City Council - Special Meeting

The communications portion of the agenda is limited to a duration of one hour unless otherwise approved by the City Council. Comment time is normally three minutes depending on the number of speakers. Public viewing available by live stream on the city's website. The meeting will be streamed live over the internet via www.carsonca.gov. YouTube, www.youtube.com slash at City of Carson, California. Cable TV, Spectrum Channel 35 and AT&T Channel 99. Carson TV app. You may also download the Carson TV app to stream the meeting. App availability. The Carson TV app is available in the Apple App Store, Google Play Store, Roku, and Amazon platforms. If you're not able to attend the meeting in person, public comment can be submitted before the meeting via email to cityclerk at carsonca.gov. The cutoff time to submit any email communication is 3 p.m. on the day of the meeting. Written comments can be dropped off at the City Clerk's Office at City Hall. The cutoff time to submit any written communication is 3 p.m. on the day of the meeting. Written comments dropped off at the City Clerk's Office or any email received will not be read aloud at the City Council meeting but will be circulated to the City Council and incorporated into the record. Public comments can be made live during all communications portion of the agenda. Pursuant to Senate Bill 707 and our commitment to public accessibility, we offer three ways for you to participate. In person. If you're with us, please submit a public comment card to the city clerk. Virtual two-way audiovisual platform Zoom. You may access the Zoom meeting information at carsonca.gov slash government slash live broadcast. To join us via phone, you may call 1-669-900-6833 and enter the meeting ID 846-366-3031-3POUND.

calling the special meeting for a continuation meeting from our Friday meeting from August 7th to now to August the 10th, 2026 to order our Carson, City of Carson Housing Authority, Successor Agency, Public Finance Authority, City Council special agenda. Madam Clerk, roll call.

Thank you, Mr. Mayor Pro Tem. Council Member Rojas. Present. Council Member Deer.

Here.

Council Member Hilton. Present. Mayor Pro Tem Hicks.

Present.

Mayor Davis Holmes.

She's on her way.

Thank you.

Flexible by Councilman Deer.

Everyone please stand if you're able to and face the American flag. Put your right hand over your heart.

Ready, begin.

I pledge allegiance to the flag of the United States of America and to the republic for which it stands, one nation,

Thank you. You may be seated. Invocation by Councilman Hilton.

Thank you, Mayor Pro Tem. Let's bow our heads. Father, thank you for an incredible opportunity to serve your people. We pray that you would bless us as we conduct the city's business. In Jesus' name, I pray. Amen.

Amen. Closed session. Any public comments from any items on the closed session, Madam Clerk?

I have two public comment items. They're for I don't know if it's for closed session or not, but it is in regards to the opposition of the ballot measure.

Is it for the, who was the actual people want to speak?

It says item 23, but there's not an item 23 in this. Okay.

It's for the item. So nothing for the closed session item at this point in time. So when we come back, it'd be for the item. Okay.

Thank you for that.

No, it's not. City Attorney, please report out.

Thank you, Mr. Mayor Pro Tem, and members of the Council, ladies and gentlemen. First of all, I gotta tell you, having come back to City Hall after a long absence, this place is spectacular. So congratulations on what you've done to make the Council Chamber, the City Hall, the grounds beautiful. Beautiful. Anyway.

Thank you.

Council has two items on its closed session agenda tonight. The first is one matter of pending litigation to which the city is a party. The authority to meet in closed session is Government Code Section 54956.9A. The title of the litigation is Tesoro Refinery and Marketing versus the City of Carson. Case number B, 335686. And the second closed session is uh... will consider facts and circumstances which could give rise to an exposure litigation in one case where in the judgment of the city attorney, the facts and circumstances giving rise to such a closure is not known to the punitive plaintiff. The authority to hold this closed session is government code section 54956.9 D2 or D3 and E1. Thank you, Mr. Mayor Pro Tem.

Thank you for that. Madam Clerk, just for clarification, I think for the resident that wanted to speak, is that for item number three, not 23?

For clarification, Mr. Mayor Pro Tem, I believe the item number is in reference to last Tuesday's council agenda, not the special agenda that was published for Friday's special meeting.

