Public Meetings - Novato, California

The Novato City Council met on August 27, 2024, at 6:00 PM. The meeting included a ceremonial proclamation for the late Kathy Nickel, approval of a consent calendar, public hearings on two large mixed-use housing projects under AB 2011, and introduction of an ordinance updating the municipal code to comply with state housing laws. The council approved the Fourth & Grant project (209 units) with conditions, continued the First & Grant project (170 units) to a later date due to environmental concerns, and adopted the code amendments. Consent Calendar - G.1: Waived reading of ordinances by title only. - G.2: Approved the City Council meeting minutes of July 9, 2024. - G.3: Authorized an amendment to a consultant service agreement with Underwood and Rosenblum Inc. for $341,557.15 (total contract $776,695.15) for environmental clearance and PS&E. - G.4: Designated Mayor Mark Milberg as voting representative for the 2024 League of California Cities Annual Conference. - G.5: Adopted a resolution adding the City of Novato Annex to the 2023 Marin County Multijurisdictional Local Hazard Mitigation Plan. - G.6: Received and filed the Investment Report for FY 2023/24 Quarter 4. - G.7: Authorized an amendment to the Professional Services Agreement with Krisch & Company to extend through June 30, 2025. - G.8: Accepted completion of the Center Road Sidewalk Gap Closure project and authorized the Notice of Completion. - G.9: Adopted a resolution incorporating a Workplace Violence Prevention Plan into the City's Illness & Injury Prevention Policy. - G.10: Adopted a resolution approving the City's response to the Marin County Civil Grand Jury Report on Sea Level Rise. Public Comments & Testimony - Hamilton Theater Restoration: Several residents (Laura Van Galen, Tom Teich, Mary Ann Pipe, Lena Kazdan) spoke in favor of restoring the historic Hamilton Theater as a performing arts center. They requested the city open a leasing agreement with the Hamilton Arts Foundation, citing the building's historical significance and community need. - AB 413 Daylighting: Amy Harsavonicett and Leslie Higgins urged the council to implement California's Daylighting Law (AB 413) immediately, painting curbs 20 feet from crosswalks to improve pedestrian and cyclist safety, especially near schools. - Property Tax Flyers: Bernie Myers criticized a city mailer that he said misleadingly implied Novato receives only 7% of property taxes, arguing that when combined with fire district and other shares, Novato is near the top among Marin cities. - Public Hearing on 1st & Grant and 4th & Grant Projects: Over 20 speakers provided comments. Many local residents, business owners (Jeannie Jarnot, Stephanie Kohler, Barbara Slack, Fran Roberts, Mia Pericordi, Julie Jacobson, etc.) and the Novato Chamber of Commerce expressed strong opposition due to excessive height (6 stories), insufficient parking (24 and 42 spaces respectively), lack of family-sized units, and negative impacts on downtown charm, traffic, and emergency access. Several urged AMG to reduce density and provide more parking. Supporters, including John Medina (union representative) and Dylan Casey (California Housing Defense Fund), argued the projects provide necessary workforce housing, union jobs, and help meet state housing goals. - No public comments were received for the municipal code amendments (Item I.2). Discussion Items - 1st & Grant and 4th & Grant Projects (AB 2011 Objective Design Review): Staff presented both projects. The 1st & Grant site at 1107 Grant Avenue (0.98 acres) would have 170 studio/one-bedroom apartments, 8,010 sq ft retail, and 24 parking spaces. The 4th & Grant site at 1316-1320 Grant Avenue (1.07 acres) would have 209 apartments, 5,335 sq ft retail, and 42 parking spaces. Both are proposed at 78 feet (6 stories). Combined, they would provide 38 very low-income units (50% AMI), 38 low-income units (60% AMI), and 279 units at 80% AMI, with a 55-year affordability term. The projects are 100% affordable and located within a half-mile of the SMART station, thus qualifying for unlimited density and parking waivers under AB 2011 and density bonus law. Staff recommended approval but with conditions including reducing building height to 68 feet (based on staff's interpretation that the base height is 35 feet plus a 33-foot density bonus, not the 45 feet claimed by the applicant). Staff also identified a potential soil