Don't Re-Elect Kit Bobko For Hermosa Beach City Council

"The idea that oil drilling is some inherently unsafe activity — I question that" 

- Kit Bobko

Here Are List of Reasons Not To Re-Elect Kit Bobko . . .

1)  Lead Negotiator of Illegal Oil Settlement
2)  Disruptive Behavior & Promotion of Personal Political Agendas

3)  Kit Bobko's Horrendous Public Voting Record

4)  Multiple Brown Act Violations

5)  Kit Bobko is Hiding Oil Related Expenses

6)  Kit Bobko Thinks Hermosa Beach Wastes Money Yet Wants $ By Oil Drilling?

7)  Kit Bobko Bulldozed His Colleagues Into Signing Oil Settlement & Silenced Them

8)  E&B Was Illegally Drilling Under Kit Bobko's Watch

9)  Kit Bobko's Hypocrisy About Transparency

10) Kit Bobko's Long History of Wasting Tax Payer Dollars

11) 15 Ways Kit Bobko's Leadership Is Not Impartial To Oil Drilling

Read these letters to the Easy Reader Editor 

Out with Bobko

Hermosa Beach city councilman Kit Bobko’s affection for the limelight has clouded his judgment over and over. His recent press release to the newspapers about the selection of Police chief was wrong. His judgment and his critical thinking process are way out of whack. He seems to be more interested in his name being published in the paper and heard on radio or TV than performing the duties of his city council post. His ego caused the city to retain a public relations firm to the tune of $10,000 a month and the city council has spent over $200,000 on this public relations firm over the last 20 months. Bobko wastes money further by going outside this highly paid public relations group and issues his own personal press release, touting his Mayors position for his pick for new Police Chief.

In doing so he went against city policy, a code of ethics and the established procedure for this city hire. He misleads the public as though his title of mayor was voted upon, which it was not. His need for media attention superseded all common sense. Worse yet, he does not understand that his actions actually cost his favored selection the job. The city manager would have appeared to be a stooge of Bobko’s had he gone with Bobko’s press release candidate for police chief. The reason the city council does not get involved in the selection of department heads is that it would lead to a poor selection process. Bobko knows this. He is currently serving as ceremonial mayor at the pleasure of his four other council colleagues. In addition to a resolution of censure, he should be voted to be removed by his other councilmembers as the ceremonial mayor as soon as possible.

Hermosa Beach has no use for such self-promotion and abuse of the ceremonial title of mayor. In November, the electorate can elect some less publicity oriented persons onto the dais.

Michael Keegan

Pure poppycock 

Hermosa Beach Councilmember Kit Bobko’s self promotional letter about how he was instrumental in ensuring “that our City was not overrun on the 4th of July” is pure poppycock. First of all, he alone cannot authorize spending hundreds of thousands of dollars for 50-LA County Sheriff’s Deputies, a “35 foot ‘jail bus,’ and mounted horse patrol.” Secondly, the real reason such significant resources are required is because Bobko and his council colleagues have tolerated a party atmosphere with rampant drunkenness and out of control people for years. Moreover, when the city allows July Fourth to begin with the “Iron Man” event that violates Hermosa Beach’s prohibition of alcohol on the beach, it sets the “agenda” for a day of out of control partying and drunkenness. Residents should ask themselves if a more reasonable solution would be to close all our alcohol serving establishments at 6:00 PM on July Fourth and also cancel the illegal “Iron Man.” That would probably stop the city from being “overrun” on July and cost a whole lot less than the city is currently spending on public safety for July Fourth

Fred Huebscher

Here are the people endorsing Kit From His Web Site  . . . 

• South Bay Chapter of the LA County Lincoln Clubs
• Former Congressman Steve Kuykendall
• Don Knabe, Los County Supervisor
• Michael DiVirgilio, Hermosa Beach Mayor Pro Tempore
• Jack Burns, Hermosa Beach School District Board Member
• George Barks, Former City Council Board Member
• Richard Montgomery, Former Manhattan Beach Mayor
• Bob Holmes, Former Manhattan Beach City Council Member
• Art Yoon, Former Hermosa Beach City Council Member
• Greg Breen, Former Board Member, Hermosa Beach School District
• Bill Sigler, Former Parks and Recreation Commission 
• Steve and Susan Blaco
• Danay DiVirgilio
• Doug Gneiser
• Bruce Greenspon
• Dorothy Harley
• Ken Hartley
• Manny Serrano
• Corinne Ybarra

Hermosa Beach Mayor Kit Bobko Offers No Apology & Smart-Ass Response

Bobko Offers No Apology & Smart-Ass Response To His Disruptive Behavior

George Schmeltzer Addresses Bobko Undermining Colleagues & City Manager

Kit Bobko Reprimand By City Council Colleagues For Destructive Behavior 

Kit Bobko Offers Censure Amendment "I Not Believe in the Easter Bunny"

Hermosa Beach City Council Must Agendize Their "Oil Neutrality" Closed Session Agreement To Avoid Brown Act Violations

See Howard Longacre's letter to the City Council received and filed on the June 24 meeting.

Hermosa Beach City Council Members Took An Oath To Protect & Serve Its' Residents

    
Hermosa Beach City Council Members Took An Oath To Protect & Serve

Chris Miller (Daughter of Famous Ski Movie producer Warren Miller) delivers a power speech to the City Council.  "You took at oath of office to protect and serve its' residents.  This is not what Hermosa Beach stands for and I do not want to be owned by an oil company.  The California Tide Lands Trust was founded to protected the Coastal areas above the surface and was not developed to sell out what is below the surface."

15 Ways The HB City Council Is NOT Being Impartial To Oil Drilling

Hermosa Beach City Council is Warned You Are Not Acting Impartial

In case you missed the meeting last night here is a summary of Stacey Armato, Barbara Ellman & Chris Prenter warning the Hermosa Beach City Council & City Attorney Michael Jenkins about the lack of impartiality with oil drilling.  Here are 15 excellent points they bring up that the City has not address and has simply ignored.  Are they acting impartial by not including our due diligence?  

