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Council Could Vote Dec. 9 To Authorize Mgm't To Negotiate/Enter Into Binding Contract With Private Firm To Finance/Build/Operate/Maintain New Civic Center

Mgm't recommends Plenary Edgemoor Civic Partners; seeks Council authority to spend up to $3.2 million more for consulting firm + up to nearly $2 million for outside legal services


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(Dec. 1, 2014, 8:05 p.m.) -- Long Beach city management has agendized an item -- for a possible Council vote on December 9 -- that could authorize city management to negotiate/enter into a binding contract with a private entity to finance/build/operate/maintain a new Civic Center for forty years in exchange for annual escalating city payments and conveyance of developable land under the former LB courthouse (Ocean Blvd./Magnolia Ave.) for the developer/operator's private development.

City management's agendizing memorandum (provided in full below) seeks Council approval to enter into an Exclusive Negotiating Agreement (a binding contract) with Plenary Edgemoor Civic Partners, one of the two remaining management pre-selected contenders.

Management also seeks Council authority to spend up to $3.2 million more in payments to a consulting firm and up to nearly $2 million to retain an outside law firm.

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Management also seeks Council authority to "take all actions necessary to pursue enabling legislation in the event it is determined that such legislation would benefit the Project."

The proposed Council actions are agendized for voted Council action less than a month after the Council held its first -- and to date only -- study session on the financial details of the complex financial transaction which carries long term taxpayer consequences. (Other study sessions consisted of Power Point reviews and overviews, a display of non-binding artist renderings and the like.) The study session on financial matters, held on November 11 in North Long Beach, didn't include presentations or financing alternatives from any sources other than city management; members of the public or others offering other options were allowed 180 seconds at a speakers' podium.

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The agendized item allows, but doesn't require, the Council to approve management's proposed actions. A Council majority could vote to seek presentations on financing or other matters from sources other than city management, which it has not invited to date. A Council majority could request (via a forthcoming agenda item) putting the proposed transaction on the ballot for a public vote on whether to enter into such a transaction (which could be consolidated with an April 2015 special election to fill a 4th Council district vacancy.)

Salient portions of city management's agendizing memo follow, in addition to the full memo.

[Agendizing memo text]

Confirm the findings in the Evaluation Summary Report that both Plenary Edgemoor Civic Partners (PECP) and Long Beach CiviCore Alliance (LBCCA) submitted proposals responsive to the RFP and are eligible to receive payment of the stipend;

Confirm the recommendation of staff to select PECP as the City's preferred Project Team for the Project;

For the Port-In alternative, authorize the City Manager to negotiate and execute an MOU with the Board of Harbor Commissioners (BHC) detailing rights and obligations of both parties during the Exclusive Negotiation Agreement period;

Authorize the City Manager to extend Agreement 33344 with Arup North America Limited (Arup) for an additional period of five years and increase authority by $2,900,000, plus a ten percent contingency of $290,000, for a total contract authority of $4,070,438;

Authorize the City Manager to enter into a contract with Sheppard Mullin Richter & Hampton, LLC, for legal services for a term of five years at a cost of $1.8 million, plus a ten percent contingency of $180,000, for a total contract authority of $1,980,000;

Authorize the City Manager to take all actions necessary to pursue enabling legislation in the event it is determined that such legislation would benefit the Project;

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.

Authorize the City Manager to negotiate and execute, at a minimum, the following agreements with PECP, and, if negotiations with PECP come to an impasse, or otherwise terminate, then with LBCCA: Exclusive Negotiation Agreement, Term Sheet, Global Executory Agreement and any other document or agreement necessary to effectuate the terms of the Project;

Appropriate $4.6 million from the Civic Center Fund for the estimated City share of the cost of the ENA period;

Authorize the City Manager to conduct all activities, and sign and submit all documents or applications, necessary to proceed with the entitlement of the Project, including clearance under the California Environmental Quality Act; and

Approve the formation of one or more Non-Profit Special Purpose Entities for the purpose of issuance of bonds to fund the Project costs. (District 2)

LBREPORT.com provides access to the full agendizing memo below.

Dec. 9, 2014 Long Beach City Mgm't Agendizing Memo recommending preferred Civic Ctr Developer for Coun...

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City management's recommended action comes without the City having issued an Request for Proposals or sought bids to retrofit LB's City Hall (built in the late 1970s.) City management first indicated publicly in 2005 that City Hall had seismic issues it said don't affect its safety but could prevent some upper floors from exiting after a major quake. City management has used seismic studies as its basis for estimating a retrofit cost...that it says would be more costly than building a new City Hall...and has argued that this creates an opportunity to rebuild all of LB's Civic Center.

At least one Long Beach firm, which says it is experienced in historical retrofits, has indicated it believes an adaptive refuse City Hall retrofit could be accomplished for considerably less than city management has estimated. A Columbia University graduate student's Master of Science thesis also advocated a City Hall retrofit.

Neither city management, not the City Council, have invited presentations on any aspect of the proposed transaction from sources other than city management. Members of the public have been limited to 180 podium seconds to present alternatives or rebut city management's contentions..

Developing with further to follow. .

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