Check out Openuplongbeach.com for Latest Budget Info

Please check out Openuplongbeach.com on which I am posting information concerning the proposed cuts to the City Budget.

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• City Council Adopts On Line Budget Information System
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LB Public Health Warns About Flea Borne Typhus

Scanning Electron Micrograph of a Flea. See bellow for a colorized version of this image. Fleas are known to carry a number of diseases that are transferable to human beings through their bites. Included in this infections is the plague, caused by the bacterium Yersinia pestis. (Photo credit: Wikipedia)

Long Beach Public Health Officials Issue
Recommendations to Prevent Flea-Borne Typhus

The City of Long Beach is alerting the public about flea-borne typhus, a disease transmitted to humans by fleas.  In 2012 to date, eleven cases of flea-borne typhus have been reported among Long Beach residents, as compared to nine reported for all of 2011.  Officials conducted a detailed investigation into the cases that have been reported, and believe that in all cases, exposure to fleas carried by opossums, cats, or rodents may have been the source of infection.  Prior to 2006, flea-borne typhus was not known to be present in the City of Long Beach.

Flea-borne typhus (murine typhus) is a disease spread by fleas living on rodents (rats, mice), opossums, cats, and raccoons.  People get the disease through the bites of infected fleas.  Flea-borne typhus is not spread from person to person.  The most common symptoms of flea-borne typhus are high fevers, severe headaches, body aches and a rash.  The disease is rarely fatal, but people can become sick enough to be hospitalized.  

Public Health Officials will continue to monitor and test for evidence of flea-borne typhus in areas throughout the City.  Informational materials will also be distributed to inform the public of this disease and how to avoid it.  The information can also be found on the City's Health Department’s website at www.longbeach.gov/health.  Area veterinarians will receive a letter requesting they educate pet owners on the importance of flea control in preventing flea-borne typhus.  Long Beach has also issued letters to area health care providers providing guidelines on the diagnosis and treatment of this disease.  

The City's Health Department urges residents to protect themselves, their families, and their neighbors from flea-borne typhus by following a few simple guidelines:  

1. Consult your veterinarian regarding safe flea control medications for your pets;
2. Keep your home and yard in good repair by removing overgrown vegetation and debris where rodents, opossums, and feral (wild) cats may hide. Keep screens on crawl space covers and vents in good repair.
3. Avoid contact with animals that carry fleas. Do not attempt to capture and relocate these animals to other areas.
4. Eliminate all food and water sources around your home, including open trash cans, fallen fruit around the yard, pet food, and bird feeders;
5. When cleaning nesting areas of rats and opossums, spray area with disinfectant, and wear protective clothing and equipment (i.e., mask, goggles, gloves);
6. When treating your yard or animal harborage areas with insecticides, only use products labeled for flea control and follow all directions carefully;
7. Contact the City’s Animal Care Services by email at animalcare@longbeach.gov, if you have questions about managing opossums and stray or feral cats on your property. More information on urban wildlife is available online at: http://www.longbeach.gov/acs/urban_wildlife/default.asp.
8. Report dead opossums or cats to Animal Care Services for removal by calling (562) 570-PETS (7387).

For more information about fleaborne typhus, please contact the Health Department’s Epidemiology Program at (562) 570-4302.  Information is also available online at www.longbeach.gov/health.

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Schipske Schedules Work Party for Pan Am Park

Schipske Continues To Shape Up the 5^th District
Work Party At Pan American Park To Focus On Landscaping And Painting

(LONG BEACH, CA; August 8, 2012) – Fifth District Councilwoman Gerrie Schipske invites you to join her and other residents to “Shape Up The Fifth District” this Saturday at 8 am, August 11^th at Pan American Park, located at 5157 East Centralia Street, Long Beach, CA.  “Shaping Up the 5^th” is a program designed by Councilwoman Schipske to engage residents in identifying things that need to be fixed or upgraded in the parks and neighborhoods of the Fifth District. The items are reported to the appropriate city departments and tracked by the 5th District staff.

The "Shaping Up The Fifth" Work Party at Pan American Park expands the program to include landscaping, clean up and painting.  

"My staff and I, along with the help of residents, will be painting benches and tables, spreading mulch on several areas, and planting new shrubbery around the park’s snack bar."  
“This park is very important for families in this neighborhood, and with budget cuts looming, it is important that we all participate in doing what we can to keep Pan Am Park looking good," adds Councilwoman Schipske.  

