The $4.3 million increase included $1.0 million for what management's agendizing memo described as a "high definition video wall" or "media wall" which prompted some Council discussion...during which no Councilmembers questioned the $3.3 million in additional proposed Civic Center-related spending.

And after hearing our podcast above, LBREPORT.com invites you to share your comments on the Councilmembers' justifications and their voted action for possible inclusion in a subsequent LBREPORT.com podcast. Just call (562) 429-TALK (429-8255) and provide your comments at the tone.

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Fifth district Councilwoman Stacy Mungo (chair of the Council's Budget Oversight Committee) made the motion to approve the $4.3 million Civic Center expenditure increase but asked to publicly explain why use of "Special Advertising and Promotion Funds" (SAP funds) for the million dollar "media wall" is not eligible for uses such as street repair, sidewalk repair, any of the other items.

Lea Eriksen, Director of Technology/Innovation, replied (consistent with the agendizing memo) that the $1 million for the "media wall" would come from LB's "Special Advertising & Promotions Fund" which she said "is restricted for communications and marketing of the city's facilities in art" [and other projects], adding "It can't be spent on street repairs and other purposes."

[LBREPORT.com editor's note: LB's Muni Code section 3.64.100 (adopted by a previous Council) says City Hall's "Special Advertising and Promotion Fund" may only be expended for purposes that include "advertising, promotional, and public relations projects calling attention to the City, its natural advantages, resources, enterprises, attractions, climate, and facilities..." The single biggest revenue source feeding the "Special Advertising & Promotion Fund is LB's Transient Occupancy Tax (hotel room tax, that a Council majority recently favored applying to homeowners offering short term rentals (Airbnb type uses.) City budget documents indicate that at the start of FY19 (Oct. 1, 2018) City Hall's "Special Advertising & Promotion Fund" had a roughly $3.44 million balance available. Councilwoman Mungo was correct to the extent the Council can't currently tap the Special Advertising & Promotion Fund for items such as streets and sidewalks, but nothing would prevent a Councilmember(s) in the future from agendizing an item to amend Muni Code section 3.64.100 (two Council majority approval votes would be required on two separate days) to let the Council use Special Advertising & Promotion Fund sums for whatever general fund purposes (including streets and sidewalks) the Council might wish.]

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Ms. Ericksen went on to state that "we do have a public art component" and "this is our public art component, this video high definition media wall" and this funding "goes to fulfill our commitment to our percent for the arts program."

This didn't initially persuade Councilman Al Austin, who noted that the "media wall" wasn't part of the original plan and asked city staff in a skeptical tone if "this is something that just came up as a great idea?" Public Works Director Craig Beck replied:

Mr. Beck: The media wall was an enhancement that was added to the [City Hall] building. As we look to a 21st century City Hall, we look to 21st century technology and experiences. And having this media wall is an opportunity to really engage our whole community. I mean if you think about the opportunities to have a webcam from a playground or a webcam at the beach, or to show videos from different neighborhoods and art displays from different communities and allowing us to engage with our university, really the opportunities are almost endless when you think about what can actually be displayed on the video wall. Not to mention it becomes a very useful device on those evenings where we have controversial items and we have overflow from the Council Chambers, we could actually have the Council meeting being displayed on the video wall and that would allow our residents or participants in the Council meeting to kind of be engaged through that all in the lobby or even through that courtyard of the new Civic Center project. So this is an enhancement. We do believe it's an important element to having a building that really represents where this city will be now and for the next 40+ years.

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Councilman Austin voiced concern over what content would be shown on the "media wall," said the subject deserves Council discussion, noted that earlier in the year he had to struggle [along with Councilmembers Rex Richardson and Dee Andrews] to obtain a fraction of sums allocated to the Civic Center to fund an Long Beach African-American Cultural Center. However Austin ultimately joined the rest of the Council in voting to approve the $4.3 million Civic Center-related cost increase. .

City staff indicated in its agendizing memo that it might finance part of the sum, which would conserve cash but increase ultimate debt costs. City staff's memo said 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.

The Council's approval of the $4.3 million expenditure also came just hours a study session at which city staff told the Council (Mungo and Andrews absent) that preliminary figures subject to change indicate the possibility of "service reductions" for the public in FY20 unless the Council increases ambulance fees and parking fines to the "maximum extent feasible" and other revenues materialize as currently planned/hoped for (which staff cautioned still wouldn't be sufficient to handle new contracts to be negotiated with city employee unions (LBREPORT.com coverage here.)

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All of this stems from a fateful Dec. 9, 2014 Council 8-0 vote -- Gonzalez, Lowenthal, Price, Mungo, Andrews, Uranga, Austin and Richardson voting "yes" (Supernaw not yet elected) that chose Plenary to construct, operate and maintain a new Civic Center. A liittle over a year later on Dec. 15, 2015, the Council voted 9-0 to finalize the transaction in full.

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 currently 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 candidates seeking the vacated state Senate seat.

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