Agenda packet — Carmel-by-the-Sea City Council, May 7, 2024 (part 2 of 3)

5:32 PM
01/15/24
Accrual Basis

TOR HOUSE FOUNDATION(THF)
Balance Sheet Prev Year Comparison As of December 31, 2023 Dec 31, 23 Dec 31, 22 $ Change
Deferred Maintenance Fund
Renovations 1,280.01 1,280.01 0.00
Deferred Maintenance Fund - Other 65,601.90 78,017.90 (12,416.00) Total Deferred Maintenance Fund 66,881.91 79,297.91 (12,416.00) Memorial Gift Fund 33,101.52 33,101.52 0.00
Payroll Liabilities 5,438.84 3,214.79 2,224.05
Sales Tax Payable 346.11 100.22 245.89
Total Other Current Liabilities 113,816.32 126,293.44 (12,477.12) Total Current Liabilities 115,443.14 127,459.96 (12,016.82) Total Liabilities 115,443.14 127,459.96 (12,016.82)
Equity
General Fund 457,793.24 457,793.24 0.00
Opening Balance Equity 40,312.00 40,312.00 0.00
Retained Earnings 117,286.17 115,130.20 2,155.97
Net Income 1,039.39 2,155.97 (1,116.58)
Total Equity 616,430.80 615,391.41 1,039.39
TOTAL LIABILITIES & EQUITY 731,873.94 742,851.37 (10,977.43)

Page 2 of 2 ends

Attachment 15
Actual Budget Variance
Fav(Unfav)
General Fund Income:

Earned Income
Sales 12,068 8,650 3,418
Tours 40,335 22,300 18,035
Membership Dues 14,596 14,750 (154)
Grants 25,000 10,000 15,000 CA Relief Grant for Non-Profits Bennet $10,000
Interest Income 8,552 3,950 4,602 Interest rate increase on rollover, Additional Investment - mid year
Contributions 23,102 12,000 11,102

Poetry prize Income 7,298 4,400 2,898 $4,000 transfered from MCGives Garden Party Income 1,200 3,750 (2,550)
Fall Festival Income 1,244 2,250 (1,006)
Poets & Speakers 0 0 0
Misc. Income 45 0 45
Year End Appeal 31,160 36,000 (4,840) $4,000 transfered to Poetry Prize Income from MCGives
Sub-total General Fund Income 164,600 118,050 46,550
Transfer to Restricted Funds (10,000) (10,000) 0 Bennet Grant to Defrred Maint.

Total Current Period Income 154,600 108,050 46,550
General Fund Expenses:

Property Expense 38,150 30,780 (7,370) Rug Repair, Misc. Electrical Gift Shop Expense 3,093 1,840 (1,253)
Garden Party Expense 3,267 2,750 (517)
Fall Festival Expense 12,229 7,550 (4,679)
Poets & Speakers Expense 5,343 3,075 (2,268)
Poetry Prize Expense 5,679 2,950 (2,729)
Gen. & Adm. Expense 85,823 48,059 (37,764) New Computer $2,411, Software $1,445 Postage from 2022-$699, NHL $1,975
Underestimated Wages $19,981, Book Purchase
Supplies $1,775
Sub-total General Fund Expenses 153,584 97,004 (56,580) Transfer From Restricted Funds 0 0 0
Total Current Period Gen. Fund Expenses 153,584 97,004 (56,580) Net Surplus(Deficit) 1,016 11,046 (10,030)

TOR HOUSE FOUNDATION
OPERATING SUMMARY Full Year 2023
Attachment 15
4/5/24, 2:11 PM Organization Information
https://docs.google.com/forms/d/1_qtAEKhlgMNeGViy-O3UbomAxiNy4tTdXOLyu8gcQJk/edit#response=ACYDBNjFJquAYbtwPs7WVCFsWORIv1JP… 1/6 Email *
[email protected]
The Carmel Heritage Society
Constantine Theodosion/Executive Director
PO Box 701, Carmel, CA 93921
(831) 624-4447
Organization Information
Enter applicant's email below:

Name of Applicant Organization: *
Name and Position/Title of staff applying on behalf of the Organization: * Organization Mailing Address: *
Telephone Number: *
4/5/24, 2:11 PM Organization Information
https://docs.google.com/forms/d/1_qtAEKhlgMNeGViy-O3UbomAxiNy4tTdXOLyu8gcQJk/edit#response=ACYDBNjFJquAYbtwPs7WVCFsWORIv1JP… 2/6 [email protected]
Carmel-by-the-Sea
0-12
13-17
18-24
25-34
35-44
45-54
55-64
65 and over
3000 residents
Yes
No
Email: *
Geographic Area(s) the Organization serves: *
Age groups served by the Organization: *
Number of Carmel-by-the-Sea (93921) residents the Organization serves: * Is this Organization incorporated as a Nonprofit Organization? * Attachment 16
4/5/24, 2:11 PM Organization Information
https://docs.google.com/forms/d/1_qtAEKhlgMNeGViy-O3UbomAxiNy4tTdXOLyu8gcQJk/edit#response=ACYDBNjFJquAYbtwPs7WVCFsWORIv1JP… 3/6 Yes
No
Project/Program Details
Carmel Heritage Society Exhibits
$3000.00
Comstock Hansel and Gretel Exhibit
This exhibit is part of the Hugh Comstock 100th Anniversary of Hansel and Gretel. It will provide funding for an exhibit at the First Murphy House and a lecture.

Is this Organization a Carmel school? *
Project/Program Name: *
Amount requested (up to $3,000): *
Please provide the name of the project, program, or service that the Carmel-by-the-Sea grant ("grant") funding will be used to support.
*
Please provide a description of the project, program, or service that the grant funding will be used to support.
*
4/5/24, 2:11 PM Organization Information
https://docs.google.com/forms/d/1_qtAEKhlgMNeGViy-O3UbomAxiNy4tTdXOLyu8gcQJk/edit#response=ACYDBNjFJquAYbtwPs7WVCFsWORIv1JP… 4/6 The exhibit and lecture will benefit the Carmel-by-the-Sea by celebrating the 100 anniversary of the Hansel and Gretel House built by Hugh Comstock and educating the community on his place in Carmel's architectural history.

The funds would be used to create a wall exhibit, posters, brochures, and other related materials.

Attachments
To complete your application, kindly email the following four (4) attachments to [email protected].

Please be sure your organization's name is in the subject line of the email and on all attachments. 1) Proof of non-pro¦t status: provide a copy of the organization's 501(c) letter from the IRS. 2) Budget Plan for the Grant: provide a detailed line item budget plan explaining how the grant funds will be utilized for the project, program, or service.
3) Current Annual Operating Budget: provide an up to date operating budget that provides detailed information on your organization's annual revenue sources. 4) Past two year's ¦nancial statements: provide a copy of the past two year's ¦nancial statements , featuring balance sheets, revenue sources, pro¦t/loss statements, and a breakdown of the percentage of revenue allocated for administration, salaries, and program costs.

Please describe the specific benefit to the Carmel-by-the-Sea community that your project, program, or service will provide. Be sure to include the target population and number of community members that will be served.
*
Please describe how your organization would use the funding awarded, including equipment or services that would be purchased and why.
*
Attachment 16
4/5/24, 2:11 PM Organization Information
https://docs.google.com/forms/d/1_qtAEKhlgMNeGViy-O3UbomAxiNy4tTdXOLyu8gcQJk/edit#response=ACYDBNjFJquAYbtwPs7WVCFsWORIv1JP… 5/6 2) Utilization of City Council Discretionary Funds Grant Program funds for ineligible activities/services, as delineated in City Council Policy C16-: City Council Discretionary Funds Grant Program, is prohibited. 3) Receipt of City Council Discretionary Funds Grant Program funding does not guarantee an automatic annual allocation.
4) Any allocated City Council Discretionary Funds Grant Program funding must be utilized solely as speci¦ed in the application form.
5) The applicant organization must sign an agreement with the City of Carmel-by-the-Sea, as provided by the City, by a duly authorized representative to receive the funds. 6) All awarded funds must be expended by the end of the 2024-2025 ¦scal year (June 30, 2025). 7) Within 30 days after the conclusion of the Project/Program/Service or by June 30, 2025, the recipient must furnish a comprehensive account with supporting documentation regarding fund usage. 8) Any unspent funds or funds not properly documented as per the signed agreement must be returned to the City.
9) The City reserves the right to conduct audits and/or request additional documentation to substantiate fund expenditure. Failure to provide adequate documentation may impact future funding prospects.

I, acting on behalf of the aforementioned nonpro¦t applicant organization, certify that I have read, understand and agree that the aforesaid information is accurate, factual, and current.

Constantine (Dean) Theodosion, Executive Director
Carmel Heritage Society
MM
/
DD
/
YYYY
This form was created inside of Carmel-by-the-Sea.

Name and Title of staff applying on behalf of the Organization * Organization name *
Date *
04 05 2024
4/5/24, 2:11 PM Organization Information
https://docs.google.com/forms/d/1_qtAEKhlgMNeGViy-O3UbomAxiNy4tTdXOLyu8gcQJk/edit#response=ACYDBNjFJquAYbtwPs7WVCFsWORIv1JP… 6/6 Forms
Attachment 16
2024 Comstock
Exhibition -
Proposed Budget

Brochure-printing500 $268.00
Brochure-shipping $37.00
Invitations to
opening $130.61
Food for Reception $318.96
Pine Cone Ad $375.00
Lecturer $200.00
Total $1,329.57
Attachment 16

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OkQGIYQ[Ih][jPQhQhhkIdgQ]gj]jPIGQhEkhhQ][0PI
DkGOIjqQYYDIgIpQhIG<NjIgjPID]<gGGIEQhQ][j]gINYIEj d<sg]YY<[Gd<sg]YYj<rIhjP<j<gI[]jX[]q[<jjPQhjQZI Attachment 16
y
Attachment 16
Total
Income
Covid relief 5,000.00
Endowment Withdrawal 10,000.00

EVENT REVENUE
House Tour 32,820.29
House Tour Reception Tickets 1,575.00
House Tour Sponsorships 10,000.00
Total House Tour $ 44,395.29
Inns Tour 0.00
Total EVENT REVENUE $ 44,395.29
Other Types of Income
Miscellaneous Revenue 0.13
Total Other Types of Income $ 0.13
Postage Revenue 25.00

PROGRAM INCOME
Membership Dues 7,433.17
Rental Income 400.00
Total PROGRAM INCOME $ 7,833.17

SALES REVENUE
Book Sales 443.70
DVD 165.00
Total SALES REVENUE $ 608.70

UNRESTRICTED CONTRIBUTIONS
Donation 3,215.01
Year End Gift 4,630.00
Total UNRESTRICTED CONTRIBUTIONS $ 7,845.01
Total Income $ 75,707.30
Gross Profit $ 75,707.30
Expenses
Accounting Fees 1,798.58
Bank Card Fees 2,658.35
Books, Subscriptions, Reference 605.00
Business Expenses 1,936.78
Filing Fees 150.00
Total Business Expenses $ 2,086.78
Computer Costs 1,257.16
Contract Services 1,540.00
Dues & Subscriptions 389.05
Equip Rental and Maintenance 600.00
House Tour 17,136.35
Fees 1,125.00
Carmel Heritage Society
Profit and Loss
January - December 2023
Printing 502.24
Publicity 1,464.50
Supplies for tours 6,480.65
Total House Tour $ 26,708.74
Inns Tour 98.66
Publicity 425.00
Supplies for Inn Tours 1,307.68
Total Inns Tour $ 1,831.34
Insurance - Liability, D and O 3,935.30
Office & Administration 670.00
Office Supplies 53.58
Other Types of Expenses 7.49
Outside Contract Services 550.00
Payroll Expenses 0.00
Payroll Taxes 2,652.84
Taxes 1,085.20
Wages 22,400.00
Total Payroll Expenses $ 26,138.04
Postage, Mailing Service 883.76
Printing 438.54
Reconciliation Discrepancies -1,830.00
Sales Tax 26.61
Supplies 1,871.08
Telephone, Telecommunications 4,685.77
Unapplied Cash Bill Payment Expense 0.00
Utilities 945.42
Website Costs 1,304.80
Total Expenses $ 79,155.39
Net Operating Income -$ 3,448.09
Other Expenses
Reconciliation Discrepancies-1 1,238.38
Total Other Expenses $ 1,238.38
Net Other Income -$ 1,238.38
Net Income -$ 4,686.47
Wednesday, Jan 03, 2024 02:09:16 PM GMT-8 - Cash Basis
Attachment 16
4/5/24, 2:12 PM Organization Information
https://docs.google.com/forms/d/1_qtAEKhlgMNeGViy-O3UbomAxiNy4tTdXOLyu8gcQJk/edit#response=ACYDBNhvPuy7EeDHJw1LaXnq-jH9H7ffph… 1/8 Email *
[email protected]
Carmel Cares
Dale Byrne/President
[email protected]
831 233-2288
Organization Information
Enter applicant's email below:

Name of Applicant Organization: *
Name and Position/Title of staff applying on behalf of the Organization: * Organization Mailing Address: *
Telephone Number: *
4/5/24, 2:12 PM Organization Information
https://docs.google.com/forms/d/1_qtAEKhlgMNeGViy-O3UbomAxiNy4tTdXOLyu8gcQJk/edit#response=ACYDBNhvPuy7EeDHJw1LaXnq-jH9H7ffph… 2/8 [email protected]
City of Carmel
0-12
13-17
18-24
25-34
35-44
45-54
55-64
65 and over
All residents and visitors
Yes
No
Email: *
Geographic Area(s) the Organization serves: *
Age groups served by the Organization: *
Number of Carmel-by-the-Sea (93921) residents the Organization serves: * Is this Organization incorporated as a Nonprofit Organization? * Attachment 17
4/5/24, 2:12 PM Organization Information
https://docs.google.com/forms/d/1_qtAEKhlgMNeGViy-O3UbomAxiNy4tTdXOLyu8gcQJk/edit#response=ACYDBNhvPuy7EeDHJw1LaXnq-jH9H7ffph… 3/8 Yes
No
Project/Program Details
Carl Cherry Center for the Arts Statuary Garden Restoration Project 3000
Our mission is to keep Carmel beautiful, safe, and inviting. This project satisfies all three.

Is this Organization a Carmel school? *
Project/Program Name: *
Amount requested (up to $3,000): *
Please provide the name of the project, program, or service that the Carmel-by-the-Sea grant ("grant") funding will be used to support.
*
4/5/24, 2:12 PM Organization Information
https://docs.google.com/forms/d/1_qtAEKhlgMNeGViy-O3UbomAxiNy4tTdXOLyu8gcQJk/edit#response=ACYDBNhvPuy7EeDHJw1LaXnq-jH9H7ffph… 4/8 A portion of the Cherry Center gardens has been restored and made into a wonderful environment for residents and visitors to enjoy. It is a peaceful, beautiful place that was made possible by dedicated volunteers who have worked tirelessly over the past four years. However, there is a large area called the Sculpture Garden that is reasonably barren and needs improvement. It is described on the Cherry website as “the Geraldine M. and Tom R. Houston Memorial Sculpture Garden which provides an exhibition of contemporary American outdoor sculpture. The garden contains five or more artworks at any given time, including works on loan by preeminent Monterey County artists. The informal garden includes a canopy of Monterey pine and native live oak, flowering trees and perennials. The circular path features seating for rest and reflection amongst the oaks.”
The project improvements include:
- Adding an efficient and automatic irrigation system.
- Acquiring and planting native shrubs to place along the fence line. - Refreshing the pathway and pathway borders to make them safer for mobility impaired (not necessarily ADA).
- Removing any remaining invasive species and replacing them with native plants appropriate for the setting.
- Trimming the trees in the park to make them safe by removing any dead or dangerous branches and/or removing trees that are recommended for removal by City Forester. We believe that most of this has already been done following winter storms.
- Ongoing maintenance of the park will continue to be performed by Carmel Cares volunteers and any required fertilizer, tools, and any other professional landscape assistance will be paid by donated funds.

Please provide a description of the project, program, or service that the grant funding will be used to support.
*
Attachment 17
4/5/24, 2:12 PM Organization Information
https://docs.google.com/forms/d/1_qtAEKhlgMNeGViy-O3UbomAxiNy4tTdXOLyu8gcQJk/edit#response=ACYDBNhvPuy7EeDHJw1LaXnq-jH9H7ffph… 5/8 Carmel has several public parks throughout the community. While the Cherry Center is not owned by the City of Carmel, the gardens there are very accessible to the public and are a unique space due to its proximity to the Cherry Center’s art gallery and theater. Over the last 4 years, volunteers have created beautiful gardens that provide a wonderful and very affordable place for gatherings for organizations, families, and a very peaceful place in this beautiful Carmel neighborhood to relax and read a book and it is a welcoming environment for patrons of the gallery and theater.

The volunteer leaders of this project, Nance and Denny Hoeft, have worked diligently over the past 4 years and would like to extend their work to the larger Sculpture Garden which does not have an irrigation system.

This garden will provide a place for them and other volunteers to apply their skills to create an incredible environment for people to enjoy for years into the future.

By using native plants, this park will become another pollinator-friendly environment that will encourage residents to use similar plants and connect pollinators to native plant gardens at Forest Theater and future ones on the Ocean Avenue Medians, Scenic Pathway and those at the North Dunes. We call it the “Pollinator Pathway”.

As an organization, Carmel Cares serves the entire City of Carmel, and our project and maintenance work gives a purpose to our volunteers with the results of their work being enjoyed by residents and visitors. Our volunteers also come from surrounding communities, and they take back their experiences to assist those cities as well.

Please describe the specific benefit to the Carmel-by-the-Sea community that your project, program, or service will provide. Be sure to include the target population and number of community members that will be served.
*
4/5/24, 2:12 PM Organization Information
https://docs.google.com/forms/d/1_qtAEKhlgMNeGViy-O3UbomAxiNy4tTdXOLyu8gcQJk/edit#response=ACYDBNhvPuy7EeDHJw1LaXnq-jH9H7ffph… 6/8 This grant will provide seed funds for Carmel Cares to perform all of the items in the Project Description above. Work will be done by licensed contractors and volunteers.

All material and labor costs above this $3,000 grant will be funded by Carmel Cares through donated funds.

Where possible, volunteers and additional in-kind donations of professional labor, plants, and materials will be used for implementation of this project. If necessary, prior to project start, a detailed plan will be submitted to Carmel’s Forest and Beach Commission or Carmel’s Planning Department for approval and then it will be permitted through Carmel’s Public Works and Building and Planning Departments, if required.

Estimated Project Budget
Cherry Center for the Arts Restoration Project
July 1, 2024 - June 2025
Description Amount
Irrigation System parts and labor 2,500
Plants 1,500
Mulch 300
Pathway renovation materials 1,000
Tree work 1,000
Other landscaping services 1,000
Estimated Total 7,300
Attachments
To complete your application, kindly email the following four (4) attachments to [email protected].

Please describe how your organization would use the funding awarded, including equipment or services that would be purchased and why.
*
Attachment 17
4/5/24, 2:12 PM Organization Information
https://docs.google.com/forms/d/1_qtAEKhlgMNeGViy-O3UbomAxiNy4tTdXOLyu8gcQJk/edit#response=ACYDBNhvPuy7EeDHJw1LaXnq-jH9H7ffph… 7/8 Certification and Signature
The Applicant Organization hereby acknowledges and agrees to the following terms:
1) Compliance with City Council Discretionary Funds Grant Program requirements is mandatory, encompassing submission deadlines and payment disbursements. 2) Utilization of City Council Discretionary Funds Grant Program funds for ineligible activities/services, as delineated in City Council Policy C16-: City Council Discretionary Funds Grant Program, is prohibited. 3) Receipt of City Council Discretionary Funds Grant Program funding does not guarantee an automatic annual allocation.
4) Any allocated City Council Discretionary Funds Grant Program funding must be utilized solely as speci¦ed in the application form.
5) The applicant organization must sign an agreement with the City of Carmel-by-the-Sea, as provided by the City, by a duly authorized representative to receive the funds. 6) All awarded funds must be expended by the end of the 2024-2025 ¦scal year (June 30, 2025). 7) Within 30 days after the conclusion of the Project/Program/Service or by June 30, 2025, the recipient must furnish a comprehensive account with supporting documentation regarding fund usage. 8) Any unspent funds or funds not properly documented as per the signed agreement must be returned to the City.
9) The City reserves the right to conduct audits and/or request additional documentation to substantiate fund expenditure. Failure to provide adequate documentation may impact future funding prospects.

I, acting on behalf of the aforementioned nonpro¦t applicant organization, certify that I have read, understand and agree that the aforesaid information is accurate, factual, and current.

Dale Byrne, President
Carmel Cares
Name and Title of staff applying on behalf of the Organization * Organization name *
4/5/24, 2:12 PM Organization Information
https://docs.google.com/forms/d/1_qtAEKhlgMNeGViy-O3UbomAxiNy4tTdXOLyu8gcQJk/edit#response=ACYDBNhvPuy7EeDHJw1LaXnq-jH9H7ffph… 8/8 MM
/
DD
/
YYYY
eated inside of Carmel-by-the-Sea.

Date *
04 05 2024
Forms
Attachment 17
All material and labor costs above this $3,000 grant will be funded by Carmel Cares through donated funds. Where possible, volunteers and additional in-kind donations of professional labor, plants, and materials will be used for implementation of this project. If necessary, prior to project start, a detailed plan will be submitted to Carmel’s Forest and Beach Commission or Carmel’s Planning Department for approval and then it will be permitted through Carmel’s Public Works and Building and Planning Departments, if required.

Estimated Project Budget
Cherry Center for the Arts Restoration Project
July 1, 2024 - June 2025

Description Amount
Irrigation System 2,500
Plants 1,500
Mulch 300
Pathway renovation 1,000
Tree work 1,000
Professional landscaping services 1,000
Estimated Total $7,300
Attachment 17

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Attachment 17
4/8/24, 12:33 PM Organization Information
https://docs.google.com/forms/d/1_qtAEKhlgMNeGViy-O3UbomAxiNy4tTdXOLyu8gcQJk/edit#response=ACYDBNil6rW3QX83CGrvT-BO2XzwzE1VR… 1/7 Email *
[email protected]
Community Human Services
Anab Mohamed/Grants Manager
P.O Box 3076 Monterey, CA 93942
(831) 658-3811
Organization Information
Enter applicant's email below:

Name of Applicant Organization: *
Name and Position/Title of staff applying on behalf of the Organization: * Organization Mailing Address: *
Telephone Number: *
4/8/24, 12:33 PM Organization Information
https://docs.google.com/forms/d/1_qtAEKhlgMNeGViy-O3UbomAxiNy4tTdXOLyu8gcQJk/edit#response=ACYDBNil6rW3QX83CGrvT-BO2XzwzE1VR… 2/7 [email protected]
Monterey County
0-12
13-17
18-24
25-34
35-44
45-54
55-64
65 and over
In FY22-23, we served 19 Carmel-by-the-Sea residents (93921 zip code), and another 31 in 93922, 93923, and 93924 zip codes.

Email: *
Geographic Area(s) the Organization serves: *
Age groups served by the Organization: *
Number of Carmel-by-the-Sea (93921) residents the Organization serves: * Attachment 18
4/8/24, 12:33 PM Organization Information
https://docs.google.com/forms/d/1_qtAEKhlgMNeGViy-O3UbomAxiNy4tTdXOLyu8gcQJk/edit#response=ACYDBNil6rW3QX83CGrvT-BO2XzwzE1VR… 3/7 Yes
No
Yes
No
Project/Program Details
Casa de Noche Buena emergency shelter for homeless unaccompanied women and families with children $3,000
Funding will be used for general operating support of Casa de Noche Buena emergency shelter for homeless unaccompanied women and families with children. This includes providing case management and rapid rehousing services to guests during their 90-180 day stays, as well as meals, internet and computer access, playroom and backyard, and assistance accessing employment, health services, education, and permanent housing.

Is this Organization incorporated as a Nonprofit Organization? * Is this Organization a Carmel school? *
Project/Program Name: *
Amount requested (up to $3,000): *
Please provide the name of the project, program, or service that the Carmel-by-the-Sea grant ("grant") funding will be used to support.
*
4/8/24, 12:33 PM Organization Information
https://docs.google.com/forms/d/1_qtAEKhlgMNeGViy-O3UbomAxiNy4tTdXOLyu8gcQJk/edit#response=ACYDBNil6rW3QX83CGrvT-BO2XzwzE1VR… 4/7 Casa de Noche Buena, an emergency shelter for homeless unaccompanied women and families with children, provides up to 35 beds of emergency shelter depending on the sizes of the families. Guests may stay up to three months, with an additional 3 months possible if needed. This period of respite allows our dedicated case managers /housing navigators to work with our guests to get them the help they need, including healthcare, a permanent home, a job, education, and any support service they may need.

Case managers/housing navigators meet with our shelter guests, help them establish goals, and connect them to the services and information they need to exit out of homelessness. They help find housing and arrange for financial assistance to move in, which can include direct payments to landlords for first month’s rent, security deposits, moving expenses, furnishings and more.

Urgently needed emergency homeless shelters like Casa de Noche Buena provide safety and support to help our vulnerable guests get back on their feet and find a safe, permanent place to live.

Our shelter provides temporary living arrangements that include meals, full baths, laundry, mail service, computers, internet access, and inside and outside play areas for the children. Children also benefit from children-specific activities that include tutoring and homework help, birthday parties, arts and crafts, games, books, movies, TV shows, story time, and more.

Cribs and toddler beds are available. All shelter guests have internet access, which the youth often need for school, and our case managers work with school district homeless liaisons to coordinate services, meals and transportation to support the youths’ academic success.

Please provide a description of the project, program, or service that the grant funding will be used to support.
*
Attachment 18
4/8/24, 12:33 PM Organization Information
https://docs.google.com/forms/d/1_qtAEKhlgMNeGViy-O3UbomAxiNy4tTdXOLyu8gcQJk/edit#response=ACYDBNil6rW3QX83CGrvT-BO2XzwzE1VR… 5/7 The Monterey Peninsula has one of the most expensive housing markets in the country. Water restrictions further exacerbate the lack of affordable housing in our area. This has negative impacts for the community as a whole and for local businesses. It is difficult to hire for service jobs when the cost of living is so high, and becoming homeless makes it very difficult to continue to hold a job (though studies show that nearly half of shelter guests are employed.) Because housing costs are so high, many households are one emergency away from losing their home - it could be an unexpected job loss, a work-related or car accident or fall, an illness or unexpected medical expenses, death of a family member, or a sudden raise in rent, often when properties pass to new owners or family members. This unfortunately happens in every single community on the Monterey Peninsula.

We serve unhoused Carmel residents in need of help as well as individuals who work in Carmel, often as a care provider or in hospitality, but are currently homeless due to the high cost and low availability of housing in our region.

Casa de Noche Buena does more than provide shelter. We have dedicated case managers who help our guests find a permanent home by helping them get the resources and help they need, and by providing funds to cover rental and utility deposits, first month’s rent, application and moving fees directly to the providers, to help overcome the cost of moving into a home.

Homelessness is a national crisis around the country and here in Monterey County, driven by increasingly expensive housing and costs of living. Just in the past year the number of homeless individuals nationally went up 12%. Older women, families with children, and youth 24 and under are three of the most vulnerable homeless populations, and those are the ones we focus on in Monterey County.

Casa de Noche Buena addresses the barriers that women face in securing homeless housing options by offering a low barrier emergency shelter that follows a “Housing First” model—as such income, employment, sobriety, mandatory for program participation and other eligibility requirements are not imposed— so that homeless women and families with children can find a safe place to rebuild their lives.

Childhood abuse, domestic violence, poverty, and sexual violence are homelessness risk factors for women, and survivors often struggle with mental health issues, substance abuse and risky behaviors. We recognize that these factors intersect, so we offer wrap-around services and referrals to ancillary services for our guests to ensure they get the help they need to get back on their feet.

In FY22-23, we sheltered and provided case management and housing support for 82 guests at Casa de Noche Buena, including 42 single women, 14 adults with children, and 26 children. We provided a total of almost 8,000 bed nights, and over 15,000 nutritious meals.

Please describe the specific benefit to the Carmel-by-the-Sea community that your project, program, or service will provide. Be sure to include the target population and number of community members that will be served.
*
4/8/24, 12:33 PM Organization Information
https://docs.google.com/forms/d/1_qtAEKhlgMNeGViy-O3UbomAxiNy4tTdXOLyu8gcQJk/edit#response=ACYDBNil6rW3QX83CGrvT-BO2XzwzE1VR… 6/7 The funds will be used to for general operating support for our shelter, which includes supporting our case managers/housing navigators who directly work with shelter guests to provide case management, and the recurring costs of maintaining Casa de Noche Buena, including providing meals, utilities, and support staff.

Attachments
To complete your application, kindly email the following four (4) attachments to [email protected].

Certification and Signature
The Applicant Organization hereby acknowledges and agrees to the following terms:
1) Compliance with City Council Discretionary Funds Grant Program requirements is mandatory, encompassing submission deadlines and payment disbursements. 2) Utilization of City Council Discretionary Funds Grant Program funds for ineligible activities/services, as delineated in City Council Policy C16-: City Council Discretionary Funds Grant Program, is prohibited. 3) Receipt of City Council Discretionary Funds Grant Program funding does not guarantee an automatic annual allocation.
4) Any allocated City Council Discretionary Funds Grant Program funding must be utilized solely as speci¦ed in the application form.

Please describe how your organization would use the funding awarded, including equipment or services that would be purchased and why.
*
Attachment 18
4/8/24, 12:33 PM Organization Information
https://docs.google.com/forms/d/1_qtAEKhlgMNeGViy-O3UbomAxiNy4tTdXOLyu8gcQJk/edit#response=ACYDBNil6rW3QX83CGrvT-BO2XzwzE1VR… 7/7 5) The applicant organization must sign an agreement with the City of Carmel-by-the-Sea, as provided by the City, by a duly authorized representative to receive the funds. 6) All awarded funds must be expended by the end of the 2024-2025 ¦scal year (June 30, 2025). 7) Within 30 days after the conclusion of the Project/Program/Service or by June 30, 2025, the recipient must furnish a comprehensive account with supporting documentation regarding fund usage. 8) Any unspent funds or funds not properly documented as per the signed agreement must be returned to the City.
9) The City reserves the right to conduct audits and/or request additional documentation to substantiate fund expenditure. Failure to provide adequate documentation may impact future funding prospects.

I, acting on behalf of the aforementioned nonpro¦t applicant organization, certify that I have read, understand and agree that the aforesaid information is accurate, factual, and current.

Anab Mohamed, Grants Manager
Community Human Services
MM
/
DD
/
YYYY
This form was created inside of Carmel-by-the-Sea.

Name and Title of staff applying on behalf of the Organization * Organization name *
Date *
04 05 2024
Forms
Attachment 18
FY24-25
Revenues:

Contracts 100,000 $
Grants 370,000
CFMC Special Purpose Fund 100,000
Joint Powers Agency 25,000
Donations 50,000
Other Income -
Total Revenues 645,000 $
Expenses:

Salaries 385,379 $ 3 full-time staff and 5 part-time staff Employee Benefits 54,219 Employee benefits average 14% of salaries Occupancy Expenses 92,479 Rent, utilities, maintenance and repairs Professional Fees 37,080 Housing Navigator provided by Gathering for Women Office & Program Supplies 13,761 Shelter supplies such as bedding, laundry, etc.

Food 75,705 3 meals a day provided to all shelter guests Depreciation 157,946 Non-cash item
Equipment Leases 2,410 Leased printer
Communications 4,820 Phone and internet
Insurance 6,983 Commercial general, property and cyber coverage Conferences & Training 803 Staff training
Vehicles & Mileage 3,054 Fuel and maintenance for shelter van Dues, Licenses & Publications 2,200 Health Dept. license, homelessness sw licenses Advertising & Marketing 515 Flyers
Client Assistance 45,000 Rental assistance and other rapid rehousing funds Administrative Costs 150,089 17.01% Admin Fees forecast for FY24-25 Total Expenses 1,032,444 $
Net Surplus/(Deficit) (387,444) $
Budget Plan:

As of April 2024, we have raised $645,000 of the $1,032,444 required to operate the shelter in FY24-25 (beginning July 1, 2024). Aside from the Food and Client Assistance line items, additional funding is required for all of the line items. A $3,000 grant from Carmel-by-the-Sea would be used to help cover these operating deficits.

Community Human Services
Casa de Noche Buena Program Budget & Budget Plan
FY24-25
Total
Agency
Revenues:

Contracts 8,975,580 $
Program Fees 150,772
Private Pay 95,556
Grants 2,789,268
Joint Powers Agency Support 261,200
Donations 685,051
Total Revenues 12,957,427 $
Expenses:

Salaries 7,476,505 $
Employee Benefits 1,581,923
Occupancy Expenses 1,136,905
Professional Fees 466,589
Office & Program Supplies 152,880
Food 271,260
Depreciation 414,347
Equipment Leases 34,400
Communications 99,744
Insurance 86,035
Interest 44,173
Medical Supplies & Medications 96,870
Conferences & Training 64,395
Vehicles & Mileage 54,310
Dues, Licenses & Publications 99,738
Advertising & Marketing 228,944
Client Assistance 150,987
Administrative Costs -
Total Expenses 12,460,005 $
Net Surplus/(Deficit) 497,422 $
Note:

Net Surplus for the Agency of $497,422 assumes 100% fulfillment of all contracts in the Mental Health and Substance Use Disorder programs. Actual Net Surplus is likely to be significantly less.

Community Human Services
Total Agency Operating Budget
FY2023-2024
Attachment 18
Attachment 18
Attachment 18

COMMUNITY HUMAN SERVICES
MANAGEMENT’S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30, 2023
9 COMPARATIVE ANALYSIS (Continued)
Statement of Net Position (Continued)
2023 2022 Changes % Changes
Liabilities
Current liabilities $ 15,913,255 $ 13,191,867 $ 2,721,388 20.6% Long-term obligations 1,026,261 2,135,343 (1,109,082) (51.9%) Total Liabilities 16,939,516 15,327,210 1,612,306 10.5% Net Position
Net investment in
capital assets 7,892,759 4,352,757 3,540,002 81.3%
Restricted 2,766,959 2,414,014 352,945 14.6%
Unrestricted (1,775,117) (396,901) (1,378,216) 347.2%
Total Net Position $ 8,884,601 $ 6,369,870 $ 2,514,731 39.5% Major Factors Affecting the Statement of Net Position
Current year’s net position increased by $2,514,731 from the prior year. The current year increase was related primarily to slight increases in public grants and contracts, and a large increase in private grants and contributions due to a major donation and capital campaign in fiscal year 2023 for the Shuman HeartHouse capital project.

Statement of Revenues, Expenses and Changes in Net Position A comparative summary of the Agency’s Statement of Revenues, Expenses and Changes in Net Position, which generally reflects its results of operations as of June 30, 2023, is as follows:
2023 2022 Changes % Changes
Revenues
Program revenues:

Public grants and contracts $ 9,841,124 $ 7,728,963 $ 2,112,161 27.3% Charges and fees 266,249 410,670 (144,421) (35.2%)
Private grants and
contributions 2,518,117 561,081 1,957,036 348.8%
Joint Powers Agency
support 238,000 181,875 56,125 30.9%
Other revenue / (losses) 89,883 (5,210) 95,093 (1,825.2%) Total Revenues 12,953,373 8,877,379 4,075,994 45.9%

COMMUNITY HUMAN SERVICES
MANAGEMENT’S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30, 2023
10 COMPARATIVE ANALYSIS (Continued)
Statement of Revenues, Expenses and Changes in Net Position (Continued) 2023 2022 Changes % Changes
Expenses
General $ 1,496,081 $ 1,249,787 $ 246,294 19.7%
Off Main Clinic Methadone
Program 1,447,087 1,310,137 136,950 10.5%
Genesis House Residential
Program 1,567,694 1,266,181 301,513 23.8%
Access to Treatment Outpatient
Mental Health Program 801,668 593,372 208,296 35.1%
Monterey Peninsula Street
Outreach Program 349,693 380,698 (31,005) (8.1%)
Safe Passage Program 256,916 217,277 39,639 18.2%
MHSA Parent Education 94,260 114,986 (20,726) (18.0%)
DAISY Program 208,591 205,988 2,603 1.3%
Pathways to Safety Program - 115,685 (115,685) (100.0%) Outpatient Drug
Treatment Centers 655,178 519,942 135,236 26.0%
Safe Place Youth Shelter 131,092 115,924 15,168 13.1%
Supervised Visitation and
Exchange Program 39,391 31,303 8,088 25.8%
Domestic Violence/Anger
Management Program 34,507 24,769 9,738 39.3%
Sober Living 85,206 81,278 3,928 4.8%
SuperKids/Super Teens
Program 43,247 10,467 32,780 313.2%
Substance Use Prevention
Program 874,457 528,384 346,073 65.5%
Micro Innovation 10,739 26,444 (15,705) (59.4%)
Salinas Valley
Street Outreach Program 449,246 275,744 173,502 62.9%
Casa de Noche Buena 823,765 772,285 51,480 6.7%
Shuman HeartHouse 146,968 174,180 (27,212) (15.6%)
Short-Term Therapeutic Services 589,415 358,056 231,359 64.6% CONNECT 65,228 59,130 6,098 10.3%
Family Support Groups 49,055 45,172 3,883 8.6%
Outreach and Engagement 219,158 175,641 43,517 24.8%
Total Expenses 10,438,642 8,652,830 1,785,812 20.6%
Change in
Net Position $ 2,514,731 $ 224,549 $ 2,290,182 1,019.9% Attachment 18

COMMUNITY HUMAN SERVICES
MANAGEMENT’S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30, 2023
11 COMPARATIVE ANALYSIS (Continued)
Statement of Revenues, Expenses and Changes in Net Position (Continued) Major Factors Affecting the Statement of Revenues, Expenses and Changes in Net Position
Current year revenue increased by $4,075,994 from the prior year due primarily to increases in private grants and donations. A major donation was received in fiscal year 2023 for the Shuman HeartHouse capital project.

Current year expenses increased by $1,785,812 due primarily to new programs and higher salaries and benefits.

Capital Assets and Debt Administration
Capital Assets
As of June 30, 2023, the Agency had $8,724,234 invested in a variety of capital assets as reflected in the following schedule, which represents a net increase, including additions, deductions and depreciation, of 20.8% or $1,504,760 from the prior year. 2023 2022 Changes % Changes
Capital assets, not being
depreciated:

Land $ 1,948,995 $ 1,948,995 $ - 0.0%
Construction in Progress 1,885,802 103,371 1,782,431 1,724.3% Total capital assets, not
being depreciated 3,834,797 2,052,366 1,782,431 86.9%
Capital assets, being depreciated:

Buildings and Improvements 5,677,026 5,586,299 90,727 1.6% Office Equipment 36,294 36,294 - 0.0%
Transportation Equipment 251,588 251,588 - 0.0%
Furniture and Fixtures 186,118 186,118 - 0.0%
Leasehold Improvements 1,768,567 1,768,567 - 0.0%
Operating and Other Equipment 55,390 15,394 39,996 259.8% Total capital assets,
being depreciated 7,974,983 7,844,260 130,723 1.7%
Less accumulated depreciation 3,085,546 2,677,152 408,394 15.3% Total capital assets, being
depreciated – net 4,889,437 5,167,108 (277,671) (5.4%)
Total Capital Assets $ 8,724,234 $ 7,219,474 $ 1,504,760 20.8%

COMMUNITY HUMAN SERVICES
MANAGEMENT’S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30, 2023
12 COMPARATIVE ANALYSIS (Continued)
Capital Assets and Debt Administration (Continued)
Debt Outstanding
Long-term debt obligations at June 30, 2023 and 2022, consist of the following:
2023 2022 Changes % Changes
Note payable to Mechanics Bank
Collateralized by Sonoma
Avenue property $ 843,319 $ 874,859 $ (31,540) (3.6%)
Shuman HeartHouse Note - 2,000,000 (2,000,000) (100.0%) Less: current portion 843,319 2,030,434 (1,187,115) (58.5%) Total Long-Term Debt $ - $ 844,425 $ (844,425) (100.0%) Net decrease to long-term debt of $844,425, or 100.0%, is a result of the remaining portion of the note payable to Mechanics Bank maturing in October 2023.

Lease Obligations
Long-term lease obligations at June 30, 2023 and 2022, consist of the following:
2023 2022 Changes % Changes
Occupancy leases $ 1,281,815 $ 1,553,584 $ (271,769) (17.5%) Equipment leases 9,100 28,451 (19,351) (68.0%)
Less: current portion 264,654 291,117 (26,463) (9.1%)
Total Long-Term
Lease Obligations $ 1,026,261 $ 1,290,918 $ (264,657) (20.5%) Net decrease to long-term lease obligations of $264,657, or 20.5%, is a result of payments made during the year in accordance with occupancy and equipment lease agreements.

Attachment 18

CITY OF CARMEL-BY-THE-SEA

CITY COUNCIL
Staff Report
May 7, 2024

ORDERS OF BUSINESS
TO: Honorable Mayor and City Council Members
SUBMITTED BY: Jane Hogan, Accountant
APPROVED BY: Chip Rerig, City Administrator
SUBJECT:

Receive the Fiscal Year 2024-2025 Recommended Budget
RECOMMENDATION:

Receive the Fiscal Year 2024-2025 Recommended Budget.

BACKGROUND/SUMMARY:

In accordance with Carmel Municipal Code Section 3.06.020, prior to the beginning of each fiscal year, the City Administrator shall prepare and submit to the City Council a proposed operating and capital budget for the forthcoming fiscal year. The proposed budget, referred to as the Fiscal Year 2024-2025 (FY 24-25) Recommended Budget of $43.9 million is submitted for Council’s consideration. The proposed expenditures totaling $43.9 million, include the General Fund operating budget ($28.2 million), debt service ($519,100), pension unfunded liability ($2.4 million), capital budget ($12.6 million), and workers compensation ($127,000). The proposed revenues totaling $31.4 million include property taxes ($8.6 million), sales tax ($9.8 million), transient occupancy tax ($7.5 million), and other revenue ($5.5 million). The FY 24-25 Recommended Budget requires the use of $12.4 million in prior years’ savings ("fund balance") in order to balance, unless additional reductions are made.

The total fund balance is estimated to end the FY 23-24 at $37.3 million which includes all restricted, reserves and unassigned funds. City Council has the authority to tap into the unassigned fund balance ($15M).

As the economy continues to be unpredictable, the City remains cautious and anticipates a conservative increase in revenues for FY 24-25. Conversely, the City also expects its expenditures to grow in FY 24-25, primarily related to increased staffing, pension costs, general operating costs, and a robust Capital Improvement Plan. Highlights of the budget include:

Salary and benefit costs of approximately $16 million with minimal changes to FTE over prior FY (97.25 FTE total).

Pension costs of approximately $2.4 million for the City’s annual unfunded accrued liability (“UAL”) payment to CalPERS. Additionally, the City will restrict $1 million by transferring funds into the City’s established Section 115 Trust.

Services and supplies costs of approximately $12.4 million to fund contractual services, fuel and vehicle maintenance, supplies and materials, utilities, fire services, insurance premiums, Sunset Center, staff training, marketing and other operational costs. $12.6 million for capital projects and vehicle and equipment purchases in the following categories:
public safety ($3.4 million), streets/sidewalks ($4.0 million), facilities ($1.1 million), drainage ($1.7 million), green infrastructure ($275,000), environment ($1.1M), IT/Planning ($300,000), fleet ($150,000), libraries ($145,000) and CIP Contingency ($400,000). $519,100 for debt service payments and $127,000 for workers compensation claim administration, potential claims and costs associated with the implementation of preventive measures.

Staff will provide a brief overview of the budget as part of the May 7, 2024 Council meeting. In addition, a budget workshop is scheduled for May 21, 2024. Staff will present a detailed review of the budget during the forthcoming workshop, present responses to any questions that staff may receive in advance of the meeting, and receive preliminary direction from Council on the budget. This direction will be incorporated into the FY 24-25 Recommended Budget, which will be considered for adoption by Council on June 4, 2024.

FISCAL IMPACT:

There is no fiscal impact associated with receiving the FY 24-25 Recommended Budget. Forthcoming direction by Council may change the planned expenditures in Fiscal Year 24-25.

PRIOR CITY COUNCIL ACTION:

Council received a presentation regarding the Five-Year CIP on March 26, 2024.

ATTACHMENTS:

Attachment 1) FY24-25 Recommended Budget Book
Fiscal Year 2024-2025

RECOMMENDED
BUDGET

CITY OF CARMEL-BY-THE-SEA
Attachment 1
2 CITY COUNCIL

DAVE POTTER,
MAYOR

BOBBY RICHARDS,

MAYOR PRO TEMPORE

JEFF BARON,

COUNCILMEMBER

KAREN FERLITO,

COUNCILMEMBER

ALISSANDRA DRAMOV,

COUNCILMEMBER

CHIP RERIG, CITY ADMINISTRATOR

CITY OF CARMEL-BY-THE-SEA
P.O. BOX CC
CARMEL-BY-THE-SEA, CA 93921
T: (831) 620-2000
www.ci.carmel.ca.us
Attachment 1
3 Table of Contents
INTRODUCTION ........................................................................................................................ 4 RECOMMENDED BUDGET MESSAGE .............................................................................. 5 REVENUE ............................................................................................................................... 9 EXPENDITURES .................................................................................................................. 13 FY 24-25 AUTHORIZED POSITIONS ................................................................................. 16 ORGANIZATIONAL CHART ............................................................................................... 18 OPERATING BUDGET ............................................................................................................ 19 CITY COUNCIL .................................................................................................................... 20 CITY ATTORNEY ................................................................................................................. 22 ADMINISTRATION .............................................................................................................. 23 CITYWIDE (NON-DEPARTMENTAL) ................................................................................ 28 ECONOMIC DEVELOPMENT ............................................................................................ 29 LIBRARY AND COMMUNITY ACTIVITIES ...................................................................... 31 COMMUNITY PLANNING AND BUILDING .................................................................... 35 PUBLIC WORKS ................................................................................................................... 39 PUBLIC SAFETY .................................................................................................................. 46 CAPITAL IMPROVEMENT PLAN (CIP) ................................................................................ 51 DEBT SERVICE ........................................................................................................................ 69 OTHER FUNDS ........................................................................................................................ 71 OTHER FUNDS OVERVIEW ............................................................................................... 72 PROJECTED FUND BALANCE .......................................................................................... 75 PROJECTED FUND BALANCE AS OF JUNE 30, 2024 ............................................... 76 PROJECTED FUND BALANCE AS OF JUNE 30, 2025 ............................................... 77 FINANCIAL POLICIES ............................................................................................................ 78 APPROPRIATIONS LIMIT ...................................................................................................... 91 APPENDIX A ............................................................................................................................. 95 RESOLUTION 2024-XXX ADOPTION OF FY 24-25 BUDGET ............................................ 96 FY 24-25 ADOPTED BUDGET (DETAIL) ............................................................................... 97 Attachment 1
4 INTRODUCTION
Attachment 1
5 RECOMMENDED BUDGET MESSAGE
Honorable Mayor Potter, City Councilmembers, and Residents of Carmel-by-the-Sea:

The Fiscal Year 2024-2025 (“FY 24-25”) recommended budget is submitted for your consideration and tentative adoption on June 4, 2023. This budget continues to be structurally balanced and maintain service levels from last fiscal year, all in an effort to continue to build organizational resiliency. The City has risen to a magnitude of challenges over the last year including another season of severe winter storms that absorbed a profound amount of our capacity, and several high interest community projects such as the General Plan Housing Element, and the Police Station Project. Throughout, the City’s dedicated staff, volunteer groups and the community at large worked together to serve and take the best actions under challenging circumstances. Please allow me to reinforce that we have a strong and dedicated workforce, and unparalleled leadership from the City Council combined with an impassioned and solutions-oriented citizenry.

The adopted Operating Budget serves as a policy document, financial plan, operations guide, and communications device. It is a living document that reflects the City Council’s strategic goals and objectives and provides a framework to meet future challenges such as rising operational costs and limited growth in revenues.

