10 Reasons Why Ken Hartley is a Bad Choice for Hermosa Beach City Council 2015

Thinking about voting for Ken?  Think again.

  1. Ken is paying for endorsements. His campaign paid $500 each to 2 slate mailer organizations: 1) “Parents for Progress” and 2) California Voters Justice Guide to have it appear that independent 3rd parties endorsed him.  The California’s Voters Justice Guide is NOT affiliated with any law enforcement organization. The Parents for Progress is not associated with any parent/teacher organization. The treasurer of “Parents for Progress” also mislead voters in a 2013 election in Torrance. Both of these organizations are “Chamber Approved” as noted on their websites.
  2. His leadership position on the Hermosa Beach Camber of Commerce is a conflict of interest. The chamber is a private organization. Did you that the 2 Fiesta Hermosa events are big fundraisers for the chamber? The city gets a very small fee. The city needs to regularly negotiate with the chamber on events, policy, etc.  Whose side will Ken be on if there is a conflict? History shows, he’ll be on the chamber’s side.
  3. Ken does not participate in the city council meetings. All other council candidates attend and participate regularly. Watch the previous council meetings. He’s just not there.
  4. He didn’t even bother to write a candidate statement in your sample ballot.
  5. He’d rather not shop in Hermosa, than bring a reusable bag to grocery store or pay a paper bag fee.  He posted that on social
    Ken Hartely's response to an ER article on the plastic bag ban.

    Ken Hartely’s response to an ER article on the plastic bag ban.

    media, AND he’s the chairman of the chamber of commerce for Hermosa Beach!

  6. Ken was on the payroll for the “Yes on Measure O” PAC, which was funded by E&B. See the “Yes on Measure O Form_460“.  Did youknow…E&B offices are still in Hermosa. The city council is still engaging them on issues. This E&B oil issue is not behind us. Their 30 year lease is still active.
  7. Ken supported Measure O until the final days. He flipped positions when the writing was on the wall that Measure O would fail. This not the kind of leadership we need. 
  8. Ken’s big supporters include E&B’s biggest supporters, like the man who brought a lawsuit against Keep Hermosa Hermosa/Stop Hermosa Beach Oil to stop their ballot arguments.
  9. Ken made a citizens arrest of a “No on O” activist for littering. Instead of accepting that person’s apology, Ken pressured our prosecutor to go to court. While in court, the city prosecutor dropped the charges in exchange for a $50 charitable donation. Ken cost our city time and money, rather than accept an apology.
  10. Ken Hartley wrote in 2002 when he lived in New Jersey: “I have no children, don’t want children and don’t need a law that supposedly makes guns safer.” Regardless of your opinion on gun control, his blatant disregard for children is troublesome. He certainly could have written that letter to the editor without that statement.

 

E&B FACT CHECK: County Tax Assessor Opinions Questionable

Rick Auerbach, retired L.A. County tax assessor, gave his opinion on Hermosa property values and the Hermosa oil project.

  1. Auerbach is not a realtor.
  2. In 2010  Auerbach endorsed John Noguez for Los Angeles County Assessor, and said “I strongly endorse John’s candidacy for Los Angeles County Assessor and know he will continue to treat both taxpayers and employees fairly and with respect.   In 2013 John Noguez was hit with more felony charges and was “accused of orchestrating a wide-ranging pay-to-play scheme, were hit with a dozen new felonies Monday charging them with illegally lowering taxes on three more commercial buildings.”  As of November 2014, Noguez is still awaiting trial.

The city’s own Cost Benefit Analysis said that property values would be negatively impacted.

E&B FACT CHECK: “Trust the Scientists” Ad

There a 2 areas where this ad is misleading.

