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August 4, 2010
Long Beach Chamber Statement On The Recent Legislative Leadership Budget Proposal

Long Beach Area Chamber of Commerce President and CEO Randy Gordon released the following statement today regarding the legislative leadership proposed budget:

“The Democratic Budget Proposal is a good start, however, the economy cannot sustain delayed corporate tax reforms and increased taxes. Government needs to stop the out of control wasteful spending along with all of the gimmicks and tricks it uses to balance the budget. Sacramento needs to realize that our state can no longer afford to function on a deficit year to year and a permanent fix is needed.”

 

August 2, 2010
Enterprise Zones Work For Long Beach


Long Beach businesses and their employees have benefited greatly from the California Enterprise Zone (EZ) Program since its creation back in 1992. EZs serve as one of California's most significant economic development tools, broadly applying much-needed tax incentives to businesses of all sizes across virtually all industry lines.

EZs also lead to some very positive business enhancements and continue to attract potential business throughout each of your respective districts.
As you already know, the EZ program was established by bipartisan legislation and continues to offer a variety of tax credits and incentives to encourage businesses to locate, invest and create jobs in economically distressed communities within the state and in our great city of Long Beach. Many of these benefits exist for both employer and employee under the EZ program. These benefits serve as a constant reminder that Long Beach and the state remain open for business and the need for us to continue to attract and retain businesses in order to move past the current economic times.


The following list highlights these benefits:


- Hiring credits (Companies can earn up to $13,700 annually in state tax credits for each economically challenged employee hired;
- Worker credits (Employees can qualify for a one-time individual employee credit of up to $525). Since the eligible employees are often minorities, the program provides a helping hand in addition to job security;
- Equipment credits (Subchapter C corporations can earn sales tax credits on purchases of up to $20 million and $1 million for S corporations, partnerships and LLCs per year for qualified machinery and machinery parts, including manufacturing, processing, research and development, and pollution/ energy control equipment used exclusively in an EZ);
- Tax deduction (Lenders to EZ companies may receive an income tax deduction for the net interest income earned on EZ loans);
- Preference points (EZ companies can earn preference points on state contracts).


Since 41 other states have their own version of Enterprise Zone programs, and lower tax rates and looser regulatory structures, we need EZs in order to continue to move Long Beach in a direction of prosperity and retaining businesses located throughout the EZ program areas. The program administration was dramatically improved in 2007 and compliance and cost-benefit measurement systems will ensure that taxpayer dollars are producing jobs and improving overall tax revenues.

Several studies have established the program’s effectiveness, including a March 2009 revision of a national study by University of Southern California researchers and an August 2006 study commissioned by the California Housing and Community Development Department.   Both reports concluded that the EZ Program had positive, statistically significant effects on local labor markets, including the unemployment rate, poverty rate, and average wages and household incomes.

Recently, the State Legislature began the process of considering a proposal (SB 974 - Steinberg) which would effectively gut the California Enterprise Zone (EZ) program hiring tax credit.

SB 974 proposes to create a “career pathways” tax credit in an effort to bolster career technical education efforts in this state. However, this new tax credit is “paid for” by eliminating key provisions of California’s successful Enterprise Zone Program. Two specific provisions of the EZ Program would be decimated if SB 974 were enacted. The EZ Program provides important benefits to businesses that invest in some of California’s most economically distressed areas and provide jobs to disadvantaged individuals.

First, SB 974 would eliminate the Targeted Employment Area (TEA) from the list of eligibility criteria for the EZ hiring tax credit. As such, the incentive to hire individuals from certain low-income neighborhoods with historically high levels of unemployment and poverty would be eliminated. Because a large number of hiring credit vouchers are issued under the TEA criterion, the practical effect of this provision will be to eliminate the mostly widely used benefit of the EZ Program. The TEA criterion is appropriate because it focuses on hiring individuals who reside in the most economically distressed areas within and surrounding an enterprise zone in this state.

Second, SB 974 would require all hiring tax credit certifications (also known as vouchers) to be completed within 21 days of an individual being hired. There are detailed statutes and regulations promulgated by HCD which provide specific documentation standards and other requirements for obtaining vouchers under the fourteen eligibility criteria. This provision is an arbitrary and impractical deadline that will preclude most employers, particularly small businesses, from claiming the EZ hiring tax credits to which they are otherwise lawfully entitled. The practical effect of this provision is to eliminate “retroactive vouchering” and instead impose an unreasonable burden upon businesses to obtain vouchers in an unrealistic timeframe.

The EZ program needs your vocal support because it is vital to the Long Beach business community and our economic recovery...

...and that’s Strictly Business.

Randy Gordon
President and CEO
Long Beach Area Chamber of Commerce

 

Strictly Business | July 26, 2010
Pension Reform Now


It is a public policy priority of the Long Beach Area Chamber of Commerce in 2010 to support responsible public pension reforms for the City of Long Beach. Specifically, the Chamber is committed to seeking ways to balance current and future obligations for public employees, find solutions to the ongoing cost increases of public pensions in order to maintain the delivery of services that businesses and residents deserve, prevent the potential bankruptcy of our City, and educate our local business community on the hazards of an out of control pension system and what it means to the City of Long Beach and the business community in the future.

Earlier this year, during Councilmember Gary DeLong's campaign for reelection, he was a candidate who publically acknowledged the mess our public pension system is facing and was willing to offer a solution. DeLong staked his reelection on the issue which many believed was political suicide. He was reelected with over 61% of the vote. One of the main reasons why DeLong was able to talk so bluntly about the public pension disaster was because he was not endorsed and financially supported by local public employee unions like many of his colleagues on the Council who chose not to make it an issue in their elections.

Fast forward to a few weeks ago when Councilmember DeLong turned his words into action by proposing a Charter amendment that will prevent future City Councils and City Management from giving away the farm through increasing pension benefits by requiring pension increases be approved by a vote of the people. Additionally, DeLong's proposal will reduce "pension spiking" by requiring that public employee's pensions be based on an average of the last three years of employment.

