July 8-21, 2014 Section A

July 8-21, 2014 lbbusinessjournal.com

HealthWiseBeating TheHeat DuringThe Dog DaysOf SummerSee 8

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

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Solar PanelsPermitting Power:The Battle OverResidential Solar Panels� By MICHAEL GOUGIS

Contributing Writer

I t seems like such a simpleidea: Stick some solar panels

atop your home, generate yourown electricity or hot water, savea few bucks.

But in practice, getting permis-sion to install solar panels on yourhome has turned out to be moredifficult than some in the industryand state government have antici-pated. Local governments, theysay, are a roadblock to the instal-lation of the solar panels that are akey factor in the state’s plans totransition to renewable, clean

New Port LeaderHarbor Commissioners Confirm Jon Slangerup As Executive Director

Greening The PortsLong Beach, Los Angeles Ports Continue ImplementingPolicies And Incentives For A Greener Future

Four events – all open to the public – are mark-ing the occasion of Robert Garcia preparing toserve as the new mayor of Long Beach.Following is the schedule as presented byGarcia’s Transition Team. For more informa-tion or to get involved, visit: http://celebrate-longbeachinaugurations.com/.

Saturday, July 12, 8 a.m.Day-of-Service: Tree PlantingGarcia and community members will plant 75 to 100 Crepe MyrtleTrees along Atlatnic Avenue and Artesia Boulevard in North LongBeach. Volunteers will gather at Houghton Park at 8 a.m.

Tuesday, July 15, 8 a.m.Interfaith Prayer ServiceAn Ecumenical Blessing for Unity Representatives of many faiths in Long Beach will provide bless-ings to the leadership of Long Beach at the Assumption GreekOrthodox Church, 5761 E. Colorado St.

Tuesday, July 15, 5:30-7 p.m.Ceremonial Swearing-in Mayor-elect Robert Garcia and other newly elected Long BeachCity officials will be sworn in at the Terrace Theater of the LongBeach Performing Arts Center, 300 E. Ocean Blvd. Enter offSeaside Way for free parking.

Tuesday, July 15, 7-10 p.m.Inaugural CelebrationA celebration that includes all elected officials is being held at thePacific Ballroom at the Long Beach Arena. The event is hosted byChildren Today.

Inaugural EventsMayor-elect Robert Garcia’sTransition Team Announces Series Of Free Public Events

Garcia Names Mark Taylor His Chief Of StaffMark Taylor, a former chief of staff to a city councilmember and mostrecently the director of college advancement, public affairs and gov-ernmental relations for Long Beach City College, has been named byMayor-elect Robert Garcia to serve as his chief of staff. “I’ve knownMark for 10 years and have had the opportunity to work with him on

numerous projects at Long Beach City Collegeand in the community. He’s smart, understandsthe legislative process, and is committed to mak-ing our city an even better place to live,” saidGarcia in a statement. “He will do a great job ofmoving my initiatives forward on economicdevelopment, education, open government, andcreating a safer and more livable city.”

Millworks On Pine Ahead Of ScheduleThe 1920s-era, six-story Meeker-Baker building (pictured), part of the Millworks project bounded by 6th and 7th Streets andPine and Locust Avenues in Downtown Long Beach, is being delivered four months ahead of schedule and under budget,according to Millworks Managing Partner Michelle Molina. The project includes the previously completed Press-Telegrambuilding. Around 800 Molina Healthcare employees are moving in throughout the summer, Molina said. Approximately1,200 people will eventually occupy the two buildings. This edition’s Section B includes the Business Journal’s Mid-YearEconomic Outlook. (Photograph by the Business Journal’s Thomas McConville)

� By SAMANTHA MEHLINGER

Staff Writer

T o promote cleaner air and water to benefit thelocal community and wildlife, the ports of

Long Beach and Los Angeles have over the pastdecade implemented a series of programs, incentives

and capital improvements aimed at reducing theirenvironmental impact.

“The commitment we made in 2005 [with] ourGreen Port Policy still drives our planning, buildingand operations today,” said Rick Cameron, the Portof Long Beach’s (POLB) managing director of envi-

(Please Continue To Page 14)

� By GEORGE ECONOMIDES

Editor & Publisher

H istorically, July is a big month for transitioning new leaders atlocal associations and civic groups, as new officers and board-

members are installed. In Long Beach, leadership changes are drawingextra attention this year as a new mayor and five new city councilmem-bers are sworn in next week. One of the most anticipated changes, how-


Al Moro, right, welcomes Jon Slangerup as the new executive director of the Portof Long Beach. Moro has served as interim director since late last year.(Photograph by the Business Journal’s Thomas McConville)


1_LBBJ_July8_SectionA_LBBJ MASTER LAYOUT 7/6/14 3:01 PM Page 1

INSIDE THIS ISSUE2 Long Beach Business Journal July 8-21, 2014

3 Newswatch4-Long Beach City Hall News In Brief4-Swearing-In Ceremonies July 155-Long Beach’s Citywide Elected Officials6-Civic Center Proposal: More Review6-BNSF Lawsuit Hearing Date August 67-Environmental Groups Challenge Port Plan To Export Coal

10 Going Green10-Household Hazardous Waste Collection Center12-Solar Panel Battle, continued from Page 113-Green News In Brief14-Green The Ports, continued from Page 1

16 In The News16-Magical Realism, ‘Neomexicanism” Take Over MoLAA17-People In The News

18 PerspectiveRealty Views Student Debt Increasing As Obstacle To Housing By Terry RossEffective Leadership Six Life-Changing Benefits From Simplifying By Mick UklejaHealthWise Beating The Heat During The Dog Days Of Summer By Susan Melvin, D.O.Third Sector Report The New Normal In Fundraising: It’sWhat’s Behind The Numbers That Counts By Jeffrey WilcoxGuest Commentary To Provide Or Not To Provide A Health Plan? That Is The Employer’s Question By Ben Alvarado

Section BEconomic OutlookMid-Year ReportInterviews with experts in the following industries: Health Care; Financial Services; International Trade; Oil & Gas; Technology And Communications; Utilities;Retail; and Real Estate

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NEWSWATCHJuly 8-21, 2014 Long Beach Business Journal 3

City CouncilVotes On BluffErosion Project

� By BRANDON FERGUSON

Staff Writer

At the July 1 city council meeting, coun-cilmembers received an update on phase 2of the Ocean Boulevard Bluff Erosion andEnhancement Project. After listening toLeighton Consulting Inc. engineer DjanChandra’s peer-reviewed analysis of theproject, the council voted 6-1 to continuestaining tan existing sections of shotcrete,the concrete-like substance used to stabi-lize sections of the bluff.

The council also directed city staff toexplore other stabilization methods forbluff sections not yet covered in shotcrete.Residents who spoke during the publiccomment time expressed dissatisfactionwith the shotcrete’s appearance, includingone resident who said the shotcrete wallmakes an attractive target for graffitiartists.

“Tourists aren’t going to come and spendmoney at something that looks like Attica,”said resident Gabrielle Weeks, referring tothe infamous New York State prison. Sheadded the council should take its time toget the bluff stabilization project right.

The city first approved the bluff masterplan in 2000 to stabilize sections of the

bluff stretching between 20th Place and36th Place along Ocean Boulevard in theevent of an earthquake. The city beganwork on phase 2 in October 2013, but inApril 2014, the council delayed the projectand directed staff to consider options forusing a substance other than shotcrete,namely biotechnical solutions like plantingtrees to anchor the soil. In his presentation,Chandra said that biotechnical solutionswere feasible in bluff sections not alreadycovered in shotcrete.

“This method, however, is not recom-mended where shotcrete has been installedbecause it will require removal of the shot-crete, which is a tedious process,” Chandrasaid. “The shotcrete is structurally con-nected to the soil nailing, and removal ofthe shotcrete may impact the integrity ofthe existing soil nails.”

Following public comments, 3rd DistrictCouncilmember Gary DeLong made amotion, seconded by 2nd DistrictCouncilmember Suja Lowenthal, to con-tinue staining existing shotcrete sectionsand to finish infrastructure portions of theproject such as hand railings and side-walks. Before voting on the motion,DeLong expressed some agreement withresident frustrations.

“Certainly looking back with hindsightbeing 20/20, I do agree a differentapproach could have been taken with thisproject, even starting with something sim-ple like finish phase one before moving onto phase two,” DeLong said, adding, “We


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would ask staff that on the portions that have not been shot-creted to go look at other appropriate alternatives; let’s take alook at that and see if there’s a better solution going forward,”DeLong said.

Fifth District Councilmember Gerrie Schipske cast the dis-senting vote, siting residents who had submitted a public recordsrequest but didn’t receive all the documents from the city.

“[Residents] did a public records request and, lo and behold,there’s a permit missing,” Schipske said, adding, “Whichobviously could subject the city to have an enforcementaction.”

City Manager Pat West said the permit was available butdidn’t know why it wasn’t disclosed as part of the recordsrequest.

“I didn’t see that public records request,“ West said. “Wecertainly will get back to you and see whatever we got andwhy it wasn’t provided.”