contamination issue at the 1st & Grant site (former leaking underground tank) requiring further documentation. - Council Discussion: Councilmembers expressed frustration with state laws limiting local control. They debated the height interpretation, with a majority (Mayor Milberg, Mayor Pro Tem O'Connor, Councilmembers Farac and Wernick) supporting staff's 68-foot limit. Concerns included parking impact on neighborhoods, lack of two/three-bedroom units for families, fire district ladder truck limitations, construction disruption, and the need for a construction management plan. Councilmember Farac asked about parking allocation (first-come, first-served) and rental rates ($1,526 to $3,600/month depending on AMI). Councilmember O'Connor raised the environmental issue at 1st & Grant, preferring resolution before approval. The developer AMG indicated willingness to negotiate on height and parking and is exploring off-site parking options. - Municipal Code Amendments (Item I.2): Staff presented an ordinance updating Chapter V (Development Standards) and Chapter XIX (Zoning) to implement Housing Element programs. Changes include increasing the rental vacancy rate for condominium conversions from 4.5% to 5%, adding tenant right-to-purchase, permitting low barrier navigation centers (LBNCs) as a conditional use in certain zones, permitting supportive housing as a permitted use in multiple zones, updating farmworker housing definitions to comply with state law, and adding single-room occupancy (SRO) facility regulations (units 150-400 sq ft, shared kitchens/bathrooms if not in-unit, on-site manager for 10+ units). The amendments are exempt from further CEQA review. Councilmember Wernick asked about the likelihood of agricultural worker housing in open space zones; staff noted most such land is publicly owned. No public comments were received. Key Outcomes - Fourth & Grant Project: Approved 4-0-1 (Councilmember Eklund absent) with the resolution including conditions: building height reduced to 68 feet, compliance with phase one environmental requirements, and other minor objective standard conditions. The motion was made by Councilmember Farac and seconded by Councilmember Wernick. - First & Grant Project: Continued to the September 24, 2024 city council meeting to allow time for the developer to provide evidence that the site has been remediated to residential standards. The continuance was approved 4-0-1. - Municipal Code Amendments: Introduced and approved 4-0-1 via a motion by Councilmember Wernick, seconded by Councilmember O'Connor. The ordinance will be brought back for second reading at a future meeting. - Consent Calendar: Approved 4-0-1. - Proclamation: A proclamation honoring the late Kathy Nickel was presented to her family. - Adjournment: The mayor adjourned the meeting in memory of his mother.

The Novato Planning Commission met on August 12, 2024, at 7:00 PM at City Hall. Commissioners present: Vice Chair Crockett, Dawson, Engdahl, Heath, Tiernan; Chair Havel; Derby absent. The commission approved a consent agenda that continued item F2 (ADU ordinance amendments) to September 9, 2024, after receiving a letter from the California Housing Defense Fund raising concerns. The commission then held a public hearing on five resolutions amending the municipal code to align with state housing law and the city's Housing Element, and unanimously recommended approval to the City Council. Agenda Approval - The commission voted unanimously (6-0) to approve the agenda as amended to continue item F2 (Accessory Dwelling Unit amendments) to September 9, 2024, to allow staff to address comments from the California Housing Defense Fund. Public Comments & Testimony - No members of the public spoke on any agenda item. Discussion Items - F1: Zoning Code Amendments (Chapters V and XIX) - Staff presented five resolutions to amend the municipal code, as required by the city's Housing Element (adopted May 7, 2024). The amendments address: - Affordable Housing and Density Bonus: Striking a non-compliant section (NMC 19.24.020(b)) to conform with state density bonus law. - Low Barrier Navigation Centers (LBNCs): Adding a new land use category (by-right) in NC, downtown core, mixed-use, and community facilities zones, with ministerial zoning clearance. - Supportive Housing: Allowing by-right in R-10, R-20, NC, downtown core, mixed-use, and community facilities zones; units must be 100% affordable. - Farmworker Housing: