement signaledHarrison as the first permanent director of the department.“Reggie Harrison is absolutely the right person to lead this

department,” West said in a statement. “He has years of expe-rience in public safety dispatch, homeland security and disas-ter preparedness. As director, he will be well positioned tostrengthen the city’s efforts in these areas and complete thecomplex task of full consolidation of the city’s emergency dis-patch functions.”Harrison has served in multiple capacities during his time

with the City of Long Beach, including housing authoritybureau manager, economic development bureau manager andacting director of the community development department.In 2001 Harrison was appointed deputy city manager. Last

April, then-director of the Long Beach Airport, MarioRodriguez, announced he was stepping down to take a job run-ning the Indianapolis Airport Authority. Harrison was chargedwith serving as acting director of the airport while a nationalsearch was conducted for a new airport director. West isexpected to announce a new director before the end of the year.The disaster preparedness department is charged with con-

solidating emergency communication and dispatch servicesas well as centralizing disaster management and preparednessfunctions in the city. According to a press release issued bythe city last week, during his time overseeing the department,Harrison has developed a comprehensive training programand strengthened citywide relationships with multiple govern-ment agencies from the city to the federal level. In 2005 and2011 Harrison led studies of the emergency communicationsand dispatch center, eventually leading to the implementationof a more efficient, consolidated dispatch model.In April, Harrison received media attention for his leader-

ship in making Long Beach one of a few cities in the countryto serve as a beta site for the testing of early earthquake sys-tems. Once the disaster preparedness department is fullyimplemented, it will employ more than 90 workers and havean estimated budget of $13 million. �

Long Beach City Hall News In Brief


Special Meeting – Tonight (November 11), the city councilholds a special meeting at Houghton Park Community Centerto continue discussions on a proposed redevelopment of thecivic center. Two separate teams, Long Beach CiviCore

Alliance and Plenary-Edgemoor Civic Partners, are vying forthe opportunity to build a new city hall as well as a newlibrary. Also under consideration are plans for a new hotel,multiple residential buildings and retail space. The meetingbegins at 4 p.m. Houghton Park Community Center is locatedat 6301 Myrtle Ave. Sales Tax Resolution –At tonight’s regular meeting, coun-

cilmembers consider a resolution to authorize certain cityemployees, as well the city’s revenue consultant, to examineconfidential sales and use tax records. The resolution, which is sponsored by 5th District

Councilmember Stacy Mungo, seeks to limit the flow of salestax revenues from Long Beach to other cities. In an October17 letter to City Manager West, Director of FinancialManagement John Gross and Director of Economic andProperty Development Mike Conway argued that grantingcertain city employees access to confidential tax recordswould allow the city to identify Long Beach’s fastest growingretailers and develop a list of retailers looking to expand inthis region. The city is looking for opportunities to developformer redevelopment agency properties. Currently, the cityhas 48 properties ready for sale or future development.In previous council meetings, other members, particu-

larly 4th District Councilmember Patrick O’Donnell, haveopposed the resolution, arguing that granting too many cityofficials access to private sales tax records is potentially ananti-business move.Municipal Code Amendment – Mayor Robert Garcia

has placed an item on tonight’s agenda that would directCity Attorney Charles Parkin to prepare an amendment tothe Long Beach Municipal Code relating to the Long BeachEconomic Development Commission. As of press time, astaff report detailing the requested change was not yetreleased by the mayor’s office.Street Widening – The department of public works is

recommending the city council authorize an easement deedfor the purpose of widening the street at 3860 LakewoodBlvd. In a city memo, the street widening project wouldbenefit Mercedes-Benz, which is in the process of renovat-ing the former Boeing 717 facility. The new facility will beoperated by Mercedes as a testing and preparation facility.The purpose of the street widening is to allow 5,917 squarefeet of public-right-of way to accommodate the construc-tion of new turn lanes and traffic signal lights at the inter-section of Lakewood Boulevard and Cover Street.Parking Lot Study – Councilmembers Lena Gonzalez

and Suja Lowenthal are requesting that City Manager Westconduct a study on downtown’s public and private parkinglots and structures. They are requesting that West assess theefficiency of monthly usage and rates and examine safetyissues as evidenced by high volumes of police calls at par-ticular locations, among other things.Veterans Commission – Several members of the city

council are requesting that City Attorney Parkin prepare anordinance amending the Long Beach municipal code toestablish a citywide veterans affairs commission. The pro-posed ordinance will require a minimum of four commis-sioners who are also veterans. The agenda item is being rec-ommended by 9th District Councilmember Rex Richardson,Third District Councilmember Suzie Price and 7th DistrictCouncilmember Roberto Uranga. The proposed commissionwould serve as an advisory body to the city council on mat-ters of the well-being of military veterans in Long Beach.Airport Noise Ordinance – The city council will con-

sider whether or not to ask City Manager West to schedulean airport noise ordinance study session. The session willprovide a historical presentation to councilmembers on thehistory of the airport noise ordinance that protects LongBeach neighborhoods impacted by airline flights.According to a city memo, some airlines have publiclystated a desire to change the Long Beach Airport. A newdirector of the airport is also expected to be appointed soon.If the session is approved, the city manager will be requiredto schedule the meeting within 45 days.Homeland Security Funding – Under consideration at

tonight’s city council meeting is an item authorizing CityManager West to execute a contract with the County of LosAngeles allowing the city to receive up to $543,089 for thestate homeland security grant program. The funding benefits

Spotlight On CBA StudentOrganizations

What do you do whenyour proposal to stage a ben-efit concert in the Pyramidfor disaster relief (with atwo-month lead time) isnixed? How do you persuadethe consul general of Indiato speak on campus? Howdo you assist low-income,elderly, foreign student orlimited English-speakingclients in realizing $590,000

in tax credits and returns in one year? Answers to the above questions are: Organize the concert to take place next semes-

ter, use the Carpenter Performing Arts Center,realize $15,000 for direct donations, and subsidizetravel for 35 students to fly to Louisiana to dorebuilding during spring break (AmericanMarketing Association). Partner with the CSULBYadunandan Center for India Studies and bring theconsul general of India to speak to a packed houseat The Pointe conference center (InternationalBusiness Students Association). Collaborate withthe Board of Equalization, Internal RevenueService and Accounting faculty to offer the annualVolunteer Income Tax Assistance (VITA) program(Beta Alpha Psi/Accounting Society). The Associated Business Students

Organization Council (ABSOC) and 11 businessstudent organizations host an array of profes-sional development, social, recreational and com-munity service events each year. The organiza-tions are: American Marketing Association, BetaAlpha Psi/Accounting Society, Black BusinessStudents Association, Delta Sigma Pi, FinancialManagement Association, Hispanic StudentsBusiness Association, Human ResourcesManagement Association, Information SystemsStudent Association, International BusinessStudents Association, Society for Advancementof Management, and MBA Association. Students find a sense of community and develop

their organizational and leadership skills. Examplesof opportunities include speaker series, experientialleadership simulations, networking mixers, com-pany tours, regional and national conferences andcompetitions, as well as programs offered by pro-fessional chapter affiliates. Students are alsoinvolved in fundraisers for charities and hands-onservice projects such as beach cleanup, holiday par-ties for underprivileged children, and more. By actively engaging in out-of-classroom activ-

ities that allow them to practice skills related totheir majors and future career interests, studentsprepare for life beyond the classroom. The inter-action with business professionals strengthens theconnection of our alumni and community part-ners with the College of Business Administration.We invite and welcome further connections, so ifyou are interested or would like more informa-tion, visit http://www.csulbabsoc.com/, email [email protected], or call 562/985-5297.(The College of Business Administration at Cal State

Long Beach is an AACSB accredited business school thatprovides undergraduates and MBAs with the knowledgeand skills necessary to be successful in their careers andto propel the economic development of our region.)

