A.    CALL TO ORDER, PLEDGE OF ALLEGIANCE, INVOCATION AND ROLL CALL

Invocation - Reverend Eileen Hedin, St. Francis of Assisi

ROLL CALL

Present:

Mayor John Mani
Mayor Pro Tem Michael Di Giorgio
Councilmember Carole Dillon-Knutson
Councilmember Pat Eklund
Councilmember Bernard Meyers

Also present: City Manager Roderick Wood, Assistant City Manager Walter Bobkiewicz, Public Works Director Steve Wallace, Redevelopment Administrator Ron Gerber, Principal Civil Engineer Glenn Young, Planner II Paul Choisser, and City Clerk Shirley Gremmels.

B.    CLOSED SESSION ANNOUNCEMENT

6:00 p.m., Simmons House Conference Room

The City Attorney announced that the Council met in Closed Session for the items listed on their agenda and no action was taken to report.

C.    CEREMONIAL MATTERS/PRESENTATIONS

Proclamation:
Honoring Bicentennial Anniversary of U.S. Military Academy at West Point

D.    APPROVAL OF FINAL AGENDA

Councilmember Eklund moved, seconded by Councilmember Dillon-Knutson, to approve the final agenda. The motion carried unanimously.

E.    PUBLIC COMMENTS

Rob Wainwright, representing Novato Community Partners, gave a status report on the Pointe Marin project in Ignacio. He said that the work will not be done by March 15 as anticipated because of utility problems with work that was done by the military. He requested to keep Palmer Drive closed until May 15 to do the trenching work that is now required.

Councilmember Eklund stated that she was concerned about customers trying to use the businesses in the shopping center where the Bell Market was located, as Palmer Drive was one of the access points. The City Manager explained that Palmer Drive was not in a safe condition and that the developer could be asked to expedite the work.

Rob Wainwright stated that they have been in communication with the shopping center and their biggest concern was Entrada Drive. The bypass from Entrada to Ignacio has worked well. He responded to Councilmember Eklund that he has not talked to the personnel at Bell Market about the extension to May 15 yet. He further responded that if they operated equipment 24 hours a day it would be a disturbance for the neighborhood. There really was no way to detour people around the work. He responded to Councilmember Meyers that they can make the detour signs larger and to Mayor Pro Tem Di Giorgio that they would put signs on Ignacio and Entrada.

After Council expressed concern for the shopping center businesses, the City Manager requested the Novato Community Partners to come back on March 26 to further update the Council on its progress.

Jim Henderson, former Mayor, congratulated the Council on their decision to go forward on the Skate Park. However, he questioned whether putting in a lawn was the right choice given the North Marin Water District's "Cash for Grass" program that was now being promoted. Also, the maintenance of the lawn would be an impact on Public Works Department. He also questioned if outdoor furniture was going to be purchased as he was concerned about the City's current budget problems.

Gail Meyers, Novato resident, referred to the office building project on Redwood and DeLong and said that they have not been cleaning up the dirt they have deposited on Redwood Boulevard as a result of the construction work.

Korey Yamagata, Board Member of the Downtown/Old Town Business Association, stated that he did not see last night's Planning Commission meeting on the Zoning Code amendments. He stated that they have worked with Planning Manager Barrett on the amendments, but he has not seen the plan for 999 Grant Avenue. He said they discussed it briefly at their morning Board meeting, but were not prepared to comment at this time.

Emily Gates, Board Member of the Novato Theatre Restoration Committee, referred to the City Hall Campus Rehabilitation Plan and stated that they supported a three-story parking structure and would rather not have any levels underground so that it would be financially affordable.

F.    CONSENT CALENDAR (Item 1 was removed.)

F.    ITEMS REMOVED FROM THE CONSENT CALENDAR

1.    AMENDMENT TO CONSULTANT SERVICES AGREEMENT FOR THE GRANT AVENUE IMPROVEMENT PROJECT (93-012) (file 803-02)

Consider authorizing the City Manager to execute an amendment to the existing consultant services agreement (Agreement 3473A) with Freedman, Tung and Bottomley (FTB) for design services which will result in the completion of contract plans and specifications for the Grant Avenue Improvement Project. The fee for the scope of work augmentation shall be in an amount not to exceed $1,215,335. Also included in the amendment is the design concept work for Sherman Avenue to coordinate its design in conjunction with the Civic Center and Grant Avenue Improvement Projects and additional survey work not originally anticipated on Grant Avenue.