Permitting agricultural worker housing for six or fewer employees as a permitted use in agricultural and residential zones; larger centers (up to 36 beds or 12 units) allowed in A, OS, and conservation zones. - Single-Room Occupancy (SRO) Facilities: Permitted in R-10, R-20, and mixed-use zones; standards for unit sizes, shared amenities, and on-site management (live-in manager required for 10+ units). - Condominium Conversions: Increasing the minimum rental vacancy rate from 4.5% to 5% (current rate is 2% per 2021 ABAG data); adding tenant right-to-purchase provisions. - Commissioners asked clarifying questions about project applicability, state law compliance, operational details, and the lack of prior condominium conversions. Staff noted that the amendments are ministerial and subject to objective design standards. - F2: ADU Ordinance Amendments (Continued) - The item was continued without public comment; no discussion occurred. Key Outcomes - Unanimous Recommendation (6-0): The commission voted to recommend that the City Council approve all five resolutions, including a finding that the amendments are exempt from additional CEQA review under CEQA Guidelines Sections 15162 and 15061(b)(3). - Continuance: Item F2 was continued to the September 9, 2024, meeting to allow staff to review the comment letter from the California Housing Defense Fund and work with the city attorney.

The Novato City Council met on July 23, 2024, to consider placing a 0.75% local sales tax increase (three‑quarter cent) on the November 5, 2024 general municipal election ballot. City Manager Amy Cunningham presented a detailed report on the city’s ongoing fiscal challenges, including chronic budget deficits, low property tax revenue, deferred infrastructure needs, and staffing shortages. She recommended that the council adopt a resolution to let voters decide on the measure. Discussion Items - Fiscal Overview and Need for New Revenue: City Manager Amy Cunningham presented historical context, noting that the city has faced systemic operating deficits for years, with a projected $4.3 million deficit in FY24/25. She highlighted the Marin County Grand Jury report titled “Novato’s Chronic Fiscal Deficits: A Call to Action,” which concluded that the council has not adequately pursued ongoing revenue sources and recommended increasing the sales tax. The city’s property tax share is only 7 cents of every dollar, the lowest in Marin County. The city’s current sales tax rate is 8.5%, but only 1.25% stays with Novato. Several neighboring cities are already at the state cap of 9.25%, while Novato has 0.75% cap space available. - Infrastructure and Staffing: Over $51 million in deferred maintenance is identified for streets, roads ($38M), and parks ($13M). Staffing levels are at a 20‑year low (198 FTE), with nearly 98% turnover over the last decade. A consultant study indicated a need for an additional 19.5 positions to meet current service demands. - Community Outreach and Survey: A May 2024 poll of likely voters showed 80% say life is good in Novato, 66% are satisfied with city services, and approximately 60% would support a local sales tax measure to preserve services. The city conducted extensive outreach including mailers, workshops, and presentations. - Proposed Ballot Language: The measure would establish a 0.75% transactions and use tax for general government use, generating an estimated $10.3 million annually, until repealed by voters. It includes independent oversight by the Finance Advisory Commission, annual audits, and a requirement that all funds stay in Novato. Sales tax would not apply to groceries, medications, rent, or utilities. - Staff Recommendation: Cunningham urged the council to adopt the resolution approving the ordinance and place the measure on the November 5, 2024 ballot. She emphasized that the sales tax is part of a larger needed fiscal sustainability plan. Key Outcomes - The council heard the staff presentation and the recommendation to adopt the resolution. No vote or further council discussion is recorded in the provided transcript; the meeting may have continued beyond the presentation. According to the agenda, the item was for consideration, and the meeting occurred as scheduled. The next steps described by staff include future development of a Fiscal Sustainability Plan detailing spending priorities, accountability provisions, and plans to address infrastructure backlogs and reserve replenishment.