As we move forward and plan the Fiscal Year 24-25 operating budget for the upcoming year, it is important to take into consideration the various factors that impact our financial health at the global, national, State, and local levels.

At the global level, we continue to face economic uncertainty and instability due to high interest rates, changes in leisure travel patterns, market distress, and volatility in financial markets. Although far from our backyard, the two major wars currently being fought overseas factor into the overall economic picture. These variables have resulted in a decrease in revenue for many businesses and organizations, and we would be wise to anticipate and prepare for potential impacts on our own financial situation.

At the national level, we have continued to see declines in personal savings which fell from roughly 4.8% in June of 2023 to 3.2% at the time of this report. This trend could add to a greater sell-off of investments and potentially steep market declines. Going on fifteen years, the current economic cycle is likely the longest in US history, so there is also uncertainty around how long [soon] it will be before we see a major change, especially given all of the financial “levers” that have been pulled over the last year by the FED in efforts to affect the economy.

Attachment 1
6 At the state level, California faces its own set of challenges. The state has a large and diverse economy, but it also has a high cost of living and a significant homeless population.

The state’s budget is also impacted by various factors such as natural disasters, healthcare costs, and public education funding. Very recently, the Governor has signaled the need to make cuts to the State Budget, which could impact grant funding anticipated to be received by local governments like ours.

At the local level, Monterey County is no exception to these challenges. We must also consider factors such as our aging infrastructure, affordable housing shortage, and rising healthcare costs. Additionally, our County-wide tourism industry continues to recover from the pandemic, resulting in a decrease in revenue for our county. The City’s three major sources (Property Tax, Sales and Use Tax and Transient Occupancy Tax) of General Fund revenue continue to increase, but only slightly as the trend of “revenge spending” that was seen coming out of the pandemic continues to flatten. This trend has led to decreased occupancy in our hotels and a remaining uncertainty about travel patterns, impacting two of these three major revenue pillars. It is also worth noting that as Highway 1 through Big Sur seems to have some sort of annual disaster event, we will continue to see less visitor trade and traffic coming up along the coast from the L.A. area and bringing important visitor dollars to the peninsula.

As I said, the factors identified above may reflect a monetary tightening that could impact the City’s revenue pillars into the future. As such, we approached our budget planning with an understanding of these factors and their potential impacts on our financial health. This budget is a thoughtful representation working together internally and with the community to identify areas where we can maintain costs at status quo, and where there may be room to cautiously spend budgetary dollars to enhance services for the Village. Given trends though, it is likely the City will soon need to begin to explore the need for additional sources of revenue to maintain our financial stability, or adopt a position of significantly reducing costs in future fiscal years.

The recommended budget is not operationally balanced, meaning the total projected incoming revenue does not compensate for our projected expenditures. The recommended budget is, however, structurally balanced – balanced by strategically using unrestricted fund balance (revenue saved over past fiscal years) to address past and current direction of Council. That direction is to maintain core services and invest heavily in deferred infrastructure maintenance, natural resource management, community character and of course the Police Building Project. We are fortunate to have an available fund balance, accumulated through the prudent budgeting in past years, to close the gap in revenue that we are forecasting. In total, the funds needed to structurally balance the budget is approximately $12,500,000. Using this amount will virtually eliminate our current fund balance.

Attachment 1
7 STAFFING
After no increase in the previous Fiscal Year, I am proposing an increase in the number of City staff. This includes a restructuring of some existing positions to meet the changing operational needs of the City and to respond to the City Council and Community’s desires for additional services. At face value in the FY24-25 budget, it appears that only 1 FTE is being added to the entire workforce, but this number does not reflect the full story, which is the addition of approximately 6 new FTE staff members. In the Library, a total of 1.25 new Library Assistant FTEs are proposed, which will allow for additional weekend hours; In Community Planning and Building, 1 Principal Planner FTE is proposed, which will allow for implementation of the General Plan Housing Element; and in Public Works total of the following 4 new FTEs: 1 Maintenance Worker, which will increase capacity to complete deferred maintenance around the Village, 1 Project Manager, which will help with accomplishing more CIP projects without contractors, 1 Assistant City Forester, which will help with response time for development plan review and implementation of the forthcoming Urban Forest Management Plan, and 1 Tree Permit Technician, which will help with processing tree permits and inspection requests.

These new positions are offset in the total count of FTEs by a few things: 1) reallocation of some existing vacant positions which no longer support operational needs such as the Library Circulation Supervisor, and the Public Works Natural Resource Manager; 2) The removal of 4 Police Department positions still listed on the City roster which should have been removed after the major restructuring that took place in FY22-23.

CAPITAL IMPROVEMENT AND MAINTENANCE
On March 4, 2024 and, again on March 26, 2024, the City Council reviewed the FY 24-25 Capital Improvement Program. Comprised of 27 projects, the combined total CIP investment for carry-over plus new projects would be $12,579,000 – a figure that includes both internal and external funding. Capital projects included in the recommended budget consist of rehabilitation of City facilities, sidewalk and street improvements, enhanced public safety, Citywide ADA improvements, and protection and preservation of the natural environment. More generally speaking, the FY 24-25 budget recognizes the importance of investing in our “green” infrastructure (Mission Trails Nature Preserve, Carmel Beach and Coastline, etc.), and includes funding for continuation of the Police Building project, Library Master planning, and improvements at Sunset Center and other City facilities.

Vehicle & Equipment Fund
The total vehicle acquisition costs for FY 24-25 are budgeted at $570,000 and the City's 10% replacement reserve target is approximately $500,000. Currently, the Vehicle & Equipment Fund balance is estimated at $1,060,000 for FY 23-24 and will be utilized for FY 24-25 acquisitions. The City will continue to maintain the Vehicle & Equipment replacement Attachment 1
8 reserve at 10% of the estimated replacement value of the City’s vehicles and equipment, adjusted annually based on CPI.

FISCAL YEAR 24/25 BUDGET AT A GLANCE
Many of you know the level of respect I have for the lessons one can learn by studying the past. And while much of my message may seem dour, history teaches us that economic cycles are intrinsic to local government. Consequently, as clear as I can be about the likelihood of an unavoidable down cycle in two of our three major revenue pillars, I am equally as confident about the inevitable upcycle to follow. The budget I am presenting is not intended to be irrepressibly contrarian; it is meant to be cautious and realistic. In the long term, I remain very bullish, and indeed optimistic about our future.

My profound thanks to my department heads, and especially our Finance Division team, for developing a budget that is realistic given the realities that we are facing. I look forward to Council’s leadership and guidance as we balance fiscal sustainability with the need to fund projects and services for our community.

Respectfully submitted,
Chip Rerig
City Administrator
Attachment 1
9 REVENUE
The FY 24-25 Recommended Budget includes $31.4 million in estimated new revenue. As illustrated in the chart below, statewide sales tax (Sales Tax) and local Measure C district tax (Measure C), contribute 31% and is the largest City revenue source. This reveals the importance and impact of the voter approved of Measure C in 2020. Property Tax reflects its customary stable growth accounting for 28% of the budgeted revenue. Hotel Tax (TOT) increases 2% over last fiscal year to 24% of budgeted revenue, followed by Other revenues and Charges for Services combined at 17%, a 2% decrease over prior FY 23-24.

Attachment 1
10 Property taxes are estimated at $8.6 million, reflecting a 2% projected growth over the previous year’s adopted budget. The City’s portion of the Sales Tax is $3.7 million and Measure C $6 million, which remains at 12% and 19% of revenue respectively. The significance of the March 2020 Carmel voter approval of Measure C, at a renewed rate of

1.5%, cannot be understated. Amid COVID-19, Measure C provided a financial lifeline allowing for the continuance of core City services and still plays significantly in funding both operational and capital needs. Sales Tax has also fared well. This FY 24-25 Recommended Budget projects a continuation of status quo in Measure C and Sales Tax trends as consumers remain cautious of inflation and overall price increases of goods and services.

Transient Occupancy Tax (“TOT”) is levied at 10% of the rent charged by a hostelry operator within the City. TOT has slowed over the FY 22-23 high. Recommended at $7.5 million, TOT accounts for 24% of revenues, a 2% increase over FY 23-24. Charges for Services are fees collected from a specific user of a service, such as plan review, building inspection and ambulance transports and account for $2.6 million, or 8% of the budget. The category of “Other” revenue includes General Fund revenues from business license tax, franchise fee and other intergovernmental revenue as well as restricted revenue for Community Oriented Policing Services (COPS), road maintenance and transportationrelated projects and federal and State grants for planning, parks, and radio communications.

The City’s three major sources of revenue include Property Tax, Sales and Use Tax, and Transient Occupancy Tax. As shown on the Table 1 above entitled “Estimated Performance and Recommended Budget for Major Revenue Sources”, property taxes had historically been a strong component to the City’s financial health. Each tax represents about 1/3 of the City’s total revenues. Revenue generated from sales and use taxes have become increasingly important to the City, especially after the passage of a local 1% sales tax measure by Carmel voters in 2012 and the subsequent approval of a new 1.5% sales tax for 20 years in March 2020. Transient occupancy taxes (“TOT”) have also significantly contributed to the City’s revenues, eclipsing nearly $7 million in fiscal year 2018-2019, Attachment 1
11 rebounding to approximately $7.7 million in FY 21-22 returning to pre-COVID levels, and exceeding $8.4 million in FY 22-23.

PROPERTY TAXES
The desirability of Carmel-by-the-Sea as a place to reside, coupled with its limited housing stock, contribute to a strong local real estate market. Property tax revenue has been increasing on average by 6% over the past 9 years, reaching $8.14 million in fiscal year 2022-2023.

The State median home price is expected to rise 6.2% to $860,300 in 2024, after dropping

1.5% to $810,000 in 2023 from $822,300 in 2022. The City has budgeted Property Tax revenue at 2% over last fiscal year’s adopted budget, as done in prior years. This budget conservatively projects growth yet remains confident in the stability of Carmel’s property tax performance.

SALES AND USE TAXES
The majority of the City’s sales and use taxes are attributed to businesses within the categories known as general consumer goods and restaurants. The City receives a portion (1%) of the statewide sales tax, known as Bradley- Burns tax, as well as revenue from a local sales tax. On March 3, 2020, the Carmel electorate voted and approved Measure C to increase the sales tax rate to 1.5%. The timing of Measure C helped minimize the effects of reduced sales tax revenue suffered during the pandemic, allowing the City to survive and recover to pre-pandemic levels by fiscal year 2020-2021. In fiscal year 2021-2022, the City of Carmel-by-the- Sea experienced a peak increase in sales and use tax revenue, a reflection of the revenge consumer spending and relief from consumer goods shortages and logistic headaches brought out during COVID-19. Fiscal year 2022- 2023 sales and use tax revenue finished slightly under the prior year’s high of $9.6 million at $9.3 million, a -2.69% decrease.

The City remains conservative and vigilant to the current trends, as we are aware geopolitical tensions, inflation concerns, and interest rates drive consumer spending patterns. Consumer spending for certain goods and services remain high, particularly for online shopping and dining. General consumer goods spending slowed by the end of FY 22- 23, hitting outlets, galleries and gift shops the hardest. We project stagnant sales tax activity in FY 24-25 coming in at $3.7 million and $6.0 million in line with the current year’s estimates based on Statewide sales tax trends.

TRANSIENT OCCUPANCY TAX
The FY 24-25 Recommended Budget for TOT is $7.5 million, which assumes continued occupancy at the current fiscal year’s rate. In FY 23-24, daily occupancy rates have been lower while the daily room rate are higher over prior fiscal year. For the reasons noted Attachment 1
12 above under Sales and Use Taxes, as well as Highway 1 Big Sur closures, we remain guarded by consumer travel trends in our TOT revenue projections.

As the City looks forward to its future revenues that fund services, capital projects and other initiatives, stepping back and reviewing the City’s historic performance is of value.

The chart below depicts the performance of the City’s three major revenue sources over the last 10 years.

Attachment 1
13 EXPENDITURES
The FY 24-25 Recommended Budget totals $43.9 million, which consists of the following:
▪ Operating Budget, or General Fund, totals $30.7 million, or 71%, of the citywide budget
▪ Debt service totals $519,100, or 1% of the citywide budget ▪ Capital outlay, including Capital Improvement Projects ($12,009,000) and Vehicles and Equipment ($580,000), makes up 29% of the recommended budget The Operating Budget consists of the City’s departments and services. Debt is based upon required payments toward various bonds issued by the City or by other governmental agencies on behalf of the City. As shown in the chart below, FY 24-25 Expenditure by Type, the FY 24-25 Budget includes the Operating Budget and Debt Service. The Operating Budget is further categorized by types of expenditure including salaries and benefits, outside services, and other expenditures as explained below.

Attachment 1
14 The City’s largest expenditure is related to the cost of personnel. Salaries and benefits total $16 million and account for 36% of the citywide budget. Capital Outlay is the second largest type of expenditure at $12.6 million, or 29% of the budget. The third largest type of expenditure is Outside Services. This category includes various line-item accounts, such as advertising and noticing, contract services and community promotions. Contract services are used as an alternative to City staff directly providing the service due to cost savings or the specialized nature of the work being performed and include funding for expenses such as fire service provided by the City of Monterey ($3.3 million); support for the operations of the Sunset Center and other marketing activities ($1.2 million); legal services ($517,000); tree care and landscape maintenance ($1.5 million) and janitorial service ($280,000).

Other expenditures total $3.3 million and account for 8% of the citywide budget. This category includes various line-item accounts such as retiree healthcare and citywide operational expenses like property tax assessments and utilities. Also included here are the City’s general liability and property insurance premiums ($1.1 million) and expenses such as public works materials and supplies, telecommunications, fuel, training and conferences, vehicle maintenance, medical and safety supplies and printing and postage.

Pension expenses total $2.4 million, or 5%, of the budget and only include the annual required unfunded pension liability ($2.4 million). The City will also make its annual funding transfer to the City’s Section 115 trust ($1.0 million) for pension mitigation.

The citywide budget is rounded out with Debt Service ($519,100) accounting for 1% of the citywide budget.

Attachment 1
15 Another way to view operating expenditures is by function, as depicted in the FY 24-25 Expenditures by Function illustration. Capital Outlay makes up 29% of operating expenditures. The public safety functions of Ambulance, Fire and Police make up 24% of the budget. The Public Works Department is the next largest operating expenditure at 15% followed by Citywide at 9% of the budget, as it includes the City’s unfunded actuarial liability. In total, Administration, Council, Planning, Legal, Marketing, the Sunset Center, and Library and Community Activities represent the remaining 23% of the Operating Budget.

Attachment 1
16 FY 24-25 AUTHORIZED POSITIONS
Attachment 1
17 Attachment 1
18 ORGANIZATIONAL CHART
Carmel-by-the-Sea
Electorate
Council
City
Administrator
Library and
Community
Activities
Library
Admin
Circulation
Youth
Reference
Local History
Community
Activities
Community
Planning &
Building
Planning
Building Safety
Code
Compliance
Public Works
Admin
Project
Management
Environmental
Compliance
Facilities
Streets
Forest, Parks
and Beach
Public Safety
Ambulance
Fire
Police
Office of City
Administrator
City Clerk
Finance
Human
Resources
Information
Technology
City Attorney
Attachment 1
19 OPERATING BUDGET
GENERAL FUND - 101
(CITY DEPARTMENTS AND SERVICES)
Attachment 1
20 CITY COUNCIL
The City Council consists of the Mayor and four Councilmembers, elected at large by the citizens of Carmel-by-the-Sea on a non-partisan basis. The City Council is the policymaking legislative body of the City. The Council adopts the annual budget, enacts ordinances, and approves major contracts, acquisitions, and leases. With the advice and assistance of the City Administrator and City Attorney, the City Council reviews proposals to meet the community’s needs, initiates action for new policies, and allocates resources. 2023-2024 INITIATIVES AND ACCOMPLISHMENTS
▪ Develop Telecommunication Ordinance consistent with federal law ▪ Stormwater Ordinance Update
▪ Car Week Safety and Impacts
▪ Review barriers to construction of affordable housing (Housing Element Adoption) 2024-2025 PRIORITIES
▪ Continued oversight of the implementation of the strategic plan and updating of City priorities to include some of the following: plan for natural areas, reduce fire risk, review opportunities for enhanced fire/ambulance service; develop forest management plan and update tree ordinance; update zoning code & design guidelines; ADU ordinance; wireless ordinance; increase beautification effort; review barriers to affordable housing; explore street addresses, develop a facilities master plan; underground utilities rule 20A; explore reinstatement of design review board; explore opportunities for Flanders Mansion and Scout House. ▪ Continue to respond to any forthcoming State legislation that undermines local control, especially as it relates to local land-use decisions.

BUDGET SUMMARY AND SERVICE IMPACTS
▪ Community Promotions includes $30,000 for the Council discretionary grant program, $3,000 for United Way 211, $3,000 for the Monterey County Film Commission, and $86,600 for the cost of courier service for the mail delivery program for a total budget of $122,600.

Attachment 1
21 Attachment 1
22 CITY ATTORNEY
The City Council appoints the City Attorney. The City Attorney legally represents the City and provides legal advice and/or training to the City Council, City Administrator, boards, commissions, and departments; investigates and resolves claims against the City; defends the City in litigation and administrative actions; initiates and prosecutes litigation on behalf of the City; and drafts and reviews legal documents and agenda items.

BUDGET SUMMARY AND SERVICE IMPACTS
▪ The FY 24-54 contract services budget totals $442,000 and consists of $360,000 for general legal services and $75,000 for other specialized legal assistance from the City’s attorney office, including labor negotiations and personnel. The budget also includes $7,000 for the City’s attorney’s annual performance evaluation. There are no changes from FY 23-24 adopted budget.
▪ $75,000 is budgeted for supplementary specialized legal costs, such as wireless communications.

Attachment 1
23 ADMINISTRATION
The City Administrator is appointed by the City Council and is responsible for the enforcement of City laws and ordinances; ensuring that the orders of the City Council are executed; preparing the budget and monitoring City finances; and managing day-to-day operations. In addition to overseeing City departments, the Administrator also serves as the director of the centralized administrative functions pertaining to the City Clerk, Finance, Human Resources, and Information Technology.
2023-2024 INITIATIVES AND ACCOMPLISHMENTS
▪ Ensured the execution of Council policy direction, completion of capital projects, hiring of staff and continuity of daily citywide operations to deliver services in an efficient and effective manner
▪ Pursued collaborative relationships with USPS and the Postmaster and through staff research produced four next step options in exploring street addresses ▪ Awarded Certificate of Achievement for Excellence in Financial Reporting for the City’s Annual Comprehensive Financial Report for the Fiscal Year ended June 30, 2022
▪ Continued execution of the City’s multi-pronged financial strategy to address pension liability
▪ Updated the City’s Purchasing Policy
▪ Refreshed the City’s website
▪ Completed public engagement phase through public meetings and outreach for the Parking and Traffic Management Program
2024-2025 PRIORITIES
▪ Explore Opportunities for Flanders Mansion
▪ Explore Street Addresses
▪ Develop and Implement a Social Media Plan
▪ Explore Parking and Traffic Management
Program
▪ Review and update reserve and financial
policies
▪ Transient Occupancy Tax (TOT) increase:

Explore a ballot measure for 2024 election
▪ Carmel Area Wastewater District (CAWD)
Bridge to Everywhere Project
▪ Board and Commissioner Training
Attachment 1
24 BUDGET SUMMARY AND SERVICE IMPACTS

ADMINISTRATION
The Administration Divisional budget includes funding for the City Administrator’s performance evaluation within contract services, office supplies, copier fees, and the citywide postage meter.

Attachment 1
25 CITY CLERK
The City Clerk provides timely and accessible service in response to all inquiries and requests for public information and records, and is responsible for the administration of elections, public records requests processing, records management, and the legislative process. Records the City’s legislative history through approved minutes and maintaining City Ordinances and the Municipal Code; facilitates applications for appointments to boards and commissions and coordinates Statements of Economic Interest as well as campaign and other financial disclosure-related filings.

FINANCE
Finance provides financial analysis, management and reporting through the development of the annual budget, ongoing financial monitoring and reporting of revenues and expenditures. Routine financial duties including vendor payments, payroll, business license processing and the collection of the transient occupancy tax and the administration of passthrough funding to the hospitality and tourism improvement districts. Provides treasury services, invests revenue, and issues and manages debt.

Attachment 1
26 HUMAN RESOURCES
Human Resources recruits, develops, and retains a diverse, well-qualified workforce that reflects the high standards of the community, and leads the City departments in positive employee relations, talent management, succession planning, and employee engagement.

Services include employee orientation, recruitment, performance assessment, compensation and job classification assessments, safety and wellness programs; and organization development services efficiently to City departments. Staff is responsible for negotiating Memorandums of Understanding with the City’s three bargaining units, subject to Council direction and approval.

The HR divisional budget includes funding for implementing new employee supplemental benefits, managing an updated and expanded citywide Safety Program, and digitizing personnel records using LaserFiche. Funding for the staff appreciation events, such as the annual holiday party, is now separately reflected under Employee Appreciation.

Attachment 1
27 INFORMATION TECHNOLOGY
Information Technology (IT) provides innovative and secure technology solutions that support City departments in delivering quality services to the community. The purpose of IT is to provide a broad range of high-quality technology-related solutions to employees, departments, Council members, and the community; and to support and continuously improve essential technology infrastructure for enabling day-to-day operations of the City.

Attachment 1
28 CITYWIDE (NON-DEPARTMENTAL)
Citywide, or non-departmental costs, are expenses that are spread across the entire organization. These items include the unfunded pension liability, the City’s insurance premiums for general liability and property insurance, and the City’s share of costs toward retiree healthcare. Other operational expenses include utilities, property tax assessments and the administrative fee charged by Monterey County for property tax collection.

BUDGET SUMMARY AND SERVICE IMPACTS
▪ In addition to the employer contribution toward retirement for City employees, the City also is responsible for pension obligations for the unfunded actuarial liability (“UAL”). This amount increases by $432,584, or 22%, in FY 24-25 compared to the FY 23-24 originally Adopted Budget. The FY23-24 lump sum payment was paid in July 2023 for a savings of $65,000 and those savings were transferred to other budget line items during the fiscal year.
▪ The City will pay the annual lump sum UAL in July, which will result in approximately $75,000 of interest savings. Those savings would then be available for other line item expenses.
▪ On September 7, 2021, Council authorized the adoption of a Section 115 Trust known as the Public Agencies Post Employment Benefits Trust administered by the Public Agency Retirement Service (PARS). Since, City staff has deposited three $1 million annual contributions into the Trust, which are to be made over the next five years. The City will be contributing the fourth annual $1 million tranche into the Section 115 Trust in FY 24-25. As this is a transfer to restrict funds for pension obligations, it is not included in the FY 24-25 recommended budget. ▪ The City’s liability insurance premiums are budgeted to increase by $125,490, or 13%.
▪ The utility expenses for the Forest Theater are separated out for tracking purposes, as required by the lease.

Attachment 1
29 ECONOMIC DEVELOPMENT
Two of the City’s unique facilities include the performing arts venue known as the Sunset Community and Cultural Center and the Forest Theater, an outdoor amphitheater. These locations support musical performances, lectures and other cultural activities that enhance the quality of life for residents and promote the City and the Monterey Peninsula as an artistic and cultural destination.

In 2017, the City entered into a lease agreement with the Sunset Cultural Center, Inc. (SCC) for the management of these facilities and the terms of the lease require the City to make an annual grant to SCC to support operations. In 2021, Sunset Cultural Center, Inc.’s management of the Forest Theater ended. The annual grant for management of only Sunset Center remains in the budget.

In 2021, the City entered into a lease agreement with Pac Rep Theater for the management of the Forest Theater. This new lease does not require an operational grant payment.

Rather, the City pays for a portion of utilities and repairs, which are budgeted in the Citywide (Non-Departmental) and Public Works budgets, respectively.

The City funds the Monterey County Convention and Visitors Bureau (MCCVB) and Visit Carmel to manage visitors. Visit Carmel maintains the City’s official travel website (www.carmelcalfornia.com) and develops targeted and seasonal marketing campaigns to encourage visitors to stay overnight, dine, and shop within the Village.

In addition to supporting these organizations with General Fund revenues, the City also collects a tourism improvement district assessment from its lodging establishments on behalf of the County and remits these pass-thru funds to MCCVB on a bi-monthly basis.

The City also collects an assessment on lodging through the Carmel Hospitality Improvement District and remits these funds to Visit Carmel for the marketing of overnight stays within the Village during mid-week and the non-peak season. As of January 1, 2019, the City also began collecting an assessment from full-service restaurants on behalf of the Carmel Restaurant Improvement District (CRID) and remits these funds to Visit Carmel for marketing efforts to increase food and beverage sales within the City. An ordinance of the City Council renewed the CRID for a term of nine years and six months beginning January 1, 2024 and ending on June 30, 2033.

Another partner agency is the Carmel Chamber of Commerce, which operates the Visitor Center in town, publishes a comprehensive visitor guide, and assists businesses. The Chamber also supports small businesses and provides services to assist its members, including listing businesses on the Chamber website, providing educational programs, conducting outreach with businesses via weekly business walks with City elected officials and staff and marketing opportunities to “shop locally”.

Attachment 1
30 BUDGET SUMMARY AND SERVICE IMPACTS
Visit Carmel has been budgeted funding in the amount of $120,000 annually. Funding to MCCVB is $226,297 equates to 3% of the FY 24-25 transient occupancy tax revenue budget of $7,453,000.

Attachment 1
31 LIBRARY AND COMMUNITY ACTIVITIES

LIBRARY
The Library is an efficient medium for the free and equitable distribution and exchange of books, information, and ideas; and a recognized social center providing the community with a place to learn, interact and gather. The Library aspires to be a welcoming place, in-person and virtually, where
reading, learning and imagination thrive; a recognized
leader and respected voice in our community; and a model library in our industry.

A five-member Board of Trustees appointed by the City
Council governs the Library. The Harrison Memorial Library Board of Trustees, the Carmel Public Library Foundation, Harrison Memorial Library Friends of the Library, and the City work together in partnership to sustain the vital and historic tradition of providing free public library service of excellent quality for the residents and visitors of the City of Carmel and the Monterey Peninsula.
2023-2024 WORKLOAD INDICATORS / PERFORMANCE MEASURES
▪ 15,722 reference and information questions were answered. ▪ 2,088 library cards were issued.
▪ 85,223 library items were circulated.
▪ 5,006 people attended library programs.
▪ 120,194 visits were made to the library.
▪ 9,390 log-ins were made to library wi-fi.
▪ 84,485 digital items (e-books, audios, magazines, films, music) were accessed. ▪ 5 new oral history interviews were captured.
2023-2024 INITIATIVES AND ACCOMPLISHMENTS
▪ Worked with the Community Activities Department, Police Department, and Carmel CERT to launch the Carmel Prepares initiative to communicate with the community on a regular basis on regional agency preparedness efforts and to encourage citizens to be prepared for disasters and emergencies.

Attachment 1
32 ▪ With funds from the Harrison Memorial Library Board of Trustees purchased equipment to turn the Park Branch Library into a charging station for the community during power outages.
▪ Created a space in the Park Branch Library for ongoing Friends of the Library book sales.
▪ Began working with the Carmel-by-the-Sea Rotary to launch Dolly Parton Imagination Library countywide to provide free books to children ages 5 and under. 2024-2025 PRIORITIES
▪ Restore Saturday hours.
▪ Complete a new Library’s Strategic Plan.
▪ Continue to work on moving the Library Facilities Master Plan project forward.

BUDGET SUMMARY AND SERVICE IMPACTS
The City funds the personnel and building maintenance costs for operating the Main and Park Branch libraries. The sources of funding for library materials, programs and services are the Carmel Public Library Foundation, the Friends of the Library, and other donations.

Attachment 1
33 COMMUNITY ACTIVITIES
The Community Activities department and Commission encourage and support the interaction of neighbors, friends, families and visitors through the shared experience of special events, programs, and gatherings which bring the community together virtually and in-person safely on the City’s streets and in its parks and create opportunities to interact, celebrate, enrich people’s lives, and promote inclusiveness.

The Community Activities department facilitates the weekly Farmers’ Market, permitting special events, beach events, and filming, in addition to organizing the City’s annual special events (Memorial Day, 4th of July, Sandcastle Contest, Pumpkin Roll, Halloween Parade, Veteran’s Day, Homecrafters’ Marketplace, and Holiday Menorah and Tree-lighting).
2023-2024 WORKLOAD INDICATORS / PERFORMANCE MEASURES
▪ Planned and facilitated twelve City special events.
▪ An estimated 6,000 people attended City Special Events. ▪ Issued 46 event, beach, and film permits.
2023-2024 INITIATIVES AND ACCOMPLISHMENTS
▪ Worked with the Library, Police Department, and Carmel CERT to launch the Carmel Prepares initiative to communicate with the community on a regular basis on regional agency preparedness efforts and to encourage citizens to be prepared for disasters and emergencies, which will be a biannual event going forward. ▪ Collaborated with Public Works on a combined Community, Earth, and Arbor Day celebration, in addition to the annual Community Day event in the Fall.

Attachment 1
34 ▪ Continue to work with Car Week event organizers to build Car Week in Carmel back to something like it was pre-pandemic.
2024-2025 PRIORITIES
▪ Holding beloved annual special events and always looking for ways to make them safer and more fun.
▪ Building and sustaining community partnerships for current special events and future smaller events.
▪ Soliciting community input on new small
community-oriented events and initiatives
through surveys, Farmers’ Market outreach, and
work with community partners.
▪ Continuing to facilitate community gatherings and
special events, and ensure that processes are
streamlined and conducive to encouraging events
within the bounds of current city regulations.
▪ Continue to keep the Council informed on new initiatives and provide report outs on items like Car Week and the Farmers’ Market.

BUDGET SUMMARY AND SERVICE IMPACTS
Community Activities department expenses include costs for advertising, banners and signage, event and office supplies for City events, equipment replacements, Community Activities Commission initiatives, and the Farmers’ Market.

Attachment 1
35 COMMUNITY PLANNING AND BUILDING
The Community Planning and Building Department (CPB) includes the Planning, Building and Code Compliance Divisions and is responsible for preserving community character while fostering a vibrant community and a high quality of life for its residents, businesses and visitors.

PLANNING
The Planning division processes current development applications, maintains the General Plan, and ensures that capital programs, zoning and other activities of the City are consistent with the goals and policies of the Plan.

BUILDING SAFETY
The Building Safety division is responsible for plans examination and inspections of City and private development projects to ensure compliance with building codes.

CODE COMPLIANCE
The Code Compliance division ensures compliance with the City Municipal Code. This function includes public education and outreach on existing laws and resolving code violations.

Attachment 1
36 2023-2024 INITIATIVES AND ACCOMPLISHMENTS
▪ Began work on Phase 2 update of the City’s Historic Context Statement. ▪ Adopted and certified an update to the City’s General Plan Housing Element for the 6th Cycle of the Regional Housing Needs Allocation (RHNA). ▪ Adopted a full update to the City’s Wireless Ordinance, including robust public participation and complete redraft to all existing regulations. ▪ Implemented several measures in line with the CPB 2019 strategic plan’s customer service, technology, and streamlining goals including but not limited to: expanding the online payment system, simplifying CPB’s website portal, refreshing SOPs for the Building and Planning processes.
▪ Certified an update to the City’s Timeshare Ordinance with the California Coastal Commission.
▪ Multiple community workshops and meetings for the Design Traditions 1.5 Project, following the release of a first draft update to the Commercial and Residential Guidelines.
▪ Conducted citywide code compliance effort to bring excess outdoor seating/guest amenities still remaining from the Covid-19 emergency proclamation into conformity or to gain the required permits.
▪ Conducted complete fee study on department wide permit fees, adjusted amounts, and implemented new fees.
▪ Completed first draft of ADU ordinance, held public workshop with Planning Commission, and worked with Coastal Commission and HCD staff to refine policy language.
▪ Purchased and rolled-out of two (2) electric bicycles for Planning, Building, and Code Compliance inspections.
2024-2025 PRIORITIES
▪ Continued implementation of the CPB 2019 strategic plan, with a focus on customer service, technology, and streamlining processes.
▪ Begin year one of eight to implement the General Plan Housing Element and utilize State grant funding through the Regional Early Action Planning (REAP) 2.0 program.
▪ Adopt the General plan Safety Element updates by December, 2024. ▪ Adopt Phase 2 (final phase) of the Historic Context Statement update. ▪ Adoption of: (1) updated Accessory Dwelling Unit Ordinance; (2) updated Beach Fire Ordinance.
▪ Formalize a Long Range Planning work plan to help with planning and tracking ordinance related tasks.
▪ Update the City’s Mills Act Policy and bring it to City Council for Consideration.

Attachment 1
37 ▪ Complete the scanning/digitizing of rolled building plans currently in storage at Vista Lobos.
▪ Adoption of updated Design Guidelines and Zoning Code through the Design Traditions 1.5 Project.
▪ Complete a successful recruitment to install a new Director of Community Planning and Building
▪ Engage staff to participate in more training opportunities to continue the professionalization and growth of the Community Planning and Building Department.

BUDGET SUMMARY AND SERVICE IMPACTS
Planning contract services ($136,010 total) includes items such as $82,500 for General Plan Housing Element implementation and Safety Element updates; $40,000 for scanning rolled plans stored at Vista Lobos, and $40,000 for the completion of Phase 2 update of the Historic Context Statement. The City will receive a total of $82,500 in various State grant awards to offset some of the contract services associated with the Housing Element and the Historic Context Statement Update.

The State has signaled that potential housing program budget cuts will be made to balance the overall State budget. Due to this, it is likely that the previously awarded REAP 2.0 Attachment 1
38 Grant from last fiscal year ($85,000), will be reduced by 50% to $42,500 in this coming fiscal year. This reduction has been reflected in the FY 2024/24 budget. The REAP 2.0 Grant funds are used for Housing Element implementation.

In an effort to continue professionalizing and growing the Board and Commission members along with the Community Planning and Building Department staff, the overall budget for training and education has been increased to include training for boards and commissions.

The Planning Department is seeking to add one new position, which would effectively be the Housing Element Implementation Planner. This position would be created at the Principal Planner level. With the 6th Cycle Housing Element now adopted, the task at hand is an 8-year implementation plan. This complex and detailed plan will require a full time effort, that will be undertaken and managed by this new position. The addition of this new Planning Position will also greatly reduce the need for utilizing costly contract support for the implementation of the Housing Element.

PLANNING

BUILDING SAFETY

CODE COMPLIANCE
Account Number Account Description FY23-24
Amended
Budget
FY23-24
Estimated
Actual
FY24-25
Recommended
101-115-20-42001 Contract Services $367,600 $367,600 $136,100 101-115-20-42009 Advertising and Legal Notice 500 500 500 101-115-20-42101 Office Supplies 6,400 6,400 6,400
101-115-20-42102 Publications & Subscriptions 1,425 1,425 1,425 101-115-20-42104 Safety Equipment and Supplies 800 200 2,700 101-115-20-42115 Other Supplies 2,900 2,900 1,750
101-115-20-42301 Training & Education 5,325 3,000 6,825 101-115-20-42302 Conferences & Meetings 4,000 1,000 4,000 101-115-20-42305 Mileage Reimbursement 0 0 0
101-115-20-42403 Printing 1,000 1,000 1,000
Services & Supplies Subtotal $393,050 $385,625 $164,500 Community Planning & Building: Planning
Attachment 1
39 PUBLIC WORKS
The mission of the Public Works Department is to plan, design, construct, operate, and maintain public infrastructure, streets, sidewalks, storm drains, building facilities, the urban forest, parks, and beach that contribute to the health, safety, and well-being of the Village. Public Works consists of an administrative unit and five operating divisions with responsibilities as follows:

ADMINISTRATION
Prepares Council agenda reports, monthly status reports, and annual 5-year Capital Improvement Plan, make presentations, serves as Executive Team liaison to the Forest and Beach Commission and on the TAMC TAC and Traffic Safety Committees, liaison to volunteer groups throughout the City, performs engineering services, and provides administrative support, budgeting, scheduling, and performance oversight of the operating divisions.

STREET MAINTENANCE
Supervises Public Works field personnel, prioritizes and allocates equipment, tools, and material resources, repairs streets, potholes, sidewalks, curbs, fencing, storm drainage system, berms, traffic signs, striping, and pavement markings, performs street sweeping, provides fleet maintenance services, reviews utility and encroachment permit applications, supports City events, and provides emergency response.

FACILITIES MAINTENANCE
Maintains and repairs 20 City-owned buildings and facilities with 137,000 square feet, including 8 historic buildings nearly 100 years old, supports facility renovation capital improvements, oversees janitorial contract, obtains quotes and manages building trade contractors, implements ADA projects, and performs annual fire safety apparatus, generators, and backflow inspections.

ENIVORNMENTAL COMPLIANCE
Enforces State storm water quality and waste reduction/recycling regulations, oversees the City’s waste hauler contract, implements Climate Action and Adaptation Plan projects, serves on ReGen Monterey and
Monterey Regional Stormwater Management Program TAC
committees, manages sensitive projects in the North Dunes and Mission Trail Nature Preserve (MTNP), evaluates energy reduction initiatives, and coordinates with partners on resiliency, environmental, and sustainability-focused projects.

Attachment 1
40 FORESTRY, PARKS AND BEACH
Performs tree management for 10,000+ City trees, including planting, pruning, and removal services, prepares reports and presentations for Forest & Beach Commission meetings, maintains eight City parks, Carmel Beach, open spaces, and landscaped islands, collaborates with volunteer
organizations, processes tree removal/pruning permits,
reviews private development applications, manages multiple on-call tree care and landscape maintenance service
contractors, and provides emergency response during storms.

PROJECT MANAGEMENT
Implements planning, engineering, design, public bidding, and construction- of capital improvement projects, including transportation, drainage, and facility renovation projects, performs condition assessments, manages consultants and contractors, coordinates with utilities and other City departments, prepares special conditions of approval for major encroachment permits, checks technical reports and plans, obtains permits, and prepares specifications, contract documents, and cost estimates. 2023-2024 INITIATIVES AND ACCOMPLISHMENTS
▪ Facilitated community volunteer organizations in obtaining permits for projects such as Leadership Carmel’s Forest Hill Park “Nature Play” project and Carmel Cares’ Scenic Road Barrier Rails
▪ Continued developing the Urban Forest Master Plan and completed technical studies
▪ Planted new trees following removal of dozens of
dead, diseased, and hazardous trees that were
removed via task orders by our on-call tree services
contractors
▪ Coordinated emergency response and clean up of tree
incidents from February 2024 storms
▪ Established 48 sites which receive ongoing
landscaping maintenance by our on-call landscaping
contractor
▪ Updated the City’s Stormwater Ordinances
▪ Issued two Emergency Coastal Development Permits
to repair six beach access stairways
Attachment 1
41 ▪ Completed Phase I of the Coastal Engineering Study, including the Shoreline Assessment and Beach Change Analysis, Erosion Exposure Modeling, Coastal Hazards, and Sea Level Rise Vulnerability Assessment
▪ Awarded a $500,000 Coastal Commission Local Coastal Program Grant to perform Phase 2
▪ Held the 2nd-Annual Earth Day/Arbor Day celebration
▪ Installed new split rail fencing at Forest Hill Park and the North Dunes Habitat Restoration area
▪ Implemented waste management compliance with organics and recycling regulations, and implemented a new waiver application process ▪ Installed new dual, ribbon style, trash and recycling cans throughout downtown and residential areas
▪ Supported the re-formed Climate Committee
▪ Remodeled the Police Dispatch Office
▪ At Sunset Center, installed new bollards, a recirculating fire pump system, and replaced the heater for Carpenter Hall
▪ Completed other Facility Renovation Projects: Fire
Station back patio resurfacing, Police evidence locker
installation, and Park Branch Library dumbwaiter
decommissioning
▪ Updated the “StreetSaver” Pavement Management
System database
▪ Used 30 tons of asphalt to fill potholes and street repairs and 70 gallons of traffic paint to update pavement markings
▪ As a Public Works team building project, rebuilt a foot bridge in MTNP and installed new roadway surfacing and new gate at the Preserve entrance at Eleventh Avenue ▪ Began using the all-electric Street Sweeper and received a $250,000 rebate from 3CE
▪ Auctioned 7 surplus vehicles for a total of $36,000
▪ Completed construction of the following Capital Improvement Projects:
▪ City Hall Retaining Wall Repair Project
▪ MTNP – Well Abandonment, and Removal of Tank and Pump House ▪ Completed construction of the FY 22 Paving Project, which included the City’s first application of micro-surfacing and establishment of the first official bike route along San Carlos Street
▪ Hazardous materials remediation and painting the exterior of Sunset Center and Harrison Memorial Libraries
▪ Electrical panel assessments at four sites: Public Works, City Hall, and Fire Station, and Ocean Avenue median
Attachment 1
42 ▪ Completed engineering, design, and environmental review of the following Capital Projects:
• MTNP – 3 Drainage Improvements for Stream Stability
• Four Drainage System repairs and bottlenecks
• FY 23 Concrete Street Repair Project
• FY 23-24 Street Resurfacing Project
• San Antonio Pathway Repairs (Second to Fourth Avenues) • Sunset Center Retaining Wall Repairs
• Electrical Panel Upgrade at Vista Lobos
• Police Building - completed building condition assessment and Police Department space needs
• Developed a conceptual design for Sunset Center Portico 2024-2025 PRIORITIES
▪ Adopt and implement the Urban Forest Master Plan, which will kick off a 3-year “catch up” plan with the goal of resolving the backlog of Stump Removals and Tree Removals for dead, dying, or diseased trees. The backlog is anticipated to be reduced by 1/3 by the end of FY 24-25. A “catch up” plan will also be implemented to plant trees equal to the number of trees which fell in recent years’ storms, all the while continuing to replant 1-for-1 for non-storm removals. All progress on these efforts will be reported monthly at Forest & Beach Commission meetings. ▪ Establish an Underground Utility District utilizing PG&E Rule 20A funds. ▪ Develop adaptation strategies and launch public outreach for Coastal Engineering Study, Phase 2
▪ Continue North Dunes Restoration Improvements and Reporting Implement updates to the Monterey Regional StormWater Management Program and Reporting ▪ Construct the FY 24 Street Resurfacing Project, including 4 bid additives from the FY 22 paving project and the San Antonio/Ocean Avenues intersection reconstruction from the FY 23 concrete streets project
▪ Construct four Drainage System repairs and bottleneck improvements ▪ Complete construction of the MTNP – 3 Drainage Improvements for Stream Stability
▪ Construct the Electrical Panel Upgrade and EV Chargers at Vista Lobos ▪ Implement beautification projects, notably the re-landscaping of the Ocean Avenue Medians
▪ Construct the City Hall Roof Replacement and Sunset Center Cottage Window Repairs
▪ Reconstruct the San Antonio Pathway
▪ Repair retaining walls at Sunset Center
▪ Remove and replace 167 trees and remove 200 stumps
Attachment 1
43 BUDGET SUMMARY AND SERVICE IMPACTS

ADMINISTRATION
The Administration Unit budget includes funding for Contract Services ($32,200), including uniforms and software contracts, training ($15,000), subscriptions ($5,000), and office supplies ($3,000). Line item increases reflect all field positions being filled.

Attachment 1
44 STREET MAINTENANCE
The Street Division budget includes funding for Materials and Supplies ($71,000) for black and pick mutt mitts ($30,000), asphalt, sidewalk pavers, and traffic paint, Equipment and Vehicle Maintenance ($10,000), Fuel ($30,000), and Contract Services ($46,200) including reconstruction of the San Antonio Pathway, between Second and Fourth Avenues damaged by January storms and subject to FEMA reimbursement.

FACILITIES MAINTENANCE
The budget for the Facilities Maintenance Division includes funding for Contract Services ($571,762) including janitorial ($280,412), alarm monitoring, and generator services, HVAC, plumbing, roofing, and electrical repairs, and Materials & Supplies ($94,350) for doors, hardware, lighting, filters, plumbing, and first aid supplies.

ENIVORNMENTAL COMPLIANCE
The Environmental Compliance Division budget includes funding for Contract Services ($292,800), including SB1383 implementation, recycling containers, and waste hauler oversight ($8,000), stormwater quality enforcement and watershed monitoring ($26,000).

Cleaning of storm drains, on-call environmental consultants, and climate change initiatives, and Permits and Licenses ($13,200) for stormwater and Air Resources District permits and MTNP invasive removals and North Dunes habitat monitoring services.

Attachment 1
45 FORESTRY, PARKS AND BEACH

The Forestry, Parks, and Beach Division budget includes funding for Contract Services ($1,426,200), including tree contractors for removals, pruning, stump grinding, MTNP tree work, beautification projects ($25,000), landscape maintenance contract ($179,200), and Materials and Supplies ($82,200) for trees, landscaping and irrigation supplies. Tree contract budget increased to reflect numerous dead/unsafe tree removals and the backlog of stumps, all part of a 3-year tree maintenance catch-up plan.

Attachment 1
46 PUBLIC SAFETY
The Director of Public Safety/Police Chief manages the Public Safety Department and three distinct functions:

POLICE DEPARTMENT
The Police Department is responsible for law enforcement and crime prevention within the City. The mission of the Department is to protect and serve, with the primary responsibility of ensuring the rights of citizens and visitors to live in peace and safety. It also oversees the management and operation of the Emergency Operations Center; the Volunteers in Policing Program that assists with daily clerical activities, errands, public outreach and special events and the City Community Emergency Response Team of volunteers ready to assist the community during an emergency situation.

FIRE DEPARTMENT
The Fire Department is primarily responsible for saving lives and protecting property through the prevention and control of fires. The Fire Department has operated under a contract with the City of Monterey since 2012. The Public Safety Department manages the contract with the City of Monterey and is responsible for oversight of needed equipment and supplies.

CARMEL FIRE AMBULANCE
Carmel Fire Ambulance provides advanced life support ambulance service to the residents of Carmel- by-the-Sea. Ambulance staffing includes paramedic-firefighters and emergency medical technician- firefighters to provide front line medical emergency response and allhazard response as a key component of the City’s public safety services. The City of Monterey also provides administrative oversight of this function through a contractual agreement managed by the Public Safety Department.
2023-2024 INITIATIVES AND ACCOMPLISHMENTS
▪ Vacancies were filled to include, (1) Police Chief/Director of Public Safety, (1) Police Officer, and (2) Dispatchers. Recruitments to fill the vacant Police Officer position continue.
▪ In the process of developing new contract language for Fire services with the City of Monterey.
▪ A new radio tower was purchased in conjunction with Monterey County and a grant through the Bay Area Urban Areas Security Initiative (UASI). The installation of the Attachment 1
47 tower is in its final stages and should allow the police department the ability to transition to the digital network used by all county law enforcement agencies. ▪ A new Ambulance and Fire Engine were ordered to replace aging vehicles. ▪ The police department is working to convert a majority of its fleet to fully electric vehicles. The department purchased two fully electric vehicles, one administrative vehicle and an electric pick-up, which will be used for patrol operations. ▪ Volunteer groups like (VIPS) volunteers in policing and (CERT) Community Emergency Response Team were utilized during essential situations such as storms and flooding.
▪ In January 2024, in Conjunction with City Departments, including Fire, Public Works, Library, Forestry, VIP’s, CERT, and County Agencies including, Monterey County Department of Emergency Management and CalFire, began a planned series of educational forums for the public called Carmel Prepares. The series will include bi-annual training for our village on how to prepare for emergencies in our village. ▪ The Volunteer in Policing (V.I.P.) program is composed of people who give freely of their time. They enjoy the satisfaction of providing worthwhile contributions to departmental personnel and the Community of Carmel. They are motivated by their interest in a higher quality of life for Carmel. The
VIP’s provide a variety of services for the village,
including acting as ambassadors for the village by
helping to direct and educate visitors. Our VIP’s
play an important role during emergencies,
including traffic control and operating and
maintaining our Temporary Assistance Center.
▪ Our Carmel CERT (Community Emergency Response Team) was also integral to our safety in the community and was activated multiple times during the storm emergencies to help with power outages, contacting residents, and assisting in life saving measures alongside police, fire, and ambulance services. Our CERT Team is made up of 30 dedicated volunteers who support our village as well as provide mutual aid to our neighboring communities. During emergencies or disasters, both selfreliance and the use of volunteers under professional direction will be necessary.

