1989 JUN 27 CC MINEL SEGUNDO ADJOURNED CITY COUNCIL MINUTES -JUNE 27,1989- 7:OOPM
CALL TO ORDER by Mayor Jacobson at 7:00 p.m.
PLEDGE OF ALLEGIANCE led by Councilman Clutter
ROLL CALL
Councilman Anderson- present
Councilman Clutter- present
Councilman Dannen- present
Councilman West- present
Mayor Jacobson- present
PUBLIC COMMUNICATIONS -(Cif Business Only- 5 minute Limit)
1. Gerhardt VanDrie, 724 W. Pine asked that the community observe a moment of
silence before the Fireworks for the pro- democracy students of China; was
interested in the jet fuel sales and would like additional information with regard to this
matter.
2. Jerry Saunders, Representative of the El Segundo Chamber of Commerce asked when
the Public Hearing would be scheduled with regard to the Business License Tax
Ordinance.
Mayor Jacobson stated this meeting was a study session but public input would be
accepted. A Hearing is potentially scheduled for July 5, 1989.
3. Dennis Martin, 722 Indiana Court, Representative of the El Segundo Residential
Association concerned about all the tax issues to be presented.
4. Maurice Lyndsey, Owner, Torque Master stated the proposed tax would do nothing
but harm the community. He stated he had talked to representatives from Hughes and
they stated the proposed tax would be destructive to the Aerospace Industry.
IT WAS THE CONSENSUS OF COUNCIL TO TAKE THIS ITEM OUT OF ORDER.
REPORTS OF COMMITTEES, BOARDS AND COMMISSIONS
1. Senior Citizen Housing Board Opening,
Councilman Anderson MOVED, Councilman West SECONDED to re- appoint Enid
Edwards to the Senior Citizen Housing Board. MOTION CARRIED BY UNANIMOUS
VOICE VOTE.
NEW BUSINESS -CITY MANAGER - NONE
NEW BUSINESS -CITY ATTORNEY
1. Business License Tax Ordinance.
Council consideration, discussion and action
City Attorney Dolley gave a brief overview and stated the ordinance contains two main
points. Essentially what this ordinance accomplishes is to replace the $60.00 head tax
(1)
Council Minutes
June 27, 1989
NEW BUSINESS -CITY ATTORNEY - continued
with a tax that is very like the Los Angeles City Payroll expense tax. It has been
expanded to include contractors and employees, essentially that becomes the business
registration fee. Also contained within is the square footage tax.
Interim Finance Director, Stark gave Council an update with regard to the budget
schedule and its present status. Mr. Stark provided Council with an overhead
presentation explaining the summary of recommended Capital Projects. Mr. Stark
stated the proposed business tax would enable the City to recover faster financially
and bypass the expenditures at present. Without it the City would find itself in the same
financial position within 3 years.
Council asked for public input.
1. John Brown, Tax Administrator- Hughes Aircraft stated Hughes is the largest tax
payer in the City. Mr. Brown stated they are not opposed of a tax but not in favor of a
tax that is disproportional to a company of this size or to its employees who don't receive
the same services in proportion to taxation proposed. Mr. Brown stated they are in favor
of the square footage tax.
2. Carrie O'Halerien, Representative of Northrop not in favor of the proposed tax and
its administrative burden. The square footage tax is considered a fair and equitable tax.
3. George Wiley, 2230 Rosecrans, Rockwell Corp asked Council to consider the history
in recent years of the decline in persons employed in El Segundo by Aerospace.
4. Dennis Martin, 722 Indiana Court suggested boycotting industry to counteract
supposed threats made by industry with regard to the proposed tax. Asked that
corporate participate in the financial planning.
5. Maurice Lyndsey, Owner, Torque Master stated his previous reference was made to
small businesses in the City.
6. Jerry Saunders, President of Chamber of Commerce asked if Council had any
knowledge of what they intend to charge within the new tax structure.
Mayor Jacobson stated Council would designate figures after all discussion has been
completed.
Councilman Anderson stated when an increase is made the potential for driving away
business is apparent. Mr. Anderson also stated that citizens should pay their fair share
in the City.
At the hour of 7:50 p.m. Council recessed. At the hour of 8:00 p.m. Council reconvened
in the Council Chambers with all members present and answering roll call.
Mayor ProTem Dannen stated would like to review a rebate based upon sales tax as well
as the square footage and business license taxes. Mr. Dannen stated he foresees the
need for sales tax generation in the future. This suggestion might make the burden less
onerous. Suggested a meeting in two weeks to allow further review of this tax or
propose something that will be acceptable with industry.
Mayor Jacobson asked that major companies and all business owners in the City come
forward with written proposals in the next week and meet with Council on July 5,1989
and on July 11, 1989.
Councilman West suggested an interim tax until a feasible solution is made to the
proposed Business License Tax.
Councilman Clutter stated he does not want to satisfy one industry and create problems
for others.
(2)
Council Minutes
June 27, 1989
It was the consensus of Council to hold an Adjourned Council Meeting on July 11, 1989
at 7:00 p.m. for the purpose of discussing this subject with various industries in the City.
It was the consensus of Council to notice the Hearing for July 5th Regular City Council
meeting for the purpose of obtaining input from the citizens of the Community as well
as industry, as previously publication was already requested.
It was the Consensus of Council to hold an adjourned Council meeting on Tuesday, July
11, 1989 at 7:00 p.m.
COUNCILMEMBERS REPORTS AND RECOMMENDATIONS - NONE
CLOSED SESSION
Pursuant to the California Government Code a Closed Session will be held on the
following matters:
GC 54956.9(a) -City a party to pending litigation
1. City of Los Angeles vs City of El Segundo
2. El Segundo vs Hometel
3. El Segundo vs American Golf
4. Kilroy vs El Segundo
GC 54956.9(b) -City might have significant exposure to litigation
2 matters
GC 54956.9(c) -Ci1y might decide to initiate litigation
0 matter
GC 54957.6 - Employee Group Negotiations
1 matter
At the hour of 8:31 p.m. Council adjourned to the Mayor's Office for a Closed Session.
At the hour of 9:25 p.m. Mayor Protem Dannen entered the Council Chambers and at
9:45 p.m. the remainder of Council reconvened in the Council Chambers with all
members present and answering roll call.
City Attorney Dolley announced no actions were taken in Closed Session.
ADJOURNMENT
At the hour of 9:48 p.m. Council adjourned.
RECORDED,
RONALD L. HART, CITY CLERK
(3)
Council Minutes
June 27, 1989