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Long Beach Harbor Comm'n Votes 3-2 To Ban Its Sponsorships/Donations To Groups That Opposed Or Endorsed Candidates Or Measures In LB Muni Elections Within Past Two Years, Except For Sponsorships/Fundraisers For 501(c)(3) Charitable Purposes

Long Beach Chamber Pres/CEO Randy Gordon testifies in opposition; see his statement in full, hear Boardmembers' responses



(June 17, 2013, 4:37 p.m.) -- As carried LIVE today (June 17) on LBREPORT.com's front page, on a sharply divided vote the Long Beach Board of Harbor Commissioners changed Port of Long Beach policy to no longer sponsor or donate to organizations that have opposed or endorsed candidates or measures in any Long Beach municipal election within the past two years, except for sponsorships or fundraisers for 501(c)(3) charitable purposes."

The action came in response to an item initially agendized last month by Commissioner Rich Dines, which had been continued for thirty days as unfinished business (as agendized: "Consideration on a policy outlining the use of Harbor Department funds for sponsorships and financial contributions to non-profit organizations that have political action committees.")

At today's (June 17) Harbor Commission meeting, Commissioner Dines amended his proposed item on the floor with the following text:

To amend the current sponsorship policy to prohibit sponsorships and donations to organizatons that have opposed or endorsed candidates or measures in any Long Beach municipal election within the last two years, except for sponsorships or fundraisers for 501(c)(3) charitable purposes.

Commissioner Dines' motion was seconded by Commissioner Doug Drummond.

In public speaker podium testimony, Randy Gordon, Pres/CEO of LB Area Chamber of Commerce [who is separately a participant in the Long Beach JOBS PAC, a separate legal and financial entity] delivered a prepared statement urging a "no" vote on Commissioner Dines' motion. LBREPORT.com provides Mr. Gordon's statement in full below. [Ed. note: The text below was emailed to us at our request after its delivery; we presume it is text as prepared for delivery, meaning a word or two may differ, but Mr. Gordon appeared to follow the text fairly closely.]

Mr. Gordon: The Chamber is and has been a strong advocate of the port of Long Beach, its policies, programs and people.

The Chamber recognizes the vast economic impacts that result from the port of long beach and has always supported the port's importance, not just to long beach, but to the region, state and nation overall.

The Chamber is proud of its relationship with the port and of the many ways the port and the Chamber have historically cooperated on matters of shared importance.

Using one example of cooperation, the "State of the Port" luncheon has grown to become one of the most significant community events of the year and provides an excellent forum for the port and its numerous partners in the international trade, transportation, logistics arena to hear directly from port officials concerning matters of current and future importance to the port and its customers. This last January we had over 600 attendees; this has historically been a great opportunity for the Port’s Executive Director to speak and give an update on Port activities.

Numerous Chamber affiliated programs work directly with the port including the international business association and others.

The Chamber is a proud partner of world trade week and numerous other programs that support and promotes the port. This event also includes a poster and speech contest for local high school and college students and provides thousands of dollars to students annual.

The Chamber has rarely differed on matters of importance with the port.

  • 1. The Chamber has never challenged the port's budget priorities nor has it challenged port policy.

  • 2. The Chamber took a "neutral" position on Measure D, even though many Chamber members and other industry organizations urged the Chamber to oppose this measure.

  • 3. The Chamber has not challenged the port's implementation of project labor agreements even though, philosophically, the Chamber generally has concerns with such approaches.

  • 4. The Chamber did not challenge the port's decision to move into temporary offices at the airport even though many Chamber members and others in the industry voiced concerns with locating the headquarters out of the downtown.

Even with the Chamber's support of the BSNF SCIG project, if you recall the Chamber’s position on the project we conclude with the recommendation that the two cities, Long Beach and Los Angeles, sit down together and work out mutually satisfactory mitigation measures for the project. The Chamber simply feels that the projects benefits outweigh the detriments and that looking for the "win-win" between the two cities (and ports) should be a priority.

It's also important to note that the Los Angeles Chamber of Commerce (an organization which you supported financially two months ago with a $20,000 sponsorship) their Chamber PAC spent over $500,00 on city council races in the last two years. Also, the Los Angeles Chamber endorsed the SCIG project.

So, I strongly believe that the port’s involvement in the Chamber as a Chamber member is beneficial and that this relationship should continue in place for the foreseeable future.

In summary, I'd like to encourage you to vote "No" today on this policy so that the Chamber can continue to be the best ambassador this port has ever had.

Before I close, it is important to clarify how the Chamber of Commerce differs from the Long Beach JOBS PAC (which is a separate non-profit entity that the port in no way supports financially or in any other way).

  • The Long Beach Area Chamber of Commerce (the Chamber) is a totally separate legal entity from the Long Beach JOBS PAC.

  • No funding between the two entities can, under law, be intermingled nor has this been the practice of either entity.

  • The Chamber is a 501 (c)(6) non-profit entity.

  • The Long Beach JOBS PAC is a category 527 non-profit entity.

  • The Chamber and the Long Beach JOBS PAC have completely separate by-laws and boards of directors.

  • The actions of the Long Beach JOBS PAC board of directors are not encouraged nor approved by the Chamber’s board of directors.

  • The Chamber's attorney is Bob Stemler of Keesal, Young and Logan of Long Beach.

  • The Long Beach JOBS PAC’s attorney is Charles Bell of Bell, McAndrews and Hiltachk of Sacramento.

  • The Chamber's Treasurer is Pei Pei Wang of Windes & McClaughry of Long Beach.

  • The Long Beach JOBS PAC’s Treasurer is Dave Bauer also of Sacramento.

  • For the last 15 years, Guzman and Gray Accountancy has conducted the unified audit of the Chamber and the separate Long Beach JOBS PAC and confirmed that there is no intermingling of funds between one entity and the other. The most recent year's audit was completed within the last 60 days and confirms this fact. The audit is available for inspection.

  • The PAC's Treasurer files all appropriate and legally required documents to the Secretary of State in conformance with state law. Similar filings are made to the Long Beach City Clerk’s office.

  • These reports are available for public inspection through the Secretary of State’s website which is www.sos.ca.gov: campaign finance.

  • It is also important to note that the Long Beach JOBS PAC has never received any notices of violations nor has it been fined for any violations.
  • To hear the Board response to Commissioner Dines' amended motion, Board discussion, public testimony by Mr. Gordon, responding Board discussion, colloquy and voted actions, click here.

    On the amended motion (Comm'r Dines floor motion), seconded by Comm'r Drummond, carries 3-2 (voice vote) (Yes: Dines, Drummond, Sramek. No: Wise, Fields)

    Prior to the final vote, Commission President Susan Wise made a motion to delay the new policy for a year and a half; her motion failed on a reverse vote 2-3 (Yes; Wise, Fields; No: Dines, Drummond, Sramek).


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