The fact remains that there is nothing the City can do about the current pension obligations that are terrorizing the general fund. Quite frankly it is currently against the law to reverse past pension increases. However, DeLong's proposal is a way of preventing future city leadership from giving into the public employee pressure. And that is the right step towards ensuring we do not get into this mess again.

So how did the City of Long Beach get into this mess in the first place? The Press Telegram outlined this question in detail in an article yesterday.

According to the Press Telegram: From the 2000 to 2004 fiscal years, Long Beach had expected to pay between $30 million and $40 million annually into the California Public Employees' Retirement System, or CalPERS. Instead, a robust economy and better-than-expected investment returns created a "super-funded" pension system...

By 2004, Long Beach was already facing a budget deficit even without pension costs that year, and officials began what would become an ongoing downsizing of city government. To date, Long Beach has cut $162.8 million in budget deficits and eliminated 650 positions from the workforce...When Long Beach had to start paying pension costs again in 2005 after at the end of super-funding, the city paid $48.1 million, $34.1 million of which came from its general fund. Basic services such as police, firefighters and libraries are paid by the general fund, and it is this fund that has had continual deficits.

The pension cost has grown by 8.7 percent a year, hitting a projected amount of $71.2 million this fiscal year, according to city officials.

In the next three years, cities will start paying for the drastic losses that CalPERS incurred between 2007 and 2009. During that time, CalPERS lost $100 billion, although it has recouped part of that to creep back over the $200 billion mark -- still a far cry from the $260.4 billion peak of 2007.

Making up for that loss will push Long Beach's pension costs to $76.6 million in the 2011 fiscal year, then to $84.6 million in 2012, and to $94.6 million in 2013, according to Long Beach Department of Finance estimates. If left unchecked, pension costs will rise from 13.1 percent of the general fund this year to 17.6 percent of it in the 2014 fiscal year, officials estimate.


Mayor Bob Foster also proposed last Friday a solution that is worth exploring by the City Council. Foster announced his idea of creating a new pension tier for new public employees that would, according to the Press Telegram: "
give police and firefighters 2 percent of their salary for each year of employment with retirement at 55, while other employees would get 2 percent per year at age 60. Furthermore, instead of giving employees their contractual pay raises, which are valued at $11.3 million in the next year, all raises over the next few years would be credited to the employees' total pension payments. In effect, the employees would technically pay the full 8 or 9 percent employee share, but the extra cost would be paid by the city in lieu of actual raises. Once that payment level is reached, workers' salaries would be frozen indefinitely under Foster's plan."

In the end, the impact to the Long Beach business community will be the greatest if nothing is done. The business community generates the general fund revenue that pays for the pensions in the first place. Less general fund revenue to support a high quality of life by funding essential services gives businesses another reason to either leave Long Beach or not invest here at all. Continued public pension pressures on the general fund will devastate our local economy unless something is done now.

How can you help? Click here to find the contact information for your City Councilmember. Call them today and demand pension reform.

The DeLong plan fixes the future. The Foster Plan appears to provide immediate relief for the present. Both proposals are a step in the right direction to bring responsible public pension reform to the forefront for debate and hopefully for approval...

...and that’s Strictly Business.

Randy Gordon
President and CEO
Long Beach Area Chamber of Commerce

Strictly Business | July 7, 2010
Spending More Than We Have


Last night, the Long Beach City Council voted 7 to 2 to approve moving forward with a Project Labor Agreement (PLA) with the Airport Terminal Project. Vice Mayor Val Lerch and Councilmember Gary DeLong were the only two City Councilmembers to stand up and do the right thing by opposing the PLA. The other Councilmembers including Robert Garcia, Suja Lowenthal, Patrick O'Donnell, Gerrie Schipske, Dee Andrews, Rae Gabelich, and Tonia Reyes Uranga supported the proposed PLA.

 

One of the most vocal advocates in favor of the PLA last night was Mayor Bob Foster. The Mayor made it clear he thinks PLAs do not cost more money. The Mayor also based his support of the proposed PLA at the Airport Terminal on his past business background, among other reasons.

To his credit, the Mayor mentioned that there is truth on both the opposing and supporting sides of the PLA debate. But in the end, that acknowledgement was too little, too late after the Mayor's success in securing the support of seven council members to push through this PLA.

 

Now the Mayor and the City Council run a City facing an $18.5 million deficit. Clearly, this is not the time to make political decisions at the expense of our local economy, jobs and the families that depend on them.

 

Furthermore, it was the Chamber's understanding that the City Council directed staff earlier this year to develop a comprehensive study of a possible PLA at the Airport Terminal Project. Instead of sharing this "study" in a study session, city management somehow bypassed the public and sent a three page memorandum to the Council and Mayor days before last night's vote. The Chamber was not able to secure a copy of this so-called "study" to get a clearer picture of the potential benefits of the proposed PLA.

 

The bottom-line is that the Long Beach Chamber-opposed PLA that seven Councilmembers approved last night will hurt employers, employees and this city. Our position is based on the importance of a level playing field for all contract negotiations. It is simply wrong when union and non-union contractors are bidding against each other and if a non-union contractor is selected, they have to hire union workers upon a contract being awarded.

Contract negotiations should come down to four things: Price; the ability to deliver the project on time; quality; and ongoing efforts to reduce cost and improve performance. If union contractors win the competition on such attributes, no problem. But to dictate to winning non-union contractors that they have to disrupt their business practices by limiting them to only using 15% of their workforce is highly inefficient.

Eighty five percent of the private construction industry is non-union and a PLA prohibits non-union apprentices from working at all. This means those seeking apprenticeship training are limited to only 15% of the opportunities available. Most importantly, studies have routinely proven that PLAs add as much as 20% in costs to constructions projects.

When we as a City, as do most, struggle to properly fund our essential services, we should not be looking to add costs to City construction projects. Other strapped cities and counties understand the impact of PLAs on their fiscal standing. Consider these examples: Voters in the cities of Chula Vista, Oceanside and San Diego County recently approved bans on new PLAs. Last year, the Orange County Board of Supervisors banned county government agencies from making new PLAs. And the City of San Diego is gearing up to vote this November on a PLA ban there, too.

