Tag Archives: Small Town Big Oil

Dirty politics – Letter to the Beach Reporter by Dianna K. Day

Posted on March 22, 2012 by Mike

Dirty politics

Recently there have been some nasty reports by media outside El Segundo, presenting a one-sided view of supposed shady dealings by the city and Chevron. The purpose was to shock the audience, not present a thoughtful, balanced picture of questions about the company’s taxes.

What was shocking to me, as a lifelong resident of El Segundo and a Chevron employee, was the blatant misinformation, inaccurate statements wrongly presented as facts, and the lack of equal time given to those who didn’t share the anti-big-oil hysteria promoted by the reporters and producers.

It would have been nice to hear from the former mayors, community leaders and others who were troubled not by the idea of looking into Chevron’s tax history but by the rush to put a tax increase on the ballot without first fully investigating the facts. It would have been nice if the TV producers had interviewed those folks instead of an out-of-town political activist with no ties to our community.

Now there’s an unsigned ad in the El Segundo Herald encouraging voters to watch this biased, unbalanced “report,” which slams not only Chevron but a current City Council candidate, and then go to the polls. … Continue reading →

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The Firing of El Segundo City Manager Doug Willmore – Part 2

Posted on March 18, 2012 by Mike

By Michael D. Robbins
Former El Segundo City Councilman
Founder and Director, Public Safety Project

This is Part 2 of a 2-Part Article. The first part covered the controversy Doug Willmore created and the facts surrounding his firing. This second part covers the old 1994 legal settlement agreement to the MRC-Chevron-City of El Segundo tax dispute.

March 18, 2012

There has been much controversy surrounding the firing of El Segundo City Manager Doug Willmore at the special meeting of the El Segundo City Council on February 9, 2012. This controversy has been created by Doug Willmore himself, and by anti-business news organizations he enlisted to smear Chevron, Councilman Carl Jacobson, and the entire city of El Segundo. Carl Jacobson is the only City Council member who voted to fire Doug Willmore and who is running for reelection. Councilman Don Brann is not running for reelection, and Councilwoman Suzanne Fuentes is not up for reelection for another two years.

Regarding the MRC-Chevron-City Legal Settlement

I was on the City Council during the 1994 MRC-Chevron-El Segundo tax dispute legal settlement, and I know first-hand that the decision to approve that settlement agreement with MRC and Chevron was unanimous, legal, legitimate, and reasonable. And the decision was made in a public meeting. … Continue reading →

Posted in Doug Willmore's Great Chevron Shakedown, Doug Willmore’s Great City Shakedown, El Segundo Election Coverage, El Segundo News, Firefighter and Police Union Compensation and Pensions, Firefighter Union Corruption, Government Employee Compensation and Pensions, Police Union Corruption | Tagged , , , , , , , , , , , , , , , , , | Comments Off on The Firing of El Segundo City Manager Doug Willmore – Part 2

The Firing of El Segundo City Manager Doug Willmore – Part 1

Posted on March 18, 2012 by Mike

There has been much controversy surrounding the firing of El Segundo City Manager Doug Willmore at the special meeting of the El Segundo City Council on February 9, 2012. This controversy has been created by Doug Willmore himself, and by anti-business news organizations he enlisted to smear Chevron, Councilman Carl Jacobson, and the entire city of El Segundo. Carl Jacobson is the only City Council member who voted to fire Doug Willmore and who is running for reelection. Councilman Don Brann is not running for reelection, and Councilwoman Suzanne Fuentes is not up for reelection for another two years.


Candid photo of Councilman Carl Jacobson as he speaks with a constituent after the March 6, 2012 City Council meeting. Photo copyright © 2012 by Michael D. Robbins.

It is clear that Willmore is trying to get Jacobson unelected, possibly out of revenge, but more likely for financial gain at taxpayer expense. Willmore has filed a claim against the City, the legally required precursor to a lawsuit. Willmore did not turn in his signed release form agreeing not to sue the City within the time limit specified in his contract. Thus, Willmore has walked away from his six-month severance pay of more than $100,000.


Doug Willmore’s 3-page claim against the city of El Segundo, his former employer, as the precursor to a lawsuit.

After reading Willmore’s claim, and knowing much about the surrounding facts, it is clear that Willmore is trying to shakedown our city and its taxpayers for multiple millions of dollars. By pursuing frivolous litigation against the City, his past employer, in such a high-profile manner in broadcast and print news media, it appears that Willmore does not plan to get another job nor to work another day in his life. Willmore is alleging retaliatory firing and age discrimination, among other things. He is even demanding that the City pay for his psychiatric treatment, even if it is for a pre-existing condition.


A portion of page 3 of Doug Willmore’s claim form, and Doug Willmore at a City Council meeting. Graphic and photo copyright © 2012 by Michael D. Robbins.

Willmore has two allies and supporters on the City Council – Mayor Eric Busch and Mayor Pro Tem Bill Fisher. Busch’s term expires with the coming April 10 election, and he is not running for re-election. This will leave Willmore with only one ally and supporter on City Council, but he needs three to have a majority that will vote to give him a large “settlement” payout as a “gift of public funds” or “hush money”. Willmore must know plenty about Busch’s dealings with the city’s firefighter and police unions.

The safety unions gave Mayor Busch and Mayor Pro Tem Fisher thousands of dollars in campaign support, and received millions of dollars per year in excess and unsustainable compensation and pensions. Where else can someone make a thousand-to-one return on their “investment”? This might be viewed as a form of laundering of public funds into campaign money in a way that is incredibly efficient for the unions and incredibly inefficient for the taxpayers.

KCET SoCal Connected producer Karen Foshay knowingly and intentionally produced a propaganda hatchet-job show attacking Chevron (“BIG OIL”), Councilman Carl Jacobson, and the city of El Segundo (“SMALL TOWN”).

Despite all the fancy artwork and video production techniques, that does not guarantee that anything in Foshay’s KCET TV show is true. … Continue reading →

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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 →

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Candidate Works Hard for the City – Letter to the El Segundo Herald by Carl Jacobson

Posted on March 15, 2012 by Mike

False accusations are flying. It is unfortunate during this important time that I am forced to maintain silence about critical city issues. Due to pending litigation involving a personnel issue, there are many things that I am unable to discuss. Though it would be beneficial to my campaign to talk about the specifics, my responsibility to our city comes before my personal desires.

What’s behind the 1994 Chevron Settlement Agreement? Refineries use or repurpose almost all the product that comes into their facilities, utilizing their waste products to create energy sources and other products. The taxation structure of a refinery is unique because it uses its own source product to generate electricity. … Continue reading →

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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 →

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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 →

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

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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