1)  "Oil Drilling" is the proper term not "Oil Production" which makes it sound like you siding with oil.  Lets not "sugar coat" it because it makes it sound like you are siding with oil.

2)  Hermosa Beach web site discussing oil landing page is not properly updated.  It says you are waiting on the project application but also says you are reviewing it?   The project application is not properly displayed on the page.  No current information is posted and no way to notify what has changed.

3)  The illegal settlement agreement is buried in the site.  How about a quick click?  Its important component that needs more attention to detail and FAQs.

4)  City is encouraging the timeliness of the EIR encouraging a quick and efficient process and the project timeline is of critical importance.  Lets encourage the accuracy of the report not the timeliness.  Lets not speed up the process unnecessarily 

5)  As the City Attorney, Michael Jenkins should be going through the settlement agreement that is not properly reflected in the FAQs.

6) Web and FAQs do not say anything about giving the City Yard up which could be valued at $8-10M dollars.

7)  Web and FAQs do not not talk about a 35 year lease of the City Yard.

8)  If the ballot measure passes and there is no significant oil royalties we are obligated to pay $3.5M within 90 days.  How will the City pay for $17.5M if it does not pass?  City says on their web site "they will undoubtedly need to issue municipal debt to pay E&B."  How do we pay for it and you are scaring the residents by not explaining your plan.  What you are implying is that we will need to issue municipal debt and that scares the residents.  This is an overstatement because we have $30M in the bank and a $100M in real estate assets.

9)  Web site talks about gross percentage sales goes to the City and schools without discussing the Tidelands trust?  This is not true and illegal.

10)  We would like to see a much more impartial analysis of on the web site because you sit there and have no opinion on the oil project.

11)  E&B's propaganda machine has been advertising in the paper before a public hearing has been done is ridiculous?

12)  The community of Hermosa Beach does not own the oil.  Its out in the ocean and the resources of the City are not oil.  Our resources are the beach, ocean, parks, people and health and safety.

13)  Steve Layton has a poor environmental track record and no where does the City web site disclose his horrible track record.

14)  Oil drilling is banned in Hermosa Beach and does not say this on the web site.

15)  The planning application is hundreds of pages and hard to read.  Its not easy to read and has not been discussed in public.  You have to hire an attorney to understand it.

Here is the public information sharing slide in the video.

This is Tom Bakaly's slide on the public input process.  Michael Divirgilio is looking into a tracking document to inform folks about the changes they are making to the web site.  There is no way for anyone to know that they are adding any items.  Track document changes, adds and edits.  The web site is the minimum require to stay up to speed.

Kit Bobko of Hermosa Beach City Council Violated The Brown Act

Watch Kit Bobko Blatantly Violate The Brown Act in a Public Meeting

This meeting above was the first City Council's first attempt at a public meeting that did not go so well for them.  They tried sneak it onto the agenda of a School Board Meeting that was supposed to be about public safety and it back fired on them.  Preventing discussion of certain issues on the agenda is a Violation of the Brown Act.

Will one of the 5 City Council members crack and break the code of silence by November?  Or will the Citizens revolt and elect 3 responsible Hermosa Beach citizens who work for the Communities best interest not their own. We need to make sure that our elected officials loyalty is not divided by serving on board(s) or organizations where there can be conflicting interest.  We need to make sure that our elected officials are disclosing information, signing legal agreements, hiring reputable companies and City Attorneys that we can trust.

A lawsuit was filed in the town Sanford / Broome County, N.Y., whose town board has blocked discussion of fracking at public meetings.  This is very similar to what is going on in Hermosa Beach and the City Council trying to deflect responsibility to a regulatory process.  This video of Sanford, New York are what future meetings in Hermosa Beach are going to look like if the City Council continue to stand behind their illegal code of silence and not commenting the agreement or oil drilling.

The Natural Resources Defense Council and Catskill Citizens for Safe Energy argue that the board of the town of Sanford violated citizens’ right to free speech (Brown Act) when it voted unanimously to block any further discussion of the controversial natural gas extraction technique during the public comment sections of town board meetings. (See the video above.)

City Council Hypocrisy, Lies, Deception & Intimidation

Video of Hermosa Beach City Council Lies, Deception & Intimidation on Oil Deal

1)  Turn up the volume for City Attorney Michael Jenkins asks for $150,000 from City Manager Steve Burrell appropriation to defend Hermosa Beach for a trial that never happened.  Shouldn't this be investigated and itemized? 

2)  Listen to the entire City Council avoid the public outreach to inform the public of their settlement.  This was held on the day the settlement was announced before the opposition was unleashed.  Michael Divirgilio avoids getting involved with the outreach program because he wants Jeff Duclos to do it.  Listen to Jeff Duclos avoid getting involved with the public forum to discuss the settlement.  There has NOT BEEN ONE PUBLIC to discuss the settlement or ask questions to the City in over a year.  

3)  Listen to the hypocrisy of Michael Divirgilio and Kit Bobko try to intimidate the City Treasurer about doing an RFP when he received 19 proposals.   The oil settlement was the largest deal in the history of the City and the deal was negotiated and personally sourced by Bobko and Divirgilio.  This is hypocrisy at its finest.  

4)  Turn up the volume for George Schmeltzer who rips the City Council a new one for hiding information.  

"E&B Won't Fool Hermosans" - Howard Longacre Letter

The Beach Reporter Letter February 6, 2013

Steve Layton, president of E&B Natural Resources, condescendingly portrayed 12 Hermosa residents who spoke out at a recent meeting as just those “remaining concerned” of E&B’s plan to drill 35 oil wells in city (Jan. 31 Beach Reporter letters).