The elimination of PLAs in these communities often times came down to the fact that PLAs with a union-mandate component have been shown to actually decrease the number of local bids as well as limit the amount of local workers that a construction company may hire. Therefore, we believe it is clear that there is no guarantee that local hiring will actually happen despite what supporters of PLAs will tell you.

PLAs also mandate that all contractors and their employees pay union dues and fees but the PLAs do not require them to, quote, “be in” the union. This is a win-win for a union because they get the employee’s money but are not required to represent the employee’s rights. Also,
the union exclusive PLA will force non union contractors to lay off many of their current employees. It requires that a non union contractor be allowed to employ one current employee for every union employee they employ up to a maximum of 15% of their workforce while working under the airport PLA. After the 15% has been attained all employees must be union members. Union contractors may keep all of their current employees with no restrictions.


Finally, unions contend that PLAs with a union-mandate guarantee labor peace at sites and timely completion of projects. Again, studies have proven these claims to be false. In fact, many construction projects under PLAs experience serious delays due to work stoppages and projects going over budget.

The Long Beach Chamber sincerely hopes that our elected officials will start taking the issue of fiscal responsibility more seriously especially when it comes to public policy decisions such as a PLA. We also hope they understand that approving the PLA does nothing to help local businesses
and is counterproductive in our effort to get our economy moving again.

 

Most importantly we hope you will tell the Mayor and the seven Councilmembers that supported the PLA how disappointed you are in their unwillingness to stop spending more money than we have to spend...


...and that’s Strictly Business.
 

 

Randy Gordon
President and CEO
Long Beach Area Chamber of Commerce

Strictly Business | June 29, 2010
Free Workers, Valuable Experiences


As a business owner or leader, you are always aware of the need to watch the bottom-line while keeping a pipeline of skilled applicants at the ready.

That’s why the Summer Youth Employment Training Program is not only a great business tool to help you get additional FREE staff resources this summer, it is an outstanding way for your business to play a strong role in providing leadership in the community. This program gives our local youth – our future workforce – entry-level training, confidence that comes from a job well done, exposure to new career pathways, a paycheck that will be spent locally, and a true sense of accomplishment.

Between July 12 and early September 1,500 youth will be ready to go to work across our communities. These young people will be motivated, and ready to get to work. They come at no direct cost to you. For your in-kind contribution of time and wages as a supervisor, the youth will be placed by the Pacific Gateway Workforce Investment Network's Hire-A-Youth team who will cover their wages and taxes, payroll processing, worker compensation insurance – and will provide you with a staff liaison to assist with questions or needs.

To request one or more trained workers, go to www.YourNextHire.biz and complete the brief online form or call (866) 848-3321 now!

This program is coordinated by our regional Workforce Investment Network. They understand our business community's needs, and they have also really stepped up in recent years to be a convener of relevant strategies around preparing, accessing and placing a skilled workforce in support of businesses. The Network makes solid investments, along with our Unified School Districts, Community Colleges, Universities, and others to make that a reality.

Business assistance and incentives aside, the Workforce Investment Network also puts great stock into career pathways strategies that link our young people with academic programs in their middle and high schools with real-world experiences through internships and paid work experience. In this era of high unemployment, youth unemployment has spiraled – leaving thousands of high school and college-aged young persons without meaningful activities over the summer months.

I urge you to take advantage of the Summer Youth program. It is your opportunity to bolster your bottom-line, attack some special projects, and invest in your future workforce…

...and that’s Strictly Business.

 

Randy Gordon
President and CEO
Long Beach Area Chamber of Commerce

 

Strictly Business | June 21, 2010
Breaking Down The Breakwater Issue


It is the long-standing public policy priority of the Long Beach Chamber to advocate for the City to take a more prudent approach to its current and future budget obligations. The Executive Committee of our Government Affairs Committee made the decision last week, based on the Chamber's long-standing priority mentioned above, to oppose the funding of the Breakwater study because it is the wrong time for our City or our Port to spend $4 million on a study.

The Chamber is aware that much must be done to improve the quality of our beaches. We are proud of what our beachfront has to offer and the fact that it is such a rich asset. However, some agree that any reconfiguration of the breakwater will improve the water quality near our beaches and boost our local economy with increased tourism. Others argue that any reconfiguration of the Breakwater will have a devastating impact to our Port and the communities impacted by the beachfront proximity. It will be at least four years, if the proposed study passes with Council approval tomorrow night, before both sides of this debate is decided. As of now, the Chamber does not have a position on the reconfiguration of the breakwater and reserves its right to take a position at the appropriate time.

In the meantime, the current economic vitality of Long Beach and the quality of life of its citizens are a top priority for the Long Beach Area Chamber of Commerce. I do want to thank our Mayor and City Council for their continued commitment to working together to strengthen our local economy. However, tomorrow evening, the Long Beach City Council will consider whether it should move forward with the study, at an estimated to cost of $4 million to the Tidelands Fund, to determine the best course of action for the future of the Breakwater.

The Chamber firmly believes this is the wrong time to make such a massive investment in the proposed study. The City of Long Beach’s current fiscal crisis coupled with the diminishing resources available through the Tidelands Fund, does not warrant spending up to $4 million for a study. Furthermore, it is NOT the responsibility of the Port of Long Beach to fund the study on behalf of the City. Our concern is that the Port is unfairly being expected to fund a City mandate and while the results of the study are uncertain, the financial impact to the Port, and the City itself, is not.

During these challenging economic times, we need to remain focused on immediate investments that instantly retain and create jobs. We also need to focus on closing a massive budget deficit and bringing short-term and long-term fiscal responsibility back to City Hall. Moving forward with this study under these circumstances is the wrong idea at the wrong time...

...and that’s Strictly Business.
 

 

Randy Gordon
President and CEO
Long Beach Area Chamber of Commerce

 

Strictly Business | June 17, 2010

Long Beach City College Has 10,000 Reasons To Help You

One of the most exciting things about working for our local business community is when I witness ideas based on innovation positively impacting our local economy through action. This process is one of the core tenants of the spirit of free enterprise. Now, couple that with the resources and passion of our great Long Beach City College - the opportunities are endless.

