Carmel-by-the-Sea City Council
February 3, 2025

CITYOF CARMEL-BY-THE-SEA

CITY COUNCIL AGENDA
Mayor Dale Byrne, Councilmembers Jeff Baron, Hans
Buder, Bob Delves, and Alissandra Dramov
Contact: 831.620.2000 www.ci.carmel.ca.us
All meetings are held in the City Council Chambers
East Side of Monte Verde Street
Between Ocean and 7th Avenues

CITY COUNCIL SPECIAL MEETING
Monday, February 3, 2025
4:30 PM

HYBRID MEETING ATTENDANCE OPTIONS
This meeting will be held in person and via teleconference ("hybrid"). The public is welcome to attend the meeting in person or remotely via Zoom, however, the meeting will proceed as normal even if there are technical difficulties accessing Zoom. The City will do its best to resolve any technical issues as quickly as possible. To view or listen to the meeting from home, you may also watch the live stream on the City's YouTube page at: https://www.youtube.com/@CityofCarmelbytheSea/streams. To participate in the meeting via Zoom, copy and paste the link below into your browser.
https://ci-carmel-ca-us.zoom.us/j/81991221369 Webinar ID: 819 9122 1369 Passcode:
055985 Dial in: (253) 215-8782

HOW TO OFFER PUBLIC COMMENT
The public may give public comment at this meeting in person, or using the Zoom teleconference module, provided that there is access to Zoom during the meeting. Zoom comments will be taken after the in-person comments. The public can also email comments to [email protected]. Comments must be received at least 2 hours before the meeting in order to be provided to the legislative body. Comments received after that time and up to the beginning of the meeting will be made part of the record. 4:30 PM

CALL TO ORDER AND ROLL CALL

EXTRAORDINARY BUSINESS
A. Presentation on Fire Preparedness in the Village (Estimated time - 20 min)

PUBLIC APPEARANCES
Members of the public are entitled to speak on matters of municipal concern not on the agenda during Public Appearances. Each person's comments shall be limited to 3 minutes, or as otherwise established by the Chair.

Persons are not required to provide their names, however, it is helpful for speakers to state their names so they may be identified in the minutes of the meeting. Under the Brown Act, public comment for matters on the agenda must relate to that agenda item and public comments for matters not on the agenda must relate to the subject matter jurisdiction of this legislative body. If a member of the public attending the meeting remotely violates the Brown Act by failing to comply with these requirements of the Brown Act, then that speaker will be muted.

ORDERS OF BUSINESS
A. Discuss City Policy C89-02: City Council Meetings/Orders of Council/Agenda Packets/Minutes of Meeting and Agenda Distribution and provide direction to City Administrator (Estimated time - 10 min)
CONSENT AGENDA (Estimated time - 5 min)
Items on the consent agenda are routine in nature and do not require discussion or independent action. Members of the Council, Board or Commission or the public may ask that any items be considered individually for purposes of Council, Board or Commission discussion and/ or for public comment. Unless that is done, one motion may be used to adopt all recommended actions.

1. January 7 & 13, 2025, Special Meeting Minutes and January 14, 2025, Regular Meeting Minutes

2. December 2024 Monthly Reports

3. December 2024 Check Register Summary

4. Resolution 2025-09 rescinding and replacing Resolution 2024-094, authorizing the City Administrator to establish and adopt the new class specification and salary schedule of Library Associate, adopt revisions to the current Librarian I and II classes and new salary schedules in accordance with Municipal Code 2.52.590(B)

5. Resolution 2025-010 authorizing the consumption of alcohol at the Farmers' Market Third Thursday events in 2025

6. Resolution 2025-011, authorizing the serving of alcohol on public property, and the erection of tents on public property for the Carmel Art Festival

7. Resolution 2025-012 Authorizing a refund of Design Study application fees, associated with DS 24-331 (Susko), in the amount of $1,869.75 to Holdren Lietzke Architecture

ORDERS OF BUSINESS
Orders of Business are agenda items that require City Council, Board or Commission discussion, debate, direction to staff, and/or action.

8. Resolution 2025-013 receiving the Annual Comprehensive Financial Report (ACFR) for the fiscal year ending June 30, 2024 (Estimated time - 60 min)

9. Resolution 2025-014 for a Professional Services Agreement with Conti, LLC, with a not to exceed value of $110,543, to complete Audio/Visual upgrades to the Council Chambers (Estimated time - 10 min)

10. Discussion on establishing a Financial Stewardship Workgroup and an Emergency Preparedness Workgroup (Estimated time - 20 min)

CLOSED SESSION
A. Public Employee Performance Evaluation pursuant to Government Code Section 54957;
Title: City Administrator
PUBLIC COMMENT - limited to items on Closed Session

ADJOURNMENT
This agenda was posted at City Hall, Monte Verde Street between OceanAvenue and 7thAvenue, Harrison Memorial Library, located on the NE corner of Ocean Avenue and Lincoln Street, the Carmel-by-the-Sea Post Office, 5th Avenue between Dolores Street and San Carlos Street, and the City's webpage http://www.ci.carmel.ca.us in accordance with applicable legal requirements.

SUPPLEMENTAL MATERIAL RECEIVED AFTER THE POSTING OF THEAGENDA Any supplemental writings or documents distributed to a majority of the City Council regarding any item on this agenda, received after the posting of the agenda will be available for public review at City Hall located on Monte Verde Street between Ocean and Seventh Avenues during regular business hours.

SPECIAL NOTICES TO PUBLIC
In compliance with the Americans with Disabilities Act, if you need special assistance to participate in this meeting, please contact the City Clerk's Office at 831-620-2000 at least 48 hours prior to the meeting to ensure that reasonable arrangements can be made to provide accessibility to the meeting (28CFR 35.102-35.104 ADA Title II).

CITY OF CARMEL-BY-THE-SEA

CITY COUNCIL
Staff Report
February 3, 2025

ORDERS OF BUSINESS
TO: Honorable Mayor and City Council Members
SUBMITTED BY: Brian Pierik, City Attorney
APPROVED BY: Chip Rerig, City Administrator
SUBJECT:

Discuss City Policy C89-02: City Council Meetings/Orders of Council/Agenda Packets/Minutes of Meeting and Agenda Distribution and provide direction to City Administrator (Estimated time - 10 min)
RECOMMENDATION:

Discuss City Policy C89-02: City Council Meetings/Orders of Council/Agenda Packets/Minutes of Meeting and Agenda Distribution and provide direction to City Administrator.

BACKGROUND/SUMMARY:

Mayor Byrne has requested that this item be presented to the City Council for discussion.

Attached is City Policy C89-02: City Council Meetings/Orders of Council/Agenda Packets/Minutes of Meeting and Agenda Distribution.

Section III of the Policy is entitled “Conduct of City Council Meetings”. Sub-section C is on Meeting Procedures for review of each item on the Agenda (with the exception of Public Hearings). Sub-section C currently reads:

C. Meeting Procedures for review of Each Item on the Agenda (with the exception of Public Hearings):

The Mayor will read the agenda item under discussion.

Staff will present a brief report.

City Council questions of staff
Possible changes to Section III C on the process for considering agenda items could include the following:
(1) Mayor will read the agenda item under discussion.
(2) Mayor will ask if any Councilmember wishes for a staff presentation (3) Mayor will ask staff to present a brief presentation if requested. (4) Mayor will ask City Council if there are any questions for staff (5) Mayor will ask for Public Comment in chambers and then remote (6) Mayor will ask Council for discussion.
(7) Mayor will ask Council to take action for an action items including motions, resolutions, ordinances and requests for direction to staff.

Regarding Step (2) on requesting a staff presentation, the thought is that the Agenda packet for the Council meeting was posted with all Staff Reports at least 72 hours prior to the Council meeting so the Council and public have had an opportunity to review the Staff Reports and there may not need to be a staff presentation on the item unless a Councilmember requests a presentation. The request could be for a full presentation by staff or only a presentation on certain points within the Staff Report.

Section II B of the Policy is entitled “Orders of City Council Business”, which includes a subheading on “Public Appearances”.

Possible changes to Section II B “Public Appearances” could be adding a 3rd paragraph to include the following:

Under the Brown Act, public comments for matters on the agenda must relate to that agenda item and public comments for matters not on the agenda must relate to the subject matter jurisdiction of this legislative body. If a member of the public attending the meeting remotely violates the Brown Act by failing to comply with these requirements of the Brown Act, then that speaker will be muted.

This language could be added to confirm the scope of public comment permissible under the Brown Act.

Next Steps
If the Council finds that one or more of the changes described to Policy C89-02 are appropriate, then staff can return to the Council at the March meeting with a revised Policy C89-02 incorporating those changes.

FISCAL IMPACT:

No direct fiscal impact for this action.

PRIOR CITY COUNCIL ACTION:

Adoption of Policy/Procedure No. C89-02 and revisions on March 2, 2009; June 2012 (Resolution No. 2012-33) and October 6, 2020 (Resolution No. 2020-063).

ATTACHMENTS:

Attachment 1) City Policy C89-02: City Council Meetings/Orders of Council/Agenda Packets/Minutes of Meeting and Agenda Distribution

CITY OF CARMEL-BY-THE-SEA

POLICY AND PROCEDURE
I Effective Date: 2 August 1988 I Authority: Resolution No. 88-89 Subject: City Council Meetings/Orders of
Council/Agenda Packets/Minutes of
Meeting and Agenda Distribution I
Policy/Procedure No: C89-02
Purpose:

To provide a guide for the City Council and staff for the conduct of public meetings, agenda and minute preparation and distribution of agenda packets.

Policy/Procedure:

1. Adoption of action minutes as outlined in the attached memorandum from the League of California Cities .

2. Adoption of City Clerk's policy regarding agenda packets (No packets shall be disseminated until the packets are made available to the City Council).

3. Adoption of the sequence of the Orders of Council as set forth in the policy attached.

Responsible Party:

City Administrator/City Clerk
Department of Origin:

Administration/City Council
Revision Dates:
2 March 2009 (28 October 2008 Council Retreat)
5 June 2012 (Resolution No. 2012-33)
6 October 2020 (Resolution No. 2020-063)
Rescinded Date :

Resolution 2020-063

C89-02

CITY OF CARMEL-BY-THE-SEA

CITY COUNCIL

RULES AND PROCEDURES
The City Council is composed of five members: Mayor and four Council Members. The Mayor serves a twoyear term and members of the City Council serve four year terms.

I. ELECTED OFFICIALS
A. Mayor (directly elected since 1978)
The Mayor is the chair of the meeting and, as such, presides at all Council meetings. As the titular head of the City Council, the Mayor represents the City at quasi-governmental and social functions and may represent the City Council before other governmental bodies on specific matters as may be authorized by the City Council.

B. Mayor Pro Tempore
The Mayor Pro Tempore is appointed by the Mayor in December or at the first meeting after the City Council is seated following an election. This appointment is announced by the Mayor, but does not need to be ratified by the City Council. In the absence of the Mayor, the Mayor Pro Tempore shall chair the City Council meetings and may attend social/quasi-governmentalfunctions on behalf of the City.

C. Absence of both the Mayor and Mayor Pro Tempore
In the absence of both the Mayor and Mayor Pro Tempore, members of the City Council shall appoint an acting Mayor Pro Tempore, who shall have the powers and duties of the Mayor Pro Tempore as described above.

II. CITY COUNCIL MEETINGS
City Council meeting dates and types (e.g. Regular, Special, Closed Session, Tour of Inspection) are regulated by Chapter 2 of the Municipal Code.

A. Agenda
Only items that are agendized may be acted on at any Council meeting. • Agenda Preparation
The draft agenda is prepared by the City Administrator and City Clerk with the input of all department directors and is reviewed at weekly staff Management meetings. • Agenda Finalization
The Mayor and Mayor ProTempore meet with theCity Administrator and City Clerk prior to the meeting to finalize the draftagenda.

Resolution 2020-063

C89-02
• Continuance of Agenda Item
Any City Council member who is ill or will be away from the City may request, in writing, that an item of "personal interest" or a "major issue" be continued to the next meeting. The City Council shall vote on the issue of continuance.
• AgendaPosting
The Agenda is posted (City Hall, Main Library and Post Office bulletin boards and on the City Website) 6 days prior to a regular meeting and a minimum of 24 hours prior to a Special Meeting.

B. OrdersofCityCouncilBusiness
The Orders of City Council business are adopted by Resolution of the City Council. The Orders of City Council Business are:
• Extraordinary Business
This category allows the City Council to recognize volunteers, employees, present certificates of appreciation and awards.
• Announcements from City Council Members & City Administrator This category allows an opportunity for City Council Members to comment on meetings attended of outside agencies and the City Administrator to give a brief report to the City Council and receive presentations that require little or no action.
• Public Appearances
The public has opportunities to speak to the City Council. The Public Appearances section allows persons to speak a maximum of three minutes, or as otherwise established by the City Council, on items of City business, other than those scheduled agenda items. Matters not appearing on the City Council's agenda will not receive action at that meeting but may be referred to staff for a future meeting or resolution outside of a City Council meeting. The City Council reserves the right to limit the duration of the Public Appearances section of the agenda to thirty minutes total.

Members of the public are entitled to directly address the City Council concerning any item that is described in the notice of the City Council meeting during consideration of that item. Public comments or testimony on agenda items other than Public Appearances shall be limited to a maximum of three minutes per speaker. • Consent Agenda
Consent Agenda items will be voted on in one motion unless removed. The Consent Agenda consists of routine and non-controversialCity matters that can be as a whole approved by a single majority vote. Any City Council Member or member of the public may ask to have an item pulled from the Consent Agenda for discussion. Such items are normally moved to the end of the meeting.

Resolution 2020-063

C89-02
If a City Council Member has a question for information only about a Consent Agenda item, the Member should ask prior to the meeting, rather than pulling the item for discussion during the meeting.

Corrections to the Minutes are given to the City Clerk prior to the meeting so that corrections can be made prior to their adoption.
• Orders of Council
Ordersof Councilincludereportsof committee/commissions,ordinances andresolutions, public hearings, reports of officials, unfinished business, and council matters.

Public Hearings consist of zoning amendments, General Plan amendments, appeals of Commission decisions and other items mandated by the State. If the Public Hearing is an appeal, appellants are allowed a total of 10 minutes to speak on their own behalf after the staff report and at the close of public comment in order to have the opportunity to rebut public comments. Other speakers will be allowed three minutes. Formal Public Hearings must be advertised pursuant to State and Government Codes.

Ordinances are the most binding form of action the City Council can take. They are codified as the Municipal Code of the City of Carmel-by-the-Sea which is the municipal law of the City. The City Council has authority to pass ordinances through Government Code Section 37100, as long as these ordinances do not conflict with the laws and Constitution of the State of California or of the United States. Ordinances require two readings and do not become effective until 30 days after the second reading, unless it is an Urgency Ordinance A resolution is a formal form of a motion normally utilized to set forth policy of the City . Each resolution, in addition to being referenced by number and brief title in the minutes, will be recorded as provided by law and maintained in numerical sequence as a permanent record of the City in a separate set of books. Resolutions are used for various reasons, such as when specifically required by law, when needed as a separate evidentiary document to be transmitted to another governmental agency, or where the frequency of future references back to its contents warrants a separate document to facilitate such future reference and research.

Ill. CONDUCT OFCITYCOUNCIL MEETINGS
A. GeneralProcedure
It is the policy of the Council not to become involved in entanglements over parliamentary procedure.

Pursuant to the Municipal Code, the Chair shall have authority to prevent the misuse of motions, or the abuse of any privilege, or obstruction of the business of the Council by ruling any such matter out of order. The Mayor will assist the Council to focus on the agenda, discussions and deliberations. He/she has been delegated the responsibility to control the debate and order of the speakers.

B. Questions Addressed to a Council Member
With the concurrence of the Mayor, a Council Member holding the floor may address a question to another Council Member. That Council Member may respond while the floor is still held by the Council Member asking the question.

Resolution 2020-063

C89-02
Council Members will limit their comments to the subject matter, item or motion being currently considered by the Council. They will govern themselves as to the length of their comments or presentation.

C. Meeting Procedures for review of Each Item on the Agenda (with the exception of Public Hearings:
• The Mayor will read the agenda item under discussion. • Staff will present a brief report.
• City Council questions of staff.

Upon recognition by the Mayor, Members of City Council may ask questions of the staff prior to opening of the discussion to membersoftheaudience.

D. Public input/oral presentations
Any member of the public wishing to address the Council orally on a specific agenda item may do so when the item is taken up by Council, or as otherwise specified by the Council or its presiding officer. Oral presentations are limited to three minutes, unless otherwise provided.

Persons who anticipate oral presentations exceeding three minutes are encouraged to submit comments in writing to the City Clerk, by the Tuesday prior to the meeting so they may be included in the agenda packet. In order to expedite matters and to avoid repetitious presentations, whenever any group of persons wishes to address Council onthe same subject matter,the presidingofficer may request that a spokesperson be chosen by the group. A specified time limit also may be set for the total presentation for any group. • Close of PublicComment
Once public comment is closed, it cannot be reopened unless Council agrees by consensus. • Staff response to questions from the public.

Based on staff responses to the public, members of the City Council may wish to address further questions to staff.
• The Mayor/City Administrator/Attorney shallremind the City Council of the action before Council. • City Councildiscussion
• CityCouncil action/motions
Before a motion can be considered or debated, it must be seconded. Once the motion has been properly made and seconded, the Chair shall open the matter for discussion offering the first opportunity to the moving party and, thereafter, to any City Council Member properly recognized by the Chair. Once the matter has been fully discussed and the Chair calls for a vote, no further discussion will be allowed.

Council Members may be allowed to explain their vote briefly for the record. Once a vote is taken, all Council Members shall support the action taken.

Resolution 2020-063

C89-02
• Substitute motions
When a motion is on the floor, any member of City Council may make a substitute motion. If the substitute motion is seconded, it shall be acted upon prior to acting on the main motion. • Tie votes
A tie vote results in a failed motion. In such an instance, any member of the Council may offer a motion for further action. If there is no action by an affirmative vote, the result is no action. If the matter involves an appeal and an affirmative vote does not occur, the result is that the decision appealed stands as decided by the decision-making persons or body from which the appeal was t aken. • Motions toreconsider
Motions to reconsider a matter may be made at the same meeting or at the next succeeding meeting following a Council action for reconsiderati on. Such motions must be made by a Council Member voting in favor of the original motion.
• Staff announcement of decision
The Mayor, City Administrator,City Attorney, or City Clerk shall announce the vote and passage orfailure of an item.

E. MeetingProcedureforformalAppeals/PublicHearings
When a matter for public hearing comes before the City Council, the Mayor shall inquire if there are any persons present who desire to speak on the matter which is to be heard or to present any evidence regarding the matter.

The procedure for holding City Council appeals differs from other items where the public is allowed to speak in that appellants are allowed to have 10 minutes to make a presentation, including closing comments. The public testimony follows, after which the appellants are given an opportunity for rebuttal or closing arguments .
• Public comments/discussion
No person will be permitted during the hearing to speak about matters or present any evidence that is not germane to the matter being considered. A determination of relevance shall be made by the Mayor or City Attorney, but may be appealed by any Member of the City Council.