By Dr. Jeane RelleveCaveness, AssistantDean of Students

(Please Continue To Next Page)


the department of disaster preparednessand emergency communications as well asthe fire department.Groundwater Monitoring – Tonight the

city council considers transfer of severalpermits allowing the monitoring of ground-water at three different gas stations. Thestations, formerly owned by ExxonMobilCorp. are now owned by Circle K. Citystaff is recommending the transfer of thepermits since Circle K purchased the gasstations and is required to continue ground-water remediation at the sites.SEC – The department of financial

management is recommending the citycouncil decline the opportunity to volun-tarily self-report any of the city’s bond-issuing transactions to the Securities andExchange Commission (SEC). LastMarch, the SEC issued its MunicipalitiesContinuing Disclosure Cooperation

(MCDC) initiative, offering favorable set-tlement terms to bond issuers for voluntar-ily reporting material misstatements madewhen issuing bonds. According to a citymemo issued by the department offinance, “Although staff has worked dili-gently over the years to prevent a materialmisstatement, the rules of interpretationschange and definitions of ‘material’ maybecome unclear; no operation is ever per-fect and some mistakes may occur.”Airport Improvements – The city

council is considering authorizing CityManager West to submit an applicationfor the airport improvement programgrant for fiscal year 2015 (FY15). Thecity plans to use the money for perimetersecurity improvements such as automaticgates, intrusion detection systems andsecurity network infrastructure. In addi-tion, the city council also considers staff

recommendations to continue withimprovements to Taxiways J and D andaward the construction contract to Sully-Miller Contracting Company of Brea. Theamount of the contract is not to exceed$9,356,250.Disabled Access Appeals Board –

Tonight the city council considers anamendment to the municipal code thatwould dissolve the Disabled AccessAppeals Board (DAAB) and transfer itsfunctions to the Board of Examiners,Appeals and Condemnation (BEAC). Thereason for the request, which was madeby Mayor Garcia, is that so few hearingsare held by the DAAB because of infre-quent meetings and a lack of writtenappeals to the board. According to a lettersigned by City Attorney Parkin, “Staff ofthe development services departmentbelieves that the recommended action

will serve to conserve resources andstrengthen the BEAC, while at the sametime retaining all of the core functions ofthe DAAB.”Bixby Knolls Association – The Bixby

Knolls Business Improvement Association(BKBIA) is asking the city council to con-tinue the association’s assessmentthrough September 30, 2015. If approved,membership for the BKBIA will be $250for all businesses except for non-profits,which will be assessed a $150 fee. It isestimated the BKBIA will generate$131,487 in FY15.Changes To Public Hearings – Fifth

District Councilmember Mungo and othersare recommending the council vote todirect City Attorney Parkin to amend themunicipal code to reduce costs imposed oncity businesses. The proposed changes are


• Cataract Microsurgery including

Crystalens©

• Glaucoma Management & Surgery

• Pterygium

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• Custom Blade-Free

• Eyelid Plastic Surgery

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• Diabetic Eye Care

• Glasses and Contact Lenses


NEWSWATCH10 Long Beach Business Journal November 11-24, 2014

aimed primarily at the noticing require-ments for public hearings associated withzone changes, conditional use permits andother land use matters. The overriding goalis to reduce the mailing costs associatedwith such hearings.Labor Agreement – The city council

considers tonight authorizing CityManager West to negotiate a citywide proj-ect labor agreement with the LosAngeles/Orange County Building andConstruction Trades Council. The goal is todevelop and implement a local workforcetraining and local hire policy. The agenda issponsored by Councilmembers Gonzalez,Uranga, and Al Austin.Blight Removal – Several coun-

cilmembers are recommending that CityManager West and Director of Economicand Property Development DirectorConway create a policy to allocate pro-ceeds from the sale of city-owned prop-erty to fund blight removal. If approved,the policy will also fund economic devel-opment efforts, revolving loan funds forsmall business establishments and localincentives for business to locate orexpand in the city. Currently, LongBeach has close to 50 properties readyfor sale once the state approves its LongRange Property Management Plan. Theproperties are a remnant of the redevel-opment era.Tom Modica – Tonight the city council

votes to approve the appointment of

Deputy City Manager Tom Modica as thenew assistant city manager.Douglas Park – On November 6, the

planning commission voted unanimouslyto approve a waived parcel map request fora Douglas Park retail center located at3801 Lakewood Blvd. The vote effectivelyallowed the petitioner, NTL RetailInvestments LLC, to divide the existing1.43-acre site into two smaller parcels, one

28,857 square feet and the other 33,332square feet. The purpose of dividing theparcel is to allow the applicant to sell theproperties individually at a later time if sodesired. Two separate retail buildings arelocated on the parcels, each approximately5,000 square feet. Located there are aJersey Mike’s Subs, Starbucks and FlameBroiler. A California Fish Grill is expectedto open at the location in December. �


The Long Beach Police Department’sCrime Laboratory recently joined thecompany of some of the world’s finestforensic agencies when it received accred-itation last month. The honor wasbestowed by the American Society ofCrime Laboratory Directors – LaboratoryAccreditation Board (ASCLD/LAB). Described as an arduous and challeng-

ing process, accreditation requires aforensic laboratory to conform to stan-dards applied to similar facilities aroundthe globe. Before becoming accredited,lab personnel were subject to a programof surveillance visits, annual internalaudits and what is referred to as a robustprogram of proficiency testing. “This achievement is the highest level

of accreditation a crime laboratory canattain, and a major milestone,” PoliceChief Jim McDonnell said in a statement.“Forensic analysis supports our ability to investigatecrimes, and is a vital law enforcement tool. This accom-plishment is a testament to the hard work and dedicationof our crime lab employees and demonstrates their com-mitment to the residents of our community.”The crime lab received accreditation in the fields of

drug chemistry, toxicology, firearms, latent prints andcrime scene. The lab began preparation for accreditationin March of 2011, and now joins more than 332 other lab-oratories worldwide that are recognized under the interna-tional testing program. Included in this elite group are theU.S. Secret Service, Orange County Crime Lab, and LosAngeles County Sheriff’s Department, as well as the U.S.Food and Drug Administration.

“I’m thankful to Chief McDonnell and our policedepartment, particularly our crime lab employees, for thisoutstanding achievement,” Mayor Robert Garcia said in astatement. “This is another example of using technologyto support public safety, and it’s something our entire citycan be proud of.”According to a press release issued by the police depart-

ment, accreditation is highly valued for the oversight andreview it requires of safeguards established to maintain theaccuracy and reliability of results produced by the laboratory. “The LBPD’s crime lab has established a robust qual-

ity management system, demonstrated the ability tomeet the over 400 internationally recognized standards. . . and provided confidence in the quality of work pro-duced,” the release stated. �

Long Beach Police Department Crime Lab Honored With International Accreditation

Pictured above in the firearms lab are, from left: Supervising Criminalist Troy Ward, Criminalistand Acting Administrator Jasmine Jefferson and Criminalist Alexandra Giuliano. Behind themare the dozens of guns stored in the lab’s firearms collection. At right, Criminalist Greg Gossagetests marijuana in the controlled substances area of the Long Beach Crime Laboratory. Below,Heather Cochrane, a forensic specialist II, is shown examining a fingerprint found at a crimescene. (Photographs by the Business Journal’s Thomas McConville).

City Hall News In Brief(Continued From Page 9)

In its October 28 edition, the LongBeach Business Journal presented alengthy question and answer discussionwith Mike Conway, the city’s director ofeconomic and property development,who is overseeing the proposed projectfor a new civic center. Many of the ques-tions concerned the cost associated withthe proposed development and how cur-rent city hall expenses are being deter-mined and applied to a new civic centercomplex. There are two proposers for thecivic center site being considered.On November 7, the city issued the fol-

lowing RFP:“This RFP is for a financial consultant

(Consultant) to serve as a consultant to theFinance Director on a Public-PrivatePartnership (P3) Project, should the Citydecide to move forward with negotiationof a Project Agreement. The Consultantwould be a participant in a City andDeveloper team to prepare all documentsand negotiate a Project Agreement and

create the financing structure for the P3Project. In general, the Consultant will nothave any direct assignments related tonegotiating or development of documents.The Consultant’s role on the team is toprovide advice and recommendations bothto the Project Team and the FinanceDirector and the City Treasurer. TheConsultant’s role will be to generally sup-port the broad role and responsibilities ofthe Finance Director and City Treasurer inthis Project. There are two key goals ofthis Scope of Work: minimize the projectcost and risk to the City, and minimize thetime on the project by the Finance Directorand the Treasurer. Due to the nature of thework, this is intended to be a one or, atmost, two person assignment. The numberof hours is expected to be relatively low inrelation to other consultants and advisorson the Project as there will not be specificassignments related to day-to-day work.”The bid due date is November 19. For

more information (you must register as avendor), visit: /www.planetbids.com/por-tal/portal.cfm?CompanyID=15810&BidID=15852. �

Civic Center RFP(Continued From Page 1)

Downtown TaskForce Releases

Revised ProposalsFor Entertainment

PermittingFinal Recommendations To Go To City Council In December


On October 29, the Downtown Dining &Entertainment District task force held ameeting to discuss its revised proposed rec-ommendations for changes to the entertain-ment permitting process in the district. Thetask force’s original recommendations werereleased in August. Revisions included anew proposal to allow venues to apply foroutdoor amplified entertainment as part ofthe permitting process, a suggestion thatwas well received but with some caveats,according to Rachael Tanner, program spe-cialist with the city manager’s office.“What we had proposed at this point was

you can have outdoor amplified entertain-ment, which is a step forward. Right nowyou cannot have outdoor amplified enter-tainment,” Tanner said. Tanner worksalongside the task force as a representativefrom the city manager’s office. Under the



NEWSWATCHNovember 11-24, 2014 Long Beach Business Journal 11

new proposal, “You can have music playingthrough speakers, but maybe not a liveband. We thought maybe it would be toonoisy,” she explained. Attendees at the October 29 meeting

were pleased with the idea of outdoorentertainment, but pointed out that, if out-door entertainment was to be allowed, “itshouldn’t matter if it is live or recorded, orwhat type of entertainment it is as long asit stays within the sound ordinance and reg-ulations,” Tanner said. Of the 15 attendeesat the October 29 meeting, most were busi-ness owners in the district. Other proposed changes to the permitting

process included defining a nightclub-type

establishment as a venue with a Type 48 ABCliquor license that has entertainment, requir-ing nightclubs to go through an $8,500 con-ditional use permitting process in addition toobtaining an entertainment permit, andrequiring establishments in the mixed-useportion of the district to apply for enhancedentertainment permits. Type 48 ABC liquorlicenses apply to bar and nightclub-typeestablishments that do not serve food.In order to obtain an enhanced entertain-

ment permit, a sound study performed by alicensed acoustical engineer would berequired to determine if an establishment isable to meet the required sound standardsas defined in municipal code. Once an establishment has an entertain-

ment permit, they would be required toadhere to a revised standard for what is

considered a reasonable amount of noiseemanating from the property. The revisedtask force proposal suggests defining thisreasonable sound standard so that noisecoming from an establishment must not beheard more than 50 feet from the property. The task force has been working on these

recommendations since last year. InSeptember 2013, the Long Beach CityCouncil placed a moratorium on theissuance of entertainment permits to busi-nesses with Type 48 ABC liquor licenses inthe Downtown Dining & EntertainmentDistrict. The moratorium was placed sothat the task force, made up of local resi-dents, business owners and city representa-tives, could reevaluate the policies govern-ing entertainment permitting in the districtand propose revisions to those policies.

A comment period on the task force’srevised proposed regulations closed yes-terday, November 10. “We will have onefinal meeting of just the task force andcity staff to look at the feedback we havegotten and prepare our final recommen-dations, and those will go to council inDecember,” Tanner said.“It has been a really positive public

process so far and I am really excited aboutthe participation we have seen from peoplewho seem very knowledgeable andinvested in what happens downtown. Thetask force and the city have been reallyresponsive and eager to collaborate,”Tanner reflected. “The process is goingreally well and I am excited to see it cometo a close [in a way] that I think most peo-ple will be happy with.” �

businessmade

personal

Laserfiche MovesQuickly To Fill TopPositions FollowingDeath Of Founder


Long Beach-based Laserfiche, a soft-ware development company with a world-wide reach, announced last week the pro-motions of Chris Wacker to CEO and KarlChan to president. Wacker has worked at

Laserfiche since 1987and has served as execu-tive vice president since2011. He fills the posi-tion left by his wife, thelate Nien-Ling Wacker,founder of Laserfiche,who passed away inOctober. The company’s web-

site states: “Whatstarted in 1987 as asmall custom softwaresolutions business hasgrown into the world’slargest privately ownedenterprise content man-agement (ECM) soft-ware company. Alongthe way, we’ve picked

up 4 million users and developed softwarethat helps organizations make documentsaccessible and enables workplaces to oper-ate at their full potential.”The firm has offices in Ft. Lauderdale

and Washington, D.C., plus overseas loca-tions in Toronto, London, Shanghai, HongKong and Guadalajara.Chan has worked at Laserfiche since

1989 and has served as chief technologyofficer since 2005. “For me, Nien-Ling’s passing is an inde-

scribable loss. She was my partner in life,an inspiration and an exceptional person,”Wacker said in a statement. “While hervision will continue to drive Laserfiche,there will be a minimal impact on opera-tions. Since 2012, we have been transition-ing day-to-day management to a team thatKarl and I are proud to lead,” he said. Chan commented, “For the last 25 years,

I’ve focused on pushing technical advance-ments in our software . . . While I’ll con-tinue to focus on the technology, I’mexcited to have the opportunity to shape thefuture of the company.” �

Chris Wacker

Karl Chan



during the upcoming holiday shoppingseason. For the city officials, the chal-lenge is how to get high end retail storesto locate here.More than 97 percent of the 170 survey

respondents work in Long Beach and 67percent live in the city as well, but, collec-tively, they estimate that 70 percent of theirholiday shopping will not be done at localretailers. Only two respondents, bothwomen, say they would do all their shop-ping in the city.South Coast Plaza continues to be a big

draw for residents. Responding to the ques-tion: “If you are going to shop outsideLong Beach, what is your likely destination(you may choose more than one),” SouthCoast Plaza tops the list by 55 percent ofthe respondents. But online shoppingreceives the most attention as 71 percentindicate they are doing their holiday shop-ping online. Newport Beach’s Fashion

Island Center is a favored destination by 21percent of the respondents, with Cerritosand Lakewood centers at 18 percent each.But the big surprise is how many people

want an Apple store. Asked to name up tothree stores they would like to see open inLong Beach, the top pick, by far, is an Applestore. It is the pick by 24 percent of therespondents. Other top choices are, in order:Nordstrom, Anthropology, Urban Outfittersand Kenneth Cole, all at 20 percent or less.The popularity of Apple may be a further

indication that residents are becomingmore tech oriented and that new businessesare reflecting a growing creative sectoropening up shop here. It also helps thatMayor Robert Garcia is part of theyounger, tech-savvy generation. In fact,one of his early announcements is that he ischanging the city’s technology departmentto technology and innovation.The Pike and Rainbow Harbor, both

straddling Shoreline Drive in DowntownLong Beach, may be where some of thestores recommended in the survey find a

home. H&M, a trendy clothing store, is setto open at The Pike next year, andRestoration Hardware, which has been pop-ular since opening adjacent to theAquarium about a year ago, is expanding,adding a second level where the Mai TaiBar and Kavikas once operated. Other areasfor an Apple store could be the Los Altosshopping centers along BellflowerBoulevard or part of a planned developmentat 2nd Street and Pacific Coast Highway.The nearest Apple store is in Cerritos, solocating one at The Pike should be enoughmarket separation for Apple executives toconsider it. Maybe a writing campaign tograb the attention of Apple is in order?Another item popping up from the sur-

vey is how to reach the many people whowork in the city and have high disposableincome, but live outside the city. Anwoman who works in the public sector onthe east side said she is not familiar withLong Beach and “what stores exist herealready.” The city may want to consider apromotional campaign reaching state and

federal employees. After all, the city doeshave scores of small retailers and boutiquesalong some of its corridors that provide topquality, high-end products.The survey, through an e-blast, provided

a fairly representative sampling of workingresidents but did not request ethnicity: • 56 percent women• Age breakdown: 12% under 30; 24%

31-44; 28% 41-55; 19% 56-65; and 17%66 or older.• 67% live in Long Beach; 21% Orange

County; 6% South Bay; 3% Mid-Cities;and 3% other Los Angeles County.• Of the Long Beach residents, 55% live

in East or Southeast Long Beach (90803,90808, 90814, 90815 zip codes); 21% inthe Bixby Knolls area (90807, 90810);11% Downtown (90802); with the remain-der scattered throughout the western por-tion of the city.One woman sums up what is probably

the feeling of most local residents: Bring in“any upscale department store – would loveto shop Long Beach!!” �

The Restoration Hardware outlet at The Pike at Rainbow Harbor is in the process of expanding into vacant retail space on the second floor, where Mai Tai Bar recently closed. Restoration Hardware has beenat The Pike since 2013 and was the first outlet store to locate there. DDR Corp., the property management firm, is in the process of repositioning The Pike as an outlet center, as evidenced by a proposal slatedfor California Coastal Commission review on November 14. (Photograph by the Business Journal’s Thomas McConville)

Retail Survey(Continued From Page 1)

Northgate Market Opens On Cherry In North Long BeachA ribbon-cutting ceremony washeld recently to celebrate thegrand opening of a full-serviceGonzález Northgate Market at4700 Cherry Ave. The store,which has drawn large crowdssince opening last month, ismuch needed in an area withfew options for grocery shop-ping. Pictured in front of the51,000 square-foot building is7th District CouncilmemberRoberto Uranga (right) withStore Director Adrian Martinez.(Photographs by the BusinessJournal’s Thomas McConville)




Certain California businesses may be eli-gible for a partial tax exemption when pur-chasing specific equipment and buildings.On July 17 the California Board ofEqualization (BOE) unanimously approveda 4.1875 percent tax exemption for manu-facturing, research and development. Thevote signaled the end of a months-longprocess during which time BOE board-members developed the final wording ofthe exemption and met with stakeholdersfrom various industries throughout thestate – manufacturing, information tech-nology, recycling and biotechnology.According to a statement issued by the

BOE, the exemption was part of a broadereconomic development initiative approvedby Gov. Jerry Brown. In the statement, BOEBoardmember George Runner describedthe exemption as an attempt to stanch theflow of California employers, lured out ofstate by the promise of lower tax rates.“For years, California has been losing

manufacturing jobs to other states,” Runnersaid. “This new tax exemption will help usfight to win back these good-paying jobs.It’s vital to our economy we get this right.”Last week the BOE held a town hall-

style telephone conference call to fieldquestions from the public about the newexemption. Representatives, includingBoard Chairman Jerome Horton, tookmore than 20 calls and discussed the vari-ous types of equipment and buildings thatare eligible for the tax break.He explained that in order for a person or

business to take advantage of the exemptionthey must be involved primarily in manufac-turing or research and development. If a per-son or business is eligible, the exemptionapplies to purchases of “qualified tangibleproperty,” which would include special pur-pose buildings, research equipment andmachinery. A BOE rep explained that theexemption wouldn’t apply to consumableitems with a useful life of less than a year.One person, who identified himself as a

manufacturer from Los Angeles, asked ifrepair parts purchased for manufacturingequipment would qualify. BOE reps saidthose items would not be eligible becausethey aren’t capitalized.

“When you buy repair parts for yourmanufacturing equipment, you’re going toexpense it in that year so it’s not a capital-ized piece of equipment,” the BOE rep said.Another woman who said she operated a

research and development firm asked if thecomputers used by engineers at her firmwould qualify.“My understanding is that computers

can qualify. They have to be used prima-rily for research and development so theycan’t be used for other purposes like regu-lar administration and things like that,”the BOE rep responded.Though the exemption was approved on

July 17, it was enacted retroactively to July1. Individuals who made purchases imme-diately following that date may be eligiblefor the exemption. For more information,visit www.boe.ca.gov/sutax/manufactur-ing_exemptions.htm. �

Bynum Named To CommerceCouncil On Innovation And

EntrepreneurshipLou Anne Bynum, executive vice presi-

dent of college and economic developmentat Long Beach City College (LBCC) and aport harbor commissioner, was selectedrecently by U.S. Secretary of CommercePenny Pritzker to serve on the NationalAdvisory Council on Innovation andEntrepreneurship (NACIE).The council is dedicated to “identifying

and recommending solutions to issues crit-ical to driving the innovation economy,including enabling entrepreneurs and firmsto successfully access and develop askilled, globally competitive workforce,”according to the its web page. The 27 NACIE members were selected for

two-year terms. “The new NACIE membersare a diverse and dynamic group of success-ful entrepreneurs, innovators and investors,as well as leaders of nonprofit organizationsand academia,” Pritzker said in a statement. “I look forward to participating on the

council and sharing how we support smallbusiness as part of our economic develop-ment and award-winning entrepreneurshipprograms, and how we work with the busi-ness community to educate and train work-ers with the skills needed in today’s econ-omy,” Bynum said in a statement. �

Manufacturing And R&D BusinessesEligible For New State Tax Exemption



that studies have shown San Mateo andOrange Counties are at risk of a 100-yearevent if sea levels rise by 4.6 feet, with SanFrancisco at greatest risk. That puts half amillion people at risk of a natural event thaton average only happens once in 100 hun-dred years, he noted.

“My assessment is, if you look at all ofthe data, the most probable worldwideincrease in sea level will be somewherebetween 3 and 7 feet,” Schubel said.“There are large regional differences, notbecause the ocean is behaving terriblydifferently, but the land does,” he said,explaining that, in areas where land is ris-ing due to tectonic activity, sea level risemight not be as noticeable. Areas with

lower elevations would more greatlyexperience the impacts. For example, due to its low-lying delta

region, parts of the country of Bangladeshare at risk of eventually going under sealevel. “Pretty soon, it will be under water,and [finding] fresh water there will also bea major challenge. There will be millionsof environmental refugees,” Schubel said.Although sea levels have fluctuated

throughout the Earth’s history, theyremained stable through much of mankind’stime on Earth, Schubel said. But sea levelshave been rising more rapidly than has beentypical in human history since about 1880.Since then, the sea rose 20 centimetersthrough 2005, according to data he pre-sented in a PowerPoint slideshow.Two factors cause sea levels to rise:

thermal expansion, the phenomenon inwhich water expands when heated, and theaddition of new water from melting,Schubel explained. “Right now it is about50/50 thermal expansion and the additionof new water,” he said of the causes ofcurrent sea level rise. “In the short term,thermal expansion probably will win out.Over the longer term of many decades, weexpect that the addition of new water willbegin to be the larger of these two sig-nals.” Water level rise from melting iceonly occurs from ice melt from landsources, he emphasized. Sea ice meltingdoes not elevate the sea level, just as melt-ing ice in a glass does not increase theamount of the water in that glass.Climate change is the culprit behind

both thermal expansion and the additionof new water to the sea, Schubel stressed.“The scientific evidence is unequivocalthat the earth is warming,” he said. From1970 to 2010, temperature has steadilyrisen to slightly higher than one degreeabove the average long-term temperature,he pointed out. Fluctuations haveoccurred from decade to decade but,when a line is drawn through the data ona graph, the long-term trend of increasingtemperature becomes clear. “If you look at the short term fluctua-

tions, you could pick out years in there tomake almost any case that you want. Butthe trend is very clear that the earth iswarming, and that has consequences,” hesaid. Data measured at Mauna Loa,Hawaii, illustrated that the concentration ofcarbon dioxide in the atmosphere hasincreased by about 72 parts per million byvolume during the same time period.Although most scientists attribute cli-

mate change to rising carbon dioxide in theatmosphere, at this point sea level rise is

imminent regardless of the reduction of thecompound in the atmosphere. “If we wereto eliminate all carbon dioxide emissionstomorrow, sea level would continue to risefor decades and maybe centuries. Moreslowly, but it would continue to rise,”Schubel said.The top five cities on our planet most at

risk of being impacted by sea level rise arein the United States, according to a studyby the United Nations. In order from num-bers one through five, these cities areMiami, New York, New Orleans, theTampa Bay/Fort Lauderdale area andVirginia Beach. San Francisco and LosAngeles are also high on the list, Schubelsaid. Insurance companies Allstate andState Farm are so concerned about thepotential impacts of sea level rise inFlorida that representatives from bothcompanies have said they might pull serv-ice from the entire state, he noted.If rising seas were to impact California,

one of the natural resources at greatest riskis wetlands. If sea levels rise, wetlandswould be forced to migrate inward, whichresearch has shown they have done in otherperiods of sea level rise, Schubel said. Butin the past century, Californians have builtout a vast amount of infrastructure thatwould prevent this from occurring. “InCalifornia, think of all of the coastal infra-structure that we put in: railways, high-ways, treatment plants, power plants . . . forwetlands to be able to migrate landward,there aren’t very many places they can go.”To prevent the loss of more of our wetlands(Schubel estimated 95 percent have alreadybeen lost to development), California mustharness its scientific and engineeringresources to plan ahead and design thecoast it wants for the future, Schubel said.Another result of sea level rise is more

impactful storms. “It’s not that the stormsget stronger, but as sea level goes up, youput the same storm on top of it and on ahigher sea, it will cause more damage,”Schubel said. In a follow-up interview with the