Councilmember Eklund stated that she removed the item from the Consent Calendar as she wanted to get clarification on a couple of issues regarding the consultant services contract that was originally approved.

The Public Works Director responded that the contract now proposed was $1.5 million and funds were available from the total construction costs, which now includes Sherman Avenue.

Principal Civil Engineer Young explained that $899,000 for design was the original amount for the project. The cost for the additional work on Sherman was $85,000 and the additional work on Grant Avenue was $34,000, bringing the total amount to $1.5 million with the work that has already been done included.

Councilmember Eklund questioned whether the project was under-estimated. She was concerned because there was currently a certain amount of money available and if 25 percent was going to be used for design, that would set the project back.

The City Manager stated that he would use the Olympic award system as a model to explain that the original estimate was only a little better than a "bronze" project. It was proposed that the consultants now work on a "gold" project. Some of the increase in the costs was the result of shifting the survey work to the consultant to save time. Time was of the essence because of the grants that must be used by certain dates.

The Public Works Director responded to Councilmember Eklund that Freedman, Tung and Bottomley are proposed to do the design for Sherman Avenue as well as for Grant Avenue. Dan MacDonald, architect for the City Hall rehabilitation project, has done no design work on the Grant or Sherman Avenues projects.

The City Manager responded to Mayor Pro Tem Di Giorgio that normally the City does the landscape and civil engineering for City projects but for the more elaborate and unique projects such as this one and the completed South Novato Boulevard projects, consultants have been hired to do the work.

Councilmember Eklund questioned whether modification of the contracts would allow the City to get the construction drawings needed in time to get the construction bids and financial plan to start construction in July.

The Principal Civil Engineer stated that the consultants will present the alternatives to the Council at a later date. The City Manager stated that staff will present the financial plan. The City can pay for the "bronze" plan, Redevelopment can pay for the "silver" plan and the property owners would pay the extra for the "gold" plan if they chose through an assessment district. At this time, the "gold" version was estimated to be between $8 million and $11 million. The "gold" version would be a bid alternate. He further explained in response to Council's questions that alternate bids for the "silver" and "gold" projects would be developed now by the consultants. It would be too late to authorize later when it was learned that the merchants wanted to do an assessment district because of the grants. It was a risk to do the design work for the "gold" version, but based on the excitement the property owners have expressed, he thought it was a good risk. He stated that if the "gold" version was not authorized at this time, it probably would be lost forever. He stated that the consultant has assured staff that after the 4^th of July Parade there would be a groundbreaking ceremony for the project.

In response to Councilmember Meyers, the City Manager explained the process for forming an assessment district and said that the cost to the property owners would be based on their assessed valuation and would take a two-thirds vote. He advised that the property owners in the Downtown are forming a committee to work on forming the district. Many realize that their property values would be raised by doing the "gold" version and that it would be tax-exempt because of the public improvements. He again stated that there was reasonable optimism that the property owners would support an assessment district to do the "gold" version. Also, the "silver" version could be legitimately done with Redevelopment if that was Council's decision. He responded to Councilmember Eklund that the vote on the assessment district for the Downtown property owners could not be done in a couple of weeks.

Councilmember Eklund questioned whether a critical path could be done as to the process and schedule for the property owners to do the assessment. The City Manager responded that the "gold" version would be a bid alternate, and Council would not be asked to commit to the construction at this point. He said it was recommended that the approximately $200,000 to do the bid alternates would come from the Redevelopment fund.

The City Manager responded to Councilmember Meyers that his concern with delaying the amendment to the contract at this point would be that the May 22 deadline for awarding the construction bid could not be met. So far the schedule has been met, but time was built into the front end of the schedule for planning. The most critical decisions will need to be made at a future Council meeting. He further responded to Councilmember Meyers that with the approval of the amendment the consultant would give an estimate so that the Assessment District Committee could provide information to the property owners. He advised that Emily Wagner, a financial advisor, has been hired to assist with the assessment process, which was very complex. A straw vote of the property owners would be done as soon as possible.

