Novato City Council Meeting - July 23, 2024

The Novato City Council met on July 23, 2024, at 6:00 PM in the City Council Chambers. The meeting featured ceremonial presentations, a strategic plan progress report, a major discussion on placing a 0.75% sales tax measure on the November 2024 ballot, and approval of a technology contract. The council unanimously voted to place the sales tax measure on the ballot, with amendments including a 10-year review clause and language changes to the ballot question.

Consent Calendar

• The council approved the consent calendar (items G.1 through G.7) with the exception of item G.6, which was pulled for separate discussion. Items approved included routine approvals for election consolidation, appointment of the city treasurer, deferred compensation plan trustees, a landscape maintenance contract amendment, a VoIP telephone service agreement, and a response to a Marin County Grand Jury report on cybersecurity.

Public Comments & Testimony

• Phyllis Witten (resident, attorney) commented on item G.6, expressing concerns about transparency and the selection process for the new VoIP provider, and noted that her public records request had not been acknowledged.
• Jennifer Goldfinger (50+ year resident) urged the council to place the 0.75% sales tax increase on the ballot without a sunset, citing the city's long-standing structural deficit.
• Dale Klein (multiple hats) supported the tax but strongly advocated for a sunset clause, citing concerns about future council accountability.
• Kevin Jacobs (39-year resident) supported the tax increase, noting it would support public services and infrastructure.
• David King (financial analyst) urged the council to keep the ballot measure simple and to personally engage with voters in their districts.
• Arthur Ruda praised the presentation and supported the tax, emphasizing public safety.
• Steven Rosenfeld supported placing the measure before voters.
• Roberta Rigney (Marin Valley resident) supported the tax.
• Josh Wax (police officer) supported the tax without a sunset, highlighting the need to retain staff and maintain services.
• Christina Manges (Novato Chamber representative) noted the chamber would discuss the measure and that the tax would impact local retailers.
• Paul Shaw (Novato Police Officers Association president) and Liz Greiner (POA secretary) supported the tax without a sunset.
• Larissa Thomas (Finance Advisory Commission chair) reiterated the commission's unanimous recommendation for the tax with independent oversight, and also recommended aggressive pursuit of grants and economic development.
• Bill Davis, Steve Bloker, Janine Bradley, Susan Harper, Susan Meyer, Charlotte Weiser, Janet Willett, Ursula Peterson, Mary Curry, Paula Capochi, Alan Gump, Serena Fisher, John Hansen, Jay Shaufer, Zachary Greggie, Tina McMillan, Suzanne Crow, Pam Drew, Michael Hutcheson, Jerry Peters, and Ryan (SEIU 1021) all spoke in favor of the sales tax, with several advocating for no sunset, while others (including Bernie Myers, Susan Stomp, George Cohen, Seth Short, Mary Stomp, Mimi Willard, David Gabriel, Sean Casey, and Pam Drew) urged the inclusion of a sunset clause or other guardrails. Many cited the city's financial mismanagement, the need for audits, and the importance of accountability.

Discussion Items

• J.1 Strategic Plan Progress Report: City Manager Amy Cunningham presented a progress report on the council's 2023-2025 Strategic Plan for the period April 1–June 30, 2024. Key updates included progress on affordable housing, homelessness, parks master plan, train depot, city-owned properties, climate action plan, solar energy, purchasing policies, outsourcing study, staffing study, compensation philosophy, employee evaluation, deferred maintenance, fiscal sustainability, audits, and cannabis retail. The council praised the report and staff efforts.
• J.2 Sales Tax Ballot Measure: The council considered a resolution to place a 0.75% transactions and use tax (sales tax) on the November 5, 2024, ballot. The tax would raise an estimated $10.3 million annually for general government use, with no sunset. The city manager presented a detailed financial overview, including a $4.3 million operating deficit, $51 million in deferred maintenance for parks and streets, historic low staffing levels (198 FTE vs. 234 peak), and 98% turnover over 10 years. The Finance Advisory Commission unanimously recommended the measure. Public comment was extensive, with speakers divided on a sunset clause. Councilmember Eklund proposed several amendments: a 10-year review clause (every 5 years thereafter), a requirement for a four-fifths vote on future loans (which failed for lack of a second), and changes to the ballot language to replace "independent citizens oversight" with "citizens oversight" and specify "annual independent audits." The council adopted the 10-year review clause and the language changes. The final vote was 5-0 to adopt the resolution, including the ordinance, and place the measure on the ballot.
• G.6 Technology Agreement (pulled from consent): The council discussed the 101Voice VoIP contract. The Chief Information Officer explained that the current provider (TPX) had chronic outages affecting business lines, including 911, and the new cloud-based solution would save money and improve reliability by using the city's existing network with failover. The contract is within the existing IT budget. The council approved the item unanimously.

Key Outcomes

• Sales Tax Measure Approved for Ballot: The council unanimously (5-0) adopted Resolution No. 2024-XX and Ordinance No. XX, placing a 0.75% sales tax increase on the November 5, 2024, ballot. The measure will be until repealed by voters, with a 10-year review clause (every 5 years thereafter). The ballot language was amended to say "with citizens oversight, annual independent audits." The ordinance was also updated to refer to a "citizens oversight committee."
• Technology Agreement Approved: The council approved the 101Voice VoIP agreement for $197,380, funded from the existing IT operating budget.
• Strategic Plan Report Received: The council received the progress report and directed staff to consider adding progress indicators (e.g., red/yellow/green) to future reports.
• Adjournment: The meeting adjourned in memory of Paul Scheller, a longtime Novato community leader and builder.