1_April_10_2018_issue_LBBJ 4/7/18 2:14 PM Page 1

April 10-23, 2018 Long Beach’s Newsmagazine www.lbbizjournal.com

Inside This Issue 44th Toyota Grand Prix Of Long Beach Despite

With a new Challenges, contract in hand after beating Urban Commons back an attempt to replace IndyCar with Makes Progress , Long Beach Entrepreneurs Join Jim Michaelian is Forces To Stop Plastic Pollution pumped for this On Queen Mary Page 16 year’s running of the Toyota Repairs Grand Prix of Long Beach. (Business Journal I By SAMANTHA MEHLINGER photograph) See story Page 6) EDITOR Legendary race rom a distance it appears as though the car driver and FQueen Mary has one freshly painted, bright 1963 winner of red and black stack. Up close, though, it is appar- Councilmember Price Weighs In the Indianopolis ent that the paint is peeling. And the other two On Police Scraping Body-Worn 500, Parnelli stacks remain unpainted, dulled to a light pink. Cameras For New Pilot Process Jones reflects on It’s a visual representation of the complications an auto racing Page 26 of revitalizing and caring for an immobile, his- career that toric vessel – an effort that is, in some ways, like began with a navigating unchartered territory. jalopy race at Under previous leaseholders, the ship was neg- age 17 in 1950. lected to the point that it developed structural is- (Business Journal sues, thousands of leaks, and a myriad of other photograph) problems of the sort that are bound to crop up when See story Page 8) an aging metal ship sitting in water isn’t given the From Sports care she needs. When Urban Commons took over Illustrated “Driver the ship and surrounding property in 2016, the lease of the Year” in with the City of Long Beach was structured so that 1962 to the (Please Continue To Page 19) Small Business Showcase: owner of a Orange Ave. & Carson St. racing empire, Page 30 talks about his Local Leaders success in 2 PortSide . Support Legislation 2 In The News (Scott LePage 4-13 Toyota Grand Prix LAT/USA Extending Alcohol photograph) Of Long Beach See story Page 10) 14-18 Going Green Sales Until 4 A.M. 19-21 Real Estate & Development 20 Realty Views ‘The Hangout’ To Grow In Size, Take Over I By BRANDON RICHARDSON 24-29 Newswatch Space Of Former Vintage Store In Retrospect SENIOR WRITER • Proposal To Combine Local C alifornia legislators are in the process of Utilities Moves Forward determining whether or not six cities, in- I ANNE ARTLEY sowner on the street plans to transform the cluding Long Beach, will be given the ability to • Ballot Initiatives Halfway There By STAFF WRITER space into a shop and collaborative space allow alcohol sales until 4 a.m. At least two city • Newsprint Tariffs Could Spell Bad for artisans. leaders are in favor of the proposal as outlined in News For American Print Media D ue to the “one-two punch” of declin- “We probably could’ve weathered one or Senate Bill (SB) 905 – with one stipulation. • Options For Community Hospital ing sales and increasing rent, vintage the other,” owner Chris Giaco said, “But both “I don’t support 4 a.m. hours citywide, I don’t store In Retrospect, located on 4th Street’s at the same time became an unsustainable sit- think that works. I think that would be very dis- • List Of Job Killer Bills Released Retro Row, closed February 25 after six and uation.” Giaco also serves as the president of ruptive to a lot of the neighborhoods,” Mayor 30 Small Business Dollars & Sense a half years of operation. Another busines- (Please Continue To Page 24) (Please Continue To Page 25)

Long Beach Business Journal PRSRT STD 2599 E. 28th Street, Suite 212 U.S. POSTAGE Signal Hill, CA 90755-2139 562/988-1222 • www.lbbizjournal.com PAID Los Angeles, CA PERMIT NO. 447 CHANGE SERVICE REQUESTED By Editor Samantha Mehlinger Parsing The Young Generations It has become increasingly apparent to me that a are unfamiliar) do not seem to realize that the next lot of folks are still struggling to understand how old generation is already here. Millennials actually are and where to draw the line In March, Pew Research Center decided where with the next generation. In fact, many people I en- it would draw the line between Millennials and the counter on the regular (that’s a delightfully Millen- next generation. Anyone born between 1981 and nial way of saying “regularly,” for those of you who 1996 (that’s adults aged (Please Continue To Page 23) 1_April_10_2018_issue_LBBJ 4/7/18 2:02 PM Page 2

Page 2 • April 10-23, 2018 • Long Beach Business Journal In The News

PortSide Keeping Up With The Port Of Long Beach

For Nathan Shaw, dive supervisor for the Port of Long Beach, every day on the job is different, thanks to changing water conditions and an ever-growing list of below- water tasks. “We maintain all the subsea infrastructure for the port,” Shaw, who has worked as a diver for the port for nearly 10 years, said. The seven-person dive team is responsible for maintaining a myriad of infrastructure, including piers, fire boats, bridges, docks and more. “One of the bigger challenges we face is visibility,” Shaw said, explaining that the silt in the harbor impairs visibility when disturbed. “If we can see our hands it’s a really good day. . . . So being able to complete a task when you can’t see anything is probably one of the more challenging aspects of the job.” The team, which used to work for the port on a contract basis but is now integrated into port staff, is also on call for emergencies. The divers operate from a Vietnam War-era Army vessel with a crane and a movable bow ramp that enables them to re- cover objects from the water. In one instance, the team was called out to retrieve the wreckage of a plane that had crashed in the harbor, Shaw recalled. The team also reg- ularly finds and removes a variety of debris from the port’s waters. Near the old Navy shipyard, Shaw once found thousands of plates he suspects were tossed overboard by

a Navy private who didn’t want to do the dishes. “I like it a lot,” Shaw said of his job. Photograph by the Business “They have been really good to me and I have no intention of going anywhere else.” Journal’s Samantha Mehlinger – Editor Samantha Mehlinger

Mayor Welcomes Long Beach Native As place her on the board. rollment services, counseling, financial aid New Additions At Ship & Shore Environmen- New Communications Martinez has served on and student affairs. His most recent position tal – Signal Hill-based Ship & Shore Environ- Deputy – Veronica the commission since was executive dean of counseling and stu- mental, Inc., a pollution abatement firm, Quezada has been named 2013. During that time, dent equity at Rio Hondo College. appointed Mike Pawlowski, Gunnar Peterson Mayor Robert Garcia’s she oversaw consecutive Long Beach Chief Information Officer To and Michael Rupp as senior sales managers. communications deputy. years of record cargo Serve At Los Angeles As senior sales engineering manager, She previously worked growth and the develop- Metro – Bryan Sastokas, Pawlowski has four decades of experience for Time Inc. conducting Lee ment of the 2017 Clean Long Beach’s former within the power generation, plastics, specialty audience engagement for Money Magazine. Air Action Plan update. chief information officer chemical and consumer products markets. Quezada graduated from the University of Two New Vice Presidents Appointed At and director of the city’s Serving as senior technical sales manager, Pe- Southern California, where she majored in Long Beach City College – Long Beach technology and innova- terson has vast experience in the remediation broadcast journalism and Spanish. She is a City College recently an- tion department, will sector, specializing in applications where sites Long Beach native and current city resident. nounced two new execu- serve in the same role for the Los Angeles are contaminated with chlorinated or hydro- New L.A. Harbor Commissioner Appointed tive staff appointments: Metropolitan Transportation Authority, the carbon and co-mingled volatile organic com- As President Steps Dr. Kathleen Scott as the nation’s third largest transit agency, begin- pounds (VOCs) and in-organics. Rupp, Down – The Port of Los vice president of aca- ning April 9. In addition to leading technol- serving as head of oxidizer and aftermarket Angeles announced that demic affairs and Dr. ogy initiatives, Sastokas will also help sales, has two decades of sales and engineering Vilma Martinez stepped Mike Munoz as vice prepare Los Angeles to host the 2028 experience in regenerative thermal oxidizers down last week as presi- Scott president of student sup- Olympic Games. and VOC concentrator systems. I dent of the Los Angeles port services. Scott was Harbor Commission to- previously the acting vice Martinez morrow. Los Angeles president of academic af- Mayor Eric Garcetti appointed Jaime L. Lee, fairs, and will continue to who has served as board president and com- oversee the college’s aca- missioner on the Los Angeles City Employ- demic programs and ees’ Retirement System Board of deans. In his new role, Administration for the past four years, to re- Munoz Munoz will manage en-

Vol. XXXI No. 7 • April 10-24, 2018

PUBLISHER the State of California in July Advertising/Editorial Deadlines George Economides 1985. It is published every other Wednesday prior to publication SALES & MARKETING Tuesday (except between Christ- date. Note: Press releases mas and mid-January) – 25 should be faxed, mailed or e- EXECUTIVE copies annually. The Business mailed to: [email protected]. No Heather Dann Journal premiered March 1987 follow up calls, please. For a SPECIAL ASSISTANT as the Long Beach Airport Busi- copy of the 2018 advertising Pat Flynn ness Journal. Reproduction in and editorial calendar, please whole or in part without written e-mail or fax request to permission is strictly prohibited 562/988-1239. Include your EDITORIAL DEPARTMENT unless otherwise stated. Opin- name, company and address EDITOR ions expressed by perspective and a copy will be sent to you. Samantha Mehlinger writers and guest columnists are Distribution: Minimum 22,000. SENIOR WRITER their views and not necessarily Regular Office Hours those of the Long Beach Business Brandon Richardson Monday-Friday Journal. Send press releases to STAFF WRITER 8:30 a.m.-5:30 p.m. Anne Artley the address shown here: Office Subscriptions: 2599 E. 28th Street, Suite 212 25 issues – 1 year Signal Hill, CA 90755 Standard Bulk Rate: $30.00 The Long Beach Business Journal Ph: 562/988-1222 (add $2 if paid by credit card) is a publication of South Coast Fx: 562/988-1239 1st Class: $70.00 Publishing, Inc., incorporated in www:lbbizjournal.com (add $3 if paid by credit card) FREE: Sign up at lbbizjournal.com for Monday Morning Coffee & BizBrief (e-mail sent out at 6 a.m. every Monday about issues, events, meetings for the week; BizBrief is news of the day, sent out around 4 p.m., Monday-Friday) Find us on Facebook • Follow us on Twitter: @LBBizJourn 1_April_10_2018_issue_LBBJ 4/7/18 2:02 PM Page 3 1_April_10_2018_issue_LBBJ 4/7/18 2:02 PM Page 4 1_April_10_2018_issue_LBBJ 4/7/18 2:02 PM Page 5 1_April_10_2018_issue_LBBJ 4/7/18 2:02 PM Page 6

6 • April 10-23, 2018 • Long Beach Business Journal Toyota Grand Prix Of Long Beach

Pictured, clockwise from top right, are members of the Grand Prix Association of Long Beach staff: Steven Halley, customer service representative; Cindy Forster, controller; Cecelia Ruebel, customer service representative; Tammy Johnson, manager of customer service and ticketing; Martin Bannon, director of marketing and sponsorship; Aileen McBride, marketing assistant; Gemma Bannon, HR and office man- ager; Allison Wilson, manager of advertising and promotions; Jim Michaelian, president & CEO; Joey Soto, merchandise assistant; Edmund Valvao, merchandise assistant; Richard Martinez, manager of corporate sales; Chris Esslinger, director of communications; Sandy Hendrix, administrative assistant to the director of marketing; Nick Kopinski, public relations assistant, and Gordie Morris, staff writer. (Photograph by the Business Journal’s Brandon Richardson) The Toyota Grand Prix Of Long Beach Returns With Added Intrigue And Staying Power

