In Proposed Civic Center Agenda Item, Management Seeks Council Authority -- Without Further Council Or Public Discussion -- To Seek Changes in State Law, Sign Contracts Not Publicly Seen Until After They're Binding

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(Dec. 9, 2014, 7:05 a.m.) -- As part of tonight's (Dec. 9) agendized Civic Center transaction, city management seeks Council authority that would enable non-elected city staff -- without further Council or public discussion -- to seek changes in state law and sign contracts not publicly discussed or seen until after they're signed and binding. Below are salient portions of the agendizing text (source: Dec. 9 city management agendizing memo, signed by Mike Conway (Dir. of Economic and Property Development), John Gross (Dir. of Financial Management), Amy Bodek (Dir. of Development Services), Glenda Williams (Dir. of Library Services), and signed as approved by Pat West (City Manager):

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[Salient portions of Dec. 9 agendizing memo text; full text is below]
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 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;
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;
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.

Regarding pursuing unspecified enabling legislation, the memo states only:

City staff, in consultation with the City Attorney, considers the preferred Project Team's lease/lease-back structure to be appropriate under current statutory and case law. Nevertheless, should City staff consider that there are potential benefits for the City from other possible Project structures, for example, such as reducing the bond interest rates and thereby increasing the net proceeds from a bond issuance and increasing the dollars available for the Project, then they may consider pursuing special legislation for this purpose.

As separately reported by LBREPORT.com, at the Dec. 8 Harbor Commission meeting, Commissioner Tracy Egoscue (in making the motion to approve Port staff's recommendations) included in her motion a noteworthy change: to remove the two words "and execute" from approval to negotiate a Exclusive Negotiation Agreement (and other documents in that paragraph.) The wording change presumably means that Port staff's negotiated contract and associated documents will return to the Harbor Comm'n for its review, and presumably public review, before Commission approval and execution.

This is a change from usual procedure in Long Beach, where (unlike some cities) the City Council and other decisionmaking bodies give management authority to negotiate and execute agreements based on a management memo summarizing the proposed contract, but not showing the the Council or the public the actual proposed contract and its terms (including "small print") before management makes the contract binding on the city.

Some cities routinely attach proposed contracts for review by their Councilmembers and the public, particularly on large proposed agreements.

LBREPORT.com will have LIVE video of the Dec. 9 Council meeting on our front page, www.LBREPORT.com, starting at 5:00 p.m. LBREPORT.com provides access to the full Civic Center item as agendized below:

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