CRUDE BY RAIL PROJECT

• My goal from the beginning was to gather and read as much information about the project as possible, so that I could make an informed decision when casting my vote.

• I voted to delay a vote on the project in order for us to receive an opinion from the Surface Transportation Board (federal agency that regulates the railroads). It was important for me to have this information in order to determine if Federal Preemption applied to the project, and if so, to what extent. This information would allow me to more accurately assess legal exposure that might result from a City Council vote on the project.

• We received the Surface Transportation Board’s response on the afternoon of September 20, 2016. During the City Council meeting later that evening, the City Council unanimously voted to deny the use permit that Valero requested for the Crude By Rail project.

• At the end of the day, the level of uncertainty was too high, and the risks associated with the project were too great for me to accept for our community.

WATER & SEWER RATE INCREASES

• The City, with the assistance of an outside consultant, conducted an assessment of our water and sewer rates in 2016.

• The study indicated that our existing rates were insufficient to address the ongoing operations of our processes and facilities, and didn’t address the needs related to our aging infrastructure.

• The City Council was presented with three water and sewer rate increase scenarios – Optimal, Achievable, and Minimal.

• The Optimal option would address most of our aging infrastructure issues, but would result in a significant increase in rates for many of our residential, commercial and industrial customers in town. The Achievable option would require a lower rate increase for water and sewer, and would address the higher priority infrastructure issues. The Minimal optionwould provide funding for water and sewer operations, but very little for the capital projects to address the aging infrastructure.

• After extensive discussion with the City Council and City staff, and important testimony, input and feedback from the public, a motion was offered to approve the water and sewer rates at the Optimal level.

The motion was passed on a 3-2 vote, with Mayor Patterson, Councilmember Schwartzman, and Councilmember Strawbridge voting to approve the rate increases, and Councilmember Campbell and I voting to deny the rate increase.

• The reason for my vote to deny the rate increase was that I felt that the City was asking for too much, too quickly from our citizens and our businesses.

NORTHERN GATEWAY PROJECT (SEENO PROPERTY)

• A developer by the name of Robert Schwartz, approached the City earlier this year to discuss a development concept on the 528 acre property in the industrial park, which is owned by the Seeno family. Mr. Schwartz indicated that he had an option to purchase the property, but didn’t want to spend too much money at the design and proposal stages, if the City was not interested in developing the land.

• Mr. Schwartz’s proposal, to a great extent was an expansion of our existing industrial park. Part of this plan was to build new buildings/facilities that would allow existing businesses to expand if they desired, and to attract new businesses to Benicia. The proposed concept also included the development of the south-west corner of East 2nd St. and Lake Herman Road, with some commercial development. And finally, Mr. Schwartz indicated that he would also like to include some residential development on the property, both single family homes and multi-family dwellings; up to 900 total units.

• During my initial meeting with Mr. Schwartz, I indicated to him that I was intrigued with the light industrial and commercial development plans, but that the residential development would be an uphill battle. When he asked why, my initial answer was, “because it’s an industrial park”. I recommended that he talk with others in the community about his proposed project, including the Benicia Industrial Park Association (BIPA). I also told him that he would need to be prepared to answer many questions, including:

- Where would the water come from for this development?

- Where would the children go to school?

- How would the police department and fire department service the area?

- How would you avoid major traffic issues on East 2nd Street?

• Mr. Schwartz did meet with members of our community, including BIPA, and he then presented his proposal to the Planning Commission, and following that meeting, to the Benicia City Council. He acknowledged that many people had issues with including any residential in the industrial park, but asked us if we would at least be open to alternative proposals; would we be willing to at least consider them. Alan Schwartzman, Christina Strawbridge and I indicated that we would be open to considering alternative proposals, but that they would have to look very different than his original proposal. Elizabeth Patterson and Tom Campbell indicated that they would not be interested in reviewing and considering alternative proposals.

• The reason I indicated my willingness to consider alternative proposals is because I thought it was important to keep the discussion alive with the developer. The property has sat vacant for decades, and if we have a developer who is interested in working with us to design a project, we shouldn’t slam the door on him. My hope was that he would listen to the input and feedback from the City, and work with us to develop a plan that would meet everyone’s needs.

• I’ve indicated in public on numerous occasions that I’m not interested in residential development in the industrial park. I’m also on record as saying that we need to develop that property as part of our overall economic development strategy, which will greatly assist us in addressing our future financial/budget challenges.

• I recently heard that Mr. Schwartz has decided not to pursue his option to purchase the Seeno property. I for one was disappointed to hear that news, because I was optimistic that we could have worked in partnership with him to design and develop a project that would result in a win-win proposal for the City of Benicia and Mr. Schwartz.