CERT provides community members with disaster related know how. They need to be self-sufficient and support others until further help can arrive. 2024-2025 PRIORITIES
▪ Continue recruitments to fill additional Police Officer positions and be fully staffed. ▪ Continue work towards the completion of the Police Department Remodel Project. ▪ Upgrade outdated computer equipment in police vehicles and parking scooters. ▪ Increase efforts in retention of police officers through positive leadership and training in preparation for promotional advancement and growth.

Attachment 1
48 ▪ Increase transparency and education of the use and placement of the Flock camera system.

BUDGET SUMMARY AND SERVICE IMPACTS

POLICE DEPARTMENT
▪ The FY 24-25 Budget decreases by $404,964 over the FY 23-24 Amended Budget. The Department will continue to focus on patrol and responding to public safety needs. ▪ The FY 24-25 Budget reflects an increase of $21,023 in services and supplies over FY 23-

24. The increase is primarily the result of upgrading aging equipment, and an increase in ammunition prices, providing CERT team uniforms and equipment, and training and supplies needed to fill vacant positions. Training expenses were increased to add Critical Incident Training, De-escalation and Racial Bias Training for all department members.

Contract services include expenses critical to operations including dispatch, jail booking and animal services provided by Monterey County; tasers, body and surveillance cameras and associated software and maintenance costs.

Attachment 1
49 FIRE DEPARTMENT
▪ The FY 24-25 Budget increases by $235,815 over the FY 23-24 Amended Budget.

Contract services include fire services provided to the Village by the City of Monterey ($3,253,597).
▪ The FY 24-25 Budget also includes funding for fuel ($19,000) and vehicle maintenance ($40,000) as Carmel is responsible for vehicle repair and replacement under the contract with Monterey.

Attachment 1
50 CARMEL FIRE AMBULANCE
▪ The FY 24-25 Budget decreases by $36,108 over the FY 23-24 Amended Budget.

Overtime reflects an anticipated decrease from FY 23-24 Estimated Actual due to being fully staffed. Contract services include station coverage by the City of Monterey as needed ($85,000), ambulance billing ($48,000), Monterey Fire management of Ambulance personnel ($27,222). Other major expenses include medical supplies ($48,150), fuel and vehicle maintenance ($21,000 and $37,000 respectively), safety equipment ($17,500) and required training to maintain credentials ($19,150).

Attachment 1
51 CAPITAL IMPROVEMENT PLAN (CIP)
Attachment 1
52 CAPITAL IMPROVEMENT PLAN

VEHICLE AND EQUIPMENT FUND
Table 1: FY 24-25 Recommended Vehicle and Equipment Acquisitions and Funding Source

Funding prioritizes public safety response capabilities, including enhanced communications and the purchase of new vehicles. A focus on environmentally friendly vehicles is evident in this year’s spending plan.

Ambulance
A contract to build the new ambulance and furnish equipment for $410,000 was executed last year. Delivery is anticipated in late 2025. Funding of $275,000 from the Vehicle and Equipment Fund and a $50,000 donation will be carried forward into FY 24-25 until the invoice is due. The estimated $85,000 balance for the ambulance will be programmed in FY 25-26.

Fire Engine
In October 2022, Council appropriated $880,000 and added the fire engine into the Fiscal Year (FY) 22-23 Capital Improvement Program (CIP). The Pierce Manufacturer Enforcer diesel fire engine has been ordered with delivery anticipated by late 2025. Although the purchase is complete, the project is being carried forward until delivery of the fire engine.

Public Works Dump Truck
In October 2022, Public Works’ 5-yard dump truck, a 1995 F700, broke down on Highway 1 with a seized transmission and had to be towed to the Vista Lobos parking lot where it still resides. Due to the age of the truck and the unavailability of a new transmission, despite an exhaustive search, staff recommended its replacement. In the interim, dump trucks have been rented periodically for certain tasks, but this approach is not sustainable.

Attachment 1
53 A dump truck is needed year-round by all divisions in the Public Works Department. The dump truck is often used for hauling materials such as debris, wood chips, tree-rounds, logs, sand, gravel, decomposed granite, and asphalt.

The estimated cost for a new 2024 or 2025 Ford F650 chassis (or similar) and a 5-yard dump bed is $150,000. Preliminary research has not yet resulted in a cost-effective electric vehicle alternative of the capacity we need, but additional research is warranted. With proper maintenance, a new truck should have a life expectancy of another 20+ years.

Police EV Patrol Vehicle
The Police EV Patrol Vehicle will replace a gas-powered 2017 Dodge Charger that has reached the end of its useful life. This vehicle continues to have mechanical issues, which require increasingly expensive repairs, and it is no longer reliable for emergency response.

The estimated cost of $90,000 includes the purchase of the vehicle and outfitting it for Police use. Electric Vehicle grants from 3CE will be pursued for all new electric vehicles.

While the amount of any grants is unknown at this time, staff estimates that up to $15,000 in rebates or incentives may be funded by 3CE. The existing gas-powered vehicle will ultimately be sold at a public auction.

Police Radios Lease (Years 4 of 6)
Twenty-two (22) radios were purchased in 2021 with a payment schedule of $30,000 per year for six years, with funding from the Vehicle and Equipment Fund.

Council Chambers AV Upgrade
In 2017, the Council Chambers' Audio Visual (A/V) system upgraded from standard to high definition. However, some of the equipment has reached the end of its useful life, and IT staff and vendors have determined that it needs to be replaced to be functional.

Upgrades are crucial to ensure smooth facilitation of hybrid meetings, accommodating both in-person and remote participation, especially via Zoom. Reliable audio and video systems are essential for seamless remote engagement and comprehensive meeting recordings.

Therefore, allocating resources for timely A/V infrastructure upgrades aligns with modern communication demands and demonstrates the City’s commitment to inclusive civic engagement. The estimated cost is $70,000.

Core Networks
The existing Arista switches that connect our computer server locations together were purchased in November 2016 and have reached the end of their useful life. The manufacturer no longer provides updates or support for these switches. The budget for new core networks is $50,000.

Network Firewalls
Purchased in April 2017, the existing network firewalls have reached the end of their useful life and must be replaced as soon as possible. The budget for new network firewalls is $180,000.

Attachment 1
54 CAPITAL PROJECTS FUND
Table2: FY 24-25 Recommended Capital Projects and Funding Source

STREETS
Paving Project : Conglomerate Paving Project FY 24-25
Annual Paving Project, FY 23-24: In April 2023, Council adopted a list of streets to be included in the FY 23-24 Annual Paving Project. The City’s annual Maintenance of Effort funding ($674,000 for FY 24-25) leverages external funds via TAMC from Attachment 1
55 Measure X, Gas Tax, SB 1 - the Road Maintenance and Rehabilitation Account (RMRHA), and the Regional Surface Transportation Program (RSTIP). This project includes design and construction of asphalt pavement overlays of five roadway segments, including Upper Ocean Avenue and Santa Lucia Avenue, between Dolores Street and Rio Road, removal of failed pavement sections and providing a slurry seal treatment on 21 road segments predominately in residential neighborhoods, and replacing broken sidewalks with permeable pavers along five road segments in the downtown area.

All of these improvements, which have a construction cost estimate of $1.68 million, will be included in the Conglomerate Paving Project for FY 2024-25; however, several of the most expensive roadways may be included in the construction bid documents as additive bids and awarded if sufficient funding is available upon receiving the bid proposals.

Annual Paving Project, FY 21-22: Construction of this Project is substantially complete. This project included paving overlays along Junipero Street, between Third and Fourth Avenues, at the Junipero-Camino del Monte intersection, and along Santa Fe Street between Fifth and Sixth and Avenues.

Also, the City’s first application of a micro-surfacing pavement treatment was completed along Junipero Street, between
Fourth and Ocean Avenues, and along San Carlos Street,
between Eighth and Thirteenth Avenues. Four large
downtown sidewalk repairs were also completed. No budget remains from this project.

Due to higher than anticipated construction bids received for this Annual Paving Project for FY 21-22, four additive bid items were not awarded for the construction contract. The bid items were for paving overlays along San Antonio Avenue, between Fourth and Ocean Avenues, San Antonio, between Ocean and Eighth Avenues, Monte Verde Street, between Fourth and Ocean Avenues, and along Torres Street, from Third to Fifth Avenues. All four of these bid additives, which have a construction cost estimate of $835,000, will be merged into the Conglomerate Paving Project FY 24-25.

Concrete Street Repairs, FY 22-23: The design of this project is complete and “shovel ready” for construction; however, this construction cost estimate is nearly $3 million.

Therefore, the majority of this project will be shelved until future capital funding becomes available. The project includes repairs and resurfacing of concrete intersections at Ocean-San Antonio, San Carlos-Fifth, San Carlos- Sixth, and ADA Attachment 1
56 ramps and bulb out improvements at the Junipero-Seventh intersection. Also, structural repairs and resurfacing are included along Ocean Avenue, between Monte Verde and San Antonio, as well as the three intermittent side streets, up to the sidewalks, on both sides of Ocean Avenue. In addition, the project includes repairs and resurfacing of San Carlos Street between Fifth and Sixth Avenues.

The project balance of $792,000 is being reallocated into the Conglomerate Paving Project for FY 24-25. Only one portion of this project will be included in the Conglomerate Paving Project – Reconstruction of the San Antonio-Ocean Avenue intersection – which has a cost estimate of $293,000.

San Antonio Pathway Reconstruction
The San Antonio Avenue Pathway, located on the west side between Second and Fourth Avenues, was damaged by winter storms in early 2023. FEMA funding was promptly applied for reconstruction costs, but this effort was not successful.

Funded out of the Public Works/Streets and Forestry operating budgets for FY 23-24, a structural engineering firm designed the repairs to restore the pathway. The design process revealed that the original construction was deficient in that while the original buried concrete piers were fine, the wooden lagging supporting the pathway did not accommodate proper drainage, and the connection of the wooden posts supporting the grape stake fencing were not properly connected to the piers. Consequently, stormwater traveled along the west edge of the fencing, rotting the lagging and the bottom of the posts, and resulted in the fence falling down.

The repair involves excavating around 44 concrete piers, constructing concrete pier caps to support new column posts, replacing the wood lagging, installing a drainage facility, restoring the Pathway, and installing grape stake fence to appear as the original fence. The FY 24-25 budget of $550,000 will cover the cost of construction and construction management.

Sunset Center Retaining Wall Repairs
Sunset Center initially requested this project. In FY 23-24, $40,000 was allocated to the project to prepare structural engineering evaluations and repair plans for deteriorated walls surrounding Sunset Center. The design was completed for five retaining walls. In the north lot, a 100-foot long, Carmel stone wall along Eighth Avenue is leaning, and there are significant cracks in the wall along Mission Street. In the south parking lot off of Tenth Avenue, there is a rotted wooden wall on top of a granite retaining wall. These and other walls require various structural repairs, restoration treatments, and replacement of fencing and railings. The FY 24-25 budget for construction and project management oversight is $550,000.

Attachment 1
57 Lincoln/Fourth Trestle Bridge
Originally built in the 1930s, the Lincoln Street/Fourth Avenue wooden trestle bridge was last formally inspected in 1998 when the footbridge was modified to provide parking for two homes adjacent to the bridge. Since then, Public Works crews have made numerous repairs to damaged boards, posts, and railings. Currently, there are some rotten deck boards, loose posts, and noticeable settling of concrete pier blocks on the east side of the bridge.

This project consists of hiring a structural engineering firm to assess the condition of the bridge, identify needed repairs and their urgency, and prepare cost estimates. The budget is $40,000. Depending on the condition findings, the design plans, CEQA review, and construction of the repairs would be programmed in subsequent fiscal year CIP budgets.

Ocean Avenue, Carpenter Street to Highway 1 – Monterey County Project Ocean Avenue, between the east City limits near Carpenter Street and Highway 1, is currently inundated with potholes and pavement distress. The pavement condition has deteriorated to the point that a minor paving resurfacing treatment would be insufficient, and the roadway may need to be reconstructed in some areas followed by an asphalt overlay. While located in the jurisdiction of Monterey County, Ocean Avenue is a primary arterial entryway from Highway 1 into the central downtown core of the City of Carmel.

Numerous calls have come in over the years requesting the City to repair these potholes, until the callers are notified that this is the responsibility of the County. Public Works has contacted the County’s Public Works Department numerous times to alert them to potholes.

While the County is typically very responsive to the City’s requests, repairs can be delayed at times, particularly following storms.

This new CIP project for FY 24-25 would allow the City to launch this major street improvement project on behalf of, but at the full cost of, the County. The first step in this process would be to enter into a funding agreement, to be approved by the County Board of Supervisors and City Council, outlining the work to be performed by the City and its consultants and contractors, payment or reimbursement of all direct costs by the County, and a mechanism to allow the City to terminate the agreement at any time.

While these necessary roadway improvements would clearly benefit citizens of Carmel and the County alike, this project does pose risks. For example, the required Encroachment Permit from CalTrans could potentially trigger intersection improvements at Highway 1, such as modified turn movement and/or signalization updates. The roadway design must include drainage improvements, repairs and/or additions to sidewalks along both sides of the street, and accessibility ramps. Additional project implementation and construction issues that must be addressed include CEQA documentation, environmental permits, community outreach, and reconciliation of design and contracting standards between the County and City.

Attachment 1
58 The City does not currently have the capacity to implement this project. Therefore, one of the City’s Project Management consultants would be needed for this project. Next, a thirdparty engineering/environmental firm must be retained for engineering design, permitting, and bid phase and construction engineering support. While the vast majority of the work would be performed by consultants and contractors, all at the expense of the County, the impact to City staff cannot be understated.

The County provided an initial cost estimate of $500,000 for the paving portion of the project. Preliminarily, it appears that the full cost for project management, design, and construction, including drainage, sidewalks, ADA improvements, and traffic control, will be substantially higher.

DRAINAGE
Mission Trail Nature Preserve 3 Stream/Drainage Projects This carry-over project consists of the first three of eight stream restoration and drainage improvements recommended in the 2019 MTNP Stream Stability Study. Acquisition of environmental permits from the U.S. Army Corps of Engineers, California Department of Fish and Wildlife Service, and Water Quality Control Board delayed the project for one year. The remaining funding of approximately $60,000 will be carried over into FY 24-25 for construction.

Construction includes three projects: 1) Drainage improvements along the Doolittle Trail, 2) swale reconstruction on the Willow Trail: and 3) an elevated boardwalk on the Willow Trail. A construction contract was awarded in May 2024 in the amount of $394,380.

Funding is available from a $178,000 California State Parks Per Capita Grant, the remaining balance of $163,169 from the FY 23-24 CIP Contingency Fund account, and $67,599 from FY 24-25 CIP funds. Construction is scheduled to be completed by late 2024.

Drainage System Repairs
The 2023 City-wide Drainage Master Plan Update identified numerous spot repairs needed for our existing underground storm drainpipes, as well as reconfigurations to eliminate significant "bottlenecks" in the drainage system. The Master Plan divided these repairs into 6 high priority repairs valued at $3.7M, 9 medium priority improvements at $7.7M, and 8 low priority projects at $3.3M. This Project, and subsequent projects programmed in the 5- year CIP, are intended to address these high priority issues.

In July 2023, Neill Engineers was issued a $159,100 Amendment to their Professional Services Agreement to design four of these high priority drainage system repairs at: 1) Eleventh Avenue (Carmelo to San Antonio Streets), 2) along Lincoln Street, from First to Second Avenues, and along Second Avenue, from Lincoln to Monte Verde Streets, 3) along Santa Fe Street from Eighth Avenue south to the MTNP outfall, and 4) a new headwall at Acacia Way/Flanders Way. The design plans are substantially complete, as are the required Attachment 1
59 CEQA documents for two locations, and the acquisition of one small drainage easement is in progress.

The remaining FY 23-24 funding of approximately $414,000 will be carried over into FY 24-

25. However, the revised construction cost for all four drainage projects is $1.052M, and supplemental funding of $638,000 is required to complete this project.

Junipero Bypass Drainage Project - Design
As noted in the project description above for Drainage System Repairs, the 2023 Storm Drain Master Plan Update divided identified drainage concerns into high, medium, and low priorities. Modeling results indicated significant hydraulic inadequacies in the storm drain in the vicinity of Junipero and Mission Streets between Seventh and Ninth Avenues.

Currently, stormwater from the north and eastern portions of the City’s watershed is channeled along Junipero between Fifth and Seventh Avenues. However, the pipeline then is inefficiently routed west to Mission Street, south to Ninth Avenue, and east back to Junipero Street. This jog is referred to as the Bypass.

The objective of this high priority project is to install a continuous, 36-inch drainage pipeline along Junipero, between Seventh and Ninth Avenues, to eliminate the bypass bottleneck. The upstream pipeline along Junipero, between Fifth and Seventh Avenues, is a medium priority project requiring a 30-inch parallel pipeline; however, it is most costeffective and efficient to combine these two adjacent segments for design.

This new FY 24-25 project allocates $175,000 for design of both pipeline segments. The cost of construction would be on the magnitude of $2.5M. Consequently, construction may need to be split to accommodate future funding availability.

FACILITIES
Police Building Project This is a carry-over project
advancing approximately $2.6M into the FY 23-24 CIP
Budget. In 2023, Council formed an Ad Hoc Committee
and awarded a $300,000 Professional Services Agreement
to an architectural firm. In FY 23-24, the architectural team and their engineering consultants prepared a
Condition Assessment Report of the Police Building which is available on the City’s website. The architect also
developed a Police space programming needs assessment
to accommodate modern police operations and standards.

In January 2024, the results of these tasks were
introduced to Council. Preliminary discussion was
introduced to consider advancing the project only into the schematic design phase to obtain more information to
Attachment 1
60 consider the possibility of significantly renovating the Police/Public Works building at the existing site, completely reconstructing the building at the existing site, or constructing a new Police Building at a different site and subsequently renovating and repurposing the existing building. Prior to consideration for advancing the program into schematic design, Council held a series of public meetings to solicit public input, and tours were conducted of the Carmel station and a new police station in Salinas.

Throughout this major project, a number of urgent safety repairs were completed in the Police Building, including electrical panels, steel doors, security systems, lighting, evidence lockers, dispatch room renovation, and others. These repairs are also funded by this CIP project.

The FY 23-24 project balance of approximately $2.6M will be carried over into FY 24-25 to cover remaining costs for schematic design, cost estimating, and potentially commencing design development of a selected alternative. Funding should also be earmarked to continue with a consultant project management firm, as well as to continue to make necessary safety repairs in the building. Additional public outreach will also continue.

ADA Upgrade, Year 7
This project would continue the City’s annual program of modifying public facilities, as identified in the City’s 2018 Americans with Disabilities Act Transition Plan, to improve access to the disabled. Last year, the City increased its annual allocation from $15,000 to $20,000 to continue to demonstrate good faith efforts to implement these improvements and to reflect higher costs due to inflation.

As has been the case in the past, the project will be managed, and improvements will be installed, by the Facilities Maintenance Division supplemented by vendors as needed.

Tentative projects will include installing ADA-compliant railings, drinking fountains, restroom facilities, and signage.

Norton Court Garage Security Access System
The Norton Court parking garage access control system provides security for the underground parking garage. The outdated system no longer has the ability to program new access cards and is in disrepair. The new system will have the ability to be programmed by staff, rather than only by the vendor, and includes replacing two card readers at the pedestrian access points into the garage. The cost estimate is $15,000.

Sunset Center – North Lot Electrical Panel
In July 2023, Council awarded a Professional Services Agreement to an electrical engineering consultant for three projects, including this project for a fee of $18,240. Based on the 60% design plans and consultations with PG&E and Sunset Center, this project will allow the City to install additional EV charging stations to cover the entire west wall of the parking lot.

Attachment 1
61 A two-pronged approach is being pursued. First, the existing, undersized electric panel along the Eighth Avenue ramp will be relocated down into the parking lot and rebuilt. This relocated panel will contain a new commercial service meter for the parking lot lights and a separate meter for the existing and future EV chargers. A new PG&E transformer, which will be installed by PG&E at no cost to the City, will provide power to all of the EV charging stations at discounted energy rates.

This project was initially funded at $100,000 in the FY 23-24 CIP, and remaining funds will be rolled over into the FY 24-25 CIP. It is anticipated that 3CE will provide a rebate or other incentives for EV charging stations, but for an amount currently unknown.

Vista Lobos 3 EV Charging Stations and Building Electrical Panel This is a follow-on project to the $75,000 Electrical Panel Assessments at Four Buildings Project which was funded and completed in FY 23-24.

In July 2023, Council awarded a Professional Services Agreement to an electrical engineering consultant for three projects, including this project, for a fee of $24,110. The design is currently 90% complete. This “new” $400,000 project for FY 24-25 will cover the cost for construction of a new electrical system to allow for the expansion of three more EV charging stations along the south wall of the Vista Lobos parking lot, tying into a new transformer to be set by PG&E at no cost to the City. Funding will also cover the cost to reconstruct and upsize the electrical service at a new electrical panel located on the south wall of the Vista Lobos building.

One of the three new EV stations will be high capacity to charge the City’s electric street sweeper. The other stations will be available to the public. Rebates from 3CE are anticipated to partially cover the cost of the EV charging stations. Staff anticipates up to $60,000 from 3CE,, but the actual amount is unknown at this time.

Facility Renovation Projects
Two carry-over facility renovation projects remain in the Capital Improvement Plan: The City Hall Roof Replacement Project and the Sunset Center Cottage Window Repairs Project.
▪ City Hall Roof Replacement: The City Hall roof was last replaced in 1984 and is 16 years past its warranty. Several roof leaks have been repaired by contractors and staff over the past few years as the roof progressively deteriorates. Contract documents for this project were extracted from a larger, bundled facilities renovation project which resulted in very high bids which were subsequently rejected by Council. This “shovel ready” project is anticipated to be constructed by Fall 2024.

The cost estimate has increased to $350,000, and supplemental funding is being programmed to cover the construction shortfall in FY 24-25.

Attachment 1
62 ▪ Sunset Center Cottage Window Repairs: The Cottage Window Repairs will be advertised for bids following the City Hall Roof Replacement. Contract documents for this project have also been extracted from the larger facility renovation projects.

Unlike the original bidding documents in which all work had to be done at the jobsite, this time, the contractor will have the option of physically removing affected windows, performing hazardous materials remediation, wood framing repairs, and painting at their own shop, and replacing them at the site. The cost estimate has increased to $200,000, and supplemental funding is being programmed to cover the construction shortfall in FY 24-25.

FOREST, PARKS AND BEACH
MTNP Doolittle Footbridge and Path Realignment
The Friends of Mission Trail Nature Preserve have expressed an interest in donating labor and materials to ultimately construct a new footbridge in the Redwood Grove at the northern end of Doolittle Trail in the MTNP. This footbridge was previously referred to as the Laiolo Bridge.

The proposed footbridge would provide safer creek crossings for pedestrians who currently cross over an often-wet concrete ford. This project was also included in the 2019 MTNP Stream Stability Report as the fourth of eight recommended projects along the MTNP creek bed.

The FY 24-25 budget for this new project is $175,000. These funds would be used for structural and civil engineering designs for construction of a new bridge, removal of a portion of the concrete ford in the creek, and minor realignment and regrading along the Doolittle Trail. However, a portion of the ford must remain within the easement used by the Carmel Area Wastewater District. Environmental permitting for the project may include approvals and permits from the US Army Corps of Engineers, California Department of Fish and Wildlife Service, Coastal Commission, and/or the Regional Water Quality Control Board. Construction funding would be programmed in a subsequent CIP budget.

Scenic Pathway Hardscape Renovations
In FY 23-24, the City appropriated $100,000, and City
support group Carmel Cares committed to matching
these funds, to continue to improve the Scenic Pathway.

City expenses to date from this fund in FY 23-24 has
been minimal and includes additional lumber and
hardware for barrier rail and pathway widening
improvements. Remaining funds will be carried over into FY 24-25.

Attachment 1
63 Proposed additional improvements along the Pathway include: signage, irrigation repairs, pathway trim edging, decomposed granite repairs, barrier rail extensions, and other hardscape amenities. Also, Council requested the project team to develop a holistic game plan to cover the complete renovation of the Pathway; however, certain contracting methods may trigger State public works contracting regulations, and these issues are currently under review.

ENVIRONMENTAL
Coastal Engineering Study, Phase II
This Study was identified in the City Council-adopted Climate Adaptation Plan as a critical document for sea level rise resilience planning to ensure the City has the tools necessary to make decisions related to the long-term maintenance of coastal resources. All five primary tasks in Phase I are complete, including the Shoreline Infrastructure Condition Evaluation, Shoreline and Beach Exposure Modeling, Coastal Hazard and Sea Level Rise Vulnerability Assessment, and Policy Review. Key findings were presented to the Forest and Beach Commission, Climate Committee, and City Council in 2023 and 2024.

Phase II is a carry-over project that is now underway, and will focus on hazards policy review and revisions, public outreach and engagement, socio-economic analysis, adaptation strategies, pathway development, and development of the City’s Local Coastal Program Amendment. This project is fully funded under a recently-executed, $500,000 Local Coastal Program Grant Agreement by the California Coastal Commission.

Shoreline Infrastructure Repairs
The first phase of the Coastal Engineering Study included a Shoreline Infrastructure Condition Assessment. The Assessment concluded that 2-4 existing seawalls need repairs, with the highest priority repair being the
Fourth Avenue Outfall. Eleven coastal
access stairs were assessed with 9 stairs
needing repairs, and two stairs are
currently closed due to structural damage
resulting from winter storms. In addition,
of the 6 rock revetments, 4 are high priority
in need of repair; one in its entirety and
others in some portions. The total cost for
engineering design, environmental permits,
and construction for all of these repairs will
likely exceed $2 million over the next few
years, as outlined in the 5-Year CIP.

Attachment 1
64 This Shoreline Infrastructure Repair Project will initiate the engineering and design of the highest priority repairs, as well as to repair the damaged beach access stairs with similar materials as a maintenance project. This approach is expected to streamline the regulatory approval process. This initial project will also allow the City to better estimate costs and phasing to complete future shoreline infrastructure repairs. A Request for Proposal has been prepared to retain a consultant with expertise in environmental permitting, coastal and structural engineering, and cost estimating.

Project funding for FY 23-24 was initially set at $250,000. An additional $100,000 previously budgeted for the Coastal Engineering Study, Phase 2 was reallocated to the Shoreline Infrastructure Project, and a FEMA grant of approximately $50,000 was received for beach stair repairs. All funds will be carried over into FY 24-25.

Shoreline Wall- Fourth Avenue Outfall
The Fourth Avenue Outfall is located on Carmel Beach west of the North Dunes Habitat Restoration site and north of Ocean Avenue. This seawall was identified as the highest priority seawall repair in the 2023 Carmel Beach Coastal Infrastructure Condition Assessment Report, prepared as part of the Coastal Engineering Study, Phase I. The seawall foundation is partially undermined, there are a number of significant structural cracks, and reinforcing steel bars have been exposed by spalling concrete and are corroded.

The seawall is at the end of its service life and poses a potential risk to beach users, particularly during a major storm or a seismic event. The Report recommended complete reconstruction of the seawall including the drainage box culvert outfall.

This is a new FY 24-25 project with an initial budget of $250,000 for engineering design and environmental permitting. For efficiency and cost-effectiveness, the design and environmental review are proposed to be completed in conjunction with the Shoreline Infrastructure Repairs Project described above. Construction of the project is currently estimated at $900,000 and is included in the 5-Year CIP for FY 25-26.

PG&E Rule 20A Undergrounding
In 1967, in response to local government interest in enhancing the aesthetics of their communities, the California Public Utilities Commission (CPUC) established electric tariff Rule 20 which includes various programs for undergrounding existing overhead utility lines. Rule 20A is the primary program for municipalities to underground utilities in urban areas that meet certain criteria. Since Rule 20A funding is primarily from ratepayer electric bills, proposed undergrounding projects must provide a benefit to the public at large.

Currently, the City is inactive in the program but has a work credit balance of $667,639. As the Rule 20A program phases out from aesthetic-based projects to wildfire risk-based programs, a portion of the City’s credits have already been reallocated to shovel ready projects in other cities. In order to freeze the remaining credits, the City would need to formally establish an Underground Utility District(s) by December 31, 2024.

Attachment 1
65 Two potential undergrounding projects/districts have been proposed by staff and considered by the City Council as follows:
▪ North side of Ocean Avenue, from San Antonio Avenue
extending 800 feet west to the end of the Del Mar Parking Lot. ▪ In the Mission Trails Nature Preserve and along the west side of the Willow Trail extending 1,100 feet south from the entrance gate at Eleventh Avenue.

Both districts would ultimately result in the removal of up to 10 power poles and associated overhead electric, telephone, and cable tv lines. Both districts also would require 7-8 property owners to convert their homes from overhead to underground services at the time the utility lines are undergrounded. Upon Council’s adoption of a Resolution selecting a District(s), a formal application is submitted to PG&E to commence the design, utility coordination, and easements, environmental permits, and funding agreement processes. Currently, PG&E estimates a 10-year lead time until actual construction would begin.

This has long been a carry-over project as funds have accumulated over many years. The project is listed in the FY 24-25 CIP since adoption of the Underground Utility District for Rule 20A in this fiscal year would upgrade the City’s program from inactive to active status – the first key milestone for this long range project.

LIBRARIES
Library Master Plan – Phases II-IV
This project complements the Library’s Strategic Plan objective to develop facility plans for the Harrison Memorial and Park Branch library buildings. In January 2023, Council awarded a $55,000 Professional Services Agreement to Jayson Architecture to prepare the Master Plan. The Master Plan was completed in mid-2023 and presented to the Library Board of Trustees and City Council in early 2024.

The Harrison Memorial Library is 96 years old, and the Park Branch Library was last significantly remodeled 35 years ago. Phases II-IV will encompass community outreach, conceptual designs, and construction documents for the renovation of the first building – tentatively the Harrison Memorial Library. Renovations to the facilities are intended to ensure that both library facilities are able to continue to serve the community well into the future. A Request for Proposals is being prepared to retain an architect to design the proposed renovations. The Carmel Public Library Foundation will be embarking on a significant fundraising campaign to support proposed renovations to both library buildings.

In FY 23-24, $100,000 was allocated for this Project and will be carried over into the FY 24- 25 CIP.

Attachment 1
66 Park Branch Library – Windows and Dry Rot Treatment
Throughout the Park Branch Library, there are a number of windows which are well over 30 years old that need to be replaced. These windows have become unsealed or have cracks, and the loss of integrity in the seals contributes to heat loss in the building during the colder months. This detracts from the City’s efforts to be as carbon neutral as possible with regards to energy usage.

In addition, the front of the building (south facing) is showing significant signs of dry rot around the windows, including peeling paint and framing detaching from the building.

Repair costs will be approximately $45,000.

CIP PLANNING
CIP Contingency Fund
In FY 23-24, a $500,000 Contingency Fund was established. This account was used during the fiscal year as follows: $262,779 to award the construction contract for the FY 21/22 Paving Project, $163,169 to award the contract for the MTNP 3 Stream/Drainage Project, $42,378 to award the contract for the MTNP Tank and Pump House Removal and Well Decommissioning Project, $17,860 for the Urban Forest Master Plan to cover unanticipated funding shortfalls from the CalFire Grant, and final payment of $13,814 for the electric Street Sweeper following the 3CE rebate. This was the first year for this contingency fund account and has proven to be successful to complete the above-named projects.

Similarly, for FY 24-25, $400,000 will be budgeted to cover any shortfalls to award construction contracts or to close out projects. Any balance should be carried over into FY 25-26.

Attachment 1
67 KEY PROJECTS AND FUNDING NEEDS FOR THE SUBSEQUENT FOUR (4) FISCAL YEARS OF THE 5-YEAR CAPITAL IMPROVEMENT PLAN (CIP) The 5-year CIP has been updated and is available on the City’s website. Although only the first Fiscal Year 24-25 would be funded as part of the City Budget, the remaining four years serve as a planning tool to identify in advance anticipated future projects.

The 5-year CIP is a “snapshot” in time of anticipated needs for future infrastructure revitalization funding in the outer years. As a dynamic planning document, the CIP for Years 2-5 is subject to change as updated information becomes available. A multi-year plan also accommodates scheduling larger projects into multiple years to allow more projects to be underway concurrently, and to allocate construction funding only when those funds are needed.

Note that the needs for infrastructure renewal and facility repairs far exceed the anticipated revenue over the subsequent four years as well.

The following are key projects, by asset category and preliminary budget estimates, for Years 2-5 only:

Drainage: Includes highest priority drainage repairs and upsizing for 20-year storm events as identified in the 2023 Storm Drain Master Plan Update, bottleneck reconfigurations, and CDS reconstruction = $3.33M.

Streets: Annual paving MOE and TAMC match funding for Years 2 and 3 are earmarked for the FY 23 Concrete Street Repair Projects. For Years 4 and 5, traditional paving overlays, micro-surfacing treatments, slurry seals, sidewalk repairs, parking lot resurfacing, and a bicycle master plan are proposed = $4.1M City plus $1.7M external funds via TAMC.

Facilities: As a placeholder, a total allocation of $22M is included to cover final design and construction of a Police Building Project (whether a new station or renovation of the existing building) plus launching the design of the Public Works building renovations. This major project will obviously require a dedicated funding source once a project concept is approved, and these “plug in” numbers need to be adjusted as more information and scheduling becomes available.

Additional facility renovation projects include relocation and renovation of the Scout House wherein the sale of the existing parcel may offset the costs for renovation, critical repairs and Building Code corrections to City Hall and the Fire Station, the Sunset Center Portico, repairs to park restrooms, and facility condition assessments, painting, and railing repairs = $25.9M.

Attachment 1
68 Forestry Parks, and Beach: Design and construction of the remaining 5 MTNP stream stability projects should continue during this time. Funding for construction of the MTNP Doolittle Bridge was proposed in Year 2, for a total of = $1.50M.

Fleet and Equipment: Replace aging Police, Fire, and Public Works vehicles with Electric Vehicles whenever possible. Replace broken and outdated heavy equipment, including Street’s asphalt patch truck, Forestry’s bucket truck and water truck, Police’s speed radar trailer and animal control vehicle, and other vehicles and equipment nearing the end of their useful lives. Complete funding for the Police radios lease and the ambulance purchase = $1.48M plus $0.12M 3CE rebates.

Environmental and Climate Change: Shoreline
infrastructure repairs, notably reconstruction of the Fourth Avenue outfall/wall, as well as for repairs to structurallydamaged beach access stairs and revetments, and climate action projects and energy upgrade initiatives = $3.85M IT: Equipment replacements, security upgrades, Police records management system, and GIS applications expansion =
$0.58M.

Library: It is difficult to estimate costs for the library as major renovations proposed under the Library Master Plan are largely subject to donor funding. As a placeholder, for Years 2- 5, the 5-Year CIP plan assumes the design and construction of the first major renovation project with a cost to the City of $800,000, supplemented by significant private donations, = $0.8M plus donations of millions of dollars. These “plug in” numbers need to be adjusted as more information and scheduling becomes available.

Years 2 - 5 Needs Summary
The total estimated investment of City funds identified for Years 2-5 is $42M. This amount exceeds anticipated CIP fund revenues over those four years plus any ending fund balance that may be available in those future years. However, without proper investment, the City's infrastructure will further decline into worsening conditions with more costly deferred repairs. Therefore, additional revenue sources should be considered.

Attachment 1
69 DEBT SERVICE
FUND 401
Attachment 1
70 DEBT SERVICE – FUND 401
Debt Service includes payments for the 2020 Refunding Lease Revenue Bonds. These payments total $519,100 as shown in Table 1, FY 24-25 Debt Service, below. 2020 Refunding Lease Revenue Bonds
On September 10, 2010, City Council approved issuance and sale of certificates to finance improvements and the Sunset Center (the Sunset Theater Project), including the refinancing of the City’s lease payment obligation related to the preliminary financing of the Sunset Center (the 2010 Refunding Lease Revenue Bond). The COP of approximately $7.6 million included a maturity date of November 1, 2031. On September 3, 2020, the Public Improvement Authority and City Council determined that a refunding of the 2010 Bond was in the City’s best interest to take advantage of historically low interest rates and to achieve cash flow savings in light of the economic impact of the pandemic on the City’s revenues. The 2020 Refunding Lease Revenue Bond of approximately $3.9 million matures on November 1, 2032. The City made its first principal payment in FY 23-24 after two years of interest only payments.

Funding Sources
General Fund revenue is the source of funding for debt service obligations. The General Fund (Fund 101) will transfer $519,100 to Debt Service (Fund 401) in FY 24-25.

Attachment 1
71 OTHER FUNDS
Attachment 1
72 OTHER FUNDS OVERVIEW
The City uses a fund accounting structure, which is an accounting structure to record and track resources that are limited in use by law or governing agency. The major governmental funds are the General Fund, Measure D and Capital Projects. The first set of funds listed below are discretionary, meaning there are no legal or policy-related restrictions on their use and can be used at the discretion of Council for services and projects.

General Fund (Fund 101)
Most of the City’s revenues and the expenditure budgets for City services and daily governmental operations are housed within the General Fund (Fund 101) and this is where the majority of the City’s financial activity occurs. The major revenue sources associated with the General Fund include property tax, the City’s share of the statewide sales and use tax, charges for services, franchise fees, business tax, and intergovernmental revenue.

These revenues are considered to be general in nature. Throughout this budget document, the General Fund is also referred to as the Operating Budget and City policy recommends a 15% Reserve.

Hostelry Fund (102)
This fund is used to account for the transient occupancy tax and is intended to fund the portion of the municipal budget covering community and cultural and recreation activities including, but not limited to Sunset Center and the Forest Theater, parks, public facilities and municipal structures, and parking lots; acquisition and improvement of parks, recreation land and other municipal purposes as determined from time to time by the City Council; provided, that all such uses shall be in accordance with the General Plan of the City and General Fund for usual and current expenses. City financial policy recommends a reserve of 10% of revenues.

Measure C Sales Tax (Fund 206)
Carmel voters approved a temporary (10 year) 1% increase in the transactions and use tax in 2012 known as Measure D. On March 3, 2020, voters approved Measure C, which increases the tax to 1.5% for 20 years. Measure C may be used for debt service, capital projects and general City services.

RESTRICTED FUNDS
The next set of funds are restricted as there are requirements prescribed by the local, state or federal governmental agencies regarding how these funds may be used.

Attachment 1
73 Gas Tax (Fund 201)
This fund is used to account for revenues collected in accordance with California Streets and Highway Code.

Transportation Safety (Fund 202)
Measure X, a 30-year 3/8 of one-percent transactions and use tax, was passed by the voters in November 2016 to fund transportation safety and mobility projects in Monterey County.

This fund accounts for the expenditures for eligible transportation safety projects.

COPS Grant
This fund accounts for the expenditures for the Department of Justice Community Oriented Policing Services (COPS) grant for public safety. This fund transfers into the General Fund for the Police Department budget.

Parking in Lieu (Fund 204)
This fund is used to account for activities associated with parking in-lieu fees as prescribed by Carmel Municipal Code Section 17.38.040.

Asset Seizure (Fund 205)
This fund accounts for expenditures related to asset seizures.

CAPITAL PROJECTS FUND
Capital Projects (Fund 301)
This fund accounts for resources utilized, committed, assigned or restricted for capital projects.

DEBT SERVICE FUND
Debt Service (Fund 401)
This fund accounts for activities related to the repayment of the Certificate of Participation, Pension Obligation Bond and capital lease obligations.

INTERNAL SERVICE FUNDS
Workers Compensation (Fund 501)
This fund accounts for workers’ compensation insurance provided to departments on a cost reimbursement basis.

Attachment 1
74 Other Post-Employment Benefits (OPEB) Liability Reserve Fund This fund accounts for other post-employment benefits.

Vehicle and Equipment Replacement Fund
This fund is to set aside financial resources for future purchases of replacement equipment essential to the operations of the City.

AGENCY FUNDS
Refundable Deposits
This fund accounts for monies received that are unearned and required to be returned by the City.

Attachment 1
75 PROJECTED FUND BALANCE
Attachment 1
76 PROJECTED FUND BALANCE AS OF JUNE 30, 2024
Attachment 1
77 PROJECTED FUND BALANCE AS OF JUNE 30, 2025
Attachment 1
78 FINANCIAL POLICIES
Attachment 1
79 BUDGET POLICIES AND PROCEDURES
The budget process for the City of Carmel‐by‐the‐Sea involves the citizens, City Council, and staff. Each person plays a critical role in the development of the budget for the upcoming year. The annual budget and operating plan balances the public service demands of the community with the fiscal resources of the City. It is intended to achieve the goals and objectives established by the City Council.

The goal of the City Administrator is to present a balanced budget to the City Council for review and adoption. A balanced budget is a budget in which sources meet or exceed use.

Available funding sources shall be at least equal to recommended appropriations. As a general rule, the year‐end undesignated General Fund balance should not be used to fund ongoing operations.

As set in the Carmel Municipal Code prior to the beginning of each fiscal year, the City Council shall adopt a budget for expenditures and anticipated revenues. On or before February 15th of each year, the City Administrator will present to the City Council a proposed budget schedule. The City Administrator prepares and submits to the City Council a proposed operating and capital budget for the forthcoming fiscal year. The City Council shall adopt the budget by July 1st.

The City Administrator shall have the right to approve the transfer of appropriations within a departmental budget; however, no additional positions shall be created without the authorization of the City Council. All transfers of appropriations between departments or in regards to capital items or projects shall be approved by the City Council. The City Administrator shall be charged with the responsibility of controlling the expenditures for all departments in accordance with the approved budget. A report on current year revenues, expenditures and fund balances shall be maintained.

The accounts of the City are organized on the basis of funds. A fund is an independent fiscal and accounting entity with a self‐balanced set of accounts. The minimum number of funds is maintained consistent with legal and managerial requirements. Annually appropriated budgets are legally adopted on a budgetary basis for the governmental fund types (General Fund, Special Revenue Fund, Debt Service Fund, and Capital Projects Fund) and are controlled on a fund and departmental level. These funds are used to account for most of the City’s general government activities. Governmental fund types use the flow of current financial resources measurement focus and the modified‐accrual basis of accounting and budgeting. Expenditures are recognized as encumbrances when a commitment is made. Unencumbered appropriations lapse at year‐end.

Attachment 1
80 FINANCIAL POLICIES AND PROCEDURES
The City of Carmel‐by‐the‐Sea has strong financial policies that provide City Council direction to allow staff to provide sound fiscal planning and continued management of fiscal integrity. The financial policies are divided into five categories: Capital Budget Policies, Operating Management, Fund Balance Policy, Debt Policies, and Investment Policies. The City has financial policies that are adopted by the City Council with review every two years during the budget development process. The financial policies help ensure that the City maintains a healthy financial foundation into the future.  The goal of these policies is to promote:
 An extended financial planning horizon to increase awareness of future potential challenges and opportunities
 Setting aside reserves for contingencies, replacement of capital equipment, and other similar needs
 Maintaining the effective buying power of fees and charges and increasing cost recovery where directed to do so
 Accountability for meeting standards for financial management and efficiency in providing services
 Planning for the capital needs of the City
 Maintaining manageable levels of debt while furthering quality bond ratings  Communication to residents and customers on how the community goals are being addressed

CAPITAL BUDGET POLICY
The City develops an annual five‐year plan for capital improvements; it includes project design, development, implementation, and operating and maintenance costs. Each project in the Capital Improvement Plan (CIP) shows the estimated capital and on‐going maintenance costs, known and potential funding sources and a design/development schedule. As used in the CIP, projects include land acquisition, buildings and facilities construction; these projects do not have a cost threshold. A capital outlay (fixed asset) purchase is any single item or piece of equipment that costs more than $10,000 and has an expected useful life exceeding one year. The development of the Capital Improvement Plan is coordinated with the development of the operating budget. The CIP is a planning document; the City Council appropriates funding for capital projects in the annual operating budget. Costs for professional services needed to implement the CIP are to be included in the appropriate year’s operating budget.

Annual operating budgets should provide adequate funds for maintenance of the City’s buildings and maintenance and replacement of the City’s capital equipment. The City will make all capital improvements in accordance with an adopted and funded capital Attachment 1
81 improvement program. Prior to ratification of the capital budget for the forthcoming year by the City Council, the Planning Commission shall review the capital improvement plan and shall advise the City Council as to its recommendations regarding the proposed capital projects in accordance with the Government Code.

Capital expenditures shall be effectively planned and controlled.

Guidelines:

1. The level of capital improvement expenditures, excluding road maintenance program expenditures and lease payments, is established at three and one‐half percent (3.5%) of total revenues.

2. Funding for the road maintenance program should improve the pavement condition index.

3. The City shall maintain a Five‐Year Capital Improvement Program (CIP), which shall be updated at least annually as part of the budget review process.

4. The City shall annually establish a phasing calendar for capital improvement expenditures.

5. At least ten percent (10%) of the unrestricted funds designated for capital project expenditures shall be set aside for unanticipated expenditures.

6. The City shall conduct periodic reviews of property and facilities to determine the appropriate use and disposition of said property and facilities.

7. The City shall consider the ongoing impact of operations and maintenance expenses before undertaking any capital improvement expenditure.

8. The City shall maintain a capital reserve policy as described in the Reserve Policy.

9. Public participation in the Capital Improvement Program is a priority concern for the City.

10. All projects included in the Capital Improvement Plan shall be consistent with the City’s General Plan.

11. Capital projects that are not encumbered or completed during the fiscal year are required to be rebudgeted to the next fiscal year and subsequently approved by the City Council. All rebudgeted capital projects should be so noted in the proposed budget

OPERATING MANAGEMENT POLICY
Operating revenues shall exceed operating expenditures.

Guidelines:

1. The annual operating budget shall contain a current surplus (or “revenue buffer”) of at least five percent (5%) of projected expenditures.

Attachment 1
82 2. A balanced budget is a budget in which total funding sources meet or exceed uses.

3. An appropriated City Discretionary Account of at least one‐half of one percent (0.5%) of total projected General Fund expenditures shall be maintained.

4. Ongoing expenses shall not be funded with one‐time revenues.

5. The City shall establish internal service funds for the repair, operation, and replacement of rolling stock and data processing equipment.

6. The level of capital outlay expenditures is established at three percent (3%) of total revenues.

7. The City shall annually establish a phasing calendar for capital outlay expenditures.

8. The City shall develop a five‐year forecast of operating revenue and expenditures.

9. The City shall establish salary adjustments in conjunction with the budget process.

10. The City shall review the relationship between fees/charges and the cost of providing services at least every three years.

11. The City’s fees and charges for services shall be adjusted annually, based upon the San Francisco‐Oakland Consumer Price Index.

12. The City will seek to comply with suggested criteria of the Government Finance Officer’s Association in producing a budget document that meets the Distinguished Budget Presentation criteria.

FUND BALANCE POLICY
The Fund Balance Policy is designed to develop standards for setting reserve levels for various, significant City funds. Adequate fund balance and reserve levels are a necessary component of the City’s overall financial management strategy and a key factor in external agencies’ measurement of the City’s financial strength. The City shall maintain reserves at a prudent level, and shall use reserves appropriately with a focus on contributing to the reserves in good times and drawing on the reserves in times of difficult budget periods to maintain a consistent level of service and quality operations. Use of reserves are to supplement the annual budget.

Guidelines:

1. General Fund and Hostelry Fund reserves shall be maintained at no less than ten percent (10%) of their annual projected revenues.

2. The City shall maintain prudent reserves for identified liabilities.

Attachment 1
83 3. A Vehicle Replacement reserve will be maintained sufficient to replace vehicles and heavy equipment at the end of their useful lives, with the target being 10% of the total City fleet replacement value.

4. Technology equipment replacement reserves will be maintained sufficient to repair covered equipment and for replacement at the end of its useful life.

5. The City will maintain a long‐term budget stability reserve consisting of any unassigned General Fund balance. When available, the year‐end General Fund operating surplus will be dedicated to the long‐term budget stability reserve.

6. A general capital reserve fund will be maintained with a targeted balance of 20% of the estimated total five‐year capital improvement plan project expenditure.