I just want to make it clear for the record that he's, sir, for item number three that deals with the actual tax that's actually being put on the ballot. So for today's meeting, it's item number three. Okay. Okay. Okay, for both people that want to speak. Okay, I'll make the correction. Thank you. About how long for closed session hour? 45 minutes, 10 minutes, 25?

That is entirely in the control of the city council. I would guess 30 to 45 minutes.

I'll give you an hour. We'll close session until about 10 minutes after three.

And if not, we will come back and let people know that it's a little bit longer.

We are now in recess.

Thank you.

We're reconvening to open session.

Oh. Oh. Rules of the quorum. No person attending a public meeting shall engage in disorderly or boisterous conduct, including .

So I could be late. Thank you, we're reconvening to open session. Mr. City Attorney, please report out.

Thank you, Madam Mayor, members of the City Council, those who are watching electronically and who are participating in person in this beautiful council chamber. The City Council met in closed session and discussed one matter of pending litigation and one matter of exposure to litigation. The city attorney presented a privileged and confidential settlement terms and conditions that have been proposed by the Tesoro Marketing and Refining. The city council reviewed each of the terms and conditions of the proposed settlement. The City Council has approved the same in concept, subject to bringing back a fully executed signed settlement and annual payment agreement, the total sum of which will involve some $370 million to the City of Carson. As a consequence of that, there will need to be a public action taken, which will be on your next agenda item. That concludes my closed session report.

Madam City Clerk, were there any oral communication on any matters?

Thank you, Madam Mayor. There's two public comments for item number three.

Yes. Call them up, Madam City Clerk.

Thank you. James Holland.

Hi, James. You have two minutes.

Good afternoon, Mayor Holmes, members of the City Council. My name is Jimmy Holland. I represent 2,000 members of the Boilermakers Local 92. I submitted my written comments last week, and I'm here today to respectfully ask you to reconsider the proposed oil refinery tax ballot measure. I believe that any tax imposed on local refineries will ultimately be passed on to consumers. Increased operating costs do not simply disappear. They are often reflected in higher prices for the people who live and work in our community. Furthermore, I believe that a dollar per barrel tax is excessive and could have unintended economic consequences for local businesses, workers, and residents. It is also important to recognize a long history of refining operations in Carson, California. In 1938, Richfield Oil Corporation established refinery operations here. 1966 to 2000, it was operated by ARCO. 2000 to 2013, it was operated by BP. 13 to 18, it was to Sorrow and Endeavor. 2018 to present is now Marathon. I know that's where the issues are right now. These refineries were part of this community long before Carson was incorporated on February 6, 1968. They have provided jobs, family, they have provided jobs, supported families, and contributed to the local economy for decades. Because of this history, I do not believe it's appropriate to characterize their continued operation as a privilege. That was spoken last week. Rather, they are long-standing businesses that have helped build and sustain this community. For these reasons, I respectfully urge the council to reconsider placing this measure before the voters. Thank you.

Thank you. Thank you, sir. Our final speaker is Stephen Klinnerd. Good afternoon, sir. You have two minutes.

Thank you. Madam Mayor, council members, thank you for this time. I was here last week. And I asked you a couple questions. I have more questions for you. If this proposal goes through and is voted on and it passes, are you really willing to go into litigation again? How much more litigation money are you willing to spend of your taxpayers' money on litigation? It's not cheap. You guys are in the Supreme Court waiting on a decision, but yet you're already making a decision to put another dollar tax in the kiddie pot. And it's not a tax that, yeah, you gain all the money, but Californians are going to be the ones that are forking out the bill. I don't even live in Carson. I work in Carson. I don't even live in Carson, but yet I'm going to be paying you three cents a gallon for this tax? How fair is that? I don't get to vote in your stuff, but yet you're telling me that, oh, the people here in Carson voted that you owe them three cents a gallon. How fair is that? Explain to me, why is it fair for Californians to fork out this? Another question I have, if Marathon shuts down, you're losing not only the Marathon refinery, You're losing all the businesses that are around here that are supported by that refinery. The reason why is because you have 1,500 employees working at the refinery. You have another 2,000 that are working from turnarounds and all that. Hotels, mechanics, schools, all help build this city. We, the workers, help build this city. You shut down that plant and it's going to happen. The cities keep on saying more, more, more. That doesn't sound like anything. That sounds like a kingship to me. You guys keep on saying, oh, it's only a dollar. It's only a penny. It's only a dollar. No. Sooner or later, it sounds like a kingship.

