April 1-14, 2014 Section A

April 1-14, 2014 lbbusinessjournal.com

HealthWiseAutism

Awareness –Knowing CanMake TheDifferenceSee Page 18

The College

Of Business

Administration

At CSULB

Businesses Host

Ethical Leadership

Program • See Page 4

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

� By SAMANTHA MEHLINGER, Staff Writer

T he results of the April 8 election could significantly alter theboards of the Long Beach Unified School District and Long

Beach Community College District. Some change is inevitable. Two of the three Community College

Board of Trustee races on the ballot are open seats, which means thefive-member board will welcome at least two new people. And, dueto an open seat, there’s at least one new face joining the five-memberSchool District Board of Education. College Board of Trustees President Jeff Kellogg is the only incum-

bent seeking reelection to the board. He is running against MarshallE. Blesofsky, a physician’s assistant, for Area 1. The college’s founda-tion director, Virginia Baxter, is facing Gregory Slaughter, a teacherand retired police lieutenant, for the open Area 5 spot. Stella Ursua, abusiness owner and educator, and Sunny Zia, a civil engineer and edu-cator, are competing for Area 3’s open board seat. Additionally, iftrustees Doug Otto and/or Roberto Uranga win their respective bidsfor mayor and city council, the college board will have to appoint newmembers or hold a special election for those seats. LBUSD has one open seat and two incumbents running: Diana

Craighead of District 5 is running unopposed; and current School BoardPresident John McGinnis is vying for his seat in District 3 against chal-lenger Juan Benitez, a college professor. District 1 is sure to have a newboardmember, with Megan Kerr, an educational volunteer, and Uduak-Joe Ntuk, an engineer and youth mentor, competing for the spot.Considering these possible changes, the Business Journal held sepa-

rate interviews with the superintendents to discuss the landscape ofopportunities and challenges at local schools that the newly elected offi-cials are going to face upon taking office.

Survey: Marijuana Tax Measure Loses WhenVoters Informed Revenue Is Not Earmarked

� By TIFFANY L. RIDER

Editor

A survey of 300 registeredvoters in Long Beach

indicates that while residentswould like to see medical mari-juana taxed, there is concernabout how those tax dollars wouldbe spent.The Long Beach Collective

Association (LBCA), a groupwhose membership includes own-ers and managers of medical mar-ijuana dispensaries that oncelegally operated in Long Beach,

provided the Business Journalwith exclusive access to the polldata on Measure A, a propositionthat, if passed, would create amedical cannabis tax. NewportBeach-based Probolsky Researchconducted the phone surveyMarch 21-23. “While Measure A appears

poised for victory on ElectionDay, our research revealed thatstrategic messaging can turn thetide against the measure effec-tively,” Adam D. Probolsky, CEOand pollster of ProbloskyResearch, wrote in survey sum-

mary. During the initial ballottest, voters overwhelmingly sup-ported Measure A – 54.3 percentin favor to 34.7 percent against.However, when informed thatMeasure A does not specify howmedical cannabis tax revenuecould be spent by the city, votersoverwhelmingly changed theirminds and opposed the proposi-tion – 40.3 percent in favor to54.3 percent against.Deputy City Attorney Kendra

Carney confirmed that the ballotlanguage does not include lan-

Global Contractor Samsung Construction & Trading,Engineering & Construction Americas Calls Long Beach Home

See Story Pages 12-13

Ken Fredrickson is president and managing director of Samsung Construction &Trading, Engineering & Construction Americas headquartered in Long Beach.(Photograph by the Business Journal’s Thomas McConville)

(Please Continue To Page 14)

As Election Day Nears, CityCollege And School District

Superintendents DiscussChallenges Facing Education

Transit Board Cancels Zero-Emission Bus ContractBYD Agrees To Termination;

A New Round OfBidding Is Expected

� By SAMANTHA MEHLINGER

Staff Writer

N early a year to the date thatthe Long Beach Transit

Board of Directors approved acontroversial, multi-million con-tract for 10 zero-emission buses,the agreement was cancelled anda new bidding process is beingexamined.The board met March 27 to can-

cel the contract with Chinese-based bus manufacturer Build YourDreams (BYD) following a recentdecision by the Federal Transit

Administration (FTA) that BYDhad not met the DisadvantagedBusiness Enterprise requirementsat the time the project was awardedto the company on March 24,2013. That revelation meant BYDwas ineligible to receive any of theFTA’s $9.75 million in grantmonies given to Long BeachTransit to help pay for the busesand related items.In a letter to Long Beach

Transit President/CEO KennethMcDonald, the FTA wrote that forBYD to become eligible for theTransit Investments forGreenhouse Gas and EnergyReduction (TIGGER) grant,Transit would have to rebid theproject. If Transit wanted toremain with BYD and not go to a

rebid, then Transit would have touse its own funds.“Obtaining financial assistance

from the FTA for the $12.1 mil-lion project was an essential com-ponent of the agreement,” saidTransit Marketing Manager

POLITICALWIRE

Being IndependentOr Trying To BuyThe Election?

More Than 70 Percent OfMoney Raised By Dunn

From Personal Funds

� By GEORGE ECONOMIDES

Publisher’s Perspective

“C ommitting my per-sonal funds to this race

is important to getting my messageout to voters . . . and shows justhow committed I am to helpingLong Beach stop political corrup-tion, create jobs, and fight crime.” That’s mayoral candidate

Damon Dunn’s explanation in aMarch 25 press release on whyhe’s contributed $375,000 of hisown money to his campaign. Another take, shared by many

in the community, is that he’s try-ing to buy the mayoral election.Of the $530,000 claimed on hiscampaign finance report, lessthan 30 percent came from indi-vidual or company donations –and much of that is not localmoney. So the question is, if the




Chris SteinhauserSuperintendent

Long Beach Unified School District

Eloy Ortiz Oakley Superintendent/President

Long Beach Community College District

1_LBBJ_Apirl 1_SectionA_LBBJ MASTER LAYOUT 3/31/14 4:27 PM Page 1

INSIDE THIS ISSUE2 Long Beach Business Journal April 1-14, 2014

3 Newswatch• Civic Center Project Loses One Bidder• Update On Alamitos Bay Marina• Long Beach City Hall News In Brief• Downtown Residential Project Underway• Port Capital Improvement Continue Progressing• CSULB Economic Forum Held• Piazza’s To Receive “Community Spirit Award”

14 School Superintendents Discuss Challenges• Long Beach Unified School District• Long Beach Community College District

16 PoliticalWire• Measure A Survey Results• PoliticalWire – The Mayoral Race

18 PerspectiveRealty Views Fannie And Freddie’s Days May Be NumberedBy Terry RossEffective Leadership Did You Get Your Ticket Validated?By Mick UklejaHealthWise Autism Awareness – Knowing Can Make TheDifference By Dr. Gary FeldmanA Better Way To Fly The Airport Area Complex MeetingThe Needs Of The Future By Mario RodriguezBusiness Law On The Hook For Transforming A ResidenceInto A Pub – Part II By Tom Ramsey

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NEWSWATCHApril 1-14, 2014 Long Beach Business Journal 3


Editor

There are a couple of ways to view thenews of that qualified bidder Relateddeclined to participate in the request for pro-posals (RFP) for a new Long Beach CivicCenter: less competition for the remainingtwo qualified bidder teams; or more fuel forthose who believe the requirements for thenew civic center project don’t pencil out.According to a recently surfaced memo

dated March 17, 2014, the city conductedan exit interview with Related, which“indicated that after carefully reviewing theRFP, the local real estate markets and theassociated deadlines to respond to the RFP,that they are choosing not to submit a bid.They were supportive of the concept of theRFP, the process to date, and the quality ofthe RFP, yet did not feel they could meetthe requirements.” The memo was e-mailedfrom City Manager Pat West to city coun-cilmembers and other officials. It remains unclear whether Related’s

concerns with the RFP were economicchallenges, difficulty meeting certainrequired specifications in the RFP and/orthe limited timeframe of three months todesign and propose a quality bid. The RFPwas issued February 28 and closes June 2.When asked how the company came to

determine that it could not meet therequirements of the RFP, Bill Witte, presi-dent of Related, told the Business Journalin an e-mail that the company has “no fur-ther comment.” City staff received seven submissions dur-

ing the request for qualifications for a newcivic center in Long Beach and shortlistedthree respondent teams: Related, LongBeach CiviCore Alliance LLC and PlenaryEdgemoor Civic Partners. Those teams werequalified to submit proposals to create abrand-new civic center using a public-pri-vate partnership model to fund the project.The remaining two teams, Long Beach

CiviCore Alliance LLC and PlenaryEdgemoor Civic Partners, have remainedsilent on whether or not they will submitproposals. The Business Journal submittedquestions to Allan W. Mackenzie, the pres-ident of Mar Ventures, Inc. and registrantof the Long Beach CiviCore Alliance LLC,through his company’s senior project coor-dinator, Laura Mayer. His response, com-municated in an e-mail from Mayer, indi-cated only that CiviCore is “continuing thedevelopment of a proposal.”Stuart Marks, spokesperson for Plenary

Edgemoor Civic Partners, said he was unableto respond to Related dropping out of therunning and could not comment on PlenaryEdgemoor’s relationship with the city. In ane-mail, however, Marks did say that theGovernor George Deukmejian Courthouse, aproject members of the Plenary EdgemoorCivic Partners team were involved with, issomething of which the team is very proud.According to a December 2013 press

release on Edgemoor’s website, “The teamlooks forward to building upon its success”with the courthouse by “developing a PBIsolution that supports the ongoing revital-ization of Downtown Long Beach.” The

courthouse project was the first social per-formance based infrastructure project(PBI) – another name for public-privatepartnership – in the United States, accord-ing to the press release.Marks also said in his e-mail that the civic

center RFP is “a very competitive processthat has attracted some of the most accom-plished public-private partnership and realestate development firms in the country.”

New Data On BiddersTo Be Issued This Month

According to Michael Conway, directorof business and property development forthe city, adjustments to an October 2013

report on the qualified bidders is beingprepared in an addendum to be releasedas soon as April 7. Information in theaddendum will include, among otherthings, a corrected list of the members ofeach of the teams. Research on office space availability in

Long Beach that could accommodate cur-rent city employees, as well as the selectionof the preferred proposed bidder in thecivic center RFP, are scheduled to be pre-sented to the council July 1.“The [RFP] process set forth is aggres-

sive, because the issue is significant andswift action is imperative,” Conway told theBusiness Journal in an e-mail. “The remain-ing bidders have indicated that the timelineis difficult, but achievable. Consequently, Ibelieve the timeline is adequate.” �

City Examines FundingOpportunities For

Alamitos Bay MarinaAt Least $1.9 Million Needed To Complete Basins 2 And 3


Staff Writer

City staff members are working togetherto identify funding to continue improve-ments to the Alamitos Bay Marina andpresent options to the city council on April15, George Chapjian, director of thedepartment of parks, recreation and marine

businessmade

personal

And Then There Were Two: Related Declines To Bid For Proposed Civic Center Project



