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CITY COUNCIL MEETING

MINUTES

NOVATO CITY HALL COUNCIL CHAMBERS

901 SHERMAN AVENUE

October 9, 2018 6:00 P.M.

A. CONVENE, PLEDGE OF ALLEGIANCE, AND ROLL CALL

At approximately 6:13 p.m., the regular City Council meeting began.

COUNCIL PRESENT: Mayor Josh Fryday, Mayor Pro Tempore Pam Drew,Councilmember Denise Athas, Councilmember Pat Eklund, andCouncilmember Eric Lucan.

STAFF PRESENT: City Manager Regan Candelario, Assistant CityManager Michael Antwine, Assistant City Attorney Veronica Nebb, AssistantCity Manager Peggy Flynn, City Clerk Terrie Gillen, Assistant City ClerkTheresa Brown, Public Works Director Russ Thompson, CommunityDevelopment Director Bob Brown, Senior Planner Brent Walker, andManagement Analyst II Bryan Lopez

B. CLOSED SESSION ANNOUNCEMENT

Assistant City Attorney Nebb stated the City Council discussed the followingClosed Session item and gave staff direction. There was no further action.

1. Public Employee Performance Evaluations(California Government Code 54957.6)

Title: City Attorney and City Manager

C. CEREMONIAL MATTERS / PRESENTATIONS

1. Remembering the One Year Anniversary of the North Bay Fires andrecognizing the faith-based organizations for their services and supportduring that time.

2. Ceremonial Matter - Proclamation given to the Rotary Club in Novato inrecognition of October 24, 2018 as World Polio Day

Mayor Fryday recognized leaders of New Life Church, Quest Church, Novato United Methodist Church, Open Door Christian Church, and Living Word Chapel and presented them with Novato Proud certificates.

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The Mayor also recognized the Rotary Club of Novato, Rotary Club of Novato Sunrise, and Rotary Club of Ignacio for their support of World Polio Day.

D. APPROVAL OF THE FINAL AGENDA

COUNCIL ACTION: Upon motion by Mayor Pro Tempore Drew andseconded by Councilmember Lucan, the City Council voted 5-0 via rollcall to approve the Final Agenda.

AYES: DREW, LUCAN, ATHAS, EKLUND, FRYDAYNOES: NONE.ABSENT: NONE.

Motion carried.

E. REPORTS FROM THE CITY COUNCIL & CITY MANAGER

1. City Manager and City Council Reports

City Manager Report

City Manager Candelario highlighted upcoming possible benefits to thecity that would be discussed that evening: Consent Items G-9 ($70K grantfor the Police Department), G-7 (additional parking in the downtown), I-11(Residence Inn), the general business items, and the Closed Session Itemof an additional proposal for the RFP Commissary Site.

City Council Reports

• Mayor Pro Tem Drew provided a list of the meetings she attended thefollowing meetings: MCCMC (Mayors and City Councils of MarinCounty), MCL (Marin Conservation League), EDAC (EconomicDevelopment Advisory Commission), MAC (Multicultural AdvisoryCommission), Agenda Setting, Marin Coalition on Fires, DRC (DesignReview Commission), and North Bay Watershed.

• Councilmember Athas reported that she too also attended the MCCMCmeeting, Not in Our Town meeting, Marin Clean Energy retreat, metwith a constituent about cannabis, attended the Downtown NovatoBusiness Association meeting, DRC meeting, League of CaliforniaCities executive call, Marin Clean Energy Executive Committeemeeting, and Age Friendly meeting; and she announced a joint meetingbetween Age Friendly and Not In Our Town on November 8 at Hamiltonin regard to the mural project.

• Councilmember Lucan provided updates from the SMART Board,including SMART’s one year anniversary, the upcoming State of theSystem on October 17, and the possibility for SMART to connect withthe other California rail system.

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• Councilmember Eklund reported that she attended the MAC meeting,MCCMC meeting, ABAG Regional Housing Committee meeting, SafeRoutes to School Committee meeting, Aging Better Forum, CouncilPolicy Ad Hoc Committee meeting ; thanked Deputy Public WorksDirector Chris Blunk and staff for the work done at Leafwood;announced the Hamilton Commissary Workshop on October 13; andmentioned upcoming meetings she would be attending the followingupcoming meetings with the Metropolitan Transportation Commission,CASA, and Pension Ad Hoc.

