Hermosa Beach Mayor Kit Bobko Would Rather Drill For Oil vs Raise Hotel Occupancy Tax 2%

Raising the Hermosa Beach hotel occupancy tax would could bring in an additional $400,000 for the city, staff estimated. The current rate has been in place since 1990 and is expected to generate approximately $2 million in revenue this year. It accounts for more than six percent of the budgeted income. The TOT tax is imposed on all people staying in a hotel in the city for 30 days or less.

According to the city staff report, the South Bay area average TOT is 11.6 percent. Redondo Beach is considering an increase from 12 percent to 14 percent. Manhattan Beach collects 10 percent, but has the authority to charge 12 percent. El Segundo charges the lowest hotel tax in the area at 8 percent.

Mayor Kit Bobko said that he did not feel that the government had a better idea on how to spend a consumer’s money than the consumer, particularly when it comes to tax increases, and made incendiary remarks comparing it to burning money in a furnace. He championed budget cuts over tax increases.

Why Are Home Prices Dropping in Hermosa Beach?

Hermosa Beach, Manhattan Beach, Redondo Beach & El Segundo 

Condo Townhomes Average Price Per Sale & Sold 

(Click Image to Enlarge)

Hermosa Beach, Manhattan Beach, Redondo Beach & El Segundo 

Single Family Home Average Price Per Sale & Sold 

(Click Image to Enlarge)

E&B has been making their rounds presenting to local real estate groups over the past week about the economic benefits of oil drilling in our Beach town. They will spew a truck load of BS and have already costs Hermosa Beach property owners about approximately $343M in aggregate real estate wealth in the first 15 months of being in town.  Here is the math = (7000 parcels x $980,000 avg. per parcel) -5% decrease to be conservative. The last 12 months have seen a sharp spike in home prices everywhere in the South Bay but Hermosa Beach.

Unfortunately, the Stop of Hermosa Beach group has not been invited to present the other side of the oil story. If you ask anyone from E&B if slant hydraulic oil drilling can be done safely near the thousands of abandoned wells in the South Bay, E&B will lie and refer to studies or experts. However, ask any other experienced oil executive and they will tell you that E&B is nuts to hydraulic drill with capped wells under homes nearby.

Slant hydraulic drilling cannot be done safely with abandoned wells under homes and schools. Ask E&B if they plan to cover abandoned wells in the EIR? It won't because Marine Research has no experience with with their failed EIR's for Whittier Hills and Baldwin Hills. If they cover how to mitigate an abandoned well becoming pressurized in the EIR it will kill the whole project and E&B knows this. This is also a fact!  

Have The Rights of City Council Members To Speak On Their Own Been Muzzled By An Agreement?

Letter From Howard Longacre Letter to City Council May 20, 2013 (Item 4)

(Please excuse my typos below)

4)  Request for clarification as to any other ongoing confidential agreements (other than the March 2, 2013 settlement agreement itself) which have also been made by the City's staff and/or the City Council, and/or with any other entity regarding the oil issue.  

The March 2012 settlement agreement between the parties states that the City will take the necessary actions to have an election for the voters to vote Yes or No on lifting the ban on oil drilling in Hermosa Beach.  However, as long as an election does take place and is facilitated by the Council, is there anything that precludes any individual council members from stating to the press or to the public, inside or outside of a public forum, and on the record, of being for or against lifting the ban on oil drilling? 

Has in any manner the rights of any individual council member to speak on their own, or on their constituents behalf, been muzzled via any agreement by the council in closed session or otherwise?  This question has not been answered clearly in my and others' view and such is not specified in the settlement agreement, nor do I recall a debate on the agenda item in any public meeting where the council specifically voted to maintain a position of unanimous support to muzzle themselves.  Something seems to be missing here and apparently has a lot do with the perception the public has of the Council regarding the entire oil matter? (See article:  Did elected officials in Hermosa Beach violate the Brown Act.)

Complicating the issue is that rumors persist that more than one council member has made it very clear to some residents or business operators that they are either supporting or not supporting lifting the ban on oil drilling in Hermosa Beach.

Unfortunately, that all five council member appear to be stonewalling, on the record, the issue of what agreement they perhaps made behind the scenes indicates to many, if not most, that the Council is being disingenuous and playing politically coy, given that the oil drilling issue is far from new in the city.