Business Journal, Schubel went more indepth into the potential effects of rising sealevel on extreme weather. “If you look at some storms, like hurri-

canes, they get their energy from the ocean,so it is not unreasonable to expect that, asthe ocean and air warms, they will increasein intensity because they get their energyfrom a warmer ocean,” he said.“The probability of having extreme

weather events goes up as the earth getswarmer,” he said, but noted that, while much

Jerry Schubel (right), president and CEO of the Aquarium of the Pacific, and Clay Sandidge, headof the Long Beach Area Chamber of Commerce’s Green Business Council (GBC) and president ofgreen energy solutions company Muni-Fed Energy, chat at a GBC event at the Long Beach Marriotton October 29. Schubel was the keynote speaker of the event, which focused on water and trans-portation-related issues. He spoke about the likelihood and impacts of sea level rise. (Photographby the Business Journal’s Thomas McConville)

The diagonal line throughthe data on this graph illus-trates a long-term trend ofincreasing temperatures.From 1970 to 2010, tem-peratures have risen toabout one degree abovethe long-term average.(Chart provided by theAquarium of the Pacific)

Climate Change(Continued From Page 1)

(Please Continue To Top Of Next Page)



has been discussed in the media aboutincredibly damaging storms like HurricaneKatrina and Superstorm Sandy possiblybeing tied to climate change, there is not yetenough data to uncover a trend. “The evi-dence like hurricanes or typhoons – wedon’t have a long enough record to tie any

single one to a changing climate,” he said.The impact of future stronger storms

would depend on how well we prepare forthem, Schubel noted. “The impact dependson how seriously we take it and howquickly we adapt to the new normal. The best way to curb the impacts of cli-

mate change, including sea level rise andstronger storms, is to decrease use of fossilfuels, Schubel said. There is no one solu-tion to do so, but many solutions, he said –solar power, wind power, nuclear power,electric power – there are many ways togenerate energy without emitting carbon

dioxide into the atmosphere. Harnessingthese energy forms is the best way toreduce the impacts of climate change in thelong term, he emphasized; but, in the shortterm, humanity is going to have to findways to protect itself from the impacts of awarming world with rising seas. �

New Lung NoduleCenter Opens AtMemorial’s ToddCancer InstituteOn November 3, a new Lung NoduleCenter for screening and treatingpotential and diagnosed lung cancerpatients opened at the MemorialCareTodd Cancer Institute at Long BeachMemorial Medical Center. The centerfeatures innovative technology meantto help doctors better diagnose andtreat lung cancer, as well as to reducediscomfort and recovery time forpatients. Once such device is anendobronchial ultrasound machine,which enables doctors to use a smallneedle to biopsy swollen glandswithin lungs without having to createan incision. Using the equipment,“We go in and using real-time ultra-sound imaging we can see the needlegoing into the gland,” Dr. RobertLiou, a pulmonologist at the center,told the Business Journal. The LungNodule Center is one of few centersin California to have a 320-Slice CTScanner, which can take rapid images of a moving lung for more accurate diagnosis. After nodules are detected through this technology, a team of specialists works directly with patients to determine their cancerrisk level, and how to monitor and treat the nodules. Following a first visit to the center, a nurse navigator manages and coordinates care for patients. “Our multidisciplinary team has designed a program to identifylung cancer at the earliest possible stage, when there is a better chance of a cure,” Deborah Oates, nurse navigator and registered nurse at the center, said in a statement. In a previously released statement, Liousaid the center “gives patients the care and hope that they need to beat lung cancer.” Pictured, from left to right, are: Dr. Caroline Kim, pulmonologist; Oates; Liou; Dr. Jeffrey Riker, pulmonologist and medicaldirector of respiratory care services for the Long Nodule Center; Dr. Corey Chakarun, diagnostic radiologist; Dr. Sherief Gamie, MemorialCare Imaging Center department chair and medical director of nuclearmedicine for Long Beach Memorial; and Joanna Showman, chief CT technologist for the MemorialCare Imaging Center and Long Beach Memorial. (Photograph by the Business Journal’s Thomas McConville)



The PMA is the negotiating party repre-senting carriers and terminal operators onthe West Coast in contract negotiationswith the ILWU. Those negotiations had,until about two weeks ago, proceeded with-out public contention from either party. Inthe months since July 1, when the contractfor longshore workers at West Coast portsexpired, the PMA and ILWU have issuedjoint statements about once a month or soto let the public and their constituents knowthat negotiations were progressing withoutimpacts to work at the ports. That changed on November 3, when the

PMA issued a press release accusing theILWU of initiating “orchestrated slow-downs” at the ports of Seattle and Tacomaduring the peak of holiday shipping activ-ity. Three days later, the PMA issued a sim-ilar statement announcing the slowdownshad spread to the Port of Los Angeles andPort of Long Beach, which together formthe nation’s largest port complex.The ILWU informed the PMA it would

not dispatch its workers to L.A. or LongBeach “on short notice,” according to thePMA. “We’ve used the same dispatch pro-cedures for qualified crane operators since1999,” PMA spokesperson Wade Gatessaid in a statement. “After 15 years, theILWU leadership has unilaterally decidedto change the rules for hundreds of quali-fied workers who are dispatched daily tohelp operate terminals at the Los Angelesand Long Beach ports,” he stated.The union did not respond to the PMA’s

release dated November 6 but did issue astatement in response to the PMA’sNovember 3 announcement regardingnorthwestern ports. “PMA’s media offen-sive is designed to smear the union and to

deflect responsibility from a growing con-gestion problem that is plaguing majorWest Coast ports,” the ILWU’s November 3response stated.“PMA’s press statement dishonestly

accuses the ILWU of breaking a supposedagreement ‘that normal operations at WestCoast ports would continue until an agree-ment could be reached.’ This is a bold-faced lie,” the ILWU stated. “No suchagreement was ever made, nor could it bemade given the parties’ historic disagree-ment regarding the definition of ‘normaloperations’ – a disagreement that has beenthe subject of arbitrations for decades.”Dr. Noel Hacegaba, chief commercial offi-

cer of the Port of Long Beach, did not directlyanswer the Business Journal’s inquiries as towhether or not the ILWU had initiated slow-downs or if any port tenants had reached outto him about the issue. In his position aschief commercial officer, Hacegaba is theprincipal contact for port customers. Away on a business trip to Tokyo,

Hacegaba responded via e-mail with the

following statement: “The Port of LongBeach continues to monitor terminal activ-ity very closely and engage our industrypartners to facilitate solutions. At the sametime, we continue to encourage our part-ners at the ILWU and the PMA to reach aresolution quickly and amicably. We areconfident both parties understand the sig-nificance of their negotiations to our gate-way and to the national economy. Equallyimportant is our ability to maintain the con-fidence of the cargo owners in our gateway,and that is why we are focused on relievingcongestion and fixing the chassis shortagetoday and for the future.”A shortage of chassis, equipment used

to haul containers via truck, has causedwork slowdowns at the San Pedro Bayports over the past year. In its November 3statement, the ILWU attributed currentslowdowns to the chassis shortage in addi-tion to a shortage of truck drivers and ofrail car capacity for containers.On November 6, more than 100 organi-

zations with interests in international

trade sent a co-signed letter to PresidentBarack Obama expressing concern overthe now-contentious labor negotiationsbetween the ILWU and PMA. The groupsincluded the National Retail Federation,the U.S. Chamber of Commerce, theUnited States Council for InternationalBusiness and many others.“The sudden change in tone is alarming

and suggests that a full shutdown of everyWest Coast port may be imminent. Theimpact this would have on jobs, down-stream consumers, and the business opera-tions of exporters, importers, retailers,transportation providers, manufacturersand other stakeholders would be cata-strophic,” the letter stated.The letter continued, “The threat of a

West Coast port shutdown is creating highlevels of uncertainty in a fragile economicclimate which has forced many businessesto once again undertake contingency plansthat come at a significant cost to jobs andour economic competitiveness. The WestCoast lockout 12 years ago cost the U.S.

ment, said the judges who awarded thefirm the Exploration & ProductionCompany of the Year award.“Through use of sustainability pro-

grams, innovative exploration and extrac-tion techniques, environmental/emissioncontrols and community enhancementprograms, the company appears to be ableto work very successfully in an urban envi-ronment where other companies maystruggle,” the judges said.Founded in 1984, the company started

with the acquisition of Shell’s assets onSignal Hill. Shell was repositioning in oilextraction operations elsewhere, and hadput the Signal Hill assets up for sale. Thefield actually was owned by three largecompanies – Shell, ARCO and Texaco –and Signal Hill Petroleum spent the nexttwo decades consolidating those proper-ties into a single company.