F. Minutes of Meeting Policy (C89-02)
The Minutes of the City Council meeting are action minutes and do not reflect City Council commentary and discussion. However, if a Council Member wishes to include comments in the record, they will be included if so requested at the meeting (e.g. "for the record, I wish to state..."). All motions made, even those made without a second are to be included in the minutes.

Resolution 2020-063

C89-02
• Items entered into the record
Allagenda items/documentation/correspondencereceived at a Council meeting shall be retained in the City’s records.
• Distribution
The minutes shall be distributed to members of the City Council for comment and/or correction in the Council packet. The City Clerk will correct the minutes prior to the meeting, and if the correction is substantive, copies of the corrected minutes shall be distributed to all members of the Council.

G. OfficialRecordingsoftheMeeting
All City Council meetings are recorded. This ensures accuracy of the minutes and provides a temporary record of the City Council proceedings. Once the minutes are approved, legally, the recordings do not have to be retained. However, recordings of the Council meetings; Planning Commission meetings, and recordings of other commissions/boards shall be retained pursuant to the City’s adopted Retention Schedule.

Amended: October 6, 2020
Resolution 2020-063

Attachment 1
C89-02

COUNCIL MINUTES
A. PREFACE
City Clerks in general law cities are specifically required to keep a record, journal or minutes of the council meetings (Gov. C. 36814, 40801). Cities governed by freeholder's charters are usually subject to the same requirement s. Although there is no legal necessity to do so, it is appropriate to mention, introductorily, in the minutes that the meeting was convened and held as noticed.

B. PURPOSE OF COUNCIL MINUTES
A most important principle of corporation law, applicable to private, public, and municipal corporations, is that such organizations can only act through their officers and employees. These corporations are governed by fixed rules found in the basic law of the organization; in charter and state statutes in the case of municipal corporations.

When these factors are considered, the keeping of a good record of council proceedings becomes obvious. A sufficient record must be kept to furnish evidence that the City Council has complied with the law or rules by which it is governed, thus pointing to the need for accurate and clear records of council proceedings. Finally, if accurate, complete, and unambiguous minutes of City Council meetings are recorded, these facts themselves will be treated as conclusive evidence of the facts therein stated.

C. FORM AND CONTENTS OF COUNCIL MEETING MINUTES

1. Standard Forms:

Use of standardized format is recommended to develop uniformity on minute entries and to save time in composing the record.

2. Jurisdictional Matters
To establish proof that jurisdictional requirements for holding a meeting have been complied with, it is important that minutes contain the following:
a. Date, hour, and place of meeting.
b. Whether it is a regular, adjourned, or special meeting. c. A proper notice has been given if it is a special meeting. d. The names of council members in attendance (in case a council member arrives late, or departs before adjournment, the minutes should show the time of arrival and/or departure at that point in the proceedings).

3. Approval of Minutes of Previous Meetings
Although there is no legal requirement that minutes be approved by the City Council, this traditional procedure is advisable as it lends further weight to the accuracy and completeness of the record. It is recommended that the City Council be furnished copies of minutes in sufficient time prior to a City Council meeting to avoid any necessity of reading of the minutes by the clerk. When approved as written, or as changed by the City Council, the minutes are considered to be official.

Resolution 2020-063

C89-02

4. Record of Action Taken
The minutes need only record:
a. Petitions and communications

1. Date of the document

2. Subject

3. Authors, if only a few

4. Number of signers, if numerous

5. Action taken
The minutes need not record the comments made by members of the City Council concerning the merit or lack of merit of the petition or requests contained in the document, unless expressly requested by the officer making such comment. The reason for the latter observation is that the document speaks for itself, and it has no legal significance until the City Council acts or refuses to act with respect thereto.
b. Consideration of bids

1. Record of bids filed and opened
a. The subject matter of the bids
b. The compliance with all requirements for the advertising for such bids. c. The names of all bidders, and the total amounts of their respective bids.

2. Action taken with respect to bids.
a. It is preferable that a resolution, prepared or approved by the City Attorney, be used in awarding contracts to the successful bidder. When this is done, the minutes need only refer to the resolution in recording the action taken. b. If the City Council determines to accept a bid which is not the lowest in amount, it is advisable that the minutes show that such bid was "the lowest reasonable bid".

Whether the minutes should include a record of the matters leading to the determination of "responsibility" is a decision clerks might well review with their City Attorneys.
c. Ordinances and resolutions

1. Introduction
The information which should be recorded in City Council minutes, with respect to the introduction of an ordinance, depends upon the particular rules or practices of each city on the subject. Thus, if the practice requires that before an ordinance or resolution can be acted upon, it shall be introduced by one City Council Member, and seconded by another, this information should be recorded in the minutes.

Generally speaking, minutes should record the following data concerning the introduction of an ordinance or resolution:

Resolution 2020-063

C89-02
aa. The title or subject matter
bb. The names of the City Council Members introducing and seconding

2. Compliance with jurisdictionalrequirements prior to action taken on ordinances or resolutions
Whenever the basic law or rules of a city require that a certain procedure must be followed prior to any action taken in adopting an ordinance or resolution, the minutes should show such compliance. This would include a statement referring to the previous introduction of the ordinance and would include a reference on an urgency ordinance that it is an urgency ordinance.

3. Votes cast for or against adoption of ordinances and resolutions aa. Presumption of validity of ordinances and resolutions. There is a presumption in favor of the due and regular adoption or rejection of a city ordinance or resolution, if there are any official records to support that presumption, and that the votes were cast in substantial accordance with the requirements of the law or regulations pertaining to such matters.

This is particularly true where the ordinance or resolution contains a certificate signed by the mayor and/or clerk.
bb. Voting procedure governing adoption of ordinances and regulations (See Chapter VI on legislative Procedures)
d. Reportsofofficers

1. . Written reports
Since any written record is the best evidence of its contents, a written report presented at a City Council meeting need only be mentioned in the minutes by reference to:
aa. Name or title of the officer
bb. Date of the report
cc. Subject or title of report
dd. Disposition made of report, if any
Resolution 2020-063

Attachment 1

CITY OF CARMEL-BY-THE-SEA

CITY COUNCIL
Staff Report
February 3, 2025
CONSENT AGENDA (Estimated time - 5 min)
TO: Honorable Mayor and City Council Members
SUBMITTED BY: Nova Romero, City Clerk
APPROVED BY: Chip Rerig, City Administrator
SUBJECT:

January 7 & 13, 2025, Special Meeting Minutes and January 14, 2025, Regular Meeting Minutes
RECOMMENDATION:

Approve Draft Minutes.

BACKGROUND/SUMMARY:

The City Council routinely approves minutes of its meetings.

FISCAL IMPACT:

None.

PRIOR CITY COUNCIL ACTION:

None
ATTACHMENTS:

Attachment 1) January 7, 2025, Special Meeting Minutes
Attachment 2) January 13, 2025, Special Meeting Minutes Attachment 3) January 14, 2025, Regular Meeting Minutes

CITY OF CARMEL-BY-THE-SEA

CITY COUNCIL

SPECIAL MEETING MINUTES
Tuesday, January 7, 2025

CALL TO ORDER AND ROLL CALL
Mayor Byrne called the meeting to order at 4:30 pm.

Roll call: Councilmembers Jeff Baron, Hans Buder, Bob Delves, Alissandra Dramov, and Mayor Dale Byrne were present.

PLEDGE OF ALLEGIANCE
Mayor Byrne led the pledge of allegiance.

PUBLIC APPEARANCES
Julia Norman
Sara Hinds
Mattew Richardson
No name
Neal Kruse
Sylvia
Gail
Bryan Rosen
Catherine
Richard Kreitman
Craig Rose
TRW

ORDERS OF BUSINESS
Item 1 - Appointment of Mayor Pro Tempore for 2025
Mayor Byrne appointed Councilmember Delves as the Mayor Pro Tempore for 2025.

Item 2 - Discussion on Council Appointments to Ad Hoc Committees and potential appointments Mayor Byrne gave a brief presentation summarizing of purpose and scope of Ad Hoc Committees.

He made a recommendation to terminate all existing standing committees, and form new ones if needed.

Public Comment:

Donna Jett
Tim Twomey
Cari White
Attachment 1
City Council Special Meeting Minutes – January 7, 2025

Council gave consensus direction to terminate all of the existing ad hoc committees, and create ad hoc committees on an as needed basis.

Item 3 - Resolution 2025-01 confirming Councilmember appointments to outside agencies for 2025
City Clerk Romero gave a brief introduction of the item, stating that the beginning of each year, or as necessary, the Council makes appointments to outside agencies. She added that the Resolution Exhibit A in the agenda packet lists the proposed appointments to the various outside agencies.

Public Comment:

Neal Kruse
Bryan Rosen
Mayor Byrne said he would like to make a change to the proposed list of appointees, to appoint Mayor Pro Tem Delves as the primary representative for Carmel on TAMC and the Monterey Peninsula Regional Water District Policy Advisory Committee (MPRWD PAC). Councilmember Baron said he has been deeply involved in TAMC over the years and would like the opportunity to be the primary representative. Mayor Pro Tem Delves said he agrees with the Mayor’s request for him to serve as primary on TAMC.

Motion by Councilmember Buder to approve Resolution 2025-01 as presented with the amendment to appoint Mayor Pro Tem Delves as the primary representative to TAMC and MPRWD PAC, seconded by Councilmember Dramov, and approved 4-1-0-0 by the following roll call vote:

AYES: Councilmembers Buder, Dramov, Delves, and Mayor Byrne NOES: Councilmember Baron
ABSENT: None
ABSTAIN: None
Council took a recess at 5:50 p.m. Council resumed the meeting at 6:01 p.m.

Item 4 - Fiscal Year 2024-2025 Mid-Year Budget Report and Resolution 2025-02 Approving FY 2024-2025 Adopted Budget Amendments
Assistant City Administrator Swanson introduced Finance Manager Jayme Fields, who gave a presentation on the FY 24-25 budget and proposed budget amendments.

Councilmember Dramov inquired about potential cost-sharing with Pebble Beach for the San Antonio Pathway project. City Administrator Rerig confirmed that Mayor Byrne will soon be meeting with a Pebble Beach representative to discuss this possibility. She asked about the the upcoming expiration of the three-year reduced police staffing model. Mr. Rerig noted that contract negotiations with the Police Officers Association will begin shortly.

Attachment 1
City Council Special Meeting Minutes – January 7, 2025

Councilmember Buder raised a question about the practice of fully funding Capital Improvement Projects (CIPs) annually, despite multi-year project timelines. Finance Manager Fields explained that this approach ensures adequate funding for projects and prevents project delays due to unforeseen budget shortfalls. He asked about the estimated $950,000 repair cost for the Sunset Center retaining wall, questioning if it’s a 10-year or 30-year solution, given the uncertainty surrounding the future parking lot uses. Mayor Byrne said he’s not comfortable approving almost a million dollars to repair 1 retraining wall and would like to look into alternatives to keep the cost down. Project Manager Hernandez emphasized the urgent need for repair due to the failing wall condition. City Administrator Rerig stated that staff will explore potential cost-saving measures for the project and emphasized that the Sunset elevator project is time sensitive for safety and accessibility reasons.

Public Comment:

Maria Ruess
Council discussion resumed. Mayor Pro Tem Delves expressed concern that the current budget presentation may not accurately reflect the City's actual spending, as CIP budgets rarely come close to spending what is budgeted for each fiscal year. He advocated alternative CIP forecast methods, more frequent budget updates, and a stronger focus on budget outcomes. He also requested information on the City's actual property tax revenue and proposed the creation of a potential finance standing committee to facilitate more in-depth budget discussions.

Councilmember Buder agreed with the idea of a finance standing committee, and Mayor Byrne suggested it be added to a future meeting agenda for discussion. Finance Manager Fields said that the City is researching the City’s share of property tax revenue with the County and will present findings on the City’s website.

Councilmember Baron pointed out that the $500,000 allocated for the Shoreline Coastal Engineering study comes from a grant specifically earmarked for planning purposes and cannot be used for construction. He suggested approving the $50,000 budget adjustment toward the elevator repairs at the Sunset Center. He said regarding the retaining wall project, perhaps there are some cost savings if the city opts to not use expensive materials, such as Carmel stone.

Mayor Byrne suggested the budget decision on the Sunset Center retaining wall be postponed until more detailed cost saving measures can be explored.

Motion by Councilmember Baron to approve the Reso 2025-02, to approve the budget adjustments as proposed with the exception of modifying the Sunset elevator repair amount to $50,000, decrease the expected tax revenue to $745,000, and eliminate the $900,000 Sunset Center wall budget adjustment, and revisit the wall at a future budget meeting, seconded by Councilmember Dramov, and approved 5-0-0-0 by the following roll call vote:

AYES: Buder, Baron, Delves, Dramov, and Mayor Byrne
NOES: None
ABSENT: None
ABSTAIN: None
Attachment 1
City Council Special Meeting Minutes – January 7, 2025

Item 5 - Receive a Status Report on the Police Building Renovation Project, review the Conceptual Design for renovating and expanding the Police and Public Works building on the existing site, and provide direction to staff
Police Chief Tomasi presented draft plans for renovating the Police Department and Public Works facilities at the existing site, emphasizing the architect’s creative approach to meet the operational needs of both departments. Police Building Project Consultant, Fred Meuer, stated that if the renovation project is approved the project would be phased to minimize disruption to PW and PD operations during construction.

Councilmember Baron asked whether the estimated $30 million project cost includes purchasing additional property for a new PW yard. Mr. Meuer clarified that the $30 million is a preliminary estimate that does not yet include the cost of acquiring a new PW yard site, as the location has not been determined. Councilmember Buder asked if any compromises to PD needs were made by the architect to accommodate the renovation plans. Chief Tomasi confirmed that the architects were able to design a solution that meets all the operational needs of the Police Department within the existing site.

Public Comment:

Donna Jett
Neal Kruse
David O’Neil
Craig Rose
Stacy Steele
Karyl Hall
Cindy Lloyd
Councilmember Baron voiced reservations about the feasibility of renovating the existing site, citing increasing costs due to the inherent constraints of the current location. He recalled his previous vote against solely pursuing renovation and emphasized the need to thoroughly explore the option of constructing a new building on an alternate site to make an informed decision. Baron also questioned the necessity of acquiring additional land for the Public Works yard, given the current use of Rio Park, and suggested exploring potential cost-saving measures, such as eliminating the firing range. Councilmember Buder agreed with Councilmember Baron’s concerns.

Councilmember Dramov expressed concerns regarding public feedback she has received regarding the project's escalating scope and costs. She advocated prioritizing immediate needs and raised questions about how the city plans to fund a $30 million project. Mayor Pro Tem Delves expressed concern that the project's focus may have shifted disproportionately towards improving Public Works facilities, potentially overshadowing the needs of the Police Department. Mayor Byrne said agreed with the issues raised by all Councilmembers.

Council directed staff to schedule a community meeting within the next few weeks to discuss the Police Department Building Project further and receive public input.

Attachment 1
City Council Special Meeting Minutes – January 7, 2025

ADJOURNMENT
Council adjourned the meeting at 8:28 p.m.

APPROVED: ATTEST:
_____________________________ ________________________________ Dale Byrne, Mayor Nova Romero, MMC, City Clerk
Attachment 1

CITY OF CARMEL-BY-THE-SEA

CITY COUNCIL

SPECIAL MEETING MINUTES
Monday, January 13, 2025
TOUR OF INSPECTION - 4:00 PM
Prior to calling the meeting to order, the Council conducted an on-site tour of inspection of the property listed below:

A. Southeast Corner of Torres Street and 5th Avenue, Carmel (PERM EN 23-077 - Givens) CALL TO ORDER AND ROLL CALL - 4:30 PM
Mayor Byrne called the meeting to order at 4:30 p.m.

Roll call: Councilmember Jeff Baron, Hans Buder, Alissandra Dramov, and Mayor Dale Byrne were present. Mayor Pro Tem Delves was absent.

Mayor Byrne said that his father passed away recently. He shared that his brother had presented him with his grandfather's hammer, a cherished family heirloom, to use as his gavel during City Council meetings. Mayor Byrne then requested that the meeting be adjourned in memory of his father, Charles Lee Byrne.

PUBLIC APPEARANCES
Sara
James
Ken White
Andi Carr

CONSENT AGENDA
Mayor Byrne pulled consent agenda items #1-5 for a separate vote and discussion and gave a brief summary of what the consent agenda item is and how the Council votes to approve these items.

Agenda 1 - December 2 & 9, 2024, Special Meeting Minutes and December 3, 2024, Regular Meeting Minutes
Public Comment: None
Attachment 2
City Council Special Meeting Minutes – January 13, 2025

Motion by Councilmember Dramov to approve the meeting minutes, seconded by Councilmember Baron, and approved 4-0-1-0 by the following roll call vote:

AYES: Councilmembers Baron, Buder, Dramov, and Mayor Byrne NOES: None
ABSENT: Mayor Pro Tem Delves
ABSTAIN: None
Item 2 - November 2024 Monthly Reports
Public comment: none
Motion by Councilmember Baron, to approve the November 2024 monthly reports, seconded by Councilmember Dramov, and approved 4-0-1-0 by the following roll call vote:

AYES: Councilmembers Baron, Buder, Dramov, and Mayor Byrne NOES: None
ABSENT: Mayor Pro Tem Delves
ABSTAIN: None
Item 3 - November 2024 Check Register Summary
Public comment: none
Motion by Councilmember Baron, to approve the November 2024 Check Register Summary, seconded by Councilmember Buder, and approved 4-0-1-0 by the following roll call vote:

AYES: Councilmembers Baron, Buder, Dramov, and Mayor Byrne NOES: None
ABSENT: Mayor Pro Tem Delves
ABSTAIN: None
Item 4 - Resolution 2025-03 adopting the Fiscal Year 2025-2026 budget schedule City Administrator Rerig summarized that the Municipal Code requires that at the beginning of every year the Council adopts a budget meeting schedule leading up to the July 1st budget adoption deadline. He announced that Councilmember Baron will be out of town for a couple weeks in March Councilmember Baron and suggested moving the special meeting on the 5-Year Capital Improvement Plan (CIP) and Financial Forecast from the week of March 10th to the week of March 24th. He added that the budget meeting schedule should note that the Planning Commission will review the approved CIP project list the week of May 14th as part of the budget meeting cycle.

