Page 4 May 2, 2013 Patriotism Moves City Council Finalizes South Bay Residents to Chevron Payment Install Flags at Home Agreement By Cristian Vasquez said. “We are looking to expand it into any By Brian Simon increases to offset the potential loss of those When Gregg Scott heard that his son Harrison area that is interested. We thought the Boy Four months after first announcing a deal revenues. Of the $128 million in net new revenue, Scott had an idea to share his patriotism Scouts might be able to use it as a fundraising with Chevron, the El Segundo City Council $24 million will go to the Water Fund. Taking with their neighbors, Gregg immediately tool and it can also serve as a hard work tool, officially approved a slightly revised tax all taxes, additional funds and the extended began to figure out the logistics to his son’s which is always good. We are not looking to resolution agreement (TRA) with the refinery water surcharge into account, Chevron will pay plan--installing American flags throughout take every order and do everything ourselves. during a special meeting Tuesday night. The an estimated $224.5 million over the 15-year the community. Flags Across Manhattan We want to teach other groups or other finalized document also now amends the period, pending fluctuations in the CPI. Beach, which has now reached El Segundo, organizations and anyone who wants to do terms of Chevron’s annual gas tax payments. Questions about Chevron’s tax liability began because Harrison Scott felt inspired something different that this is a possibility.” In all, the agreement will net an estimated surfaced at the end of 2011 when a City by his eighth grade social studies teacher There is an installation fee that covers the $128 million in new revenue over the next 15 staff report concluded that the company pays at Manhattan Beach Middle School and has materials needed to put up the pole and flag. years (an average of $8.5 million annually), far less in acreage (business license) tax since been gaining support. Also, none of the money is kept for profit. providing, according to a staff report summary, than other refineries elsewhere. The Council “I just thought it was a symbol, the best The first flag installed was for one of Gregg’s “significant, long-term stability to the City’s considered placing a business license tax symbol, of patriotism that I could think of. and Harrison’s neighbors, Betty, whom they General and Water Funds.” The TRA runs measure for refineries on the April ballot, It was easy and fun,” Harrison Scott said. “It have lived across the street from for almost retroactively from January 2013 through but backed off after strong public outcry has its ups and downs. Sometimes it interferes 12 years. They knew who she was, but never January 2027, with opt-out clauses for Chevron against the move and a Chevron request to with things, but most of the time I want to really engaged until the day Harrison went in the event of unusual circumstances such put off the action and negotiate instead. A do work and get things done.” over and left a flyer about the flags. as the refinery ceasing operations or if the subcommittee consisting of Mayor Pro Team The flag installation requires a 20-foot “The next day, she emailed me and Council places a measure on the ballot to Suzanne Fuentes and Councilmember Bill telescoping aluminum flag pole that is secured immediately loved the idea and said she always materially increase taxes. Fisher along with Carpenter, Finance Director by a two-foot hole and cement and a removable wanted one but never had it,” Harrison said. The net new revenue amount comes out Deborah Cullen and City Attorney Mark sleeve. Installation also includes automatic, “After I installed the flag for her, she loved to be slightly lower than the $134 million Hensley began confidential talks with Chevron low-voltage LED lights, a transformer, complete the idea so much and my enthusiasm that estimate from December 2012. “We actually officials last April with hopes to resolve the electrical installation and a 3x5 American flag. she offered me follow-up work brining in the saw a larger total tax payment from Chevron matter by June. But the complicated nature Harrison, his father Gregg and Jordan Lane trash cans for her each week. I think we are last year than we had previously anticipated-- of the discussions pushed the process to the from El Segundo have taken Flags Across making great connections with our neighbors.” which was the good news to the City from a end of 2012. The parties finally came to an Manhattan Beach and began spreading it to The effort is very new and with the revenue perspective,” explained City Manager agreement on December 18, but it took four any residents in any city in the South Bay installation of Lane’s flag, Gregg, Harrison Greg Carpenter prior to Tuesday’s meeting. more months to hash out the remaining details, willing to install an American flag on their and Lane hope to raise more awareness in “All of our previous projections for the 15- make some tweaks and finalize the document. lawns. So far, there have been 10 flags installed El Segundo and the rest of the South Bay year value of the deal were based on the The City plans to utilize the additional in Manhattan Beach and the trio is excited if possible. “One of my neighbors who was lower base starting point. Once we reset the funds to balance