Those residents and others are again having to give of their own valuable time and expenditures to challenge the insanity of drilling oil wells next to million-dollar homes in tiny Hermosa Beach. Now they’ve received this latest insulting, ignorant, and self-serving Kool-Aid response from Layton.
Why wasn’t Layton personally in attendance at the council/school board meeting when an E&B item was on the agenda? Is The Beach Reporter instead to be printing Layton propaganda responses every time Hermosa residents speak out in a public forum regarding E&B’s less than honorable deal, as made and signed secretly with Hermosa’s City Council?

E&B, with the outrageous secret help of Hermosa Councilman Michael DiVirgilio and Mayor Kit Bobko, and probably a few others behind the woodwork, has slickly weaseled its way into Hermosa Beach, a 21st-century city with stated goals fostering health, being green and carbon-neutral. And now E&B is to be drilling toxic oil wells?

E&B’s pitchman, Layton, has now moved himself into Hermosa Beach to better manipulate its 1.3 square miles of beach, ocean, residents, businesses and home-owners to E&B’s needs. E&B evidently views Hermosa’s electorate as being stupid and easily conned into returning to the 19th-century’s oil-drilling greed and ugliness.

If Layton actually believes Hermosa residents will be fooled into turning backward from a forklift pallet-full of smoke-and-mirrors documents, glossy PR and tempting elixirs to be dumped at their doorsteps and filling their mailboxes, than perhaps he needs to wake up and smell the coffee. Layton’s stuck in a dream and seems to have no clue that what he heard at the Jan. 23 meeting from those residents was merely the tip of the iceberg that E&B has so recklessly navigated into.

Howard Longacre
Beach Reporter Letter

Shame On You Hermosa Beach City Council. 13 Minutes of Shame

Jeff Duclos Promised & Failed To Hold A Public Meeting

What Happened to The Information Campaign You Promised Mayor Jeff Duclos?

Hermosa Beach City Council Promised & Failed To Hold One Public Meeting

Kit Bobko Admits "Taking Heat" Over Oil Settlement

Kit Bobko and Michael Divirgilio finally admitted to the public they are "taking heat" for the settlement that THEY put together themselves without a public forum. A back room deal, without conflicts of interest disclosed and only 1 oil company participated in this process. Watch Kit admit his guilt here.  Why are they acting like victims?  The lack of insincerity is appalling.     

If you want the details of why they are taking heat read why the oil settlement is not legal.  

The Hermosa Beach Oil Settlement Agreement is Not Legal

Why has no one on the City Council read the Macpherson mock jury trial documents or transcript?  The threat of bankruptcy was the basis for was for a $17.5M settlement and extortion vote and no one has read the documents?

Before you read this you should review the contract agreement comments. In a properly negotiated & compromised settlement agreement, "neither party should be happy"with the outcome.  In this settlement agreement Hermosa Beach tax paying residents lost while the lawyers, City Council and oil won regardless of the outcome of the vote.  Here are some very important questions for our proud elected officials: Council Member Patrick (Kit) Bobko, Hermosa Beach City Attorney Michael Jenkins and Michael Divirgilio.

Drilling Down Article 

1)  If there was such a real likelihood that Macpherson Oil would win a court award for HUNDREDS OF MILLIONS OF DOLLARS ($750 million,), then why did Macpherson Oil settle for a mere $30 Million or 4% of his asking price?   Did Macpherson believe that, even if they won the jury trial, they would likely receive substantially less than $30M, or probably even NOTHING (see below)?  

2)  Was the 1995 “STOP OIL” ELECTION FLAWED because the “City Attorney (Jenkins) Impartial Analysis” in the election pamphlet failed to advise/warn voters of the real possibility of a Breach of Contract lawsuit to recover POTENTIAL LOST PROFITS? Were Hermosa Beach voters properly informed about the potential consequences, including tremendous financial liability, of the Proposition E vote in 1995? What law firm was providing City Attorney services to Hermosa Beach during this decade/period of time? Weren’t Bobko and Jenkins both employees of this same law firm - Bobko's current employer RWG Municipal Law Firm (of which he is now a Partner)?

3) Until 2001, Hermosa Beach City Attorney services were being provided by (Bobko’s & Jenkin’s) RWG Municipal Law Firm, represented by RWG Employee Michael Jenkins. From 2001 and onward, Michael Jenkins law firm began providing City attorney services to the City, including providing oversight services on the law firms defending the City from the MacPhersson lawsuit.  After the MacPherson lawsuit was filed, why didn’t RWG admit there had been and omission/error, and advise the City to hold a new election? (The 1995 measure passed by a mere 565 votes). Why didn’t Jenkins (after he/his law firm began providing City Attorney services to Hermosa)? Why didn’t Bobko (after being elected to the City Council)? 

4)  Could damages even be awarded to MacPherson by a jury (under directions provided by the presiding judge) due to failure of Macpherson Oil to make reasonable efforts to “mitigate damages” over the past 15+ years, as required under California law, by insisting on a new vote with a new proper City Attorney Impartial Analysis?  Did Macpherson sue because he could NEVER meet the TERMS & CONDITIONS of the LEASE imposed by the Coastal & State Lands Commission?  Did Hermosa Beach trial lawyers including Michael Jenkins purposely ignore evidence that could have won or minimized damages?  

5) Because of Bobko's associations with RWG Municipal Law Firm and Michael Jenkins, did Councilmen Bobko have a “CONFLICT OF INTEREST” in negotiating and voting on the settlement agreement? Shouldn’t Bobko have RECUSED himself, as required under California law from all such activities.  Has Bobko violated the Brown Act?  

6)  Are these the reasons the Settlement Agreement was negotiated by Bobko in secret, and voted upon behind closed doors without public participation? Was Bobko just protecting the reputation of this law firm, and his friend Jenkins, to the detriment of the City? Why was the settlement agreement not discussed in public BEFORE City Officials signed the contract with a new 3rd party E&B before the scheduled jury trial in April of 2012? Don't neighbors heavily impacted deserve "a say" in that their property and lives could be heavily impacted? - That seems to be normal business practice with Tattoo parlors or new bars, etc

7) Is this the reason that this behind the closed doors settlement includes a requirement that the 1995 "Stop Oil  election be held again"?  By wiping out all City reserve funds if not passed. Are there also other implications with regard to attorney "errors and omissions"insurance and possible reimbursement to the City for its approximately $4M in legal defense costs?

