Novato City Council Meeting – June 24, 2025: Budget Adoption, Sherman Group, Grant Avenue Striping
STREAMING COPY IN PREPARATION — RECORDING AVAILABLE FROM THE ORIGINAL SOURCE
Novato City Council Meeting – June 24, 2025
The Novato City Council met on Tuesday, June 24, 2025, at 6:00 PM at 901 Sherman Avenue. The meeting included a proclamation honoring Karyn Harrington for 21 years of service, general public comments opposing cannabis storefronts, and action on major agenda items: adoption of the balanced FY 2025/26 operating and capital budgets, an update from The Sherman Group on a proposed downtown development, a resolution to comply with MTC’s Transit Oriented Communities Preservation Policy 5, approval of a striping plan for Grant Avenue, and appointments to several commissions.
Consent Calendar
- Approved routine items including: a resolution establishing the appropriations limit of $163,567,602 for FY 2025/26; an amendment to the consultant services agreement with Mark Thomas & Company, Inc. for $216,095 (total contract $1,265,571) for the Novato Boulevard Improvements Project; a program supplement for the Citywide Bridge Assessment / Improvements; and resolutions of intention to levy assessments for Landscape Assessment Districts A-81 (San Marin), A-03 (San Pablo), C-91 (Wildwood Glen), and A-91 (Hillside Park) with a public hearing set for July 8, 2025. Councilmember Jacobs recused from item G.5 due to property ownership. Motion passed 5-0.
Public Comments & Testimony
- General Public Comment (cannabis storefronts): Seven speakers opposed potential licensing of cannabis storefronts and cafes in Novato. Michelle Leopold shared that her son died at 18 largely due to cannabis use disorder. Elizabeth O’Donnell cited high-potency THC (60–99% vs. 4–7% in the past) and data from Colorado linking cannabis to youth suicides. Alexandra Talbot, 21, described her own recovery from cannabis addiction starting at age 14. Daniela Contreras, a Novato High senior, stated that flavored cannabis vapes appeal to youth and noted vaping at graduation. Brett Goldman warned about fake IDs and the collapse of the legal cannabis industry. Allie Baer, a substance use prevention professional, described cannabis-induced psychosis and hyperemesis (scromiting) seen in emergency rooms. Kate Rue shared stories of two boys, Jackson and Lucas, who died by suicide after cannabis use. All urged the council not to allow storefronts.
- Item J.3 – Grant Avenue Striping: Speakers included Liz Bernstein (Marin County Bicycle Coalition) in favor of bike lanes both directions (Option C); Ann Ruggenbuck (small business owner) supporting Option A; Joaquin Hustis arguing Option A is not a true compromise; Casey Ward (C SPOC member) supporting Option C; Stephanie Koehler (Downtown Novato Business Association) recommending Option A to preserve parking; Derek Nell (Novato Unified School District) supporting Option A for safety; and others.
Discussion Items
- J.1 – The Sherman Group Development Update: Henry Hawtaw and Dennis Peck presented a revised proposal for city-owned properties at 900 and 908 Sherman Avenue. Due to the state’s Surplus Land Act limiting leases to 15 years and the estimated $7+ million cost to rehabilitate the existing dilapidated structures (the Simmons House and Hain House), they now propose constructing a new 5,000–6,000 square foot barn-style building (named Rancho or Rancho Novato) with indoor/outdoor space. The design would feature 3–4 food vendor partnerships, a coffee/ice cream booth, and a bar, with colors matching City Hall. The development would create over 50 jobs. Council expressed strong support; Councilmember Eklund voiced disappointment over not preserving historic buildings. Council directed staff to continue negotiations and bring proposed terms to closed session.
- J.2 – MTC TOC Preservation Policy 5 Compliance: Community Development Director Clare Hartman presented a resolution committing the city to participate in a countywide effort to explore a community land trust (CLT), funded by a $2 million MTC grant. Novato has three TOC-eligible station areas (SMART stations) and would be part of a pilot with Larkspur, San Rafael, and Sausalito. The first phase involves no financial commitment; future participation would require council approval. The resolution was adopted.
- J.3 – Grant Avenue Final Striping Plan: Public Works Director Tim Burker presented options for the section between 7th and 8th Streets as part of the 2025 Annual Pavement Rehabilitation Project. Staff recommended Option A: a class II bike lane on the north side only, retaining all 47 on-street parking spaces and the center turn lane. Option C would add bike lanes both directions but eliminate 15 parking spaces and the center turn lane. Council discussed parking utilization surveys showing low demand, but business and school district stakeholders opposed losing spaces. A motion to approve Option A passed 4-1 (Mayor Pro Tempore Farac opposed).
