Benicia City Council Meeting – June 2, 2026

The Benicia City Council met at 6:00 p.m. on Tuesday, June 2, 2026, in City Council Chambers at Benicia City Hall, with Zoom participation available. Four councilmembers participated in the recorded votes; Vice Mayor Macenski was absent. The Council adopted the agenda, received public comment, heard a Pride Month proclamation and the V.I.B.E. presentation, took up business license tax modernization, released pension reserve funds, adopted the 2025 Urban Water Management Plan and Water Shortage Contingency Plan, and approved a solar operations and maintenance agreement.

Call to Order, Agenda, and Public Comment

• The meeting was called to order at 6:00 p.m.; roll call was taken and the Pledge of Allegiance was recited. The Mayor noted his office hours are held the first and third Mondays of each month from 4:30 to 6:00 p.m.
• The Council adopted the agenda by a 4-0 roll call vote.
• Public comment on non-agenda items included:
  • A speaker expressed support for Benicia's transition to a charter city, arguing a local constitution would allow Benicia to challenge state mandates, increase local control over revenues and taxes, and prioritize local community positions over state measures such as the builder's remedy and SB 9. The same speaker also expressed frustration with the city's budget and tax measures, saying the city should 'stick to a budget.'
  • A second speaker gave an update on community fundraising for the Fourth of July fireworks show: about $14,949 had been raised from 69 donations, six teams were competing, and the 'Team Light Up Benicia' team had raised $1,625. The speaker also reported that the farmers market now attracts about 4,500 people per week, up from 3,000, and previewed a wine walk and waterfront weekend.

Proclamation and Presentations

• Mayor Steve Young read a proclamation designating June 2026 as LGBTQIA+ Pride Month in Benicia. Representatives of Solano Pride and the Benicia LGBTQ Network accepted the proclamation and noted historic milestones including the Stonewall uprising and the 60th anniversary of the Compton Cafeteria riot. A speaker urged continued support for the trans community, citing federal targeting and the migration of an estimated 435,000 people, mostly trans individuals, from red states to blue states. A flag-raising event was announced for Thursday at 9:00 a.m.
• The Mayor reviewed subcommittee recommendations for boards, commissions, and committees, thanked the applicants, and said formal appointments would be made at the next meeting on June 16.
• Lauren Steele, chair of the V.I.B.E. (Values Inclusion Belonging Equity) committee, presented the group's work: monthly cross-departmental meetings, proclamations, events such as the Ruby Bridges Walk to School and Fiestas Primavera, a citywide staff training in January, and an annual operating budget of $32,900. V.I.B.E. will host a community resource fair on June 24 from 4:00 to 7:00 p.m. in the donor room and senior center.

Consent Calendar

• The consent calendar contained five routine items:
  • Approval of minutes from the May 19, 2026 special and regular City Council meetings.
  • Third Amendment with Anvil Security Services, Inc. for Lopes Road bypass water pipeline security: a limited extension of up to 12 additional weeks (June 16 through September 8, 2026) at $29 per hour or $4,872 per week, not to exceed $58,464, plus budget amendments.
  • First Amendment with HF&H Consultants for solid waste and recycling franchise services in the amount of $93,070, increasing the not-to-exceed total to $293,070, plus a budget amendment.
  • Establishment of the FY 2026-27 annual appropriations limit under Article XIIIB of the California Constitution at $143,160,344.
  • Waiver of reading of all ordinances introduced or adopted pursuant to the agenda.
• The transcribed record moves from the consent calendar to the next business item without capturing an explicit vote on the consent calendar; the minutes were not available for confirmation.

Business License Tax Modernization

• The Council reviewed an updated Business License Tax Study from HDL consultant Eric. City Manager Mario Giuliani asked the Council to narrow its choices rather than create new models.
• Models and estimates presented included:
  • Model One, Option One: variable gross receipts tax with business categories and a $10,000 small-business exemption; estimated revenue of roughly $2.8 million, about a $2.2 million increase.
  • Model One, Option Two: revised gross receipts model with lower rates, a $100,000 exemption, and a $100,000 cap; estimated total revenue of about $1.9 million, about a $1.3 million increase. A separate marine terminal rate of $3 per $100 of gross receipts was estimated to generate about $1 million by itself, but the $100,000 cap would reduce marine terminal revenue to about $100,000.
  • Model Two: tiered gross receipts model, unchanged from the prior study.
  • Model Three: progressive gross receipts model with fewer business classifications.
  • Model Four: a new per-employee model with four broad business categories and a $75 micro-business tier, proposed by Councilmember Largaespada to simplify compliance and avoid gross receipts reporting. Staff estimated it could generate roughly $1.5 million in total revenue, an increase of about $900,000.
• Councilmember Birdseye supported Model One, Option One with the $100,000 exemption, calling it the most equitable and best understood by businesses; she asked staff to identify outlier businesses that would face unusually large increases. Councilmember Scott also supported Model One, Option One with the $100,000 exemption, citing protection for small and new businesses and fairness, and requested percent-change comparisons for existing businesses. Councilmember Largaespada supported Model Four, saying it was the simplest option for businesses and still produced reasonable revenue; he opposed a blanket $100,000 exemption because it would still require gross receipts reporting.
• The Council did not reach consensus on a preferred model. It directed staff to return with more detailed per-business and per-category impact comparisons, including outlier analysis and percentage increases, focused on Model One, Option One and Model Four. Staff was also directed to explore treating the marine terminal separately; Councilmembers expressed openness to marine terminal rates around $1 to $3 per $100 of gross receipts. The Council also indicated that a business owning multiple rental properties should be treated as one business with one business license rather than requiring a license for each property.
• No public comments were made on this item.

