Novato City Council Meeting – September 22, 2026

The Novato City Council met on Tuesday, September 22, 2026, at 6:00 PM in the Council Chambers at 901 Sherman Avenue, Novato, with virtual participation. Mayor Rachel Farac presided. The council approved agenda changes, adopted a large consent calendar (minus a pulled streetlight contract), denied Argonaut Constructors’ bid protest and awarded the Novato Boulevard Improvements contract to Team Ghilotti, adopted the Economic Development Strategic Plan, received the Climate Action Plan 2030 progress report, and voted 4-1 to discontinue work on pre-incorporation subdivision right-of-way and setback changes.

Ceremonial Matters and Agenda Actions

• City Attorney Gary Bell reported there was no reportable action from closed session.
• The council presented a proclamation honoring Make It Home Bay Area, a nonprofit furniture bank founded in 2020 that has served over 8,300 people and kept more than 8.5 million pounds of furniture out of landfills.
• The council voted 5-0 to approve the final agenda after moving City Council/City Manager reports to the end of the meeting and pulling Consent Item G.8 (wooden streetlight pole replacement contract) at staff’s request; the item was to return at a later date.

Consent Calendar

The consent calendar was approved unanimously in one 5-0 vote. Approved items included:

• Waiver of full ordinance readings and approval of August 18, 2026 special meeting minutes.
• Ordinance 1734 replacing flood damage prevention requirements, including a one-foot freeboard requirement for NFIP Community Rating System compliance.
• Ordinance 1735 implementing General Plan 2035 Land Use Categories and 6th Cycle Housing Element programs, including permit processing procedures for certain housing projects.
• Updates to the city investment policy and a separate investment policy for the Section 115 pension/OPEB trust.
• 2027 City Council meeting schedule, with meetings generally on the second and fourth Tuesdays.
• Mural design by Lynsey Vera for Hamilton Amphitheater Park Playground, which will become Mark J. Milberg Community Park.
• Support for the League of California Cities resolution on final local authority over housing and land use decisions, with Mayor Farac as the voting delegate.
• Authorization to apply for up to $1,200,000 from the Extreme Heat and Community Resilience Program grant.
• 2026-2027 Utility Box Art Program with the theme “Where Stories Grow,” seven proposed locations, and $7,000 from the Public Art Fund.
• Support for the Veterans and Affordable Housing Bond Act of 2026 (Proposition 1), authorizing $11.25 billion in state general obligation bonds.
• Introduction of an ordinance updating the Conflict-of-Interest Code employee position titles.

Public Comments & Testimony

• Christina Mendez, CEO of the Novato Chamber of Commerce, thanked city staff, the Corp Yard, and the Novato Police Department for supporting chamber events including the Art and Wine Festival.
• During the bid protest hearing, Stephen Copeland, representing Argonaut Constructors, opposed the award. He argued Team Ghilotti’s bid was materially unbalanced, citing item 134 roadway removal at $26.50 per cubic yard versus $1–$12 in other bids and HMA line item 20 at $300 per cubic yard versus about one-third of that in other bids. He warned that change orders in overrun areas could expose the city to large cost risks.
• During the Economic Development Strategic Plan item, Denise Athis of the Novato Chamber voiced strong support, especially for zoning modernization. Robert Sundberg of the Downtown Novato Business Association supported the plan and sought more detail on the envisioned DNBA refresh. EDAC members Susan Mornick and Daniel Christensen urged adoption, with Mornick saying “perfection is the enemy of good.” Online commenter Sarah Turkley supported preserving Novato’s historic character and asked that data centers be prevented from entering Novato.
• During the Climate Action Plan item, Jeremy, a Reuse Alliance board member, thanked staff for highlighting the repair fair and invited the council to the October 10, 2026 Novato repair fair. Online commenter Bob Brown praised staff but said CAP implementation could not be a one-person job, urged stronger organizational commitment and cross-departmental priority, and referenced Petaluma as a model. He cited 19 of 161 CAP actions as worked on; staff described CAP 2030 as containing 54 greenhouse gas reduction measures.

Discussion Items

I.1 Bid Protest and Novato Boulevard Improvements Contract

Staff reported that bids were opened August 19, 2026, with Team Ghilotti the apparent low bidder. Argonaut submitted a timely protest on August 25, 2026. Staff, the City Attorney’s office, and outside construction managers reviewed Team Ghilotti’s bid and found it responsive, responsible, mathematically correct, and not unbalanced. Team Ghilotti confirmed its bid was valid. Staff also noted a factual correction: the bid advertisement date was July 21, 2026, not July 14, 2026. Councilmember Karkal recused because the project includes improvements at his employer, the Novato Sanitary District. The council voted 4-0 with Karkal recused to deny the protest, and 4-0 with Karkal recused to award the contract to Team Ghilotti in the amount of $16,824,358, repeal Resolution No. 2026-091, authorize the City Manager to execute the agreement, and approve a $7,500,000 FY 2026/27 Capital Improvement Program budget amendment.