its budget in the short term about that number becoming much higher. walking her dog also talked to us as we were starting point higher, we reset the projections and ideally to subsidize capital projects and/ “Gregg and Harrison installed a sturdy putting up the flag pole. She has two children for the 15-year period resulting in a lower or expanded services over the long haul. flagpole, flag and lights that light up at night that are in the service--one in the Marines and ‘net new’ total.” “This will address what would have been a on my property. The process took less than one in the Navy,” Lane said. “Placing a flag For the first year, Chevron will pay the City forecasted deficit over the next two years,” 1.5 hours and the work quality and process in my yard has already created a couple of $11.1 million in combined 2012 taxes plus said Carpenter. were amazing,” Lane said. “It feels good to be positive connections. That was in the first 20 “additional funds”—as yet undetermined but During public communications, Chevron the first house to have an American flag in El minutes of it being there. I hope the flag in estimated to be more than $5 million--to reflect El Segundo Refinery General Manager Frank Segundo from this project. Looking around my my yard encourages others to also install a higher than anticipated 2011/12 revenues. To Semancik called the agreement “reasonable neighborhood, there are lots of other houses flag and show their pride and appreciation reconcile the annual amount due, the City will and balanced” and expressed his support for that have perfect places for a flag. There are for living in the country and community provide Chevron with total tax receipts received it. “This commitment is based on mutual also a surprising small number of houses that that we do.” the prior fiscal year to match those numbers recognition that working together to find a have flags. Driving around town, I noticed Lane added, “The flag also provides against the refinery’s payment records. By the productive solution is in the best interest of only one house with a flagpole and a few with an opportunity to educate the young and old end of March each year, Chevron will remit everyone involved and reflects a 100-plus- flags attached to the house. Hopefully, we will about the flag and what this symbol should the balance of any additional funds due. That year history of trust and collaboration that start to see more and more American flags.” mean to our nation. Unfortunately, many of payment will also be subject to Consumer contributes to the unique character and quality Lane and Gregg are both members of the us know someone who has given his or her Price Index (CPI) increases. of life here in El Segundo,” he said. Knights of Columbus Council 4567, which life for this country. Placing an American Chevron will continue to pay its gas utility Describing the lengthy talks as “contentious,” serves El Segundo, Manhattan Beach, Redondo flag in your yard is a small and easy way user tax payments according to the terms Fisher said the goal was to make sure the Beach and Hermosa Beach, and they hope that to be able to give something back to those of a 1994 agreement with the City with an City was protected. “What we came up with, this can turn into an effort that can include that gave everything for our freedom and amendment that will now reflect definitions of although some would say it’s not enough, I more community organization such as the to those who dedicated their lives, or a part taxable gas (versus exempt gas) incorporated think it was a fair negotiation,” said Fisher. Knights, the Boy Scouts and local church of their lives, defending our freedom. Placing in the municipal code. Additionally, the gas Both he and Fuentes also thanked staff and groups. “Who knows how big it will grow, a flag in your yard is easy to do and speaks tax will be calculated on actual consumption all the parties involved in the process. “I but whoever installs the 10th flag or 100th flag volumes to those who appreciate freedom rather than the current base amount that gets do believe it’s going to make El Segundo a or 1,000th flag will be very cool,” Greg Scott and America.” • adjusted annually by the CPI. stronger city,” said Fuentes. The deal also extends the recycled water Mayor Carl Jacobson noted that the two Another Man’s from page 3 otherwise expired in two years. The payment, “This should serve the City for at least anothersides came to the table with good intentions.surcharge imposed on Chevron that would have those goods, companies should label their and high fructose corn syrup, among others. which came out to about $1.8 million in 2012, decade and a half and there is language in goods as being GE or not being GE. So why refuse to add GE labels to food? benefits the City’s Water Fund while ensuring there to extend with both approvals,” he Consumers are already provided with labels Why hide it? It is difficult to trust a person that local water customers (residential and said. “I think we have a very good way to indicating ingredients such as MSG, trans fats or entity that refuses to be transparent. • commercial) won’t have to absorb future fee go forward…” • THIS IS YOUR Publish your DBA TIME for only $75 TO EXPAND YOUR BUSINESS. 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Manhattan 05_02_13
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