Airport Commission revisions, Sears UPDATE and Payless Shoes liquidates

Airport Commission to explore "revisions"

The Long Beach Airport Commission's Thursday February 21st Agenda Item 7 calls for  a creation of an Airport Commission "ad-hoc Committee" to suggest revisions to both the Long Beach Municipal Code Section 2.18 and Section 2.27.  Agenda Item 7 states:

"Recommendation to create ad-hoc Committee to suggest revisions to Long Beach Municipal Code, Chapters 2.18 and 2.27"

Section  2.18 of the Long Beach Municipal Code stated purpose is to establish " uniform regulations for Council established advisory boards, commissions and committees". 

Section 2.27 deals specifically with establishing the Airport Commission.   The section contains three parts :  the creation of the commission; commission members; and commission duties.

So what can be revised in these two sections of the Long Beach Municipal Code?

Section 2.27.010 is only about creating the commission.  Section 2.27.020 has two parts. First about commission members being residents of Long Beach, and this important financial part:

"No member may participate in any decision in which he or she has a material financial interest within the meaning of the California political reform act. Each member shall file a statement of economic interest in accordance with the California political reform act."

Section 2.27.030 covers the duties and mandate of the Airport Commission. The section also has three parts. The first two parts are regarding what the commission's duties are:

"A. The duties of the commission shall be as follows: Generally to consult with and advise the city council in formulating city policies regarding the development and operation of the Long Beach Municipal Airport;

B. To study and analyze, for the purpose of evaluation and recommendation of policy, problems which have been referred to it by the city council, including, but not limited to: (1) a review of the master plan for the municipal airport and possible revision of modification thereof; and (2) a review of and the preparation of recommendations with respect to, fees, rental schedules and standards of service of the municipal airport."

The final part of the section clearly states that  commissioners have no supervisory role in  the day-to-day operations of the airport.

So again, what can be revised?  

Section 2.18 is about the powers of the City Council to establish commissions and  its powers over the commissions. Can the Airport Commission recommend a revision of the Council's subject matter jurisdiction- especially when the Council did not refer the matter to the Airport Commission?

Possible revisions to Section  2.27 that directly deal with the Airport Commission are equally perplexing.  Revising the fact that an airport commissioner must live in the city or that: "No member may participate in any decision in which he or she has a material financial interest"  does not seem realistic.   The code's description of duties as "Generally to consult with and advise the city council"  and the requirement that the Airport Commission address items that are "referred to it by the city council" all seem appropriate in preventing the Airport Commission or individual commissioner going rogue.

Equally as perplexing is that the Item 7, according to the Agenda, is sponsored by the Long Beach Airport. The airport currently has an Interim Director. In addition, the Item 7  "Staff Recommendation" for this possible Pandora's Box is to   "Approve recommendation".

So what revisions do the staff envision and is it the staff who is going rogue?

The Long Beach Airport Commission will be meeting at the Long Beach Airport Marriott, 4700 Airport Plaza Drive at 4:00 pm on Thursday February 21, 2019.

For more information click on:

Airport Commission Agenda 

Section 2.18

Section 2.27

Sears and Kmart UPDATES

On Thursday February 7th,  Judge Robert Drain of the U.S. Bankruptcy Court in New York City approved the $5.2 billion hedge fund bid for the remaining  425 Sears and Kmart stores by Sears Holding Chairman Eddie Lampert.   Judge Drain approved the sale over the objections of the Sears creditors, landlords and major merchandise vendors who wanted the company liquefied to collect the $3 billion owed to them.  

Before his decision, Judge Drain received a letter from representatives of  Sears Holding's Sears and Kmart store employees asking the Judge to save their jobs.  Media reports further state the employee's letter stated: "We have deep concerns that if Eddie Lampert takes the helm again, the Sears and Kmart we know and love will be gone forever. We believe that with insight and accountability from the workforce, new Sears has the chance to succeed.." .

On Friday, February 15th, Eddie Lambert resigned from his position as Sears Holdings Chairman. He remained Chair of the new holding company created to takeover Sears Holdings- Transform Holdco LLC.  As Chairman of Transform Holdco, Lambert will hire his replacement for the Sears CEO position.

Last week in an interview with the Wall Street Journal, Lampert described his vision that he wants the new Sears Chair to carryout.  Plans include selling or subleasing some of the remaining stores and devoting more space to tools and appliances.  Lambert is also focused on downsizing stores to smaller formats.  While Sears sold its Craftsman Tool brand, the company still owns Sears Auto Centers, Sears Home Services, Kenmore Appliance brands and the Diehard brand.

For more information click on:

WSJ: Edward Lampert’s Plan for Sears: Smaller Stores, Less Apparel

Los Altos Payless liquidation sale
Payless Shoes announced last week it is closing all of its retail stores and online business.

Payless currently operates more than 2,700 stores in North America and Puerto Rico including two in Long Beach.  Payless filed for bankruptcy protection first in 2017 and will again file by the end of the month.  

The Los Altos location has been busy since the announcement and has liquidation signs up