Public Comment: None
Attachment 2
City Council Special Meeting Minutes – January 13, 2025

Motion by Councilmember Baron, to approve Resolution 2025-03 as presented with the exception that the 5-year CIP forecast meeting be held week of March 24, and note that the Planning Commission will review the CIP project list the week of May 12th, seconded by Councilmember Buder, and approved 4-0-1-0 by the following roll call vote:

AYES: Councilmembers Baron, Buder, Dramov, and Mayor Byrne NOES: None
ABSENT: Mayor Pro Tem Delves
ABSTAIN: None
Item 5 - Resolution 2025-04, Authorizing one (1) free use day of the Sunset Cultural Center theater and lobby for the 2025 AIM Ideas Lab Youth Presentation and Awareness Design Challenge Reception
Mayor Byrne pulled the item from consent and invited Mark Stillwell from AIM to briefly present their Youth Mental Health event. Mr. Stillwell provided an overview of AIM, including its mission and focus on raising awareness about youth mental health challenges. Connie Cumming also shared information on how the public can contribute to AIM.

Public comment:

Andi Carr
Motion by Councilmember Baron, to adopt Resolution 2025-04 authorizing a free use day of the Sunset Center for AIM Youth Mental Health, seconded by Councilmember Buder, and approved 4-0-1-0 by the following roll call vote:

AYES: Councilmembers Baron, Buder, Dramov, and Mayor Byrne NOES: None
ABSENT: Mayor Pro Tem Delves
ABSTAIN: None

ORDERS OF BUSINESS
Item 6 - Resolution 2025-05 authorizing the City Administrator to execute a multi-year contract with MoGo Express for the delivery of mail from the Post Office to recipients within the City for a new not to exceed amount of $270,000, granting the contract through June 30, 2025, with options to extend annually thereafter
Finance Manager Fields gave a presentation summarizing the history of mail delivery service, and presented a proposal to execute a new multi-year contract with MoGo Express for mail delivery services, highlighting immediate cost savings. She added that tonight the recommendation is to enter into a new agreement with MoGo, and that further discussion regarding the long-term provision of this service should be discussed at a future meeting.

Public comment:

Sara
Andi Carr
Attachment 2
City Council Special Meeting Minutes – January 13, 2025

Councilmember Buder expressed concern about subsidizing mail delivery costs for residents who can afford the service and suggested adding income eligibility requirements to apply for this service, while Councilmember Baron opposed this idea. Councilmember Dramov advocated for maintaining the current service for residents with medical necessity. Councilmember Baron proposed reducing delivery frequency to three days per week to potentially save 20% on costs.

Mayor Byrne suggested that he and Councilmember Buder explore alternative solutions and cost saving measures as an informal ad hoc committee, and Buder agreed. Councilmember Baron supported authorizing the current contract through the end of June, followed by negotiations with the vendor to reduce costs rather than switching providers again.

Motion by Councilmember Buder, to approve Resolution 2025-05 to execute a contract with MoGo Express for mail delivery services with the option to renew annually, and have Mayor Byrne and Councilmember Buder research means testing and explore reducing delivery to 3 days a week to lower costs, seconded by
approved 4-0-1-0 by the following roll call vote:

AYES: Councilmembers Baron, Buder, Dramov, and Mayor Byrne NOES: None
ABSENT: Mayor Pro Tem Delves
ABSTAIN: None

CLOSED SESSION
City Attorney Pierik read the closed session title.

A. CONFERENCE WITH LABOR NEGOTIATORS PURSUANT TO GOVERNMENT CODE SECTION 54957.6:

Agency Designated Representatives: Assistant City Administrator Brandon Swanson, Senior HR Analyst Marisa Bermudez, Police Commander Todd Trayer, and Police Chief Paul Tomasi Employee Organization: Carmel Fire Ambulance Association Public comment: None

ADJOURNMENT
Council moved to Closed Session at 5:40 p.m., and adjourned at 6:30 p.m. The meeting adjourned in memory of Charles Lee Byrne.

APPROVED: ATTEST:
_____________________________ ________________________________ Dale Byrne, Mayor Nova Romero, MMC, City Clerk
Attachment 2

CITY OF CARMEL-BY-THE-SEA

CITY COUNCIL

REGULAR MEETING MINUTES
Tuesday, January 14, 2025

CALL TO ORDER AND ROLL CALL
Mayor Byrne called the meeting to order at 4:30 p.m.

Roll call: Councilmember Jeff Baron, Hans Buder, Alissandra Dramov, and Mayor Dale Byrne were present. Mayor Pro Tem Delves was absent.

PLEDGE OF ALLEGIANCE
Councilmember Dramov led the pledge of allegiance.

EXTRAORDINARY BUSINESS
A. Carmel High School Report Out - None
B. Commendation to Carmel Police Officers for Life Saving - Police Chief Paul Tomasi presented a certificate of commendation awarded to Carmel Police Officers Joe Boucher and Tim Ament from the Monterey County Peace Officers Association for their lifesaving actions. He said that these two officers were first on the scene of a choking incident and provided critical assistance before the arrival of emergency medical services.

C. Volunteer Spotlight - Friends of Harrison Memorial Library - Mayor Byrne gave a presentation on the history of the non-profit Friends of Harrison Memorial Library, what their organization does, and ways the community can get involved.

D. Presentation on the Role of City Council and the City Administrator - Mayor Byrne gave a presentation summarizing the structure of the City as a Corporation, the roles of the City Administrator, City Attorney, Councilmembers, and Boards and Commissions. He highlighted some key differences in processes between the private and public sector, and how the public and volunteers are involved in the process.

PUBLIC APPEARANCES
David Dillworth
Parker Logan
Laura Bolling
Mike Buffo
Janie Moore
Bryan Rosen
Cindy Lloyd
Richard Kreitman
Linda Smith
Attachment 3
Regular City Council Meeting Minutes – January 14, 2025

ANNOUNCEMENTS
A. City Administrator - announced that the City will have a presentation on the City's wildfire prevention strategies on the February 3rd agenda, and will hold more community meetings on wildfire preparedness. He also noted that the audiovisual (AV) system in the Council chambers will be upgraded, as funding for microphone and video improvements has already been allocated in the budget. He responded to Ms. Moore's public comment by saying that the City is committed to addressing resident concerns and invited all residents to contact him, any City staff member, or any Councilmember to discuss any issues or concerns they may have regarding City government.

B. City Attorney Announcements - announced that there was no reportable action from yesterday’s closed session.

C. Councilmember Announcements -
Councilmember Baron - echoed City Administrator Rerig’s comments regarding reaching out to Councilmember or staff if they have any concerns or issues and they would be happy to help.

Councilmember Dramov - announced that there has been a change of ownership from the Shell gas station in town to Chevron, and that the historic Shell sign has been preserved by the City and is in the local history room.

Councilmember Buder - said that the City is working on an amendment to the Housing Element to find ways to create housing opportunities on non-City owned sites and that progress is being made and they are exploring leasable spaces in the downtown area. He said that any volunteers who are interested in helping through data entry to reach out to him.

Mayor Byrne - said that the City has made progress on the Harrison Memorial Library restoration project by selecting the architect and the next step will be for Council to award a contract.

ORDERS OF BUSINESS
Item 1 - Consider Resolution 2025-06 approving a supplemental budget appropriation to the Fiscal Year 2024-2025 Budget to award a $1,000 Discretionary Grant to the Carmel Padre Parents for the Class of 2025 Sober Grad Night
City Clerk Romero gave a brief overview of the item and requested Council consideration and direction on the donation request for the Carmel High School Sober Grad Night.

Public comment: None
Attachment 3
Regular City Council Meeting Minutes – January 14, 2025

Motion by Councilmember Baron to approve Resolution 2025-06, awarding a $1,000 discretionary grant to the 2025 CHS Sober Grad Night event, seconded by Councilmember Buder, and approved 4-0-1-0 by the following roll call vote:

AYES: Councilmembers Baron, Buder, Dramov, and Mayor Byrne NOES: None
ABSENT: Mayor Pro Tem Delves
ABSTAIN: None

PUBLIC HEARINGS
Item 2 - Consider Adoption of Resolution 2025-07 Adopting the Historic Context Statement Update in a manner fully in conformity with the Coastal Act Planner Katherine Wallace presented the Historic Context Statement Update, outlining revisions to the chronological themes, formatting, and streamlined content. She recommended Council adopt the Historic Context Statement Update as presented and noted that final adoption will ultimately require a Local Coastal Amendment and subsequent approval from the Coastal Commission.

Public Comment:

Eric Dyar
Linda Smith
Cindy Lloyd
Richard Kreitman
Kent Seavy
Melanie Billig
Seth Bergstein
Council discussion resumed. Council thanked Katherine Wallace, Kent Seavy, and Seth Bergstein, the Consultant from Past who put so much work into the update which is very well done and thoughtfully created. Council requested that the previous version be available online as a historical reference.

Motion by Councilmember Dramov, to adopt Resolution 2025-07, adopting the Historic Context Statement Update in conformity with the Coastal Act, with no amendments made aside from corrections to typos, if necessary, seconded by Councilmember Baron, and approved 4-0-1-0 by the following roll call vote:

AYES: Councilmembers Baron, Buder, Dramov, and Mayor Byrne NOES: None
ABSENT: Mayor Pro Tem Delves
ABSTAIN: None
Council took a recess at 6:15 p.m. and resumed the meeting at 6:25 p.m.

Attachment 3
Regular City Council Meeting Minutes – January 14, 2025

Item 3 - Resolution 2025-08 - Consideration of a partial after-the-fact Permanent Encroachment Permit, PERM EN 23-077 (Givens), for development in the public right of way which includes a series of terraced retaining walls, a new staircase with handrail, and a new driveway retaining wall located on the southeast corner of Torres Street and 5th Avenue in the Single-Family Residential (R-1) District - Item Continued from December 3, 2024 Assistant City Administrator and Acting Community Planning and Building Director Swanson presented the item, summarizing both existing unpermitted encroachments and proposed new encroachments. He explained that the applicant failed to demonstrate a justifiable need for the encroachment at the staff level. He explained that since all seven criteria for staff approval were not met, the decision on whether to approve or deny the encroachment now rests with the Council.

Public Comment:

Erin Rose, Lewis Builders, spoke on behalf of the applicant. She said the applicant has offered to amend their encroachment permit request to address the concerns from Council.

Scott Julian, Lewis Builders, spoke on behalf of the applicant.

Cheryl Gibbons
Danny Joris, Lewis Builders, spoke on behalf of the applicant.

Council discussion resumed. Council generally agreed with staff’s assessment, and expressed reservations about the proposed retaining wall, questioning its effectiveness in enhancing safety and suggesting approving 1 walkway to the house, as opposed to 2, and said they would prefer natural methods of erosion control, such as jute netting and native plants. Council agreed with the importance of maintaining a natural aesthetic as outlined in the City’s design guidelines.

Coucilmember Buder highlighted the need for clearer City policies regarding design and construction of stairs, retaining walls, and improvements on steep slopes.

City Administrator Rerig said that Council may consider directing the applicant to come back with a redesign, or to task the Design Traditions Steering Committee to come up with some ideas for how to approach sloped properties. He also said the Council may separate the existing unpermitted encroachments and the new proposed encroachments and provide direction on each part of the request. Council discussed which elements of the encroachment permit they agreed with and those that they do not approve of.

Motion by Councilmember Baron to approve Resolution 2025-08 with the following modifications to PERM EN 23-077, subject to City design review and approval:
1) Approval of the:
• Driveway on Torres Street,
• Landscaping along Torres Street and 5th Avenue,
• New stone curb to the south of the driveway on Torres Street (to the minimum extent needed for retaining soil and if full compliance with design guidelines), • New staircase on Torres Street (with conditions: more natural materials and meandering path, utilized for soil retention, and significant landscaping to shield from public view)
• Existing wood retaining wall at the NW corner of the property; and Attachment 3
Regular City Council Meeting Minutes – January 14, 2025

2) Denial of the:
 Existing stacked boulders to the north of the driveway on Torres Street (must be removed)
 Existing wooden staircase on 5th Avenue (must be removed)  Two proposed new wood retaining walls at the NW corner of the property (rather, the natural slope should be preserved with minimal grading in coordination with the City and the placement of landscaping to maintain the slope); and 2) That the findings for approval by Council are categorically exempt from CEQA under 15303.

The motion was seconded by Councilmember Dramov, and approved 4-0-1-0 by the following roll call vote:

AYES: Councilmembers Baron, Buder, Dramov, and
NOES: None
ABSENT: Mayor Pro Tem Delves
ABSTAIN: None

FUTURE AGENDA ITEMS
Councilmember Buder requested that the strategic planning workshop be moved up to the end of February, such as February 27, 2025, in order to help guide the CIP budget meeting on March 24, 2025.

ADJOURNMENT
Council adjourned the meeting at 7:34 p.m.

APPROVED: ATTEST:
_____________________________ ______________________________ Dale Byrne, Mayor Nova Romero, MMC, City Clerk
Attachment 3

CITY OF CARMEL-BY-THE-SEA

CITY COUNCIL
Staff Report
February 3, 2025
CONSENT AGENDA (Estimated time - 5 min)
TO: Honorable Mayor and City Council Members
SUBMITTED BY: Nova Romero, City Clerk
APPROVED BY: Chip Rerig, City Administrator
SUBJECT: December 2024 Monthly Reports
RECOMMENDATION:

Review and receive monthly reports.

BACKGROUND/SUMMARY:

This is a monthly series of reports:

City Administrator Contract Log (no contracts under $60K in Dec) Community Planning and Building Department Reports
Police, Fire, and Ambulance Reports
Public Records Act Requests
Public Works Department Reports
FISCAL IMPACT:

N/A
PRIOR CITY COUNCIL ACTION:

N/A
ATTACHMENTS:

Attachment 1) Community Planning & Building Report
Attachment 2) Police, Fire, and Ambulance Reports
Attachment 3) Public Records Act Requests
Attachment 4) Public Works Department Reports

CITY OF CARMEL-BY-THE-SEA
Monthly Report

Community Planning and Building Department
DECEMBER 2024 – DEPARTMENT ACTIVITY REPORT
I. PLANNING PERMIT APPLICATIONS:

In December 2024, 13 planning permit applications were received.

II. BUSINESS LICENSE APPLICATIONS:

In December 2024, 5 business license applications were received.

III. BUILDING PERMIT APPLICATIONS:

In December 2024, 47 building permit applications were received.

IV. CODE COMPLIANCE CASES:

In December 2024, 10 new code compliance cases were created.

V. TRANSIENT RENTAL COMPLIANCE CASES:

In December 2024, 1 new transient rental compliance case was created.

VI. ENCROACHMENT PERMIT APPLICATIONS:

In December 2024, 16 encroachment permit applications were received.

VII. TREE PERMIT APPLICATIONS:

In December 2024, 26 tree permit applications were received.

TO: Honorable Mayor and City Council Members

SUBMITTED BY: Shelby Gorman, Administrative Coordinator SUBMITTED ON: December 1, 2024
APPROVED BY: Brandon Swanson, Assistant City Administrator & Acting Director of Community Planning and Building
Attachment 1
VIII. YEAR-TO-DATE TRENDS
Table 1 includes the following December 2024 totals:
• Planning Permit Applications
• Business License Applications
• Building Permit Applications
• Code Compliance Cases
• Transient Rental Cases
• Encroachment Permit Applications
• Tree Permit Applications
December 2024 totals are provided alongside December 2023 totalsfor comparison. Compared to the same time period in the year 2023, Table 1 denotes percentage changes in the year 2024.

Table 1
Permit Application Totals and YTD Percentage Changes

PLANNING BUSINESS

LICENSES BUILDING CODE COMPLIANCE

TRANSIENT
RENTAL

COMPLIANCE
ENCROACHMENTS
TREE

REMOVAL &

PRUNING
2023 YTD
Totals 391 74 600 241 36 283 380
2024 YTD
Totals 378 61 515 176 19 254 388
YTD %
Difference - 3.32% - 17.57% - 14.17% - 26.97% -47.22% - 10.25% +2.11% Attachment 1
Permit # Permit Type Track Project Description Address/Loc ation
Date
Received
Date
Approved
Status
24377 Design Study One Relocate Seating Area and Firepit from South to North side.

Revise Design of Wood Gate at Scenic. Change Paving
Specification/Manufacturer. Add Detail for House Name Sign.

Scenic 3 NE
13th; Appeal
Jurisdiction
12/20/2024 Pending
Assignment
24376 Historic
Evaluation
HISTORIC EVAL - INITIAL. Proposed project: Replace two (2) exterior windows.

Monte Verde 4
SE of 7th
12/23/2024 Pending
Assignment
24375 Reasonable
Accommodation
ASSOCIATED Design Study application DS 23-282 (Westphal).

City owned tree that collapsed onto the property destroying the garage, and a small existing pergola, and damaging the walkway and roof of the main home has caused the need for this work.

Project Scope = replace existing hardscaping with like kind material and to ensure a non hazardous path of travel that is safe to travel using mobility aids, and to replace the destroyed pergola.

No increase in impermeable area.

SW Corner of
Santa Fe &
Mountain View
Pending
Assignment
24374 Authorized Work Removal of a broken concrete path between the front entry gate and the edge of the roadway in the public right-of-way.

Torres Street 2
SW of 10th
Avenue
12/16/2024 12/17/2024 Approved
HE 24376
(Banks)
RA 24375
(Westphal)
AW 24374
(Alfait)
12/01/2024 - 12/31/2024
Permit
Identifier
DS 24377
(Rachleff)
Planning Permit Report
Page: 1 of 3
24373 Temporary Use
Permit
Authorization. Approval of a request for extended hours of operation at Barmel Supper Club, located in Carmel Square on the east side of San Carlos north of 7th Avenue, subject to the following conditions and restrictions:
1) The extended hours of operation are limited to the Barmel Supper Club restaurant.
2) The restaurant is permitted to extend its hours of operation from 11:00 P.M. on December 31, 2024, to 1:00 A.M. on
January 1, 2025.
3) No patrons shall be seated after midnight on January 1st. 4) All patrons shall leave the restaurant and adjacent premises no later than 1:15 A.M.
5) The restaurant shall be fully closed and vacated no later than 1:30 A.M.
6) This approval does not include any live music.
7) All noise shall be fully contained within the restaurant at all times. Any noise perceptible at the property line shall be deemed a violation of this approval.
8) Private on-site security shall remain on duty until all guests have left the property.
9) Private on-site security shall perform crowd control to ensure free and clear passage of the public sidewalk along San Carlos Street.
10) At no time shall the posted occupancy load of Barmel Supper Club be exceeded.

San Carlos 2
NE of 7th
12/13/2024 12/20/2024 Approved
24372 Design Study One ASSOCIATED PERMIT DS 22-213 (MARTIN). Remodel 180sf Kitchen & 38sf Closet, Replace Bath Fixtures; Replace 2 Kitchen Windows West Side, Replace Window NE Corner; 8sf of Siding for Window Replacement; Replace 5 Interior Doors With Hard Core Doors (1 is Pocket), Expand LR Doorway from 30" to 50"; Level & Replace Flooring Throughout; Add 2 New Skylights in Kitchen 7sf; Vault 408sf Kichen, LR Ceiling to (E) Pitch; Add Fire Sprinklers.
2nd Ave 3 SE
of Carpenter
12/12/2024 In Review
24371 Design Study Streamlined Replace master bedroom window that is leaking with in-kind replacement; repair cracked stucco where water is entering; and apply caulking to outside windows if needed.