Net proceeds from the sale of City owned property will be dedicated to the general capital reserve. Funds in the general capital reserve will be allocated through the budget process for capital projects.

7. Reserves shall be used only for established purposes.

8. Depleted reserves shall be restored as soon as possible.

9. A minimum level for each of the reserve funds shall be established (see chart below).

10. The City shall maintain reserves required by law, ordinance and/or bond covenants.

DEBT POLICY
The City considers the use of debt financing for one‐time capital improvements that benefit the residents of Carmel‐by‐the‐Sea when the term of the financing is no longer than the project life, and when specific resources are found to be sufficient to provide for the debt.

Use of long‐term debt is limited to capital projects or special projects or obligations that cannot be financed from current revenues. The City has traditionally kept annual debt service payments to less than 5% of the budget.

Use of Long‐Term Debt Policy
The City recognizes that it may need to enter into long‐term financial obligations to meet the demands of providing a high quality level of government services to our community.

The following long‐term debt policy sets the considerations for issuing debt and provides guidance in the timing and structuring of long‐term debt commitments by the City.

General Practices:

1. The City will strive to maintain good relations with credit rating agencies, investors of the City’s long‐term financial obligations and those in the financial community that participate in the City’s financings and demonstrate City officials are following a prescribed financial plan. The City also will strive to maintain and, if possible, improve its current AA+ bond rating in order to Attachment 1
84 minimize borrowing costs and preserve access to credit. The City will follow a policy of full disclosure by communicating with bond rating agencies to inform them of the City's financial condition.

2. Bond issue proposals are to be accompanied by an analysis defining how the new issue, combined with current debt, impacts the City’s debt capacity and conformance with City debt policies. Such analysis shall include identification of the funding source, an assessment of the ability to repay the obligation, the impact on the current budget, commitments to future budgets, maintenance and operational impact of the facility or asset and the impact on the City’s credit rating, if any.

3. City Council must review such analysis, including existing debt level, ability to pay debt service, impact on City services, and make a finding that use of debt is appropriate.

4. Debt service costs (COP, Lease Purchase Agreements and other contractual debt that are backed by General Fund Operating Revenues) are not to exceed 25% of the City’s General Fund operating revenues.

5. The City recognizes that it is of the utmost importance that elected and appointed City officials, and all others associated with the issuance of City debt, not only avoid the reality of a conflict of interest, but the appearance thereof as well. City officials must conduct themselves in a fashion consistent with the best interests of the City and taxpayers.

6. Bonds will be sold on a competitive basis unless it is in the best interest of the City to conduct a negotiated sale. Competitive sales will be the preferred method.

Negotiated sales may occur when selling bonds for a defeasance of existing debt, for current or advanced refunding of debt, or for other appropriate reasons.

The City will consider the issuance of long‐term obligations under the following conditions:

1. The City will use debt financing for one‐time capital improvement projects and specific nonrecurring equipment purchases or refunding of existing liabilities, and only under the following circumstances:
a. When the project is included in the City’s adopted five‐year capital improvement program (CIP) and is in conformance with the City’s adopted General Plan.
b. When the project is not included in the City’s adopted five‐year capital improvement program (CIP), but the project is an emerging critical need whose timing was not anticipated in the five‐year capital improvement program, or it is a project mandated by State or Federal requirements. c. When the project’s useful life, or the projected service life of the equipment, will be equal to or exceed the term of the financing.

Attachment 1
85 d. When there are designated General Fund revenues sufficient to service the debt, whether from project revenues, other specified and/or reserved resources, or infrastructure cost‐sharing revenues.
e. Debt financing (other than tax and revenue anticipation notes) is not considered appropriate for any recurring purpose such as current operating and maintenance expenditures.

2. The City will follow all State and Federal regulations and requirements related to bonds and debt financing instruments regarding bond provisions, issuance, taxation and disclosure.

3. Costs incurred by the City, such as bond counsel and financial advisor fees, printing, underwriter’s discount, and project design and construction costs, will be charged to the bond issue to the extent allowable by law.

4. The City will monitor compliance with bond covenants and adhere to federal arbitrage and disclosure regulations.

5. The City shall continually review outstanding obligations for opportunities to achieve debt service savings through refunding and shall pursue refinancing when economically feasible and advantageous.

Debt Limit
The City will keep outstanding debt within the limits prescribed by State of California statutes and at levels consistent with credit objectives. California Government Code provides that “a city may incur indebtedness for any municipal improvement requiring an expenditure greater than the amount allowed for it by the annual tax levy” (43602). A “city shall not incur an indebtedness for public improvements which exceeds in the aggregate 15 percent of the assessed value of all real and personal property of the city. Within the meaning of this section "indebtedness" means bonded indebtedness of the city payable from the proceeds of taxes levied upon taxable property in the city” (43605). The limit is relative to the principal amount of bonds sold and delivered (43606). The City of Carmel‐by‐the‐Sea, Policy No C94‐01 establishes “the City’s debt shall not exceed predetermined levels.” The guideline in that policy is that “the City’s debt service level shall not exceed eight and one‐ fourth percent (8.25%) of total expenditures.

INVESTMENT POLICY
The City will maintain adequate cash availability and yield on invested idle funds while insuring that invested moneys are protected. Municipal moneys not required for immediate expenditure will be invested. The Carmel Municipal Code requires the City Administrator to prepare investment policies and guidelines for adoption by the City Council. The adopted investment policy follows.

Policy
Attachment 1
86 In accordance with the Municipal Code of the City of Carmel‐by‐the‐Sea and under authority granted by the City Council, the City Treasurer is responsible for investing the unexpended cash in the City Treasury.

The investment of the City of Carmel‐by‐the‐Sea funds is directed to the goals of safety, liquidity and yield, in that order. The authority governing investments for municipal government is set forth in the California Government Code, Sections 53601 through 53659.

The primary objective of the investment policy of the City of Carmel‐by‐the‐Sea is SAFETY OF PRINCIPAL. Investments shall be placed in those securities as outlined by type and maturity sector in this document. Effective cash flow management and resulting cash investment practices are recognized as essential to good fiscal management and control.

The City’s portfolio shall be designed and managed in a manner responsive to the public trust and consistent with state and local law. Portfolio management requires continual analysis, and as a result the balance between the various investments and maturities may change in order to give the City of Carmel‐by‐the‐Sea the optimum combination of necessary liquidity and optimal yield based on cash flow projections.

Scope
The investment policy applies to all financial assets of the City of Carmel‐by‐the‐Sea as accounted for in the Annual Financial Report. Policy statements outlined in this document focus on the City of Carmel‐by‐the‐Sea’s pooled funds, but will also apply to all funds under the City Treasurer’s control unless specifically exempted by statute or ordinance.

Prudence
The standard to be used by investment officials shall be that of a “prudent person” and shall be applied in the context of managing all aspects of the overall portfolio. Investments shall be made with judgment and care, under circumstances then prevailing, which persons of prudence, direction and intelligence exercise in the management of their own affairs, not for speculation, but for investment, considering the probable safety of their capital as well as the probable income to be derived.

It is the City’s full intent, at the time of purchase, to hold all investments until maturity to insure the return of all invested principal dollars.

Safety
Safety of principal is the foremost objective of the City. Each investment transaction shall seek to ensure that capital losses are avoided, whether from securities default, broker‐ dealer default, or from erosion of the market value.

Liquidity
Attachment 1
87 Historical cash flow trends are compared to current cash flow requirements on an ongoing basis in an effort to ensure that the City’s investment portfolio will remain sufficiently liquid to enable the City to meet all reasonably anticipated operating requirements.

Yield
The investment portfolio should be designed to attain a market average rate of return through budgetary and economic cycles, consistent with the risk limitations, prudent investment principles and cash flow characteristics identified within the financial statements.

Performance Evaluation
Investment performance is continually monitored and evaluated by the City Treasurer.

Investment performance statistics and activity reports are generated on a monthly basis for presentation to the City Administrator and City Council.

Delegation of Authority
For short‐term investments, the Administrative Services Director has authority to make transfers to and from the City’s Local Agency Investment Funds (LAIF) account in order to maximize interest earned and meet cash flow requirements. The transfers are made to and from the City’s general checking account to the LAIF account, with a minimum balance maintained in the general checking account to meet daily cash requirements.

The City Treasurer is responsible for investment of all unexpended City funds as per California Government Code section 41000 et seq. The City Treasurer makes long‐term investments after review and approval by the Administrative Services Director and the City Administrator.

Ethics and Conflict of Interest
Officers and employees involved in the investment process shall refrain from personal business activity that conflicts with the proper execution of the investment program, or impairs their ability to make impartial investment decisions. Additionally, the City Treasurer and the members of the investment committee are required to annually file applicable financial disclosures as required by the Fair Political Practices Commission (FPPC).

Safekeeping of Securities
To protect against fraud, embezzlement, or losses caused by a collapse of an individual securities dealer, all securities owned by the City shall be held in safekeeping by a third party bank trust department, acting as an agent of the City under the terms of a custody agreement or PSA agreement (repurchase agreement collateral). The third party bank trust department must have safe keeping as a professional business line with expertise in this Attachment 1
88 particular service area. All trades executed by a dealer will settle Delivery vs. Payment (DVP) through the City's safekeeping agent. Securities held in custody for the City shall be independently audited on an annual basis to verify investment holdings. All exceptions to this safekeeping policy must be approved by the City Treasurer in written form and included in quarterly reporting to the City Council.

Internal Control
Separation of functions between the City Treasurer's Office and the Administrative Services Department would be an ideal situation. Time and necessity, however, dictate a different approach. Due to the lack of personnel dedicated to the investment function alone, a proper balance must be maintained between Treasury activities and Administrative Services Department functions. The City Treasurer will make the appropriate arrangements to buy and sell securities that are deemed permissible by the Laws of the State of California as time permits. The Administrative Services Director and/or City Administrator will have the power as granted under the section titled Delegation of Authority in the absence of the City Treasurer. The City Administrator will have the authority to enter into agreements on securities so long as written policies set by the City Treasurer and State Legislature are followed.

The investment portfolio and all related transactions are reviewed and balanced to appropriate general ledger accounts by the Administrative Services Director on a monthly basis. An independent analysis by an external auditor shall be conducted annually to review internal control, account activity, and compliance with government policies and procedures.

Reporting
The City Treasurer shall review and render monthly reports to the City Administrator and the City Council, which shall include the face amount of the cash investment, the classification of the investment, the name of the institution or entity, the rate of interest, the maturity date, and the current value and accrued interest to date due for all securities.

Qualified Broker/Dealers
The City shall transact business only with banks and broker/dealers that are properly licensed and in good standing. The Administrative Services Director and the City Treasurer shall investigate dealers who wish to do business with the City to determine if they are adequately capitalized and if they market securities appropriate to the City’s needs.

The City Treasurer shall annually send a copy of the current investment policy to all broker/dealers approved to do business with the City. Confirmation of receipt of the City’s policy by the broker/dealer shall be considered evidence that the broker/dealer understands the City’s investment policies and intends to sell the City only appropriate investments authorized by this investment policy.

Attachment 1
89 Collateral Requirements
Collateral is required for investments in certificates of deposit. In order to reduce market risk, the collateral level will be at least 110% of market value of principal and accrued interest.

In order to conform with the provisions of the Federal Bankruptcy Code that provide for liquidation of securities held as collateral, the only securities acceptable as collateral shall be certificates of deposit, commercial paper, eligible banker’s acceptances, medium term notes or securities that are the direct obligations of, or are fully guaranteed as to principal and interest by, the United States or any agency of the United States.

Authorized Investments
Investment of City funds is governed by the California Government Code Sections 53600 et seq. Within the context of the limitations, the following investments are authorized as further limited herein:
1) United States Treasury Bills, Bonds, and Notes or those for which the full faith and credit of the United States are pledged for payment of principal and interest. There is no percentage limitation of the portfolio that can be invested in this category, although a five‐year maturity limitation is applicable but current market conditions and interest rate projections may call for shorter terms.
2) Local Agency Investment Fund (LAIF), which is a State of California managed investment pool, may be used up to the maximum permitted by the California State Law. LAIF is a demand account so no maturity limitation is required.

Investments detailed in items 3) are further restricted to percentage of the cost value of the portfolio in any one‐issuer name to a maximum percentage of 15%. The total value invested in any one issuer shall not exceed 5% of the issuer’s net worth. Again, a five‐year maximum maturity is applicable unless further restricted by current policy. Market conditions should be evaluated as an important consideration and may indicate a shorter maturity. 3) Negotiable certificates of deposit issued by nationally or state chartered bank or state or federal savings institutions. Negotiable certificates of deposit shall be rated in a category of “A” or its equivalent or better by two Nationally Recognized Statistical Rating Organizations. Purchases of negotiable certificates of deposit may not exceed 30% of the total portfolio.

A maturity limitation of up to five years is applicable after considered evaluation of the financial markets.

Ineligible investments are those that are not described herein, including, but not limited to, common stocks and long term (over five years maturity) notes, bonds, and time deposits, Attachment 1
90 unless specifically allowed both by state law and City Council approval. It is noted that special circumstances may arise where these methods of investment may become necessary.

When this becomes necessary, the City Council will be asked to take the appropriate action to ratify the means of investment necessary, provided that it is allowable by California Code.

Legislative Changes
Any State of California legislative actions that further restrict allowable maturities, investment type, or percentage allocations will supersede any of the material presented herein. In this case, the applicable law will become part and parcel of this investment policy.

Interest Earnings
All moneys earned and collected from investments authorized in this policy shall be allocated monthly to the General Fund and various special funds of the City that legally require interest proration or when City Council action dictates such proration. This distribution will be based on the cash balance in the fund as a percentage of the entire pooled portfolio.

Policy Review
The City of Carmel‐by‐the‐Sea’s investment policy shall be approved by resolution of the City Council. This investment policy shall be reviewed at least annually to ensure its consistency with the overall objectives of preservation of principal, liquidity and yield, and its relevance to current law and financial and economic trends. Any amendments to the policy, other than State and Federal laws that automatically supersede the relevant sections shall be forwarded to the City Council for approval by resolution.

Attachment 1

CITY OF CARMEL-BY-THE-SEA

CITY COUNCIL
Staff Report
May 7, 2024

ORDERS OF BUSINESS
TO: Honorable Mayor and City Council Members
SUBMITTED BY: Jane Hogan, Accountant
APPROVED BY: Chip Rerig, City Administrator
SUBJECT:

Receive the Fiscal Year 2024-2025 Fee Schedule for Administrative Services, Community Planning and Building, Public Safety, and Public Works services RECOMMENDATION:

Receive the Fiscal Year 2024-2025 Fee Schedule for Administrative Services, Community Planning and Building, Public Safety, and Public Works services.

BACKGROUND/SUMMARY:

The City provides a variety of services that benefit specific customers, such as the issuance of business licenses, planning and building permits, and tree removal permits. In accordance with State law, the City is legally allowed to charge a fee to the used of a specific service to recover the cost of providing the service.

To help determine the cost of providing certain services, as well as to develop alternative and more equitable ways to finance some services, the City hired Revenue and Cost Specialists, LLC to complete a cost of services study in March 2023. The proposed Fiscal Year 2024-2025 fee schedule is based on this study, reflects previous direction from Council regarding subsidies of certain services like tree permits, and incorporates an inflationary adjustment of 2.6 percent to all existing fees, with the exception of fees set by the State or courts, parking violations, and the fees as noted below.

Public Works: Dead Tree Removal Permit - $200. This is the same cost as the proposed FY24-25 fee for a Tree Evaluation. In an effort to encourage dead tree removal throughout the City, the City Forester is recommending a new dead tree removal permit that is less than the City’s Tree Removal Permit proposed for FY 24-25 at $682. There is staff time involved in permit processing, communication with residents, and an in-person inspection to confirm if the tree is dead, which is compensatory to time associated with a Tree Evaluation.

For comparison, below are neighboring jurisdictions tree removal fees. Please note the actual process undertaken for reviewing a tree permit may be substantially different in other jurisdictions, which would contribute to the amount of the fee.

Pacific Grove: Application $176 + $33 for each additional tree + Arborist Report ($300-$500).

Monterey: Application $150 + Arborist Report ($300-$500). Applications for dead trees are free.

Seaside: Application $126 + sometimes requiring Arborist Report ($300-$500).

Monterey County: Application is $595. Applications for dead trees are free.

Summary
The purpose of this agenda item is to provide an update regarding fees and for Council to receive and make recommendations to the proposed master fee schedule for the upcoming fiscal year. If Council approves, the fees will become effective on August 4, 2024. A summary matrix of the current and proposed fees is included as reference Attachment #1.

The proposed fees associated with the charges for services are intended to recover 100% of the City’s cost of providing the service from the user, or beneficiary, of the service. However, Council may determine that certain services have a community-wide benefit and choose to reduce fees associated with certain services. If fees are reduced to less than 100% of cost recovery, then the difference between the cost of the service and the fee charged to the user needs to be made up, or subsidized, by other General Fund revenues. This in turn means that there would be less General Fund revenue available for other communitywide services. Staff recommends that Council strive to achieve full cost recovery for all services.

Historically, Council has subsidized tree permitting within the City and prior proposed tree permitting fees have not been approved with the adopted Fee Schedule.

FISCAL IMPACT:

Consistent with financial policy C94-01, the proposed fee schedule includes an annual adjustment based upon the San Francisco-Oakland Consumer Price Index (CPI), which was calculated by the Bureau of Labor and Statistics at 2.6 percent for the year ending December 2023. The Fiscal Year 2024-2025 Proposed Budget includes a 2.6 percent increase on the revenues known as “charges for services”.

The revenue from fees allows the City to recover its costs for providing a service from the direct recipient, or user, like property, sales and use and transient occupancy taxes, are needed to help offset the cost of services. This means that the overall General Fund revenues are not subsidizing user fees, then more of the General Fund is available to fund community-wide activities that have a public benefit, like libraries, public safety, and public works.

PRIOR CITY COUNCIL ACTION:

Council adopted the Fiscal Year 2023-2024 Fee Schedule on July 11, 2023.

ATTACHMENTS:

Attachment 1) Current and Proposed FY 24-25 User Fees
Current Fee Proposed Fee $ Change
TRACK 1 DESIGN REVIEW/STUDY - MINOR $708 per application 708.00 690.00 18.00TRACK 1 DESIGN REVIEW/STUDY - MAJOR $1,016 per application 1,016.00 990.00 26.00TRACK 1 DESIGN REVIEW/STUDY-STREAMLINE $364 per application 364.00 355.00 9.00TRACK 1 DESIGN REVIEW/STUDY - REFERRAL TO PLANNING COMMISSION $1,831 per application in addition to the base Track 1 fee 1,831.00 1,785.00 46.00TRACK 1 DESIGN REVIEW/STUDY-REFERRAL TO HISTORIC RESOURCES BOARD $1,831 per application in addition to the base Track 1 fee 1,831.00 1,785.00 46.00TRACK 2 DESIGN REVIEW - MINOR $4,012 per application 4,012.00 3,910.00 102.00TRACK 2 DESIGN REVIEW - MAJOR $6,089 per application 6,089.00 5,935.00 154.00TRACK 2 DESIGN REVIEW - MAJOR NEW COMMERCIAL BUILDING $2,904 per application plus a deposit determined by staff with charges at the fully allocated hourly rates for Project Planner 2,904.00 2,830.00 74.00 PRELIMINARY SITE ASSESSMENT $1,534 per application 1,534.00 1,495.00 39.00REASONABLE ACCOMODATION $200 per application, plus fee for associated Design Study/Design Review as applicable 200.00 195.00 5.00VOLUMETRIC ANALYSIS $139 per application plus $1,500 deposit with charges at the fully allocated hourly rates plus any outside costs. 139.00 135.00 4.00 USE PERMIT $3,140 per application 3,140.00 3,060.00 80.00USE PERMIT AMENDMENT $2,837 per application 2,837.00 2,765.00 72.00TEMPORARY USE PERMIT $169 per application 169.00 165.00 4.00RESTRICTED COMMERCIAL USE TRANSFER REQUEST $580 per application 580.00 565.00 15.00WATER CREDIT TRANSFER REQUEST $3,181 per application 3,181.00 3,100.00 81.00 VARIANCE $1,837 per application 1,837.00 1,790.00 47.00PRELIMINARY APPLICATION REVIEW - STAFF $1,400 per application with 50% of this fee credited towards future planning fees for this project. 1,400.00 1,365.00 35.00PRELIMINARY APPLICATION REVIEW - PUBLIC HEARING (PLANNING COMMISSION, CITY COUNCIL, ETC.) $3,848 per application with 50% of this fee credited towards future planning fees for this project. 3,750.00 3,848.00 98.00COASTAL DEVELOPMENT PERMIT - DEVELOPMENT $180 per application - Added to other Planning fees 180.00 175.00 5.00COASTAL DEVELOPMENT PERMIT - EVENT $759 per application 759.00 740.00 19.00LANDSCAPE PLAN CHECK/INSPECTION $708 per plan/inspection 708.00 690.00 18.00PLANNING TECHNICAL ASSISTANCE Charge the fully allocated hourly rate for all personnel involved after 15 minutes.TOBACCO RETAIL LICENSE Current fee as adopted by the Monterey County Board of SupervisorsEXTRAORDINARY DEVELOPMENT Deposit amount TBD based on scope of project, with charges at the fully allocated hourly rates plus any outside costsSPECIFIC PLAN/SPECIFIC PLAN AMENDMENTGENERAL PLAN AMENDMENTSPHERE OF INFLUENCE AMENDMENTZONING CODE AMENDMENTANNEXATIONDEVELOPMENT AGREEMENTENVIRONMENTAL REVIEW (IS/ND/EIR) Contract cost plus 10%FILING ENVIRONMENTAL NOTICE OF EXEMPTION $508 per application plus associated Monterey County fees 508.00 495.00 13.00MITIGATION MONITORING $3,078 deposit with charges at the fully allocated hourly rates plus outside costs. 3,078.00 3,000.00 78.00TENTATIVE/FINAL MAP $4,104 deposit with charges at the fully allocated hourly rates plus any outside costs. 4,104.00 4,000.00 104.00AMENDED FINAL MAP $1,026 deposit with charges at the fully allocated hourly rates plus any outside costs. 1,026.00 1,000.00 26.00CERTIFICATE OF COMPLIANCE $770 per application plus actual contract cost 770.00 750.00 20.00LOT LINE ADJUSTMENT/SUBDIV - PLANNING COMMISSION $1,082 per application plus actual contract cost 1,082.00 1,055.00 27.00LOT MERGER $877 per application plus actual contract cost 877.00 855.00 22.00PRELIMINARY PHASE 1 - INITIAL ASSESSMENT OF HISTORIC SIGNIFICANCE $318 per application 318.00 310.00 8.00PHASE 1 - HISTORIC EVALUATION $416 per application plus actual cost for Historian review with $1,500 deposit 416.00 405.00 11.00PHASE 2 - HISTORIC EVALUATION (INCLUDES HISTORIC RESOURCES BOARD HEARING) $2,093 per application plus actual cost for Historian review with $1,500 deposit 2,093.00 2,040.00 53.00APPEAL TO HISTORIC RESOURCES BOARD $1,539 per application plus actual cost for Historian review with $1,500 deposit 1,539.00 1,500.00 39.00MILLS ACT CONTRACT APPLICATION $3,519 per application plus actual cost to record contract with County of Monterey 3,519.00 3,430.00 89.00MILLS ACT MAINTENANCE PLAN REVIEW $1,026 deposit with charges at the fully allocated hourly rates plus any outside costs for qualified professional to review plan. 1,026.00 1,000.00 26.00 5,130.00
10,260.00
130.00260.00
5,000.00
10,000.00
PROPROSED FEE SCHEDULE EFFECTIVE JULY 1, 2024 - JUNE 30, 2025

COMMUNITY PLANNING & BUILDING
Design Study and ReviewUse Permit and Other ServicesAmendments, Annexations and Agreements $5,130 deposit with charges at the fully allocated hourly rates plus outside costs$10,260 deposit with charges at the fully allocated hourly rates plus outside costs Environmental Review Maps and Lot LinesHistoric Evaluation PROPROSED FEE SCHEDULE EFFECTIVE JULY 1, 2024 - JUNE 30, 2025 Current Fee Proposed Fee $ Change MILLS ACT 5-YEAR INSPECTION $513 deposit with charges at the fully allocated hourly rates plus any outside costs for qualified professional 513.00 500.00 13.00 MILLS ACT 10-YEAR MAINTENANCE PLAN REVIEW $1,026 deposit with charges at the fully allocated hourly rates plus any outside costs for qualified professional to review plan. 1,026.00 1,000.00 26.00PLANNING COMMISSION CODE DETERMINATION $1,785 per application 1,785.00 1,740.00 45.00ZONING COMPLIANCE DETERMINATION Charge the fully allocated hourly rates for all personnel involved with a one hour minimumPERMIT TIME EXTENSION - STAFF $410 per application 410.00 400.00 10.00 PERMIT TIME EXTENSION - PLANNING COMMISSION $1,180 per application 1,108.00 1,080.00 28.00PERMIT TIME EXTENSION - CITY COUNCIL $1,072 per application 1,072.00 1,045.00 27.00PUBLIC HEARING CONTINUANCE - PLANNING COMMISSION $852 per continuance 852.00 830.00 22.00 PUBLIC HEARING CONTINUANCE - COUNCIL $857 per continuance 857.00 835.00 22.00 APPEAL TO PLANNING COMMISSION $1,996 per appeal - No charge for appeals of Coastal Development Permits (CDPs) within the Coastal Commission Appeal Jurisdiction (CMC 17.20.140) 1,996.00 1,945.00 51.00APPEAL TO CITY COUNCIL $2,139 per appeal - No charge for appeals of Coastal Development Permits (CDPs) within the Coastal Commission Appeal Jurisdiction (CMC 17.20.140) 2,139.00 2,085.00 54.00SIGN APPLICATION $462 per application 462.00 450.00 12.00 SIGN REFERRAL TO PLANNING COMMISSION $1,544 per application 1,544.00 1,505.00 39.00RELOCATE EXISTING SIGN $246 per application 246.00 240.00 6.00 TEMPORARY SIGN PERMIT No permit fee required 0.00 0.00 0.00 BANNER APPLICATION $0 per application, applicant bears the fully burdened cost of installation through City approved third-party vendorsBUILDING RELOCATION Deposit determined by staff with charges at the fully allocated hourly rates for all personnel involved plus any outside costsLARGE FAMILY DAY CARE (RESIDENTIAL) $2,380 per application 2,380.00 2,320.00 60.00GENERAL PLAN UPDATE 3.5% of all Building & Safety permitsBUILDING PLAN CHECK Based on Building and Safety Construction Valuation BUILDING INSPECTION Based on Building and Safety Construction ValuationBUILDING RE-INSPECTION $149 per re-inspection 149.00 145.00 4.00 BUILDING PERMIT APPLICATION EXTENSION $97 per extension (maximum of 4) 97.00 95.00 2.00BUILDING PERMIT EXTENSION $154 per extension (maximum of 2) 154.00 150.00 4.00 BUILDING PERMIT PRE-APPLICATION CONFERENCE $349 per application 349.00 340.00 9.00 BUILDING SINGLE TRADE PERMIT $169 per permit 169.00 165.00 4.00 ON-SITE DRIVEWAY PERMIT $405 per permit 405.00 395.00 10.00 SOLAR PLAN CHECK/INSPECTION PERMIT Plan Check AND Inspection - $462 plus $15 per kW over 15kW (Per Assembly Bill 1414) 462.00 450.00 12.00 RE-ROOF PERMIT $267 per permit 267.00 260.00 7.00
BUILDING BOARD APPEAL $1,165 per appeal 1,165.00 1,135.00 30.00DUPLICATE INSPECTION CARD $62 per card 62.00 60.00 2.00BUILDING TECHNICAL ASSISTANCE Charge the fully allocated hourly rate for all personnel involved after 15 minutes.STOP WORK INVESTIGATION $636 per investigation plus double all Building Permit fees 636.00 620.00 16.00 TEMPORARY CERTIFICATE OF OCCUPANCY $231 per application 231.00 225.00 6.00 ALTERNATE MATERIALS/METHODS REVIEW $226 per application plus actual cost of City Staff for all time over one hour. 226.00 220.00 6.00 BUILDING PHASED WORK REQUEST $323 per application 323.00 315.00 8.00 BUILDING TECHNOLOGY SURCHARGE $8 per permit 8.00 8.00
NEW BENCH LOCATION $985 per application plus the actual cost of the bench and plaque (plus $750 for future maintenance) plus $2,005 if a public hearing is required. 985.00 960.00 25.00 ADOPTION OF EXISTING BENCH $390 per application plus the actual cost of the bench and plaque (plus $750 for future maintenance) plus $530 if a public hearing is required. 390.00 380.00 10.00 REPLACEMENT OF BENCH PLAQUE $503 per application plus the actual cost of the plaque plus $530 if a public hearing is required. 503.00 490.00 13.00 TEMPORARY ENCROACHMENT PERMIT $354 per permit 354.00 345.00 9.00 STREET EXCAVATION $821 per permit, plus $8.75/lineal foot of work being performed 821.00 800.00 21.00

PERMANENT ENCROACHMENT PERMIT
$487 per permit plus $8.75/lineal foot Plus cost of any damage to public right-of-way or street as determined by the Public Works DirectorPlus cost of and Design Study/Design Review as needed Plus cost of referral to City Council if needed. 487.00 475.00 12.00
TRAFFIC CONTROL PLAN REVIEW/INSPECTION $693 per review plus $405 per each additional review 693.00 675.00 18.00 $458 per new applications 458.00 446.00 12.00$226 per renewal 226.00 220.00 6.00 Sign and BannersDeterminations, Extensions and AppealsBuilding ServicesBench ProgramEncroachment PermitsSIDEWALK VENDING PERMIT PROPROSED FEE SCHEDULE EFFECTIVE JULY 1, 2024 - JUNE 30, 2025 Current Fee Proposed Fee $ Change USE OF ONLINE ELECTRONIC PAYMENT - CP&B DEPARTMENT 3.5% OF CHARGED AMOUNTUSE OF CREDIT CARD/ DEBIT CARD - CP&B DEPARTMENT 3.5% OF CHARGED AMOUNTTREE EVALUATION $200 per application 200.00 195.00 5.00 TREE REMOVAL PERMIT - DEAD TREE $200 per permit 200.00 - 200.00TREE REMOVAL PERMIT $682 per permit 682.00 665.00 17.00 TREE PRUNING PERMIT $262 per permit 262.00 255.00 7.00
PRUNING OR REMOVAL OF CITY TREE USING PRIVATE FUNDS UNDER CITY FORESTER INSTRUCTIONS No permit fee required 0.00 0.00 0.00 APPEAL TO FOREST & BEACH COMMISSION $1,847 per appeal plus actual outside costs 1,847.00 1,800.00 47.00 APPEAL TO CITY COUNCIL $1,847 per appeal plus actual outside costs 1,847.00 1,800.00 47.00REMOVAL OF PRIVATE TREE FALL IN PUBLIC RIGHT-OF-WAY Charge the fully allocated hourly rate for all personnel involved plus any outside costsDAMAGE TO CITY PROPERTY Charge the fully allocated hourly rate for all personnel involved plus any outside costsUSE OF ONLINE ELECTRONIC PAYMENT- PUBLIC WORKS DEPT 3.5% OF CHARGED AMOUNTUSE OF CREDIT CARD/ DEBIT CARD- PUBLIC WORKS DEPT 3.5% OF CHARGED AMOUNT First Response - No Charge 0.00 0.00 0.00Second Response the same day - $224 per response 224.00 218.00 6.00 Third Response within a calendar year - $561 per response 561.00 547.00 14.00 First Activation - $112 112.00 109.00 3.00Second Activation - $134 134.00 131.00 3.00Each Subsequent Activation in a calendar year - $202 202.00 197.00 5.00New - $39 per permit 39.00 38.00 1.00Renewal - $28 per permit 28.00 27.00 1.00 VEHICLE IMPOUND RELEASE $157 per vehicle 157.00 153.00 4.00 MISDEMEANOR BOOKING Non-Carmel bookings - $168 per booking 168.00 164.00 4.00 MISCELLANEOUS POLICE PERMIT $207 per application plus DOJ fees 207.00 202.00 5.00FINGERPRINTING ON REQUEST $39 plus outside agency fees 39.00 38.00 1.00CLEARANCE FORM TRAVEL LETTER $56 per letter 56.00 55.00 1.00VIN VERIFICATION $56 per vehicle 56.00 55.00 1.00CITATION SIGN-OFF Non-Carmel citations - $28 per citation 28.00 27.00 1.00SIGN ABATEMENT $28 per sign 28.00 27.00 1.00POLICE COURT WITNESS Fees are set by the courtPOLICE REPORT COPY 1st 10 pages - No Charge, Each additional page - $0.20 0.20 0.20POLICE PHOTOGRAPH COPY photo - $5 per photo, digital - $5 per disk 5.00 5.00 Within a calendar year:First impound - $112 112.00 109.00 3.00Second impound - $134 134.00 131.00 3.00Third and subsequent impounds - $157 157.00 153.00 4.00Local Transport - $28 per transport 28.00 27.00 1.00To County Animal Shelter - $102 per transport 102.00 99.00 3.00$34 per permit 34.00 33.00 1.00$124 Misuse of Residential Permit 124.00 121.00 3.00$17 non specific 17.00 17.00 $28 space specific 28.00 27.00 1.00
NORTON COURT PARKING GARAGE $2,460 annually per space, $615 quarterly per space 2,460.00 2,400.00 60.00FIRE PLAN CHECK/ REVIEW/INSPECTIONS Current fee schedule as adopted by City of Monterey CouncilUSE OF CREDIT CARD/ DEBIT CARD - PUBLIC SAFETY DEPTS 2.5% OF CHARGED AMOUNT Fixed Location - $348 per application + $4 State fee 348.00 339.00 9.00In & About - $23 per application + $4 State fee 23.00 22.00 1.00 ANIMAL TRANSPORTParkingRESIDENT/EMPLOYEE PARKING PERMITCONTRACTOR PARKING PERMITFire Services

ADMINISTRATIVE SERVICES

NEW BUSINESS REGISTRATION PROCESSANIMAL IMPOUND

PUBLIC WORKS/FORESTRY
Police ServicesLOUD PARTY PUBLIC DISTURBANCE RESPONSEPOLICE FALSE ALARM RESPONSEALARM PERMITAnimal Services

PUBLIC SAFETY
PROPROSED FEE SCHEDULE EFFECTIVE JULY 1, 2024 - JUNE 30, 2025 Current Fee Proposed Fee $ Change Home License - $146 per application 146.00 142.00 4.00
BUSINESS REGISTER RENEWAL PROCESS $17 per renewal 17.00 17.00DUPLICATE BUSINESS LICENSE $10 per license 10.00 10.00CHANGE BUSINESS NAME $23 per business 23.00 22.00 1.00NSF CHECK PROCESSING $45 per NSF check 45.00 44.00 1.00 First 10 copies - No Charge 0.00 0.00Additional copies - $0.20 per copy 0.20 0.20FPPC copies - $0.10 per copy plus $5 for retrieval of documents if more than five years old plus postage cost if mailed 0.10 0.10 ELECTRONIC FILE COPY $5 per device 5.00 5.00DOCUMENT CERTIFICATION $10 per document 10.00 10.00RECORD COMPILATION Record Compilation/Creation - charge the fully allocated hourly rate for all personnel involved plus any outside costs.LOCAL CANDIDATE FILING $25 per candidate- Fee is set by the State 25.00 25.00LOCAL INITIATIVE PROCESSING $200 per initiative- This fee is limited by the State Law - Elections Code Section 9202(b) - Fee is refundable to the filer, if within one year of filing the notice of intent, the elections official certifies the sufficiency of the petition. 200.00 200.00USE OF CREDIT CARD/ DEBIT CARD- ADMINISTRATION DEPT 2.5% OF CHARGED AMOUNTFinanceCity ClerkDOCUMENT REPRODUCTION/SCANNING

CITY OF CARMEL-BY-THE-SEA

CITY COUNCIL
Staff Report
May 7, 2024

ORDERS OF BUSINESS
TO: Honorable Mayor and City Council Members
SUBMITTED BY: Robert Harary, P.E, Director of Public Works APPROVED BY: Chip Rerig, City Administrator
SUBJECT:

Resolution 2024-036, authorizing the City Administrator to execute a Construction Contract with Monterey Peninsula Engineering for the Base Bid, Bid Additive, and 10% contingency, in the total amount of $433,818, for construction of the Mission Trail Nature Preserve, 3 Stream/Drainage Project
RECOMMENDATION:

Adopt Resolution 2024-036, authorizing the City Administrator to execute a Construction Contract with Monterey Peninsula Engineering for the Base Bid, Bid Additive, and 10% contingency, in the total amount of $433,818, for construction of the Mission Trail Nature Preserve, 3 Stream/Drainage Project BACKGROUND/SUMMARY:

For the Fiscal Year (FY) 2021/22 Capital Improvement Program (CIP), the City Council approved a new project and initial funding to retain engineering and environmental consultants for the first three (3) of eight (8) stream restoration measures along the drainage creek in the Mission Trail Nature Preserve (MTNP). These stream restoration projects were identified in the 2019 “MTNP Stream Stability Report” which is available for review at:
https://ci.carmel.ca.us/post/mission-trail-nature-preserve Initial funding for the project of $203,000 was based on a California Department of Parks and Recreation Per Capita Grant of $178,000 and a required City match of $25,000, funded by Measure C.

In February 2022, the City entered into a Professional Services Agreement (PSA) with Neill Engineers Corp. for engineering and design of these three drainage projects. In November 2022, the City entered into a PSA with Dudek for on-call environmental services. Under this PSA, Dudek prepared biological and other environmental technical studies associated with the proposed projects.

In June 2023, Council adopted Resolution 2023-067 for the FY 2023/24 CIP, approving the carry-over of 25 prior FY projects, including this project, and approving a new CIP Contingency Fund with an initial budget of $500,000 to cover anticipated higher costs of construction contracts.

Project Development and Bidding Results
The Project plans, specifications, and cost estimates were prepared by Neill Engineers Corp. The City’s Project Manager checked the plans, and compiled the contract and bidding documents.

The environmental review and permit acquisition process was facilitated Dudek. From mid-2022 through late 2023, permits had to be acquired from three regulatory agencies: the U.S Army Corps of Engineers, California Department of Fish and Wildlife Service, and the Regional Water Quality Control Board. Numerous project-specific requirements were generated from these permits and included in the construction bidding documents. A Coastal Development Permit was also issued by the Planning Commission. In addition, a CEQA Notice of Exemption (NOE) was issued in Permit was also issued by the Planning Commission. In addition, a CEQA Notice of Exemption (NOE) was issued in February 2023 and filed with the Office of Planning and Research with the State of California and the Monterey County Clerk’s office.

This project combined three stream stability and drainage-related improvement projects in the MTNP, all located in the southerly portion of the Preserve. The construction documents were divided into a Base Bid for the first two projects, and an Additive Bid for the third project. It is most cost-effective and efficient to award one construction contract to complete these similar improvements in the same general location at the same time.

The Base Bid includes the following two projects:

1. Drainage Improvements along Doolittle Trail: Trenching and installation of 150 feet of 18-inch to 24-inch diameter high-density polyethylene (HDPE) piping, two concrete catch basins; a rock apron, rip-rap at the pipe outlet into the creek, and related facilities.

2. Swale Reconstruction on Willow Trail: Demolition of the existing, high-maintenance, swale crossing, grading, reconstruction of a 10-feet x 15-feet rock-lined concrete swale, installation of a rip rap stilling basin on the top end and a rip-rap energy dissipater on the bottom end; placement of a 6-inch thick “Golden Granite” base along Willow Trail covering 1,000 square feet, and installation of 30 feet of 18-inch HDPE piping, a rock apron, and rip-rap.

The Bid Additive covers the third project as follows:

3. Boardwalk on Willow Trail: Construction of an 85-foot long, 4’-8” wide, elevated redwood boardwalk over a bog along the Willow Trail. The boardwalk will be supported by 22 structural helical piers. Conform both ends of the boardwalk extending 60-feet using “Golden Granite” base along the Trail.

The Project was approved for construction and extensively advertised for bids. Notices were published in the “Carmel Pine Cone” and “Monterey County Weekly,” at the Central Coast Builders Association, and posted on the City’s and other public purchasing websites. In addition, courtesy calls and emails were sent to 40 contractors that specialize in civil construction.

The City conducted a mandatory pre-bid meeting on February 21, 2024, and 14 prospective contractors attended.

Seven bid proposals were received and opened at a Public Bid Opening held on March 19th, 2024, with the following results:

Engineer’s
Es mate
MPE
South
Bay
Grading
Rehak
General
Engineering
Tyman Const.

Coastal
Paving &
Excavaon
Don
Chapin
Company
Graniterock
Base Bid (Basis of
Award)
$295,000 $205,280 $205,311 $229,505 $248,250 $258,200 $259,170 $343,548 Addi ve Alterna ves 175,000 189,100 150,443 174,960 248,100 356,885 198,150 122,098 Grand Total $470,000 $394,380 $355,754 $404,465 $496,350 $615,085 $457,320 $465,646 All bid proposals were responsive. The Base Bid, not the grand total, is the basis to award the contract.

The low Base Bid of $205,280, submitted by Monterey Peninsula Engineering (MPE), was 30% below the Engineer’s Estimate and just $31 below the second low bidder. While the Additive Bid for the elevated boardwalk was 8% above the Estimate, it was still well below the average bid of the remaining six bidders. The Grant Total bid of $394,380 by MPE was 16% below the estimate.

Due to the efficiency of constructing all three, nearby drainage improvements under one construction contract, and given the favorable bids received, Staff is recommending that the Base Bid and Bid Additive be awarded at this time. A 10% contingency of $39,438 is requested should differing site conditions warrant urgent field changes.

MPE has completed a number of other construction contracts for the City. They are currently in the final phase of the FY 21/22 Annual Paving Project for the City, and will soon be underway on Cal Am Water’s Dolores Pipeline Replacement 21/22 Annual Paving Project for the City, and will soon be underway on Cal Am Water’s Dolores Pipeline Replacement Project for which Council approved an Encroachment Permit with Special Conditions of Approval on April 1st.

The Project site is within the MTNP and surrounded by wildlife, natural vegetation, trees, and walking trails. No work can be conducted adjacent to or within the creek while water is flowing; hence, construction is best performed in the Summer/Fall. Other conditions of approval included in the three regulatory agency permits include: pre-construction Monterey Dusky-footed Woodrat and nesting bird surveys, wildfire safety measures, tree protection, and other best management practices. An Amendment to the PSA with Dudek is currently being processed, in the amount of $34,950, to ensure that the pre-construction surveys and environmental permit conditions and reporting requirements will be met.

Construction will take four months to complete following issuance of the Notice to Proceed. MTNP will remain open during construction, and access to the trails will be maintained to the extent possible. However, the Contractor will fence off the work site for safety, and will periodically need to haul in heavy equipment and materials and remove debris. To minimize costs, construction management and inspection services will be performed by Public Works.

The Forest and Beach Commission and Friends of the MNTP also support this important project.

FISCAL IMPACT:

Costs for engineering design and environmental services, including permit acquisitions, were approximately $93,448 and were expended in prior FY CIP budgets.

The remaining costs for this Project, including the proposed construction contract, bid additive, and 10% contingency, are listed below.

No. Company Services Cost
1 Dudek Environmental Services
(Permit Compliance Monitoring)
$34,950
2 MPE Construction Base Bid 205,280
3 MPE Construction Additive Bid 189,100
4 10% Contingency 39,438
Remaining Project Cost $468,768
The Project can be funded as follows:

No. Funding Source Amount
1 CA Department of Parks and Recreation Per Capita
Reimbursement Grant
$178,000
2 Current Project fund balance 60,000
3 Remaining Balance of FY 2023/24 CIP Contingency
Fund
163,169
4 Temporary allocation of CIP Fund Balance to award
the Additive Bid (To be restored in FY 24/25 CIP –
Measure C) See Note below.
67,599
Total Funding $468,768
Note: The City is required to identify all funding at the time a construction contract is awarded. At the March 5th and 26th Council meetings, the Public Works Director presented the CIP for FY 2024/25 and noted that supplemental funding of approximately $72,000 would be required to cover the construction shortfall for this project. The revised amount of $67,599 will be included in the Capital Improvement Budget for FY 2024/25. However, in order to award the entire Contract in FY 2023/24, prior to the allocation of these supplemental funds, Staff is requesting that the award be based on the current CIP Fund Balance temporarily, until the new budget takes effect and the CIP Fund Balance restored. No progress payments for the Bid Additive are anticipated prior to July. restored. No progress payments for the Bid Additive are anticipated prior to July.

PRIOR CITY COUNCIL ACTION:

For the Fiscal Year (FY) 2021/22 Capital Improvement Program (CIP), the City Council approved a new project and initial funding to retain engineering and environmental consultants for the first three (3) of eight (8) stream restoration and erosion control measures along the drainage creek in the MTNP. Initial funding for the project of $203,000 was based on a California Department of Parks and Recreation Per Capita Grant of $178,000 and a required City match of $25,000, funded by Measure C.

In February 2022, the City entered into a Professional Services Agreement (PSA) with Neill Engineers Corp. for engineering and design of these three drainage improvements and other capital projects. In November 2022, the City entered into a PSA with Dudek for on-call environmental services.

In June 2023, Council adopted Resolution 2023-067 for the FY 2023/24 CIP, approving the carry-over of 25 prior FY CIP projects, including this Project, and approving a new CIP Contingency Fund with an initial budget of $500,000 to cover anticipated higher costs of construction contracts.

ATTACHMENTS:

Attachment 1) Resolution 2024-036

CITY OF CARMEL-BY-THE-SEA

CITY COUNCIL
RESOLUTION NO. 2024-036

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARMEL-BY-THE-SEA

AUTHORIZING THE CITY ADMINISTRATOR TO EXECUTE A CONSTRUCTION CONTRACT

WITH MONTEREY PENINSULA ENGINEERING FOR THE BASE BID AND ADDITIVE BID IN THE AMOUNT WITH CONTINGENCY, OF $433,818, FOR CONSTRUCTION OF THE MISSION TRAIL NATURE PRESERVE 3 STREAM/DRAINAGE PROJECTS
WHEREAS, in 2019, the Mission Trail Nature Preserve (MTNP) Stream Stability Study identified eight stream restoration projects along the MTNP creek, with the first three stream and drainage improvements including in this Project; and
WHEREAS, in 2021, the City was awarded a California Department of Parks and Recreation Per Capita Reimbursement Grant of $178,000 for this Project; and WHEREAS, in 2022, the City entered into Professional Services Agreements with Neill Engineers Corp. to design the Project, and with Dudek to provide environmental documentation and facilitate permit acquisitions; and
WHEREAS, the Base Bid portion of the Project includes drainage improvements along the Doolittle Trail and swale reconstruction on the Willow Trail, and the Bid Additive includes an elevated redwood boardwalk over a bog on Willow Trail, all located in the southerly portion of the MTNP; and
WHEREAS, in 2022 and 2023, environmental permits were issued for the Project by the U.S. Army Corps of Engineers, California Department of Fish and Wildlife Service, and the Regional Water Quality Control Board, and a Coastal Development Permit was approved by the Planning Commission; and
WHEREAS, in June 2023, Council adopted Resolution 2023-067 approving the carry-over of 25 prior Fiscal Year (FY) Capital Improvement Plan (CIP) projects, including this Project; and WHEREAS, seven responsive bid proposals were received at a Public Bid Opening held on March 19, 2024; and
WHEREAS, Monterey Peninsula Engineering submitted the lowest Base Bid, which is the Basis of Award, and their total bid, including the Bid Additive, of $394,380 is 16% below the Engineer’s Estimate; and
WHEREAS, a 10% contingency of $39,438 is required for any differing site conditions that warrant field changes, resulting in a total contract award of $433,818; and WHEREAS, the remaining balance of $169,169 from the FY 2023/24 CIP Contingency Fund is needed to award this contract; and
WHEREAS, the CIP Fund Balance of $67,599 is temporarily needed to award this contract; however, upon adoption of the CIP Budget for FY 2024/25, this amount will be replaced with new revenue in FY 2024/25, and the CIP Fund Balance will be restored; and Attachment 1
Resolution No. 2024-036

Page 2 of 2 ends

WHEREAS, the Forest and Beach Commission and Friends of the Mission Trail Nature Preserve support this Project.

