Benicia City Council Meeting - May 19, 2026

The Benicia City Council met on May 19, 2026, beginning at 6:00 PM at City Hall. Council Members Birdseye, Largaespada, and Scott were present with Mayor Steve Young. Vice Mayor Macenski was absent. The meeting covered a solid waste franchise update, Bay Area Air District REPAIR grant applications, the first public hearing on a proposed limited city charter and Real Property Transfer Tax (RPTT), a Q3 budget report, and a discussion on alcohol and tobacco retail regulations.

Presentations

• Solid Waste Franchise Agreement Update: Rob Hilton (HF&H Consultants) presented a plan to replace the existing agreement with Republic Services. The proposed new term is seven years (July 2027 – June 2034) with a three-year extension option. Key elements include a Prop 218 compliant rate structure with annual adjustments capped at 6%, expansion of bulky item and household hazardous waste programs to multifamily residents, and incorporating street sweeping. Councilmembers Largaespada (service level agreements, transition timelines), Birdseye (current provider history, electric truck phase-in, street sweeping effectiveness), and Scott (contract term, administrative vs. council rate approvals) asked clarifying questions. Public commenters Kathy Carridge raised concerns about combining paper and cans in recycling, and Ms. Bardet expressed support for continuing the kitchen waste pail program.

Consent Calendar

• The following items were approved 4-0 with no items pulled for discussion:
  • Minutes from the April 21 and April 28, 2026 meetings.
  • Request to fly the Rainbow Pride Flag for June 2026.
  • Request to fly the Juneteenth Liberation Flag.
  • Budget amendment for the FY 24/25 CalRecycle Payment Program ($6,352.70).
  • Stantec Consulting Services Master Agreement Amendment (increased to $633,000).
  • Reimbursement Agreement with the City of Fairfield for OBAG Cycle 2 ($334,710).
  • Waiving the reading of all ordinances.

Discussion Items

1. Bay Area Air District REPAIR Opportunity Grant Applications (15.A)

• City Application: The council adopted a resolution (4-0) authorizing submission of the city's "Benicia Energy and Air Quality Rebate Program" application for up to $5 million. The proposed program would offer rebates for home electrification, solar, HVAC, and other improvements. A key debate occurred over prioritization: Mayor Young advocated for dedicating the first year of funding exclusively to fence-line neighborhoods (e.g., the Robert Semple attendance area) to ensure equity and align with Air District priorities. Councilmember Birdseye expressed full support for the program but concern about limiting it geographically, preferring a citywide rollout with strong targeted outreach. Staff proposed flexible prioritization using outreach, spending caps, and a final-year focus. Public commenter Kathy Carriage praised the comprehensive scope, while Ms. Bardet cautioned against formally using the term "EJ community" based on state designations.
• Co-Applicant Resolutions: The council unanimously authorized the city to serve as a co-applicant for three community partner grants: BCAMP (expanded air monitoring network), Benicia Unified School District (Middle School field renovation), and Sustainable Solano (green infrastructure, youth corps, eco-arts). Councilmember Birdseye questioned the city's obligation; staff clarified it primarily involves grant administration, reporting, and oversight of city property.

2. Public Hearing: Limited Charter & Real Property Transfer Tax (15.B)

• This was the first of two required public hearings for placing a limited city charter on the November 2026 ballot. The sole purpose of the proposed charter is to allow the city to enact a Real Property Transfer Tax (RPTT). City Manager Giuliani contextualized the need, citing $10.5 million in projected annual revenue loss from Valero's closure and $215 million in city infrastructure needs.
• The proposed RPTT is a three-tiered structure ($4/$6/$8 per $1,000 of sale value). It includes a key exemption for existing residential properties (built before Jan 1, 2027) sold for under $1.5 million, which would exempt ~98.5% of current annual residential sales. Initial revenue is estimated at roughly $400,000 per year, growing to an estimated $4.3 million by 2050.
• Councilmembers debated the exemption threshold. Councilmember Birdseye recommended raising the exemption to $2 million to ensure political viability and assure voters. Councilmember Scott and Mayor Young discussed market impacts and the complexity of an escalator clause. Staff noted raising the threshold would lower the 2050 projection to roughly $3.7 million but supported council direction.
• The public hearing was closed. No formal action was taken on the tax itself tonight.

3. FY 2025/26 Third Quarter Budget Report (15.C)

• Budget Manager Roxana Marati presented the Q3 report, which was accepted by the council (4-0). Staff projected no use of the reserve for fiscal uncertainty this year. The year-end revenue forecast improved by $0.6 million from the mid-year report, though sales tax remains underperforming. Measure F is projected at $3.5 million compared to its ballot estimate of $4 million.
• Councilmember Largaespada asked about the sustainability of relying on vacancy savings. City Manager Giuliani stated it is not a long-term solution but is a necessary bridge strategy while the city pursues Air District grants, priority-based budgeting, and economic transition post-Valero.

4. Alcohol and Tobacco Retail Regulations (15.D)

• This discussion item sought council direction for code amendments. Staff flagged the current 2019 tobacco retail ordinance as highly restrictive, difficult to enforce, and impactful on proposed alcohol retail regulations due to broad definitions (e.g., including daycares in proximity rules) and a 1,000-foot buffer.
• Public commenters from SIPS (KB, Mr. Hare) urged a distinction between mass-market retailers and premium cigar lounges, an interim moratorium on new licenses, and a 1,000-foot spacing buffer between primary retailers.
• Councilmembers provided the following direction to staff:
  • Remove daycares, kindergartens, and commercial recreation uses from the proximity definition of "youth-oriented facility."
  • Reduce the proximity buffer for tobacco retail from 1,000 feet to 500 feet.
  • Explore definitions for primary vs. incidental alcohol/tobacco retailers to allow specialty venues.
  • Explore zoning amendments to allow premium cigar lounges with age verification and ventilation standards.
  • Return with draft ordinance amendments.

5. Consor Task Order for Pavement Rehab (15.E)

• The council approved a task order with Consor North America for construction management services on the 2026 Citywide Pavement Rehabilitation Project (Zones 6 and 17) in the amount of $325,656.72. The vote was 4-0.

Key Outcomes & Votes

• Consent Calendar: Approved 4-0.
• REPAIR Grant (City Application): Resolution adopted 4-0.
• REPAIR Grant (Co-Applicants): Resolution adopted 4-0.
• Q3 Budget Report: Accepted 4-0.
• Consor Task Order: Approved 4-0.
• RPTT Hearing Direction: Staff to prepare final language reflecting a potential $2M residential exemption threshold for the second public hearing.
• Alcohol/Tobacco Direction: Staff to draft amendments reducing the buffer to 500 ft, removing specific youth facility definitions, and creating a pathway for premium cigar lounges.