• Mayor Fryday reported that he was proud that the City of Novato hostedthe very first North Bay Regional Climate Summit and that he and hisson traveled to Ecuador to learn more about environmental issues.

2. Proposed Agenda Item from Councilmember Pat Eklund

Place an agenda item on a City Council Meeting in October orNovember to freeze and/or reduce rents back to where they were onJanuary 1, 2018 at the Novato Arts Center in Hamilton until anevaluation is completed on what are appropriate rents for artists’studios in Novato.

Before Councilmember Eklund introduced this item, Mayor Frydayrecused himself and left the dais due to a possible conflict of interest, andMayor Pro Tempore Drew took over the meeting.

Councilmember Eklund explained why she wanted Council to discuss thisitem. Afterwards Council asked questions.

There were two comments from the public.

• Jill Culver mentioned that she was an artist at MarinMOCA andsupported the lowering of artists’ rents.

• Susan Bahary commented that she too was an artist and concurredwith what the prior speaker’s comment.

After public comments, the Council conversed a bit more on the item.

COUNCIL ACTION: Upon motion by Councilmember Eklund and seconded by Mayor Pro Tempore Drew, the City Council voted 3-1-1 via roll call to move the item to be discussed no later than March (2019).

AYES: EKLUND, DREW, ATHAS NOES: LUCAN ABSENT: NONE. RECUSED: FRYDAY

Motion carried.

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Mayor Fryday returned to the dais.

F. PUBLIC COMMENTS

There was only one public comment.

• Mary Morrison made several complaints about the Wyndover Apartments.

G. CONSENT CALENDAR

COUNCIL ACTION: Upon motion by Councilmember Eklund andseconded by Councilmember Athas, the City Council voted 5-0 via rollcall to approve the Consent Calendar, except agenda item G-5 (all, butCouncilmember Lucan voted “aye”). Furthermore, G-6 was pulled byCouncilmember Eklund

AYES: EKLUND, ATHAS, LUCAN, DREW, FRYDAYNOES: None.

Motion carried unanimously for all Consent Items, excluding G-5 and G-6.

1. Waive reading and authorize introductions and/or adoption ofordinances by title onlyThis is a standard procedural action to waive any readings ofordinance on this agenda (I-11 and I-12), so that the City Council doesnot have to read the ordinance in its entirety.

2. Approve the minutes of the September 11 City Council specialmeeting

3. Approve the minutes of the September 18 special City Councilmeeting

4. Adopt an ordinance of the City Council of the City of Novatorepealing and replacing section 2-4b of the municipal code,thereby amending the subpoena provisions of the Novatomunicipal code

The City Council adopted Ordinance No. 1642.

5. Adopt an ordinance of the City Council of the City of Novatoadding section 19.34.065 to chapter 19 (zoning) of the Novatomunicipal code in order to establish regulations for personalcultivation of cannabis indoors only and making relatedamendments to sections 19.08.030, 19.10.040, 19.12.030, and19.14.040 of the municipal code and finding that adoption thereofis exempt from the requirements of the California EnvironmentalQuality Act (CEQA), pursuant to CEQA guidelines sections15061(b)(3), 15301, 15304 and 15305

The City Council adopted Ordinance No. 1643.

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6. Approve holding a joint meeting between the Novato City Counciland the Novato Unified School District Board of Trustees onTuesday, November 13, 2018 at 6:00 p.m. in the City of NovatoCouncil Chambers, 901 Sherman Avenue

This item was pulled for further discussion.

7. Adopt a resolution approving the plans for additional downtownarea parking spaces, and finding that the project is exempt fromthe requirements of CEQA pursuant to section 15301 ExistingFacilities – Subsections 15301(c) and 15301(d)

The City Council adopted Resolution No. 2018-072.

8. Receive and file the 4th Quarter Investment Report ending June30, 2018

9. Adopt a resolution to 1) accept a $70,000 STEP (Selective TrafficEnforcement Program) grant from the California Office of TrafficSafety (OTS), 2) authorize the Police Department to utilize thegrant to continue its education and enforcement of traffic relatedlaws to reduce injury and fatal traffic collision, and 3) amendbudget resolution 2018-045 to revise appropriations andrevenues to recognize the grant funding from OTS

The City Council adopted Resolution No. 2018-073.