The public comment session was opened.

Helen Chevez, Novato resident, suggested doing the landscaping after the street improvements were completed.

Steve Rempe, business owner, urged that the "gold" alternate bid be done. He said that the Council should try to aim for the best possible project and thought it was worth the risk.

Jim Henderson, former Mayor, urged that the "gold" alternate bid be done. He was concerned that the deadline for the grants was looming.

Gail Meyers, Novato resident, questioned how Sherman Avenue could be added to the Grant Avenue project when it was actually part of the City Hall rehabilitation. She thought each intersection onto Grant Avenue would be affected and that Council should wait to authorize the "gold" alternate bid.

The City Manager indicated that the decision as to whether Sherman Avenue would be a plaza has not yet been made.

Korey Yamagata, property owner, urged that the "gold" alternate bid be authorized as it would be a real asset.

Skip Tozzi, property and business owner, stated that he highly recommended that the Council authorize the "gold" alternate bid.

The public comment session was closed.

Mayor Pro Tem Di Giorgio moved, seconded by Councilmember Dillon-Knutson, to authorize the City Manager to sign the consultant services agreement amendment. The motion carried unanimously.

G.    UNFINISHED AND OTHER BUSINESS

H.    WRITTEN COMMUNICATION

I.    PUBLIC HEARINGS

J.    GENERAL BUSINESS

2.    CITY HALL CAMPUS REHABILITATION PLAN (file 205-04)

Consider adopting Resolution 20-02 adopting a Mitigated Negative Declaration and approving the City Hall Campus Rehabilitation Project Plan, which includes the campus building rehabilitation, addition of office square footage, addition of a new building, parking garage, pedestrian access and circulation improvements. The project involves the property and buildings at 900, 901, 905, 908, 911 and 917 Sherman Avenue.

(Note: See Public Comments for additional testimony.)

Assistant City Manager Bobkiewicz, project manager, stated that there would be three presentations, one from Gala Slikas, who facilitated the two workshops, one from Dan MacDonald, architect for the design, and one from the Public Works Director on the square footage.

Gala Slikas, strategy consultant and facilitator, gave a summary of her report of the two workshops she facilitated as listed as an attachment to the staff report. She responded to Councilmember Dillon-Knutson that the City may have to advertise again to let citizens know when the project was ready for Council's final approval. She said this really was a "hands-on" community and that was why she recommended developing a community e-mail network that was tied into the City's website. She further responded that an updating workshop would also be useful.

Dan MacDonald, architect for the project, stated everything at this point was conceptual as no detailed drawings have been authorized. Martin Wilson, architect, commended the workshop process and the input given by the community. He said a lot of focus was given on the parking garage and how many levels it should have. The least expensive would be all levels built above-grade. Dan MacDonald stated that there was also more cost to maintaining levels that are underground. Martin Wilson distributed a fact sheet that gave estimates for each level above and below-ground up to three levels. The most inexpensive was Alternate A, with three levels above ground at $3.2 million and the most expensive was three levels below ground at $4.4 million. Dan MacDonald advised that they have designed a parking garage in San Rafael.

Martin Wilson explained to Mayor Mani that they projected 80 spaces per level in their cost analysis only for comparison purposes and that the numbers were very soft.

Dan MacDonald and Martin Wilson responded to Councilmember Meyers that to add another level at a later date would cost more than their analysis showed because of having to set up the construction site again, changes in the Unified Building Code and the loss of the use of parking on one floor during construction.

Mayor Mani advised that a super majority of those who participated in the workshop wanted three levels for the parking garage.

Martin Wilson responded to Councilmember Eklund regarding the cost for moving City Hall to another location that the current City Hall was a 91,000 square foot parcel. They estimated it would cost $2.7 million for the land needed for 31,000 square feet of office space for a total of $10.5 million. This estimate does not address parking. He further responded that the new office building on the current City Hall site was estimated to be between $3.2 million to $4 million.

