1942 JUL 22 CC MINi
Q T76
E1 Segundo, California. .
. July 22nd, 1942.
A regular meeting of the City Council.ot the City of E1 Segundo, California,
was held in the Council Chamber of the City Hall of said City on the above date,
having been called to order at 7:00 P. M. by George Love, Mayor.
Councilmen Present: Gerow,.Peterson,.Selby and Mayor Love.
Councilmen Absent: Hesser. ,
Other Officers Present:
C1yde.Woodworth - City Attorney.
R. T. Hutchins - City Engineer.
J. B. Catalano - Building Inspector. ,
Neva M. Elsey - Deputy City Clerk.
READING OF MINUTES,OF PREVIOVS MEETING. ,
The minutes of the regular meeting held.on the 15th day of July, 1942,
were read. No errors or omissione appearing, it was moved by Counc� n
Selby, seconded by Councilman Peterson, the,minutes be approved as recorded.
Carried.
WRITTEN COMMUNISATIONS.
The following communicatipns, which were read to the Council, were
disposed of in the manner indicated, following reference to each hereinafter:
J. M. LOWERYO County Auditor, County of Los Angeles, dated July 15th,
1942, with which was enclosed a sample ordinRnee form for iise in fixing
rates and levying taxes. Moved'-by Qouneilman� Selby;- see6g8ed ,by Council- -
man Gerow-,=-tho matter be referred to the City Attorney. Carried by the
following vote:
Ayes: Councilmen,Gerow, Peterson, Selby and Mayor Love.
Noes: Councilmen None.
Absent: Councilman Hesser.
LOS ANGELES COUNTY DIVISION LEAGUE OF CALIFORNIA CITIES, dated July
17th, 1942, being notice of the holding of the 130th regular monthly meeting
at Hermosa Beach, Thursday, July 23rd, 1942. Moved by Councilman Selby,
seconded by Councilman Gerow, that any member of the City Council-desiring
to do so, the City Clerk, and the City Engineer be and they.are hereby
authorized to attend the meeting of the Los Angeles County Division, League
of California Cities, to be held at Hermosa Beach, Thursday, July 23rd,
1942, as representatives of the City of E1 Segundo at said meeting, and to
file their demands for their actual and necessary expenses in connection with
their attendance at such meeting. Carried by the following vote:
Ayes: Councilmen Gerow, Peterson, Selby and Mayor Love. -
Noes: Councilmen None.
Absent: Councilman Hesser.
APEX PETROLEUM CORPORATION, LTD., dated_ July 21st, 19421 advising it
has abandoned its Elsie No. 5 Well within the City of E1 Segundo, and
requesting exoneration of its oil well dulling bond covering said well.
In connection therewith, Building Inspector Catalano filed a written
report as to the condition of the premises upon which said well is situated,
which report stated that the oil derrick has been taken down, but t:Mber is
scattered around the location; that the foundation is still intact; that there
is one small hole, partly filled with oil and debris; two sump holes have not
been filled, and that oil ins not been cleaned up around the location. Said
report further stated Mr. Catalano had contacted a Mr. Ingram at the oil well
Q' i
who stated that said Company expects to clean up said premises within two weeks.
Following reading of said communibation and the report of the Building
Inspector, it was moved by Councilmah Selby, seconded by Councilman Gerow,
the following resolution be adopted:
RESOLVED, that the communication from Apex Petroleum
Corporation, Ltd., dated July 21st, 19.42, requesting exonera-
tion of its oil well drilling bond covering said Corporation's
oil well within the City of E1 Segundo known and designated
as Elsie #5, be received and placed on file in•the office of
.the City Clerk for the purposes of identification and reference;
AND, BE IT FURTHER RESOLVED, that said oil well drilling
bond, with National Automobile Insurance Company as'surety,
in the sum of $5000.00, be and the same is hereby exonerated as
to any liability accruing subsequent to its term date, to -wit:
July 24th, 1942, upon.the following terms and conditions:
1. That said Apex Petroleum Corporation, Ltd. will
cause to be deposited with the City Clerk of the City of E1
Segundo the sum of $500.00, as a guarantee that said corporation
will, within thirty days from this date, to -wit: July 22nd,
1942, cause the premises upon which said Elsie #5 well is
located, to be cleaned and placed in condition as required and
contemplated by the provisions of the oil well drilling permit
heretofore issued said Apex Petroleum Corporation, Ltd. covering
said Elsie #5 well, and to the satisfaction of the Building
Inspector of the City' of El. Segundo,
2. That if said Apex Petroleum Corporation, Ltd.
shall cause said premises, within said period of thirty days,
to be cleaned in the manner hereinbefore in Condition No. 1
set forth, the full amount of said deposit shall be refunded
to "said Corporation, but if it shall fail to comply with said
condition, then and in that event the City of E1 Segundo may
cause said work to be performed at the expense of said Apex
Petroleum Corporation, Ltd., the cost bf which shall be deducted
from the amount of the deposit herein requYred, any balance
thereafter remaining, if any, to be refunded to said Corporation.
3. That the City Clerk is hereby authorized and instructed
to immediately forward a copy of this resolution to said Apex
Petroleum Corporation, Ltd. for its'information in the premises.
On roll call the said resolution was adopted by the following vote:
Ayes: Councilmen Gerow, Peterson, Selby and Mayor Love.
Noes: Councilmen None.
Absent: Councilman Rosser.
LEAGUE OF CALIFORNIA CITIES, dated July, 1942, being its bulletin
entitled: "The Arcadia Tax Case". By general consent same was referred to
Councilman Selby.
ORAL COMMUNICATIONS.
None.
REPORTS OF STANDING COMMITTEES.
None.
REPORTS OF'OFFICERS AND SPECIAL COMMITTEES-
The Deputy City Clerk reported.the necessity of transferring monies to
the Library Fund, whereupon it was moved by Councilman Selby, seconded by
Councilman Peterson, that the sum of $2000.00 is hereby authorized transferred
from the General Fund of .the City of E1 Segundo to the Library Fund of said
City, and the City Clerk and City Treasurer are hereby directed to make
appropriate entries of such transfer in their.respective books of record.
Carried by the following vote:
Q. 178
Ayes. Councilmen Gerow, Peterson, Selby and Mayor Love.
Noes: Councilmen None.
Absent: Councilman Hesser.
The Water Superintendent reported having received from the War Production
Board, preference ratings covering the drilling of Water Well No. B. but
that same had not been received for the pump, pipe or fittings necessary
to complete said well.
It was thereupon moved by Councilman Gerow, seconded by Councilman
Peterson, that the consideration of bids received June 17th, 1942, for
furnishing the City of E1 Segundo certain pump, pipe and fittings for
Water Well No. 8, be taken under further advisement until the next
regular meeting of this Council. Carried by the following vote:
Ayes: - Councilmen Gerow, Peterson, Selby and Mayor Love.
Noes: Councilmen None.
Absent: Councilman Hesser,
The Mayor at this time announced that the hearing on the order to
show cause, which had been issued heretofore to Sovereign Oil Corporation,
to show cause, if any it had, why four oil well drilling permits, issued
to it covering the following oil wells, to -wit: Sovereign Oil Corporation
Copinger No. 2 Well, Sovereign Oil Corporation Copinger No. 1 Well,
Sovereign Oil Corporation Community #2 Well and Sovereign -E1 Segundo No.
1 We1L1, should not be revoked for failure of said Corporation to have
posted the required bonds, would now be had.
._Be asked if there was anyone in the audience who desired to address
the Council with reference to said matter. No person desired so to do.
The City Attorney then reported as part of the hearing, that Rip P.
Cooney, as Receiver of said Sovereign Oil Corporation, had.furnished a new
bond covering each of the above mentioned wells, which bonds were written
by Fidelity and Deposit Company of Maryland as Surety, were in the
principal sum of $5000.00 each, were dated the 21st day of July, 1942,
and bad received the written approval of said City Attorney.
The Mayor thereupon stated he approved the Fidelity and Deposit
Company of Maryland as surety.