Santa Rita 3
SW of 2nd
12/10/2024 12/16/2024 In Review
24370 Design Study One Replace (e) wood stairs & deck on north side of house with new composite wood deck in stairs.

Camino Del
Monte 2 SW of
Junipero
12/11/2024 In Review
24369 Design Review One Remodel and improvements to the Hog's Breath building & courtyard, Eastwood Building, and Hog's Breath bar building.

San Carlos 3
SW of 5th
12/9/2024 In Review
24368 Sign NEW SIGN: "Lobos Lodge, Carmel by the Sea." Install two nonilluminated sand-blasted signs.NW Corner of Ocean &
Monte Verde
12/6/2024 In Review
DS 24371
(Petrula)
DS 24370
(Lawrence)
DR 24369
(Esperanza
Carmel - Hog's
SI 24368
(Lobos Lodge)
TUP 24373
(Barmel
Supper Club)
DS 24372
(Martin)
Page: 2 of 3
24367 Sign NEW SIGNS: One (1) above door and one (1) directory sign near street.

SW Corner of
7th & San
Carlos, Unit #4
12/4/2024 In Review
24366 VOID - CREATED IN ERROR
24365 Preliminary Site
Assessment
Demo (e) SFR and build new SFR, two-story with detached garage and ADU.

Camino Real 2
SW of 7th
In Review
VOID -
PSA 24365
(DCV
Total Records: 13 1/2/2025
SI 24367
(Cypress Grove
Winery)

PENDING BUS
Page: 3 of 3
Entity # Application
Type
Business Description Location Date
Received
Date
Approved
Status
24061 New Business Banking NW Corner of
San Carlos &
6th
12/19/2024
24060 Ownership
Change
Transient Hotel Rentals SW corner of
San Carlos St.
and 4th Ave.
12/18/2024 In Review
24059 New Business Tasting room, wine NW Corner of
Mission & 7th
12/19/2024 In Review
24058 Ownership
Change
Wine tasting and sales SW Corner of
San Carlos &
7th
12/19/2024 In Review
24057 New Business Sale of golf apparel and accessories San Carlos 3 NE of 6th
12/12/2024 In Review
Total Records: 5 1/2/2025
Business License Report
Carmel
Fireplace Inn
Tira Nanza
Cypress Grove
Winery
Malbon Golf
12/01/2024 - 12/31/2024
Business
Name
JPMorgan
Chase Bank
National
Page: 1 of 1
Permit # Date
Submitted
Project Description Valuation Permit Type Property Location 240561 Furnace and duct replacement 17,845 Mechanical NW corner of 5th and Santa Fe
240560 PGE panel upgrade. 100 amps to 200 amps. 2,500 Electrical 5855 junipero st 240559 Bathroom Remodel 35,000 Building SW Corner Mountain View & Vizcaino
240558 Replace additional 75' of sewer drain to tie into manhole. 8,672 Plumbing Dolores 2 NE of First 240557 minor tenant improvements, 100 sq. ft. 60,000 Building Ground floor, Mission & 7th
240556 Minor revision to existing building permit. Electrical and window change.
7,500 BP Revision 8th Avenue 2 N/E
Santa Fe St
240555 12/20/2024 Install four sconce lights in living room with new romex.

Install exterior light fixture above garage door, and replace two existing exterior lights.
0 Electrical SW Corner of
Mission & 11th
240554 12/20/2024 Install new electrical meter, 125 amp upgrade. 1,000 Electrical Sterling Way 2 SE of Perry Newberry
240553 12/20/2024 Replace the missing panes from the existing louvered windows on the front facing side of the building. Repair or replace brackets that hold the window panes as necessary.

Use silicone caulking to aid in the holding of windows in place.
0 Exempt Work San Carlos 2 NE of
7th
240552 12/19/2024 Removal of unpermitted electrical installation 100 Electrical SE Corner Ocean and Mission (Carmel
Plaza)
240551 12/20/2024 Construction and addition of two new bay windows. 18,000 Building Guadalupe 5 NW of 6th
240550 12/18/2024 Replace 26k BTU furnace 10,099 Mechanical Lincoln 5 SE of 12th 240549 12/18/2024 Construction of a new back yard trellis 6,000 Building North Camino Real 2 NE of 4th
240548 12/18/2024 Install external 240V/50AMP receptacle for EV charger 750 Building Camino Real 6 NE of 4th
240547 12/17/2024 Roof-mnt PV and ESS. 14 PV mods, 5.447kW AC. 1 BT,

11.5kW, 13.5kWh.
46,957 Electrical Dolores Street 3NW
of 13th
240546 12/17/2024 Remove existing 100amp main panel and install new 200 amp panel on adjacent corner of house.
4,150 Electrical SW Corner of
Camino Real & 10th
Building Permit Report
12/18/2024
12/17/2024
12/20/2024
12/19/2024
12/01/2024 - 12/31/2024
Date
Approved
Page: 1 of 4
240545 12/17/2024 (Front only) Remove compo roof, re-roof Owens Corning Duration Max Granite color (similar to current style/color) 13,987 Roofing SW Corner Ocean &
Dolores
240544 12/17/2024 Convert portion of first floor commercial space to residential and provide an ADA compliant restroom. Convert remainder of second floor to incorporate two residential units.
500,000 Building SAN CARLOS 2 NW
of 8TH ST
240543 12/17/2024 Construction of 10' wide motorized sliding metal gate at the driveway. New metal pathway gate, new stone columns at
the new gates and replacement of existing wood fence as necessary.
250,000 Building Scenic 2 NW of 8th
240542 12/17/2024 Replace Existing Furnace with Bryant 926TC36060 Forced Air furnace in-kind.
8,022 Mechanical 10th 2 SE of Mission
240541 Revision to Permit BP 23-519 to include: Replace all existing windows and add three additional windows to the existing kitchen. Replace single door at existing kitchen with a pair of French doors. All new kitchen cabinets and appliances in existing kitchen. Expand interior openings into kitchen, removing wall between kitchen and dining room.

Replace the main entry door and provide a new "eyebrow" roof eave over entry door. Relocated previously approved fireplace to south living room wall. Add a high window to the primary closet. Modify the upper terrace railing to match existing entry gates. Add corbels under the
cantilevered area of upper-level terrace and primary
bedroom. Dormer massing increased by 3" all around for
framing. Existing living room roof structural framing to be replaced, no change in existing height. Replace existing 110 sf glued dg walkway/pathway with new mulch in publicright-away, per PERM 23-272. Remove existing 12 sf fan shaped landing with brick edging and replace with mulch in public-right-away, per PERM 23-272. Revised exterior paint colors. No other changes to previously approved plans.
20,000 BP Revision Carmelo St. 2NE of
8th Avenue
240540 12/16/2024 Polish/buff living room floor and apply sealer to flooring.

Replace rotten/damaged deck boards. Prep, prime, and
pain kitchen, living room, and deck boards.
0 Exempt Work 2928 Franciscan Way
240539 12/16/2024 Interior cosmetic tenant improvements. New flooring, new lighting, new kitchenette, new bathroom floor, new toilet and sink, new plaster coat and interior paint.
12,000 Building Lincoln 3 NE of 8th
240538 12/16/2024 Install floor sink, counters, and dividing wall. Upgrade electrical and install new outlets.
35,000 Building Carmel Plaza Suite
119
240537 12/16/2024 Tear off existing roof and install new CertainTeed Presidential TL in color "Country Grey".
63,000 Roofing NW Corner of
Mission & 4th
12/16/2024
12/16/2024
12/17/2024
Page: 2 of 4
240536 12/13/2024 DEMOLITION OF AN EXISTING INCOMPLETE

SUBTERRANEAN PARKING STRUCTURE
329,029 Demolition SW Corner of
Dolores & 5th
240535 12/13/2024 Wall heater replacement in existing location. 2,818 Mechanical SW Corner of Santa Rita and 2nd
240534 12/11/2024 Remove and replace a 80K BTU furnace. 9,715 Mechanical 7th 2 SE of Forest 240533 12/10/2024 (1) PW3 11.5 kW/13.5 kWh, (1) 200A Backup switch installed at Meter
25,775 Electrical Casanova 3 SE of 8th
240532 12/10/2024 Demolition of an existing 832 square foot single-story singlefamily residence. Construction of a new 1,799-square-foot, two-story single-family residence with a 200-square-foot attached garage in the front setback.
626,800 Building Casanova 2 NW of
9th
240531 12/10/2024 Remove and replace heating system. 8,000 Mechanical Sterling 2 SE of Perry Newberry
240530 0
240529 12/9/2024 Run dedicated gas line from meter to new fireplace insert.

Run approx 20' of 1/2" galvanize pipe. Install kindler valve. 1,600 Plumbing NE Corner Santa Fe
and 1st
240528 12/9/2024 Remodel of existing bar, alteration to existing bar for accessible wheel chair space, removal of nonstructural soffit over bar, new LED down lights and LED linear strip lighting. 7,400 Building San Carlos 3 SW of
5th
240527 12/9/2024 Remodel of existing office, new exterior doors to new exterior deck, new cabinetry, wood flooring, painting, and lighting.
62,400 Building San Carlos 3 SW of
5th
240526 12/9/2024 Replace leaking gas line for "Forever Carmel" store - approx 12' 3/4" coated steel pipe - remove and replace 2 sidewalk squares - Encroachment will be obtained by Perkins
Excavation - picture uploaded - 2 sidewalk squares on the right
4,900 Plumbing SW corner Ocean &
San Carlos
240525 12/6/2024 Remove and replace boiler. 15,580 Mechanical Monte Verde 2 SW of 9th
240524 12/5/2024 Remove and replace a 60k btu furnace and reduct 9 registers
21,377 Mechanical Lobos 5 NE of 4th
240523 12/5/2024 New balcony addition and wood screening element at Building A.
7,500 Building NE Corner of San
Antonio & 13th
240522 New Garage 0 Building
240521 12/5/2024 Remove existing wood shake roof and tar and gravel roof.

Install new Landmark 50 year TL roof and torch down
roofing in color "Weathered Wood".
25,000 Roofing Santa Fe 2 NE of 8th
240520 12/3/2024 Interior remodel to single family residence including relocation of powder room, improvements to bathrooms,
laundry room, kitchen, wine room, update finishes and
update electrical.
500,000 Building Scenic Road 4 SE of
8th
240519 12/3/2024 Remove and replace carpet, sand and refinish hardwood flooring and interior painting.
0 Exempt Work Sterling Way 2 SE of
Perry Newberry
12/3/2024
12/6/2024
12/5/2024
12/5/2024
12/9/2024
12/11/2024
12/10/2024
Page: 3 of 4
240518 10/3/2024 Replace an existing damaged fence with a new grape stake fence in two sides of the property. North and East (side and rear) fences to be replaced.
0 Exempt Work Monte Verde 2 SW
of 8th
240517 12/2/2024 Exploratory Demo Permit: 3x3 hole in drywall rear wall, to determine internal wall structure of wall required to be converted to 1hr fire rating. 2nd 3 x 3 hole in drywall - existing kitchen exit door currently walled in - to determine what is necessary to reopen and reactivate the exit door. 1,000 Demolition Dolores 2 NW of 6th
240516 12/2/2024 Remove existing comp shingle roof and replace with a new CertainTeed Landmark TL shingles roof in color
"Shenandoah"
24,000 Roofing NW Corner of San
Carlos & 13th
240515 12/2/2024 Remove existing composition shingle roof. Install new Presidential Shake TL roofing in color "Autumn Blend" and new gutters.
15,000 Roofing SW Corner of Torres
& 9th
12/2/2024
Total Records: 47 1/2/2025
10/3/2024
12/4/2024
12/4/2024
Page: 4 of 4
Case # Case Date Location Problem Description Date
Received
Date Closed
24192 12/20/2024 SE Corner of
Casanova &
7th
Remodel construction with out proper permit in what
appeared to be 2 lower rooms and one upstairs room at the Southern portion of the property. Property manager refused entry so full extent of violations could not be confirmed.

However while trying to make contact with the site
superintendent could clearly see work including but not limited to framing, insulation and drywall. All work requires proper permits and inspection. See Stop Work Order and
Site Inspection Report attached.
12/20/2024
24191 12/18/2024 Carmel Plaza 12/18/2024
24190 12/16/2024 Lincoln 4 NW
of Santa Lucia
Unpermitted exterior changes 12/16/2024
24189 12/3/2024 "The Nest" -
Junipero 6 SE
of 10th /
Junipero 6 NE
of 11th
RV parked too long in public ROW 12/3/2024 12/11/2024
24188 12/10/2024 Junipero 3 NE
of 12th
Piles of trash in public right-of-way 12/10/2024
24187 12/9/2024 San Carlos Exterior signage / no business license 12/9/2024 24186 12/10/2024 1/1/1900 1/1/1900
24185 12/9/2024
24182 12/3/2024 SW Corner of
Santa Fe &
Mountain View
Extensive site coverage demolition that is not part of the project scope of DS 23282 (Westphal).
12/3/2024
24181 12/2/2024 GUADALUPE
ST 5 NE of
5TH AVENUE
Garbage, furniture, appliances, construction debris,
gardening tools and debris, Green Waste receptacles in view of public right-of-way
12/2/2024
Total Records: 10
Code Compliance Report
1/2/2025
Open
Open
1st NOV sent
Open
Open
Closed
Open
Open
12/01/2024 - 12/31/2024
Status
Open
Page: 1 of 1
Page: 1 of 1
Transient Rental Report
01/01/2024 - 12/31/2024
Case # Street Status Date Received Last Status Date Date Closed 24183 Torres Closed 11/11/2024 12/10/2024 12/10/2024
24172 Junipero Closed 9/21/2024 10/4/2024 10/4/2024
24164 Casanova Closed 8/31/2024 10/4/2024 10/4/2024
24161 Monte Verde Closed 9/9/2024 9/20/2024 9/20/2024
24159 Junipero Closed 9/4/2024 9/20/2024 9/20/2024
24114 Torres Closed 8/14/2024 10/28/2024 10/28/2024
24113 Mission Closed 8/12/2024 9/6/2024 9/6/2024
24096 Torres Closed 6/20/2024 6/21/2024 7/19/2024
24076 Monte Verde Closed 4/19/2024 5/22/2024 5/22/2024
24069 Torres Closed 3/8/2024 5/3/2024 5/3/2024
24067 Carmelo Closed 2/26/2024 3/22/2024 3/22/2024
24051 Rio Closed 2/8/2024 3/5/2024 3/5/2024
24049 8th Closed 2/2/2024 2/20/2024 2/20/2024
24047 Lopez Closed 1/29/2024 5/6/2024 6/5/2024
24046 2nd Closed 1/30/2024 2/6/2024 6/12/2024
24045 Lobos Closed 1/29/2024 3/6/2024 4/6/2024
24029 7th Closed 1/16/2024 2/26/2024 2/26/2024
24028 Forest Closed 1/16/2024 2/9/2024 2/9/2024
24027 Scenic Closed 1/15/2024 2/8/2024 2/8/2024
Total Records: 19 1/6/2025
Permit # Permit Type Project Description Property
Location
Date Issued Status
240254 Temp Ench OVERLASHING 14 POLES 1 Casanova St
240253 Temp Ench Replace 75' of sewer pipe and connect to city wye Dolores 2 NE of First
240252 Temp Ench This project proposes to access ex. pole #1, pole #2 for splicing & power supply on 4TH AVE. (JB2022310)
N Carmelo & 4th
/ Lincoln & 4th
In Review
240251 Temp Ench 4'x4' asphalt patch for CalAm Job #1527. SE Corner of Dolores & 2nd
1/2/2025 Issued
240250 Temp Ench PG&E to replace pole, overhead service, enclosure, and install anchor and underground service. PG&E to
trench/backfill for enclosure replacement.

Dolores 2 SE of
9th
In Review
240249 Temp Ench Close one lane of traffic to replace 75' of sewer line. Dolores 2 NE of 1st
12/18/2024 Issued
240248 Temp Ench Tie-in to splice case on existing utility pole on east side of San Carlos and overpull fiber cable north on San Carlos and east on 6th through nine (9) existing vaults.

San Carlos St
from 7th to 6th,
and 6th from San
Carlos to Mission
In Review
240247 Temp Ench Excavate a 4'x3' pit in the asphalt to repair water leak damages.

Crespi 129' North
of Flanders
12/13/2024 Issued
240246 Temp Ench Remove old and aged plant material and restore grade, Justin walked the area with me and thought it would be a good idea.

Santa Fe 3NE of
5th Ave
In Review
240245 Temp Ench Removing and replacing two squares of concrete to facilitate gas line repair.

CONDITION: New concrete color to match existing sidewalk color.

SW Corner of
Ocean & San
Carlos
12/10/2024 Issued
240244 Temp Ench PG&E to install underground service, replace pole, and replace overhead transformer. PM# 35436539
NW Corner of
San Carlos & 10th
In Review
Encroachment Permit Report
12/16/2024
12/12/2024
12/11/2024
12/9/2024
12/6/2024
12/20/2024
12/20/2024
12/20/2024
12/16/2024
12/01/2024 - 12/31/2024
Date
Submitted
Page: 1 of 2
240243 Driveway Repair lower part of driveway by regarding and re-aligning, approximately 102 sf of pavers. Create 17' of 6" concrete footing to keep pavers in place. Lay 120sf total of asphalt.

CONDITIONS: (1) The concrete header to support the
pavers will need to color match the existing pavers. Not gray concrete. (2) Stone borders along the planters and public right-of-way are unpermitted and shall be removed prior to permit final.

San Carlos 2 NE
of Vista
12/12/2024 Approved
240242 Temp Ench PG&E to replace poles, overhead service, underground service, and overhead transformer. PG&E to install overhead transformer, anchor, riser, cutouts and overhead fault
indicator.

Santa Fe 4 SE of
Ocean
12/6/2024 Issued
240241 Temp Ench PG&E to install service cable, overhead transformer, and secondary enclosure. PM# 35581733.

Casanova 4 SW
of 13th
12/5/2024 Issued
240240 Temp Ench Block off two parking spaces for loading and unloading of materials. Install cones and pedestrian control.

Ocean 2 NE of
Dolores
12/4/2024 Issued
240239 Temp Ench Temporarily close sidewalk for two hours every morning until work is complete.

CONDITION: "SIDEWALK CLOSED" SIGNS SHALL BE
PLACED AT THE PROJECT LOCATION.