H. UNFINISHED AND OTHER BUSINESS

10. Consider and take action to vote and make appointments to theCity of Novato’s Planning Commission, Design ReviewCommission, and Novato Streetscape Committee

Staff provided the City Council the results of each Councilmember’s votes for the various boards. There was no public comment.

COUNCIL ACTION: Upon motion by Mayor Fryday and seconded by Councilmember Athas, the City Council voted 5-0 via roll call that Thomas Weldon would fill the vacated Planning Commission seat and Tim Roche would be the alternate on the Design Review Commission.

AYES: FRYDAY, ATHAS, EKLUND, LUCAN, DREW NOES: NONE.

Motion carried.

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COUNCIL ACTION: Upon motion by Councilmember Lucan and

seconded by Councilmember Athas, the City Council voted 5-0 via roll that for the Novato Streetscape Committee the regular was Charlotte Urban, for the Planning Commission the regulars were Dan Dawson, David Gabriel, and Reva Rao, and for the Design Review Commission the regulars were Michael Edridge and Patrick MacLeamy. AYES: LUCAN, ATHAS, EKLUND, DREW, FRYDAY NOES: NONE. Motion carried.

I. PUBLIC HEARING 11. Hold a public hearing on the Residence Inn Development Project; and consider and possibly take action to (1) adopt a resolution adopting a mitigated negative declaration and a mitigation monitoring and reporting program, (2) introduce an ordinance amending the zoning map to rezone the subject property from

Commercial Industrial to Planned District, (3) introduce an ordinance approving a master plan, precise development plan, and design review, and (4) adopt a resolution approving a vacation of a relinquishment of abutter’s rights for the development of the Residence Inn – Novato project, a 103-room hotel with an up to 8,000-square-foot commercial building at 7546 Redwood Blvd., APN 143-011-06

City Manager Candelario introduced the item and Senior Planner Brett

Walker presented the item. Councilmembers disclosed their meetings with the applicant and asked questions from both staff and the applicant.

There were comments from the public.

• Susan Stompe shared her concern with storm water runoff and drainage, as well as conditions of approval not mentioned.

• Reynold Martinez, president of the Atherton Ranch Home Owners Association, stated that there was broad support for the development in general, but was concerned about traffic at the intersection on Redwood and Ranch. He requested a signal light.

• Robert Doran, with ROIC and was a property owner next to the potential development, stated that he would soon be coming to an agreement with the development including a common drive aisle.

COUNCIL ACTION: Upon motion by Councilmember Lucan and seconded by Councilmember Athas to adopt a resolution adopting a mitigated negative declaration and a mitigation monitoring and reporting program.

After the motion, there was Council discussion with staff and the developer.

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COUNCIL ACTION: Upon motion by Councilmember Lucan and

seconded by Councilmember Athas, the City Council voted 4-1 via roll call to adopt a resolution adopting a mitigated negative declaration and a mitigation monitoring and reporting program.

AYES: LUCAN, ATHAS, DREW, FRYDAY NOES: EKLUND Motion carried. The City Council adopted Resolution No. 2018-074.

COUNCIL ACTION: Upon motion by Councilmember Lucan and

seconded by Councilmember Athas, the City Council voted 4-1 via roll call to introduce an ordinance amending the zoning map to rezone the subject property from Commercial Industrial to Planned District.

AYES: LUCAN, ATHAS, DREW, FRYDAY NOES: EKLUND Motion carried.

COUNCIL ACTION: Upon motion by Councilmember Athas and seconded by Councilmember Lucan, the City Council voted 4-1 via roll call to introduce an ordinance approving a master plan, precise development plan, and design review.

AYES: ATHAS, LUCAN, DREW, FRYDAY NOES: EKLUND Motion carried.

COUNCIL ACTION: Upon motion by Councilmember Lucan and seconded by Councilmember Athas, the City Council voted 4-1 via roll call to adopt a resolution approving a vacation of a relinquishment of abutter’s rights for the development of the Residence Inn – Novato Project, 103-room hotel with an up to a 8000 square foot commercial building at 7546 Redwood Boulevard.

AYES: LUCAN, ATHAS, DREW, FRYDAY NOES: EKLUND Motion carried. The City Council adopted Resolution No. 2018-075. Before the City Council took a recess, they agreed to move agenda item J-14 (Novato Theater) up on the agenda.