J.1 Tourism Committee Annual Report and Budget

The council heard from Garrett Guerillo, chair of the Tourism Committee, and Christina Mendez. The report highlighted 52,000 hotel website referral clicks, up 5% over the prior year; about 60,000 unique website visitors; approximately 39,000 social media followers; Instagram growth of 20%; TikTok audience growth of 45%; and about 153,000 total engagements. Future plans included more influencer campaigns, short-form video, a return to trade shows, and continued focus on hotel referrals. Council discussion addressed declining print and Google-ad metrics, visitor center traffic, and hotel occupancy still below pre-pandemic levels due partly to new hotel supply. The council voted 5-0 to accept the FY 2025-26 Annual Tourism Committee Report and FY 2026-27 Tourism Budget.

J.2 Economic Development Strategic Plan

Staff and consultants from Good City Company and Strategic Economics presented a 10-year economic development roadmap. Engagement included a community workshop with about 80 attendees, a farmers market table with more than 80 conversations, 843 survey responses, nearly 1,500 written responses described as equivalent to 42 hours of public testimony, and 105 business survey responses. The plan has six goals, including making it easier to open businesses, revitalizing commercial corridors, supporting industrial areas such as Bel Marin Keys and Hamilton Field, strengthening downtown, facilitating housing as economic infrastructure, and leveraging city-owned and historic assets. Year-one actions include a commercial code modernization audit, a cross-departmental business team, regular broker engagement, employer outreach, and strengthened DNBA and Chamber partnerships. Councilmember Eklund asked whether adoption would approve the Appendix A zoning recommendations; the City Attorney clarified it would not, and future zoning or ordinance changes would return to the council. The council adopted the plan unanimously, 5-0.

J.3 Climate Action Plan 2030 Progress Report

Staff reported that Novato’s community-wide greenhouse gas emissions decreased 34% since 2005, equivalent to 22% below 1990 levels. Transportation and natural gas in buildings account for about 93% of total emissions, with passenger vehicles comprising most transportation emissions. CAP 2030 targets a 40% reduction below 1990 levels by 2030. Highlights included safe routes to school maps for all eight elementary schools and two middle schools, a repair fair, a compost giveaway, energy efficiency upgrades projected to save about $26,000 per year, and a Clean Energy Expo. Staff cited the expiration of the $7,500 federal EV tax credit and AB 130’s building code pause as headwinds. The council discussed capacity, EV charging infrastructure, and future budgeting. The transcript does not record a formal motion or roll-call vote before the council moved to the next item.

J.4 Pre-Incorporation Subdivision Right-of-Way and Setbacks

Public Works Director Chris Benigni presented options for homeowners in pre-incorporation neighborhoods such as Nave Gardens, built roughly between 1940 and 1960. Staff identified 17 similar subdivisions within a one-mile radius and said 40- to 60-foot rights-of-way were typical. Options were: vacating right-of-way, at an estimated total cost of about $7,000 per parcel including a $4,500 right-of-way vacation deposit and $2,500 lot line adjustment; grants of variance, which are rarely granted, require a $4,500 deposit, and take 16 to 120 days; and zoning ordinance amendments, which are city-initiated, have no application fee, and take more than 120 days. Staff and the City Attorney noted risks including utility conflicts, ADA and fire access concerns, non-conforming structures, property tax increases, neighborhood character changes, and equity impacts. Councilmember Eklund wanted a Nave Gardens community meeting, while other members cited complexity and competing citywide priorities. The council voted 4-1 to discontinue the work at this time, with Councilmember Eklund dissenting. Mayor Farac said she would inform the neighborhood of the outcome.

Key Outcomes

• Final agenda approved 5-0, with reports moved to the end and Item G.8 pulled.
• Consent calendar approved 5-0, excluding G.8.
• Argonaut bid protest denied and Novato Boulevard contract awarded to Team Ghilotti for $16,824,358, with a $7,500,000 budget amendment; Councilmember Karkal recused on both 4-0 votes.
• Tourism Committee report and FY 2026-27 tourism budget accepted 5-0.
• Economic Development Strategic Plan adopted 5-0.
• Climate Action Plan 2030 progress report was presented and discussed; no recorded vote appears in the transcript.
• Work on pre-incorporation subdivision right-of-way and setback solutions was discontinued 4-1, with Councilmember Eklund voting no.