NOW, THEREFORE, BE IT RESOLVED THAT THE CITY COUNCIL OF THE CITY OF CARMEL-BY-THE-SEA DOES HEREBY:

Authorize the City Administrator to execute a Construction Contract with Monterey Peninsula Engineering for the Base Bid and Additive Bid, in the amount with contingency, of $433,818, for construction of the Mission Trail Nature Preserve 3 Stream/Drainage Projects.

PASSED AND ADOPTED BY THE CITY COUNCIL OF THE CITY OF CARMEL-BYTHE-SEA this 7th day of May, 2024, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

APPROVED: ATTEST:
________________________ ___________________________
Dave Potter Nova Romero, MMC
Mayor City Clerk
Attachment 1

CITY OF CARMEL-BY-THE-SEA

CITY COUNCIL
Staff Report
May 7, 2024

ORDERS OF BUSINESS
TO: Honorable Mayor and City Council Members
SUBMITTED BY: Nova Romero, City Clerk
APPROVED BY: Chip Rerig, City Administrator
SUBJECT:

Resolution 2024-035 ratifying appointments to the Harrison Memorial Library Board of Trustees, Planning Commission, Historic Resources Board, and Forest and Beach Commission
RECOMMENDATION:

Adopt Resolution 2024-035 ratifying appointments to the Harrison Memorial Library Board of Trustees, Planning Commission, Historic Resources Board, and Forest and Beach Commission.

BACKGROUND/SUMMARY:

The City of Carmel-by-the-Sea Boards and Commissions perform a valuable service to the City by providing means by which the City Council can obtain advice, opinions, and recommendations of City residents and other members of the community. Terms of office for board and commission members are 4 years, except for the Harrison Memorial Library Board of Trustees who serve 3-year terms. To ensure continuity, terms are staggered, with no more than 2 members per board/commission having terms expiring within the same year.

Every December, the City posts a list of all board and commissions terms scheduled to expire the following year in accordance with State Law. In February and March 2024, in accordance with the City’s policies, the City advertised open positions for several boards and commissions:

Community Activities & Cultural Commission – 3 seats
Harrison Memorial Library Board of Trustees - 1 seat
Planning Commission - 1 seat
Historic Resources Board - 1 seat
Forest and Beach Commission – 2 seats
The application period ran from February 29
th
to March 29
th
. Current members with terms expiring in May
were invited to re-apply by March 29
th
. The City received numerous qualified applications, and residency requirements were verified using the GIS assessment database.

Recommendation
An ad hoc committee, consisting of Mayor Potter and Mayor Pro Tem Richards, conducted interviews on April 5 and April 10, 2024 of all new applicants. Applicants interviewed within the past year or currently serving on a board or commission were considered without the need to re-interview. All applicants demonstrated a strong commitment to serving the community.

After careful consideration, the following individuals are recommended for appointment:

Harrison Memorial Library Board of Trustees: Marie-Clare Gorham (term ending May 30, 2027) Planning Commission: Stephanie Locke (term ending May 30, 2028) Historic Resources Board: Kathryn Gualtieri (term ending May 30, 2028) Forest and Beach Commission: Sarah Berling and Hans Buder (both terms ending May 30, 2028) Community Activities Commission: No applications were received aside from Hans Buder.

Next Steps
The Council needs to ratify appointments through a Resolution. The Resolution (Attachment 1) to appoint the above individuals requires a majority vote for approval. Commissioners/Board members not reappointed will continue to serve until their terms expire on May 30 th
, with newly appointed commissioners
will begin their terms on May 31
st
.

FISCAL IMPACT:

None for this action.

PRIOR CITY COUNCIL ACTION:

The City Council annually ratifies appointments to vacancies occurring on the City's Commissions and Boards each year.

ATTACHMENTS:

Attachment 1) Resolution 2024-035
Attachment 2) Applications Received (redacted)

CITY OF CARMEL-BY-THE-SEA

CITY COUNCIL
RESOLUTION NO. 2024-035

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARMEL-BY-THE-SEA

RATIFYING APPOINTMENTS TO THE HARRISON MEMORIAL LIBRARY BOARD OF

TRUSTEES, PLANNING COMMISSION, HISTORIC RESOURCES BOARD, AND FOREST

AND BEACH COMMISSION
WHEREAS, City Boards and Commission perform a valuable service to the City by providing means by which the City Council can obtain advice, opinions, and recommendations of City residents and other members of the community; and
WHEREAS, terms of Board and Commission members are staggered, with no more than 2 members per board/commission having terms expiring within the same year; and WHEREAS, on February 29, 2024, the City advertised and invited applications from the public for various boards and commissions with terms expiring May 30, 2024; and WHEREAS, during the application period the City received several qualified applications; and
WHEREAS, the Ad Hoc Committee, consisting of Mayor Potter and Mayor Pro Tempore Richards, conducted interviews and considered all applications received; and WHEREAS, the Ad Hoc Committee is appreciative of all individuals who filled out an application and participated in the interview process, and after careful deliberation have determined the most qualified applicants for appointment.

NOW THEREFORE, BE IT RESOLVED THAT THE CITY COUNCIL OF THE CITY OF CARMEL-BY-THE-SEA DOES HEREBY:

Appoint the following individuals to serve on the following City Boards and Commissions with terms beginning on May 31, 2024:
• Harrison Memorial Library Board of Trustees: Marie-Clare Gorham (term ending May 30, 2027)
• Planning Commission: Stephanie Locke (term ending May 30, 2028) Attachment 1
Resolution No. 2024-035

Page 2 of 2 ends

• Historic Resources Board: Kathryn Gualtieri (term ending May 30, 2028) • Forest and Beach Commission: Sarah Berling and Hans Buder (both terms ending May 30, 2028)
BE IT FURTHER RESOLVED THAT THE CITY COUNCIL OF THE CITY OF CARMELBY-THE-SEA, does hereby defer appointments to the Community Activities Commission to a future date due to lack of applications received.

PASSED AND ADOPTED BY THE CITY COUNCIL OF THE CITY OF CARMEL-BYTHE-SEA this 7th day of May, 2024, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

APPROVED: ATTEST:
_________________________ _________________________
Dave Potter Nova Romero, MMC
Mayor City Clerk
Attachment 1
o
.Tflf.

City ot CarmetBy-Thesea
MAR 05 2024
Ofice ol the Crty Clerk ,/hA*
APPLICATION TO SERVE ON A CARMEL.BY.THE.SEA CITY

BOARD OR COMMISSION
ln accordance with the Public Records Act, submitted applications and attachments are considered public records and will be disclosed upon receipt of a public records requesl. Applications may also be published (with signalures and personal contact information redacted) in the agendas of relevant meetings of the City Council, boards and commissions.

NAME David O'Neil DATE MATCh 3 2024
RESIDENCE ADORESS CITY Carmel-by-the-Sea ZIP 9392't
MAILING ADDRESS CITY Carmet-by-tne-sea ZIP 93921

RESIDENCE PHONE BUSINESS PHONE
EMAIL
HOW LONG HAVE YOU LIVED IN CARMEL.BY.THE.SEA? 3 YEATS
Board or Com mission Selection:

You may apply for more than one Board or Commission. Please note, however, that members shall not serve simultaneously on more than one Council-appointed Board or Commission.

Community Activities & Cultural Commission (meets the secqld Tuesdav of the month at e:3o a.m.) Planning Commission (meets the second Wednesday or the month at 4:oo P.m.. tour of inspection at 2:oo P.m ) x Forest & Beach Commis6ion (m.ets th€ second Thursday ofth. mooth at 3:3O P.m., tour ofinspection at 3 P.m.) Historic ResoUrces Boa rd (meets the third Monday of lhe month at 4:oo P.m.. to.Jr or inspection at 3:15 p.m ) X Board of AppealS (dce annually and qr an as-needed basis) Will you be available tl3 attend board/commission meetings regularly? Revised JUV 16. 2019
Yes
Harrison Memorial Libra ry Board of Trustees (m€ets th 6 fourth wednesdav of tho mdth at 910o ..m. ) Attachment 2
All members of boards and commissions are subject to the Conflict of lnterest Laws of the State of California and are required to submit Form 700, "Statement of Economac lnterest,' within 30 days of assuming office. Form 700 must be filed annually thereafter, and within 30 days of leaving offlce as well. ln accordance wilh Assembly Bill (AB) 1234 appointed members are required to attend Public Service Ethics Education upon appointment and every two years thereafter.

Do you agree to flle all required atements in a timely manner as prescribed by law or the City's Conflict of lnterest Code? YE N
Since childhood. the captivatinq architecture of Carmel-bv-the-Sea. with its unioue charm and di nit n within m
estate and restorat ton. The ins iration drawn from n
tn career in these fields but also instilled a desire within m communt at red countless o ul memories. Moreover
h h
t I made a heartfelt mt
tom 101- ar-old mother-in-law on her deathbed that I would u hold m commitment to canng arme f a preservrng egacy.

Please list any relevant qualifications or experience you possess that would enhance the mission and goals of the board(s) or commission(s) for which you are applying:

Growinq up under the ouidance of a General ntractor father and a Real Fslale Broker mother instilled in me a passion for architectu and communitv stewardshin [Iv career spans various sectors, ineludjnq Commercial Construclion, Land Planninq. Development. lnvestments, Real Estate, and Historic Restoration. Notelvorthy proiects include commercial . chateau ren
reservation model. Activel contributin to Carmel-b {he-Sea throu h Steerin Comm an uncr mee S ave rea an con nue to stud the Desi n Guide nes General an, an unrcrpa emon la e a comm tment to seryt ng with inte-qrily as my iourney ,an OS
harmonizes m dreams and romises toward an shared communi vtston embracin co a fa on, umt
Please list any local area associations, boards, commissions, foundations, or companies in which you have an investment, or serve as an otficer or director:

Carmel Residents Association. Board of Directors
VELO, LLC, Marketinq & Sales Director and Proiect Manaqer lnstitution Course of Stud Year s
Leland Hiqh School Colleoe Preo ffi Colleqe Prep.

California Real Estate
.Diploma
REALTOR@
Senior Real Estate Service Desiqnafion
Revised July 16,2019
Reason for lnterest in the Position:

Education:

Attachment 2
Organization
\/trt o tta:

Organization:

Chateau de Falloux SARL
Year:

En
Position:

Organization:

Talk Radio
lMa
Posilion: f.lrrunarlFnr rndpr/Padin l-lnct I Year )nlr-ralA sition: M & Sales Director ct Mana er Year 1
Prior public service. civic or volunteer activities:.

Organization:

Position:

SPCA of Monerey Co
Volunteer Cashier Sh
Stop AIDS Project
Operations & Human
unty
op & Telethon Fundraiser Operator
Resources Manager
March3-2024
Year:2023-Present
202 1-Present
2011-2012
Date
Citizen knowledge, interest and participation are vital ingredients to the delivery of high-quality public services, The richness that comes from citizens serving in advisory roles to lhe City Council conlributes to making Carmel by the Sea the special place it is. The City of Carmel-by-the Sea thanks you for your interest in serving on a City board or commission.

Return application to the City Clerk's Office, East side of Monte Verde Street, between Ocean and Seventh Avenues or mail to PO Bor CC, Carmel.by-the-Sea, 93921, attention: City Clerk's Office.

VIPS - Volunteer in Police Service
Position: Volunteer Patrol Assistino for Carmel Police Deoartment Year:2023-Present Meal n rev Peninsuela Position: Dispatch,Safetv.&Fundraiser Yeac2022-Present Revised July 16.2019
Emolovment Experience (Starl with Most Recent):.

Carmal Flaaidanfc Ace^^irlinn Raard nf Directors
Organization:

Organization:

Attachment 2
DAVID O'NEIt
Carmel-by-the-Sea
93921
Carmel-by-the-Sea is the epitome of proper preservation and advancement through charming architecture, natural landscape and commercial development.

While in France remodeling a chateau, opening it to the public and helping with local development, I used Carmel-by-the-Sea as the prime example of the perfect balance of architecture, nature, real estate, local enjoyment, tourism, and commerce.

I have profound respect for Carmel-by-the-Sea and would be honored to be of service in its continued protection and development.

OBJECTIVE:

Volunteer position for Carmel-by-the-Sea Planning or Historic Commissions TECHNICAL SKI LLS:

Plan review, land planning and development, property management, submittals/budgets/RFls for commercial and residential, historic research, coordinating contractors, pre-planning in 3D Software/Sketch-up, PowerPoint, and Photoshop for architects/designers/clients, web design, commercial and high-end residential real estate sales and marketing, and 1031 tax deferred exchanges.

PERSONAL SKILLS:

Love of architecture and history, excellent listener, patient, reasonable, optimistic, objective, forthright, understanding, sympathetic, collaborative, perceptive, and a diplomatic communicator, facilitator and negotiator.

RELEVANT EXPERIENCE:
2021 - Present
Full time resident and volunteer in Carmel-by-the"Sea:
- Excellent understanding of the designs, landscape, architecture and commerce of the town.
- Have a vested interest in the long term development of the community. - Volunteer for Meals on Wheels, SPCA, Carmel Preservation Association, Carmel Cares, and PacRep.
2OO7 - Present
Commercial and Residential Reai Estate Agent:
- Excellent understanding of values, pricing and marketing. - Negotiations and contracts.
- Branding, media and lnternet marketing.
- Social media, web design, and graphic design.
- Video and photographic presentations.
- Discerning architecture and design observations.
- 1031 exchanges education and processing.

Attachment 2
1998 - Pres€nt
Commercial and residential construction experience:
- Home, commercial and historic remodels and tenant improvements. - Property management for both residential, commercial and HOAs. - 3D visual plans for architects and clients.
- Management of plans, submittals, RFls and correspondence. - Liaison with contractors, owners, HOAs, architects, design boards and municipalities.
2OO5 - Present
Land planning/development, and landscape architecturer
-Work with clients, planning departments and communities to approve concepts, mixed use development and international large scale development.
- Negotiate needs between parties to find alternatives and solutions. - Listen and communicate clearly to determine needs, benefits and costs.

VOLUNTEER EXPERIENCE:

Carmel Residents Association
Board of Directors
Carmel Chamber of Commerce
Public Relations
Meals on Wheels
Dispatch & Database Management
SPCA of Monterey County
Cashier Salesperson
Uassociation 3P : Pass6 Pr6sent Patrimoine
French Historic Association
Event l\4anager, Donor, Community Development, and Public Relations LA NGUAG ES;
English and French
EN DORSEM ENTS:

See Attached
Stop AIDS Proiect
Operations Manager
Attachment 2
v
SPCA
Monterey County
Cb41tg /-tves
Christy Jacoby
Box 3058
Monterey Ca,93942
83L-624-4271
December 1, 2022
To whom it may concern,
It is my pleasure to write on behalf of David O'Neil to volunteer for a position on the Carmel Design Review Board. I am the manager at the Benefit Shop for The SPCA Monterey County. David began volunteering for our shop in April 2021. After being fortunate enough to work with David, l'm extremely confident that he is the perfect candidate for the volunteer board member position.

I would highly recommend David for the volunteer board member position on the Carmel Design Review Board. l'm extremely confident that he would be a great asset to the board and help the board attain high goals due to his exceptional attitude, exceedingly strong work ethic and attention to detail.

Best Regards,
Christy Jacoby
Benefit Shop Manager
SPCA Monterey County
[email protected]
83t-624-427r
t
David currently cashiers for us for 3 hours once a week. However, in the past, he often has taken on multiple weekly shifts and even multiple daily shifts sometimes worklng for us 5 hours in a day. His daily undertaking involves cashiering, greeting and helping customers in our shop. He always comes to volunteer with an exceptionally positive attitude. He demonstrates great problem-solving skills and is extraordinarily self-motivated, often finding projects on his own to complete when sales are slow such as straightening clothing racks, cleaning and organizing the shop. David is a huge asset to our team and pays great attention to detail. With his help, this past November 2022, we broke record sales for The SPCA Benefit Shop.

Please feel free to contact me with any further questions you might have. I can be reached at 831-624-4ZLl ot by email at [email protected]
Attachment 2
To whom it may concern
This letter of recommendation is for David Michael O'Neil in reference to his seeking a position on the Carmel Citizen Design Review Board.

I have personally worked with David off and on over the past ZO+ years and have found him to be diligent, focused and very conscientious in all areas ofthe work he takes on.

During the late 90's thru the early 2000's we both worked at South Bay construction located in Campbell, Ca.

I worked as a Superintendent of construction and David was a project Engineer during his time there.

We worked closely together on bringing projects in on time and budget and I could not have asked for a better team partner.

During later years in keeping in touch with David, I was aware of the work he accomplished refurbishing his 22000sf Chateau in France along with other projects located in Hawaii, Montecito and now in Carmel It is my belief that with David's drive to excel in anything he sets out to accomplish he would be an asset to the Township of Carmel in whatever capacity he is interested in being involved with.

Sincerely,
Michael Trudrung
Superintendent of Construction
Landmark Builders lnc. (4081 209-2464
Attachment 2
PASSE . . PATRIMOINE
David et William O'Neil, lors de leur s6jour en France, ont restaur6 a I'identique le grand ch6teau du XlXdme sidcle d'Alfred de Falloux ministre sous Napol6on lll. lls se sont beaucoup impliqu6s pour la sauvegarde du patrimoine et la vie locale. Leur implication a rayonn6 sur le plan local, d6partemental, 169ional et mOme national.

David s'est beaucoup impliqu6 au cours des r6unions. ll a 6t6 trds accueillant et aimable visir-vis de tous les habitants en ouvrant les portes de leur chdteau a tous et en organisant des festivals, des portes ouverles, des concerts, une exposition pour retraoer l'histoire des am6ricains au cours du conflit mondial de 1914-1918 en participants aux march6s de NoEl etc....

Avec David, il s'est passionn6 pour I'Histoire et le patrimoine dans le soucis de d6velopper des liens avec tous. ll s'est beaucoup impliqu6 pour que des 6oliennes ne soient pas install6es d proximit6.

Je pense que David a beaucoup de sensibilit6 pour poursuivre une action de grande envergure sur son nouveau lieu de vie.

Je tenais i t6moigner en tant que pr6sidente de I'association ( Pass6-Pr6sent-Patrimoine ) et en tant que voisine lors de leur sejour en France et neanmoins amie malgr6 la distance qui nous s6pare maintenant.
lsabelle de Pontevds
La Cour
Le Bourg d'lr6
Le 23 noYemfie 2022
U
,R"."rg
Attachment 2
--TranslationDavid and William O'Neil, during their stay in France, restored identically the great 19th century castle ofAlfred de Falloux, minister under Napoleon III. They are very involved in the preservation of heritage and local life. Their involvement has radiated locally, departmentally, regionally and even nationally.

David was very involved in the meetings. He was very welcoming and kind to all the inhabitants by opening the doors oftheir castle to all and by organizing festivals, open houses, concerts, and exhibition to retrace the history ofthe Americans during the world war of 7914-t918 in participants in the Christmas markets etc....

With David, he was passionate about history and heritage in order to develop links with everyone. He was very involved in ensuring that wind turbines were not installed nearby.

I think David has a lot ofsensitivity to pursue a large-scale action in his new place oflife.

I wanted to testiff as president ofthe association "Past-Present-Heritage" and as a neighbor during their stay in France and nevertheless a friend despite the distance that separates us now.

Isabelle de Ponteves
The courtyard
Bourg d'l16
November 23, 2022
Past-Present-Heritage
3P
le Bourg d'lre
Attachment 2
lon
"flrochon
b.Arctr (Hons)RlbA
Architect
O'Deosbhord - Tover Rood - Mornington
County l4eoth - A92A5T5 - lrelond
[email protected]
Mornington 23 Oclober 2022
To whom it moy concern:

Mr Dovid O'Aeil
before retiring bock to lrelond in 2O2O, I hod lived ond vorked tor 27 yeors in Fronce. During thot iime I uos involved vith the renovotion ond reconstruction of five chdteoux, numerous lorge monsions ond residentiol buildings included in prolected ond clossified medievol villoges, oll over Fronce.

I first met Dovid vhen I vos invited 10 porficipote in the project of reconstruction of the ruined Ch6teou de Folloux, situoted in the fomous Loire Volley. The ch6teou doted bock to oround 1850, ond vos ln o terrible stote hoving been neglected for over tventy yeors.

My brief vos to ossist in bringing the chdteou bock to its originol splendor using, originol moteriols, detoils ond methods of construction olong vith speciolist croftsmen. From the outset I could see thot Dovid hod o totol understonding of the orchitecturol process, ond thol he wos going to be o huge osset for the project. There exists in Fronce o group of croftsmen colled "Les Componions du Devoir", theJe represent the top 5% of oll croftsmen in Fronce, ond ore noted for their dedicoiion to troditionol methods ond use of moteriols. Dovid insisted these croftsmen vere engoged for the vorks, ond thot our vorla respected the heritoge of the chOleou ond its environment.

Dovid hos o foniostlc eye for detoil ond olso on obilify to corry out relevont reseorch. He vos o constont portner ot our site construction ond design meetingi vhere his input vos both highly respected ond opprecioted.

Although the chateou vos not on the officiol government clossified list, it vos of significont orchiteclurol merit, ond olthough we hod no legol obligotion, Dovid insisted thot our proposols vere scrutinized by the government orchitect responsible for "Ancient Monumenti before ony work commenced on site. Ve olso hod o requirement to consull ond cooperote vith the tovn's council. Dovid ond I vould ottend these meetings ond it vos obvious the lIoyor ond his councilors respected his opinions. Ve vere often consulted os interested porties to comment on other proiects in the community, unreloted to our own vorks. During his lime in Fronce, Dovid olso conlributed to help the ovners of neighboring chdteoux vith plons for their ovn renovotions.
ln time our vork on the chaleou vos recognized vilh on officiol ovord from the French government, for our contribution to help sove the French heritoge ond potrimony. Aot something thot is given eosily.

I lived on site for two ond o holf yeors to complete the project. Dovid vos my doily componion throughout thot time ond hugely influentiol in the direction ve took I does not surprise me for one second thot he vould uont to be involved in o gr6up dedicoled 1o the protection ond oppropriote development of o historic commune, ond I om sure he vould prove to be o huge osset.

I remoin ot your disposition for ony subsequent enquiries you moy hove pleose do no1 hesitote in contocting me os required. lon -/trochon Archilect
Attachment 2
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Attachment 2
Ctty ol CamelBy-Th+Sea
MAR 05 2024
Olfico ol th€ City Cl€rk
APPLICATION TO SERVE ON A CARMEL.BY.THE.SEA CITY

BOARD OR COMMISSION
ln accordance with the Public Records Acl, submitted applications and altiachments are considered public records and will be disclosed upon receipt of a public r€cords request. Apdicalions nray also be published (with signatures and pGGonal contact information redaclod) in the agendas of rebvant m€etings of the City Council, boards and commissions.

NAME Karyl Hall DATE 3.3.2024
RESIDENCE ADDRESS CITY Carmel ZIP e3e21
MAILING ADDRESS CITY carmet ZIP s3e21

RESIDENCE PHONE BUSINESS PHONE
EMAIL
HOW LONG HAVE YOU LIVED IN CARMEL-BY-THE.SEA? childhood & 34 rFe€€{dc*_
Board or Commission Selection:

You may apply for morr than one Board or Commlsslon. Please noto, horever, that membars shall not serve simultancously on more than one Council-appc{nted Board or Commission.

Will you be available t stlend board/commission meelingis regularly? $\'Tllf
o o
Community Activities & Cultural Commission (m6ets rhc 5.cod Tu.sday of th. rnonrh at 9'30 a m ) Harrison Memorial Library Board of Trustees (m€ets the tou.th wednesclsy of the mdth at 9:oo 6.m.) Planning Commission (meets the second wedncsday ofthc month at zl:OO p m . tolr ofinspectid al 2 oo p m ) Forest & Beach Commission (meers rhe secmd Thursday otthe mdrth at 3:3o p m . t@r ot iospeclion at 3 p.m.) x
I
I
I
I
Revissd Juty 16, 2O1g
ves
Historic Resources Board (meets the third Mnday oi the month at 4:OO p.m.. toor of inspectioo st 3115 p m.) Board of Appeals {o.!ce annually 6nd 6 an 6s'needod basis) Attachment 2
Atl members of boards and commissions are subiect to the Cor{lid of Interest Laws of the Slate of Califomia and are required to subrnit Fom 700, 'S&atement of Econornic lnlerest' within 30 days of assuming office. Form 700 musl be filed annually theredter, and within 30 days of leaving office as well.

In accordance witt Assemuy BiI (AB) 1234 appointed members are required to attend Public Service Ethics Education upon appointmet and e\rery two )rears lhereafter.

Do you agree to flle all required in a tlmely manner as prescribed by law or the City'3 Confiict of lnterest Code?
Reason for lnterest in the Position:
iorr_
rhat-we_
'earnsC ever that p€rieC et tim6; respeetir€ and applying understanding o{ 6ode6 and standards nhile appreeiating "eemmen within S.

Please list any relevant qualifications or experience you possess that would enhance the mission and goals of the board(s) or commission(s) for which )ou are applying:

See attached CV
Please list any local area associations, boards, commissbns, foundations, or companies in which you have an investment. or serye as an officer or director:

N/A
lnstitution Cource of Stu
Santa Clara Unjversity Psychology BA
San Jose State University Psychology
Nova Southeagern University Education EdD
Revised July 16,2O1S
Education:

Deoree Ysar (s) t
Attachment 2
Position:

Organization
Position:

Year:

Karyl all 3.2.2!24
Signature Date
Citizen knowledge, interest and participation arE vital ingredienB to the deliwry of higlFquality public sarvices. Tha richnoss that comes from citizans servang in advisory rolas to ths City Council contributes to making Carmel by thc Soa the special place it is. The City of Carmal-by-the S€a thanks you for your intersst in serving on a City board or commission.

Retum application to the City Clerk's Ofiice, Ea3t side d Monte Verde Streot, between Ocean and Scv€nth Avenues or mail to PO Bor CC, Carmel+y-the-Sea, 93921, attentlon: City Cbrk's Office.

Rcvlred Juy 16.2019
Pacific Repenory Theatre board member, past secretary, treasuret vjce chait chair (twice) past secretary CRA Board
Co-Chair, Carmel Preseryatron Association
Organization:

Position: Year:

Organization:

See attached abbreviated Curriculum Vitae
Positon: Year:

Organization:

S€e attached CV
Position: Year:

Organization:

Position: Year.

Emolovment Exoerience (Start with ost Recentl:

Prior public service. civic or volunteei activities:

T
Attachment 2
Application for Historic Resources Board
I served on the Land Use Advisory Committee for
unincorporated Carmel and the Highlands for several years. My professional career was as a Medical Research Psychologist, but I have always been interested in real estate and design and have bought, repaired/improved, and sold several houses through the years. My late husband and I "adopted" the
historic Door House in 1997, for those who remember the considerable press about saving the little cottage.

I remodeled a 1927 "Carmel Charmer" that otherwise would have almost surely been torn down with two houses replacing it, because the lot is over 1 1 ,000 square feet. I have become aware of many of the dilemmas faced by the staff in trying to follow present codes while considering specific needs of homes/home owners.

I have been serving on the HRB for over five years, and would like to serve an additional four year term. Please consider my request for participation on the Board. I believe I offer a balanced, informed, and fair contribution to committee
deliberations, and have learned a great deal over the years.

Thank you for the opportunity to weigh in on this important work.

Sincerely,
Karyl Hall Ed.D., M.F.T.

Carmel, CA 93921

3.?4
Attachment 2

ABBREVIATED CI'RRICULUM VITAE
HRB APruCANON
K'&YL M. HALL
1995 - r999 Clinical Assistant Profussor
Depaft ment of Functional Restoration
Stanford University, Stanford, CA
Director of Research
Department of Physical Medicine and Rehabilitation
Santa Clara Valley Medical Center, San Jose, CA
1990 - 1999 Project Co-Director
Spinal Cord lnjury Model System of Care
Santa Clara Valley Medical Center/Medical Staff Corp
Project Director
Traumatic Brain lnjury Model System of Care
Santa Clara Valley Medical Center/Medical Staff Corp
1 985 - 1987 Project Director
Evaluation and Learning Facility
Rehabilitation Research & Developrnent Center
Veterans Administration Medical Center, Palo Alto, CA
1 973 - 1986 Associate Specialist l-lv, R6earch Pcychologist University of California
Langley Porter Neuropsychiatric lnstitute, San Francisco, CA 1972 - 1980 Psychology lnstructor
West Valley College and Ohlone College, Saratoga/Fremont, CA CREDENTIAL./LICENSE:

Community College Teaching Credential
N4arriage, Family and Child Counseling License (M.F.T.) EXPERIENCE RELEVANT TO THE CARMEL HISTORIC RESOURCES BOARD:

Member of the Land Use Advisory Committe€ (LUAC) for Unincorporated Carmel and the Carmel Highlands for several years.
l',lember of the former Carmel Preservation Foundation and member of the Carmel Heritage Society of Carmel.

EMPLOYMENT EXPERIENCE
1990 - 1999
1987 - 1999
Attachment 2
HALL, Karyl M., Ed.D
Preserved and enlarged the home of John Catlin, former mayor of Carmel, al24814 Pescadero Road, Carmel
Renovated/preserved the Historic I 906 Door House in Carmel Participated in the historic home tours by the Carmel Preservation Foundation and Carmel Heritage Society four tinEs (Pescadero home), and the Bach Festival virtual home tour twice, and Carmel Heritage Society tour (Dolores home).

Preserved and renovated four homes in Saratoga, California, and one in San Jose. ln 201 7 purchased and remodeled "Jollyhase' in Carnel, a 1927 home on Dolores Street believed to have been built by Dene and Watrous (founders of the Bach Festival), for the purpose of saving it from demolition and structurally bringing it up to modern standards while preserving its Carmel charm.

Three hours training on 2.29.24 on Standards & Guidelines for Preservation, offered to HRB members by the Planning Dept. of CBTS.

VOLUNTEER ACTIVITIES
I have served on the Board of Pacific Repertory Theatre for 17(!) years, as secretary, treasurer, vice president, president (twice), and also served on the Advisory Council.

Former secretary of the CRA Board
Founder and Co-Chair of the Carrnel Preservation Association Volunteer median minder and pick-up possee for Carmel Cares 3/2024
Attachment 2 2
Cfry ol Carmel-B'Y-The-S€a
MAR 18 2024
cfiice ot th€ city Glerk
APPLTCATION TO SERVE ON A CARMEL.BY-THE.SEA CITY

BOARD OR COMMISSION
ln accordance with the Public Records Act, submitted applications and attachments are considered public records and will be disclosed upon receipt of a public records request. Applications may also be published (with signatures and personal contact information redacted) in the agendas of relevant meetings of the City Council, boards and commissions.

NAME Adam Jeselnick DATE March 11,2024
RESIDENCE ADgpE5g 6lryCarmel
MAILING ADDRESS CITY ztP

RESIDENCE PHONE BUSINESS PHONE
EMAtL
HOW LONG HAVE YOU LIVE D tN CARMEL-By-THE-SEA? 14.5 years Board or Commission Selection:

Wilt you b€ available tc attend board/commission meetings regularly you may apply for more than one Board or Commission. Please note, however, that members shall not serie simultaneously on more than one Council-appointed Board or Commission.

L-o
.Tflf:

Community Activities & Cultural Commission (meets the secc.td Tuesdav of the month at 9:3o a m ) Forest & Beach commission (meets rhe sccond Thursday olthe moth at 3:30 P m., lour ofinsPcclion at 3 P m ) x Historic Resources Boa rd (mects the thtrd Monday of the month at 4:oo p m.. torr of insp.cllon at 3:15 p.m.) x Board of Appeals (o.rce annuallv snd dr an aln.cded basis) Revis€d Jut 16.2019
? yes
Vp 93923
Same as residence
Harrison Memorial Library Board of Trustees (me€ls the fourth wsdnesday ofthe mo.rth sl 9:oo a.m.) Planning commission (meets the second wcdnesday of the month at 4:oo p.m.. tour of insPectio.! at 2:oo P.m.) Attachment 2
AII members of boards and commissions are subject to the Cor lict of lnterest Laws of the State of California and are reguired to submit Form 700, 'Statement of Economic lnterest,' within 30 days of assuming office. Form 7OO must be filed annually thereafter, and within 30 days of leaving office as well. ln accordance with Assembly Bill (AB) 1234 appointed members are required to attend Public Service Ethics Education upon appointment and every two years thereafter.

Do you agree to flle all require
Conflict of lnterest Code? YE
d ments in a timely manner as prescribed by law or the City's N
Reason for lnterest in the Position:
historic bui din s are essential to its un ue character at reservation of th s necessa ry to maintain the diversi of arc tectu s les from the earl 1900s throu h toda .Asthee ofa warmrng rma eco nue o rmpa AU an SU rna our na ura envtronmen teve we l's
Ileeo roprann ror ways Io prepare lor tne next 1 uu years Please list any relevant qualtfications or experience you possess that would enhance the mission and goals of the board(s) or commission(s) for which you are applying:

Carmel Green Building Committee
MOnIerey coun HOUSrng AOV|SOry UOUnCtl
Forest & Beach commission (tree oermits. etc.)
Please list any local area associations, boards, commissions, foundations, or companies in which you have an investment, or serve as an officer or director:
lnstitution Course of Stud De ree Year (s)
School of Architectr rre
Education:

Revised July 16,2019
Attachment 2
Year
Organization:

Adam Jeselnick Architect
Organization
Year: 2009-2013
Position: Year
Organizati on:

Carmel Woods Neighborhood Assorqtlol(peglqtary)
Position Year: 2022
3t11t2024
Signature Date
Citizen knowledge, interest and participation are vital ingredients to the delivery of high'quality fublic services.-Tire richness that comes from citizens serving in advisory Toles to the City Council contributes to making Carmel by th€ Sea the sPecial place it is. The City of Carmel-by-the Sea thanks you for your inter€st in serving on a City board or commission' Return application to the city clerk's office, East side ol Monte verde street, between ocean and seventh Avenues or mail to PO Box aC, Carmel'by-the-Sea, 93921, attention: City Clerk's Office' Building Board of Appeals
Organization:

Position: Y ear'.

Peninsula Ballet Theatre (Participant) Organization
Monterey
Position Year
Revised July 16. m19
Emplovment Experience (Start with Most Recent):

Prior oublic service. civic or volunteer activities:

Position:

Carver + Schicketanz Architects
Position:

Attachment 2
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OVdCarmelq'Ihe€.

IAR t 0 2024
Oilloa ol Uto qV qorh
Ory ol CamoFBry-1h6s'8
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APPLICATION TO SERVE ON A CARMEL.BY.THE.SEA CITY

BOARD OR COMMISSION
ln accordance with the Public Records Act, submitted applications and attachments are considered public records and will be disclosed upon receipt of a public records reque9. Applications may also be published (with signatures and personal contact information redacted) in the agendas of relevant meetings otthe City Councrl, boards and commissions.

NAME lLeric' C[rc 'frqtq:: 64'^ s/ tt/zl
RESTDEN.E r" hrn^ei zp 1!:Z!-
MATLTNGADDRESS ClTy Ca(ru,l Vp 1312 /
RESIDENCE PHONE BUSTNESS pHoNE k"t.y-)
erun[
HOW LONG HAVE YOU LIVE D IN CARMEL.BY-THE.SEA? S:T YT4TS Wilt you be available toattend board/commission meetings regularly? Revised July 16. 2019
you may apply for more than one Board or Commission. Please note, howeve., that members shall not serve simultaneously on more than one council.appointed Board o, commission.

Communrty Actlvitles & Cultural Commisslon (mo.ts th. s.cod Tu.sdav of t o month at 9:30 a'm') Harnson Memorial Library Board of Trustees (mc6ts tho lounh w.dn.sday ol th€ month at 9:oo a.rn.) Planning commission (meets the second w.dnesday of the month at 4:0o p.m.. tour o, insPection at 2 oo P.m ) Forest & Beach commission (m.cts the sccond Thursday cf tho m$th 6t 3:3o P.m . toir of insPcction at 3 P.m ) H tsto ric Reso urces Board (meets the th ird Mc.rday of the mcnth at 4 o0 p.m., t(lllr ol rnspection at 3:15 p. m.) Ig
I
I
I
I
DATE
Board or Commission Selection:

Board of Appeals (qrce annually and dr an aenccdcd basis) (s
Attachment 2
All members of boards and commissions are subject to the Conflict of lnterest Laws of the State of California and are required to submrt Form 700, 'Statement of Economic lnterest,' within 30 days of essuming office. Form 700 must be filed annually thereafter, and within 30 days of leaving office as well. ln accordance with Assembly Bill (AB) 1234 appointed members are required to attend Public Service Ethics Educalion upon appointment and every two years thereafter.

Do you agree to flle all requiredsiqte
Conflict of lnterest Code? YEfl
ments in a timely manner as prescribed by law or the City's Reason for lnterest in the Position: lur* dc<fiw1.-uthich l^r to E<cw) &r (vtA oV lilort Please list any relevant qualifications or experience you possess lhat would enhance the mission and goals the board(s) or comm sron
oP
l^1; htl ) for which
o(
you a yln9
tvl
pl
wo b, le [roi,v) n^< 4u
u
Please list any local area associations, boards, commissions, foundations, or companies in which you have an anvestmenl, or serve as an officer or director:
wds fi,olsQt, ,'1k )a-Peridna '," Ce 6*ltt flta"lhqo..
h+
[t{
2 a J EV\ t1r4
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t ?.0 70'
ov6
lnstitution Course of Study Dogree Year (s)
mvtr<fi,f+!... ?rcipit- t Lvr* 200 -goll
Revised July 16,2019
Education:

IrilYrr(Pltt"(
U
na.

Attachment 2
Year ll -zt
Position l Year: u
8i8i[i?''ih Murcurn+ fas,rdtr," l'tt vtl,*'c calnor,,i* Aft Position i** o*,*o(
Posrlion I t(.( Year 2<to I
Position
orsanization: (,ttr/orni,. Sl^k Fqir
Bol'(C .€ flutkt s
a Year LO
Position Year '?-c l
Organization .l'/
Position: Y ear:

Signature Oate
Citizen knowledge, interest and participation are vital ingredients lo the delivery of high-quality public services. The richness that comes from citizens serving in advisory roles to the City Council contributes to making Carmel by the Sea the special place it is.-The City of Carmel-by-the Sea thanks you for your interest in serving on a City board or commission.

Return application to the City Clerk's Office, East side of Monte Verde Street, between Ocean and Seventh Avenues or mail to PO Box CC, Carmel'by-the'Sea, 93921, attention: City Clerk's Office' Revised July 16,2019
orsanization;
Se l€ cr*rylrpJ
orsanization: $q ghn\ uniwry'hl
Emolovment Experience (Start with Most Recent):

Prior oublic service. civic or volunteer activities:
3/ tt/2f
orsanization: |latigo /Vltrr,rodpl Libra y
Attachment 2
2EHflR'?4r$1:41
Clty ot Cermel'Br'nt€'Sea
MAR rt 2024
Offce o, tfE ()ity Cled(
APPLICATION TO SERVE ON A CARMEL-BY-THE.SEA CITY

BOARD OR COMMISSION
ln accordance with the Public Records Aat. submitted apdi:ations and attachments are considered public records and will be discbsed upon receipl of a Blblic r€cords lequesi. AlE*ications rnay also be published (with signslures and personal contact infurmation redacied) h the agendas of relenant rneetings of the City Council, bosrds and commissions.

NAME 4 ( L DATE 22 'Z-o
RESIDENCE ADDRESS f cm&RMt=czte1ita
MAILING ADDRESS c €.LztP lzlzt
EMAIL
r----rRESTDENcE pHoNE BusrNESs pHoNE
How LoNG hrAVE you LrvED rN cARMEL-By-rHE-sEA? I { Y aJ$ )+ Susr r ?gRo or."##8"!*#"'",3"t"*.1$Pf -
You may apply for mors than one Board or Commi$ion. Please note, horever, that members shall not serye simultaneously on morr than ona Council-appcinted Board or Commissbn.

Will )lou b. aveileblo t ettcnd boerd,Eomnissbn mestings ,€gdarly? R.vir.d Jut 1A 2010
L
o
-Tt f
Harrison Memoaial Library Board of Trustees (meets the iourth wednesday of the mmth al 9:oo a m ) Planning Commission (mccrs ma sccond wadr.s.hy ad th€ mootn rt 4:oo p.m.. tour or inspeclion at 2:OO p.m.) Forest & Beach Commission (m!.ts thc sccohd Thursday olthe mdrth st 3:3o p.m , tdr. of hspection at 3 p m.) Historic Resources Board (meeas the third i/lmday of lh6 month at 4:oo p.m.. tcur of inspection al 3:15 p m.) x Board of Appeals (oic. annualty and dr en es-necdcd basis) lole r
Community Activities & Cultural Commission (meets ttre sccdrd Tu.54,.y otthc month at 9:30 a.m.) Attachment 2
All members of boards and commissions are subject to the Conflict of lntBrest Laws of the State of Califomia and are required to submit Form 700, 'Statement of Economic lnterest,' within 30 days of assuming office. Form 7OO must be filed annuslly thereafter, and within 30 days of leaving office as well. ln accordance witr Assembly Bill (AB) 1234 sppointed members are required to attend Public Service Etfitcs Educalion upon appointment and errery t!rc years thereafter.

Oo you agroo to flle all roquiredglate
Conflict t lnt.rest Godc?' YEF ments in a timely manner as prercribed by lew or the City's Please list any local area associations, boards, commissions, foundations, or companies in which you have an investrnent, or serve as an officer or diredor:

Education:
lnstitution Course ot Study Degree Year (s)
?.1"
Revbed July 16,2018 Z
Reason for lnterest in the Position:

Please list any relevant gualifications or experience you possess that would enhance the mission and goals of the board(s) or commission(s) for which you are applying:
d'<l- *Jrta,pt*-\
Attachment 2
Stephanie Ager Kirz
REASON FOR INTEREST lN THE POSIT|ON: Historic Resources Board Preserving the essence of Carmet as expressed in its structures is an important and deticate rote for the Historic Resources Board.

My love of Carmetdevetoped when I attended and graduated from Carmet High School in 1964. After many years tiving and working in the pacif ic Northwest, I was fortunate to find and purchase a vintage Comstock catted Curtain Catts in 2010. I had, in my youth, f requented the Tuck Box and was wetl aware of the Comstock charisma.

Curtain Catts, on the other hand, as they say in reat estate was, a ..Btade Job.,, The
cottage sat on the market for over a year and was in miserabte shape. It was not on the historic roster and most tikety woutd have been buttdozed by someone not sensitive to its historic potentiat.

My experience rebuitding the cottage and restoring the grounds with the Carmet City Councit was extremety positive. A sentiment that I often communicate to the amazement of others. Later I added a guest house to reptace an ugty garage with once again, comptete cooperation f rom City Hatt.

And yes, fut[ disctosure, my stepfatherwas Fred Hofsas who buitt the Hofsas House so I had a front row seat in the recent detiberations of historic versus non-historic pubtic debate.

RELEVANT QUAL|FTCATIONS OR EXPERTENCE THATWOULD ENHANSE THE MtSStON AND GOALS OF THE BOARD.

After working in the advertising and pubtic retations f ie[d for over 35 years, upon retirement, I started a smat[ pubtishing company catted White Dog Press. One of my first projects after I purchased Curtain Catls was to buy the rights of ,oanne Mathewson's book, The FairyTale Cottages of Carmel and breathe new tife into her book which had been out of print. She died shortty after I purchased the rights. Kent Seavey kindty wrote the forward in my book.

My architect Ray Parks encouraged me to fite for the Mitts Act and place my cottage on the Historic Roster. My home was the first appticant to be approved for the Carmel Mitts Act.
ln addition, ljoined the Carmet Heritage Society a decade ago and am working currently to help celebrate Comstock's 1 00 Year Anniversary. Past years my home has been avaitable on their annuaI tours.

LIST OF LOCAL AREA ASSOCIATIONS, BOARDS, COMMISONS, ETC.

Current Director of Stittwater Yacht Ctub and Co-Editor of the Cove'er Newstetter Organization: Carmel Cares - love gardening.

CarmeI Heritage Society
EDUCATION:

University of Washington Schoot of Art, bachetor's degree art, 1 969 \"
1 I
Attachment 2
EMPLOYMENT EXPERIENCE:

White Dog Press, Ltd. . . . .

Just a fun, creative outlet to keep me out of trouble in retirement.

I write books and travet artictes in my spare time
Ager & Associates Pubtic Retations, Seattte, tong ago
Ager/BP&N Public Retations, Seattte Porttand, tong ago
Cote & Weber Pubtic Relations Seattte (Ogitvy and Mather) representing Fortune 500 ctients, even tonger ago
Member AFTRA - American Federation of Radio and Tetevision Announcers. (after cottege) radio commercia[s and on-air KOL Radio AM & FM Seattte z'L Jo z
Stephanie Ager Kirz
Carmel by the Sea
California 93921
[email protected]
?
I {'tnz
L
1 ?*-1'
PRIOR PUBLIC SERVICE, CIVIC OR VOLUNTEER ACTIVITIES:

University of Arizona - SchooI of Art Advisory Board 2013 Las Patomitas HOA Board Member, Tucson, AZ
Board Member lntiman Theatre, Seattte, WA
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Attachment 2
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APPLTCATION TO SERVE ON A CARMEL.BY.THE.SEA CITY

BOARD OR COMMISSION
ln accordance with the Public Records Act, submitted applications and allachments are considered public records and will be disclosed upon receipl ol a public records request. Applications may also be published (with signatures and personal contact informalion redacted) in the agendas of relevanl meetings of the City Council, boards and commissions.

NAME t<- Q',.627i ea't ilAnex 2.5r 2'oa'{
DATE
RESIDEruce nooness cnv U<.iler zp ? 3 e&/
MAILING ADDRESS cnv ekntr,teL zp 93 9a/
RESIDENCE PHO Ne ? BUSTNEs sPHoNE
EMAI frer-Ttue S,niee t1?g
No'1. &e"2"3 How LoNG HAVE you LtvED tN cARMEL-BY-THE-sEA? ruJAS- siruce Board or commission Selection:

Will you be available battend boardrcommission meetings tegularly? Reeised Juty 16.2019
4qs
you may apply for more than one Board or Commission. Please note, however, that members shall not serve simultaneously on more than one council-appointed Board or commission.

CommunityActMities&CtllturalCommission(m.e!sthc5.cqrdTuesdavorth'lrYflhtt9:3oam) F,lanning commissron (mcers lhe s€cond wcdrcsday ol rhc rylonth at 4:oo p.m . lour of inspectlar ql 2roo P.m. ) Forest & Beach commission (mets rh€ secc.id Thu.sday of ihe m6th .t 3:30 p m . larr ol inspeclion al 3 p m.) Histonc Resources Board {m.!ts th.lhrd Mdd6v otthc mdth 61 4'oo P m. tdr' of insp'cboo at 3'15pm) Board of Appeals (6ce annually and 6 a^ as-n.e.lcd b6srs) d
fiy o{ Carmel-Bt-Thes€q
MAR rS 2024
Olltoe ot tt€ OtY Ol€d(
o
Harrison Mernorial Library Board of Trustees (mc.ts tho lourth W.dn.sday olthe moth a! 9:oo a'm') x
Attachment 2
All members of boards and commissions are subject lo the Contlict of lnterest Laws of the State of California and are required to submit Form 700, "Statemenl of Economic lolerest,' wthin 30 days of assuming office. Form 700 must be filed annually thereafter, and within 30 days of loaving office as well. ln accordance with Assembly Bill(AB) '1234 appointed members are required to attend Public Service Elhics Education upon appoinlment and every two years thereatter.