Continue to read a list of more questions that need answers.

Matt Damon Promised Land Movie Review

We attended the advanced screening of the Promised Land movie on Tuesday, December 11 in Hollywood and here is our review.

Promised Land is one of the most informative & entertaining movies about real life and local economics in the United States today.  Just when you think you understand all of the characters in the movie there is a big twist to the story at the end.  The twist to the story at the end of the movie will make you question every source and quote you hear in the media and from City Council promoting oil and gas revenue benefits and jobs.

Here are some oxymoron examples our City Council is currently using in Hermosa Beach "environmentally safe oil drilling" and "carbon neutral".   These hypocritical marketing buzz words should make you question the agenda of City Council and why they are unwilling to hold a public debate on the oil drilling issue.  

The movie also shows you how divisive money and oil can be on a community.  It tears apart a small town that lacks intelligent political leadership and shows you the hidden corruption oil companies use to influence politicians.  Just like Hermosa Beach, there are hardly any educated people doing research or who understand the risks of doing oil drilling so close to homes.  In the movie a professor eloquently presents the risk factors of drilling to an audience at a public debate and turns the tide the oil drilling project.

The movie also shows you that our politicians have their priorities in the wrong place and should be thinking about our health and safety first before creating jobs.  Not surprising a politician is willing to say anything for some cash presented and favors.

It makes you wonder why the Hermosa Beach City Council is under a confidentiality agreement (page 4) and never presented the settlement agreement in a public forum for debate.  Sounds pretty corrupt and suspicious to me.  

Some critic lobbying groups have tried to discredit the movie by saying Middle East OPEC money has financed the movie  . . .

After all, the movie "is financed in part" by the United Arab Emirates (UAE), an OPEC member country.   

This is a stupid argument since 47% of the 27,000 fracked wells in the United States were for oil and 53% were for gas.  Fracking is not just about gas.  See DrillingMaps.com database for more details on fracking locations in US.

Please like Promised Land movie on Facebook.

Here is the the Promised Land Movie Trailer. 

Here is some ridiculous propaganda trying to taint the movie claiming a conspiracy about Middle East oil money is behind the movie exposed fracking to promote oil.  Excuse me . . . but there minority investments of Middle East oil money in just about every company in the United States and these claims are ridiculous   For Matt Damon to claim he didn't know where some of the money came from is completely legitimate.  

Josh Fox of Gasland discusses his view on the film about the oil and gas industry taking away and exploiting what we have work so hard to build.

Hypocrisy of Councilmen Kit Bobko & Michael Divirgilio

Listen to Hypocrites Bobko & Divirgilio Rant About Transparency

Smart financial move - Beach Reporter Letter From Howard Longacre - October 18, 2012

During the Oct. 9 Hermosa Beach City Council meeting, all concerned had to again endure the self-righteous, condescending, bullying insults and obstruction from Councilmen Michael DiVirgilio and Patrick Bobko regarding a revised banking relationship with the Bank of America.

These two sneaky councilmen owning no property, home, or business in Hermosa Beach, having no historical roots in the South Bay, having both moved and rented units here after briefly renting in Redondo (obviously to use Hermosa Beach for their political self-aggrandizement) have both, more than worn out their welcome.

DiVirgilio and Bobko's badgering questions and ridicule on Oct. 9, nauseously mocked a well-researched revision to the long-neglected banking contract. Hermosa Beach will now see its present $24,000 yearly banking charges completely eliminated. And additionally with new cash credits to be received into Hermosa's account; a net savings to Hermosa's treasury of over $140,000 during the next five years, and without a necessity of expending $75,000 to change banks.

DiVirgilio and Bobko insulted virtually everyone with their pre-planned, disgusting and despicable attacks. They seemingly even elicited an Executive Director of the Hermosa Beach Chamber of Commerce (conveniently a local officer of a banking corporation appropriately rejected from consideration) to complain at the meeting.

DiVirgilio and Bobko's attempt to deceive and manipulate the minds of the public and press with their disingenuous drivel regarding "transparency" and process, was just more illustration of their increasingly offensive and self-serving behavior that wastes and disrupts council meetings costing several thousand dollars per hour.

Much appreciation for this successful new banking contract belongs to Mayor Jeff Duclos, Councilman Peter Tucker, Councilman Howard Fishman, Interim City Manager John Jalili, City Manager Tom Bakaly, the city's finance department staff including the deputy city treasurer, and especially City Treasurer and the financial officials of neighboring cities and agencies who freely gave of their expertise and wisdom.

Howard Longacre 

Bobko and Divirgilio are the same two guys that negotiated (without a public hearing) a deal that is not legal and they have conflicts of interest along with other City officials.  The hypocrisy of Hermosa Beach City Councilmen Kit Bobko and Michael Divirgilio is appalling.  Only 1 only company bid on the deal and they made the city borrow $17.5M with no public forum or RFP. A grand jury needs to investigate what is behind their confidentiality agreement. This video is from the Octorber 9, 2012.  Read more on the top reason this is a bad oil deal for Hermosa Beach.

The City Treasurer was anything but nontransparent taking bids from 19 banks and shared it with the public?   You took a bid on the oil deal from a friend Gary Brutcsh who sourced the deal to you?  Transparency?  Your untrustworthy voting record also speaks for itself.

Request for Open Forum to Discuss Illegal Deal Denied

Its a Legal Issue and Not a Voter Issue

Hermosa Beach City Council Voting Record

Hermosa Beach City Council Voting Record

Kit Bobko & Michael Divirgilio are the dissenting votes or absent for all of these City Council Meeting votes?  

