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Perspective: JetBlue Isn't A Victim Of "Delays" On Customs Facility / Int'l Flights But Public Was A Victim Of 2013 Council's "Code of Silence" That Kept Issue Out Of 2014 Election Cycle...And Lack Of Transparency Continues Now By Some Current Councilmembers And LB's Mayor


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(Dec. 11, 2016, 7:00 p.m.) -- JetBlue Airways Senior VP/Associate General Counsel Robert Land spoke during the Dec. 6 Long Beach City Council meeting at which six of nine Councilmembers voted to hold a Dec. 13 "study session" on a JetBlue-sought customs facility/international flights that couldn't be limited to JetBlue, authorized city staff to take steps that the Council could use as its basis for approving the facility, and scheduled a Jan. 24, 2017 vote on the matter. (LBREPORT.com coverage here.)

In his testimony, Mr. Land made a number of noteworthy statements. We offer context and comments below on one of them below, in part citing information that LBREPORT.com first reported in March 2015 at this link.

Mr. Land: "I want to remind the Council that this hasn't just been a two year delay thus far to get to where we are tonight. Prior to the two years it's taken just to get to the point of 'where do we go from here,' JetBlue worked for at least two years, and was urged by a prior Airport Director and a prior member of this Council to postpone our asking that led us to this two years, so we're in year four of this."
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[Scroll down for further below.]



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In our view, the internal city records obtained by LBREPORT.com don't show that JetBlue has been a victim of delay. To the contrary: they arguably show the opposite: that Long Beach city officials have been unduly deferential to the company's desire for the customs facility / international flights despite its arguable risks. In addition, not one of LB's then-incumbent Councilmembers in 2013 (who include LB's now-Mayor) disclosed to the public what city management told them was taking place on this issue in 2013. Their de facto code of silence effectively kept this significant issue out of the 2014 citywide election cycle.

The Dec. 6 public revelation of JetBlue's Sr. VP (quoted above) that a prior LB Councilmember urged the company to postpone seeking the customs facility doesn't show the company was a victim. In our view, it shows that Long Beach residents were victims. LB's then-incumbent Councilmembers were told by Airport management in the second half of 2013 that the issue of international flights was being seriously advanced and explored. The public was kept in the dark...although people's homes and neighborhoods could arguably be impacted by the outcome. To our knowledge, not one LB elected disclosed what they were told was taking place at the Airport on this issue entering the 2014 citywide election cycle.

We now know (from the Dec. 6 testimony of JetBlue's VP) that one prior Councilmember -- whose identity he didn't disclose (we've asked him) isn't yet known -- allegedly encouraged JetBlue to postpone advancing this matter. LBREPORT.com is very interested in learning who that now-prior Councimember was.

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On March 1, 2015, LBREPORT.com described the extent to which LB Airport management had been working with JetBlue representatives to suit the company's desire for a customs facility ("Below The Radar: Internal Airport Documents Show Extent Of Airport Actions, Taken Since Late 2012 Without Council Voted Approval, To Facilitate Int'l Flights" at this link).

Internal Airport records obtained by LBREPORT.com under the Public Records Act show that during 2013, LB Airport management hired a firm to produce a financial feasibility report, received conceptual design drawings of the customs facility (seven options) prepared by JetBlue, met with Homeland Security officials accompanied by JetBlue reps and even received a proposed "term sheet" written by JetBlue reciting the company's proposed respective obligations of the parties regarding a customs facility.

City officials have since tried to portray what took place as "preliminary" actions but in emailing the Jan. 2, 2014 "term sheet" to LB Airport's then-Director Mario Rodriguez on Jan. 3, Jet Blue's Richard Smyth showed how far things had progressed.

"I think this is sufficient for Rob [presumably Rob Land] to begin discussions with Council members. Please take a look before I send it over to Rob."

LB Airport's then-Director Rodriguez replied: "Although we have to make some refinements, such as LGB cannot issue additional debt, the term sheet looks good. [Named LGB staffer] will be setting up a working Telecom to discuss and refine the terms."

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Months earlier, Airport management had described for LB's then-Councilmembers what was taking place.

