Recent Survey Shows Small Business Optimistic About Economy -- But Not Long Beach

The Walter Pyramid is a collegiate athletic facility located at Long Beach State University in Long Beach, California. It officially opened on November 30, 1994, and cost approximately $22 million to construct. It rises 18 stories high and measures 345 feet along each side of the base. (Photo credit: Wikipedia)There's good news and some bad about small business in Long Beach.

The good news is that in a survey of small businesses conducted by CSULB College of Business Administration, local small businesses are optimistic about the economy. In fact, 51% surveyed indicated they thought the local economy would get better.

But when asked if they would "start a news business in Long Beach today" only 36% responded they would. 44% responded they would start new business somewhere else; 21% responded they would not open a new business at all.

When asked what can be done to help their businesses, 63% responded that the local economy needs to improve; 61% responded that local business taxes needed to be reduced; 55% responded that regulations and bureaucracy needed to be streamlined; 46% needed more access to credit; and 34% needed incentives to hire more people.

This is a good report because it gives the City of Long Beach more information on what can be done to grow business and jobs in Long Beach. Again, that's why I have and am again proposing business tax relief and will be moving forward to hold "A Day without a Regulation" town hall to hear what specific regulations need to be changed.

Below is the report from CSULB on this survey.

LBSmallBusinessSurvey

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Schipske Proposes Business License Tax Relief for Independent Contractors Such as Real Estate Agents

1941 REALTOR ad #1 (Photo credit: NARinfocentral)

Schipske Proposes ‘Business License Tax Relief for Independent Contractors’ such as Real Estate Agents – Says City Has an Interest in Promoting Business

Long Beach, CA – June 1, 2012 – Councilwoman Gerrie Schipske is continuing her advocacy on behalf of Long Beach small businesses by introducing a council item that would provide business license tax relief for independent contractors during the coming Fiscal Year.

In her agenda item for the June 12 council meeting, Schipske points out that “the current economic market  remains depressed , particularly in real estate – which is partially due to the mortgage crisis and the number of homes now ‘underwater’ – making it extremely difficult for the independent contractor to survive.” 

Schipske also notes that the City of Long Beach requires independent contractors, such as real estate agents, to obtain a business license. “Real estate brokers under which these agents work must also pay for a separate business license. Both real estate agents and brokers also generate the ‘real estate property transfer tax’ which results in additional revenue to the City. There are a number of other types of independent contractors that are also struggling to stay in business as they deal with this difficult economy.”

Schipske adds that in 1991, the City Council enacted a 16% surcharge on business licenses for capital projects. “This surcharge apparently has been folded into the amount of the business licenses (although it still appears on licenses as a separate charge), and increases the amount of the business license tax to its current levels.”

Schipske reminds the Council that “the City of Long Beach has a legitimate interest in promoting business in the city. Frequently, the city provides rebates of sales taxes or other financial incentives to keep businesses located here. A waiver of either the business license tax and/or a backing out of the 16% surcharge on independent contractors for at least the next fiscal year would provide some relief to these businesses and signal the city’s support.”

Her agenda item, if passed, would request the City Manager to report to the City Council within 90 days on the feasibility of waiving the business license tax and/or the 16% surcharge being removed from business licenses for independent contractors for at least FY 2013.

Since taking office, Councilwoman Gerrie Schipske has pursued a number of efforts to assist small businesses, including a small business advisory committee; “primetime business” – which encourages City Council to showcase a local business once a month at council meetings; and a package of “business growth incentives” which she placed on the Council agenda last August. She is planning on urging her colleagues to hold a town hall: “A Day Without a Regulation” – to listen to the concerns from businesses on what can be done in the city to stimulate the local economy.

“Small business is the economic engine of our community and local government needs to do what it can to support and encourage it and to get out of the way when it needs to,” Schipske concludes.

LB Gets Bad News From State Department of Finance

The State Department of Finance today released two letters sent to Long Beach about the amounts claimed for administrative expenses to wind down and dispose of redevelopment assets and apparently is questioning what the City has determined as remaining obligations of redevelopment.