I By SAMANTHA MEHLINGER Trans-Am, which I think the public will even and The Cult is on Saturday,” Michaelian Pre-race, free events like Roar In The EDITOR more identify with because those are the cars said of the lineup. Shore on 2nd Street and Thunder Thursday that were on the street in the late ’60s and The Grand Prix also has new official in Downtown Long Beach were also a hit Coming off of a successful event in 2017, ’70s,” Michaelian said. “They were the cars beers – Coors Light as the official domestic last year, according to Michaelian. Last year the Toyota Grand Prix of Long Beach is that we called muscle cars. Those are the cars beer, Modelo as the official import, and was the first time that Thunder Thursday, back – and, after being reaffirmed last year that we owned as kids. And when the Trans- Ballast Point as the official craft brew. a free community event with motorcycle by the Long Beach City Council in lieu of Am Series was going, it was really popular.” The Grand Prix Association is continu- stunts, race car displays, racing simulators a Formula One-based event, it’s here to stay. The main event, Sunday’s IndyCar race, ing its various community partnerships for and more, was held in front of the Pike Event attendees are again in for three days also promises added excitement this year the event, including an expanded relation- Outlets. “We had 5,000 people down there packed with roaring race cars, soaring super thanks to an expanded pool of cars and new ship with the Boy Scouts, who are assisting sitting in the grandstands and mingling in trucks, classic muscle cars, dramatic drift- body work on the vehicles. “There are 24 the longstanding Grand Prix volunteer that Pike Outlet area. That helped to kick ing, off-track activities for all ages, and, of entries, six rookies,” Michaelian said. group, the Committee of 300, with usher- off the weekend,” Michaelian said. “We’ve course, fierce competition on the racetrack. “With this new body work, they took away ing in the grandstands. As part of the part- modified the layout so we can get more “I think the opportunity to present a va- a lot of what’s called downforce. And with- nership, the Boy Scouts are allotted a space people in there [this year].” riety of different forms of racing is really out getting real technical, what that means within the Lifestyle Expo. “We think the After the Long Beach City Council de- one of the keys to making this event at- is that the cars are freer, looser – which Boy Scouts are an integral part of the com- cided last year to stick with the Grand Prix tractive,” Jim Michaelian, president and means that the driving aspect of the com- munity and we wanted to showcase them at Association of Long Beach-run IndyCar CEO of the event’s organizer, the Grand petition has been heightened.” our event,” Michaelian said. event rather than allowing another organ- Prix Association of Long Beach, told the Removing downforce, an aerodynamic el- This year, the Grand Prix Association has izer to bring Formula One in instead, the Business Journal. “You have open wheel ement that causes the cars to be more stable, partnered with the Long Beach Unified Grand Prix is now guaranteed to continue [race cars], you have sports cars, you have means that the drivers will have to work School District and Banc of California to on for the next five years. As part of that trucks flying through the air. You’ve got harder, Michaelian explained. “That’s a good bring STEM (science, technology, engi- agreement, the association committed to a drifting at night, and you’ve got historic thing in the sense that it identifies those who neering and mathematics) students to the quicker setup and take-down time for the cars of a different era. They all have a dif- have the real driving skill,” he said. event (see story in this section). “The event beginning this year. ferent look, a different feel, a different Michaelian said a new element intro- things that we do to integrate ourselves in “We waited a full week to begin installa- sound, a visceral effect to them.” duced last year, a welcoming area at the the community, whether it’s youth or tion. It used to be 60 days, now it’s 53 The main ingredients for race weekend Long Beach Boulevard entrance to the schools or [the work of] the Committee of days,” Michaelian said. “We also delayed remain the same this year, with one key event with a beer garden, seating and a big 300 or the Grand Prix Foundation with putting in . . . some of the safety system in exception. Last year’s replacement for the screen for watching the action, will return their charitable donations, all are things front of the Aquarium. And we also agreed Toyota Pro/Celebrity Race, a longtime fan this year. “We’re not only bringing it back, that are intended to further establish or to to remove tire marks in specific locations favorite that was retired in 2016, was the we’re doing some new things in there,” he further reinforce that relationship between around the circuit, which was a request of Can-Am Challenge – a Saturday competi- said. A small stage will be added for a us and the community,” Michaelian said. some of the downtown stakeholders.” tion that brought classic race cars to the lineup of contemporary acts, including With about 183,000 attendees, last year’s “The residents and the citizens of this streets of downtown. This year, that event street performers, musicians and dancers. event was “a record high for the modern city need to feel proud of this event – is replaced with the Historic Trans-Am This year, the Grand Prix has a number era,” Michaelian noted. Last year, 95% of whether they come to this event or not, it Challenge, a race of 1970s-era muscle of new sponsors for various components respondents to the race weekend fan survey doesn’t matter,” Michaelian reflected. “But cars – Mustangs, Javelins, Firebirds, Ca- of race weekend. SMG, the group that rated their experience as either “excellent” we want to conduct this event in a way that maros – including a couple of vehicles manages the Long Beach Convention & or “good,” he pointed out, adding, “I think everybody says, you know what, I’m proud driven by the likes of famed racers Par- Entertainment Center where the Grand that’s an indication of people’s level of sat- of the fact that our city hosts the Grand nelli Jones and . Prix Lifestyle Expo is held, is sponsoring isfaction with what the event is bringing Prix. That’s important to us.” “We’ve replaced the Can-Am as the his- the event’s Friday and Saturday night con- and the entertainment value and the overall For tickets and the schedule of race week- toric component of the weekend with the certs. “We have Ozomatli on Friday night, impression they get of the event.” end events, April 13-15, visit gplb.com. I 1_April_10_2018_issue_LBBJ 4/7/18 2:02 PM Page 7 1_April_10_2018_issue_LBBJ 4/7/18 2:02 PM Page 8

8 • April 10-23, 2018 • Long Beach Business Journal Toyota Grand Prix Of Long Beach Parnelli Jones Reflects On His 1970 Trans-Am Win, Famed Career Grand Prix Trans-Am Challenge To Bring Vintage Race Cars To Long Beach Streets

I By SAMANTHA MEHLINGER Boss 302 Mustang, competing for Ford in Jones recalled in an interview with the didn’t make the turn. . . . And he ran in the EDITOR the Trans-Am Series alongside teammate Business Journal at his office in Torrance. side of me, knocked me off the course.” . The race would end up “I started lapping a back-runner car. And Jones got back on the track with a damaged It was 1970, and famed race car driver being one of his toughest, and proudest, as I went underneath him, he was looking spoiler and caved-in door. But the car Parnelli Jones was hurtling along the River- victories. in his mirror at another car because he was wouldn’t turn. side International Speedway in a yellow “I was the fastest qualifier at Riverside,” defending himself. And when he did, he “Because it wouldn’t turn, I’d have to hit the curbing and get the car on two wheels to make a turn,” Jones said. For the duration of the race, Jones had to bounce his car off the wall at every turn. Despite the odds, he pulled out of eighth or ninth place, passed his teammate, and won the championship for Ford. “I always said it was one of my best races that I had ever run. . . . It’s one of the toughest races I ever drove.” Jones has a soft spot for that Mustang, and he’ll soon see it again racing through the streets of downtown at the Toyota Grand Prix of Long Beach’s newest event, the Historic Trans-Am Challenge, held during race weekend on April 14. The classic car will be up against other Trans- Ams of the 1970s era of racing, driven by their current owners. Jones said he’ll be there, watching – and hoping he doesn’t see the classic vehicles get banged up. “The competition in the 1970 series was really tremendous,” he said. At the time, the Trans-Am series was a manufacturers’ competition rather than a drivers’ champi- onship, he noted. “We had a lot of top name race drivers. You know, Dan Gurney . . . Mark Donohue, who was a real threat.” Trans-Am vehicles were the “stock car version of a pony car,” Jones said. “They were called pony cars because they were smaller and more set up for road racing, as opposed to oval racing high-bank [courses] like NASCAR runs.” Because the Trans-Am series was popular in the ’70s, the cars that raced in the series at the time have become quite expensive. Racing them along the course of the Grand Prix track could be risky – if a car spins out, it’ll crash into a wall, Jones noted. “It’s kind of like renting a real expensive car and crashing it,” he said with a chuckle. Jones won the in 1963 and would have won it again in ’67 had his car not quit on him with just a few laps left to go. “But right before it quit, I was thinking winning again was not going to be as exciting as it was the first time,” he said with a laugh. “So I made a deci- sion at that time to quit running open cockpit cars, which meant . That’s why I started doing the stock cars and off-road and Trans-Ams – cars that had a roll cage over my head,” he recalled. Jones also married in ’67, and having a family played into his decision to race in At top, famed race car driver Parnelli Jones joins Grand Prix Association President & CEO Jim Michaelian to kick off track construction for the 44th Annual safer vehicles. Toyota Grand Prix of Long Beach. The vehicle pictured, a Boss 302 Mustang, was driven by Jones in the 1970 Trans-Am Series. Below, Jones is pictured in his garage in front of a photo of that race. Although the car in his garage is similar to the vehicle he drove to the win in 1970, Jones said it doesn’t Jones has competed in several series have the same power. (Photograph by the Business Journal’s Samantha Mehlinger) and won in all of them. A native of 1_April_10_2018_issue_LBBJ 4/7/18 2:02 PM Page 9

Long Beach Business Journal • April 10-23, 2018 • Page 9 Toyota Grand Prix Of Long Beach

Arkansas and transplant to Southern Cal- they’re just lacking that little bit of desire ifornia, Jones famously sold his horse as at the end. I’ve always carried myself as a teen and used the money to buy his first not so much talent as desire. I couldn’t hot rod. He started out in jalopy races stand to lose.” under the pseudonym “Parnellie” Jones In 1970, Parnelli and business partner (his real name is Rufus Parnell Jones), so Velko Miletich established Vel’s Parnelli that his parents wouldn’t find out. The Jones Racing and won the Indy 500 as car nickname was bestowed upon him by a owners with driving in 1970 and friend who teased him about a crush he 1971. It was as an owner that Jones became had on a girl named Nellie. The name involved in the Grand Prix of Long Beach, stuck (although the e was dropped), his running Al Unser and in the parents found out, he dropped out of high inaugural Formula 5000 race in 1975. school, and he made a name for himself Jones said he attends the Grand Prix at jalopy races all over Southern Califor- every year. “I have always wanted to help nia throughout the 1950s. the Long Beach Grand Prix as long as I Jalopy racing gave way to glory in could because it’s not only valuable for sprint car, stock car, off-road and midget Long Beach, in my opinion, but it’s in- car racing. Among his many racing acco- valuable for IndyCar racing, period. Be- lades, Jones won the 1963 Pikes Peak In- cause next to Indianapolis, it’s our second ternational Hill Climb, and broke the largest crowd,” Jones said. stock car speed record in the same year. “I am real proud of the Long Beach He won five of nine midget car events, in- people not catering to Formula One, be- cluding the Turkey Night Grand Prix, in cause Formula One usually prices them- 1966. He won the Mexican 1000 off-road selves out of the market. And they’re not championship in 1968 and in 1973. He good for the long run,” Jones noted, refer- boasts six IndyCar race wins, four wins ring to the decision by the Long Beach in 34 NASCAR starts, 25 midget car wins City Council last year to continue allow- and 25 sprint car wins. ing the Grand Prix Association of Long “They’re all tough. Everybody wants to Beach to host the race as an IndyCar-cen- win,” Jones said, when asked what series tered event, rather than going with another was the most challenging. “A lot depends organizer pitching Formula One. on your personality, too. I know a lot of Jones reflected, “I’m behind the Grand race drivers are good race drivers, and Prix 100%. Have been from the get-go.” I 1_April_10_2018_issue_LBBJ 4/7/18 2:19 PM Page 10

10 • April 10-23, 2018 • Long Beach Business Journal Toyota Grand Prix Of Long Beach

“Racing is [the] common thread in our company, Roger Penske’s Racing Empire: and we take the lessons we learn in motorsports and apply it across all of our businesses – ‘Our Teams Push Each Other’ from teamwork, to persistence and attention to detail. – Roger Penske

I By MICHAEL GOUGIS ing, Pennsylvania, but in 2005 we began CONTRIBUTING WRITER the process of bringing everyone to- gether into our new facility in Roger Penske’s name is synonymous Mooresville, where our NASCAR teams with racing at the very highest levels of called home. the sport. If you’ve heard of the race or the “The move to bring all our teams series, Penske likely has been there and under one roof has been terrific for our won – or had a damned good shot at a win. organization overall. There are a lot of Daytona 500? Won it twice. Formula synergies between our teams, from per- One? Won there. Long Beach Grand Prix? sonnel to fabrication and design and even Multiple wins, multiple series. 24 Hours in training and how our pit crews work to of Daytona, the 12 Hours of Sebring? improve their performance. Our teams Check. Indy 500? Won that one 16 times. push each other, and it has raised our For more than half a century, Penske’s level of competition across the board.” immaculately turned-out vehicles have looks like a solo effort, as raced into the record books and into leg- at the end of the day there is only the end around the world. The Penske Ca- driver, the car and the track. But there maro and AMC Javelin Trans-Am cars are few human endeavors where a team are objects of mythical proportions in is needed from bottom to top to achieve racing circles. The elegant Sunoco-liver- success, and Penske says the biggest ied McLaren M-16B that Mark Donohue challenge is putting the team in place. raced to the 1972 Indy 500 win for “We’ve always said that our greatest Penske defined the shape of open- resource is our people. We believe we wheeled race cars in the U.S. for years. work with the best in the business,” And the mere mention of the tur- Penske says. “One of the biggest chal- bocharged flat-12 Porsche 917-30 that lenges we face as we have continued to Penske and Donohue developed in con- expand our racing teams is making sure junction with the German manufacturer that we have the best people working in will make the hair stand on the arms of the right positions within our company. motorsports fans. Seriously – that thing It is always something that we focus on was a flat-out beast. as we continue to try and improve our Today, Penske races in a wide variety overall performance.” of series, from sports cars to open-wheel- Donohue’s autobiography, “The Un- ers to stock cars in North America and fair Advantage,” details the way that Australia. Penske does racing. It’s a well-funded, “We certainly have a full plate right fully professional attack on the goal, now. Our teams are competing in more with the team looking for every edge, series than we ever have at one time,” every development that gives it an ad- Penske told the Business Journal via e- vantage over the field. Penske is always mail. “Currently, is racing looking to the future of motorsport and in the Monster Energy NASCAR Cup feels that is the only way to remain suc- Series, the NASCAR XFINITY Series, cessful. The history of racing is littered Roger Penske, owner of racing empire Team Penske, talks over the radio during an IndyCar race at a past the Verizon IndyCar Series and the IMSA Toyota Grand Prix of Long Beach. As a team owner, Penske has won the Indianapolis 500 16 times. Team with the remnants of teams, companies WeatherTech SportsCar Championship Penske also operates race teams for other series, including the NASCAR XFINITY Series. (Photograph provided and race operations that simply failed to here in North America. We also partner by the Grand Prix Association of Long Beach) keep up with technology or the business with Dick Johnson Racing in Australia and attention to detail. We enjoy the com- WeatherTech SportsCar Championship is a needs of the sport. on our DJR Team Penske Shell V-Power petition, and each racing series where we high-tech prototype closed-wheel, closed- Penske has survived those challenges for team that races in the Virgin Australia Su- compete provides a different and unique cockpit sports racer. They are widely dif- decades and intends to continue to do so. His percars Championship.” challenge,” Penske says. “The one thing ferent cars, run on widely different tracks son, Jay Penske, chairman and CEO of Racing teaches you lessons, usually hard about racing that I enjoy the most is that from the high banks of Daytona to the tight Penske Media Group, also owns Dragon ones about how easy it is to lose and how you get your quarterly report every week. streets of Long Beach. Racing, which competed in IndyCar for sev- much work it takes to win. Penske says the You learn each race where you stack up The biggest opportunity is the accumu- eral years before making the switch to the racing operation – which alone employs against the competition, so you have to stay lation of so much technology and knowl- all-electric Formula E series. Penske says he more than 500 people – sets the tone for on top of your game.” edge in one facility. And for several years is keeping an eye on that series as well as Penske Corporation, a $29 billion trans- Racing in so many different series with now, that has been literally true – Penske’s looking for other emerging opportunities. portation, auto retailing and racing con- such a wide range of technology, vehicle North American racing operations are now “There are many unique forms of motor- glomerate with operations around the configurations and circuits present oppor- all located in one building. sports today and it is interesting to see what world and 59,000 employees. tunities and challenges, Penske says. Indy- “All of our North American race teams appeals to the different fan bases and man- “Racing is [the] common thread in our Car is an open-wheel series with are based out of one shop in Mooresville, ufacturers,” Penske says. “In any business company, and we take the lessons we learn small-displacement turbocharged engines. North Carolina, about an hour north of you always need to pay attention to the in motorsports and apply it across all of our NASCAR’s sedans are powered by big- Charlotte,” Penske says. “For many years changing trends and opportunities, and that businesses – from teamwork, to persistence bore V8s. The Acura ARX-05 in the IMSA we operated our IndyCar program in Read- is certainly true in motorsports.” I 1_April_10_2018_issue_LBBJ 4/7/18 2:02 PM Page 11