- J.4 – Budget Adoption FY 2025/26: City Manager Amy Cunningham and finance staff presented the final balanced budget. General fund revenue and expenses are both $57.73 million. Measure M provides $5.2 million to backfill the structural deficit and add resources. The budget includes 205 FTEs (up 6 from FY25), with two new maintenance worker positions funded by reallocating $500,000 from operations. The Capital Improvement Program includes $9.1 million in new funding for 76 projects. The Marin Valley Mobile Country Club budget includes a 2.5% rent increase and $621,000 in capital spending. Councilmember Eklund requested adding an assessment of the Hamilton Museum foundation to the work plan; staff agreed to investigate. The motion to adopt the budgets (including the NPFA resolution) passed 5-0.
Key Outcomes
- Adopted FY 2025/26 Operating and Capital Improvement Program Budgets (and Novato Public Finance Authority budget) with direction to add Hamilton Museum foundation assessment to the work plan.
- Approved Grant Avenue Striping Plan – Option A (4-1 vote): bike lane on north side only, all parking retained, center turn lane preserved.
- Approved Resolution to Comply with MTC TOC Preservation Policy 5 to participate in a countywide community land trust feasibility study.
- Directed staff to continue negotiations with The Sherman Group for development at 900-908 Sherman Avenue, with closed-session discussions on lease terms and building use.
- Made appointments to the following: Complete Streets and Pathways Oversight Committee (1 seat), Economic Development Advisory Commission (1 seat), Multicultural Advisory Commission (2 seats: Curtis Aikens for a two-year term and Anna [last name not specified] for a one-year term), Marin County Commission on Aging (1 seat), and Planning Commission (1 seat). No applicant was received for the Design Review Commission seat.
Meeting Transcript
Good evening and welcome to the City of Novato Council meeting for Tuesday, June 24th, 2025. Please stand for the Pledge of Allegiance. I pledge advantages to the fire of the United States America. And to the remote stands. Under this with liberty justice overall. Thank you. There was no closed session this evening. So our first item of business is a proclamation recognizing a very special person, Karen Harrington. I'd like to invite before we do that, because I was just a little hasty. Laura, if you wouldn't mind calling Roll, please. Councilmember Eklund. Present. Councilmember Jacobs. Present. Councilmember Milberg. Present. Mayor Pertem Farrak, Present and Mayor O'Connor. Present. And now we get to do it for real. So if City Council would like to join me up front, please. Welcome, Karen. Thank you for having us. Thank you. We're here to recognize a very, very special person, Karen Harrington, for her 21 years of service to the City of Nevada. Karen Harrington has worked for the City of Nevada Community Development Department since May 10th, 2004, when she was hired as a development permit supervisor. Position she held throughout her 21-year turn. Tenure, I apologize. And whereas Karen managed the city's permit center and the community development department and City Hall's front desk. Support the processing of over 50,000 building permits. Yeah. Those aren't easy. You guys know. Manage her team through the one-stop shop, remote permitting, in parentheses, COVID, which is something for everybody, and permit connections errors, and across five different department directors and seven chief building officials. And whereas Karen enjoyed being at the forefront of the community development department, never having a boring day at the office, always ready to help and resolve resolve among her team, colleagues, contractors, real estate agents, developers, and citizens, and over her 21 years, always acting with the utmost professionalism, a strong work ethic, and a passion for public service. And whereas Karen brought forth an impeccable, highly organized, well documented, and heartfelt approach to her team, fostering a perpetually active learning environment, supporting mentorship and training. And whereas Karen exercised a leadership style grounded in honesty, compassion, and genuine care. She fostered open supportive communication, even if it meant schedule scheduling you into her famous five-star notebook when she wasn't immediately available. And whereas Karen has been happily married to her supportive and loving husband Tom for 37 years, and the proud mother of two adventurous sons, Ross, age 29 and Austin, age 34, all of which are excited for her next chapter and spending a lot more time with her. Now, therefore, be it resolved that the City Council of the City of Novato, on behalf of city staff and our residents, wish Karen the very best, and a great big thank you for her excellent service to the City of Novato. Thank you, Karen, and congratulations. Karen, I I know my colleagues would like to share a few words with you as well, so I'm just going to pass the microphone over to Councilmember Eklund to start. Thank you very much, uh, Mayor O'Connor. Um, but most people probably don't know. Is that I've known this lady a lot longer than any else in this room. We used to carpool to San Francisco in a van together. For how many years? 10, 20, something like that. And um, she was one of the best writers with me, I tell you. Karen, I've got to really miss you a lot. And um I valued every single moment that we spent in that van together.
openpublica.com