Novato City Council Meeting – May 14, 2024

The Novato City Council met on May 14, 2024, to appoint Amy Cunningham as the city's first female city manager, approve the renewal of military equipment use policies, receive a sales tax and budget presentation, and provide direction on the Fiscal Year 2024/2025 operating and capital budgets. The meeting also included ceremonial recognitions and public comments on open space preservation and affordable housing.

Consent Calendar

• The Council approved the consent calendar (items G.1–G.8) with a 5-0 vote, except item G.6 (investment policy) was pulled for separate discussion.
• Approved routine items including: waiving reading of ordinances; approving minutes of April 23 and April 30, 2024; a technology agreement with MaintStar Inc. ($629,600 for a land management system); a second amendment with ClientFirst Technology Consultants ($75,600 for implementation support); a revised investment policy (G.6 pulled); acceptance of work completion for crosswalk enhancements and pavement rehabilitation; and receipt of the Fiscal Year 2021/2022 Measure F report.

Ceremonial Matters/Presentations

• Proclamation: Public Works Week – The Council proclaimed Public Works Week 2024.
• Recognition for Dave Jeffries – The Council posthumously honored Dave Jeffries, a retired Novato police captain and emergency services manager who passed away on April 22, 2024. His partner Laura and mother Shelley were acknowledged. A recognition outlined his 31 years of service and contributions to public safety.
• Sales Tax Presentation from HdL – Ken Nordoff of HdL Companies presented an overview of sales and use tax laws, recent revenue results for Novato (sales tax down 1.7% in 2023; Measure C down $55,000), per capita sales comparisons, and implications for a potential new local transaction tax measure. He noted Novato has 0.75% cap space remaining before reaching the 9.25% statewide cap. Council discussed competitive dynamics and the importance of acting before county agencies use the cap space.

Public Comments & Testimony

• Mark Smith – A Point Marin resident urged the Council to pass a resolution permanently designating Parcel M as open space and to dedicate it as the “Pat Eklund Ignacio Creek Preserve,” opposing a North Marin Water District pump station proposal. He cited Councilmember Eklund’s long service as warranting the naming.
• Peter Mendoza – A former Novato resident spoke in memory of Dave Jeffries, praising his character and service. He also requested improvements to affordable housing and an automatic door on the council chambers for ADA compliance.

Discussion Items

• J.1 – Appointment of Amy Cunningham as City Manager – The Council considered and unanimously adopted a resolution appointing Amy Cunningham as City Manager and authorizing the Mayor to execute an employment agreement (base salary $285,701). Council members praised her dedication, financial acumen, and leadership. This marks the first female city manager in Novato’s history.
• J.2 – Military Equipment Use Ordinance Renewal – Police Chief Jim Naugle presented the 2023-2024 Annual Report required by Assembly Bill 481. The report listed equipment in six of fifteen state-defined categories (drones, armored rescue vehicle, specialized firearms, flashbangs, patrol rifles, less lethal launchers, night vision goggles). No complaints were received in 2023; a public meeting by the Police Advisory Review Board was fully supportive. Council unanimously approved the renewal ordinance and annual report.
• L.1 – Fiscal Year 2024/2025 Budget Workshop – The Council received a preliminary budget overview showing a $5 million general fund deficit. Staff presented budget options to reduce the deficit, including adjusting OPEB contributions, vacancy savings, long-term maintenance fund transfers, IT equipment funding, and service improvements. The Council provided direction on each line item (see Key Outcomes). After discussion, the updated deficit stood at approximately $4.19 million. The final budget will be brought back for adoption on June 11, 2024.

Key Outcomes

• Consent Calendar – Approved 5-0 (except G.6 pulled).
• J.1 – City Manager Appointment – Motion carried 5-0 to adopt the resolution and execute the employment agreement.
• J.2 – Military Equipment Ordinance Renewal – Motion carried 5-0.
• Budget Direction (L.1) – Council gave consensus direction on the following:
  • OPEB: $240,000 (consistent with actuarial recommendation).
  • Personnel vacancy savings: $450,000 (up from historic $250,000).
  • Long-term maintenance – Facilities: $144,000 from general fund plus $156,000 from Measure F (total $300,000).
  • Long-term maintenance – Infrastructure: $300,000.
  • IT equipment replacement: $95,000.
  • 501 Davidson loan payment: deferred ($0).
  • One-time ARPA funds for records management: $50,000 (net zero via transfer).
  • Street sweeping app: approved 3-2 (cost: $1,550 one-time, $2,950 ongoing).
  • Community Development Department personnel: $350,000 for a plan check engineer and a planner.
  • Maintenance service support: $75,000.
  • Gas tax transfer: $1 million.
  • Measure A transfer: $300,000 (compromise between $225,000 and $400,000).
  • Community sponsorship and youth financial assistance: maintained at $50,000 and $10,000 respectively (no change).
  • Equipment replacement fund contribution: reduced to $700,000 (from $1 million).
• School Resource Officer – The Council discussed keeping the position but unfunded; majority favored not adding an unfunded FTE but directed staff to actively seek grants and return quickly if awarded.
• Investment Policy (G.6) – Item was pulled and discussed. Council tabled approval to allow further discussion on potentially adjusting the investment strategy to achieve higher returns while remaining conservative. The item will go to the Finance Advisory Commission in June and return to Council at a later date.
• Adjournment – The meeting adjourned at approximately 10:30 PM.