Here is the first of two letters posted today on the State Department of Finance website:
Long Beach ROPS May 21

Here is the second letter telling the City the state is disallowing almost $6 million for administrative expenses:
Long Beach May25 ROPS Approval Letter

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State Senate President pro Tempore Darrell Steinberg Announces Reappointment of Schipske to California Medical Board

FOR IMMEDIATE RELEASE:                                                                      CONTACT: Mark Hedlund

May 23, 2012                                                                                                                   (916) 651-4006

                      Steinberg Announces Rules Appointments

(Sacramento) – State Senate President pro Tempore Darrell Steinberg is announcing the following appointments made by the Senate Rules Committee:

Clark Parker, PhD, a Democrat from Beverly Hills, has been appointed as a public member to the South Coast Air Quality Management District Board. Parker is president of View Park Estates Development, Inc.  and a member of the American Builders Association. His term on the board ends January 15, 2016.

The purpose of the board is to maintain ambient air quality standards regarding air pollution and to implement and enforce a comprehensive basinwide air quality management plan.

Carl Cranor, PhD, a Democrat from Riverside, has been appointed as a member with specified expertise to the California Environmental Contaminant Biomonitoring Program Scientific Guidance Panel. Cranor is professor of philosophy and a faculty member of the Environmental Toxicology Graduate Program at the University of California, Riverside. His term on the panel ends January 1, 2014.

Julia B. Quint, PhD, a Democrat from Berkeley, has been reappointed as a member with specified expertise on the California Environmental Contaminant Biomonitoring Program Scientific Guidance Panel. Quint is retired from the state Department of Health Services as chief and research scientist supervisor II of the Occupational Health Branch. Her term on the panel ends January 1, 2015.

The purpose of the panel is to provide scientific peer review and make recommendations regarding the design and implementation of the California Environmental Contaminant Biomonitoring Program to the Department of Public Health Services and the California Environmental Protection Agency.

Evelyn (Gerrie) Schipske, a Democrat from Long Beach, has been reappointed as a public member to the Medical Board of California. Schipske is a City Councilwoman for Long Beach, a member of the State Bar of California and the U.S. Supreme Court Bar, and a registered nurse practitioner. Her term on the board ends June 1, 2015.

The purpose of the board is to enforce disciplinary and criminal provisions of the Medical Practice Act; administer and hear disciplinary actions; carry out disciplinary actions made by a panel or an administrative law judge; suspend, revoke, or limit certificates after conclusion of disciplinary actions; review the quality of medical practice carried out by physician and surgeon certificate holders; approve undergraduate and graduate medical education programs; issue licenses and certificates; and administer the continuing medical education program.

Lois E. Starr, a Democrat from Hermosa Beach, has been appointed as a county representative to the Tax Credit Allocation Committee. Starr is housing development director for the Community Development Commission of Los Angeles County. This is a pleasure term.

The purpose of the authority is to administer the entitlement allocations process for qualified mortgage bonds under the federal Mortgage Subsidy Bond Tax Act of 1980, the mortgage credit certificates under the Tax Reform Act of 1984 and the federal low-income housing tax credits program under the Tax Reform Act of 1986.

                       

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Rounding Up Spare Change to Help the Libraries

City Council Meeting To Commemorate Completion of Library Round-Up Drive

LB Community Comes Together To Help Fifth District Public Libraries

(LONG BEACH, CA; May 22, 2012) – Today at 5 pm, at the City of Long Beach Council Chambers, Fifth District Councilwoman Gerrie Schipske will present to City Council the results from this year’s “Library Round Up” Drive. The agenda will specifically highlight the participation of local businesses within the 5^th District that contributed to the fundraising event.

“We are happy to announce that this year's Library Round Up has netted a total of $1,056.77, “said Councilwoman Schipske. “Local businesses have generously participated in placing Library Round Up “spare change” boxes at the front of their establishments, so that their patrons can donate money for the replenishment of much needed books and materials for both the El Dorado and Ruth Bach Libraries.”

Joining Councilwoman Schipske at the City Council meeting will be Jo Rae Zuckerman, President of the Friends of the Long Beach Public Libraries, who will receive the money on behalf of both the Ruth Bach and El Dorado Libraries.

“The Friends of the Long Beach Public Libraries deeply appreciates Councilwoman Schipske's continued support for Libraries in Long Beach”, says Zuckerman. “Her 3^rd annual Library Round-Up offers opportunities for district residents to make monetary donations at local businesses, and provides Bach & El Dorado Neighborhood libraries with some out-of-budget funds. Both of the head librarians, Miss Jennie Vaughn and Nancy Paradise, look forward to the benefits of this discretionary money each year.”

