(Dec. 17, 2018) -- At the final City Council meeting of 2018, city management plans to ask Councilmembers to authorize spending $4.3 million more for desired technology upgrades as part of its new Civic Center...on top of $7.05 million that the Council authorized in March 2018 (an over 60% increase.)
A Dec. 18, 2018 agendizing memo co-signed by Lea Eriksen (Director of Technology/Innovation), Craig Beck (Public Works Director) and John Gross (Financial Management Director) notes that on March 20, 2018, the Council approved a contract with Plenary Properties Long Beach, LLC to buy and install a portion of "critical technology needs infrastructure" in the new Civic Center...but says: Since that time, there has been continued refinement of the critical technology needs. Additional needs have been identified and it has been determined that Plenary is in the best position to purchase and install the additional technology infrastructure needs. The design and equipment costs were extensively evaluated by a team of construction, engineering, design, and technology consultants to ensure the solutions were consistent with the Civic Center design and were competitively priced. City management says Council approval "is requested to amend its contract with Pleanary for up to $4.3 million to buy and install "additional critical technology needs infrastructure, including costs associated with the City's data center, a high definition video wall, cellular communications, cameras, broadcast systems, and audio/video equipment." [Scroll down for further.] |
Of the $4.3 million, city management also seeks Council authority to borrow up to finance/borrow $1.6 million which would conserve cash [for potential spending on other things] but would increase taxpayers' annual cost of debt service. (Total aggregated debt service over ten years would come to nearly $1.95 million with an annual debt service cost of up to $360,000 per year.) The March 20, 2018 Council vote (8-1, Mungo absent) that approved the $7.05 million expenditure to Plenary also authorized lease-purchase agreements in an aggregate amount of $8.46 million under a master lease with Banc of America for financing Civic Center technology infrastructure with lease payments of up to $1.089 million annually over a term of up to 15 years. All of this stems from a fateful Dec. 9, 2014 Council The Council actions, supported by Mayor Robert Garcia, effectively committed LB taxpayers (without seeking LB taxpayer voted approval) to pay annual escalating costs (in future amounts determined in part by factors outside of the City's control) without seeking bids for a less costly seismic retrofit of LB's roughly 40 year-old City Hall or using a voter-approved bond, likely a lower interest rate, carrying fixed payments.
The Civic Center transaction was facilitated in part by Sacramento legislation carried at the City of LB's request by then-state Senator (elected Insurance Commissioner Nov. 2018) Ricardo Lara (D, LB-Huntington Park) and then-state Senator Janet Nguyen (R, SE LB-west OC) (defeated in seeking re-election in November 2018 based mainly on SE LB votes.) The state Senate seat is now being pursued by three Long Beach Council incumbents who all voted for the Civic Center transaction: 1st dist. Councilwoman Lena Gonzalez (who seconded Suja Lowenthal's motion to approve) with paperwork filed last week by Councilman Roberto Uranga and over a year ago by Councilman Al Austin. Councilwoman Gonzalez has former incumbent Lara's endorsement. In 2019, voters across much of Long Beach (the largest city in the state Senate district) will have an opportunity to vote on whoever seeks the vacant state Senate seat.
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Hardwood Floor Specialists Call (562) 422-2800 or (714) 836-7050 |