march 3-16, 2015

� By SAMANTHA MEHLINGER

Senior Writer

E lizabeth Martin thought shehad kicked colon cancer –

and so had her doctors – when shefell in the shower at her sister’sLong Beach home last year. Butfor months, the pain from that fallwouldn’t go away, and when adoctor was finally able to tell herwhy, the diagnosis was grim. The cancer was back, and it

was everywhere – her spine, herliver, her lungs. The diseaseworsened quickly, and her sisterand caretaker, Anita Freeman,was haunted by a promise shehad made Elizabeth the last timeshe’d faced cancer. “At the time she made me

promise that if the cancer cameback I would help her to go tosleep peacefully,” Freeman re-called. It wasn’t long before Eliz-abeth made the request again.With eight weeks left to live,

Elizabeth went home with hersister to receive hospice (end-of-life) home care. “She was havingso much pain. I mean we triedoxycodone; we tried everyknown painkiller. They finallyput her on morphine,” Freeman

said, explaining that not only didit take an hour for the morphineto kick in but when it did, itdidn’t help much. “She would just cry and beg

me, ‘Please just help me go tosleep. I don’t want to do this any-more. I don’t want to endure thiskind of pain,’” Freeman said.“She’d take my hand and shewould say, ‘You promised to helpme.’ And I couldn’t help her. I wastoo afraid I’d end up in jail.”Freeman now advocates for

right-to-die legislation in Califor-nia through the national organiza-tion Compassion & Choices, notonly because her sister was unableto end her life on her own terms,

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FOCUS ON BUSINESS AND EDUCATION

Timothy P. White has served as chancellor of California State University (CSU)since 2013, overseeing the 23-school system. CSU, which employes 45,000faculty and staff, has been headquartered in Downtown Long Beach since 1976.(Photograph by the Business Journal’s Thomas McConville)

CSU Chancellor Timothy P. WhiteDiscusses Meeting California’s

Needs On A Tight Budget� By SAMANTHA MEHLINGER

Senior Writer

S ometimes called “the people’s university,” the CaliforniaState University (CSU) system graduates between 110,000

to 115,000 students per year – most of whom, according to CSUChancellor Timothy P. White, stay in California and contribute tothe state’s economy. In an early February interview with the Business Journal in his

Downtown Long Beach office, White did not waste a minute beforehighlighting the two driving forces behind his actions as chancellor:serving the needs of his state and addressing an impending shortageof university degrees among Californians.

SPECIAL REPORT – HEALTH CARE

Proposed Legislation PutsSpotlight On Right-To-Die

Debate In California

Airport Customs Study Could Take Three Years, Or . . .

Formula E racing is coming to the streets of Long Beach on Saturday, April 4. And admission is free! Long Beach joins Beijing,Monte Carlo, London, Berlin and Buenos Aires as one of only 10 cities in the world hosting the race. See story on Page 24.

Small Staff, Small Office,

But Big ResultsArthritis National

Research Foundation,Based In Long Beach,Has Strong Record Of

Accomplishment

� By DAVE WIELENGA

Staff Writer

T he roots of the ArthritisNational Research Foun-

dation (ANRF) reach more than60 years into Long Beach his-tory, a timeline that’s a testamentto how long the debilitating jointcondition has evaded a cure. Butover that time the organizationhas been refining its search, andapplying new ideas, increasinglyrigorous science and ever-more-excellent fiscal managementpractices to blossom into one ofAmerica’s best not-for-profits.

(Please Continue To 4)

(Please Continue To Page 12)


“I am pathologically

focused on student success.

Students first, students last,

students everything.”

Timothy P. White, ChancellorCalifornia State University

An Evening With Genius

Role Of Map-making AndGeographic InformationSystems In Charting A

Course To A Better Future

� By JACK HUMPHREY

Contributing Writer

I t is rare that one is privilegedenough to spend an entire

evening in the company of a bril-liant mind; rarer still is thechance to spend it in the pres-ence of TWO such minds. On February 25, more than

120 people shared exactly thatexperience when the Aquariumof the Pacific hosted a discus-sion between two leaders fromthe world of intelligent mapping,data and design: Jack Danger-mond, president and founder ofthe Environmental Systems Re-search Institute (ESRI), andRichard Saul Wurman, an archi-

ENDORSEMENT –APRIL 14 SPECIAL ELECTION

Supernaw For The 4th District

City Council Seat� By GEORGE ECONOMIDES

Publisher

T he Long Beach BusinessJournal is endorsing

Daryl Supernaw in the April 14special election for the LongBeach City Council 4th Districtseat. Supernaw’s credentials farexceed those of the other can-didates. In fact, there is simplyno comparison as to who is thebest qualified person to servethe district.For starters, Supernaw, whose

father was a Long Beach fire-fighter, has lived in the districthis entire life. He attended Buf-fum Elementary School, Stan-ford Middle School and WilsonHigh School. He received hisbachelors and masters degrees

Customs RepresentativeDetails Many Of The StepsNecessary For A Facility


Staff Writer

W hy would it take “a min-imum of three years” to

get a United States Customs facil-ity up and running at the LongBeach Airport?Airport Director Bryant L.

Francis, who included that esti-mate in a February 23 letter in-forming the mayor, city counciland city manager of Jet Blue’s re-quest for the City of Long Beachto apply for a U.S. Customs facil-

ity that would allow internationalflights, declined through aspokesperson to detail how thattimetable was calculated. The Long Beach Business Jour-

nal contacted U.S. Customs andBorder Protection (CPB) for anassessment of Francis’ three-yearforecast, but spokesperson JaimeRuiz said it was impossible to dooff the top of his head. Hewouldn’t venture his own guess. “Every application is differ-

ent,” Ruiz, chief of CPB’s North-ern/Coastal Branch, said during

a telephone interview, “becauseevery airport is different. Somehave facilities ready to beadapted to the very strict DHS[Department of Homeland Secu-rity] standards for becoming aninternational airport. Somemight have to build an entire cus-toms facility.”Ruiz made passing reference to

many of those requirements dur-ing a pleasantly meandering con-versation. The rough to-do list wasextensive and daunting, not that

Formula EApril 4




1_LBBJ_MARCH3_2015_PortAnniversary 3/4/15 10:54 AM Page 1

March

Inside This Issue3 Focus On Business & Education

• Interview: CSU Chancellor Timothy White,Continued From Pg 1

• City College’s Eloy Oakley Accepts Challenges Ahead• Entrepreneurial Institute At CSU Dominguez Hills

10 Special Report: Health Care• Addressing Health Care Needs Of Older Population• Arthritis Foundation, Continued From Pg 1• Right-To-Die Legislation, Continued From Pg 1

16 Newswatch• City Council Passes Small Business Incentive Package• Tentative Longshore Contract Agreement Reached• Boeing Opens Career Development Center In L.B. • Customs Service At Airport, Continued From Pg 1• Railway Lawsuit: Briefs Being Prepared For Judge• Evening With A Genius, Continued From Pg 1• Formula E – The Quiet Racing Revolution• Supernaw Endorsement, Continued From Pg 1

26 In The News• Sprucing Up North Long Beach• Initiative Targets Residents Who Need Eye Glasses

• Rotary Raises Money For Early Literacy Programs

• New Employees At Moffatt & Nichol

• Port Of Long Beach Adds To Executives To Staff

• Jodi Hein New Chief Nursing Officer At St. Mary

• Groups Announce New Officers, Boardmembers

28 PerspectiveRealty Views By Terry RossSmall Business Dollars & Sense By Ben AlvaradoHealthWise By Iman Shbeeb, M.D.Trade And Transportation By Tom O’Brien Effective Leadership By Mick Ukleja

30 Art MattersPresented By The Arts Council For Long Beach

31 The Nonprofit PagePresented By The Long Beach Nonprofit Partnership

2 Long Beach Business Journal March 3-16, 2015

Free: Long Beach Business Journal Digital Edition, Monday Morning Coffee, NewsFlash

Sign up at: www.lbbusinessjournal.com • Follow us on Twitter: @LBBizJourn

1_LBBJ_MARCH3_2015_PortAnniversary 2/28/15 3:14 PM

� By DAVE WEILENGA

Staff Writer

If there is one place on Long BeachCity College’s (LBCC) two metamor-phosing campuses that epitomizes all thechange making that Eloy Ortiz Oakleyhas overseen during the last decade, itmay be the southwest corner of Clark Av-enue and Carson Street.“That’s the building we are working on

right now,” Oakley noted during a recent in-terview in his brand-new office, itself partof the ongoing 15-year, $616-million mod-ernization program he began managing twoyears before he became the college’s super-intendent and president in 2007. “That’s theMath and Culinary Arts Building.”Math. Culinary arts. Interesting com-

bination.“It’s not the combination we began with,”

Oakley acknowledged. “But, over time, be-cause of changes we wanted to make acrossCarson, along with new technology beingdeveloped for math instruction, we realizedwe needed to move math.“The next question was where to move

it. We knew we still needed to build a homefor culinary arts. So those started to cometogether – but it was a concept that wasn’toriginally thought about when we devel-oped the master plan.”There are master plans and masterminds,

March 3-16, 2015 Long Beach Business Journal 3BUSINESS & EDUCATION 2015

City College’s Eloy Oakley Accepts The Challenges Ahead As Institution Reconfigures Its Culture, Curriculum And Purpose

Long Beach Community College District Superintendent-President Eloy Ortiz Oakley (seated, center) is pictured with several president’s ambassadors and col-lege executives at the liberal arts campus. Back row from left are students Vanessa Sanchez, Ginelle Arkoh, Richard Chum, Ryan Shepard and AnthonyRasca. Seated from left are: Executive Vice President Lou Anne Bynum; Vice President of Academic Affairs Terri Long; Vice President of Administrative ServicesAnn-Marie Gabel; and Vice President of Human Services Rose DelGaudio. (Photograph by the Business Journal’s Thomas McConville)(Please Continue To Page 5)


March

1_LBBJ_MARCh3_2015_PortAnniversary 2/28/15 2:55 PM

but Oakley realizes that real leadershiplives in the real world, and he has occasion-ally re-mastered details that were suppos-edly etched in stone. But the transformation of LBCC goes

beyond the blueprints of its physicalmakeover. The biggest changes are comingwith the reconfiguration of its culture, cur-riculum and purpose. Unlike the construc-tion sites, which will be cleaned up fiveyears from now, evolution of its state ofmind will be ongoing.Some people don’t want to think about

that. Oakley is almost never not thinkingabout it.“It’s my job to look down the road and

focus on the future,” he said. “That’s alwaysthe challenge of leadership, no matter whatindustry or sector you’re in.”Oakley believes LBCC is well suited to

meet the challenges that await.“The beauty of our community college

system is that it is designed to change withsociety and the economy,” he said. “It’s ourjob to change to meet the needs of the com-munity. We’ve been changing through thisrecession, but we need to pick up the pace.”One of the most popular strategies for

changing the way LBCC prepares stu-dents for a self-sufficient future are col-laborations among educational systems,government institutions and business,which are adapting their organizations tobetter meet the needs of students.The College Promise initiative offers

Long Beach students who prepare for col-lege a free first semester of tuition atLBCC and guaranteed admission to Cali-fornia State University, Long Beach.Career Pathways has a similar approach,

but takes its program a step further to em-ployment. The idea is to parlay cooperationamong institutions so that students can ex-ercise some options without losing others.According to Oakley, LBCC is coordi-

nating efforts among educational institu-tions in Long Beach and throughoutSouthern California to create career pathstoward sectors of job growth – health care,manufacturing and electrical technology.“We’re developing pathways toward a

job that a student can begin in high schooland continue on with in community col-lege, but still have a path to a four-year de-gree if that’s what they choose. If theychoose to go to work between or after oneof those certificates, they can always comeback and continue their studies.”The next incarnation of the model is to

anticipate new employment opportunitiesand train students to fill them.“That’s our focus right now, trying to pin-

point those areas of the economy that aregoing to see growth, then prepare pathwaysfor students to follow as well as preparepathways for displaced workers to follow,”Oakley said. “The ports of Long Beach andLos Angeles are an example. Over time,there is going to be a shift in the skillsneeded to work [at the ports] so we’re ex-ploring how to deal with those changes sothat we not only educate our students butgive them the tools they need to succeed.”Virgin Galactic’s opening of a plant in

Douglas Park to build its small satellitelauncher, LauncherOne, is the most publi-cized in a string of modern manufacturingcompanies to locate there. Other new tenants

that present new employment opportunitiesinclude Rubbercraft (elastomeric parts foraviation and other uses), Shimadzu (flightcontrol systems, air management systems andcockpit display systems), Mercedes Benz (ve-hicle preparation and performance center),United Pacific (classic automobile products)and Turbo Air (refrigeration equipment). “We’re doing our best to identify the

kinds of skills these companies will needtheir workers to have, then to train a work-force that has those skills,” Oakley said. “Inmany cases we won’t be training studentsfor specific jobs but for skills they willneed in advanced manufacturing.”The influx of these manufacturers is a

promising update to Long Beach’s employ-ment backstory, which had been dominatedby the slow death of Boeing’s C-17 Globe-master production.“Look, every community, every region

has its ups and downs,” Oakley said.“Those that survive and thrive are thosethat continue to invest in education. Ulti-mately, employers are looking for a greatworkforce and a friendly business environ-ment. We’re focused on providing theworkforce and on helping small businessesflourish in our region.”Long Beach Mayor Robert Garcia, who

has encouraged the city’s collaborationwith LBCC and other local educational in-stitutions, recently suggested that technol-ogy is changing the world so fast thatschools are challenged to prepare studentsfor jobs that don’t exist yet.“That is a challenge,” Oakley agreed.

“But there will always be work for peoplewho are multifaceted, who can think on

their feet, who have the ability to adjust andadapt to specific work environments.“Face it, everybody these days needs

some sort of technological literacy.Everybody needs a firm foundation incommunications, reading and writingskills and the ability to work in teams. Wewant to ensure that those things are partof our educational experience.”Furthermore, Oakley wants to make sure

that LBCC’s educational experience is theproper-sized part of a student’s life. Duringhis recent State of Long Beach City Col-lege speech, Oakley pointed out that com-pleting what has traditionally beenconsidered a two-year degree is takingmost LBCC students much, much longer –42 percent of them take six years, 27 per-cent do it in four years but only 5 percentzip through in two years.There are many reasons for that, said

Oakley, who began by citing the increasedattention paid to the progress rate becausea degree, certificate or transfer is more im-portant to getting a good job.“Students don’t want to take longer,”

Oakley said. “But our colleges are still de-signed to serve students who come to usafter graduating from high school, attendfull time and usually during the day. Thosearen’t our students, anymore.“Our students work, they raise families,

they come with different experiences anddifferent languages. So we’ve got to adjustthe way we deliver our education.”Because Oakley had brought up these

sobering statistics after exulting in a paradeof positives – 53 newly hired faculty mem-bers, two new buildings with state-of-the-

art classrooms, the highest number ofcourses in five years, smaller waiting lists,a progressive student placement system andcollaborative teamwork among local educa-tion systems and city government – somepeople reacted as though he had turned apat on the back into a kick in the pants.“The point of my speech was to get peo-

ple to focus on the fact that, although weconsider LBCC among the top communitycolleges in the nation, we still have a longway to go in terms of getting students tocomplete a certificate or transfer in a timelyway,” Oakley said. “Over the next couplemonths we’re going to present informationto the board of trustees that will highlighthow we’re going to tackle this problem.”That’s going to mean more change, and

that means it may not be easy.“We’re like any other large institution

that’s been around for a long time – wehave cultures and ways that we do things,and changing culture is a huge challenge,”Oakley said. “But the future is change. Wetry to hire the best and brightest people tohelp us. We participate in organizations thatare charged with looking at the future. Wepay attention to the data. We try to be as in-formed as possible.”Oakley paused.“You can look at the data all day long,”

he continued, “but at some point you haveto make a decision.”That’s the bottom line, Oakley seemed to

be saying – until he seemed to be sayingthat it isn’t, not always.“You have to have the confidence that,

if a decision doesn’t pan out, then you’regoing to adjust.” �

March 3-16, 2015 Long Beach Business Journal 5BUSINESS & EDUCATION

LBCC’s Eloy Oakley(Continued From Page 3)



Senior Writer

When Mike Grimshaw began workingwith California State University, DominguezHills (CSUDH) as a business advisoryboardmember about six years ago, he recog-nized a “strong entrepreneurial DNA”among the university students, faculty andstaff, as well as within the local community.As he continued to work with the school,eventually becoming a professor teachingcourses in business and related subjects, herealized there was a need for a university-based business resource center and incuba-tor. Last fall, the Entrepreneurial Institute @CSUDH was launched, with Grimshaw as itsexecutive director. Since then, it has assistedmore than a dozen businesses and start-ups.Grimshaw was no stranger to the concept

of business incubation – the process of fos-tering and supporting start-ups by providingtools and resources – before opening the En-trepreneurial Institute @ CSUDH. “I started20 different companies over a period of about30 years,” he told the Business Journal. Overthe years he has worked for tech companiesincluding IBM, Cisco, Nortel and Unisys insenior sales and management. In 2000, hemoved to Southern California, where he hasspent the past 15 years involved in groupangel investing – pooling funds and re-sources to back start-ups and entrepreneurs.In 2011, Grimshaw started two business

incubators through the San Pedro-basedMarymount California University – one lo-cated on campus, and one off campus inTorrance. The incubators grew out of acourse he was teaching, and his studentsran the programs with his assistance. Bothhave become successful, although the off-campus incubator in Torrance, now knownas the South Bay Entrepreneurial Center,has emerged as a standout example of a re-gional business incubator, servicing 18 re-gional cities as an all-volunteer nonprofit

organization. “We have probably createdseveral hundred jobs,” Grimshaw said.It was perhaps this success that led