NW Corner of
San Carlos & 6th
12/2/2024 Issued
Total Records: 16 1/2/2025
12/5/2024
12/3/2024
12/2/2024
12/2/2024
12/2/2024
Page: 2 of 2
Permit # Permit Date Location of
Property
Description Status Approved
Date
24363 12/2/2024 Guadalupe 4
NW of 3 rd
EVALUATION: 1 Pine & 1 Oak
REMOVAL: hopefully
Denied
24364 12/2/2024 NW Corner of
Santa Rita &
4th
EVALUATION: One HUGE pine tree, one #1 City owned pine- red marked REMOVAL: one #2 Dead city owned pine tree
(Leaning towards house- Top heavy)
In Review
24365 12/3/2024 Camino Real
11 NE of 4th
QTY 1, 28" Diameter Oak Approved 12/3/2024
24366 12/4/2024 Santa Rita 4
NW of 1st
1 Mature Monterey Cypress- 6 to 7 limbs 3"-7" diam. In Review 24367 12/4/2024 Camino Real 3
NE of 13th
One (which may turn into removal), medium/large, Coast
Live Oak
Approved 12/5/2024
24368 12/5/2024 Casanova 4
NE of Santa
Lucia
REMOVAL: Please refer to attached tree hazard evaluation form
Approved 12/5/2024
24369 12/5/2024 Torres 3 SE of
Mountain View
One 7" Oak limb over garage, One 6" Oak limb over LR and fireplace
Approved 12/9/2024
24370 12/6/2024 Camino Real 3
SW of 4th
REMOVE: 1 Acacia Tree, 14' over hanging roof Approved 12/6/2024 24371 12/9/2024 Santa Rita St
1 NE of 2nd
Ave
Tree pruning In Review
24372 12/9/2024 Carpenter 4
NW of 3rd
1 Tall Oak Approved 12/13/2024
24373 12/9/2024 Lopesz 3NW
of 4th
Removed diseased half of live oak In Review
24374 12/9/2024 Scenic 2 NE of
11th
REMOVAL: One Cypress, 50' Crown Span, Height 60' Approved 12/10/2024 24375 12/9/2024 Monte Verde
2 NW of 7th
1 Tree 20 Foot Unknown Species Approved 12/11/2024
24376 12/11/2024 San Carlos St
and 4th
Avenue
Evaluate trees on our property to know if any are protected or if all are able to be removed.

In Review
Tree Permit Report
Tree
Removal/Pruni
Tree
Removal/Pruni
ng
Tree
Evaluation
Tree
Removal/Pruni
ng
Tree
Removal/Pruni
Tree
Removal/Pruni
ng
Tree
Removal/Pruni
Tree
Removal/Pruni
Tree
Removal/Pruni
ng
Tree
Removal/Pruni
Tree
Removal/Pruni
Tree
Removal/Pruni
Tree
Removal/Pruni
ng
12/01/2024 - 12/31/2024
Permit Type
Tree
Evaluation
Page: 1 of 2
24377 12/11/2024 Camino Real
street approx.
in front of
3NW of 8th
City tree in street island is dead and threatening power lines Approved 12/13/2024 24378 12/12/2024 Mission 3NW
Santa Lucia
Tree removal and pruning Approved 12/12/2024
24379 12/13/2024 Casanova 2
SW of 2nd,
Carmel
Casanova 2 SW of 2nd, Carmel In Review
24380 12/13/2024 San Antonio 6
SW of 8th
Stress and Dying Monterey Cypress in front of the house In Review 24381 12/13/2024 2900
Franciscan
Way
EVALUATION: Tree #'s 1-7 PRUNING: Tree #'s 1-7
REMOVAL: 1,2,6,7 (if determined to be dangerous and at
end of life)
Approved 12/17/2024
24382 12/16/2024 Backyard
Crespi 6 SE of
Mountain View
Evaluate existing trees In Review
24383 12/17/2024 Lincoln 2 SW
of 9th Ave
Tree Removal In Review
24384 12/17/2024 2960 Santa
Lucia Ave
Tree Removal In Review
24385 12/17/2024 2900
Franciscan
Way
EVALUATION: Tree #'s 1-7 PRUNING: Tree #'s 1-7
REMOVAL: 1,2,6,7 (if determined to be dangerous and at
end of life)
Approved 12/17/2024
24386 12/17/2024 SE Corner of
Lincoln and
13th
EVALUATION: 1 pine tree, In Review
24387 12/17/2024 Second House
on Torres
Street
Southeast of
8th Avenue
Evaluate and Remove Monterey Pine on City Property In Review 24388 12/19/2024 Ocean 4 NE
Guadalupe
REMOVAL: It’s a large pine tree approximately 3feet in
diameter and 18feet tall
In Review
Total Records: 26 1/2/2025
Tree
Removal/Pruni
Tree
Removal/Pruni
ng
Tree
Evaluation
Tree
Removal/Pruni
ng
Tree
Removal/Pruni
Tree
Removal/Pruni
ng
Tree
Removal/Pruni
Tree
Evaluation
Tree
Evaluation
Tree
Removal/Pruni
Tree
Removal/Pruni
ng
Tree
Removal/Pruni
Page: 2 of 2
*The performance goal for Code-3 (life threatening emergency-lights & siren) ambulance calls with a response time of 5 minutes or less from dispatch to arrival is 95%.

CITY OF CARMEL-BY-THE-SEA
Monthly Report
Public Safety
December 2024

AMBULANCE REPORT
Summary of Carmel Fire Ambulance December 2024 Calls for Service

AMBULANCE PERFORMANCE MEASURE
The performance goal for Code-3 (life threatening emergency-lights & siren) ambulance calls with a response time of 5 minutes or less from dispatch to arrival is 95%. For the month of December 2024, the ambulance was unable to meet the performance measure. The response time was 93% with (3) code-3 calls over 5 minutes.
46 Calls for service in CBTS Average response time: 3:18 min. 40 Code 3 calls for service –Three calls over 5:00 min.

Dolores & 13th (5:17 min Response) Delay due to distance of call.

Camino Real & 10th (5:46 min Response) Delay due to distance of call.

Lincoln & 11th (6:09 min Response) Delay due to distance of call.

MONTEREY FIRE REPORT
Summary of Monterey Fire December 2024 Calls for Service

FIRE PERFORMANCE MEASURE
The performance goal for Code-3 (life threatening emergency-lights & siren) fire calls with a response time of 5 minutes or less from dispatch to arrival is 95%. For the month of December 2024, the fire department was able to meet the performance measure. The response time was 96% with (2) code-3 calls over 5 minutes.
83 total calls for service in CBTS Average response time: 3:34 min. 55 total Code-3 calls – Two calls with a response time over 5:00 min.

Dolores & 13th (5:35 min Response) Delay due to distance of call.

Camino Real & 10th (5:07 min Response) Delay due to weather.

TO: Honorable Mayor and City Council Members
SUBMITTED BY: Paul Tomasi, Director of Public Safety
APPROVED BY: Chip Rerig, City Administrator
Attachment 2
*The performance goal for Code-3 (life threatening emergency-lights & siren) ambulance calls with a response time of 5 minutes or less from dispatch to arrival is 95%.

BEACH FIRES
There were 0 illegal beach fires recorded during the month of December.

Attachment 2
Incident Alarm Date Incident Number Response
Time Combined Address Cross Street Priority
Medical assist, assist EMS crew 12/8/2024 12:28 PM 241208-MNT09089 0:02:50 OCEAN AVE GUADALUPE ST 3 Medical assist, assist EMS crew 12/14/2024 6:35 PM 241214-MNT09361 0:02:52 7TH AVE LINCOLN ST 3 Medical assist, assist EMS crew 12/1/2024 10:17 AM 241201-MNT08906 0:03:08 MONTE VERDE ST 6TH AVE 3 Medical assist, assist EMS crew 12/25/2024 11:25 AM 241225-MNT09669 0:04:40 SANTA FE ST 1ST AVE 3 Medical assist, assist EMS crew 12/27/2024 6:54 AM 241227-MNT09722 0:04:59 DOLORES ST VISTA AVE 3 EMS call, excluding vehicle accident with injury 12/30/2024 12:58 PM 241230-MNT09847 0:00:28 6TH AVE MISSION ST 3 EMS call, excluding vehicle accident with injury 12/14/2024 4:31 PM 241214-MNT09343 0:01:10 DOLORES ST 5TH AVE 3 EMS call, excluding vehicle accident with injury 12/28/2024 1:46 PM 241228-MNT09781 0:01:12 OCEAN AVE MISSION ST 3 EMS call, excluding vehicle accident with injury 12/18/2024 3:16 PM 241218-MNT09482 0:01:22 CAMINO REAL ST 4TH AVE 3 EMS call, excluding vehicle accident with injury 12/25/2024 12:19 PM 241225-MNT09672 0:02:03 OCEAN AVE SCENIC RD 3 EMS call, excluding vehicle accident with injury 12/4/2024 9:38 AM 241204-MNT08977 0:02:24 6TH AVE MONTE VERDE ST 3 EMS call, excluding vehicle accident with injury 12/21/2024 3:15 PM 241221-MNT09550 0:02:24 MONTE VERDE ST 5TH AVE 3 EMS call, excluding vehicle accident with injury 12/18/2024 2:05 PM 241218-MNT09478 0:02:41 GUADALUPE ST 2ND AVE 3 EMS call, excluding vehicle accident with injury 12/12/2024 10:31 AM 241212-MNT09207 0:02:44 JUNIPERO AVE 5TH AVE 3 EMS call, excluding vehicle accident with injury 12/23/2024 11:49 AM 241223-MNT09611 0:02:57 GUADALUPE ST 5TH AVE 3 EMS call, excluding vehicle accident with injury 12/14/2024 12:25 AM 241214-MNT09253 0:03:06 MISSION ST 7TH AVE 2 EMS call, excluding vehicle accident with injury 12/19/2024 2:09 PM 241219-MNT09507 0:03:10 CAMINO REAL ST 10TH AVE 3 EMS call, excluding vehicle accident with injury 12/29/2024 3:48 PM 241229-MNT09821 0:03:10 SAN ANTONIO AVE 10TH AVE 3 EMS call, excluding vehicle accident with injury 12/28/2024 2:39 PM 241228-MNT09785 0:03:17 OCEAN AVE SCENIC RD 3 EMS call, excluding vehicle accident with injury 12/30/2024 3:44 AM 241230-MNT09835 0:03:26 DOLORES ST 5TH AVE 3 EMS call, excluding vehicle accident with injury 12/29/2024 6:33 PM 241229-MNT09825 0:03:32 SAN CARLOS ST 13TH AVE 3 EMS call, excluding vehicle accident with injury 12/15/2024 3:41 PM 241215-MNT09402 0:03:53 CARMELO ST 11TH AVE 3 EMS call, excluding vehicle accident with injury 12/5/2024 10:21 PM 241205-MNT09015 0:03:55 MONTE VERDE ST 9TH AVE 3 EMS call, excluding vehicle accident with injury 12/28/2024 9:17 PM 241228-MNT09798 0:04:11 CAMINO REAL ST 8TH AVE 3 EMS call, excluding vehicle accident with injury 12/12/2024 3:02 AM 241212-MNT09197 0:04:20 2ND AVE N CASANOVA ST 3 EMS call, excluding vehicle accident with injury 12/25/2024 6:20 PM 241225-MNT09680 0:04:58 CARMELO ST 11TH AVE 3 EMS call, excluding vehicle accident with injury 12/25/2024 6:20 PM 241225-1827-MNT 0:04:58 CARMELO ST 4 SE OF 11TH AVE 3 EMS call, excluding vehicle accident with injury 12/10/2024 2:50 AM 241210-MNT09144 0:05:35 DOLORES ST 13TH AVE 3 28 0:03:12
Removal of victim(s) from stalled elevator 12/13/2024 10:50 PM 241213-MNT09252 0:03:25 MISSION ST 4TH AVE 2

RESPONSE SUMMARY REPORT BY INCIDENT TYPE
27060 CARMEL-BY-THE-SEA
Alarm Date From: 12/01/2024 To: 12/31/2024
300-321 Series (EMS)
322-399 Series (Rescues)
24 12 Carmel Fire Activity Report.xlsx 1
Incident Alarm Date Incident Number Response
Time Combined Address Cross Street Priority
300-321 Series (EMS)
Surf rescue 12/28/2024 4:09 PM 241228-MNT09788 0:03:06 OCEAN AVE SCENIC RD 3 2 0:03:16
Gas leak (natural gas or LPG) 12/26/2024 7:26 AM 241226-MNT09695 0:04:12 Mission ST Santa Lucia Ave 3 Power line down 12/14/2024 9:35 AM 241214-MNT09350 0:00:00 Camino Real 12th Avenue 3 Power line down 12/14/2024 8:32 AM 241214-MNT09325 0:00:00 Ocean AVE Junipero Avenue 2 Power line down 12/14/2024 8:43 AM 241214-MNT09326 0:00:00 Ocean AVE Torres Street 2 Power line down 12/14/2024 9:22 AM 241214-MNT09348 0:04:33 Casanova ST 10th Avenue 3 Power line down 12/14/2024 7:33 AM 241214-MNT09313 0:04:48 Ocean AVE Torres St 3 Power line down 12/14/2024 6:29 AM 241214-MNT09261 0:05:07 CAMINO REAL ST 10TH AVE 3 Arcing, shorted electrical equipment 12/14/2024 8:32 AM 241214-MNT09312 0:09:47 25960 Junipero AVE 2 Biological hazard, confirmed or suspected 12/3/2024 4:59 PM 241203-MNT08959 0:04:24 Monte Verde ST 7th Ave 3 9 0:03:39
Person in distress, other 12/2/2024 12:26 PM 241202-MNT08925 0:05:01 DOLORES ST 10TH AVE 2 Water problem, other 12/25/2024 8:31 AM 241225-MNT09663 0:06:56 CASANOVA ST 9TH AVE 2 Water or steam leak 12/29/2024 11:45 AM 241229-MNT09815 0:05:03 NW GUADALUPE ST 2ND AVE 2 Smoke or odor removal 12/18/2024 8:06 AM 241218-MNT09473 0:02:48 CARPENTER ST 2ND AVE 3 Public service assistance, other 12/14/2024 9:14 AM 241214-MNT09315 0:00:00 SAN CARLOS ST SANTA LUCIA AVENUE 2 Public service assistance, other 12/14/2024 9:15 AM 241214-MNT09328 0:01:04 LINCOLN ST 9TH AVENUE 3 Public service assistance, other 12/26/2024 9:13 AM 241226-MNT09698 0:01:44 3RD AVE SANTA FE ST 2 Public service assistance, other 12/14/2024 8:47 AM 241214-9327 0:02:47 MISSION 12TH AVENUE 2 Public service assistance, other 12/26/2024 11:05 AM 241226-MNT09702 0:02:51 3RD AVE SANTA FE ST 2 Public service assistance, other 12/1/2024 5:03 PM 241201-MNT08910 0:04:00 CARMELO ST 11TH AVE 2 Police matter 12/2/2024 7:47 PM 241202-MNT08934 0:05:51 OCEAN AVE SAN CARLOS ST 2 Public service 12/14/2024 5:27 AM 241214-MNT09259 0:05:40 LINCOLN ST 11TH AVE 2 Assist invalid 12/3/2024 8:16 AM 241203-MNT08941 0:02:31 DOLORES ST 4TH AVE 3 Assist invalid 12/28/2024 9:51 PM 241228-MNT09801 0:03:39 CASANOVA ST 8TH AVE 2 Assist invalid 12/23/2024 8:50 PM 241223-MNT09631 0:06:26 25995 RIDGEWOOD RD 2 No incident found on arrival at dispatch address 12/14/2024 8:59 AM 241214-MNT09314 0:01:37 CASANOVA ST 8TH AVENUE 2 No incident found on arrival at dispatch address 12/5/2024 5:51 PM 241205-MNT09011 0:02:24 SAN CARLOS ST 1ST AVE 3 No incident found on arrival at dispatch address 12/3/2024 7:46 PM 241203-MNT08964 0:02:38 SAN CARLOS ST 6TH AVE 3 No incident found on arrival at dispatch address 12/6/2024 5:26 PM 241206-MNT09043 0:04:05 SANTA FE ST 6TH AVE 2 No incident found on arrival at dispatch address 12/10/2024 11:39 AM 241210-MNT09157 0:04:06 SANTA FE ST 4TH AVE 3 No incident found on arrival at dispatch address 12/7/2024 2:45 PM 241207-MNT09068 0:04:51 GUADALUPE ST 7TH AVE 3 No incident found on arrival at dispatch address 12/27/2024 12:51 PM 241227-MNT09743 0:05:22 SCENIC RD 12TH AVE 2 No incident found on arrival at dispatch address 12/2/2024 8:14 PM 241202-MNT08937 0:06:25 CARPENTER ST OCEAN AVE 2 400 Series (Hazardous Material)
500 & 600 Series (Service Calls)
322-399 Series (Rescues) cont.
24 12 Carmel Fire Activity Report.xlsx 2
Incident Alarm Date Incident Number Response
Time Combined Address Cross Street Priority
300-321 Series (EMS)
Smoke scare, odor of smoke 12/10/2024 3:17 PM 241210-MNT09162 0:02:42 DOLORES ST 5TH AVE 3 EMS call, party transported by non-fire agency 12/3/2024 8:03 PM 241203-MNT08965 0:03:28 JUNIPERO AVE 5TH AVE 3 25 0:03:46
System malfunction, other 12/26/2024 6:28 AM 241226-MNT09692 0:04:40 OCEAN AVE LINCOLN ST 3 Smoke detector activation due to malfunction 12/2/2024 9:33 AM 241202-MNT08918 0:03:54 OCEAN AVE LINCOLN ST 3 Smoke detector activation due to malfunction 12/30/2024 11:33 PM 241230-MNT09858 0:05:03 SANTA FE ST 5TH AVE 2 Heat detector activation due to malfunction 12/19/2024 4:37 PM 241219-MNT09510 0:03:00 MISSION ST OCEAN AVE 3 Alarm system sounded due to malfunction 12/5/2024 3:46 PM 241205-MNT09009 0:02:08 OCEAN AVE LINCOLN ST 3 Alarm system sounded due to malfunction 12/15/2024 5:40 PM 241215-MNT09409 0:03:06 JUNIPERO AVE OCEAN AVE 3 Alarm system sounded due to malfunction 12/5/2024 1:46 PM 241205-MNT09003 0:03:57 SANTA RITA ST 3RD AVE 3 Alarm system sounded due to malfunction 12/14/2024 3:37 AM 241214-MNT09257 0:04:08 OCEAN AVE LINCOLN ST 2 Alarm system sounded due to malfunction 12/24/2024 12:52 PM 241224-MNT09646 0:04:12 OCEAN AVE LINCOLN ST 2 Alarm system sounded due to malfunction 12/19/2024 9:56 AM 241219-MNT09498 0:04:20 OCEAN AVE LINCOLN ST 3 Alarm system sounded due to malfunction 12/15/2024 1:16 PM 241215-MNT09397 0:04:23 OCEAN AVE LINCOLN ST 3 Alarm system sounded due to malfunction 12/13/2024 1:54 PM 241213-MNT09241 0:04:30 OCEAN AVE LINCOLN ST 2 Alarm system sounded due to malfunction 12/16/2024 12:13 PM 241216-MNT09428 0:04:46 OCEAN AVE LINCOLN ST 3 Alarm system sounded due to malfunction 12/12/2024 12:17 PM 241212-MNT09213 0:01:10 OCEAN AVE LINCOLN ST 3 Smoke detector activation, no fire - unintentional 12/2/2024 11:30 AM 241202-MNT08923 0:05:18 SAN ANTONIO AVE OCEAN AVE 2 Detector activation, no fire - unintentional 12/29/2024 8:49 PM 241229-MNT09829 0:03:53 8TH AVE CASANOVA ST 3 Alarm system activation, no fire - unintentional 12/14/2024 10:54 AM 241214-MNT09272 0:03:51 OCEAN AVE LINCOLN ST 2 Alarm system activation, no fire - unintentional 12/17/2024 12:24 PM 241217-MNT09451 0:04:35 8TH AVE CAMINO REAL ST 2 Medical Alarm Device Activation - unintentional 12/4/2024 11:46 AM 241204-MNT08983 0:04:14 LOBOS ST 1ST AVE 3 19 0:03:57
Code 2 Calls 28
Code 3 Calls 55
83 96%
Over 5 Minute Response Times Cause of Delay: Code 3 Responses Total # of Incidents
% Under 5 Minute Response Time
241210-MNT09144 E15 delayed due to distance
241214-MNT09261 E15 delayed due to weather
700 Series (False Alarms)
500 & 600 Series (Service Calls) cont.
24 12 Carmel Fire Activity Report.xlsx 3
Type of Call Number Average Response Time
Fire 0 0:00
EMS 28 3:12
Rescue 2 3:16
Hazardous Condition 9 3:39
Service Calls 25 3:46
Severe Weather 0 0:00
False Call 19 3:57
Total Responses 83 3:34
Total Code 3 Calls: 55
Response Times for Code 3
Calls ≤ 5 minutes: 96%