The City Attorney then stated that in his opinion, since the Receiver
had apparently done all he could to place the matter in good standing as
soon as possible after his appointment, that the Corporation should be
purged and its default and the permit's reinstated to full effectiveness.
After discussion, it was moved by Councilman Selby', seconded by
Councilman Peterson, the following resolution be adopted:
"WHEREAS, the City Council of the City of E1 Segundo,
California, did heretofore grant to Sovereign Dil Corporation,
the following permits to erect derricks and install and
operate the necessary drilling equipment therein for the
purpose of drilling for oil, gas or other hydrocarboh sub-
stances, to -wit:
(Al Permit for "Sovereign Oil Corporation
Copinger No. 2" well, granted pursuant to Res-
olution No. 456 of said ,Council;
(B) Permit for *Sovereign Oil Corporation
Copinger No. 1" well, granted pursuant to Res-
olution No. 458 of said Council;
(C) Permit for "Sovereign Oit Corp. Community
No. 2" well, granted pursuant to Resolution No.
451 of said Council; and
(D) Permit for "Sovereign -E1 Segundo No. 1"
well, granted pursuant to Resolution No. 439 of
said Council;
Q., 179
AND, WHEREAS, under the provisions of Section 4 of Ordinance
No. 211 of the City of E1 Segundo, every permittee of such a
permit for an oil.well, shall, either before or at-the time of
securing the permit, furnish a bond approved by the City Attorney
as to form and by the Mayor of said City as to sureties, for the
principal sum of $5,000.00, conditioned as required in said section
of said ordinance;
AND, WHEREAS, said permittee, in response to the provisions of
said Section 4 of said Ordinance No. 211, did furnish to said City
bonds covering said wells and permits with Hartford Accident and
Indemnity Company as surety;
AND, WHEREAS, thereafter said Hartford Accident and Indemnity
Company did cause to be served upon said City certain notices of
the cancellations of said bonds;
AND, WHEREAS, in view of such cancellation notices the City
Council of the City of El Segundo did, on the 17th day of June,
1942, at the regular meeting of said Council, held on said date,
adopt its resolution requiring said Sovereign Oil Corporation to
show cause, if any it-had, before said City Council, at the regular
meeting of said Council, to be held beginning at 7:00 o'clock p.m.
on Wednesday, the first day of July, 1942, in the Council Chamber .
in the City Hall of said City, in said City, why the said above
mentioned permits, and each of them, should not be forfeited,
cancelled and revoked, and all rights of the permittee under said
permits, and each of them, upon such revocation, immediately cease
and terminate, on account of the refusal or failure of said Sovereign
Oil Corporation to at all times have in full force and effect a
good and sufficient bond or bonds covering said respective permits
and wells, as required under the provisions of Ordinance No. 211,
and the terms and conditions of said permits, and each of them;
AND, WHEREAS, thereafter said Order to Show Cause was duly
and regularly served upon said Sovereign Oil Corporation;
AND, WHEREAS, subsequent to the service of the said Order
to Show Cause said Sovereign 011 Corporation became involved in
.bankruptcy proceedings, and as a result of such proceedings, R. P.
Cooney was appointed as Receiver of the estate of said Sovereign
011 Corporation;
AND, WHEREAS, the hearing on said Order to Show Cause was,
at the request of said Receiver, continued by•mesne continuance
until this date, to -wit: July 229 1942;
AND, AREAS, this Council has at this meeting on said 22nd
day of July, 1942, duly held'said hearing;
AND, WHEREAS, at said hearing the City Attorney of-.said
City reported to said Council that said R. P. Cooney, as Receiver
of the estate of said Sovereign Oil Corporation, had duly presented
and filed bong for each of said wells as required by said ordinance,
which said bonds said City Attorney delivered to the City Clerk
of said City for filing with the respective permits to which they
relate, as contemplated-under the provisions of said Ordinance
No. 211, and which said bonds are as follows, to -wit:
Bond No. 4613682, with Fidelity and Deposit Company of
Maryland, as Surety, in the sum of
$5,000.00; dated the 21st day of July,
1942 and covering the well above re-
ferred to as "El Segundo #1 Well ";
Bond'No. 4613685, with Fidelity and Deposit Company of
Maryland, as Surety, in the sum of
$59000.009 dated the 21st day of July,
1942, and covering the well above re-
ferred to as "Community #2 Well ";
Y
Bond No. 461_$684, with Fidelity and Deposit Company of
Maryland, as Surety, in the sum of
$5,000.00, dated the 21st day of July,
19429 and covering the well above re-
ferred to as "Copinger #1 Well "; and
Bond No. 4613685, with Fidelity and Deposit Company of
Maryland, as Surety, in the sum of.
