Benicia City Council Agenda, Tues. May 20, 2025
Item 15.B – Staff Report
TO : City Council
FROM : City Manager
SUBJECT : APPOINTMENT OF CITY COUNCIL MEMBERS TO AD HOC “ACT” TASK FORCE GROUPS IN RESPONSE TO POTENTIAL BENICIA VALERO REFINARY CLOSURE
EXECUTIVE SUMMARY:
With the recent news by the Valero Energy Company to potentially cease operation at the Valero Benicia Refinery in April 2026, the City believes it is worthwhile for the City Council to spearhead task force groups to work with various stakeholders to understand potential economic impacts, develop strategies to mitigate those impacts and plan for the future. To that end, Mayor Young is proposing four (4) separate City Council Task Force Groups to understand the impacts of any closure will have on the community.
RECOMMENDATION:
Move to adopt by motion the nomination of the respective members of the City Council to the proposed Ad Hoc Task Force Groups.
BUDGET INFORMATION:
Staff does not anticipate any direct impact on the City’s budget due to the action of creating the proposed Task Force Groups.
BACKGROUND:
To help facilitate engagement and information with impacted stakeholder groups, advocate for the protection of Benicia’s economy and imagine the possible transition of redeveloping 930 acres of the Valero Benicia Refinery, Mayor Young is proposing four (4) ad hoc City Council “ACT” Task Force Groups: Advocacy, Collaboration & Transition.
These proposed groups will be ad hoc in nature and not subject to the Brown Act or Open Government Ordinance. The respective member(s) of Council may solicit feedback and participation from stakeholders as they deem helpful to gather information germane to their purpose, including business owners, employees, labor leaders, community members and governmental and non-governmental organizations. The second City Council meeting of each month will serve as an opportunity for the members of Council to report on the progress of each ad hoc group.
Task Force 1: ADVOCATE for Benicia’s Economy: – Mayor Young
It is proposed that Mayor Young will serve as a point of contact and lead efforts to work with State Officials such as the Governor’s Office of Economic Development, The California Energy Commission, elected leaders, labor and business representatives to advocate on behalf of Benicia relating to the potential shutdown of the refinery. The purpose is to gather information and reports on the economic value of the refining operations to Benicia’s economy, county employment, the States economy as well as the importance the Benicia refinery is to Travis Air Force Base.
Task Force 2: COLLABORATE with Community: Non-Profit Organizations, Sports Groups, Benicia Unified School District, Restaurants & Hotels – Council Member Largaespada
The focus of this Task Force is to coordinate between the various community groups that receive contributions and support from Valero. Understand the economic impact to these groups and facilitate collaboration between groups to maximize resources where possible and generate plans on how to proceed with either less funding or new means of revenue. Similarly, with sports groups, the intent is to quantify the financial contribution made to sports groups and how reduced support from Valero could impact users. Additionally, this Task Force will coordinate with Benicia Unified School District to analyze the impact on property tax revenue to the District and any other direct revenue loss from Valero’s cessation of operations. Finally, this Task Force will seek to quantify the economic impact on hotels and restaurants with Valero’s exit. The work of Councilmember Largaespada is to coordinate information, facilitate cooperation of resources between groups where feasible, and develop a plan of action on how to overcome the loss of revenue with Valero’s departure.
Task Force 3: COLLABORATE with Benicia Industrial Park (BIP): Existing industrial park businesses, Rose Estates and Port of Benicia – Council Member Birdseye
This Task Force is designed to work with impacted BIP businesses; understanding the impact on jobs, lost revenue and impacts on the stream of commerce. Additionally, this Task Force shall coordinate the plans and actions of Rose Estates, the Priority Production Area plan of the Port with redevelopment efforts of the 930 acres of Valero’s property with any interested developers. There may be an opportunity to synchronize development activity and/or work to incentivize new business development into the BIP including offshore wind manufacturing.
Task Force 4: TRANSITION Prepare for Transition and Redevelopment of Valero’s 930 acres: Valero & Signature Development Group – Vice Mayor Macenski & Council Member Scott
This Task Force is to collaborate with Valero and Signature Development Group to imagine the possible reuse opportunities for the 930 acres of Valero’s property. This Task Force would help to facilitate stakeholder involvement to solicit public feedback and visioning. Identify the types of uses, be it residential commercial or industrial and those uses can be best incorporated into Benicia. Identify reports and information that would be helpful to forecast highest and best use for Benicia’s economic viability and environmental sustainability.
NEXT STEPS:
If approved, the various Task Force groups can meet at their convenience with stakeholders of their choosing to help facilitate their mission.
ALTERNATIVE ACTIONS:
None.
CEQA Analysis
The requested action is exempt from CEQA because it will not result in a direct or indirect physical change in the environment and therefore it is not a project as defined in CEQA Guidelines Section 15378.
ATTACHMENT:
None.
For more information contact: Mario Giuliani, City Manager
Phone: 707-746- 4289
E-mail: mgiuliani@ci.benicia.ca.us
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