By Lizzy Tsuang
Staff Writer
The city council of Hermosa Beach finalized the official results of the March 3 vote against oil drilling and took the initial steps towards repaying the $17.5 million debt.
The official results stand with 20.5 percent of votes in favor and 79.5 percent opposed, counting all provisional and mail-in votes.
“We are very happy with the number opposing oil drilling,” Stop Hermosa Beach Oil chairperson Stacey Armato said. “It sends a strong statement that oil drilling and Hermosa are incompatible.”
Doerfling added 2,619 votes to the unofficial count, resulting in a total of 7,515 votes. The amount of votes placed translates to a 54 percent voter turnout out of 13,989 registered voters in Hermosa Beach.
“I am really pleased that everyone got out and voted and I hope they do the same in future elections,” Doerfling said at the meeting.
Measure O was placed on the ballot by a 2012 agreement between Hermosa Beach City Council and E&B Natural Resources following E&B’s $17.5 million loan to the city which settled a previous lawsuit. According to this agreement, Hermosa Beach now must pay back the $17.5 million. To determine how to pay the debt, the council opened discussion of possible financial solutions at the March 24 meeting.
“We are anticipating Hermosa Beach to move down the path of a paying the debt from the general fund which is the city’s savings,” Armato said. “We will be participating in ways for the city to increase revenue to cover the cost.”
Financial firm Kosmont Companies also presented plans including different payment options and time frames for the City at the March 24 meeting. The council members concluded their preference to use the city’s savings of six million as a down payment and proceed on a 15 to 20 year payment plan with annual installments to pay the remaining $11.5 million.
“I want to pay it as quick as possible and as low as possible,” Mayor Pro Tem Nanette Barragan said at the meeting. “The city has been budgeting the money so we know we can afford a 15 year plan. I think we need to go into this as effectively and cheaply as possible.”
City Manager Tom Bakaly then announced that the next steps for the city are to correspond with E&B and explore additional options in obtaining a loan. The council will discuss this topic at the Apr 28 meeting.
“We are talking with the state and looking further into how we can get a loan,” Bakaly said at the meeting. “However, we are also exploring other options and are hopeful for action at the next meeting.”
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