Fine Feathered Finks (1) - S1-E3
Other mistake: If the camera in the Penguin's cell is hidden and stationary, then the video taken from the cell should all be from the same angle, but not only does much of it move along with the Penguin as he paces, it also is much closer and at a lower angle. It only reverts back to being hidden when he notices it.
Answer: There wasn't one singular city used. It was shot in and around various locations in California, plus on a lot of sets and backlots. Ex. Some scenes were shot in LA, some in Pasadena, some in Santa Barbara, etc.
TedStixon