The Assistant City Manager responded to Councilmember Eklund that costs to renovate 900 and 917 Sherman Avenue have not been done, awaiting Council's decision to approve the site plan. The City Manager responded that the parking structure was not needed for City Hall parking, but was needed for the Downtown. If City Hall was moved, all the buildings still would have to be repaired and upgraded for other uses because they would not be usable.

Dan MacDonald responded to Councilmember Meyers that the first step would be the replacement for the Hanen House if Council decided to move it back. The next step would be the 12,000 square foot office space, which would take one to one and a half years. The best scenario would be to do the office building and the parking structure at the same time. The parking structure will take less time than the office building to construct.

The City Manager estimated that the whole project will take three to five years once the decision was made on the site plan.

Dan MacDonald responded to Councilmember Eklund that if one level of parking was placed underneath the 12,000 square foot building, essentially three stories would be seen looking at it from Cain Lane, keeping in mind that there was no specific design as yet.

Councilmember Eklund stated that she wanted to look at spreading the office building to reduce some of the mass and bulk. Dan MacDonald responded that a building above the parking would be more massive. Martin Wilson further responded that they did not prepare estimates on that concept because of funding mechanisms.

Dan MacDonald responded to Councilmember Meyers that for the parking garage if Alternative 4, which was three levels below ground, was chosen he estimated it could be done in four years.

Martin Wilson responded to Councilmember Meyers regarding moving the Simmons House to where the parking structure was proposed that it would alter the historic character of the street. The parking garage on the Simmons House site would be a very tight fit.

Councilmember Dillon-Knutson stated that a three-level garage was absolutely necessary and the two workshops reinforced that need. However, she was not convinced as yet that the office building needed to be 12,000 square feet. She questioned when the office building and pathway decisions needed to be made. Dan MacDonald responded that those decisions would be made in the future after the positions of the buildings have been determined.

The Assistant City Manager responded to Mayor Pro Tem Di Giorgio that it was yet known what will be done with the bungalows as the project was not far enough along in the design process. The City Manager noted that in the original concept plan, one of the bungalows was supposed to provide office space and meeting rooms for the Council and the other counter area for the Community Development and Public Works functions. He further responded that the projection of 282 square feet per employee resulted because of use of the existing church and old houses for office space, which are not laid out as efficiently as office buildings.

The public comment session was opened.

Mark Birnbaum, Novato resident, urged as part of the process that bike parking be included to encourage people not to use cars.

Pat Willat, representing the Board of Directors for the Historical Guild, stated that their mission statement included aiding and encouraging the City in the development of its Museum and preservation of its historical buildings. They supported Option 4, retaining the historic buildings and the overall character of the new buildings to blend in with the old, the linear park and plaza concept providing connectivity through the site and across Sherman Avenue and the three-level parking structure located on Machin Avenue. She stated that the City cannot afford to lose any more of its heritage that was left on Sherman Avenue. These buildings are part of Novato and the reason why people come Downtown. The Board of Directors was delighted that the Chamber of Commerce and DOTBA also support Option 4. She urged that the Council move forward with the plan.

Don Urban, representing the Novato Theatre Restoration Committee, stated that they would be asking Council for support for their project in the next three months. Since their project will bring 200 additional cars into the Downtown, they are requesting support for a parking garage for 250 spaces.

Denise Athas, President of the Chamber of Commerce, urged the Council to move forward with Option 4, which would support the Downtown revitalization. She stated that they consider City Hall rehabilitation and the parking garage as one cohesive project along with the Grant Avenue Improvements project.

Susie Brown, homeowner, business owner and member of the Chamber of Commerce, urged that Council move forward and support Option 4. She stated that she was eager to see this happen in her lifetime. The three-level garage was imperative.

Gail Meyers, Novato resident, stated that she believed that an election was needed on this issue. She thought that people standing on the street would not be able to see the hills because the new buildings would block the view. She was concerned that there were no people present who were just residents because all taxpayers would pay for this project. She said only one new building was needed and should look like a rectory next door to the church.