NEWSWATCH4 Long Beach Business Journal April 1-14, 2014

told the Business Journal.At the March 4 Long Beach City Council meeting, 3rd

District Councilmember Gary DeLong and 2nd DistrictCouncilmember Suja Lowenthal brought forward arequest, which was approved, to direct the city manager toreport back within 30 days with a plan to move ahead withthe next phase of the project. The next portion of the proj-ect involves replacing dock infrastructure, dredging andother improvements in Basins 2 and 3. The city is workingto find funding for this work.In a letter dated February 21, Edward Heaton, senior

project manager of Bellingham Marine Industries (BMI),the project contractor, wrote to Acting Marine BureauManager Elvira Hallinan that the estimated cost to dredgeBasins 2 and 3 was $1.9 million as of December. BMI hasdiscovered that there is more material to be dredged thanpreviously thought, which could increase the cost between$872,100 and $2,007,350.“After three of the seven basins, we are running into

financial issues. There is no question about that,” CityManager Patrick West said at the March 4 meeting. He toldthe Business Journal last week, “This has been a multi-year project that was always contemplated to be phased asfunds for the various basins became available.”The department of parks, recreation and marine is

applying for grant funding from the CaliforniaDepartment of Boating and Waterways as one possibilityfor funding, Chapjian said. “They have about $7 millionavailable next fiscal year,” he said of possible state fund-ing. “We may or may not need it depending on what ourfinancial management folks come up with regardingoptions for funding.” He also said that slip fees at themarina are likely to increase by at least two percent tohelp fund the project.BMI’s permit to move dredged materials from the basins

into the ocean runs out in October 2015. In his letter,Heaton indicated that if the project is delayed and dredgingmaterial has to be placed on land rather than deposited inthe ocean, costs could increase as much as about $19 mil-lion. Chapjian told the Business Journal that there may bean opportunity to place dredged material in the Port ofLong Beach, and that dredging should be completedbefore the permit expires. “We are really not in a dire situ-ation here, I don’t think,” he stated.At the March 4 meeting, DeLong emphasized the

importance of completing dredging before the permitexpired so as not to incur higher costs. He also raisedconcern that the city had no plan to keep BMI engagedafter its contract expired at the end of March. The com-pany was originally given a contract for designing andbuilding the project. As each phase commences, anamendment is added to BMI’s contract for work withinthat phase, Chapjian explained.BMI’s current amendment ran out at the end of March,

as the Business Journal went to press. At that time,Chapjian said that his department had a letter it was pre-pared to send to BMI to keep the company engaged.Regardless of what happens with funding for the remain-ing basins, Chapjian said that BMI is likely to continueworking on “backbone utilities” within the marina for thenext three to four months.At the March 18 city council meeting, DeLong and

Lowenthal brought a related item to councilmembers thatrequested City Auditor Laura Doud conduct an audit todetermine how much money has been transferred from theMarina Fund and another fund to the Tidelands Fund –money that could be used for the Alamitos Bay Marinarebuild project.According to DeLong, a city memo from January 13

indicated that around $800,000 might have been inappro-priately transferred to supplement non-marina Tidelandsareas. As part of the audit, which was approved by the citycouncil, Doud is determining if there is an opportunity totransfer money back to the Marina Fund. Olivia Maiser,director of communications for the auditor’s office, saidthe audit is underway. �

Long Beach City HallNews In Brief


Staff Writer

PCH/2nd Street Retail Center Report Available –Theinitial study of a draft environmental impact report for aproposed retail center at 6400 E. Pacific Coast Hwy. isavailable for public review on the 5th floor of city hall, theLong Beach Main Library at 101 Pacific Ave. and atwww.lbds.info until April 17. Submit comments online [email protected] Entertainment Downtown – The Long

Beach City Council approved an amendment to theDowntown Dining and Entertainment District ordinanceon March 18 that allows rooftop entertainment withinthe district at certain hours. Entertainment is alloweduntil 10 p.m. on Sundays, until midnight Mondaysthrough Wednesdays and until 1 a.m. Thursdays throughSaturdays. The amendment was proposed by 2nd DistrictCouncilmember Suja Lowenthal who committed to sup-porting the amendment to a new restaurant in the area,BO-beau kitchen + rooftop.Master Fee And Charges Schedule – Tonight, April

1, councilmembers are voting whether or not to adoptthe city’s master fee and charges schedule, whichincludes fee adjustments and increases intended to helpthe city fully recover costs for projects or services when-

Long Beach BusinessCommunity Hosts Ethical

Leadership ProgramDesigned as a university-wide interdisciplinary center

and housed in the College of Business Administration,the Ukleja Center forEthical Leadershipoffers training toenhance the integrationof ethics in everythingwe do. Our programsserve students, faculty,and community mem-bers by focusing onthree pillars of appliedethics – education,community outreach,and university research.

Our core education program is the StudentLeadership Institute, a two-semester course where stu-dents explore ethical challenges related to business,government, education, healthcare, athletics, and otherprofessional fields. Students have an opportunity todiscover their core values, utilize an analytical frame-work, and build a strong ethical foundation for futuredecision-making. Instead of meeting on campus, sessions are hosted by

the local business community with prominent leadersserving as guest faculty and hosting classes in their con-ference rooms. Students hear about real-life ethicalchallenges in such diverse fields as aerospace productdesign, political campaigning, environmental steward-ship, and end-of-life care. Empirical evidence showsthat people who have practiced solving ethical dilem-mas in an applied fashion are better able to anticipate,evaluate, and resolve them in the future.This kind of educational experience would not be

possible without the generous support of our businesscommunity. We thank the following for hosting andinspiring our students: Bess J. Hodges Foundation,Boeing, Camp Fire USA, CSU Chancellor’s Office,DENSO Sales California, Freedom Writers Foundation,Halbert Hargrove, HCVT, JetBlue Airways, Long BeachMemorial Medical Center, Mattel, Mentoring A TouchFrom Above, Orange County Business Council, Port ofLong Beach, Signal Hill Petroleum, Special OlympicsSouthern California, and Target.The program culminates with a community service

project to cultivate servant leadership. After learningabout areas of need, students come to consensus on aproject, design it, create a budget, delegate responsibil-ities among committees, and then volunteer as a team.They have provided college and career fairs for incar-cerated youth, games for pediatric cancer patients, anda Mother’s Day party at a senior center.Students thrive in the transformational service project

experience. What are they learning? We’ve heard manystudents respond as follows: My leadership presence iswhat’s most essential when I’m serving others. Givingpeople the respect they deserve can make a huge differ-ence in their lives. Clearly, our future ethical leaders are excelling to

meet the challenges of tomorrow.(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 Jane Roeder, Ukleja Center forEthical Leadership Managing Dir.,

and Kathleen A. Lacey, StudentLeadership Institute Professor

Alamitos Bay Marina(Continued From Page 3)


Cathy Jacobson-Guzy To Be Inducted May 3 Into Pennsylvania Sports Hall Of FameCathy Jacobson-Guzy, the director of tennis for the City of LongBeach’s Billie Jean King and El Dorado Tennis Centers for thepast 21 years, is being inducted into the Pennsylvania SportsHall of Fame during ceremonies May 3 at the Sheraton FourPointe Pittsburgh Hotel. “Cathy attended high school inPittsburgh where she was state doubles champion for threeyears,” wrote Ralph A. Jelic, vice president of the WesternChapter of the Pennsylvania Sports Hall of Fame in a letter to theBusiness Journal. “At the University of Pittsburgh, she wasnamed captain and MVP her junior and senior years. She stillholds the fourth highest career singles winning percent in the PittWomen’s Tennis Record Book.” The Pennsylvania Sports Hall ofFame was founded in 1962 to, according to its website, “perpet-uate the memory of athletes, male or female, who have broughtlasting fame and recognition to the State of Pennsylvania throughtheir athletic achievements. The Pennsylvania Sports Hall of Fameis a non-profit organization run entirely by volunteers who con-sider their work a labor of love.” (Photograph by the BusinessJournal’s Thomas McConville)

1_LBBJ_Apirl 1_SectionA_LBBJ MASTER LAYOUT 4/3/14 11:05 AM Page 4


ever possible and provide services thatresidents increasingly demand. Feecharges are applied to campaigns andelections, passport services, multi-familyproperty inspection permits, fire sprin-kler retrofitting alternatives, a tuberculo-sis clinic, airline fees, aircraft parkingand airport terminal space rental, theBelmont Pool, marina slip rental, excavat-ing street and public right-of-way areas,pipelines and utilities and other generalservices provided by city departments.Commission Appointments – The city

council is voting on several appointmentsto city commissions at tonight’s meeting.The recommended appointments by MayorBob Foster, include Raul Anorve andDavid Clement to the Long Beach CitizenPolice Complaint Commission; RobinPerry to the Long Beach Civil ServiceCommission; and Robert Shannon, formercity attorney, and Art Levine to the LongBeach Water Commission.$6 Million In Civil Engineering

Contracts – The city council approvedthree-year agreements with six firms total-ing $6 million for on-call civil engineeringdesign services. A staff report indicatedthat this figure is based on anticipated proj-ects and that any unbudgeted work needscouncil approval.Harbor Bonds And Short-Term

Notes – Tonight, councilmembers vote toissue harbor refunding revenue bonds in aprincipal amount not to exceed $90 mil-lion and harbor revenue short-term notesin a principal amount not to exceed $350

million. The refunding bonds areintended to pay back harbor revenuebonds, thus reducing the port’s debt. Theshort-term notes are for expendituresrelated to the Gerald Desmond BridgeReplacement Project.Pulse Of The Port – The Port of Long

Beach hosts The Pulse of the Port, a freeevent open to public, tomorrow (April 2)from 7-10 a.m. at the Grand Ballroom,Long Beach Convention & EntertainmentCenter, 300 E. Ocean Blvd. Internationaltrade officials, including Mario Cordero,chair of the Federal Maritime Commission,and others are providing international tradeindustry forecasts. RSVP atwww.polb.com/pulsersvp. The event is alsowebcast live at www.polb.com/pulseports.For more information, e-mail KathleenCharchenko at [email protected] orcall 562/283-7755.Fourth District Event – Also on April

2, 4th District Councilmember PatrickO’Donnell hosts his monthly Chat WithPat community meeting with guestspeaker Greg McMullen, detective, LongBeach Police Department, 4:30 p.m. at theLos Altos Library, 5614 E. Britton Dr. Formore information, contact O’Donnell’soffice at 562/570-6918 or [email protected] 8 Council Meeting Cancelled –

At its March 18 meeting, the city councilcancelled its April 8 meeting due to thePrimary Nominating Election scheduledthat day. The next city council meeting isApril 15. �

Stella Ursua is a green business advocate, educator and community leader, committed to reinvesting in quality vocational training programs that are connected to local/future industry jobs and careers. Stella is supported by residents, local businesses and community organizations alike because of her tireless workforce development efforts and her efforts to link economic development and healthy neighborhoods to quality education.

Vote for Stella Ursua on April 8, 2014...For Innovative Education & The Greener Good

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DowntownResidential

ProjectUnderway

17-Story First Tower To Add 223 Rental Units By 2016


Staff Writer

Ten years after AndersonPacific, LLCpurchased the property at 707 E. OceanBlvd. the project to construct two residen-tial towers there is finally underway. On March 21, AndersonPacific and local

city officials gathered to kick-off construc-tion of the first structure, a $70 million, 17-story, 223-unit rental tower called “TheCurrent.” AndersonPacific, along withLedcor Properties, Inc., developed plans forthe mixed-use project, which also includes6,750 square feet of retail space. Plannedamenities at the tower include a rooftoppool, a Zen garden, an outdoor event space,a fitness center and private storage. “When we purchased this property in

2004, we had a very strong vision of whatthis area could become – a uniquely con-ceived project that would be a catalyst forthe area: a walkable, iconic gateway todowntown, with green and public spacesensitive to the waterfront and environ-

ment,” AndersonPacific CEO JimAnderson said in a statement. “The development team and the city

worked together for many years to makesure this project could withstand the GreatRecession, the dissolution of theRedevelopment Agency and the evolving

needs of Long Beach,” Mayor Bob Fostersaid in the same press release. “Our cityand downtown will benefit greatly from theaddition of this project. Not only being abeautiful building, it will enhance our taxbase, create jobs, and create a catalyst forfurther improvement in the area,” he added.