Councilmembers James Johnson and Dee Andrews werenot present for the vote. �

Long Beach City Hall News In Brief


Staff Writer

Commission Appointments –The city council voted 7-0 atthe July 1 meeting to approve Mayor Bob Foster’s 94 appoint-ments to noncharter city commissions. Of the total number ofappointments made, which included the airport advisory com-mission, board of health and human services and cultural her-itage, as well as the Pacific Gateway Workforce InvestmentBoard, 79 were reappointments and 15 were new appoint-ments. Appointments included: 9th District resident JeffRowe to the airport commission; 8th District resident JuliannaRoosevelt to the cultural heritage commission; 3rd Districtresidents Bronston Thomas Mayes and James Jennett to themarine advisory commission; and District 2 resident StellaUrsua to the sustainable city commission.Real Estate Ordinance – The city council voted 6-1 at the

July 1 meeting to approve Mayor Bob Foster’s recommenda-tion to direct City Attorney Charles Parkin to prepare an ordi-nance amending the municipal code. The amendment wouldrequire full transparency for all real estate transactions inexcess of $1 million when the city is a buyer. The ordinancewould require corporations that receive commissions or feeson such transactions to publically reveal the fees. “In mytenure here, there’s been a number of very large real estatetransactions that the city may be involved in and one of theconcerns I’ve come up with is that there’s not adequate trans-parency,” Foster said. “[This ordinance] is really a way to tryto make sure that with any transaction going forward there iscomplete transparency.” Al Austin, councilmember for the 8thDistrict, cast the dissenting vote.SEADIP Amended – At the July 1 meeting, the city coun-

cil voted 5-0 in favor of a resolution that allows for the adop-tion of a consolidated coastal development permit (CCDP)process in connection with the Los Cerritos Wetlands (LCW)located at 6433 E. 2nd St. and with the “pumpkin patch,”Lyon Housing LLC’s property located at 6701 E. PacificCoast Hwy. Last month LCW and Lyon Housing jointly sub-mitted a proposal to restore approximately 90 percent of theLos Cerritos Wetlands to allow for public access. The projectwould involve moving existing oil infrastructure, such aspipes and tanks, from the wetlands to the pumpkin patch.Since the two parcels are in different jurisdictions (the wet-lands falls under the jurisdiction of California CoastalCommission while the pumpkin patch is the city’s jurisdic-tion), staff determined that in order for the proposed project toproceed, an amendment to the Southeast Area DevelopmentAnd Improvement Plan (SEADIP) is required to allow for aCCDP. A letter to the city council from the department ofdevelopment services indicated that if the coastal commissionand city were issuing separate permits for the project, it wouldcreate “potential confusion, inconsistent conditions of

approval or mitigation measures, and a lengthy timeline due tojoint application processes.”Contract With Merrimac Approved – The city council

voted 6-0 on July 1 to authorize City Manager Patrick West toamend a contract with Merrimac Energy Group, the companythat provides diesel fuel for more than 2,100 city vehicles. Theamendment allowed for an increase of $2 million. West wasalso authorized to extend the contract term to December 2014. Council Approves Three-Year Law Enforcement

Contract – The city council voted 6-0 to authorize the citymanager’s office to execute a three-year agreement that pro-vides law enforcement services to Long Beach CommunityCollege (LBCC). A letter from the police department to the citycouncil stated the agreement covers reimbursement for straighttime benefits and overtime not to exceed 2,089 hours per year,as well as training, supplies and four police vehicles. The agree-ment also provides one lieutenant, four officers and a commu-nications dispatcher for both LBCC campuses. The first yearestimated reimbursement of $2,783,790 is set to adjust annuallyduring the agreement period to provide for cost increases.Pool Hours Restored – The city council voted 7-0 at the

July 1 meeting to restore the closing time at the BelmontPlaza Pool to 9 p.m. At a previous study session, several resi-dents who live near the pool complained about excessivenoise, leading the department of parks and recreation to set a7 p.m. closing time. Councilmember Gary Delong supporteda move to reestablish the 9 p.m. closing time on the conditionthat whistles not be used after 7 p.m. and the pool’s lightingbe managed to reduce effects on local residents.Crime Lab Gets More Money For Cameras – The city

council voted 6-0 authorizing the city manager’s office to enterinto agreements with Federal Signal Safety and SecuritySystems, Halifax Security Inc., and Convergint Technologies toprovide video surveillance systems for use in the Long BeachPolice Department’s crime lab. Council approval authorizes thecity manager to increase the amount of the contract by$200,000 for a contract total not to exceed $700,000. The cityfirst entered into an agreement with the contracting companiesin January of this year for an amount totaling $500,000.LBTV Honored – According to a June 23 press release

issued by the city’s technology services department, the LongBeach Cable TV Channel LBTV received eight governmentprogramming STAR awards at the States of California and

CBA ReaccreditedBy Prestigious AACSBIn late March, the Board of Trustees of the

Association to Advance Collegiate Schools ofBusiness International (AACSB) voted to extendCBA accreditation for an additional five years.CBA faculty, staff, and students were overjoyedbecause failure in this review would be like beingan accountant without a CPA or a lifeguard without

Red Cross certification.Today, we can proudly saythat CBA is one of 691 busi-ness schools out of over15,000 worldwide that areaccredited by AACSB.

AACSB’s 21 standardsinvolve faculty qualifica-tions and assurance of stu-dent learning. CBA’s mis-sion is to graduate highlyvalued, ethical business pro-fessionals prepared to excel

in a dynamic global business environment. Thecolumns in this series show how our faculty andstaff work to achieve this mission, and theAASCB review team favorably noted our efforts.

Many of our instructors are “professionally qual-ified” because of the work experience that brings areal-world flavor to classes. CBA’s tenured facultymembers become “academically qualified” bypublishing peer-reviewed research in academicjournals. Since our last accreditation review fiveyears ago, CBA’s 66 tenured/tenure-track facultymembers published 167 articles, including 59 HighQuality and 15 Elite publications. The faculty ofthe nation’s best business schools publish in thesesame journals.

CBA regularly assesses whether students meetlearning objectives that involve critical thinking,ethics, business functions, global business environ-ment, and interpersonal, communications, andquantitative/technical skills. Assessment is used toimprove courses and teaching. Although we metassurance of learning standards, the AACSBreview team suggested we more strongly connectassessment and course improvement. We will do sosince student learning is central to our mission.

The review team noted many strengths:Student Center for Professional Developmentpromoting career success, student organizationsfostering leadership skills, and student and fac-ulty diversity reflecting all the diversity ofSouthern California. Also commendable are theCBA Alumni and Friends Network, departmentaladvisory boards, and the Ukleja Center forEthical Leadership and its Nell and John WoodenEthics in Leadership Award.

Maintaining AACSB accreditation was a majormilestone but we are already looking toward to thenext review in five years. Like I told our faculty,re-accreditation begins today!(The College of Business Administration at Cal

State Long Beach is an AACSB accredited busi-ness school that provides undergraduates andMBAs with the knowledge and skills necessary tobe successful in their careers and to propel theeconomic development of our region.) �

By Dr. Michael Solt,Dean, College of

Business Administration,California State

University, Long Beach

City Hall News In Brief(Continued From Page 3)

Long Beach City Council, OthersTo Be Sworn In On July 15th


Staff Writer

On July 15, City Clerk Larry Herrera will be extra busy.In addition to swearing in councilmembers for the 1st, 3rd,5th, 7th and 9th Districts, he’ll also swear in the mayor, cityprosecutor, city auditor and city attorney. Though the cere-mony takes place at the July 15th council meeting, Herrerawill also individually swear in each incoming official oneither the 14th or the 15th, depending on each councilmem-ber’s preference.

“It can take place here in the [clerk’s] office, in the coun-cil office or at a location that we agree to,” Herrera said.“For example, if somebody said I’m going to be at my out-side office, let’s say in the middle of the city, I would just goout to there and do the oath of office. We’ll be as accommo-dating as we can.”

The public ceremony begins by swearing in the coun-cilmembers according to district number, followed by thecity attorney, auditor, prosecutor, and finally, the mayor tak-ing the oath. These public servants are then official office-holders at midnight on the 16th.

Herrera explained that in addition to giving the oath ofoffice, the city clerk also receives and maintains theCalifornia Fair Political Practices Commission’s conflict ofinterest form, officially known as Form 700. Incoming andexiting public officials complete the document, listing theirassets and investments. According to Herrera, incoming offi-cials have 30 days from the time they take office to file andare required to update Form 700 every April. Once filed, thedocuments are immediately available for public review. �



Board Chairs Academy“Our agency's participation in the Board Chair Academy has given us the essential tools and

approach we need to accomplish our mission. The material is well thought out, expertly presented with lots of opportunity for interaction with other participants.”

TAMMIE KYLE Executive Director, Comprehensive Child Development, Long Beach

THE BOARD CHAIRS ACADEMYA Comprehensive Five-Part Seminar Series For Nonprofit Boards of DirectorsDesigned As A Cohort Learning Experience For Three to Six Representatives

The Art of Nonprofit Leadership - August 7, 2014The Science of Board Development - September 4, 2014

The Effective Fundraising Board - October 2, 2014CEO Performance Planning & Review - November 6, 2014The Strategic Nonprofit & Its Board - December 4, 2014

All Session are held atThe Petroleum Club

3636 Linden Avenue – Long Beach, California8:30AM to 12:00PM

Register to attend at www.thirdsectorcompany.com or by calling Third Sector Company at (562) 484-8281. Space is limited to the first 12 organizations. Participants may register for a single seminar or the entire series.

The Board Chairs Academy Faculty will include Jeffrey Wilcox, John Glaza and Kathy McCarrell.

In addition to the mayor, the City of Long Beach has three citywide elected officials: the city attorney, city auditor and city prosecutor. While the mayor, by City Charter, may serve two four-year terms – unless reelectedto more terms through a write-in process – there are no term limits for the other three positions. During the just completed 2014 election cycle, Charles Parkin, left, was elected to his first four-year term as city attorney;City Auditor Laura Doud ran unopposed; and Doug Haubert was reelected to a second term as city prosecutor. They will be sworn in, along with Mayor-elect Robert Garcia, during ceremonies on July 15 at theTerrace Theater (refer to Page 1 and Page 4 stories). Parkin beat back two opponents in the April primary race, then won with more than 60 percent of the vote in the June 3 runoff. Parkin joined the city attorney’soffice in 1995 as a deputy city attorney. In October of 2006 he was promoted to principal deputy city attorney, and in January of 2012 to assistant city attorney. In August of 2013 the Long Beach City Councilappointed Parkin city attorney to fill the unexpired term of his predecessor. Doud is ready to begin her third term as city auditor. She was elected in 2006, unseating the incumbent auditor, and reelected in 2010.She previously worked as a staff auditor for the city, then went on to become a certified public accountant, certified fraud examiner and earn a law degree. Prior to running for city auditor, she served as controllerfor the Water Replenishment District of Southern California. Haubert was easily reelected in April to a second term as city prosecutor. He previously worked in the office as a deputy city prosecutor, then joined amunicipal law firm which represents cities and various public agencies. During that period he served as city prosecutor and city attorney to several cities in Southern California. He also became a partner in the lawfirm. All three city officials are available for speaking engagements for local groups and organizations.Visit their websites at http://www.longbeach.gov. (Photograph by the Business Journal’s Thomas McConville)

Nevada National Association of Telecommunications Officers and Advisors conference(SCAN NATOA). LBTV received a STAR award for overall excellence in governmentprogramming and took second place for its program Pulse of the Port, a production of thePort of Long Beach. In a statement, Mayor Foster heralded the public access station’scommunity contributions. “These awards are well deserved, because LBTV provides out-

standing programming that keeps our residents informed, entertained and connectedthroughout the community.” LBTV can be viewed in Long Beach on CharterCommunications’ cable Channel 3 and Verizon FIOS Channel 21. The STAR awards wereestablished in 1996 to recognize outstanding community television programming by localjurisdictions serving California and Nevada. �

Citywide Elected Officials


NEWSWATCH6 Long Beach Business Journal July 8-21, 2014


Staff Writer

Long Beach city staff will take furthertime in reviewing two project proposalsfor a new civic center complex, one sub-mitted by Plenary-Edmore Civic Partnersand the other by CiviCore Alliance.According to Deputy City Manager TomModica, the original July reportingdeadline is too soon, as the proposalsunder consideration require furtheranalysis.