Do you agree to file all required statements in a timely manner as prescribed by law or the City's Conflict o{ lnterest Code? YE N
Rea o for lnterest in t osition
)4<- c U./14 tt4)
Please lisl any relevant qualifications or experience you possess thal would enhance the mission and goals of the ard(s) or commission(s) for which you are applying Please list any local area associations, boards, commissions, foundations, or companies in which you have an investmenl, or serve as an officer or director:

Educationi
lnstitution Course ol Study Degree Year (s)
UI I
T
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l159
lld- rli sll"r rrr t1 ,2 J
Revised July '16,20lg
Attachment 2
-iV'bt4--2^f, loe.l
Signature
Retum application to the City Cle.k's Orfice, East side of Monte Verde Street, between Ocean and Seventh Avenues or mail to PO Box CC, Carmel-by-the-Sea, 9392i, attention: City Clerk,s Office.

Citizen knowledge, interest and participation are vital ingredients to the delivery of high-quality public services. The richness that comes from citizens serving in advisory rotes to ttre City Councit contributes to making carmel by the sea the special place it is. The city of carmel-by-the sea thanks you for your interest in serving on a City board or commission.

SAcRRUe^rfO, en
nization
o -f OA
Posilion ce Y
o sAnJ Jose. Htsroct a4L LA,DMfiXs BD.

Organization
c.r l lts-'77
Posilion Year:

SOHoor- %ruB" SATJFR.Ade-f-?o Organization -
Position Year: LoI stB b tLs&la
izalion:

Position Year
?A A'Udr
^J6 ? Tb LA c,ol,t& r'ssrbnJ
Organization
s
Position: Y eAr
&!cAL RcsaaAces Cornuis>conJ
Organization
Posilion Year
Revised July 16. 2()19
Emplovment Experience (Start with Most Recent):

Prior oublic service. civic or volunteet activities:

Date
Attachment 2

KATHRYN GUALTIERI
Carmel-By-The-Sea, CA 9392 I

EXPERIENCE
2013 - 2022
2003 2011
1998 2002
1992 - 1995
1985 - 1991
1967 - 1980

PUBLICATIONS
2016
1988
Member, Carmel Historic Resources Board
Historical Consultant, City of Carmel Planning Department Member, Carmel Historic Preservation Committee
Member, City of Capitola Planning Commission
State Historic Preservation Officer for Califomia
Member, State Historical Resources Commission
A Village in a Pine Foresl: Carmel-by-the-Sea wilh Lynn Momboisse Half Moon Bay: Birth of o Coastside Tou,n, Magic Press. Burlingame

EDIJCATION
1982 Master of Arts Degree, Department of History, San Jose State University 1959 Bachelor ofArts Degree, School ofSocial Science, San Diego State University Attachment 2
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26ttQR'Z+
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UAR t6 2024
O{lioooltEqCbt
APPLICATION TO SERVE ON A CARMEL.BY.THE.SEA CITY

BOARD OR COMMISSION
ln accordance with the Public Records Acl, submitted apdications and atlachments are considered public records and will be disclos€d upon receipt of a public records request. Applications may also be published (with signatures and parsonal contact information redacted) in the agendas of relevant meotings of lhe City Council, boards and commissions.

NAME dr.e
RESIDENCE ADDRESS CITY fnru.n/r
MAILING ADDRESS CrY OnrPre,\
RESIDENCL PHoNE BUSINESS PHONE
EMAIL
zP q3$a
aP q3qa
HOW LONG HAVE YOU LIVED IN CARMEL-BY-THE.SEA?
Board or Commission Selectlon:

You may apply for mor. than one Board or Gommisslon. Plaas€ note, however, that mcmb€rs shall nol serve simultaneously on morc than one Council-appolnted Board or Comml.slon.

Harrison Memorial Library Board of Trustees (meets the fourlh wcchGsday ot thc mdrth at 9:oo a.m ) Planning Commisston (mcets uc sccond w.dn.sday ol th! month at 4:@ p.m , tour ol rnsp.ctisr at 2:oo P m. ) x Forest & Beaoh Commissaon (rn .ts tho sccdld Thursday ol thc mdrth tt 3:30 p.m., tarr ol lnspectjon Et 3 p m.) Historic Resources Board (me.ls thc third Msr(hy ol thc mqrth at a:Oo p.m . lqrr ot insPcction at 3:15 p.m.) tn trars
Dnre l"hrah 2.1,7O1{
Will you be available b attend board/commission meetings rsgularly? R.vixdJuY 16.2010
o
Community Activities & Cultural Commission (m.€ts th. s.card rulsday ot thc rnonth at 9:3o a.m.) Board of AppealS (drcc 6nnually shd c.] an as-n..dod basls) Attachment 2
All members of boards and commissions are subject to th6 Conffict of lnterest Lalvs of the State of Califomia and are requir€d lo submit Fom 700, 'Stetement of Economic lrtere3t,' within 30 days of assuming offic6. Form 700 must be filed annuBlly thereafter, and wilhin 30 de),s of leaving office as well. ln accordarrce wih Ass€mHy Bill (AB) 1234 appolnted mernbeB are r€quired to altend Public Servlce Ethics Education upon appointrnent and every tlro years lhereafter. uirod
Reason for Interest in the Position
Do you ag?oe to flle all rrq
Conflict ol lnterdst Coir'r? YE
ull1 OnegS+ 4t)
list any relevaht qualificatiohs or
lnatlmaly mannor ar pretcrlbed by lew or the Clty'!
r
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0ess m
that uld sion and goals
UtfrQ
P the nrh
' 0L AlPiF,
ap t ats+ tr\
of the s) sion(s) which you are
Pl€ase list any local area associations, boards, commissions, foundations, or compani€s in which you have an invsstment, or serve as an officer or direc-tor:
lnstitution Course of Study Degree Year (s)
[Yvlr*Prp, r Qcr^..e.r.rVt 0 <']la"rr Gor'""aLa-k rA.eq C-ot\ A{.'td \wi,r*pro'. Pr.r rI paflt6ct6*onre. .c tr rrrrv.e,.+ Po\..., J J J Reviled July 16 2010
e se(
you possess
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('nstae\ St. (\^n5
Education:

Attachment 2
Emplovment Exoerience (Start with Most Recent):
sig Date
Citircn knowlodgo, intorost and participation are vital ingredionE b tho deliy.ry of high-quality public services. The richness that como6 from citizens sorving in advisory roles to tho City Council contributes to making Carmol by the S.a tho spocial placo it i6. The City of Carmel-by-the Sea thanks you for your intorest in serving on a City board or commission.

Retum application to the City Clert's Office, East side of luonte Verde Strset, b€tt reen Ocean .nd Seventh Avenuea or mail to PO Box CC, Carmel-by-the€ea, 93921, atcntlon: City Clork'3 Office.

Organization:
\0o*pr w\o,rrnoeuer* Dstn.t
Position: \1l ofulr tf pgn6nd Mn rnaapr --O Year: \QBB- Qc,ec.,r.L Oroanizalion: \) -'-O"eae,p- \.arvrUooe \.F*ln+u\e Btprrnn Lnncrrr^a. Cg Position: "tef Year: \t3S - \q*R Oroanizalion: I r t
- \\r\Vr.ae 3poc{ B\nns'ro . Corrlp\-\"-rJf"p-Seo.

Position:9rtpq !) Year: tqRq-95
Oroanizeton: - Corr,,.p\-h.'-t\ne-- 3eo.

Position: Eo i eo.L -L Pnpnnl".- Crtr,n nlr,r9o.46r\ + P\annr",r, C..uM.ceu ";,Year:Z0tt - Ptdd.t Organizalion:
trR^E- $tzK J
M^r*prou
Position: ear:

Organization;
Position: PrnarA C}rair f z(Yti)7r'rrr\ €anrrAonemhg Year: lq(R- ?rY\\ Rrvir.d Juty 16,2019
Prior oublic service. civic or volunteer activities:

Attachment 2
eitY of 6armel.gy.The€ea
MAR I E t024
SceotUteOrtyCIglr
APPLTCATION TO SERVE ON A CARMEL.BY.THE.SEA CITY

BOARD OR COMMISSION
ln accordance with the Public R€cods Act, submiued spplcauons and attacfimants ere @nsid€rod public rocords and will be disclos6d upon receipt of e public records request ApplicalbnB rnay slso be publistled (with signatureE and personal contact inhrmetion rcdacted) il th€ agondas of relevant meetings o, the Cily Council, boards and commisgions.

NAME ScsrUrq e<\i<r=rr
crry C"*.\ .i--
'ztPS-,-
RESIDENCE ADORESS q3n73
MAILING ADDRESS .J-a.,.=c-- CITY

RESIDENCE PHONE BUSTNESSPHONE
EMAIL
HOW LONG HAVE YOU LIVED IN CARMEL€Y.THS.SB12 ..'6< OO ginq& T$L[3 Board or Commission Selection:

Yo.r mry rpply for monr than on. Bo6td o. Comml!.lon. Plallr nota, how.v.r, thet m.mbc'3 sh.ll not rcnn rlmulun.ourly on mon than onc Councll'spPolntad Board or Commlsslon.

Corrrurity A4tlvlt!* & OJ[Lral Co.Irnl6alon (m-tt th. -Gstd rur'v c,tL nsrlh d o3} t.m.) Fbrhon Morrbrlat LlbEry Bold dTnJglc.. (rr.i.tr.tt lli r!,l !l-d.v olth! nrdrlh.l mo 1ln.) PlarnlmOorrrnblbn(m.d!--Gs!dvitacrdy.atlr.l'Erln.la:ooPnt..E.ahT.cdal.l2ooPr'r') Fottd a Bac+r CorrrriElm (rr-ln...cqn Thl,tdq, ot !i. rncrlh.! 3:!o Dnt.lqr dE do.l d ! Prt! l llbbrlo R€orrlaa Eloald (mt lt tl. tnE trblqt d$. mdrlh rl4:oo PJn-.lqrr ol li.pdqt d !:1! P ln.) &.tll o( AFP.als (drc. Jl7lr.lbl .nd or .n r}fl-.ld h.L} Wa }oU bc wafl6ue b dlara boerdrcommi$ion m.€lirE3 Lgultdy? Rr.,ir.d ,Irty ll 201g
DATE
ztP
o
Attachment 2
All mcflrbefs ot boatds and commisslrns arB suQlrct to lle Conflbt of lrtea€st LarE of UE StaE of Caltfu.nia md alB eqti'Bd to rGmit F{m 700, 'Std*n€nt of Eco,rdrlc lntEr€d.' wlhh 30 days d a8qrning olfica. Form 7m nlJ3l be nbd ennually ttEr6dE, and withh 30 daF of loavhg oiffce as wofl. h accordaE $ilft Ass€rnuy Bll (AB) 1234 appolmed m€mbeIs arB equir€d !o atend puulc Sendce Ethks EdrHtlo[ upon appoinfnrr and o!,€ry hio ysaB theroafter.

D,o you ag]ta b f,le rll Gqulr.d in . tlm.ly manner rl prt Crlbed by law or the City's Confllc{ of lntsrert Code?
Reasoo br lntsred h tlr€ PGitlon:
t
Pbase nst aoy rdevant qualiltcatons or sxp€rbnce you possass that would enhanco the mi&slon and goalg oflhe ) or commlssion(s) for wtrk*r pu are
Pl€as€ list any local area assocHbns, boeds, commbeiona. fuqndations, or companies ln whk* lrou hav€ an or senre as an oficer or di€rtor
Educrtion:
lnsdtuffon Gourrc of Strdy Decree Yeer (s)
S*an'A.A tl ..1.t.*1-r^^ .
-
L!i.id.-..ry-. {4.A. r4q 'Drr";-\r:-, i\r. r,- lr^^d cilv.r-iS 4JZi. II*u [n.3\^, .-76{ T Fovk€d &V 16,2Ot9
i
i
Attachment 2
OrggdEaton:
>ir.lN
Emplovment Exosrience lstart with llost Recentli
S.ur\
SlgnaUre
1(ro | 1., trafi----
Raorm .eplic.tlon b tr. Clty CLrlC! Ofic., E .t llda ot monta V.rdr 3tt!.t b€tre.o Ocaan and Ewsn$r Awnu.. o?m.tl to PO Elox Cq C..melty{t}8.8, o:tmt' .tt ndon: City CLrlC. Ofnca' Ycar 1>-ao
\o.-"-
Posilidr: t4'1^ .Fu i.k Year:

Positior:: Year: '7 o
Oaqarizrtim:

C-,.'."..^-O Go or.lLSti ,-r
Yean
Positieh: .(l- .,.-\-& (_.J Yaarbo<\X-oal,
Oroanizatioo: --5Qcft
"-.A ilr*^* \rJIUkG- +- rlQ,no)i"e=-Gr!c5a -tr)-"h
Positon- -Di <a,- fs - Bo*-3 Y@c 2€l<)o\<
Rlvlr.d July lG arg
i
I
!
I
I
I
I
I
I
I
Prlor oubllc servlce. civlc or volunteer activities:

Cl0zen knorrlcdgc. lirt ltlt.nd padlclpauon..e vltal lng,Edlsnt b the dcliwry of hlgltquallty puHic rrucoc. Tho ,lchmlr that comor lrom clllzans rcrving ln advi.ory .olea to the Clty Council Gontrlbutor b rn klng Carmrl by thc Sea thc rpcclal placc ltlr. Th.Ctty of Carmcl'by-thc Sca ths kt you for your lnt rrrt ln sorvlng on a Glty board or commlrrlon.

Attachment 2
-T,,f
City of CarmetBy-Th+Sea
MAR 2 I 2024
oflice o, the city clerk
ln accordance with the Public Records Act, submitled applicalions and attachments are considered public records and will be disclosed upon receipt of a public records requesl. Applications may also be published (with signatures and personal contacl information redacted) an the agendas of relevanl meetings of the City Council. boards and commissions.
l\ans 6u&r DATE llfl lzoz+
RESIDENCE ADDRESS CITY Ca,',r .l ZIP 13121
MAILING ADDRESS CITY r nn a,l ZPq ?
you may apply for more than one Board or Commission. Please note, horrevel, that members shall not serve simultaneously on more than one Council-appointed Board or Commission'

RESIDENCE PHONE EUSINESS PHONE
EMAIL
HOW LONG HAVE YOU LIVED IN CARMEL.BY.THE.SEA? cAr t
Board or Commission Selection:

Will you be available to attend board/commission meetings r€gularly? -
Revised July 16.2019 -
Community Actavaties & Cuttural Commassion (rn..ts thc sc@d Tucs.!ry otth' irldlh at 9:3o a m ) Harrison Memorial Library Board of Trustees (m.olsthc lounh w.clnosd.y otlha mcnth at 9:oo t'm') Planning Commission (meGts the second w€dnesd.v d lhe month at 4:oo p.m . tour ol lnsp€ctidl 6t 2:@ p m ) Forest & Beach commission (rEeis rh. s.cc.rd Thurs.tly €, th. mqith .! 3:30 p m.. tqrr of hsPc.lron at 3 p m ) Historic Resources Board (mccE rhc lhird rvrqr.iry olth. mqrth at 4:oo p m.. tdrr ot in3p.'ctio.! .t 3115 p.m.) Board of Appeals (qlc. annutllyand a tn at_n.cdld ta9s) APPLICATTON TO SERVE ON A CARMEL-BY.THE.SEA CITY

BOARD OR COMMISSION
NAME
o
1 X
d
Attachment 2
All members of boards and commissions are subject to the Conflicl of lnterest Laws oI the State of California and are required to submit Form 700, "Statement of Economic lnlerest," within 30 days of assuming otfice. Fom 700 must be filed annually thereafter, and within 30 days of leaving oflice as well. tn accordance with Assembly Bill (AB) 1234 appointed mernbers are required to auend Public Service Ethics Education upon appointment and every two years lhereafter.

Do you agree to flle all required statements in a timely manner as prescribed by law or the City's Conflict of lnterest Code? YE N
Reason for lnterest in the Position
M wiI. {n a- sr8 aar t
itI
LV.^lt ft cnu
)

11. Y l,olO
a/\ tl.
vr L"N
Please lisl any relevant qualifications or experience you possess that would enhance the mission and goals of the board(s) or commission(s) for which you are applying 7 att,rlJ ta )At lh rr. c t tld r," lwn .lt
)t
05 I
id tot |,/l ut) .r, 5
Tn lrrrt all ni ae/ E dtt
.7 Tb
feslacrf nd
o*
please list any local area associations, boards, commissions, foundations, or companies in which you have an inveslmenl, or serve as an officer or director:

La-) r
I
rd
lnstitution Course ol Stud Oegree Year s
)
irA ol,
Dvt<. 6h zo08
Revised July 16.2019
Education:
l'4gA
Attachment 2
3ltllzotq
Signature Date
Citizen knowledge, interest and participation are vital ingredients to the delivery of high-quality public services. The richness that comes from citizens serving in advisory roles to the City Council contributes to making Carmel by the Sea the special place it is. The City of Carmel-by-the Sea thanks you for your interest in serving on a City board or commission.

Return application to the City Clerk's Ofiice, East side ot Monte Verde Street, between Ocean and Seventh Avenues or mail to PO Bor CC, Carmel-by-the-Sea, 93921, attention: City Clerk's Office.

Organization: Parra r..r i,r Opgrrr^11
Position Year:

Organization: 11. 4ro F"^t
Position: H*,t f1.,nb Year 2ol( - C,'rr
flcCor ao,v Etoa Sat,t,r Organization
Position: A$ .51. hour Year: zots - Zot (
th. Bi Sv, L..d Tirtr
1 Position: Boa A"Ju(. Year 2O2O - P t.r<^P o'n"1*' ,--j:7 6""y 1)ortt1 Av*,t'1 Eg9ltlSfl. C!,ryv'r.r:rca.r Year: 2b7o - 1,tt -t
Organization
Position Year
Revised July 16, 2019
Emolovment Experience (Start with Most Recent):

Prior public service. civic or volunteer activities:

Organization:

Attachment 2
City of Carmet-By_Thesea
MAR 29 2024
Office ot the City Clerk
APPLICATION TO SERVE ON A CARMEL.BY.THE.SEA CITY

BOARD OR COMMISSION
ln accordance wilh the Public Records Act, submitted applications and attachmenls are considered public records and will be disclosed upon receipt of a public records request. Applicalions may also be published (with signatures and personal contact information redacted) in the agendas of relevant meetings of the City Council, boards and commissions.

MelAhlborn 27 March 2024

NAME DATE
Carmel 93921 RESIDENCE ADORESS CITY zlP
EMAIL
HOW LONG HAVE YOU LIVED IN CARMEL.BY.THE.SEA?
Board or Comm ssion Selection:

Will you be available toattend board/commission meetings regularly? Revised JUV 1 6, 2019
Community Activities & Cultural Commission (meets the seco.rd Tuesday of the monih at 9r3o a.m ) Harrison Memorial Libra ry Board of Trustees (meets the fourth wednesday of th e mdth al 9:oo a. m.) Planning Commission (mcers the second wedn.sday or th. month at 4:00 p.m . tour or inspecti6 ai 2:0o p.m.) Foresl & Beach Commission (rneels the secdd Thursday ofthe month at 3:30 p.m.. lour ot inspection at 3 p.m.) Historio Resources Board (meets the third M6day ol the moth at 4:OO p.m., toJr of inspection at 3:15 p.m.) X Board of ApPeals (6ce annually and cri en as-needed basis) I
I
I
I
Yes
o
MAILING ADDRESS g|1y Carmel Zlp 93521
RESIDENCE PHONE .4457 BUSINESS PHONE
7+ years
You may apply for more than one Board or Commission. Please note, however, that members shall not serve simultaneously on more than one Council-appointed Board or Commission.

Attachment 2
All members of boards and commissions are subiect to the Conflict of lnterest Laws of the State of Califomia and are required to submit Form 700, 'Statement of Economic lnlerest," within 30 days of assuming office. Form 700 must be flled annually thereafter, and within 30 days of leaving office as well. ln accordance with Assembly Bill(AB) 1234 appointed members are required to attend Public SeMce Ethics Education upon appoinlment and every two years thereatter.

Do you agree to flle all required statements in a timely manner as prescribed by law or the City's Conflict of lnterest Code? YE
of lhe board(s) or commission(s) for which you are applying:

Please list any local area associations, boards, commissions, foundations, or companies in which you have an investment, or serve as an officer or director:

Illumtnauon i'luoro, An liervtces, Mtsston and 4th untt 6 - I am tne owner lnstitution Course of Stu D Year s
time to serve Carmel in this area. I was first introduced to the City of Carmel in continuing its own well-established program of historic resource preservation Carmel owes much of its un ralleled to the fores ht and dedication of reserve its historic resources. I offer to volunteer
historic reservation as a owner in the C of Los An les. The C of Los eles rovides annin and buildi de
rties are collaborative artnershi between the and the ro exce ent resources for owners so that renovations to historic owner. I am interested in assistin
My experience with historic preservation is modest: student of historic buildings - primarilv Gothic. Bvzantine and Romanesque ecclesiastical structures; museum-level experl in historic methods of manuscript rimaril medieval and A axon
CONSU nt to clients resident in a Bertram Goodhue Roma
property tn
an
illumination; coursework in archeol and arche ical sciences, ue church in Manhattan: owner and renovator
es (built 1922); owner and renovator of several ate homes; lover of Carmel me rest ere
Tufts Chornictnr anrl Claceinc 1980
Universitv of Bradford. UK Archeoloqv 1979
Revised July '16.20'19
Reason for lnterest in the Position:

Education:

Attachment 2
Organization: lllumination Studio, Art Services, Mission and 4th Unit 6 - I am the owner Position Year:

Organization
Year
Organization
Position r- YeeI,
organization:Carmel Cares - Volunteer landscape crew around town, graphic design services - CURRE T Position
27 Mat2024
Oate
T
Citizen knowledge, interest and participation are vital ingredients to the delivery of high-quality public services. The richness that comes from citizens serving in advisory Toles lo the City Council contributes to making Carmel by the Sea the special place it is. The City of Carmel-by-the Sea thanks you for your interest in serving on a City board or commission.

Return application to the City Clerk's Office, East side of Monte Verde Street, between Ocean and Sevenlh Avenues or mail to PO Bor CC, Carmel-by-the'Sea, 93921, attention: City Clerk's of ice' Yeat
organization: Carmelite Monastery, Route 1, Carmel, Ca - I am the webmaster r the sisters - CURR Position Year.
organization: Episcopal church & Visual Arts - I have served this org since 2000 - CURRENT Position Year
Revised Jut 16.2019
Emplovment Exoerience (Starl with Most Recent):

Posilion:

Prior oublic service. civic or volunteer activities:

Signature
Attachment 2
Cltyof fune-ey-Th€€ea
ilAR 2 0 2024
Orfice ot the C,ty Ct€ft
APPLICATION TO SERVE ON A CARMEL.BY.THE.SEA CITY

BOARD OR COMMISSION
ln accordance with the Public Records Act. submitted applications and atlachmenls are considered public records and will b€ disclosed upon receipl of a public records request. Applications may also be published (with signatures and personal contact informalion redacted) in the agendas of relevant meetings of the City Council, boards and commissions.
14gg Mollie Westphal DATE 3t28t2024
RESIDENCE ADDRESS 511y Carmel by the Sea 21p 93923
611y Oakland MAILING ADDRESS 71p94612

RESIDENCE PHONE BUSINESS PHONE
EMAIL
HOW LONG HAVE YOU LIVED IN CARMEL.BY.THE-SEA? Property Owner 20 + years Board or Commission Selection:

You may apply for more than one Board or commission. Please note, however, that members shall not serve simultaneously on more lhan one Council'aPPoinled Board or Commission.

Community ActivitieS & Cultural Commission (mc.tslhc aoc..td Tu6d.v otthc m@th .t 9 30 a.m ) Harrison Memorial Libaary Board of Trustees (ru.ti th.loutlh wcdn6d.v orthc mmth al 9:00 ' m ) Plannrng Commission (m..ts lh. .ocdd w.ch.!d.v ol th. monlh .t a:oo p.m. to!. ol in.p.ctl.'r !l2:oo p'm ) X Forest & Beach commission (mat!lhc rlco.d Thlrsdly ofthcmo.rth !t3:3op m. tdrofinrpcclion rl 3pm) Historio Resources Board (mcctt lhc lhkd Mdd.v orth. mnth .t 4:oo p m.. ldrr or InsPccuon !l 3:15 p'm') Board of Appeals (dce .nnu.lly and dr .n .+n..d.d b..ts) lro
will you be available to altend board,lcommission meetings regularlV? YES R.Yi!.d July 16. 20tg -
Attachment 2
All members of boards and commissions are subject to the Conflict of lnterest Laws of the Slate of Calirornia and are required to submit Form 700,'Statement of Economic lnterest," within 30 days of assuming ofrice. Form 700 must be filed annually therealter, and within 30 days of leaving oflice as well. ln accordance with Assembly Bill (AB) '1234 appointed members are required to attend Public Service Ethics Education upon appoinlment and every two years thereafter.

Oo you agree to file all req uired statements in a timely manner as prescribed by law or the City's Conflict of lnterest Code? YE N
Reason for lnteresl in the Position:

I have an interest in this position because lwould like to have influence and impact on the City. lwould like the ooDortunitv to helo shaoe the future of Carmel bv the Sea and have an imDact on oroMh ltik f bein ed
on the decision makinq orocesses
Please list any relevant qualifacations or experience you possess that would enhance the mission and goals of the board(s) or commission(s) for which you are applying:

I have had 30 vears of experielqe in real estate. olulinq homes in Carmel for over 20 vears. and havino comolet e
ed
the Planninq Commission. Mv extensive knowledoe of al estate and the understandino of the local market shio in Carmel has heloed me sec end opt e hatter llnd tandino of the commrnifv's nce.lc ,n.l nrclarcnno< I want to uohold the duties and auth oritv of the commiss ion to be sure to oreserve the mission lhat has hrpn <ct for our Citv to keeo it the beautiful olace that it is
th
T er Board The OBA'S mission is to mote rtnersh i with the C of Oakland o ce its h rS
for community safety, housing and thriving local businesses Education:

Both have taught me quite a bit
s
lnstitution Course of Study Degree Year {s)
Harvard Sah.).)l of Blrsiness Owner l\ranaoement Prooram 2022 Harvard GradLrate School of Desion Advanced Manaoemcni Proorrm Rarl Fstito 2019 University of San Francisco Sociology BA 1934
Revised July 16.2019
Please list any local area associations, boards, commissions, foundations, or companies in which you have an investmenl, or serve as an officer or director:

I belonq to the Carmel Residents Association and the Carmel Women's Club- l'm not an officer in either hut I Attachment 2
Emolovment Experi ence (Start with Most Recent):

Organizalion:

Monarq, lnc. 1624 Franklin Street Suite 615 Oakland, CA 94612 Position: CEO & President Year: 2019-Present
Organization:

Balco Prooerties 1624 Franklin Street Suite '11'15 Oakland eAl46l2 Year; 1998 - 2019
Organization
Position Year
Organization:

Neighbors Together Oakland CA
Position: Board Member Year: 2019 Present
Organization:

Oakland Boys and Grig CIUO
Position: Member Year 2A16 - 2017
Organization Tackling the Odds Oakland CA
Positron: Board Member Year: 2012 -2014
igna ture Date
Zl
citizen knowledge, interest and participation are vital ingredients to the delivery of high-quality public services. The richness that comes from citizens serving in advisory roles to the City Council contributes to making carmel by the sea the special place it is. The city of carmel-by-the sea thanks you for your interest in serving on a City board or commission.

Return application to the City Clerk's OIfice, East side of Monte Verde Street, between Ocean and Seventh Avenues or mail to PO Box CC, Carmel-by-the-Sea, 93921, attention: City Clerk's Office Revised July 16,201e
Prior public service. civic or volunteer activities:

Position:

Attachment 2

CITY OF CARMEL-BY-THE-SEA

CITY COUNCIL
Staff Report
May 7, 2024

ORDERS OF BUSINESS
TO: Honorable Mayor and City Council Members
SUBMITTED BY: Nova Romero, City Clerk
APPROVED BY: Chip Rerig, City Administrator
SUBJECT:

Transient Occupancy Tax (TOT) Ballot Measure Discussion and Request for Direction
RECOMMENDATION:

It is recommended that the City Council discuss and provide direction to staff on the preparation of a ballot measure to put before the voters at the November 2024 General Election amending the City’s Transient Occupancy Tax rate.

BACKGROUND/SUMMARY:

On October 3, 2023, the City Council reviewed and updated its list of priorities, adding a new item “Transient Occupancy Tax (TOT) Increase - Explore adding to the Nov. 2024 ballot". This priority was elevated to "high priority" during the Strategic Priorities Workshop in March 2024. With the deadline to add a ballot measure to the November 5, 2024 election fast approaching, the purpose of this agenda item is to outline the possible timeline and actions required for placing a TOT measure on the November 5, 2024, ballot.

Executive Summary
The Transient Occupancy Tax (“TOT”) also known as a “hotel tax” or a “bed tax”, is authorized under State Revenue and Taxation Code section 7280, as an additional source of non-property tax revenue to local government. This tax applies to persons staying 30 days or less in hotels, motels, inns, or similar accommodations, with the tax on the customer’s rent payment for a room rather than the lodging establishment itself. Taxes collected are remitted by all approved lodging operators within the City.

The City of Carmel-by-the-Sea has a current TOT rate of 10% which contributes to the General Fund revenue. The TOT generates approximately $6.5 million annually for the City, and accounts for approximately 22% of its revenue sources.

Since 1998, the City has not raised its TOT above 10%, making it lower than most other cities of similar size in Monterey County (see table below).

City/County TOT Rate
Gonzalez 8%
Greenfield 8%
Carmel-by-the-Sea 10%
Del Rey Oaks 10%
King City 10%
Salinas 10%
Monterey County 10.5%
Monterey 12%
Seaside 12%
Soledad 12%
Pacific Grove 12%
Marina 14%
Taxes, Voter Approval, and Legal Parameters
A tax is a monetary imposition by a government on persons or property to generate revenue for governmental purposes. Unlike assessments or fees, a tax does not need to be levied in proportion to a specific benefit to a person or property. California general law cities (such as Carmel-by-the-Sea) receive their authority to tax from state law. State law sets certain limits and procedures and may exempt certain activities from taxes levied by general law cities.

The passage of Proposition 13 in 1978 created a distinction between “general” and “special” taxes.

Proposition 218, in 1996, further defined and established procedures for general taxes.

General Tax:

A general tax is a tax imposed for general governmental purposes, the proceeds of which are deposited into the General Fund.

A majority vote of the electorate (those voting on the measure) is required to impose, extend or increase any general tax.

Elections for general taxes must coincide with regularly scheduled general election of city council members.

Special Tax:

A special tax is a tax that is collected and earmarked for a specific purpose and deposited either into a separate account or the General Fund.

A two-thirds vote of the electorate is required to impose, extend or increase any special tax.

Elections for special taxes may be placed on the ballot of any election, including oddnumbered years.

In summary, a TOT general tax amendment must align with a general municipal election which only occurs in November of even numbered years and requires a majority vote to pass.

A TOT special tax amendment does not need to align with a general election, and can be added to a special election in an odd numbered year. However, it requires a two-thirds majority vote to pass.

Required Actions and Timeline for a TOT Ballot Measure
Time is of the essence in completing the necessary steps to include a tax ballot measure on the November 5, 2024 ballot. The City already consolidates its general municipal election with the Monterey County Elections Department in even numbered years, and the County sets deadlines for certain actions based on the California Election Code.

In adherence to the Monterey County Elections Department’s schedule and the CA Elections Code, the City must adopt a Resolution by July 1
st
, calling for a general municipal election on November 5, 2024, and requesting consolidation with the county. These resolutions are scheduled for adoption during the June 4 th
Regular City Council Meeting and will be forwarded to the County before the July 1 st deadline.

Per California Elections Code Section 9222, the City Council “may submit to the voters, without a petition therefor, a proposition for the repeal, amendment, or enactment of any ordinance, to be voted upon at any succeeding regular or special city election, and if the proposition submitted receives a majority of the votes cast on it at the election, the ordinance shall be repealed, amended, or enacted accordingly. A proposition may be submitted, or a special election may be called for the purpose of voting on a proposition, by ordinance or resolution. The election shall be held not less than 88 days after the date of the order of election.”
In speaking with the County Elections Department, it was emphasized that if the Council intends to include a ballot measure in this year's election, a resolution calling for it must be adopted by August 9, 2024, 88 days prior to the election. However, considering the County's deadlines for their Board of Supervisors agenda in August, the County advises adopting the resolution no later than the July 9th to ensure timely processing by the County.

Various considerations surround the timing and voting requirements for both general and special taxes.

Below are 3 potential timeline options for Council to consider.

Option # 1 - November 5, 2024 Election:

Timeline:

June 4, 2024 – Adopt a Resolution calling for the election (Mayor, Councilmembers, and ballot measure), and adopt a Resolution requesting consolidation with the County. Note: The resolution calling for the election and requesting consolidation with the County must be adopted by July 1, 2024, according to the County’s deadlines.

July 9, 2024 – Last opportunity to adopt a Resolution calling for the inclusion of a ballot measure to be submitted to the voters.

June – October, 2024 – Staff to conduct voter outreach and notify stakeholders (hotel owners). Note:
consider staff capacity, and short public outreach timeframe.

August 10-15, 2024 – Period to file primary arguments for or against measure.

August 15, 2024 – Deadline for City Attorney to file Impartial Analysis with City Clerk.

August 14, 2024 – Last day for local jurisdiction to withdraw ballot measure.

August 16-22, 2024 – Period to file rebuttal arguments.

November 5, 2024 – Election day.

Advantages of the November 2024 election timeline:

Increased voter turnout during presidential election years.

Potential elevation in TOT revenue, if measure passes.

Cost savings of adding a ballot measure into a pre-scheduled election.

Drawbacks of the November 2024 election timeline:

Limited timeframe for staff to engage in voter outreach and education.

Limited timeframe to gather input from stakeholders, such as hotel owners.

Not enough time to consider hiring a consultant to assist with voter outreach.

Option # 2 – Special Election in 2025 (option is only available for a special tax) If the Council opts to propose a TOT increase designated for a special purpose, they could consider scheduling a special election in an odd-numbered year instead of incorporating it into this year's election.

Advantages of a Special Election in 2025:

More time for voter outreach and education.

More time for soliciting feedback from stakeholders.

More time to explore hiring a consultant for public outreach or feasibility studies.

Disadvantages of a Special Election in 2025:

Mandates the tax to be a special tax if in an odd year.

Requires a higher threshold of voter approval (2/3 of votes) for passage.

Potentially lower overall voter turnout due to being held in an odd-numbered year.

Extra costs for the City to conduct a special election during an odd year.

Option #3 – Plan ahead for November 2026 Election:

Timeline:

Early 2025 (January - March) – Consider various options for a ballot measure, whether it is a special tax or general tax, and whether to explore using a consultant with expertise in conducting voter outreach.

Mid to late 2025 – Select a consultant, if desired, and begin voter outreach process.

June 2026 – Call for an election with a ballot measure for November 3, 2026.

June – October 2026 – Continued public outreach.

November 3, 2026 – Election day.

Advantages of the November 2026 election timeline:

Increased voter turnout during a general election year.

Cost savings of adding a ballot measure into a pre-scheduled election.

More time to explore hiring a consultant for public outreach or feasibility studies.

Extended timeframe for comprehensive public outreach and gathering input from stakeholders.

Disadvantages of the November 2026 election timeline:

Distant prospect, with the election two years away.

Risk of foregoing potential revenue in the interim.

Recommendation
Staff recommends that Council deliberate and provide guidance on the following matters:
1) Does the Council intend to propose a ballot measure to increase the City’s TOT from 10% to X%
If so, specify the amount of the TOT increase (e.g. 2% increase, etc.) 2) Does Council intend for the increase in TOT to serve a general purpose or a special purpose?
A general purpose tax requires a majority vote of the electorate (50% + 1 vote), and can only coincide with an election in an even-numbered year.

A special purpose tax requires a two-thirds majority vote of the electorate and can be conducted as a stand-alone special election during an odd-numbered year. 3) Does the Council want to consider adopting a Resolution by July 9, 2024, to include a TOT increase ballot measure on the November 5, 2024 election? This action can be done in June, pending direction from Council; however, July 9 th
is the latest
date to adopt this resolution.

If not, does council wish to pursue another timeline/direction? FISCAL IMPACT:

No fiscal impact for this discussion.

PRIOR CITY COUNCIL ACTION:

On October 3, 2023, City Council reviewed and updated its list of priorities, adding a new item “Transient Occupancy Tax (TOT) Increase - Explore adding to the Nov. 2024 ballot".

On March 28, 2024, during the Strategic Priorities Workshop, City Council elevated Exploring a TOT increase to "high priority".

ATTACHMENTS:

CITY OF CARMEL-BY-THE-SEA

CITY COUNCIL
Staff Report
May 7, 2024

ORDERS OF BUSINESS
TO: Honorable Mayor and City Council Members
SUBMITTED BY: Marnie R. Waffle, AICP, Principal Planner APPROVED BY: Chip Rerig, City Administrator
SUBJECT:

Discussion/Direction on housing outreach to identify alternatives to the city-owned sites for the construction of affordable housing.

RECOMMENDATION:

Receive the report and provide direction.

BACKGROUND/SUMMARY:

At the April 8, 2024, special meeting of the City Council, the Council heard from concerned residents about the potential for affordable housing to be constructed on city-owned parking lots at Sunset Center and Vista Lobos. The concerns expressed included placing large-scale apartment buildings on city sites inconsistent with the village's small-scale character and concentrating affordable housing in these locations. In response to the concerns heard, a motion was passed to place an item on the May 7 th agenda to discuss finding
alternative sites for affordable housing throughout the Village that could facilitate removing the city-owned sites from the Housing Element through an amendment.

More specifically, Councilmember Dramov proposed directing staff to make a good-faith effort over the next year to conduct outreach to downtown business owners and church representatives to find out if they are interested in building affordable housing with the ultimate goal of removing the city-owned parking lot sites at Sunset Center and Vista Lobos from the Housing Element sites inventory list through an amendment to the Housing Element.

To aid in this discussion, staff is providing information on how the city-owned sites were selected and the outreach conducted to commercial property owners and churches during the development of the Housing Element in 2023 and 2024.
2023-2031 Regional Housing Needs Allocation (RHNA)
For the 2023-2031 Housing Element update, the City of Carmel is planning for 349 new housing units, of which 231 must be affordable to very low, low, and moderate-income households. The remaining 118 units are market-rate units.

The adopted Housing Element identifies three city-owned parking lots, Sunset Center North, Sunset Center South, and Vista Lobos, to accommodate 149 of the 231 affordable housing units (65% of the total need).

Accessory Dwelling Units (ADUs) and hospitality employee housing would achieve the remaining affordable housing units (refer to Attachment 1).

State law sets forth the criteria for identifying potential housing sites and calculating the number of housing units that can reasonably be accommodated on a site. Small parcels typically cannot support the number of housing units necessary to make affordable housing financially feasible for developers. In other words, small sites typically do not “pencil out.” The State defines a “small parcel” as less than 0.5 acres or 26,730 square feet. Most commercial sites in Carmel are less than 0.5 acres.

Additionally, the City’s Zoning Code limits the size of building sites in the three commercial districts (refer to Table 1 below). The RC District is the only District that allows lot sizes exceeding 0.5 acres. In the CC and SC Districts, sites could be consolidated to achieve a lot size that could accommodate affordable housing so long as the land area is broken up into two or more distinctly different developments to avoid the appearance of a single large project and to maintain the small scale and village character of the City.

Table 1. Maximum Building Site Area
Central Commercial (CC) District 8,000 square feet 0.18 acres Service Commercial (SC) District 12,000 square feet 0.27 acres Residential & Limited Commercial (RC)
District
32,000 square feet 0.73 acres
For these reasons, it was difficult to identify properties in the three commercial districts that would meet the State’s requirements for affordable housing. As discussed at many of the public meetings, the State’s review of Housing Elements in this 6
th Cycle leans heavily on the “viability” of a site to produce affordable housing during the planning period (2023-2031). Said differently, if the State does not believe that a proposed site has a realistic chance of having affordable units built, they will not certify a Housing Element that relies on that site. It’s important to note that if the city-owned sites are not replaced with sites that meet HCD’s criteria for affordable housing, the city risks housing element decertification. Failure to make progress on the programs outlined in the housing element also puts the city at risk of decertification or other penalties.
2023-2031 Sites Inventory
Identifying potential housing sites for the 2023-2031 Housing Element update began with a feasibility study undertaken by ECONorthwest. In their report, dated January 27, 2023, they identified 16 potential housing sites (Attachment 2). City staff contacted the property owners of the sites identified, provided a copy of the report, and extended an invitation to attend the February 7 th City Council meeting, and February 28th
community meeting. At least two property owners attended the February 7 th meeting. At the February 28th
meeting, no property owners expressed interest in developing housing.

The primary outreach tools utilized through the housing element update process included a dedicated project website (www.homecarmelbythesea.com), the City’s official website (www.ci.carmel.ca.us), Constant Contact listserv, Pine Cone notices, and the City Administrator’s Friday Letter. In addition to the February communication, City staff sent a direct letter through the USPS inviting 107 property owners to attend the May 24
th community meeting.

At the urging of HCD, City staff sent another letter in December 2023 to the 20 property owners whose sites were listed in the draft sites inventory table to obtain firm commitments to construct housing. Of the eight responses, three expressed interest in developing housing, and five expressed disinterest.

Early in the development of the Housing Element update, church sites were considered as potential housing opportunity sites. The First Church of Christ Scientist parking lots on Lincoln Street have been included in the adopted Housing Element. City staff has met with church representatives several times since 2017 regarding potential housing proposals. Based on this interest, staff included the parking lots in the sites inventory. Because the parking lot sites are less than 0.5 acres, no affordable housing has been designated on these parcels. This does not preclude the church from constructing affordable units; if such units are constructed, they would be counted towards the city’s RHNA obligation.

Carmel Presbyterian Church was also considered a potential housing opportunity site early in the Housing Element update process due to the size of its parking lot. However, the church did not express interest in constructing housing. Further, the site is located in the R-1 District, which would have required. As a result, the site was removed from the Housing Element. Staff notes that rezoning more recent state legislation may allow for redevelopment of church parking lots for affordable housing without the requirement to rezone.

All Saints Episcopal Church is also located in the R-1 District. It appears the church may have an approximately 2,000-square-foot parking lot. This site was not considered for inclusion in the Housing Element.

The Carmel Mission Basilica utilizes a parking area within public right-of-way fronting Rio Road. Other areas of the site may have development potential. Potential challenges may include impacts to the historic resource and disturbing an archaeologically sensitive area. Additionally, this site is located in the R-1 District. Due to the complexity of this site, it was not included in the Housing Element. However, as stated above, the church is not precluded from developing affordable housing, and any units constructed would be counted towards the city’s affordable housing obligation.

During the public comment period of the April 2
nd City Council meeting, information regarding church sites was presented, including a statement that 8 acres of church land is “unbuilt” and could satisfy the city’s affordable housing requirements. As evidenced in the discussion above, staff explored church sites early in the Housing Element update process, and none met the State’s criteria for affordable housing (refer to Attachment 3 for staff’s data on existing church sites).

To encourage the development of affordable housing downtown and on church sites, the city might consider offering grants or other financial assistance to offset the cost of renovating existing buildings or constructing new ones.

FISCAL IMPACT:

None.

PRIOR CITY COUNCIL ACTION:

On April 8, 2024, the City Council adopted Resolution 2024-029 approving a General Plan Amendment and adopting the 2023-2031 6
th cycle Housing Element update.

ATTACHMENTS:

Attachment 1 - Housing Element Table C-3 Sites Inventory Attachment 2 - ECONorthwest Report dated January 27, 2023 Attachment 3 - Church Site Data
Junipero St.

Mountain View Ave.

Ocean Ave.

Carpenter St.

San Carlos St.

Monte Verde St.

Guadalupe St.

Santa Rita St.

Santa Fe St.
1st Ave.
2nd Ave.
3rd Ave.
4th Ave.
5th Ave. Torres St.

Dolores St.

Lincoln St.

Camino Real
Casanova St.

Carmelo St.

San Antonio Ave.
6th Ave.
7th Ave.
9th Ave.
10th Ave.
11th Ave.
12th Ave.
13th Ave.

Santa Lucia Ave.

Sites Inventory
Carmel Housing & Safety Element Update
0 1050 feet
Figure &-1
Source: Monterey County GIS 2023, Google Earth 2023 Site Inventory Parcels City Limit
7 8
1 2
3 4 5
6 9
10 11
12 13 14
15 16
17 18
19 20
22 21
23 24
25 Attachment 1
Appendix C – Housing Sites Inventory Analysis C-5 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update Adopted April 8, 2024 Note: The following sites have been identified as potential housing sites. Site numbers are for identification purposes only and correspond to the map in Figure C-1. Site numbers have no bearing on priority. Table C-3 Housing Sites Inventory Site # Location (Reference to ECO NW Study) APN Zoning General Plan Acreage Applied Density (DU/AC) Minimum Capacity Very Low Low Moderate Above Moderate Primary Underutilized Sites
1 Sunset Center North Lot Site (#1),East Side of San Carlos between 8th & 10thAvenues 010143001000 A-2 OS/ Rec Cultural 1.02 33 33 20 10 3 -- 2 Sunset Center South Lot Site,East Side of San Carlos between 8th & 10thAvenues 010151001000 A-2 OS/ Rec Cultural 1.84 33 60 30 25 5 -- 3 City Public Works Site (Vista Lobos) (#3),W/S Torres between 3rd & 4th, andE/S Junipero between 3rd & 4th 010104001000
R-4 MFR 1.28 44 56 28 11 17 --
010104004000
4 Bruno's Market Site (#6)NE Corner of Junipero & 6th, andNW Corner of Torres & 6th 010095013000
RC RC 0.53 33 17 -- -- 5 12
010095012000
5 First Church of Christ Parking Lot (#8), Lincoln 2-4 NW of 6th 010212027000
SB 10 SB 10 0.28 33 9 -- -- -- 9 010212004000
010212026000
6 Red Cross Site (#10), SE Corner of Dolores & 8th 010144015000 SB 10 SB 10 0.18 33 5 -- -- -- 5 0101440160007 Girl Boy Girl, SW Corner of Mission & 7th (#14) 010142001000 SC CC 0.18 33 5 -- -- -- 58 Carmel Foundation Site (#15), NE Corner of Lincoln & 8th 010149012000
A-3 SFR 0.62 33 21 11 10 -- --
010149010000010149011000010149001000
9 American Legion Site, Dolores 2 SE 8th 010144014000 SB 10 SB 10 0.18 33 5 -- -- -- 5 Attachment 1
Appendix C – Housing Sites Inventory Analysis C-6 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update Adopted April 8, 2024 Site # Location (Reference to ECO NW Study) APN Zoning General Plan Acreage Applied Density (DU/AC) Minimum Capacity Very Low Low Moderate Above Moderate 10 AT&T Building SW Corner of Junipero & 7th 010087012000 RC RC 0.35 33 11 -- -- -- 1111 Forest Cottages Specific Plan, NE Corner of Ocean & Mountain View 010085004000 R-1 SFR 0.30 20 6 -- 2 -- 4 010085005000 010085003000 Subtotal Primary Underutilized Sites 6.78 228 89 58 30 51 Sites Recycled from 5th Cycle
12 Court of the Fountains NW Corner Mission & 7th 010141003000 CC CC 0.37 33 12 -- -- -- 1213 First American Title 7th 2 SW of Mission 010142013000 SC CC 0.07 33 2 -- -- -- 214 Office building NE Corner Monte Verde & 7th 010191004000 RC RC 0.07 33 2 -- -- -- 215 Yafa NW Corner Junipero & 5th 010097007000 SC CC 0.18 33 5 -- -- -- 516 Three Garages Site (#7) 010098004000 SC CC 0.11 33 3 -- -- -- 317 Carmel Realty Office Site (#4) NE Corner 8th & Delores 010145008000 RC RC 0.19 33 6 -- -- -- 618 (Parashis) Millard Building NW Corner Dolores & 6th 010138006000 CC CC 0.13 33 4 -- -- -- 419 The Agency NW Corner Ocean & Dolores 010139001000 CC CC 0.09 33 2 -- -- -- 220 Sunset Terrace NW Corner Mission & 8th 010142006000 RC RC 0.19 33 6 -- -- -- 621 Enzo's San Carlos 2 SW of Ocean 010146001000 CC CC 0.15 33 4 -- -- -- 422 Doud Arcade San Carlos 2 SW of Ocean 010146002000 CC CC 0.18 33 5 -- -- -- 523 Paseo San Carlos Square San Carlos 2 NW of 7th Ave 010146003000 CC CC 0.18 33 5 -- -- -- 5 Attachment 1
Appendix C – Housing Sites Inventory Analysis C-7 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update Adopted April 8, 2024 Site # Location (Reference to ECO NW Study) APN Zoning General Plan Acreage Applied Density (DU/AC) Minimum Capacity Very Low Low Moderate Above Moderate 24 Paseo San Carlos Square San Carlos 2 NW of 7th Ave 010146004000 CC CC 0.09 33 2 -- -- -- 225 Carmel Office Supply & Business Center Lincoln SE of Ocean 010147010000 CC CC 0.09 33 2 -- -- -- 2 Subtotal Recycled Sites 2.09 60 0 0 0 60
TOTAL 288 89 58 30 111Hospitality Employee Housing 31 8 12 11 0Anticipated ADUs 34 10 10 10 4Pipeline Projects (including 26 ADUs; see Table C-4) 57 7 7 7 36 Subtotal Other 122 25 29 28 40
GRAND TOTAL 410 114 87 58 151RHNA 349 113 74 44 118Difference 61 1 13 14 33Difference (Percent) 117% 101% 118% 132% 128% SOURCE: City of Carmel-by-the-Sea
Attachment 1
ECONorthwest | Portland | Seattle | Los Angeles | Eugene | Bend | Boise | econw.com 1 DATE: January 27, 2023
TO: Brandon Swanson, City of Carmel-by-the-Sea
FROM: Chris Blakney, ECONorthwest
SUBJECT: Housing Element Analysis for the City of Carmel-by-the-Sea Introduction
In the State of California, local jurisdictions maintain a General Plan that serves as a blueprint for its long-term vision. Among the required “elements” of a general plan is the Housing Element. The Housing Element is the only element that state law requires be updated on a periodic cycle. The California Department of Housing and Community Development (HCD) is responsible for overseeing Housing Element updates. Every eight years, HCD allocates a share of projected statewide housing need to regions across the state. This is called the Regional Housing Need Allocation (RHNA). The state is currently in the sixth of these cycles. The sixth cycle will cover the June 30, 2023 to December 15, 2031 planning period for the City of Carmelby-the-Sea [Carmel].