After The Current is completed in2016, a second, 35-story residential toweris slated for construction. The two towersare going to be connected by a 25,000-square-foot plaza with retail space andother amenities. �

The Grand4101 E. Willow StreetLong Beach, CA 90815

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Registration 7:30 / Breakfast 8:00AM

APRIL 4, 2014 8AM REAL ESTATE LEGAL PANELModerator: Art Levine, law professor, CSULB

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The developers of a new two-tower residential and retail project at 707 E. Ocean Blvd. gathered with local business people and city officials to cel-ebrate the start of construction on the first tower, which has been named “The Current.” Pictured, from left, are: Jim Anderson, CEO of AndersonPacific,LLC, the developer; Jane Netherton, chair of the Long Beach Oversight Board of the Successor Agency of the Redevelopment Agency and chair of theInternational City Bank Board of Directors; Mayor Bob Foster; Suja Lowenthal, 2nd District councilmember; Kraig Kojian, president and CEO of theDowntown Long Beach Associates; Ryan Altoon, executive vice president of AndersonPacific; and Pat Patterson, senior vice president of LedcorProperties, Inc., also on the development team. (Photograph by the Business Journal’s Thomas McConville)

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Kevin Lee in a statement released follow-ing the board meeting. BYD, which had referred to the disad-

vantaged business program certification asa “good faith error,” issued a statement onMarch 27 announcing that it had “agreed tomutally terminate its contract with LongBeach Transportation Company for thedelivery of 10 electric buses.” A Transitstatement said that “terms of the mutualtermination agreement provide that neitherLBT nor BYD will take legal actionsagainst one another.”A BYD said she felt positive that if LBT

decides to rebid, the company will againwin the contract. “We are confident that wewill prevail in any competitive re-bid in thefuture for the same reason we prevailed lastyear: our superior technology,” said StellaLi, CEO of BYD, in a statement.Li, however, did take a swipe at the FTA.

“It is surprising that the FTA waited ninemonths to withdraw funding from this con-tract – after BYD spent millions of dol-lars – due to what can only fairly bedescribed as a technical error that in noway casts doubt on our deep commitmentto purchase from disadvanted businesses.”Transit’s Lee told the Business Journal that

no final decision has been made as towhether or not LBT is going to move forwardwith a rebidding process. “A staff recommen-dation should be coming to the board in thenext 60-90 days,” he wrote in an e-mail.If LBT moves forward with rebidding,

the agency is going to have to go throughthe entire bidding process again, Leeexplained, meaning that a new request forproposals would be developed, a proposalrespondent review and analysis would beconducted and finally a contract would beawarded. He noted, however, that this was asimplified explanation of the process.Rebidding would also mean that BYD’s

competitors, such as American-based man-ufacturer Proterra, which was runner up onthe original bid, would have a chance tothrow its hat into the ring. If the LBT Board of Directors approves

a rebid, then LBT staff will proceed in lay-ing out a new timeline for the project, Leesaid. “Expect to see some movement inthe coming months regarding a potentialrebid,” he said. �

SCIG Legislation Held InAssembly Rules Committee


Editor

Assemblymember Travis Allen (R-Huntington Beach) did not add substantiveamendments to his bill, AB 2208, the“California Environmental Quality Act:Southern California International GatewayProject,” commonly known as SCIG.According to Mukhtar Ali, a CaliforniaAssembly Rules Committee consultant,amendments for the placeholder bill werenot submitted by the March 21 deadline,“so the bill never got referred.” �

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Long Beach Transit(Continued From Page 1)




Staff Writer

As the Gerald Desmond BridgeReplacement Project progresses withoutfurther projected budget increases, objectsburied below the Port of Long Beach con-tinue to create issues for the Middle HarborRedevelopment Project, causing moredelays and cost overruns.The first phase of the project is now

about five months behind schedule, accord-ing to Tom Baldwin, senior program man-

ager of the program management division,who oversees the Middle Harbor project. “It’s primarily due to oilfield and land-

fill work,” he said. The northern portionof the project was impacted by oilfieldwork last year, when dozens of oil wellshad to be abandoned and relocated toclear the ground for both the MiddleHarbor and Gerald Desmond BridgeReplacement Projects. The work causeddelays and cost overruns to both projects.About six wells in Middle Harbor remainto be relocated, work which should be

finished by summer, Baldwin estimated.Also problematic was that while widen-

ing a slip in Middle Harbor last year, work-ers came across buried structures. “Ibelieve it was back in the 1940s or 1950sthat this entire area subsided about 15 to 20feet, and so we were finding a lot of buriedold structures here,” Baldwin said. Onesuch structure was a buried timber wharf.“We had to remove it all in order to con-tinue to dredge, move that material overand fill the slip,” he explained.Due to these issues, “We’re forecasting

that we are going to need to increase thebudget,” Baldwin said. “We have receivednumerous claims from the contractorsassociated with the delays and impacts thatwe’re looking at, and the contracts are run-ning longer than we anticipated.” Baldwin could not yet report a figure, but

estimated that a budget increase requestshould come to the board of harbor com-missioners by the end of April or early May.Other portions of the project are moving

along steadily. Build out of a wharf as wellas installation of a northern truck gate arescheduled for completion in about a month,according to Baldwin. Meanwhile, cranes continue to be

Port Capital Improvement Projects Continue Progressing,With Another Middle Harbor Cost Increase Expected

(Please Continue To Next Page)



shipped in from overseas. Currently, about16 stacking cranes are being installed andtested by the tenant, Long Beach ContainerTerminal (LBCT). About 16 more stackingcranes are arriving by the end of phase one,and about 40 more are coming in phase two.Additionally, LBCT is receiving 14 shore-to-ship cranes before the end of the project.At the end of phase one, which is sched-

uled for completion in February 2015,LBCT will move into the newly completednorthern terminal and work on the southernterminal will begin, Baldwin said. Thatwork includes finishing landfill, demolish-ing the old terminal and constructing a newone, all of which should be complete by2019, he estimated.According to Lee Peterson, spokesperson

for the port, the harbor department has spent$562 million on the Middle HarborRedevelopment Project to date. The totalbudget approved last year was $1.314 billion.

Gerald Desmond BridgeReplacement Project

Following a budget increase of about$163.2 million late last year, the GeraldDesmond Bridge Replacement Project isprogressing without any more anticipatedcost increases, according to portspokesperson John Pope. The oilfield relocation work that spurred

the majority of that budget increase contin-ues, although Pope said staff is now “zero-ing in on the last few [wells]” that need tobe abandoned. Denis Wolcott, a spokesper-son for the project, said that one well isgoing to be abandoned in the next week orso, and excavation work to locate anotherwell is beginning shortly thereafter. The public won’t see the old bridge come

down any time soon. Before that happens,the new bridge has to be built, and plentyof milestones must be reached before thathappens. The next big step is the demoli-tion of the 710 southbound freeway some-time at the end of spring. After that, “The next milestone will be the

official start of the foundation work,” Popesaid. Currently, the California Department

of Transportation is testing the foundationpiles at several sites around the bridge,Pope said. “Once they get through a cou-ple more months of testing with the piles,the foundations will start to go in theground,” he added. “That will be excitingbecause I think it will be something thatthe public can see – the bridge sort of vis-ibly rising out of the ground.” After thatoccurs, the length of the bridge, a cable-stayed structure, will be built using amoveable scaffolding system.While the project has experienced some

delays, Pope said the goal is still to com-plete the project by the end of 2016.Approximately $490,182,000 of the $1.263billion budget had been expended by theend of January 2014. �

State Assembly CommitteePasses Sick Leave MandateOn March 20, the California State

Assembly’s Labor and EmploymentCommittee approved, on a 5-1 party linevote, Assembly Bill 1522, which man-dates that all employers, except thosewith collective bargaining agreements,provide any employee who has worked inCalifornia for seven days with paid sickleave, at an accrual rate of one hour forevery 30 hours worked. The legislationincludes penalties and legal action onthose employers who do not adhere tothe proposed law, if approved. Notimetable has been set for a vote by thefull assembly. �

Tom Baldwin, senior program manager of the pro-gram management division for the Port of LongBeach, oversees the Middle HarborRedevelopment Project. He recently told theBusiness Journal that the project budget is increas-ing due to unanticipated work removing materialburied beneath the terminal. (Photograph by theBusiness Journal’s Thomas McConville)



CSULB EconomicForum ProvidesGlimpse IntoTrends FacingLocal Economy


Staff Writer

“With Boeing’s announcement that C-17business is going to leave, we can’t expectthat number to hold steady for much longer,”said Dr. Heather Stephens during the recentCalifornia State University, Long BeachRegional Economic Forum. “I think the bot-tom line is we have to think about diversify-ing our economy and letting it be okay ifmanufacturing is not No. 1 on that list.”Stephens is assistant professor of eco-

nomics and director of the Office ofEconomic Research at the university. Theevent marked the second forum she haspresented since coming to the universitymore than a year ago. During the event, shediscussed industry, occupational, educa-tional and demographic trends occurring inthe city and region.Held March 21 in the Seaside Ballroom

of the Long Beach Convention &Entertainment Center, Stephens’ presen-tation noted that manufacturing, travel

and entertainment, retail trade and healthcare are, in order, the top job-producingindustry sectors in the greater LongBeach area. She acknowledged, however,that manufacturing’s leading employmentnumbers will change. About 200,000 Long Beach residents

are employed, Stephens said, but about 66percent of them work outside the City ofLong Beach. The estimated remaining182,000 residents are employed withinthe City of Long Beach. She also notedthat 72 percent of the 14,850 high-incomeresidents (six-figure salaries) leave thecity for work each day. Conversely, thecity has 74,400 residents who earn less

than $20,000 annually (including part-time workers) and 43 percent of themwork in the city.Stephens pointed out that the Port of

Long Beach’s estimated 11 percentincrease in container traffic is a positivesign, as is that the value of imports comingthrough the port is increasing. Still, the SanPedro Bay Ports depend almost entirely oncontainer traffic from Asia, so any futureeconomic instabilities in those regions havethe potential to impact local imports. Other positive indicators for the local

economy include Mercedes Benz’s moveto lease 1 million square feet of propertyin Northeast Long Beach, Boeing’s hir-

ing of about 300 more engineers, and arecent survey that indicated small busi-ness owners are optimistic about 2014,Stephens said. Following her presentation, three local

leaders from the international trade,health care and aviation industries madepresentations as part of a panel discus-sion: Noel Hacegaba, Ph.D., actingdeputy director of the Port of LongBeach; Diana Hendel, PharmD, CEO ofLong Beach Memorial Medical Center,Miller Children’s Hospital Long Beachand Community Hospital Long Beach;and Mario Rodriguez, director of theLong Beach Airport. �

Piazza’s To Receive Kingdom Partner Solutions’ Community Spirit AwardThis Thursday, April 3, during the Long Beach Area Chamber of Commerce Entrepreneur Of The Year Luncheon, Kingdom Partner Solutions, LLC (KPS) is pre-senting its annual Community Spirit Award to Ron and Nancy Piazza. KPS’ Founder and CEO, Jim Eaton, launched the Kingdom Partner Solutions’ Community

Spirit Award five years ago to honor “remarkably gener-ous individuals who repeatedly contribute their time, tal-ent and treasure in the Long Beach Community.” Thisyear’s award goes to the Piazzas, “for the tireless volun-teer efforts they have made through the years. Theirnotable contributions include the founding of the LongBeach Ronald McDonald House; “Dancing for our Stars”in support of Memorial Care Heart and Vascular Institute;volunteering for the Long Beach Memorial Auxiliary;board level participation with a variety of organizationssuch as the Greater Long Beach YMCA, Long BeachMemorial Medical Foundation, and the Long Beach AreaChamber of Commerce; and countless financial contribu-tions to a variety of these and other worthy causes.” KPS,according to Eaton, is a boutique consulting firm whichassists numerous small to middle market businesses, aswell as, various non-profit organizations with their strate-gic growth planning, but most importantly by ensuringthe “Execution” of their strategic plans. (Photograph bythe Business Journal’s Thomas McConville)