Friends of the Long Beach Public Libraries is a non-profit organization designed to replenish vital reading materials, and support for summer reading programs for both children and adults. Established in 1962, the organization is responsible for giving the collected monetary donations to the librarians at both the El Dorado and Ruth Bach libraries. Prior funds collected have enabled the branches to replenish a western paperback collection.

Throughout the last two months, Fifth Council District businesses have joined efforts to invite their customers to donate spare change in “Library Round-Up Boxes”.

This year’s campaign has seen a commitment of 12 businesses including Bodell’s Shoes, Cirivello’s Sports Bar, Curves on East Wardlow Road, Farmer’s Insurance, Fast Frame, Go Dogs Go, Kidz Head 2 Toe Resale Boutique, Once Read Books, El Dorado Restaurant, Poochie’s Bath House, Postal Annex and Apostrophe Books. As well, Library Round-Up boxes were also located at three library branches in Long Beach - El Dorado, Ruth Bach and the Dana Neighborhood Library.

Fifth District Councilwoman Gerrie Schipske, an advocate and tremendous supporter of public libraries, spearheaded the campaign back in 2007 to supplement the dwindling budget for books and materials for the El Dorado and Ruth Bach branches. As well, she continues to vote against budget cuts to the Public Library School system, and continues to come up with creative ways to involve the community to help in the preservation of the public library system.

Schipske Asks for Report on New Revenue for Fire Department -- Need to Restore Cuts

2 (Photo credit: stevelyon)

Schipske to Ask For Report on Newest Revenue Source for Fire Department : AB 678 --

New law provides millions for public agencies 

that operate ground emergency medical services

Long Beach, CA – May 21, 2012 – Concerned that budget cuts to the Long Beach Fire Department have resulted in slower response times, Councilwoman Gerrie Schipske is asking for a report from the city manager on whether or not the City has applied for new funding that could be used to restore cuts made to the department.

“AB 678 was passed last year and provides cities that operate ground emergency medical services a process to access new federal funds and subsequently receive supplemental Medi-Cal payments,” says Schipske. “Long Beach Fire Department transports many Medi-Cal recipients and should be able to receive several million.”

Schipske notes that AB 678 was signed into law in October 2011 and that cities were advised by the League of California Cities “to act quickly in order to receive the supplemental reimbursement.” The reimbursement mechanism provided through the State Department of Health Care Services was established last October, with the first round of reimbursements to be made as early as January 2012.

“Fire response times have been reduced because equipment and firefighters were removed from several stations due to budget cuts,” adds Schipske. “I am placing an item on the council agenda to discuss this new source of revenue and to request that it be used to restore some of the cuts made, especially for paramedic services.”

AB 678 was authored by Assemblyman Richard Pan, a physician from Northern California, and sponsored by the California Professional Firefighters (CPF), who report that ambulance transports have increased 13 percent from 1997 to 2006, and ambulance transports of Medi-Cal beneficiaries have increased 19 percent from 2006 to 2009.  CPF also points out that Medicare rates were reduced 10 percent in 2010, representing a reduction of $35 million statewide and straining fire department budgets even more.  

Schipske also points out that a legislative report found that current Medi-Cal rates do not cover the operating cost of a typical ambulance transport.  These unreimbursed costs are subsequently absorbed into a fire department's general fund and paid for by the taxpayers. “The sooner the City of Long Beach applies for these funds, the sooner we can begin restoring cuts to our fire services.”

#30

Open House at 5th District Fire Stations -- A Hit

Thank you to all who came out on Saturday to kick off National EMS Week and to visit the three fire stations in the 5th Council District. It was fun and very interesting. Kids got the biggest kick out of the tour as they got to sit inside trucks and paramedic units. A big thanks to the Long Beach Firefighters Association which provided hot dogs and chips.

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Please Participate in Survey About Long Beach Enacting a NO KNOCK/NO SOLICITATION Registry

Please click here to participate in a short survey on your opinion on whether or not the City should enact a NO KNOCK/NO SOLICITATION Registry as other cities have done, that give residents the power to tell those who do door to door solicitation or who leave materials on a property that they may no longer do so.

