(Feb. 26, 2008) -- Internal City Hall and Port emails and documents obtained by LBReport.com shed light on stealthful actions by the Port of LB and the office of Mayor Bob Foster which culminated in six Councilmembers' votes against discussion of a proposal by Councilwoman Gerrie Schipske that could bring the City a greater share of Port profits for LB's shoreline/beachfront Tidelands areas.

LBReport.com requested the materials under the CA Public Records Act from the offices of Vice Mayor Bonnie Lowenthal and Councilmembers Suja Lowenthal, Gary DeLong, Patrick O'Donnell, Dee Andrews and Val Lerch...who didn't speak a word publicly before voting in unison on January 22 against Committee discussion of a ballot measure that would let LB voters increase the percentage of Port profits available for improvement and maintenance of LB's shoreline/beach/Tidelands areas.

The materials show that before the Jan. 22 agenda item was publicly released, a senior Port of LB official had already learned about it and was working to conference with unnamed others through the office of Mayor Bob Foster (who doesn't have a Council vote) and seek what he called "feedback" from "remaining" unnamed Councilmembers.

Within a day, Port staff had produced "Talking Points" (text below) to be communicated by Harbor Commissioners (who hold office subject to Mayor/Council approval) in arguing against Council discussion of the proposed increase in the City's shoreline share of Port profits...a policy decision that isn't within the Port's power but rests with City taxpayers/voters and their Council representatives who could put such a measure on the ballot.

The percentage of Port profits payable to the City is part of LB's voter-approved City Charter, whose 1980s era provisions limit the City's share of Port profits to 10% (restricted under state law to shoreline/beachfront Tidelands area uses). Councilwoman Schipske proposed to let voters raise the 10% to 15% for shoreline/beachfront uses, an action the City Attorney said would be lawful. Councilwoman Schipske ultimately dropped part of her agendized proposal that sought an additional 5% for general fund (public safety) use citywide that City Attorney Bob Shannon would go eyond city and state authority [absent a state constitutional amendment].

The materials indicate that Port and Mayoral staff knew about Councilwoman Schipske's Jan. 22 agendized item before the agenda was released publicly...and Port staff were already working to conference with the Mayor's office and communicate with Councilmembers about it.

At 1:58 p.m. on Feb. 17, Mayoral staffer Taylor Honrath emailed Alex Cherin, formerly Assistant City Auditor, now Executive Officer to the Board of Harbor Commissioners: "Hey Alex, I just found Schipske's proposal." Five minutes later, Mr. Cherin emailed LB Harbor Commissioner James C. Hankla and a Port staffer for forwarding to other Commissioners:

"Commissioners: Please see the attached item which is being placed on the City Council Agenda for this coming Tuesday night. As alluded to earlier, Councilwoman Schipske has asked that the City Attorney prepare an Ordinance for the June 2008 Ballot increasing the net transfer from the Port to the City from 10% to 20%. I would like each of you to review this and call me with comments. I will conference with the Mayor's office in the interim and get feedback from the remaining City Council members."

The documents released to us don't discuss the "earlier" communication referenced in Mr. Cherin's email...and don't identify the "remaining" Council members from whom the Port sought "feedback."

A few hours later on Thursday night (Feb. 17), Councilman Gary DeLong -- whose district stood to benefit from an increase in Tidelands funding but who voted on Feb. 22 against discussing the item -- emailed the Mayor's Chief of Staff (not Councilwoman Schipske) about it. Have you seen Schipske's agenda item?" Councilman DeLong asked Mayoral Chief of Staff Becki Ames at 8:46 p.m. Her emailed reply two minutes later was "Yes. You're going to have a fun mtg."

Councilman DeLong followed up: "Is next Tuesday the council meeting that Bob is missing?" Ms. Ames replied, "Indeed..."

By Friday, (Jan. 18), Port staff had produced "Talking Points" for use by Harbor Commissioners in urging Councilmembers not to support the proposal.

Samara Ashley, Dir. of Government Relations for the Port, emailed Mr. Cherin (cc'd to PoLB Exec. Dir. Dick Steinke): "Alex -- Attached, please find the talking points for the Board members."

January 22, 2008
City Council Agenda Item #19 (Schipske)

There are serious concerns about the validity of this recommended action. According to the State Lands Commission this item is in direct violation of the State Tidelands Trust, under which the Port of Long Beach operates. The State Lands Commission will have major concerns with a change in the Charter language.

If Councilwoman Schipske is currently concerned about the State pillaging cities, this item could entice the State to come in and take over ports like Long Beach and possibly develop a state run port authority (e.g. Virginia).

Currently, the Port transfers 10% of its net income to the City for the benefit of the Tidelands. In addition, the Port's contribution in FY 07 resulted in over $4 million for the City's Police Department, almost $10.5 million for the Fire Department, not to mention over $3 million for other miscellaneous department services and public services bureau charges. The City's portion of Possessory interest taxes assessed to Port tenants exceeds $2 million per year.

The Port has been instrumental in providing funding for a variety of projects throughout the City, such as the World Trade Center, the Aquarium, the Multi-Service Center and Long Beach Convention Center. The Port's dedication to environmental improvements on issues lkike the Clean Air Action Plan and the Colorado Lagoon, among many others, speaks to the Port's commitment to the City.

It is recommended that the Council not support this item and look at other feasible ways to improve the City's budget issues.

The information yielded by the documents is only part of the full picture. The emails provided to us don't list the parties involved in the Port's "conferencing" with the Mayor's office, or the names of Councilmembers contacted...or what was said.

None of the documents provided to us supported speculation that at the time Councilwoman Schipske made her proposal, Mayor Foster was quietly working on his own plan to have the Port provide additional sums to deal with City of LB budget issues.

On the night of the Council vote, a Mayoral staffer monitored developments and emailed short dispatches to Mayoral Chief of Staff Ames who was in DC (accompanying the Mayor at a conference). (Vice Mayor Bonnie Lowenthal presided at the Council meeting in the Mayor's absence).

Shortly before the vote, the Mayor's staffer emailed "So bob is not available to talk to [reporters] Kris [Hansen] or Paul [Eakins] from the PT tonight?" Ms. Ames replied at 7:53 p.m. (10:52 p.m. DC time), "Let him know you emailed us but given the time difference we may not be available until tomorrow. Sorry."

Harbor Commission President Mario Cordero, VP Dr. Mike Walter and Commissioner Nick Sramek were present alongside PoLB Executive Director Richard Steinke in the Council Chamber...but none testified...and didn't have to.

About a minute after Chief of Staff Ames indicated the Mayor would be unavailable to the PT, the Mayoral staffer in LB reported, "Motion to refer to committee failed. Only schipske, uranga and gabelich supported."