Category Archives: El Segundo Tax and Fee Increases

Articles on proposed and actual tax and fee increases in the city of El Segundo, California, to pay for the wildly excessive and unsustainable firefighter and police union salaries.

A Message From Chevron El Segundo Refinery General Manager Frank Semancik

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 on A Message From Chevron El Segundo Refinery General Manager Frank Semancik

Are Chevron’s Taxes Too High?

By Michael D. Robbins March 15, 2012 Are Chevron’s taxes too high? Possibly. Fired City Manager Doug Willmore gave a PowerPoint slide presentation at the December 20, 2011 regular meeting of the El Segundo City Council. He claimed that Chevron … Continue reading

Posted in Doug Willmore's Great Chevron Shakedown, El Segundo Election Coverage, El Segundo News, El Segundo Tax and Fee Increases | Tagged , , , , , , , , , , , | 2 Comments

Long memory – Letter to the Beach Reporter by Mary Olinick

I laughed when I learned Jan Cruikshank criticized Michael Robbins’ “Candidate Ranking” letter. I will be voting for Robbins’ three top-tier candidates: Carl Jacobson, Dave Atkinson, and Dave Burns.

It’s not surprising Cruikshank supports Robbins’ bottom-tier candidates – Cindee Topar, Cindy Mortesen, and Scott Houston. Houston is allied with the firefighter and police unions. He took police union money and their endorsement in 2010. He read a script almost identical to the fire union representative’s script at the Feb. 15, 2011 City Council meeting, pressuring the city council to enact Measure P into law without letting the people vote on it. And Topar was campaign manager for a firefighter.

Cruikshank was the firefighter union’s candidate back in 1992. … Continue reading

Posted in Beach Reporter Letters, El Segundo Election Coverage, El Segundo News, El Segundo Tax and Fee Increases, Firefighter and Police Union Compensation and Pensions, Firefighter Union Corruption, Government Employee Compensation and Pensions, Letters to the Editor | Tagged , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , | Comments Off on Long memory – Letter to the Beach Reporter by Mary Olinick

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

Posted in Doug Willmore's Great Chevron Shakedown, El Segundo News, El Segundo Tax and Fee Increases | Tagged , , , , , , , , , , , , , | Comments Off on Excerpts from the March 1, 2012 El Segundo Herald Article on Chevron

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

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

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

Posted in Doug Willmore's Great Chevron Shakedown, El Segundo Herald Letters, El Segundo News, El Segundo Tax and Fee Increases, Firefighter and Police Union Compensation and Pensions, Government Employee Compensation and Pensions, Letters to the Editor | Tagged , , , , , , | Comments Off on What happened to pay-as-you-go? – Letter to the El Segundo Herald by Liz Garnholz

“NO” on P – Letter to the El Segundo Herald by Marianne Fong

“NO” on P

The firefighters’ union has financed a propaganda poll with many false claims to deceive voters into voting for Measure P. The pollsters falsely claimed firefighters are paid $100,000 annually.

The firefighters had average total annual compensation of $211,000 (maximum was $342,000), and average annual pension contributions paid by the taxpayers of $42,000 (maximum was $80,000). These figures don’t include Fire Chief Kevin Smith, who had total annual compensation of $358,000 including total annual pension contributions paid by the taxpayers of $84,000.

If Measure P passes, El Segundo will no longer have a Fire Department. L.A. County will provide our fire and paramedic services at a reduced level, without ambulances. … Continue reading

Posted in El Segundo Election Coverage, El Segundo Herald Letters, El Segundo News, El Segundo Tax and Fee Increases, Firefighter and Police Union Compensation and Pensions, Firefighter Union Corruption, Government Employee Compensation and Pensions, Letters to the Editor, Measure P - Firefighters Union Initiative | Tagged , , , , , , , , , , , | Comments Off on “NO” on P – Letter to the El Segundo Herald by Marianne Fong

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

Posted in Doug Willmore's Great Chevron Shakedown, El Segundo Election Coverage, El Segundo Herald Letters, El Segundo News, El Segundo Tax and Fee Increases, Firefighter and Police Union Compensation and Pensions, Firefighter Union Corruption, Government Employee Compensation and Pensions, Letters to the Editor, Measure P - Firefighters Union Initiative, Police Union Corruption | Tagged , , , , , , , , , , , , , , , | Comments Off on Save Our City – Letter to the El Segundo Herald by Michael D. Robbins

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

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

Measure P Costs More For Less – Letter to the El Segundo Herald by Michael D. Robbins

Measure P Costs More For Less

Voters must reject Measure P this April, or we will lose our local fire department, including firefighters, apparatus, and equipment; and we’ll pay more for less emergency services.

Measure P is not a merger of City and County fire departments, but a liquidation of the City fire department and a complete takeover by L.A. County. If Measure P passes, fire and paramedic services will be greatly reduced. El Segundo will permanently lose its three paramedic ambulances, because L.A. County does not operate paramedic ambulances, and El Segundo will lose its legal grandfathered status to operate them.

Residents will be forced to use and pay out-of-town ambulance companies, significantly increasing hospital transport times and costs in money and lives. … Continue reading

Posted in El Segundo Election Coverage, El Segundo Herald Letters, El Segundo News, El Segundo Tax and Fee Increases, Firefighter and Police Union Compensation and Pensions, Firefighter Union Corruption, Government Employee Compensation and Pensions, Letters to the Editor, Measure P - Firefighters Union Initiative | Tagged , , , , , , , , , , , , , | Comments Off on Measure P Costs More For Less – Letter to the El Segundo Herald by Michael D. Robbins