Thank you.

And you guys are just raping us.

Thank you.

Madam Mayor, could I correct him on something? Stephen, the Supreme Court made a ruling at 10 o'clock this morning on the issue. Yeah.

Thank you.

Thank you.

Okay, anyone? There are no minutes. Any items may be removed from the consent calendar, special orders of the day. None. Discussion item number three.

Thank you, Madam Mayor.

I'm used to talking to Mr. Mayor, I apologize. Madam Mayor, I don't know how I'm gonna make that mistake. I look better than any Mr. But that'll get me in all kinds of hot water.

Yes.

For which I am profusely sorry. Okay, in light of the settlement agreement that has been reached in principle between Tesoro, a Marathon subsidiary, and the city council, which is subject to documentation, we are now recommending that the council rescind and withdraw the proposed per barrel tax measure that you have provisionally placed on the November 3rd ballot. And we have given to you at the dais tonight a resolution to accomplish that. Before I walk you through that resolution in response to one of the speakers tonight, I want to make clear that the settlement agreement that has been agreed to between the parties and principals reimburses the city in full not only for the tax that has been impounded, but for the cost of the litigation, the city attorney's fees, the city's consultant fees, penalties and interest on the impounded fund, so that once the agreement is executed, the city will be made entirely whole, entirely whole from this litigation. you will be reimbursed down to the last penny. Having said that, before you on the DAOS is a draft resolution, and the first thing we'd like you to do is insert a resolution number 26-097. I want to take you to the second whereas clause, and there's a blank there. The first blank, we want to insert the words $120 million. in settlement of certain litigation by and between the parties. And in the second blank, we want to insert the number $250 million, the same to be paid over 15 years. The last whereas clause, the second to the last whereas clause, you want to insert the date August 10, 2026. Now, the remainder of the resolution rescinds and asks for the withdrawal of all resolutions relating to the per barrel tax measure. That's sections two, three, four, and five. The last section, which is very important because until, while we have agreement of principle, you know, the devil's in the details, until we have a signed agreement, signed by Tesoro, then this resolution in section eight is made conditional. And it is conditional upon the execution of a final and complete settlement agreement to the satisfaction of all parties. We wanna get this done by tomorrow. we have a draft of the agreement that uh... right after this meeting i'm gonna fill in the last blanks and send it to soros council we want it signed tonight we want you to approve that agreement tomorrow and we will call and walk over to the registrar recorder's office this resolution zero dash nine seven as we have provided it to you tonight so our recommendation madam mayor members the council is that you adopt resolution number twenty six dash zero nine seven as completed by filling in the blanks as I noted to you in my staff report.

So, City Attorney, Madam Mayor, I'd like to make a motion that we adopt resolution number 26-097, a resolution of the City Council of the City of Carson, California, rescinding and withdrawing resolution number 26-086 for the purpose of withdrawing the order of election on a proposed oil refinery tax to have been considered At the November 3rd, 2026 election and rescinding and withdrawing related resolutions. Second, the motion.

And a friendly amendment. So the motion should be stated as the attorney explained. It's conditional. And the motion incorporates the resolution that we just went over publicly.

Thank you.

Yes.

That's agreed. Agreed. Thank you. Only happens with a fully executed document.

Only happens with a fully executed by tomorrow. Like now.

In the next five minutes. It has to be done.

Okay. Any more further questions on the motion?

Roll call or do we vote?

Can we vote electronically? Okay.

It's not working. Okay. Roll call.

Roll call. Council Member Rojas? Yes. Council Member Deer?

Yes.

Council Member Hilton? Yes. Mayor Pro Tem Hicks?