Long Beach Business Journal • April 10-23, 2018 • Page 11 Toyota Grand Prix Of Long Beach Private And Public Sectors Come Together To Educate Students At The Grand Prix

Banc Of California, Catalina Express Team Up With Grand Prix Staff

I By BRANDON RICHARDSON president of marketing at Banc of California. SENIOR WRITER She said the bank saw the type of work King Taco was doing with the Grand Prix in terms About 100 high school students from the of community outreach and was inspired to Long Beach Unified School District do the same. Talks between the GPA and the (LBUSD) will arrive at the Long Beach bank regarding student involvement began Convention & Entertainment Center on Fri- last year, Haugh explained. day, April 13, for a day of work-based “It’s pretty impressive what [the GPA] learning experience courtesy of a partner- does with its small staff and how it impacts ship between the school district, the Grand Long Beach. It’s a huge city and has lots of Prix Association of Long Beach (GPA), pockets of lower income areas. I love the fact Banc of California and Catalina Express. that they go into those areas,” Haugh said. “This is one of the best examples of “This is part of who they are – they are put- work-based learning experiences we can ting on a race, but they are also about the offer students because they not only get to community and the kids and empowering. So hear about someone talk about an industry, it’s great to partner with somebody that has but they get to literally see it, hear it and that same focus and that same commitment.” feel it,” Pete Davis, assistant superintendent Following the lunch-and-learn program, of high schools at LBUSD, said. “Us being students will have the opportunity to watch The Grand Prix Association of Long Beach teamed up with the Long Beach Unified School District able to do that for 100 kids at one time is practice laps from the promenade outside the (LBUSD), Banc of California and Catalina Express to give 100 high school students a work-based learning experience at the 2018 Toyota Grand Prix of Long Beach. Pictured at the Grand Prix track pretty amazing. Opportunities like this convention center, Davis said. Also during this along Shoreline Drive is Banc of California Community Reinvestment Act Vice President Chris Garcia, don’t come along every day.” time, students may speak with GPA staff about left, with the school district’s Assistant Superintendent of High Schools Pete Davis. (Photograph by When students arrive at the convention all the facets of putting on the race, from the Business Journal’s Pat Flynn) center, they will be split into groups of 25, the planning process to the checkered flag. Davis said. These groups will tour the vari- Schools participating in the field trip are ous paddocks, including those for the Indy- Cabrillo, Jordan, Long Beach Poly, Car and IMSA series, as well as the Historic McBride, Millikan and Sato high schools. Trans Am Challenge race. Students will Many of the students attending the event have the opportunity to interact with drivers were part of a program with Greenpower, and GPA staff about all aspects of the racing an England-based company who provided world. The 11th and 12th graders will also schools with kits for students to build and have an opportunity to speak with members race single-person electric cars. The Green- of the California State University, Long power races have previously been held on Beach Society of Automotive Engineers, portions of the Grand Prix track. Other stu- which allows students to work together on dents invited to participate include those in designing, analyzing, manufacturing, test- education pathways focused on engineer- ing and racing two vehicles every academic ing, business, entrepreneurship, and hospi- year at the university. tality and tourism, Davis said. Banc of California has maintained an out- Catalina Island’s Avalon High School is standing community development rating, also sending five students with the assis- which emphasizes its commitment to the tance of Catalina Express, which offered to communities it serves, explained Chris Gar- sponsor students by transporting them to cia, Community Reinvestment Act vice pres- the mainland and back free of charge. ident for the bank. He noted that the majority Catalina Express President Greg Bombard of the bank’s financial literacy events are heard GPA President and CEO Jim aimed at young people to provide building Michaelian give an update on the Grand Prix blocks for their financial futures. During the during a Long Beach Area Convention & Vis- student’s lunch break at the event, bank staff itors Bureau board meeting, Bombard told will present a program on financial literacy. the Business Journal. After the meeting, he “The curriculum will be building blocks approached Michaelian and offered his serv- for their adult life as they go into college ices to get Catalina Island students involved. and beyond – the importance of credit, sav- “It’s always good for the kids to get off ings, budgeting,” Garcia said. “It’s meant the island, especially for a school function to provide them with a broad perspective like this,” Bombard said. “I was born on the on financial education and how that’s going island and raised there, and I know it’s a to apply to their adult lives.” good thing when you get the opportunity to The GPA has been a client of the bank get out of there and meet people on the for eight years and two years ago asked if mainland. It’s something that just doesn’t it would like to sponsor the annual race, ac- come up that often and you end up on the cording to Samantha Haugh, senior vice island most of the time.” I 1_April_10_2018_issue_LBBJ 4/7/18 2:02 PM Page 12

12 • April 10-23, 2018 • Long Beach Business Journal Toyota Grand Prix Of Long Beach Weekend Schedule Of Events SATURDAY, APRIL 14 7 a.m. Gates open 8 a.m. Lifestyle Expo opens FRIDAY, APRIL 13 8:45 a.m. PWC practice 9:20 a.m. PWC qualifying 7 a.m. Spectator gates open 10:45 a.m. INDYCAR practice 3 7:40 a.m. IMSA WeatherTech SportsCar Championship Noon Historic Trans Am RACE (IMSA) practice 12:30 p.m. Commence IMSA pre-race 8 a.m. Lifestyle Expo opens 1:05 p.m. BUBBA burger SportsCar Grand Prix at Long Beach 10 a.m. INDYCAR practice 1 RACE (Race #3 of the IMSA WeatherTech SportsCar 11:40 a.m. Historic Trans Am practice Championship – 100 minutes) 12:20 p.m. Stadium SUPER Trucks (SST) Practice 3:30 p.m. INDYCAR qualifying & FIRESTONE FAST 6 2 p.m. INDYCAR practice 2 5:05 p.m. Speed Energy Stadium SUPER Trucks RACE #1 3 p.m. Historic Trans Am qualifying 6 p.m. Lifestyle Expo closes 3:30 p.m. Pirelli World Challenge (PWC) Practice 6 p.m. SMG Presents The Cult (Plaza Stage in 4 p.m. Verizon IndyCar Series Fan Appreciation All-Driver front of Long Beach Convention Center) Autograph Session (INDYCAR Paddock) 6:25 p.m. Super Drift practice 4:45 p.m. IMSA qualifying 7 p.m. Motegi Racing Super Drift Challenge Competition #2 6 p.m. Lifestyle Expo closes 6:45 p.m. Super Drift practice SUNDAY, APRIL 15 6:45 p.m. SMG Presents Fiesta Friday Starring Ozomatli 7 a.m. Gates open (Plaza Stage in front of Long Beach Convention Center) 8 a.m. Lifestyle Expo opens 7 p.m. Motegi Racing Super Drift Challenge Competition #1 9 a.m. INDYCAR warmup 10 a.m. Pirelli World Challenge RACE 11:50 a.m. Mothers Exotic Car Parade 12:30 p.m. INDYCAR Pre-Race Ceremonies 1:23 p.m. “Drivers, start your engines!” 1:40 p.m. 44TH TOYOTA GRAND PRIX OF LONG BEACH (Race #3 of the 2018 Verizon IndyCar Series – 85 laps) 4:05 p.m. Speed Energy Stadium SUPER Trucks RACE #2 5:00 p.m. Lifestyle Expo closes (Schedule Subject to Change without Notice) 1_April_10_2018_issue_LBBJ 4/7/18 2:02 PM Page 13

Long Beach Business Journal • April 10-23, 2018 • Page 13 Toyota Grand Prix Of Long Beach

Janice Paculba, 58, has served as a volunteer for the Toyota Grand Prix of Long Beach for the past 36 years. “The Grand Prix brings everybody together,” she said. “It’s like one big, happy family.” (Photograph by the Business Journal’s Anne Artley) Longtime Race Volunteer Paculba Looks Forward To Another Lap

I By ANNE ARTLEY Paculba described the Grand Prix volun- STAFF WRITER teers as “like family,” and said that they treat the spectators as such when they at- Janice Paculba’s passion for the Toyota tend the event. “The Grand Prix brings Grand Prix of Long Beach began as a everybody together,” she said. “The spec- teenager, when she cheered in the stands as tators love us; they keep coming back. a spectator. Now she attends the event That’s why I like the Toyota Grand Prix, it’s every year as a volunteer, a tradition she like one big, happy family.” I has maintained for 36 years. “I love volunteering for something I enjoy,” she said. “I’ve always loved Long Beach. When I was a kid, there were Navy ships in the harbor and roller coasters. I’ve seen Long Beach grow. It’s so beautiful now. Everybody falls in love with this city.” Paculba, 58, was born and raised in Car- son, where she still lives today. She works at Port Hueneme in Oxnard, loading and un- loading cargo from ships. Paculba became involved in the Grand Prix through her con- nection to another longtime volunteer, who is a family friend. “[One day] I came home to my mom and dad’s house and his car was there. It had a Toyota Grand Prix bumper sticker on it,” Paculba said. “I said, ‘Please will you get me in?’ and he did.” In her role, Paculba ensures that specta- tors in the hospitality suites are comfortable and that the caterers “are on their game.” The suites include amenities such as a lounge area, passes for convenient parking and wait staff service. When the Grand Prix held its Toyota Pro/Celebrity race for actors and sports stars, Paculba had the opportu- nity to meet several celebrities, including actors Paul Walker and Patrick Dempsey. The event was discontinued after 2016. In fact, meeting actor Paul Newman about 20 years ago is Paculba’s favorite memory as a volunteer. “It was really windy, and he had a tall suite,” she recollected. “All this de- bris blew in and he was trying to pick it up. I offered to get him a vacuum cleaner and he said, ‘if you could do that you are awesome.’ And I did it,” she said, laughing. 1_April_10_2018_issue_LBBJ 4/7/18 2:02 PM Page 14

14 • April 10-23, 2018 • Long Beach Business Journal Going Green Deep Cleaning The Streets (And Alleys) Of Long Beach

I By BRANDON RICHARDSON SENIOR WRITER

The Long Beach Clean Team, a division of the Long Beach Environmental Services Bureau, spends its days removing litter, de- bris and illegally dumped items from streets and alleys citywide. Sometimes, the team is responding to calls for service, while other times they are scouring the city In October of last year, the Long Beach Environmental Services Bureau’s (ESB) Clean Team expanded its services to include “deep cleans.” The program includes on a depressing scavenger hunt in hopes of partnering with other city departments to clear all blight from major, high-traffic business corridors every Wednesday. Pictured from left: Leigh Behrens, recycling clearing away blight. specialist II with the ESB; Richard Roe, acting Clean Team supervisor; Ken Roberts, Clean Long Beach superintendent; Diko Melkonian, ESB Manager; Michael Garmorg, refuse operator; Craig McCullouch, refuse operator III; and Cleo Lee, refuse operator. (Photograph by the Business Journal’s Brandon Richardson) In October, the Clean Team expanded its efforts to include a weekly “deep clean” of services bureau, said. “We were able to has two teams, each with its own van, there – so it never looks exactly right,” high-traffic business corridors, often near capitalize on the synergies of the different trash truck and equipment. The teams Melkonian said. “But when we get every- the Blue Line and selected for their exces- crews working together rather than just will begin on opposite ends and sides of one in there and everything goes away, it sive calls for service. Aside from the re- piecemealing the work.” a corridor and work their way down, makes the perception, the aesthetics, much moval of litter, debris and illegally dumped Every Wednesday, these crews focus on cleaning the gutters, sidewalks, planters different. It’s a much better result.” items, the deep cleans include other city de- major corridors and adjacent alleys, ac- and adjacent alleyways as they go. All the Currently, the Clean Team has 23 full- partments in an effort to rid corridors of all cording to Ken Roberts, Clean Long Beach while, other teams examine the same time staff. Its 2017 budget was $1.3 mil- blight at once, including weeds and graffiti, superintendent with the bureau. He ex- stretch looking for weeds, graffiti and lion, which covered personnel, vehicles code enforcement violations, and some- plained that the Clean Team has a quarterly code violations. (two vans, three trash trucks and two times tree trimming. schedule for deep cleans, which rotates “The thing that makes it unique is [that] flatbed trucks), disposal costs, equipment “The city has provided those services in through various corridors. However, he in the past, when we didn’t coordinate ef- and supplies. In addition to its staff, the the past, but the Clean Team really turned noted that, if the teams have a slow week, forts quite like this, we could have a crew Clean Team allows for residents to serve it into a more coordinated effort,” Diko a second deep clean may be added. going to pick up all the dumped items, but community service hours. Roberts said Melkonian, manager of the environmental For each deep clean, the Clean Team the graffiti is still there, the weeds are still the team can take up to 20 people serving 1_April_10_2018_issue_LBBJ 4/7/18 2:02 PM Page 15