CARMEL-BY-THE-SEA
DECEMBER 2024
Response Summary Report by Incident Type
Fire
0%
EMS
34%
Rescue
2%
Hazardous Condition
11%
Service Calls
30%
Severe
Weather
0%
False Call
23%
Fire
EMS
Rescue
Hazardous Condition
Service Calls
Severe Weather
False Call
S:\600-Public-Safety\601-Fire-Safety-Admin\601-05-Fire-Services-OtherAgencies\Carmel\Carmel Monthly Response Report\24 12 Carmel Fire Response Summary.xlsx 1/7/2025 Incident Alarm Date Incident Number Response
Time Combined Address Cross Street Priority
100 Series (Fires)
Chimney or flue fire, confined to chimney or flue 12/18/2024 08:07 AM 241218-CFA01338 00:02:57 CARPENTER ST 2ND AVE 3 Passenger vehicle fire 12/10/2024 03:18 PM 241210-CFA01309 00:02:32 DOLORES ST 5TH AVE 3 2 0:02:45
300-321 Series (EMS)
EMS call, excluding vehicle accident with injury 12/01/2024 10:17 AM 241201-CFA01273 00:03:06 MONTE VERDE ST 6TH AVE 3 EMS call, excluding vehicle accident with injury 12/03/2024 08:16 AM 241203-CFA01278 00:02:44 DOLORES ST 4TH AVE 3 EMS call, excluding vehicle accident with injury 12/03/2024 08:05 PM 241203-CFA01283 00:02:59 JUNIPERO AVE 5TH AVE 3 EMS call, excluding vehicle accident with injury 12/04/2024 09:39 AM 241204-CFA01285 00:02:32 6TH AVE MONTE VERDE ST 3 EMS call, excluding vehicle accident with injury 12/08/2024 12:28 PM 241208-CFA01300 00:02:44 OCEAN AVE GUADALUPE ST 3 EMS call, excluding vehicle accident with injury 12/10/2024 02:51 AM 241210-CFA01306 00:05:17 DOLORES ST 13TH AVE 3 EMS call, excluding vehicle accident with injury 12/12/2024 03:02 AM 241212-CFA01313 00:04:41 SW CORNER 2ND AVE CASANOVA AVE 3 EMS call, excluding vehicle accident with injury 12/14/2024 12:26 AM 241214-CFA01317 00:03:33 MISSION ST 7TH AVE 3 EMS call, excluding vehicle accident with injury 12/14/2024 06:30 AM 241214-CFA01320 00:05:46 CAMINO REAL ST 10TH AVE 3 EMS call, excluding vehicle accident with injury 12/14/2024 04:32 PM 241214-CFA01322 00:02:33 DOLORES ST 5TH AVE 3 EMS call, excluding vehicle accident with injury 12/14/2024 06:36 PM 241214-CFA01328 00:02:37 LINCOLN ST 7TH AVE 3 EMS call, excluding vehicle accident with injury 12/15/2024 03:42 PM 241215-CFA01333 00:03:49 CARMELO ST 11TH AVE 3 EMS call, excluding vehicle accident with injury 12/18/2024 02:06 PM 241218-CFA01341 00:02:12 GUADALUPE ST 2ND AVE 3 EMS call, excluding vehicle accident with injury 12/18/2024 03:17 PM 241218-CFA01342 00:02:38 CAMINO REAL ST 4TH AVE 3 EMS call, excluding vehicle accident with injury 12/19/2024 02:10 PM 241219-CFA01344 00:03:10 CAMINO REAL ST 4 SW OF 10TH AVE 3 EMS call, excluding vehicle accident with injury 12/23/2024 11:49 AM 241223-CFA01355 00:02:59 GUADALUPE ST 5TH AVE 3 EMS call, excluding vehicle accident with injury 12/23/2024 08:35 PM 241223-CFA01357 00:03:56 SAN CARLOS ST VISTA AVE 3 EMS call, excluding vehicle accident with injury 12/25/2024 11:26 AM 241225-CFA01360 00:05:00 SANTA FE ST 1ST AVE 3 EMS call, excluding vehicle accident with injury 12/25/2024 12:17 PM 241225-CFA01361 00:04:00 OCEAN AVE SCENIC RD 3 EMS call, excluding vehicle accident with injury 12/25/2024 06:20 PM 241225-CFA01384 00:04:58 11TH AVE CARMELO ST 3 EMS call, excluding vehicle accident with injury 12/26/2024 01:30 PM 241226-CFA01364 00:06:38 3640 RIO RD 3 EMS call, excluding vehicle accident with injury 12/28/2024 01:48 PM 241228-CFA01371 00:03:42 OCEAN AVE MISSION ST 3 EMS call, excluding vehicle accident with injury 12/28/2024 02:39 PM 241228-CFA01372 00:02:53 OCEAN AVE SCENIC RD 3 EMS call, excluding vehicle accident with injury 12/28/2024 09:20 PM 241228-CFA01376 00:02:48 CAMINO REAL ST 8TH AVE 3 EMS call, excluding vehicle accident with injury 12/29/2024 03:48 PM 241229-CFA01379 00:04:07 SAN ANTONIO AVE 10TH AVE 3 EMS call, excluding vehicle accident with injury 12/29/2024 06:34 PM 241229-CFA01380 00:03:01 SAN CARLOS ST 13TH AVE 3 EMS call, excluding vehicle accident with injury 12/30/2024 03:45 AM 241230-CFA01382 00:03:27 DOLORES ST 5TH AVE 3

RESPONSE SUMMARY REPORT BY INCIDENT TYPE
27015 CARMEL-BY-THE-SEA FIRE AMBULANCE
Alarm Date From: 12/01/2024 To: 12/31/2024
24 12 CFA Activity Report.xlsx 1
Incident Alarm Date Incident Number Response
Time Combined Address Cross Street Priority
300-321 Series (EMS) cont.

EMS call, excluding vehicle accident with injury 12/30/2024 01:01 PM 241230-CFA01383 00:01:30 NW CORNER MISSION ST 6TH AVE 3 28 0:03:33
322-399 Series (Rescues)
Removal of victim(s) from stalled elevator 12/13/2024 10:51 PM 241213-CFA01316 00:03:21 MISSION ST 4TH AVE 2 Water & ice-related rescue, other 12/28/2024 04:11 PM 241228-CFA01373 00:02:14 OCEAN AVE SCENIC RD 3 2 0:02:47
400 Series (Hazardous Material)
Hazardous condition, other 12/03/2024 07:48 PM 241203-CFA01282 00:02:20 SAN CARLOS ST 6TH AVE 3 Hazardous condition, other 12/14/2024 05:28 AM 241214-CFA01319 00:06:09 LINCOLN ST 11TH AVE 3 Hazardous condition, other 12/14/2024 07:28 AM 241214-CFA01324 00:01:39 OCEAN AVE TORRES ST 3 Hazardous condition, other 12/14/2024 08:31 AM 241214-CFA01325 00:01:56 MONTE VERDE ST 12TH AVE 3 Hazardous condition, other 12/14/2024 08:22 AM 241214-CFA01323 00:01:00 8TH AVE MISSION ST 3 5 0:02:37
500 & 600 Series (Service Calls)
Service Call, other 12/01/2024 05:03 PM 241201-CFA01276 00:03:56 CARMELO ST 11TH AVE 2 Water or steam leak 12/06/2024 05:27 PM 241206-CFA01295 00:04:15 SANTA FE ST 6TH AVE 2 Public service assistance, other 12/26/2024 11:05 AM 241226-CFA01363 00:05:28 3RD AVE SANTA FE ST 2 Assist invalid 12/23/2024 08:51 PM 241223-CFA01358 00:06:19 25995 RIDGEWOOD RD 2 Assist invalid 12/26/2024 09:14 AM 241226-CFA01362 00:03:47 3RD AVE SANTA FE ST 2 Vicinity alarm (incident in other location) 12/15/2024 05:41 PM 241215-CFA01335 00:03:15 JUNIPERO AVE OCEAN AVE 3 5 0:04:30
700 Series (False Alarms)
False alarm or false call, other 12/05/2024 01:47 PM 241205-CFA01289 00:03:58 SANTA RITA ST 3RD AVE 3 Alarm system activation, no fire - unintentional 12/12/2024 12:18 PM 241212-CFA01315 00:03:05 OCEAN AVE LINCOLN ST 3 Alarm system activation, no fire - unintentional 12/29/2024 08:50 PM 241229-CFA01381 00:03:55 8TH AVE CASANOVA ST 3 3 0:03:39
Code 2 Calls 6
Code 3 Calls 40
46 93%
Total Average Response Time 0:03:18
Over 5 Minute Response Times Cause of Delay: Code 3 Responses Total # of Incidents
% Under 5 Minute Response Time
241210-CFA01306 Delayed due to distance.
241214-CFA01320 Delayed due to distance.
241214-CFA01319 Delayed due to distance.
24 12 CFA Activity Report.xlsx 2
Incident Alarm Date Incident Number Response
Time Combined Address Cross Street Priority

CYPRESS
EMS call, excluding vehicle accident with injury 12/1/2024 241201-CFA01275 00:05:38 26245 CARMEL RANCHO BLVD 3 EMS call, excluding vehicle accident with injury 12/1/2024 241201-CFA01277 00:07:09 3479 LAZARRO DR 3 EMS call, excluding vehicle accident with injury 12/3/2024 241203-CFA01281 00:05:46 24750 LOWER TRL 3 EMS call, excluding vehicle accident with injury 12/7/2024 241207-CFA01299 00:04:58 26208 ATHERTON DR 3 EMS call, excluding vehicle accident with injury 12/11/2024 241211-CFA01312 00:03:45 3470 RIO RD 3 EMS call, excluding vehicle accident with injury 12/15/2024 241215-CFA01334 00:05:55 143 CROSSROADS MALL 3 EMS call, excluding vehicle accident with injury 12/18/2024 241218-CFA01339 00:04:23 25915 S CARMEL HILLS DR 3 EMS call, excluding vehicle accident with injury 12/23/2024 241223-CFA01353 00:09:31 4000 RIO RD 2 EMS call, excluding vehicle accident with injury 12/26/2024 241226-CFA01364 00:06:38 3640 RIO RD 3 EMS call, excluding vehicle accident with injury 12/27/2024 241227-CFA01367 00:07:10 26245 CARMEL RANCHO BLVD 2 EMS call, excluding vehicle accident with injury 12/23/2024 241223-CFA01354 00:08:33 25517 HACIENDA PL 3 EMS call, excluding vehicle accident with injury 12/28/2024 241228-CFA01374 00:05:26 24342 SAN JUAN RD 3 Motor vehicle accident with injuries 12/23/2024 241223-CFA01359 00:09:33 25085 PINE HILLS DR 3 Motor vehicle/pedestrian accident (MV Ped) 12/3/2024 241203-CFA01279 00:05:19 555 CARMEL RANCHO SHOPPING CENTER 3 Motor vehicle accident with no injuries. 12/9/2024 241209-CFA01304 00:06:22 118 CROSSROADS BLVD 3 15 0:06:24

MONTEREY
EMS call, excluding vehicle accident with injury 12/3/2024 241203-CFA01280 00:05:12 200 IRIS CANYON RD 3 EMS call, excluding vehicle accident with injury 12/4/2024 241204-CFA01287 00:11:01 200 IRIS CANYON RD 3 EMS call, excluding vehicle accident with injury 12/9/2024 241209-CFA01303 00:12:07 1533 MTY SNS HWY 3 EMS call, excluding vehicle accident with injury 12/9/2024 241209-CFA01305 00:12:18 600 MUNRAS AVE 3 EMS call, excluding vehicle accident with injury 12/12/2024 241212-CFA01314 00:14:56 715 CARMEL AVE 3 EMS call, excluding vehicle accident with injury 12/15/2024 241215-CFA01330 00:06:38 1100 ALAMEDA ST 3 EMS call, excluding vehicle accident with injury 12/26/2024 241226-CFA01365 00:12:00 PEARL ST TYLER ST 2 EMS call, excluding vehicle accident with injury 12/27/2024 241227-CFA01369 00:09:52 2 UPPER RAGSDALE DR 3 EMS call, excluding vehicle accident with injury 12/28/2024 241228-CFA01377 00:09:11 100 BARNET SEGAL LN 3 Removal of victim(s) from stalled elevator 12/15/2024 241215-CFA01336 00:05:00 200 GLENWOOD CIRCLE 3 Assist invalid 12/10/2024 241210-CFA01310 00:14:25 399 DRAKE AVE 2 11 0:10:15

PACIFIC GROVE
EMS call, excluding vehicle accident with injury 12/14/2024 241214-CFA01327 00:10:15 1229 DAVID AVE 3 EMS call, excluding vehicle accident with injury 12/22/2024 241222-CFA01350 00:11:06 651 SINEX AVE 3 2 0:10:41

RESPONSE SUMMARY REPORT BY DISTRICT
27015 CARMEL-BY-THE-SEA FIRE AMBULANCE
Alarm Date From: 12/01/2024 To: 12/31/2024
24 12 CFA Activity Report.xlsx 1
Incident Alarm Date Incident Number Response
Time Combined Address Cross Street Priority

PEBBLE BEACH
EMS call, excluding vehicle accident with injury 12/4/2024 241204-CFA01288 00:08:05 1500 CYPRESS DR 3 EMS call, excluding vehicle accident with injury 12/8/2024 241208-CFA01302 00:11:33 1556 VISCAINO RD 3 EMS call, excluding vehicle accident with injury 12/10/2024 241210-CFA01311 00:09:07 1445 RIATA RD 3 EMS call, excluding vehicle accident with injury 12/14/2024 241214-CFA01329 00:13:20 3058 SLOAT RD 3 EMS call, excluding vehicle accident with injury 12/17/2024 241217-CFA01337 00:08:13 1471 RIATA RD 3 EMS call, excluding vehicle accident with injury 12/21/2024 241221-CFA01348 00:09:50 3210 MACOMBER DR 3 EMS call, excluding vehicle accident with injury 12/23/2024 241223-CFA01356 00:12:59 2700 SEVENTEEN MILE DR 3 EMS call, excluding vehicle accident with injury 12/28/2024 241228-CFA01375 00:08:21 1518 CYPRESS DR 3 8 0:10:11

SEASIDE
EMS call, excluding vehicle accident with injury 12/6/2024 241206-CFA01296 00:13:46 1055 FREMONT BLVD 2 EMS call, excluding vehicle accident with injury 12/18/2024 241218-CFA01343 00:16:00 1600 CANYON DEL REY BLVD 3 2 0:14:53
Code 2 Calls 5
Code 3 Calls 33
38 Total Average Response Time 0:10:29
Total # of Incidents
24 12 CFA Activity Report.xlsx 2
District Response Number Average Response Time
Carmel-By-The-Sea 46 3:18
Carmel Highlands 0 0:00
Carmel Valley 0 0:00
Cypress 15 6:24
Mid Coast 0 0:00
Monterey 11 10:15
Pacific Grove 2 10:41
Pebble Beach 8 10:11
Seaside 2 14:53
Total Responses 84 9:17
Total Code 3 Calls: 40
CFA Response Times for Code 3
Calls ≤ 5 minutes: 93%

CITY OF CARMEL - FIRE AMBULANCE DEPARTMENT
DECEMBER 2024
Response Summary Report by District Type
Carmel-By-The-Sea
55%
Carmel Highlands
0%
Carmel Valley
0%
Cypress
18%
Mid Coast
0%
Monterey
13%
Pacific Grove
2%
Pebble Beach… Seaside…
Carmel-By-The-Sea
Carmel Highlands
Carmel Valley
Cypress
Mid Coast
Monterey
Pacific Grove
Pebble Beach
Seaside
S:\600-Public-Safety\601-Fire-Safety-Admin\601-05-Fire-Services-OtherAgencies\Carmel\CFA Reports\24 12 CFA Response Summary.xlsx 1/7/2025 City Clerk PRA Log
December 2024
request
number
Date
Requested
10-day
response
date
14-day
extension
due date
records requested requestor
date
completed
notes
2024-120 12/9/2024 12/19/2024
an electronic copy of the
lease/purchase/rental agreement(s)
via email for the mailing
equipment/postage meeter used by
the City of Carmel.

Chistina Sparks 12/10/20214 records sent.
2024-121 12/12/2024 12/23/2025 1/16/2025
all checks, payment, spends that the
city of Carmel has made pertaining to
the Flanders mansion in the past 25
years. This could be lawsuit
payments, environmental reports,
and business expense related to the
Flanders mansion.

Robert Knight on-going
requested
clarification from
requester on
12/12/2024. No
response received 10
days later. PRA
deadline extended
due to GC 7922.535( c
)(2). First set of
records sent on
1/17/2025, and will
continue to send
records on a rolling
basis.
2024-122 12/16/2024 12/26/2024 Copy of police report from a trip and fall on 10/30/24. Edwin Joseph Exkert 12/18/24
(sent to PD)
sent request to the
Police Department.

Notified requester on
12/18/24 that police
reports are requested
throught the PD
records dept. and
provided contact info.
2024-123 12/16/2024 12/26/2024 property records on San Carlos 5 SW of 10th
Diana Mercer,
Compass 12/18/2024
records are digitized
and available online.