$5,000.00, dated the 21st day of July,
1942, and covering the well above re-
ferred to as "Elsie #2 Well ";
AND, WHEREAS, said City Attorney has approved all of said
bonds as to form and the Mayor of said City has approved all of
said bonds as to surety;
NOSE, THEREFORE, BE IT RESOLVED, DETMNINED AND ORDERED by
the City Council of the City of El Segundo, California, as follows:
First: That the said bonds hereinabove referred to,
with said Fidelity and Deposit Company of Maryland, as
surety, be and the same are, and each of them is, hereby
approved and accepted by the City Council of said City,
on behalf of said City, and - ordered placed on file in the
office of the�City Clerk, with the respective permits to
which the same respectively relate.
Second: That in consideration of the furnishing of
said new bonds by said Receiver, and the approval and
acceptance thereof as hereinabove set forth, said Council
hereby finds and'deternines that said Sovereign Oil Cor-
poration,, through said R. P. Cooney, as Receiver,.of the
estate of said Sovereign 011 Corporation, has shown
sufficient cause before this Council why t$e said permits,
and each of them, should not be revoked, and said Council
in consideration of the furnishing, filing and acceptance
of said bonds, and each of them, as aforesaid, does hereby
purge the said Sovereign Oil Corporation of its default
in the premises, and does hereby re- establish and reinstate
the said permits above.referred to, and each of them, in
full force, vigor and effect, subject to their respective
provisions, terms and conditions.
Third: That the City Clerk of said Citj is hereby
authorized and instructed to prepare four'certif ied copies.
of this resolution and deliver same to said R. P. Cooney,
as Receiver of the estate of Sovereign Oil Corporation,
as evidence of the action of said Council in the premises
and of the fact that said permits and each of them have
been so re- established and reinstated, as aforesaid.
Upon roll call the foregoing resolution was adopted by the following vote:
Ayes: Councilmen Gerow, Peterson, Selby and Mayor Love.
Noes: Councilmen None.
Absent: Councilman Hesser.
The City Attorney reported that he had heard nothing further from
Mr. R. T. Dorsey, Traffic Engineer of the City of Los Angeles Police
Department relative tb procedure to be taken to effect the closing of Coast
' Boulevard. t
The City Attorney reported that he had not as yet received from
Santa Fe Land Improvement Company its form of easement to the City of E1
Segundo for storm drain purposes.
The City Attorney reported having had no reply as yet to his
letter directed to Mr. Trucan, requesting that gentleman to immediately
VA81
arrange to make payments on the claim which the City of E1 Segundo has against
him.
The City Attorney reported that pursuant to previous instructions of
the City Council, he had contacted Mr. John F. Bender, Attorney at Law,
respecting the City acquiring Mr. Bender's services in the matter of fore-
closure proceedings in connection with delinquent special assessments; that
Mr. Bender had advised him he would accept such employment under the terms
set forth in his written offer recently presented to the City Council.
It was thereupon moved by Councilman Selby, seconded by Councilman
Peterson, the following resolution be adopted: .
.RESOLVED, that the communication from Mr. John F.