CSUDH administration to ask Grimshawabout a year ago to assist in revitalizing theuniversity’s somewhat dormant entrepre-neurial program. “The dean asked me tosee if I could put some energy into it,”Grimshaw recalled.CSUDH’s Entrepreneurial Institute was

launched in the fall semester of 2014 inone of Grimshaw’s business courses. “Ibuilt a small incubator using one of myclasses as the mentors, and we ran it in ourclass two times a week,” Grimshaw said.He coached and trained his students in howto mentor businesses, and before long, 10local businesses sought their help. The freeincubator program ran throughout the se-mester. “The feedback was: ‘When are wedoing it again?’” he said.Grimshaw heeded the request, starting

another incubator through the institute in

one of his current spr ing semester courses.So far, “it has taken off like gangbusters,”he said. “I have got people coming fromthe community who have businesses, Ihave people coming from the universitystaff and from every college within theuniversity. It is very cool.”In addition to the classroom-based incu-

bator program, the institute holds freeevents, some in conjunction with other in-stitutions. “Right now my focus is on theevents coming up over the next couple ofmonths that are community based,”Grimshaw said. The first is an open work-shop on March 6, held in cooperation withthe City of Carson and Small Business De-velopment Center. “We are going to be cov-ering the most critical element in yourbusiness, and that is your customer,”Grimshaw said. A couple of weeks later, onMarch 20, the institute is hosting a work-shop on leadership and management,which “is one of the areas people sufferwith in business,” he said. A workshop onbusiness finances is scheduled for April 3.The institute also runs a competition

called Toro Tank, modeled on the hit real-ity television series Shark Tank in whichentrepreneurs pitch successful investorsabout their business models, with the win-ner getting financial backing. Last semes-ter, Toro Tank drew seven teams ofcompetitors who pitched a panel of judgesmade up of business professionals, entre-preneurs, investors and even a politician.An audience of several hundred peoplealso participated in voting online.The winning prize included $500 and

$3,500 worth of business resources in theform of a year-long consulting and men-torship relationship with the institute. Ed-uardo Mora, chief operating officer ofSignal Hill-based South Bay Cabinets anda CSUDH student, took the prize with histeam of two fellow classmates. At thetime, his company, owned by his father,

was running on outdated technology withlittle marketing resources apart fromword-of-mouth referrals. “We do kitchencabinets, entertainment centers, dressers,closets, desks – you name it. It is custombased for anybody who wants somethingto their liking,” he said. He joined thecompetition in the hopes of winning andlearning how to address the business’smodernization and marketing issues.“I had to pitch a business plan to real in-

vestors and entrepreneurs. Out of sevencompetitors, we were the ones who werechosen for executing the business plan ac-curately, working as a team and prettymuch representing ourselves in the bestprofessional way,” Mora said. “I learned somuch. To begin with, presentation is key. Ilearned that when pitching a business planto entrepreneurs and investors, you have toknow what you’re talking about for sure –you have to know it like the back of yourhand,” he explained. “Secondly, you haveto have that passion for the business thatyou’re pitching ideas about. You need towant it. You need to have that drive.”Connecting with the institute following

the competition has “been an eye opener,”Mora, who is now a graduate of CSUDH,said. The institute assigned him a mentor,whom he consults with once or twice amonth. “As soon as I became involved,they started offering me so many options.They opened so many doors,” he re-flected. “Now they are not only pointingme in the right direction, but they areguiding me along and making sure I ammaking the correct decisions,” he said, ex-plaining that eventually he is going totake over South Bay Cabinets from his fa-ther. One of the projects he is working onis developing a website for the company.As the Entrepreneurial Institute grows,

Grimshaw hopes it will continue to helpbusinesses become stronger and inspire evenmore students to become entrepreneurs. �

6 Long Beach Business Journal March 3-16, 2015BUSINESS & EDUCATION

Entrepreneurial Institute At Cal State Dominguez Hills Provides Free Resources To Start-Ups, Rallies Students To Entrepreneurship

Mike Grimshaw is the executive director of the En-trepreneurial Institute @ CSUDH. The institute pro-vides mentoring, free classes and other resourcesto local entrepreneurs. (Photograph provided byCalifornia State University, Dominguez Hills)

Through the Toro Tank compe-tition held by California StateUniversity, Dominguez Hill’sEntrepreneurial Institute, SouthBay Kitchen Cabinets ChiefOperating Officer EduardoMora not only earned cash forhis family business, but also ayear’s worth of mentorshipthrough the institute. Picturedat South Bay Kitchen Cabinetsin Signal Hill, from left, are:Robert Gomez, Mora’s partnerin the Toro Tank competition;Jose Mora, Eduardo’s fatherand owner of South BayKitchen Cabinets; and Ed-uardo Mora. (Photograph bythe Business Journal’s ThomasMcConville)


2015

s hip


March

Serving California Amid Funding Challenges

When asked whether the $119.5 millionallotted for the CSU system in Gov. JerryBrown’s proposed budget would be enoughto meet CSU’s needs, White was quick tocorrect the phrasing of the question. “It’s ac-tually not CSU’s needs that drive us here. Itis really about California’s needs,” he said.His emphasis on the state’s needs was evi-dent in a word cloud illustration – a graphicdepicting a cluster of words he most com-monly uses in public speaking engagements– hanging above his desk, in which his twomost-used phrases were revealed as “stu-dents” and “State of California.”“When we look at the future of Califor-

nia, we see this enormous, looming deficitin [the number of] residents of Californiawho have a college degree,” White said.“There are different think tanks that havefocused on this, and the number that getsused all the time is [California will be]about one million degrees short 10 yearsfrom now, in 2025.”He continued, “California has a water

drought, there is no doubt. But it also has adegree drought. And that is what’s focusingus on how we build our budget requests andhow we go about our business.” White’s re-sponse as to whether or not Brown’s pro-posed state contribution to CSU’s budgetwould be sufficient was, in short, no. For the past few years, California State

University has grown the number of admis-sions by 5 percent annually, White said.Without the additional $97 million the uni-versity is requesting on top of what’s beingproposed by Brown, CSU would have to cutgrowth down to 1 percent per year. “If weare unsuccessful there, we are going to turnaway 20,000 to 30,000 fully qualified stu-dents. And that is not in California’s short-term, medium-term or long-term interests.That’s the position I’m taking,” he said.There are currently just under 450,000

students enrolled at California State Uni-versity’s 23 schools, 96 percent of whomare Californians. Every incoming CSUclass is made up of almost-even numbersof high school graduates and city collegetransfers. Accepted students are among thetop one-third of California’s best-perform-ing high school and city college students,and certain requirements must also be metin terms of coursework and standardizedtests. Due to a 1996 general election ballotmeasure denying public institutions the

ability to discriminate based on race, gen-der or ethnicity, affirmative action is not afactor in CSU admissions, White noted.Impacted universities, such as CSU Long

Beach, have stricter entry requirements. “Itis in our DNA to admit everyone who isqualified. But if there isn’t physical roombecause of budgetary issues, we have tomake the tough decision to say, ‘Okay, weare going to admit this many people and takecare of them as best we can,’” White said.“If we admit everyone who is interested andqualified, it is going to dilute our ability todeliver education . . . That isn’t in anybody’sbest interest,” he said. The thought of turningaway qualified students is something Whitepersonally agonizes over. “The number of applications for CSU

has gone up for the sixth year in a row, andI think it’s about 30,000 more applicationsfor this upcoming fall than we had lastfall,” White said. In order to accommodategrowing demand and address the degreedrought, “we are trying to make the casethat we have to build capacity, which meansmore faculty,” he noted. More academicadvisors are also needed in order to buildcapacity, as is more technology for use inthe learning environment, he said. A glaring budgetary issue is nearly $2

billion – “that’s billion with a ‘b’,” Whiteemphasized – in deferred maintenanceacross CSU’s 23-campus system. “Thatamount is growing at about $100 millionper year,” he said. The necessary mainte-nance is akin to “the stuff that any oldhome needs maintenance on,” rather thanbeautification, he noted.In order to build capacity and meet cur-

rent needs, more funding is necessary. Butthe state has been steadily decreasing itscontribution to the CSU’s budget over thepast few decades. Currently, about half ofthe CSU’s funds come from the state gov-ernment, and the rest from students, White

said. “Now, if you go back in time to thelast 15 or 20 years and look at what per-centage of the operations [funding] of theCalifornia State University came from theState of California, it used to be up in the70s and 80s. When I was a student it waslike 90 something [percent]. So, over time,California has, as a political choice, de-cided to spend less and less of the overallrevenues necessary to run the university.”The public’s perception is often that uni-

versities are increasing costs and puttingmore of the burden on students with risingtuition, White noted. “When we read in thenewspapers that the cost of education hasgone up, we really have to stop and parsethat because it is the cost to the student andtheir families, but not the overall cost of theenterprise. In fact for us, the cost per de-gree . . . has gone down,” he said. The CSUspends about $8,000 less per degree

awarded than it did 10 years ago,” he noted.The cost of a CSU education has in-

creased for students due to the decreasedfunding received from the state. “We have lowered the overall dollars-per-

degree ratio, but the cost to students andtheir families during the last recession re-ally skyrocketed – it doubled here [in theCSU system] and doubled in the Universityof California,” White said. Since the reces-sion ended, the CSU system has managednot to raise student tuition, he emphasized.But, if the state decreases its contributionto the university system, tuition wouldlikely have to be raised in lieu of reducingquality or admitting fewer students, he said. “That’s why we continue to make the ar-

gument that we’re not trying to feather ournests and buy more plants that die,” he said,gesturing to a potted plant in his office thatwas actively losing leaves during the courseof the interview. “Rather, we’re trying toserve California’s future.”Statistics from California State Univer-

sity illustrate that the health of California’seconomy is in part tied to the vitality of theCSU system. Ten percent of all employeesin California hold a degree from a CSUcampus, as does 5 percent of the U.S. work-force. The CSU supports about 150,000jobs statewide and its activities generateabout $17 billion in economy activity. “Weare very much a big wheelhouse for Cali-fornia’s economy,” White said.Although the state government has

steadily decreased the amount of funding itprovides to the CSU over the years, evi-dence suggests the university system is asound investment – the CSU estimates that,for every $1 spent on the CSU by the state,there is a $5.43 return on investment.Having more college-educated Californi-

ans translates both to better employmentrates and a cost savings for the state, Whiteargued. “There is very clear evidence thatpeople with college degrees are, at any givenrate of unemployment, about half the aver-age number,” he said. “There is also verystrong evidence that they use fewer socialservices . . . and they participate much lessin the criminal justice system.” College-de-greed individuals also typically earn morethan those without degrees, meaning theycontribute more to the tax base, he added.

Educating For The FutureOne of the university’s greatest areas of

impact is in education – about 60 to 65 per-cent of California’s public and private schoolteachers have CSU degrees, White said. Forthis reason, the university system recently

8 Long Beach Business Journal March 3-16, 2015BUSINESS & EDUCATION

Chancellor White(Continued From Page 1)

Timothy P. White, Chancellor of the California State University (CSU) system, visits a class at CSU LongBeach. White told the Business Journal that students are his top priority. (Photograph provided by CSU)

“We interact with business leaders as to where they see

trends of need in their businesses, and advice theymight have for us on how we can do a better job in delivering graduates that meet their needs.”


Senior Writer

Timothy P. White, chancellor of California State Univer-sity (CSU), oversees 23 campuses, about 45,000 facultyand staff and close to 450,000 students. As a former CSUstudent himself – he attended both CSU Fresno and CSUEast Bay – White takes pride in his devotion to those stu-dents and to the university system.White’s story is like that of many Californians. Argen-

tinian by birth, he moved to California with his workingclass family when he was nine years old. “The goal in myfamily was just to get me through high school – and thatwas a work in progress, let me just put it that way,” he saidin an interview at his office in Downtown Long Beach.“The only reason I actually went to college was becausefriends were going,” he recalled.

With little knowledge of how the public higher educationsystem in California functioned, White’s father directedhim to enroll in the cheapest option among Diablo ValleyCommunity College, CSU Fresno and University of Cali-fornia (UC), Berkeley, all of which he had been acceptedto. “Back in those days, in rough numbers, community col-lege was five bucks a semester, Fresno was $50 and Berke-ley was $500. And my dad goes, ‘the $5 one.’ We had nonotion that there were distinctions between them,” he said. From Diablo Valley, White went on to study in the CSU

system and then to earn his Ph.D. from UC Berkeley. “Everytime I went [to a new school], they’d open my eyes that therewas this whole other world out there that I had no knowledgeabout,” he reflected. “The facts are different, but the journeyis the same for hundreds of thousands of CSU students. Andthat’s why it’s such an honor for me to be in this role, to giveback to this system that lifted and launched me.”

More than one-third of CSU’s student body are first-gen-eration college students, and more than half of CSU stu-dents pay no tuition at all due to a combination of federaland state financial aid, CSU grants and private scholar-ships. “One of our biggest communication opportunities isto make sure families know, no matter where they are onthe socioeconomic spectrum, that if the kid has the brainsand is willing to do the work, CSU is the place that willtake them,” White said.White took the reins of the state university system as its

seventh chancellor in 2012, leaving his previous post aschancellor of the University of California, Riverside, a po-sition he had held for four years. Prior to that, he served aspresident of the University of Idaho from 2004 to 2008.From 1996 to 2004 he held various positions at OregonState University, including dean, provost, executive vicepresident and interim president. �

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CSU Chancellor Timothy P. White: Leading The University System That Launched Him


launched a new initiative called Preparing aNew Generation of Educators for California,which is aimed at readying educators toteach Common Core State Standards fromkindergarten through 12th grade (K-12). The initiative, which is funded with a $3

million grant from the S.D. Bechtel, Jr.Foundation, creates programs at eightCSU schools including CSU Long Beach,Channel Islands, Fullerton, Fresno, North-ridge and Stanislaus, as well as Cal PolySan Luis Obispo and the elementaryschool based credential program, Cal-StateTEACHER. Each of these is devel-oping their own pilot programs foreducating K-12 teachers in Common Coreinstruction. Program outcome data will beshared within the CSU system.Another new eight-campus initiative,

funded by a $4.6 million grant from theLeona M. and Harry B. Helmsley Charita-ble Trust, creates programs to foster and re-tain CSU students studying science,technology, engineering and math (STEM)fields. “Those are the careers the knowl-edge-based economy will be built on,”White said, emphasizing that these fieldsare likely to account for the bulk of futureU.S. economic growth.Campuses participating in the STEM

initiative include CSU Channel Islands,Dominguez Hills, East Bay, Fresno,Fullerton, Humboldt, Los Angeles andCal Poly Pomona. The initiative supportssummer bridge programs for new CSUstudents, as well as seminars and re-designed classes geared toward generat-ing interest in STEM fields. One of the key ways CSU leadership iden-

tifies areas of focus for new initiatives andprograms is with the assistance of businessadvisory councils. “Every campus has innu-merable advisory councils,” White said. “Ihave several system-wide advisory groups inthe big sectors of California’s economy: agri-culture, hospitality and tourism, [the] enter-tainment industry . . . health care, energy[and] transportation,” he added.“We interact with business leaders as to

where they see trends of need in their busi-nesses, and advice they might have for uson how we can do a better job in deliveringgraduates that meet their needs,” White ex-plained. He noted that, while CSU seeks theadvice of business leaders, the goal is not tobecome a training ground for specific jobs.“Training is important, but education is be-yond training,” he said, listing off skills de-veloped in higher education that arerelevant to the workplace, including groupwork, communication and familiarity withtechnology. “I think the use of iPads andtablets in the learning experience is verymuch the way of the future,” he noted.As the California State University system

moves forward while contending with fund-ing challenges and rising demand, White re-mains focused on student success andmeeting the needs of Californians. “My per-sonal goal is, in a one-story elevator speech:more students to degree – quality degree –sooner. The way I am getting there is bytelling our story in business sectors and toelected officials, and so forth,” he said.“I am pathologically focused on student

success,” White said, describing his shortlist of priorities as: “Students first, studentslast, students everything.” �

March 3-16, 2015 Long Beach Business Journal 9 2015

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Senior Writer

Beginning with the baby boomer gener-ation, the senior and elderly population ofthe United States is expected to grow ex-ponentially over the next few decades. AJanuary report from The Henry J. KaiserFamily Foundation, a nonprofit providingpolicy analysis and journalism programs onU.S. health issues, stated that the popula-tion of people aged 65 and older is ex-pected to double by 2050. In the same timeperiod, the number of Americans aged 80and older is expected to nearly triple, andthe number of those aged 90 and older toquadruple.The report, entitled “The Rising Cost Of

Living Longer,” notes that the U.S. govern-ment expects the aging population to ac-count for an increasingly bigger chunk ofhealth care spending as it grows, due to theprevalence of chronic diseases in peopleaged 60 and older. “The statistics say thatthose people probably have at least threechronic diseases and take about five med-ications,” Dr. Susan Melvin, chief medicalofficer of Long Beach Memorial MedicalCenter, told the Business Journal. In interviews with the Business Journal,

several local health care professionals iden-tified heart disease, hypertension, diabetes,arthritis and dementia as the most com-monly experienced chronic diseases amongthe older population. According to Melvin,chronic health conditions are often sparkedor exacerbated by being overweight. “Wehave seen an increase in obesity over thelast year. That increases the risk of diabetes,heart disease, stroke, arthritis,” she said.Weight is not the only risk factor in

chronic disease, however. Other lifestylehabits are also at play, as are genetics.Arthritis, for example, is also quite com-mon in people who are fit. “It is also verycommon in people who have been active,with the overuse and wear and tear on thejoints,” Melvin said. Dr. Chester Choi, ac-ademic chief of medicine at DignityHealth St. Mary Medical Center, notedthat, to lessen the impacts of arthritis, itis important not to avoid activity. “Physi-cal therapy may be of significant help tothem,” he said.Diet and exercise are perhaps the sim-

plest ways to prevent and lessen the im-pacts of these diseases. “The best thingpeople can do is remain active with exer-cise,” Melvin said. She recommendedthirty minutes of exercise five times perweek. “Not only does that help the brain inregards to dementia, but we also know it re-ally helps blood pressure, heart disease,stroke prevention and . . . arthritis.” Main-taining a healthy diet and getting adequatesleep also helps in preventing chronic dis-eases, she said.While these practices help common

chronic diseases, they can only do so muchto put off dementia and Alzheimer’s, con-ditions which have no cure and limitedtreatment options. Researchers have yet todiscover what even causes the diseases. Aspeople age, the incidences of dementia andAlzheimer’s increase, according to Melvin.“For example, in people who are older than65, [the likelihood of having dementia] isabout 10 percent. For people between the

ages of 70 to 79, [it is] about 15 percent. Inages 80 to 89 it jumps up to 34 percent, andover the age of 90 about 47 percent of thepopulation will have dementia.” With the aging population growing rap-

idly, dementia and Alzheimer’s are ex-pected to become more prevalent. “Themost recent statistics say there are about 5.5million [people] with dementia this yearand by the end of 2050 they expect another13 million people,” Melvin said. “If youlook at the largest growing population inthis country, it is people over the age of 90.I really do feel that Alzheimer’s is probablythe greatest challenge that we are going toface in geriatric care.”More funding is needed to identify what

causes the ailments and to learn how totreat them, Terri Furlow, administrator forthe Health Care Center at Leisure World,which is affiliated with Los Alamitos Med-ical Center, told the Business Journal. Fur-low is the former executive director of theJohn Douglas French Center ForAlzheimer’s Disease, based in Los Alami-tos. “Alzheimer’s is really going to be anissue if we don’t garner enough funds tofigure out what causes it . . . It’s hard tocome up with a cure when you don’t knowwhat the cause is,” Furlow said. “Dementia

is one of those things that is going to be-come a huge financial and social burden ifwe don’t so something about it,” she noted.