The Long Beach Community College District recently partnered with the Goldman Sachs 10,000 Small Businesses initiative to help small businesses in the surrounding area grow and create jobs. The program at Long Beach City College is part of a $500 million national five-year investment by Goldman Sachs to unlock the growth and job creation potential of small businesses, and is based on the broadly held view of leading experts that a combination of education, support services, and access to capital best addresses the barriers to growth for small businesses.

Specifically, the 10,000 Small Businesses initiative will offer a unique combination of three resources to help small business grow and create jobs:

Business and Management Education
Small business owners will have access to a high quality business education developed in partnership with leading national business schools. Through the program, they can develop a business growth plan through a practical business and management education offered by Long Beach Community College District.

Access to Capital
Goldman Sachs will commit $20 million of lending capital, in addition to philanthropic support. This investment will increase the amount of growth capital available to small businesses in underserved communities to deliver enhanced technical assistance to small businesses.

Business Support Services
Business advice, technical assistance, and networking will be offered to participating small business owners through partnerships with the community colleges and national and local business organizations, as well as the people of Goldman Sachs.

The initiative is designed for owners of small businesses with limited financial resources, and with few opportunities to otherwise access a business education designed to enhance small business success. Broad characteristics of business owners targeted to participate include, but are not limited to: business revenues between $150,000 and $4 million in 2009; business in operation for at least two years; at least four employees; operations in economically underserved areas; and a business model that could scale to create more jobs.

This initiative and the leadership of Long Beach City College will be a positive force in bringing stability back to our local economy. I encourage you to log on to http://www.lbcc.edu/10000smallbusinesses and understand how the initiative can help you.

Initiative like these are very rare. It's up to you to understand what it has to offer so you can continue to retain and create jobs and...


...and that’s Strictly Business.

 

 

Randy Gordon
President and CEO
Long Beach Area Chamber of Commerce

 

June 16, 2010
Long Beach Chamber Letter Of Opposition To Mayor And City Council On Breakwater Impact Study Funding
 

Long Beach Area Chamber of Commerce President and CEO Randy Gordon sent the following letter to Long Beach Mayor Bob Foster and the Members of the City Council today regarding the Chamber’s opposition to the Breakwater funding proposal on the June 22, 2010 City Council agenda:

 

June 16, 2010

 

Mayor Bob Foster

Members, Long Beach City Council

City of Long Beach

333 West Ocean Blvd.

Long Beach, CA 90802

 

Subject:  Funding of Federal Breakwater Impact Study – OPPOSE

 

Dear Mayor Foster and Members of the Long Beach City Council:

 

The economic vitality of Long Beach and the quality of life of its citizens are a top priority for the Long Beach Area Chamber of Commerce. I want to thank you for your continued commitment to working together to strengthen our local economy.

 

The Chamber recognizes that more can be done to improve the quality of our beaches. However, we are proud of what our beachfront has to offer and the fact that it is such a rich asset. Recent discussions regarding the future of our beaches are based on the idea of bringing waves back to the shores of our City by reconfiguring the Breakwater. Some agree that any reconfiguration will improve the water quality near our beaches and boost our local economy with increased tourism. Others argue that any reconfiguration of the Breakwater will have a devastating impact to our Port and the communities impacted by the beachfront proximity. It is not the intention of the Chamber to comment on any reconfiguration proposal; however, the Chamber will reserve its right to consider a position on any reconfiguration of the Breakwater in the future.

 

On June 22, 2010, the Long Beach City Council will consider whether it should move forward with a study, estimated to cost the City $4 million, to determine the best course of action for the future of the Breakwater.

 

The Chamber firmly believes this is the wrong time to make such a massive investment in the proposed study. The City of Long Beach’s current fiscal crisis does not warrant spending up to $4 million for a study. Furthermore, it is NOT the responsibility of the Port of Long Beach to fund the study on behalf of the City. Our concern is that the Port is unfairly being expected to fund a City mandate and while the results of the study are uncertain, the financial impact to the Port, and the City itself, is not.

 

During these challenging economic times, we need to remain focused on retaining and creating jobs. We also need to focus on closing a massive budget deficit and bringing fiscal responsibility back to City Hall. Moving forward with this study under these circumstances is the wrong idea at the wrong time.

 

Thank you for your consideration.

 

Sincerely,

 

Randy Gordon

President and CEO

 

CC:

 

Pat West, City Manager, City of Long Beach

Dick Steinke, Executive Director, Port of Long Beach

Lori Lofstrom, Chairman, Chamber Board of Directors

Jim Eaton, Chairman-Elect, Chamber Board of Directors

Joanne Davis, Chair, Chamber Government Affairs Committee

 

Strictly Business | June 2, 2010
The Chamber Recommends


The Long Beach Area Chamber of Commerce reviewed and considered positions on each of the June 8, 2010 statewide ballot measures. Taking positions on ballot measures is important because each proposal will have an impact on the Long Beach business community.

I am often quoted as saying, "The Chamber was put on this earth to fight for business." Well, taking positions on next week's ballot measures is no exception in our fight to improve the Long Beach economy so businesses can retain and create jobs.

When you vote next week, keep in mind the Chamber's positions. We take the process of determining our positions very seriously. Two months of discussion and debate by our Government Affairs Committee made up of over 30 business people who represent small, medium and large businesses go into considering the Long Beach Chamber's positions. We also bring these position to our Board of Directors for their approval as well.

So, we hope that our recommendations will guide you in helping us improve the economic vitality of our city and region.

Long Beach Chamber Positions on the June 8, 2010 Statewide Ballot Measures

Proposition 13: Seismic Retrofitting - SUPPORT
Proposition 14: Elections: Open Primaries - SUPPORT
Proposition 15: California Fair Election Act - OPPOSE
Proposition 16: Taxpayers Right To Vote Act - SUPPORT
Proposition 17: Continuous Coverage Auto Insurance Discount Act - NO POSITION

June 8, 2010 Statewide Ballot Measures In Depth

Proposition 13: Seismic Retrofitting
Long Beach Chamber Position: SUPPORT

Proposition 13 would prohibit tax assessors from re-evaluating new construction for property tax purposes when the new construction is consider earthquake safety improvements. Tax assessors would only be allowed to re-evaluate for property tax purposes after the building has been sold.