The City is a part of the Association of Monterey Bay Area Governments (AMBAG). AMBAG is responsible for developing a methodology for allocating its regional share of housing need to its individual jurisdictions. The Final Sixth Cycle (2023-2031) Regional Housing Needs Allocation plan, completed in October 2022, determined that Carmel’s share of regional housing need is 349 units; 187 of these units must be suitable to accommodate lower income households. It is important to note that RHNA targets reflect zoned capacity, not a construction quota.

Figure 1: Regional Housing Needs Allocation, Fifth and Sixth Cycle Source: California Department of Housing and Community Development1 Cycle Income Level Total
Very Low Low Moderate Above Mod.

RHNA5 (2015-2023) 11 5 6 13 31
RHNA6 (2023-2031) 113 74 44 118 349
Sixth Cycle Income and Rent Ranges (County of Monterey) Income Levels $0 -
$45,050
$45,050 -
$72,080
$72,080 -
$108,120 $108,120 +
Rent Level/mo $0 -
$1,126
$1,126 -
$1,802
$1,802 -
$2,703 $2,703 +
While the City satisfied its Fifth Cycle RHNA planning target and received a certification for the 2015-2023 planning period, the market did not produce all 31 planned units. This underscores a considerable hurdle for the City in the Sixth Cycle which represents a 1,000% increase in its housing target for the cycle. This capacity is particularly challenging because Carmel does not have a deep supply of vacant land and presently lacks water resources to accommodate significant growth. This is further complicated by a parcelization pattern that includes many 1 https://www.hcd.ca.gov/docs/grants-and-funding/inc2k22.pdf Attachment 2
ECONorthwest 2
small taxlots and market conditions that support high values for existing structures, making redevelopment improbable.

Executive Summary
As City officials begin to prepare for the Housing Element Update, they want to better understand some of the challenges to development and opportunities for adding housing capacity. This analysis summarizes our work exploring market conditions, observations in the City’s zoning code, and sites/locations that are most likely to have development potential.

While this report does not constitute a site alternatives analysis suitable for the City’s Housing Element Update, it may provide insights into the development challenges, opportunities, and candidate sites for meeting the City’s RHNA obligation in the Sixth Cycle.

Although renovation and replacement construction is common in Carmel, the City has had very limited net-new residential development during the Fifth Cycle (2015-2023) RHNA planning period2. This has been in part a function of barriers in the current zoning code, access to water rights, market conditions, and the existing development pattern in the City’s commercial core.

In this work, we have found that existing development standards, such as a two-story heigh limit, effectively prohibit achieving maximum allowed residential densities. Another challenge is a parcelization pattern of smaller lots with existing moderate scale commercial development with well-performing tenants. Despite these challenges, our analysis identified 17 sites in or adjacent to the commercial core that could be viable candidates for redevelopment or densification. To be sure, for development to occur on these sites—specifically development serving lower income households—the City will need to take action to remove barriers and identify resources to support financial feasibility. Actions recommended for consideration include financial subsidies, disposition of City-owned land, targeted rezoning of specific sites adjacent to the existing commercial zones, and amendments to development standards to remove development constraints.

Local Context
Carmel-by-the-Sea is a small coastal community located on the Monterey Peninsula.

Incorporated in 1916, the City is among the most affluent communities in California. The City has a strong residential character and a centralized business district. Carmel’s architecture in its business district has a distinct character, having been built out during the 1920s and 1930s. Over 45 properties in the commercial district are considered historical resources.

Carmel is also a popular coastal tourism and second home destination. There are over three dozen hotels in Carmel and roughly 40 percent of all housing units are for seasonal, recreational, or occasional use—a rate ten times the national average. 3 This dynamic has created
a housing market that severely lacks affordability. Forty-seven percent of all households that 2 According to Carmel’s most recent Annual Progress Report to HCD. 3 U.S. Census Bureau. American Community Survey 5-Year Estimates (2016-2020); Table B2004. (See https://data.census.gov/)
Attachment 2
ECONorthwest 3
rent (vs. own) their homes in Carmel are cost burdened, spending greater than 20 percent of their income on housing. Among these, a full 25 percent of renter households are severely cost burdened, spending 50 percent or more of their income on housing. 2,102 individuals work in Carmel, of whom only 2.6 percent live in Carmel.4
4 U.S. Census Bureau Longitudinal Employer-Household Dynamics Data (See https://lehd.ces.census.gov/) Attachment 2
ECONorthwest 4
Figure 2: Carmel-by-the-Sea Zoning Map on Original Plat Source: City of Carmel-by-the-Sea (see https://planningsites.org/CarmelPlanning/) 8TH AVE
7TH AVE

VISTA AVE

ALTA AVE
1ST AVE
2ND AVE
3RD AVE
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6TH AVE
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10TH AVE
11TH AVE
12TH AVE
13TH AVE
1ST AVE
2ND AVE
3RD AVE
4TH AVE
5TH AVE
6TH AVE

LOBOS ST

CARPENTER ST

GUADALUPE ST

SANTA RITA ST

SANTA FE ST

TORRES ST

JUNIPERO AVE

MISSION ST

SAN CARLOS ST

DOLORES ST

LINCOLN ST

MONTE VERDE ST

PINE RIDGE WAY

VISCAINO

CRESPI AVE

FLANDERS WAY

NORTH CARMELO AVE

NORTH CAMINO REAL

LOPEZ AVE

PALOU AVE
2ND AVE

VALLEY WAY

MONTEREY ST

LORCA LANE

PERRY NEWBERRY WAY STERLING WAY

ESCOLLE WAY

FOREST ROAD OAKNOLL WAY
7TH AVE

OCEAN AVE

MOUNTAIN VIEW AVENUE

TORRES ST

JUNIPERO AVE

MISSON ST

SAN CARLOS ST

DOLORES ST

LINCOLN ST

MONTE VERDE ST

TRAIL VIEW
ACACIA

CASANOVA ST

CAMINO REAL

CARMELO ST

SAN ANTONIO AVE

FRASER WAY

SANTALUC AI AVE

FRANC SI CAN WAY

LASUEN DR

LADERA DRIVE

RIDGEWOOD ROAD

RIO ROAD

OCEAN AVE

DEL MAR AVE
4TH AVE

CARMEL WAY
11TH AVE

SCENIC ROAD

NORTH CASANOVA ST

NORTH SAN ANTONIO AVE

CAMI N O DEL MONTE AVE
WAY

SUNSET CENTER
FOREST

THEATER

FOREST HILL PARK

FOREST HILL PARK
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5 9
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8 3
1 5
1 7
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1 7
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1 4
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1 3
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6 4
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7 1
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3 5
3 6
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3 8
5 7
3 8
6 2
7 8
9 5
7 4
7 5
2 6
8 4
8 3
6 6
9 3
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7 9
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9 9
2 5
4 6
5 6
8 1
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17 2
7 11
5 7
3 7
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8 4
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1 1
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3 30
7 6
7 1
1 6
9 4
4 5
7 7
1 7
2 4
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1 9
7 4
7 3
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8 9
4 2
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4 2
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3 1
8 6
8 2
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3 7
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6 9
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8 6
6 6
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7 9
9 7
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12 2
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5 7
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7 2
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9 9
6 7
9 7
19 3
9 4
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6 8
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9 2
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1 4
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3 7 3
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1 6
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3 3
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4 6
2 8
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4 8
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8 2
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4 6
7 4
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8 9
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4 3
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6 5
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2 6
9 6
9 7
2 9
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9 8
6 3
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6 8
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5 5
4 2
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5 8
3 3
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9 3
5 7
5 4
3 5
3 6
8 8
8 6
4 5
8 6
4 9
8 3
2 8
3 6
5 8
6 6
2 7
5 7
3 4
3 5
8 4
6 8
4 8
7 3
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8 4
2 6
5 7
8 6
6 4
4 9
9 8
4 4
4 5
6 8
6 4
5 6
4 4
1 3
4 3
7 6
7 8
7 6
3 8
5 7
13 5
6 8
4 8
3 7
4 2
4 1 9
19 2
5 6
6 8
4 3
5 4
4 8
6 5
8 4
4 9
5 9
6 8
2 9
4 2
7 8
6 6
18 6
8 7
7 2
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7 4
8 5
6 7
6 1
3 36
8 4
4 14
10 6
6 8
9 8
13 20
10 28
32 8
4 15 34
4 6
1 1
2 9
14 31
11 2
13 1
20 7
11 22
11 14
1 1
9 8
18 24
11 15
12 10
1 34
9 12
21 13
18 17
10 13
5 1
24 9
1 12
10 11
10 16
13 14
11 33
12 34
19 13
1 31
12 11
15 1
1 20
1 11
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2 10
6 26
16 11
1 10
6 6
4 4
15 31
1 1
35 14
13 17
8 31
4 4
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14 1
18 18
14 5 9
30 1 1
11 37
1 7
12 1
4 7
3 10
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8 8
28 15
13 3
9 3
21 12
17 10
9 21
2 7
2 4 6
9 28
8 36
3 9 1 7
7 3
40 3
6 10
11 1
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12 19
7 8
9 35
9 4
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3 29
14 13 10
9 14
43 1
5 5
22 6
3 5 7
2 5
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11 1 4
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19 8
1 3
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5 4 2
21 11
11 5
18 19
14 20
20 9
11 14
2 7
10 7
1 14
37 14
11 11
13 20
19 33
20 11
14 19
24 12
22 11
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11 11 12
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20 11
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11 13
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33 11
12 12
21 12
11 11
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19 17
11 31
16 18
18 10
32 20
38 12
16 16
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11 29
10 23
19 22
11 13
23 11
17 14
14 16
30 15
12 20
11 14
21 11
10 13
10 11
19 10
14 12
18 20
20 16
22 11
11 11
2 13
15 12
11 20
21 11
14 14
11 19
29 10
11 11
19 17
20 14
34 11
13 17
11 14
13 11
21 20
19 11
11 11
10 13
20 28
10 23
12 20
10 16
35 11
11 31
12 31
17 23
11 16
11 22
11 11 11
11 11
18 11
23 17
10 10
10 22
17 12
17 19
11 11
19 12
22 18
15 25
11 11
18 11
11 19
12 22
32 10
11 13
11 14
13 31
41 19
20 24
17 35
13 11
15 11
20 10
11 11 11
11 11
17 19
27 14
20 10
11 18
11 12
13 11
10 19
11 16
20 16
36 17
19 14
11 20
22 14
19 10
11 32
20 17
20 11
19 15
13 11
23 11 11
14 10
12 13
11 11
33 21
10 18
17 13
15 22
13 11
11 19
11 27
17 13
26 27
19 20
13 27
20 20
11 12
13 13
20 19
21 19
29 14
13 13
11 10
19 16
13 14
11 15
17 19
10 17
20 12
15 13 13
11 23
15 15
20 11
19 15
17 12
19 11
10 21
13 18
25 19
15 20
16 14
10 11
14 19
13 17
17 19
15 19
11 14
10 11
10 11
13 15
22 21
14 19
15 14
18 11
16 11
13 15
15 11
10 26
19 14
12 13
27 20 13
11 24
17 24
24 14
14 11
14 18
20 11
10 28
18 13
20 11
19 20
18 14
10 17
15 28
18 15
18 17
23 19
22 11 20
20 13
20 16
11 18
11 13
20 19
14 17
18 17
26 13
13 11
19 23
19 12
13 11
20 17
17 10
12 20
15 16 16
10 18
20 20
19 18
16 14
18 13
37 19
11 12
17 19
16 22
11 11
20 13
14 16
10 19
14 29
18 13
25 20
14 18
19 14
11 18
13 17
16 35
19 10
19 14
15 32
20 15
19 16
18 19
23 14
10 10
14 25
10 11
7 10
13 12
12 13
13 10
20 17
13 14
29 20
20 19
18 28
13 16
17 20
10 10 12
18 10
17 10
15 21
36 12
18 19
19 23
15 24
12 10
10 21
17 21
17 13
18 18
17 17
11 28
10 19
14 10
16 12
11 14
21 28
11 20
18 12
14 24
20 14
40 17
21 13
21 26
32 22
19 13
11 33
13 14
18 20
12 14
13 10
11 28
19 14 8
20 10
23 18
18 16
11 19
10 11
25 10
23 15
14 18
14 15
15 24
27 17
16 20
19 12
16 20
10 14
18 16
15 18
11 12
13 13
13 14
13 13
12 14
17 16
13 17
36 13
15 20
14 17
11 18
13 14
13 19
14 14
25 22
11 22
20 13
20 33
14 13
13 12
15 13
14 15
33 12
19 10
27 19
25 17
14 16
25 19
14 10
22 16
10 10
14 16
12 10
16 17
13 13
12 11
13 16
20 17
16 11
12 10
17 14
20 31
11 27
26 20
27 18
12 13
10 28
17 23
20 17
15 26
10 17
20 10
13 14
19 22 18
10 16
28 12 30
28 34
12 15
34 16
12 18
20 35
16 27
22 19
13 10
17 13
26 16
10 14
12 17
12 14
11 13
10 17
27 33
16 13
11 19
10 17
15 15
20 18
21 14
15 14
19 13
13 13
20 20
15 20
17 17
13 17
15 14
14 19
16 13
25 18
25 19
22 19
23 13
10 15
18 21
18 12
13 17
10 13
13 12
17 19
14 17
19 10
10 14
14 10
11 16
14 11
12 30
15 13
14 14
18 12
13 25
18 15
14 22
13 27
19 10
12 15
13 14
35 18
24 13 11
14 13
19 11
13 17
17 17
20 16
19 13
14 14
19 20
15 12
16 15
15 28
12 28
38 20
26 14
20 37
16 20 14
18 18
28 19
13 18
12 18
14 30
25 13
13 14
15 14
24 15
21 14
10 10 12
20 11
15 18
21 12
16 17
18 17
10 20
19 15
20 14
20 25
10 10
10 10
15 18
12 15
18 10
20 16
18 11
12 19
21 16
14 14
17 17
16 19
14 13
16 12
17 16
29 10
17 15
17 17
17 12
19 10
15 15
17 25
24 39
13 18
20 13
22 14
29 19
15 15
21 16
18 20
15 20
13 13
15 10
29 13
18 16
16 17
14 16
23 13
34 17
17 15
19 10
19 16
30 15
18 15
16 12
10 10
20 18
13 10
16 19
26 17
18 17
20 15
16 34
23 16
10 12
20 10
11 12
12 16
15 12
11 15
18 19
16 16
16 18
19 19 20 14
16 23
30 17
16 13
15 32
14 13
24 14
17 21
13 10
10 10
20 15
14 18
20 12
15 15
16 15
12 17
14 22
20 10
20 10
20 15
15 16
13 18
12 12
12 22
17 14
12 10
13 14
16 15
16 18
10 24
16 18
23 23
20 16
15 23
16 17
15 14
19 16
12 23
14 33
13 16
11 12
18 12
12 14
12 14
17 18
14 16
18 18
17 16
24 14
17 19
12 14
13 17
13 12
21 30
15 13
15 10
10 10
13 12
10 12
13 29
22 18
17 17
16 19 15
16 16
15 15
10 15
24 14
13 17
12 19
18 22
14 15
15 19
17 12
16 17
18 15
14 20
15 17
17 18
15 28
17 15
17 12
16 13
14 21
13 17
32 20
13 14
18 10
16 18
14 16
12 18
22 10
25 10
31 10
16 15
15 12
12 23
30 15 18
19 10
10 18
15 20
13 31
20 12
10 12
18 24
12 10
18 17
18 16
14 18
15 18
14 18
19 26
12 13
16 18
14 18
17 15
16 14
16 12
20 14
13 23
18 15
12 19
10 12
15 12
10 18
18 18
13 15
19 17
30 14
13 16
27 25
29 12
16 13
10 17
14 24
12 19
20 15
14 25
24 23
15 15
10 12
18 15
12 16
14 18
18 20
27 19
17 16
34 17
19 14
15 32
20 23
14 16
25 14
10 18 12
19 13
14 20 12
20 12
18 16
17 14
29 15
18 14
12 20
14 18
19 26
18 23
15 12
18 15
16 15
20 25
17 16
10 10
10 12
20 12
10 19
15 16
19 19
19 19
15 23
15 18
15 17
25 26
13 18
16 12
16 17
10 10 16
27 12
20 16
17 15
12 10
17 20
16 16
25 20
12 12
13 15
20 14
15 17
17 10
15 16
10 12
20 19
16 16
18 18
12 17
13 12
21 12
15 31
18 25
39 18
25 10
14 35
16 24
12 17
10 10
14 16
12 19
18 17
22 18
10 16
18 17
16 12
18 19
26 16
5 17
12 24
25 32
15 23
13 26
20 18
20 12
6 20
18 20
16 17
13 19
24 20
19 15
33 14 15
26 20
14 18
14 19
16 15
29 15
38 16
17 12
17 13
10 17
16 19
30 24
15 23
20 18
10 19
12 16
13 18
31 13
14 20
20 12
16 13
16 12
17 15
16 16
15 12
10 11
12 17
10 18
12 15
12 12
32 16
16 17
14 10
12 27
15 17
26 10
17 12
20 19
13 10
16 17
16 21
15 15
18 16 16
19 26
29 17
20 15
29 12
23 12
34 14
19 11
19 12
18 14
31 19
21 13
15 2
18 12
12 16
10 18
18 17
19 33
16 19
20 18
15 15
25 30
14 20
20 12
11 16
21 22
16 16
16 18
18 22
10 26
19 11
22 18
26 20
19 19
27 12
20 12
10 20
25 20
10 10
21 32
10 16
11 16
21 20
25 18
17 12
11 17
13 18
20 10
12 10
12 19
20 13
10 12
14 12
10 10
10 19
10 2
42 10
10 10
39 10
21 10
2 15
18 14
14 13 5 7
3 5
2 2
7 1
12 5
4 1
2 7
3 1
2 7
3 3
4 8
8 6
6 4
4 5
17 3
4 8
6 2
7 8
6 9
16 7
5 5
2 2
2 8
9 5
9 5
2 4
2 20
5 6
8 2
4 4
6 3
3 3
9 4
7 5
2 5
4 5
4 3
7 4
4 8
6 3
8 7
6 2
7 7
9 9
9 8
8 8
8 5
3 3
7 5
6 3
4 9
6 6
2 7
8 3
18 12 17
8 10
26 25
6 19 26
10 15
17 11
15 14 11
3 17
11 10
21 19
26 11
18 17
26 24
25 14
15 15 13 26
19 10 18 16
12 11
24 26
22 11
24 22
11 17
21 21 11 24 25 11
26 11 22
22 10
19 19 13
21 11
21 11
23 23
23 18 22
17 21 23
22 24 13 24 25
20 16
24 23
16 22 26
22 18
13 21 16
14 11
20 23 17
12 13
22 20
25 25 15
10 24
24 16
16 23
13 13 15
21 24
22 25
21 13
26 15 26
22 10
19 11
26 12 10
25 26
17 15
10 20
22 12
24 14
24 15
21 19
18 26
10 25
14 20 24
26 17 19/21 13
22 23
21 17
12 4
11 17
19 5
16 1 inch equals 300 feet
Revised: August 21, 2008
Prepared June 25, 2008 for the City of Carmel by TriAxial Data Systems • Watsonville, CA 95076 • Phone (831) 763-3697 This is a graphic representation only of data provided by the City of Carmel and the County of Monterey. The author assumes no responsibility nor liability for errors or omissions. 0 300 600 900 1,200Feet
The City of Carmel-by-the-Sea makes no representations or warranties regarding the accuracy or completeness of this map. This map is intended to reflect the boundaries established by the Carmel Municipal Code, the California Coastal Commission, and California law. These sources take precedence over this map.

Carmel-by-the-Sea
City Zoning Map
Current Zoning Designations on Original Lots
Carmel Bay
Legend
Overlay Districts and Community Plans
Base Zoning Districts
City Limits
R-1 Single-Family Residential
R-1-C-6 Single-Family (6,000 sf min.)
R-1-C-10 Single-Family (10,000 sf min.)
R-1-C-20 Single-Family (20,000 sf min.)
R-4 Multi-Family Residential
RC Residential and Limited Commercial
CC Central Commercial
SC Service Commercial
P-1 Natural Parklands and Preserves
P-2 Improved Parklands
A-1 Theatrical
A-2 Community and Cultural
A-3 Senior Citizen Facility
AS Archaeological Significance Overlay
P Park Overlay
CP Community Plan Area
ESHA* Environmentally Sensitive Habitat Area - Overlay
*Note: The ESHA Overlay applies to all land within an identified ESHA and to all land within 30 feet of an ESHA. Please see General Plan for identified ESHA's in Mission Trail Nature Preserve, Pescadero Canyon, and at locations along Carmel Beach.

The Appeal Jurisdiction is a representation of the certified Appeal Jurisdiction layer from the coastal zone. Please see Certified Post LCP Map or Current Zoning for parcels in contact with this boundary.

Parcel Boundaries
Permanent Street Closures
AB* Appeal Juristiction / Beach Overlay
Revised: February 18, 2009
Prepared June 25, 2008 for the City of Carmel by TriAxial Data Systems • Watsonville, CA 95076 • Phone (831) 763-3697 This is a graphic representation only of data provided by the City of Carmel and the County of Monterey. The author assumes no responsibility nor liability for errors or omissions.

ECONorthwest 5
Site Visit
In June 2022, City staff hosted a walking tour of the village. The purpose of this exercise was to observe the characteristics of the built environment and evaluate the potential of City-owned sites to accommodate development of housing. Key themes from this visit include:

Height. The City’s current code has a two-story height limit. However, there are many older structures throughout the commercial core that are taller than two stories and are adjacent to single- or two-story buildings.

Interior Courtyards. One of the unique characteristics of Carmel’s built environment is the network of interior courtyards and intra-block passageways that connect businesses. Residents and visitors are encouraged to explore these interior areas behind business frontages and facades.

City-Owned Sites. The City owns several sites across the village. In addition to larger and potentially underutilized sites in the downtown core, it owns a series of sites that are unimproved street rights-of-way.

Sunset Center North and South Lots. If on-site parking could be accommodated, the north lot of the Sunset Center could be a redevelopment candidate. The South Lot may also be explored for development potential.

Topography. Some areas within and on the periphery of the commercial district have steep slopes. These areas could be opportunities for development with tuck-under parking.

Attachment 2
ECONorthwest 6
Low density retail in commercial district Example of interior courtyard Ulrika Plaza at 5th and Dolores Example of City-owned ROW site Sunset Center North Lot Example of underutilized parking Attachment 2
ECONorthwest 7
Market Overview
The ability of the market to deliver housing production in the future is largely a function of existing market conditions. An observation of socioeconomic conditions also informs housing need in the community.

For-Sale Market
Following several years of relative stability, the price of homeownership in Carmel has accelerated rapidly in recent years. Since 2019, the median home price in Carmel has jumped from $1.6 million to $2.95 million, an increase of 84 percent.5 Price increases are being driven by demand-side forces.

Figure 3: Median Home Price
Source: Property Radar6
Over this same period, there has been an acceleration of both sales volume and the share of homes that are purchased all cash or with mostly cash. For example, in 2020 and 2021 sales volumes were 50 percent higher than the previous five-year average. Moreover, the percentage of home sales with 75 percent to 100 percent cash down increased from 53 percent to 61 percent through the first half of 2022. This is indicative of a market that is attracting outside capital from other high-value markets. In the context of observed migration patterns in Northern California because of the COVID-19 pandemic, we suspect that much of the movement in the market is being driven by migration of high-net-worth households out of the Bay Area. This is observed 5 Property Radar. (See https://www.propertyradar.com/) Data reported through most recent period available 6 Property Radar. (See https://www.propertyradar.com/) Data reported through most recent period available $1,562,500
$2,950,000
$0
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
$3,000,000
$3,500,000
2014 2015 2016 2017 2018 2019 2020 2021 2022
Median Home Sales Price
Attachment 2
ECONorthwest 8
in migration data from the U.S. Postal Service that shows that since March 2020 Carmel has seen a migration-driven increase of 552 households.
7 Figure 4: Sales Volume and Percent of Purchase Price in Cash Source: Property Radar8
Second-Home Market
Tourism and the impacts of second homes and long-term rentals are also having an observed impact on affordability in Carmel.9 Data from the U.S. Census Bureau shows that nearly 40 percent of all housing units are used for seasonal, recreational, or occasional use. This rate is ten times the national average.

Figure 5: Share of Housing Units that are Second Homes
Source: U.S. Census American Community Survey (2016-2020 estimates); Table B2500410 Nation Carmel
Total housing units 138,432,751 3,731
For seasonal, recreational, or occasional use 5,303,302 1,479 Share of housing units that are second homes 3.8% 39.6% 7 USPS Change-of-Address Migration Data
https://www.arcgis.com/apps/dashboards/951428e32723456c879d0966af4baa8a 8 Property Radar. (See https://www.propertyradar.com/)
9 Short-term rentals are not permissible as per CMC 17.08.060 and CMC 17.14.040. (See https://www.codepublishing.com/CA/CarmelbytheSea/html/Carmel17/Carmel1708.html) 10 U.S. Census American Community Survey (2016-2020 estimates); Table B25004. (See https://data.census.gov/) 0 20
40 60
80 100
120
140
2014 2015 2016 2017 2018 2019 2020 2021 2022
Home Sales Volume
75% to 100%
Down
50% to 74.9%
Down
25% to 49.9%
Down
< 25% Down
Attachment 2
ECONorthwest 9
Renter Market
Reliable real-time market data on the local rental market is challenging to obtain because the majority of the rental market is organized through individual transactions, small property management firms, and in some cases informal agreements. Figure 6 below demonstrates that tenure split (owner vs. renter-occupied) in Carmel is roughly equal. However, a full 78 percent of the rental market is being met by single-family housing units (rather than apartment buildings), typically rented out by individuals as opposed to large property management firms.

Figure 6: Tenure (Rent vs. Own) by Units in Structure in Structure Source: U.S. Census American Community Survey (ACS) (2016-2020 estimates)11 Note: Tenure refers to whether a unit is occupied by someone who owns the unit (owner-occupied) or rents the unit (renteroccupied).

Unit Type Owner-Occupied Renter-Occupied Total
Single-family Detached 993 694 1,687
Single-family Attached 0 19 19
Duplex 0 0 0
Triplex/Quadplex 0 22 22
Small Multifamily (5-19 units) 0 162 162
Large Multifamily (20+ units) 0 0 0
Mobile Homes12 0 19 19
Total 993 916 1,909
Tenure Split 52.0% 48.0%
In Figure 7 below, we report annual contract rent reported for the market by the U.S. Census Bureau’s American Community Survey. We consider “average” rent levels reported in the survey to be considerably lower than where rental properties transact at in the market based on observations of current rent levels. However, this data is showing the expected trend of accelerated rent growth over the last two observation years. 11 U.S. Census American Community Survey (2016-2020 estimates). (See https://data.census.gov/) 12 The U.S. Census uses survey data across a five-year period to produce estimates across a broad range of demographic and socioeconomic variables in the American Community Survey (ACS). Because the ACS uses survey data to develop estimates, results can be unintuitive and have larger margins of error in smaller geographies. See https://www.census.gov/programs-surveys/acs/methodology.html for a review of the Census Bureau’s methodology for the ACS.

Attachment 2
ECONorthwest 10
Figure 7: Annual Contract Rent
Source: U.S. Census American Community Survey (5-year estimates from 2015-2020)13 Cost Burden
State and federal standards specify that households spending more than 30% of gross annual income on housing experience a housing cost burden. Housing cost burdens occur when housing costs increase faster than household income. When a household spends more than 30% of its income on housing costs, it has less disposable income for other necessities, including health care, food, education, and clothing. In the event of unexpected circumstances such as the loss of employment or serious health problems, lower-income households with a burdensome housing cost are more likely to become homeless or be forced to double-up with other households. Homeowners with a housing cost burden have the option of selling their homes and becoming renters. Renters, on the other hand, are vulnerable and subject to constant changes in the housing market.

In Carmel, 47 percent of all households that rent their homes are cost burdened, spending greater than 30 percent of their income on housing. Among these, a full 25 percent of renter households are severely cost burdened, spending 50 percent or more of their income on housing.

Figure 8: Percent of Income Spent on Rent, City of Carmel-by-the-Sea (2020) Source: American Community Survey 2016-2020 Five-Year Estimate (Table B25070)14 Income on Rent Households Share
13 U.S. Census American Community Survey (5-year estimates from 2015-2020). (See https://data.census.gov/) 14 American Community Survey 2016-2020 Five-Year Estimate (Table B25070). (See https://data.census.gov/) 0%
1%
2%
3%
4%
5%
6%
7%
8%
9%
10%
$0
$500
$1,000
$1,500
$2,000
$2,500
2015 2016 2017 2018 2019 2020
Annual Rent Growth
Contract Rent
Contract Rent Annual Growth
Attachment 2
ECONorthwest 11
Less than 10.0 percent 153 16.7%

10.0 to 14.9 percent 49 5.3%

15.0 to 19.9 percent 182 19.9%

20.0 to 24.9 percent 63 6.9%

25.0 to 29.9 percent 39 4.3%

30.0 to 34.9 percent 61 6.7%

35.0 to 39.9 percent 70 7.6%

40.0 to 49.9 percent 70 7.6%

50.0 percent or more 229 25.0%
Total: 916 100.0%
Commute Patterns
It is hypothesized that Carmel’s concentration of jobs in the leisure and hospitality sector creates challenges for local workers who do not have sufficient incomes to afford housing in the community. This imbalance of jobs to housing impacts quality of life including how far workers must travel for work, increasing transportation costs, and reducing individual productivity. In general, a good balance of jobs to housing would occur where the jobs available in a community match the labor force skills, and where housing is available at prices, sizes, and locations suited to workers who wish to live in the area.

In Carmel, roughly half of all workers live within 10 miles of the city. Primary areas where workers live include Seaside, Monterey, Salinas, and Pacific Grove. A full 26 percent of workers commute from greater than 25 miles away. Only 2.6 percent of workers live and work in Carmel.15
15 U.S. Census Bureau Longitudinal Employer-Household Dynamics Data (See https://lehd.ces.census.gov/) Attachment 2
ECONorthwest 12
Figure 9: Commute Patterns, Where Employees in Carmel Live (2019) Source: U.S. Census Bureau Longitudinal Employer-Household Dynamics Data. (See https://data.census.gov/) ECONorthwest 13
Code Review
As part of our scope, we conducted a code review to identify potential issues and barriers that could limit housing production in the Multifamily Residential (R-4) district and the commercial zones; Residential and Limited Commercial (RC) Central Commercial (CC), and Service Commercial (SC).

General Notes
§ The pattern of existing development is small lot (3,800-6,000), detached single-family.

Most new development will be infill.
§ Multifamily is defined as any development with two of more units on the same lot.

Building Height in All Zones
Building height throughout the city is limited to two stories, with maximum heights established for each zone. CMC 17.14.150.B-C establishes maximum building heights for the R-416, RC, SC, and CC zones. Structures in R-4 and RC zones are limited to 26 feet and structures in the CC and SC zones are limited to 30 feet. Building sites which face, abut or adjoin any property in the R-1 district are limited to a height of 24 feet. Building height may also be determined by compatibility with nearby structures facing the same street or intersection and within the same pedestrian field of view (i.e., generally, within 100 feet to either side of, or across the street from the proposed structure).

Given the existing small lot sizes observed throughout the city and off-street parking requirements (discussed in more detail below for the R-4 zone), a two-story maximum height will likely prohibit many multifamily projects from achieving base density allowances in the R4 zone. Building height limitations, maximum building coverage, and floor area ratio (F.A.R) limitations (discussed in more detail below) will even more severely limit multifamily projects from achieving base density allowances in commercial zones, even if parking requirements are lower than in residential zones.

R-4 Development Standards
Density
CMC 17.12.020.B establishes a maximum base density of 33 du/ac, and CMC 17.12.020.C offers a density bonus of 44 du/ac in exchange for affordable units. While these density thresholds are relatively high, they are difficult to achieve given the City’s inventory of small lots between roughly 3,800-6000 square feet, with lot widths around 50-60 feet and two-story building height maximum. Off-street parking requirements will further limit the ability to achieve base density.

Given the site constraints and a need for many developments to achieve base density for financial reasons, it is unlikely developers will be able to take advantage of the density bonus 16 Underground parking does not count as a story in the R-4 zone.

Attachment 2
ECONorthwest 14
since their ability to achieve the base density is already constrained. If the density bonus was offered in another story, rather than du/ac, it could help reduce barriers and allow more housing production on smaller sites.

Parking
CMC 17.38.020 requires 1.5 parking spaces per residential dwelling unit and offers reduced parking standards for affordable units (0.5 spaces per unit) in the R-4 zone. CMC 17.12.020.F.1 prohibits parking requirements in the R-4 zone to be met on-street or through a fee-in-lieu.

Providing parking onsite while achieving the allowed density will be a challenge for many development sites given that many of the existing lots in the city are only 50-60 feet wide. While underground parking is allowed and does not count against the maximum building height, underground parking is far more expensive to construct. Reducing parking standards for certain areas (i.e. areas with access to transit or walkable to commercial districts) or for unit types (i.e. studios and one-bedrooms) may help developments achieve base densities.

Unit Distribution
CMC 17.12.020 requires that on sites larger than 4,000 sf, 50 percent of all units must be provided as rental apartments.

CMC 17.08.050.F. requires at least 25 percent of all units in a multifamily project containing more than two units be between 400-650 square feet. While this provision on its own is not necessarily a barrier to housing development, parking standards for these small units are the same as a single-family home. Reducing the parking standard for smaller multifamily units will help developments to achieve density more easily.

Commercial Zone Development Standards
Building Coverage
CMC 17.14.130.A. limits building coverage to 80 percent in the CC and SC zones. 17 The existing
pattern of development in these two zones appears to exceed 80 percent building coverage on many parcels. Additionally, the code prohibits the removal of existing courtyard or intra-block walkways, which will further limit the amount of allowable building coverage on some sites.

Since the land costs in Carmel-by-the-Sea are exceptionally high, these maximum building coverage requirements will likely act as a development barrier. This becomes even more of a challenge in the context of redevelopment where the existing structure exceeds 80 percent building coverage. New developments may be required to build a smaller building than previously existed.
17 Exceptions are granted up to 95 percent.

Attachment 2
ECONorthwest 15
Floor Area Ratio
CMC 17.14.140.A-B establish F.A.R limits for the commercial zones. One-story buildings in the CC and SC zones are allowed to achieve an F.A.R equal to 95 percent of the site area. However, this contradicts the allowed building coverage discussed above (80 percent), excluding the exceptions. Two-story buildings can obtain an F.A.R equal to 135 percent of the site area, which further limits the allowed square footage outside of the building coverage maximums, as either the first or second story would need to be smaller than the other to meet this F.A.R. For example:
§ A 5,000 square foot lot is allowed a maximum of 4,000 square feet in building coverage, which could translate to about an 8,000 square foot building if the two stories were of equal size. However, two-story buildings are limited to 135 percent of the total site area. § 135 percent of the total site area is 6,750 square feet. The F.A.R requirements reduces the potential square footage by approximately 1,250. This lost square footage could translate into roughly two additional apartment units.
§ However, if using a density bonus the limit would be 150% of the total site area, reducing the amount of lost square footage for project utilizing a density bonus.

The restriction is even more severe in the RC zone adjacent to the Single Family Residential (R1) zone, where F.A.R requirements limit two-story buildings to 80 percent of the total site area.

For example:
§ A 5,000 square foot lot could result in a maximum building coverage of 3,500 (70 percent), so two stories of the same size could render a 7,000 square foot building. § With F.A.R. limited to 80 percent of the total site area for two-story structures, this limits the building to 4,000 square feet. This represents a loss of about 3,000 square feet.
§ Like the example above, the loss of square footage is reduced if a project can capitalize on a bonus.

F.A.R. bonuses are available for projects that include affordable housing, courtyards, and/or intra-block walkways.

Review Processes and Additional Studies
The City should be mindful of how additional procedures and studies can add time and cost to projects that are facing unprecedented cost escalations in the current economic environment.

For example, CMC 17.08.050.F.1 requires all multifamily projects to prepare an acoustical analysis and the implementation of acoustical design treatments to meet noise standards contained in Title 25 of the California Government Code. While this is not a barrier to development on its own, it does require a small amount of time and cost to the development process. Cumulatively, review processes can add up to be a significant barrier to development and the City should endeavor to streamline review and approvals wherever possible.

Attachment 2
ECONorthwest 16
The City also requires conditional use permits for certain residential developments in all zones (i.e. developments over 22 du/ac). The City’s standard practice is to process approvals concurrently where possible; but removing this additional process could reduce extra steps and cost in the development process for both City staff and applicants, while eliminating the additional cost of preparing a conditional use application.

High-Level Sites Analysis
In its forthcoming update to the Housing Element of the General Plan, the City will be required to identify physical sites that have the zoned capacity to accommodate its share of regional housing need (349 units). The State agency (Housing and Community Development “HCD”) responsible for oversight and certification of the Housing Element has specific requirements for this analysis. It is beyond the scope of this project to conduct a full HCD compliant alternative sites analysis. And the sites included in this review is unlikely to be an exhaustive list of candidates. It likely also includes candidates that future study my find less viable. However, as a precursor to the Housing Element Update, we provide a high-level overview of potential candidate sites. In our methodology we combine anecdotal context through conversations with local developers and property owners alongside a range of variables that are theoretically indicative of redevelopment potential. These include:
§ Historic resources § Total value per-square-foot
§ Sites with adjacent ownerships § Sites with high value uses § Sites identified in RHNA5 § Discussions with developers § Land-to-improvement ratio § Site visit and spot checking Defining a Study Area
Housing redevelopment generally requires scale to be financially feasible because the value of the new use must be measurably higher than the existing use. Scale is a function of site size and allowed density. Under the existing zoning code, only the R-4 and commercial zones allow multifamily development. For this reason, the focus of this work is on the commercial core, defined in Figure 11.

Conservation District
The purpose of the Conservation District (codified in 2004) is to “recognize that Ocean Avenue and the commercial properties that surround this corridor contain some of the most memorable and important commercial buildings in Carmel”.
18 The district includes special procedures that
influence the development and design context for properties in the district. While we did not consider all properties in the district to be infeasible, the additional development and design standards add an additional layer of complexity to redevelopment potential. 18 Carmel Municipal Code § 17.20.260. (See
https://www.codepublishing.com/CA/CarmelbytheSea/html/Carmel17/Carmel1720.html) Attachment 2
ECONorthwest 17
Figure 10: Zoning Map; Carmel-by-the-Sea
Source: City of Carmel-by-the-Sea
Carmel_Zoning
A-1
A-2
A-3
CC
P-1
P-2
R-1
R-1-C-10
R-1-C-20
R-1-C-6
R-4
RC
SCCit
yLimits
ConservationDistrict
Legend
ECONorthwest 18
Figure 11: Commercial Core Study Area Definition
Source: ECONorthwest
Downtown Study Area
Conservation District
Legend
ECONorthwest 19
Historic Resource Properties
The project study area includes 45 properties that are identified as historic. All but seven of these are in the Conservation District (see Figure 12). While we did not omit historic resource sites from being considered redevelopment candidates outright, redevelopment or renovation of historic resource sites will have an additional layer of complexity, as projects will need to meet the Secretary of the Interior’s Standards for Rehabilitation.19 Properties Omitted Due to Existing Use
In this step we removed properties from consideration that have clear uses that would be a barrier to redevelopment, regardless of the redevelopment economics of the physical sites (see Figure 13). This included a removal of civic and institutional uses such as City Hall, libraries, parks, and open space. It also removed all attached ownership sites (such as condominiums) because assembling ownerships of these properties is nearly impossible. Lastly, we removed sites with businesses where the likely income generating potential of the use was high relative to the real estate asset (such as hotel properties). Due to Carmel’s tourism draw, even a 2-star hotel commands room rates well above average for the class. Conversations with City staff and local developers further suggested that it would be highly unlikely that any hotel property in the commercial core would fully redevelop or reposition to permanent housing. However, there is opportunity to add workforce housing capacity through programs that convert a single hotel room to an on-site managers uint.

Fifth Cycle (RHNA5) Housing Element Sites
Carmel’s Fifth Cycle Housing Element was adopted in 2015. This document includes an inventory of sites that were identified at the time as the most likely to accommodate future housing need (see Figure 14). The analytical process to identify these sites is established and findings certified by the State Department of Housing and Community Development (HCD).

Adjacent Ownerships
Sites that can obtain scale through size and density generally have a higher likelihood of redevelopment. Larger sites offer greater flexibility and fewer barriers. Often, two or more sites adjacent to each other that are both underutilized can be combined to make more feasible development site. However, assemblage of multiple ownerships can be a barrier. In this step we used ownership data in Assessor’s records to identify properties that are adjacent to each other but have the same owner (see Figure 15). If they meet other redevelopment criteria, these sites are more likely to redevelop.
19 Secretary of the Interior’s Standards for Rehabilitation. (See https://www.nps.gov/subjects/taxincentives/secretarysstandards-rehabilitation.htm) Attachment 2
ECONorthwest 20
Figure 12: Historic Resource Properties
Source: City of Carmel-by-the-Sea.

CarmelHistoricProperties
Downtown Study Area
Conservation District
Legend
ECONorthwest 21
Figure 13: Omitted Properties do to Existing Use
Source: ECONorthwest
Downtown Study Area
Conservation District
Not Viable
Legend
Hotel
Hotel
Hotel
Hotel
Condo
Condo
Condo
Condo
Condo
Condo
Hotel Hotel Hotel
Hotel
Hotel
Hotel
Hotel
Hotel
Library
Library Park
Hotel
Hotel
Condo
Condo
City Hall
CityHall
Hotel
Park
Hotel
Hotel
Hotel
Hotel
Hotel
ECONorthwest 22
Figure 14: RHNA5 Sites in the Commercial Core
Source: Carmel-by-the-Sea Fifth Cycle Housing Element, Digitized by ECONorthwest Downtown Study Area
Conservation District
Not Viable
RHNA5 Inventory
Legend
ECONorthwest 23
Figure 15: Sites with Adjacent Ownerships
Source: ECONorthwest
Downtown Study Area
Conservation District
Not Viable
Adjacent Ownerships
Legend
ECONorthwest 24
Land-to-Improvement Ratio
Land-to-Improvement ratio is a metric that compares the value of an improvement on a property to the value of the land using data from the Monterey County Assessor’s Office.

Theoretically, the more valuable land is compared to improvements on a site, the more likely the site is to redevelop (see Figure 16).

Data Limitations
The land-to-improvement metric and the value per-square-foot metric (below) use assessed value as reported by the Assessor. Assessor’s data can deviate broadly from real market value in California due to Proposition 13 which limits the annual increase in assessed value to 2 percent until a property transacts. While the ratio of improvement and land value should be more stable, properties that have not transacted for a long time could provide misleading results. For this reason, we consider these metrics alongside all other variables and in conjunction with site/spot checks.

Total Value Per-Square-Foot
In development economics the term “residual land value” is defined as the maximum value that a developer can pay for a site for a given development program. It is influenced by a range of factors including construction costs, development form, market conditions, and the developer’s threshold for rate of return, among other factors. It was beyond the scope of this work to do feasibility testing that would calculate actual residual land values. However, we know that the more expensive it is to acquire sites, the less likely development is to be feasible. Therefore, identifying sites in the study area with the lowest combined value (land plus improvements) relative to the size of the site can be an indicator of redevelopment potential (see Figure 17).

Candidate Site List
We combined the analysis above with an in-person site visit, visual assessment using aerial and streetscape photography, and conversations with local representative to develop an inventory of candidate sites that could have redevelopment potential. In addition to properties within the study area, we also evaluated sites adjacent to the commercial core that could be candidates for future rezoning to allow more housing density. Each site is briefly discussed below Figure 18.20 20 Sites are not listed in any particular order of prioritization Attachment 2
ECONorthwest 25
Figure 16: Land-to-Improvement Ratio
Source: ECONorthwest using Monterey County Assessor’s Data Downtown Study Area
Conservation District
Not Viable
Land to Improvement Ratio
< 1.0

1.0 - 1.5

1.5 - 2.0
> 2.0
No Improvement Value
No Data
Legend
ECONorthwest 26
Figure 17: Total Value Per-Square-Foot
Source: ECONorthwest using Monterey County Assessor’s Data Downtown Study Area
Conservation District
Not Viable
Value PSF
No Data
< $100
$100 - $175
$175 - $250
> $250
Legend
ECONorthwest 27
Figure 18: Candidate Site List
Source: ECONorthwest
Downtown Study Area
Conservation District
Legend
ECONorthwest 28
Figure 19: Data Table of Candidate Sites
Source: City of Carmel-by-the Sea Planning Department
Site
ID APN Zoning Lot Size Acres Max units @ 22 DUA21
Max Units @
44 DUA22
Max Units @
88 DUA23
#1 10143001000 A-2 90,084 1.02 22 45 90
#2
10138003000 SC 7,913

0.37 8 17 33
10138021000 SC 7,949
#3
10104001000 R-4 32,136

1.28 28 57 113
10104004000 R-4 21,576
#4 10145008000 RC 7,878 0.18 3 8 16
#5 10212010000 R-1 7,637 0.18 3 8 16
#6
10095013000 RC 15,313

0.53 11 24 47
10095012000 RC 8,027
#7
10098005000 SC 4,871
10098004000 SC 4,676 0.33 7 15 30
10098006000 SC 4,901
#8
10212027000 R-1 4,014
10212004000 R-1 4,004 0.28 6 13 25
10212026000 R-1 3,994
#10
10144015000 R-1 4,155

0.18 3 8 16
10144016000 R-1 3,738
#11 10133004000
(Example) CC 6,398 0.14 3 7 13
#12
10141006000 CC 12,520

0.38 8 17 34
10141011000 CC 4,377
#13
10145012000 SC 3,632
10145024000 SC 4,030 0.30 6 14 27
10145023000 SC 4,118
#14 10142001000 SC 8,009 0.18 3 8 16
#15
10149012000 A-3 7,435

0.62 13 28 55
10149010000 A-3 7,964
10149011000 A-3 7,985
10149001000 A-3 3,615
#16
10084030000 R-1 26,874

1.10 24 49 97
10084023000 R-1 5,822
10084024000 R-1 6,016
10084022000 R-1 4,496
10084003000 R-1 3,856
#17 10097007000 8,534 .020 4 9 18
TOTAL: 7.27 acres 152 units 327 units 646 units
21 Permitted by-right. No affordable requirements
22 20% of units must be for low-income households OR 10% must be for very low-income households OR 50% must be for seniors. All units must be deed restricted for a minimum of 30 years. 23 All units must be deed restricted affordable for a minimum of 30 years.