Pension Designation Release

• The Council considered a resolution authorizing release of $1,547,858 from the Pension Designation reserve commitment and transferring it to the Section 115 Trust, with budget amendments in the same amount. Because not all five Councilmembers were present, a majority vote was sufficient.
• Finance staff explained that the Section 115 Trust mitigates future CalPERS investment-risk volatility and can be used in a fiscal emergency to pay normal pension contributions. Mayor Young and Councilmember Largaespada expressed support, framing the transfer as prudent preparation for an unavoidable future liability. City Manager Giuliani said the action avoided repeating past underfunding mistakes.
• The Council adopted the resolution 4-0.

2025 Urban Water Management Plan and Water Shortage Contingency Plan

• Galen Davis of Zanhero presented the 120-page 2025 Urban Water Management Plan (UWMP) and Water Shortage Contingency Plan (WSCP). Benicia is an urban water supplier because it serves more than 3,000 connections; in 2025 it had about 9,700 connections and served just under 10,000 acre-feet of water. The plan projects demand to 2050 and covers supplies from the Sacramento River via the North Bay Aqueduct and State Water Project, the Solano Project, Lake Herman, and the Sulphur Springs watershed. The reliability analysis showed adequate supply through a single dry year, a five-year drought, and the 25-year planning horizon.
• The WSCP has been activated three times since 2020: Stage 2 in 2022, Stage 4 during a 2023 line break, and Stage 4 during a 2025 line break.
• Mayor Young questioned whether any city can claim plenty of water through a severe five-year drought, noting the poor condition of the North Bay Aqueduct and water quality concerns. Councilmember Birdseye said Benicia is comparatively well-positioned because of its water assets and management. Councilmember Largaespada asked about the biggest uncertainties, and Davis cited hydrology, infrastructure, and regulatory actions such as Delta water quality requirements; he also said the city's excess raw water should be treated as a strategic asset. Councilmember Scott emphasized that water availability will constrain future growth and that the plan's growth projections appeared conservative.
• During the public hearing, one remote speaker recommended requiring rainwater harvesting and storage in future development, noting that 20-30 percent of local water is used for landscaping.
• The Council closed the public hearing and adopted the resolution approving the 2025 UWMP and WSCP by a 4-0 vote, directing Public Works to submit the plans to the California Department of Water Resources by July 1, 2026.

Solar Preventative Maintenance, Repairs, and Upgrades Agreement

• The Council considered a resolution approving a five-year agreement with Opterra Energy Services, LLC for solar preventative maintenance, repairs, and upgrades in an amount not to exceed $1,603,200, plus budget amendments.
• Staff reported that following Council direction on April 7, 2026, the City asked Opterra to reduce the annual labor escalator to 3%, remove material markups, and lower the equipment markup to 5%. Opterra declined and asked that the original fee structure remain. Staff recommended approval, citing the need to restore revenue from offline solar systems. The City Attorney explained that the agreement uses the city's standard professional services template and that the disputed items were part of Opterra's cost proposal, which had been negotiated in another public entity's procurement.
• Mayor Young raised a broader concern about Council oversight of procurement terms such as markups and escalators; Councilmember Birdseye and others opposed renegotiating from the dais and supported moving forward. Councilmember Largaespada proposed a future discussion of procurement processes.
• No public comments were received. The Council adopted the resolution 4-0.

Key Outcomes

• Agenda adopted 4-0.
• LGBTQIA+ Pride Month proclamation issued for June 2026.
• Appointments to boards, commissions, and committees deferred to June 16.
• Business license tax modernization: no final model selected; staff to develop detailed impacts and outliers for Model One, Option One and Model Four, including marine terminal treatment, for a future meeting before the July 22 ballot-measure direction date.
• $1,547,858 released from Pension Designation to the Section 115 Trust (4-0).
• 2025 UWMP and WSCP adopted and ordered submitted to DWR by July 1, 2026 (4-0).
• Opterra solar agreement approved in an amount not to exceed $1,603,200 (4-0).

The meeting then adjourned.