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.

The Novato City Council received a presentation on the status of the city's roadway pavement condition, including a detailed analysis of the Pavement Condition Index (PCI), funding scenarios, and the financial implications of maintaining or improving the network. The update was provided by Public Works Director Nick Nguyen and consultant Margot Yapp of NCE Consulting, who highlighted the asset value, current condition, and future needs of the city's 152.3 centerline miles (327 lane miles) of roads, valued at approximately $277 million. Discussion Items - Current Pavement Condition: The city's overall PCI is 66 (on a 0–100 scale), with 40% of roads in good condition, 49.7% fair, 10.7% poor, and 1.4% failed. The statewide average PCI is 65, placing Novato in the middle among comparable Marin County cities. - Historical Trend: Novato's PCI has declined from 72 about 13 years ago to 66 today, with a slow, gentle deterioration now approaching a critical threshold where pavement failure accelerates and repair costs multiply. - Funding Scenarios: Four scenarios were presented based on annual funding levels: - $3 million/year (current): PCI projected to drop to 61 by 2027; deferred maintenance (unfunded backlog) to rise from $47.1 million to $61 million. - $8 million/year: Stabilizes PCI at 66; deferred maintenance remains around $42 million. - $11 million/year: Improves PCI to 72, reducing deferred maintenance to about $20 million. - $14 million/year (best management practice): Raises PCI to 76, cutting deferred maintenance to $3.4 million. - Preventive Maintenance Emphasis: Consultant Margot Yapp stressed the importance of preserving good roads with lower-cost treatments (e.g., microsurfacing at $10.50/square yard) rather than allowing roads to deteriorate to costly reconstruction ($120/square yard), drawing an analogy to regular car maintenance. - Funding Sources: Potential funding streams include federal (RSTP, IIJA), state (gas tax, CalRecycle grants), and local sources (general funds, parcel taxes, sales tax measures, impact fees). Key Outcomes - The City Council received the report as informational; no formal action or vote was taken. Staff and the consultant were available for questions, and the data will inform future budget and policy decisions regarding pavement management.

The Novato City Council met on Tuesday, July 9, 2024, at 6:00 PM in the City Council Chambers. The meeting included presentations on the city's pavement condition, a five-year general fund forecast, and a community opinion survey, alongside public hearings on landscape assessment districts and a discussion on e-bike safety. The council also received a proclamation for Parks and Recreation Month and heard public comments on a potential sales tax measure. Consent Calendar - The council approved the consent calendar with the exception of item G.9 (e-bike grand jury response), which was pulled for separate discussion. Items approved included routine approvals, minutes, ordinance adoption for mobilehome rent control, notices of completion, contract amendments, and resolutions related to street sweeping, engineering services, and the grand jury response (with modifications). Public Comments & Testimony - Mary Stump (Coalition of Sensible Taxpayers) urged the council to consider a half-cent sales tax increase with a 10-year sunset, rather than a three-quarter cent permanent tax, and provided a copy of COST's tax criteria. - Bernard Myers (former mayor) proposed guardrails for any sales tax increase, including a 4-to-1 vote requirement to override the finance committee and salary freezes for city manager and finance director if audits are delayed. He also questioned whether funds taken from the Hamilton Trust Fund and other accounts had been replaced. - Paul Shaw (Novato Police Officers Association) expressed concern about the city's financial projections and urged the council to take swift action to raise revenue to avoid cuts to services, including police response. Discussion Items - Pavement Condition Report (J.1): Margot Yap