“It was a very, very major accomplish-ment to aggregate ownership,” Slater says.“What that did was open the economic pos-sibility of applying technology and doing alot of things that had not been done beforebecause of the fragmented ownership.As a more mature asset, the field relies

on salt water injection to make the fieldproductive, Slater says. Salt water injec-tion is done “to re-pressurize it (the under-ground reserves) and mobilize the remain-ing oil,” he says.But drilling injection wells and extrac-

tion wells accurately relies on a thor-ough, detailed understanding of the sub-surface soil formations. The high-endtechnology used by the companyinvolves the three-dimensional mappingof the sub-strata in a way that Signal HillPetroleum helped develop, a method ofsubsurface imaging that met the needs ofan oil producing company trying to workin an urban environment.Traditional three-dimensional imaging

“is not very urban-friendly,” Slater says.“Lots of equipment, lots of cable.”Basically, the process relies on thousandsof sensors that detect minute vibrations –but those sensors had to be connectedtogether via cables. Signal Hill Petroleumbegan working with a company that wasdeveloping a system that collected the datawirelessly. When the wireless data gather-ing was perfected, Signal Hill Petroleumbecame the first oil company in the worldto put such a system into field operation. What the data shows the company “is

how the earth is cracked and bent. It’s sim-ilar to what people who study earthquakesare interested in,” Slater says. The datahas, in fact, been shared with institutionsand universities across the nation. And ithas given the company a clearer view ofthe cracks, bends and folds of the earth'scrust – data that the company uses to drillfor crude. It has worked so well that thecompany actually is drilling new wells inthe field – the first new wells in decades.

Currently, the company operates about450 wells and produces about 3,500 bar-rels per day. And it does so largely in har-mony with its neighbors. Debra MontalvoRussell, director of community relations,says Signal Hill Petroleum is a visible,accessible member of the community, andthat helps maintain positive relations withthe people who live and work near thecompany’s operations.“We are out there so much, and we are

giving information, and we are so accessi-ble,” she says. “The difference about ourcompany is that we put a face to thename,” she says. “Most of our employeesare local residents. They are faces thatpeople will recognize in the store, in thecommunity. So people know and trust us.We’re here as members of the community.”“We work really hard to be transparent,

to be face-to-face, to provide real informa-tion, to open the gates,” Slater says.“Come on in and take a look – we’ll showyou what we do and how we do it.” �

West Coast Oil & Gas 2014 Annual AwardsThe West Coast 2014 Oil & Gas Awards

Ceremony was held October 21 in Bakersfield.California State Sen. Jean Fuller (18th

Senate District), who was the guest of honor atthe awards ceremony, told the crowd gatheredfor the event, “This should be as important toCalifornia as the Academy Awards or moreso.

That’s how important your industry is.”The winners of each of the 15 categories are

chosen by a panel of judges, and are notrevealed until the ceremony. In addition toSignal Hill Petroleum, other winners are:• Award for Drilling Excellence – BakerHughes• Award for Excellence in Corporate SocialResponsibility – E&B Natural ResourcesManagement Corporation• Award for Excellence in Health & Safety –

Ensign United States Drilling (California) Inc.• Breitling Energy Future Industry Leader –Robert Murphy, Chevron• Construction Company of the Year – EIU ofCalifornia Inc.• Consultancy of the Year – Roberts Companies• Engineering Company of the Year – TJ CrossEngineers, Inc.• General Industry Service Award – Tachyus• Industry Supplier of the Year – MetalSupply, Inc.

• Kenworth Truck Company Oilfield ServicesCompany of the Year – Halliburton• MTS Solutions Industry Leader – SteveLayton, E&B Natural Resources ManagementCorporation• New Technology Development of the YearAward – Clearsign Combustion Corporation• VZ Environmental Award for Excellence inEnvironmental Stewardship - Preferred Sands• Water Management Company of the Year –Water Planet Engineering �

Signal Hill Petroleum(Continued From Page 1)

Longshore Workers(Continued From Page 1)

Repairing The BreakwatersWorkers from Connolly-Pacific Co., a rock quarrying and marine con-struction company, repair damage to the Middle Breakwater and SanPedro Breakwater outside the San Pedro Bay Ports. In late August, ahurricane off the coast of Mexico caused unusually strong waves topound the three breakwaters protecting the ports and the Long Beachshoreline, damaging them. According to Greg Fuderer, senior publicaffairs specialist with the corps, the worker pictured is guiding acrane operator who is placing a 10-ton rock on the MiddleBreakwater. About 20,000 to 30,000 tons of rocks are needed tocomplete the repairs, he said. In September, the U.S. Army Corps ofEngineers, which owns the breakwaters, determined the cost to repairthe most damaged portions of the breakwaters would total $20 mil-lion. The cost to repair the remaining lesser-damaged portions of thebreakwaters still hasn’t been confirmed. Repairs began in Octoberafter the U.S. Army Corps of Engineers provided $5 million toConnolly-Pacific for the work, according to Fuderer. Jim Fields, proj-ect manager with the U.S. Army Corps of Engineers, said corps head-quarters has provided another $4.5 million. They are trying to find additional funding to cover the remaining $10.5 million needed to repair the most damagedportions of the breakwaters, he noted. (Photograph by the U.S. Army Corps of Engineers)



economy $1 billion a day. It took half ayear for the ports to clear the backlog andrecover from this 10-day shut down. A shutdown now could be even more

costly. A new study released in June by theNational Association of Manufacturers andthe National Retail Federation anticipatesimpacts at a much greater cost in 2014 –nearly $2 billion in daily costs to the econ-omy for a five-day interruption.”There has been no word from either the

ILWU or PMA as to whether or not a workstoppage is indeed imminent. �

Port News In Brief � By SAMANTHA MEHLINGER, Senior Writer

New Execs At Long Beach PortOn October 27, the Long Beach Board ofHarbor Commissioners confirmed theappointments of four new executives tothe Port of Long Beach, all of whom werehired from outside of existing port staff: • Duane Kenagy was hired to fill the

newly created position of capital programsexecutive, working directly under ChiefExecutive John Slangerup. Kenagy isresponsible for overseeing the port’s capitalimprovement program. He leaves his posi-tion as senior vice president of Moffatt &Nichol, a Long Beach-based internationalengineering consulting firm, where he hasworked since 1994. Kenagy has 30 years ofengineering and management experience,has a bachelor’s degree in structural engi-neering and is a registered civil engineer. • Diane Pierson was appointed by the

commission as director of project controls,which is also a newly created position. Inthis role, she serves in the engineeringbureau’s program delivery group oversee-ing cost and scheduling for port develop-ment programs. She leaves a position atCity of Hope in Duarte where she workedfrom 2011 to 2014 as project controls man-ager. Prior to that she served as the chief ofproject controls for the U.S. Army Corps ofEngineers’ Los Angeles District. She has abachelor’s degree in accounting and a mas-ter’s in business administration, and is acertified public accountant. • Appointed by harbor commissioners to

fill the position of director of finance wasBetsy Christie, who is to oversee all financialfunctions for the port. Christie most recentlyworked for container terminal companyNYK Terminals as chief financial officerfrom 2008 to 2013 and previously held vari-ous high-level financial management posi-tions for LifeMasters Supported SelfCare.She holds a bachelor’s degree in accountingand a master’s in business administration,and is a certified public accountant. • Also filling a vacated position is Fred

Greco, who was appointed director ofmaintenance within the design and mainte-nance group of the engineering bureau.Prior to taking this position, Greco servedas public works operations superintendentfor the City of Anaheim since 2013. From2002-2012, he served as deputy director ofoperations and maintenance for theSacramento County Airport System. He hasa bachelor’s degree in aeronautical opera-tions and a master’s in natural science.In other port employee news, Michael

Gold, director of communications and com-munity relations, has been appointed to the

Museum of Latin American Art (MOLAA)Board of Directors. “We are very pleased thatMichael has joined our board and are lookingforward to working with him over the courseof his three-year term,” MOLAAPresident/CEO Stuart Ashman said in a state-ment. “Mike’s passion for art and culture,professional expertise and positive energymake him a great addition to our board.”

