Dear El Segundo Citizens:
I’m Carl Jacobson and I am an independent candidate with a strong history of proven leadership, creative solutions and fiscal integrity. My wife Nancy and I have lived in El Segundo for 41 years. Nancy is a retired El Segundo Kindergarten teacher and I am the IT Director at Glentek, located in El Segundo. We have two children, Jennifer and Jill, who grew up and graduated from the El Segundo schools and now both live in El Segundo and are raising their families here.
False accusations have been rampant this election cycle. These vicious attacks on my integrity are simply not true. I am continually looking out for what is best for our city, not what is best for me or any specific business. It is unfortunate during this important time that I am forced to maintain silence about critical city issues. Due to pending litigation involving a personnel issue, there are many things that the city council is unable to discuss. Though it would be beneficial to my campaign to talk about the specifics, my responsibility to our city comes before my personal desires.
El Segundo prides itself on being a business friendly city. These businesses bring in the revenues that help make our community great. El Segundo not only features some of the lowest business taxes in the region, but also offers exceptional tax credit incentives that can reduce those fees even further. It is important to have a stable business community to keep revenues at the level necessary to support our public safety, parks, other city services and education.
That being said, I believe Chevron’s taxation needs to be reviewed. Chevron and the City of El Segundo need to collaborate and establish a thoughtful and balanced approach and not rush to a vote. We cannot simply compare our refinery tax revenue to other cities due to different taxation rates. The taxation structure of all refineries is unique to each community and will require an in-depth review. A city council sub-committee has been established to review the issue of taxation and this committee is in discussions with Chevron. I am confident that the sub-committee will provide a thoughtful analysis that will be presented for review during open session at a city council meeting in the upcoming months.
Regarding the dismissal of our City Manager earlier this year, Mayor Busch said, “It turned out not to be a good fit.” Unfortunately, the city council cannot discuss this issue nor answer questions the community may have concerning the dismissal. As soon as the city council is able to share information about the litigation with the city, it will most certainly do so. Unfortunately, the city may never be able to release the full story due to legal restrictions. The city council has done its best to support and protect the people of El Segundo, and will continue to do so.
I encourage you to read the Herald's 3/1/12 front page article to learn more about the current issue involving Chevron and El Segundo’s ex-City Manager. It was a well researched piece and presented a balanced account of the events. You can also see all the candidates’ viewpoints on multiple topics by watching the ESRA Candidate Forum.
I do not have special agendas. I have always been open & honest. I work hard and always have our city’s best interests foremost on my mind. I believe my participation and
accomplishments demonstrate my passion for our city’s success. Not only is it my job as your councilmember, but also my passion, as my entire family lives here and they are raising their families here too.
I am happy to discuss
this further if you would like to contact me directly (firstname.lastname@example.org; 310-322-7090). I would also love to hear your thoughts; our citizens’ inputs are extremely important to me.
Thank you for taking the time to understand the full story.
Find me online: Facebook and Jacobson-ES.com
- Different city taxation rates
- People have been comparing the revenue El Segundo receives from Chevron to other cities’ refinery revenues. However, they aren’t looking at the entire picture. Other cities have higher tax rates. Torrance, home to an Exxon / Mobil refinery, has a User Utility Tax (UUT) of 6.5%. Richmond’s UUT is 10%. El Segundo's UUT is only 3% (except Telecommunication which is 2%). Measure O, which would have increased El Segundo’s rate to 4%, was voted down by a 10 point margin by the El Segundo voters on November 2, 2010. Additionally, there are many taxes and rates that go into the revenue cities receive from a refinery. The UUT is only one part of this total. (return to letter)
- Taxation Structure
- Chevron has over a third of El Segundo’s land area, yet our city does not have to maintain the infrastructure and services on this property. Chevron provides for its own lighting, roads, water mains, sewers, drainage, and day to day safety personnel. Thus the cost per acre should be different for Chevron than other businesses. Is Chevron paying the right rate? I believe Chevron’s taxation needs to be reviewed. I am happy that we have a subcommittee working with Chevron to reach a constructive solution. This is a complex task. It is extremely difficult to compare refineries. Each city's taxation structure varies. We have built strong relationships with our businesses and must ensure that we nurture those relationships with open communication. I feel confident that the subcommittee and Chevron will determine where there is a gap and what the fair and equitable solution should be.
- Refineries use or repurpose almost all the raw materials that come into their facilities, utilizing their waste products to create energy sources and other products. The taxation structure of a refinery is unique because it uses its own source product to generate electricity. This electricity is subject to the same UUT taxation rates that other businesses pay. These facts can be seen when you read the 1994 Chevron Settlement Agreement. At that time we had to review the concept of double taxation (Chevron uses their produced fuel to burn in their cogeneration facility to create electricity). Both MRC and Chevron were ready to sue the City based on various positions they contended. When working to resolve the disputes between MRC, Chevron, and the City, we had to address many small details, at which point the settlement was reasonable based on the City's and Chevron's supporting documentation at the time. In a letter from MRC’s lawyer, Donald Maynor, to El Segundo City Attorney, Lee Dolley, Maynor stated “MRC and I were very pleased that the City and Chevron decided to share with us the essential components of their proposed settlement agreement. As I mentioned to you at that meeting, we found that the settlement was within the “ballpark” or the range of reasonableness of a good faith settlement.” “Chevron’s extremely low internal cost of “equity” gas was one of the primary reasons Chevron’s overall “cost of gas”, for purposes of calculating the City’s utility user’s tax, produced a much lower tax obligation than MRC’s initial tax estimate.” (return to letter)
- Accomplishments & Continued Efforts
- Balanced budgets to ensure financial stability
- Defined/implementing economic development strategy to continue to attract and retain businesses to increase tax revenue streams
- Increased public safety affordability without jeopardizing safety
- Understand legal restraints with respect to employee pensions
- Air Force Base retention during past & future BRAC rounds
- LAX (we’ve come a long way, but still have lots of work to do)
- Early turn camera system
- LAX sound insulation program funding
- Noise mitigation negotiations
- City-School Library & Joint Use Agreements
- Southern California Edison issue resolutions
- Most Business Friendly City designation
- Program to preserve and/or replace our city trees
- Dedicated funds/ensured LEED Certified Fire Station 2 was built
- Douglas Street extension completion
- Campus El Segundo athletic fields
- Improved Recreation & Parks programs
- Additional Accomplishments (return to letter)
Committee to Elect Carl Jacobson City Council 2012 ID # 1343817 708 Bungalow Drive, El Segundo, CA 90245