“Both submittals are incredibly com-plex, and staff is reviewing each adminis-trative and financial component in detail.

The city is committed to providing thebest recommendation and analysis to themayor [and] city council for discussion,”Modica’s statement read, adding that thereport’s completion date is currentlyunknown.

A seismic study conducted at thebehest of the city in 2006 concluded thata large earthquake could lead to a col-lapse of the current civic center andresult in “a significant loss of life.”

In February, the Business Journalreported that 5th District CouncilmemberGerrie Schipske criticized the city for notissuing a request for qualifications toretrof it the current civic center.

According to city staff reports, however,even with a retrofit the building couldbecome uninhabitable in the event of amedium to large-sized earthquake, likethe 6.7 magnitude 1994 Northridgequake. A memo issued to the council inFebruary by the city manager’s officeindicated that a retrofit would cost closeto $200 million, an investment thatwould be lost in the event of a quake.

The city is currently exploring a pub-lic-private partnership option for civiccenter construction in which the citywould lease the civic center from thebuilder for $12.6 million per year for 40years. The annual payment is the same

amount the city currently spends tomaintain the current civic center. �

Hearing Date Set On August 6 For BNSF Lawsuit


Staff Writer

An August 6 hearing date has been set todetermine whether or not the Californiaattorney general’s office can join the Cityof Long Beach in its lawsuit against theBurlington Northern Santa Fe Railway Co.(BNSF) and the City of Los Angeles. Theattorney general’s office (AG) first filedthe motion to join the suit in early May.

Long Beach and several other entities aresuing BNSF over its proposed SouthernCalifornia International Gateway (SCIG)rail yard project, to be built adjacent toWest Long Beach and the Terminal IslandFreeway. Opponents say the project bringsmore diesel emissions and truck traffic, inturn increasing air pollution near primarilylow-income neighborhoods. In court docu-ments, the Long Beach city attorney’soffice alleged that Los Angeles’s environ-mental impact report for the rail yarddownplayed the effects of the rail yard’spollution on Long Beach neighborhoodslocated near the site.

Long Beach Assistant City AttorneyMichael Mais told the Business Journal it’spossible that by the time of the hearing, theAG will already be part of the suit.

“The statute is pretty clear that unlesssomebody’s going to be prejudiced, theyhave an absolute right to come into the case,”Mais said. “I think that BNSF and the City ofL.A. recognize that, so rather than wasteeverybody’s time on that part of it, I thinkthey’re trying to see if everybody can agreethat [the AG] can just be part of the case.”

Also slated for consideration at theAugust 6 hearing is whether or not theCity of Carson can join the suit. Maisestimated it could be next spring beforethe case goes to trial. �

Long Beach MobilityPlan Earns AwardOf Excellence

The Los Angeles Chapter of theAmercian Planning Association awardedthe City of Long Beach an Award ofExcellence for its Mobility Element of theGeneral Plan that was adopted by the citycouncil last October.

“More than just improving mobility, theplan is about enhancing our quality of lifeand stimulating our economy as well,”Mayor Bob Foster said. “Strategically guid-ing our city’s transportation networksallows for more choices and convenience,reduced traffic congestion and more effi-cient community options.”

The plan, prepared by the city’s develop-ment services department, serves as a “20-year guide for future decision making byestablishing a vision with goals, strategiesand implementation measures that supportand encourage all roadway users.” �

– From Staff Reports

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Proposed New Civic Center Proposals Need Further Review



� By PAT FLYNN

Contributing Writer

On behalf of Sierra Club, Communitiesfor a Better Environment and NaturalResources Defense Council, environmen-tal law organization Earthjustice filed anappeal on June 23 with the City of LongBeach, challenging the Port of LongBeach’s approval of two agreementsenabling the export of coal and petroleumcoke. The agreements in question are alease with Oxbow Energy Solutions, LLCand an operating agreement withMetropolitan Stevedore Company, whichwill facilitate the export of more than onemillion tons of coal and petcoke eachyear for the next 15 years.At the Port of Long Beach Board of

Harbor Commissioners’ June 9 meeting,Long Beach residents and communityorganizations raised concerns about thecommunity health and environmentalimpacts of coal dust blowing off uncov-ered rail cars on their way from the coalmines in Utah and Colorado to the Port ofLong Beach. They also objected to ship-ping coal and petcoke (an oil-refiningbyproduct) to countries with few to noemissions controls, such as China,thereby contributing to climate change.The commissioners nonetheless votedunanimously to approve the agreements.In its appeal letter, Earthjustice stated

that the Board had approved the agree-ments “despite significant public opposi-tion related to the failure to undergo anyCEQA analysis.” The environmentalgroups claimed that the Port violated theCalifornia Environmental Quality Act,which requires the port to analyze anddisclose the environmental impacts ofproposed projects and adopt all feasiblemeasures to mitigate those impacts. Theappeal is to enforce state law requiringan adequate environmental analysis thatassesses, among other things, the green-house gas emissions from burning thecoal and petcoke to be exported underthe agreements.Port officials asserted that CEQA clear-

ance is not required. Heather Tomley,director of environmental planning for theport, reported to the commissioners in the

June 9 meeting, “We believe the leases arecategorically exempt,” because there is“negligible or no expansion of use.” Shepointed out that “there are currently nolimitations on the throughput for the facil-ity based off of any of our previous agree-ments.” She went on to recommendanother finding that, since CEQA clear-ance was completed for the project in1992 and there have been no changes inthe project, in circumstances related to theproject, and no new significant informa-tion that had been unavailable in 1992,further CEQA analysis is not required.In response, Morgan Wyenn, Natural

Resources Defense Council attorney,stated, “Both the U.S. government and theState of California have established clearpolicy goals to phase out dirty fuels likecoal, and it is unacceptable for the Port ofLong Beach, in this day and age, to goagainst these policy directives just so theCity can turn a profit.” �

Central Project AreaCouncil To DiscussBNSF, Civic Center

And Other Key IssuesMeeting Thursday, July 10

The Long Beach Central Project AreaCouncil (CPAC), which was formed byconcerned residents and business peoplefollowing the dissolution of the LongBeach Redevelopment Agency more thana year ago, continues to meet to discussissues impacting Long Beach. The groupis not sanctioned by the city nor does itreceive funding from the city.This Thursday, July 10, the council will

examine three key issues: The proposedSouthern California InternationalGateway (SCIG) BNSF rail/truck yardproposal; medical marijuana and mari-juana stores; and the proposed new civiccenter in Downtown Long Beach.The meeting begins at 6 p.m. at 240

Chestnut Ave., 11th floor. For moreinformation, call Annie Greenfeld at562/225-9462. �

– From Staff Reports

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Environmental Groups Challenge PortOf Long Beach’s Plan To Export Coal



ever, has been the naming of a new execu-tive director for the Port of Long Beach.

On June 30, the Long Beach Board ofHarbor Commissioners confirmed theappointment of Jon W. Slangerup to headup the city’s harbor department. Hereplaces Chris Lytle, who left late last yearfor a similar post in Oakland.

In announcing the appointment, commis-sioners turned to a man who has more than30 years of corporate leadership experi-ence. According to a port statement,Slangerup has served as president, CEOand/or director of both public and privatecompanies the past two decades, buildingbusinesses ranging from tech startups to abillion dollar subsidiary of FedEx Corp.

“During the past seven years of a distin-guished 20-year career with FedEx,” accord-ing to the statement, “Slangerup served aspresident of FedEx Canada, which he trans-formed from a small regional domesticcourier operation into Canada’s leading inter-national express logistics company.” Morerecently, Slangerup has been involved inleadership roles with environmental technol-ogy companies “providing leading-edgesolutions in marine ballast water treatment,renewable energy and distributed power gen-eration to customers throughout the world.”

Commission President Doug Drummondreferred to Slangerup as “an extremelycapable leader, proven team-builder andexpert at managing a world-class organiza-tion. In our highly competitive, quicklychanging industry challenged by majorenvironmental and energy issues, he’s theperfect person for the job.”

Commissioner Lori Ann Farrell, whochaired the port’s search committee, added,“We undertook a rigorous and thoroughreview process. In Jon we found the idealcombination of leadership, vision and exe-cution that we need to take us strongly intothe next decade.”

During the transition period, the port’schief harbor engineer, Al Moro, stepped into serve as interim executive director.