Coastal CommissionTo Review ModifiedBeach Plaza HotelProject This Month


Editor

After months of delays and closed-doornegotiations, the California CoastalCommission is finally set to discuss a localcoastal permit application from Studio OneEleven for a new mixed-use developmentat 2010 E. Ocean Blvd. The hearing is setfor the commission’s April 11 meeting inSanta Barbara.If approved, the local coastal permit

would allow the property owner, SilversandsProperty USA, to modify a project designentitled by the City of Long Beach and con-struct a four-story, 33-unit residential com-munity with 72 hotel rooms and amenities.The project would require demolishing theexisting 40-room Beach Plaza Hotel.“We are happy that the Coastal

Commission has put us on the Aprilagenda,” Mike Murchison, a representa-tive for Silversands Property USA, toldthe Business Journal. “We still have a fewminor items to work out, but all in all wefeel pretty good about our chances of apositive outcome. This will allow us tobuild a terrific project in the City of LongBeach for all to enjoy.” �

Businesses Deposit$1 Billion UsingWells Fargo’s CEOMobile Deposit App


Editor

Wells Fargo, the first major U.S. bank tooffer mobile services to corporate and com-mercial customers, announced March 27 thatits business clients had surpassed $1 billionin mobile deposits by using the company’sCommercial Electronic Office (CEO)Mobile Deposit service. The free applica-tion, available for Apple products includingthe iPhone and iPad, allows users to scan anddeposit payments through a secure platform.“Wells Fargo’s vision is to satisfy all of

our customers’ financial needs. This visionis the basis for our tech and mobile innova-tions,” Ben Alvarado, senior vice presidentand regional president of Wells FargoOrange County, told the Business Journal.“Reaching the $1 billion mark for our CEOmobile deposit product means that our busi-ness customers are collecting their receiv-ables more quickly which enables them tosave time and speed up their cash flows. Iencourage business professionals to takeadvantage of this technology to make theirbusinesses run more efficiently.”Learn more at www.wellsfargo.com

/ceo/services. �


CORPORATE PRESENCE12 Long Beach Business Journal April 1-14, 2014


Editor

About two years ago, a new

division of a Samsung Group

company quietly relocated its

U.S. headquarters office to downtown Long

Beach, settling in at Catalina Landing com-

plex. Samsung Construction & Trading,

Engineering & Construction Americas

opened in 2010, originally locating in a

Samsung office in La Mirada. In November

2011, Long Beach beat out other cities as the

permanent office for its U.S. headquarters.

“We had the opportunity while in La

Mirada to essentially lay out where some of

our senior staff was from, look to see where

the best transportation was, the most prac-

tical rents, the most comfortable places to

work,” Ken Fredrickson, president and

managing director of the new division, told

the Business Journal during an interview at

the company’s offices.

“Long Beach won hands down. It’s a nice

place. It’s not nearly as annoying as

Downtown Los Angeles and, for the most

part, as you go south into Orange County,

there’s less of an engineering community or

construction community that we would be

able to draw from.”

The Samsung Group, which is more

widely known for its cell phone and televi-

sion products, is the South Korean conglom-

erate that accounts for about 25 percent of its

home country’s gross domestic product.

Among its 34 companies is Samsung

Construction & Trading (C&T), which is

responsible for projects such as the tallest

building in the world – the 2,717-foot-high

Burj Khalifa in Dubai that opened in 2009.

In 2010, C&T decided to open its first

subsidiary outside of South Korea. Thus,

Samsung Construction & Trading,

Engineering & Construction Americas was

launched, which also happened to be the

first C&T office not run by Koreans.

The new subsidiary focuses on major

construction projects in North and South

America. One such project is the St.

Lawrence Bridge in Montreal, Canada.

According to Fredrickson, the operation

also does all of the construction for

Samsung Electronics, including work on a

research and development center in Silicon

Valley. He pointed out the company is in

the running for the Westside Subway

Extension of L.A. Metro’s Purple Line.

In 2012, Fredrickson said the company

was ranked as one of the top global con-

tractors by Engineering News-Record and

is listed on Fortune’s Global 500. He indi-

cated the firm has a backlog of $500,000 in

projects, including a wind farm in Toronto

and a recently completed project in Hawaii.

“We’re very aggressive,” he said. “We’re

chasing about $10 billion worth of work

right now. If we can pull in 25 percent of

that, we would be tickled to death.”

If the company had been formed earlier,

Fredrickson said he would have liked to

have pursued the Gerald Desmond Bridge

project in the Port of Long Beach. In terms

of other work opportunities in the San

Pedro Bay Ports, he noted, “The nature of

Global Contractor Samsung Engineering & Cons

The headquarters offices of Samsung Construction & Trading, Engineering & Construction Americas, located at Catalina Landing, features a large display of “Samsung City,” a projects from around the world to create an imaginary metropolis. (Image courtesy of Samsung C&T)

The Burj Khalifa in Dubai, the tallest building in the world, was designe Trading. The $1.5 billion tower, which rises 2,716.5 feet and has 162

“Long Beach won hands down.

It’s a nice place. It’s not nearly

as annoying as Downtown

Los Angeles and, for the most

part, as you go south into

Orange County, there’s less

of an engineering community

or construction community

that we would be able

to draw from.”

KEN FREDRICKSON

President and Managing Director,

Samsung Construction & Trading,

Engineering & Construction Americas,

on why the company selected

Long Beach for its headquarters office


CORPORATE PRESENCEApril 1-14, 2014 Long Beach Business Journal 13

the projects that we chase does not align

well with what the Port of L.A. and the Port

of Long Beach do, as much as I would like

to be doing work over there.”

Local TiesFredrickson is no stranger to Long

Beach. A resident of San Pedro, he has

worked in the construction management

business his whole life. He’s lived in Hong

Kong where he worked with Hyundai, the

supplier of steel for his projects in

Southeast Asia. He has more than 30 years

of experience working with international

construction and engineering, procurement

and construction companies, throughout

the world.

As a former project manager for global

construction firm CH2M Hill, Fredrickson

was on site for the demolition of the Long

Beach Naval Station in the late 1990s and

the building of Pier T in the early 2000s. A

photo of Pier T under construction hangs in

his office. “That was the last major project

I worked on as a project manager,” he said.

About eight yea rs ago, Fredrickson

teamed up with Samsung Engineering – a

different company from Samsung C&T –

to relocate nearly 30,000 U.S. troops in

Korea from the Yongsan Garrison base and

other regional bases to an expanded army

base south of Seoul. He got to know the

CEO of Samsung Engineering, who subse-

quently became the CEO of Samsung

C&T, Fredrickson said.

Later, while working for Jacobs

Engineering, Fredrickson maintained a

working relationship with Samsung C&T.

“I gave advice, as a partner, on how to put

this organization together,” he explained.

“At the end of that, when they got it fairly

well set up, they, in essence, said, ‘Well,

you’ve done this much. Why don’t you just

come run it?’”

Corporate CitizenAs part of the global corporation’s

image, all Samsung organizations should

live in and be involved in the community

in which they operate, Fredrickson said.

“Long Beach is a very nice place for peo-

ple to live. I have a lot of folks who have

come from other places and are living

right here, in fact, within walking dis-

tance. The business climate here is a calm

one; there is no real drama. It’s a very

pleasant place to work.”

Samsung C&T, E&C Americas employ-

ees have participated in the 2012 Long

Beach Heart Walk, and in 2013 they

hosted a build day through Habitat for

Humanity. “We’ve been a little remiss in

2013 because we’ve been extraordinarily

busy,” Fredrickson admitted, “but, like I

said, the intention is to always be part of

the community, to encourage people to be

involved.”

The company is always looking to hire,

Fredrickson said, and has offered intern-

ships in a variety of areas including legal,

construction and engineering. For more

information on the company and job oppor-

tunities, visit www.samsungeca.com. �

Construction Americas Calls Long Beach Home

play of “Samsung City,” a design that uses all of Samsung C&T’s major

in the world, was designed by Long Beach-based Samsung C&T, E&C Americas’ parent company, Samsung Construction & ,716.5 feet and has 162 floors, was completed in October 2009. (Image courtesy of iStock member Cherokeedxb)

Samsung C&T, E&C Americas is headquartered at the Catalina Landing complex adjacent to the Queensway Bay in Downtown Long Beach.(Photograph by the Business Journal’s Thomas McConville)


SCHOOL SUPERINTENDENTS DISCUSS CHALLENGES14 Long Beach Business Journal April 1-14, 2014


Staff Writer

The Long Beach Unified SchoolDistrict’s (LBUSD) greatest challenges, asidentified by Superintendent ChrisSteinhauser, are closely tied to the chang-ing nature of educational policy, which isincreasingly focused on outcomes andaccountability as well as on managingever-fluctuating funding.Local Control, Higher AccountabilityLast August, LBUSD was one of eight

school districts that obtained a waiverfrom the Obama Administration to opt outof the No Child Left Behind Act andimplement a new program called theSchool Quality Improvement System.Participation in this program means thatfunding is directly tied to whether or notLBUSD meets college and career pre-paredness outcomes for its students.The school district must monitor student

achievement, growth, graduation rates,absenteeism, and suspension and expulsionrates, among other data, according to theCalifornia Office to Reform Education. While using data to closely track these

outcomes is a new challenge, Steinhausersaid that the district already prioritized theoutcomes five years ago. “So for us it’s nota big radical change,” he said. “I have beenblessed to have a board over all these yearsthat has been on that same page, thatbelieves in strong accountability, thatbelieves in focusing on kids and believes inlocal control,” he said, referring to theLBUSD Board of Education.One of the benefits of achieving local

control is that LBUSD now has greaterflexibility in how it allocates funds,Steinhauser explained. “About a month

ago, the board voted to send the money, thebulk of it, to the school sites,” he said,adding that the schools with the highestneeds are receiving the most money. LBUSD has 87 schools, each with its

own school site council made up of parent,teacher and staff representatives. Site coun-cils function as boards for individualschools. They come up with their ownplans for spending funds, which are thensubmitted to Steinhauser, who has theauthority to decide whether or not to sendthe suggestions to the school board.The future school board must continue to

work with school site councils, the commu-nity and Steinhauser to ensure that “thegifts” the district has been given throughthis new system – local control and addi-tional funding – are used and maintained,Steinhauser expressed.

Financial ChallengesAs the economy recovers, LBUSD is get-

ting more flexibility when it comes to fund-ing, but there are still challenges. “We’vehad a 20 percent reduction of staff andwe’ve lost over $330 million,” Steinhausersaid of economic hardships faced by thedistrict since the Great Recession. Thisyear, however, the district has about $30million to spend, which is an increase ofabout $14.3 million compared to last year.One financial challenge is the uncer-

tainty surrounding the district’s budget,Steinhauser said. The amount of statemoney LBUSD is receiving for next yearthrough the Local Control FundingFormula is still up in the air, for instance.“This year I think we got about $4 millionof it, maybe next year we’ll get about eightto ten million dollars. We don’t knowexactly right now,” he said.LBUSD is also challenged to create a

budget based on projections. Its fiscal yearmirrors the state’s, running from Junethrough July; however, budgeting is based onprojections because the state isn’t required totell the district how much money it is receiv-ing until June 30. In addition, LBUSD isrequired to budget three years in advance.For both the board and for school district

staff, understanding how the new budget-ing process is linked to student outcomes isa challenge, Steinhauser said. “So underthis new process, we devise planned activi-ties related to outcomes and recommenda-tions and tie the money to it,” he explained. Budgeting for ever-changing technology

also presents a financial challenge,Steinhauser noted, emphasizing that invest-ing in technology is a priority for the schoolboard. “That is one of the things we’veasked the board to do with these new mon-eys coming in . . . we’ve never really setaside, on a regular basis, money to makesure that we can stay on top of refreshingtechnology,” he said. “We just bought $6million [worth] of new computers, which isgreat, but they only last three years. So weneed to set aside money to refresh.”Maintaining fiscal stability in the face of

economic uncertainty must also be a prior-ity, he said. “I want us to be very prudent .. . because we will have another meltdownin this state,” Steinhauser stated. CurrentLBUSD financial reserves are $80 million.