Bender, addressed to Clyde C. Woodworth, City Attorney,
dated June 23rd, 1942, setting forth the basis upon which
said John F. Bender will proceed as Special City Attorney
for the City of El Segundo, with the foreclosure proceedings
heretofore filed by said City under the 1915 Bond Act and
other matters relating to tax delinquencies in said City,
as set forth in said communication, be received and placed
on file in the office of the City Clerk for-.__the_ purposes of
identification and reference;
AND, BE IT FURTHER RESOLVED, that John F.'Bender be
and.he is hereby employed as Special City Attorney of the
City of E1 Segundo, to succeed Bernard Lawler resigned, and
to serve said City and be compensated upon the,..basis and
and in accordance with the terms and conditions as set
forth in the said communication hereinabove ordered filed
and which is hereby referred to and by this reference in-
corporated herein and made a part hereof;,
AND; BE IT FURTHER RESOLVED, that the Mayor of said
City of E1 Segundo be-and he is hereby authorized and instructed,
to execute, on behalf of said'City, Substitutions of Attorneys,
wherein said John 1. Bender, Special City Attorney and Clyde
Woodworth, City Attorney, will be substituted, on behalf of
the City-of E1 Segundo for former Special City Attorney
Bernard Lawler;
AND, BE IT FURTHER RESOLVED, that the City Clerk of
the City of El Segundo be and he is hereby authorized and
instructed to attest said Substitutions of Attorney and make
delivery of any and all substitutions to said Special City
Attorney John F. Bender, who is hereby authorized-to-file
them in the respective actions and proceedings to which they
respectively relate;
AND, BE IT FURTHER RESOLVED, that the retainer fee
provided for in said communication, shall be paid on a
monthly payment basis as set forth in said letter.
The foregoing resolution was adopted by the following vote:
Ayes: Councilmen.Gerow, Peterson, Selby and Mayor Love.
Noes: Councilmen None.
Absent: Councilman Hesser.
Mr. John F. Bender, Special City Attorney, then reported that he
had checked option agreements with the County Tax Collector, that 171 parcels
had been included in the original agreement, but ten of these parcels had
since been'redeemed; that the total purchase price to the County for the
remaining 161 parcels is $4455.88; that his next step would be to appraise
and inspect-each of these parcels to determine whether or not they are salable
and which of said parcels, or any of them, are worth the asking price of the
County. He inquired of the Council members if it would be convenient for
them to make the inspection of such parcels with him, and.by general consent
all Council members present agreed to meet with Mr. Bender on Wednesday,
July 29th, at 1:00 P. M. to make such inspection.
M `V
UNFINISHED BUSINESS.
The Water Superintendent reported that pursuant to previous instruction
of the Council, he had caused a test to be made on the Gough water well,
and had filed with each member.of the City Council n written report on
the result of such test.
Following study and consideration of said report., it was moved by
Councilman Selby, seconded by Councilman Peterson, the following resolution
be adopted:
WHEREAS, due to the need for an additional water,supply
during the current summer months, the City of E1 Segundo is
faced with an emergency effecting the public peace, health,
safety, comfort and welfare.of said City;
AND, WHEREAS, in the opinion of the City Council of
said City, it is essential and necessary that the action
hereafter taken be taken in order to preserve and protect
such public peace, health, safety, comfort and weiare;
NOW, THEREFORE, BE IT RESOLVED, by the City Council
of the City of El Segundo, California, as follows:
First: That the Mayor and City Engineer of said City
be and they are hereby authorized and instructed to contact
the owner.or owners of that certain water well -in said City,
commonly known and referred to as the Gough well and which is
located on the Southwest one - quarter of Section 7.,
Second: That said Mayor and City Engineer-are authorized
to negotiate with such owner or owners for a leasing of said
well for the purpose of production of water therefrom for use
in the municipal water system of said City at the earliest
possible moment, the basis of such lease to be substantially
not to exceed ld per 1QO cubiv feet of water produced from said
well by said City; to contain a 90-day cancellation clause at
the option of either party; to provide that the City may install
such new bowls and other apparatus and equipment as may be
necessary to put said well in condition suitable for the City's
use thereof, with the right to remove such bowls and equipment
so installed by said City upon the termination.of such lease
and upon the reinstallation of the presently existing bowl
facilities of said well; to provide for the connection of said
well to the municipal water works system of said City during
the term covered by such lease and for the removal of such
connection by said City upon termination.thereof; and the
remainder of such lease provisions to be egreed upon as to minor
details by the said owners or their attorneys and the City
Attorney -of the City of E1 Segundo.