The Long Beach Chamber supports Proposition 13 because it will be a benefit to owners of existing structures that have complied with earthquake retrofitting laws. Proposition 13 would also ensure equal treatment of property owners who incorporate the seismic safety improvements.

Proposition 14: Elections: Open Primaries
Long Beach Chamber Position: SUPPORT

Proposition 14 would require that candidates run in a single primary open to all registered voters, with the top two vote-getters meeting in a runoff. This system would take place in the 2012 elections. This Proposition would not affect Presidential and political party leadership positions.

The Long Beach Chamber supports Proposition 14 because it will provide all voters the opportunity to choose the best candidate possible in the June primary from a list of all candidates. Current efforts to secure partisan support in the primary process prevents pro-job creating candidates from even entering some races. Furthermore, an open primary will level the playing field and allow for all candidates, regardless of partisanship, to seek support from all voters not just the most active within their respective party's.

Proposition 15: California Fair Election Act
Long Beach Chamber Position: OPPOSE

Proposition 15 would institute a pilot program of publicly-financed elections for the office of California Secretary of State. The publically-financed election would be funded by taxing lobbyists, lobbying firms and lobbyist employers. The Proposition is currently the subject of litigation.

The Long Beach Chamber opposes tax increases on any single industry and even though Proposition 15 is a pilot program aimed at only one particular political office, the Proposition unfairly targets lobbyists to pay for the financing of a government election. The Chamber is concerned than the ultimate goal would be to spread this effort to other political offices and increase taxes to pay for more public-financed elections.

Proposition 16: Taxpayers Right To Vote Act
Long Beach Chamber Position: SUPPORT

Proposition 16 is a state constitutional amendment, if passed, would require a two-thirds voter approval before local governments can provide electricity service to customers or implement a community choice electricity program using public funds or bonds.

The Long Beach Chamber supports Proposition 16 because we believe it is reasonable to require a super-majority vote of residents when creating a community choice electricity program even though not all residents may not benefit from it.

Proposition 17: Continuous Coverage Auto Insurance Discount Act
Long Beach Chamber Position: NO POSITION

Proposition 17 amends Proposition 103, passed by the voters in 1988, to authorize the use of an additional discount on premiums for automobile insurance policies. In particular, the act would allow an insurer to offer a “continuous coverage” discount to new customers who have maintained their coverage while they previously were customers of another insurer. Continuous coverage is defined to also include applicants who experienced up to a 90-day lapse in coverage in the past five years for any reason other than nonpayment of their insurance premiums.

The Long Beach Chamber decided not to take a position on Proposition 17. The Chamber is concerned that the ballot measure process is attempting to mandate a service that should be determined by the private sector. However, many insurance companies already provide the service outlined in Proposition 17. Therefore, the Chamber does not believe that the Proposition was needed in the first place.

--

Each ballot measure will impact you and our local economy. I urge you to take the time to consider our positions and do some more research yourself by clicking here to visit the California Secretary of State's web site.

Voting is your right and every vote counts...
 

...and that’s Strictly Business.

Randy Gordon
President and CEO
Long Beach Area Chamber of Commerce

May 19, 2010

Long Beach Chamber Volunteer Wins Statewide Business Advocate Award

Joanne Davis Honored as California's Small Business Advocate of the Year

 

The California Chamber of Commerce honored Joanne Davis in Sacramento this week as its “2010 Small Business Advocate of the Year" for her advocacy efforts on behalf of Long Beach small businesses.

Davis is the current Long Beach Area Chamber of Commerce Board of Directors Vice Chair for Public Policy and Chair of the Government Affairs Committee (GAC). She was also recently named the 2011-2012 Chairman of the Long Beach Chamber's Board of Directors.

The California Chamber presented the award at a luncheon before more than 400 attendees at the California Chamber Business Summit in Sacramento.

Randy Gordon, president and chief executive officer of the Long Beach Area Chamber of Commerce, nominated Davis, saying, “I am proud of all Joanne has done for Long Beach. She will continue to have a bright future with the chamber as she continues her involvement and activism representing the interests of Long Beach businesses at all levels of government.”

Davis led one of the most productive and results driven years in recent memory. As chairman of the GAC, Davis focused the chamber’s public policy efforts on three strategic initiatives in 2009: fiscal reform and responsibility, environmental balance and economic growth. Davis rallied more than 1,600 people to sign an online petition in support of approving terminal upgrades at the Long Beach Airport which resulted in the 2009 groundbreaking of the construction effort. She led the chamber’s efforts to bring clarity and flexibility to the state’s meal period laws to minimize employer liability and to provide for flexible workweek scheduling for California’s employees by rallying hundreds of businesses to send letters to elected officials urging support.

 

May 17, 2010

Attend Open Houses: SR-22/I-405/I-605 Construction Starts This Summer

Please join the Orange County Transportation Authority and the California Department of Transportation at one of their open houses to learn about planned improvements to the SR-22/I-405/I-605 interchange.


Click here to download information.

Strictly Business | May 14, 2010

Bob Curry: The Entrepreneur At Work


My proudest moments in almost three decades as a chamber of commerce executive are when I witness the spirit of free enterprise at work. At the core of that spirit are people who dedicate their lives and their passion to providing jobs for others, a tax base that supports a thriving community and the leadership in their industry so progress can be forged.

The people working at that core are called entrepreneurs.

Each year the Long Beach Area Chamber of Commerce honors an entrepreneur at our annual City National Bank Entrepreneur of the Year Luncheon. We held this year’s even last week and honored one man who embodies the spirit that I talked about. The Press-Telegram said it best in an editorial last week about our 2010 recipient, Robert Curry:

“Whatever image you have of truckers who wrestle their big rigs and tons of cargo onto and off the twin ports' docks, it doesn't fit Robert A. Curry, CEO of California Cartage Co., operator of a fleet of trucks and several million feet of warehouse space. Curry seems more like a gentle and generous uncle. Our guess is that's the way he comes across to most of his employees as well. But however he comes across, he runs his business well. The Long Beach Area Chamber of Commerce acknowledged that Thursday by naming him Entrepreneur of the Year. The award over the past 10 years has singled out some of the most innovative and successful entrepreneurs of the region. But if it zeroed in on public service, Curry would have deserved it just as much."