Anita Zunino, Novato resident, complained about the City not fixing her drainage problem. She said that the City should not do this project if it cannot control the drainage. She said she would not support a parking structure that was two stories high and did not want the Hanen House moved. She thought the people who supported the project did not live in Novato. She suggested that the City use the new office building on the corner of Sherman and DeLong on the hill.

Ken Harth, President of the Downtown/Old Town Business Association (DOTBA), stated that he has lived in Novato for over 20 years and that DOTBA was in full support of this project in conjunction with the Grant Avenue and the Theatre Restoration projects. The timing was right and the workshops verified that the rehabilitation project should be done. With regard to the parking garage, he said his preference would be to use the money instead for facade treatments in the Downtown as outlined in their newsletter.

Steve Rempe, business owner, stated that he has been in Novato since 1965. He said that the massing of the buildings really would not be seen because it would be behind the line of sight. All the buildings on Grant Avenue can go as high as 42 feet. Retail footage would be regained when the Capital Improvement Projects staff move back to the City Hall campus. The City office space that was rehabilitated would be more efficient and not feel massive. He stated that the City hired an architectural firm from Novato and people on the Committee are from Novato. Some people have been involved for years.

Korey Yamagata, business owner and Board Member of DOTBA, stated that he was in full support of the project and also of subterranean parking. He said he supported the best possible project for Grant Avenue as well. He urged the Council to move forward.

Helen Chevez, Novato resident, stated that she was concerned about the parking and suggested the property north of Olive Street Avenue be used for the Downtown parking.

Lee Hamovitz, Novato resident, was concerned that the parking structure was too far over in the corner of the City Hall property to serve North Grant Avenue and that people would just stay in the Theatre area.

At 9:30 p.m, a ten-minute recess was taken.

Councilmember Eklund referred to a suggestion given at the workshop to relocate the Council Chambers to the church, which was actually part of the original proposal in 1986. Dan MacDonald responded he has heard the idea, but did not study that concept.

Councilmember Eklund referred to the 1987 proposal where 182 parking spaces were proposed underground and also included additional footage in the new City Hall building to be leased for private use. She questioned if 905 and 911 Sherman Avenue were considered for leasing. Dan MacDonald responded that they did not study the idea as yet. There were many ideas that have been suggested, but have not been studied as they were still in the planning process and not yet to that level of detail.

The Public Works Director responded to Councilmember Eklund that the 288 square feet per person for 111 staff envisioned the replacement of the Hanen House which was proposed to be moved back and used for storage.

Councilmember Eklund stated that she called the Cities of San Rafael, Healdsburg, Suisun City and Mountain View, who have built City Halls and they averaged 220 square feet per employee. She suggested that square footage be used for the proposed new office building, thereby significantly reducing the size. Dan MacDonald stated that they were not yet at that level of detail. It was not known how many conference rooms, restrooms, etc., would need to be planned for. There might also be a wish to plan for future needs.

Councilmember Eklund suggested that the Hanen House be used instead of moving it. Dan MacDonald responded that it would be too expensive to make all the additions that would be required to make it into a functioning office. He recommended that it be moved to the rear as far away as possible from the Zunino's property. He further responded that their first decision was whether they wanted to retain the historical character.

Councilmember Eklund noted that in the 1986 parking study for Old Town a finding was made that a parking structure was not suitable for the Downtown and that a dispersed parking program be used. Dan MacDonald stated that he has been talking to staff regarding this issue for the past several years, and the parking garage was not an answer to all the parking needs on Grant Avenue and the Downtown. The garage would be for City staff and businesses in the immediate area.

Mayor Pro Tem Di Giorgio suggested that if the square footage per employee were reduced to 220, it would free up some space. He was concerned that they would be building for the next 20 years and he did not want to have to "crowd people in" in succeeding years. The parking structure was never meant to be the sole solution to parking. He said that he did not want a parking structure on Grant Avenue and the location on City property was only one block away.

The City Manager clarified to Mayor Mani that when the Downtown Specific Plan was developed there was recognition that a couple of parking facilities would be needed for the east and west ends of Grant Avenue. The design solutions for those identified parking needs have yet to be determined. Council has directed that a parking district be considered to provide parking. With regard to the City's staffing needs, the estimates have been conservative, however, the existing buildings, some of which will continue to be used, are not efficient because they are an old church and houses. City Hall spaces are used for City and community meetings and the Community Development and Public Works staff tend to have more meetings than do other staff and have huge counter space demands.