On June of 2011, Councilwoman Schipske launched “Shaping Up The Fifth” to keep account of a street-by-street inventory of infrastructure that needed repair. The program gives residents the opportunity to participate in identifying what is needed to keep the City of Long Beach clear of any safety hazards.  Residents are encouraged to notify Councilwoman Schipske on line at www.lbdistrict5.com, and can fill out a simple form that lets her know about broken sidewalks, uprooted trees, standing water issues, faded street signs, and raised curbs, and gutters.

“I started walking the 5^th district several years ago,” says Schipske. “But the district is 11.5 square miles.  I need help getting to every street in order to provide the city with a complete inventory of what needs to be repaired or replaced."  

For more information on Shaping Up The Fifth at Pan American Park, please contact the Office of Councilwoman Schipske at 562 570-6932, or by email: district5@longbeach.gov.

Long Beach Needs to Get Ready for Big One

The Long Beach earthquake, estimated magnitude 6.25 Ms, occurred at 5:55 p.m., March 10, 1933. Brick buildings with unreinforced masonry walls, including many school buildings failed catastrophically. 120 people died in the quake largely from collapsed buildings or falling debris. (Photo credit: Wikipedia)

The City of Long Beach was devastated in 1933 when a major earthquake hit the city. 90% of the schools were destroyed due to faulty construction. Students had to attend classes for almost 2 years -- in tents and on the grass at local parks.

Back to the future. Right now small quakes have been hitting southern California. Last night and then this morning, several more.

Long Beach needs to get ready for the next big one that is coming. I have mandated my staff to complete CERT training (as I have done). Community Emergency Response Training is one of the best ways to get prepared. It is training provided by the LB Fire Department.

Here's what city government needs to do:

• Fill the position of Disaster Preparedness Director. A few years ago, the Disaster Preparedness Director left the city. He has not been replaced.
• Mandate that every senior city staff person completes NIMS -- National Incident Management System. Encourage the local school districts and hospitals to have their senior staff complete it as well.
• Expand CERT training so that more and more residents can get trained on what to do if an earthquake hits.
• Upgrade the city website on emergency preparedness so that is includes more information and looks like www.readyla.org. (I requested this several months ago.)
• Communicate with residents about what to do and where to go if their homes are destroyed by an earthquake. 
•  Make sure pet owners know what they need to do to prepare in the event of an earthquake. www.readyla.gov has information.

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City Council Adopts On Line Budget Information System

Tonight the City Council reviewed the Long Beach Budget Challenge -- an online system that allows residents to review the proposed budget for Fiscal Year 2013 to engage residents in making decisions on how to balance our city's budget.

I recommended that the Council utilize the system developed by Next10.org, a non profit organization which developed the California Budget Challenge.

The online Long Beach Budget Challenge can be accessed at: http://www.longbeach.gov/budgetchallenge/

Go online today and find out what the budget is and give us your input on what decisions need to be made to balance the city's budget. I will keep sending additional information on the budget -- when we will have meetings and how you can become engaged.

It Isn't "Normal" But Certainly Is "New" to Cut Police and Fire Services When Crime and Calls For Services Are Up

The Mayor has announced serious cuts to the Police Department and the Fire Department (see future blogs on that one) and declared that his budget is "The New Normal."

He also stated that elected officials should not "get caught up in a panic or rush to judgment regarding crime increases..."

Well, it isn't "normal" but it is certainly "new" that a Mayor or City Council would cut public safety services at a time when crime is up and increased crime is projected because of thousands being released from prison.

But don't just take my word as someone in "a policy position" -- here is the latest from the Long Beach Police Department:

Schipske Responds to Mayor's Budget Proposals -- Says cut disproportionately hit 5th Council District

 

For immediate release

Contact: Office of Councilwoman Gerrie Schipske: 562 570-6932

Schipske Responds to Mayor’s Release of FY 2013 Budget

Long Beach, CA – August 1, 2012 – Fifth District Councilwoman Gerrie Schipske today issued the following statement in response to Mayor Bob Foster’s release of his Fiscal Year 2013 Budget. The City Charter requires the Mayor to give his budget by August 1 so that the City Council can pass a balanced budget not later than September 15^th.

