Long Beach votes to contract with new company headed by CEO accused of retaliation, reckless spending

Despite current litigation and an anonymous letter both accusing Long Beach Convention and Visitor Bureau CEO Steve Goodling of reckless spending and retaliation, the Long Beach City Council voted 7-0 Nov. 14 to contract with a newly developed company that has Goodling at the helm.

The contract is worth more than $7 Million.

The company is called “Meet Long Beach” and would split off advertising and marketing services from the LBCVB, which Goodling will also continue to lead. Goodling, during a presentation in front of the council, said the new company would make them more competitive with other cities like Los Angeles and San Diego that have a similar structure.

“It was time to model that and create a non-profit, private organization just like the other major metro cities,” said Goodling. “It will protect our conversations with our customers.”

The CVB has argued, since it is obligated to public records requests, public information about its convention sales could negatively impact its competitive edge in the market. Although, the CVB said no such incident has occurred.

Private corporations, like the new “Meet LB,” are shielded from the Brown Act and the California Public Records Act.

The Brown Act is a statewide law that requires government agencies to vote on the public’s business at meetings that are open to the public, and the California Public Records Act, mandates those same agencies must open their books up to public inspection.

The LBCVB has been subject to both laws after a recent opinion by Long Beach City Attorney Dawn McIntosh.

Use of the laws have found a number of concerns with Goodling’s leadership at the LBCVB.

Responses to recent public record requests include a letter sent to the city, written by a self-proclaimed “whistleblower,” alleging Goodling “is a bully who intimidates and dehumanizes people.” It goes on to accuse Goodling of “retaliatory behavior.”

The LBCVB board has received the letter and is reviewing it.

Goodling told NBC4 during an event on Nov. 10, that he had no comment to our request for an interview regarding the allegations or the new company.

The internal scrutiny comes as Goodling is being sued for wrongful termination by the convention center’s former finance director, Paul Falzon.

Falzon, who worked for ASM Global, which had a contract with Long Beach to operate the Convention Center, alleges in the lawsuit that Goodling "was spending public money to buy furniture that he converted to his personal use… Goodling spent over $1.3 million in public funds on furniture and unapproved purchases.” According to the lawsuit, after Falzon reported it to his boss, Goodling "exerted his clout, threatening Plaintiff, and influenced the Defendant Employers’ wrongful termination of Plaintiff’s job.”

Falzon, in the lawsuit, said his boss "covered for Goodling and swept it under the rug, saying that Goodling ‘had an illness,’ which caused Goodling to buy furniture."

Also in the lawsuit, Falzon said the money for the purchases came from the convention center’s “$5 parking fund,” money earned from parking fees at the convention center.

The fund can be used for “furnishings, improvements, construction, and maintenance of the Center,” according to memo from Bo Martinez, Long Beach Director of Economic Development.

Goodling, in court documents, has “vehemently” denied any wrongdoing or unethical behavior. The LBCVB board voted on Aug. 4, according to board minutes, “to defend and indemnify Steve Goodling in the lawsuit.”

The city hired an independent firm to conduct an audit review of the $5 fund. The firm concluded the convention center’s “record keeping, safeguarding and authorization… deviated from industry professional standards.” They also said purchases were “not subject to a budget, (or) approval… prior to purchase. This allows for unauthorized purchases to occur and not otherwise be detected.”

“A formal audit could not be conducted,” said City Manager Tom Modica. Instead, the “city staff conducted a randomized review of a sampling of items purchased with the $5 Fund and found no discrepancies.”

It’s unclear how many items were reviewed, but it was not a full accounting of the purchases, the city said.

Modica said the independent firm made suggestions to correct some of the problems identified, which they have implemented.

No one, including Goodling, has been found of wrongdoing.

Despite the accusations against him, the city council chose to work further with Goodling, approving a contract with the new “MeetLB” company. 

Mayor Rex Richardson did request that updates on financials, annual reports, budget and other items be made public as part of the contract.

“The city council can give that direction to make sure that those things are codified, in writing, a requirement of the contract,” Richardson said.

Richardson did not address any of the allegations surrounding Goodling during the council discussion. NBC4 reached out to his communication team for comment and was told they would respond as soon as possible.

Several of the council members praised Goodling for his work with the LBCVB, but none addressed the allegations in the lawsuit or the whistleblower letter.

“Thank you Steve Goodling for your leadership and your passion,” said Cindy Allen, Long Beach vice mayor.

District 1 City Councilwoman Mary Zendejas told NBC4 that the allegations against Goodling and the new company were "two different issues,” despite the fact that Goodling would be leading the new company.

Al Austin, District 8 City Councilman, spoke to NBC4 ahead of the vote.

“I don’t want to speak on allegations, they are just that,” said Austin. “If there is some strong findings, I haven’t seen any evidence to support that.”