  1. Canadian company Intrinsik’s definition of “significant” means permanent illnesses occurring throughout all of Hermosa.  The HIA lists MANY health impacts, including the possibility of death. If you read the details of the HIA, it is not a healthy project for the people who live, work, and visit in this area. Click here for the detail from the Health Impact Analysis (HIA) and to listen to Intrinsik actually making a joke about death from this project in a city council meeting last year.
  2. As for the Robert Kennedy Jr. comment in the ad (regardless of your opinion of vaccines), there are a couple of things that are wrong.
    1. Robert Kennedy Jr.is NOT the leader of the anti-vaccine movement.
    2. Robert Kennedy Jr.was quoted today as saying:  “I am pro-vaccine. I had all six of my children vaccinated. I believe that vaccines have saved the lives of hundreds of millions of humans over the past century and that broad vaccine coverage is critical to public health. But I want our vaccines to be as safe as possible.”  While many disagree with him on banning thimerosal in vaccines, this has NOTHING to do with the health and safety risk of this oil drilling project and has nothing to do with the upcoming discussion on environment in which Robert Kennedy Jr. is a panelist, among many panelists.

UPDATED: E&B Inflates Revenue Over 1,000%; Property Values will Take a Huge Hit!

Oil Drilling in Hermosa Beach is a Bad Deal (click image for full view)

The $500M-$600M that E&B says Hermosa Beach will make from oil drilling is as real as a Unicorn and here’s why…

Royalty payments are based on the amount of crude oil produced multiplied by the price of that oil at the time of sale.  According to the Cost Benefit Analysis (CBA), done by an independent 3rd party (Kosmont), the “most likely” amount of oil to be produced is no where close to the amount that E&B is advertising. Also, E&B’s estimate uses a price of oil that is more than double today’s (2/2/15) price of oil and an amount of oil that the CBA refutes. Kosmont has revised their summary estimates for lower prices of oil given declining price of oil and to reflect the Development Agreement.

Oil Production

The CBA lists various oil production scenarios: low, expected, high, and applicant (E&B). According to the CBA, the “low” oil production scenario is actually the “most likely” to occur with a 90% confidence level. “Expected” only has a 50% confidence level.  The “high” level is at a 10% confidence level, and the applicant (E&B) estimate is so high, that the CBA doesn’t even have a confidence level for it. Therefore, we voters need to look at numbers that are realistic and not wishful thinking, which is the “low” or “mostly likely” amount.

Price of Oil 

Goldman Sachs annotated chart of the history of crude oil prices

Figure 2: Goldman Sachs annotated chart of the history of crude oil prices. Click image for larger view and article.

The CBA has various scenarios based on California Midway-Sunset (CMS) oil prices. E&B uses $105 in their estimates. The price of CMS has been in the low 40’s the past few months; therefore, the above graphic uses the $40 ppb scenario. There is a worldwide oil glut driving the price down. Some are saying that we are in a oil price bubble.  Some projections even go as low as $20-$40. The price of oil has fluctuated wildly throughout history. Saudi Oil Minister announces that they will not cut production, and a Saudi prince says that oil will never be $100 again.  Also, demand for oil is slowing and continues to slow, according to Bloomberg.

As some point, the price of oil could become so low, that this project would not be viable for E&B. Kern county, home of E&B, is very concerned about dropping oil prices.

Real Losses to Hermosa Beach Residents, Businesses and the City

As soon as the construction starts, Hermosa property owners will lose equity. Those closest to the site could lose a significant amount of money.  Collectively, homeowners could lose more money than the city of Hermosa Beach would gain.  There are business within 100 feet of the site, who are at risk to losing revenue due to noise, smell and truck traffic. This project could negatively impact tourism and the dollars that tourism brings to all business and the city. The city has also received over $600k in grants for green and sustainability initiatives in the last 2 years. There’s real money to be gained in  green and sustainability projects. It’s hard to be green with 30 oil wells and 4 wastewater injection wells a few blocks from city hall.

Direct Costs to the City

The above graphic (Figure 1) is showing the NET revenue to the city AFTER direct costs are paid by the city. These particular direct costs that come out of the unrestricted, general fund amount to more than $2M than what it will cost to just pay off E&B.

The only winner, if oil drilling is allowed in Hermosa Beach, is E&B.

After the direct costs are paid, this is only an increase of about 1% to the general fund based on today’s budget numbers. There will be unknown additional expenses too (e.g. emergency response). The city may not even make any money, and could even lose money.

And if the price of oil stays where it is or declines further, even E&B may not be a winner.

A comment on those restricted tidelands fund… No money for schools, city hall, fire department, undergrounding power lines, police officers, community center or theater improvements, and sewer funding would be restricted to parts that could impact tidelands areas.