L.A. Port Reduces Air EmissionsThe recently released Port of Los Angeles

inventory of air emissions for 2013 shows airpollution within the port was reduced signif-icantly between 2005 and 2013. Diesel par-ticulate matter, a carcinogen and contami-nant, decreased by 80 percent, according to aNovember 3 statement from the port.Nitrogen oxides decreased 57 percent andsulfur oxides decreased 90 percent. Thesecompounds are key causes of smog.Greenhouse gases, which are linked to cli-mate change, were also reduced by about 23percent. “Today, only 6.1 percent of all sulfuroxide emissions throughout the South CoastAir Basin are attributable to port operations– down sharply from 25 percent in 2005,”according to the port. “Likewise, port-relateddiesel particulate matter emissions are nowat 4.8 percent, compared with 10 percent,and nitrogen oxide emissions have shrunk to3.5 percent from 5 percent.” The port attrib-uted the improvements in air quality to cleanair measures it has implemented since 2005,including requiring the use of newer trucksthat create fewer air emissions. “This port’scommitment to clean air is stronger thanever,” Gene Seroka, Port of Los Angelesexecutive director, said in a statement. �

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PERSPECTIVE18 Long Beach Business Journal November 11-24, 2014

I t is something thatthe more than 10

million Los Angelescounty residents don’treally think twiceabout. Air is alwaysthere and there is norisk of running out ofit, like water. The factof the matter is thoughthat air, and the qualityof it, is vital to yourlungs and your health.According to the

American Lung Association’s State of theAir 2014 Report, the greater Long Beach/LosAngeles area ranked in the Top-5 as one of theUnited States’ worst cities in air quality. TheLong Beach/Los Angeles area ranked 1st asthe most ozone polluted city in the country,3rd in long-term particle pollution and 4th inshort-term particle pollution. These numbers seem troubling, but it is

important to understand what ozone and par-ticle pollution mean so you can protect your-self, and help to improve the air around yousince air quality affects lung health of 100percent of the population.Ozone is a gas molecule composed of

three oxygen atoms. Ozone develops in theatmosphere from gases that come out oftailpipes, smokestacks and many other

sources. When these gases come in contactwith sunlight, they react and form ozonesmog. Excessive amounts of ozone areharmful to breathe as it aggressively attackslung tissue by reacting chemically with it.Particle pollution refers to a mix of very

tiny solid and liquid particles that are in theair we breathe. These particles are created bymechanical and chemical processes like con-struction or burning fossil fuels. Our naturaldefenses help us to keep the larger particlesout of our lungs, but those defenses don’tkeep out the smaller particles which can gettrapped in your lungs. Once that occurs, par-ticles can diminish lung function so that peo-ple begin to cough, wheeze or have inflam-mation of lung tissue with short-term expo-sure. Long-term exposure to particle pollu-tion can lead to lung cancer or even death.Nearly half of the people in the U.S. live in

counties that have unhealthy levels of eitherozone or particle pollution but here’s howyou can help protect the lung health of your-self and your loved ones:• Pay attention to forecasts for high air

pollution days• Avoid exercising near high-traffic areas• Avoid exercising outdoors when pollu-

tion levels are high• Do not let anyone smoke indoors, and

support measures to make all places smokefree

• Reduce the use of fireplaces and wood-burning stovesPoor air quality can cause or contribute to

the development of infections, lung cancer,and chronic lung diseases such as asthma orother respiratory conditions. In addition, itcan cause headaches, dry eyes, nasal conges-tion, nausea and fatigue. Also, people whoalready have lung disease are at greater risk.However, air has gotten cleaner in recent

years and there are ways that you can giveback to your community to help make yourair cleaner:• Drive less by using public transportation

or car pool with work colleagues or friends: • Walk or bike when possible to avoid driv-

ing, and exercise at the same time • Make a conscious effort to turn out the

lights and use energy efficient appliances• Don’t burn wood or trash• Make sure your local school system

requires clean school buses to reduce emissions• Shop with a reusable bag instead of using

paper and plastic bagsIf you are always aware of these proactive

steps and do your part to help clean the air,then you are not only assisting to better yourcommunity but you are helping your lunghealth as well. (Robert Liou, M.D., is a pulmonologist at

the Lung Nodule Center, MemorialCare ToddCancer Institute at Long Beach Memorial.)

Air Quality And How It Affects Your Lungs

� HEALTHWISE

By Robert Liou, M.D.

EDITOR & PUBLISHER

George Economides

SALES & MARKETING EXECUTIVE

Heather Dann

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Cori Lambert

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Larry Duncan

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SENIOR WRITER

Samantha Mehlinger

STAFF WRITER

Brandon Ferguson

CONTRIBUTING WRITER

Michael Gougis

PHOTOJOURNALIST

Thomas McConville

COPY EDITORPat Flynn

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Vol. XXVII No. 22

November 11-23, 2014

S eventy-two years agoMGM produced one of

the best films of all time –The Wonderful Wizard OfOz. It was a 1939 film star-ring Judy Garland, and itcontinues to inspire mil-lions today. The Oz characters are

great examples of naturalhuman behavior whenthings go wrong. We getinvolved in the “Blame

Game.” Just like Dorothy, Tin Man, Lion andScarecrow, it is easy to excuse ourselves andaccuse others. This results in being ineffectiveat work and in life.So what can we learn from our Oz characters?1. Dorothy: “There’s no place like home.”

With all her incredible adventures and friend-ships along the way, this was her constant goalthroughout the storyline.LESSON #1 – Clarity of Purpose. She was focused on this goal. She never lost

this very clear picture of the future, in spite ofall the distractions.2. Dorothy: “What would you do with a

brain if you had one?”The motivations for Dorothy, Tin Man,

Scarecrow and Lion for traveling that YellowBrick Road were a little different. But evenso, their destination was the same. All ofthem needed to get to the Emerald City to seethe Wizard.LESSON #2 – Great strategies take into con-

sideration individual goals and motivations.By traveling together towards the same goal

their safety and success were enhanced. Theindividual and organizational goals are alignedin such a way as to accomplish the higher pur-pose. Good leaders understand this connection.

The Tin Man needed a heart. The Lionneeded courage. The Scarecrow needed abrain. Dorothy needed her home. A leadermust be aware of the different needs and moti-vations of the team. 3. All Four In Unison: “Lions and tigers and

bears! Oh My!”Now this was difficult enough for them. Yet

just when you think things can’t get worse,here comes those pesky flying monkeys. LESSON #3 – Deal with it. Great organizations face tough realities

head on. Yet they do not lose sight of their mis-sion. Every worthwhile venture encounterslions, tigers, bears and those flying monkeys.Rather than become distracted, deal with it.4. Oz: “I am the great and powerful Oz!!

Who are you?!”LESSON #4 – Understand the difference

between your role and who you really are.Having a professional PERSONA must be

balanced by your PERSON – your personalauthenticity.The Wizard finally came out from behind his

props and controls – his persona – and engagedthis strange quartet of people as a real person.That’s when the real magic begins. The team

develops a vulnerability-based trust that pullsthem together. Customers are drawn to the hon-esty of spirit and the integrity of action. Theimage and brand can pull people in the door,but just as with the Wizard, it’s the authenticrelationships that keeps them coming back.5. Wizard: “Back where I come from we have

universities, places of great learning, wherepeople go to become great thinkers. And whenthey come out they think deep thoughts, andwith no more brains than you have. But theyhave one thing you haven’t got – a diploma.”LESSON #5 – How leaders frame issues

helps others transform for the better.

Leaders help their followers look at the worldin a way which opens it up and encouragesprogress. He reframed what could be done evenwithout a “brain.” A diploma was possible.Doors which seemed closed are now open. 6. Glinda: “Are you forgetting your ruby

slippers?”LESSON #6 – No one can do it for you.Glinda has informed Dorothy that she has

always had the power to go home. Dorothyasks, “Why didn’t you tell me?” Glinda said,“Because you have to find out for yourself.”Good leaders know that some things have tobe experienced. You can’t always get the important lesson

from being taught or reading a book. Theprocess of becoming a leader is something thatno one else can do for you.Glinda says, “It’s always best to start at the

beginning, and all you do is follow the YellowBrick Road.” It’s your journey. OZ-SOME LESSONS:• Gain clarity of purpose• Align individual goals with organizational

goals• Deal with problems as soon as they show up• Understand the difference between your

role and who you really are• Learn to reframe so others can see possi-

bilities• There are some things that no one can do

for you, or you for others.(Mick Ukleja has co-authored several books

including Managing the Millennials. He helpsorganizations create environments in which allgenerations can thrive. He is a keynotespeaker and president of LeadershipTraq, aleadership consulting firm. His clients haveincluded Fortune 500 corporations and non-profit organizations. Check his weekly blog atwww.leadershiptraq.com.)