1)  Voted 3-2 No on Outsourcing Parking Meters

2)  Voted 3-2 Yes Hiring Tom Bakaly as new City Manager

3)  Voted 3-2 Yes to Ban Polystyrene
4)  Voted 4-1 Yes Banning Smoking on Strand & Pier Plaza
5)  Voted 4-0 Yes (Bobko Absent) Banning Smoking on Beaches
6)  Voted 3-2 Yes Approval of Bank of American Banking contract
6)  Voted 3-2 No Suspend City Treasurer Cohn who was a victim of extortion.

Oil Drilling Settlement Negotiations

The City Council seems to have a clear divide on most voting issues in recent months as described above.  However, I often have to scratch my head to understand the logic behind some of the dissenting votes in recent months.  Bobko and Divirgilio are clearly working as a team and it all seemed to culminate immediately after both launched a PR campaign to promote their oil settlement.  The big question is:  Why were the two of these guys negotiating our oil settlement deal together?  Shouldn't they have had Duclos, Fishman or Tucker in the room negotiating? Neither Bobko or Divirgilio own a home in Hermosa Beach.  It would have been impossible for a third City Councilman to participate in the negotiations because it would have been in violation of the Brown Act.  Were the residents represented properly?  I don't think so.  What business, lobbyists or people are motivating these two individuals to make make their voting decisions or press their unpopular agendas?

Outsourcing Parking Meters vs Replacing With Credit Card Machines

I think many residents who are disappointing about the City not even considering outsourcing are missing the point of Duclos, Fishman and Tucker voting no.  However, the City can always outsourcing at any point in time but lets take some baby steps and install credit card machines that we own first.  Some of the high salary and union problems might naturally go away over time.  90% of the problems can be solve by installing credit card machines and that does not require outsourcing.   The City currently collects $2.5M per year from coins and who knows we might be about to double this to $5M simply by putting in credit card machines and managing the price per spot during peak hours.  What if we charge $5 per hour for parking near the pier during peak hours.  Hint, hint . . .  this might control some of the alcohol related problems of people flooding into our city.  Controlling our own meters with credit cards is not that hard and Manhattan Beach has already demonstrated they can do it profitably.

Kit made faulty parallel assumptions that it works for Newport Beach, why not in Hermosa?  His PR was recognized in the national media blaming $100,000 meter maids as the problem?  Why did Kit conveniently leave out that installing credit card machines would have $0 cost to the city and would be profitable immediately.  This does not require outsourcing.  So, what his suggestion to outsource politically motivated or does he have the best interest of our city at heart?  Does he or his law firm RWG have any political ties to the large outsourcing firms that manage parking meters?  Does Kit once again have a conflict of interest he would like to explain?  Was he motivated to get a "deal" in return for some political donations down the road.

Kit routinely makes statements and negotiates deals that are not backed with any financial analysis.  Kit also does not appear to see the big financial picture or have a cohesive fiscal strategy as it relates to the affect on the community.  Kit is not a property owner and has no skin in the game.  He simply seems to look for revenue opportunities or ways to save money to further his political platform.  I wish Kit would simply more rational decision based on what is right for the community and not based a political ideology.  I am a conservative voter and thinker myself, however, I don't agree with much Kit's thinking or ideas as they pertain to what is best for our community.   

Councilmen Howard Fishman said the city should move immediately on replacing coin-operated meters with credit card parking meters to solve 90% of the problems. City Treasurer wrote a memorandum to the council encouraging the installation of credit card-accepting meters as other municipalities have done in order to increase funds and efficiency.  “With credit card meters, revenue goes up overnight,” Pete Tucker said.   Former Police Chief Greg Savelli, who now runs the parking enforcement department of the Los Angeles Department of Transportation, also spoke against outsourcing, saying the service the officers provide “goes beyond the balance sheet.”

“What we have now is fantastically expensive,” Kit Bobko said who seems adamant about cutting costs and saving money no matter what the outcome.  Outsourcing to save money or outsourcing to generate (oil drilling) is going to be a common platform for Kit to propel himself to a higher political office.  Kit gave no credible financial arguments justifying his outsourcing position.

Hiring Hermosa Beach City Manager Tom Bakaly

"First, let me say that I think without question that Tom was an impressive dude, and I think that he provides a lot of earned and demonstrated skills that meet our needs and that match quite nicely with our uniqueness," said Councilman Michael DiVirgilio.  Council votes 3-2.

"In Hermosa Beach, we're whistling past the graveyard because we are not having any financial troubles yet,” Bobko said. “We weren't going to stand firm and ask of our leader, the person who is in charge of our city's staff, to do what we want the staff to do, which is to pay for his own first contribution. That is deeply disappointing and I think a failure of leadership for this council…

I don't think either of these guys have much experience running a business or hiring and firing people.  My philosophy has always been to hire the best CEO you can get and pay him top dollar.  There are a lot of problems in the City right now and we need a strong, competent, financially oriented person to do the job.  I am confident Tom Bakaly was a great hire and will help turn the City around that has been neglected in many areas.

Banning Polystyrene in Hermosa Beach

Bobko and Divirgilio have been routinely voting together.  Bobko is a Registered Republican and Divirgilio seems to be a Democrat having worked for Jane Harmon.  However, the two of them seem to be singing to the same song when it comes to local voting matters.  They also don't seem to be able to sway the other 3 council members very often on their views.  Both Bobko and Divirgilio were dissenting votes (3-2_ as well on Hermosa Beach polystyrene ban.   This was shocking since Michael Divirgilio once led the Green Task Force in Hermosa Beach and pounded the table in his campaign about a City that needs to become "carbon neutral".

Banning Smoking on Strand, Pier Plaza & Beaches

It goes without saying who was the lone voter in the 4-1 vote to ban smoking on the Pier and Stand. Kit Bobko does not support banning smoking on the Pier or Strand.  Kit Bobko was also conveniently absent for the 4-0 that banned smoking on the beaches.  Does he have your health at interest or his political views?