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COUNCIL ACTION: Upon motion by Councilmember Eklund and

seconded by Mayor Pro Tempore Drew, the City Council voted unanimously via roll call to move up agenda item J-14 (after Council takes a five minute break).

AYES: EKLUND, DREW, ATHAS, LUCAN, FRYDAY NOES: NONE. Motion carried.

J. GENERAL BUSINESS 14. Consideration of request by the Novato Theater for assistance relating to financing for the remaining improvements to the Novato Theater and provide direction to staff regarding financing assistance options including, but not limited to, grant, loan, financial guarantee, or other financing assistance options Councilmember Lucan recused himself from this item due to potential conflict of interest and left the dais. Both City Manager Candelario and Mr. Keith Greggor, President of the

Novato Theater, presented this item to the City Council. Thereafter, they and the Council conversed on the funding request.

There were several public comments.

• Lynn White commented her support for the theater, because it would invite people to the downtown and create revenue for the city.

• Kelley Kromkont stated that although she was not a resident, she supported the Novato Theater.

• Jeanne MacLeamy commented that this was the time to take action in moving forward with the Novato Theater due to the many interests of the community.

• James Well mentioned that this theater would build character to the town.

• Sylvia Barry urged Council to assist Novato Theater with the financing. • Nancy Weber asked the supporters of the Novato Theater to stand and

asked Council to support Mr. Greggor’s plan and the supporters. • Kay Jones commented on how communities change and asked that

the Council support the Novato Theater. • Mark Khalil provided his financial background experience to show that

he understood the Council’s hesitation, but that the rewards of having the Theater outweighed the risks.

• Carole Hanson mentioned that the community would support this theater.

• Larry Dito stated, that although he was no longer a Novato resident, he advocated for the continued progress of the Novato Theater.

• Steve Jordan asked the Council to have faith in the people and support the Theater.

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After public comments, Councilmember Athas made a motion. COUNCIL ACTION: Upon motion by Councilmember Athas and seconded by Mayor Fryday to consider the request by the Novato Theater for assistance relating to financing for the remaining improvements and possible direction regarding financing assistance options including, but not limited to, grant, loan, financial guarantee, or other financing assistance options and by the end of this year. After the motion, Council conversed further on this item, with two members

expressing concern that there was not enough information before them to make a decision.

COUNCIL ACTION: Upon a substitute motion by Councilmember Eklund and seconded by Mayor Pro Tempore Drew to direct staff to answer some of the questions that Council has and provide more information on what the proposal is and brings it back to Council. After Mayor Fryday asked Councilmember Eklund to clarify her motion, so she stated the following: COUNCIL ACTION: To direct staff to answer a series of questions and provide more information on what is being requested back to the Council and not to provide direction for them at the next meeting for the Council to take action. Councilmember Eklund stated that the Council needed to take more steps before committing itself to this project and explained at length why. She also asked many questions that she would like staff to answer. Council then conversed on the substitute motion that Councilmember Eklund proposed, including same Councilmember offering more information as to why she made that motion. Staff was asked if they could come back with the answers to the questions that the Councilmember made, and staff affirmed. There was discussion among Council and staff about possibly altering the motions, so that there could be a reconciliation between the two motions, but the motions were not similar. More discussion ensued among Council and staff on the substitute motion and the explanation behind it. Council voted on the substitute motion. COUNCIL ACTION: Upon a substitute motion by Councilmember Eklund and seconded by Mayor Pro Tempore Drew, the City Council voted 2-2- 1 via roll call to direct staff to answer a series of questions and provide more information on what is being requested back to the Council and not to provide direction for them at the next meeting for the Council to take action.

AYES: EKLUND, DREW NOES: ATHAS, FRYDAY

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RECUSED: LUCAN Motion failed.

Council asked Assistant City Attorney Nebb to assist with a substitute motion,

which she stated: Direct staff to bring back an analysis including, but not limited to,

conditions of any guarantee, effects on debt limitations, rating affects, effects on Measure D, risk assessment, cost of remaining improvements, possibility of conversion to a conventional/ take out loan, and any other pertinent information of the financing assistant options including guarantee loan and/or grant or combination thereof; and to provide direction to staff regarding in the preferred option to bring back for possible action.

Councilmember Athas moved that motion with the Mayor seconding the

motion. Thereafter, conversation ensued among Council and staff, including whether or not Councilmember Athas could use the Assistant City Attorney’s substitute motion. The Mayor then claimed that he’d make the substitute motion. Council and staff continued discussion, including the possibility of an informational meeting with a list of options and pros and cons. The Mayor withdrew the substitute motion.