Vision IssuesApart from chronic diseases, some of the

most common health problems among sen-iors and the elderly affect eyesight, accord-ing to Dr. Carlos Martinez of LongBeach-based Eye Physicians of LongBeach. Martinez is also the president of theLos Angeles County Medical Association’sLong Beach District. “The leading cause of blindness in that

[older] population is macular degeneration,followed by glaucoma, diabetic retinopathy,cataracts and dry eyes. Those are probablythe five most common diseases in the eld-erly,” Martinez said. Of these, macular de-generation is the most threatening to sightin that once the condition appears, it isn’treversible – it can only be slowed. “Macular degeneration is a multi-factor-

ial disease, which means there are geneticinfluences to it. There are environmentalinfluences like diet and smoking. It causesa progressive loss of central vision,” Mar-tinez explained. “Up until recently, therewere really no options in the treatment ofmacular degeneration. Now we know thatif you use vitamins and you have a diet rich

in antioxidants, you can slow down the rateof visual loss by about 19 percent,” he said.The condition is the leading cause of per-manent vision loss in the elderly, he noted.A new invention holds some promise for

those afflicted with macular degeneration.“It is a new procedure called an im-plantable miniature telescope,” which isplaced inside of the eye, Martinez said.“We can take people with basically non-functional vision and reestablish function-ality where they can take care ofthemselves, they can see the people theylove, they can read, all that kind of stuff. It’spretty amazing.”Glaucoma and diabetic retinopathy are

also ranked among some of the more seri-ous eye conditions common in the elderly.“Glaucoma is a disease that affects theoptic nerve. The optic nerve is the part ofthe eye that sends all the images from theeye to the brain,” Martinez said. Glaucomaoccurs when pressure is put on the opticnerve – often due to high blood pressure –which causes its function to falter.“Diabetic retinopathy is a consequence

of systemic diabetes. Basically what hap-pens [with] diabetes is a little bit likerunning dirty water through pipes,” Mar-tinez said. “It does damage to the en-dothelium, the lining of the bloodvessels, and then those blood vessels startto either leak or get clogged and theydon’t deliver blood to some areas of theeye. So the retina suffers and starts todecay as a consequence of that.”Cataracts are the most common eye ail-

ment among older people. In fact, the Na-tional Eye Institute estimates that morethan half of Americans either have acataract or have undergone cataract surgeryby age 80. Cataracts cause the eye’s lens tocloud, causing blurry and obscured vision.The condition is treatable with a 10-minutelaser procedure, Martinez said.Martinez recommended that people

aged 55 and older visit an eye care pro-fessional once a year.

Health Care Industry ImpactsAs people age and need to seek health

care services more frequently, a key aspectin managing health is finding a primarycare physician, Dr. Romilla Batra, medicaldirector of Long Beach-based Senior CareAction Network Health Plan, told the Busi-ness Journal. But, as the aging populationin the U.S. grows, finding a primary carephysician may not be so easy. A 2013 re-port by the U.S. Department of Health andHuman Services estimated a shortage of20,400 primary care physicians by 2020.Batra suggested that team-based care –

in which a variety of health care profes-sionals, such as specialists, in-home careworkers and social workers – may be oneway to ensure elderly patients are prop-erly taken care of, especially consideringtheir likelihood to have multiple chronicillnesses. Melvin noted that allowingnurse practitioners to perform more pri-mary care duties is also a solution to theprimary care shortage.Machelle Thompson, president and geri-

atric care manager of Keen Home Care inLong Beach, has observed that, evenamong available primary care physicians,some aren’t as well versed in geriatric careas is needed. Thompson’s company cares

10 Long Beach Business Journal March 3-16, 2015SPECIAL REPORT – HEALTH CARE

Addressing The Health Care Needs Of An Increasingly Older Population

Rita Carroll, a Long Beach resident, prepares food with the assistance of her home care worker,Machelle Thompson, who is president and geriatric care manager for Keen Home Care. Thompsonsaid most elderly people eventually need some form of home care. (Photograph by the Business Jour-nal’s Thomas McConville)

Dr. Carlos Martinez of Eye Physicians of Long Beach performs an examination on patient FrankBraunlich, Jr. Various conditions that impact eyesight are common among the older population, sobeginning at age 55 it is important to visit an eye care professional once a year, Martinez said. Heis president of the Los Angeles County Medical Association’s Long Beach District. (Photographs bythe Business Journal’s Thomas McConville)

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2015

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March

for seniors with varying degrees of needswithin their own homes. “One of thebiggest problems I see occurring with someof my senior clients is that they are alignedwith a physician who is not knowledgeableabout their particular issues,” she said.“They either don’t get the care that theyneed, or there is ageism going on, like‘well, because you are elderly we expectthese things to happen.’ So aligning with agood physician is really important.”As the elderly population expands and

more physicians take them on as patients,California has a regulation in place to en-sure doctors are better informed about car-ing for them. Eliana Campbell, continuingmedical education coordinator at St. Mary

Medical Center, said a state law requiresphysicians whose patient base consists ofat least 25 percent people over the age of65, to complete at least 20 percent of theirmandatory continued medical education(CME) in geriatric medicine. St. Mary’sCME program offers about four freeclasses in geriatric medicine per year, shesaid.Another issue the health care industry is

facing in accommodating growing demandfrom geriatric patients is physical space, ac-cording to Terri Newton, chief nursing of-ficer at Lakewood Regional MedicalCenter. “Hospitals are inundated with pa-tients that they don’t have room for,” shesaid. To address this issue, some health careorganizations, such as MemorialCareHealth System, are expanding their pres-ence into neighborhood communities with

ambulatory care centers. MemorialCareplans to add six ambulatory care centers inLos Angeles and Orange counties this year,CEO Barry Arbuckle told the BusinessJournal in a recent interview.Thompson expects the demand for home

care to increase as the baby boomer popu-lations begins entering old age. About8,000 people are turning 65 years old everyday in the U.S., she noted. “I have not seenan extraordinary increase recently; how-ever, I anticipate that there is going to be asignificant increase in coming years,” shesaid. “I’d say about 90 to 95 percent of peo-ple will need some type of home care.”While home care is often associated with

end-of-life care, there are other options forpeople who simply need some assistancegetting through their days, Thompson said.“I think anyone who is 60 or over should

be evaluating and educating themselvesabout what is available for care,” she said.Limited health plan coverage for long-

term home care coupled with regulatorychanges have hurt home care’s affordabil-ity, she noted. Increases in the minimumwage and a change in legislation requiringdomestic workers to be paid for time spentasleep while on the job (as they often work12 to 24 hour shifts) have led to highercosts for home care companies, which havebeen passed on to their clients.“Everybody is concerned about the

aging population. Do we have enough re-sources?” Batra said. “I think it’s not only[addressing] resources, but also the rightresources. Do we have enough teams ofpeople, enough community resources andenough people who can help navigate thehealth care system?” she asked. “There hasto be a good team-based approach and col-laboration so we can provide that care.” �


The evidence was everywhere in thefoundation’s recent annual review, con-ducted by Charity Navigator, probably thecountry’s most respected assessor of not-for-profit groups. The result was a four-starrating, the highest possible, although thevery same ranking the ANRF has receivedfor the last seven years in a row. It’s a con-sistency of excellence that’s been accom-plished by only two percent of all charitableoutfits in the United States.The star-spangled report cards are good

for fundraising, assuring donors thatANRF adheres to what Charity Navigatorcalls “good governance and other bestpractices that minimize the chance of un-ethical activities . . .” Especially comfort-ing are the perfect 100 score ANRFreceived for transparency and accounta-bility and its program expense score of91.8 – the percentage of each dollar spenton the reason ANRF exists. That’s arthritis research, of course, and it

has been refined and improved, too, al-though the ANRF has clung to at least onecentral orientation.“Basically, since 1970 we have been giv-

ing arthritis research grants to young sci-entists,” said Helene Belisle, the executivedirector of the Arthritis National ResearchFoundation since 1996.Yes, Belisle said “young scientists.” But

her definition doesn’t only refer to thedate of their birth; it’s even more abouttheir position within the hierarchy of re-search science.“I said ‘young,’ meaning M.D. or Ph.D.

scientists who have a great idea, are work-ing in a great laboratory but don’t have thegap funding – the venture capital, if youwill – to get to the next level, to take theiridea and pursue it,” Belisle explained.Derek Belisle, her son, who’s been

AMRF’s marketing director since 2009, putit in another context.“These young scientists, they’re like

young businessmen,” he said. “If they don’tget that seed funding, they can’t get theirlab started, they can’t get out from under-neath the scientists they’re working for,they can’t work on their own projects andtheir own ideas.” Young scientists with good enough ideas

and projects can receive one-year grants

The Older Population(Continued From Page 10)

Arthritis Foundation(Continued From Page 1)



from the Arthritis National Research Foun-dation for as much as $100,000. “With the money the foundation provides

we’re able to give young scientists that free-dom – essentially to go out and push theirideas in the field,” Derek Belisle continued.“Otherwise, they’d always be stuck workingon someone else’s project.”“That’s the niche we’ve always had,” He-

lene Belisle said. “The young scientist.”Not quite always. When the Arthritis Na-

tional Research Foundation was created in1952, it was just a cluster of Long Beachdoctors and chiropractors who incorporatedin order to fund research into arthritis fortheir own benefit.A reorganization in 1970 gave the ANRF

more or less its present form as a publicfoundation with a board of directors, which,by the way, included some of Long Beach’smost prominent movers and shakers of theday: then-State Sen. George Deukmejian,automobile dealer Jim Willingham and thelate attorney Fred Riedman.The group’s mission tightened its focus,

too – maybe a little too tightly – not onlyzeroing in on young scientists, but ignoringthe “national” in its name and awarding re-search grants only to young scientists basedin California.ANRF grants no longer take geography

into account, but youth is still being served,although Helene Belisle insisted it is an ori-entation that best serves the cause of arthri-tis research.“Young scientists see things with fresh

eyes,” she said, “and may be more likely tomake a significant discovery.”But a reduction in the total pool of re-

search funding has put younger scientistsin competition with their established elders,and the results were quantified just lastmonth by a story in the Wall Street Journaltitled, “The Disappearing Young Scien-tists.” The newspaper cited a 2013 Brook-ings Institution study that revealed thatscientists under age 36 received only 3 per-cent of grants awarded in 2010, a startlingdecline from 1983, when 18 percent ofgrant recipients were under 36. The original and enduring example of

the ANRF model is Dr. Gale “Morrie”Granger, who recently retired as professorof immunology at UC Irvine after 40 yearsof significant research – most of which istraceable to the ANRF grant he received atthe outset of his career.“I was a young faculty member . . . and

my research findings did not agree with thecurrent thinking,” Granger said. “AfterANRF directors visited my lab and re-viewed the results, they decided to supportour then-controversial studies.”With that support, Granger formed a

team that soon discovered tissue-destroyingmolecules – now known as TNFs, or tumornecrosis factors – that were sometimes re-leased by white blood cells. “The TNF molecule is very much in-

volved in the inflammatory process ofrheumatoid arthritis, lupus, all the autoim-mune forms of arthritis, and other autoim-mune diseases like multiple sclerosis,”Helen Belisle said.The discovery of the molecule ignited

the development of drugs that could blockit, drugs now known as anti-TNFs or bio-logics, such as Enbrel®, Humira® andRemicade®. Without Granger’s ANRF-supported research, none of these therapieswould exist.

Granger has remained centrally involvedin the Arthritis National Research Founda-tion, helping to develop its Scientific Ad-visory Board, which reviews the grantapplications of today’s young scientists.“They are where I was 40 years ago,”

Granger said. “They are the ones with thebest chance of making the next break-through discovery.”Belisle’s arrival at ANRF was not as im-

mediately dramatic. She left a position atthe Boys & Girls Club, moved into ANRFheadquarters – then, as now, a single roomthat its three full-time staffers share with anattorney on the eighth floor of the MolinaCenter (formerly ARCO towers) in Down-town Long Beach – and stayed. But a lookat the progress of the organization overthose19 years is impressive. “When I started in 1996 we were giving

one or two grants a year of between$50,000 and $75,000 each,” Belisle re-counted. “Last year we gave 12 grants ofup to $100,000 each for a total of almost$1.2 million.”Over the past 10 years, ANRF has issued

grants of nearly $9 million and in the pastfour years it has dispersed approximately$1 million a year.“As we have grown, the organization has

consciously tried to grow our endowmentand we have been the beneficiary of severallarge bequests,” Belisle said. “The boardhas been able to direct more funds to re-search, increasing our impact.”For example, ANRF-funded scientists at

UCLA are working with stem cells, look-ing at using stem cells from fat tissues toregrow cartilage.“It’s going so well that they’ve already

put a time frame on it,” Belisle reported.“In five years the need for joint replace-ment surgery will be obsolete.”ANRF provided this recap of ongoing re-

search by some of the other young scien-tists they are funding:• At Yale, a researcher identified two or-

ganisms in the human digestive tract that

may trigger the inappropriate immune re-sponse at the root of autoimmune diseaseslike rheumatoid arthritis and lupus.• At Tufts University Medical School, a

scientist developed a harmless fluorescentprobe that may make it easier to diagnoseand track osteoarthritis. The fluorescentmolecule detects activity that leads to car-tilage loss in joints.• At the Mayo Clinic, a scientist developed

a test that will help doctors provide rheuma-toid arthritis patients with treatments that aremore individual and precise, thus avoidingwasting the time and risking the side effectsof a medication trial-and-error approach.The test measures markers in the blood thatrule out a certain medication, determiningin advance that it will not be effective.• At St. Jude’s Children’s Research Hos-

pital, an ANRF grant recipient discoveredthat a protein already widely known forsuppressing the formation of tumors alsohelps prevent autoimmune diseases bykeeping the immune system in check.Along the way, a grant from ANRF has

become a symbol of achievement thatother, much larger funding agencies takeinto account when a former ANRF granteeapplies for much bigger grants. All of this chronicles Belisle’s impact on

the Arthritis National Research Foundation,but she said her happiness derives from theimpact they have on the research of youngscientists – and in turn the impact of thatresearch on people with arthritis.“My heart is here because my little

cousin, who is eight years younger than Iam, lost her childhood when she was struckdown with juvenile arthritis at the age ofseven,” Belisle said. “I watched a littlechild who had climbed trees like a monkeybe bedridden. Most people don’t know chil-dren can get arthritis.”Turns out that’s only the beginning of

what most people don’t know aboutarthritis, which is an umbrella term cov-ering approximately 100 joint disorderswith a diverse range of symptoms and

consequences. Of course, “most people”is everybody, including the most modernof medical experts. That’s why scientificresearch continues for treatments thatsave lives, reduce symptoms and ulti-mately bring cures. �

March 3-16, 2015 Long Beach Business Journal 13 2015 SPECIAL REPORT – HEALTH CARE

Arthritis National Research Foundation Executive Director Helene Belisle and Marketing Director Derek Belisle stand by Dr. Gale “Morrie” Granger, theoriginal “young scientist” who parlayed a research grant from the foundation into discoveries that revolutionized the treatment of arthritis and other autoimmuneconditions. (Photograph by the Business Journal’s Thomas McConville)


March

but also because that denial made her lastdays, as Freeman put it, horrendous. Almost overnight, Elizabeth became vi-

olent and not herself, leading Freeman nochoice but to bring her back to the hospi-tal. “She broke out of there a couple oftimes and ran barefoot down the sidewalkin her pajamas, and the police came. Itwas just the most undignified, horrible sit-uation,” she recalled.Freeman might not have to wait long to

see right-to-die legislation passed in herhome state. In January, state Senators LoisWolk and Bill Monning introduced a billdubbed the End of Life Option Act to theCalifornia Senate to address situations likeElizabeth’s. The bill closely mirrors that ofOregon’s legislation, with some additionalsafeguards against abuse, according to As-semblymember Susan Talamantes Eggman,a coauthor of the legislation. If passed, the End of Life Option Act

would allow terminally ill adult Californi-ans with only six months left to live to pro-cure end-of-life medication from anattending physician. In order to obtain themedication, the patient must submit twooral requests at a minimum of 15 daysapart, in addition to a witnessed written re-quest to his or her attending physician.These guidelines go beyond Oregon’s law,which requires only a written request. Toobtain the medication, a patient would alsohave to be deemed competent, meaningable to make informed decisions, by the at-tending physician. Only the patient wouldbe allowed to administer the medication.There are currently five states where

terminally ill patients are legally able toobtain end-of-life medication, includingOregon, Washington and Vermont, whichpassed legislation to achieve that end. In

New Mexico, a judge’s ruling created le-gality, and in Montana, a court case rulingallows doctors to prescribe lethal medica-tion to terminally ill patients. The drugstypically administered are lethal doses ofthe sleeping drugs secobarbital or pento-barbital, which cause the patient to fallasleep and pass away.As a former hospice worker, mental health

care provider and medical social worker, As-semblywoman Eggman is familiar with thewishes and needs of terminally ill patients. “In my time sitting with a lot of patients

and their families as they died, many peo-ple had expressed a curiosity about whythere weren’t more options for people atend of life,” she told the Business Journal.“And in my own personal life, I have caredpersonally at the bedside for five familymembers as they have died,” she noted. “I am a firm believer in self-determina-

tion and that people should have as manyoptions as we have available to us in thefinal days of their lives,” Eggman said.“These are people who, given other op-tions, would live. They have a terminal ill-ness. They are going to die. So, if that lastweek the pain is too much or that last weekthey don’t want to wear diapers, they aredeciding when and where they’ll go.”There have been attempts to pass right-

to-die legislation in California in the past.In 1992, a proposition very similar to thebill currently proposed failed when put be-fore state voters. Attempts to pass laws in1997 and 2006 also proved unsuccessful.

The DebateAlthough Freeman pointed out that

much opposition originates from religiousinstitutions, there are many secular andmedical organizations that argue againstlegislation like the End of Life Option Act,

which allows what they refer to as physi-cian-assisted suicide. The American Med-ical Association (AMA), for example,opposes the practice, as do the AmericanCollege of Physicians/American Society ofInternal Medicine, the American Collegeof Pediatricians, the American Nursing As-sociation, and many others. The AMA’sethics guide states: “Physician-assistedsuicide is fundamentally incompatible withthe physician’s role as healer, would be dif-ficult or impossible to control, and wouldpose serious societal risks.”

