Novato City Council Meeting Summary: May 20, 2025

The Novato City Council met on Tuesday, May 20, 2025, at 6:00 PM. The meeting included ceremonial proclamations, public comments from city employees regarding labor negotiations and from tenants displaced from Romar Court, a public hearing on workforce vacancies (AB 2561), adoption of the Annual Comprehensive Financial Report (ACFR) for FY 2023/2024, and a discussion on anti-displacement and tenant protections. Key outcomes included a $33,235 budget transfer for recreation facility safety, a resolution approving the capital improvement project list for state funding, and direction to staff to prioritize a just cause eviction ordinance and a uniform building code for abatement of dangerous buildings.

Consent Calendar

• Resolution approving list of capital improvement projects eligible for state Roadway Maintenance and Rehabilitation Account funding for FY 2025/26. (G.2)
• Resolution authorizing an extension to the agreement with MUN CPAs, LLC for financial audits for FY 2024/2025 and FY 2025/2026, with options to extend, at an annual cost not to exceed $79,600. (G.3)
• Authorization for local sculptor Archie Held to submit an application for the Marin Community Foundation's Pirkle Jones Grant under the City's Art in Public Places Program for a new sculpture to replace a deteriorating fountain. (G.4)
• Resolution amending the FY 2024/2025 Operating Budget to transfer $33,235 from General Fund Assigned Fund Balance for recreation facility safety enhancements and special event equipment upgrades at the Novato Gymnastics Center. (G.5)
• Receive and file the FY 2024/25 3rd Quarter budget report. (G.6) All consent calendar items were approved unanimously (5-0).

Public Comments & Testimony

• City Employees (Unit D and others, through SEIU 1021): Over a dozen current city employees and union representatives (including Paul Periman, Travis Balzarini, Sarah Bailey, Nick M., Clark Moretti, Tiffany Porter, Perry Sue, Veronica Briarly, Sam Hagner, George Gasparini, Pablo Rodriguez, David Ayala, and John Oblund) spoke during public comment and the AB 2561 public hearing. They expressed that wages are below the median market rate and insufficient to keep pace with the cost of living in Marin County. Employees described working second jobs, commuting long distances, facing housing insecurity, and being unable to afford basic necessities like meat for their families. Several speakers noted that Measure M, a recently passed sales tax estimated to generate over $10.3 million annually, was presented with a promise to improve recruitment and retention, but that contract offers since then have been inadequate. They urged the council to authorize more funds at the bargaining table and to stop relying on "empty words of appreciation." One union representative, John Oblund, alleged that the city's bargaining team (including the Chief People Officer and an attorney from Burke Williams & Sorensen) has engaged in degrading, gaslighting, insulting, and threatening behavior, including a threat of legal action against union members who allegedly approached council members directly.
• Tenants of Romar Court (with support from community organizations): Twelve tenants (Maria Lemos, Javier, Kevin Fernandez, Oscar Perez Escobar, Nelson Sales, Vilma Monzon, Jocelyn, Rica, and Catarino Resentis, among others) and two representatives (Amarantha Silva from Primeros Pasos/Prime Voices Marin and Dalma from Legal Aid of Marin) spoke during public comment. They described being given only five days' notice to vacate their homes at the Romar Court apartment complex on April 29, 2025, due to a red-tag order from the city because of unsafe, uninhabitable conditions (including black mold, broken windows, rodents, cockroaches, and flooding). Tenants reported paying monthly rents of $2,600 to $3,500 and stated that the landlord (who owns over 7,600 units) failed to make repairs despite repeated requests. They described the emotional trauma on their children, the inability to find new housing due to high costs and low vacancy, and the financial burden of moving with little notice. They called for relocation assistance, a right to return to their homes after repairs, stronger enforcement against negligent landlords, a rental registry, and accountability from property owners. They thanked the city for providing some assistance but said it was not enough.
• Legal Aid of Marin: Ethan Strahl urged the council to adopt stronger tenant protections by August, including higher relocation payments, a right to return for tenants displaced through no fault of their own, a moratorium on evictions for substantial renovations, and a rental registry.
• Community Action Marin: Aaron Hawkins called on the council to adopt the proposed ordinances to protect tenants, stating that housing is the greatest need identified in the county's biannual needs assessment.
• Primer Pasos/Prime Voices Marin: Amarantha Silva emphasized the need for legal support, moving assistance, and mental health support for the displaced tenants, and urged the council to listen to them beyond the meeting's time limit.
• Regina Biannucci Russ: Supported a rental registry but also suggested requiring landlords with more than three units to register as a business and obtain a business license as a simpler interim step.

