Novato City Council Meeting - June 10, 2025: Budget, Nuisance Appeal, and Employee Compensation Concerns

The Novato City Council met on Tuesday, June 10, 2025, at 6:00 PM. The meeting included ceremonial presentations, approval of a consent calendar, extensive public comment from city employees and residents regarding staffing and compensation, a public hearing on a nuisance appeal for 500 Canyon Road, and a budget hearing for Fiscal Year 2025/26. Key actions included approval of the nuisance abatement order and receipt of the preliminary budget for final adoption on June 24, 2025.

Consent Calendar

• Items Approved: The council approved the consent calendar (Items G.1 through G.10) by a single 5-0 vote. Items included approval of minutes, acceptance of work completion for streetlight pole replacement and Hoog Park play area, adoption of resolutions for Microsoft Office 365 renewal, an amendment with Hinderliter De Llamas & Associates for short-term rental management, a professional services agreement for a trash capture device, and receipt of the Strategic Plan progress report.

Public Comments & Testimony

• Police Officer Turnover and Measure M: Multiple speakers, including police officers Alex Mueller (Vice President of Novato Police Officers Association) and Stephen Nelson, and 24-year veteran Laura Hauser, expressed that the city is losing experienced officers to higher-paying agencies. They argued that Measure M funds, advertised to protect public safety, are not being used to improve officer pay and retention. Susan Kim, a resident, stated she voted for Measure M based on promises to fund police but now feels trust is broken. Mike Matthews, a resident, highlighted the importance of community-policing relationships.
• Unit D Employee Compensation and Threat of Strike: Several employees from Unit D (representing public works, parks and rec, community development, etc.) spoke during public comment. Speakers included Perry Sue (SEIU steward), Jamee Downhour, Brett Walker (senior planner), George Gasparini, Tiffany Porter, David Ayala, John Blunt, Laura Vasquez, and Samantha Hagner. They stated that the city's last/best/final offer (approximately 11% over three years) is inadequate; they are paid 12-17% below market average. They cited the city's high reserve (proposed 30% vs. policy 15%) and argued that the council is not authorizing sufficient funds. Multiple speakers, including George Gasparini and David Ayala, stated they would vote to strike if a fair contract is not reached by the June 30, 2025 expiration. John Blunt reported that 100% of Unit D members polled (50 of 76) are prepared to hold out.

Discussion Items

• Pride Month Proclamation: The council recognized June 2025 as LGBTQ+ Pride Month. Pam Luck, Multicultural Advisory Commission Chair, read the winning submission from a community contest.
• Pet Inclusive Novato Presentation: Brian Cooley provided an update on the program, reporting three businesses awarded the official seal and two more pending. The program plans a direct mail campaign to 1,500 businesses. Marin Humane presented the city with its own official seal.
• Age + Disability Friendly Novato Action Plan (2025-2028): Lisa Swanson and Colleen Arnold presented the three-year plan. Key data from a community survey (614 valid responses) included: 70% female, largest age group 65-74, 98% feel safe at home, 22% are caregivers, 11% worry about food running out. Goals include inclusive multi-generational gatherings, online resource hub, and improved park accessibility. Council received the plan and expressed support.
• Public Hearing: Appeal of Public Nuisance at 500 Canyon Road (Paolo Franzi): Deputy Director Steve Marshall presented evidence of commercial demolition business operating in a residential zone, including commercial vehicles, heavy equipment, stockpiled debris, unpermitted electrical panel, and widening of Canyon Road without permits. The appellant and their attorney did not appear. Councilmember Eklund proposed amendments to the abatement order to include specific dates and weight limits (two tons). The resolution was adopted 5-0 as amended.
• Budget Hearing: FY 2025/26 Preliminary Operating and Capital Improvement Budgets: City Manager Amy Cunningham and Finance Director Carla Carvalho-DeGraff presented the balanced budget with $57.73 million in revenue and expenses. Measure M revenue of $10.2 million is allocated to deficit backfill ($3.97M), restored staffing and resources ($1.32M), emergency reserve ($1.38M), deferred maintenance ($500K), managing pension liabilities ($525K), innovation ($250K), and capital projects ($1.9M). Four new FTEs are added, but staffing remains below pre-pandemic levels. The budget does not include any labor cost adjustments pending negotiations. No public comments were received. The hearing was closed; the final resolution for adoption is scheduled for June 24, 2025.

Key Outcomes

• Nuisance Appeal (500 Canyon Road): The council adopted Resolution 2025-__ (pending number) approving the Appeals Board decision, declaring violations a public nuisance, and issuing an abatement order requiring cessation of commercial activity, removal of materials, and compliance with permits. Amendments included a specific effective date (June 11, 2025) and clarification that tools and vehicles must be those commonly found at a residence. The vote was 5-0.
• Budget Direction: Council provided staff with final direction on the preliminary budget; no formal action was taken. The budget will be presented for adoption at the June 24, 2025 meeting.
• Consent Calendar: All items approved 5-0.
• Upcoming Meeting: The next regular City Council meeting is scheduled for June 24, 2025.