Redondo Beach Chamber funds cut in $87.8 million city budget

Redondo Beach Councilman John Gran, left, looks on as Mayor Bill Brand reads a letter submitted to the City Council. Photo

The Redondo Beach City Council passed its Fiscal Year 2017-18 budget late Tuesday night, balancing an $87.8 million budget alongside their own desires for their districts with a bit of political “horse trading,” as Mayor Bill Brand called it. Head-butting among the five council members is common during the budgeting process, but it became particularly heated as recently-sworn Councilman Nils Nehrenheim learned where his cohorts would stop tolerating his sarcastic interjections.

Two matters stood out: Hiring of additional Fire Department inspection personnel, and the next step to sever the financial ties between Redondo Beach and its Chamber of Commerce.

A plan by Redondo Beach Fire Chief Robert Metzger to hire two additional Fire Prevention Officers was discussed repeatedly, in part during a proposed increase to building inspection fees, which were approved by the Council. That plan would have restored two positions which were eliminated during the national economic downturn.

However, both Brand and Nehrenheim took issue with the idea of adding the two additional positions.

“We’re not building a city working toward getting more business here,” Nehrenheim argued, believing that the additional fire inspections and fees would burden small businesses. He repeatedly cited news coverage of a well-publicized hearing in which Hermosa Beach residents raised concerns about their city’s code enforcement policies.

However, those complaints were largely founded on perceptions that Hermosa emphasized bar and restaurant issues, not about overbearing fire prevention enforcement.

Brand took issue with the idea that the staff increase was strictly to fill gaps in current services provided, rather than fill needs.

“I don’t think it’s necessary to add personnel; I think people are not going to like a fireman coming ins saying ‘give me $120, now replace the smoke alarm,’ “ Brand said.

“I’m not in the business of trying to advocate for a watered-down version of public safety,” Metzger replied.

Ultimately, Councilman Christian Horvath negotiated the hiring of one Fire Prevention Officer.

The crux of that negotiation was Horvath’s proposed $300,000 funding for a hotelier-created Tourism Improvement District to help market the city in lieu of the city’s continued financial contributions to the Redondo Beach Chamber of Commerce and Visitor Bureau.

The Chamber of Commerce has become an increasingly political issue, as the Chamber has stepped up activity through its associated Political Action Committees.

Brand has also grown uncomfortable with the funding the Chamber-run Visitors Bureau receives in Transit Occupancy Tax, commonly called a hotel bed tax. The Visitors Bureau is estimated to collect $731,542 in FY 2016-17, just under 10 percent of the city’s projected $7.7 million TOT income.

That agreement, formed in the early 1990s thanks in part to lobbying by hoteliers for increased tourism marketing, is in addition to the $85,263 the Chamber is paid by the city for contracted services.

However, two weeks ago, the Council largely agreed to discontinue the city’s existing relationship with the Chamber. The only issue was to what extent the Council would facilitate marketing during the Chamber and Visitors Bureau’s likely split.

Brand, Nehrenheim and Councilman Todd Loewenstein wanted to halt funding entirely. Council members Horvath and John Gran were in favor of $300,000 in funding, in lieu of $350,000 proposed by City Manager Joe Hoefgen.

Despite lobbying from Chamber supporters and CEO Marna Smeltzer, Horvath and Brand (who threatened to exercise his veto power) reached compromise, approving $150,000 in funding, allowing a sub-committee of Gran and Loewenstein to work with hoteliers and the Chamber to determine next steps.

Council members repeatedly challenged each other and their priorities throughout the night. But Nehrenheim’s habit of scoffing and interjecting during other Council members’ time, shaped during his activist career, pushed Horvath to the brink with one final interruption.

“Your rudeness was OK when you were with the audience, it’s not OK up here,” Horvath said, his frustration bubbling near the meeting’s end. “I want you to try to adhere to decorum; flick your switch and say what you have to say.”

Nehrenheim remained silent.

Horvath’s budget resolution, which includes $200,000 for planning and rehabilitating Artesia Boulevard storefronts, passed 3-2, with Loewenstein and Nehrenheim against. Brand has five days to decide to use his mayoral veto.

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