Sent link to records on
12/18/24.
2024-124 12/19/2024 12/30/2024
Property records re: Carmel Valley
Ranch, located at 1 Old Ranch Road
Carmel by the Sea, CA
Dana Cikankova,
Bureau Veritas 12/23/2024
no records exist
(location in the
County). Sent contact
info for the County to
the requester.
2024-125 12/23/2024 1/2/2025 1/10/2025
the obligations of your local/state
government to list the name and
annual salary of your employees; [2]
the mechanism and the website in
use by your local/state government
for the purpose of listing the name
and annual salary of your employees;
[3] the decision of the Missouri state
government to identify Michael A.

Ayele (a.k.a) W as a former employee
of the Missouri Department of Mental
Health (MODMH) Fulton State
Hospital (FSH) who has earned
approximately (i) $19,189 (nineteen
thousand one hundred and eightynine American dollars) in Calendar Year 2013; (ii) $2,322 (two thousand
three hundred and twenty two
American dollars) in Calendar Year
2014; ....(see request 100+ pages)
Michael A. Ayele 1/6/2025
PRA is 155 pages long.

Request deadline
extended to 1/10/2025
due to office closure
12/23/24 through
1/1/2025. Sent
response to requester
on 1/6/2025.

Attachment 3
City Clerk PRA Log (Continued)
request
number
Date
Requested
10-day
response
date
14-day
extension
due date
records requested requestor
date
completed
notes
2024-126 12/16/2024 12/26/2024 1/6/2025
Please provide me with Residential
Building Permit info for:
1- ALL New SFD's issued permits;
2- ALL residential additions,
remodels exceeding $100,000 in job
value; 3- ALL Swimming Pool
projects AND Outdoor Kitchens; 4-
from DEC 1 2024, through DEC 15 2024
Steve Kenny 1/6/2025
Request deadline
extended to 1/6/2025
due to office closure
12/24/24 - 1/2/2025.

Records sent 1/6/2025
2024-127 12/17/2024 1/2/2025 1/16/2025
all communications between and
among the Planning Commission
(who permitted the project), the
Forest and Beach Commission (who
manages the urbanized forest), the
City Council (who oversees the
Commissions), and the staff who
would be involved in such
communications, if any, regarding
the illegal trenching that damaged
tree roots during construction of the
"San Carlos 3NE of First Homes".

Charles Najarian 1/3/2025
Request deadline
extended to 1/16/2025
due to office closure
and per GC 7922.535(
c )(2). Sent first batch
of responsive records
to requester on
1/3/2025. Will let
requester know if we
find anything else.
2024-128 12/29/2024 1/8/2025 1/20/2025
all Vendors used by Public Works,
and all purchase orders by public
works from 01-01-2022 through
present, and "all invoices" paid by
public works, 1-1-2022 to present.

Justin Cunningham,
Zipbuffalo.com 1/9/2025
Request deadline
extended to 1/16/2025
due to office closure
12/24/24 - 1/2/2025.

Records sent on
1/9/2025.

Attachment 3
Police Records Request Log
December 2024
Request
No.

Request Date &
Received By
10-Day
Due Date
Info
Requested Requestor
Date
Completed by
PSO
Status Date & PSO Mailed
2024-0001 12/02/2024 NS 12/12/2024 CG2400523 Metropolitan Reporting Bureau
12/02/2024 NS Completed Mailed 12/02/2024 NS
2024-0002 12/02/2024 NS 12/12/2024 CA2400570 Lisa Getline 12/03/2024 NS Completed Picked up 12/03/2024 NS
2024-0003 12/3/2024 NS 12/13/2024 CA2400565 Charles Leonard 12/04/24 mw Completed Mailed 2024-0004 12/3/2024 NS 12/13/2024
8/18
Guad/2nd &
911 Calls
Briana Ruiz - David Ricks
Law
12/06/24 mw Completed Mailed mw
2024-0005 12/04/24 mw 12/14/2024 CC2400462 Lexis Nexis 12/06/24 mw Completed Mailed mw 2024-0006 12/5/2024 AI 12/15/2024 CG2400499 Steven Read/prop owner 12/09/24 mw denial letter
mailed mailed mw
2024-0007 12/06/24 mw 12/16/2024
CA2300015
report
photos
Doyle Law, APC / Lemmon 12/23/24 mw Completed mailed
2024-0008 12/9/2024 NS 12/19/2024 CA2400562 Alex Rodriguez 12/9/2024 NS Completed Picked up 12/9/2024 NS
2024-0009 12/09/24 mw 12/19/2024 CA2400371 makkabilaw 12/09/24 mw Completed mailed 2024-0010 12/13/2024 AI 12/23/2024
CA2400553/r
edacted Kalin, Nickolas 12/24/24 mw
Canceled
request
spoke w/ wife of
Nickolas Kalin who
advd no longer
needed insurance co
settled. ALI 01-06-
2025
2024-0012 12/17/2024 JK 12/27/2024
CA2400570
redacted
Lexis Nexis 12/23/2024 AI Completed Mailed 12/23/2024 AI 2024-0013 12/17/2024 12/27/2024 CG2400465 Lexis Nexis 12/23/24 mw not
releasable -
mailed
2024-0014 12/16/2024 12/26/2024
CG2400460
redacted
T. Hill 12//23/24 mw Completed Mailed
2024-0015 12/18/24 mw 12/28/2024 CG2400532 Edwin Eckert 12/24/24 mw Completed mailed 2024-0016 12/20/24 mw 12/30/2024
Hate Crimes
(2021-2024) KAZU, Elena Neale-Sacks
14-day
extension to
1/12/2025.
01/13/25 mw
Completed emailed
2024-0017 12/27/2024 JK 1/6/2025 no report Lexis Nexis 12/29/24 JK Completed mailed 2024-0018 12/29/24 mw 1/8/2025 Vendors/PO Justin Cunnigham FOIA request
1/6/2025 sent to City
Clerk City Clerk responded
Attachment 3

CITY OF CARMEL-BY-THE-SEA
Public Works Department
December 2024 Report
City Council Meeting of December 3, 2024
• Adopted Resolution 2024-098 authorizing the City Administrator to execute a construction contract with Coastal Paving & Excavating, Inc., in an amount, including contingency, of $1,285,185, for Projects #1, 2, and 3 of the Drainage System Repairs Projects. • Received a Report regarding the Public Works Department Services, Key Accomplishments over the past seven years, and the 2024 Infrastructure Report Card.

Forest and Beach Commission Meeting of December 12, 2024 • Received a Report regarding the Public Works Department Services, Key Accomplishments over the past seven years, and the 2024 Infrastructure Report Card. • Adopted Interim Pickleball Runes in Forest Hill Park
• Adopted Forest and Beach Commission Meeting Dates for 2025. • City Forester presented the Forester’s Report for November 2024. • The Public Works Director presented the Public Works Department Report for November 2024.

Carmel Cares, Friends of Mission Trail Nature Preserve and Other Volunteer Groups • Volunteers from Carmel Cares regularly pick up trash on Carmel Beach and in the Downtown Carmel.
• Garden Club is working to maintain and beautify the City Hall gardens. • Friends of Mission Trail Nature Preserve have been cleaning brush throughout the Preserve throughout December 2024.

Environmental Programs
• For the MTNP 3 Drainage Projects, reviewed the restoration planting plan and verified final plant count.
• For the Coastal Engineering Study, Phase 2 Project, worked with the consultants to modify the draft Community Survey associated with Sea Level Rise based on feedback received at the November 14th Forest and Beach Commission meeting. Attended meetings to review the adaptation strategies matrix prepared by Integral.
• Reviewed and conducted final stormwater plan checks for private construction sites. • Worked with Carmel Area Wastewater District to clean out the City’s large storm drain Continuous Deflection Separator (CDS) units.
• Coordinated with City Staff regarding the CalRecycle procurement records. • Continued to update the SB 1383 recycling/organics program’s waiver process.

TO: Honorable Mayor and City Council Members
SUBMITTED BY: Mary Bilse, Acting Public Works Director
SUBMITTED ON: January 16, 2025
APPROVED BY: Chip Rerig, City Administrator
Attachment 4
• Coordinated City staff attendance at an annual training event, hosted by the Monterey Regional Stormwater Management Program, regarding implementation of Construction Best Management Practices and Site Inspections.
• Public service messages in Friday Letters included information on the Monterey Regional Stormwater Management Program and Our Water Our World to collaborate to offer less-toxic, eco-friendly products for pest control.

Facility Maintenance
• Upgraded the sump system in the Park Branch Library basement. • Enhanced the Park Branch emergency generator by adding additional emergency power circuits to the reading room.
• Installed touchless faucets in the main library restrooms at Harrison Memorial Library. • Replaced the failed retaining wall in the Flanders Mansion basement. • Completed roof maintenance, including roof tile and gutter work, at Flanders Mansion. • Replaced flooring and furniture in the Police Department's detective office. • Upgraded the security access system at the Norton Court parking garage. • Completed hydro-jetting of all plumbing lines at public restroom facilities. • Repaired the broken EV charger at Vista Lobos parking lot. • Repaired storm-damaged roof at Forest Theater stage facility. • Replaced a failed transfer switch for the Public Works/Police Department emergency generator.
• Upgraded the drinking fountain at Devendorf Park restrooms to ADA-compliant standards. • Assisted the IT Department with the repair of license plate reader cameras. • Installed a new wall and electrical circuits in the Park Branch Library Director's office. • Replaced all damaged window screens at the fire station.

Project Management for the Capital Improvement Program
4 Leaf Projects:
• For the Police Building Project, Council received a report from the Ad Hoc Committee and provided direction on authorizing Indigo/Hammond+Playle Architects to proceed with schematic design concepts to rehabilitate and expand the existing building on-site to accommodate the pragmatic functions of a contemporary police building.

Ausonio, Inc. Projects:
• For the City Hall Roof Replacement Project, contract was awarded to California Constructors in the amount of $175,340, which includes a 10% contingency, is complete. Construction is 99% complete and Contractor is working through their final punch list items. • The Sunset Center Cottage Window Repairs Project contract in the amount of $161,040, which includes a 10% contingency, to Pro-Ex Construction was awarded at the August City Council Meeting. Construction is 99% complete and Pro-Ex is working through their final punch list items.
• For the San Antonio Pathway Repair Project, Second to Fourth Avenues, contract was awarded at the October 2024 City Council meeting to Sharp Engineering and Construction in the amount of $503,470. Construction on this project began in December 2024 and is now 75% complete.
• For the Sunset Center Retaining Walls Repair Project, ZFA submitted 90% plans and technical specifications. An extra work authorization was issued to ZFA for repairs of two large cracks in another wall in the north parking lot. This project is being reviewed by Public Works staff and will go to Council for additional funding in Spring 2024.

Attachment 4
Wallace Group Projects:
• For the FY 2023/2024 City-wide Paving Project, staff is reviewing a proposed contract amendment for the creation of the FY 2024/25 conglomerate paving project approved by Council with a budget of 2.8 million. The design for this project is 95% complete and is expected to go out to bid in spring 2024.
• For the Shoreline Infrastructure Repair Project, the Request for Proposal was issued seeking coastal engineering and environmental firms to design and acquire environmental permitting for the repair of two structurally-damaged beach access stairs, reconstruction of the Fourth Avenue seawall/outfall, and to assess, prioritize, and provide cost estimates for all other shoreline infrastructure identified in the Coastal Engineering Study, Phase 1 Condition Assessment Report. The City selected Moffett and Nichol and are currently working on contract negotiations.

Additional Capital Improvement Projects:
• For the Cal Am Water Dolores Water Main Replacement Project, this project is now complete and the encroachment permit has been closed.
• For the MTNP 3 Drainage Projects, which includes drainage piping near the Rio Road entrance, an 85-foot boardwalk over a bog, and reconstruction of a large swale. This project was awarded to Monterey Peninsula Engineers in the summer of 2024, and construction was completed by the end of 2024.
• For the four City-wide Drainage Improvement Projects, Neill Engineering completed plans and technical specifications. The project was advertised in September 2024 and the contract was awarded to Coastal Paving & Excavation in January 2025. The anticipated start of construction is February 2025.

Street Maintenance
• Assisted CAWD with vacuuming three of our four CDS units. • Completed painting of curbs associated with AB 413.
• Assisted the Forestry Division for one week with storm clean-up. • Repaired eight traffic signs damaged during the December storm. • Completed smog testing on 10 City owned vehicles.
• Removed eight piles of debris from MTNP.
• Finished placing wood chips on Willow Trail in MTNP.
• Continued filing in tree wells in the downtown area with decomposed granite for safety. • Continued making priority sidewalk repairs.
• Began installing rock-lined drainage channel at San Carlos and Second Avenue to prevent further erosion.

Forestry, Parks, and Beach
• Refer to City Forester’s Report (attached).

Attachment 4

CITY OF CARMEL-BY-THE-SEA
Monthly Report
City Forester’s Report
Forestry, Parks, and Beach Highlights:

Carmel Forest Master Plan (CFMP):
• Staff held interviews with three environmental consulting firms to select a consultant for the CEQA review of the Administrative Draft of the Forest Master Plan. A consultant was selected and is being notified.
• Staff received editable documents from Davey Resource Group (DRG) and officially took over final revision of the master plan. Edits will encompass public feedback from the October 2024 Steering Committee meetings.

Contractors:
• Landscape maintenance contractor Town & Country continues to provide landscape maintenance services along the Scenic Pathway previously funded by Carmel Cares. This contractor also continues their landscape maintenance throughout the city with new task orders issued for the watering of newly planted trees and relocation of an irrigation box on the Scenic Pathway. • City Contractor Tope’s Tree Service continued working on a task order including 40 dead or dying trees for removal or pruning.
• New task orders are being compiled for West Coast Arborists and Community Tree Service and will be sent by late mid/late January.

City Staff and Crews:
• City crew cleared vegetation for facilitation of the San Antonio Pathway reconstruction south of Pebble Beach entrance.

As shown in the following tables and charts, the calendar year 2024 forestry statistics included:
• Number of City trees removed = 193 (5% reduction from 2023) • Number of City stumps removed = 112 (86% increase – *not including 2023 contractors*) • Number of City trees pruned = 228 (21% decrease from 2023) • Number of City trees planted = 174 (67% increase from 2023) • Number of tree permit applications received = 391 (4% increase from 2023) • Number of tree permits applications resolved = 336 (16% increase from 2023) • Number of private trees removed = 231 (32% decrease from 2023) • Number of private trees required to be replanted = 231 (2% decrease from 2023) • Private tree removal permit required replant percentage = 100% (31.17% increase) • Number of Communications (Fresh Desk) tickets received = 2270 (5% increase from 2023) • Number of Communications (Fresh Desk) tickets resolved = 2619 (24% increase from 2024) TO: Forest and Beach Commissioners
FROM: Justin Ono, City Forester
SUBJECT: December 2024 Forester’s Report
Attachment 1 Attachment 4
Tree
permits
received
Tree
permits
Issued
Site
Inspections
Performed
Total
Prunings
Total
Removals
Removal
of Upper
Removal
of Lower
Required
to Plant
Upper
Required
to Plant
Lower
No room
for new
tree
Meets
Density
Rec.

Total
Number
of Trees
Required
January 17 12 1 4 8 6 2 5 1 0 2 6
February 49 21 4 6 21 11 10 3 3 0 0 6
March 26 20 3 5 27 14 13 4 7 0 0 11
April 20 16 3 3 15 8 7 5 5 0 0 10
May 27 7 4 3 8 5 3 2 1 0 0 3
June 28 21 8 17 21 5 16 4 5 2 11 9
July 35 31 9 5 16 8 8 11 15 0 1 26
August 29 23 8 13 13 8 5 7 9 0 1 16
September 41 49 15 22 46 16 30 36 25 0 1 61
October 45 24 11 19 21 9 12 11 12 0 2 23
November 24 22 8 12 16 8 8 16 18 0 4 34
December 26 29 9 8 19 12 7 14 12 0 3 26
2024 Totals 367 275 83 117 231 110 121 118 113 2 25 231 2024 Permitted removals, pruning, and required planting . Permit Information
Attachment 1 Attachment 4

Re-planting of upper Re-planting of lower
2013 31 29
2014 35 20
2017 15 28
2018 1 18
2019 53 63
2020 70 28
2021 81 54
2022 48 37
2023 164 72
2024 118 113
Historic permitted removals and required planting
Historic permitted removals and required planting
Year
Permitted
removals
Removal
of upper
Removal
of lower
Replanting
Required
Replanting
of upper
Replanting
of lower
Replanting
%
Applications
processed
2021 204 81 123 135 81 54 66.18% 213
2022 149 82 67 85 48 37 57.05% 155
2023 324 211 113 223 164 72 68.83% 336
2024 231 110 121 231 118 113 100.00% 391
Attachment 1 Attachment 4
*Numbers only represent correspondences received via the City’s website and do not incude live calls, voicemails, drop-in visitors, and emails sent directly to employees from residents, nor return calls and emails from staff.

City Forestry, Parks, and Beach Activities Attachment 1 Attachment 4

CITY OF CARMEL-BY-THE-SEA

CITY COUNCIL
Staff Report
February 3, 2025
CONSENT AGENDA (Estimated time - 5 min)
TO: Honorable Mayor and City Council Members
SUBMITTED BY: Jane Hogan, Accountant
APPROVED BY: Chip Rerig, City Administrator
SUBJECT: December 2024 Check Register Summary
RECOMMENDATION:

Approve the check register for December 2024.

BACKGROUND/SUMMARY:

The check register is a financial report generated from the City's financial system (Attachment 1). It categorizes checks by the responsible department or function, providing essential information such as the check number, vendor name, purchase description, check issue date, and the check amount.

Per the California Supreme Court's decision in the case of Los Angeles County Board of Supervisors v.

Superior Court (Dec. 29, 2016) (2016 WL 7473802), the check register excludes the specific invoice payments for legal services incurred for pending and active investigations, pending and active litigation, as well as recently concluded matters. The Supreme Court has ruled that these specific invoices are protected under attorney-client privilege and therefore are not subject to disclosure under the Public Records Act.

As a supplement to the check register, staff have included information about the contract balances for vendors who received payments during the month of October 2024. This data can be found on the last page of the report.

The check register provides valuable insights into the City's financial transactions, ensuring transparency and accountability in our financial operations. The exclusion of certain legal services payments adheres to the California Supreme Court's guidelines, safeguarding attorney-client privilege. The contract balance information further enhances our financial transparency.

FISCAL IMPACT:

The check register summary for December 2024, totals $1,114,950.14.

PRIOR CITY COUNCIL ACTION:

Council ratified the November 2024 check register at the January 13, 2025 special council meeting.

