Tax-rebate program
On the evening of Dec. 22, Signal Hill City Manager Charlie Honeycutt proposed a potential 55% tax-rebate program for Western Developers, LLC to bring in new sales clients to the city.
Western Developers, LLC acts as a “headhunter,” said Honeycutt, and will be contracted to find retail companies looking to base their retail-sales call centers within Signal Hill city limits.
If a retail-sales call center is brought into the city and can reach $300,000 of sales per year, the City will offer a 55% sales tax rebate as incentive for the center to keep its Signal Hill base.
Rebates will be offered throughout 2030, but only if the annual $300,000 quota is met. A full share of taxes will be paid for any given year in which the new center reaches less than $75,000 in sales income per quarter.
Honeycutt explained that the rebate program was born out of a desire to make Signal Hill’s financial future more secure in the face of growing online shopping purchases and the appeal of vendors outside city limits.
As of now, 10 out of 25 top Signal Hill retailers are responsible for bringing in taxes that comprise 72% of the City’s annual general fund, said Honeycutt. However, the security of that funding is faltering in light of alternative shopping methods that draw residents away from local vendors.
Incorporating a retail sales call center means that Signal Hill will become the technical point of sale for online and phone orders made through the vendor, allowing the City to collect sales taxes on such purchases.
“So, we are in fact netting an additional $300,000 for whatever they bring us!” said Signal Hill Mayor Larry Forester. “!Which, in my mind, is two new policemen, two new services for community services!this is money over and above what we’re seeing right now. It’s, in my opinion, a no-lose situation for us at this stage.”
Signal Hill resident Maria Hill approached Council with a series of questions focusing on the process by which Western Developers, LLC will find potential retailers and what protections will be in place to ensure retailers do not relocate after receiving rebates.
No public specification was made as to which companies are being considered to introduce the sales center, but Honeycutt noted that Western Developer representatives had made suggestions in confidential meetings that led him to have faith in their abilities.
In addition, Honeycutt explained provisions in the proposed agreement that will prohibit retailers from seeking out alternate contracts while located in Signal Hill.
Once all questions had been answered, members voted 4-0 to approve the rebate agreement.
Public-transportation funding
Councilmembers entertained a motion to pass two separate contracts to provide funding for the city’s public-transportation programs.
The first of the contracts outlines a $93,000 budget to be used over the course of three years to bolster Dial-A-Lift services provided by Long Beach Public Transportation Company.
Dial-A-Lift provides personal transportation for “mobility-impaired adults on an at-need basis” who would otherwise be unable to utilize public transit, said Honeycutt. The proposed $93,000 agreement will allow Long Beach Public Transportation Company to continue servicing these adults.
Services offered under Dial-A-Lift are not completely free of charge, but Mayor Forester did mention that transit coupons are available through the city by request to help reduce costs for residents.
A secondary contract, also between Signal Hill and Long Beach Public Transportation Company, will provide $130,320 to finance Fixed Route Public Transit over the same three-year period as the first.
Fixed-route transit consists of regularly-scheduled group pickups at set locations throughout the city, usually by bus.
Councilmember Edward Wilson raised a question of whether introducing service along Spring Street has been considered, as the area lacks stops for fixed-route transit to pass through.
Karissa Selvester, external affairs manager for Long Beach Public Transportation Company, said that a series of evaluations are scheduled to accurately gauge the transportation needs of the city as a whole and that Spring Street will be given special attention in the process.
With no following questions being levied, the council unanimously approved the contracts.
Rotary Club volunteer agreement
Signal Hill Rotary Club proposed an agreement in which it offered three volunteers to attend the City’s Brown Bag food-distribution program every month.
Gina Allen, Signal Hill community service manager, told Council that the program is currently oversubscribed and lacking a delivery service that could provide food to participants who cannot regularly pick up the donated meals.
Incorporating Rotary Club members will not only expand the reach of the Brown Bag program by bringing more hands to the table and implementing a delivery service for up to 10 of the 42 participants, but also allow the City to cut back on the amount of staff needed to run the program, saving costs in labor fees.
Rotary Club President and City resident Bob Mendoza was present to elaborate upon the Club’s desire to help and commit to providing a reliable amount of volunteers on a regular basis.
All members voted to approve the volunteer agreement.
Street-sweeping contract
Signal Hill Public Works Department presented a contract-services agreement to extend the street-sweeping services of CleanStreet, the company currently contracted with the City.
The contract aims to keep CleanStreet, the service provider, for an additional year while Public Works opens bidding to other companies for future contracts.
There is no cost adjustment associated with the extension, so the final amount to be paid to CleanStreet will not exceed the $150,400 standard set over the course of CleanStreet’s relationship with the City.
After the potential contract was presented, all present councilmembers voted to authorize the extension.
Seasonal announcements
After the four items to be voted on passed, individual members of the Council made announcements they felt pertinent to the time of year.
As rain has begun to fall across the city, Mayor Forester reminded residents that up to 10 free sandbags are available for pickup through Public Works.
Sandbags can be picked up between the hours of 7am to 3pm Monday through Friday at the City Yard, 2175 E. 28th St.
If weather conditions deteriorate and rains intensify, more sandbag locations will open throughout the city to provide an adequate amount of sandbags to residents.
Also, the city will be hosting free Christmas tree recycling on Dec. 28 and Jan. 4. Trees need to be left in the same location as residential trash bins and must be free of ornaments, garlands and flocking to be eligible.