Long Beach Business Journal • April 10-23, 2018 • Page 15 Going Green

the bureau gave cigarette butt receptacles to selected businesses along the Broadway corridor. According to Leigh Behrens, re- cycling specialist with environmental serv- ices, the campaign has now reached five corridors with 72 businesses participating. The Litter Free Zone campaign is a part- nership between the city and business to keep storefronts clean and free of trash and debris. In return, the city provides free trash cans, brooms and other tools to participat- ing businesses. The campaign increased 17% last year, bringing the total of partici- pating businesses to 526. “Another effort as part of the Clean Team is we are reviewing all the public litter con- tainer locations and replacing ones that are old and not very good anymore, and also looking to where we can add some,” Melkonian said. “If we make it more con- venient for people not to litter, then we hope they won’t.” The department is also looking into testing A Long Beach Clean Team crew and several residents serving community service pick up litter and debris along Pacific Avenue near Pacific Coast Highway locking trash bins, examining policies such as part of the team’s deep clean initiative to beautify major business corridors. (Photograph by the Business Journal’s Brandon Richardson) as those related to abandoned shopping carts community service per day but that on av- illegally dumped items, the bureau in- said the bureau is developing outreach ma- and attempting to work with owners of va- erage they have six or seven. creased the services to four pickups per terials in multiple languages, as well as cant properties, which Melkonian said often Last year, according to Melkonian, envi- year. Melkonian explained that these pick- working with business improvement dis- become areas of excessive litter and dump- ronmental services responded to nearly ups are far more efficient and cost effective tricts and neighborhood associations to get ing. He said the best thing for residents and 21,000 calls for service for illegally than responding to reports of illegally more businesses and residents involved in businesses to do is simply get involved, par- dumped items and more than 21,000 calls dumped items. Pickups may be scheduled the efforts to keep the city clean. In 2017, ticularly those in dense, multi-family neigh- for service for scheduled collections of by calling 562/570-2876 or visiting the city had 163 neighborhood cleanups and borhoods, which experience the most blight. bulky items. The department collected over www.longbeach-recycles.org. 195 homeless encampment cleanups, many “It’s for the beautification of our city. We 15,000 mattresses and box springs alone, “I think the team is doing a great job, not of which the Clean Team participated in. want to make sure our city stays clean,” 40% of which were illegally dumped. only with getting out and just doing it but Other programs initiated by environmen- Melkonian said. “We’re trying to be proac- Long Beach residents that have city trash in their efforts in educating along the way,” tal services to assist the Clean Team’s ef- tive. The idea of the Clean Team goes be- service for their homes previously were al- Roberts said. “The team seems to be very forts include the Can Your Butts and Litter yond just being out in the field and picking lowed two free special collections for up to motivated in what they do.” Free Zone campaigns. The Can Your Butts things up. It’s developing a plan to change eight items per year. In an effort to reduce To further educate the public, Melkonian campaign was rolled out one year ago when people’s perception of their waste.” I 1_April_10_2018_issue_LBBJ 4/7/18 2:02 PM Page 16

16 • April 10-23, 2018 • Long Beach Business Journal Going Green

Coffeehouse, Berlin Bistro, Portfolio Fit and Long Beach The Art Theatre, has switched plastic straws for compostable ones in all of her eateries. Entrepreneurs Join “I saw a 30-minute documentary at the Art Theatre called ‘Straws’ about the plas- Forces To Stop tic pollution in oceans on a Saturday morning,” Kansteiner said. “On Monday Plastic Pollution morning, I called all of my resources for vendors and asked them to switch all of our straws over to compostable straws. It I By ANNE ARTLEY was that impactful.” STAFF WRITER Kansteiner also said she stopped the “A World Without Plastic Pollution” is the practice of “auto-strawing,” where a waiter theme for this year’s Earth Day, and Long automatically provides a customer with a Beach businesses and educators are ahead straw in a drink. Although compostable of the curve. Local entrepreneurs are cutting straws are three to four times more expen- back on their use of plastic products and en- sive than plastic straws, Kansteiner said the couraging consumers to do the same, while total cost is around the same after she a local nonprofit continues to be a pioneer Katie Allen is the executive director of Algalita, a Long Beach-based organization researching plastic pol- started distributing them only on request. in the fight against oceanic plastic pollution. lution. Capt. Charles Moore is the founder. According to Moore, Long Beach’s shoreline probably has the Dina Amadril, the owner of Long Beach Long Beach-based research organiza- highest concentration of consumer plastic pollution in the United States. Algalita has advocated for change Creamery, is another local entrepreneur tion Algalita has worked toward ending since its inception in 1990. (Photograph by the Business Journal’s Anne Artley) who has eliminated plastic straws from her plastic pollution since its inception in department to introduce education programs State University, Long Beach. Allen said business. In addition to paper straws, she 1990. Through its partnerships with edu- in the Long Beach Unified School District. that last semester, a group developed also uses bowls made out of gluten-free cators, Algalita aims to impart its mission Algalita staff visits schools to educate local cleanup programs with local businesses wheat straw pulp, and spoons and tasting to the next generation. students on plastic pollution and instructs Kayaks on the Water and Long Beach Wa- sticks made of wood. According to Algalita’s founder, Capt. teachers how to teach about the issue. terbikes. Participants are able to rent them “The paper straws go with the look and Charles Moore, Long Beach’s shoreline prob- “We’d already been doing a lot of that for free on certain days if they collect trash feel of an ice cream shop,” Amadril said. ably has the highest concentration of con- work, but now we’re being provided sup- in the water while they are out. “But sometimes people have to get another sumer plastic pollution in the United States. port by the city,” Algalita Executive Direc- “The students developed a trawl that can straw. The straws are so biodegradable, He cited his 2010 study of the Los Angeles tor Katie Allen said. “We’ve engaged many go on the back of a kayak so it can collect they’ll biodegrade right into your drink.” and San Gabriel Rivers, which roughly border Long Beach high school students in our re- those surface samples for us,” Allen said. Amadril said she has always made an effort Long Beach on the west and east. His re- search. We’ve taken them out on our vessel Algalita is collaborating with the Long to create an environmentally conscious busi- search found that about 2.3 billion pieces of to help with [pollution] monitoring efforts.” Beach Environmental Services Bureau to ness, and that she is “constantly evaluating” plastic had flowed from Southern California’s This initiative, called the Ship-2-Shore engage businesses and consumers in other her current practices. She is considering using inland urban centers into the city’s coastal wa- Field Research Program, takes students to initiatives. Allen said a possible project in- new corn-based utensils, but is concerned ters within three days of sampling. collect samples in the East San Pedro Bay. cludes encouraging consumers to bring they will affect the taste of the ice cream. To raise awareness, Algalita has partnered To analyze the findings, Algalita enlists the their own containers to restaurants. To raise awareness about recycling, with the city as well as the waste management participation of students from California Kerstin Kansteiner, the owner of Portfolio Amadril collects pictures from customers 1_April_10_2018_issue_LBBJ 4/7/18 2:02 PM Page 17

Long Beach Business Journal • April 10-23, 2018 • Page 17 Going Green

Dina Amadril, the owner of Long Beach Creamery, has made an effort to reduce plastic pollution. Some of her initiatives include replacing plastic straws with paper ones, using bowls made out of gluten-free wheat straw pulp and spoons and tasting sticks made from wood. (Photograph by the Business Journal’s Pat Flynn) who employ creative uses for her ice cream sells “food truck kits” for to-go meals that pint containers. Some of these include using includes chopsticks, a spoon and a fork, and them as a planter or as a container for hair- is small enough to fit in a purse or backpack. brushes and makeup. She then posts them to “Another thing we don’t think about is the Long Beach Creamery Instagram page. dental floss. It always comes in [a] plastic Julie Darrell, owner of pop-up shop Bring [dispenser],” Darrell said. “I source a brand Your Own Long Beach, also uses her Insta- out of Maine because it’s the only company gram account to demonstrate simple product I’ve seen that comes in a glass container. It’s switches that benefit the environment. Darrell called silk floss and it’s compostable. . . . and makes her own reusable bags, beeswax wraps you can just buy refills for the floss instead and cloth napkins to sell at the Long Beach of buying a new container every time.” Farmers Market on the first Sunday of every Darrell’s long-term goal is to own a month. She also sells sustainable products brick-and-mortar location with a grocery from mostly California-based brands. store aspect for customers to purchase Selling reusable straws made out of stain- package-free grains, beans, nuts, herbs and less steel or bamboo is one way Darrell tries spices. “It’s just a matter of getting the fi- to cut down on plastic pollution. She also nancial side worked out,” she said. I 1_April_10_2018_issue_LBBJ 4/7/18 2:02 PM Page 18

18 • April 10-23, 2018 • Long Beach Business Journal Going Green

Port of Long Beach Executive Director Mario Cordero speaks during the Zero-Emissions Terminal Transition Project launch event on April 4. The project includes transitioning 25 cargo-handling vehicles to zero emis- sion to test their performance in a real-world setting. (Photograph courtesy of the Port of Long Beach) Nation’s Largest Zero-Emissions Port Project Launched In Long Beach

I By BRANDON RICHARDSON Pacific Container Terminal, one of three SENIOR WRITER terminals included in the program. “The Zero-Emissions Terminal Transi- Officials from the Port of Long Beach, tion Project kicks off a new era in trans- Southern California Edison (SCE) and portation electrification and the port’s own the California Energy Commission transformation to zero emissions,” Long launched a pilot project on April 4 to test Beach Harbor Commission President Lou zero-emissions terminal equipment at the Anne Bynum said during the launch event. “We are grateful for the partnerships with the Energy Commission and Southern Cal- ifornia Edison that are making this a reality.” The project is the nation’s largest zero- emissions pilot for cargo handling equipment for seaports. Under the project, zero-emis- sions equipment such as cranes and vehicles will be in use for one year to “test their per- formance in a real-world setting,” according to a port press release. Nine diesel-electric rubber tire gantry cranes will be converted into fully electric equipment at one terminal, while two other terminals will receive 12 bat- tery-electric yard tractors. Four liquefied nat- ural gas trucks will also be converted into plug-in hybrid trucks for a drayage trucking firm that operates within the terminals. The project is a direct result of the San Pedro Bay ports’ 2017 approval of an updated Clean Air Action Plan, which set the goal of all terminal equip- ment being converted to zero-emissions technology by 2030. “The projects we are kicking off today will help to address some of Southern Cal- ifornia’s biggest challenges – cleaning up the air and reducing harmful greenhouse gases that cause climate change,” SCE President Ron Nichols said. “SCE’s vision for a clean energy future means partnering with the port and other SCE customers to electrify transportation, as well as working hard to make sure the electricity that we provide to power those vehicles is produced with clean, renewable resources.” The port anticipates the project will re- duce greenhouse gases more than 1,323 tons and nitrogen oxides by 27 tons annu- ally. The transition will also save an esti- mated 270,000 gallons of diesel fuel. The zero-emissions port project is mostly funded by a $9.7 million grant from the California Energy Commission. I 1_April_10_2018_issue_LBBJ 4/7/18 2:02 PM Page 19

Long Beach Business Journal • April 10-23, 2018 • Page 19 Real Estate & Development Queen Mary Repairs One of the first projects Urban Com- last year and late January of this year, there and some structural components – have mons tackled was repairing leaks on the was no money coming from the city,” Za- also been completed. (Continued From Page 1) ship. “We knew there were 2,000 leaks. We haroni said. “The biggest repair that everybody is lease payments, as well as passenger fees didn’t expect there to be another 500 after Johnny Vallejo, property services officer waiting for is the structural stability of the from Carnival Cruise Lines operations, we finished that,” Zaharoni said. Dealing within the Long Beach Economic Develop- ship, which is the hull and the tank top and would go right back into caring for the with these leaks – a problem Zaharoni ex- ment Department, confirmed this. “There the girder system,” Zaharoni said. After Queen. The city issued $23 million in bonds pects to be ongoing due to the historic na- were some delays on some of the work that consulting with engineers and conducting to fund the most necessary initial repairs. ture of the ship – has proven to be one of was being conducted. That was primarily extensive structural testing, Urban Com- Since then, Urban Commons has been, by the bigger maintenance challenges. due to, or partly due to, the city’s internal mons has determined that it should take the account of Urban Commons’ chief devel- “Inside those walls, you can’t just go in financing mechanisms,” Vallejo said. about $50 million to make these structural opment officer, Dan Zaharoni, doing its best and replace all the pipes, because to do When it comes to the issue of recurring repairs. An earlier marine survey of the to bring the Queen back to her former glory. so, you’d have to basically destroy the rust, Zaharoni said it turned out that the ship commissioned by the city found that it “It’s an 82-year-old ship that’s sitting in rooms and the common areas and all rust inhibitor wasn’t applied correctly in would cost $289 million. water out in the sun,” Zaharoni said. “We’re these historic places that you can’t touch,” certain areas where the rust was thicker “That marine survey, you should know, not only trying to maintain a ship, we’re try- Zaharoni said, noting that Urban Com- than had been originally thought. “The was three or four people who walked ing to maintain history. And when you do mons is not allowed to do this, nor would rust in certain areas had built up thicker around the ship and made visual observa- that, unfortunately you sometimes don’t have the company advocate for it. than the amount that the inhibitor could tions for about a week,” Zaharoni said. access to some of the tools and resources you An independent contractor hired by the penetrate,” he explained. “You have to “They just walked around. The Queen would in a normal situation.” He added, “We City of Long Beach to oversee maintenance scrape the rust off and you have to get Mary staff told them what was wrong, and believe it is manageable, and we believe that of the ship has noted both progress and down to the metal, or at least close they made estimates based on what they the problems we have encountered have been problems aboard the Queen Mary in enough to the metal, so that the rust in- saw. We have recently discovered, and the something that we can handle.” months-worth of reports provided to the hibitor can penetrate. It’s so difficult to city has approved, that the amount of That one painted stack, for example, Business Journal by the city. One area of scrape the rust off down there at the hull, money and time it is going to take to stabi- was a bit of a failed experiment. It was issue noted was the exhibit hall – long not only because of the lighting and the lize the ship is pennies on the dollar com- painted last fall, and work to paint the closed to the public, the hall has had flood- area, but you know, the hull is fragile. It’s pared to what the marine survey and some other two stacks was halted to allow them ing, leakage and rust problems for years. 82 years old. You can’t get too aggressive of the previous estimates were.” to remain visible during holiday events Urban Commons made headway on the in the rust removal.” Zaharoni said he expects this structural like Dark Harbor and CHILL. “By the area, but, as the inspector detailed in some Despite some hiccups, progress is work to be completed within six to nine time CHILL was done, we started noticing reports, work seemed to stop for a time, being made throughout the ship, both by months. some real problems with that paint – de- and rust cropped up again even after a rust Zaharoni and Vallejo’s accounts. Accord- Despite progress on the Queen Mary, Za- fects and imperfections,” Zaharoni said. inhibitor had been applied. ing to Zaharoni, finished projects include haroni noted that news of any problem seems “We didn’t want to continue painting until But the reports don’t tell the whole story, improvements to Sir Winston’s Restaurant to get far more attention from the press and we figured out the problem.” After con- according to Zaharoni. When the city is- & Lounge, replacement of teak flooring on social media. “We do everything in our sulting with the paint manufacturer, Zaha- sued the $23 million in bonds, only $11 on the M Deck, the repair and refurbish- power to be a steward of history and we just roni is confident that the issue has been million was initially deposited into an ac- ment of the ship’s executive offices and wish that the successes that we have were as identified and will be corrected. Paint- count for Urban Commons use. “But the replacement of one of the ship’s expan- celebrated as the misses that we encounter,” work on the next two stacks will begin $11 million ran out before the [remaining] sion joints. Repairs to infrastructure that he said. Structurally, the ship is in “the best within 30 to 45 days, after which the first $12 million of bond funds showed up. So is part of the Ghosts & Legends Tour – shape it has been in years,” he noted. will be repainted again, he explained. between sometime around Thanksgiving of which includes boiler rooms, gangways (Please Continue To Page 20) 1_April_10_2018_issue_LBBJ 4/7/18 2:02 PM Page 20

