Speaker 1: Thank you. We're going to do item 30. And because we're nearing 730, I'm going to push back hearing one because we do have a post 730 time certain. So I will be hearing that right after this item and then we'll go into the budget hearing. So item 30.
Speaker 0: Item 30 Report from Economic Development. Recommendation to execute a seventh Amendment to Management Agreement with SMG for a one year extension. Entering into a labor peace agreement with Unite Here Local 11 for operations in the Long Beach Convention and Entertainment Center, District two.
Speaker 1: Thank you. With that, let me turn this over first and get a staff report.
Speaker 2: Yes. Thank you, Mr. Mayor. Members of the city council. So this is something we're excited about. For the last several years, the city council has talked about kind of the future of the convention center as their contract comes up in 2022. That was an action back in 2013 about adding some labor peace agreements to our agreement. This was always going to be something that is goes into effect after 2022. Given the you know, that we're close to the end of the contract, that we also have seen significant interest from major conferences who are interested in coming to the city, but have questions about kind of the the unionization of certain operations and to protect the city's interests from any type of work stoppage, that type of thing. We have approached and talked to SMG and they have put forward the agreement that you have in front of you today. SMG has been a wonderful partner. They have a number of different facilities throughout the city of Long Beach that operate under different models I'm sorry, throughout the nation that operate under a number of models. And so what this agreement is in front of you is essentially a one year contract extension. And in exchange, there will be a a card check agreement that we would be executed and that would be executed prior to November 2019. And with that, we are available to answer questions. And SMG also has representatives here if you are interested.
Speaker 1: Thank you very much. I'm going to make a few comments and then turn this over to Councilman Pearce. I want to just just begin back in in 2013 when I was not been elected mayor but was on the city council. We had an extensive discussion about labor peace and about the convention center, SMG, and how well our center runs. I mean, the truth is that we have a model convention center across the country. Folks know that we operate a stellar operation with stellar employees. And I think if you talk to conventioneers, they will share with you what a great operation that we have. And I'm at the time we had discuss putting together a strong labor peace agreement at the end of the contract. I think that that in these discussions, I want to commend city staff, I want to thank SMG because it would not be possible without an incredible step forward by SMG as well as our labor partners to come together and really move the labor peace portion of this. Forward while at the same time as kind of reassuring our our strengthening relationship with SMG and allow that contract extension. So I think this is a a win win for everyone. And I really want to thank staff. You know, it's truly challenged all of you to work on this. In the last few months, you guys may have made incredible progress very quickly and it would not be possible without all of your hard work. And I want to thank Mr. Kaiser, you and your team specially. I want to thank you also. Mr. Murdoch, I know you've been very involved and I know that SMG and the CVB are here and I just want to thank them for their incredible work as well. So thank you, Councilmember Pierce.
Speaker 4: Thank you. I want to definitely thanked the staff and think the Mayor SMG greatly for your work on this. Ten years ago our city was very different. You know, the conversation around labor negotiations and economic sustainability were very different conversations. In 2013, I was on the other side of this dais advocating and saying that we could have a strong, thriving downtown with a thriving hotel and hospitality industry, alongside workers receiving a voice at the table, alongside workers sitting across the bargaining table to decide what was best, and that that was balance and how we have a city that really does work for everybody. And so in 2013, we advocated we had the council pass that. And to have this come up two years earlier than expected really speaks volumes, I think, of the leadership at our convention center, the leadership with SMG and the leadership on this council and with city staff. This is a is a day in history that we should be proud of. And we've often talked about what conventions we can get in the city of Long Beach. And so many have been left off of the table because we didn't have enough hotel rooms, because we didn't have a good protection at our convention center. And what's most important about this is that this is the city really also saying we have to protect our proprietary interests. The same conversation we have at the port, which is how do we have a city owned facility and how can we make sure that there's not going to be a labor stoppage, a strike or something like that that could keep money from coming into our city. And so this is absolutely the right track. I'm very proud of everyone doing this work, and so I really want to applaud the council in 2013. But the leadership that's at our convention center now, I know it wasn't an easy road to get here, and I know that our convention center is going to be better off today for it. I also know that there are other people that have asked to have a voice with SMG, and I want to thank you guys for already setting up those meetings to make sure that we will not have a labor stoppage at our convention center at any given time. And so, again, this is a historic day that a lot of people have worked hard on. So I'm very proud. Thank you.
Speaker 1: Councilwoman Councilmember Richardson.
Speaker 9: Thank you, Mr. Mayor. I want to take a moment and congratulate and thank all the parties for agreeing to this. There's a lot of ways that these things get in front of our city council. This is probably the best way I have to say, you know, we're a city that's doing amazing things, big things. And, you know, when these conventions and conferences come to the city, I think the way that we deal with our workgroups and the commitments we make to quality jobs, I think it makes a lot of sense for Long Beach to be a town where it's convention center and convention center vendors are union. I think that's I think that's okay for us to say that and to make that commitment. So congratulations to all those involved. I think this is this makes sense for Long Beach. And again, this is probably the best way that this there was no drama. Folks are here. There's no big, you know, crowd of folks. There's no high stakes politics. Folks have just they have an agreement and it reflects Long Beach's values. So congratulations to all of you and happy to support this.
Speaker 1: Thank you. And Vice Mayor Andrews. Yes.
Speaker 8: And also, you know, in 2013, I did vote for this process and I'm glad to see it's moving forward. And I'm just glad to see that the whole organization, everyone is, you know, really getting behind something that we really need here in this city. And I want to really thank the CV CBD Group. It's just people and individuals who are really standing behind these things also. So congratulations to everyone. Thank you.
Speaker 1: Thank you. And Councilman Austin.
Speaker 6: Thank you. This is this is a great day for for Long Beach on many levels. I was happy to be sitting out in the audience ten years ago when this issue came up the first time. It was a very different conversation. It was a very contentious meeting, and it didn't work out very well. But I do I will like to echo the comments that it is great to have the the entities in Long Beach reflect the city's values and we should not be shamed to ever stand up for union job. The good jobs and the people that work and serve this city, that make this city look good, that put on conventions, should really benefit in the economic prosperity of our city. And I can tell you that our convention and visitors bureau, our convention industry has has really helped define this city and will continue to do that. And I know this decision today will be one of economic interest for the city in a positive way. So I'm happy to support.
Speaker 1: Thank you, Councilman. And just to conclude, I just want to add, because I think, Councilman, you recenter this where it needs to be. And I want to just not just congratulate all the parties, but I do want to congratulate the workers. And as we close to the workers at the convention center that are there working very hard. We have the best team at that convention center of hard working folks, many of them from Long Beach back putting their their money back into our local economy and knowing that that in the future, their their jobs will be will be strengthened, represented and and have new tools for them to advocate on their behalf and of their members behalf, I think is really special. And I couldn't think SMG and our partners at the CVB for this work. And so congratulations to them and their and their amazing work as well. And so with that members, please cast your votes.
Speaker 0: Motion carries.
Speaker 1: Great. Thank you very much, everybody. With that, we're going to move on to our time certain. And that is for me. Give me 1/2 is. Item number 17, please send Kirk.
Recommendation to authorize City Manager, or designee, to execute any and all documents necessary for a Seventh Amendment to Management Agreement No. 21667 with SMG, a Pennsylvania joint venture, for a one-year extension expressly conditioned on an SMG subsidiary, SMG Food & Beverage, LLC, entering into a Labor Peace Agreement with UNITE HERE Local 11 for operations at the Long Beach Convention and Entertainment Center.  (District 2)