Novato City Council Meeting Summary: July 9, 2024

The Novato City Council met on Tuesday, July 9, 2024, at 6:00 PM in the City Council Chambers. The meeting included presentations on the city's pavement condition, a five-year general fund forecast, and a community opinion survey, alongside public hearings on landscape assessment districts and a discussion on e-bike safety. The council also received a proclamation for Parks and Recreation Month and heard public comments on a potential sales tax measure.

Consent Calendar

• The council approved the consent calendar with the exception of item G.9 (e-bike grand jury response), which was pulled for separate discussion. Items approved included routine approvals, minutes, ordinance adoption for mobilehome rent control, notices of completion, contract amendments, and resolutions related to street sweeping, engineering services, and the grand jury response (with modifications).

Public Comments & Testimony

• Mary Stump (Coalition of Sensible Taxpayers) urged the council to consider a half-cent sales tax increase with a 10-year sunset, rather than a three-quarter cent permanent tax, and provided a copy of COST's tax criteria.
• Bernard Myers (former mayor) proposed guardrails for any sales tax increase, including a 4-to-1 vote requirement to override the finance committee and salary freezes for city manager and finance director if audits are delayed. He also questioned whether funds taken from the Hamilton Trust Fund and other accounts had been replaced.
• Paul Shaw (Novato Police Officers Association) expressed concern about the city's financial projections and urged the council to take swift action to raise revenue to avoid cuts to services, including police response.

Discussion Items

• Pavement Condition Report (J.1): Margot Yap of NCE Consulting presented the city's pavement condition index (PCI) of 66, a slight decline from 72 in 2013. The city faces $38 million in deferred maintenance. Current funding of $3 million per year will lead to a PCI of 61 in five years and a $61 million backlog. To stabilize at 66, $8 million per year is needed; to improve to 72, $11 million per year. The council discussed the need for increased investment, federal grant opportunities, and the impact of declining gas tax revenues. Councilmember Eklund suggested exploring road diets to reduce maintenance costs.
• Five-Year General Fund Forecast (J.2): Finance Director Carla Carvalho-DeGraff and consultant Andy Heath presented the forecast. The general fund faces systemic deficits of $3.4–$3.8 million starting in FY 2025-26, with reserves projected to be exhausted by FY 2026-27. Key drivers include rising CalPERS costs (expected to increase by $2.2 million over five years) and the need to fill current vacancies. A potential 3/4-cent sales tax increase could generate $10.5 million annually, turning deficits into surpluses of $7.2–$8.6 million. The council discussed the complexity of the city's budget structure (85 departments, 1,500 line items) and the need for service delivery efficiencies.
• Community Opinion Survey (J.3): Brian Godby of Godbe Research presented results of a survey of 410 likely November 2024 voters. Initial support for a 3/4-cent general sales tax was 57.4%, increasing to 65.1% after information about spending priorities and accountability provisions, then dropping to 59% after negative arguments. The top priority for spending was fixing potholes and maintaining streets (78%). The survey found that a half-cent tax or an 8-year sunset would slightly increase support, but the 3/4-cent, until-repealed-by-voters option was still viable. The council discussed next steps, including bringing a resolution to the July 23 meeting to place the measure on the November ballot.
• E-Bike Grand Jury Response (G.9): Councilmember Eklund pulled the item, expressing concerns about the tone of the response to the grand jury and the community letter. Councilmembers and Chief Naugle discussed the need for a countywide approach, but also the importance of local action. The council directed staff to modify the response to soften language (e.g., changing “not warranted” to “not practical at this time”) and to revise the community letter for clarity, while retaining technical details. The council adopted the resolution with the understanding that the exhibit would be modified per direction.

Key Outcomes

• Landscape Assessment Districts (I.1–I.4): All four resolutions were adopted unanimously (5-0), with Councilmember Wernick recused on I.1 (San Marin) as a resident. The assessments for FY 2024/25 were levied as follows: San Marin ($48.12/unit, +$1.11), San Pablo ($910.06/unit, +$23.92), Wildwood Glen ($267.44/unit, +$6.18), and Hillside Park Unit 4 ($421.48/unit, +$9.74).
• E-Bike Resolution (G.9): The council adopted the resolution (5-0) directing staff to modify the grand jury response and the community letter as discussed, with the response due to the grand jury by July 25, 2024.
• Next Steps: The council will consider a resolution to place a 3/4-cent sales tax measure on the November ballot at the July 23, 2024 meeting. Staff will also bring back an update on e-bike safety efforts by October 26, 2024.