  • On August 1, 2013, Airport Director Rodriguez sent a "TFF" ("to-from-for") memo to the City Manager for the Mayor and all City Councilmembers, which stated in its first sentence: "JetBlue Airways (JetBlue) is requesting that the Long Beach Airport (LGB) study the feasibility of developing a U.S. federal Inspection Service (FIS) as a precursor to providing international service." [By this time, LB Airport management had already done one fiscal feasibility study and was in the process of having a consultant (Frasca) prepare a second feasibility report.]

  • On November 14, 2013, Airport Director Rodriguez sent a follow-up TFF memo that said Airport staff "has worked within the bounds of the Noise Ordinance and developed a feasibility study that analyzes whether or not it would enhance or reduce the value of the Airport to the City. The Airport's main focus is to retain the integrity of the Noise Ordinance, while developing a financial sustainable model that will not affect current or future financial forecasts..."

In addition, on Sept. 4, 2013, JetBlue Sr. VP Land sent a letter to then-Airport Director Rodriguez -- cc'ing Councilmember Gerrie Schipske -- that thanked the Airport Director and his staff "for the work we have begun with regards to securing a Customs facility for international airline service at Long Beach Municipal Airport" and said the company looks forward "to continuing to partner with you and the City as we move from our discussions to engaging the federal government, a necessary partner, in this effort..."

If the public had learned about the company's attempt to persuade elected officials to allow international flight at LB Airport, it almost certainly would have become an issue in the 2014 election cycle (when voters were choosing a new Council majority in districts 1, 3, 5, 7 and 9 plus a new Mayor.)

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In his Dec 6, 2016 Council testimony, JetBlue VP Land revealed that a "prior member" of the Council urged JetBlue to postpone asking for a customs facility. Shortly before noon on Saturday December 10, LBREPORT.com invited comments from Mr. Land and asked him to tell us who that Councimember was and asked about a few other matters (via his JetBlue email address.) We also simultaneously emailed JetBlue's NY media office; over 24 hours later, we haven't heard from either of them [and we'll update this story if/when we do.].

In our opinion, the record doesn't support the narrative that JetBlue has been a victim of delays. We believe it shows that Long Beach city officials were unduly deferential to corporate desires and catered to the company's wishes without hesitation. Airport management informed city management and all then-Councilmembers in 2013 of what was taking place by internal memos that the public didn't see. The Councilmembers' de facto code of silence prevented this issue from percolating into the 2014 election cycle that installed a new Council majority who will now decide the issue.

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And from our experience, the lack of transparency by some current Councilmembers continues.

Among the five Councilmembers elected in April and June 2014 (Gonzalez, Price, Mungo, Uranga, Richardson) who will now be voting on this is 5th dist. Councilwoman Stacy Mungo. On July 7, 2015, Ms. Mungo made the motion to pursue the feasibility study (carried 6-3, Austin, Uranga and Supernaw dissenting, coverage here.) On Dec. 6, 2016, Councilwoman Mungo made the motion to authorize city staff to take steps that effectively clear the way for a decisional Council vote and set a Jan. 24, 2017 date for that vote, actions that weren't publicly agendized for the Dec. 6 meeting (carried 6-3, Austin, Uranga, Supernaw dissenting), coverage here.)

LBREPORT.com has yet to receive materials from Councilwoman Mungo's office (emails, texts, communications and the like) related to the customs facility / international flights / JetBlue showing what the public and entities said to her and vice versa. We requested this under the CA Public Records Act on October 20.

On December 2, Assistant City Attorney Mike Mais told us that the city's records coordinator (who reviews and releases materials) had received a stack of materials from some Council offices from which it hadn't previously received documents. (Mr. Mais couldn't vouch for exactly what they are since he hadn't reviewed them individually.) The previously unresponsive offices (based on what we can see we didn't receive) were Mungo, Gonzalez, Pearce [and predecessor Lowenthal] and Andrews. On Dec. 9, Mr. Mais indicated in a brief email that something might be coming to us shortly.

We sought the same materials from LB Mayor Garcia, who advanced in the 2014 election cycle without the Airport issue coming up. On November 22, we learned that apart from a relatively few emails that his office had already provided to us involving office staffers that don't reflect communications to or from him directly, the Mayor contends he has "nothing"...meaning no emails, texts, communications or the like on this major citywide issue over the past 18 months. (LBREPORT.com coverage here.)

Developing.


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