Hermosa Beach Renegotiates Banking Contract First Time Ever Recorded

Bank of America has been the Bank of Hermosa Beach for over 40+ years. It would have cost the City over $100,000 to change banks.  Also, Treasurer Cohn renegotiated the current contract for the first time ever and was not touched by John Workman prior Treasurer.   Hermosa Beach was paying $24,000 per year in banking service fees and a $28,000 rebate?

Bobko and Divirgilio Accuse Treasurer Cohn of Sloppy Non-Transparent Work?

Sloppy?  Transparency?  Do Mr. Divirgilio and Mr. Bobko have a personal issue with Treasurer Cohn?  Aren't they being hypocritical about the City Treasurer lacking transparency in the bank bidding process of 12 banks? Correct me if I am wrong but you are the same to 2 councilmen that negotiated a $17.5M settlement with any transparency and 1 oil company? They seem to think the backroom oil deal is justified because of the ongoing litigation but you did brought in a 3rd party without any bidders. Their lack of due diligence and transparency on this deal is appalling and speaks for itself. We are talking about saving money in a banking relationship of $50,000 per year in banking fees vs a $17.5M check they wrote without any bidders while jeopardizing the health and safety of its citizens. I think the two of them have some explaining to do.  Their hypocritical voting record speaks for itself.   E&B loaned the City of HB $30M to settle the lawsuit with Macpherson. How many companies got to bid on this? Only 1 company sourced by Gary Brutsch and Michael Divirgilo and Kit Bobko. Why doesn't the LA Times investigate this?

Former City Manager Steve Burrell Unretires to Manage Oil EIR

Steve Burrell's Retirement Party Two Months Ago April 5, 2012

At the May 22, 2012 City Council Meeting, City Officials are set to approve a Professional Services Agreements with Ed Almanza & Associates and Stephen R. Burrell for consulting services to augment staff in processing land use entitlements and an Environmental Impact Report in connection with an oil drilling project.

Here is a letter to the City Council regarding this consulting agreement from long time resident Barbara Guild who beat oil drilling in 1957.  Barbara Guild has also done an extensive review on the agreement signed by Hermosa Beach and suggest that you read her oil agreement comments here.

Barbara Guild's Letter to City Council of Hermosa Beach

Dear Mayor Duclos, Councilman Fishman, Councilman Tucker, Councilman DiVirgilio, Councilman Bobko,

STOP and THINK before you go forward tonight and inappropriately approve not one, but two of the following items:  “Agreements for Consulting Services to Augment Staff in processing Land Use Entitlements and an Environmental Impact Report in Connection with an Oil Drilling Project.” DO NOT VOTE FOR THESE TWO AGREEMENTS!!! 

I have lived in Hermosa Beach for 64 years, and I am very interested in maintaining the flavor as well as the environment of our city. I actively defeated the Shell Oil Co. in their proposal to drill for oil in our tidelands in 1957. And I spoke to the Council, March13th, following the signing of the current agreement with E & B, where I stated that we are now starting with a clean slate and must realize this fact. 

The people of Hermosa Beach should be allowed to know which firms are bidding for the opportunity of preparing the necessary Environmental Impact Report. It should not be given to the first group that comes along. Allow those of us who are most interested in protecting our environment to come up with suggestions of who to engage. We have many environmental issues that need addressing, and a two-man group from Orange County, with no office on record, only a P. O. Box, should not be signed up without further consideration and public input.

The Settlement Agreement you signed, March 2, 2012, limits, to $50,000, the amount of money E & B will provide to reimburse the City for only these THREE items from (Paragraph 4.4 a):

1) The EIR,

2) The CEQA 

3) The Election to rescind the Oil Drilling Ban.

Former City Manager, Steve Burrell could earn $168,000 for each fiscal year (plus expenses), and the preliminary estimate for Almanza & Associates is $138,000. This would leave nothing to pay for the election, if it’s ever called.   Do you really think that E & B is going to pay for the contracts you might sign tonight? Please seriously consider your vote!

Yours sincerely, Barbara Guild

P.S. Here is Paragraph 4.4 of the March 2, 2012 Agreement the City made with E & B:

4.4 a. E & B’s Obligations Following Closing a. Reimburse City for the cost of preparation of an environmental impact report or supplemental environmental impact report (EIR) pursuant to the California Environmental Quality Act (CEQA) based on a Project description provided by E & B, should such an EIR be prepared and the cost of conducting a special election NOT TO EXCEED $50,000 as provided in Paragraph 4.6 (a). (Emphasis added). We are concerned why the city staff would need "assistance with processing the development application and other necessary entitlements" since this is a technical and straightforward procedure that shouldn't require a specialist consultant to accomplish. Unfortunately, Mr. Burrell placed a political cloud over his head by choosing to retire when he did. Had he stayed on longer, this contract would not be necessary. Although the city is not paying for his services, it has the appearance of double-dipping. Those opposing oil development will make hay of this which may very well distract from the serious issues of determining the safety of this project and proposed financial return to the city.

We would like to hear some details on why these people were chosen and what their qualifications and expectations are.  This comes from City Officials like Michael Divirgilio who is sounding the horn on more public transparency which I think is good.  Some questions I have for these individuals:

1) What are the details of this consulting agreement?

2)  How much are they getting paid and by Hermosa Beach?

3)  What is their history with the project, E&B, oil or lawsuit?

4)  What is their professional experience managing processes like this?

5)  Do Steve Burrell or Ed Almanza have any conflicts of interest?

6)  How will this facilitate the promise from City Council about making the EIR process public?

7)  Are any city residents involved in the EIR process?

8) Why are the we, the citizens, paying for this? Why isn't this cost being underwritten by the oil company? Or are we concerned that if they pay for it we won't get legitimate answers?

Please add your comments here. 