Bob Curry is a modest, kind and humble man. The Long Beach Chamber honored Bob as our City National Entrepreneur of the Year because as a leader in the trucking industry he served as an early supporter of cleaner trucks. And, he turned that support into action by investing in clean trucks…700 of them.”

Bob’s company, California Cartage Co., started in 1944 as a small pickup and delivery carrier in Los Angeles supporting the country’s aircraft industry during World War II. Today they are a leader in the industry with facilities here and in Port of Savannah, Georgia, at the intermodal hub at Centerpoint, Elwood, Illinois, in the Port of Oakland in Northern California, and several other locations. They have created jobs for hundreds of people, support our community and Bob is considered one of the foremost leaders in the trucking industry.

A successful company, like California Cartage, is made possible by the people who come to work each and every day. Bob reminded us of that last week by telling us so. He also reminded us that many of his teammates have been a part of his company for decades. But, Bob’s spirit and his will to succeed, change and improve is what makes his team strive for that success. Thank you and congratulations to Bob Curry for being an entrepreneur at work...

...and that’s Strictly Business.

Randy Gordon
President and CEO
Long Beach Area Chamber of Commerce

May 4, 2010

Long Beach Chamber Statement On The Passage Of The Worthington Ford Loan

The following statement was delivered this evening by Randy Gordon, President and CEO, Long Beach Area Chamber of Commerce at the Long Beach City Council meeting regarding Agenda Item 25.

The Council approved the Chamber-supported agenda item by a vote of 8 to 0 – Councilmember Patrick O’Donnell was absent.

Recommendation to authorize City Manager to execute all related documents to implement a business and job retention loan using Community Development Block Grant (CDBG) funds amortized over five years in the amount of $600,000, with interest at five percent per year to Worthington Ford, Inc., with $200,000 being dispersed upon execution of the loan agreement, and $400,000 being dispersed upon the U. S. Department of Housing and Urban Development (HUD) approval of the City's FY 2010 - FY 2011 Action Plan Amendment.

Mr. Mayor and members of the Long Beach City Council.

I am Randy Gordon, President and CEO of the Long Beach Area Chamber of Commerce.

I am here tonight in support of the agenda item to approve the proposed business and job retention loan for Worthington Ford.

Worthington Ford is an important job creator in Long Beach with nearly four decades of service to our community.

They are on their way to employ up to 150 employees in Long Beach and reach a sales goal of nearly $1 billon in the next decade.

We are all here tonight to support a company that maintains and creates high paying jobs and is dedicated to driving over $10 million in revenue directly to Long Beach’s general fund in the next decade.

The proposed loan is the right investment to retain this important company so they can expand and grow their operations at a time when more jobs and much needed revenue impacts every citizen in Long Beach.

And, most importantly, the proposal tonight provides a unique return on the City’s investment.

On behalf of the Long Beach Chamber, I want to thank this Council for their willingness to consider options to retain important jobs.

I also want to thank the Mayor and Pat West and the extraordinary City staff team that worked so hard to bring this proposal to you tonight.

They are committed to doing the right thing as it relates to improving our local economy.

I think we all recognize what the impact will be to our local economy if we were to lose Worthington Ford.

Not only would we lose decades of benefits from the Worthington Ford branding, but we would also lose millions of dollars in general fund revenue.

I urge you to support the proposed motion before you tonight and let’s move forward, together, on supporting this important revenue generating and job creating proposal.

Thank you.
 

Upcoming Event

Reserve Your Seat: Candidate For Governor Steve Poizner To Address Long Beach Chamber

The Long Beach Area Chamber of Commerce continues its award-winning California Visionaries Luncheon Series by hosting California Insurance Commissioner Steve Poizner who is a candidate for Governor of California.

 

Thursday, May 13, 2010
Hilton Hotel – Downtown Long Beach
701 W. Ocean Blvd.


Registration begins at 11:00am
Luncheon begins promptly at 11:30am

 

Click here to download your invitation.

 

For questions, call Sarah Nguyen (562) 432-7830 or email at snguyen@lbchamber.com

 

About Commissioner Poizner:

 

A highly successful entrepreneur, Steve Poizner founded two successful technology companies in Silicon Valley. His last company, SnapTrack, pioneered the technology that put life-saving GPS receivers into 700 million cell phones around the world. Steve also founded and served as chief executive officer of Strategic Mapping Inc., a company that assists police departments, utilities and transportation companies with strategic planning and logistics.


In 2006, Steve became one of only two Republicans elected statewide when he defeated Democratic
Lieutenant Governor Cruz Bustamante in the race for Insurance Commissioner. As Insurance
Commissioner, Steve oversees the California Department of Insurance (CDI), the largest consumer
protection agency in the state. Since assuming office, Steve has permanently cut the operating budget at
the Department of Insurance by 15% - making him the only candidate running for Governor who has
actually cut waste from state government. Along with cutting the budget at CDI, Steve has cut thousands
of dollars of fees, infusing consumers’ pockets with extra money and stimulating the economy.
Steve’s entrepreneurial success in Silicon Valley earned him the opportunity to serve in the White House
fellowship program. Steve started the program one week before the September 11, 2001 attacks. As the
Director of Critical Infrastructure Protection in the National Security Council, Steve was responsible for
issues such as emergency communications planning for the 2002 Winter Olympics in Salt Lake City and
protecting the nation’s banking system and power grids from cyber-attacks. In 2006, he was elected as a
lifetime member of the Council on Foreign Relations after being nominated by former U.S. Secretary of
State George Shultz.
 