“Al stepped into a challenging environ-ment to calm the organization, keep our $4 billion of improvement projects under-way and assist the board in getting to thisexciting day,” Drummond said. “We thankAl and offer our deepest gratitude.” �

Commission Names

New Executive Director

Top, the Long Beach Board of Harbor Commissioners met on June 30 to confirm the appointment of Jon Slangerup as the new executive director of the Portof Long Beach. Above, from left: Commission Vice President Rich Dines, a longshoreman at the ports of Long Beach and Los Angeles; Commissioner LouAnne Bynum, executive vice president of College Advancement and Economic Development for Long Beach City College, and the newest member of thecommission; Executive Director Slangerup; Commissioner Lori Ann Farrell, director of finance for the City of Huntington Beach; and Commission PresidentDoug Drummond, a retired Long Beach police commander and former Long Beach city councilman. Not pictured is Commissioner Susan Wise, whoannounced recently she will not seek a second six-year term on the commission. (Photographs by the Business Journal’s Thomas McConville)

(Continued From Page 1)


GOING GREEN10 Long Beach Business Journal July 8-21, 2014


Staff Writer

Three hundred tons of hazardous house-hold materials have been recycled and dis-posed of since the Household HazardousWaste Collection Center at EDCO Waste &Recycling Services’ March 2013 openingin Signal Hill, according to Jim Kuhl, man-ager of the Long Beach EnvironmentalServices Bureau.

On the second Saturday of every month,the facility offers free household hazardouswaste collection to all Los Angeles Countyresidents. Before the center opened, LongBeach residents who could not travel toother facilities in Lancaster and San Pedrowould have to wait for a yearly L.A.County household hazardous waste dis-posal event held at Veteran’s Stadium, Kuhlrecalled. “That’s why we were looking tolocate something locally,” he said.

Household hazardous waste includesitems such as paint, cleaners with acid orlye, motor oil, pool chemicals, pharmaceu-ticals, medical needles, batteries, weedkiller, pesticides and more. Typically theseitems are labeled as hazardous withinstructions to take them to a special col-lection center, Kuhl said. The city providesa list of items accepted at the hazardouswaste collection center’s bi-monthly eventsonline at www.longbeach-recycles.org.

Before the Southern California-based,family-owned EDCO offered to house the

facility, the City of Long Beach planned tobuild a $3 million collection center nearby.“Originally, the City of Long Beach receivedgrant funds to build its own facility,” whichwas going to be across the street from EDCOin Signal Hill, Kuhl recalled. One day, Kuhlmet with EDCO President and CEO SteveSouth and told him about the plan. “I said,‘We’re going to be neighbors. We’re going toput a household hazardous waste collectioncenter across the street.’ And he said, ‘Youdon’t need to do that. I have space for one.’That is how it started,” Kuhl said. South’soffer saved the city $3 million it otherwisewould have used to build a new center.

The City of Long Beach used a$300,000 grant from CalRecycle to designthe center, which is operated by an inde-pendent contractor paid $500,000 per yearby Los Angeles County Public Works,Kuhl said. EDCO houses the facility anddoes not receive any funds, South said. “Itis a true private-public partnership,” Kuhlsaid of the arrangement.

Since the center opened, “We are seeingmuch less illegal dumping” of hazardousmaterials, Kuhl said. “We used to see a lotof calls on motor oil and paint because peo-ple get frustrated when they don’t have anyway to get rid of it and it ends up in thealley or in a park or some place,” he said.

“People want to do the right thing. It justneeds to be convenient,” South said ofhousehold hazardous waste disposal. “Allresidents have to do is come here.

Everything else is handled. They don’teven have to get out of their vehicles.” Onthe second Saturday of every month,EDCO allows residents to drive through aparking lot where workers remove house-hold hazardous waste items from residents’vehicles. The items are sorted, consolidatedand stored in lockers before being sent torecycling and reuse facilities. Some items

must be disposed of at a special site inCentral California. However, “The over-whelming majority of the material is recy-cled after it is consolidated,” South said.

When the household hazardous wastecollection program first began, about 500cars came to the center per event, Kuhlrecalled. “We are up to about 650 cars permonth now,” he said.

Household Hazardous Waste Collection Center Prevents Toxic Dumping

Steve South, president and CEO of EDCO Waste & Recycling Services (left), helps Jim Kuhl, man-ager of the Long Beach Environmental Services Bureau, with a box of toxic household products.These materials, such as motor oil and light bulbs, must be taken to special collection centers likethe one at EDCO’s Signal Hill facility where they are recycled, reused and disposed of properly.(Photograph by the Business Journal’s Thomas McConville)


GOING GREENJuly 8-21, 2014 Long Beach Business Journal 11

By reducing illegal dumping, the centerhelps keep toxic materials out of the envi-ronment. Even throwing these materials intotrashcans has a negative impact on people inthe community, South and Kuhl noted.Medical needles tossed in trash bins pose ahazard to the workers handling trash, Southpointed out. “People in our industry have theopportunity to get stabbed with those needles,so we need the people who are using thosesharps to properly dispose of them,” he said.

Chemical products thrown in trash alsopose a risk, South said. “The biggest chal-lenge is when materials mix,” he stressed.“When you throw that stuff in the trash itgoes into a truck and mixes, then it goes toa facility like ours and mixes, and then itgoes to a landfill and mixes.” Most land-fills have liners to prevent mixed hazardousmaterials from entering groundwater sup-plies, but mixed chemicals could still causefires or harm workers, he explained.

Kuhl pointed out that dumping house-hold hazardous waste in storm drains neg-atively impacts water quality. “Everythingalong the coastline ultimately leads to theocean, so at some point it becomes theequivalent of pouring household hazardouswaste into the ocean,” he said.

While preventing illegal dumping ofhazardous waste is a priority addressed bythe collection center at EDCO, Kuhlemphasized the City of Long Beach’s goal

here is to prevent people from using haz-ardous materials in the first place. Theenvironmental services bureau has a web-page explaining how to create nontoxicalternatives to many types of toxic productslike insecticides and cleaners.

The collection center is located at 2755California Ave. Fats, oil and grease and tra-ditional recyclables such as bottles andpaper are also accepted. Electronic waste isaccepted five days a week.

Websites: Long Beach EnvironmentalServices Bureau – http://www.longbeach-recycles.org; EDCO – http://www.edcodis-posal.com/signal-hill. �

Steve South, presidentand CEO of EDCOWaste & RecyclingServices (left), and JimKuhl, manager of theLong BeachEnvironmentalServices Bureau,stand over a pallet ofcar batteries droppedoff by L.A. County res-idents for proper dis-posal at theHousehold HazardousWaste CollectionCenter. The center,housed at EDCO’sfacilities at 2755California Ave.,accepts hazardoushousehold products onthe second Saturdayof every month.Electronic waste isaccepted five days aweek. (Photograph bythe Business Journal’sThomas McConville)

Nearly Two Tons OfE-Waste Collected InLess Than Four HoursHow’s this for an E-waste collection

drive?: 825 TV carts; 50 LCD TVs; 186monitor carts; 400 LCD monitors; 135 lap-tops; 665 towers; 1,053 UWEDs (universalwaste electronic devices); and more, equat-ing to 3,314 pounds of E-waste. That’swhat a local marketing and promotionsagency, Creative Productions, accom-plished recently in less than four hours.“Our recent collections for GoodwillServing the People of Southern LosAngeles County demonstrates that smallbusinesses can be green by recycling theiroutdated electronics, which leads to jobcreation and a positive economic impact,”said Deborah Golian Castro,president/CEO of Creative Productions. �



power and eliminate some of the need toimport energy.

A bill introduced by Assemblyman AlMuratsuchi, D-Torrance, that now is pend-ing before state lawmakers would requirelocal governments to adopt streamlinedpermitting processes for residential solarenergy projects and fast-track any inspec-tions needed to issue such a permit.

Support from the bill comes from envi-ronmental groups like the CaliforniaLeague of Conservation Voters, the SierraClub, some of the state’s largest citiesincluding San Francisco and Oakland, anda wide variety of solar panel installers.

Opposition to the bill comes from other,generally much smaller cities, fire offi-cials, the state Building IndustryAssociation and the state MunicipalUtilities Association. The opposition cen-ters around concerns that the bill wouldprevent cities and counties from ensuringthat solar installations are done safely.

Twice in the past, state legislators havemade it clear that homeowners should havethe right to put solar panels on theirhomes. The 1978 Solar Rights Act prohib-ited non-governmental agencies, likehomeowners associations, from banningresidential solar energy projects.

And that law also prohibited local gov-ernments from placing “unreasonable

restrictions on the use of solar energy sys-tems,” according to a analysis of the billcreated by state legislative researchers.The law was revised again in 2008 to fur-ther restrict the abilities of local govern-ments to block such projects.

Even still, “The industry continues toface steep obstacles that must beaddressed if solar electricity generation isgoing to help the state address its growing

energy needs,” according to the stateanalysis.

“Research indicates that while thehard costs of solar, namely materials andcomponents, have come down in price inrecent years, soft costs, including thecost of local agency permitting andinspection process, are preventing solarenergy systems from being more afford-able to many Californians.”

Those “soft costs” are the reason the billis needed, Muratsuchi says.

“AB 2188 will streamline the permitprocess for residential solar energy sys-tems while protecting property andsafety standards,” Muratsuchi tells theBusiness Journal.

“Cutting down on bureaucratic delay willmake solar more affordable and increaseaccess to more California homeowners who

The Battle Over

Residential Solar Panels




want to generate their own clean energy.This bill is good for consumers, good forthe environment, and good for business.”

AB 2188 would require:• Every city and county in California to

adopt a streamlined permitting process forsmall, residential, rooftop solar systems.Such streamlined permitting processesmust be in place by September 30, 2015.

• Develop a checklist outlining the con-ditions for projects that would qualify forexpedited review.

• Require cities to issue permits for proj-ects that meet all such qualifications. If apermit application is incomplete, the localagency “must issue a written correctionnotice detailing all deficiencies and infor-mation requirements for expedited review,”according to the state analysis.

• Limits a city or county to one inspec-tion per project, and said inspection musttake place within five business days of therequest for an inspection.

Opponents say the bill would restrict theability of local governments to enforce safebuilding practices, and would force thoselocal agencies to make permitting solarinstallations a priority over other projects.

“We remain in opposition to AB 2188because it prescribes every city and countyin the state to create a ‘streamlined’ solarpermit checklist, application and inspectionprocess irrespective of any consideration onworkload, or the staff needed to review eachsolar application for permit approval,”Patrick Harbison, director of communica-tions, California Municipal UtilitiesAssociation, tells the Business Journal.