“I want to thank the Mayor, the City Manager and the staff of Financial Management for their work and diligence in preparing the recommended FY 2013 budget. It is not an easy task because of the scope of services provided in this city and the complexities involved in funding these services.

The city budget is the most important policy document this city council will review as it charts the course for the city’s future and maps out what we want that future to look like.

This budget must balance the need to provide core services in an economy which has reduced revenues and that has been slow to fully recover. 

That being said, I listened to the Mayor and read his statement. I also reviewed the materials which were only given to the three council members in attendance after the press conference. I am concerned that for the second year in a row, there is an announced oil surplus (in excess of $17 million), yet reductions in services in police, fire, library and recreation services are being proposed. There is also a list of items on which the ‘surplus’ is to be spent as outlined in the Mayor’s proposals.

This approach doesn’t make sense. If I have debts, the very first thing I must do when I get more money than I budgeted, is to pay those debts – not to go off and buy a new car. 

For the past two years, we have been told – to cut essential city services such as police, fire, recreation, and libraries – and then spend the so called ‘oil surplus’ on projects.

Alternatively, the budget deficit announced for FY 2013 is not a surprise. It was announced in last year’s budget. So it doesn’t make sense if you knew you were facing a deficit in the coming year that you would spend surplus funds. Why wasn’t the ‘surplus’ of last year used to prevent a deficit this year?

The proposed budget cuts should be of particular concern to residents of eastside Long Beach -- especially the 5^th Council District:

• ·        A further reduction in fire department services and a major change in the staffing of medical services response units which will downgrade the level and type of staff on each rescue unit;
• ·        A reduction of three police divisions into two and the planned retirement of 40 police officers;
• ·        The elimination of after school and youth sports programs from all 5^th District parks so that they can be provided only in ‘areas with greatest density, highest crime and limited alternative recreation activities’;
• ·        Cutting Park Ranger patrol services of city parks to three days a week only at El Dorado Regional Park;
• ·        Reducing branch libraries to becoming ‘self-service’ locations with minimal library staff and the laying off of 17 positions; and
• ·        Cutting $1 million dollars (1/3 of total amount) for sidewalk repairs (the 5^th has the most sidewalks needing repair in the entire city).

I am particularly concerned to hear (and read) the Mayor’s response to the increase in crimes on the eastside:  Mayor Foster stated: ‘No one in a policy position should get caught in a panic or rush to judgment regarding crime increases. We all should remember that crime hit 40 year lows, so recent increases in some segments are applied to a very low base.’

Excuse me? Violent crimes are up in the eastside. Residential and commercial burglaries are up in the eastside. Auto theft is up in the eastside. At every public meeting held by the Long Beach Police Department, there is a discussion that with prison re-alignment this level of crime will continue and increase. And council shouldn’t ‘rush to judgment?’

I will be holding a budget town hall at which I invite the Mayor and City Manager to address residents about why this budget as presented includes unacceptable disproportionate cuts for the eastside of Long Beach – especially the 5^th Council District."

 Click link below to see full FY 2013 budget and documents:

http://www.longbeach.gov/finance/budget/documents/default.asp

White Fly Infestation -- What We Are Doing

Many constituents have written me recently complaining about the dreaded white fly that is infesting streets of our city trees.


Our City Arborist (tree specialist) has been inspecting these trees and working with both the County of Los Angeles and the University of California -- Davis experts about white fly control.


Here's what they say:

Message from Public Works Department:

“We are still struggling with the overwhelming abundance of white flies. Weather conducive to early and rapid replication created a population of white flies beyond our preparatory efforts for biological control.

"We confer with the University of California Agriculture and Natural Resources and follow their Statewide Integrated Pest Management Program. The recommended process to control white flies is through the placement of natural enemies such as lacewing larvae.

“External application of pesticides are not overly effective and the most effective pesticide is Malathion, which we don't want to use. A more recent alternative that has come to our attention is Trunk Injection. This process injects an insecticide into the phloem system of the tree. When the white fly feeds on the tree's sap, they become infected and die.

"This process should not be used on trees that will produce food within the year following the process.