20 • April 10-23, 2018 • Long Beach Business Journal Real Estate & Development Queen Mary Repairs Local Landlords Being Tapped To Help End Homelessness (Continued From Page 19) The Housing Authority of the City of As for upgrading the hotel rooms and Long Beach (HACLB), in partnership with common areas onboard, Zaharoni said the Housing Authority of the County of Los Urban Commons has been courting a num- Angeles (HACOLA), hosted an outreach ber of major hotel brands before proceed- event in an attempt to tap local property ing. “That has really been the hold up. Not owners to help end homelessness. because we didn’t want to move forward, During the event, more than 120 land- but because we have been speaking with lords learned about the Homeless Incentive every major national brand you can think Program (HIP), which offers financial in- of,” he said. “That’s not done yet, but we centives to landlords who partner with the feel like we’re very close with one of them Construction is underway on the $700,000 renovation of downtown’s Harvey Milk Park on 3rd Street city, county and nonprofit service providers and we’re working in that direction.” at The Promenade. Improvements include new landscape and hardscape, a stage for events, an im- to end homelessness in the area. It will take at least five years before de- proved honor wall and more. The project is scheduled to be completed before the 2018 Long Beach Lesbian & Gay Pride Festival & Parade on May 20. (Rendering courtesy of the City of Long Beach) “The Homeless Incentive Program is a velopment of the land surrounding the great opportunity for landlords to get in- Queen Mary starts to come to fruition, ac- celebrating Harvey Milk and the local not only represents a new opportunity for volved with combating homelessness in cording to Zaharoni. “The entitlement LGBTQ+ community. residents to connect with each other in a Long Beach. We recognize that housing process is long and arduous. And that’s not “We created Harvey Milk Park when I public space but it highlights the importance this vulnerable population can come with something we’re happy about, but that’s just represented the downtown [as 1st District of the LGBTQ+ community in Long challenges, and we are optimistic that this the way California is, especially when councilmember] on the city council, and it Beach,” said Councilwoman Lena Gonzalez. program will offset some of those chal- you’re dealing with a historical structure on has become an important gathering place for “I am so thankful to all of our Harvey Milk lenges,” Vice Mayor Rex Richardson, the water,” he said. “We believe entitlement the public and to honor so many LBGTQ Park Equality Plaza Committee Members Housing Authority Commission chair, said process alone will continue until about leaders in our city,” Mayor Robert Garcia who helped to design this park as a constant in a press release. “I am excited about the 2020. And then construction will take said. “I’m excited about the investments and reminder of the fight for equal rights in opportunities this program provides for about three years as well. We’re anticipat- improvements coming to the park.” Long Beach and throughout our nation.” both landlords and tenants.” ing a grand opening of around 2023.” Improvements include new landscape The project is scheduled to be completed The program is comprised of three major According to Vallejo, Urban Commons and hardscape, a stage for events, an im- before the 2018 Long Beach Lesbian & components, according to the press release: is upholding its end of the bargain with the proved honor wall for local LBGTQ+ lead- Gay Pride Festival & Parade on May 20. • One month payment to hold the rental city. “I truly feel like Urban Commons is ers, a mural honoring Harvey Milk, Panel Discussion April 13 On unit while a tenant is referred. doing a very good job, particularly as com- charging stations, shade and seating. Amer- Alamitos Bay Waterfront Vision • Move-in assistance to individuals expe- pared to the history of the ship,” he said. “I icans with Disabilities Act (ADA) and The Long Beach Commercial Real Estate riencing homelessness such as money for the believe Urban Commons is definitely ad- pedestrian accessibility work is also being Council is hosting a panel discussion on the hering to their obligations under the terms done to the adjoining City Place Parking security deposit and utility connection fees. Alamitos Bay Waterfront Vision on Friday, of the agreement.” I Garage C as part of the project, as the • Financial assistance to landlords to April 13. Third District Councilmember garage has an exit into the park. mitigate damage caused by tenants during Suzie Price is giving the panel kickoff ad- Funding for the project is as follows: their occupancy. Real Estate News dress and Sergio Ramirez, deputy director of • 25% from grant funding The HACOLA initiated the HIP program the Long Beach Economic Development De- • 40% from city collected permit fees last year, though it has been hosting similar I BRANDON RICHARDSON partment, is serving as moderator. Panel By • 15% from Transportation Funds for the events since February 2016. The HACLB SENIOR WRITER bus stop area members include: Christopher Koontz, ad- began its own program last month. Land- vance planning officer for the City of Long lords interested in participating the city or Construction Underway On • 20% from Measure A funds for ADA improvements and garage accessibility Beach; Scott Choppin, founder & CEO of county programs may visit www.haclb.org Harvey Milk Park Renovations Extensive community outreach was con- The Urban Pacific Group of Companies; or www.hacola.org. Construction began last month on the ducted by city staff to understand residents’ Whit Latimer, president of Bancap Commer- “Only by working together can we begin $700,000 “re-envisioned” Harvey Milk needs. As part of a Long Beach Innovation cial Real Estate Services; and Steve Shaul, to address homelessness within our City,” Park on 3rd Street and The Promenade. The Team campaign, community members senior director of development for CenterCal said Mayor Robert Garcia. “I encourage 500-square-foot park is being transformed voted on various types of furniture and tech- Properties. The event is 7:30-9 a.m. at The those who own property to learn more into an outdoor public space that encour- nology solutions they wanted in the park. Grand, 4101 E. Willow St. To register: about the incentives available to help land- ages collaboration and connectivity, while “The transformation at Harvey Milk Park http://lbcrec.com/upcoming-events/. lords be a part of the solution.” reined in and in need of more regulation. that when the government seized the two resisted making public are Aug. 18, 2012, Freddie and Fannie announced in Febru- GSEs it was supposed to be a temporary emails from Jim Parrott, a senior advisor to Realty Views ary – much to the chagrin of Congress and conservatorship. He also claims that the President Obama. . . . [O]ne such email so-called watchdogs – that that they were bailout was not really a bailout, but a makes clear that the purpose of changing When Is A Bailout going to need a $4 billion “draw” from the “stick-up” where the Treasury was able to the dividend rate on Treasury’s preferred U.S. Treasury to keep their books balanced lock itself into being the conservator for the stock was to saddle Fannie and Freddie Not A Bailout and maintain positive net worth. This was GSEs, then purchase $187 billion in pre- with concrete life preservers so that they due to an accounting write-down of the as- ferred shares with a 10 percent dividend. could not “repay their debt and escape,” Government accounting sets of these two agencies, which are not The real troubling aspect is that the hous- adds Hindes, who describes this treasury can be an interesting exer- part of the government but which are spon- ing market rebounded in 2012, and the gov- loan to the GSEs as a “mafia-type loan” cise when it comes to what sored and assisted by the U.S. government. ernment did not want to give up its cash with none of the payments used toward the is real and what is not real. The write-down, curiously, is supposedly cow, so, as Hindes explained: “the housing principal of the debt. What is real is that the due to the new tax laws and these agencies market had turned around, the accounting Over the past decade there have been public narrative and per- having to write down the value of their as- entries had to be reversed and Fannie and many calls for reforms of the GSEs and ception that can follow the sets because of its impact. Since the new Freddie suddenly became massively prof- not a legislative session goes by without release of government ac- laws are only a few months old, how is it itable. Within days of the announcement of someone calling for an overhaul of these By Terry ross counting statistics can be even possible to know what the impact will robust (2012) second quarter earnings – agencies, new safeguards for taxpayer very different from what is actually hap- be on these mortgages and the underlying which far surpassed the dividend on the money and an end to bailouts that are not pening. Numbers can be manipulated to say properties that secure them? government’s preferred shares – Treasury really bailouts. whatever is desired, especially when it The larger story behind the bailout of demanded that the dividend rate be But from this case – and there are many comes to presenting market conditions that 2008 is the way that the government struc- changed to 100% of the companies’ earn- others that are pending against the gov- impact real estate and even lending. tured the bailout in the first place – going ings and net worth in perpetuity.” ernment because of this action – it looks Recent action by the two Government back a decade. He also added that, as of the end of the like the reform needs to start with the Sponsored Enterprises (GSE) that insure In a revealing narrative in American last quarter, Freddie and Fannie would Treasury and those who allowed this to the bulk of mortgages in America – Fannie Banker, Gary Hindes, chairman of the have repaid $100 billion more than the happen in the first place. Mae and Freddie Mac – has shed some Delaware Bay Company – an investment $187 billion loaned by the treasury as a (Terry Ross, the broker-owner of TR light on the so-called bailouts of 2008 that management firm that has held Fannie and stock purchase. So the additional borrow- Properties, will answer any questions politicians have been using for the past Freddie securities for many years – and ing or bailout is nothing more than asking about today’s real estate market. E-mail decade as an example of government help now a plaintiff in a lawsuit against the gov- for its own money back. questions to Realty Views at for the lending industry that needs to be ernment and challenging their actions, says “Among the documents the government [email protected] or call 949/457-4922.) 1_April_10_2018_issue_LBBJ 4/7/18 2:02 PM Page 21

Long Beach Business Journal • April 10-23, 2018 • Page 21 Real Estate & Development

Yellow Fever and a cafe by Groundwork Coffee, as part of the store’s Friends of 365 program that partners outside chefs, food and lifestyle brands to bring shoppers ad- ditional in-store experiences. Baja Sonora Bixby Knolls Location Permanently Closed In an April 2 Facebook post, local restau- rateurs Mary Sophiea and Mike Mendelsohn announced the Bixby Knolls Baja Sonora lo- cated at 3502 Atlantic Ave. would not reopen for business after shutting down in late Feb- ruary for remodeling. “One of the reasons is Supermarket To Open At it was going to cost well over $100,000 to fix Long Beach Exchange April 25 everything,” Sophiea said in an e-mail to the Business Journal. “The parking lot is in such Whole Foods Market 365 is opening the bad shape we were worried for our cus- doors of its eighth store nationwide at Long tomers.” The business partners’ other Long Beach Exchange on April 25. Located at Beach Baja Sonora location at 2940 Clark 3881 Lakewood Blvd., the 28,000-square- Ave. remains closed but Sophiea said she ex- foot store will be the third Whole Foods pects to reopen sometime this month. Market 365 in Southern California, with others in Santa Monica and Silver Lake. Two New Breweries Prepare “We are very excited to serve the Long To Open In Bixby Knolls Beach community with this new Whole The long awaited Liberation Brewing Co., Foods Market 365 store,” Jeff Turnas, a new craft beer brewer in Bixby Knolls, is president of Whole Foods Market 365, set for a soft opening event April 19 from 5 said in a press release. “Customers will to 8 p.m. for members of the Bixby Knolls find a fun and modern take on the neigh- Business Improvement Association borhood grocery store, with great deals (BKBIA). Located at 3630 Atlantic Ave., the and convenient shopping options.” brewing of the first batch of beer began on All products sold in the store will be free March 22. According to BKBIA Executive of artificial flavors, colors, sweeteners, Director Blair Cohn, Liberation will be open preservatives, hydrogenated fats and high- for regular business hours on May 3, though fructose corn syrup. The store will carry or- hours have not been announced. A second ganic products, GAP 5-Step Animal addition to the Bixby Knolls craft beer scene, Welfare rated meet, sustainable seafood, Ambitious Ales, should begin its build out of and fresh grab-and-go items. 4019 Atlantic Ave. soon, with an opening The store will also have a restaurant by around late summer, Cohn said. I 1_April_10_2018_issue_LBBJ 4/7/18 2:03 PM Page 22 1_April_10_2018_issue_LBBJ 4/7/18 2:03 PM Page 23

Long Beach Business Journal • April 10-23, 2018 • Page 23 Millennial Pulse

(Continued From Page 1) als, from the challenges they have faced to 22 to 37) qualifies as a Millennial, while their prevailing attitudes. So perhaps now anyone born after are part of the new gen- the better question is this – what can Gen- eration commonly referred to as Genera- eration Z learn from us? tion Z. Hopefully there are a number of things For those of you who are having some that, if they’ve been watching Millennials trouble figuring out whether that young closely, Gen Z has learned to avoid. The big person you’re barking at for crossing the kahuna in this category is student loan debt. street while texting is a Millennial or a Gen Realistically, this is pretty difficult for your Z-er (boy, that doesn’t roll off the tongue, average college-going student to avoid. But does it?), here are a couple of handy guide- there are ways to try to prevent being stuck posts: One is that most Millennials were in their parents’ houses far longer than they old enough to understand the world-shak- would care for. For example: Taking a job ing significance of 9/11 when it occurred, during college. Thoroughly researching fi- or are at least likely to have some memory nancial aid options. Comparison shopping of the event. Generation Z isn’t likely to re- schools and loan providers. Studying hard member it at all. The other is that Millen- and participating in a lot of extracurriculars nials came of age during the Great in high school so you’ll be primed for Recession. The young adults among Gen- scholarships. In general, taking an active eration Z now have the benefit of exiting role in your future. high school in a strong economy. On the flip side, what positive lesson can It’s too soon to tell how these generations the up-and-coming Gen Z impart from Mil- are inherently different, or if they are differ- lennials? Well, some might argue with me ent at all. Do they share our affection for av- on this, but I’d say that movements like ocado toast? Our crippling need for strangers Black Lives Matter and #MeToo, which we have never met to validate our lives on so- have enacted positive social progression in cial media? And, more importantly, will they this country, have been able to flourish in help us put a lid on all these stereotypes? part because of the attitudes and social Time will tell what will set them apart, media-savvy of Millennials. Studies show but as the students of Marjorie Stoneman that Millennials are more diverse and are ed- Douglas High School have ignited a na- ucated in greater numbers. Combine these tional movement for gun reform in Amer- simple factors with our penchant for making ica at an unprecedented scale, we at least things go viral via social media, and you’ve know that this generation wields the got a generation made for social progress. strongest mastery over the Twitter-verse And, while we’ve been able to help spread than any before them. the word about social issues that have long We may not yet know how Generation Z been suffered in silence, it already appears is different from the Millennial generation, as though Gen Z might already be taking but we do know quite a bit about Millenni- that strategy a step further. I 1_April_10_2018_issue_LBBJ 4/7/18 2:46 PM Page 24