Discussion Items

C. Ceremonial Matters/Presentations

• C.1: Proclamation: Public Works Week (May 18-24, 2025) – The council recognized the Novato Public Works Department for its dedication. The proclamation noted the department maintains 460 miles of roads, 318 miles of streets, 115 acres of parks, and numerous buildings and fleet vehicles.
• C.2: Alchemia Art Day Proclamation (May 20, 2025) – The council recognized Alchemia, a nonprofit founded in 1998 that empowers artists with intellectual and developmental disabilities through visual, performing, and media arts, serving over 100 artists. The proclamation celebrated the "Voices and Visions Art Showcase" partnership with Leadership Novato.
• C.3: Novato Proud: Wesley Fink – The council recognized Wesley Fink for organizing Novato's first Pride Month recognition in 2021, which led to the city's annual Pride flag raising ceremony. Fink now serves as a staffer for U.S. Senator Adam Schiff in Washington, D.C. Former councilmember Amy Fields submitted a statement praising his work.

I.1: Public Hearing – Workforce Vacancies, Recruitment, and Retention (AB 2561)

• Staff presented vacancy and turnover data as of January 1, 2025. The overall city vacancy rate was reported at 8.3% (22.5 FTE vacancies). The police officers association (Unit B) had a vacancy rate of 34% (7 vacancies) and a 12-month turnover rate of 34%. Citywide, 34 employees separated in the prior 12 months (over 17% turnover). Of those, approximately 80% resigned, 8% retired, and 12% were terminated. The chief of police confirmed that most officer departures were laterals to other agencies, primarily driven by pay. Staff outlined recruitment and retention strategies, including streamlining hiring, expanding outreach (social media, professional associations), offering flexible/hybrid work schedules, strengthening onboarding, conducting salary/benefit benchmarking, promoting internal promotions, and improving exit interview processes. Council discussion focused on the need for regular exit interviews, performance-based awards, tuition reimbursement, and succession planning. The council received and filed the report via a 4-0-1 vote (Councilmember Milberg absent).

J.1: Annual Comprehensive Financial Report (ACFR) for FY 2023/2024

• Finance Director Carla Carvalho-DeGraff and audit partner Erica Pastor (MUN CPAs) presented the ACFR, noting the city received an unmodified (clean) audit opinion. The city has now completed audits for FY 2020 through FY 2024, catching up on all outstanding audits. The report showed a net position increase of $2.6 million year-over-year. The general fund had a fund balance of $69.8 million. Key audit findings included one material weakness (related to deposits) and one significant deficiency (related to bank reconciliations), both carryovers from prior years. Management letter comments decreased from seven to five. The council adopted a resolution authorizing the transfer of the unassigned general fund balance (approximately $2 million) to the Emergency and Disaster Reserve Fund, bringing that reserve to an estimated 29% of operating expenses by year-end. The motion passed 4-0-1 (Milberg absent).

J.2: Anti-Displacement and Tenant Protections Work Plan

• Community Development Director Clare Hartman presented the 6th Cycle Housing Element's work plan, which includes goals for housing conservation and tenant protections. She highlighted that a comprehensive package of tenant protection policies is scheduled for June 2026, but given the recent displacement at Romar Court, she asked the council for direction on prioritizing specific items. Options included adopting a Uniform Building Code for abatement of dangerous buildings, adopting a local just cause eviction ordinance that covers red-tag displacement, enhancing relocation assistance requirements, creating a right of return for displaced tenants, and collaborating on a countywide land trust (to be considered June 10). Councilmembers Eklund, Jacobs, and Mayor O'Connor all expressed strong support for elevating the just cause ordinance and the building code as top priorities, with an aim to bring draft ordinances back as early as August 2025. They also expressed interest in a rental registry. The council provided direction to staff to prioritize these items. Councilmember Eklund emphasized the urgency due to ongoing health hazards (mold, pests) in other buildings.

Key Outcomes

• Consent Calendar approved (5-0).
• AB 2561 public hearing closed and report received and filed (4-0-1, Milberg absent). The council requested a follow-up with more detailed information on employee recognition programs and exit interview data, to be discussed at the June 10 strategic plan update.
• ACFR for FY 2023/2024 approved and resolution adopted to transfer approximately $2 million in unassigned fund balance to the Emergency and Disaster Reserve Fund (4-0-1, Milberg absent).
• Direction to staff on anti-displacement and tenant protections: Prioritize and bring back by August 2025 draft ordinances for a local just cause eviction ordinance (including protections for tenants displaced by red-tag actions) and a Uniform Building Code for abatement of dangerous buildings. Staff was also directed to explore a rental registry and bring back additional information on the county land trust opportunity on June 10.
• Measure M allocation: During public comment and council discussion, it was noted that Measure M was expected to generate over $10.3 million annually, with stated goals including recruitment and retention of city staff.
• Meeting adjourned at approximately 9:45 PM. The next regular council meeting is scheduled for June 10, 2025.