Following his time on the National Security Council, Steve spent a year "in the trenches" as a volunteer
teacher at Mount Pleasant High School in East San Jose, where he taught 12th grade American
government. After seeing the crisis conditions facing public schools in California, Steve demonstrated his
passion for local control of schools by co-founding EdVoice and the California Charter Schools
Association - the state's leading charter school organization. Since his involvement in the charter school
movement began, the number of charter schools in California has doubled.
 

Steve moved to California in 1978 to attend Stanford University, where he earned a Master's Degree with
Honors in Business Administration. A Texas native, Steve was born in Corpus Christi and raised in
Houston. He did his undergraduate work at the University of Texas where, based on academics and
extracurricular leadership, he was named the Top Male Student in a student body of 40,000. Steve was
also recognized as one of the top 10 electrical engineering students in the nation. In addition to his
academic degrees, Steve also earned a black belt in Shotokan karate, a contact-style martial art.
 

Steve and his wife, Carol, live in Los Gatos with their daughter, Rebecca.

April 29, 2010

Long Beach Chamber Supports California Jobs Initiative

AB 32 Implementation Threatens Economic Viability of California and the Long Beach Region

Citing concerns over the enormous financial and employment hardships associated with AB 32 implementation, the Long Beach Chamber of Commerce is protecting jobs, businesses and the economy in the Long Beach region by supporting the California Jobs Initiative.

The California Jobs Initiative, which will go before voters in November 2010, would postpone implementation of AB 32 until the state’s unemployment rate declines to 5.5% for four consecutive quarters.

“Long Beach has been hit particularly hard by the recession, with goods movement in the Port area significantly reduced as higher costs and declining business activity take their toll,” said Randy Gordon, President and CEO of the Long Beach Chamber. “Couple that with a California regulatory system that makes ports outside the state a more affordable option for businesses and shippers alike, and it makes for a less than optimistic economic outlook,” continued Gordon.

The Long Beach Chamber has traditionally supported the creation of environmentally sound policies that reward responsible business practices, including the reduction of greenhouse gas (GHG) emissions. However, the Chamber opposed AB 32 four years ago and continues to oppose its implementation.

“Our business community includes energy producers and other carbon-intense industries that would be disproportionately punished by AB 32’s $143 billion cap-and-trade auction tax, almost $4 billion in higher gasoline and diesel costs, and up to 60% higher electricity rates,” said Lori Lofstrom, Chairman of the Long Beach Chamber Board of Directors. “Those costs will put Long Beach at an even greater competitive disadvantage with states that have less draconian climate change regulations. AB 32 has the strong potential to devastate businesses here, which in turn will lead to heavy job losses and a reduction in the tax base that this area just can’t afford,” continued Lofstrom.

The California Jobs Initiative is limited to AB 32 policies aimed at global warming, and will not alter the vast array of unrelated environmental regulations that already protect the state’s air and water quality, and are the strictest in the country. The Initiative will also protect jobs and save our economy billions by merely adjusting the timetable for AB 32 regulations until the state’s unemployment situation improves.

Log on to www.jobs2010ca.com

 

April 19, 2010

Take Action: Submit Your Letter In Support Of Education Funding Flexibility

Supporting our education community is one of the Long Beach Chamber's top three strategic priorities for 2010. The Chamber is working with State Senator Alan Lowenthal to secure the passage of SB 1396 which will establish a three-year pilot program for three school districts in California to receive maximum categorical program funding flexibility that is linked to improving student achievement.


We believe this is an important piece of legislation because we think that in order to improve student achievement, school districts must be given the flexibility to manage their resources on programs and services that have proven results in improving student achievement.

Click here to submit your letter of support!

 

Strictly Business | March 31, 2010
A Bridge To Somewhere Important


The Port of Long Beach plays a crucial role in our local, regional and national economy. Hundreds of millions of people depend on the Port to efficiently transport the nation’s incoming goods.

Fifteen percent of all of the goods coming into the United States are transported across the Gerald Desmond Bridge. Built nearly a half-century ago, the bridge is now overdue for much needed improvements both in safety and technology.

Replacing the Gerald Desmond Bridge is an urgent priority for the Long Beach Chamber. Although the bridge is safe for commuters today, it is rapidly deteriorating -- even crumbling. The Port has had to install netting below the bridge to catch falling pieces of concrete and stop them from hitting the ground and waterways below. However, the bridge is nearing the end of its planned lifespan and handles far more traffic than that for which it was designed over 40 years ago. The traffic load – between about 58,000 and 68,000 vehicles per day and 18 million vehicle trips per year – vastly exceeds its intended capacity. The bridge lacks emergency lanes and thus when accidents occur traffic can be delayed for hours or diverted through surrounding neighborhoods, moreover, emergency responders are challenged to reach the emergency to assist. All of these factors negatively impact our community and local economy and the time has come to take action.

So, the Chamber is proud to support the Port's efforts to secure the additional funding necessary to build a new bridge. In a time of economic uncertainty, the construction of a new bridge will produce 4,000 jobs over the five year construction period and yield $2.8 billion in economic activity. Such construction will produce a modern bridge with increased clearance allowing large cargo ships to pass safely under the bridge and through the Port. For those commuting across the bridge, six lanes instead of the current four will create a smooth flow of traffic and emergency access.

Click here to watch a video on replacing the bridge.

Click here for more information on the project.

The Gerald Desmond Bridge is in desperate need of structural improvements and Long Beach deserves an iconic bridge. We must seize this opportunity to build a new bridge capable of handling the rapid flow of trade and create an icon that will rival the design and admiration of structures outside of Southern California. The importance of such modernization is unlike any other, we must support the Port's actions to protect Long Beach’s vital link to national trade...

...and that’s Strictly Business.
 

Randy Gordon
President and CEO
Long Beach Area Chamber of Commerce

 

Strictly Business | March 22, 2010
Google Deserves Long Beach

Google recently announced that they are planning to launch an experiment that they hope will make Internet access better and faster for everyone.

Their plan, according to their web site, is to "test ultra-high speed broadband networks in one or more trial locations across the country. Our networks will deliver Internet speeds more than 100 times faster than what most Americans have access to today, over 1 gigabit per second, fiber-to-the-home connections. We'll offer service at a competitive price to at least 50,000 and potentially up to 500,000 people."