For a much more detailed analysis on financial impacts, go to http://www.hboilfacts.com/.

 

 

 

E&B FACT CHECK: On the “Day at the Beach” ad

Over 80% of the petroleum products we use are used for fuel.

A very small amount of oil is used to make plastics.  In the U.S. plastics are not made directly from crude oil, but from Natural Gas Liquids, Liquid Petroleum Gas, and natural gas.

As we move to renewables for energy production, hybrid and electric vehicles, the military exploring seawater for jet fuel, etc., the demand for oil will continue to soften.  So there are plenty of other sources in places far from homes, like in North Dakota, that can supply the oil used for “stuff”.

Barrel of Oil EIA

Click image for source article from the U.S. Energy Information Association

Hermosa Beach Police and Measure O

HBPOAE&B has just placed a political add with Jamie Ramirez, Hermosa Beach Police Sergeant, saying that the Hermosa Beach Police Officer’s Association supports Measure O because they need more pay.

Ramirez has a pay package totaling $283,459.00. See Transparent California for the details.  The Hermosa Beach Police Officers’ Association is a non-profit organization  that provides legal representation and  negotiates benefits and wages for the Hermosa Beach police force.

The Hermosa Beach Chief of Police has made the following statement in response:

SETTING THE RECORD STRAIGHT:

The Hermosa Beach Police Department does not endorse political candidates or ballot measures. We have NOT taken a position on Measure O. We remain committed to providing the high level of professional service you expect from your police department. Opinions expressed by employee associations and unions do not represent the official position of the Hermosa Beach Police Department.

Sharon Papa
Chief of Police  (Her comment can be seen on the HBPD FB page)

So, why would the HB POA do this? Here are 2 possibilities:

  1. They did not do their research, and honestly don’t know the health risks to the public, and that there won’t be much or even any money for the city.  They did not reach out to Keep Hermosa Hermosa/Hermosa Beach Stop Oil to discuss this project.
  2. Their organization has already taken a donation from E&B or are promised a donation in exchange for their public support.

It is a shame that Hermosa Beach police, who’s job it is to protect the public, are supporting a project that puts the public at risk.

Notes: 

  1. The vote to support Measure O was not unanimous.
  2. It was excellent timing to voice support of this measure AFTER their year end fundraising drive.
  3. California has strict rules on police officers and politics.   Such as, “No officer or employee of a local agency shall participate in political activities of any kind while in uniform.”.

E&B’s PR Firm: Specialists in Lobbying, Crisis Management, Litigation Support, Advertising

With the recent press releases and ads that have become more and more outrageous and false, let’s meet the man and PR firm behind it all.Word PR on newspaper

Eric W. Rose is a partner at Englander Knabe & Allen PR firm. It’s his name we see quoted in the press.

One case study on the PR firm’s website highlights the City of Whittier and how they influenced the city council to vote for oil drilling. Here are some quotes from Englander Knabe & Allen on their Whittier strategy:

  • Wrote signs that said “Our Family Supports Whittier’s Future”.  — Comment:  Sounds like E&B’s “Protect Hermosa’s Future” signs/citizen’s group.
  • “Through our program we were able to find local spokespeople who agreed to sign letters to the editor and who also agreed to comment at the public hearings of the Planning Commission and the City Council.”Comment:  Hmmm…. Wonder if E&B’s supporters are writing their own letters and ad statements or just signing what E&B wrote.
  • “Our program not only increased citizen awareness of the project, but it provided the appointed and elected officials with the “political cover” they needed to make the right decision.” — Comment:  Interesting statement on the “political cover”. The Whittier city council voted 5-0 in favor of the oil project.

Unfortunately for the oil company, later the LA County Board of Supervisors rejected the project, and it’s now on hold.  “The supervisors voted unanimously to deny the city the change in use from habitat preserve to oil and gas drilling operation on land bought by county taxpayers.”

As of January, 2015, the city of Whittier plans to defy the county and drill anyway, says the Wittier Hills Oil Watch Group.

Not only do we need to vote “No on O”, but we need to also support our city officials who are also “No on O”.

— Comment: Wonder if E&B was really behind that ballot argument lawsuit. It seems highly unlikely a resident, who is not a specialist in election law, could have raised the argument and paid the lawyers and court costs.