COUNCIL ACTION: Upon a substitute motion by Councilmember Eklund

and seconded by Mayor Pro Tempore Drew to have an informational meeting only answering questions.

Councilmember Athas asked for a friendly amendment to include that the

deliberation would be at the following regular Council meeting. Councilmember Eklund said she could agree to that if all the information was provided at the informational meeting, and a list of options with pros and cons that could be presented.

COUNCIL ACTION: Upon an amendment to the substitute motion by

Councilmember Eklund and seconded by Mayor Pro Tempore Drew, the City Council voted 4-0-1 via roll call to have an informational meeting only answering questions, and that the deliberation would be at the following regular Council meeting if all the information was provided at the informational meeting and a list of options with pros and cons could be presented.

AYES: EKLUND, DREW, ATHAS, FRYDAY NOES: NONE RECUSED: LUCAN Motion carried.

After this item, Council and staff conversed on which ones of the remaining

Council items were time sensitive. They determined to continue with the remaining items, except J-13 (parklet).

Council took a quick recess.

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When they came back, including Councilmember Lucan, the Mayor reiterated for the public what remaining items would be brought before Council and which ones would be moved. Council took action.

COUNCIL ACTION: Upon motion by Councilmember Eklund and

seconded by Councilmember Athas, the City Council voted 5-0 via roll call to postpone Item J-13 to a meeting in the future.

AYES: EKLUND, ATHAS, LUCAN, DREW, FRYDAY NOES: NONE Motion carried.

I. PUBLIC HEARING 12. Hold a public hearing; and consider and possibly take action to

1) adopt an urgency ordinance to extend a temporary moratorium on all commercial cannabis activities, except deliveries, except deliveries of medicinal cannabis and an existing testing laboratory and pharmaceutical company; 2) approving a report on the conditions leading to the adoption of the ordinance; and making findings that the approval of said resolution is exempt under CEQA pursuant to CEQA guidelines section 15061 (b)(3),15308, 15060 (a)(2)

Assistant City Attorney presented this item before Council, and Council and

staff conversed a bit on when the Council would be discussing cannabis commercial options and the tours of the cannabis businesses.

COUNCIL ACTION: Upon motion by Councilmember Athas and

seconded by Councilmember Lucan, the City Council voted 5-0 via roll call to move the urgency ordinance to extend a temporary moratorium on all commercial cannabis activities.

AYES: ATHAS, LUCAN, EKLUND, DREW, FRYDAY NOES: NONE Motion carried. The City Council adopted Urgency Ordinance No. 1646.

J. GENERAL BUSINESS 13. Consider, and possibly take action to provide staff direction on the establishment of regulations relating to outdoor dining areas, parklets, and/or outdoor display areas Council postponed this item.

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G. CONSENT CALENDAR ITEM PULLED FROM EARLIER

6. Approve holding a joint meeting between the Novato City Council and the Novato Unified School District Board of Trustees on Tuesday, November 13, 2018 at 6:00 p.m. in the City of Novato Council Chambers, 901 Sherman Avenue

Councilmember Eklund explained why she pulled this item. Thereafter, Council and staff spoke mainly about the MOU concerning the school resource officers. COUNCIL ACTION: Upon motion by Councilmember Eklund and

seconded by Councilmember Lucan, the City Council voted 5-0 via roll call to move forward with the Joint Meeting with the understanding that the City Manager would brief the Council individually about the two resolutions and that Council would get feedback on the School District’s response to the revised MOU beforehand (before the Joint meeting).

AYES: EKLUND, LUCAN, ATHAS, DREW, FRYDAY NOES: NONE Motion carried.

K. COMMISSIONS, COMMITTEES AND BOARDS (CCB’s) APPOINTMENTS There were no items listed for this section. L. WORK STUDY SESSION There were no items listed for this section. M. ADJOURNMENT

The City Council adjourned the regular meeting in memory of Bill (William) Kelly (former Design Review Commissioner) and expressed well-wishes for Bob Tong’s health (Photo Editor of the Marin Independent Journal) at 10:24 PM.

Draft Minutes recorded, prepared and respectfully submitted by: Terrie Gillen, CMC, City Clerk

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