Michael Divirgilio's Beach Reporter Letter

Michael Divirgilio's Letter to Beach Reporter & Easy Reader

Transparency Needed

Michael Divirgilio

As a public entity, the City of Hermosa Beach goes to great lengths to publicize its decision making process whenever outside vendors are hired or public money is spent. We do everything possible to demonstrate what we are doing and have public discussions about why we are doing it. We did this for Pier Avenue street repairs and before building beach restrooms. We did it before hiring a website designer and we’re doing it now as we hire a waste hauler. We do it every time.

During last week’s City Council meeting I proposed implementing the same process as we begin hiring a new bank. Of all the things we should evaluate publicly, this seems like the most obvious since our banks will hold millions of dollars of the city’s money.

Only Councilman Kit Bobko thought this was a wise idea, keenly suggesting that what we needed in this process was “transparency.” Alarmingly, none of my other colleagues on the City Council were interested in public review or debate on this issue.

No doubt, we should have instituted this level of oversight a long time ago. But nonetheless, now that my proposal failed, it means our next bank will be evaluated and hired by one person: our new city treasurer, behind closed doors, without public input, without City Council oversight. The city’s funds will move from bank to bank without any oversight or public review at all. This is not how we do business in Hermosa Beach.

This is public money. A city treasurer is a public official, acting on the public’s behalf. No matter who the person, it is neither prudent nor responsible for a single individual to make financially driven decisions like this. The public and City Council should be involved at every step.

As your city councilman I will do everything possible to bring these background details to light and create standard operating procedures moving forward.

I was recently inspired by a Hermosa resident and Los Angeles Times reporter who won the Pulitzer Prize for breaking the Bell, California, salary scandal. He set a new standard for government transparency across the country.

Let’s show the same kind of leadership by setting a new standard for transparency in Hermosa Beach.

Michael DiVirgilio

More Questions That Need Answers

Continued from Questions That Need Answers:

Below is an ongoing list of questions I am compiling from Hb residents on this issue.  Email me if you would like to add something.

8)  Many former City officials including former councilmen Sam Edgerton questioned in 2008 whether the city’s lawyers have ignored a line of attack that he believes could turn the legal tide back in Hermosa’s favor. Why was this never done and why are many of these officials furious of the current settlement? Why are current City Officials telling residents they will not take a position for or against oil drilling in the current settlement? Are they working for HB residents or their own interest? Read Easy Reader Article from 2008

9)  Do the deal leads Jenkins, Bobko & Divirgilo have any ‘skin in the game’? Do they have property value to protect or do they just simply rent temporarily in Hermopsa?  They have demonstrated that they are interested in higher levels of public service (above the City). Do they anticipate receiving future financial support from the Oil Companies to assist them in achieving their political ambitions? Kit Bobko, ran for Congress in 2011 to fill Jane Harman’s seat in a special election and finished in 7th place with 3.6% of the vote.  Michael Divirgilio was a Congressional Staffer for Rep. Jane Harman.  

10)  Why is Hermosa Beach spending money on a PR Firm,  Fiona Hutton & Associates  and how much is the city spending on this new endeavor? Don't we have elected officials on the City Council who do PR as a profession? Why aren't all Council members speaking for themselves, rather than just "going with the flow"? Why did the CIty hire a PR agency? What is their exact role? What is the cost of the PR agency? 

11) Why did you settle at $17.5 million & $3 million? What was the magic number and why?

12) Did you have a plan in place to pay the $17.5 million or 3 million? At what price did you have a plan in place to pay the settlement?

13) With the 6th street Yard being used for oil drilling it would be lost to the city for use.  What would the city do without this lot for city use?

14)  What is the City Yard lot worth? Could we sell it to help cover the 17.5 million?

15) What is it going to cost for extra emergency services personnel, equipment, and training? - Who is paying for it? Do we have to raise salaries for specific certifications of emergency services?

16) The tower is going to be over 135 feet tall. It is going to be in the line offsite of many residents. This devalues homes. Can the city be sued for the devaluation of their home?
The oil wells will cause issues with:

• The beautiful views from homes
• Air Quality (So much for the No Smoking signs along the strand) 
• Noise pollution 

17) The 2008 Chatsworth train crash happened when the conductor was texting while managing the train. 25 people were killed, 135 were injured with 46 being critical! My friends mother was in this accident. She was seriously injured. There is a cap on the amount of payout for the lawsuit at $200 million. She cannot even get her medical bills paid. With that said you are saying we would have had to pay $750 million no matter what while a train wreck that killed 25 people and injured 135 others cannot get more than 200 million!

18) What happens if there is an oil leak in the bay?  Is the City of Hermosa Beach on the hook for anything? How would this devalue not only Hermosa Beach homes but all of the homes in the bay?  Could there be a civil suit?

19) There is talk of "revenue share" from the oil wells.  Can we not pay the money and have the money go towards the $3 million first then take the revenue sharing?  What are the projections of the revenue sharing?  This should have been done long before any settlement happened! The biggest question is what can the money legally be able to be used for! There have been many statements that the money cannot actually go towards the school systems. This is something your lawyers should have advised you of before any settlement happened. The lawsuit has been going on long enough someone should have known and or have an answer.

20) Who is auditing the revenue coming in from the oil?  Do we now have to pay people to manage this and at what cost?

21) What happens if there is a disaster and or someone is killed?  Is the contract null and void immediately?

22) How safe is this type of oil drilling in case of an earthquake or tsunami? At what size of earthquake or tsunami do we run into an additional disaster?

23) The homes they drill under do they get revenue from the drilling and who has mineral rights? What happens if their foundation and or other issues appear in years to come from the earth under them moving?

24) Is the oil company using funds to get the votes to drill in Hermosa? If so did you know they would put money into the City of Hermosa to promote oil drilling?  What businesses in the city stand to benefit from oil drilling?

