Category Archives: Doug Willmore’s Great Chevron Shakedown

Fired City Manager Doug Willmore’s Great Chevron Shakedown for $10 million per year in additional taxes.

KCET and L.A. Times Hatchet Jobs against El Segundo, Chevron and Carl Jacobson exposed as propaganda

I have had the pleasure of serving for four years on the El Segundo City Council with Carl Jacobson, from 1992 to 1996. I have known Carl for more than 20 years. I have the deepest respect for Carl. He has always been an extremely honest, dedicated, hard-working, and productive member of the City Council, giving much of his time and his life to our community.

KCET producer Karen Fochay and L.A. Times writer Jeff Gottlieb both called to interview me because I was a City Council member at the time of the 1994 legal settlement to the tax dispute between MRC, Chevron, and the City.

I made it clear to them that the 1994 tax dispute settlement was completely legal and reasonable.

But the KCET show on Chevron, and the L.A. Times articles, completely ignored my information because it contradicted their anti-Chevron political agenda and bias. … Continue reading

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

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

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

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

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Email – Contact – El Segundo Finance Director Deborah Cullen provided phone/address book (VCF) file for Steve Stark at MuniServices

From: Cullen, Deborah
Sent: Friday, February 17, 2012 7:07 AM
To: Doug Willmore
Subject: Contact
Attachments: Steve Stark.vcf; ATT00001..txt

Steve Stark.vcf (695 B)
ATT00001..txt (292 B)

Hi Doug,

I don’t have Don’s number but MuniServices/Steve Stark would have it.

Deb Continue reading

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What happened to pay-as-you-go? – Letter to the El Segundo Herald by Liz Garnholz

In order to pay for 13 Capital Infrastructure Projects the City of El Segundo wants to obtain an approximately $10,000.000 Lease-Revenue Bond using our City as collateral. This $10,000,000 Lease-Revenue Bond over 20 years will cost approximately $15,800,000 with yearly debt service payments of $775,000. Whatever happened to pay-as-you-go?

So why this type of bond? Simple, Lease- Revenue Bonds circumvent Proposition 13’s requirement that taxpayers vote on bonds. These types of bonds are legal gimmicks. … Continue reading

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Save Our City – Letter to the El Segundo Herald by Michael D. Robbins

SAVE OUR CITY

The El Segundo firefighter and police unions are putting our city at risk for their Royal Family sized paychecks and pensions. At the Feb. 7 City Council meeting, City Manager Doug Willmore explained how City Hall will be sold and leased back for twenty years, as collateral for a $10.3 million loan to pay for street resurfacing, other routine infrastructure maintenance and capital improvements.

El Segundo used to be a pay-as-you-go city, paying for infrastructure maintenance and capital improvements with General Fund revenues. But that was before the safety unions became very active in City Council campaigns, hired their own bosses, and ratcheted up their salaries, benefits, and pensions to ridiculous and unsustainable levels. … Continue reading

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Email from Carol Wingate to entire City Council re Doug Willmore

From: Carol Wingate [cwingate@socal.rr.com]
Sent: Friday, February 10, 2012 5:05 PM
To: *ALL CITY COUNCIL
Subject: Doug Willmore

Mr. Willmore was hired by the council to improve the financial picture of El Segundo. With
fresh eyes and an outside perspective he followed directions. This process uncovered some
unwelcome facts that seem to be hard for the established political entities to accept. If,
as it appears, Mr. Willmore was fired for doing his job; the City Council might reexamine
their hearts to discover if their loyalties lie with the citizens of El Segundo or
Chevron.
I anticipate your response.

Sincerely,
Carol Wingate

Sent from my iPhone


Notes by Michael D. Robbins:

There were many good cause reasons to fire El Segundo City Manager Doug Willmore. However, he was fired without stating any of the good cause reasons, to reduce the City’s exposure to frivolous litigation. Even so, Doug Willmore filed frivolous lawsuits against the City of El Segundo (i.e., the City’s taxpayers), and personally against each of the three City Council members who did their duty and voted to fire him – Carl Jacobson, Suzanne Fuentes, and Don Brann.

Doug Willmore did not follow the direction of a majority of El Segundo City Council members, but instead catered to and followed direction from Mayor Eric Busch on important issues. His habitual lying to City Council members made it difficult if not impossible for them to trust him. His failure to follow direction, his poor negotiation results, and his written offers to the City employee unions with apparently unauthorized terms unnecessarily cost the City many millions of additional tax dollars per year.


References:Continue reading

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

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

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