of NCE Consulting presented the city's pavement condition index (PCI) of 66, a slight decline from 72 in 2013. The city faces $38 million in deferred maintenance. Current funding of $3 million per year will lead to a PCI of 61 in five years and a $61 million backlog. To stabilize at 66, $8 million per year is needed; to improve to 72, $11 million per year. The council discussed the need for increased investment, federal grant opportunities, and the impact of declining gas tax revenues. Councilmember Eklund suggested exploring road diets to reduce maintenance costs. - Five-Year General Fund Forecast (J.2): Finance Director Carla Carvalho-DeGraff and consultant Andy Heath presented the forecast. The general fund faces systemic deficits of $3.4–$3.8 million starting in FY 2025-26, with reserves projected to be exhausted by FY 2026-27. Key drivers include rising CalPERS costs (expected to increase by $2.2 million over five years) and the need to fill current vacancies. A potential 3/4-cent sales tax increase could generate $10.5 million annually, turning deficits into surpluses of $7.2–$8.6 million. The council discussed the complexity of the city's budget structure (85 departments, 1,500 line items) and the need for service delivery efficiencies. - Community Opinion Survey (J.3): Brian Godby of Godbe Research presented results of a survey of 410 likely November 2024 voters. Initial support for a 3/4-cent general sales tax was 57.4%, increasing to 65.1% after information about spending priorities and accountability provisions, then dropping to 59% after negative arguments. The top priority for spending was fixing potholes and maintaining streets (78%). The survey found that a half-cent tax or an 8-year sunset would slightly increase support, but the 3/4-cent, until-repealed-by-voters option was still viable. The council discussed next steps, including bringing a resolution to the July 23 meeting to place the measure on the November ballot. - E-Bike Grand Jury Response (G.9): Councilmember Eklund pulled the item, expressing concerns about the tone of the response to the grand jury and the community letter. Councilmembers and Chief Naugle discussed the need for a countywide approach, but also the importance of local action. The council directed staff to modify the response to soften language (e.g., changing “not warranted” to “not practical at this time”) and to revise the community letter for clarity, while retaining technical details. The council adopted the resolution with the understanding that the exhibit would be modified per direction. Key Outcomes - Landscape Assessment Districts (I.1–I.4): All four resolutions were adopted unanimously (5-0), with Councilmember Wernick recused on I.1 (San Marin) as a resident. The assessments for FY 2024/25 were levied as follows: San Marin ($48.12/unit, +$1.11), San Pablo ($910.06/unit, +$23.92), Wildwood Glen ($267.44/unit, +$6.18), and Hillside Park Unit 4 ($421.48/unit, +$9.74). - E-Bike Resolution (G.9): The council adopted the resolution (5-0) directing staff to modify the grand jury response and the community letter as discussed, with the response due to the grand jury by July 25, 2024. - Next Steps: The council will consider a resolution to place a 3/4-cent sales tax measure on the November ballot at the July 23, 2024 meeting. Staff will also bring back an update on e-bike safety efforts by October 26, 2024.

The Planning Commission met on July 8, 2024, to consider two consent items and receive a presentation on the city's fiscal sustainability. The consent calendar included a revised resolution for a drive-through use permit at Downtown Novato Center and approval of the June 10, 2024 meeting minutes. The main discussion was a presentation by City Manager Amy Cunningham and Assistant City Manager Jessica Deakyne on the city's financial outlook, revenue challenges, and a potential November 2024 ballot measure to increase the sales tax by 0.75%. Consent Calendar - D.1 Downtown Novato Center Pad Building and Drive-Through Use Permit (P2023-090): The Commission considered and adopted a revised resolution