25) Kit Bobko and Michael Divirgilio are not home owners in Hermosa Beach. You do not directly pay taxes for the homes in Hermosa Beach. If you owned a home nest to 6th street before the settlement how would you feel? Would you sell your home? Why haven't you bought a home in Hermosa Beach?

26) If we vote no to the oil drilling your letter states: "$17.5 million equates to a liability of $2,500 per parcel." Are you going to bill the citizens this amount if the drilling is not approved? What if I moved into the area after the lawsuit and was not notified about the lawsuit? Do I still have to pay? The bigger question is as renters are YOU personally going to pay $2500 towards the liability you have committed to the citizens of Hermosa Beach?

27) What are the solutions to pay $17.5 million? How much money do we have in the bank? What assets does Hermosa Beach own? Can we get a bond from the state of California? What research have you done to figure out how to pay back any amount let alone the $17.5 million?

28) Now that you have settled the lawsuit what side are you on? I feel that you have drawn a line in the sand and now you should state whether you are for drilling or against drilling. This is only fair to the citizens of the city. What are the pro's and con's from each of your perspectives?

29) How late can drilling take place? Is it 24/7/365? How noisy is it? I can hear the Redondo Power Plant at 4am release steam that practically shakes my windows. Will we have any noise at all and if so how loud and at what times?

Email me if you would like to add or change something to this list. 

Why Did HB City Hide Settlement Agreement?

See For Yourself on HermosaBCH.com

I downloaded the full settlement agreement from the Hermosa Beach web site on Sunday night on my iPad. Yesterday, I started receiving emails from people asking "where is the full legal agreement on the Hermosabch.org web site?"  I responded its on the web site where I downloaded it Sunday night.  To my surprise it was removed at that is a FACT.  If someone tells you that they didn't remove it, kindly ask them why they buried it?  Why would you remove it from where all the Macpherson settlement documents are stored?

I would like to think this is just a mistake but it just doesn't smell right and I question whether they are making changes to the agreement.  Here are some tough questions to ask Hermosa Beach City Officials after reading the agreement.  Once again more disclosure and transparency is needed by our elected officials since there hasn't been a public forum on this topic for almost a decade.

Why would the city take the agreement down and bury it here where no one can find it?  We have taken the liberty of posting the document here on Macpherson Settlement agreement on our web site. Please note the date of this post, just in case the city replaces the document.  This screen shot above was taken on Friday, March 9 at 8AM.

Did Our Elected Officials Violate The Brown Act?

The Ralph M. Brown Act, was an act of the California State Legislature, authored by Assembly member Ralph M. Brown and passed in 1953, that guaranteed the public’s right to attend and participate in meetings of local legislative bodies.  How many open forum meetings did the Hermosa Beach City Council have on this issue in the last 10 years?  Zero.  In fact, all negotiations and discussions were in a closed session and nothing was disclosed to the public until the deal was done.  Not only that but if you read the Hermosa Beach Macpherson settlement agreement it appears our officials are under a non-disclosure agreement and confidential information is being withheld.

Throughout California’s history, local legislative bodies have played a vital role in bringing participatory democracy to the citizens of the state. Local legislative bodies - such as boards, councils and commissions - are created in recognition of the fact that several minds are better than one, and that through debate and discussion, the best ideas will emerge. The law which guarantees the public’s right to attend and participate in meetings of local legislative bodies is the Ralph M. Brown Act.

While local legislative bodies generally are required to hold meetings in open forum, the Brown Act recognizes the need, under limited circumstances, for these bodies to meet in private in order to carry out their responsibilities in the best interests of the public. For example, the law contains a personnel exception based on notions of personal privacy, and a pending litigation exception based upon the precept that government agencies should not be disadvantaged in planning litigation strategy. Although the principle of open meetings initially seems simple, application of the law to real life situations can prove to be quite complex.

$1B+ Destruction of Real Estate Wealth

This picture above precisely why homes are so much cheaper in Huntington Beach, CA.  A $1,000,000 home in Hermosa Beach would likely be 25% less if it were based in Huntington Beach.  Most speculate its because of the widespread drilling amongst the homes.  Do you want our in Hermosa Beach to drop by 25%?  

The 1.3 acre City Yard lot was worth an estimated $57,000 back in 1958 according to old news articles.  At this time oil was trading at $2 per barrel.  This was when the last Shell oil drilling vote was being contested by long timer Hermosa resident and hero Barbara Guild.   What is this City Yard lot worth now? 

Most speculate it might be worth as much as $10M for commercial zoning and possibly as high as $15M if it was rezoned for residential?  That is 175X the value.  Oil is now $100 per barrel only 20X more.  So you have to ask yourself the question which is more valuable today? Real estate or oil?   Are we just giving E&B Oil a $15M piece of property for nothing?  Its not factored into the proposed cost of voting for Yes oil drilling. 

There are 7,000 parcels in Hermosa Beach. Every 1% decrease or increase in home prices in Hermosa represents a $57M increase or decrease in aggregate wealth. A 15% drop would flush $1B of wealth and and huge property tax base down the drain.  The is assuming median home prices are $820,000. This oil drilling deal gambles with $5.7 billion in aggregate real estate wealth based on 7,000 parcels.  This is a zero sum game if you if you factor in the amount of property taxes that will be lost as a result with a 15% drop in real estate values.  You could also make the argument that real estate in Hermosa has been suppressed because of the ongoing oil and bankruptcy issue.  Pay of the $17.5M and real estate may rise by $1 billion in the area and increase the property tax base.

The City "might" make $1M in estimated revenue if they are lucky for a 4% increase on a budget of $25M annual budget? .20 cents per barrel for the schools is going to amount to nothing. Plus they can't spend the money because of the Tidal Lands act which restricts usage of the funds generated from oil.

Property values have risen up 2X since the deal was struck with Macpherson in the 1990's.  Median home prices were around $400,000.  Property values are up a 100X+ since the 1950's when the last oil crises was upon us with Shell.