Councilmember Dillon-Knutson said she wanted to echo what Mayor Pro Tem Di Giorgio stated about parking being off the main street. The parking structure on Machin can be hidden with landscaping. She wanted to be sure there were pedestrian alleyways to create access. She said the parking garage was the first of several parking projects. She wanted options for the existing buildings that are going to be saved. She noted that Council does not have office space or a place to meet with the community and that would be useful to have.

Councilmember Meyers suggested that instead of moving the Hanen House back for storage to instead build the Finance Office building large enough to include the storage and not move the Hanen House back. The City Manager stated that to maintain the historical character it would be cheaper to move the Hanen House and use it for storage.

Mayor Pro Tem Di Giorgio stated that he liked the idea of moving the Council Chambers to the church. He noted that Suisun City floated a bond for $53 million and built the City Hall downtown using condemnation procedures. He thought in time, the ownership of Downtown would change and there would be more opportunities to do things under the City's new Zoning Code. Council has said that they would not condemn property. He liked Option 4 and even liked the towers on the parking structure.

Mayor Mani stated that the City spent $50,000 on the two workshops and the outreach program to make sure that the public was involved and prior to that had 17 public meetings, either workshops or hearings. At the workshops just held, most people chose Option 4. He said he would like put all three levels of parking underground but that was too expensive. He said Novato's revenue stream would increase in the next 15 years and the City would be able to afford to provide more services, which means more City employees. He thought it would be terrible if there was not enough space and those employees were again put in portable trailers. He recognized that the Hanen House was a problem for Mrs. Zunino.

The Public Works Director referred to a CIP project that would address drainage issues discussed by Mrs. Zunino. A geotechnical investigation would be done to see if an answer can be found to solving the problem. He responded to Mayor Mani that staff has talked to Mrs. Zunino on several occasions.

Mayor Mani agreed that the bike racks for parking should be an essential part of the Downtown. He reiterated that the parking structure would be too expensive to underground and that safety was more important to him with the idea that it would be so near the Police Department. He liked the idea of including updates on the City Hall project on the website. He referred to the DOTBA newsletter and said it was a "manifesto" on what the Downtown community needed and it was actually Option 4. He thought the Council needed to move forward in support of the business community. He reported that his biggest surprise after being elected to the Council was the incredible staff the City had and what an amazing job they did with relatively little. Even this year, by cutting and cutting, they have made the projected budget shortfall "dead even." When the City was healthy in five years or so, things would be better.

The Assistant City Manager responded to Councilmember Meyers that there was $4.2 million in the Civic Center Fund. There has been discussion about leveraging this money to preserve the principle amount. This would work for the office building but not the parking garage. The City Manager explained that leveraging worked because the City has a tax-exempt status as a public agency and can borrow against the principal and pay back the loan in 20 or 30 years using the interest. The City was doing that for the Gymnastics and Teen Center.

Councilmember Meyers suggested installing a causeway across Sherman Avenue for pedestrians. Dan MacDonald stated that could be done but would change the character of the area.

The City Manager responded to Councilmember Meyers that Council needed to decide whether the EIR was adequate and which concept for the Master Plan they wished to move forward. The Council should decide where they want the different activities and offices to be located. After that, the architects will begin the design phase for Council's final decision. He responded to Councilmember Eklund that he guessed that Suisun City used most of their Redevelopment money for parking as State law frowns on it being used for City Halls. They might also have been able to use Redevelopment for ongoing maintenance. Staff plans to recommend that all City Hall buildings be owned by the Novato Public Finance Authority and that the City pay rent.

Councilmember Eklund discussed the video that she purchased regarding other cities that built City Halls and they all had a common theme of how a vision was needed and to examine the City's roots. She said everyone wanted to preserve the historical character along Sherman Avenue and she agreed. She suggested instead of moving the Hanen House to continue using it for Youth Services and put Finance into 917 Sherman Avenue. She was not clear on how much storage was needed. She also suggested rehabilitation of 905 and 911 Sherman Avenue.