24 • April 10-23, 2018 • Long Beach Business Journal Newswatch Long Beach Board Of Water Commissioners Support Proposed Consolidation With Gas Utility

I By ANNE ARTLEY ing to Garner, the city manager would de- STAFF WRITER cide if the Long Beach Gas and Oil Depart- ment would remain a separate entity, or be The Long Beach Board of Water Commis- absorbed into another city department. sioners voted to approve a proposed consol- “In a sense, the timing is right because idation of the city’s water and sewer utility the water and sewer utilities are operating with the gas utility at its March 29 meeting. well,” Garner said at the meeting. “It’s not The water and sewer utilities are currently being done out of the sense that we need to under the purview of the Long Beach Water fix something. If we combine the three util- Department and the gas utility is run by Long ities, you have the luxury of two well-op- Beach Gas and Oil. Three public meetings erating departments.” are required before the city council votes to According to the water department, the place the measure on the November 2018 gas and water utilities have the same cus- ballot. The commission estimated that the tomers and require similar operations, first meeting may take place in May or June. many of which are separately managed. Chris Garner, left, is the general manager of the Long Beach Water Department and Bob Dowell is the According to the water department, Long The pipelines are located in the same director of the Long Beach Gas and Oil Department. The Long Beach Board of Water Commissioners Beach is the only California city with two voted at its March 29 meeting to approve a proposed consolidation of the city’s water and sewer utility streets, but each utility conducts its own with the gas utility. The proposal requires three public meetings and a council vote before it appears on separately managed municipal utilities. The street repairs, resulting in uncoordinated the November 2018 ballot. (Photograph by the Business Journal’s Pat Flynn) city council approves the rates for the gas operations. The utilities also run different utility and its director is hired by, and re- meters. Garner said a consolidation would beneficial to the residents of Long Beach if passes, the city is also changing the name ports to, the city manager. The five-member improve efficiency, which could result in all the rates were done by one board.” of the Gas and Oil Department to the En- board of water commissioners sets the rates lower costs to maintain the utilities, which If the consolidation takes place, the new ergy Resources Department to reflect cur- for the water utility, and General Manager in turn lowers rates for residents. Long Beach Utilities Commission will rent attitudes regarding environmentalism Chris Garner reports directly to the board. “One of the problems I’ve seen over the consider rate adjustments in an integrated and abating climate change. If the measure passes in November, the past three decades . . . the water and sewer manner, according to the city. The city Long Beach Gas and Oil Department Di- water department would manage the water, rates done in this building are [in] a complete manager and water commission will work rector Robert Dowell expressed his support sewer and gas utilities, under the purview vacuum [from] what happens in the gas de- together to appoint a new general manager of the consolidation and assured that it of the water commission, renamed as the partment,” Garner, who once ran the gas and of the department with the new utilities. would not result in a loss of employees. Long Beach Utilities Commission. Accord- oil department, said. “I think it would be very Regardless of whether or not the measure “Both departments have very strong and experienced employees,” he said. “Com- bining them [the utilities], we can get the best of both departments. . . . I think it’s the right time to do it. It’s just a little concern- ing for the employees right now because it’s new. Change is contentious. . . . [O]n behalf of the Long Beach Gas and Oil Depart- ment, we’re supportive of this.” The water commission’s vice president, Gloria Cordero, commented that the con- solidation could create new positions and give employees a chance to advance within the department. “The gas department doesn’t necessarily have a marketing or communications de- partment, so if there’s an opportunity for us to continue what we do and bring the gas Melissa Carpenter, owner of The Hangout on 4th Street’s Retro Row, relaxes in the shop’s back garden. Carpenter is taking over the space next door, formerly department along, that’s an excellent op- occupied by vintage shop In Retrospect, and will continue to lease the garden area. She plans to re-imagine her shop into a platform for different vendors portunity,” she said. I who will also host workshops in the garden. (Photograph by the Business Journal’s Pat Flynn) The Hangout On 4th out. In the new space, Carpenter also plans Amgen Tour of California, a professional Signature Gathering to host a quiver maker to custom-make key cycling race, in the new space on May 13. (Continued From Page 1) chains and leather wallets on the weekends. This year’s event takes place in seven Efforts Near Halfway the Fourth Street Business Association, a A quiver is a container for holding arrows, stages from Long Beach to Sacramento, position he is stepping down from in May. bows or darts traditionally made out of May 13 to 19. Carpenter’s celebration will Mark For Two Local The neighboring store, The Hangout, leather, fur or other natural materials. feature a chopper bicycle show, local mu- which features clothing, housewares and Carpenter described her quest to identify sicians, skateboard signings from local Ballot Initiatives other items will take over the 4,000 square- artisans as an “obsession,” and said she is teams and a pig roast in the Hangout’s foot space. Store owner Melissa Carpenter reaching out to artists all over the world. back garden. “We’re pulling from the core I By BRANDON RICHARDSON said she is re-imagining her shop as a plat- “They’re all hand makers, nothing is mass- of Long Beach and interpreting the bike SENIOR WRITER form for several different vendors. She’d produced. . . . Everyone I bring in has a race as a way of celebrating movement and also like to host regular workshops with the story. They may be transitioning from a cor- wheels,” she said. The Long Beach Coalition for Good artisans whose products are featured. Some porate job, they may be a single mom, they The event will be part of a larger 4th Street Jobs and a Healthy Community (GJHC), of these will take place in The Hangout’s may be learning [the craft] from their celebration for the Amgen Tour. It is the last an entity of the pro-union organization, back garden, which has an 11-foot work- grandmother. . . . Everything is original, event Giaco plans to oversee as association the Los Angeles Alliance for a New Econ- table that seats 14. The shop will continue one-of-a-kind pieces.” president before his term expires at the end omy or LAANE, and the Rent Control to operate in its current smaller space until Giaco plans to have a space in the shop of May. The nominating process for a new Now Coalition (RCN) have each nearly it reopens next door on June 1. as a book vendor. In addition, the store will president begins in a couple of weeks. reached the halfway mark in signature- “I go after the [vendors] who are creating include a lounge for visitors to listen to “I’m very attached to 4th Street. I’ve al- gathering efforts to get their respective from their own skillset, maybe doing things records and a buy-sell-trade section for vin- ways been involved with the association initiatives on the November ballot. handed down from family tradition,” Car- tage pieces. Carpenter envisions the latter even before I was president,” Giaco said. “I If passed, GJHC’s proposed Hotel Work- penter said. “We’re focusing on creating an designed like an old-fashioned trading post have a vested interest in seeing that area do place Requirements and Restrictions ordi- environment for people that’s giving and with a military tarp tent. well and continue. Everybody was sorry to nance would impose safety and warm. Almost like you’re going to your “Everything is hands-on,” Carpenter said. see In Retrospect go, as were we. It was just workload-related standards on hotels with 50 own house.” “You get to feel the vinyl and smell the old time to move on. . . . We’re happy that a rooms or more. RCN’s rent control ordinance One of these artisans is a horticulturist book. All these things that were so impor- known store is taking that space. There was would establish rent control on all commer- transitioning out of a corporate job as a tant to me, I’m excited to make readily talk about it being subdivided, and we’re cial rental properties, excluding rentable sin- footwear designer, Carpenter said. She has available in an environment where you can glad that it’s not. I think even the name ‘The gle-family homes, and provide other renter already held a few workshops on succulent just hang out.” Hangout’ will serve it well, since it’s the protections such as just-cause eviction. I care and cactus propagation at The Hang- Carpenter is hosting a festival for the largest store on the street. (Please Continue To Top Of Next Page) 1_April_10_2018_issue_LBBJ 4/7/18 2:03 PM Page 25

Long Beach Business Journal • April 10-23, 2018 • Page 25 Newswatch

With a goal of 40,000 signatures based, but paid signature gatherers are cur- (though the requirement is around rently being utilized, according to Sánchez. 27,000), GJHC Director Victor Sánchez Jordan Wynne, a community organizer said the group has not had any setbacks with Housing Long Beach, said the fully and that it is aiming to submit signatures volunteer-based signature gathering efforts for certification sometime in May, which for the rent control initiative have not hit is earlier than the city would require. any setbacks and are proceeding smoothly. “We’re very confident and motivated,” “Every day we build more momentum as Sánchez said. “It’s been a three-year fight, so tenants rise against the injustices they are there is a lot of familiarity with the issue. Also, currently facing,” Wynne said. “A select given the national context, the conversations minority of vocal opposition is attempting at [residents’] doors have been very good.” to undermine the volunteer signature gath- GJHC’s efforts are still largely volunteer erers we have out around the city.” I

police. Discussions have already begun Serving Alcohol with the Long Beach Police Department to (Continued From Page 1) gain insight about any concerns it might Robert Garcia told the Business Journal. have with the proposal. “But there are instances in the entertain- The bill is still in the committee process. ment district downtown where there are The Senate Governmental Organization special events or other types of activities Committee voted 8-2 to pass the bill with where there has been interest in the past to several amendments in mid-March, sending have an event go later.” the bill to the Senate Committee on Appro- Aside from Long Beach, the bill identi- priations. But Kojian said it’s not too early fies Los Angeles, Oakland, Sacramento, for discussions about the challenges and op- San Francisco and West Hollywood. If portunities the legislation could bring to the passed by the state legislature, SB 905 city. He added that, if passed at the state would enact a five-year pilot program from level, the city’s residents would not be left January 1, 2020, to January 1, 2025, in out of the process of forming a local plan. which each of the six jurisdictions could “This is a process that we will be work- create its own unique ordinance related to ing with our community. We will be reach- alcohol sales. These guidelines could be as ing out to the community, working with overarching or specific as the cities choose, them and understanding that there are including allowing 4 a.m. alcohol sales only going to be some challenges and some on certain days of the week, at certain spe- concerns,” Kojian said. “If this opportu- cial events or in specific areas of the city. nity does present itself, we will take full “If the state passes this bill then it would advantage of it and work with our commu- come to the council, and I think we’d have a nity to ensure that we are doing the right pretty robust debate about whether it works thing for Long Beach.” I for us or not,” Garcia said. “We obviously don’t ever want to do anything that would constrain resources. We want to make sure that it’s done in a way that’s controlled.” The Downtown Long Beach Alliance (DLBA) has discussed the proposal with Garcia, as well as with State Sen. Ricardo Lara, who represents the state’s 33rd Senate District including most of Long Beach and who is a co-author of the bill. Kraig Kojian, president and CEO of the DLBA, said he agrees with the mayor’s assessment that downtown entertainment areas are best suited for extended alcohol hours. “If, in fact, this does come to downtown, that doesn’t mean that every establishment would be given the right to do that. I think it’s important to note that not every establishment would even want to serve until 4 a.m.,” Kojian said. “There are establishments today that don’t want to serve until 2 a.m. We recognize that. So this is not for everyone. But given the authority that the state is willing to relinquish to these six cities, I think that’s huge.” In terms of benefits SB 905 could bring Long Beach, Garcia said having extended hours for controlled and responsible enter- tainment would create jobs and increase the tax base, which would then be reinvested back into the community. Aside from ben- efiting the daily consumer, Kojian ex- plained that the six cities in the pilot program would be elevated to the same level as a New York or Chicago when it comes to being competitive in attracting conventions and special events. Garcia and Kojian each noted that there are obvious challenges that would come with such an ordinance, including issues of public safety and transit options. Both said the city should not do anything to put pres- sure on already-strained resources, such as 1_April_10_2018_issue_LBBJ 4/7/18 2:03 PM Page 26

26 • April 10-23, 2018 • Long Beach Business Journal Newswatch Police Department Scraps Body-Worn Cameras, Begins New Pilot Process

I By BRANDON RICHARDSON camera program, which requires additional SENIOR WRITER staff for operations such as video review. Each of those five departments use Axon The Long Beach Police Department equipment and services – Anaheim utilizes (LBPD) issued a request for proposals 450 cameras requiring three full-time equiv- (RFP) on April 3 to continue its body-worn alent employees (FTEs); Fullerton uses 150 camera pilot program utilizing a different cameras requiring two FTEs; the Los Ange- vendor and camera model. les Police Department uses 4,000 cameras “The city and the LBPD are committed requiring 24 FTEs; Pasadena uses 300 cam- to implementing effective body worn cam- eras requiring three FTEs; and Santa Ana era technology to promote officer safety, uses 200 cameras requiring five FTEs. ensure accountability and strengthen com- Of the 10 comparable departments that munity trust,” Police Chief Robert Luna have used some form of body-worn camera said in a press release. However, the an- for testing in a pilot program or in a fully nouncement stated that, after reviewing its implemented program, Torrance is the only previous year-long pilot program, the Third District Councilmember Suzie Price has been a champion of bringing police body-worn cameras one that operated Utility/Dell equipment LBPD determined “the current technology to Long Beach and said the city is long overdue for the implementation of such a program. (Photograph and services. Torrance conducted a pilot does not suitably meet the needs of the de- by the Business Journal’s Brandon Richardson) program similar to Long Beach. partment and the city." ity Associates Inc. in partnership with Dell division received 56% fewer complaints Prior to prosecuting murder cases on the In a memo to the city council, the LBPD Inc., for $210,000. The initial pilot con- and saw a 31% reduction in use of force. homicide panel for the District Attorney in said the additional equipment field testing cluded in November of last year, though of- “There is a new method of policing, there Orange County, Price worked as a public is expected to begin by July. The program ficers continued wearing the cameras. In is another layer of protection for the public, entity lawyer representing 17 cities will include 160 officers in two patrol di- February, Utility Inc. provided the depart- as well as police officers,” Price said in an throughout Orange County. She said many visions, a 400% increase over the original ment a new model of body-worn camera to interview prior to LBPD’s announcement. of those cities have utilized Axon body- pilot program. The new contract will be for field-test at no additional cost to the city. “At some point the experts and our police worn cameras for years and her experience a 12-month period with the option to ex- According to an LBPD presentation to department need to put their heads together with the product has been positive. tend the term by three six-month exten- the Long Beach City Council Public Safety and figure out how to make this happen be- “I think we’re ready now and we should sions, according to the RFP. Committee, chaired by 3rd District Coun- cause, in my opinion, it’s happening a lot implement them now. Very few technolo- The original program began in November cilmember Suzie Price, the pilot program later than I wish it would have happened.” gies are foolproof and very few of them 2016 with 40 patrol officers and supervisors resulted in a 62% reduction of complaints Five out of 12 comparable police depart- guarantee no malfunctions,” Price said. in the West Patrol Division utilizing equip- and a 14% reduction in use of force for of- ments examined by the LBPD currently “I’ve tried over 100 jury trials and . . . the ment and services from Georgia-based Util- ficers wearing cameras. Overall, the pilot have full implementation of a body-worn (Please Continue To Next Page) Newsprint Tariffs Could Spell Bad News For American Print Media