"For Council District 5 in particular, we are focused on Ash trees, so this caveat is not of concern. We have conducted a pilot on a couple of Ash trees on Ladoga and Deborah Streets. The insecticide takes 7-10 days to work through the tree to the sap and we will be checking for efficacy next week. If this process works better than a biological approach, we may go citywide on our 1,500 Ash trees.”

---Michael Conway, Director, Public Works Department

I am including a slide presentation (click here) (done in Florida -- which has the same problems) that you might find helpful, as well as links to articles and websites. (Click here to get article on home garden pest management)

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Another take on what is really being "business friendly" in Long Beach

Click this link to see ratings of 75 cities regarding literacy.

Interview on Medical Marijuana and Early Long Beach

City Documents You Need to Read -- July 2012

Flag of Long Beach (Photo credit: Wikipedia)Dear Readers,

As you know I receive a great deal of documents as your representative on the City Council. I also generate documents -- items that I place on the council agenda for a vote by the full council.

The following documents are important for you to read. They provide a wealth of information on a number of topics. After you read them, please feel free to contact me to discuss: district5@longbeach.gov.

Documents: Click on the title of each document to read full document.

• Decision not to spend $10 million on constructing an underground tunnel to new courthouse. Was pleased that management made this decision -- I opposed the expenditure.
• Update on funding for the Long Beach Municipal Band. This memo has been issued prior to the City Council voting on next year's budget.
• Pension Reform Scenarios. This was presented by City Management this week. Unfortunately, without state legislation the city council is very limited on any additional pension changes it can make.
• Consultant Comparisons of Long Beach with Other Cities. This was prepared by a consultant the City Manager hired to review possible organizational reform.
• Listening to Business. This is my council agenda item that was passed recently to have a forum with small businesses to listen to how we can make the city more business friendly. I will update you when a date is selected.
• Community Gardens Update. During the discussion of where to locate a dog park in El Dorado Park area, there were questions raised about the Community Gardens and possible contamination caused by run off from off leash dogs. The memo is a response to my questions.

Serving on Medical Board of California

I am finishing up two days of a quarterly meeting in Sacramento on the Medicsl Board of California. I have been reappointed for another four years by the Senate Rules Committee. I serve as a public (non physician) member. There are 15 on the board. Eight are
Physicians. Seven are public members. While there is not a slot for other health care professionals, I am the first and only registered Nurse on this board and any other Medical Board in the US.

The Board licenses and disciplines the over 130,000 MDs. We also oversee physician assistants, licensed midwives (non nurse midwives),lens and glasses dispensers, and a new category of polysomnographers-professionals who test for sleep apnea. I currently serve on the Executive board as secretary. I chair the committee on physician supervision and have been working on regulations to deal with the legislation on how physicians should supervise licensed staff in doing laser or light pulse therapies for cosmetic purposes.

Between meetings all board members must review numerous cases on line and render a vote on proposed discipline being considered for physicians who have broken the law.

As part of my health care administration classes I teach at CSULB, I teach about the board and how consumers need to be aware of its functions.

I honored to serve on this board and look forward to my next 4 years.

Special alert on traffic construction

http://myemail.constantcontact.com/Special-Alert----Two-Week-Freeway-Connector-Closure.html?soid=1101716177586&aid=4_zFMdTYNiw

Why We Are Not San Bernardino and Stockton and Vallejo...

SAN BERNARDINO, CA - JULY 12: San Bernardino City Hall is reflected in the windows of one of the vacant buildings across the street on July 12, 2012 in San Bernardino, California. The San Bernardino City Council voted this week to file for Chapter 9 bankruptcy protection, making San Bernardino the second largest municipality in the nation ever to file for bankruptcy and the third in California to opt for bankruptcy in the past two weeks. Stockton, California with a population of nearly 300,000, became the biggest when it filed for bankruptcy on July 3, and the Sierra Nevada Mountains ski town of Mammoth Lakes, California filed onte same day. Rightfully, residents are concerned by what they are reading in the press -- California cities are filing for bankruptcy because their deficits outweigh their revenues. So when the Mayor announces a "deficit" here in Long Beach -- it sends chills up the spines of those many.

With all due respect to the seriousness of the financial situations at San Bernardino, Stockton and Vallejo -- I know those cities and believe me, Long Beach is no San Bernardino, Stockton or Vallejo.