Councilmember Dillon-Knutson moved, seconded by Mayor Pro Tem Di Giorgio, to designate Option 4, retention of the historic buildings and overall character of the new building to blend in with the old, the linear park and plaza concept providing connectivity through the site and across Sherman Avenue and the three-level parking structure located on Machin Avenue and Alternative D from the parking garage cost analysis for two levels above-ground and one level below-grade for the parking garage.

Councilmember Meyers proposed that the office building be moved to where the parking structure was to be located. Mayor Mani reminded that Option 4 was the recommendation from the participants of the workshops.

Councilmember Meyers responded to Councilmember Eklund that he was proposing to flip the parking structure and the new 12,000 square foot office building.

Councilmember Meyers moved, which did not receive a second, to amend the main motion to investigate another location for the Hanen House.

Councilmember Meyers moved, seconded by Councilmember Eklund, to amend the main motion to move the Hanen House elsewhere and enlarge the new Administrative Services building sufficiently to provide the space for which the Hanen House would have been used.

The City Manager stated if more studies are wanted it would be an additional cost. The Hanen House was where staff proposed to receive the City's shipments.

Councilmember Eklund again suggested the Hanen House stay in the same location because of the historical character.

Councilmember Dillon-Knutson stated that in this case the historical character of the Hanen House was not so wonderful as it was once a barn. However, she wanted to be sure of the design of the house that would replace it and that would come back to the Council at a later date.

Councilmember Meyers noted the motion was a suggestion of Design Review Committee Member Joyce McCarron.

The motion failed 1-4, with Mayor Mani, Mayor Pro Tem Di Giorgio, and Councilmembers Dillon-Knutson and Eklund dissenting.

Councilmember Meyers moved, seconded by Councilmember Eklund, to amend the main motion to add to Condition 13b. behind the word "clean", the word "promptly" and to Condition 5c at the end of the sentence "at a 3 to 1 ratio."

The amendment to the main motion carried unanimously.

Councilmember Eklund moved, seconded by Mayor Pro Tem Di Giorgio, to amend the main motion to add a condition that the church be evaluated for the relocation of the Council Chambers within the confines of the Master Plan. The amendment to the main motion carried unanimously.

Councilmember Eklund moved, seconded by Mayor Pro Tem Di Giorgio, to amend the main motion to change Condition 3c from a five-foot setback to a ten-foot setback. The amendment to the main motion carried unanimously.

Dan MacDonald responded to Councilmember Eklund that if they started to move off of Cain Lane, they would squeeze other portions of the project, but they would look at this carefully when starting the drawings.

The City Manager responded to Councilmember Eklund that lacking any other direction from the Council, staff would install story poles for the project. Councilmember Eklund stated that she wanted them installed before the Design Review Committee hearings.

The City Manager responded that it was unresolved as to whether poles should be installed before or after because the project could change after Design Review.

Councilmember Eklund stated that she wanted to be sure to be able to revisit the project once the story poles where in place. The City Manager stated that would be done if desired, but would mean more money would be spent to do so.

The City Manager responded to Councilmember Meyers that the square footage for the office building could be changed but not the placement of the building. Also, whether to do two or three stories on the parking structure should be decided. Staff would be working on the funding mechanisms for the parking garage.

Councilmember Eklund stated that she was still concerned about the height of the parking structure. She questioned if after the story poles were installed and the structure was found to be too tall for the site, whether the Council could reduce the structure and put the levels underground. The City Manager stated that the real issue for that matter was whether Council would commit to the additional cost. Since the City was the property owner, the decision could be changed.

Councilmember Eklund moved, seconded by Councilmember Meyers, to amend the main motion to explore putting two levels for the parking structure underground and putting the 12,000 square foot office building above the parking structure.

Councilmember Eklund stated that she checked with the architects and they said a 12,000 square foot office building could be put on top of the parking structure. Dan MacDonald agreed and stated that it would cost a great deal more money to do so because of firewalls and other issues. At this point he could not give an estimate without plans. Also, it would be more massive than Option D in the main motion. He further responded regarding putting the office building on only two levels, both underground, that it could be done, but he still was not sure of how big until the drawings were done. The 12,000 square foot office building was proposed to be two stories. If spread out, it would be less efficient. He responded to Councilmember Meyers that the two stories underground would be expensive because of ground water and also the fire separation. The building on top would cost the same.

