Tag Archives: revenue

A Message From Chevron El Segundo Refinery General Manager Frank Semancik

Posted on March 16, 2012 by Mike

Subject: A Message From Chevron El Segundo Refinery General Manager Frank Semancik
From: Chevron El Segundo General Manager, Frank Semancik (XXXXXXXX@chevron.com)
To:
Cc:
Bcc:
Date: Friday, March 16, 2012 9:39 PM

Dear Community Leader,

Chevron is proud of the long tradition of trust and mutual respect we have with the City of El Segundo as well as the other neighbor cities and residents in the South Bay. We strive to conduct our business with the high moral values reflected in the community and, we sincerely believe we have demonstrated that commitment consistently over the 100 years our company has operated its facility in our hometown, El Segundo.

That is why it has been so disheartening and disappointing that in recent weeks, some have chosen to use deceptive tactics focused on Chevron to try and sway a local election and pit neighbor against neighbor. “Anonymous” special interests are seeking to drag our community into a debate on issues long settled by the elected representatives of the City of El Segundo. In doing so, they have completely ignored this key fact: Chevron has publicly stated its 100% commitment to work collaboratively with the City of El Segundo to resolve issues about the City’s tax structure discussed at the Council’s December 20, 2011 meeting.

We feel it’s important to set the record straight. Here are the facts:

  • The unsubstantiated rumors and allegations concerning the utility user taxes (UUT) Chevron pays in El Segundo are false and fail to accurately reflect the public record.
  • The distorted figure alleged to depict our UUT contribution to the City of El Segundo represents only a small portion of the almost $2 million Chevron pays annually in combined UUT’s.
  • Chevron’s agreement with the City is not unique, and is in fact similar to the UUT bills companies like ours pay in other local cities, including the City of Los Angeles.
  • The UUT issue being deceptively portrayed was reviewed in an open and public process with the full understanding of the City of El Segundo’s elected officials and City legal staff.
  • Public records clearly demonstrate that the City UUT ordinance was made available for public review, certified, approved, adopted, signed and attested to during a regular and open meeting of the City Council. And most importantly, the UUT ordinance was approved by every member of the City Council.

We again commit to being open and honest in our communications and, as always, welcome your interest as our valued community partner. Thank you for allowing us to set the record straight.

Sincerely,

Frank Semancik, on behalf of the Chevron El Segundo Refinery, joined by Rod Spackman, Lily Craig, Jill Brunkhardt and Jeff Wilson Continue reading →

Posted in Doug Willmore's Great Chevron Shakedown, El Segundo Election Coverage, El Segundo News, El Segundo Tax and Fee Increases | Tagged , , , , , , , , , , , , , , , | Comments Off

Excerpts from the March 1, 2012 El Segundo Herald Article on Chevron

Posted on March 1, 2012 by Mike

Asked about the lack of response to Willmore and if he had formed a legal opinion on the Chevron matter, El Segundo City Attorney Mark Hensley said he could not disclose information due to attorney/client privilege. However, he pointed out that for events “that happened 20 years ago and based on statutes that go back a quarter of a century, the process of reviewing all that is lengthy. There are statute of limitations issues…Had I been asked about something that happened 20 years ago, it would take a considerable amount of time to study it.”

A Council member in 1993, Mike Robbins confirmed that “the City was going to get sued by MRC, Chevron or both—and reached a legal settlement where the City paid MRC a reduced amount, Chevron effectively paid the City the amount paid to MRC, and Chevron’s future tax liability was more clearly defined.” Robbins went on to describe MRC’s approach as “hostile and aggressive,” and felt the firm “endangered the City’s business retention and attraction program.”

Asked to elaborate why the UUT deal with Chevron was fair, Robbins explained that El Segundo is a low-tax city by choice and can’t be compared to other municipalities. He added that Chevron is a unique case because its giant 951-acre parcel is self-contained. “The City does not pay to provide and maintain all the City infrastructure and services on the massive Chevron property that it provides for all the other business and residential properties in town,” Robbins said. “These include many miles of roads, alleys, sidewalks, storm drains, water and sewer pipes, street lighting, trees, landscaping, street sweeping, residential trash collection, and police patrols, as well as public parks and recreation facilities. It is not fair to charge Chevron taxes for City infrastructure and services that it does not receive.”

Meanwhile Councilmember Jacobson, who was El Segundo’s Mayor at the time of the settlement, described MRC as a “bounty hunter” since the company stood to make a 25 percent fee. “They were trying to charge Chevron for its own gas and the Council didn’t agree,” he said. Jacobson maintained that the Chevron UUT settlement was approved in public—not closed—session. “There was nothing secret about it.” … Continue reading →

Posted in Doug Willmore's Great Chevron Shakedown, El Segundo News, El Segundo Tax and Fee Increases | Tagged , , , , , , , , , , , , , | Comments Off

Are Chevron’s taxes too high? – Letter to the Daily Breeze by Michael D. Robbins

Posted on February 28, 2012 by Mike

Are Chevron’s taxes too high?

El Segundo’s shakedown of Chevron under threat of a $10 million annual tax hike must stop, or the city will suffer long-term damage to its reputation. City Manager Doug Willmore used a deceptive, one-sided analysis for the Chevron property, rather than a cost-versus-benefits analysis. It’s dishonest to compare tax revenues generated per acre by the refinery with that of other local businesses. Unlike El Segundo, land use in other South Bay cities is mostly residential. Willmore ignored the cost to provide and maintain infrastructure and services for all the residents and businesses that would otherwise exist on the Chevron property if the refinery never existed. And he reduced Chevron’s tax revenue per acre by failing to account for the area of all the public streets, alleys, parks, and schools that would be needed.

