HomeMy WebLinkAbout1968-01-29MINUTES
Council Chamber, Civic Center
Huntington .Beach, California
Monday, January 29, 1968
Mayor Shipley called the regular adjourned meeting of the City Council
of the City of Huntington Beach to order at 7:30 P.M.
The Pledge of Allegiance was given by all present in the Council Cham-
bers.
ROLL CALL
Councilmen Present: Coen, Bartlett, Gisler, Kaufman, Stewart, Green
Shipley
Councilmen Absent: None
12#
AIR POLLUTION � � `HAL-CHENOWETH
Councilman Green introduced Mr. Halsey B. Chenoweth, an applicant for
theCounty Air Pollution Control.Board. Mr. Green stated that Mr. Chen-
oweth was desirous of helping the City of Huntington Beach with future
problems in the field of.air pollution.
On motion by .Green, Council, directed the City Administrator to get to-
gether with.Mr. Chenoweth to work out. details whereby he can assist the
City of Huntington Beach on air pollution problems. Motion carried.
PUBLIC HEARING -'OIL LICENSE TAX ORDINANCE NO 1388
Mayor Shipley announced that this was the day and hour'set for a public_
hearing before the first reading of Ordinance No. 1388 "AN ORDINANCE OF
THE CITY COUNCIL OF THE CITY OF HUNTINGTON.BEACH AMENDING CHAPTER 21 OF
THE.HUNTINGTON BEACH ORDINANCE CODE BY ADDING ARTICLE 215 AND SECTIONS
THEREOF PROVIDING FOR THE IMPOSITION OF A LICENSE TAX UPON PERSONS EN-
GAGED IN THE BUSINESS OF PRODUCING OIL IN THE CITY OF HUNTINGTON BEACH,
BASED UPON THE QUANTITY OF OIL PRODUCED AND SOLD."
The Clerk read notice of public hearing on Ordinance No. 1388, as pub-
lished in the Huntington Beach News on January 11, 1968, setting the hour
of 7..:30 P.M., or as soon thereafter as possible, on Monday, the 29th day
.of January, 1968, in the Council Chamber of the Civic Center, Huntington
.Beach, California, as the time and place for a public hearing for the
purpose of considering proposed.Ordinance No. 1388 of the City Council
of the City of Huntington Beach relating to the imposition of a License
Tax upon persons engaged in the business of producing oil in the City of
Huntington Beach.
The Clerk informed the Council that he had received no communications per-
taining to the public hearing.
Mayor Shipley declared the hearing open.
�?:9j_.
Page 2 - Council Minutes " January 29, 1968
Mr. Richard Hildebrand, 19071 17th Street, City, addressed the Ccuncil and
discussed the loss of revenue to the City in late 1967. He stated that
there was already a very heavy tax burden on the oil producers in the City
and that more would be unreasonable. He requested that Council withhold
passage of the tax ordinance.
Mr. R. E. Dingwall, 19791 Estuary Lane, City, addressed the Council and
stated that it was his opinion that all businesses in the City should
help raise the lost revenue; not gust imposing the burden on a certain
group. He informed the Council that the homeowners Council had met on
the subject and requested that time be given so that they could poll
citizens as to their reaction to the proposed taxation..
Mr. A. Co Marion from the Huntington Beach Oil Company, an independent
oil company, addressed -the Council and discussed the financial difficul-
ties this tax would put upon the small independent companies in the City.
fie stated that any tax imposed should relate to all types of business
Mr, Russ Watkins, of Pacific Drilling Company, addressed the Council and
stated that he felt the tax was discriminatory and that it would probably
put most of the independent oil producers out of business,
Mr. C.E. „Bill" Woods, representing Signal Oil and Gas Company, addressed
the Council and thanked them for the opportunity the Council has given
to the oil producers to'express their opinions on the tax. He felt that
the oil companies were paying a fair tax now but that further tax on
their productions would be excessive. He informed the Council that
Signal Company has tried to do what the City has asked in the way of
clean up and that they plan to contribute more in the way of beautifi-
cation to the City in the near future.
Councilman Kaufman inquired of the City Attorney about the legality of
the proposed tax. .The Attorney stated that, in his opinion, such tax
was legal, and that the decision concerning the fairness of the tax
rested with the Council.
Mr. Larry Wilson, representing Union Oil Company, expressed his thanks
for the opportunity to discuss the matter with the Council. 'He stated
that he felt that this extra tax would be a double tax burden on the
oil industry, and that it was the position of Union.Oil that it was
discriminatory.
Mr. Miller informed the Council that Union Oil had paid their taxes under
protest and that the situation was presently under litigation; and that
the City has received nothing from Union ail Company in the way of taxes.
Mr. Wilson stated that the only part of the tax withheld which is under
litigation is the portion that Union Oil felt belonged to the State of
California and -should not be taxed by the City.
Mr. Da A. Nielson, representing Standard Oil Company of California, ad-
dressed the Council and spoke on the investments his Company had made in
the City of Huntington Beach, stating that they felt that the tax was an
unfair burden.
Mr. Jack Froggatt, representing the Huntington Beach Company, addressed the
Council .and stated that his company had made great progress in the City
and this was a result of cooperation by Standard Oil Company of California,
their majority stockholder,
2:9
Page 3 --Council Minute s — January 29, 1968
Mr. Roger Slates, 1701 Main Street, City, addressed the Council and stated
that, although the Board of Directors of the Chamber of Commerce had not
had a meeting on this particular item, he felt they would be opposed to
the tax on the industrial firms. He stated it was this opinion that if
additional revenue is needed, it should be derived through the increased
sales tax that would be coming to the City during this year.
There being no one further to speak on the matter, and there being no
further protests filed, the hearing was closed by the Mayor.
RECESS
Mayor Shipley called a recess of the Council at 9:20 P.M. Council was
reconvened at 9:50 P.M. by the Mayor.
FURTHER DISCUSSION - OIL TAX —ORDINANCE TABLED
Discussion was held by the Councilmen on the proposed tax ordinance. Mr.
Miller suggested a postponement of all capital improvements and purchases
,of any equipment until the end of the fiscal year. Further discussion
was held concerning the financial position of the City.
On motion by Coen, Council tabled the first reading of Ordinance No. 1388
indefin,itely. Motion carried.
LOGO CONTEST
Mr. John Costello, Administrative Assistant, informed the Council that an
announcement of the winner of the Logo Contest,' sponsored by the City,
would be forthcoming within the next two weeks.
ADJOURNMENT
On motion by Bartlett, the regular adjourned meeting of the City Council
of the City of Huntington Beach was adjourned. Motion carried.
Pap&l C . Jones
City Clerk and ex-officio Clerk
of the City Council of the City
of Huntington Beach, California
!• _ • 1
Mayor
ATTEST:
°�. C-�-�
Paul C. Job City Clerk