Changing DemographicsThe needs of LBUSD students may

change as demographics continue to shift(refer to chart). Enrollment at LBUSDschools has dipped by about 13,000 studentssince 2000, and district staff project that thedecline is going to continue, decreasing toabout 78,000 by the 2015-2016 school year.“We predict that [student enrollment] will

level off around 75,000 [students enrolled],”Steinhauser estimated, attributing the dip todecreased birth rates and people moving outof the area. There are pros and cons to thisdecrease. “It’s a bad thing because you loserevenue, and that’s why we’re very conser-vative on how many people we hire,” heexplained. “I know for a fact that I need tocut 42 positions for next year,” he said, butnoted that he may do so through retirements.A benefit, however, is that schools are

going to be less impacted, particularly withseveral new high schools being builtthrough funding from the Measure K bondprogram passed by voters several years ago.Data provided by LBUSD indicated that

the ethnic makeup of the student popula-tion has changed significantly in the past20 years or so. The percentage of Hispanicstudents in the student body changed themost dramatically, increasing from 34.5percent of the total student populace in1992 to 54.9 percent today.

The School BoardIn order for the Long Beach Board of

Education to effect change, future board-members must be committed for the longhaul, Steinhauser said. “I think anyone run-ning for the board should be committed tothe system for at least 12 years,” he empha-sized. Steinhauser, who has served assuperintendent for the past 12 years, notedthat the average tenure of a district board-member is approximately 10 years.“And this is just Chris Steinhauser

speaking – you should not run for the boardto say what your next office is going to be. . . If you’re really going to be aboutchange, it’s about time.” He holds himselfto the same standards, he noted. “I willnever be a superintendent anyplace else.This is where I am finishing my career.” �

A Two-Decade Comparison – Long Beach Unified School District Student Counts By Year, Race And Ethnicity(The school district consists of students from Long Beach, Lakewood, Signal Hill and Catalina Island)

ACTUAL NUMBERS Of STUDENTS

American Pacific African Year Indian Asian Islander Filipino Hispanic American White Multiple Other Total

1992-1993 308 11,816 1,468 2,763 25,982 14,844 18,233 0 0 75,414

2000-2001 320 10,790 1,979 2,928 42,559 18,431 16,678 0 9 93,694

2010-2011 193 6,614 1,539 3,053 45,090 13,774 13,180 357 1,016 84,816

2013-2014 153 6,115 1,343 2,648 44,279 11,962 11,540 1,149 1,496 80,685

SAME NUMBERS PRESENTED AS A PERCENTAGE

American Pacific African Year Indian Asian Islander Filipino Hispanic American White Multiple Other Total

1992-1993 0.4% 15.7% 1.9% 3.7% 34.5% 19.7% 24.2% 0.0% 0.0% 100%

2000-2001 0.3% 11.5% 2.1% 3.1% 45.4% 19.7% 17.8% 0.0% 0.0% 100%

2010-2011 0.2% 7.8% 1.8% 3.6% 53.2% 16.2% 15.5% 0.4% 1.2% 100%

2013-2014 0.2% 7.6% 1.7% 3.3% 54.9% 14.8% 14.3% 1.4% 1.9% 100%

For budgeting purposes, enrollment is expected to decrease by 1.5%, resulting in 79,199 students for the 2014-15 school year, and 78,010 for 2015-16. Source: Long Beach Unified School District

Changes, Challenges At Long Beach Unified School District IncludeHigher Accountability, Budgeting Uncertainty, Demographic Shifts

Dramatic shifts have occurred in the student population at the Long Beach Unified School District (LBUSD) over the past two decades-plus. The number of Hispanic students, for example, has skyrocketed andnow makes up more than half of all students, according to statistics provided by LBUSD. Twenty-one years ago, Hispanics represented about one-third of all students. Other significant changes during that timeperiod are that white students now only make up 14.3 percent of the student body as opposed to 1992’s 24.2 percent figure, and that Asian students now make up 7.6 percent as opposed to 15.7. LBUSDschools also saw a decline of about 5 percent in African American students during that period, however, African American students have outnumbered white students since 2000. The overall student populationexperienced a significant decline of more than 24 percent during the nearly 10-year period ending in 2000, and since 2000 another sharp decrease of nearly 14 percent has occurred. Further reductions ofabout 1.5 percent a year are projected for the next two school years. (Data provided by the Long Beach Unified School District)


SCHOOL SUPERINTENDENTS DISCUSS CHALLENGESApril 1-14, 2014 Long Beach Business Journal 15


Staff Writer

The biggest challenges facing the LongBeach Community College District(LBCCD) involve an increasing emphasison accountability related to student out-comes as well as working with a limitedamount of resources, according to EloyOrtiz Oakley, superintendent-president.

Increased Accountability,Focus On Student Outcomes

“The nature of community colleges ischanging, the expectations are changingand colleges are being asked to be moreaccountable to the public in terms of thekinds and number of graduates and trans-fers that we have,” Oakley explained.“These are accountability measures thatcolleges never had to contend with before,”he said. “Now you see a growing trend, from the

President of the United States on down toindividual states, requiring that collegesand universities really document what kindof outcomes we’re having and to be heldaccountable to increase those outcomes,”Oakley said. Since becoming superintendent-presi-

dent in 2007, Oakley has seen the collegeshift focus from highlighting its top 10 to15 percent of students to examining andreporting on how the majority of the stu-dent population is faring. LBCCD has adetailed, multi-page section of its websitededicated to this very topic.Shedding light on all of LBCCD’s students

has caused concern in the community,Oakley admitted. For example, “The com-munity college experience is no longer atwo-year experience. It is a four- to six-yearexperience,” he said. The completion rate forstudents transferring to four-year universitiesor receiving a degree or certificate is about40 percent, according to Mark Taylor, direc-tor of college advancement, public affairsand government relations for LBCCD.To increase student efficiency and suc-

cess, LBCCD began focusing on ensuringthat incoming freshmen have all the initialresources they need. One way the collegehas done that is by giving freshmen priorityfor certain courses. Although this decisionhas at times been controversial, Oakleysaid the school administration and the

board of trustees agreed it was the rightcourse of action: “The direction we gotfrom the state and the ObamaAdministration was to ensure that we cre-ated those pathways right out of highschool to get those students in and out ofour system as quickly as possible.”The college also changed the way it

placed incoming students in entry-levelcourses, which created a spike in the num-ber of freshmen in pre-college levelclasses. Instead of relying on placementtests, the school now relies on students’high school transcripts to enroll them incourses. Fourteen percent of incomingfreshmen were placed in pre-collegeEnglish courses in 2012 and 7 percent wereplaced in pre-college math. In 2013, how-ever, 60 percent of incoming freshmenwere placed in pre-college English and 30percent in pre-college math. “The board has to be in a position to

make those shifts away from traditionalmodels, away from what faculty may ormay not want, [in order] to do what the stu-dents need us to do,” Oakley said of thispolicy shift. The change is bringing good results,

Oakley observed. “What we’re tracking isthat they’re completing their courses, theyare going full time, they’re finishing ear-lier. We estimate that we’re saving some ofthese students up to four to five semestersover their community college experiencebecause of the changes that we’re making.”

Financial Challenges“There are finite tax dollars and govern-

ment resources these days,” Oakley saidabout the college district’s financial chal-lenges. “The UC [University of California]system gets about $16,000 per student. Weget about $5,000 per student,” Oakley saidof state funding. “We have the neediest stu-dents; they [UC] have the least needy stu-dents. It’s a political decision.”Public K-12 schools and community col-

leges are locked into Proposition 98 in termsof how much base funding they receive fromthe state, Oakley noted. Community col-leges receive $5,969 per student per year.Referring to LBCCD students, Oakley saidthis amount “is not nearly enough consider-ing what their needs are.”The Great Recession also put a strain on

LBCCD resources. “It became increasinglydifficult over the recessionyears because there were suchhuge funding cuts that thereweren’t enough classes at a timewhen there was a hugedemand,” Oakley said, explain-ing that lack of funding was oneof the main factors in theincrease in the time studentsspent at the college.Limited funding makes it

difficult for the district to beas proactive as Oakley wouldlike it to be in certain areas.For instance, while LongBeach City College providescareer counseling, Oakleywould like to begin providingcareer services to students by

reaching out to them before college and atfreshmen levels. “We don’t have thatmany resources where we can put all theincoming students through some sort ofprocess like that,” he said. Also challenging is that while the dis-

trict plans its budget f ive years inadvance, the state only provides theschool with a yearly budget that tends to“vary wildly,” Oakley said. For this rea-son, it is “important for the board tounderstand that fiscally, it’s important tomaintain strong healthy fund balancesbecause it is the only way that we surviverecessions,” he commented. LBCCD’sbudget is currently about $600 million.Still, even with these challenges, the col-

lege continues infrastructure improvementsat both of its campuses thanks to fundingfrom a bond measure, and is even planningto hire 35 to 38 new full-time faculty mem-bers next year, Oakley pointed out.

Changing DemographicsAs the Long Beach School District’s

demographics have changed (refer tochart), so have the college district’s. “We’remirroring changes in LBUSD and in theentire city and state,” Oakley said of stu-dent demographics. A major change is in ethnicity of stu-

dents. “We’re now pushing 50 percentLatino, whereas when I began [working atLBCCD] in 2002 we were probably 28 per-cent Latino,” Oakley noted. He added that

the “traditionally underserved population”of local areas now makes up the majority ofthe LBCCD student body.Currently, about 30,000 students are

enrolled at LBCC every semester, but justas LBUSD is anticipating its enrollmentfigures to drop, so is LBCCD. While thismeans less funding from the state, theupside of decreasing student populations is“less demand on the community colleges,”he said. “It will be important that a futureboard understand how to adjust to thosecontractions and expansions,” he added.

The Board Of TrusteesThe primary goal Oakley said he hopes

the new board of trustees understands isthat it needs to focus on the future, becausecommunity colleges are only going to con-tinue to change. “The status quo is beingchallenged, and so the board’s job is toposition the college for the next five years,”rather than focusing on what “local con-stituents may want today,” he emphasized.“I have to stress the importance of this

board election,” Oakley said, explainingthat since he began leading LBCCD in2007, the same board has been in place,which has allowed the college to pursueinnovative developments. “I think we are ata point in time in the history of the collegewhen we are either going to keep going inone direction of continuing to innovate andlead the state, or we are going to have totake a step back.” �

Increased Accountability And Limited Resources Drive Changes,Challenges At Long Beach Community College District

Long Beach Business Journal

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POLITICALWIRE – MEASURE A16 Long Beach Business Journal April 1-14, 2014

guage earmarking medical marijuana dis-pensary tax revenue for specific purposes,such as public safety. “I think that there wasdiscussion of that; however, it doesn’t appearto be in the actual ordinance,” she said.As proposed, Measure A would require

nonprofit medical marijuana dispensariesin Long Beach to pay the city a 6 percenttax on sales of medical cannabis as well asan annual fee of $15 per square foot forgrow facilities, a charge based on the sizeof a dispensary’s growing operations. The language of the measure allows the

city to increase the sales tax to up to 10percent and increase the per square footcharge to up to $50. There’s also a $10 persquare foot charge for tenant improve-ments (such as increasing electrical oradding space) on top of the required citypermit for such activity. These taxeswould be levied on top of a county tax andCalifornia Board of Equalization tax onmedical marijuana dispensaries.Measure A would not allow dispensaries

to operate legally, Carney said. “This is in asimilar fashion as an existing ordinance,”she noted, referring to the law voters passedin 2009 that allows the city to tax sales ofrecreational marijuana if/when recreationalmarijuana use is legalized in California. While the Long Beach City Council does

not have the power to write an ordinance

legalizing recreational use of marijuana, itdoes have the capacity to approve an ordi-nance legalizing medical cannabis opera-tions within city limits. And the council hasdone it before, passing an ordinance andholding a lottery to select a limited numberof dispensaries to open up shop. However,that ordinance was overruled by a ban onmedical marijuana imposed by the samecouncil in 2012. The reason Measure A is on the ballot in

the first place is because the city council

could not come to a consensus to againmake medical marijuana dispensaries legal.As this ballot measure goes to a vote of thepeople, Carney said the city attorney’s officeis working on drafting an ordinance to regu-late dispensaries. A proposed ordinance wentto the Long Beach Planning Commission inFebruary, and it will likely return to the com-mission in mid-April, Carney said. “The LBCA supports Measure A and we

want to see it passed, but we’ve always listedour concerns that without an ordinance inplace, voters are asked to support something

in the dark,” Jina Nam, attorneyfor LBCA and author of the bal-lot statement in favor of MeasureA, told the Business Journal.“There’s that cart before thehorse element to it.”Larry King, a former medical

marijuana dispensary owner andauthor of the ballot statementagainst Measure A, told theBusiness Journal that “bothsides” of the argument agreethat there should be taxation andthat it will somewhat legitimizemedical marijuana operations.“I just don’t agree with thisscheme,” he said. “If you’regoing to tax it, tax it fairly.Measure A, guaranteed, willdouble the price of the medi-cine. And who is going to pay?