I By SAMANTHA MEHLINGER ing and countervailing duty petitions three under Canadian ownership. Those Digital First Media, the owner of Southern EDITOR with the U.S. Department of Commerce three did not receive standing in the matter California News Group (which operates (DOC) last August, alleging that Cana- by the DOC. That left three American the Press-Telegram, Orange County Reg- Tariffs imposed on Canadian-manufac- dian newsprint mills were selling their mills, including NORPAC – but NORPAC ister, Daily Breeze and other regional pa- tured newsprint have sent the American product in America below fair market was the only one that supported a DOC in- pers) about the tariffs, but an executive newspaper industry clamoring to lobby value and that those mills were the ben- vestigation into the price of Canadian declined to comment at this time. the U.S. Department of Commerce and eficiaries of unfair subsidies. newsprint. As a result, when the DOC pro- Jay Beeler, publisher of the Beach- the International Trade Commission to In January, the DOC made a preliminary ceeded with its investigation, it was not at comber – a local newspaper that prints reverse the duties before their costs go up determination finding that “exporters from the behest of the overall industry, but of every other week – uses Southern Califor- and jobs are impacted. Canada received countervailable subsidies one mill it chose to allow to represent that nia News Group for printing purposes. He More than 60 organizations represent- ranging from 4.42 to 9.93 percent.” The industry, Boyle noted. told the Business Journal that “they are ing newspapers and book publishers have department instructed U.S. Customs & “The department of commerce erred, in purchasing newsprint in huge quantities united to form the Stop Tariffs On Printers Border Patrol agents “to collect cash de- our opinion, last August when they al- many months in advance and probably & Publishers (STOPP) Coalition, arguing posits from importers of uncoated ground- lowed the investigation to go forward,” won't pass on increases immediately.” He that the tariffs were imposed at the behest wood paper [i.e., newsprint] from Canada Boyle said. The DOC is slated to make a has not yet received any notification of a of one American paper mill for financial based on these preliminary rates.” final determination into the investigation price increase for printing. gain, while the vast majority of the paper In March, the department made a pre- on August 2, he noted. “Then also you “If printing costs get excessive, there manufacturing, newspaper and book pub- liminary determination regarding the an- have a quasi-judicial body, the Interna- are a few steps that can be taken to offset lishing industries are in opposition. tidumping investigation into unfair tional Trade Commission, that’s begin- them, such as less door-to-door distribu- According to Paul Boyle, senior vice pricing of Canadian newsprint, finding ning its final investigation in the case. tion and more bulk drops,” Beeler said via president of public policy for the News that Canadian exporters have undercut They’ll take questionnaires, [and] they’ll e-mail. “Also there's opportunity to raise Media Alliance, many newspapers in the the fair market value of newsprint by as do surveys in the industry, including [of] ad rates assuming the competition does Midwest, Northeast and Northwest source much as 22.16%. The department in- consumers. They’ll do a hearing. They’ll the same, since their printing costs will their newsprint from Canada. “Histori- structed customs agents to collect addi- take comments.” also rise.” Beeler noted that his business cally, it has been a North American market tional duties from importers of Canadian A final outcome won’t be known until is diversified as a public relations and ad- going back 25 years. You bought based newsprint based on these rates. mid-September, according to Boyle. “And vertising agency, enabling him to offset upon what region you were located in the “You have this one mill in Longview, meanwhile, the tariffs have to be collected lost revenues on the newspaper side country,” Boyle, whose organization rep- Washington, [which] in our view is try- and it’s doing damage in the marketplace.” through more promotional projects. resents 2,000 newspapers, explained. ing to use the protectionist environment There are 600,000 jobs in the printing “With 40-plus years’ professional experi- “The problem is that there has been a to say, ‘We want to slap duties on Cana- and publishing industry in the U.S., ac- ence, I know that diversification of in- 75% drop in demand for newsprint in dian manufacturers to protect U.S. in- cording to the STOPP Coalition. come streams is the key to being North America since 2000, so many mills dustry and U.S. jobs,’” Boyle said. “But Dozens of newspapers across the coun- recession proof,” he said. have actually shut down,” Boyle said. in reality, the U.S. industry doesn’t sup- try have issued op-eds in recent weeks Although a final determination on the “That’s 10 million tons of production port what NORPAC is doing.” criticizing the tariffs and emphasizing tariffs won’t be made until September, taken offline. There are only five Combined, the two rounds of duties im- their negative impacts. In a March 23 they still stand until that time – leaving the newsprint mills remaining in all of the posed on Canadian newsprint imports rep- piece, Paul Tash, chairman and CEO of newspaper and publishing industries to United States. So there is really no ability resent as much as 32%. In response, Times Publishing Company, wrote that contend with increasing price points and to get supply from the U.S. All the mills newsprint mills have increased their prices the tariffs would result in an additional $3 future uncertainty for months. Boyle is are at 97% capacity.” by about 30%, according to Boyle. million to the Tampa Bay Times’ annual concerned that some papers will go under One American paper mill, the Wash- As Boyle explained it, at the time that newsprint bill. “This is a kick in the in that time. “There is real concern that ington State-based North Pacific Paper NORPAC filed its petitions last year there teeth,” he wrote. weeklies operating on thinner margins Company (NORPAC), filed antidump- were six newsprint mills in the U.S., with The Business Journal reached out to will just close,” he said. I 1_April_10_2018_issue_LBBJ 4/7/18 2:03 PM Page 27

Long Beach Business Journal • April 10-23, 2018 • Page 27 Newswatch

mini tape recorders they used back in the When a lawsuit is filed against a city in regarding what happened in a situation.” “I knew the department was interested day would malfunction all the time. It hap- cases such as excessive force by an officer When all pilot programs are completed, in exploring other options [besides] what pens . . . but the jury still gets the opportu- or a police-involved shooting, Price ex- Price is confident that the city council will we had used in the pilot. I didn’t know nity to look at things in the totality.” plained that cities often settle early in the vote to move forward with full implementa- the specifics that were announced [last] “This isn’t the type of technology that proceedings regardless of the validity of the tion. While she would like to see the full pro- week. I completely agree with the deci- hasn’t been tested. This is a video record- suit because it is the best financial decision. gram rolled out at once, she admitted that a sion. The current arrangement was not ing. It’s not like a new science,” she added. She said going to court and going through phased-in approach is probably more likely the best suited for our department and Since the topic of body-worn cameras was a “he said, she said” trial with no substan- and that this method has certain financial our needs. I think it’s prudent to explore brought to Long Beach, Price – an outspo- tial evidence such as video footage could and operational benefits. With a phased-in our options and accelerate the process at ken advocate for bringing the program to the end up costing cities far more than an ini- approach, Price noted that the full cost this point. I’ll be involved in the process city – noted the police department has al- tial settlement. However, if video footage would not be felt immediately, which is ben- and watching the progress closely as ways been hesitant or apprehensive toward is available, lawsuits are often dropped. eficial during a time of looming budget cuts. chair of the public safety committee. It’s its implementation. She said the concerns “I think it potentially could save us mil- Additionally, she said phasing in the pro- time to get on board with body cameras have often been focused on financial and lions of dollars and really pay for itself in gram would allow for operational efficien- in Long Beach. A brief delay to find the operational challenges. However, pulling terms of a program,” Price said. “I mean, if cies to be established and built upon. best industry partner and to identity from her career as an attorney, Price said a we’re looking at a $1 million addition to Following the LBPD’s announcement of funding for the operational aspects of the body-worn camera program, ideally, could our annual budget to run these operations, continued exploration of equipment and project is acceptable. Anything beyond a end up paying for itself by lessening the we pay out a lot more than that in lawsuits service providers, Price gave the Business reasonable delay is not acceptable at this number of lawsuits brought against the city. simply because there is so much unknown Journal the following statement: point. It’s time.” I 1_April_10_2018_issue_LBBJ 4/7/18 2:43 PM Page 28

28 • April 10-23, 2018 • Long Beach Business Journal Newswatch City To Identify Future Options For Community Hospital Within Six Weeks

This heat map of Community Hos- pital illustrates which areas of the facility are prone to the most dam- age in an earthquake, with red being the most dangerous areas and green being the safest. The lines represent the parameters of the fault line that runs beneath the hospital, which is located at 1720 Termino Ave. Ratings are based upon state seismic regulations. (Image provided by the City of Long Beach)

I By SAMANTHA MEHLINGER cil. “Our goal will be, through these tar- ical Center. He said Pacific Gateway is yet not proven, to have engaged in inappro- EDITOR geted interviews, to whittle down the list to pursuing a national emergency grant priate behavior toward hotel employees, two or three legitimate proposals for the through the U.S. Department of Labor to and precludes the hotel from allowing those Long Beach Economic & Property De- city council to consider, hopefully within provide one-on-one career services to af- guests on the blacklist to enter their prop- velopment Department staff plan to bring the next four to six weeks.” fected Community Hospital employees. erties for three years. potential options for the future operation Tang clarified that the city’s jurisdiction In order to retain emergency care serv- AB 1902 (Levine; D-San Rafael) In- of Community Hospital to the city council over the hospital is limited to its role as a ices at the site, the hospital would have to terference with Contracts – Discourages within four to six weeks. John Keisler, di- property manager via its lease agreement be granted a temporary exemption to state and reduces “personal service contracts” rector of the department, told the city for the site. The city does not have control seismic requirements by the Office of as defined, by unfairly increasing the con- council during a special study session over emergency management services pro- Statewide Health Planning and Develop- tract price for these services based upon an about the hospital on April 3 that the city tocol, which is within the county’s purview. ment, Tang explained. An extension could undefined and unspecified “area income” was in the midst of a process to engage po- Councilmembers and other elected offi- be passed via state legislation – O’Donnell rate that presumably will include wages tential future hospital operators about op- cials such as Assemblymember Patrick O’- has introduced a bill to the assembly that from different industries and different oc- tions for continuing emergency care Donnell have been outspoken about seeks a five-year extension to allow the cupations that are not comparable to per- operations and bringing the facility into MemorialCare’s early shutdown of hospital hospital to be brought into compliance. The sonal services. It also provides the compliance with state seismic code. operations, as well as of the decision by the first hearing for that bill should take place Department of Industrial Relations with The hospital’s current operator, Memori- county to divert ambulances carrying ad- in the assembly’s health committee on ei- extraordinary authority to value compa- alCare Health System, is slated to relin- vanced life support patients to other hospi- ther April 17 or 24, Tang said. I nies, determine “similar services” to be in- quish the lease to the site on July 3. It tals. Tang listed off numerous steps cluded under the provisions of this bill, and announced late last year that, due to non- MemorialCare has taken to compensate for what constitutes “area income.” compliance with state seismic require- these diversions, including by increasing the CalChamber AB 2069 (Bonta; D-Oakland) Medical ments, it would be unable to operate the number of observation beds at Memorial- Marijuana in Employment – Undermines hospital past June 30, 2019. However, Care Long Beach Medical Center. During employer’s ability to provide a safe and MemorialCare issued a lease termination the meeting, Long Beach Fire Chief Mike Releases 2018 drug-free workplace by creating a new pro- notification to the city in February, pushing DuRee said that MemorialCare has been tected classification of employees who use up its exit as the hospital’s operator. It is the doing what they can to ease the burden Job Killer List marijuana for medical purposes, and ex- health system’s position that it cannot bring caused by Community’s impending closure. posing employers to costly and unneces- the hospital into compliance. Mayor Robert Garcia said that the city sary litigation under the Fair Employment As Diana Tang, the city’s manager of continues to be disappointed in the process The California Chamber of Commerce re- and Housing Act (FEHA) whenever the government affairs, explained during the MemorialCare has taken to exit as the oper- leased its annual list of job killer bills last employer terminates an employee in this study session, while the hospital’s emer- ator of the hospital. “I also want to make it week. “Each bill on this year’s job killer list new protected class who has created a gency department is designated by the state clear that we are 100% committed to a hos- poses a threat to certainty for employers and safety hazard in the workplace. as seismically safe, other seismically un- pital and ER on that site. Period,” he said. investors in our state,” CalChamber Presi- AB 2351 (Eggman; D-Stockton) Tar- safe portions of the hospital house care The day prior to the study session, Memo- dent and CEO Allan Zaremberg said. “Be- geted Tax on High Earners – Unfairly in- services required of any hospital operating rialCare issued 60-day layoff notices to 37 sides undermining the state’s economic creases the personal income tax rate from an emergency department. Without these hospital employees. The mayor and several health, job killer bills have a cumulative neg- 13.3% – which is already, by far, the highest departments, which include radiology, councilmembers expressed concerns about ative impact on the businesses and entrepre- income tax rate in the country – to 14.3% pharmaceutical services and more, the state the workforce of Community Hospital and neurs who provide the resources necessary for one category of taxpayers (including would not allow an emergency department asked what the city could do to provide ca- to fund critical state programs like health some proprietors), who already pay half of to operate on the site. reer services and to encourage a new hospital care and education. Legislators must meas- California’s income taxes, forcing them to The city, however, contends that there are operator to retain employees. “We have a re- ure the impact that each of these proposed mitigate these costs through means that in- options for bringing the hospital into com- sponsibility to the folks who have been tak- new laws will have, not just when the econ- clude reducing workforce, in order to pro- pliance and maintaining emergency services ing care of our city for so long to ensure that omy is expanding but also when California vide more funding for higher education. either by relocating required departments to they have jobs and security for their fami- experiences the inevitable downturn.” AB 2527 (Muratsuchi; D-Torrance) other areas of the facility, or through seismic lies,” Garcia said. “I think that needs to be AB 1745 (Ting; D-San Francisco) Vehi- Costly Litigation Against Small Employ- retrofitting, Keisler explained. the second important piece of what comes cle Ban – Bans the sale of combustion en- ers – Exposes small businesses who are “We have engaged with a health care back in these [next] four to six weeks.” gine vehicles in the state by prohibiting the seeking financial investors in their company management expert to represent the city in Nick Schultz, executive director of Pa- registration of a new vehicle in the state after to devastating class action litigation by ban- a request for information process which in- cific Gateway, the workforce development 2040 unless it is a zero-emission vehicle. ning the use of arbitration agreements, which volves targeted interviews with approxi- arm of the city, said that he and his staff AB 1761 (Muratsuchi; D-Torrance) is preempted by the Federal Arbitration Act, mately eight to 10 hospitals or hospital are working with MemorialCare and that Customer Blacklist and Hotel Workers prohibiting class action waivers, allowing for providers that have both the financial capa- it was his understanding that “a certain Panic Button – Denies hotel guests due the award of treble damages, punitive dam- bility and operational history of operating percentage” of Community Hospital staff process, by requiring hotels to create a ages, and attorney’s fees, and interferes with a facility of this sort,” Keisler told the coun- would be transferred to Long Beach Med- blacklist of guests who have been accused, contractual negotiations between sophisti- 1_April_10_2018_issue_LBBJ 4/7/18 2:03 PM Page 29