Yes.

Mayor Davis Holmes?

Hallelujah.

Yes. Unanimous. Motion carries. Congratulations.

Thank you. My colleagues, so do we have to have a special meeting or anything?

Do we continue this one?

Yes.

We actually have to notice a special hearing because approval of the agreement was not on the agenda tonight and you can't continue it until tomorrow. We've already noticed that meeting for tomorrow at 3 p.m. 3 p.m.?

Okay, we don't have to be in court.

No, no, no, we don't have to be in court. Well, but we have to give you 24 hours advance notice.

3 p.m. is fine.

So, I know I've wrecked your afternoon, but since I did it once today, what's one more day?

As a courtesy to the public, I am calling a special meeting for tomorrow afternoon at 3 p.m. The special meeting for tomorrow will be posted in compliance and accordance of the usual Brown Act procedures. That'll be tomorrow at 3 p.m. Yes? You can do four o'clock, three o'clock, because you have to get to the.

We have to post it. We have to create the agenda, post it.

We will either have a sign. Is it ready? Agreement tomorrow or we won't, so 3.30 is not a problem. As long as you all can do it.

We can make it, but you still.

Four o'clock is better.

Does that give you enough time? 4 o'clock is better. Will that give us time to walk this down to the registrar's office and say, stop the presses?

Oh, no. I'm talking about posting the special meeting agenda for tomorrow.

But does it give you time to get it to the registrar's recorder's office tomorrow if we have a meeting at 4? It has to be there tomorrow.

I suggest we have the meeting at three in order to give the city clerk ample time and not under pressure.

So excuse me, if I can.

Point of clarification, Mr. City Manager. Go ahead. Okay.

If I may, Madam Mayor. Yes. So staff needs enough time. We need 24 hours by proper rule of order to make sure that we are posted in plenty enough time. So 24 hours is a requirement. That's a state requirement. If we do it at three o'clock, they're not gonna be able to post by three, which means three right now, it's 2.45. That means they have 15 minutes and they can't post in 15 minutes. So we're asking can we maybe just do 3.30 or four o'clock. Four o'clock is why we're asking just to ensure we have enough time, but the secondary question to that is even if we have enough time to post, the council's question is will you have enough time to get it down to the registrar's office It's stating that this resolution is being removed. I'm sorry?

It has to get there tomorrow.

Well, maybe we can do it electronically. We could possibly call the clerk, the registrar recorder's office tomorrow and say we anticipate bringing a rescission resolution to you. How can we send it to you best?

Madam City Clerk, you say you can't. Oh, scan.

I'm assuming you're talking about the election deadline for the, yes. That's scanned. I'm not driving that anywhere. I'm sorry for the confusion. That's why I was like, I've never, I'm not driving a normal. Yes.

They just want to ensure that the recension resolution

Deadline, absolutely.

Deadline is met, whether it's email, you have to drive there physically, whatever that case is.

It's scanning it to Dean Logan's office, and I can do that before 5 p.m.

So if we can just have 4 o'clock then, Madam Mayor, to ensure we can post enough that gives our staff an hour and 15 minutes to get everything posted in time.

Okay, 4 p.m. tomorrow. What time does Dean Logan close tomorrow?

5 o'clock.

Ooh, weak.

I have staff. I can run down, scan it. Somebody else can come sit up here. It'll get done.

I'm worried about getting it to Dean Logan's office. You couldn't do it by 3.30?

We can make it. 3.30 is fine. Yeah.

Tomorrow's the 12th.

No, tomorrow's the 11th.

Oh. Okay. 4 p.m. That's what I thought we were talking about. Okay, 4 p.m., we'll have a special meeting at 4 p.m. tomorrow. I thought it was tomorrow. 4 o'clock, we will have a special meeting tomorrow. So, is this going to be a recess meeting or we have to, it needs to be an, With its own standalone, okay.

So you can adjourn this meeting.

Okay, so I'm having no further comments. Anyone else want to say anything? If not, the meeting is adjourned. We'll see you tomorrow at 4. We are celebrating.