Dr. Aaron Kheriaty, chairman of themedical ethics committee of the Universityof California, Irvine (UCI) Medical Center,told the Business Journal, “From the pointof view of medical ethics, this is a reallyimportant issue, because opening the doorup to physician-assisted suicide in a verycentral and direct way undermines the basicprinciples of medical ethics that haveguided the profession since Hippocratictimes,” Kheriaty is also the director of res-idency training and medical education inthe school of psychiatry and human behav-ior at UCI, and is a psychiatrist.The Hippocratic Oath, the guiding ethi-

cal standards of physicians for more than amillennium, does not mince words on thesubject of physician-assisted death. “I willneither give a deadly drug to anybody ifasked for it, nor will I make a suggestion tothis effect,” the classic version of the textreads. Some would consider the oath out ofdate, however, in terms of its application tothe laws of modern America – it alsoclearly opposes abortion.“What this bill [the End of Life Option

Act] essentially does is give an enormousamount of power to physicians. It in factgives them the power to use lethal force,which in Western society is generally re-served for the state alone,” Kheriaty said,referring to capital punishment. “The aimhere is to knowingly and willingly dosomething to take another life. And placingthat power in the hands of physicians is abig mistake.”Of great concern to Kheriaty is that the

proposed California bill doesn’t require apsychiatrist to determine the competencyof a patient requesting an end-of-life drug.Rather, it leaves that determination to theattending physician. The same standard ap-plies in Oregon. “Fewer than 6 percent ofthe individuals reported cases in Oregonwere referred for psychiatric consultationbefore ingesting the poison, so to speak. Tome that constitutes gross medical negli-gence,” he said. “Even if you are in favor of assisted sui-

cide, don’t you want to make sure that theperson’s supposedly autonomous requestisn’t being colored by a treatable mood dis-order, by something that’s reversible?” hecontinued. “Not all physicians areequipped to do a really comprehensivemental health evaluation. That’s why psy-chiatry is its own specialty. That is an im-mediate abuse I see happening right awayonce this law is implemented.”When asked why the End of Life Option

Act doesn’t require the evaluation of a psy-chiatrist, Eggman responded: “It is the samecriteria as hospice,” in which a physiciandetermines a patient’s ability to make deci-sions. “If that physician feels like you needa referral to a social worker or psychiatrist,that can certainly be made as well. We don’t


Right-To-Die

Legislation(Continued From Page 1)

Anita Freeman, left, and her sister, Elizabeth Martin, were best friends. Freeman took care of Martinas she was dying from cancer and, due to California law, was unable to grant her wish to die onher own terms. (Photograph provided by Freeman)

Oregon’s Death with Dignity Act (DWDA), enacted in late 1997, allows terminally-ill adult Oregonians to obtain and use prescriptions from their physi-cians for self-administered, lethal doses of medications. The Oregon Public Health Division is required by the DWDA to collect compliance informationand to issue an annual report. As of February 2, 2015, prescriptions for lethal medications were written for 155 people during 2014 under the provisionof the DWDA, compared to 121 during 2013. At the time of the report, 105 people had died from ingesting the medications prescribed during 2014under DWDA. (Source: Oregon Public Health Division)

Death With Dignity Act Prescription Recipients And Deaths* By Year, Oregon, 1998-2014

(Please Continue To Top Of Page 15)


want to make the bill so complicated thatpeople aren’t able to use it,” she said.The proposed law protects physicians

from “civil or criminal liability or profes-sional disciplinary action for participating ingood faith compliance with the act.” Accord-ing to Kheriaty, this language sets a riskyprecedent for medical liability. “Assisted sui-cide becomes the lowest liability option aphysician can perform, because in legal lan-guage, all the physician has to do is say, ‘Iwas acting in good faith,’ which is a very lowlegal standard . . . And then they are protectedfrom any liability. That standard existsnowhere else in medicine,” he said. “Every-where else in medicine a physician could be

liable for malpractice for any sort of breachand any sort of action contrary to the stan-dard of care that does harm to the patient.”Kheriaty is also worried that, if the bill

passes, future court challenges to aspectsof the law could pave the way for expandedaccess to physician-assisted death. “Onceyou introduce the notion of that [physician-assisted death] being a basic human right,then the fences they try to erect around it .. . will be unmasked as arbitrary, becausethey are,” he argued. The arguments Kheriaty fears the bill

will inspire, he said, go something like this:“If people have a right to assisted suicide,then why should it be restricted to onlythose who have six months left to live?What about those who have a year to live?What about those who have a chronic ill-ness that will eventually kill them, but itwill take a long time? Why do you have tobe suffering from a terminal illness to makeuse of this basic human right? Why do youhave to be over the age of 18?” Eggman rejects that argument. “I am a practicing Catholic,” she said, “and

I brought my bishop and some of his folks inhere, and they also kind of used the slipperyslope argument . . . And my response to themwas, ‘you know, I am also an out lesbian andthat was the same argument that was usedduring Prop 8. Right? You’re going to let twoadults make a decision to marry each other– but what if they want to marry five people,or a child, or a goat?’” she said.Kheriaty doesn’t deny that his argument

entails a slippery slope. In fact, that’s hispoint. “I think there is a relentlessly logicalslippery slope that will take us in the direc-

tion we see happening in Belgium and theNetherlands, where prisoners suffering an-guish because they are in prison are beingeuthanized,” he said. Last September, a Bel-gian court granted convicted murderer andrapist Frank Van Den Bleeken, who hadbeen in prison for almost 30 years, the rightto euthanasia due to psychological sufferingunder the country’s assisted suicide laws.Rather than pushing physician-assisted

death as an end-of-life option, care for ter-minally ill patients should be focused onensuring their quality of life is as good aspossible, Kheriaty emphasized, arguing thatwith modern medicine, treatments for painand the depression associated with a termi-nal diagnosis are better than ever.That philosophy holds no water with

Freeman. “People with cancer and ALS[amyotrophic lateral sclerosis, also knownas Lou Gehrig’s disease] die with insuffer-able pain levels. So it’s a myth. I get angrybecause we tried so hard to get it to work.These doctors are so gallant and say we cancontrol pain. I’m not a believer,” she said.Even if the bill doesn’t pass the state leg-

islature, a court may soon grant terminallyill Californians the right to die. A lawsuitfiled in February in the San FranciscoCounty Superior Court argues that lawsagainst physician-assisted suicide don’tapply to terminally ill patients. A ruling tothat end would allow terminally ill Califor-nians to seek out life-ending medication –but without all the restrictions put in placeby the proposed legislation. �

March 3-16, 2015 Long Beach Business Journal 15 2015

California Assemblymember Susan TalamantesEggman, who represents Assembly District 13 inthe Stockton area, is a coauthor of Senate Bill128, the End of Life Option Act, which wouldgrant terminally ill Californians the right to procurelife-ending medication.

SPECIAL REPORT – HEALTH CARE


March


March 3-16, 2015 17

City CouncilPasses Incentive

Package ForSmall Businesses� By DAVE WIELENGA

Staff Writer

The Long Beach City Council is movingforward with an ordinance intended to en-courage small businesses to start, expandor relocate in the city by temporarily rebat-ing various combinations of business li-cense fees.“This is a first step in the right direction,”

said 5th District Councilmember StacyMungo, who chairs the council’s economicdevelopment and finance committee, whichproposed the ordinance. “It’s a pilot programthat we can adjust and expand, a demonstra-tion that the members of this council are de-termined to be business friendly.”The proposal, passed by a 7-0 vote at the

February 17 city council meeting, hopes toincentivize four aspects of small business: Businesses adding a new location to an

existing Long Beach business or relocatinga business from outside the city will receivea rebate equal to their first year’s businesslicense tax (approximately $350 to $520). Manufacturing businesses that start or

relocate to Long Beach will receive a rebateequal to their first and second years’ businesslicense taxes (approximately $700 to $860). Businesses adding employees will re-

ceive a one-time rebate of four times theamount normally added to the business li-cense tax for those employees (approxi-mately $36 to $70 per added employee).Beginning in the second year, those busi-nesses will pay the normal per-employeecost. If the number of employees is reducedduring the first four years, those businessesmust reimburse the city on a pro-rated basis. Businesses undertaking renovation or

construction with costs exceeding $2,000will receive a rebate equal to one year’sbusiness license tax; if the costs exceed$4,000, the businesses will receive a rebateworth two years of business license taxes(approximately $700 to $1,035).No one pretends to know whether these

incentives will generate the desired out-comes. The staff report by John Gross, thecity’s director of financial management,“roughly estimated” that the program willcost less than $200,000 a year, and substan-tially less this year because it won’t berolled out for months. But during discus-sion at the city council’s February 17 meet-ing, even Gross described the true fiscalimpact as “a scientific guess.”Vice Mayor Suja Lowenthal voiced lo-

gistical concerns when she spoke duringthe meeting.“The challenge always becomes, how

long does it take for someone to go throughthe process,” said the 2nd District represen-tative, the longest-serving member on acouncil with five first-term members. “Wehad great incentive programs that a lot ofour corridors took advantage of years agothrough the Neighborhood Resource Cen-ter, but staffing issues made it a real chal-lenge to process the number ofapplications. It became a resource issue.”

Such uncertainty explains why the smallbusiness incentives proposal was constructedwith special features, said Mungo, beginningwith the fact that it is an ordinance.“If these incentives were approved as a

program rather than an ordinance, its im-plementation by city staff could be different– if something unexpected came up, staffcould make adjustments without necessar-ily coming back to council for approval,”she said. “As an ordinance, however, it isthe law. Changes require two readings andtwo council approvals. Establishing this asan ordinance provides assurances that itwill be front and center.”On the other hand, this ordinance is written

to expire after one year and to renew at theoutset of the fiscal year to allow city officialsto get feedback and make adjustments.There’s also the question of whether the

incentives – most amounting to rebatesfrom a few hundred to a thousand dollars –are sufficient to convince businesses toopen in Long Beach rather than in sur-rounding cities where business licensescost significantly less.“When you are dealing with small busi-

nesses, a thousand dollars here or there issignificant,” Mungo contended. “Westarted with fee rebates because we wantedto get started soon, and changing permitand fee structures is an entirely differentprocess. We also were guarding againstpeople gaming the system by doing thingslike changing the names of their businessesto qualify for the incentives.”How will small business owners know of

the incentives available to them?“We made a recommendation to the

[Long Beach] Economic DevelopmentCommission to come up with advertisinginitiatives,” Mungo said. “Meanwhile,Suzie [Price, 3rd District Councilmember]and Roberto [Uranga, 7th District represen-tative, Mungo’s fellow members of the eco-nomic development and financecommittee] and I are going to get out theword in a newsletter, on our Twitter feeds,Facebook pages and all of that. We intendto use the city’s digital billboards,brochures and other options.”When this came up at the council meet-

ing, Lowenthal’s experience again madeher the voice of caution and concern.“If we are asking council members and

others to let people know about this oppor-tunity,” Lowenthal said, “I think we want tobe able to manage expectations.” �

NEWSWATCH

U.S. Naval AcademyGospel Choir To Hold

Free Concert March 15In Long Beach

The U.S. Naval Academy Gospel Choir,composed of more than 50 Naval Academymidshipmen, is performing a free concerton March 15 at 4 p.m. at Long Beach’sCovenant Presbyterian Church, 607 E. 3rdSt. Following the event, a $15 all-you-can-eat spaghetti dinner is hosted by RisingTIDE, an after-school program through theMarguerite Kiefer Education Center. Pro-ceeds from the dinner go towards the cen-ter’s academic, cultural and nutritionalservices for more than 400 local youth. Formore information, contact Reverend AdeleLangworthy at 562/437-0958 ext. 25, or [email protected]. �


March


Senior Writer

After months of negotiations over thecontract for West Coast longshore work-ers, not even the presence of a federal me-diator was able to bring the two

negotiating parties to agreement, leavingmany to wonder what would. In the end, itwas a visit – and then a threat – from U.S.Labor Secretary Thomas Perez thatbrought the International Longshore &Warehouse Union (ILWU), which repre-sents the workers, and the Pacific Mar-

itime Association (PMA), which repre-sents their employers, to agreement.Shortly after arriving on the West

Coast, Perez gave the parties a same-dayultimatum: either they would come to anagreement by the end of the day on Fri-day, February 20, or he would haul them

to Washington, D.C., to negotiate there.The pressure of the U.S. governmentproved to be the tipping point – by the endof the day, the parties came to a tentativeagreement.Details of the agreement have not been

18 Long Beach Business Journal March 3-16, 2015PERSPECTIVESNEWSWATCH

At a February 23 press event at the Port of Los Angeles, Mayors Eric Garcetti of Los Angeles, left, and Robert Garcia of Long Beach expressed their gratitude that months-long contract negotiations forWest Coast longshore workers had come to a conclusion. On the docks behind them, International Longshore & Warehouse Union workers resumed full-force operations after months of work slowdownsand heated discussions with the Pacific Maritime Association, which represents employers. (Photograph by the Business Journal’s Thomas McConville)

� By MICHAEL GOUGIS

Contributing Writer

Boeing has established an Engineering Career Devel-opment Center at its Douglas Park Center in LongBeach, the first of a nationwide series of training centersfor the organization’s engineering and technical staffmembers, the company said.“Technology moves quickly. We wanted to be sure our

employees can keep up, and we wanted to give them thebest training they can possibly get,” Cassaundra Bantly,communications specialist, engineering, mission assur-ance & product support with Boeing Defense, Space &Security, told the Business Journal.The goal of the centers is to ensure that the company’s

technical staff remains at the forefront of knowledge intheir areas of expertise. The company views this as along-term investment in its principal resource – engi-neering and technical know-how that is ahead of its com-petitors.The establishment of the centers is part of the company’s

strategy to provide development and training for its tech-

nical and engineering employees, an initiative known as“Engineering Central,” the company said in a statement.“As our people continue to develop their capabilities

and knowledge, Boeing will become an even strongerand more competitive company in our second century,”said John Tracy, Boeing chief technology officer andsenior vice president of engineering, operations & tech-nology, who oversees engineering within the company.“We have always been a company that values the ca-

reer growth and development of our people. With Engi-neering Central, Boeing is intensifying its pursuit ofengineering excellence,” Tracy said in a news release.The center will be based around classroom instruction

at Douglas Park, and will be open to any employee per-forming engineering and technical tasks for the com-pany, Bantly said. New engineers and technicalpersonnel joining the company straight from college alsowill have access to the training and development pro-grams, depending on their assignments and the demandfor more specialized knowledge. The size of the classesand training sessions will be dictated by demand and thetraining offered, Bantly said.

Economists and others describing the need for contin-uing training for engineers use the phrase “half-life ofknowledge.” This is the period of time it takes for halfof the knowledge in a particular field to be replaced withnew knowledge. Depending on the field of engineeringstudy, estimates of the “half-life” of an engineer’s knowl-edge base range is from seven years down to less thanthree. The need for constant continuing education is crit-ical, especially so for a company that engineers solutionsin broad, challenging areas like aerospace and space-craft.Engineering Central also emphasizes existing em-

ployee development resources, including the company’scorporate education and tuition assistance program. Em-ployees pursuing most engineering-related programs atapproved schools can get tuition and other education ex-penses paid by the company.The company plans to open centers in Seal Beach

and Huntington Beach, St. Louis, Ridley Park in Penn-sylvania, Charleston in South Carolina, Salt Lake City,the Puget Sound region of Washington state andHuntsville, Alabama. �

Honing The Edge: Boeing Opens Engineering Career Development Center In Long Beach

Tentative Longshore Contract Agreement Is Reached, Workers Return To Docks



released, but information is availableabout the previous contract, which ex-pired in June. In a February 4 online press confer-

ence, PMA President and CEO JamesMcKenna explained that full-time long-shore workers made an average of$147,000 per year, with fully paid healthcare at a cost to employers of about$35,000 per worker. The base rate of pay-ment was $35.68 per hour. The maximumyearly pension was $79,920. McKenna made an “all-in” offer to the

ILWU: a 14 percent increase of base rateof payment to $40.68 over five years, an11.1 percent increase to $88,800 of themaximum yearly pension rate and contin-ued fully paid health care. Whether or notthe ILWU accepted these terms on Febru-ary 20 was still unknown as of the timethe Business Journal went to press onFebruary 27. Between the time the offerand the final agreement were made, how-ever, it was widely reported that only oneissue was stalling negotiations; the ILWUwanted the right to fire arbitrators whoruled against them.At a press conference in San Pedro on

February 23, Mayor Robert Garcia of LongBeach and Mayor Eric Garcetti of Los An-geles both attributed the contract resolutionin great part to Perez. “The level of engage-ment that we saw from the White Houseand the labor secretary was very impres-sive,” Garcia said. Both mayors emphasized the importance

of the ports of Los Angeles and LongBeach to the national economy, and ex-pressed gratitude that workers had resumeda normal pace. “With this tentative laboragreement, we can move forward to clearthe docks. You can see the activity behindus today,” Garcetti said, as cranes liftedcontainers behind him.Following the mayors’ remarks, repre-

sentatives from the ILWU and PMA em-phasized their focus on the future. “The rhetoric and the negotiations

aside, it’s time for the longshoremen, theclerks and the walking bosses in SouthernCalifornia to show why we are the great-est workforce in the world,” Robert“Bobby” Olvera, Jr., president of ILWULocal 13, stated. Garcia recently ap-pointed Olvera to Long Beach’s Eco-nomic Development Commission.“We are committed not only now, but

long term, to make sure these cans [con-tainers] move, to make sure our commu-nities move, and to make sure theeconomy moves nationally. Because themayors put it very clearly: these two twinports, they move the economy here,”Olvera said.PMA Vice President Chad Lindsay said

the PMA’s next step is to pass along thetentative contract agreement to its mem-bers for review. “Our focus now is gettingcargo moving, working through the back-log and getting containers unloaded andon the way to customers, as well as get-ting exports on the ships and off to inter-national markets,” Lindsay said. “Weknow there is a lot of work to do. Therehave been significant impacts for many,and we haven’t lost sight of that.”Congestion issues caused by changes in

the supply chain had already backed upthe ports before the holidays and, whenfewer and fewer longshore workers beganbeing deployed for work back in October,

matters only grew worse. At the height ofthe congestion last month, more than 30ships were at anchor in the San Pedro Bay.On average, there are typically only abouta handful.The impacts of the protracted negotia-

tions were reflected in the amount of cargothat moved through the ports of LongBeach and Los Angeles in January. Respec-tively, they experienced total cargo volumedecreases of 18.8 and 22.7 percent. In an interview with the Business Jour-

nal, Port of Long Beach Chief ExecutiveJon Slangerup said the business losses,caused by diversion of cargo to otherports, were likely short term. “We believethat we remain the most direct route fromAsia to the interior of the U.S. That modelis one that is tried and true, and it is themost efficient. So we will get our cargoback,” he said.