Third: That if said Mayor and said City Engineer are
able to.negotiate such lease, substantially upon the terms above
indicated, that then and in that event and in view of the ex-
isting emergency, said City Engineer be and he is hereby authorized,
directed and ordered to take any and all steps and procure any
and all materials, bowls, apparatus, equipment and supplies,
including necessary labor, which may be required in:order to
immediately repair and place.said well.in proper condition for
service in the production of water for the municipal water works
system of said City.
..Fourth: That said Mayor and City Engineer shall.report
to this Council at its next meeting the action taken by them
under-the direction and authority, given in this resolution.
Fifth: That it is the purpose and intention of.this_
Council to authorize, on behalf of said City, the executienand-
delivery of a lease of said well, substantially in accordance
with the terms hereinabove indicated, upon presentation of.the
necessary instrument representing such arrangement.
Upon roll call, the foregoing resolution was adopted by the following vote:
(�
Y 183
Ayes: Councilmen Gerow, Peterson, Selby and Mayor Love.
Noes: Councilmen None.
Absent: Councilman Hesser.
,In the matter of the claim of the City of E1 Segundo against Anthony Raport
in amount of $7.50, the City Council, by general consent, indicated no further
action would be taken at this time to enforce collection of the amount, and the
City Attorney was authorized to close his file in the matter. .
PAYING BILLS.
The following demands, having had the approval of the•Committee on Finance
and Records, were read:
Water Works Fund
Addressing Machine and Acc. Co. 2.21,,
Hersey Manufacturing Co. 2.36
Mefford Chemical Co. 279.90
Southern Calif. Gas Co. $.29
Southern Calif. Telephone Co. 17 45
TOTAL 304.21
Recreation Fund
Brunswick- Balke- Collender Co. $41.65
Wm. M. Dennis 5.00
American Handicrafts Co. 14.38
Leather Supply Co. 8.68
TOTAL $69.70
General Fund
City of E1 Segundo Water
Department
City of E1 Segundo Water
Department
Standard Oil Co. of Cal
*Mil" Zillgitt
Southern Cal. Gas Co.
Mabel Fitzgerald
TOTAL
$416.46
46.31
246.48
9h.74
3.29
3.60
807.88
Moved by Councilman Selby, seconds¢ by Councilman Peterson, the demands
be allowed and warrants ordered drawn on and paid out of the respective funds
covering the same. Carried by the following vote:
Ayes: Councilmen Gerow, Peterson, Selby and Mayor Love.
Noes: Councilmen None.
Absent: Councilman Hesser.
NEW BUSINESS.
Moved by Councilman Selby, seconded by Councilman Peterson, that R. T.
Hutchins, Chief of Police, be and he is hereby authorized to purchase two
seat covers, one for use on the Police Department Chevrolet Automobile and
one for use on the new Ford Police Car, at_a cost of not to exceed $6.50 each,
installed, plus California State Sales Tax. Carried by the following vote:
Ayes: Councilmen Gerow, Peterson, Selby and Mayor Love.
Noes: Councilmen None.
Absent: Councilman Hesser.
Moved by Councilman Peterson, seconded by Councilman Selby, that the City
Clerk be and he is hereby authorized and directed to procure war risk insurance
covering municipal properties, including Water Treatment Plant Building and
facilities; and that pending the working out of a schedule for the various
buildings to be so insured, he shall procure from the insurance carrier a binder
covering said properties. Carried by the following vote:
Ayes: Councilmen Gerow, Peterson, Selby and Mayor Love.
Noes: Councilmen None.'
Absent:. Councilman Hesser..-
No further business appearing to be transacted at this meeting, it was
moved by Councilman Gerow, seconded by Councilman Selby, the meeting adjourn.
Carried.
Approved:
Respectfully submitted,
VICTOR D. MCCARTHY, CITY CLERK,
By
Deputy.