The Council took the action although its proponents acknowledged there's no indication the company wants it or needs it, and it isn't clear exactly what the "team" (comprised of "all necessary departments, county and state agencies, business leaders, economic development officials, and Molina Healthcare executives") could or would offer the private firm in terms of public resources. Councilmembers Austin and Uranga argued against the Council action, saying it appeared to be unnecessary at this point and the proposal left unclear what public resources the City could or would offer the firm. Austin and Uranga made a substitute motion to simply adopt a Council resolution stating support for Molina Healthcare; it failed 2-7.

Mayor Robert Garcia said he "appreciates" the item but didn't explicitly support it or oppose it. Instead, Garcia sought to retain control of the issue, saying he'd spoken last week [apparently after the agenda item surfaced] with Molina's new interim CEO. At three points during Council discussion, Mayor Garcia said he's confident that "Molina Healthcare is 100% committed to Long Beach, and Long Beach is 100% committed to Molina Healthcare" [a phrase with no substantive businesslike commitment.] In response to a bluntly worded question from Councilman Austin, Mayor Garcia was forced to acknowledge that while he's "comfortable" with Molina's "commitment" to Long Beach, there's no guarantee that any private sector jobs will remain in Long Beach.

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In early May 2017, Molina Healthcare's corporate Board of Directors replaced J. Mario Molina as CEO, and brother John Molina as CFO, although the Molina brothers retained their seats on the corporate board. The company was founded by their father, C. David Molina.

Molina Healthcare is Long Beach's only Fortune 500 corporate presence, officed downtown in the 200 Oceangate (Ocean Blvd.) complex as well as in the former Press-Telegram/Meeker Baker buildings along the 600 block of Pine Ave. However in March, the company moved 400 of its Long Beach employees to a building in San Pedro.

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In their agendizing memo, the Councilmembers wrote in pertinent part:

...Recently, Molina Healthcare has been facing challenges, changes in leadership, and media attention. As of March 2017, Molina has moved four hundred employees from Long Beach to San Pedro. The city is currently unaware of Molina Healthcare's projected steps, but it is imperative to take proactive measures to extend assistance and engage in discussion with Molina Healthcare about its future. Job stability and local residents employed is a top priority for Long Beach.

The City of Long Beach has previously implemented "team" strategies successfully to retain other business leaders such as the Boeing C-17 program in Long Beach. This same approach is requested for Molina Healthcare. This business retention team should include representatives from City departments, county and state agencies, business leaders, economic development officials, and Molina Healthcare executives. The team should explore every option that could assist Molina Healthcare in remaining in the city and continue to contribute their wellness services as well as their local hiring measures. The business retention team shall present its finding and recommendations no later than 120 days at a regularly scheduled Council meeting."

FISCAL IMPACT

No fiscal impact.

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On July 6, LBREPORT.com invited comment(s) (and sought answers to a few questions) from the company's website-designated media spokesperson and received no response.

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