“Why, for a single commercial productthat needs a permit, should local inspectorsbe subject to any inspection limitations?”Harbison continues. “Such limitations havethe potential to comprise public safety. Plus,not a single word in the bill offers any pro-tections between the customer and the solarroof contractor should something go wrongor a contractor fail to show up for an install.

“Because some of our members play adirect role in the solar roof permit process,we believed it was necessary to join theLeague of Cities in opposition to the bill.”

The state analysis points out that fivedays may be too short of a window for acity to coordinate all of the elements neces-sary for a single site visit.

“Five days may not give cities and coun-ties enough time to schedule all inspec-tions, and it is unclear if all cities and coun-ties can consolidate structural, engineeringand fire safety reviews into a single inspec-tion,” the analysis states.

However, the bill allows cities and coun-ties that feel that they cannot arrange for asite inspection in five days to adopt a locallaw detailing a specific time schedule forinspections.

The bill is the latest skirmish in a long-running battle over residential solar powerinstallations. State researchers found noless than six different Assembly and Senatebills in the past decade alone dealing withpermits and credits for solar power projectsfor the home.

State law now makes it illegal for citiesand counties to base the cost of issuing apermit on the value of the solar system, andspecifically limits the amount of money alocal government can charge for issuing apermit for a solar system. Prior to that leg-

islation, a permit for a small, three kilowattresidential system could run as low as $30or as high as $1,100, depending on the cityissuing the permit.

Other legislation limited the power of ahomeowners association to restrict theinstallation of such systems, and requiredsuch associations to respond to requests toinstall systems within a specified period. �

Green News In Brief• Sam’s Club has permanently stationed

a Goodwill Attended Donation Center atits Long Beach Towne Center store. Thedonation center is open seven days a weekfrom 8 a.m. to 7:30 p.m. to collect dona-tions and give receipts to donors. Amongitems it accepts are: gently used clothingand accessories, household goods andsmall appliances, and e-waste items such asTVs and computer equipment. For moreinformation, visit: www.thinkgood.org.

• California State University,Dominguez Hills received two HigherEducation Energy Efficiency andSustainability Best Practice Awards for itsefforts in environmental conservation andsustainability during the 2014 CaliforniaHigher Education SustainabilityConference. According to a statement, theawards showcase model projects within theCSU and University of California systemsin the areas of green building design, cli-mate control and lighting retrofit, waterefficiency, energy use tracking, wastereduction, transportation and food servicesustainability, and education efforts.

• Signal Hill Petroleum recentlyreceived a “Beautification Award” from theSignal Hill Planning Commission in recog-nition of the company’s sustainableapproach to improving its well sites.During the past three years, Signal HillPetroleum, according to a statement, has“undertaken an extensive program toimprove its individual well sites throughvarious cosmetic upgrades, includingbuilding new fences, landscaping andpainting. Going well beyond local and stateregulations regarding property improve-ments, the company has completed over150 site renovations.”

• Last month, the City of Long Beachwas awarded a $924,000 state grant toimprove wetlands and increase accessibil-ity at Willow Springs Park – 2745 OrangeAve. – by building trails, planting trees andre-establishing native vegetation. “Thegrant will help restore the Willow SpringsPark ecosystem and enable the public toexperience natural resources in a highlyurbanized area,” Mayor Bob Foster said.“These improvements will provide a rangeof recreational opportunities and activitiesfor a healthier, more livable Long Beach.”

• The application deadline is August 22for a community to be considered for a$200,000 to $500,000 state grant aimed athelping coastal communities prepare for achanging climate. Funding is available forlocal governments and private organiza-tions with “innovative ideas on how toimprove California’s coastal areas and mit-igate sea-level rise,” according to a state-ment from State Sen. Ted Lieu’s office. Thegrants are issued by the California CoastalConservancy. For more information, visit:http://scc.ca.gov/2014/05/27/second-cli-mate-ready-grant-round-announced. �

Alan BrawerEnergy Analyst

[email protected]: (562) 233-9934Fax: (562) 938-8830www.rgsenergy.com

CA CSLB 840934

since 1978

GO SOLAR WITH

ZERO DOWN!(*Purchase or Lease)

(562) 233-9934



ronmental affairs and planning. The portdefines the policy as “an aggressive, com-prehensive and coordinated approach toreduce the negative impacts of port opera-tions” which “serves as a guide for decisionmaking and establishes a framework forenvironmentally friendly port operations.”

Cameron said the policy influenceseverything the harbor department does.“It has changed our culture. It is probablythe first thing anybody at the [harbor]department thinks of when we start talk-ing about any projects or future opera-tions,” he said of the policy.

The international trade community isnoticing these efforts. The Port of LongBeach, known as “The Green Port,” wasrecently honored as the “Best GreenSeaport” in the world in a poll of freighttransportation professionals conductedby Cargonews Asia, a shipping tradepublication.

The Port of Los Angeles (POLA) hasmany similar environmental policies andprograms aimed at reducing its environ-mental impact, and the two ports often col-laborate in these efforts. “While L.A. andLong Beach compete on the business sidefor cargo . . . on the environmental sidethere is a lot of collaboration that goes on,”Phillip Sanfield, POLA director of mediarelations, told the Business Journal.

Clean AirIn 2006, the ports collaboratively

approved a Clean Air Action Plan, a pol-icy meant to reduce air pollutants causedby port operations. Through this plan,both ports have developed programs toimprove local air quality.

The San Pedro Bay Ports offer manymonetary incentives to encourage ship-ping lines to implement practices toreduce pollutant emissions into the air.The Long Beach Board of HarborCommissioners approved two new incen-tives just last month. In one new incentiveprogram, the port offers a dockage waiverfee, which is essentially free parking, tovessels that reduce their speeds whenapproaching the port and plug in toonshore electric power when they dock.These practices reduce air emissions,according to Cameron.

Another recently approved incentivefrom POLB awards shippers $5 per totalequivalent unit (a measurement of cargocontainers) for all additional cargo dis-tributed through on-dock rail instead oftrucks. “What that does is reduces thetruck trips and air emissions associatedwith those trips,” Cameron said. Usingon-dock rail benefits shippers becausethe method “is a lot more efficient andstreamlined,” he added.

Last year, the Port of Long Beachadopted the Green Ship IncentiveProgram, which provides $2,000 to ship-ping lines using vessels with Tier 2engines. These are some of the cleanestavailable engines for ships in terms of airemissions, Cameron said. “What we aretrying to do is provide incentives for ship-ping lines and customers to put into serv-ice the cleanest available vessels theyhave,” he explained. In the future, ship-ping lines using Tier 3 engines are toreceive a $6,000 incentive, but thoseengines are not yet available, he said.

While shipping lines financially benefitfrom these incentives and the communitybenefits from better air quality, the Port ofLong Beach also profits by attracting newbusiness, Cameron said.

Like POLB, the Port of Los Angelesalso offers monetary incentives to ship-pers, such as through the EnvironmentalShip Index, an international scoring sys-tem used to rate how environmentallyfriendly a vessel is in terms of its airemissions, according to POLA Marine

Environmental Manager Lisa Ochsner.“Based on their score, [vessel] operatorsare rewarded through monetary incen-tives,” she explained. “Since July 2012,the port invested roughly $400,000toward the program,” money paid directlyto shippers, she said.

This year, California began requiring50 percent of all vessels traveling to andfrom state ports to hook up to shorepower to help reduce air emissions, astandard both local ports are meeting. ThePort of Los Angeles was “the first con-tainer port in the world to hook up a shipto shore side power back in 2004,”Sanfield pointed out. The POLA contin-ues to encourage the practice and is nowentering into an agreement Sanfield calls“a pretty big deal” to do just that.

This week (the week of July 7), theport’s new executive director, GeneSeroka, travels to China to enter the portinto a three- to five-year agreement withthe Port of Shanghai which “will helpestablish China to U.S. green shippingroutes, in which ships can plug in tostandardized at-berth power systems,”Sanfield said. He explained the agree-ment aims to reduce emissions inShanghai, L.A. and “eventually aroundthe world at other ports,” adding, “Weare thrilled to be part of this.”

Both ports are also reducing air emis-sions by implementing new technologyat their terminals through capitalimprovement programs. Through theMiddle Harbor RedevelopmentProgram, for example, POLB intro-duced zero emission technology includ-ing automated cars for transporting con-tainers on dock, Cameron said. “OnceMiddle Harbor is completed and is infull operation, it will be one of thegreenest, most sustainable terminals,”he said.

Long Beach’s port has also expandedon-dock rail to promote the use of trains,which emit less pollutants than trucks, henoted. The Port of Los Angeles is cur-rently completing multiple environmentalimpact reports for capital improvement

Long Beach Business Journal

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Now undergoing testing, these automated guided vehicles for Long Beach Container Terminal produce zero emissions, contributing to the port’s efforts toreduce its impact on local air quality. (Photograph by the Business Journal’s Thomas McConville)

Greening The Ports




projects to modernize its terminals tosimilar effect, Ochsner said.

The ports also promote cleaner airthrough their Clean Trucks Programs. Theprograms require that trucks servicing theports meet 2007 Federal Clean TruckEmissions Standards, essentially requir-ing the trucks to be model-year 2007 ornewer. Ochsner said many trucks areexceeding this standard at POLA. “About25 percent of drayage moves are nowbeing done with 2010 trucks. That is agreat benefit to air quality,” she said.

Both ports report an 80 percent reduc-tion in air emissions thanks to these poli-cies and incentives.

Water QualityIn addition to their Clean Air Action

Plans, the ports have a collaborativeWater Resource Action Plan throughwhich they strive to improve the waterquality in their harbors.

The water plan’s big focus is to reducethe impacts of storm water runoff. “Wehave a master storm water program weare very proud of which ensures that anystorm water coming off the surface ofour marine terminals is meeting stan-dards and best practices in place,”Cameron said.

“We’re monitoring storm water pollu-tion prevention measures and we havealready found that 50 percent of our cargocontainer terminals have installed sometype of pollution prevention system,”Ochsner noted.

Cameron said that the ports also work

with entities in regional watershed areas toensure runoff into the Los Angeles River,which ultimately ends up in the LongBeach harbor, is as clean as possible.

