CITY OF SAUSALITO
CITY COUNCIL MINUTES
Tuesday, May 19, 2026
I. CALL TO ORDER AND ROLL CALL
The meeting was called to order by Mayor Woodside at 3:1 p. m. and the following members were present:
Councilmember Cox
Councilmember Hoffman (3: 35)
Councilmember Sobieski
Vice Mayor Blaustein
Mayor Woodside
H. CLOSED SESSION
Cl. CONFERENCE WITH LABOR NEGOTIATOR (Government Code Section 54957. 6) Agency Designated Representative: Chris Zapata, City Manager, Kathy Nikitas, Human Resources
Manager, Burke Dunphy, Sloan Sakai
Employee organization: SEIU
C2. CONFERENCE WITH LEGAL COUNSEL - EXISTING
LITIGATION* (Government Code 54956. 9(d)( 1))
Name of case: Russo v. City of Sausalito. Marin County Superior Court CV008400 C3, CONFERENCE WITH LEGAL COUNSEL -EXISTING
LITIGATION ( Government Code Section 54956. 9(d)( 1))
Name of case: Andrew Sullivan v. City of Sausalito, Marin County Superior Court Case CV0004822
C4. PUBLIC EMPLOYEE APPOINTMENT
Government Code Section 54957)*
Title: Interim City Manager
C5. CONFERENCE WITH LEGAL COUNSEL -ANTICIPATED
LITIGATION ( Government Code Section 54956. 9(d)( 4))
Initiation of litigation: One case
The City Council adjourned to Closed Session at 3:3 p. m. 1 of 7
III. RECONVENE TO OPEN SESSION
The City Council reconvened at 5. 05 p. m,
Mayor Woodside announced that the City Council has authorized Best Best and Krieger LLP ( BBK) to represent the City of Sausalito in connection with item C5.
Vice Mayor Blaustein moved, seconded by Councilmember Sobieski, and unanimously carried, to approve the agenda.
1. SPECIAL PRESENTATIONS, MAYOR' SANNOUNCEMENTS & CITY MANAGER
REPORTS
Scott Gensler performed " Dancing in the Dark' by Bruce Springsteen.
Chris Zapata, City Manager, updated the council on declining consent to the Pelican Harbor lease, confirmed the Fire District' s
ongoing commitment to recommission the
Spencer Firehouse despite leadership changes, and then offered a brief farewell reflecting on his nearly five years of service, perfect council -meeting attendance, and gratitude to staff, council, and the community as he departs for a new role in Maricopa County.
The City Council proclaimed May 19th " Chris Zapata Day" and read a formal resolution honoring his nearly five years of dedicated service, leadership on key city projects, and deep commitment to staff and community.
1. A Economic Development Advisory Committee ( EDAC) Special Presentation
Levi Eastwood, Economic Development Advisory Committee chair, made a presentation to the City Council.
Anyone interested in joining EDAC is encouraged to start by attending upcoming EDAC meetings to learn more about the committee' swork and then apply for one of the open seats as the city begins recruitment to fill vacancies by the fall.
2. COMMUNICATIONS
Robert McCullough, Denise Fafette, Bob Mitchell, Steve Harris, Scott Robinson, Vicki Nichols, Alice Merrill, Katie Nelson, Manuel " Freddy" Rivera, David Jackson, Adam Blair, William Arensberg, Lauren de Remer, Linda Pfeifer, Sandra Bushmaker and Babette McDougal provided public comments,
3. CONSENT CALENDAR
Councilmember Hoffman requested item 3. G be removed from the consent calendar and added to the beginning of the business items as 5 A.
Jim Madden and Alice Merrill provided public comments.