Here is why:

• In each of those cities, money was spent on developments that obligated the city funds at a time revenues were on the decline because of the real estate market and stock market bust. Long Beach did not undertake similar projects -- even though it has been approached on recent occasions to consider tearing down city hall and leasing (to buy) a new city hall.
• In the case of San Bernardino, apparently the budget figures given to the council were bogus for 16 years -- and their budget wasn 't balanced. Due to the diligence of several council members who ask in depth questions about the budget, the budgets are real in Long Beach.
• In all cities, lifetime health care benefits were given to employees. Long Beach DOES NOT provide such a costly benefit.
• Those three cities were unable (or unwilling) to negotiate pension reforms with their employees -- to have employees pay their contributions and to increase retirement age and to reduce the amount paid out at retirement. Long Beach has been very successful in negotiating these reforms with our employees groups -- we are awaiting the final agreement with our miscellaneous employee (non public safety) group to have this completed.
• Unlike the three other cities, Long Beach owns and operates its own port, airport, oil wells, gas utility and water utility.
• Unlike the other three cities, Long Beach historically has placed sufficient funds into its reserves. San Bernardino apparently only had $115,000 in reserves. That is outrageous.
• In all three cases, the bankruptcy law does not allow the cities to escape their pension debt. Long Beach also cannot escape its pension debt or unfunded liability. (It's like a mortgage. You get something in return for the promise to pay off the cost of that something over a long period of time. The city agreed to pay for pensions of its employees. It cannot suddenly decide it doesn't want to.)

So we need to heed the lessons of these three cities as what not to do. And Long Beach certainly has in place sound financial practices. However, much more needs to be done to protect our future:

1.  Adhere to Responsible Management and Fiscal Practices

2.  Focus on Core Services

3.  Pursue Alternative Service Delivery Models

4.  Maintain a Sustainable Workforce

5. Raise New Revenues while Protecting and Maximizing Existing Sources

I will continue discussing our City finances as we begin the FY 2013 Budget cycle. I will continue asking questions and demanding the best for the residents of Long Beach.

Related articles

• A Q&A on the San Bernardino bankruptcy

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• San Bernardino Third Cali. City to Seek Bankruptcy - Businessweek

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• San Bernardino, Stockton took different routes to bankruptcy

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Urgent -- US Senate Debating Whether LB Residents Shall Be Mandated to Buy Flood Insurance

Barbara Boxer, United States Senator from California (Photo credit: Wikipedia)Dianne Feinstein, member of the United States Senate. (Photo credit: Wikipedia)1:55 pm Wed. June 27 -- Just received word that the Flood Control Insurance is being debated right now. Please call Senators Boxer and Feinstein immediately and tell them to remove Long Beach from the list of cities to be required to buy flood insurance even though the threat of flooding is minimal!

Office of U.S. Senator Barbara Boxer
112 Hart Senate Office Building
Washington, D.C. 20510
(202) 224-3553

Senator Dianne Feinstein

United States Senate
331 Hart Senate Office Building
Washington, D.C. 20510

Phone: (202) 224-3841
Fax: (202) 228-3954
TTY/TDD: (202) 224-2501

Wall Street Journal Reads Councilwoman Schipske's Blog

Just received a news alert that the Wall Street Journal has included me in an article about the proposed increase in flood insurance which would impact Long Beach and is unnecessary.
http://online.wsj.com/article/SB10001424052702304458604577488990400234060.html?mod=googlenews_wsj

Reporter Alan Zibel called me from Washington, DC after he read my blog on how I sent an alert to my constituents that this legislation was on the US Senate floor, encouraging residents to contact both US Senators from California to oppose this expansion.

Gerrie Schipske, a member of the Long Beach, Calif., city council who opposes that plan, sent an email to her constituents over the weekend aimed at rallying opposition. Ms. Schipske says the Long Beach and San Gabriel rivers, which flow through concrete channels in her city, stand little risk of flooding. If the Senate bill isn't changed, she said, "a great portion of the homeowners will have to pay this flood insurance.…It's an unnecessary burden."

 Glad we got their attention in Washington, D.C. The bill is still pending Senate action this week. Apparently an abortion related bill is getting in the way from the US Senate doing its real work.

Please Join Us in Next Door District 5

Write text here...