To remove trash in the water, the Port ofLos Angeles recently purchased two newtrash skimmers, which skim the watersurface for debris, Ochsner said. Twomore are arriving soon. “They clean up to300 gallons a minute,” she noted.

Cameron pointed out the San PedroBay Ports have been able to improvewater quality through their capitalimprovement programs, which have oftenrequired dredging sediment from the seafloor. Dredging removes what he called“legacy pollutants” and “contaminatedsediment from previous uses in the har-bor,” such as the former Long BeachNaval Station. “The sediment acts as ahabitat . . . that fish and other marine liferely upon,” Cameron said. “When wehave clean water and clean sediments thehabitat, fisheries and wildlife are going tothrive within the harbor complex.”

Every five years, the ports engage in astudy examining the quality of water andsediment with their facilities, which theyare currently about to undertake again,Ochsner said. In previous years, the studyhas shown “great improvements” in thoseareas, she said.

Cameron reflected, “[As] the No. 1 portcomplex in the nation and the ninth in theworld with all the industrial activity tak-ing place here, we have a very healthyhabitat and water quality.” �

Dredging, a process by which old and sometimes contaminated sediment is removed from the sea floor,helps restore habitats for local wildlife by creating a cleaner water environment, according to RickCameron, managing director of environmental affairs and planning for the Port of Long Beach. Pictured,dredging takes place for the port’s Middle Harbor Redevelopment Project. (Photograph by the BusinessJournal’s Thomas McConville)


IN THE NEWS16 Long Beach Business Journal July 8-21, 2014

Magical Realism,‘Neomexicanism’

Take Over Museum Of LatinAmerican Art


Staff Writer

The Museum of Latin American Art(MOLAA) recently debuted two specialexhibits, one of which is the first-eversolo museum exhibition of works byCuban artist Roberto Fabelo. MOLAAPresident and CEO Stuart Ashman, whocurated the exhibit, worked for two yearswith Fabelo to bring his art to LongBeach. Another exhibit focuses onMexican artwork from the 1980s.

“We’re really excited we have theopportunity to show Fabelo’s workbecause we consider him to be one of themost important and accomplished LatinAmerican artists working today,” Ashmansaid. The artist, who is now in his 60s, hashad a career of more than 40 years andhas shown his work in exhibitions inEurope and South America. “He hasnever shown extensively in the UnitedStates,” Ashman said. “The only time yousee his work is at auctions. In fact, wehave two [of his] pieces in our collectionwhich our founder purchased in 1999 and2000 at Sotheby’s [auction house].”

Ashman has personally known Fabelosince the 1990s, but about two or threeyears ago, he accepted an invitation toFabelo’s studio. He recalled, “I saw agroup of drawings on the table and Iasked how many there were. At the time,there were 20 or 22. I said, if you give methose 20 drawings we will put up a show.”

Fabelo agreed. “It ended up being 30drawings, six larger pastel drawings andsix very large paintings. The exhibit kindof grew and became monumental in size,”Ashman said.

Many of Fabelo’s paintings and draw-ings, which are hand-colored with ink onpages from vintage anatomy texts, featurenude females with wings, beaks and otherfantastical characteristics. Despite theirfictional traits, the images are repre-sented very realistically. The combinationof fantastical and realistic elements placethe work in a Latin American artisticmovement called Magical Realism, forwhich famed author Gabriel GarciaMarquez was known. Fabelo was com-

missioned in 2007 by Marquez, who hassince passed away, to illustrate one of hisbest-known novels, One Hundred YearsOf Solitude. Another current exhibit ofpieces from MOLAA’s permanent collec-tion focuses on art reflective of Marquez’sworks. Ashman said it was “serendipi-tous” that the two exhibits should be atthe museum at once.

Another special exhibit at MOLAA,curated by Assistant Curator EdwardHayes, Jr., focuses on Mexican art in the1980s. The exhibit, dubbed“Neomexicanism,” focuses on “a periodof art production by artists who were dis-enchanted with fixed identities and criti-cal of the official image of Mexicanidad

promoted by the state,” according to astatement from the museum. “It is a verycolorful exhibit,” Ashman said. Featuredartists in the exhibit include MonicaCastillo, Julio Galan, Nahum B. Zenil andothers. “This period in art history has alot of humor in it and a lot of explosiveideas,” he said.

Visitors to MOLAA may notice a con-nection among the exhibits. Ashmanexplained, “To tie it all together weengaged the work of an exhibit designer sothe whole museum has a cohesiveness, andcoming through the museum is like anadventure in a way.”

“Fabelo’s Anatomy” and“Neomexicanism” are at the museum until

Cuban artist Roberto Fabelo discusses his work entitled “Meditation in the Garden of the Night” (left) at a special solo exhibition of his work at the Museumof Latina American Art. To his right is his oil painting entitled “Great Blue Rooster.” (Photograph by the Business Journal’s Thomas McConville)

Meet The Chamber’s New VP Of Membership Randy Gordon, president and CEO of the Long Beach Area Chamber of Commerce, welcomesCatherine Armstrong as the organization’s new vice president of membership development. Accordingto a chamber statement, the Long Beach resident and California State University, Long Beach graduatehas more than 10 years of experience in visual merchandising and marketing geared to increase prod-uct awareness and establish high-stature branding. Armstrong was named Nordstrom’s “fashion boardgirl of the year” and went on to complete the store’s management program which led her to managethe flagship store at Michael Stars. She also studied at the College of Internationale de Cannes inFrance, where she received a certificate of excellence from the school for her efforts in art history andthe French language. (Photograph by the Business Journal’s Thomas McConville)

LBS Financial Credit Union Awards 33 ScholarshipsLast month, LBS Financial Credit Union awarded $1,000 scholarships each to 33 students in Long Beach,Lakewood, Cerritos and nearby communities. The credit union worked with school counselors in identi-fying each of the recipients. “Awarding these scholarships each year is one of the many ways LBSFinancial gives back to the community,” said Jeffrey A. Napper, president and CEO of LBS Financial.“We are proud of the students, their accomplishments and hard work to achieve their educational goals.”LBS Financial was founded in 1935 as the Long Beach Unified School District Employees Federal CreditUnion. Today it serves 50 cities and has more than 115,000 members. Pictured from left are: Napper;scholarship recipient Connor Johnson, a graduate of Millikan High School in Long Beach; and HeatherSummers, senior vice president of marketing for LBS Financial. (Photograph by LBS Financial)


IN THE NEWSJuly 8-21, 2014 Long Beach Business Journal 17

September 28. A lecture on July 26 by Dr.Teresa Eckman, author of Neomexicanism:Mexican Figurative Painting and Patronagein the 1980s, takes place at 3 p.m. and isfree with museum admission.

The museum is open from 11 a.m. to 5p.m. on Saturdays, Sundays, Wednesdaysand Thursdays, and from 11 a.m. to 9 p.m.on Fridays. General admission costs $9, or$6 for students with I.D., seniors over 65and children under 12. The retailer Targetsponsors free admission on Sunday. Formore information, call 562/437-1689 orvisit www.molaa.org. �

People In The News• Thomas Phelps has been named chief

corporate strategistand CIO forLaserfiche, a LongBeach based enter-prise content manage-ment company. Phelpshas more than adecade of experienceas a director in

PricewaterhouseCooper’s IT Security,Private and Risk national practice. Whilethere, he led the innovation of content secu-rity practices for the motion picture indus-try as well as other multi-million dollarenterprise-wide engagements for Fortune500 companies.

• Capt. Braden Phillips (ret. U.S.Navy), who serves as administrationbureau chief for the Long Beach PoliceDepartment, has been named “2014

Veteran of the Year” for the 70th StateAssembly District by AssemblywomanBonnie Lowenthal. “Captain Phillips hasdedicated his life to public service,”Lowenthal said. “His work has helpedshape Long Beach, and we owe him a debtof gratitude for his continued service.”According to a statement from Lowenthal,Phillips is a 1968 graduate of the U.S.Naval Academy and served as a specialistin antisubmarine warfare. He amassedover 5,000 flight hours and 500 aircraftcarrier landings. In 1989, Phillips com-manded a deep draft ship, the U.S.S.Ogden, which later deployed to thePersian Gulf in support of OperationDesert Storm. He retired in 1995 after 27years of active duty service.

• Sylvia Lynch has been named chiefinformation systemsofficer for LongBeach City College.She is responsible formanaging all infor-mation technologyand computer sys-tems that support thecollege’s instruc-

tional programs and administrative opera-tions. Lynch has more than 25 years ofhigher education information technologyexperience having worked as the assistantvice chancellor of information technol-ogy services at Rancho SantiagoCommunity College, and as the chiefinformation officer at ChapmanUniversity and Biola University. Lynch isa Long Beach resident.

• Matthew Faulkner has been namedexecutive director ofthe CommunityHospital of LongBeach Foundation.“Matthew has exten-sive experience in allaspects of fundrais-ing, program anddonor development,”

said John Koenig, foundation chair. Mostrecently Faulkner, a Long Beach resident,served as director of individual giving forthe Segerstrom Center in Costa Mesa.From 2004 to 2012 he was director ofdevelopment and external relations forthe USC Lusk Center for Real Estate. Agraduate of Cabrillo College and theAmerican Academy of Dramatic Arts, theEnglish-born Faulkner previously workedas director of economic development forthe Long Beach Chamber.

• Tim Good, a partner at Windes, aLong Beach-based accounting and con-sulting firm, has been elected chair of the43,000-member California Society ofCertified Public Accountants (CalCPA).He previously served the organization asfirst vice chair and treasurer, as well asboardmember. “CalCPA is focused notjust on our profession but, in a largersense, on the impact CPAs can have onsociety and the economy at large,” Goodsaid in a statement. “We’re in the fore-front of the efforts to simplify financialreporting for privately owned companies,to reduce the complexity of tax rules andto promote financial literacy in the gen-

eral population,” Good said in a state-ment. Good is a partner in Windes tax andaccounting services department.

• Dr. Pedram Salimpour has beenelected president ofthe Los AngelesCounty MedicalAssociation, whichrepresents 6,500member physicians.Dr. Salimpourreceived his medicaldegree from BostonUniversity School of Medicine. He com-pleted his residency at L.A.-County USCMedical Center/Keck School of Medicine.According to a statement, he is the CEOand co-founder of Champion HealthEnterprises, a company focused on the cre-ation of novel health ecosystems for NativeAmerican tribes and their business entities.Dr. Salimpour is the 143rd and youngestpresident in the association’s history.