You might want to check out the other cities who are doing this very successfully: City of Newport Beach, City of Claremont, City of Hillsborough...just to name a few. These three cities refer to the No Knock/No Solicitation Registry as "Crime Prevention" efforts.

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One More Thing They Forgot to Tell the City Council --State Controller Tells Cities To Put RDA Assets Back

State Controller John Chiang

Don't let anyone tell you that being on the City Council if a part time job. It isn't. Especially when I have to research what other cities are doing on the same issues Long Beach needs to deal with so that I can find out what the Long Beach City Council isn't being told.

Here we go again. Remember when the City Council wasn't told about the deadline for opting out as the "Successor Agency" after redevelopment was abolished by state law?

Well, it gets better. The City Council in anticipation of the end of redevelopment transferred redevelopment properties and assets to the city. Most cities in California did the same. Then when the Supreme Court clarified that yes, redevelopment was abolished and a schedule was established (that included that pesky drop dead date when the City could opt out of the obligations of being a successor agency). The City Council became the successor agency.

A successor agency was charged with wrapping up and disposing of formerly owned redevelopment properties and assets and to make sure that legally enforceable obligations were met. These legally enforceable obligations are those that redevelopment had before redevelopment was abolished.

On April 17th, the City Council was asked to approve the sale of property formerly owned by the redevelopment agency that had been transferred to the City. It was approved.

Then this week while researching what was going on in San Diego, I came across an article and a link to a letter that had been issued to all cities and counties by State Controller John Chiang ordering them to reverse all RDA asset transfers they had done before redevelopment was abolished and to transfer these assets to the successor agency. The letter was issued by the State Controller on April 20, 2012.

So here's what I (and you should) want to know:

• Did the City know that this letter was going to be sent (because rumor is that cities knew it was coming)
• And if so, why wasn't the City Council advised so before it took formerly owned redevelopment property and sold it?
• (Here's the best question of all) Why hasn't the City Council yet been given a copy of the State Controller's letter ?

Here's the State Controller's letter. Had I seen it before I was asked to approve the sale of formerly owned redevelopment property -- my vote would have been a "NO".
State Controller's Letter to Cities Reverse Transfer

Learn How to Thank a Veteran or Service Member in Long Beach

Armed Services Day and Memorial Day are just around the corner. So I have prepared a brochure that you can download which details how you can honor and thank a veteran and service member in Long Beach. Just click here for full story and brochure:

Thank Goodness Long Beach Has a Public Health Department

Long Beach Foreclosures Soar

Foreclosure, Mortgage Crisis. Deserted House. (Photo credit: Wikipedia)

The following is the most current number of homes listed in the City's foreclosure registry (which I cosponsored as a way to require lenders to be responsible for keeping these properties up to code after they foreclose upon them). As I write, Attorney General Kamala Harris is speaking before the State Joint Conference Committee which is considering her proposed Homeowner Bill of Rights.    Foreclosure Registry Map 5-9-12.pdf

Guess who doesn't want Long Beach supporting a "Homeowners Bill of Rights"?

Foreclosure Sign, Mortgage Crisis (Photo credit: Wikipedia)

On Tuesday, the City Council will be considering an agenda item I put forward with two co-sponsors, that calls upon the City Council to pass a resolution in support of California Attorney General Kamala Harris' "Homeowner Bill of Rights." (Click here to read the council agenda item.)

I have already received contact from a representative of the banking industry who is not too happy with this. Why, was I aware that the California Bankers Association and the Cal Chamber of Commerce opposed this package of legislation to protect homeowners?

Really. Is this because this package of legislation goes beyond the temporary homeowner protections outlined in the National Mortgage Settlement -- which applied only to the top 5 banks? This package of bills would be applied to all lenders who would have to stop practices such as foreclosing on homeowners as they try to negotiate a loan modification and mandate that banks designate a single person to work with troubled borrowers. The California Attorney General's bill package would ban some of the worst practices that contributed to the housing crisis and write the terms of the national agreement into state law and apply them to every lender.

The financial-industry and business trade groups have opposed the bills, arguing that while the national mortgage settlement’s terms are temporary and apply to only five banks, the bills’ changes would be permanent and universal. In fact, the proposed California Bill of Rights provides longer term protection for homeowners where the national mortgage settlement expires.
 