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Join LBreport.com in calling upon California Congressional Delegation to Fight Flood Insurance Bill

From www.lbreport.com:

On Monday June 25, the U.S. Senate is poised to discuss a bill which includes verbiage -- removed from the House version that the City of Long Beach wants removed from the Senate version -- that would impose mandatory "flood insurance" on tens of thousands of homeowners and commercial property owners in much of LB and southeast L.A. County, claiming they are at "residual risk" of a "500 year" (0.002 annual chance) flood from federally certified levees to prevent a 100 year-flood. The real reason for this section of the bill is to bail out the Congressionally-created "National Flood Insurance Program" (administered by FEMA) which is financially unable to cover major flood claims.
If you want to take action, we urge you to send an email (suggested text below) to Senators Boxer and Feinstein (links below) so their offices will receive it by Monday morning east coast time. We suggest the following cut-and-paste text but feel free to compose your own:

Senator: My family is among many in Long Beach and southeast L.A. County who will be harmed by section 107 of S. 1940 that the Senate is scheduled to discuss on Monday. One section of that bill would re-impose federal "flood insurance" impacting hundreds of thousands of residents, draining money from my family that we could otherwise spend on our family and children and at neighborhood businesses. The City of Long Beach and Mayor Bob Foster have urged you to do what the House of Representatives (including our two House incumbents, Laura Richardson and Dana Rohrabacher) did last year: delete the "residual risk" section of the bill. This is especially justified here, where we fairly recently completed costly 100-year flood protection levee improvements advanced by the late Congressman Steve Horn and enacted with your support.
The issue now isn't about flooding. It's about funding. Congress shouldn't do what predatory insurers do elsewhere, trying to gouge middle class and working class families to gain revenue.
Please make a floor amendment to do what the House did and delete the "residual risk" verbiage of S. 1940. If that fails, please offer an amendment that will unambiguously exempt the Long Beach/Los Angeles County Drainage Area (LACDA, where the L.A. river has no history of flooding since it was channelized decades ago and 100-year flood protection was recently improved) from any "residual risk" designation. .
Simply voting against the current legislative text while your colleagues vote for it won't do what we need done. We need your advocacy to ensure that the "residual risk" section of the bill doesn't advance to a conference committee where it could become law.

Senator Boxer's email: http://boxer.senate.gov/en/contact/policycomments.cfm
Senator Feinstein's email:  https://www.feinstein.senate.gov/public/index.cfm/e-mail-me

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• Fed flood insurance program gets 60-day extension

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Workshop for First Time Home Buyers In Long Beach

The Neighborhood Resource Center and Union Bank invite you to a

First Time Home Buyer Workshop

"Making the Dream of Home Ownership a Reality"

Presented by Union Bank and Operation Hope

Saturday, June 23, 2012

10am - 1pm

1900 Atlantic Avenue

Second Floor Conference Room (Free Parking On-site)

Learn valuable information to help you understand the home buying process

1) Learn what you need to prepare for home ownership

2) Why credit scores are important for mortgage approval

3) The pros and cons of owning versus renting

4) Learn about various mortgage programs, grants, and much more

RSVP to the Neighborhood Resource Center at (562) 570-1010 or sharron.hinkey@longbeach.gov

Let's Not Miss a Golden Opportunity

Oil field in Long Beach, 1920 (Photo credit: Wikipedia) For the first time since the 1970s when citizens brought campaign finance reforms to Long Beach, two ballot measures have qualified with signatures requiring the City to conduct an election this coming November.

This means that the City must now spend over $300,000 to conduct this election -- we have no choice because the ballot measures qualified. The good news is that we can place additional measures on the ballot without much additional expense -- a factor that has kept the city from putting items before the electorate.

This would be an opportune time then to fix two serious problems in the City's "oil production tax."

First problem:

• The city has two oil production taxes. The first was enacted by the City Council in the late 1990's and places a 15 cents per barrel tax on all oil produced in Long Beach. That was when oil was $24 a barrel. So this .15 cents (which has not increased ever) amounts to .006 per dollar.
• In 2006, the voters approved Prop H which set a .25 cents a barrel fee to be used for police and fire. An inflation factor was added based on the Consumer Price Index. Unfortunately, the CPI does not reflect the real increases in crude oil. Instead a Producer Price Index (used by the City of Signal Hill for their oil production tax) is more accurate. Had we used the PPI -- the City would have realized an additional $1.9 million from this tax since 2006.
• Unfortunately, the two taxes were not combined -- so any inflation factor is only applied to the .25 cents a barrel and not the entire .40 cents a barrel.
• Today, the crude oil produced in Long Beach (the 3rd largest oil field in the US) is selling at $96.00 a barrel. This means that currently the City of Long Beach is only getting .004 cents per dollar on its production tax.
• The City needs to combine the two production taxes so that it receives the appropriate amount of revenue.