Once the agreement was reached, thenumber of longshore workers sent towork on the Port of Long Beach’s docksreturned to normal levels, Slangerupsaid. Still, it’s going to take awhile fornormal operations to resume. “We arethinking it is going to be somewhere inthe range of four weeks, maybe f iveweeks, to clear the backlog of ships atanchor,” he estimated. He estimated itwould take two to three months to clearthe backlog of containers within the portcomplex.On Thursday, February 26, the Port of

Los Angeles announced that the FederalMaritime Commission had approved anamendment to a cooperative agreementbetween the ports. The amendment allowsthe ports to work together to address con-gestion issues and improve supply chainefficiencies.

Other efforts to improve supply chain ef-ficiencies are already underway. An inter-operable gray pool of chassis, theequipment truckers use to haul containers,has been operating in beta mode, and offi-cially goes live March 1. “That is going to be a tremendous im-

provement in efficiency,” Slangerup said,“particularly from a trucking perspective,because the truckers will no longer have topick up a chassis from one location and re-turn it back to that location. They’ll be ableto return it anywhere within both port com-plexes. It is going to be an incredible im-provement in their efficiency and theirmovement of goods.” The Port of Long Beach is also moving

ahead with plans to manage its own fleet ofchassis for peak relief. “We have a requestfor proposals going out on the street in thenext two weeks,” Slangerup said. �

March 3-16, 2015 Long Beach Business Journal 19PERSPECTIVES 2015 NEWSWATCH

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March

Ruiz was apologizing for any of it.“Once you open the window to become

an international airport – a place where therest of the world enters your country – youhave an enormous responsibility,” he said.“You have to create the infrastructure thatanticipates and deals with all possiblethreats to people, property and the wholeexistence of the United States. That’s the re-ality since 9/11. We don’t want another9/11. For us, it’s 9/11 every day.”Ruiz said the size of a customs facility

largely depends upon the anticipated vol-

ume of passenger traffic. But the hardwareneeded to create a hard line of securitytakes up significant square footage, too.“Before we talk about that, we must em-

phasize that the route through Customsmust be completely secure – no exits,” Ruizsaid. “Passengers are not officially in theUnited States until they pass through Cus-toms. They’re not in their own country, ei-ther. They’re in limbo. Technically, theyhave no rights.”Beyond that, some of the spatial needs

are obvious.“Of course, we need the basic space to

encounter passengers, examine passportsand inspect luggage,” Ruiz said. “But alsonecessary are facilities to conduct morethorough inspections – pat-downs and the

like. If passengers are deemed inadmissi-ble, there must a place for them to be de-tained, maybe overnight, before being sentback to their countries of origin.”“We need places to install the highly

technical systems that allow CPB to workwith any law enforcement agency any-

where in the world to stop any threat, hereor there,” Ruiz said. For example, if Inter-pol issues an arrest warrant for someone,Long Beach now becomes part of the net-work that must find that needle in thehaystack.”All passengers on every flight are pre-

scanned, usually before they arrive at theairport, beginning the moment a ticket ispurchased.“The advance passenger information

system must be installed,” Ruiz said.“There must also be a counterterrorismroom to do this work, to match each pas-senger with his or her correct identity andbiometrics – fingerprints and photos – andto deal with any mismatches.”All of this takes time and costs money.“The government will determine space

needs, security regulations,” Ruiz said.“There will be planning, site visits andprobably redoing the planning before thegovernment approves a blueprint. It mightrequire significant investments. Theprocess could be a painful one.”Actually, that message isn’t too different

from the to-do list Francis had laid out inhis letter to Long Beach city officials,which had included “determinations ofconstruction costs, identifying fundingsource(s), facility size and layout, a feestructure for users.” Francis had also addeda pledge “to protect and actively enforcethe Noise Ordinance.”Without mentioning Long Beach, Ruiz

said it is not uncommon for enthusiasm toovercome analysis when a city entertainsthe prospect of upgrading its municipal air-port to international status.“It’s a marketing deal for the airport and

the airlines,” he said. “It’s supposed to be awin-win situation. The airline gets moreflights, the airport makes more money andthe city is proud to be on an internationallevel. People get all excited. But we haveseen it go both ways. Some have been verysuccessful, but we have seen others end uplosing millions of dollars.”Ruiz let that sink in before he concluded,

gravely, “Proceed with caution on these ap-plications.”To that effect, 8th District City Coun-

cilmember Al Austin has introduced an itemon tonight’s (March 3) agenda that woulddelay any action related to Long Beach’spossible application for a U.S. Customs fa-cility until the 4th District is represented.The 4th District seat has been vacant sinceformer Councilmember Patrick O’Donnellwas elected to the state Assembly last No-vember. A replacement will be selected inan April 14 special election that has threecandidates on the ballot – Daryl Supernaw,Herlinda Chico and John Lindemann. Thewinner will take office on May 5.If Long Beach were to apply for a U.S.

Customs facility, it would likely be as a so-called “User Fee Airport.”The following information, provided by


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PERSPECTIVESNEWSWATCH

JetBlue Request

For Customs Service(Continued From Page 1)

“The government will determine space needs, security regulations.

There will be planning, site visits and probably redoing the planning

before the government approves a blueprint. It might require

significant investments. The process could be a painful one.”

Jaime Ruiz, United States Customs and Border Protection



U.S. Customs and Border Protection, de-scribes the basic requirements that must bemet by an applicant seeking designation asa User Fee Airport (UFA):A UFA is a small airport, which has

been approved by the commissioner ofCBP to receive, for a fee, the services ofa CBP officer for the processing of air-craft entering the United States and theirpassengers and cargo. The applicant mustmeet the following criteria for UFA con-sideration:• The volume or value of business at the

airport is insufficient to justify the avail-ability of inspectional services at such air-port on a non-reimbursable basis.• The current governor of the state in

which such airport is located supports suchdesignation in writing to the commissionerof CBP.• The requestor (e.g. airport authority)

agrees to reimburse CBP for all costs asso-ciated with the services, including all ex-penses of staffing a minimum of onefull-time inspector.• The requestor completes an Agriculture

Compliance Agreement (ACA) with fixedbase operators and garbage haulers for han-dling the international garbage.The basic steps required in considering

an application for designation as an UFAinclude:• Receipt of a letter from the current gov-

ernor of the state supporting the user feeairport designation addressed to the com-missioner.• An initial site visit in which CBP offi-

cials discuss workload and services.• A final site visit in which CBP officials

verify that facilities are 85 percent com-plete and adequate for inspectional servicesto be provided.• A successful site visit in which CBP

officials discuss workload and servicesand verify that facilities are adequate forinspectional services to be provided.• Completing a Memorandum of

Agreement (MOA) with CBP, whichstates the responsibilities, fees and hoursof service.

• Completing an ACA with CBP for han-dling international garbage.An approved UFA receiving CBP serv-

ices is responsible for payment of the fol-lowing fees:• Per Inspector – $140,874 for the first

year and $123,438 for succeeding years.• ADP costs per inspector – $17,042 to

$21,062 (1st year) and $13,620 to$17,640 for succeeding years depending,on the location.

• Other associated costs such as over-time.In all cases regarding requests for new

service, it must be understood that, beforeCBP approves requests to establish newPorts of Entry or User Fee Airports, CBPmust have the available staffing or the au-thorization and appropriations to hire ad-ditional staffing. This is, and willcontinue to be, one of the most importantconsiderations. �

March 3-16, 2015 Long Beach Business Journal 21PERSPECTIVES 2015 NEWSWATCH


Staff Writer

The window of opportunity for settlingthe lawsuit against the City of Los Angelesover the proposed massive rail yard onland that abuts West Long Beach neigh-borhoods may not be officially closed, butnobody seems to be looking through itanymore.“We’re currently preparing our brief for

the court,” reported Deputy City AttorneyMike Mais, the point person for the Cityof Long Beach, which is one of seven pe-titioners in the suit. “The judge has asked for them to be ex-

pedited, and we will file ours around thebeginning of March.”The lawsuit’s start in a Contra Costa

County courtroom – a neutral site ac-cepted by all parties – isn’t until Novem-ber 15. Mais acknowledged that 8½months of lead time is a bit more thannormal. He attributed it to the judge’s de-sire to be well prepared for a very com-plicated case.

But it underscores how long it’s beensince last winter’s holiday season, whenthere was lots of cheerful talk about thepossibility that mediation might avoidcostly, complicated and potentially years-long litigation in a suit that claims that the153-acre Southern California InternationalGateway rail yard project would negativelyimpact the health and well-being of peoplein the neighborhoods of West Long Beachand Wilmington.All the parties – including the Long

Beach Unified School District, the SouthCoast Air Quality Management District,the California Attorney General, andneighborhood groups and businessesthreatened with relocation – met in SantaMonica for three days of mediation, withretired Sonoma County Judge William L.Bettinelli shuttling among the parties tosearch for common ground.But nothing was resolved, and no new

sessions were scheduled before everyoneadjourned.Mais is prohibited by a confidentiality

agreement from talking about what hap-

pened in the mediation sessions or muchof anything else. “All I can say is the mediation process

is done – there are no more sessions,” hesaid, and then qualified even that. “Well,none scheduled.”The Long Beach City Council has twice

met with the city attorney’s office in closedsessions regarding the lawsuit, but ofcourse Mais can’t talk about those either.“There really is nothing to report,” he

said. “We will file our brief – a joint briefamong all the litigants, except the attorneygeneral is filing separately. The City ofLos Angeles will do an opposition brief,and we will prepare a reply.”Then it’s up to the judge.“Cases like these are tried on the basis

of the briefs, along with oral arguments,”Mais said. “Typically, there’s never anylive testimony. It’s kind of a law and mo-tion matter.“The court has to base its decision on

the record – the environmental impact re-port, studies, e-mails, comment letters andthe briefs. I think it’s like 20,000 pages.” �

ns.

ning

e

Proposed BNSF Railway Project Briefs Being Prepared For Judge


March

tectural designer, innovator and creator ofTED and TEDMED. The program featured a wide-ranging

conversation between the two men re-garding the future role of maps, geo-graphic information systems (GIS) anddata in understanding and shaping a moreviable urban future. Such knowledge,they maintained, is essential since theworld population is currently projected toincrease from today’s 7.2 billion people to9 billion by 2050. Virtually all of this growth will occur

in the developing world and 70 percent ofthe world’s population will likely then live

in rapidly expanding urban centers. Thiswill almost certainly become a cause forgreat concern given the fact that todaymany of the world’s urban centers are al-ready overcrowded and only marginallyfunctional. Unfortunately, officials andplanners have consistently demonstratedan inability to fully comprehend issues re-lated to rapid urban growth or as Wurmanput it, “They fail to understand how littlethey understand!” So how can this failure to better under-

stand these problems be remediated? Both speakers believe that only by hav-

ing better, more widely-shared data and aneffective means of fully utilizing this datacan there be any hope of avoiding the cre-ation of disastrously dysfunctional urbanplaces. The realization of this very ambi-tious goal must therefore rely on the au-

thorities successfully learning to “Worshipthe God of Understanding” and continue todevelop and use the “intelligent mapping”capabilities of still more powerful GIStechnologies.

The Role Of GIS In A Rapidly Evolving World

Sharing information is a basic human traitand maps are one of the most valuable anduseful formats for that sharing process.Maps have long represented “power” be-cause of the valuable information they con-tained and, historically speaking, the fact thatthey were generally shared on a limited basis. While most of us are familiar with maps

– whether they are the old-fashioned paperones or the new digital maps found inglobal positioning systems (GPS) – few re-alize they are an important method for stor-ing, transmitting and analyzing data.

The recent development of so-called “in-telligent map technologies” has exponen-tially increased their value. For example,while a paper road map can guide us fromone place to another, today’s digital GPScan also provide information on refuelingstops, restaurants, points of interest, trafficconditions and alternate routes, estimatedarrival times, speed limits, and other usefuldata. Thus, the new map technology allowsus to use stored data to better analyze, planand enjoy our car trips. While a GPS is certainly a useful addi-

tion to modern life, that technology palesin comparison to the powerful GIS tech-nology now spreading rapidly around theglobe. A GIS sewer map, for example,can show not only the location of thepipes, but their age, depth underground,dimensions, composition, content, previ-

ous repairs and even when agingpipes should be replaced to avoidcostly disruptions in service. Similarly, a GIS can not only spa-

tially locate cases of infectious dis-ease, it can also allow the inclusionof other relevant data that facilitatesthe “modelling” of those incidentsto reveal possible underlying rela-tionships and disease vectors. In short, this new ability to ac-

curately overlay multiple layers ofinformation provides users with anunprecedented ability to gain addi-tional insights into the underlyingspatial patterns. This urgent searchfor enhanced insights into our in-creasingly complex world – whatDangermond referred to as “a lustfor understanding” – caused Wur-man to partner with ESRI in de-signing a presentation called the“Urban Observatory” (www.ur-banobservatory.org). This new in-teractive exhibit allows evennovice users the ability to contrastand compare cities located aroundthe world. The potential power ofthis interactive system was demon-strated following the conclusion ofthe lecture. The website, based onWurman’s principle that “Under-standing Precedes Action,” giveseveryone the ability to make a cor-nucopia of world data both under-standable and useful.

A Commitment ToImproving Understanding

Through Mapping TechnologyGiven Dangermond’s certainty

that everyone, not just specialists,should be able to understand anduse information technology to betterunderstand their environment, ESRIhas made the company’s GIS pro-grams increasingly powerful, yeteasier to learn and apply. In addition, and in keeping with

his vision, ESRI has contributed toAmerica’s K-12 and STEM (Sci-ence, Technology, Engineering, andMathematics) programs for morethan 25 years. More importantly,perhaps, is that following a meetingwith President Obama in 2014 todiscuss ways the company couldhelp strengthen that program, Dan-germond announced that the firmintends to make its innovative map-ping software available at no cost to

22 Long Beach Business Journal March 3-16, 2015NEWSWATCH

SPECIAL LONG BEACh BUSINESS JOURNAL

Building A Better Long BeachPublishes March 17, 2015

An Evening

With Genius

(Continued From Page 1)


Long Beach is seeing an increasing number of

businesses relocating to the city and creating

good-paying jobs. The city is also experiencing

an increasing number of young professionals

who are making Long Beach their home.

It’s time to brag about what a

great place Long Beach is to

open a business, live, work and play.

Our Special Edition Features The Following:

Welcome Letter From Mayor Robert Garcia

Why Long Beach Is A Great Place To Do Business

Business Incentives & Assistance

A Look At Local Industries

Future Plans & Projects

Shopping & Dining

Livability: Recreation & Culture

Education & Training

Presented in cooperation with the City of Long Beach

Please Call Today To Place Your Advertisement

562/988-1222(Ad space deadline: March 11)

Copies will be given to the city’s economic and development

services departments, as well as business associations,

commercial real estate brokers and others who market Long Beach


every K-12 school in America via Cloud-based technology. This $1 billion pledgewill provide every American student withthe opportunity to become directly in-volved in what Dangermond calls “creativeproblem-solving” though hands-on map-ping projects.Finally, in addition to this occasion pro-

viding an informal setting for an interestingdiscussion between two leading experts in

a cutting-edge technology, the Aquarium’sevent also succeeded in helping the audi-ence gain new and exciting insights intolikely future developments and the tech-nologies that will be used to investigate andaddress those future challenges that will in-evitably arise. It was, all said and done, an intellectually

stimulating conversation and an eveningvery well-spent! �

March 3-16, 2015 23NEWSWATCH 2015

from California State University, LongBeach. He is a proven neighborhood leaderfor the district and the city, and has yearsand years of private sector experience.Supernaw was previously involved with

the adopt-a-school program, and coachedsoccer and Little League teams. He literallywent to bat for the district with the Athertoncorridor freeway offramp project in 1986(resulting in the city receiving $1.5 millionin traffic mitigation funds from Caltrans/Or-ange County Transportation Authority) andthe Atherton ditch project (a 20-year cam-paign with the end result being a $3 millioninfrastructure and beautification projectbuilt without using local funds). He’s been involved with neighborhood

clean ups, went door-to-door with petitionshelping establish preferential parking dis-tricts in areas around the university,founded the Atherton Corridor Neighbor-hood Association in 2007 and served on the4th District’s Budget Advisory Committeeplus numerous other area committees andtask forces. He was a charter member of theLong Beach Sustainable City Commissionand is its current chair.That’s quite a resumé, but just a partial

list. To say his 4th District roots are deep isan understatement. His chief opponent, Herlinda Chico, pur-

chased a home in the district in 2011, then ayear later announced she would run in the2012 city council race, only to back out. Hercampaign material claims she is a “commu-nity leader,” but after living in the district forfour years, we cannot find a single exampleof community service to the 4th District.Think about that. What she has been involved with in Long

Beach, though, are union-related issues,which concerns many people in the city, in-cluding us. We wrote recently that if she wins,she is an automatic vote for whatever the nu-

merous unions supporting her want, includingforcing minimum wage hikes on small busi-ness and supporting placing an increase to theutility users tax on the ballot. She’s on therecord with that despite her recent attempts toback away from her comments.She also claims to have worked to help

small businesses, but, again, we cannot findeven one example of her working with LongBeach businesses prior to running for office.Chico graduated high school in Bell Gar-

dens and received a bachelor’s in masscommunications from Cal State SanBernardino. She currently works as a“media specialist” for the City of Com-merce. She is a former staffmember for the7th City Council District, worked at theCentral City East Association in Los Ange-les and is a past vice president of the LongBeach Lambda Democratic Club.Her candidate statement is printed in

English and Spanish but, unlike Supernaw,she failed to print it in Khmer, the officiallanguage of Cambodia. The westside of the4th District includes part of CambodiaTown, where businesses need support togrow and prosper. With no track record of involvement in

4th District events, issues or needs, and asure-fire fifth vote on the city council onunion issues, this city will be headingdown the wrong track for years to come ifChico wins and control of the city fallsinto union hands. The people and groupswho have endorsed her certainly didn’tcare about her lack of district involvement.Before district residents cast their ballot,

we hope they pay attention to the differ-ences among the candidates and who hasrolled up his sleeves to help them time andagain over the years. Supernaw has investedhis entire life to making the 4th District abetter place to live and raise a family. We strongly urge 4th District residents to

vote for Supernaw, and residents and busi-nesses throughout the city should supporthim financially to help counter the tens ofthousands of dollars to be spent by unionsto get Chico elected. �

Business Journal

Endorses Supernaw

(Continued From Page 1)


� By MICHAEL GOUGIS

Contributing Writer

Early in April, some of the most ad-vanced, high-tech, cutting-edge, single-seatformula cars ever devised by human beingswill hit the streets of Long Beach. And theywill be backed by some of the biggestnames in the motorsports industry: Audi,Renault, McLaren, Dallara, Williams. Thecars will reach speeds of 140 miles an hourat the hands of drivers with international-level racing resumes, including FormulaOne competition.And you won't hear a thing.Round 6 of the FIA Formula E champi-

onship – a racing series of electric-poweredsingle-seater formula cars – is set for April4 in Long Beach, along Shoreline Drive,the home of the traditional Toyota GrandPrix of Long Beach.This is no support race for the Toyota

Grand Prix of Long Beach, the weekendfestival of racing headlined by the Indy-Car series of turbocharged, petrol-pow-ered single-seaters that is scheduled totake place April 17-19.Formula E is a stand-alone event with

completely free admission to the grand-stands and exhibits, aimed at a slightly dif-ferent audience, offering a different racingexperience for the fans and a place for theautomotive industry to show off the ab-solute cutting edge of technology, the fu-ture of drivetrain systems development.“This represents at least some compo-

nent of where automobile propulsion sys-tems are going,” said Jim Michaelian,president and CEO of the Grand Prix As-sociation of Long Beach, which has beenselected by the Formula E Championshipto stage the Long Beach event.Formula E took off in 2013, when the

Federation Internationale de l’Automobile,the governing body of major internationalauto racing, sanctioned the idea of an all-electric formula racing series. The serieswas designed to give major automakers andsubsidiary companies a high-profile plat-form to show off new technology. And the format of the event was de-

signed to mesh with the vehicles to makethe races suitable for city street circuits.The vehicles are quiet, about 80 decibels attop speed, or just a tick louder than a pas-senger car passing at 65 mph 25 feet away.The events take place on one day – prac-

tice, qualifying and race all run withinabout nine hours – minimizing the impacton street closures and nearby businesses.And in the first season, all 20 cars (10teams of two drivers each) are identical,thus showcasing driver skills.At the Long Beach round, the cars will

run a modified version of the traditionalgrand prix circuit. Because of that, and thelack of noise, all of the businesses on thewestern edge of the Grand Prix footprintwill be open for business on race day,Michaelian pointed out.Formula E wanted two races in the U.S.