Further, it is doubtful that even 1 in 20 of the electorate who actually vote on the oil drilling issue will make up their minds one way or the other, basis reading or understanding anything of the nuts and bolts of the EIR's likely mountain of esoteric data, E&B's application, the flood of mailers and propaganda barrages to be likely put out by E&B and others, or the underlying agreements with Macpherson that have been transferred to E&B or others, nor will they perhaps understand or trust the grandiose claims of revenue one way or the other or the safety or lack of safety claims E&B and others are making.  Thus,

4-a)  Are there any agreements written or verbal other than the settlement agreement as related to the question of lifting the ban on oil drilling, the election, confidential, or otherwise, that the public and press are not distinctly and formally aware, and understanding of?  This could include any issues agreed to by the Council members among themselves, such as that they would not individually take announce a public position on oil drilling until "XYZ" occurs, etc.   If there are any other agreements please disclose and clarify as best possible what purpose they are for, why they are needed, and when they are made.

4-b)  Is each and every council member free at this time to speak his own mind regarding lifting the ban on oil drilling, both inside or outside of a public forum, and/or to the press on the record?  Yes or No?  If No, this due to a specific binding agreement made by the full council among themselves, and if so why such agreement required when the settlement agreement is supposedly the full and complete agreement?

See Hiding Oil Money Point 3  

Who Owns Present & Future Oil & Gas Mineral Rights?

Howard Longacre Letter to City Council May 20, 2013

1)  Request for clarification regard the present and future ownership of the oil and gas mineral rights that were own by the City prior to the original agreement(s) with Macpherson.    

1-a)  Who owns / controls the City's original oil and gas mineral rights at the present time? 

1-b)  Who will  own/control the subject mineral rights if oil drilling IS NOT APPROVED by the voters, and for how long?  

1-c)  Who will own/control the subject mineral rights if oil drilling is approved by the voters and for how long? 

2)  Request for clarification regard the Oil Lease expiration data. 

2-a)  How many years remain on that oil lease? 

2-b)  Is the clock presently ticketing on that oil lease or has it been suspended due to the prior oil litigation, and if so is it still suspended and to when? 

2-c)  If oil drilling is NOT APPROVED by the voters what happens to the oil lease, ie. does it expire immediately, will it ever expire, will the clock continue to tick? 

2-d)  If oil drilling is approved by the voters what happens to the oil lease, ie. when does it expire, will it ever expire and if so when? 

"Economic Benefit" of Oil Drilling in Hermosa Beach in Biased

Stacey Armato suggest the tittle "Economic Benefit" of oil drilling is biased

The economic benefit of oil drilling in Hermosa Beach is not just about the money we going to get and how we are going to spend it.  We would like to understand the effects on tourism, real estate and other issues that are effected.  We would like to see a more encompassing study on the effects and the costs.  

How Much Oil Money Might Hermosa Beach Get From Oil Drilling?

Is It Worth Risking Our Health & Safety for $500?

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?

No Oil Money For Hermosa Beach Schools

Barbara Guild Speaking About Oil Drilling Underground In Ocean Benefits State of California (Tidelands Trust)

- No General Use of Oil $ From Ocean

- Schools Only Have Tiny Mineral Rights Royalty

- .20 Cents Per Barrel of Oil Extracted Under School

- No $ Use East of Strand

- No Police or Fire $
- No Road or Sewers $
- No New Building $
- No School $
- No Parks Money

State Tidelands Doctrine

The United States Supreme Court issued its landmark opinion on the nature of a state’s title to its tide and submerged lands nearly 110 years ago, and although courts have reviewed tidelands trust issues many times since then, the basic premise of the trust remains fundamentally unchanged. The Court said then that a state’s title to its tide and submerged lands is different from that to the lands it holds for sale. “It is a title held in trust for the people of the State that they may enjoy the navigation of the waters, carry on commerce over them, and have liberty of fishing” free from obstruction or interference from private parties. All uses, including those specifically authorized by the Legislature, must take into account the overarching principle of the public trust doctrine that trust lands belong to the public and are to be used to promote public rather than exclusively private purposes.

Evidence of Money Use in Newport Beach

Oil and gas revenue is deposited into the Tidelands Fund because the source of the oil is in the tidelands area which the City holds in trust for the people of California. The Tidelands Fund may be used only for eligible expenditures that support and maintain the tidelands, such as improvements to tidelands property including dredging Lower Newport Bay, lifeguards, beach cleaning, etc. 

The productivity of the oil wells continues to decline due to the age of the wells. New oil extraction techniques are required if the City continues to use the wells. The new techniques may include: reconditioning of existing oil wells, converting existing oil wells to water injection wells, drilling new water injection wells or drilling new oil wells. The City Charter restricted the redrilling of wells until January of 2011.

This is how we raise money for Hermosa Beach Schools through the Ed Foundation.

Hermosa Beach Neighborhood Watch Newsletter

JUNE NEWSLETTER FROM NEIGHBORHOOD WATCH

Are SOME Hermosa Beach City Council members trying to lull our community members into a false sense of security? Current objectives to reduce the salaries and benefits of our current and future Police and Fire personnel might change the course of our public safety forever!