approving a use permit for a drive-through associated with a new pad building at Grant Avenue at 7th Street. The resolution had been revised per direction from a prior meeting. The applicant was reportedly comfortable with the new language. Commissioner Dawson requested a separate vote. The motion passed 4-1-1 (Commissioner Dawson voted no, Chair Havel abstained due to absence at the prior meeting, Commissioner Tiernan absent). - D.2 Approval of Meeting Minutes of June 10, 2024: The Commission unanimously approved the minutes from the June 10, 2024 meeting. Motion passed 6-0-1 (Commissioner Tiernan absent). Public Comments & Testimony - No members of the public spoke during the public comment period, which was open for items not on the agenda. Discussion Items - Fiscal Sustainability Presentation (H.1): City Manager Amy Cunningham and Assistant City Manager Jessica Deakyne presented an overview of Novato's financial situation. Key points included: - The city's general fund forecast shows projected operating deficits of $3.3 million to $4 million annually over the next five years, with reserves depleted by fiscal year 2026-27 if no action is taken. - Novato's revenue structure is constrained: it receives only 7% of property tax dollars and 1.25% of the 8.5% sales tax rate. Other Marin cities charge up to 9.25% sales tax. - The city has reduced staffing from 234 employees in 2002-03 to 198 currently. Personnel costs account for 70% of the operating budget. - City Council is exploring a November 2024 ballot initiative to increase the local sales tax by 0.75% (three-quarters of a cent), which would generate approximately $10 million annually. Funds would be used for pothole repair, 911 response, wildfire risk reduction, and parks and recreation. - The tax would exempt groceries, medication, and professional services. An example was given: on a $200 purchase of clothing and household essentials, the additional tax would be $1.50. - Commissioners asked questions about property tax allocation, the impact of Prop 13, the potential for other revenue sources, and the timing of the measure. Several commissioners expressed support for the city's efforts to educate the public and noted the importance of maintaining services. Key Outcomes - The Commission approved the revised drive-through use permit resolution (4-1-1) and the June 10, 2024 meeting minutes (6-0-1). - No formal action was taken on the fiscal sustainability presentation; it was informational. - The next Planning Commission meeting is scheduled for August 12, 2024, where implementing ordinances for the housing element and an update to the accessory dwelling unit ordinance are expected.

The Novato City Council held a regular meeting on June 25, 2024, at 6:00 PM. Key actions included adopting the FY 2024/25 budget (including a $200,000 parking study), introducing an updated mobilehome rent control ordinance, and ratifying an appointment extension. The council also heard public comments on the city's fiscal sustainability. Consent Calendar - Approved routine items, including adoption of updated police department job descriptions, salary schedule, acceptance of Hamilton Village subdivision improvements, GANN appropriations limit ($134,866,120), reciprocal use agreements with Novato Unified School District (NUSD), recreation service contract with North Bay Basketball Academy (up to $180,000 per year), and resolutions for landscape assessment districts (A-81, A-03, C-91, A-91) with public hearings set for July 9, 2024. - Councilmember Wernick recused from item G.9 (San Marin Landscape Assessment District A-81). The consent calendar passed 4-0-1 (Councilmember Farac absent). Public Comments & Testimony - General Public Comment: - Paul Shaw (President, Novato Police Officers Association) and Alex Mueller (Board Member, NPOA) expressed deep concern over the city's chronic fiscal deficits and lack of revenue. Both urged the council to bring the sales tax to a full cent to adequately resolve the deficit and maintain services. - Bernie Myers (former councilmember) supported a sales tax increase but advocated for