Long Beach Business Journal • April 10-23, 2018 • Page 29 Newswatch

cated parties by dictating the choice of forum attorneys, not the employer or employee. 2017 Job Killer Carry-Over Bills which may be triggered when a State agency and choice of law for such litigation. ACA 22 (McCarty; D-Sacramento) AB 127 (Committee on Budget) Threat- takes the foregoing discretionary action. AB 2571 (Gonzalez Fletcher; D-San Middle Class Fiscal Relief Act – Unnec- ens Energy Reliability – Threatens energy SB 538 (Monning; D-Carmel) Arbitra- Diego) PERS Investment Policy – Seeks essarily increases California’s 8.84% cor- reliability and will lead to the elimination of tion Discrimination – Unfairly and unlaw- to publicly shame investment managers and porate tax rate, already one of the highest jobs by mandating the closure of the Aliso fully discriminates against arbitration the hospitality companies in which they in- in the nation, to 18.84%, which will en- Canyon natural gas storage facility. agreements by restricting the formation of vest, by forcing them to submit an annual courage companies to leave the state and ACA 4 (Aguiar-Curry; D-Winters) antitrust arbitration agreements in hospital report subject to a public review, that dis- discourage companies from expanding or Lowers Vote Requirement for New Tax contracts, leading to costly litigation over closes employee wage information accord- relocating here. Increases – Unnecessarily reduces the preemption by the Federal Arbitration Act. ing to gender, ethnicity, and race, exposing SB 1284 (Jackson; D-Santa Barbara) voter threshold from two-thirds to 55% for SB 562 (Lara; D-Bell Gardens) Govern- such companies to costly litigation. Disclosure of Company Pay Data – Un- local governments to enact special taxes in- ment-Run Health Care – Penalizes respon- AB 2765 (Low; D-Campbell) Portable fairly requires California employers to sub- cluding parcel taxes, for the purpose of im- sible employers and individuals and results Benefits for The Gig Economy – Imposes mit pay data to the Department of Industrial proving public infrastructure and affordable in significant new taxes on all Californians onerous and costly mandates on companies Relations, creating a false impression of housing, which creates an opportunity for and California businesses by creating a new in the gig economy labeled as the “digital wage discrimination or unequal pay where discriminatory and higher taxes to be im- single-payer government-run, multibillion- marketplace” by adding them under the pro- none exists and, therefore, subjecting em- posed against disfavored industries and dollar health care system financed by an un- visions of the Fair Employment and Hous- ployers to unfair public criticism, enforce- commercial property owners. specified and undeveloped “revenue plan.” ing Act (FEHA), expanding the protected ment measures, and significant litigation ACA 11 (Caballero; D-Salinas) Tar- SB 774 (Leyva; D-Chino) Increased classifications under FEHA for contractors costs to defend against meritless claims. geted Retail Industry Tax Increase – Ex- Permitting Fees and Delayed Permitting of the digital marketplace to include “famil- SB 1300 (Jackson; D-Santa Barbara) Re- poses the retail industry to increased taxes – Exposes permittees to unknown, increased ial status,” and creates further confusion and moves Legal Standing and Prohibits Re- by imposing a quarter-cent sales tax in- fees by providing the Department of Toxic uncertainty regarding the use and classifi- lease of Claims – Significantly increases crease to fund affordable housing and Substances Control (DTSC) a blank check cation of independent contractors. These litigation by removing standing require- homeless shelters, without creating greatly to impose additional fees on permittees to new mandates will dramatically increase the ment for plaintiff alleging failure to prevent needed market-rate housing. implement and perform its statutory require- amount of frivolous litigation under FEHA harassment or discrimination when no ha- SB 49 (de León; D-Los Angeles) Creates ments when its primary sources of funding and the Private Attorneys General Act rassment even occurs, limits the use of sev- Uncertainty and Increases Potential Liti- have structural deficits and creates substan- (PAGA) for the digital marketplace. erance agreements, and prohibits the use of gation Regarding Environmental Stan- tial uncertainty and delay of facility permit- AB 3080 (Gonzalez Fletcher; D-San a general release or nondisparagement dards – Creates uncertainty by giving broad ting by interjecting a new board into the Diego) Ban on Settlement Agreements clause in employer/employee contracts. and sweeping discretion to State agencies to organizational structure. and Arbitration Agreements – Signifi- SB 1398 (Skinner; D-Berkeley) In- adopt rules and regulations more stringent SCA 6 (Wiener; D-San Francisco) Low- cantly expands employment litigation and creased Tax Rate – Threatens to signifi- than the federal rules and regulations in effect ers Vote Requirement for Tax Increases – increases costs for employers and employ- cantly increase the corporate tax rate on on January 19, 2017 through an expedited ad- Unnecessarily reduces the voter threshold ees by banning settlement agreements for publicly held corporations and financial in- ministrative procedure without public partic- from two-thirds to 55% for local govern- labor and employment claims as well as ar- stitutions up to 15% according to the wages ipation or input, when the State agencies ments to enact special taxes, including par- bitration agreements made as a condition paid to employees in the United States, and determine that federal action leads to less cel taxes, for the purpose of providing of employment, which is likely preempted threatens to increase that rate by 50% there- stringent laws and regulations than those in transportation services, which creates an op- under the Federal Arbitration Act and will after, if the corporation or institution re- effect on January 19, 2017; and increases the portunity for discriminatory and higher only delay the resolution of claims. Ban- duces its workforce in the United States and potential for costly litigation by creating pri- taxes to be imposed against disfavored in- ning such agreements benefits the trial simultaneously increases its contractors. vate rights of action under California law, dustries and commercial property owners. I 1_April_10_2018_issue_LBBJ 4/7/18 2:50 PM Page 30

Long30 • BeachApril 10-23, Business 2018 Journal • Long • April Beach 10-23, Business 2018 Journal • Page 30 NewswatchSmall Business Showcase – Orange Avenue & Carson Street

Articles and photographs by Staff Writer Anne Artley Support Local Small Businesses Chiki Fruit And Bionicos After meeting her husband on a trip to Long Beach to visit her sister, Chiki Fruit and Bionicos Owner Elizabeth Mendieta moved to the city from Guadalajara, Mexico, in 2003. Three and a half years ago, she decided to open a shop similar to the one she hel Chiki Fruit and Bionicos features sandwiches, smoothies and Mexicanped her delicaci family run in Mexico. sake “bionico,” an assortment of fruit bathed in a cream mixture topped with esshredded such as coconut, its name- granola and raisins. Mendieta’s bestsellers are smoothies and panini sandwiches with fruit on the side. “There is no sugar in the smoothies. Everything is healthy and more natural,” she said. Chiki Fruit also offers a wide selection of Mexican candy. Another pop with shaved ice, fruit, Tajín (a Mexican brand of seasoning madeular of up item chili is peppers,the diablito, lime a anddrink salt), and chamoy, a Mexican condiment made of pickled fruit and chili. Mendie a different smoothie recipe dedicated to each day of the week. If a customer ordersta’s the shop smoo serves of the day, the second smoothie is half-price. Mendieta chose he thie apartment complex nearby, later buying a house in the area. Sher saidlocation she enjoysbecause the she service lived inaspect an of her business as well as cooking. Chiki Fruit and Bionicos is located at 4102 Orange Ave., Suite 105. For more information, call 562/528-8932 or visit www.chikifruitandbionicos.com.

Donato’s Hair Salon Donato’s Hair Salon Owner Leah Farris, who specializes in hair services for senior citi- zens, said some of her clients have been seeing her since she started styling hair in the early 1960s. “I started when I was 18,” she said. “My clients and I all grew up together. Some of them are four generations. Kids, their mothers and the grandkids come to see me.” Originally from Blythe, California, Farris moved to Long Beach to attend cosmetol- ogy school. “My dad wanted all his girls to learn a trade,” she said. Farris bought the salon in 1996 from her former boss, who was retiring. Some of her services include perms, which she said many salons do not offer anymore, body waves and coloring. “A lot of sa- lons don’t have dryers or roller sets. They only use blow dryers,” Farris said. “My clients still like to sit under the dryer, relax and read magazines.” As her clients have passed away, she said she has styled hair for several of their funerals. “It’s my way of saying thank you for being with me all these years,” she said. Farris said that her clients are like family, and that her business is more of a hobby now. She keeps a shelf with coffee mugs for anyone who drops by for a chat. “My clients go to lunch together. They meet here and have coffee, sit and visit whether they have an appointment or not.” Donato’s Hair Salon is located at 4102 Orange Ave., Suite 121. For more information, call 562/428-4000. Sabi’s Eyebrow reading Shabitra Oli moved to Long Beach in 2002 with her husband and son from Kathmandu, the capital of Nepal. Her family came to the United States through the diversity lottery, a program created in 1990 that reserves a certain number of visas for citizens of countries with low immigration rates to the United States. Oli said she had worked an office job in her home country, but she started threadingl that eyebrows involves in Long Beach when a friend offered her a job in her salon. Threading is a form of hair remova a cotton thread twisted into a double strand. The stylist sweeps it along the skin, and unwanted hairs are caught in the thread and removed. In addition to eyebrows, Oli provides morethreading precise for hair-removal hair on the upper tech- lip, forehead, cheeks and the side of the face. According to Oli, threading is a she has retained nique than waxing as it pulls the hair from the root rather than breaking it. Oli said that many of the clients she started out with 16 years ago, with some comingwn here from [in asSouthern far away California]. as Riverside. My “My clients love me and I love them,” she said. “I like the people do neighbors are nice.” In addition to her beauty services, Oli sells makeup and jewelry such as bracelets, ear- rings, toe rings and jeweled bindi, which are forehead decorations typically worn at Indian weddings. Sabi’s Eyebrow Threading is located at 4102 Orange Ave., Suite 125. For more information, call 562/424-0892.

tirement using pre-tax or after-tax investments, the majority says their strategy won’t Small Business Dollars & Sense change (57%). In addition, slightly more say they will focus more on pre-tax (19%) than after-tax (12%) investments. Non-retired investors – The poll also asked non-retired investors how much thought Small Business And Investor Optimism they have given to seven different aspects of retirement. At the top of the list Non-retired investors are most likely to have thought about how they will spend their leisure time in any small business owners manage their own finances and are in- retirement – 53% have thought “a lot” or “a fair amount” about this. This result shows Mvesting in the stock market to ensure they have money for retire- that less than half of non-retirees have given much thought to various aspects of retirement ment. But did you know, despite the first quarter market volatility, planning such as when to take Social Security, draw-down strategy, income taxes in re- investment optimism remains at a 17-year high? tirement, and paying for medical costs/long-term care. . . . but more than half had given According to our most recent Wells Fargo/Gallup Investor and Retire- serious thought to how they’ll spend their leisure time in retirement. About a third are ment Optimism Index, conducted February 2-25, 2018, investors remain highly confident they’ll have enough money for retirement. solidly optimistic on three economic aspects – economic growth, stock Female investors more fearful of volatility – About half of investors, 52%, report feeling “not too concerned” or “not at all concerned” about recent volatility in the stock By Natasha market performance, and unemployment. Investors are most positive about maintaining their household income over the next year and about reaching market. Although there is no difference in these concern levels by age, there are differ- Mata their five-year investing goals. Sixty percent of investors say they are at ences by gender – with 53% of female investors versus 38% of male investors saying they least somewhat optimistic about the 12-month outlook for these economic aspects. are “very” or “somewhat concerned” about the recent volatility. Market volatility – This quarter’s survey showed us that investors seemed to shrug off Whether you are a small business owner or just a casual investor, we recommend that this year’s market volatility (this volatility tolerance is higher now than it has been the you seek advice on your finances from a banker or a financial professional. While stocks last two years). Further proof of that tolerance is that more than half of the people polled offer long-term growth potential, investors should understand that stocks may fluctuate say they could withstand a 10% correction on a $10k investment over the course of a year. more and provide less income than other investments. An investment in the stock market Business and personal tax cuts – The survey explored how people feel about corpo- should be made with an understanding of the risks associated with common stocks, in- rate and personal income tax cuts – responses were very divided – and found that people cluding market fluctuations. don’t understand the distinction between Roth and traditional IRAs/401k plans. When (Natasha Mata, a 22-year veteran of Wells Fargo, is region bank president of the greater asked whether, under the new tax plan, investors now are more likely to save for their re- Central Los Angeles Area, which includes Long Beach and some North Orange County cities.) 1_April_10_2018_issue_LBBJ 4/7/18 2:03 PM Page 31

Support Local Small Businesses 1_April_10_2018_issue_LBBJ 4/7/18 2:03 PM Page 32