– one in the East, which has been sched-uled for Miami, and one on the WestCoast. Because of the GPALB’s experi-ence and skill in conducting street races –honestly, Long Beach has perfected the artof staging street motorsporting events inthe U.S. – Formula E came calling andasking for help setting up a race.Initially, Formula E wanted an event in or

near Downtown Los Angeles, Michaeliansaid. The gleaming urban streetscape andtowering skylines of urban centers was whatFormula E wanted as a backdrop for itsraces. In this inaugural season, races havebeen held in – or scheduled for – the heartsof some of the world’s largest cities. Bei-jing, Moscow, Buenos Aires, Berlin, MonteCarlo and London have held, or are sched-uled to hold, Formula E racing directly intheir city centers on temporary race circuits.Punta del Este, Uruguay, and Putrajaya,Malaysia, complete the 10-city circuit.The plans for holding a race in Down-

town Los Angeles got as far as actually de-signing a circuit near the Coliseum, but

then things stalled, Michaelian said. Stag-ing a street race sounds simple, but the re-ality is that scheduling conflicts,infrastructure updates like re-pavingbeaten-up street surfaces, the logistics ofparking, setting up, etc., makes the projectquite complicated.After butting heads against the obstacles

that Los Angeles threw at it, Formula E’sorganizers were impressed by the work theGPALB had done.“They said, ‘Look, Long Beach is very

attractive to us,’” Michaelian said. “And aswe were looking at the options, LongBeach became more and more attractive.”Staging the race offered benefits to Long

Beach. Obviously, there is the positive im-pact on the hospitality industry. It alsoshowcases the city to an international audi-ence as high-tech friendly – these cars arevery, very technologically advanced. And itgives the city an opportunity to link its en-vironmentally friendly sustainability effortsto the totally cool sport of motor racing.Long Beach knows how to stage a street

race. All that was needed was a date. Withthe minimal disruption (compared to theGrand Prix) that the Formula E race wouldcreate, and with the circuit for the GrandPrix already completed, the event wasscheduled for April 4. To make sure itwould not compete with the Grand Prix, or-ganizers agreed to provide free admission.Paddock access is extra, but grandstandseating is without charge.The whole idea is to create “an entirely

different event, totally different than whatwe’re doing with the Grand Prix,”Michaelian said.

And it will be different. There will be nointernal-combustion vehicles competing onthe track during the event. The target audi-ence is younger, more tech-savvy and moreenvironmentally minded families and peo-ple who like motorsport but don’t like thenoise or the idea of combustion emissions-based entertainment. So far, Formula Eraces seem to have struck a chord with itsfan base: More than 67.3 million TV view-ers in the first four races around the world,and an average of 49,000 fans at the event,according to series organizers. Which begs an interesting question.

What is the appeal of a race series withwhat could be dismissed as big battery-powered slot cars without the slot?Firstly, these are dead-serious racing

cars. The Spark-Renault features compo-nents by big Formula One manufacturersand top-level motorsport companies. Secondly, major auto manufacturers

like Audi, Renault and Mahindra (a hugeIndia-based vehicle manufacturer) see theseries as a showcase for their technologi-cal prowess in front of a younger audi-ence receptive to the idea of electricvehicles. While this inaugural season fea-tures spec cars, next season will see a va-riety of vehicles, increasing thecompetition between manufacturers andthe interest from auto companies thatwant to show off the performance of theirall-electric powerplant technology.And lastly, the drivers. Names like An-

dretti, Piquet Jr., Senna, Prost and Brab-ham are on the driver list. Several of theregulars have raced Formula One, andothers have international level race winsand championships.They race like if they don’t win, they don’t

eat. The first-ever Formula E race endedwith a massive last-lap, last corner collisionbetween Nicolas Prost and Nick Heidfeld asthe two desperately fought for the lead, withHeidfeld’s car flying upside-down throughthe air and into a barrier. No NASCAR race,no Formula One race, ever was more hard-fought than that last lap in Beijing.Regardless of the powerplant, the racing

on the track so far has been fantastic, andthat has captured the fans and kept them,Michaelian said.“The racing is great. The drivers are

good, top-line drivers. And they’re runningthese things hard and bringing ’em backwet,” Michaelian said. �

Formula E – The Quiet Racing Revolution Hits Long BeachCity Is One Of 10 In The World Selected To Host The New Series; Admission Free To April 4 Event

For the first season, which began September 13, 2014, in Beijing, all 20 cars are identical, creating what organizers say is an “exciting competition showcasing individual driver skills.” At high speeds, thesound produced is approximately 80 decibels, or 10 decibels more than an average petrol car. The cars go 0 to 100 kilometers per hour in 3 seconds. Ten teams from eight different countries are competingfor the first year’s championship title. The Long Beach race on April 4 uses a modified configuration of the Toyota Grand Prix of Long Beach street circuit. The Virgin Group, which recently announced it is leasinga facility in Long Beach for Virgin Galactic and its satellite launch vehicle, LauncherOne, is a team sponsor through its Virgin Racing. (Photograph provided by FIA Formula E Championship)

Spark-Renault SRT_01EThe Spark-Renault SRT_01E is the first car to be homologated by the FIA. Using the very latest technology,

the zero emission SRT_01E aims to stretch the boundaries of what is currently achievable in electric motor-sport, whilst ensuring a balance between cost-effectiveness and sustainability, in addition to coping with thedemands of racing on city-centre circuits.

It has been built by French company Spark Racing Technology, led by Frédéric Vasseur, together with aconsortium of some of the leading companies in motorsport. Italian firm Dallara, who boast more than 40years' motorsport experience, have constructed the monocoque chassis. Made from carbon fibre and alu-minum, the chassis is both super lightweight and incredibly strong and fully complies with the latest FIA crashtests - the same used to regulate Formula One.

Providing the electric powertrain and electronics is McLaren Electronics Systems, the world leader in high-performance technology for motorsport. Meanwhile, Williams Advanced Engineering, part of the Williamsgroup of companies that includes the world famous Williams F1 Team, will supply the batteries producing200kw, the equivalent of 270bhp. This will be linked to a five-speed paddle shift sequential gearbox, suppliedby Hewland, with fixed ratios to help reduce costs further.

Overseeing all the systems integration will be the championship's Technical Partner Renault, a leader ofelectric vehicles and an expert in motorsport thanks to its Renault Sport Technologies and Renault Sport F1programmes. Specially designed 18" treaded tyres will be supplied by Official Tyre Partner Michelin, capableof providing optimum performance in both wet and dry conditions. (Provided by FIA Formula E Championship)



2015


March 26 Long Beach Business Journal March 3-16, 2015PERSPECTIVES

New Employees At Moffatt & NicholLong Beach-based Moffatt & Nichol, aglobal infrastructure advisor in the plan-ning and designing of facilities such ascoastlines, harbors and rivers, has pro-moted Senior Coastal Engineer Jeffrey G.Shelden, PE, to serve as leader of the firm’sCoasts, Water and the Environment Prac-tice. A 30-year employee of the company,Shelden has worked on hundreds of proj-ects for Moffatt & Nichol, and is currentlythe project manager in the ChangingCourse Lower Mississippi River Delta De-sign Competition. According to Moffant &Nichol President Eric Nichol, the companyalso announced the creation of three new

leadership roles in support of all of itspractices in order “to ensure consistentquality and technical advancements [that]will only enhance the level of expertiseand client focused service we’ve alwaysbeen known for.” Senior Coastal EngineerGillian Miller, CEng, who has more than15 years of coastal and ports project man-agement and design experience, serves asthe coastal discipline lead. Senior WaterResources Engineer Johnny Martin, PE, isserving as the water resources disciplinelead. He has more than 20 years of experi-ence in water resources planning and en-gineering. Senior Environmental ScientistJerry McCrain, PhD, is the environmentallead. He has 40 years of experience in theenvironmental field.

Port Of Long BeachAdds Two Execs To StaffThe Long Beach Boardof Harbor Commis-sioners has confirmedthe appointments ofMichael Christensen toserve as senior execu-tive for supply chainoptimization, andGlenn Farren to serveas director of tenantservices and operations.These are newly cre-ated management posi-tions. Christensen mostrecently served as deputy executive directorat the Port of Los Angeles. He has morethan 40 years of experience in both public-and private-sector planning, goods move-ment, operations, governmental affairs, andenvironmental, design, construction andproject management. According to a state-ment from the port, he is responsible for

“working collaboratively with industrystakeholders to find new ways to increasecommunication and cooperation among thelinks of the supply chain.” Christensen re-ports to Chief Executive Jon Slangerup.Farren has served as general manager forHapag-Lloyd America, overseeing thefirm’s Southern California operations, andhas more than 20 years of managing marineterminals. Previously, Farren has workedfor shipping companies Maersk, Sea-Landand APL. He reports to Dr. Noel Hacegaba,managing director of commercial opera-tions/chief commercial officer.

L.A. Customs Brokers And Freight Forwarders Elects New OfficersMark Hirzel, customs consultancy managerfor DHL Global Forwarding, has beenelected president of the Los Angeles Cus-toms Brokers and Freight Forwarders As-sociation. Incorporated in 1949, theassociation represents licensed U.S. cus-toms brokers, freight forwarders, NVOCCs(non-vessel operating common carriers)and firms which facilitate international

IN THE NEWS

Sprucing Up North Long Beach WithCurbs, Gutters, Sidewalk RehabilitationNinth District Councilmember Rex Richardson, left, and Mayor RobertGarcia celebrate the street improvements on Atlantic Avenue between53rd Street and the city’s northern border in North Long Beach. Duringa February 24 press conference, the men indicated the rehabilitationalso included constructing cement concrete curbs, gutters and side-walks; replacing and overlaying asphalt concrete pavement; and fur-nishing and installing pavement markers, markings, and traffic striping.Existing medians were repaired, and new medians, landscaping, irri-gation and stamped concrete crosswalks were installed. The $3.2 mil-lion project was funded by Proposition C, and from bond proceeds fromthe former Long Beach Redevelopment Agency. “Atlantic Avenue hasundergone an amazing transformation, and this major corridor clearlyhighlights how our Uptown Renaissance is continuing to exceed expec-tations,” Councilmember Richardson said. “This Complete Streets proj-ect has transformed the business environment and is having positiveripple effects throughout the area, including Houghton Park, JordanHigh School, and residents.” Mayor Garcia added, “This project notonly greatly enhances an important business corridor, it was completedon time and on budget. This is just one example of the great things hap-pening in North Long Beach, and we can all be very proud of thatwork.” (Photograph by the Business Journal’s Thomas McConville)

Long Beach Rotary Raises Record Amount For Early Literacy ProgramsLong Beach Rotary’s Reading By 9 literacy program raised a record $45,000 this year for booksand other support to local preschool and K-3 students, schools and libraries. During the past 16years since Rotary launched the program – which aims to increase the percentage of studentsreading at grade level by age nine – it has raised more than $470,000. By the end of this schoolyear, Rotary will have donated more than 215,000 books to local children, school libraries andnonprofit literacy programs in the Long Beach area. Included in the funds raised is money forTeacher Literacy Grants to be awarded to “creative and innovative classroom literacy projectsinitiated by K-3 teachers.” According to Rotarian Frank Newell, pictured above left at the NorthChild Development Center in North Long Beach, “The Teacher Literacy Grants were a big successlast year, and we are increasing the total funding from $5,000 to at least $6,500 this year.”Newell is a local attorney and Poly High School alum who has supported Reading by 9 for manyyears. At right is fellow Rotarian Kay Cofield joined Newell in reading to students. Cofield is theimmediate pastpresident ofLong Beach Ro-tary and ownerof CaliforniaMedia Produc-tions. (Photo-graph by theBusiness Jour-nal’s ThomasMcConville)

Jeffrey Shelden Gillian Miller Johnny Martin Jerry McCrain Michael Christensen

Glenn Farren

Michae


March 3-16, 2015 Long Beach Business Journal 27PERSPECTIVES 2015

trade. The group represents more than 320members, employing over 6,000 individu-als, who file more than 95 percent of allcommercial import shipments, according toa statement from the association. Other of-ficers are: Vice President – Wayne Wagner,senior manager, U.S. Brokerage Services ofFedEx Trade Networks; Secretary – Bar-bara Clarke, vice president of WilliamsClarke Co, Inc.; Treasurer – Karen Quin-tana, director, national sales, customs bro-kerage, Yusen Logistics (Americas), Inc.;and Chair – Vincent Iacopella, managingdirector of The Janel Group of Los Ange-les, Inc. Other Board members include,Maurine Cecil, Western Overseas Corp.;Sandra Coty, Barthco International, Inc.,dba OHL-International; Norman Harris,Panalpina, Inc., Daniel Meylor; RobinGrove, Cars Shipping USA/Loa, Inc.;Carmichael International Service; and DonMonnier, NDO America, Inc.

Alan Anderson ElectedPresident Of Community Hospital Long Beach Foundation Board

Alan Anderson hasbeen elected presidentof the 19-memberCommunity HospitalLong Beach Founda-tion Board of Direc-tors for 2015.Anderson is the presi-dent and CEO ofSouth Coast Health

Care Management, Inc. Anderson previ-ously served on the board and member ofthe foundation’s executive committee from2006 to 2013. Other executive committeemembers are: Vice Chair – Ross Riddle,South Coast Shingle Company; Treasurer –Linda Wallace of Financial & InsuranceSolutions; Secretary – Kit Katz of St. MaryMedical Center; Members – Andrea Ca-ballero of Catalyst For Payment Reformand Suzanne Nosworthy, a community ac-tivist. Other boardmembers are: AndrewBarber of Crissell & Associates; BeverlyCook of the foundation’s Las Damas de laPlaza group; MJ Dornford of Zim Lines;Mary Lockington of Lockington LawGroup; Dennis McConkey, Jalate Inc.;Brad Miles, INCO Commercial; Jan Miller,Long Beach Area Convention & VisitorsBureau; Mark Taylor, Office of MayorRobert Garcia; Machelle Thompson, KeenHome Care; Rick Trice, community leader;and Ray Burton, professor emeritus (re-tired), Long Beach City College.

Long Beach Community Foundation Adds New BoardmembersFour new members have joined the LongBeach Community Foundation (LBCF)Board of Directors: Michele Dobson, An-nette Kashiwabara, Walter Larkins andJudy Ross. Dobson is a Long Beach attor-ney practicing employment law, estateplanning, civil litigation, nonprofit eepre-sentation, probate law, family law andcriminal law. Annette Kashiwabara is thedirector of development at the AssistanceLeague of Long Beach. Walter Larkins isthe president of CDR Benefits & InsuranceLLC & CDR Financial Services LLC andserves as the executive Director of E=O2Foundation. Judy Ross is the former exec-

utive director of the Long Beach NonprofitPartnership. “We are so pleased to welcomethese new boardmembers, who are philan-thropic-minded leaders and truly under-stand the unique needs of our diversecommunity,” Board Chair Jane Nethertonsaid in a statement. Boardmembers serveup to three, three-year terms. The founda-tion is a “nonprofit, public organizationwith over $25 million in assets and 96 char-itable funds, whose mission is to initiatepositive change for Long Beach throughcharitable giving, stewardship, and strate-gic grantmaking with a vision of being thepreeminent steward of endowments servingthe needs of Long Beach in perpetuity.”

Bohn Named To AIA’s Board Of DirectorsStudio One Eleven Principal Michael Bohnwas recently elected to serve a two-yearterm on the board of directors for theAmerican Institute of Architects LongBeach/South Bay chapter. According to astatement released by the organization,Bohn was chosen because of his ideas toexpand the organization’s exposure. “Mygoal is to provide outreach to the commu-nity on the importance of design,” Bohnsaid in a statement. “I’m excited to providea bridge with the City of Long Beach andother cities as a resource for our expertise.”