So come to City Council on Tuesday, May 8 at 5pm and let the City Council which side they should be on for this issue.

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Sending a Positive, Optimistic Message

I am taking our economic situation very seriously. But we need to step back and think what type of message is continually coming out of City Hall to the community -- residents, businesses and potential businesses.

The message is negative and pessimistic. A  potential deficit has been announced almost every year that I have been in office. Of course, by the time we pass the budget, it is balanced as a deficit is not allowed by state or city law. That message rarely gets out.

Residents have been told time and again that unless all city employee unions step up and agree to pension reform, serious cuts in core services -- the services delivered by these employees -- will happen.  Public safety unions have agreed to pension reform -- yet their services have been cut. The non-public safety employee union is slated to also agree to pension reform -- yet the services they provide are also being proposed to be cut. These employees were publicly chastised for not wanting to help with the deficit -- they have helped and are scheduled to help -- yet cuts continue.

The City Manager and Mayor have proposed and made serious cuts to core services -- police, fire, parks and recreation and library. Infrastructure repair is behind.

Streets particularly need fixing -- but oil prices are increasing dramatically and the cost of asphalt increases significantly (as asphalt is made from oil). Yet, the City (which sits one of the largest oil and gas fields) assesses an oil (but not gas) production tax (which would help pay for asphalt) one half the amount that Signal Hill does. (The oil production tax does not impact the cost of oil at the pump whatsoever because the cost of oil at the pump is sent at the international market.) Today, oil is selling at $104 per barrel with an annual forecast that oil will reach $121 a barrel. There are 42 gallons in each barrel. The City of Long Beach's oil tax  (which is a .41 cents per barrel tax and not based upon the market value)  essentially charges Occidental Petroleum 41 cents, leaving the oil company $103.59 a barrel. Last Saturday, the LA Times reported that Oxy Petroleum generated a net profit of $1.56 billion in the first three months of 2012. See article by clicking here.

The City Auditor has identified 5 instances of City departments not appropriately handling and/or collecting revenue to which the City is entitled and needs. These instances include: towing, animal care services, parking tickets (two reports) and parks, recreation and marine department fees. What does this say to the community? That perhaps our "deficits" are being caused by our inefficiencies?  No business would operate like this...for long.

Sadly, there are numerous other departments that need to be audited concerning their revenue collection practices. (I will write more on this because I think we need to heed the advice of the Government Finance Officers Association and to either contract out our collections activities or consolidate all these activities into one department.)

Our message needs to be changed. Now. We need to get our own house in order and make certain that the City is efficient and effective and that we are lean. The first thing Chicago Mayor Rahm Emanuel did upon taking office was to order a 10% reduction in senior management: reduce compensation across the board or reduce the number of positions -- whichever results in a 10% reduction in the cost of senior management. This makes sense. Instead of laying off lower paid employees who actually deliver the services to the taxpayers -- cuts needs to be made where they will not impact these services.

Every City department needs to justify its existence for continued funding. Can we consolidated departments?

And my personal pet peeve I have pursued for 6 years: when are we going to get an automated time and attendance system so that we know who is at work, how long do they work each day, who is on sick leave or vacation or workers compensation? Is every hourly employee getting their breaks and lunch -- a fact we need to prove if they ever file an FLSA claim that they didn't receive these.

We employ 5,000 and time sheets are hand written every two weeks and put into the computer by 12 employees.

Okay. So we have a lot of work to do. And I would appreciate your input.

Thank you for being engaged in this important civic effort.

Gazette Covers Solar Grand Prix

Thanks to the Grunion Gazette for this great video covering the 3rd Annual Solar Grand Prix in El Dorado Park. The students were amazing as were their cars. The volunteers worked so hard on making the day flawless. The food trucks were a hit as were the exhibits on careers and trades in solar energy provided by IBEW and the Carpenters -- who also for the 3rd year constructed the race tracks. The Lifeguards brought ice water to fill up recyclable water bottles brought by the Carpenters.

United Brotherhood of Carpenters and Joiners of America (Photo credit: Wikipedia)

International Brotherhood of Electrical Workers (Photo credit: Wikipedia)