� EFFECTIVELEADERSHIP

By Mick Ukleja

Leadership Lessons From The Wizard Of Oz


PERSPECTIVENovember 11-24, 2014 Long Beach Business Journal 19

D epending onwhom you listen

to and what survey iscited, housing pricesare up year over yearat various rates – andeach price range hasits own peculiarities.There certainly isn’t asimple answer – that iswhy so many conflict-

ing reports regularly appear about the sta-tus of housing.The one question that really trumps all of

the others when it comes to housing is, howmuch can people afford? There was a time– in the early to middle part of the lastdecade – when prices escalated at a pacethat had no relation to what consumerscould afford given incomes and expenses.That housing boom was made possible bygovernment policy encouraging homeownership by allowing lenders to offer loanproducts with low introductory rates andstated income programs to get buyers in aproperty, with the only vehicle to sustainthem being the ability to easily pull equityout of the home when extra funds wereneeded.At some point, that equity would be

exhausted and, when prices stopped goingup and then started to fall around 2007, thehousing bubble burst. The real kicker wasthat the two forms of income that sustain arobust housing market – wages and prop-erty appreciation – were pretty muchtapped out.Enter the Great Recession with bailouts,

reform and much tighter lending standards.From the depths of this economic fiasco,housing has climbed out of its hole to apoint. Prices have gone up – not to wherethey were, but higher than in 2009 in mostinstances – and jobs appear to be moreplentiful.But two factors are playing against a

quick – or even steady – upsurge in hous-ing transactions and prices. Lending reg-ulations, as most are aware, are nowherenear as liberal as they were a decade ago,with mostly only borrowers with fullyverifiable income and assets able to qual-ify for a mortgage. Perhaps this is how itshould be to guard against another hous-ing collapse, but the reality is that manyborrowers who could get a loan 10 yearsago cannot do so today. This reality aloneis enough to dampen the housing market,but the really troubling statistic that hasnot been very widely discussed is the vir-

tual standstill in real income when youadjust for inflation.In California, for example, per capita

income and the Consumer Price Index(CPI) have increased at a similar rate overthe past 10 years. Therefore, incomelooks like it’s doubled in the past 20years, but it hasn’t gone very far at all.Most of the income gained has gonetowards paying for goods at increasedprices – inflation’s ubiquitous bite on thedollar earned.Real incomes rose pretty quickly from

1995-2000. But, since then, real incomehasn’t changed much at all, from $46,512in 2000 to $48,434 today (in 2013 dol-lars). That’s an increase of just four per-cent over the course of 13 years.Nationally, the average American familymakes less than it did 15 years ago in realdollars.When you compare this with the

change in home prices over the sameperiod, home prices in California were anastonishing 160 percent higher in 2013than in 2000. Compare this to the fourpercent real increase in income over thesame period, and it is not hard to see thedisparity.To further demonstrate that home

prices are so far beyond the reach of mostpotential buyer-occupants, consider thefact that it has taken California nearlyseven years to regain all jobs lost due tothe 2007-08 recession. That doesn’t eventake into account the additional 1.2 mil-lion jobs still needed to cover the increasein the working-age population. At ourcurrent rate of job additions, this “real”jobs recovery is expected in 2019.Because of the flood of investors in the

market two years ago, prices surged butstarted to flatten as 2013 came to a close.With the so-called “real buyers” or owneroccupants dominating the market again,the real income factor becomes moreimportant to the health of the housingmarket.Right now the regulatory agencies are

looking at some important changes tomake it easier to obtain home mortgages,but, until we see some real income growthto go along with it, housing appreciation isgoing to trudge along pretty much at therate it is moving today.(Terry Ross, the broker-owner of TR

Properties, will answer any questionsabout today’s real estate market. E-mailquestions to Realty Views [email protected] or call 949/457-4922.)

� REALTY VIEWS

By Terry Ross

Wages And Housing Growth At Odds

D epending uponwhere you fall

on the political spec-trum, last week’s elec-tion results wereeither a referendumon the president’spolicies or part of thenatural political cycle,just what happens to asecond-term presidentin a midterm election.

Many of the political ads in the run-up tothe election not surprisingly dealt withhealth care, job growth, or the (in)effec-tiveness of policy makers of all stripes inWashington, D.C. Foreign policy is some-times on the agenda but usually falls victimto the “all politics is local” rule. This is particularly the case with for-

eign trade agreements. The complex andoften long and drawn-out development oftrade policy doesn’t make for a goodsound bite. And yet, election results mat-ter for global trade.In January, President Obama asked

Congress to grant him trade promotionauthority, also known as fast track author-ity, which would allow him to submittrade agreements to Congress for an up-or-down vote without the risk of House orSenate amendments or a filibuster. It’s atemporary power that legislation author-ized in 1974 and again in 2002 but whichexpired in 2007. It makes the president’sjob easier and sends a signal to potentialfree trade partners that the deal negoti-ated is the one that Congress will ulti-mately approve.Trade promotion authority is an essential

part of the president’s plan to wrap up twomajor trade agreements, the Trans-Pacific

Partnership (TPP) and the TransatlanticTrade and Investment Partnership (TTIP).The former is a proposed agreementinvolving 12 nations including the U.S.,Australia, Brunei, Canada, Chile, Japan,Malaysia, Mexico, New Zealand, Peru,Singapore and Vietnam. From the perspec-tive of the President’s Office of the U.S.Trade Representative (USTR), the TPP is agood opportunity to open up new marketsfor American goods and services in aregion that has become dominated byChinese trade and investment. The latter isa proposed pact with the 28 members of theEuropean Union. While the rest of the nation has been

focused on the elections, the USTR hasbeen eyeing a date later this month whenPresident Obama travels to Asia for meet-ings with, among others, China’s PresidentXi Jinping. The hope is that the trip willprovide some momentum to close a deal onPacific trade. The ironic thing is that thedevastating blow the Democrats took onelection night could help the presidentmove both pacts forward.Some of the biggest opposition to giving

Obama fast track authority has come frommembers of his own party who want toreserve the right to amend aspects of theagreement pertaining to labor and environ-mental protections. Similar opposition tocross-border trade agreements with Canadaand Mexico have come from groups nor-mally friendly to the president, includinglabor unions. Republicans are normally considered

more trade-friendly and as a result morelikely to grant the president trade promo-tion authority. But even there, things arenot so clear cut. There’s a natural reluc-tance on the part of Congress to relin-

quish agenda-setting authority to anypresident, particularly one from theopposing party. And both Democrats andRepublicans from regions with keyindustries that are perceived to be vulner-able to freer trade – think certain seg-ments of agriculture and the automotiveindustry – are likely to move more cau-tiously than those with more to gain froma trade agreement. Which brings us back to local politics.

The jockeying has already begun for the2016 presidential election, and both partiesmay decide it’s simply wiser (and easier) toavoid having a discussion about winners andlosers of trade policy with the electorate.Of course, while we’re having the

debate here, the same thing is happeningin the countries with whom the USTR isnegotiating. The fact that any agreement

can be hammered out at all is amazing, letalone among a group of 12 or 29 nations.It’s clear evidence of the importance ofglobal trade to the economic well-beingof nations, despite the clear risk to somehomegrown industries.The prospects for fast track authority

may be brighter with a Republican-con-trolled Congress, but, regardless of the out-come of that debate, trade will continue.Cargo likes the path of least resistance. Ifthe lack of a trade agreement raises barri-ers, it will look for an alternative. In mostcases, it finds one.(Dr. Thomas O’Brien is the interim exec-

utive director of the Center forInternational Trade and Transportation atCSULB and an associate director for theMETRANS Transportation Center, a part-nership of USC and CSULB.)

Election Results And The Trade Agenda

� TRADE ANDTRANSPORTATIONBy Tom O’Brien

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november 11-24, 2014 section a

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