The patients. That’s why I’m against thisparticular tax measure.”Others still remain against taxing medical

marijuana at all, saying that if it is truly to beconsidered a medicine it should not be taxed.“We don’t tax any medicine,” 5th DistrictCouncilmember and mayoral candidateGerrie Schipske told the Business Journal.“And it would be the highest tax on an itemin the City of Long Beach. If this is truly amedicine, we have no reason to tax it.” Adam Hijazi, member of the LBCA,

told the Business Journal that the associa-tion is pleased that the people of LongBeach will have the opportunity to vote onthis matter. And, while it looks likeMeasure A will pass, he said, “Voters sup-port balanced regulations and taxes tohelp support essential public services.” �

During a phone survey, 300 residents registered tovote in Long Beach were read the ballot language forMeasure A, which proposes a tax on medical mari-juana dispensaries if legalized, before being asked ifthey would vote yes or no on the measure. Accordingto the results, Measure A appears to be poised for vic-tory on Election Day.

54.3%Vote Yes, in favor ofMeasure A

34.7%Vote No,against

Measure A

11.0%Unsure/Refused

Vote Yes, in favor of Measure A

Vote No, against Measure A

2.0% Lean

19.0% Probably

33.0% Definately

1.0% Lean

10.0% Probably

23.7% Definitely

Surveyed voters indicated their level of support or oppo-sition of Measure A by indicating whether they woulddefinitely, probably or were leaning one way or theother. Support for Measure A remained strong.

Among those who initially vote YES

Despite an initial response from voters favoring Measure A, respon-dents reversed their likelihood of supporting the tax when they learnedthat the city does not currently have regulations in place allowing med-ical marijuana dispensaries to legally operate within city limits. (Chart courtesy of Long Beach Collective Assocation)

Despite an initial response from voters favoring Measure A, respondents wereoverwhelmingly less likely to vote yes when they learned that Measure A does notrestrict how the city could spend medical marijuana dispensary tax revenues.(Chart courtesy of Long Beach Collective Assocation)

Among those who initially vote YES

Among those who were initially unsure

“Knowing the lack of accountability for Measure A dollarsmakes 68.3% less likely to vote Yes, in favor of this”

– Probolsky Research

“Knowing the ramifications of no regulation makes53.0% less likely to vote Yes, in favor of Measure A”


Among those who were initially unsure

Impartial Analysis Of Measure ABY CHARLES PARKIN, CITY ATTORNEY

Voter approval of Measure A would amendthe Long Beach Municipal Code to establish anew business license tax on medical marijuanabusinesses operating in the City of LongBeach if the City Council rescinds the currentban on medical marijuana sales and adopts aregulatory ordinance. This business license taxis a “general tax” and therefore must beapproved by the voters. Revenues from the taxwould be deposited in the City’s general fundwhich is used to pay for police and fire protec-tion, senior and youth programs, street repairs,parks and recreation, code enforcement,libraries, employee salaries and benefits andother City services. Measure A was placed onthe ballot by the Long Beach City Council.This measure, if approved, would impose on

medical marijuana businesses a tax of up toten percent (10%) of gross receipts for med-ical marijuana sales, with an initial tax rate ofsix percent (6%) and a tax of up to fifty($50.00) dollars per square foot on allimprovements used by the medical marijuanabusiness as a cultivation facility or grow site,with an initial tax rate of fifteen dollars($15.00). Medical marijuana businesses thatqualify under state law as exempt 501(c)(3)non-profit organizations would pay ten dollars($10.00) per square foot on all businessimprovements, instead of paying a tax basedon the gross receipts of the business. Thesquare footage tax rates would be adjustedannually for inflation as measured by the LosAngeles-Riverside-Orange County AreaConsumer Price Index.A “yes” vote on this proposition is a vote to

approve the medical marijuana businesslicense tax in the event the City Councilrescinds the ban on medical marijuana salesand adopts a regulatory ordinance. A “no”vote is a vote to reject this tax. �

“The intensity of support for

Measure A is greaterthan the opposition”


“Measure A appears poisedfor victory on Election Day”


(Continued From Page 1)


POLITICALWIRE – THE MAYORAL RACEApril 1-14, 2014 Long Beach Business Journal 17

residents of Long Beach really wantedDunn – a relative newcomer to the city,moving here in 2011 – for mayor, then whyhasn’t he raised more money from them? Researching back to the first citywide

mayoral race in 1984, no candidate hascome close to contributing as much to acampaign as Dunn has. In fact, we arefairly certain no candidate for any cityoffice has approached the $375,000amount – and Dunn may add to that figurebefore voters go the polls April 8.Dunn is articulate, well educated, athletic,

and a minister and real estate developer whohas a rags-to-riches story that people enjoyhearing. In December 2010, after a speech atthe Pacific Club in Newport Beach, theclub’s then-president and owner of theNewport Beach Sports Museum, JohnHamilton, had this to say about Dunn:“He’s one of the most unique men I ever

met in my life. This man is going to be gov-ernor of this state, or the President of theUnited States. He just has a way about him.He’s like a magnet. He’s like a pied piper.Everyone wants to be around him. Whatisn’t there to admire about him?”However, being a good speaker and capti-

vating an audience with a strong, emotionalstory does not translate into being a goodelected official. No one really knows howeffective Dunn would be as mayor becausethere is no history, no record of elected serv-ice at any level by which to gauge him.Maybe, that’s part of the attraction.During Dunn’s short Long Beach resi-

dency, he has done several good deeds,including donating and raising funds tosupport middle school sports programs. Hehas also immersed himself in the commu-nity, from the Rotary Club of Long Beachto California State University, Long Beachto the Dancing With The Stars fundraiserfor Memorial Medical Center Foundation.But there are many skeptics as to his

motives for running for mayor in a townwhere his roots do not run deep and wherehis monetary fortunes have placed him infront of voters. In 2010, as a resident of Irvine, he ran for

California secretary of state as a Republican.Years earlier, he was registered as aDemocrat. For the Long Beach race, he’srunning as an independent (declined tostate). Dunn has said that he moved to LongBeach to be closer to his daughter, who livesin Manhattan Beach. Curiously, that saveshim only about 20 minutes each way.In Dunn’s March 25 press release, he

doesn’t identify what he means by stopping“political corruption.” Those are strongwords, and since Dunn is a newcomer tothe city, we assume the “corruption” hehints at occurred during the past two yearsunder Mayor Bob Foster. Residents andbusiness people may dislike some ofFoster’s actions, but corruption? No way.Dunn also claims in his “Dunn’s Code of

Ethics,” that he will “accept no pay raisesor increases in pension benefits while inoffice.” Unfortunately, the Long BeachCity Charter does not allow to waive thoseitems. He has to accept the pay raises, buthe can then donate any or all of his mayoralpay as he wishes. If he’s elected mayor, hewon’t receive “pension benefits” until heretires, so his gesture is rather meaningless.Dunn’s press release also states: “An

energetic, independent leader,Dunn explained that using hispersonal funds, ‘Protects his inde-pendence from special interestsand gives him the flexibility to dothings differently, like propose atough, new code of ethics that hewill lead by example.’He has the endorsements of the

Long Beach Area Chamber ofCommerce Political ActionCommittee and the Long BeachFirefighters Local 372. Those are“special interests.” Both groups arespending tens of thousands of dol-lars to get Dunn elected. So hisclaim of independence seems a bithypocritical.Are we picking on Dunn? Not at

all. His residency, political historyand local fundraising efforts arefair game. He, thus, deserves themost scrutiny of all the candidates.

Lowenthal Voting Record Poor, According To State

Business GroupsThere’s a bill making its way

through the California Legislaturethat, if passed, will prove difficultfor most businesses – especiallysmall business – and certainlyresult in layoffs and more part-time workers.The legislation, Assembly Bill

1522, mandates that all employers,except those with collective bar-gaining agreements, provide anyemployee who has worked inCalifornia for seven days withpaid sick leave, at an accrual rateof one hour for every 30 hoursworked. And it threatens employers withstatutory penalties as well as litigation foralleged violations.This is a nightmare piece of legislation

for the business community that is beingpushed by Democrats in Sacramento. OnMarch 20, the Assembly Labor andEmployment Committee passed the billalong party lines, 5-1.Mayoral candidate and current State

Assemblywoman Bonnie Lowenthal willvote on this bill – unless she wins the mayoralrace or a vote is delayed. Based on her trackrecord, though, she will support it – again,because she sticks to the Democratic line. The California Chamber of Commerce

has consistently rated Lowenthal low whenit comes to legislation impacting business.The chamber rated each member of thestate senate and state assembly on 14 keybusiness votes during 2013. Most assemblyDemocrats agreed with the chamber posi-tion 5 to 8 times on the 14 issues. ForLowenthal, it was just 3 – tied for last withtwo other Democrats. She also rated lowwith the National Federation ofIndependent Business – the largest smallbusiness group in the state and nation –tying for lowest rating with four fellowDemocrats on 8 small business votes.But the Number 1 anti-business vote by

Lowenthal came when she agreed to elimi-nate redevelopment agencies, a significanthit for Long Beach, especially in lowerincome areas that needed a development(and jobs) boost. Mayor Foster and a unani-mous city council urged Lowenthal not tosupport the governor’s wishes, but she did

anyway – some say putting herparty ahead of her city.In fact, while Lowenthal has

strong support from statewideelected officials, not one currentCity of Long Beach elected offi-cial is supporting her for mayorand, stretching back to the 1970s,only four former councilmembershave endorsed her, and two ofthose don’t count: her ex-husbandand her current boyfriend.

Gerrie Schipske: What About My Plan?

Mayoral candidate GerrieSchipske took PoliticalWire to taskfor not touting her written propos-als if she’s elected. She emailed:“ . . . noticed you are enamoredwith Doug Otto’s vision statements[discussed in the March 18PoliticalWire column] he has beenturning. Mine have been up on mywebsite for 10 months and best part,I wrote them and not a staffer. Can Iget a review from you?”Our response to her: “All you

had to do was tell us about them.”To her credit, Schipske does have

a long list of detailed issue state-ments on her website, covering sixgeneral areas: Public Safety;Economic Opportunity; CommonSense Budgeting Solutions;Infrastructure; Sound, OpenGovernment; and Open AndTransparent Bargaining. The firstfive have a “Plan of Action.” Thelast item has a survey. To read eachitem, go to: www.schipskefor-mayor.com and click on “Issues.”