If an accurate analysis shows Chevron’s taxes are excessive, will the City Council reduce Chevron’s taxes and apologize? … Continue reading →

Posted in Daily Breeze Letters, Doug Willmore's Great Chevron Shakedown, El Segundo, El Segundo News, El Segundo Tax and Fee Increases, Letters to the Editor | Tagged , , , , , , , , , , , , , , , , , , | Comments Off

El Segundo making Chevron’s taxes too high – Letter to the Beach Reporter by Michael D. Robbins

Posted on January 26, 2012 by Mike

El Segundo making Chevron’s taxes too high

The city manager’s Chevron Shakedown must stop, including efforts to extort large “gifts” of money under threat of a $10 million annual tax hike. The city will suffer long-term damage to its reputation as a good city to locate a business.

Doug Willmore used false premises to construct a deceptive one-sided analysis for the Chevron property, rather than a true cost-versus-benefits analysis. It is unfair and dishonest to compare tax revenues generated per acre by the Chevron refinery with that of other local businesses. Land use in other South Bay cities is mostly residential and not three-quarters commercial/industrial as in El Segundo.

In his one-sided analysis, Willmore ignored the cost for the city to provide and maintain infrastructure and services for residents and businesses that would otherwise exist on the massive Chevron refinery property.

If the refinery never existed, that land would be mostly residential and some commercial. Tax revenues would be much less, and the city would have to provide and maintain infrastructure and services for twice as many residents at great expense that Willmore failed to include in his seriously flawed and biased analysis. … Continue reading →

Posted in Beach Reporter Letters, Doug Willmore's Great Chevron Shakedown, El Segundo News, El Segundo Tax and Fee Increases, Letters to the Editor | Tagged , , , , , , , , , , , , , , , , , , , , , , , | Comments Off

Proposed Tax Increase On Chevron – Letter to the El Segundo Herald by Ron Murray

Posted on January 5, 2012 by Mike

The proposed tax increase is flawed. The tax proposed is on land ownership, not on the business. The County taxes property— land and improvements of which El Segundo receives a “slice”. Taxes should be uniform and consistent; so the tax should be applied to all unimproved land in the city—parking lots, unimproved commercial zoned property, empty storage lots, etc., not just on Chevron.

Most business in El Segundo pay a business tax based on commercial building footage plus number of employees/contractors. This formula is good as it is tied to services provided by the city to the business. … Continue reading →

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Good Neighbors – Letter to the El Segundo Herald by Chris Powell

Posted on January 5, 2012 by Mike

Many who work closely with the City on fiscal issues were surprised when a proposed tax increase on Chevron showed up on the Council’s agenda with no warning. … Continue reading →

Posted in Doug Willmore's Great Chevron Shakedown, El Segundo Herald Letters, El Segundo Tax and Fee Increases, Letters to the Editor | Tagged , , , , , , , , | Comments Off

Chevron Tax – Letter to the El Segundo Herald by Joe harding

Posted on January 5, 2012 by Mike

It’s disappointing that a majority of the City Council feel compelled to raise taxes on El Segundo’s oldest business without taking the time to consider the consequences not only for Chevron but for other businesses here.

Why, in a last-minute agenda addition just five days before Christmas, would the Council vote to draft an initiative for millions in new taxes, with a deadline of January 13 to decide whether or not to place it on the ballot? … Continue reading →

Posted in Doug Willmore's Great Chevron Shakedown, El Segundo Herald Letters, El Segundo Tax and Fee Increases, Letters to the Editor | Tagged , , , , , , , , , , , | Comments Off

Are Chevron’s Taxes Too High? – Letter to the El Segundo Herald by Michael D. Robbins

Posted on January 5, 2012 by Mike

The City Manager’s Chevron Shakedown must stop, including efforts to extort large “gifts” of money under threat of a $10 million annual tax hike. The City will suffer long-term damage to its reputation as a good city to locate a business.

Doug Willmore used false premises to construct a deceptive one-sided analysis for the Chevron property, rather than a true cost-versus-benefits analysis. It is unfair and dishonest to compare tax revenues generated per acre by the Chevron refinery with that of other local businesses. Land use in other South Bay cities is mostly residential and not three-quarters commercial/industrial as in El Segundo.

In his one-sided analysis, Willmore ignored the cost for the City to provide and maintain infrastructure and services for residents and businesses that would otherwise exist on the massive Chevron refinery property. … Continue reading →

Posted in Doug Willmore's Great Chevron Shakedown, El Segundo Herald Letters, El Segundo News, El Segundo Tax and Fee Increases, Letters to the Editor | Tagged , , , , , , , , , , , , , , , , , , , , | Comments Off

Mayor Carl Jacobson provided leadership to resolve 1988 revenue crisis

Posted on October 28, 2010 by Mike

Former Mayors Reflect on Past Challenges

October 28, 2010

By Brian Simon

Mayor Carl Jacobson (1988-1996):

Though he is now back on the Council and dealing with the City’s current financial crisis, Jacobson also had a major budget dilemma to contend with when he became Mayor in 1988. Two-thirds of the City’s revenue base had previously come from use taxes collected from Chevron’s sale of fuel oil to Edison. But when the Public Utilities Commission ordered Edison to switch to the cleaner-burning natural gas, all that revenue went bye-bye.

To address the issue, Jacobson and the Council revamped the business license and utility user tax structure to provide replacement revenue streams. The tax increases were phased in over time. “It was an absolute necessity and done during a decent economy that was nothing like the condition we are in right now,” said Jacobson, who added that the Council even lowered the business license tax by the end of his tenure.

Jacobson also successfully lobbied to increase the City’s share of local property taxes from five percent to seven (since lowered by the State to 6.25). … Continue reading →

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