Second problem:

• The City's oil production taxes are based upon the number of barrels of oil produced. Production has decreased since the late 1990s because early aggressive drilling removed alot of the oil However, new techniques promises to produce a steady supply. A per barrel tax on decreasing production results in decreasing revenue stream as the number of barrels decreases.
• Concurrently and historically, the price of crude oil has steadily increased.
• So, the City will continue to see less revenue if the oil production tax is only based upon number of barrels produced.

Additional information:

• The price paid to oil producers is posted daily by the refineries which purchase the oil. (See this link: http://www.crudemarketing.chevron.com/posted_pricing_daily_california.asp)
• Any taxes placed on the posted price DO NOT get passed along to the consumers -- or at the pump as the phrase is stated. That's because the tax is paid before the oil is sent to the refinery so no additional costs are added to that price.
• The high cost of crude oil which is refined into asphalt is making it impossible for the City to fix its streets.
• Signal Hill is now at @ .83 cents a barrel (because it uses the PPI inflation factor).

So what could we do right now with a ballot measure:

• We could ask you the voters to approve consolidating the two taxes and changing the inflation factor so that it keeps up with the true cost of oil   OR
• We could eliminate both taxes and set a new one that is either $1.00 a barrel or 2% of market value (which ever is the greater).
•  A flat $1.00 a barrel or 2% of market value for oil severed and saved by or for the owner or operator would mean that revenue derived for Long Beach can sustain the ups and down of a volatile market. 

For instance:

• a flat $1.00 a barrel when oil is $90.00 a barrel with production @ 12 million barrels, results in @ $12 million for the City; 2% of market value when oil is $90.00 a barrel with production of @12 million barrels results in @ $21.6 million.
• When oil goes to $100 a barrel, with a production rate of 9 million barrels, this results in  $1 dollar x 9 million barrels which equals $9 million for the City; 2% of market rate value when oil is $100 with production at 9 million barrels would result in $ 18 million. (By the way this calculates out to be .02 cents a gallon.)
• When oil goes down to $55 a barrel, with a production rate of 9 million barrels, this results in $9 million with the per barrel rate; and $9.0 million for the market rate.
• When oil goes down to $45 a barrel, with a production rate of 9 million barrels, this results in $9 million with the per barrel  rate; and $8.2 million for the market rate.
• When oil goes to $110 a barrel, with a production of 8 million barrels, this results in $8 million with the per barrel rate; and $17.6 million for the market rate.

Again, an increase in the Long Beach production tax will not increase gasoline at the pump because gasoline prices are set based upon the "Brent crude" index which is the price of overseas oil and which is used to price 2/3rds of the world's crude supplies. The oil produced in Long Beach is valued based upon the West Texas Index and traded on NYMEX. Much of the oil produced locally is used for asphalt.

Keep in mind just how small of a tax is being proposed on Long Beach oil if we go to $1 a barrel or 2% of market value x number of barrels. Today, oil is at $96.00 a barrel -- so $1 a barrel would mean the producer is left with $95 a barrel or 98.8% of the value. A 2% of the market rate would be $1.92 and leave $94.08 a barrel or 98% of the value.

Each barrel contains 44 gallons so the above scenario results in Long Beach receiving .04 cents a gallon.

Keep in mind Long Beach's major oil producer posted a $1.6 billion (that's billion) dollar profit for the 1st quarter of this year.

For what uses will this revenue be used? I suggest we work out a formula whereby we apportion the following:

• Police and Fire (50%)
• Street Repair (25%)
• Libraries (10%)
• Recreation (15%)

I also suggest that a citizen oversight committee be headed by the City Auditor and appointed by the Mayor and Council to ensure that the funds are spent appropriate.

Because the City has to conduct an election this November I think we should put this measure on the ballot so that this additional needed revenue can be made available.

What do you think?