■ City Council approves membership in Marin Clean Energy program, alternative to PG&E

Benicia City Council completed its adoption of an ordinance Tuesday that authorized city membership in the Marin Clean Energy community choice aggregation program.

The second reading of the ordinance that also approves the MCE Joint Powers Agreement originally was placed on the consent calendar of Tuesday’s agenda, meaning it was considered so routine that it could be passed in a single vote without comment, along with several other items.

But a resident who opposed the move, Michael Escobosa, asked to speak on the matter.

That led Councilmember Mark Hughes to recuse himself before the Council voted unanimously in favor of the ordinance originally introduced Nov. 4.

Hughes is retired from the city’s current electricity supplier, Pacific Gas and Electric. After a resident raised concerns Hughes had a conflict of interest in voting to replace PG&E with MCE, he chose to recuse himself from any discussions on the matter, even after the city obtained assurances from the California Fair Political Practices Commission that it’s legal for him to participate.

Escobosa also is a former PG&E employee who retired in 1987. He said he was worried the Marin community choice aggregation agency wouldn’t last. He suggested putting the matter before residents through notations on their water bills.

He also asked whether PG&E had been consulted. “PG&E has been good to each and every one of you,” he said, and asked if the Council had sought reduced rates from the utility.

Climate Action Plan Coordinator Alex Porteshawver said Benicia employees and PG&E have developed a working relationship, and the company sent a panel representative to a study session on joining the Marin agency.

However, the utility can’t cut its rate schedules solely to Benicia, she said. “They can’t give a break to the city,” she told Escobosa.

“PG&E gets money through transmission,” Mayor Elizabeth Patterson added.

Under state law, the member-supported MCE can purchase or generate energy and offer customers options of 50 percent or greater “green,” or renewable energy-sourced, electricity. Benicia will get a seat on the MCE board of directors.

Councilmember Alan Schwartzman asked whether the change would affect rebates both companies and residents can obtain to make changes that reduce their power consumption. Porteshawver said money for those rebates comes from purchase charges on all utilities, and that the California Public Utilities Commission allocates those funds. That means those who are changed automatically to MCE, as well as those who elect to remain with PG&E, can get rebates based on PUC decisions, she said.

The ordinance’s passage drew applause from supporters in the audience.

In other business Tuesday, the Council also unanimously agreed to raise the traffic impact fee on new development.

Engineer Mike Roberts, who is leaving Benicia to become the public works director of Hercules, told the Council that the new fee of $2,180 would generate an estimated $29 million during a 20-year period for future roadway improvements needed to accommodate the new development.

Excluded from consideration in this projection is the 285-acre Benicia Business Park, which had been under consideration for development for several years until property owner Albert Seeno Jr. announced July 1, 2010, he was pulling the project from consideration.

The panel also approved Mills Act contracts with the property owners of 153 West G St. and 180 West H St. The homes are considered contributors to the city’s downtown historic district, and the owners will have their property taxes reduced in exchange for agreeing to a series of tasks that will keep the properties in historically appropriate condition.

Schwartzman said he was concerned that the city’s $35,000 threshold of property tax revenue lost through Mills Act contracts was about to be breached.

But Principal Planner Amy Million said, “The threshold question is interesting, and it will fluctuate every year. It’s difficult to put a cap on it. We’re under $35,000 now.”

Solano County bases the assessment of Mills Act sites on their rental value, she said. “If the rental market is up, it can go up. If it weakens, then it goes below $35,000.” She said the Council may want to consider changing its cap to the number of Mills contracts, rather than tie the limit to property assessments.

Patterson said she has been asking for other information with each Mills Act application. “I never see the benefits to the city,” she said. “On an update, could we have the benefits listed?”