But beyond those, she has an impressivelist of 45 reform measures – campaign,transparency and accountability reforms –“to make Long Beach a better city,” includ-ing: #1 Require the Mayor and City Councilto disclose before a vote is taken, any cam-paign or officeholder contributions receivedfrom lobbyists, contractors and other indi-viduals having an interest in an item beingdiscussed; #23 Disclose the travel andexpenditures of the Mayor and City Councilon a monthly basis; and #45 Discloseappraisals done on properties sold or pur-chased by the City before the terms of thesale have been reached. Few voters woulddisagree with her list. We decided to check out the websites of

the other top mayoral candidates to see ifthey each had a “plan.” Robert Garcia doeshave a plan he calls “Making Long BeachWork: A Blueprint for the New Economy.”(www.RobertGarcia.com). Lowenthal hasthree plans: economic development; thearts; and her “vision for libraries in LongBeach.” (www.bonnieforlongbeach.com).Dunn has the least information – threeparagraphs he calls “A New Vision forLong Beach,” but with little detail.(www.damondunn.com). We encourage voters to visit the websites

and read the plans.April 8 Election Analysis

With election day a week away, none ofthe mayoral candidates are leaving the fieldbehind, although most political observersbelieve Lowenthal has the best chance ofgetting into a June 8 runoff. Because of her name recognition,

Lowenthal should do well in all areas of thecity. Keep an eye on: a low voter turnouthurts her more than other candidates.While she has the Democratic Partymachine behind her, Lowenthal is by nomeans a lock for the party vote. Garcia,Schipske and Otto are Democrats, too.Also, two years ago in the primary for the70th Assembly seat against a little known“Republican” opponent and with low voterturnout, Lowenthal didn’t do that well. Andwith the exception of the City of SignalHill, the assembly district boundaries mir-ror those of Long Beach. Schipske benefits the most from a low

voter turnout. Schipske should rack upstrong numbers in her backyard – the 5thCity Council District in Northeast LongBeach, where turnout is usually very good– but where else does she draw votes? Keepan eye on: If Schipske wins the 5th Districtby a huge margin and voter turnout is lowon the Westside, she may make the runoff.Garcia will do well downtown in the 1st

and 2nd Districts, where he is best known,and maybe a little in the 3rd District. Beyondthat, he has to rely on Mayor Foster’sendorsement to help him with voters else-where. That may prove difficult unless he hasrun a strong absentee voter program – whichis possible since the Foster team has experi-ence in winning the absentee vote. Keep aneye on: If Garcia is trailing when the firstvotes – usually all from absentee ballots –are released election night, his chances formaking the runoff spot will be slim. Otto’s best path to a runoff is winning the

3rd District and finishing second toSchipske in the 5th District. It is doubtful hewill get much support from voters in theWest and Central parts of the city (1st, 6thand 7th Districts) or from the BixbyKnolls/North Long Beach areas (8th and 9thDistricts). Keep an eye on: If Otto does notpull well in the 5th District, he may be done.Dunn will be battling Otto for 3rd

District votes and should do well in the 5thDistrict, especially from conservative vot-ers. Since he’s knocked on thousands ofdoors throughout the city, and has the sup-port of the firefighters union, Dunn shouldattract voters from many districts. Keep aneye on: Dunn doesn’t need the 3rd Districtas much as Otto, but Dunn may be done ifhe finishes third or lower in the 3rd.Also keep an eye on the following:• Closely contested city council races in

the 3rd and 5th Districts should increaseturnout and help Schipske, Otto andDunn the most. • While Roberto Uranga is expected to

win the 7th City Council seat, he may notavoid a runoff. The race should spark addi-tional interest and more voter turnout,which benefits Lowenthal the most.• With no city council races in the 2nd,

and 6th Districts, voter turnout in those dis-tricts should be low. That hurts Garcia andLowenthal the most.• With no city council race in the 4th

District, voter turnout in the western por-tion of the district, where manyCambodians live, is expected to be verylow. That impacts Lowenthal the most.• A hotly contested race for city attor-

ney may draw additional attention fromwestside voters, helping Lowenthal andGarcia the most.It’s still anybody’s race. Let’s see who

can best get out their base of supporters. �

Damon Dunn

Robert Garcia

Doug Otto

Gerrie Schipske

Bonnie Lowenthal

(Continued From Page 1)


According to the Centers forDisease Control and Prevention,

around 1 in 88 American children areidentified with an autism spectrumdisorder – a ten-fold increase inprevalence in 40 years. More thantwo million Americans currently livewith an autism spectrum disorder, butthe cost of lifelong care can bereduced by more than 60 percent withearly diagnosis and intervention.When it comes to your child’s health,autism is a disorder that can’t beignored or overlooked.

Autism is a complex developmental disability that affects aperson’s ability to communicate and interact with others. Itaffects information processing in the brain by altering hownerve cells and their synapses connect and organize; how thisexactly occurs is not well understood yet. Autism is defined bya certain set of behaviors and is a spectrum disorder thataffects individuals differently and to varying degrees.Symptoms almost always start before a child is 3-years-oldand can present themselves as early as 18 months.

There are three main types of autism spectrum disorders,including Autistic Disorder, Asperger Syndrome andPervasive Developmental Disorder. Autistic Disorder is whenpeople have significant language delays, social and communi-cation challenges and unusual behaviors and interests.Asperger Syndrome is when people have some milder symp-toms of autistic disorder. Pervasive Developmental Disorderis when people who meet some of the criteria for AutisticDisorder or Asperger Syndrome.

The diagnosis of autism has always been based on historyobtained from caregivers and teachers, as well as through directobservations. There currently is no blood test that can diagnosean autism spectrum disorder. However, research is underway toevaluate a blood test that will help in making the diagnosis.

There is no known single cause of autism, but autism istreatable. Children do not outgrow autism, but studies showthat kids who received early diagnosis and intervention tendto have better brain function, communication skills and over-all social behavior. This is why knowing the signs of autismand taking action is so important.

There are several signs and symptoms that are more prevalentthan others and that parents should keep an eye out for:

Unusual behaviors• Hand flapping• Lines up toys or other objects• Gets upset by minor changes• Has obsessive interests

Poor social skills• Avoids eye contact• Doesn’t respond to their name after 12 months• Prefers to play alone• Avoids or resists physical contact

Difficulty with communication skills• Doesn’t point or doesn’t respond to pointing• Repeats words or phrases over and over• Delayed speech and language skills• Reverses pronouns (i.e., “you” instead of “I”)

There also are potential risk factors that may increase achild's chance of developing autism:

• Children that have a parent or sibling with autism• Children that are born more than 26 weeks premature • Children that are born to older parents, especially fathers• Children that are born underweight• Boys are four to five times more likely to develop autism

than a girl• Pregnant women who take the prescription drugs valproic

acid and thalidomideIt is important to note that one of the most common rumors in

autism is based on whether a link exists between autism and cer-tain childhood vaccines, particularly the measles-mumps-rubella(MMR) vaccine. However, extensive studies and research havenot found a link between autism and vaccines.

As a parent, being aware of the potential warning signs and risksand taking action to get your child tested can make a difference.

(Gary Feldman, M.D., is medical director, StramskiChildren’s Development Center, Miller Children’s Hospital.)

V alidation is a part of life. It starts inthe home with our caregivers. It con-

tinues as we go to school. We are validatedto various degrees with test scores andfeedback from our instructors. Outside theclassroom there is consistent validation onwhere we stand on the bell curve. The val-idators don’t place us there. We take theirfeedback and place ourselves on the axis –often unconsciously.

The validation principle doesn’t stopafter our schooling is done. In fact it’s a sta-ple. It continues as we live our busy lives.

Rather than fight the validation process,make sure you join it! How? Go beyondthe external validations and validate your-self. Some refer to it as accepting yourself.That’s a good start. But how about validat-ing yourself? This is where you say, “I feelgood about myself. I feel good about whatI’m doing. I am adding value.”

Acknowledging differences and diver-sity is great if it’s accompanied by personalvalidation. It then becomes a form ofenrichment rather than entanglement andentrapment. What you think and say aboutyourself is more important than someoneelse’s attitude about you. Why? Becauseyou live with yourself.

So listen to yourself, because nothing

happens to you without you making someinternal comment about it. Make sure it’svalidating. You will have important conver-sations throughout your day, but the mostimportant ones are with yourself.

Imperfection does not invalidate yourvalue. We all make mistakes. As one manput it, “No one drowns by falling in thewater. They drown by staying there.” It’s allabout the process of building and re-evalu-ating YOU. It starts everyday where you are,working on your personal evaluation. Eachday you make a new validating declaration.

Nothing will make your value go up theway you can. Attempting to gain it fromothers leads to stress. It starts with you. Weuse the term “appreciation” in the realestate world. It refers to increased value.As you appreciate yourself, you are vali-dating yourself – adding value to yourself.

Validation is acceptance, authentication,and endorsement. You do it first, and otherswill follow. This is why validation breedsconfidence.

So each day: Embrace your uniqueness.Learn to forgive yourself. Keep your per-sonal accounts short. Treat each day as anew day – a fresh start to be what you weremeant to be. Here’s the side effect. You willbegin to validate others. It’s hard to do forothers what you cannot – will not – do foryourself.

There will always be people who willdoubt what you do and how you are doingit. Don’t let that stop you. Validation =Competence + Confidence. Own your way.If there’s a better way, you’ll do that nexttime. There is no failure – only feedbackand an opportunity to grow.

Focusing on what could go wrong istoxic. Strength comes from focusing onwhat is right and moving forward. WhenNASA sends up satellites toward anotherplanet, they calculate that it’s off courseabout 98 percent of the time. Yet it arrivesat its destination. How? They take the feed-back, focus on the 2 percent that it’s doingright, and then move in that direction withall the adjustments. Start capitalizing onwhat’s right and move in that direction.See how far that takes you.

It is estimated that we have 50,000thoughts per day. Each thought produces achemical reaction in our brains that in turntriggers feelings and emotions throughoutour body. There is a strong relationshipbetween what you think and how you feel.Thinking is kind of like breathing. You arealways doing both and so you tend to forgetyou are doing it. In the same way we can beunaware of how much our thoughts dictatehow we feel every moment of everyday.

This is where practicing validationbecomes highly valuable. By learning tomake sure your self-talk is of a validatingnature you will focus on the right things andmore effectively manage your emotions.

Just like the satellite, it’s a process morethan a destination. Let’s keep it going in theright direction.

As you believe in yourself and validateyourself, your trajectory will continue tobe successful.

(Mick Ukleja is the author of severalbooks, a coach, keynote speaker and pres-ident of LeadershipTraq, a leadership con-sulting firm. Check his weekly blog atwww.leadershiptraq.com.)

� EFFECTIVE LEADERSHIPBy Mick Ukleja

Did You Get Your Ticket Validated?To Validate = (1) to confirm the truth; (2) to make legal; (4) to make somebody feel valued.

Autism Awareness– Knowing Can

Make TheDifference

Long Beach Airport (LGB) has longbeen an area around which a variety

of other functions and activities havedeveloped. All airports in some way arekey widgets in globalproduction and enter-prise systems offeringspeed, agility, and con-nectivity. Airports arepowerful engines oflocal economic devel-opment, attracting avia-tion-linked businesses of all types, andthe entities to support them. Theseinclude, among others, time-sensitivemanufacturing and distribution; hotel,entertainment, retail, convention, tradeand even medical services. All requireoffice buildings that house air travelintensive executives and professionals.

The Long Beach Airport AreaComplex is experiencing an exciting timeof renewed energy and advancement.Your airport is a vital economic asset forthe community, currently supporting

nearly 43,000 jobs in the region. LGB’sconcourse presently houses a number oflocal retail and restaurant choices but asbusinesses migrate and relocate closer toyour airport the demand for more willlikely follow. This supports the vision tointroduce more dining, retail, conferenc-ing and in short, introduce more jobs.

You may have already noticed the newdevelopments near the airport. For exam-ple, there is a newly opened CourtyardMarriott, with restaurants includingStarbucks, The Flame Broiler, The HabitBurger and Jersey Mike’s Subs lining thearea surrounding it.