Councilmember Sobieski moved, seconded by Councilmember Cox, and unanimously carried, to approve 3. A — 3. F and 3. H — 3: l 2 of 7
3. A Adopted the Draft Meeting Minutes of May 5, 2026
3. B Approved Updated Memorandums of Understanding ( MOU) for Cyber Liability and Optional Excess Liability ( OEL) Insurance Programs with Public Risk Innovation, Solutions, and Management ( PRISM) and Authorize Execution by the City Manager
3. C Authorized the City Manager to Execute a Professional Services agreement with Freyer and Laureta ( F&L) to provide localized engineering analysis and planning support for the Sea Level Rise Adaptation Framework in an amount not to exceed 111, 000 supported by the Sea Level Rise Grant
3. D Authorized the City Manager to Execute Amendment 1 to the Professional Services Agreement with Mahn IT for City Hall and Corporation Yard Security Cameras in an amount of $6, 830. 09for a total contract amount not to exceed 143, 803. 09
3. E Waived the Second Reading of Ordinance No. 07- 2026, An Ordinance of the City Council of the City of Sausalito Amending Section 12. 2.8. 190 "Licensing of Tobacco Retailers and Tobacco Sale Restrictions" of the Sausalito Municipal Code to Prohibit Electronic
3. F Adopted a Resolution 21-026 Proclaiming June LGBTQ+ Pride Month and Approving to Fly the Progress Pride Flag During the Month of June
3. G Exercise City Contract Option with Badawi & Associates to Provide Professional Audit Services for Fiscal Years 2025-026 and 2026- 2027, For a not to exceed amount of $109, 830, and Authorize City Manager To Execute A Contract Amendment to Professional Services Agreement
3. H Adopted a Resolution 22-026 Approving an Encroachment Agreement for Improvements in the Right -of -Way Adjacent to 15 and 17 Gordon Street ( APN: 064- 181- 27 and 064- 181- 28)
3. I Considered Parks and Recreation Commissions Recommendation of Repealing and Replacing Resolution 4510 with Resolution 23-026.
4. PUBLIC HEARING ITEMS - NONE
5. BUSINESS ITEMS
5. A Exercise City Contract Option with Badawi & Associates to Provide Professional Audit Services for Fiscal Years 2025-026 and 2026- 2027, For a not to exceed amount of $109, 830, and Authorize City Manager To Execute A Contract Amendment to Professional Services Agreement
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Sobieski moved; seconded by Councilmember Cox, to exercise city contract option with Badawi & Associates to provide professional audit services for fiscal years 2025-026 and 2026- 2027, not to exceed amount of $109, 830, and authorize the City Manager to execute a contract amendment to professional services agreement.
Vice Mayor Blaustein added a
friendly amendment, seconded by Councilmember
Cox, and unanimously carried to add a future agenda discussion on doing a comprehensive financial analysis in connection with the city' scontract audit service after the approval of the budget.
5. B Appointment of an Interim City Manager for the Period of May 21, 2026, through June 30, 2026
Kathy Nikitas. HR Manager, made a presentation to the City Council.
Councilmember Cox moved, seconded by Hoffman, and unanimously carried, to appoint Brandon Phipps as interim City Manager for the period of May 21, 2026, through June 30, 2026.
5. C Second Review of Fiscal Year 2026-027 Preliminary General Fund Budget Information and Provide Direction Chris Zapata, City Manager, and Angeline Loeffler, Finance Director, made a presentation and responded to questions posed by the City Council.
The Council directed staff to refine and return with specific options for addressing the projected general fund shortfall, including a full analysis of potential use of the 115 pension trust and the separate OPEB 115 trust. This analysis is to cover legal constraints, timing, and the long- term impact on the City' sretirement and OPEB obligations. The Council also directed staff to treat the $ 4. 1 million unassigned fund balance as a potential one- year bridge only: staff may propose using some portion of it to balance the FY 24-5 budget and fund a small number of priority positions, but must also present a strategy —working with the incoming City Manager —to eliminate any ongoing structural gap and to evaluate the effectiveness of the new positions.
The Council further directed staff to ( 1) work with HDL and other data sources to explain the recent property tax anomaly and report back with a clear cause analysis: 2) fully cost out an additional permit technician position, including projected revenue offsets from standard permit activity and any potential " white glove" or expedited service fee, and bring this back as a possible revenue -generating role; and ( 3) continue refining CaIPERS and trust -fund strategies. including the timing and magnitude of possible draws from the 115 trust, analysis of the OPEB trust, and confirmation of the savings associated with continued CaIPERS prepayment.
The Council instructed the City Manager to prepare and send opposition letters to the two pending state bills that would lower the public safety retirement age and restrict CaIPERS investments in a way that increases costs to cities. The Council also directed staff to continue evaluating the Gate 5 Road flood -mitigation concept as a potential Tidelands Trust —funded project and report back on feasibility, anticipated costs, and permitting requirements for possible inclusion in the budget/ CIP. Finally, staff was directed to provide a detailed breakdown of how much of the previously 4 of 7
transferred general fund surplus into the CIP has been spent versus what remains uncontracted. and to bring all of this information back in early June so the Council can move toward adopting the budget on June 16, while keeping a late -June special meeting in reserve if needed to finalize adoption.