Cook Serving Second Term As President Of Las DamasBeverly Cook is serving a second consec-utive year as president of Las Damas de laPlaza, a support group of the CommunityHospital Long Beach Foundation that hasraised nearly $2 million since being formedin 1984. Other officers are: Dr. Vonda Lia,vice president; Jan Young, recording secre-tary; Sheila Cantrell, treasurer; MarilynLonsdale, parliamentarian; Phyllis Bowles,hospitality chair; Emily Chronister, mem-bership chair; Nina Spradling, nominatingchair; Fran Bylund, event coordinator; andChristy Roeber, in charge of press, photog-raphy and Las Damas history.

Two Businesses Celebrate15-Year Anniversaries

Alex’s Bar at 2913 E. Anaheim St. and

Archibald’s Drive-thru restaurant on 2nd

Street in Belmont each recently celebrated

their 15 anniversary. Alex’s Bar, owned by

Alex Hernandez, has evolved into a popular

music venue featuring punk rock, reggaie,

indie, rock, Latin and other genres. For more

information, call 562/r434-8292 or visit:

www.alexsbar.com. Archibald’s is a family

owned business with five locations: Chino

Hills, Lake Elsinore, Ontario, Victorville and

Long Beach. Its menu ranges from Greek to

South of The Border to All American, ac-

cording to its website: www.archibald-

srestaurantdrivethru.com. The Long Beach

location may be reached at 562/434-0444.

It’s open for breakfast, lunch and dinner.

Assemblyman O’DonnellTapped For Several Committee Assignments

California Assemblyman Patrick O’Don-

nell, who represents the 70th District, which

includes Long Beach and Signal Hill, an-

nounced recently that he was appointed

chair of the Assembly’s Select Committee

on Ports and Aerospace. The 70th District

includes the ports of Long Beach and Los

Angeles. O’Donnell, a classroom teacher,

has also been tabbed to chair the Assembly’s

Standing Committee on Education. He also

serves on the Assembly's Budget, Judiciary,

Transportation, and Public Employees Re-

tirement & Social Security Committees. In

late January, the freshman assemblyman in-

troduced his first bill, Assembly Bill 204,

which allows local governments to continue

to control the dissolution and sale of long

time properties obtained under the former

redevelopment law. In a press release, O’-

Donnell said, “This bill helps local gov-

ernments avoid costly delays in the

conduct of property sales by ensuring local

oversight control and is sponsored by the

City of Long Beach.”

Windes Names Winner Of Its Semiannual Corporate Gallery AwardThe Long Beach-based accounting and con-sulting firm Windes announced that LesleyKice Nishigawara is the most recent winnerof the firm’s Corporate Gallery Award. The

award is presented semiannually to a “grad-uate student in the Studio Arts Program atCalifornia State University, Long Beach . .. and is intended to actively encourage andsupport graduate art students and theirwork.” Nishigarwara earned her bachelorsof fine art from the Kansas City Art Insti-tute and is currently a masters of fine artstudent at CSULB. Her winning artwork isa silk organza and thread form titled “Ma#1.” It is on display in the firm’s office, atthe Landmark Square office tower inDowntown Long Beach.

David Sanborn Concert AtCarpenter Center March 15; Proceeds Go To Fighting PolioSaxophonist David Sanborn, a six-timeGrammy winner, is performing March 15 atthe Richard and Karen Carpenter Perform-ing Arts Center at 2 p.m. on March 15, withtickets starting at $40 (562/985-7000). San-born, a polio survivor, and the Center are do-nating proceeds from the concert to RotaryInternational’s End Polio Now Campaign.

IN THE NEWS

Vision To Learn Launches Initiative To Give Free Glasses To Thousands Of Long Beach ResidentsVision To Learn, a non-profit organization pro-viding free glasses andeye exams to low-in-come Californians,kicked off an initiativeto serve more than8,000 Long Beach chil-dren and their familiesin an event at WhittierElementary School lastweek. Long BeachMayor Robert Garcia,Long Beach UnifiedSchool District staff andlocal sponsors of thefoundation, includingexecutives from the Cal-ifornia Resources Cor-poration, joined VisionTo Learn Founder AustinBeutner to launch the ef-fort by distributing 60 free pairs of glasses to Whittier Elementary students. California Resources Cor-poration and the UniHealth Foundation, a grant-making organization, donated a combined $100,000for the Long Beach initiative. The foundation operates from mobile clinics outfitted with eye exam equip-ment and an array of frames for beneficiaries to choose from. “I grew up wearing glasses and still wearthem today,” Garcia said at the event. “We want to ensure that every kid has the same opportunity tolearn and succeed in school.” (Photograph by the Business Journal’s Thomas McConville)

Jodi Hein Appointed Vice President/Chief Nursing Officer At St. Mary Medical CenterLong Beach resident Jodi L. Heinwas recently appointed as vice pres-ident and chief nursing officer of Dig-nity Health St. Mary Medical Center.Hein comes from Promise HospitalEast Los Angeles, where, as the chiefnursing officer and chief clinical offi-cer, she oversaw nursing and admin-istration for the hospital’s Paramountand Los Angeles campuses. She isnot new to St. Mary; she worked atthe hospital from 1980 to 2001 invarious roles, including neonatal in-tensive care unit nurse, director ofperinatal services, and manager ofpost-partum, ante-partum, gynecol-ogical surgery and newborn nurs-ing. Hein holds several degrees,including: an associate’s degree innursing from Long Beach City Col-lege; a bachelor’s degree in healthand human services from CaliforniaState University, Long Beach; a mas-ter’s in health administration from Chapman University, a master’s in nursing from the University of Phoenixand a doctorate in nursing practice from Samuel Merritt University. In a statement, St. Mary President andCEO Joel Yuhas said, “Her broad management and clinical experience, coupled with her understandingand support of St. Mary’s mission and tradition of caring, made Jodi an excellent choice for the chief nurs-ing executive position.” (Photograph by the Business Journal’s Thomas McConville)

Michael Christensen

1_LBBJ_MARCH3_2015_PortAnniversary 3/4/15 10:52 AM

March 28 Long Beach Business Journal March 3-16, 2015PERSPECTIVES

knowledge is The Best Weapon

To Prevent colorectal cancer

Most people don’t realize that colon cancer is the second leadingcause of cancer death in the U.S. and even fewer people realize

that there are actually seven different types of colon cancer. Each typeis different and presents itself in its own unique way so it is importantto be aware of each one and know how to help prevent it.Colorectal cancer starts in the inner lining of the colon and/or rec-

tum, slowly growing through some or all of its layers. Colorectal cancertypically starts as a growth of tissue called a polyp and certain polyps

can develop into cancer. Some of the different types it can develop into are:• Adenocarcinomas –Adenocarcinoma is the most common type of colorectal cancer

and it represents more than 95 percent of all colon and rectal cancers. It typically startswithin the intestinal gland cells that line the inside of the bowel wall.

• Gastrointestinal carcinoid tumors – These tumors account for just one percent ofall colorectal cancers, but half of all of the cancers found in the small intestine.

• Primary colorectal lymphomas – This type usually occurs later in life, is morecommon in men than women and accounts for about one percent of all colorectal cancers.

• Gastrointestinal stromal tumors – The tumors start in a special cell found in thelining of the gastrointestinal tract. More than 50 percent of stromal tumors start in thestomach.

• Leiomyosarcomas – Leiomyosarcoma is an infectious tumor that arises from smoothmuscle cells. This accounts for about 0.1 percent of all colorectal cases.

• Melanomas – Though most commonly associated with the skin, melanomas canoccur anywhere, including the colon or rectum and accounts for about two percent of allcolorectal cases.

• Squamous cell carcinomas – This type is most common for people in their 70s andit is twice as prevalent in men than women. As important as it is to know all the types of colorectal cancer it is just as vital to know

how they can be prevented. If everyone 50 years or older had a regular screening test, as many as 60 percent of deaths

could be prevented. This is why the U.S. Preventive Services Task Force recommendsscreening for colorectal cancer beginning at the age 50 and continuing until the age of 75. The most common type of screening for colorectal cancer is a colonoscopy. For this

test, the doctor uses a longer, thin, flexible, lighted tube to check for polyps or cancerinside the rectum and the entire colon. Some cancer can be found and removed duringthis test which should be done every 10 years. There is no single "best test" for any person. The importance of each test depends on

your unique situation/condition. It is important to talk regularly with your doctor, gas-troenterologist or surgeon to ask about these different types of colorectal cancers, thedifferent screening tests available and when is the best time to begin screenings. Know-ing this, and being proactive about your health, may just save your life. (Imad Shbeeb, M.D., is the medical director, colorectal cancer program, Memorial-

Care Todd Cancer Institute, Long Beach Memorial.)

4 Ways To develop

A Bug-Free Mind

We accumulate beliefs over time.Mixed in with good beliefs are

also some bad beliefs – ones we pick upalong the way. Getting rid of those bugsequips us to live a healthy life.Young toddlers do this without even

thinking about it. Learning to walk isone of the most difficult skills to ac-

quire. If every adult in the world lost the ability to walkand had to learn all over again, we’d have a world over-crowded with wheelchairs.Toddlers make it look easy. What we don’t notice is

their mindset not to give up. They continue to push for-ward fall after fall. They keep going until they succeed.The majority of adults in the world would opt for thewheelchair.I recently heard two scientists talk about the Principle

of Pull.Every cell in a tree, caterpillar, and even human be-

ings, grows and develops, not based on its history, butby being pulled towards its possible future.The pull is internal and it’s programmed. Our lives are

enhanced, in large measure, by having a powerful visionof the future. The more compelling the vision the morepowerful the pull.Here is the problem.As we age we begin to lose our natural ability to use

our skills. Adults having to learn to walk again would re-sult in wheelchair gridlock. We develop thinking virusesthat impact our abilities. They lower our expectations.• Walking is too difficult. • I can’t do it. • Where’s my wheelchair?When I was in junior high I planted tomatoes in the

backyard for a science project. I went out each afternoonand made the effort to get the bugs off the leaves. Theykept showing up and were impeding the growth of ahealthy tomato plant. So I made a daily habit of debug-ging them.In the same way we have bugs in our brains that retard

our success. So the first step in debugging is to be awareof the pesky things. What are my doubts, my worries, myfears? What makes me anxious? Be specific as you spotthe bugs.If babies doubted they could ever walk, most of them

wouldn’t have. But they were doubt-free. Put them in awheelchair and watch how quickly they get out!

You’ve proven it over and over again that you can besuccessful. So just check for the bugs.Here are four ways to debug your mind: 1. Monitor your thoughts. They will either move you

forward or backward. “Why am I thinking this way? Isit helping me? How is it hurting me? Much of your life’sjourney is born out of your thoughts.2. Change your thinking. Plant your thought-seeds

today knowing they will impact your life tomorrow. If itdoesn’t challenge you, it won’t change you. Changebreeds growth. 3. Observe your doubts. Your observations are more

powerful than your doubts! Your awareness drains theirpower. You are observing them and saying, “this has novalue for me.” Whether it was a bad experience in child-hood, or a grudge you are holding, or just lazy thinking.You can now choose to let them go.4. Deploy your best self. As you observe your doubts,

your positive beliefs – the best parts of yourself – willfuel your growth. You are being a parent of your future,and not just an offspring of your past.Bugs naturally gravitate to healthy plants and people.

Make it a daily habit to knock them off.(Mick Ukleja keynotes across the country on topics re-

lated to leadership. He is president of LeadershipTraq andauthor of several books, including co-author of Managingthe Millennials. His clients have included Fortune 500 cor-porations and non-profit organizations. Check his weeklyblog at www.leadershiptraq.com.)

HealthWise

By iMAd

ShBeeB, M.d.

Effective Leadership

By Mick

UklejA

Getting Approved For A Business loan

As a banker, it’s my goal to bring clarity to the process of getting aloan, and explain what it takes for a business to get a loan. Fol-

lowing are some factors to consider. Looking at personal and business credit history helps us determine

if the borrower has successfully handled credit. On the personal side,a lender will look the history of credit management including the FICOscore. A lender also will want to know whether the business applyingfor credit has paid its business obligations in a timely manner.

That’s why a deep tenured business and personal credit and deposit relationship witha bank can make a difference. When you pursue a loan at a bank that knows you, abanker can see your possible overdrafts, current balances relative to 12-month averagesand annual sales to better determine whether your business has strong enough cash flowfor new credit. This helps tell the lender whether the business is credit-ready.When a lender sees the owner invest money in the business, it shows there is a com-

mitment to succeeding. What’s more, a business owner with assets that can be convertedinto cash in case of a sudden downturn in revenue will be better able to operate his orher business and repay debt. A lender wants to see that the assets of the business suffi-ciently exceed its liabilities, and to understand how quickly and easily those assets canbe turned into cash.Economic factors, such as the strength of the housing market for businesses that are

tied closely to this important sector, will factor into the bank’s confidence in lending tothose segments. Business and personal factors come into play here as well. Is the ownersomeone who has extensive experience in the industry or is he relatively new? In somecases, business references and education are personal factors that can affect conditions.These conditions can be important indicators of a business’ ability to survive and thrive,and therefore its ability to repay its credit obligations.Collateral can include personal assets – like investments and CDs – and business as-

sets – such as real estate, inventory, equipment and accounts receivable but doesn’t re-place good payment history or showing your ability to handle the proposed debt level.Before extending a loan, a banker wants to make sure a business has the ability to repaya loan given its other pre-existing loan or payment obligations. Typically lenders lookfor a business seeking credit to have a debt-to-income ratio of no more than 40 to 50percent, depending on the credit score.Profitability and cash flow are essential components of capacity. A business must

have enough positive cash flow to meet both short-term and long-term commitments. Understanding these factors will give you a pretty good idea what it takes to get a

business loan. Small business approval rates are increasing, and the reason should comeas no surprise. Healthier businesses, better balance sheets, and stronger revenues meanmore businesses today qualify for credit.Now, it’s up to all of us in banking to keep spreading the word about how more small

businesses can get credit-ready before pursuing a loan.(Ben Alvarado, a 23-year veteran of Wells Fargo, is the president of the bank’s

Southern California Region, which stretches from Long Beach to Orange, Imperialand San Diego counties.)

Small Business Dollars & Sense

By Ben

AlvArAdo

PERSPECTIVES


March 3-16, 2015 Long Beach Business Journal 29PERSPECTIVES 2015

Apartment reiTs

Providing High returns

Rental properties usually do well in a slowerhousing market – especially here in Cali-

fornia where the statistics indicate that, sincethe beginning of the recession, the number ofrental units being built is not keeping up withthe increase in demand.As an example, the number of rental house-

holds nationally has surged by a record two mil-lion households over the past four quarters –

attributed mainly to the growth in job creation – while the numberof new apartments being built each year by developers per year isonly in the range of 300,000 to 350,000 per year.It is easy to see why this supply and demand ratio is good for

apartment owners and developers, and it is equally good for thesecuritized multi-family Real Estate Investment Trust (REIT) seg-ment of the stock market, which is booming and showing greatnumbers to start off this year.Apartment REITs delivered a 6.96 percent return to investors

in January alone, including a 2.88 percent return from dividends,according to the National Association of Real Estate InvestmentTrusts (NAREIT). That’s a very high return for just one month –for many real estate investments, about 7 percent would be an ac-ceptable return for an entire year. In comparison, the S&P 500 fell3.0 percent in January.Investors in apartment REITs may be getting used to very strong

returns after receiving an astounding 39.62 percent total return in2014, including a dividend yield of 2.88 percent. That’s comparedto a 14.22 percent for the S&P 500. Apartment REITs also did bet-ter than all-equity REITs overall in 2014, which earned a total re-turn of just 28.03 percent.“This is clearly a solid time for the whole multi-family REIT

sector,” said Calvin Schnure, an economist and senior vice presi-dent of research and economic analysis for NAREIT. “This is thebiggest increase in rental occupancy rates since the Census Bureaubegan tracking data in 1965.”Schnure estimates there are three million or more “shadow

households” in the form of people doubled-up with roommates orfamily members. These individuals are likely to search for their

own apartments as they get first jobs, better jobs or raises. REITsare in a strong position to capture these new renters.Affordability is the biggest thing holding back apartment REITs

– and the broader apartment market. “The number of renters pay-ing 30 percent or more of their income on rent is high,” Schnuresaid. “That is putting a cap on rent growth, which puts a cap onearnings growth for apartment REITs.”The future outlook for REITs is very strong despite the latest

trend in increased building of rental units and a slower pace ofrental rate increases last year. “I am not at all worried about newsupply,” Schnure added. “This growth in rental demand is likelyto outpace the new supply of apartments in the pipeline, support-ing the outlook for multi-family housing stocks.”The markets across the U.S. that are attracting investments from

REITs also appear to be changing. It now appears that secondarymarkets are attracting a larger share of the investment pie aftermajor markets were favored just two years ago, and the theory isthat the lower capitalization rates in the smaller markets makethese properties more attractive, along with an improvement in thegeneral economy in these secondary markets.“There seems to have been a shift back into secondary markets after

being very focused on major markets during 2013,” explained BenCarlos Thypin, director of market analysis for Real Capital Analytics.REITs made 35.91 percent of their purchases in secondary marketsin 2014, up from 24.05 percent in 2013. With the exception of 2012,that’s the biggest concentration on secondary markets that the REITshave shown since 2009. Before the housing crash, REITs regularlymade well over a third of their purchases in secondary markets.In looking over the Top 10 markets for 2014 for multi-family

REIT investment, the local Los Angeles-Long Beach-Anaheimmetro area leads the way with 32 properties and 8,778 total rentalunits. This is far and away ahead of second-place Seattle-Tacoma-Bellevue Washington with 21 properties and 4,672 units. Third isSan Jose-Sunnyvale-Santa Clara (10 properties, 3,922 units), fol-lowed by San Francisco-Oakland-Hayward (13 properties, 3,885units), San Diego-Carlsbad (9 properties, 2,724 units), OklahomaCity (5 properties, 1,658 units), Atlanta-Sandy Springs-Roswell (6properties, 1,650 units), Louisville/Jefferson County KY-IN metro(5 properties, 1,549 units), Memphis metro (3 properties, 1,190units) and Dallas-Fort Worth-Arlington (3 properties, 1,088 units).Given the numbers, it would appear that the apartment market

will remain strong for either direct investment or through the REITmarket for the foreseeable future.(Terry Ross, the broker-owner of TR Properties, will answer any

questions about today’s real estate market. E-mail questions to Re-alty Views at [email protected] or call 949/457-4922.)

By Terry

ross

Realty Views

now What?