Attachment 2
ECONorthwest 29
Site 1: Sunset Center Lots Site
The north lot at Sunset Center is a large (1.02
acre) parking lot with no improvements other
than paving. It is a City-owned site. The City has
expressed interest in redeveloping the site for
housing so long as parking needs for Sunset
Center could be accommodated in the
development program. A zone change from
Theatrical District (A-2) to Multifamily
Residential (R-4) would be required to facilitate
development of the site. The south lot could also
be viable, but larger scale development may not
be as compatible with existing residential
development scale this far removed from the
commercial core.

Site 2: Ulrika Plaza Site
The 0.37-acre Ulrika Plaza site previously entitled
as a mixed-use building. The initial developer
lost the project for financial reasons, and it was
acquired by another developer. This developer
has been working to get a development program
for 12 market-rate apartment units approved on
the site for several years. The site is a case study
of a development not building to maximum
density.

Site 3: City Public Works (Vista Lobos) Site
This is a City-owned site totaling 1.28 acres at the
north end of the study area. The site is a large
parking lot with low value improvement used for
public parking. The City has expressed interest in
using the site for housing if feasible. Potential
height restrictions due to a protected viewshed to
Point Lobos (see CMC 17.12.050) could limit
achievable density and feasibility.

Attachment 2
ECONorthwest 30
Site 4: Carmel Realty Office Site
This site is a 0.18-acre corner-lot parcel that is
currently owned and used for office space by
Carmel Realty. It has low lot coverage and scores
well with a land-to-improvement ratio. It is a
single-story structure that is surrounded on all
sides by structures that are at least two stories
tall. The site was previously used in the RHNA5
inventory.

Site 5: Pine Inn Parking Lot
This 0.18-acre site is the parking lot for the Pine
Inn. The site is not attached or adjacent to the inn,
it is a separate parcel across the street. As driving
patterns and parking needs change, this site
could be a future candidate for redevelopment.

Site 6: Bruno’s Market Site
This site is two adjacent parcels totaling over 0.53
acres under the same ownership. The site
includes a parking lot that leads to low lot
coverage. It also scores in the top tier for land-toimprovement ratio. It could be a potential redevelopment candidate.

Attachment 2
ECONorthwest 31
Site 7: Three Garages Site
This site would be an assemblage of three equal
sized parcels totaling 0.33 acres. Two of the
parcels are under the same ownership, and one
was previously used in the RHNA5 inventory.

Existing uses include a site with parking and
three attached garages, and a commercial
building used for real estate sales. Combined the
site scores in the top tier for land-to-improvement
ratio and in the mid-tier for value per-squarefoot.

Site 8: First Church of Christ Parking Lot
This site is a parking lot used by the First Church
of Christ. It is three separate taxlots totaling 0.28
acres. Assessor’s records have missing values for
ownership on the two southern parcels but given
its existing use we assume that all three parcels
are owned by the Church. In 2020, the State of
California passed AB185124, commonly referred
to as the “yes in God’s backyard” bill. This bill
makes it easier for religious institutions to
convert excess parking to affordable housing by
prohibiting a local agency from requiring the
replacement of religious-use parking spaces that a developer of a religious institution affiliated housing development project proposes to eliminate as part of that housing development project.

Redevelopment of the site would require a zone change.

Site 9: Misc. City-Owned Sites (Not Mapped)
The City owns a series of miscellaneous small
vacant sites in the R-1 zone. These sites are legacy
right-of-way that were not developed for streets.

Some of these sites may have development
potential. However, our site visit identified that
barriers were common, including mature trees,
topography, and use for primary access for
existing homes.
24 California Assembly Bill. 2020. “Religious institution affiliated housing development projects: parking requirements.” 2019-2020 Regular Session. AB 1851. (See https://openstates.org/ca/bills/20192020/AB1851/) Attachment 2
ECONorthwest 32
Site 10: Red Cross Site
This site is two adjacent parcels owned and used
by the American Red Cross. Collectively the site
is 0.18 acres. Because the site is owned by a nonprofit organization it does not have Assessor’s values to calculate redevelopment metrics.

However, site inspection confirms a low intensity
use. Because the owner is a mission-driven
organization, it’s possible they may be a willing
partner if they can find an alternative for their
current operations.

Site 11: Café Carmel Site (Representing ALL
single-story downtown buildings)
All single-story downtown buildings can be
explored as opportunities for densification. Site
orientation, existing and surrounding uses, and
access are contributing factors to feasibility. The
Café Carmel site pictured is one example of a
single-story commercial property with two-story
building on either side. The Café Carmel site
specifically scores in the top tier for land-toimprovement ratio and has a land value around $100 per-square-foot. The site was previously
used in the RHNA5 inventory.

Site 12: Wells Fargo Site
This site is two adjacent parcels comprised of the
existing Wells Fargo building and associated
parking lot. Combined the site is 0.38 acres. The
site was identified as a candidate site in the
RHNA5 Housing Element inventory. It scores in
the top tier for land-to-improvement ratio. It is
owned by an institutional entity (Wells Fargo).

However, conversations with City staff indicate
that it could be a candidate for inclusion as a
historic property which would complicate
redevelopment.

Attachment 2
ECONorthwest 33
Site 13: Esperanza 7th and Dolores Site
This site is three adjacent parcels owned by
Esperanza Carmel. The site totals roughly 0.30
acres. Esperanza has a development proposal on
the site for eight market rate apartment units.

Site 14: 7th and Mission Site
This 0.18-acre site currently accommodates a
clothing boutique in a single-story commercial
building. Half of the site is comprised of a
parking lot, which leads to low lot coverage and a
land-to-improvement ratio above 1.5. However,
it’s value per-square-foot is high at nearly $500
per-square-foot, making acquisition of the
property less likely.

Site 15: Carmel Foundation Site
The Carmel Foundation is the only provider of
deed-restricted affordable housing in Carmel.

Their administrative offices include four parcels
totaling 0.62 acres. This site does not score high
on land-to-improvement ratio but scores in the
top tier of value per-square-foot. This site is being
considered as a candidate because the Carmel
Foundation is a mission-driven organization and
interviews with leadership indicated that if they
can accommodate their administrative functions
off-site, they would consider redeveloping their
property for affordable housing. Redeveloping
this site would require rezoning.

Attachment 2
ECONorthwest 34
Site 16: Carmel Presbyterian Site
This site is five adjacent parcels totaling almost

1.1 acres. Over a third of the site is a parking lot.

See previous comments about AB1851. The site is
outside of the commercial core and would
require a zone change to facilitate
redevelopment.

Site 17: 5th and Junipero Site
This is a corner lot site totaling just under 0.20
acres. The existing use is a parking lot and singlestory commercial building. The site was included in the RHNA5 inventory. It scores in the mid-tier
for both redevelopment metrics.

Housing Capacity Opportunities
Based on our review of market conditions, the character of existing development, and potential needs in the community, we see opportunities to add housing capacity in the following ways:

Promote Accessory Dwelling Units
Accessory dwelling units are commonly built as
additional structures on lots with an existing home
or are created through garage conversions. Lots that
are conducive to accommodating ADUs have
common characteristics including larger lot sizes,
detached garages, and low lot coverage ratios. In
Carmel over 87 percent of parcels are zoned for
single-family residential uses (R-1), totaling nearly
2,900 lots. Carmel has also had growing interest in
ADU development, receiving 13 applications for
ADUs in 2021, up from 8 in 2020.

Attachment 2
ECONorthwest 35
Infill Capacity
There are several sites, including City-owned
properties, where infill could be possible.

Development of these sites would require careful
consideration of existing adjacent uses. Depending
on the scale of the site, this redevelopment could be
small-scale plex (duplex, triplex, quadplex) infill or
relatively large-scale development. The City should
consider amendments to development standards
and design guidelines to facilitate achieving the
maximum allowed densities. This would result in a
greater likelihood of development feasibility for
low-to-mid-rise multifamily development forms
ranging from three to four stories.

Encourage adding residential units above
commercial uses
Carmel’s business district has many properties that
are single-story low-intensity commercial uses.

Some of these properties may be candidates to add
an additional story of housing above the existing
commercial. There is existing and recent
development precedent that this densification is
feasible, even for historic properties. The best
candidates would be properties where the scale of
adjacent properties is two-stories or greater.

Full Redevelopment
There may be opportunities in the commercial
district where the value of housing may be higher
than the existing commercial use. These sites would
be candidates for razing the existing structure and
building maximum feasible density. To be feasible
the scale of development would have to maximize
the development potential of the site through larger
massing and maximum height.

Attachment 2
ECONorthwest 36
Recommended Actions and Potential Incentives
Based on the preceding analysis, we offer the following recommendations for further consideration as the City progresses to an update of its Housing Element.

Explore changes to development standards. Our review of Carmel’s zoning code found that overly restrictive development standards, such as the two-story heigh limit are not likely to facilitate maximum allowed densities. The City should explore options to remove these barriers consistent with the findings above.

Adopt objective design standards. Local developers indicate that the review and approval process in Carmel is overly restrictive. Senate Bill 35 and the Housing Accountability Act also require the use of objective standards. The City’s code currently includes subjective standards.

The City should analyze its current code language and develop recommendations for objective criteria and opportunities for a streamlined review process.

Create an accessory dwelling unit program. An accessory dwelling unit program could range broadly from creating promotional materials and informational outreach to an aggressive program that could project subsidies, development of pre-approved plans, assisting with allocating water credits (for deed-restricted units only), and technical assistance with planning and building staff navigating the planning and permitting process for property owners.

Create a preservation and monitoring program. The City should take action to understand its inventory of existing deed-restricted units and understand the risk of them converting to market rate.

Consider expanding the R-C and/or R-4 zone. Our analysis identified areas south and west of the commercial core that have opportunity sites and/or concentrations of parcels that could be candidates for redevelopment based on common metrics. The City should explore rezoning opportunities in these areas.

Inventory and incentivize properties with opportunities for densification. The City should consider at a minimum creating an inventory of single-story commercial properties with opportunities for densification and conducting property owner outreach. Other alternatives would be to establish flexible development standards like parking waivers and height limit adjustments, or to assist with water credits.

Explore solutions to water credit barriers to development. The water supply conditions on the Monterey Peninsula are a significant barrier to development. To add units to an existing structure or develop/redevelop a property, a developer must obtain water credits to accommodate the net change in fixtures. However, there are a finite number of credits available and no secondary market for transfer. To accommodate future development, the City should play an active role in regional efforts to improve access to water resources and water credits and facilitate prioritizing water credits for affordable housing.

Attachment 2

1. Carmel Presbyterian, SE Junipero and Ocean: R-1 District a. 010-084-024, 0.13 acres
b. 010-084-023, 0.13 acres
c. 12,000 square feet, 0.26 acres total of parking lot
Attachment 3

2. Church of the Wayfarer, NW Lincoln and 7th: RC District a. APN 010-191-002, 0.32 acres
b. No on-site parking
Attachment 3

3. All Saints Episcopal/St. John the Baptist, SW Dolores & 9th: R-1 District a. APN 010-157-013, 0.82 acres, 36,000 square feet – no on-site parking b. APN 010-157-012, 0.18 acres, 8,000 square feet - ~2,000 square feet of on-site parking Attachment 3

4. First Church of Christ, Scientist, Lincoln between 5th and 6th: R-1 District a. APN 010-212-027, 4,000 square feet
b. APN 010-212-026, 4,000 square feet
c. APN 010-212-004, 4,000 square feet
d. 12,000 square feet total, 0.27 acres
Attachment 3

5. Carmel Mission, Rio Road south of Lasuen: R-1 District a. APN 009-531-003, Diocese
b. Acreage unknown
c. Parking in the photo below is public right-of-way
Attachment 3

CITY OF CARMEL-BY-THE-SEA

CITY COUNCIL
Staff Report
May 7, 2024

PUBLIC HEARINGS
TO: Honorable Mayor and City Council Members
SUBMITTED BY: Katherine Wallace, Associate Planner
APPROVED BY: Chip Rerig, City Administrator
SUBJECT:

MA 23-103 (Cypress Inn): Consideration of a Mills Act Contract application MA 23- 103 (Cypress Inn) for the historic "La Ribera Hotel" located on the northeast corner of Lincoln Street and 7th Avenue in the Residential and Limited Commercial (RC) District. APN 010-147-008-000.

RECOMMENDATION:

Accept the recommendation of the Historic Resources Board and approve the Mills Act Historical Property Contract MA 23-103 (Cypress Inn) for the historic “La Ribera Hotel” located on the northeast corner of 7 th
Avenue and Lincoln Street (APN 010-147-008-000) and authorize the City Administrator to execute the contract (Attachment 1).

BACKGROUND/SUMMARY:

BACKGROUND:

The property is located on the northeast corner of 7
th Avenue and Lincoln Street in the Residential and
Limited Commercial (RC) Zoning District (Attachment 1, Exhibit A). Originally named “La Ribera,” the hotel was designed by Blaine & Olsen (an Oakland-based architectural firm) and built by Meese & Briggs in 1929. The hotel was re-named “Cypress West” c.1960 and later renamed “The Cypress Inn,” in the 1980s.

The property is significant as an excellent example of Spanish Eclectic commercial design by Blaine & Olsen. The reinforced concrete building is particularly notable for its red ceramic roof tiles, Moorish-style 3- story tower with a ziggurat top, and central courtyard. It is also significant for its 1949 two-story addition located at the southwest corner of the building, designed by San Francisco architect, Gardner Dailey, and built by Harold Geyer.

In 1990, a 4,000-square-foot lot (APN 010-147-009-00) located on Lincoln Street immediately north of the Cypress Inn was acquired by the hotel owners. The property contained the Mary DeNeale Morgan studio, a building deemed historically significant but which had lost integrity. The studio was demolished to accommodate a north addition to the Cypress Inn, containing a restaurant space and six new hotel unit. The project was approved by the Historic Resources Board (then called the Historic Preservation Committee) and the Planning Commission in 1999. Although the north addition is physically connected to the original hotel building, the lot (APN 010-147-009-000) was not merged with the original hotel property (APN 010- 147-008-000) and the lots remain separate to this day. The north addition is located in the Central Commercial (CC) zone, and the original Cypress Inn is located in the Residential and Limited Commercial (RC) zone. Additionally, the north addition is not listed on the Carmel Inventory nor the Carmel Register and is not part of this Mills Act application.

The Cypress Inn was first identified as a significant historic resource in 1978, in the “Monterey Architecture Resource Inventory” survey conducted by Richard Janick and the Monterey Peninsula College. In 1990, the property was documented by Erling Lagerholm; in 1997, Lagerholm prepared a Department of Parks and Recreation (DPR) Form 523 that included a more extensive description and analysis. In 2003, another DPR was completed by Kent Seavey (Attachment 1, Exhibit B). Also in 2003, a “Historic Preservation/Conservation Easement” for Block 75, lots 16, 18, 20, and 22 was recorded with the Monterey County Recorder. The Easement record does not list Assessor Parcel Numbers. Lot 16 is associated with APN 010-147-009-000 (the north addition to the Cypress Inn), while lots 18, 20, and 22 are all associated with APN 010-147-008-000 (the original Cypress Inn property). It appears as though lot 16 was included in the Easement to ensure appropriate historical documentation and interpretation of the Mary DeNeale Morgan studio (i.e. a commemorative plaque).

In order to qualify for a Mills Act contract, a property must be included on the Carmel Inventory and added to the Carmel Register of Historic Resources. At the request of the then-property owner, the Planning Commission designated the Cypress Inn as a historic resource on June 9, 1999 following a unanimous recommendation by the Historic Preservation Committee on May 17, 1999. The resource was added to the Carmel Register on June 9, 1999 and later listed on the Carmel Inventory on May 25, 2005 (following the adoption of the City’s Local Coastal Plan). A Resolution designating a Historic Resource for APN 010-147- 008-000 was recorded with the County Recorder on January 4, 2007 (Document #2007001226). Please note that the designation recorded with the County Recorder lists only APN 010-147-008-00 as a historic resource (not APN 010-147-009-000, the separate north lot accommodating the 2003 north addition).

On April 4, 2023, Gerard A. Rose, Attorney, submitted an application (MA 23-103, Cypress Inn) for a Mills Act Historical Property Contract for the Cypress Inn on behalf of the property owner, Sentimental Journey LLC. On August 21, 2023, the Historic Resources Board adopted Resolution 2023-011-HRB (Attachment 2), recommending that the City Council enter into a Mills Act Contract with Sentimental Journey, LLC for the historic “La Ribera Hotel.”
Contract Value
The Monterey County Assessor’s Office is responsible for determining the value of a property under Mills Act Contract in accordance with Revenue and Taxation Code sections 439 through 439.4. Properties with a Mills Act Contract are not valued based on sales data; rather they are valued by a prescribed income capitalization method (Attachment 3). After a Contract is approved, it is forwarded to the Monterey County Assessor who then determines the Mills Act value.

Contract Summary
A Mills Act contract under State law is an agreement between the City of Carmel and a property owner of a historic building listed on the Carmel Register. In exchange for reduced property taxes, the property owner is contractually obligated to perform annual maintenance on the building. The property owner benefits from a reduction in property taxes. The City benefits from assurance, via contract, that the historic building is rehabilitated, maintained, and preserved with a portion of those property taxes that the city is giving up.

The primary purpose for offering Mills Act contracts in the City of Carmel-by-the-Sea is to assist in and ensure the rehabilitation or restoration and long-term maintenance of historic resources. All properties listed on the City’s Historic Register in all districts that have been preserved in their historical size, form, and design without significant alterations are eligible for Mills Act contracts.

All Mills Act contracts have a term of 10 years, and one year is added to this term annually upon each anniversary date of the contract unless one or both parties (City and property owner) have taken action to terminate the contract. The City Administrator is authorized to initiate contract termination on behalf of the City based on recommendations of the Community Planning & Building Department. The contract rights and obligations are binding upon all successive owners of the property during the life of the contract. The property retains the lower Mills Act tax rate when sold. To end a contract, either party may submit a notice of non-renewal to the other party. Such notices shall cause the contract to terminate at the end of the thencurrent 10-year contract period. Cancellation of a contract by the City due to non-compliance requires a public hearing and, if canceled, results in the immediate termination of the contract and a penalty equal to

12.5 percent of the assessed market value of the property.

The contract requires that the historical elements of the property are maintained in good condition. This includes a plan for rehabilitation and maintenance and may include a program to restore deteriorated features. All recipients of Mills Act contracts are required to implement a rehabilitation/restoration and maintenance plan prepared by a qualified professional. An annual report is submitted to the Community Planning & Building Department specifying all work that has been done to maintain and preserve the historic resource over the year in compliance with the approved rehabilitation/restoration and maintenance plan. All rehabilitation/restoration and maintenance work must be completed in conformance with the Secretary of Interior’s Standards for Rehabilitation and all proposed projects are subject to a Design Study review prior to commencement of the work. Minor alterations, as defined in CMC section 17.32.150, may be approved by staff; however, major alterations, as defined in CMC section 17.32.160 would be reviewed by a qualified professional and presented to the Historic Resources Board for review. All Mills Act contracts must specify that the rehabilitation/restoration and maintenance plan shall be updated at least every ten years by a qualified professional and approved by both parties.

The Historic Resources Board considers each application for a Mills Act contract and provides a recommendation to the City Council to approve, approve with conditions, or deny the application.

The City Council considers the recommendations from the Historic Resources Board at a public hearing and resolves to approve, approve with conditions, or deny the proposed contract with sufficient time for action by the City Clerk so that recordation of approved contracts occurs before December 31st of the year in which the application is received.

STAFF ANALYSIS:

Findings
Carmel Municipal Code Section 17.32.100.B.6(c) sets forth findings that the Historic Resources Board and City Council shall make in order to grant approval of a Mills Act Contract. The required findings are listed below followed by a staff response on how the application meets the requirements.

1. The building is designated as a historic resource by the City and is listed on the Carmel Register.

Staff Response: The resource was added to the Carmel Register on June 6, 1999 and listed on the Carmel Inventory on May 25, 2005. The application meets this finding.

2. The proposed rehabilitation/restoration and maintenance plan is appropriate in scope and sufficient in detail to guide long-term rehabilitation/restoration and maintenance. Required maintenance and rehabilitation should be more significant than just routine maintenance that would be expected for any property.

Staff Response: The applicant submitted a rehabilitation and maintenance plan (Attachment 1, Exhibit C). The plan covers a period of 10 years from 2024-2033 and estimates the total cost of work at $1,114,000. The plan has been compiled by Christopher Barlow, Architect (and qualified professional), and includes rehabilitation and on-going maintenance including structural upgrades; building system upgrades; rehabilitation and maintenance of exterior features, materials, and finishes; and hardscape/landscape projects. All rehabilitation and maintenance work will be performed in conformance with the Secretary of Interior’s Standards for Rehabilitation. All exterior work is subject to Design Study approval and a determination of consistency with the Secretary of the Interior's Standards for Rehabilitation. The proposed plan meets this finding.

3. Alterations to the historic resource have been in the past, and will continue to be in the future, limited to interior work and to exterior rehabilitation and alterations that:
(A) Comply with the Secretary’s Standards (future additions only); and (B) Do not significantly alter, damage or diminish any primary elevation or characterdefining feature; and (C) Do not increase floor area on the property by more than 15 percent beyond the amount established in the documented original or historic design of the resource; and (D) Do not result in any second-story addition to a single-story historic resource.

Staff Response: Regarding 3.(C), which necessitates that past alterations “not increase floor area on the property by more than 15 percent beyond the amount established in the documented original or historic design of the resource” staff has identified two additions of note. For different reasons, neither addition appears to disqualify the Cypress Inn for Mills Act contract eligibility.

In 1949, a two-story volume was added to the southwest corner of the hotel’s original 1929 design. This was documented in Kent Seavey’s DPR 523 form as a significant addition that contributes to the historicity of the resource. Not only does the southwest addition meet the 50-year-old age threshold, but it is significant as “the earliest known Carmel design by noted California architect, Gardner Dailey.” Therefore, as part of the established historic design of the resource, the southwest addition complies with 3.(C) (full code citation is CMC 17.32.100.B.6.c.iii.C).

In 1990, then-owners of the Cypress Inn acquired an adjacent, 4,000-square-foot lot (APN 010-147-009- 000) located immediately north of the hotel (APN 010-147-008-000). In 1999, the Historic Resources Board (then called the Historic Preservation Committee) approved a proposal to redevelop the adjacent north lot to accommodate a hotel restaurant (100 plus seats) and six additional rooms for the Cypress Inn.

The 1999 project plans by Mandurrago, Mandurrago, and Sullivan are titled, “Cypress Inn Addition” and by that time the hotel featured 16,917 square feet of floor area. The north addition added 5,738 square feet of floor area (resulting in a floor area increase of 34%).

While the addition is physically connected to the original hotel and is clearly perceived as an addition, the lots were not merged, and the addition remains on a separate lot of record. In addition to remaining on a separate lot of record, the north addition is not included on the City’s Historic Inventory nor the Historic Register, and it is not recorded as historic with Monterey County. If the two lots had been merged, the Council would need to consider whether the merging of the lots violates 3(C) and thereby disqualifies the hotel from a Mills Act Contract. However, that is not the case in this situation. Staff finds, for the reasons cited above, that the north addition does not disqualify the Cypress Inn under section 3(C).

If the City Council votes to enter into a Mills Act contract for the Cypress Inn, the Monterey County Assessor would calculate the tax benefit on the original Cypress Inn property (APN 010-147-008-000; the property upon which the north addition sits (APN 010-147-009-000) would be excluded.

Regarding finding 3 (A, B, and D), the planned rehabilitation and maintenance work for 2024-2032 will be performed in conformance with the Secretary of Interior’s Standards for Rehabilitation. Any future alterations are required to be consistent with conditions A-D. Minor alterations, as defined in CMC section

17.32.150, may be approved by staff; however, major alterations, as defined in CMC section 17.32.160 would be reviewed by a qualified professional and presented to the Historic Resources Board for review.

The application meets this finding.

4. The Mills Act contract will aid in offsetting the costs of rehabilitating and maintaining the historic resource.

Staff Response: Approval of the contract would assist in offsetting the rehabilitation/restoration and maintenance costs of preserving the Cypress Inn by reducing the tax liability on the property thereby freeing up funds for the necessary work. The application meets this finding.

5. Approval of the Mills Act contract will represent an equitable balance of public and private interests and will not result in substantial adverse financial impact on the City.

Staff Response: Approval of the Mills Act Contract will be consistent with Goal 1-5 and Objective 1-16 of the Land Use & Community Character Element of the General Plan which encourages providing incentives for property owners to preserve and rehabilitate historic resources. Although the adoption of a Mills Act Contract will decrease property tax revenue to the City, this contract represents an equitable balance of public and private interests:
1) The City Council adopted Resolution 2016-068 on September 13, 2016, limiting the number of Mills Act contracts that can be approved to fifteen (15) in any three-year calendar period. No applications were approved in 2020 or 2021, four applications were approved in 2022, two applications were approved in 2023 (L’Auberge and Griffin), and two applications have been approved in 2024 (Lopez 5 NW, LLC and Esperanza Carmel, LLC). No new applications are being accepted at this time. 2) Carmel currently has 292 historic resources, and since the adoption of the Mills Act program in 2004, the City has entered into a total of eighteen Mills Act Contracts. Three Contracts have completed their tenyear maintenance plans and will be issued nonrenewal notices. A fourth contract will complete their ten-year plan at the end of 2024.
3) The City would continue to receive a portion of the property tax revenue and the investment in rehabilitation and maintenance supports local tourism, which benefits both private and public interests. 4) The value of preserving a historic resource offsets the loss of revenue. The investment in rehabilitation/restoration and maintenance of the historic property supports local tourism, which benefits private and public interests.
5) The value of preserving a historic resource is a long-term investment that offsets a temporary loss in property tax revenue.

As previously described, this application is for APN 010-147-008-000; it does not include APN 011-147- 009-000. The contract, if approved by the City Council, would apply only to APN 010-147-008-000.

FISCAL IMPACT:

Fiscal Impact: The City will have a diminished tax base from the property at the northeast corner of Lincoln Street and 7
th Avenue for the term of the contract. The amount is unknown at this point. According to the Office of Historic Preservation, Technical Assistance Bulletin #12, Mills Act Property Tax Abatement Program, because rental values vary from area to area property savings will vary from county to county. It is important to note that County Assessors are required to assess all Mills Act contract properties annually.

Participants may see a fluctuation in property taxes each year.

PRIOR CITY COUNCIL ACTION:

On March 3, 2020, the City Council adopted standard contract language for Mills Act Contracts.

On April 4, 2023, the City Council reviewed the City’s Mills Act Policy and opted not to make any changes.

On October 3, 2023, the City Council continued MA 23-146 to a date uncertain.

On November 7, 2023, the City Council directed the City Attorney to prepare an Urgency Ordinance establishing a moratorium on accepting any new Mills Act contract applications until the policy could be reevaluated. City Attorney Pierik clarified that existing Mills Act applications would be considered under existing rules.

On December 5, 2023, the City Council continued MA 23-103 to a date uncertain. At the December 5, 2023 meeting, the City Council also passed an Urgency Ordinance 2023-008 proclaiming the City will not accept any applications for Mills Act contracts until the City has completed its review of City Mills Act policies. Urgency Ordinance 2023-008 does not apply to MA 23-103 or any of the applications presented at the October 3, 2023 City Council meeting.

On April 2, 2024, because the public hearing notice was not hand-delivered to properties with 100 feet of the subject property as required, the City Council continued MA 23-103 to a date certain: May 7, 2024.

ATTACHMENTS:

Attachment 1) Mills Act Contract
Attachment 2) Exhibit A - Legal Description
Attachment 3) Exhibit B - DPR Form (2003)
Attachment 4) Exhibit C - Maintenance Plan
Attachment 5) 2023-010-HRB_Resolution
Attachment 6) Guidelines for the Assessment of Enforceably Restricted Historical Property Attachment 7) Public Correspondence Received

RECORDING REQUESTED BY

CITY OF CARMEL-BY-THE-SEA

AND WHEN RECORDED MAIL TO

Carmel City Hall
Attn: Community Planning & Building
P.O. Box CC
Carmel-By-The-Sea, CA 93921 This space reserved for the Recorder’s use only

CITY OF CARMEL-BY-THE-SEA

MILLS ACT HISTORIC PROPERTY PRESERVATION CONTRACT
THIS AGREEMENT is made and entered by and between the CITY OF CARMEL-BY-THE-SEA a municipal corporation (hereinafter referred to as “City”), and Sentimental Journey LLC (hereinafter referred to as “Owner”).

RECITALS
(i) California Government Code Section 50280, et seq. (known as the Mills Act) authorizes cities to enter into contracts with the owners of qualified historic properties to provide for their appropriate use, maintenance and restoration such that these historic properties retain their historic characteristics;
(ii) The Owner possesses fee title in and to that certain real property, together with associated structures and improvements thereon, located on the northeast corner of Lincoln Street and 7th Avenue (APN: 010-147-008), Carmel-By-The-Sea, California, (hereinafter referred to as the “Historic Property”). A legal description of the Historic Property is attached hereto, marked as “Exhibit A” and is incorporated herein by reference;
(iii) The property is identified as a historic resource on the City of Carmel-By-The-Sea’s Historic Inventory and Register of Historic Resources and is further described in the DPR 523 Form attached hereto, marked as “Exhibit B” and is incorporated herein by reference;
(iv) City and Owner, for their mutual benefit, now desire to enter into this Agreement both to protect and preserve the characteristics of historical significance of the Historic Property, as it exists at the date of this contract and as described in the City’s Register of Historic Resources, and to qualify the Historic Property for an assessment of valuation pursuant to the provisions of Article 1.9 (commencing with section 439) of Chapter 3 of Part 2 of Division 1 of the California Revenue and Taxation Code.

Attachment 1
NOW, THEREFORE, City and Owner, in consideration of the mutual covenants and conditions contained herein, do hereby agree as follows:

1. INCORPORATION OF RECITALS. All recitals are incorporated into this Agreement.

2. EFFECTIVE DATE AND TERM. This Agreement shall be effective and commence on the date the Agreement is signed by the City, unless otherwise indicated by the County of Monterey, and shall remain in effect for a minimum term of ten (10) years thereafter.

3. AUTOMATIC RENEWAL. Each year, upon the anniversary of the effective date of this Agreement (hereinafter referred to as “annual renewal date”), one (1) year shall be added automatically to the term of this Agreement, unless timely notice of nonrenewal is given as provided in paragraph 4 of this Agreement. The total length of the contract shall not exceed twenty (20) years.

4. NOTICE OF NONRENEWAL. If City or Owner desires in any year not to renew this Agreement, that party shall serve written notice of nonrenewal in advance of the annual renewal date of this Agreement as follows: Owner must serve written notice of nonrenewal at least ninety (90) days prior to the annual renewal date; City must serve written notice of the nonrenewal at least sixty (60) days prior to the annual renewal date.

If notice is not received, the Agreement shall automatically be renewed for another year.

Upon receipt by Owner of a notice of nonrenewal from the City, Owner may make a written protest. At any time prior to the annual renewal date, City may withdraw its notice of nonrenewal.

5. EFFECT OF NOTICE OF NONRENEWAL. If either City or Owner serves timely notice of nonrenewal in any year, and this contract is not renewed, this Agreement shall remain in effect shall remain in effect for the balance of the period remaining since the original execution or the last annual renewal date.

6. FEES. The City may require that the Owner(s) of the Historic Property pay a fee that shall not exceed the reasonable cost of providing services, such as inspections, pursuant to Government Code Section 50281.1 (Article 12 of Chapter 1 of Part 1 of Division 1 of Title 5 of the Government Code), for which the fee is charged.

7. VALUATION OF PROPERTY. During the term of this Agreement, Owner is entitled to seek assessment of valuation of the Historic Property pursuant to the provisions of Chapter 3 of Part 2 of Division 1 of the California Revenue and Taxation Code.

8. PRESERVATION OF PROPERTY. Owner shall preserve and maintain the characteristics of historical significance of the Historic Property and agrees to complete rehabilitation and/or maintenance activities as defined in the Rehabilitation/Restoration and Maintenance Plan attached as “Exhibit C”. Requests for revisions to the Maintenance and Attachment 1
Rehabilitation plan shall be reviewed by the Historic Resources Board prior to implementation. In addition, Owner shall comply with the terms of the City’s Historic Preservation Ordinance (CMC 17.32). Owners shall not be permitted to further impede any view corridor with any new structure, including but not limited to walls, fences, or shrubbery, so as to prevent the viewing of the Historic Property from the public right-ofway.

9. RESTORATION OF PROPERTY. Owner shall, where necessary, restore and rehabilitate the Historic Property to conform to the rules and regulations of the Office of Historic Preservation of the State Department of Parks and Recreation, U. S. Secretary of the Interior’s Standards for Rehabilitation, the State Historical Building Code, and the City of Carmel-by-the-Sea, all as amended.

10. INSPECTIONS. Owner shall allow periodic examinations, at least every five (5) years, with reasonable notice thereof, of the interior and exterior of the Historic Property by representatives of the County of Monterey Assessor and the City of Carmel-By-The-Sea as may be necessary to determine Owner’s compliance with the terms and provisions of this Agreement. The City will coordinate inspections by such other agencies that have jurisdiction and will keep them to the minimum necessary to determinate such compliance.

11. PROVISION OF INFORMATION. Owner shall furnish City with any and all information required by City, in order to determine the eligibility of the Historic Property, and that City deems necessary or advisable to determine compliance with the terms and provisions of this Agreement.

12. ANNUAL REPORT. Owner shall submit an annual report at least 90 days prior to each annual renewal date (October 1st) to the Department of Planning and Building specifying all work that has been done to maintain and preserve the historic resource over the preceding year in compliance with the approved maintenance plan.

13. CANCELLATION. The City has the right to cancel the contract if the owner allows the property to deteriorate to the point that it no longer meets the standards for a qualified historical property. The City also has the right to cancel this contract if the owner(s) breaches the provisions of paragraph’s # 8, 9, 10 or 12 of this Agreement after the City has provided reasonable notice of any failure to comply with the agreement, and a public hearing. Notice of the hearing shall be mailed to the last known address of each owner of the property, with the notice conforming to the provisions of Government Code section 6061., If after notice and a hearing, the contract is cancelled, termination of the Agreement is immediate, and the owner shall pay a cancellation fee equal to 12.5 percent of the current fair market value of the property, as determined by the Monterey County Assessor as though the property were free of the contractual restriction. The cancellation fee shall be paid to the Assessor, at the time and in the manner that the Assessor shall prescribe. City’s right to cancel this Agreement pursuant to this paragraph Attachment 1
shall in no way limit or restrict its rights or legal remedies arising from City’s Historic Preservation Ordinance and Municipal Code.

14. ENFORCEMENT OF AGREEMENT. In lieu of and/or in addition to any provisions to cancel this Agreement as referenced herein, City may specifically enforce, or enjoin the breach of, the terms of this Agreement.

15. WAIVER. City does not waive any claim or default by Owner if City does not enforce or cancel this Agreement. All remedies at law or in equity, which are not otherwise provided for this Agreement or in City’s regulations governing historic properties are available to City to pursue in the event there is a breach of this Agreement. No waiver by City of any breach or default under this Agreement shall be deemed to be a waiver of any other subsequent breach thereof or default hereunder.

16. BINDING EFFECT OF AGREEMENT. Owner hereby subjects the Historic Property to the covenants, reservations and restrictions set forth in this Agreement. City and Owner hereby declare their specific intent that the covenants, reservations, and restrictions as set forth herein shall be deemed covenants running with the land and shall pass to and be binding upon Owner’s successors and assigns in title or interest to the Historic Property. A successor in interest shall have the same rights and obligations under this Agreement as the original owner who executed the Agreement.

Each and every contract, deed or other instrument hereinafter executed, governing or conveying the Historic Property, or any portion thereof, shall conclusively be held to have been executed, delivered and accepted subject to the covenants, reservations and restrictions expressed in this Agreement regardless of whether such covenants, reservations and restrictions are set forth in such contract, deed or other instrument.

City and Owner hereby declare their understanding and intent that the burden of the covenants, reservations and restrictions set forth herein touch and concern the land in that it restricts development of the Historic Property. City and Owner hereby further declare their understanding and intent that the benefit of such covenants, reservations and restrictions touch and concern the land by enhancing and maintaining the cultural and historic characteristics and significance of the Historic Property for the benefit of the public and Owner.

17. NOTICE. Any notice required to be given by the terms of this Agreement shall be provided at the address of the respective parties as specified below, by personal delivery or United States mail, postage prepaid, addressed as follows:

City: Carmel-By-The-Sea
Community Planning & Building Department
Attn: Community Planning & Building Director
P.O. Box CC
Carmel-By-The-Sea, CA 93921
Attachment 1
Owner: Sentimental Journey LLC
PO Box Y
Carmel, CA, 93921
Notice to successors in interest to either party shall be sent to the appropriate address.

In the case of future Owner(s) of the Historic Property, notice shall be sent to the address on file with the county property tax office in power at the time.

18. RECORDATION. No later than twenty (20) days after the parties execute and enter into this Agreement, the City shall cause this Agreement to be recorded in the Office of the County Recorder of the County of Monterey. From and after the time of the recordation, this Agreement shall impart a notice thereof to all persons as is afforded under state law.

19. STATE LAW. The Owner or agent of Owner shall provide written notice of this Agreement to the State Office of Historic Preservation within six (6) months of the date of this Agreement.

20. GOVERNING LAW; VENUE. This Agreement shall be constructed and governed in accordance with the laws of the State of California. Should either party to this agreement bring legal action against the other, the case shall be handled in Monterey County, California and the party prevailing in such action shall be entitled to a reasonable attorney fee which shall be fixed by the judge hearing the case and such fee shall be included in the judgment together with all costs.

21. AMENDMENTS. This agreement may be amended in whole or in part, only by a writtenrecorded instrument executed by the parties hereto.

22. DESTRUCTION OF PROPERTY; EMINENT DOMAIN; CANCELLATION. If the Historic Property is destroyed by earthquake, fire, flood, or other natural disaster such that in the opinion of the City Building Official more than sixty percent (60%) of the original fabric of the structure must be preplaced, this Agreement shall be cancelled because the historic value of the structure will have been destroyed. If the Historic Property is acquired in whole or in part by eminent domain or other acquisition by any entity authorized to exercise the power of eminent domain, and the acquisition is determined by the City Council to frustrate the purpose of this Agreement, this Agreement shall be cancelled.

No cancellation fee pursuant to Government Code Section 50286 shall be imposed if the Agreement is cancelled pursuant to this paragraph. Such Agreement shall be null and void for all purposes of determining the value of the property so acquired.

23. INDEMNIFICATION. Owner shall defend, indemnify, and hold harmless City and its elected officials, officers, agents and employees from any actual or alleged claims, demands, causes of action, liability, loss, damage, or injury to property or persons, including wrongful death, whether imposed by a court of law or by administrative action of any Attachment 1
federal, state or local government agency, arising out of or incident to the direct or indirect use, operation, or maintenance of the Historic Property by Owner or any contractor, subcontractor, employee, agent, lessee, licensee, invitee, or any other person; (ii) Owner’s activities in connection with the Historic Property; and (iii) any restriction on the use of development of the Historic Property, from application or enforcement of the City’s Municipal Code, or from the enforcement of this Agreement.

This indemnification includes, without limitation, the payment of all penalties, fines, judgments, awards, decrees, attorneys’ fees, and related costs or expenses, and the reimbursement of the City, its elected officials, employees, and/or agents for all legal expenses and costs incurred by each of them. Owner’s obligation to indemnify shall survive the termination, cancellation, or expiration of this Agreement and shall not be restricted to insurance proceeds, if any, received by City, its elected officials, employees, or agents.

24. SEVERABILITY. In the event that any of the provisions of this Agreement are held to be unenforceable or invalid by any court of competent jurisdiction, or by subsequent preemptive legislation, the validity and enforceability of the remaining provisions, or portions thereof, shall not be affected thereby.

IN WITNESS THEREOF, the City and Owners have executed this Agreement on the day and year written above.

CITY OF CARMEL-BY-THE-SEA:

By: _______________________ Date: __________________
Richard L. Rerig (“Chip”), City Administrator

PROPERTY OWNER:

Sentimental Journey, LLC
By: __________________________ Date: ___________________ Denny LeVett
Attachment 1

EXHIBIT A

LEGAL DESCRIPTION

EXHIBIT B
DPR 523 FORM

EXHIBIT C

REHABILITATION AND MAINTENANCE PLAN
Attachment 1
The land referred to is situated in the County of Monterey, City of Carmel, State of California, and is described as follows:

Lots 18, 20 and 22 in Block 75, as said Lots and Block are shown on that certain map entitled, Map of “Carmel-by-the-Sea, Monterey County, California”, filed for record March 7, 1907 in the Office of the County Recorder of the County of Monterey, State of California, in Volume 1 of Maps, “Cities and Towns”, at Page 2.

Attachment 2
Attachment 3
Attachment 3
Attachment 3
Property Address: Lincoln St. at Seventh Ave.

Owner Name: Sentimental Journey LLC
Owner Telephone No.: (831) 624-3871
Plan Prepared by: Christopher Barlow AIA, LEED AP, NCARB 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033
$80,000
$95,000
$20,000
$60,000
$50,000
$24,000
$90,000
$80,000
$80,000 $80,000
$110,000
$50,000
$75,000
$10,000 $10,000 $10,000 $10,000
$180,000
$60,000 $130,000 $275,000 $184,000 $90,000 $60,000 $60,000 $85,000 $90,000 $80,000 $60,000 $190,000 $465,000 $649,000 $739,000 $799,000 $859,000 $944,000 $1,034,000 $1,114,000 Major infrastructure upgrade: $80,000
ADA upgrades for public $24,000
Major infrastructure replacemnt: $90,000
Boiler & H2O Softener (Rehab.)
for ADA (Rehabilitation)
$60,000
(Maintenance)
replacement (Rehabilitation)
Mills Act Rehabilitation and Maintenance Plan
Cypress Inn (a.k.a. Hotel La Ribera) Lincoln St. at Seventh Avenue, Carmel CA

STRUCTURAL UPGRADES
Paint all Exterior of all walls $160,000
Investigate plaster cracking
Work Item
(Maintenance/Rehabilitation)

EXTERIOR FEATURES, MATERIALS, AND FINISHES
Plumbing repairs: Replace old
galvanized H2O pipes (Rehab.)
Anticipated Year of Completion
$80,000
Required Fire Alarm upgrades
Termite testing and repairs

ANNUAL TOTAL
Exterior gate, stair, walkway &
Resolve waterproofing issues
(Maintenance)
at existing courtyard planter
door landings ADA work (Rehab.)

HARDSCAPE AND LANDSCAPE

RUNNING TOTAL
Notes: Frequency of repairs continues beyond 2032 based on interval proposed. Dollar amounts will be reviewed at 10 year intervals and adjusted for inflation as appropriate $1,114,000

CUMULATIVE TOTAL
$180,000
City of Carmel
Mills Act Rehabilitation and Maintenance Plan
at tower & repair (Maintenance)
$40,000
$75,000
Electrical distribution (Rehab.)
Cost Estimate
(net per item)
In kind' Roofing repairs and $50,000
$95,000

BUILDING SYSTEM UPGRADES
every 6 years (Maintenance)
Repair/Rehabilitate windows for
egress and acoustics (Rehab.)
$110,000
restrooms (Rehabilitation)
Plumbing repairs: Replace aged $20,000
sewer pipe sections (Rehab.)
Required elevator upgrades $50,000

CYPRESS INN
Lincoln Street at Seventh Avenue
Photos by Julie Barlow for Wald, Ruhnke and Dost Architects (June 29, 2023) Photo #1, Overall main façade looking East from Lincoln Street

Photo #2, Detail: Tilework and Tower looking East from Lincoln Street Attachment 4
Photos #3-4, Plaster/paint damage at Lincoln Street service entrance Photo #5, Typical deterioration of exposed wood at underside of eave (viewed from Lincoln Street)
Attachment 4
Photo #6, Patch over cracking plaster at Lincoln Street façade Photo #7, View of main entry from Lincoln Street (ADA entry is off 7th) Attachment 4
Photo #8, Overall side façade looking North from Seventh Avenue Photo #9, View of tower near courtyard entry at Seventh Avenue Attachment 4
Photo #11 View of rear facade (North side of building is inaccessible) Photo #12, Typical deterioration of single pane metal window (View from 7th Ave) Attachment 4
Photo #13, Concrete and plaster cracking as seen from Seventh Avenue courtyard Attachment 4

CITY OF CARMEL-BY-THE-SEA

HISTORIC RESOURCES BOARD
HISTORIC RESOURCES BOARD RESOLUTION NO. 2023-010-HRB

A RESOLUTION OF THE HISTORIC RESOURCES BOARD OF THE CITY OF CARMEL-BY-THE-SEA

RECOMMENDING THAT THE CITY COUNCIL ENTER INTO A MILLS ACT CONTRACT WITH SENTIMENTAL JOURNEY LLC FOR THE HISTORIC “LA RIBERA HOTEL” LOCATED ON THE NORTHEAST CORNER OF LINCOLN STREET AND 7TH AVENUE (APN 010-147-008).

WHEREAS, on April 14, 2023, Gerard A. Rose, Attorney (“Applicant”) submitted an application on behalf of Sentimental Journey LLC (“Owner”) requesting to enter into a Mills Act contract (MA 23-103, Cypress Inn) described herein as (“Application”) for the historic “La Ribera Hotel” also known as the Cypress Inn; and
WHEREAS, the Application has been submitted for the property located on the northeast corner of Lincoln Street and 7
th Avenue, in the Residential-Commercial (R-C) District (Block 75, Lots 18, 20, 22); and
WHEREAS, the historic “La Ribera Hotel” is already listed on the Carmel Inventory (May 25, 2005) and Carmel Register of Historic Resources (June 6, 1999); and WHEREAS, one of the benefits of being included on the Register is the ability to enter into a Mills Act Historical Property Contract with the City; and WHEREAS, the Applicant is also requesting to enter into a Mills Act contract with the City and in accordance with Carmel Municipal Code (CMC) Section 17.32.100.B.6 (Review Process), the Historic Resources Board shall consider the application and make a recommendation to the City Council to approve, approve with conditions, or deny the application; and WHEREAS, on August 11, 2023 notice of the August 21, 2023 public hearing was published in the Carmel Pine Cone in compliance with State law (California Government Code 65091) and mailed to owners of real property within a 300-foot radius of the project indicating the date and time of the public hearing; and
WHEREAS, on or before August 11, 2023 the Applicant posted the public notice on the project site and hand-delivered a copy of the public notice to each property within a 100-foot radius of the project site indicating the date and time of the public hearing; and WHEREAS, on or before August 18, 2023 the meeting agenda was posted in three locations in compliance with State law indicating the date and time of the public hearing; and DocuSign Envelope ID: 6E909D58-BD94-41B7-AF48-8DBFEEFA590D Attachment 5
Resolution No. 2023-010-HRB

Page 2 of 3 ends

Carmel-by-the-Sea City CouncilMay 7, 2024

Carmel-by-the-Sea City Council
May 7, 2024