Recently, the Long Beach City Council unanimously approved a motion by City Councilmember Robert Garcia to direct City staff to apply on behalf of the City of Long Beach for a spot as one of the “pilot” locations. The City intends to submit its application by this Friday's deadline. The Chamber supports Councilmember Garcia and the City's effort to apply for this important and innovative opportunity.

In the meantime, your help is needed! The Chamber is teaming up with Councilmember Garcia to help promote a massive letter writing campaign in support of the City of Long Beach winning the bid to be a test-case for Google.

I urge you to take a few moments of your time to log on and submit your letter of support now!

 

Submit your letter no later than Wednesday, March 24 at 5:00pm by clicking here: www.RobertGarcia.com/google


The Long Beach business community is one of the most innovative communities in the world. Let's step up to the plate and secure an opportunity to increase access to a new technology and to show Google why Long Beach is the best place to start...

...and that’s Strictly Business.

Randy Gordon
President and CEO
Long Beach Area Chamber of Commerce

 

Strictly Business | March 10, 2010

Supporting Real Reforms

Californians, including Long Beach, are in desperate need of work. The solution to this challenge is very simple: our state legislators must support real reforms that stimulate our local economy. Recently the Governor outlined a few reforms that deserve the support of our state legislators. Here is an overview of what's on the table:

Through the Governor’s Jobs Initiative, $200 million will be provided for employers to pay for training new employees or retraining existing employees for a new job. The average reimbursement for each employee is approximately $1,400. In an effort to employ out-of-work Californians, employers will also receive $3,000 for each unemployed worker who completes ETP training and stays employed for a minimum of nine months. The Governor hopes to create 100,000 new jobs and will provide training for 140,000 individuals to qualify them for better paying jobs.

In an effort to create jobs and spur economic activity, the California Environmental Quality Act Litigation Protection Pilot Program of 2010 will allow the Business, Transportation and Housing Agency to select projects that meet specified requirements. Such projects will take place for each calendar year between 2010 and 2014 and each project will be exempt from judicial review in the final stages of an environmental impact process.

With a slumping housing market, it is of dire importance to extend the Home Buyer Tax Credit to encourage homeownership. Such action will give a maximum credit of up to 5% of the purchase price for a qualified principle residence or $10,000 of the purchase of a new residence for first-time buyers who purchase between May 1, 2010 and December 31, 2010. The credit is available for the tax period after December 31, 2010 and before August 1, 2011. Extending the tax credit will encourage homeownership and help rescue the failing housing market in California.

California’s fastest growing economy is in green technology. To give a boost to this green economy financial assistance will be allowed for the purchase, sale or lease arrangements of green equipment and will now qualify for exclusion from Sales and Use Tax Law. As a project under the California Alternative Energy and Advanced Transportation Financing Authority Act, items exempt from such law include machinery or equipment utilized for the design, technology transfer, manufacture, production, assembly, distribution, or service of an alternative source component.

These are not a “cure all” by any means, but they are small steps in the right directions and just some of the ideas the Chamber is supporting in 2010 to get Long Beach and California moving again. We urge our state legislators to work together to support the Governor's efforts in bringing real reform to our ailing economy...

...and that’s Strictly Business.
 


Randy Gordon
President and CEO
Long Beach Area Chamber of Commerce

 

Strictly Business | March 5, 2010
Dealing With Ballot Measures

The Long Beach Area Chamber of Commerce will carefully review, discuss and determine a position on the proposed

June 8, 2010 statewide ballot measures. The Chamber urges you to evaluate available information related to all the ballot measures over the next several months and most importantly, to exercise your right to vote on Election Day.

"The measures on the June statewide ballot propose to change laws related to taxes, elections, insurance and energy -- issues that affect everyone who lives or works in Long Beach," California's chief elections officer, Secretary of State Debra Bowen, tells me. "I am partnering with businesses, their employees and their customers in nonpartisan ways to ensure as many eligible people as possible participate in the June 8 statewide election. I thank the Long Beach Chamber for stepping up to promote civic engagement and helping Chamber members get the information they need before going to the polls."

In the meantime, I have prepared a brief outline on what to expect. For more details, please visit Secretary Bowen's web site by clicking here.

Proposition 13
Dealing with the property taxes, Proposition 13 would revisit and redefine provisions in a 30-year old tax bill for purposes of expanding the tax liability of new construction intended to minimize earthquake damage.

Proposition 14
Dealing with elections, Proposition 14 would put into place in California a model presently used in Washington State whereby, among other elements, the top two vote getters, regardless of party, would square off in the general election.

Proposition 15
Dealing with the financing of elections, Proposition 15 would change the funding mechanism for elections. If passed, elections would become funded by taxing lobbyists, lobbying firms and lobbyist employers. The legality of this funding model is currently being challenged in several state courts.

Proposition 16
Dealing with the local public electricity providers, Proposition 16 would require local governments to obtain the approval of two-thirds of the voters before making certain changes to the extent to and manner in which electricity is provided. For instance, the approval of two-thirds of the voters would be required for local governments to provide electricity to new customers or expand such service to new territories if any public funds or bonds are involved.

Proposition 17
Dealing with auto insurance prices, Proposition 17 would amend an existing law to allow auto insurance customers to receive a discount based on their record of having maintained insurance coverage over an extended period of time. Children residing with a parent may qualify for the discount based on their parent's eligibility.

The Chamber looks forward to assessing the impact of each of these measures on the Long Beach business community and communicating our positions in mid-April 2010. We will work with Secretary Bowen to get out the vote and will also continue to do what we do best: representing your interests with government...

...and that’s Strictly Business.
 


Randy Gordon
President and CEO
Long Beach Area Chamber of Commerce

California Chamber of Commerce's 2003, 2004, 2005 & 2006 Advocate Partner of the Year

2009 President's Circle Award Winner | 2009 Political Partner of the Year

Long Beach Area Chamber of Commerce

One World Trade Center, Suite 206 | Long Beach, CA 90831 | (562) 983-1241 | Contact