guardrails, including a finite duration, supermajority approval for loans/expenditures, timely audits, and sunset provisions. He argued the sales tax is regressive. - Fred Reese complained about illegal fireworks on the 4th of July at Hill Recreation Field, urging proactive police enforcement. - Public Hearing on Mobilehome Rent Control (I.1): - Stephen Rosenfeld (Secretary, Los Robles Mobile Home Park HOA) urged adoption of the revised ordinance, thanking staff for collaborative process. - John Hansen (President, MVMCC PAC) commended the work but raised concern over defining "fair and reasonable profit" in future disputes. - Katie Cartwright (President, Los Robles Mobile Home Park HOA) echoed support and appreciation for the inclusive process. - Budget Adoption (J.1): - Carol Joy Harris thanked the council for including urgently needed maintenance at Marin Valley Mobile Country Club (MVMCC) in the budget and for pursuing exclusive negotiating agreement. - John Hansen (MVMCC) asked the council to consider reducing the debt service coverage ratio (DSCR) from 2.0 to 1.5 for the park's loan (remaining $1.4 million), which could free up $300,000 and potentially avoid rent increases. He noted 16% of residents are acutely low-income. Discussion Items - Mobilehome Rent Control Ordinance (I.1): City Attorney Gary Bell presented amendments requested at the May 7 meeting: 1) clarifying exemption of leases under state law, and 2) leaving fees for reconsideration petitions as cost-neutral (petitioner pays). Councilmember Eklund asked about renting rooms for financial hardship and 24-hour home care; Bell noted separate rules apply and will review. Councilmember Wernick asked about capital improvement petition fees; Bell said fees could be adopted later by resolution. Council expressed strong approval for the collaborative process, with Mayor Pro Tem O'Connor noting it was "the most synergistic approach" he had seen. The ordinance was introduced on first reading (4-0). - Budget Adoption (J.1): City Manager Amy Cunningham and Finance Director Carla Carvalho-Degraff presented the FY 2024/25 budget. Highlights: - General fund revenues: $50.3 million; expenses: $54.3 million (excluding parking study), resulting in a $4.05 million deficit. - General fund reserves projected at $4.7 million by end of FY 2024/25, down from $13.7 million. - Staffing: 198 FTEs (down 10.5 from FY 2019/20); salaries/benefits 69% of expenses. - One-time funds exhausted; deficits continue for fifth year. - Capital Improvement Program (CIP): $4.1 million for ongoing projects, $2 million for three new projects (including electrical switch, ADA clubhouse, clubhouse roof at MVMCC). - Parking study: $200,000 proposed; council debated inclusion. Councilmember Eklund preferred to wait for year-end surplus, but the majority supported adding it to the general fund budget to signal priority. Motions passed 4-0 for both City of Novato budget and Novato Public Finance Authority budget. - Appointment Extension of Dave Dammuller (J.2): Ratified an extension of retired annuitant Dave Dammuller as Special Advisor to the Deputy Public Works Director through December 31, 2024, at $78.11/hour with a 960-hour annual cap. Passed 4-0. Key Outcomes - Adopted FY 2024/25 operating and capital budgets for the City of Novato and the Novato Public Finance Authority, including $200,000 for a downtown parking study (4-0 votes). - Introduced an ordinance amending mobilehome rent control (Chapter XX of Novato Municipal Code) on first reading (4-0). Second reading and possible adoption will occur at a subsequent meeting. - Ratified the appointment extension of Dave Dammuller as a retired annuitant (4-0). - Set public hearings for July 9, 2024, to: (1) confirm landscape assessment levies for four districts, (2) receive survey results on a potential sales tax measure, and (3) review the five-year general fund forecast and pavement condition index. - City Manager advised that the emergency reserve will be insufficient to maintain services into FY 2026/27 without new revenue, and discussions on a sales tax measure will begin July 9.

