First Hill Bars
Walking distance from Town Hall - any recommendations?
Thoughts on the Fireside Room @ the Sorrento?
That is a nice, sedate place for a dignified drink on a comfy couch; esp. great on a rainy day.
If you want something more lively, walk up the hill a bit further to Vito's - an old-school (but renovated) watering hole with great atmo and drinks, and sometimes live entertainment. Big cushy booths, where you might expect to find the Godfather holding court.