The City Manager responded to Councilmember Eklund stated that the fundamental question was the consequence of only providing two levels of parking on the Downtown revitalization. He was concerned of the effect if three levels were not provided.

Councilmember Eklund stated that she did not want to jeopardize the Downtown revitalization and withdrew her motion. Councilmember Meyers also withdrew his second to the motion.

Councilmember Eklund moved, seconded by Councilmember Meyers, to amend the main motion to explore the feasibility of putting two levels underground and one level above-grade.

Councilmember Meyers stated that the difficulty would be the maintenance of two levels underground such as exhausting the fumes along with other issues. His view was not to do that.

Mayor Pro Tem Di Giorgio stated that at this point it was his understanding that all they were doing was approving the site plan and could consider the two levels below grade issue later.

The City Manager agreed and responded to Mayor Mani that Council could decide whether to put another level underground if desired when the parking structure design was before the Council.

Councilmember Dillon-Knutson stated that she and her husband's engineering firm have been involved with parking structures located in San Francisco and there are water issues. However, it was worth exploring. She thought that putting the office above was a creative approach, but did not have to be decided at this time.

The amendment to the main motion carried unanimously.

The City Manager responded to Councilmember Eklund that the question regarding the 12,000 square foot office building was where to put everything that was needed. Staff recommended the square footage space, as probably there would always be about the same or a little more staff through the years only doing difference functions as needs change. He further responded that at another phase Council would be asked to confirm the functions in the spaces. He believed strongly that the Council should have space and liked the idea of the Council Chambers being relocated to the church.

Councilmember Meyers stated that with regard to how many levels the parking structure should be, at first he didn't like the idea of three levels. However, there was no ample space off of Grant Avenue other than this site and so he has come to believe the three levels were necessary.

Councilmember Meyers moved, seconded by Councilmember Eklund, to amend the main motion to improve the Zenk Lot to have 35 spaces. The amendment to the main motion carried unanimously.

Councilmember Meyers stated that in walking around Machin and Vallejo Avenues, he saw room for a parking lot and referred to a previous report regarding that issue. He said he would support the motion and thanked the architects and staff who have been working on the project.

Councilmember Eklund stated that she was glad that they were going to explore the possibility of putting two levels of parking underground, as three levels were needed. She stated that the hard questions needed to be asked for the sake of the integrity of the project. She said she would support the motion and had faith the architects would design the best project. The historic character of the area needed to be protected and the new design should look historical as well. She said they needed to "stretch" to relocate the Council Chambers into the church. She agreed that the status of the project should be on the City's website to engage the public in the design phase and get them involved.

Mayor Pro Tem Di Giorgio stated that he would support the main motion as they were now taking a giant step forward.

Councilmember Dillon-Knutson stated that she also would support the main motion and remembered all the work on the Downtown Specific Plan and the dream envisioned in that plan which would now start to come true. This project will spark the revitalization of the Downtown and the parking spaces were needed for that process. She also agreed with relocating the Council's Chambers to the church and hoped it would work.

Mayor Mani stated that he thought his body language and comments spoke volumes regarding how he felt about this project. The revitalization of the Downtown was about to get started. He believed that Novato was the jewel City in Marin.

The main motion as amended carried unanimously.

The City Manager said the Council was to be commended for its extraordinary effort to give every person in the community an opportunity to give their input. Very significant dollars would be spent on this project and the community's input will reflect a better project.

K.    COMMISSIONS, COMMITTEES AND BOARDS APPOINTMENTS

L.    ADJOURNMENT

At 11:20 p.m., the meeting was adjourned and continued to March 18, 2002 in memory of Lee Preston.

I HEREBY CERTIFY that the foregoing minutes were duly and regularly adopted at a regular meeting of the Novato City Council on the 9^th day of April, 2002.

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Shirley Gremmels, City Clerk