• The ArtExchange Board of Directorsrecently appointed a seven-member advi-sory board “focused on high level vision-ing.” Members are: Joen Garnica,Garnica Interiors, who is serving as chair;Blair Cohn, Bixby Knolls BusinessImprovement Association; Michele A.Dobson, attorney; Douglas Gastaluem,attorney; Jim Lewis, NonProfitManagement and Consulting; StevenPakiz, D.D.S.; and John Thomas, his-toric preservation consultant. The board’s“advocacy and vision will be vital inguiding the ArtExchange in furthering itsobjectives,” Garnica said in a statement. �

www.longbeach.gov/purchasing

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HUD Section 3 ProgramThe City of Long Beach Section 3 Program provides economic and employment

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Bidder RegistrationRegister with the City of Long Beach at www.longbeach.gov/purchasing to receive noti�cations of bid opportunities. Additional details on upcoming

bids and how to register can be found on the website.

Small Business Enterprise ProgramTake advantage of the City of Long Beach Small Business Enterprise (SBE) Program. To learn more about becoming a part of the SBE Program and

certi�cation process, visit the City’s Purchasing website.

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Pat Flynn and Michael Gougis

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Thomas McConville

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Lindsay Christopher

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Vol. XXVII No. 13

July 8-21, 2014

PERSPECTIVE18 Long Beach Business Journal July 8-21, 2014

W hen you live inS o u t h e r n

California, it can beeasy to become lesscautious when it comesto the heat. Being toocomfortable with yourweather environmentcan get you into bigtrouble when it comesto beating the heat.Since 1979, more than7,000 Americans have

died from heat related illness. According toWeather.com, the city of Long Beach experiencesits hottest months of the year in August (avg. highof 84 degrees) and September (avg. high of 82degrees). Long Beach Memorial has some helpfultips and advice so you can enjoy the dog days ofsummer while being safe. First of all, staying cool and safe is tough for every-

one at this time of year. The heat affects people of allages, but the people who are most susceptible to heatcomplications are young infants and children, mid-dle-age people who have chronic medical conditionsand seniors (65 and older). Seniors are often on medications that impair the

body's ability to regulate its temperature or thatinhibit perspiration. Additionally, they lose theirthirst drive as a normal part of aging so they mayneed to be coached to drink adequate fluids.Seniors need to be kept out of the heat and mini-mize outdoor activities to prevent overheating; asthey may not be able to regulate their body temper-ature efficiently. Successful prevention of heat-related illness and

injury requires being aware of the potential for heatstress that can be caused by environmental condi-tions and taking the proper steps to adjust to highertemperatures during outside activities. Specificactions include:

1. Limiting Your Activity• Parents and coaches should support efforts to

restrict organized athletic activities when weatherconditions pose a significant risk for heat injury. • Recommended safety precautions include

more hydration breaks, more frequent player sub-stitutions during organized competition, ensuringa shaded area for rest or canceling athletic activi-ties when the risk of severe heat illness is too high.

• When activity is allowed, completing rest anda cool-down periods after a period of strenuousexercise helps reduce the risk of increased heatstrain during a subsequent exercise period insome children and young adults. Children whoare currently ill should avoid or limit exercise.

2. Finding Creative Ways to Stay Cool• Air conditioning is an expensive luxury that

not everyone can afford, but that shouldn’t stopyou from making your very own homemade airconditioning system. All you need is a fan and abig bowl of ice. The wave of air from the fan willblow across the ice cubes and, as they melt, chilledair will spread and help cool off a small space, likea bedroom or your favorite chair.• Keep a spray bottle in the fridge and when you

feel yourself overheating take it out and spray yourchest and face with some cold water.

3. Hydration is Key• Scheduled hydration breaks are very impor-

tant in children and young adults during the hotmonths of summer because they are more likelyto not fully replenish fluid losses during extendedactivity when dehydrated. • Flavoring water by adding both carbohydrates

and sodium chloride increases fluid intake bymore than 90 percent.

• Cool, non-alcoholic beverages with low sugarlevels are the best sources of hydration.

4. Clothing Matters• Light colors can help reduce absorption of

solar radiation.• Lightweight, loose fitting materials allow for

your body to breathe more and release perspira-tion to stay cool.

5. Getting Acclimated • Getting acclimated to the heat provides the

best protection against heat exhaustion and heatstroke, but this takes repeated exposures to heat.The number and duration of exposures necessaryfor acclimatization varies by age. For example,an older adolescent may become acclimatizedafter four successive days of limited heat expo-sure. In contrast, a young school age child typi-cally needs up to 14 days to achieve the sameacclimation point. There are always going to be risks and obsta-

cles at this time of year when it comes to dealingwith the heat. However, as long as you arethoughtful, plan ahead and don’t underestimate it,then you will be able to safely enjoy the beautifuldog days of the Southern California summer.(Susan Melvin, D.O., is the chief medical offi-

cer at Long Beach Memorial.)

Some people take simplethings and make them

complicated. As we becomewiser we take complicatedthings and make them simpler.In teaching, conversing or per-suasion, this is what turns agood communicator into agreat communicator.We know what it’s like to

have a professor wow us withcomplex ideas. We might beimpressed, but we remain dis-

connected. That’s why we appreciate talented teach-ers who take a complicated idea, give us the big pic-ture, and broaden our ability to grasp the topic.So here’s the question. Are you simplifying

your life? “Simplicity is the ultimate sophistication.” –

Leonardo Da VinciHere are six life-changing benefits from

simplifying.1. Simplicity creates room for growth. As

humans we obsess with collecting stuff. When thehouse fills up, we put the stuff in the garage andpark the car outside. When the garage is full, webuy a storage unit. Getting rid of stuff in our livesand schedules isn’t an option that automaticallysurfaces. It takes energy to do it. And if we don’tmake room, it’s hard for something better to comein. Pruning is necessary for growth.

2. Simplicity aligns with truth. Life can seem com-plex. Yet in reality we are the ones that complicate it.Meryl Streep and Alex Baldwin starred in the movie,“It’s Complicated.” But the thing that complicated“it” were the characters in the movie! Life is simple.As a result, the simple things end up being the rightthings. It takes work to sift out the confusion and getto the nuggets. The work comes in the search forwhat’s true. And since our lives collect clutter, effortis needed to clear it out. Simple and true go together.3. Simplicity leads to satisfaction. At its core,

simplicity is satisfying. It’s settling. It provides hap-piness and peace. There is no peace in complexity– only unnecessary burden and stress. Yes, somethings are more complex than others, but satisfac-tion comes from keeping them as simple as possible. “Everything should be made as simple as possi-

ble, but not too simple.” – Albert EinsteinAs we live simply, we help others to simply live.4. Simplicity clarifies who we are. It makes us

more secure, more in control, more clear in ourthinking, and less anxious. And even though theforces of clutter push against us, there shouldn’tbe anything complicated about being ourselves.It’s like concentric circles. Simplicity helps moveus from “what we do” to “how we do it” to “whywe do it” – our purpose. Simple and “why” workhand and hand. The closer we get to the “why,”the less complicated life becomes. It’s not beingsimplistic. It’s being simple. Simplistic is naïve.Simple is profound. Simplicity helps quarantine

the clutter so we can more clearly see the main thing.“The main thing is to be sure the main thing

remains the main thing.” – Unknown5. Simplicity increases productivity. The engineer,

Kelly Johnson, helped create “Skunk Works” atLockheed in the mid 1900’s. He coined the phrase,K.I.S.S. (Keep It Simple Stupid). There was no intentto imply that engineers were stupid. In fact, it meantjust the opposite! His point was that the jet aircraftthey were designing must be repairable by an aver-age mechanic in the field under combat conditionswith the available tools. His point?

“Things work best if they are kept simple ratherthan made complex.” – Kelly Johnson, Lockheed This is also true of our lives.6. Simplicity cultivates contentment. As we clear

out, scale down, and sift through, we get to theessentials – and we find they are enough. We real-ize that the intimate search for wholeness is notfound in accumulating more things. Simplifyinghelps us focus on what we have rather than what wedon’t have. Our mindset goes from surviving tothriving. As our lives simmer, we steam off thecravings and craziness that happen by default.I am discovering that my success is in my

simplicity.How about you?(Mick Ukleja is the author of several books, a

coach, keynote speaker and president ofLeadershipTraq, a leadership consulting firm.Check his blog at www.leadershiptraq.com.)

� EFFECTIVELEADERSHIP

By Mick Ukleja

Six Life-Changing Benefits From Simplifying

Beating The Heat During The Dog Days Of Summer

� HEALTHWISE

By Susan Melvin, D.O.

I n 2014 there aremany new opportu-

nities and challengesfor the insured, theuninsured, employees,employers, andemployer-sponsoredhealth plans. Whetheremployers continue toprovide a health planin 2014 and beyondmay depend on whatthe employer plan

looks like, the cost of the plan, what competitors’are practicing and, finally, what the political land-scape looks like. Many employers feel it’s a com-petitive advantage to provide a plan to theiremployees in order to attract and retain key talent.But how can an employer comply with theAffordable Care Act (ACA), engage their

employees, and keep their wallets intact? Here arefour steps employers should consider to deter-mine the fate of their benefit programs:

1. Stay informed.A few ACA mandates have been delayed

and/or will be modified by agencies once theyissue final guidance, and an employer’s ability tostay up to date is key to remaining competitive.The “large employer” (50 or more full-time

employees) mandate, also known as the “Play orPay mandate,” has been postponed until 2015.This gives large employers more time to under-stand the requirement to provide full-timeemployees and their dependents health insuranceand avoid paying a penalty to the government ifan employee receives a subsidy when they pur-chase coverage from a state exchange. We needmore guidance to see whether transition reliefwill be granted to non-calendar year plans (plansrenewing on a date other than January 1st) that

� GUEST COMMENTARY

By Ben Alvarado

To Provide Or Not To Provide A


PERSPECTIVEJuly 8-21, 2014 Long Beach Business Journal 19

A s the dynamics of thehousing market con-

tinue to change, one issuethat seems to be ofincreasing concern, notonly to economists but tomany professionals in thebusiness of selling homes,is the vast drop-off in thenumber of younger first-time buyers.