The Southern Califor-nia trade community

breathed a sigh of reliefwith the recent news thata tentative agreement hadbeen reached betweendockworkers of the Inter-national Longshore and

Warehouse Union (ILWU) and the PacificMaritime Association (PMA) which rep-resents ocean carriers and terminal oper-ators. The PMA-ILWU contract isactually coast wide, covering ports up anddown the West Coast. But there’s no doubtthat the line-up of 30-plus ships waitingto get in to the San Pedro Bay ports wasthe big story coming out of the back-and-forth between the two sides, a back-andforth that actually shut down the ports fora number of days.Because of the size of our ports and the

role they play as a gateway for productsfor the rest of the nation, L.A. and LongBeach serve as the proverbial canary inthe coal mine for U.S. trade. When wesuffer, it’s likely that the country suffers

as well. This was a point made by MikeJacob, the vice president and generalcounsel of the Pacific Merchant ShippingAssociation (PMSA) at the February 24California Maritime Leadership Sympo-sium in Sacramento. He argued that adecline in market share for Los Angelesand Long Beach is not necessarily goodnews for other US ports. Recent historyhas proven that the winners, at our ex-pense, might just be Mexican and Cana-dian ports.That’s why the sudden exhale should

probably be brief. The labor problems atthe ports were only one cause of the re-cent congestion woes. The others includea shortage of chassis driven by changingbusiness models for ocean carriers,larger vessels creating peak demands forboth labor and equipment, and bottle-necks at not only the docks but outsidethe gates as well.What we have is not just a port prob-

lem, or a labor problem, but a supplychain problem. And solving that kind ofproblem is more difficult than even a con-tract negotiation because it involves agreater number of actors over a wider ge-

ographic area with many competing inter-ests (even if they’re all presumably in thebusiness of moving goods).Discussions at the Symposium sug-

gested a few places to start. For one thing,the Ports of Los Angeles and Long Beach- while competitors – have a shared inter-est in eliminating the delays broughtabout by equipment shortages. And both,with the approval of the Federal MaritimeCommission, are developing a coopera-tive working agreement to tackle chassissupply and storage along with other vex-ing problems like trucker turn time whichare often related.But you don’t want to just move the

bottleneck and delay further down thesupply chain. That’s why, I think, therewas also a fair amount of discussionabout the need for a robust NationalFreight (including ports) Policy that iden-tifies a dedicated funding source forfreight-related projects that removes cum-bersome restrictions on financing infra-structure improvements across modes oftransport. And one that, not surprisinglyfor a room full of Californians, makes thepolitically bold decision to prioritize proj-ects where the need is greatest. Thatmeans not cutting things too thin in orderto give every place a piece of the pie forpolitical reasons. The argument may be atough one to make, but if the health of the

U.S. economy really does depend on thestrength of the California trade gateway,then the right investments can have posi-tive downstream effects.One other point that Jacob made had to

do with the focus of freight planning. Heargued that growth in the trade sector ac-tually pays for the infrastructure develop-ment needed, and that a good freight plan– even one with a focus on sustainability– needs to make growth the key measureof success. In the absence of this, the Planhas limited ability to actually bring aboutits intended result.For the audience in Sacramento, fresh

from the recent battles played out in boththe negotiating room and in the press, theargument seemed to resonate. But morebattles lie ahead. What happens when, forexample, the state tries to integrate thefreight planning efforts of Caltrans andthe Air Resources Board remains to beseen. Getting a new ILWU contract is amajor step but we have more than enoughreminders that the ports are just one linkin a global supply chain and you whatthey say about only being as strong asyour weakest link.(Dr. Thomas O’Brien is the executive director

of the Center for International Trade and Trans-portation at CSULB and an associate directorfor the METRANS Transportation Center, apartnership of USC and CSULB.)

Trade And Transportation

By Tom o’Brien

EDITOR & PUBLISHER

George EconomidesSALES & MARKETING EXECUTIVE

Heather DannGRAPHIC DESIGNER

Chris R. WeberOFFICE ASSISTANT

Larry DuncanEDITORIAL DEPARTMENT

SENIOR WRITER

Samantha Mehlinger STAFF WRITER

Dave WielengaCONTRIBUTING WRITERS

Michael Gougis, Jack HumphreyPHOTOJOURNALIST

Thomas McConvilleCOPY EDITOR

Pat FlynnThe Long Beach Business Journal is a publication ofSouth Coast Publishing, Inc., incorporated in the Stateof California in July 1985. It is published every otherTuesday (except between Christmas and mid-January)– 25 copies annually. The Business Journal premieredMarch 1987 as the Long Beach Airport Business Jour-nal. Reproduction in whole or in part without writtenpermission is strictly prohibited unless otherwisestated. Opinions expressed by perspective writers andguest columnists are their views and not necessarilythose of the Business Journal. Press releases shouldbe sent to the address shown below.

OfficeSouth Coast Publishing, Inc.2599 E. 28th Street, Suite 212

Signal Hill, CA 90755Ph: 562/988-1222 • Fx: 562/988-1239

www:LBBusinessJournal.comAdvertising and Editorial Deadlines

Wednesday prior to publication date. Note: Press re-leases should be faxed or mailed. No follow up calls,please. For a copy of the 2015 advertising and editorialcalendar, please fax request to 562/988-1239. Includeyour name, company and address and a copy will besent to you. Distribution: Minimum 22,000.

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Business Journal SubscriptionsStandard Bulk Rate: $28.00

1st Class: $70.00(25 issues–1 year)

Vol. XXVIII No. 4March 3-16, 2015

PERSPECTIVES

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ART MATTERSBrought To You By The Arts Council For Long Beach

Long Beach Business Journal 30March 3-16, 2015

Gallery Corner Art exists in many environments, a statement that local artist, Hillary Norcliffe, knows

remarkably well. Norcliffe removes the boundaries between art and life by working out-

side a traditional gallery to facilitate healing via art. From 2009-2010, Norcliffe spent her

Saturday mornings drawing sketches of each guest waiting to use the services provided

by the Shower Program at St. Luke’s Episcopal Church. The Shower Program provides

hot showers, clean clothing, and a meal to homeless individuals four Saturday mornings

a month. After the sessions, she photocopied the drawings and displayed the over 65

pieces of art on the hallway wall. This makeshift gallery transformed into a regular place

for pause as weekly guests identified unnamed portraits and drew connections from one

face to the next. In 2014, Norcliffe received funding from the micro-grants program at

the Arts Council for Long Beach to revamp the wall. Norcliffe cleaned and updated the

wall to give the space a permanent presence and keep these stories alive. The wall has

become a place of reflection that honors the Shower Program’s guests and helps build

community. To see more of Hilary Norcliffe’s work, please visit her website atwww.hi-

larynorcliffe.com. If you would like to volunteer to help the Shower Program, please con-

tact Gail Mutke at [email protected] or call the church office at (562) 436-4047.

� By LAURA SARDISCOArts Council for Long Beach Staffmember

Art has the power to move and transform us, to in-

spire and uplift us, but also the power to help heal.

So much of the work created in Long Beach builds

on that understanding. Whether a symphony brings an au-

dience near to tears or a theatre piece opens up laughter

and joy in a patron’s life. The ability to use art as a mecha-

nism of healing is the premise of the Museum of Latin

American Art’s (MoLAA) current exhibit, TRANSFORMA-

TIONS. This exhibit matches the healing power of art while

documenting how five local individuals were transformed

by important and challenging moments in their lives.

Carlos Ortega, Curator of Collections at MoLAA, sought

to “create something relevant that affects all of us individ-

ually and as a community.” An open call for community

members to share a life-changing event received 53 appli-

cations. Carlos and a curatorial team interviewed 10 final-

ists to arrive at the final five participants. Selected

participants were given the opportunity to choose art from

MoLAA’s collection of over 1,500 pieces purely on the art-

works’ relationship to their transformation. Ultimately, art

played a central role in each transformation, becoming a

vehicle to help express certain feelings that otherwise

would be hard to convey to illustrate their stories.

One participant, Rocio (pictured) was born a talented

dancer in El

Salvador. At

age eight, she

was awarded a

scholarship to

ballet school.

Before en-

rolling, she

was shot by a

local gang. For

years she put

her life on hold, believing she would walk again. Rocio

eventually moved to the United States to be with her

mother. Soon after, she received treatment for Scoliosis

at Rancho Los Amigos. Here she “discovered another way

to dance- by being introduced to painting. [She] dance[s]

with [her] brushes.” Rocio’s transformation is pictured

here in the two images she chose.

After being diagnosed with breast cancer, Lorena

waited to have the major meltdowns. They never came.

Due to her family, faith, and medical team, she made

peace with cancer. During treatment, people around her

assumed she was well again because she went on with

the business of daily life. Only a few family members

asked how she was. Those rare moments were appreci-

ated most, because they acknowledged reality. Lorena

hopes that her story can inspire others to get a breast

exam and believes, “timing is everything with cancer, and

you won't know until you see a doctor.”

Kendell Carter was commissioned to create a living room

within the museum as a space for visitors to reflect upon

and share their own transformations. Take some time to

get to know your neighbors, share your story with others,

and be inspired to continue on your own path in life.

For MoLAA this is not a new concept as the organization’s

history is entrenched in the belief that art can play a healing

role in our lives. Before becoming a museum, MoLAA’s

building served as Senior Health Center. MoLAA’s founder,

Dr. Robert Gumbiner created the HMO Family Health Pro-

gram (FHP) in Long Beach. He believed that art had thera-

peutic properties and created an art gallery within the

senior health center. TRANSFORMATIONS supports Dr.

Gumbiner’s beliefs and demonstrates how art provides

meaning to our lives and helps overcome challenges.

TRANSFORMATIONS is on display at MoLAA through

May 24. For more information visit MoLAA’s website at

www.molaa.org. �

Arts For Healing

Why Serving On Nonprofit Art Organization BoardsMakes A Difference � By SARAH BENNETTArts Council for Long Beach Contributor

The lively performances and whimsical exhibi-

tions presented by Long Beach's many arts or-

ganizations might feel light years away from the

pencil-pushing meetings of corporate boardrooms, but

the two worlds remain indelibly connected through the

formers' boards of directors.

Every nonprofit organization is required to have a

board – a group of people passionate about the orga-

nization's cause who meet every so often to provide

input and direction for its various goals, programs and

needs. Especially in the arts realm, it's important to fill

boards with people from a variety of backgrounds,

from donors and private citizens to corporate employ-

ees with specialized skills.

“I've added value to the arts organization and in re-

turn, I've gotten a lot of satisfaction out of helping

the arts organization,” says Kathy Fishkin, chief finan-

cial officer of Rich Development in San Pedro. Fishkin

has been on the board of the Arts Council for Long

Beach for nearly a decade, bringing her fiduciary ex-

perience to the nonprofit.

For companies with outreach and community en-

gagement goals, having an employee on the board of

an arts organization can help further that mission. En-

ergy company Valero, though based in Wilmington, has

long supported and enhanced community arts oppor-

tunities in Long Beach. Steve Faichney, its director of

government affairs, sits on the boards of International

City Theatre and the Long Beach Symphony, which

brings performing arts into area schools.

“We don't do it for a lot of the hand waving,” Faich-

ney says. “We do it because it's the right thing to do.

You're enhancing educational opportunities and you're

enhancing the organization.”

Jim Preusch, chief financial officer for the Alameda

Corridor Transportation Authority, is also on the In-

ternational City Theatre's board. Beyond serving the

outreach goals of his company, he says being a cor-

porate representative on an arts organization's

board allows him to lend support for the public ben-

efits ICT provides.

“It's simply good to be able to give back and good

to encourage your employer to give to the commu-

nity,” Preusch says.

Most important for a corporation that is looking at

lending an employee to be board member, however,

is that the person has a big interest in the organiza-

tion they are helping guide.

“I collect art. I love art. I have a personal connection,”

Fishkin says. “Corporate people should select the type

of organization that appeals to them a great deal. You

have to be motivated and you've got to be inspired.”

If you are interested in learning more about serving

on an arts organization board, contact your favorite

local nonprofit. �Hillary Norcliffe’s Shower Wall Project at St.Luke’s Episcopal Church.

Tatiana Parcero: Re-Invento #25 (Rocio’s pre-transformation image)

Photography By Mick Victor/COTU MEDIA

Jorge Martinze detail of Sueño con esa silla(Rocio’s post-transformation image)


What I amabout to saymay soundodd to somebusiness own-ers - the re-turn oninvestment oftime or fundsthat they giveto a nonprofit.To me it makesperfect sense.In fact, I thinkthat it is agreat returnon investment.

Please allow me to explain.Simply stated, business owners

are motivated by profit. No sur-prise there. So what’s the connec-tion with return on investment, orROI, with a local nonprofit? Thereare many. Some of the best adver-tising I have done for my businessdoesn’t involve a print ad or a tar-geted email or a stamped envelopein a direct mail campaign. Instead,it involves people getting to knowme through our shared experienceworking with, or for, a nonprofit.

There are personal reasons aswell. One is my current commu-nity leadership role is as Presidentof the Rotary Club of Long Beach.One of the many communitytasks I do each month is a parkcleanup at our Rotary CentennialPark. Fellow Rotarian Randy Gor-don, put it well, “In the humblejob of picking up trash with oth-ers, you get the chance to knowone another on a different andmeaningful level.”

If you are in a professional serv-ices business, what are the twothings a prospect wants to knowabout that professional? 1) Is theperson competent in their field?and, 2) Do I trust and like thisperson? In today’s web-basedworld, one’s professional creden-tials, continuing education, etc. isout there for theworld to see andcompare. The lat-ter is sometimesthe more difficultto discern. How-ever, a personalrecommendationbased on experience is invaluable,whether it is word of mouth, a re-ferral, or a testimonial from awebsite.

For me and many of myfriends, the benefit of workingwith a nonprofit far outweighsthe time and money donated tothe charities. The key is truly be-lieving in the mission and visionof the nonprofit. It should beand/or inspire your passion. Ihave clarity in that matter. I havea clear notion to work with ourcommunity’s youth. They are ourfuture. It’s fun. More importantly,it is ‘Fun with a Purpose.’

So, it should not be surprisedthat my commitments of time andmoney are dedicated to nonprofitsthat serve youth. I grew up in aYMCA program. I loved it. I madelife-long friends and met my wifeAnna while at Camp Oakes in thesummer of 1978. We’re still to-gether, by the way. and she de-serves a medal. But that’s another

column.). While I was never ascout as a kid, I got involved asan adult volunteer. I have fondmemories of watching those kidsgrow including one young man,Tony, who earned his merit badgeon Insect Study and is now an et-ymology major at the Universityof California. I also support the

and feel stronglyabout the missionof the Long BeachDay Nursery as itprovides a safeplace for workingparents to placetheir pre-school

child while they earn a living. Pro-grams like those offered by thenonprofits I mentioned help de-velop character, confidence andschool-readiness of the youththey serve and can even supportthe economic development andsecurity of their families.

If you find a nonprofit whereyour heart soars in the service ofothers it is virtually assured thatyou will be at your best while you

are engaged with that nonprofit.You will shine and others will seeit in you too. They will get a fullmeasure of who you are and willbe able to make a well informeddecision on working with youshould they require your field ofprofessional services.

It’s a Win-Win-Win situation.Think about it. The nonprofit getsa terrific volunteer, a partner, apatron. You have the opportunityto fulfill a part of you that makesyou truly whole. Your kids andfamily members get to observeyou modeling good communityleadership. And, from a purelyprofessional standpoint, you get topromote your professional busi-ness services. What’s not to love?

So go ahead, look around thisterrific community we call LongBeach and find a nonprofit thatshares your values. We all win.And that ROI, the one that I men-tioned at the beginning of this ar-ticle, will be as clear as thespreadsheet in the pupil of youreye. Trust me!

THE NONPROFIT PAGECurated By The Long Beach Nonprofit Partnership

The area’s regional capacity builder, serving local organizations to strengthenand grow through leadership, education and collaboration. Offering:

Professional Development & TrainingNetworking & Collaboration

Custom Training & Consulting ServicesInformation Resources

To learn more, visit us at www.lbnp.org.4900 East Conant St., Building O-2, Suite 225, Long Beach, CA 90808

562.888-6530

Capacity Corner: Upcoming Calendar of EventsFrom the Nonprofit Partnership

Human Resources: Employee Recruitment and Selection,March 5, 2-5 PMLearn practical recruitment and selection techniques, interview questions andstrategies.

Human Resources Certificate, March 12-April 16, 2-5 PMThis six-day certificate program provides skill development and knowledgefor HR administration and management. It is hosted by the San Pedro Cham-ber of Commerce and is held in San Pedro.

Fund Development Certificate, March 19, April 2 & 9, 9 AM–4 PM During this three-day certificate program you will create a fund developmentplan through interactive hands-on activities while receiving feedback on apreviously written grant and/or fundraising proposal.

From our PartnersDirectors of Volunteers in Agencies-Los Angeles (DOVIA-LA)March 20, 9:30 am to 12 noonSuccessfully Implementing Volunteer Program Changes with presenter Jen-nifer Bennett, CVA Senior Manager, Education & Training at VolunteerMatch.For more info visit: doviala.org.

Save the Date: CalNonprofits 2015 Policy ConventionNovember 4, City of OaklandFocusing on the economic and political forecast for California’s nonprofit sec-tor. For more info, visit: calnonprofits.org.

Nonprofits: The Return on Investment for Business Owners

Brian C. RussellPresident, Rotary Club

of Long BeachVice PresidentColdwell Banker Commercial

BLAIR WESTMAC

Investing in a non-

profit is a great in-

vestment for your

business

Looking to Volunteer?There are a myriad of opportunities to volunteer for local nonprof-

its; from helping to staff a one-time charity event to serving on a

board of directors. Think about your passion. Think about what in-

spires you. Think about the skills you offer. Think about your time

constraints. Talk to your friends. Consider anyone else whom you

might want to involve.

Three great resources to consider when looking to give your time

and skills:

• VolunteerMatch

• Volunteer Center of South Bay-Harbor-Long Beach

• LinkedIn

VolunteerMatch offers service opportunities for nonprofits through-

out the nation and provides an easy to use online database. There

are currently 2,140 volunteer opportunities listed in Long Beach and

another 5,226 virtual ones. Visit volunteermatch.org.

For service listings at the local Volunteer Center of South Bay-Har-

bor-Long Beach visit http://volcenter.org.

If you are interested in volunteering by serving on a local or na-

tional board of directors or, if you would like to offer your skills-

based consulting services pro-bono to a nonprofit, be sure update

your profile on LinkedIn. LinkedIn has an entire section in which you

can identify what skills /services that you would like to donate to a

nonprofit. Visit LinkedIn.com.

Long Beach Business Journal 31March 3-16, 2015

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