Hermosa Beach Neighborhood Watch (HBNW) has expanded the advancement in public safety. We have made a difference in community awareness by partnering with the HB Police and Fire Departments. The information that is delivered through email to our citywide-connected, interested residents has proven success in the past six years. People are more aware of their surroundings and take part in crime prevention of their home and auto because they have access to daily crime logs. HBNW has worked closely with the Fire Department to bring disaster preparedness to the forefront of our lives. Through this association we have shared knowledge of the daily happenings on calls for service. This snapshot view makes visible to the public that the majority of calls are for medical emergencies and mutual aid to our neighboring cities.

We all have common aspirations when it comes to our safety. To HBNW coordinators, it is to maintain the growing beach community while keeping our sense of public safety top notch. We all want an environment to enjoy, relax in and be responsive to changing times.

The City and local economy is recovering from the recession that began in 2008. Revenues are up, a new business license fee was instituted and the City has settled the long on-going lawsuit with the oil company. The future is bright for the City. So why then, is the City Council intent on additional cuts and layoffs? Its arrogance and politics!

• They will say we have to pay the Oil Company; that bill doesn't come due for several years as it must await the outcome of the city-wide vote to approve oil drilling. We could also enter into a payment plan. What they don't say, is the million dollar a year payments to the attorney representing the City can now be saved to make the payment to the oil company (if necessary).

• They will say the retirement system is costing too much; costs of retirement for existing employees are rising, yet this is like a mortgage payment, we can't pay the whole amount, but the City can afford the payments. It is a tough concept for those on council who don't have a mortgage to understand this. They moved here for the sole purpose of becoming a politician in a small town with hopes it will lead to another political opportunity. These are the very same council members who want to tear down this once well run City. They also won't tell you that a few years before the recession the retirement system was "super-funded" and the City was not required to make payments. Did they run out and give employees raises? Nope, they spent the money on other things. Now that the payments are due, they want the employees to pay.

• They will say the cost of employee benefits are skyrocketing; True for some, but not for new employees because the tiered system. What they want to do is chase away (by threatening huge pay cuts, some as high as 30 percent) good long-standing, solid employees who are dedicated to providing service to the City. This will become a transitional City, where some will come for the experience and then move on to greener pastures when they discover how other Cities are working to support their employees, not cut them off at the knees. What they won't tell you is the employees of this City have not sought raises in five years in in an effort to help the City to balance the budget, oh and by the way, the City has had a balanced budget every year and revenues never went below the level in 2008. Money is tight, but there is no fiscal crisis, however, there is a crisis of leadership on the council.

• They will say there is too much "unfunded liability" due to employee pensions, medical benefits; They won't tell you that these costs were agreed upon by this City Council and previous Councils who negotiated in good faith when deciding how the benefits should be paid. They won't tell you the employee share, currently being paid by the City, was in lieu of raises to the employees and was a financial advantage to the City to pay the employee share, and still is. Oh and again they won't tell you that each of the employee union agreed during the negotiations process to the 'tiering' of the benefits, again in an effort to help the City. Now they want to take it away from the existing.

• Your Police Department was recently awarded accreditation from a national organization that audit and reviews the work done. This was because of the leadership of Chief Savelli, yet it was the officers and other employees of the department that made it happen. To thank them for becoming a leader in law enforcement, they want the employees to suffer more cuts. They won't tell you that because of the professionalism of its members, the City is saving thousands upon thousands dollars on lawsuits and attorney's fees. They also won't tell you they are spending your money on a high-priced labor lawyer to negotiate against their own employees. They love giving money to attorneys, perhaps they want to be attorneys some day.

• Hermosa Beach Fire has specially trained men to provide out-of-hospital care in medical emergencies. There are many different types of emergency medical responders, each with different levels of training, ranging from first aid and basic life support to advanced life support. Paramedics provide advanced levels of care for medical emergencies and trauma. ALL of our Hermosa Beach Fire personnel are trained fire fighters and paramedics. This is quite comforting when you find yourself in a position that you need to call 911 for help. In my humble opinion, knowing that individuals are on their way that can provide advance care is reason enough to fight for this service to stay in Hermosa Beach.

• The City has cut several positions, including two police officers and 20 percent (one assistant Fire Chief and three firefighter/paramedic positions) of the Fire Department. HB Fire is the busiest department for 'Call of Service' per firefighter/paramedic in the Los Angeles County. Compton Fire is number 2.

• The City also has "tiered" the retirement system for future employees and encouraged experienced employees and leaders to leave by offering a "golden handshake" and have not given employees raises over the past five years.

Please let them hear your voice, stop the dismantling of the City by this City Council. Tell them to support the City and the services provided by the employees. Remember, this is a great City with low crime and we want to keep it that way! Your Police and Fire Departments are never more than a mile away when you call, and their response time and service levels are unmatched.