The bleak news is that manufacturingis experiencing a slight decline due tothe closure of Boeing’s C-17 plant; buton a positive note, the aerospace com-pany is adding 300 engineers to the areaand Gulfstream Aerospace is on therise. Further, Mercedes Benz USA plansto use the facility on LakewoodBoulevard and Conant as its vehiclepreparation facility and regional officefor the western United States, and as atraining center.

More recently, a future healthcare site

has broken ground adjacent to your airport.Five acres of undeveloped land will soonbe home to a medical office park. Thehealthcare facility, set to be complete bythe end of this year, is meant to meet theneeds of the community.

All of the above are taking advantageof your airport’s ideal location, includingeasy access to freeways and a global con-nection. The rapid development of air-port-linked commercial facilities is mak-ing Long Beach Airport an anchor of thearea’s development. The vision for thearea is one where travelers and localsalike can conduct business, exchange

knowledge, shop,eat, sleep, and beentertained in thevicinity.

Your airport isintegral to the clus-tering of businesses

and a boon for skilled job seekers. Thefuture economy is bright with yourAirport in your neighborhood. Those ofus at LGB work continuously to pro-mote the city’s assets and make yourLong Beach Airport the ideal gatewayto our great city.

(Mario Rodriguez is director of theLong Beach Airport. He has more than 25years of experience in the aviation indus-try and has overseen airports from Kuwaitto New Orleans. Questions about this col-umn may be directed to public affairs atthe Long Beach Airport 562-570-2678.)

The Long Beach Airport Area ComplexMeeting The Needs Of The Future

� HEALTHWISE

By Gary Feldman, M.D.

� A BETTER WAY

TO FLYMarioRodriguez

18 Long Beach Business Journal April 1-14, 2014

PERSPECTIVE

Long Beach Airport

A Better Way to Fly


PERSPECTIVEApril 1-14, 2014 Long Beach Business Journal 19

PUBLISHERGeorge Economides

VICE PRESIDENTSALES & MARKETING

Martha Rangel

SALES & MARKETING ASSISTANT

Heather Dann

GRAPHICS/PRE-PRESSLuke DuBois

DISTRIBUTION

Conrad Riley

EDITORIAL DEPARTMENT

EDITOR

Tiffany Rider

STAFF WRITER

Samantha Mehlinger

PHOTOJOURNALIST

Thomas McConville

COPY EDITOR

Lindsay Christopher

The Long Beach Business Journal is a

publication of South Coast

Publishing, Inc., incorporated in the

State of California in July 1985. It is

published every other Tuesday

(except between Christmas and mid-

January) – 25 copies annually. The

Business Journal premiered March

1987 as the Long Beach Airport

Business Journal. Reproduction in

whole or in part without written

permission is strictly prohibited

unless otherwise stated. Opinions

expressed by perspective writers

and guest columnists are their views

and not necessarily those of the

Business Journal. Press releases

should be sent to the address shown

below. South Coast Publishing also

produces Destinations and the

Employee Times magazines.

Office

South Coast Publishing, Inc.

2599 E. 28th Street, Suite 212

Signal Hill, CA 90755

Ph: 562/988-1222 • Fx: 562/988-1239

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In the six-plus years since the begin-ning of the global financial crisis,

about 90 percent of new mortgageshave been backed by either FannieMae, Freddie Mac or the FederalHousing Administration (FHA).Fannie and Freddie, the two gov-

ernment-sponsored entities that basi-cally own and fund the secondarymortgage market, where home loansare purchased from lending institu-tions to keep the supply of money inthe pipeline for the American housingmarket, currently hold the paper on orguaranteeing about 60 percent of themortgages currently on the books.Even though these agencies ran

into trouble in 2008 at the beginningof the mortgage and housing bubble,and required a federal bailout, theyhave repaid the money in full andcontinue to pay dividends to the gov-ernment that was given stock in thesecompanies as part of the terms of the

federal assistance. So, currently, theyare one of the few profit centers thatthe federal government can point to.But this has not stopped the powers-

that-be in Washington from trying todismantle these decade-old entities inthe name of trying to protect theAmerican people from having to everbail out the lending giants in the future.These efforts appear to be close to

becoming a reality – something thatwas deemed remote just a few monthsago, given the complexity of the taskand the fact that the government isnow profiting from the bailout. SenateBanking Committee Chairman TimJohnson (D-SD) and Ranking MemberMike Crapo (R-ID) have announcedthe broad outlines of their plan to elim-inate Fannie Mae and Freddie Mac andreplace them with the Federal HomeLoan Mortgage Corp. (FMIC). Theyhave made a draft proposal available.It still has a long way to go since it isstill in committee, but this is the firstlook at what could be the future of theU.S. mortgage market.Senators Mark R. Warner (D-Va.)

and Bob Corker (R-Tenn.) actuallyintroduced legislation beginning thisprocess last year, with five co-spon-sors from each side of the isle amongthe Senate Banking Committee, to tryto reduce future risk to taxpayers

from a housing downturn by requir-ing banks and others who packagemortgages into securities to hold atleast 10 cents of capital for every dol-lar of the underlying loan.The government would only step in

after the guarantors had failed, andthe bill prohibits the governmentfrom bailing out institutions that areinvolved in the FMIC market. To fur-ther shield taxpayers from the sec-ondary mortgage market, the FMICwould collect fees (10 basis points)from all participating institutions andmaintain a re-insurance fund modeledafter the FDIC’s policies.Nice in theory, but many in the

mortgage and real estate industry ques-tion whether lenders will go along withthis – at least without adding to the costof home loans – and what impact thiswill have on a still fragile economy andhousing market. Trying to un-wind andre-wind the fabric of the mortgagemarket during one of the most tryingfinancial episodes in American historyappears risky at best. There already is abottleneck in the availability of mort-gage money, and as we have seen withthe conversion of healthcare into a newsystem, monumental change such asthis can take time and is fraught withchallenges that were not considered inthe planning stages.

One important piece of the puzzlethat appears to be ignored – at leastat this time – is affordable housingand promoting home ownershipamong all economic sectors.According to the proposal summary,“The bipartisan draft will eliminatethe affordable housing goals ofFannie Mae and Freddie Mac.”Legislators seemed to be pre-occu-

pied with shielding taxpayers fromfuture liability from catastrophiclosses in the mortgage industry, but thereality is that in such a case the federalgovernment would have no choice butto step in. Besides, this $187.5 billionbailout has already returned $204.9billion back to the Treasury – and thisnumber will grow every quarter.With both Republicans and

Democrats looking to push legislationthrough to start a new agency, and theneliminate Fannie and Freddie withinfive years, it is probably a good betthat this change could happen muchsooner than most industry watchersbelieved at first. What this does to theoverall housing and mortgage industryis much harder to predict.(Terry Ross, the broker-owner of TR

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

� REALTY VIEWS

By Terry Ross

Fannie And Freddie’s Days May Be Numbered

Vol. XXVII No. 6April 1-14, 2014

On The Hook For Transforming A Residence Into A Pub – Part II

An installment of this columnappearing in a December 2011

issue of the Business Journal reportedthe case of Ennabe v. Manosa, asdecided by the Court of Appeal.Events subsequent to that installmentdeserve being reported here.The case dealt with the breadth of

immunity from civil liability of asocial host who furnishes alcoholicbeverages to guests if one of theguests thereafter manages to injureanother. Although the social host isnot immune from liability if alco-holic beverages are sold to an obvi-ously intoxicated minor, the Courtof Appeal found there was no liabil-ity because there was no sale of suchbeverages. The case was based on the follow-

ing events:Jessica Manosa, a 20-year-old,

decided to host a party in a vacantrental residence owned by her par-ents. The world was invited by word-of-mouth, telephone and text mes-saging. Approximately 40 to 60 peo-ple showed up. Most of them wereunder 21 years of age and strangersto Jessica. To finance the event, Jessica and

two of her friends contributed a totalof $120 to purchase beer, tequila

and rum. The liquor supply wasenhanced by those guests whoarrived with their own alcoholicbeverages.Access to the party by those per-

sons not known to Jessica or herfriends was made possible by the pay-ment of an admission fee, whichranged from $3 to $5. Payment of thisfee entitled the partygoer to consumewhatever food and beverage could befound on site. The admission feeswere used to purchase additionalalcoholic beverages during the courseof the party.Andrew Ennabe, age 19 and a

friend of Jessica’s, was admittedwithout the payment of any fee.Andrew had been to another partyand, by the time he arrived at thisparty, he was obviously intoxicated.Notwithstanding his condition, atthis party he continued to consumealcoholic beverages. ThomasGarcia, age 20 and not a friend ofJessica, arrived at the premises in anintoxicated condition and paid anadmission fee. At the party he con-tinued to consume alcoholic bever-ages and became rowdy and bel-ligerent. Eventually, he was asked toleave. In the process of driving fromthe party, Thomas struck and killedAndrew. Subsequently, Thomas wasconvicted of a felony and sentencedto 14 years in prison.Andrew’s parents then initiated a

lawsuit against Jessica and her par-ents for the death of their son. Theyclaimed that Jessica and her parentshad forfeited any immunity from civilliability as social hosts. Jessica and her parents asked the

court to grant a summary judgment in

their favor, without the necessity of atrial. The motion was granted. Andrew’s parents appealed. The Court of Appeal found that

Jessica and two of her friends con-tributed the money to obtain the ini-tial alcoholic beverages. Otherguests paying an entrance fee con-tributed the money that was used toobtain additional beverages duringthe party. Those paying for the liquorcan be said to have provided alco-holic beverages to each other, mak-ing Jessica and the others both sell-ers and purchasers. “Under such cir-cumstances, it would be unreason-able to deem a sale to haveoccurred.” Applying the language ofthe immunity statute, the Court ofAppeal concluded that there is noindication in the language or legisla-tive history of the statute that thelegislature intended to impose liabil-ity on social hosts and guests whocontribute money to a common fundto purchase alcoholic beverages for asocial occasion.The judgment of the trial court in

favor of Jessica and her parents wasaffirmed.The previous installment concerning

this case ended here, prior to any sub-sequent efforts by Andrew’s parents.Dissatisfied with this result,

Andrew’s parents later asked for ahearing before the CaliforniaSupreme Court. Their request wasgranted.The Supremes reversed the deci-

sion of the Court of Appeal. Theyagreed that California statutory lawgenerally provides that a person whofurnishes alcoholic beverages toanother person cannot be held liable

for any damages resulting from thatperson’s intoxication. However, thisrule of immunity has its limits. Itdoes not apply if someone sells alco-hol to an obviously intoxicatedminor which results in the injury ordeath of a third person. In suchcases, liability can be established ifthe provider was unlicensed to sellalcohol but sold alcohol to the minoranyway. Here, Thomas was under-age, obviously intoxicated and paidmoney to enter Jessica’s party.Jessica was not licensed to sell alco-hol. The alcohol was indeed pur-chased and consumed by Thomaswhile at Jessica’s party. This con-tributed to Andrew’s eventual death.Based on these facts, the

Supremes found that California’sgeneral rule of immunity does notapply. Jessica and her parents couldbe held liable for what happened toAndrew. Liability may attach sinceAndrew’s parents alleged that Jessicawas a person who sold or caused tobe sold an alcoholic beverage to anobviously intoxicated minor. The judgment of the trial court was

reversed. It should not have granted asummary judgment in favor of Jessicaand her parents.The case was returned to the trial

court for further proceedings (trial)“consistent with our opinion” to allowAndrew’s parents the opportunity toprove what they alleged in their com-plaint against Jessica and her parents.The decision by the Supreme Court

is dated February 24, 2014.(Tom Ramsey is a Long Beach attor-

ney who has specialized in businesslaw for more than 41 years. He may bereached at [email protected].)

� BUSINESSLAWBy TomRamsey


Visit pacific-gateway.org/fbsw for more information about this opportunity.

Learn about: April 16, 8:00am-9:30am

Participants MUST register by April 14.

Pacific Gateway Small Business Development CenterFree Business Solutions Workshop


Documents

April 1-14, 2014 Section A