"FPPC Enforcement Division has an open, ongoing investigation/case involving both Glenn Ray and Karen Sherman. FPPC Legal Division received an Advice Letter request from LB City Attorney but, because of potential/actual enforcement case, opted to not give advice, which is their prerogative in this or other situations."

LBREPORT.com provides context and chronology of salient events below:

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December 6, 2016: Council votes 6-3 (Austin, Uranga, Supernaw dissenting) to direct city staff to schedule for the Jan. 24, 2017 Council meeting discussion and a possible decision on whether to authorize negotiations and agreements to enable a federal customs facility at Long Beach Airport.

Early December 2016: City staff agendizes an item for the City Council's Dec. 13 "consent calendar" (items scheduled for approval without separate Council discussion) a request that the Council approve a roughly $300,000 sublease for LB Airport area office space to be provided by Million Air North, Inc., a firm in which Airport Advisory Commission vice chair Ray is president.

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December 12, 2016 FPPC informs Ms. Smith and the City Attorney's office that it "has initiated an investigation into the allegations." Ms. Smith informs Councilmembers by email of this development.

Dec. 13, 2016: The Council votes to approve the sublease with Commissioner Ray's Million Air North Inc. but after Ms. Smith speaks at the Council Chamber podium, the Council reconsiders its action and decides to withhold approval for the sublease until the outcome FPPC's investigation.

December 15, 2016: During Airport Advisory Commission discussion of a draft of the Commission's annual report of its activities, Commissioner Jeff Rowe proposes that the Commission lift a portion of text included in the draft document (prepared by a Commission subcommittee that included Rowe) to recommend that the City Council approve a federal customs facility at LB Airport. The proposal fails to advance as some Commissioners note that such a recommendation wasn't among the Commission's actions during the period covered by its annual report (which ended Sept. 30) and Airport staff noting that such an action wouldn't comply with the Brown (open meetings) Act because a vote to recommend the proposed customs facility wasn't listed on the Commission agenda.

December 19, 2016: The City Attorney's office sends the FPPC what it says is a request for advice but also tacitly undercuts resident Smith's complaint without mentioning it. The City Attorney office letter, which doesn't :cc Ms. Smith, tells the FPPC in part: "The Commission does not make recommendations on contract matters, and specifically the Commission did not make a recommendation to the City Council or even consider the proposed sublease agreement...The item never appeared on an agenda for the Commission, consistent with the Long Beach Municipal Code and the City's practice..." The letter attaches roughly 70 pages Airport Advisory Commission minutes and the December 13, 2016 City Council agendized memo that accompanied the proposed sublease with Commissioner Ray's firm. The letter adds, "The City postponed consideration of the sublease for thirty days in order to seek advice from your office on whether the proposed transaction constitutes a violation of California Government Code section 1090, either for the City Council or for Mr. Ray. In order for us to respond in a timely fashion to the City Council, we therefore respectfully request that your office provide an expedited review to whatever extent that is possible..The City postponed consideration of the sublease for thirty days in order to seek advice from your office on whether the proposed transaction constitutes a violation of California Government Code section 1090, either for the City Council or for Mr. Ray. In order for us to respond in a timely fashion to the City Council, we therefore respectfully request that your office provide an expedited review to whatever extent that is possible."

Dec. 28, 2016: FPPC General Counsel Hyla Wagner replies to the City Attorney office letter in pertinent part: "After a careful review of the facts you provided, we decline to provide written advice to you at this time. The Commission will decline to give advice where the same or very similar issues are under consideration of the Enforcement Division. Please note that our decision is not a determination of the questions posed in your request."

Jan. 24, 2017: City staff, complying with a Dec. 6 Council directive (6-3, Austin, Uranga, Supernaw dissenting) agendizes Council consideration of the customs facility. City staff recommends that the Council authorize management to negotiate and/or enter into various agreements to implement a customs facility. The City Council votes 8-1 (Andrews dissenting) to "receive and file" city staff's recommendation and not pursue the customs facility.

Feb. 16, 2017: Airport Advisory Commissioner Rowe makes a non-agendized motion (allowable under the Brown Act to discuss and schedule future items), seconded by Scott, to place an item on the coming month's (March) agenda for a discussion to recommend that the City Council reconsider the federal customs facility. Commissioner Rowe offers no reason(s) for his motion, nor does Commissioner Scott in seconding it. No Commissioners asked for their reasons; the motion carries on the following vote: Yes: Rowe, Scott, Anderson, Mineghino; No: Cruz; Abstain: Chaney; Self-Recusal: Sherman and Ray; Absent: Gosling

March 10, 2017 Airport Advisory Commissioner Ray informs Mayor Garcia's office of his resignation. He has served roughly 14 years in tolal for periods on the Mayor-chosen/Council approved Economic Development Commission as well as the Airport Advisory Commission

March 13, 2017: Assistant City Attorney Mike Mais sends Airport staff a memo stating that the City Attorney's office has determined that "there is no legal prohibition that would prevent the AAC considering the FIS [customs facility reconsideration] item."

[Mais memo text] As with most of the City's non Charter created boards/commissions, the AAC’s duties are couched in fairly broad terms. Under "Duties", LBMC Section 2.27.030...vests the ACC with two types of responsibilities. The first is to generally consult with the Council in formulating policies related to the development and operation of the Airport; the second is to study and analyze "problems" specifically referred to it by the Council. A fair reading of this section allows the AAC to take up items related "development and operation" of the Airport for the purpose of "advis[ing]: the Council in formulating City policies related to the Airport even though Council has not specifically asked the AAC for a recommendation...

March 16, 2017: The item agendized for the Airport Advisory Commission is: "Discuss a recommendation to the City Council that the Council reconsider its January 24, 2017 decision not to move forward with the approval or development of a Federal Inspection Station (customs facility) at the Long Beach Airport."

Further: A Commission majority could approve the motion, or modify it or decline to recommend that the Council reconsider its previous action. If the Commission were to recommend that the Council reconsider its Jan. 24 action, the Mayor and/or Council could ignore it, or the Mayor or a single Councilmember (with or without others) could agendize it for Council discussion.

Developing.

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