The future of Hermosa Beach Neighborhood Watch program is DEPENDING ON YOU, individually and as a community, to speak up NOW to express your outrage that our voted representatives will keep in mind that it is a "convenient delusion" to think that relying on low wages and outsourcing in place of innovation and opportunity will make Hermosa Beach prosper economically or ethically. What is your families continued safekeeping worth to you? Our hope is that you will step up by calling, writing or sending an email to our five council members to voice your opinion before it is too late and a choice has been made for you! It is OUR collective responsibility to voice our wishes to keep the police department and fire department together.

We trust that you are as outraged at we are and put a stop to this "convenient delusion" that City Council has that by relying on low wages and outsourcing in place of innovation and opportunity will make Hermosa Beach prosper economically or ethically. What is our families continued safekeeping worth to you? Our hope is that you will step up by calling, writing or sending an email to our five council members to voice your opinion before it is too late and a choice has been made for you! It is OUR collective responsibility to voice our wishes to keep the police department and fire department together. We need to send the message that we do not put politics above people.

Email All Council Members

$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.  

Ask Mayor Howard Fishman Lunch on Tuesday

Networking Lunch at Fritto Misto in Hermosa Beach on Tuesday, March 13 at 11:30 AM.  Lets get some more information out to the public while we eat some tasty garlic bread and bruschetta.  We attended the lunch and was struck be a number of erroneous statements the Mayor made about revenues, timing of the vote and some important legal details.  It is clear that he did not understand the agreement he signed and think this is why large agreements like this should not be negotiated and signed in a backroom without public comment.  Our Hermosa Beach City Council is obviously being told what to say by the oil company and a paid PR agency.  Are they really working for us?  Why are they under a confidentiality agreement?

Reasons Why E&B Oil is a Bad Deal

Based on my discussion I think the deal the Hermosa Beach City Council struck is a bad one for several reasons. The only good news is we have an actual $ settlement number and its not going to bankrupt the city. Here are my top 10 talking points to be used with anyone you know.

1. No public forum was held.  Only 1 company (E&B) bid on the deal behind closed doors. 
2. The oil site will be within 100 feet of homes and businesses.  California recommends a 300 foot  setback and Colorado law requires 350 feet setback.  
3. $1B destruction of real estate values for a new police station or new storm drains on the beach? 
4. Santa Monica Bay is a no-drill sanctuary (Hermosa drilling map). 
5. State Lands Commission Staff recommended against this Oil Drilling project because it expected poor results.
6. Hb cannot use any of the money shared "net revenue" NOT gross for anything that is not on the beach or greenbelt.  See Tidelands Act. 
7. City Council “settlement” is a collective punishment for citizens daring to reject their plans for siting an industrial project next to homes. 
8. Schools won’t benefit much if at all from drilling.  The .20 cents per barrel for the school system was a horrible deal struck in 1990's. Oil was trading at $20 per barrel in 1990's and now at $110 per barrel.
9. Experts claim only 2M-9M barrels are possible at this location at best.  That is only $400,000 to $1.8M for schools at .20 cents per barrel over the lifetime of the project.  Over a 20 year period that is nothing per year for the schools, maybe $20K to $40K per year. Can't even hire one person for that $.
10. Once E&B is entrenched in Hermosa Beach, say good-bye to local control. E&B will call the shots, influence local elections, etc. Hermosa Beach will be forced to jump when E&B says ‘jump’.
11. Oil seeping from the ocean naturally will undoubtedly be disturbed by the slant drill. Do you want more oil washing up on the beach similar to Santa Barbara and Huntington Beach? 
12. HB can pay off E&B Oil company and it will not bankrupt the city.
1. Sell the city storage property next to the fire station for $7.5M 
2. Get a $10M "Judgement Bond" from the State of California at 3% and service loan which will cost the city $300,000 per year. (not much in the grand scheme of things). 
13. Do you want to see a 75 foot drilling tower as you look out over the ocean. (See pic)
14. Drilling on this lot will destroy a perfectly fine $5M lot.  
15. Drilling is noisy and you want to smell fumes of oil downwind everyday? 
16. The oil tar sands used "if found" would be low grade oil and only used for ships and heavily machinery. It takes more energy to refine the crap than regular oil. 
17. Lethal gases and possible explosions?  
18. Additional ground settling and possible earthquakes. 
19. Not a green Hermosa sustainability initiative if that is what the city wants. 
20. Its low grade oil, used by crappy machinery and will have an unknown impact on the sea and surrounding environment. 

Please share this with you friends and neighbors who might be helpful spreading the world that the oil settlement should be a no vote. It may not be on the ballot for a long time but it is never too early to start campaigning against something this stupid. Please let me know if you have any thoughts or concerns. If you have any neighbors that should be on the list please copy them and lets start building the campaign now.