5. O Introduction and Waiver of First Reading of Ordinance No. 08- 2026, An Ordinance of the City Council of the City of Sausalito Repealing Chapter 2. 12 "Officer' sBonds" and Sections 2. 08.50 through
2. 08.90, Pertaining to Removal of the City Manager, of the Sausalito Municipal Code
Sergio Rudin, City Attorney, made a presentation and responded to questions posed by the City Council.
Sandra Bushmaker provided public comments.
Councilmember Cox moved, seconded by Vice Mayor Blaustein, and unanimously carried, to introduce and waive the first reading of Ordinance No. 08- 2026, and ordinance of the City Council of the City of Sausalito repealing Chapter 2. 12 "Officer' s Bonds" and Sections 2. 08.50 through 2. 08.90, pertaining to removal of the City Manager, of the Sausalito Municipal Code.
5. E Review of Responses to the Turney Street Floating Dock Improvement Project and Business Partnership Request for Ideas and Proposals ( RFIP), and Selection of Preferred Partner
Brandon Phipps, Assistant City Manager, made a presentation and responded to questions posed by the City Council,
Babette McDougal provided public comments.
The City Council directed staff to negotiate with the Sausalito Waterfront Access Initiative, proposing the Turney Modular Maritime Access Hub, as the preferred partner for the Turney Street floating dock area. Staff is to prepare a one- year pilot lease and partnership agreement, including a defined capital funding plan and performance expectations, consistent with the RFIP, and return to the Council for consideration, approval, and any required CEQA actions prior to implementation. The Council further directed staff to refer the "Wildlife Parade" art proposal by Jay Brockman to the Parks and Recreation Department for review under the City' s Art in
Public Places policy ( once finalized), with Turney Street to be evaluated as a possible installation location, and to manage RFIP timing by maintaining or extending proposal validity as needed while negotiations are underway.
6. COUNCILMEMBER REPORTS & OTHER COUNCIL BUSINESS
6A. Councilmember Committee Reports
Vice Mayor Blaustein reported from the Transportation Authority of Marin that Measure AA financing was approved and a new grant program is available, and she recommended agendizing a discussion so the Council can consider potential city applications.
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Councilmember Hoffman reported that she and Councilmember Sobieski met with representatives of the Sausalito Shoreline Waterfront Association ( SSWA) regarding the shoreline adaptation plan and, working with staff, helped pivot from the prior WRT approach to a more targeted engineering and planning effort that better reflects waterfront stakeholder input.
Councilmember Hoffman reported on attending the Cal Cities City Leaders Summit in Sacramento, noting useful legislative updates and highlighting that Cal Cities is now offering the new required financial training for councilmembers.
Councilmember Cox reported that she has been invited by the City of Mill Valley to speak at their Veterans Day celebration, which will be held in front of the Depot at 10: 30 a. m. on Saturday.
Mayor Woodside reported that the Mayors and Councilmembers Selection Committee would be meeting the following week to consider appointments (including ABAG
representative
representation),
to that committee.
and he indicated he would serve as Sausalito' s
Councilmember Hoffman reported that the Sister Cities program held an awards ceremony at which recognitions were given to the Theodoresis family, Yoshi Tomai.
Gil and Roxanne Purcell for their significant service to Sausalito and its sister -city relationships.
6B. Future Agenda Items
Vice Mayor Blaustein requested that a future agenda item be scheduled to discuss possible City policies regulating pesticide use in the community, noting concerns raised by a local business about toxic spraying near their building.
Councilmember Hoffman requested that a future agenda item be scheduled to consider adopting a Comprehensive Annual Financial Report so the City can receive more detailed financial reporting beyond the standard audit.
The Council agreed to add June 30th and August 4th to the calendar as " hold" dates in case they are needed for budget adoption or other time -sensitive business. 6C. Minutes from Boards, Commissions, and Committees
6D. Other reports of significance
6E. Public Comment on Items 6A -6D
Babette McDougal provided public comments.
6F. Appointments ( if any)
Mayor Woodside designated himself as Sausalito' srepresentative to the Mayors and Councilmembers Selection Committee,
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The Council unanimously appointed Trisha Smith to serve a new three- yearterm as Sausalito' srepresentative on the Marin County Commission on Aging.
7. ADJOURNMENT
Mayor Woodside adjourned the meeting at 8: 51 p. m.
Respectfully submitted,
Deirdre Coyne
Deputy City Clerk
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