The Novato City Council held a public hearing on the Fiscal Year 2024/25 Preliminary Operating and Capital Improvement Budget and a separate public hearing on the 3rd Street & Grant Avenue Mixed-Use project proposed under AB 2011. The council also approved a consent calendar, heard public comments, and reluctantly approved the mixed-use project despite widespread community opposition. Proclamations & Presentations - Pride Month: Proclamation accepted by Grace Constantino, faculty sponsor for GSA at San Jose Middle School, who spoke on the importance of representation and mental health for LGBTQ+ youth. - Alzheimer's and Brain Awareness Month: Proclamation accepted by Lauren Vriedlin Long from Age and Disability Friendly Novato, who highlighted the prevalence of Alzheimer's and the need for brain health. Consent Calendar - Approved unanimously (5-0): routine items including approval of meeting minutes, appointment of Allison Skinner and Keith Buchignani to the Multicultural Advisory Commission, a contract with PlaceWorks for the Safety Element Update ($182,388), a janitorial services contract amendment (up to $652,000), and other administrative actions. Public Comments & Testimony - Budget Hearing - Marin Valley Mobile Country Club (MVMCC) representatives (John Hansen, Jay Shelfer, Mary Curry, Carol Joy Harris, Serena Fisher) urged adoption of the MVMCC budget, citing the need for capital projects to protect health and safety of low-income senior residents. They noted a $600,000 DSCR reserve requirement limiting maintenance. - No other public speakers on the budget. Public Comments & Testimony - 3rd Street & Grant Avenue Mixed-Use Project - Downtown Novato Business Association (Stephanie Kohler) expressed support for downtown housing but opposed the lack of parking, stating businesses depend on available parking and the project would harm the 19% of the city's tax base from downtown. - Resident and business owners (including Robert Sunberg, Harvey McKean, Carlos Small, Lucy Hollingsworth, Frank Dular, Lucy Hollingsworth, Robin Strom, Jeannie Jarnot, Barbara Slack, Peter Tarantino, Chris Dunham, Susan Palm, Larissa Cooley, Janine Perra, Michael Atkinson, Steve Jordan, Zachary Griggie) overwhelmingly opposed the project. Key concerns: no parking (only 0 spaces for 56 units), height (5 stories, dwarfing downtown), lack of community engagement, small unit sizes (411-450 sq ft), potential contamination from dry cleaner, and negative impact on local businesses. Several speakers supported affordable housing but argued the project was out of scale and would worsen parking. - Lucy Hollingsworth (housing attorney) spoke in favor, noting overcrowding due to lack of affordable housing and the project’s potential to alleviate it. - Dylan Casey (California Housing Defense Fund) argued the project meets state law, provides needed low-income housing, and relies on transit proximity (SMART station). He noted this is one of the first AB 2011 projects in the state. - Harvey McKean (Carpenters Union) cautioned about labor compliance, mentioning a recent DIR decision against AMG's typical contractor for failing to pay prevailing wage. Discussion Items - Budget FY 2024/25: Finance Director Carla Carvalho-Degraff and Jennifer Maldonado presented. Revenues projected at $50.3 million, expenses at $54.3 million, deficit of $4.05 million. Staff recommended using reserves, leaving the reserve at 9% (below 15% policy). Council discussed fund balances, CalPERS unfunded liability, long-term maintenance deficits, and the need for a parking study. Councilmember Eklund raised concerns about the city's financial trajectory. - Parking Study Amendment: Councilmember O'Connor proposed adding $250,000 for a downtown parking study and strategy. Staff suggested refining the cost; council agreed to include $250,000 in the budget and bring back a refined scope by June 25. - 3rd Street & Grant Avenue Mixed-Use Project: City staff presented the 56-unit, 100% affordable (55 deed-restricted) project at 1212-1214 Grant Avenue. The project uses AB 2011 (ministerial permitting) and state density bonus laws for unlimited density, height increase (5 stories, 64 ft 4 in), five concessions (e.g., FAR, open space, stepback), and a full parking waiver. No on-site parking. Council questions focused on parking impacts, contamination, modular construction and prevailing wage, and lack of community outreach. Council members expressed frustration with state preemption but acknowledged legal constraints. Key Outcomes - Budget: Council directed staff to include $250,000 for a parking study and strategy plan, with refined cost to be presented at the June 25 meeting. The budget will be adopted then. - 3rd Street & Grant Avenue Mixed-Use Project: Approved reluctantly (5-0, with all members voicing opposition but citing state law). The motion passed with a "reluctant aye" from Councilmember Warnick and "under duress" from Mayor Pro Tem O'Connor. The resolution approves the project, density bonus, concessions, parking waiver, and tentative map. Council members urged AMG to work with the community to modify the project (e.g., height, parking). AMG representatives said they would consider feedback. - Consent Calendar: Approved 5-0. - Meeting Adjourned at approximately 10:00 p.m. with no further reports.