Much of the blame forthis trend has been laid

at the feet of the increasing debt loads that stu-dents leave college with, as well as a stagnantjob market that has seen very little upwardmovement in wages – resulting in youngadults who have less ability than their prede-cessors to make a real estate purchase.

Two-thirds of individuals who haveattended college went into debt for theirdegrees, according to statistics supplied by theCollege Board. Thus, roughly two-thirds ofcollege-educated adults must weigh theirhome purchase against the burdens of the col-lege debt they still carry or their reduced sav-

ings (in the form of smaller down payments) ifthey have already paid off their student debt.The Class of 2014 is said to have graduatedfrom American colleges and universities withthe highest student debt load in history.

And this debt appears to be impacting con-sumers across several age groups, dependingon how long they spend in school and the timeframe for paying off the debt. For instance,40 percent of individuals with student debtbalances are under 30 years old, 42 percentare 30-50 years old, and 17 percent are olderthan 50.

The cost of education appears to be one of thebigger culprits in this disappointing trend, aseducational costs in California for public col-leges and universities have just about doubled inthe five-year period from 2006-2007 to 2011-2012. Nationally they are up 42 percent, accord-ing to the College Board.

A college education is essential to obtain-ing a high-paying job in these times, and inCalifornia the numbers reflect this with a 16percent increase in the number of students inpublic colleges or universities between 2000and 2010. The median wage for four-year col-

lege graduates is twice the median wage ofthose with only a high school diploma,according to the New York Federal Reserve,and in turn, these jobs are a great boon tolocal housing markets. Areas with high-skilled jobs requiring college degrees fosterhigher home prices and rents, and more stabledemand from end users.

However, when obtaining a college degreemeans accruing thousands of dollars of debteven before starting a career, a home purchase– particularly in high-priced areas where thebest jobs are located – is often beyond reach.

Of course there are other factors at workmaking it difficult for the first-time buyer agegroup (25-34 years), such as higher unem-ployment due to the 2008 recession and under-employment with stagnant or lower-payingjobs. But in all of the studies and demographicmodeling, the huge increase in student debtappears to be an overriding negative factor ingetting younger consumers into the market ashomebuyers.

The future forecast as to when this situationcould right itself or return to some semblance ofwhat we had a decade or more ago is somewhat

of a guess. Information from The CaliforniaEmployment Development Office and FirstTuesday pegs a possible recovery by 2018-2020,based on greater job creation and retiring babyboomers downsizing in retirement.

In the meantime, there are some federalprograms to help those with large student debtobligations to reduce their payments throughincome-based repayment plans that extend theloan terms and reduce payments – or even gainloan forgiveness in certain instances with apublic service loan forgiveness program forthose who work at a non-profit or at somegovernment agencies.

The solution isn’t going to be an easy one,with the rising cost of education coupled withan uneasy job market and loan qualificationsthat are more stringent than in the past. But it issomething that the real estate community is fac-ing as the buyers in this segment of the marketmeet increasing challenges.(Terry Ross, the broker-owner of TR

Properties, will answer any questions abouttoday’s real estate market. E-mail questions toRealty Views at [email protected] or call949/457-4922.)

� REALTY VIEWS

By Terry Ross

Student Debt Increasing As Obstacle To Housing

Fundraising forAmerica’s chari-

ties got its annualphysical report lastmonth from the GivingUSA Foundation – andthe vital signs are look-ing promising. Overthe years, the resultsfrom this comprehen-

sive study have come toserve as the baseline formost fundraising com-parisons and the direc-tional compass for the

entire nonprofit sector.The good news is that, during 2013, Giving

USA reports a total of $335.2 billion in monetarycontributions was shared with religion, arts,health, human services, public safety, the environ-ment, animal welfare, and international affairs.More than 85 percent of that generosity was con-tributed by individuals like you and me, as well asthrough bequests and family foundations.

It’s taken a number of years since the eco-nomic plunge of 2009, but most of the subsec-tors during 2013 finally surpassed their previousfundraising peaks realized in 2007 and 2008.

The largest rebounders are education institu-tions. Not only has education realized a 37.2 per-cent growth in contributions since 2009, givingto these institutions jumped 8.9 percent between2012 and 2013. Arts, environmental and animalwelfare organizations aren’t far behind. Each isvying for place and show in the fundraising race,with each realizing more than a 20 percent jumpin their charitable contributions since 2009 andat least a 7.5 percent jump in their respectiveresults over the previous year.

Perhaps a more interesting story is about thesubsectors that aren’t faring so well: Religiousorganizations, including churches and syna-gogues, have not yet surpassed their fundraisingyields of at least six years ago. Internationalorganizations saw a dip in contributions of nearly7 percent between 2012 and 2013, and have suf-fered an overall loss of 16.1 percent since 2009.

It’s a changed landscape in American philan-thropy; and, for the fundraising junkies in thecrowd, there are three undisputable trendsemerging that every nonprofit organizationmust acknowledge in its resource developmentand strategic planning: The first is thatbequeathed contributions, those dollars thatpeople earmark in their wills and estates forcharity, is the hottest source of new funds.

Bequeathed dollars are up over 33 percent since2009 and this form of philanthropy is the largestgainer among all others with a growth rate ofnearly 9 percent during the past year for a totalof $27.7 billion.

The second trend is that loyalty to charitiesisn’t what it once was. Attrition rates amongstgivers is now at 12 percent. That means forevery 100 contributors a nonprofit has this year,it will take reaching out to 112 next year just tokeep participation levels flat. Tracking givers isas important as tracking dollars.

The third trend is not new, even though thereare too many organizations which act as thoughit is: Corporations represent 5 percent of theentire philanthropic pie; and foundations,another 15 percent.

Any nonprofit that is enjoying corporate andfoundation giving that is more than 20 percentof its total charitable income is living on bor-rowed time and is out of pace with the sector.The new normal is for a grant, at best, to have atwo-year lifespan. Today, most grantmakerswant to see, in advance, how their investmentswill be sustained before cutting the first check,to avoid the risk of starting something and thenfacing its stoppage when the grant runs out.

The real story hidden in the wealth of data

released by Giving USA is what’s behind thenumbers: What would have been considered“normal” fundraising activities behind the pre-recession stats of 2009 is anything but normalfive years later.

Every boardroom, executive director’s officeand development staff work area should have aposted sign that reminds its readers that thereare four drivers of the new normal in fundrais-ing: engagement, experience, evidence andelectronics.

A simple translation to these “e-words” is:Sell what you stand for instead of what youdo; continuously invite people to participate inand personally feel good about what you do;constantly deliver data that proves your value;and, communicate in bytes.

As in selling, there is a fundamental differ-ence between raising money the hard way andraising it the smart way. This year’s report cardon philanthropy is clearly showing those non-profits that understand the new math behindtheir fundraising sums and those that don’t.(Jeffrey R. Wilcox, CFRE, is president and

chief executive officer of The Third SectorCompany, Inc. Join in on the conversation aboutthis article at the Long Beach Business Journalwebsite www.lbbusinessjournal.com)

� THIRD SECTORREPORT

By Jeffrey Wilcox

The New Normal In Fundraising:It’s What’s Behind The Numbers That Counts

would delay this effective date to the first planyear beginning after January 1, 2015.

The effective date of the automatic enroll-ment mandate (imposed on employers withmore than 200 employees) is yet to be deter-mined, as well as the effective date of thenondiscrimination rules applicable to fullyinsured plans that lost their grandfatheredplan status. These rules would require thoseinsured plans to comply with rules similar tothe Internal Revenue Code § 105(h)(2)nondiscrimination rules.2. Understand your immediate compliance

deadlines.There are a number of other ACA changes

that take place in 2014 that are not affected bythe delay of the Play or Pay mandate, andemployers must modify their health plans nowto be in compliance. Those changes include amaximum 90-day eligibility waiting period,

prohibition on all pre-existing condition limi-tations, prohibition on dollar caps on essentialhealth benefits, expansion of wellness incen-tives, dependent coverage up to age 26(regardless of dependent’s access to own cov-erage), various plan design requirementsapplicable to non-grandfathered health plans,expiration of waivers for certain limited med-ical plans, and assessments and payments ofvarious ACA-related fees.3. Look for opportunities.Employers should not let a few rules stop

them from exploring creative solutions. Self-funding is a very attractive alternative. Smallto mid-sized employers (50-250 employees)who may have thought that only the largestemployers can self-fund are finding their tol-erance for risk to be acceptable in this newand changing environment. Designing a self-funded plan can be made easier with the aid of

certified self-funding specialists. It is also away to offering minimum essential coverageto full time employees, thereby complyingwith one of the aspects of the ACA.

Employers are also f inding that designingand funding these new health and welfareplans can help them meet rules for a vari-able hour workforce, cap their expendituresand allow them to maintain focus on theirbusiness.4. Look ahead.Once the employer has addressed its imme-

diate compliance needs under the ACA, thenext challenge is to control health care costsas an increase in the number of insured lives(employees and dependents) and populationcontinues to age and suffer from chronichealth conditions. Employers will be requiredto understand their employee population’srisks and find programs or processes to

reduce health care spending as they are facedwith a new risk, the imposition of excise taxesif their health care costs are over the thresh-olds set by the federal government (“CadillacPlan Tax”).

In the past, designing the right health bene-fits package was a matter of choosing oneinsurer’s plan over another’s, a decision drivenlargely by cost and services. Today, the deci-sion about what to do with health benefits isbest made with the help of knowledgeableexperts and a thoughtful approach. No matterwhat lies ahead with respect to the fate of theACA, employers should look for insurancepartners who can help them identify financialrisks and develop customized solutions fortheir group health plans, their employees andtheir business.(Ben Alvarado is president of Orange County

Coast Community Bank for Wells Fargo.)

Health Plan? That Is The Employer’s Question


July 8-21, 2014 Section A

Documents

Transcript of July 8-21, 2014 Section A