ATTACHMENTS:

Attachment 1) December 2024 Check Register
December 2024 Check Register
Check No. Vendor/Employee Transaction Description Date Amount Department: 000 ___
121024001 CALPERS Health premium - Active premiums 12/10/2024 134,248.78 Total for Department: 000 ___ 134,248.78
Department: 110 City Council
54722 Carmel High School Mock Trial Team Discretionary Grant 12/04/2024 1,000.00 54756 Peninsula Messenger LLC Mail service sorting and delivery 12/10/2024 7,744.00 54870 Petty Cash Meeting drinks and ice 12/23/2024 16.56 54882 US Bank Safeway: Election party supplies 12/23/2024 209.96 54882 US Bank Lucky: Election party supplies 12/23/2024 86.93 54882 US Bank League of Ca Cities: conference fee 12/23/2024 1,350.00 Total for Department: 110 City Council 10,407.45
Department: 111 City Administration
54736 Alhambra Water service-City Hall 12/10/2024 164.37 54738 Amazon Web Services Inc Data and cloud storage fees 12/10/2024 503.62 54740 AT&T Telephone service citywide 12/10/2024 2,443.62 54741 Benefit Coordinators Corporation (BCC) Cobra Monthy Admin Fee 12/10/2024 83.60 54744 Chavan and Associates, LLC Financial auditing services 12/10/2024 6,825.00 54745 Comcast City Hall cable service 12/10/2024 68.52
54746 Digital Deployment Website support agreement:Maint, training, security and updates 12/10/2024 700.00 54747 FedEx Shipping fees: Volume Study, CP&B Dept. 12/10/2024 7.71 54748 Grasings/The Carmel Restaurant Group Catering-City Christmas party 12/19/2024 12/10/2024 4,600.00 54749 Iron Mountain Records storage and management services 12/10/2024 621.24 54760 T-Mobile Monthly cell service, usage and purchases 12/10/2024 1,028.44 54765 AT&T Telephone service citywide 12/13/2024 1,053.09 54779 Complete Paperless Solutions Laserfiche Cloud services-Annual renewal 12/13/2024 3,255.00 54810 SRS Private Investigations Pre-employment report services 12/13/2024 145.00 54821 Verizon Wireless Cell phone sales and usage 12/13/2024 6,435.79 54826 AT&T Telephone service Citywide 12/19/2024 1,025.70 54828 Comcast Business NonNGEN internet and recurring charges 12/19/2024 1,288.80 54829 IAMP Pro Audio/Anthony J. Nocita Set-up, live production, associated support of city meetings and 12/19/2024 2,850.00 54830 James Pingree Employee appreciation 12/19/2024 400.00 54832 Office Depot, Inc. Office supplies Admin 12/19/2024 629.53 54835 Regional Government Services Payroll services 12/19/2024 5,681.00 54839 US Bank New York Times: Digital subscription 12/19/2024 23.00 54839 US Bank Terry's Lounge: Employee appreciation lunches 12/19/2024 127.86 54839 US Bank Terry's Lounge: Employee appreciation lunches 12/19/2024 69.68 54839 US Bank Carmel Drug Store: Office supplies 12/19/2024 5.54 54839 US Bank Grasings: Employee appreciation lunches 12/19/2024 47.53 54841 Xerox Financial Services Xerox copier leases citywide 12/19/2024 2,905.06 54856 Amazon Capitol Services IT Supplies and Equipment 12/23/2024 33.85 54858 Benefit Coordinators Corporation (BCC) Admin fees 12/23/2024 83.60 54870 Petty Cash HR lunch meeting - pre employment 12/23/2024 21.72 54870 Petty Cash HR printing lamination 12/23/2024 23.21 54870 Petty Cash HR conference parking 12/23/2024 24.00 54870 Petty Cash HR panel lunch 12/23/2024 89.84
54882 US Bank Winner Awards: Outgoing Councilmember plaques 12/23/2024 360.53 54882 US Bank Rite Aid: Gift bags 12/23/2024 28.27
54882 US Bank Microsoft - Azure monthly subscription 12/23/2024 896.94 54882 US Bank Junction Networks - OnSip telephone 12/23/2024 879.77 54882 US Bank Junction Networks - OnSip telephone 12/23/2024 382.74 54882 US Bank FreshWorks - monthly subscription 12/23/2024 750.00 54882 US Bank Bitwarden - Password manager subscription 12/23/2024 30.00 54882 US Bank Zoom - monthly subscription 12/23/2024 667.84 54882 US Bank Metrofax - monthly subscription 12/23/2024 11.95 54882 US Bank Adobe - monthly subscription 12/23/2024 775.12 54882 US Bank BackBlaze - Cloud storage subscription 12/23/2024 79.01 54882 US Bank Google Cloud 12/23/2024 2.31
54882 US Bank Junction Networks - OnSip telephone 12/23/2024 382.17 121024001 CALPERS Health premium - Admin Fees 12/10/2024 411.76 Total for Department: 111 City Administration 48,923.33 Department: 112 City Attorney
54759 Sloan Sakai Yeung & Wong Legal services - Classifications Study 12/10/2024 3,587.00 54767 Best Best & Krieger, Attorney At Law Legal services - Telecommunications Issue 12/13/2024 2,178.50 Attachment 1
54827 Burke,Williams & Sorensen, LLP City Attorney services 12/19/2024 33,873.00 Total for Department: 112 City Attorney 39,638.50
Department: 115 Community Planning & Building
54754 Minuteman Press Postcard and business card printing 12/10/2024 782.44 54770 California Building Officials CALBO Education Week: Duane D., Jermel L. 12/13/2024 900.00 54784 EMC Planning Group, Inc FY 24-25: REAP Grant - - 6th Cycle Housing Element 12/13/2024 16,417.08 54787 Granicus, Inc. EHQ Basic 12/13/2024 148.04
Total for Department: 115 Community Planning & Bu 18,247.56 Department: 116 Police
54737 Amazon Capitol Services PD Supplies and Equipment 12/10/2024 52.42 54750 Jacob Clifford Training Expense:SU Session 12/16/2024 12/10/2024 876.20 54761 Wayside Garage Auto repairs PD 12/10/2024 3,182.85 54763 Alhambra Water service-Police Dept 12/13/2024 183.05 54766 Axon Enterprise, Inc PD: Bundled services Tech Assurance-Body Cameras 12/13/2024 19,775.65 54775 Chaplin and Hill Investigative Investigative services 12/13/2024 4,336.16 54781 County of Monterey, Dept of Emerg Communications NGEN Operations and maintenance Q3 FY 24-25 12/13/2024 6,036.00 54788 JD Repairs, Inc PD Auto repair services 12/13/2024 450.00 54812 Swift Car Wash Car washes Police Dept 12/13/2024 160.00 54813 T2 Systems Canada Inc. Repairs and battery replacement 12/13/2024 595.37 54814 T2 Systems, Inc Citation collection services-Mobil Pay Subs Nov 24 12/13/2024 196.24 54817 Transunion Risk & Alterna PD: Monthly fee for information services 12/13/2024 75.00 54823 Winners Awards Retirement plaque-Johnson 12/13/2024 217.41 54837 Solutions Office Interiors, Inc Pre-owned office furniture for Police Station 12/19/2024 3,368.88 54855 Alhambra Water service-Police Dept 12/23/2024 192.82 54863 Comcast Cable service PD 12/23/2024 39.31
54865 Department of Justice/Accounting Office PD:Fingerprinting services 12/23/2024 160.00 54873 Office Depot, Inc. PD Office supplies 12/23/2024 350.90 Total for Department: 116 Police 40,248.26
Department: 117 Fire
54763 Alhambra Water service-Fire Dept 12/13/2024 186.65 54764 American Supply Company Fire Dept janitorial supplies 12/13/2024 380.08 54777 City Of Monterey Fire Dept Vehicle repairs 12/13/2024 273,127.85 54781 County of Monterey, Dept of Emerg Communications Dispatch Service Q3 FY 234-25 12/13/2024 6,556.00 54794 Mission Linen Service Fire Dept laundry service 12/13/2024 540.95 Total for Department: 117 Fire 280,791.53
Department: 118 Ambulance
54768 Bound Tree Medical LLC Medical supplies 12/13/2024 245.11 54777 City Of Monterey Ambulance Administration fee 12/13/2024 2,268.50 54786 Golden State Truck & Trailer Ambulance repairs 12/13/2024 6,127.46 54801 Peninsula Welding & Medical Supply, inc. Ambulance Dept-Oxygen/hazardous materials transport service 12/13/2024 90.30 54862 City Of Monterey Ambulance overtime reimbursement for staffing by Monterey Fire 12/23/2024 4,477.20 Total for Department: 118 Ambulance 13,208.57
Department: 119 Public Works
54762 Ailing House Pest Control FM Pest control services Citywide 12/13/2024 359.00 54763 Alhambra Water for PW 12/13/2024 241.29
54771 California Marine Sanctuary Foundation Water quality monitring 11/25/24 #1222 12/13/2024 2,472.00 54772 California Premier Restoration Vista Lobos Offices 11/13/24 #241036.1 12/13/2024 15,000.00 54773 Caltronics Business Systems Removal of lease return PW Dept C364E ASC011025103 12/13/2024 350.00 54774 Carmel Towing & Garage Fuel for PW vehicles 12/13/2024 2,758.63 54776 Cintas Corporation Uniform Services 12/13/2024 688.37 54778 Community Tree Service Tree work in City 12/13/2024 8,545.00 54780 Consolidated Electrical Dist., Inc Parts for Devendorf Park electical emergency. 12/5/24 #4914-1051 12/13/2024 390.14 54789 Legacy Roofing and Waterproofing Inc FM Roof repairs Citywide 12/13/2024 550.00 54793 David Sollid Marina Backflow Company FM Backflow services 12/13/2024 2,598.50 54795 Monterey Bay Telecomm, Inc Trouble shhot alarm 12/9/24 #25342 12/13/2024 206.25 54797 Municipal Maintenance Equipment 6 gutter brooms for sweeper. 12/13/2024 1,913.43 54799 On Point Generators FM Generator services 12/13/2024 3,224.67 54800 Pacific Smog Smog certificates 12/13/2024 279.75
54803 Poe's Plumbing & Backflow FM Plumbing services Citywide 12/13/2024 927.50 54805 Robert Half Temp help in Forestry 12/13/2024 9,710.62 54806 Scarborough Lumber & Building Public Works Streets supplies 12/13/2024 229.60 54808 Sherwin-Williams Co. PW Paint and paint supplies 12/13/2024 311.92 54809 Solutions Office Interiors, Inc Office design/furniture for Vista Lobos 75%deposti and 25%when c 12/13/2024 8,617.28 54811 State Water Resources Control Board (SWRCB) Annual Permit Fee - #SW-0296689 Index # 611520 12/13/2024 7,279.00 54818 Tree Stuff Lockbox No 639707 Forestry Supplies 12/13/2024 41.77 54819 Uline Inc. Uline 12/13/2024 1,904.96
Attachment 1
54820 Val Gaino Mileage - Salinas Courthouse, NOE 12/13/2024 34.49 54824 Yvette Culver Mileage for NOC-Salinas recorders Office 12/13/2024 26.13 54854 Ailing House Pest Control FM Pest control services Citywide 12/23/2024 305.00 54855 Alhambra Water for PW 12/23/2024 202.84
54857 Ausonio, Inc On-call services 12/23/2024 803.26
54859 California Fire Protection, Inc. Annual fire inspection, extinguishers 12/23/2024 300.00 54860 California Premier Restoration Vista Lobos Office Project 241036.2 12/16/24 12/23/2024 8,075.00 54861 Cintas Corporation Uniform Services 12/23/2024 197.83 54864 Community Tree Service Tree work in City 12/23/2024 7,010.78 54866 Edges Electrical Group FM Plumbing/elec supplies 12/23/2024 552.28 54867 Granite Rock Company Supplies for PW Streets 12/23/2024 1,722.27 54870 Petty Cash Monterey County permit fees 12/23/2024 52.00 54871 Monterey Regional Waste Management District Annual Porportionate Share of costs 01-SB13832425 12/23/2024 5,613.00 54872 Monterey Signs Plaza tour bus signs 12/23/2024 10,020.96 54874 On Point Generators FM Generator services 12/23/2024 3,781.08 54875 Poe's Plumbing & Backflow FM Plumbing services Citywide 12/23/2024 460.00 54876 PSTS, Inc. Oil - Water separator 12/23/2024 990.00 54877 Pureserve Building Service FM Janitiorial services Citywide 12/23/2024 22,428.86 54878 Robert Half Temp help in Forestry 12/23/2024 1,423.93 54879 Scarborough Lumber & Building Public Works Streets supplies 12/23/2024 60.26 54880 Sherwin-Williams Co. FM Paint, supplies for City facilities 12/23/2024 37.33 54881 State Water Resources Control Board (SWRCB) Annual Permit Fee Index #625021 #WD-0275591 12/23/2024 2,913.00 54882 US Bank Home Depot - burlap sand bags 12/23/2024 144.17 54882 US Bank Home Depot - electrical supplies and batteries 12/23/2024 229.73 54882 US Bank Home Depot - Chlorine tabs 12/23/2024 173.71 54882 US Bank Floors for Less - green carpet tiles for Park Branch Library 12/23/2024 1,070.48 54882 US Bank Amazon - air purifier replacement filters 12/23/2024 569.81 54882 US Bank Amazon - air purifier replacement filters 12/23/2024 275.00 54883 Zumar Industries, Inc. ADA van accessible signs 12/23/2024 130.00 Total for Department: 119 Public Works 138,202.88
Department: 120 Library
54755 Pacific Grove Self Storage Storage Unit - Document storage 12/10/2024 407.00 Total for Department: 120 Library 407.00
Department: 121 Community Activities
54723 Golden State Portables portable restrooms for Homecrafters 12/04/2024 1,011.56 54724 US Bank Target: Blue tooth speaker 12/04/2024 109.24 54724 US Bank Displays2go: Santa line stanchions 12/04/2024 310.53 54724 US Bank Smart&Final: Halloween event food 12/04/2024 178.50 54724 US Bank Brunos: Pumpkin Roll food 12/04/2024 97.50 54724 US Bank Vistaprint: Homecrafters' posters and directional signs 12/04/2024 241.38 54724 US Bank Home Depot: red carpet runner 12/04/2024 16.44 54742 Bliss Point Productions Stage rental for Holiday Celebration 12/10/2024 3,000.00 54743 Carmel Pine Cone Craft Fair Saturday ad - 11.15.2024 12/10/2024 850.00 54785 Glastonbury Inc sound and lighting for Holicay Celebration 12/13/2024 4,860.00 54790 Hans Lehmann Santa for Holiday Celebration 12/13/2024 570.00 54816 Tigerlilly Florist&Gifts Veteran's Day flowers 12/13/2024 458.86 Total for Department: 121 Community Activities 11,704.01 Department: 122 Economic Revitalization
54758 See Monterey Destinatin Marketing Jurisdiction Quarter 2 10/1/-12/31/2024 12/10/2024 56,574.25 Total for Department: 122 Economic Revitalization 56,574.25 Department: 130 Non-Departmental
54757 PG&E Citywide gas and electric services 12/10/2024 904.45 54833 PG&E Citywide gas and electric services 12/19/2024 3,783.82 54834 Prism Public Risk Innovation Deductible billing Q1 Jul-Sep 2024 12/19/2024 14,365.60 121024001 CALPERS Health premium - Retired 12/10/2024 7,065.00 Total for Department: 130 Non-Departmental 26,118.87
Department: 311 Capital Projects
54783 Disaster Kleenup Specialists CH Roof Water Mitigation - 10/15/24 #SI-54700-Roof leaks from r 12/13/2024 27,486.37 54784 EMC Planning Group, Inc Outreach Adaptation Pathway Development 12/13/2024 12,419.66 54791 M3 Environmental Consulting Hazardous Materials Abatement 12/13/2024 6,787.30 54796 Monterey Peninsula Engineering All equipment, material and labor to complete MTNP, 3 Stream/Dra 12/13/2024 37,419.57 54798 Nicole Nedeff Consulting various city projects 12/13/2024 677.50 54807 Sharp Engineering and Construction, Inc Construction services:San Antonio Ave Walkway repairs per contra 12/13/2024 105,592.50 54815 Ten Over Studio, Inc Sunset Center Cottage Windows 12/13/2024 7,335.50 54822 Wallace Group Streets Resurfacing 12/13/2024 1,265.00 54825 ZFA Structural Engineering Stuctural engineering design services: Lincoln Street Bridge 12/13/2024 8,300.00 Attachment 1
54842 PG&E Vista Lobos 3EV Charge/Electric Panel Notification # 128457092, 12/19/2024 1,567.44 54852 4Leaf, Inc Project Management Services:PD/PW Building projects per contract 12/23/2024 2,430.84 54857 Ausonio, Inc San Antonio Ave. Pedestrian Trail 12/23/2024 39,808.13 54868 Ifland Engineers, Inc Professional services Police Station renovation 12/23/2024 26,920.00 54869 Indigo/Hammon & Playle Architects, LLP Prep functional program report, concept drawings and cost estima 12/23/2024 14,661.33 54882 US Bank Global Industrial: ADA outdoor wall mount drinking fountain 12/23/2024 1,453.01 Total for Department: 311 Capital Projects 294,124.15
Department: 411 Debt Service
54838 US Bank Public Improv Auth-2020 Refunding Lease Sunset Cult Center 12/19/2024 2,105.00 Total for Department: 411 Debt Service 2,105.00
Grand Total 1,114,950.14
Attachment 1

CITY OF CARMEL-BY-THE-SEA

CITY COUNCIL
Staff Report
February 3, 2025
CONSENT AGENDA (Estimated time - 5 min)
TO: Honorable Mayor and City Council Members
SUBMITTED BY: Chip Rerig, City Administrator
APPROVED BY: Chip Rerig, City Administrator
SUBJECT:

Resolution 2025-09 rescinding and replacing Resolution 2024-094, authorizing the City Administrator to establish and adopt the new class specification and salary schedule of Library Associate, adopt revisions to the current Librarian I and II classes and new salary schedules in accordance with Municipal Code 2.52.590(B) RECOMMENDATION:

Adopt Resolution 2025-09 rescinding and replacing Resolution 2024-094, authorizing the City Administrator to establish and adopt the new class specification and salary schedule of Library Associate, adopt revisions to the current Librarian I and II classes and new salary schedules in accordance with Municipal Code 2.52.590(B).

BACKGROUND/SUMMARY:

BACKGROUND
On December 3, 2024, the City Council approved Resolution 2024-094, adopting changes to the Library’s job classifications, new classes, and new salary ranges for some classes. Resolution 2024-094 contained an incorrect reference with respect to salary placement citing Municipal Code Section 2.52.570 Salary Determination – Promotions. The City Council item should have cited Municipal Code Section 2.52.590 Salary Determination – Reclassification of Position, Section B, which is applicable to this action and states:

B. An employee reclassified to a higher classification will receive a salary rate advancement to the same step in the new range. (Ord. 87-1 § 2, 1987).

For clarity, a redlined version of Resolution 2024-094 with exhibits is included as Attachment 2, showing the correct Municipal Code Section reference, and the Staff Report to Council from December 3, 2024, is included as Attachment 3.

RECOMMENDATION
To ensure accurate implementation of the approved salary changes and align with the correct Municipal Code provision, staff recommends that the City Council adopt Resolution 2025-09 (Attachment 1). This resolution will:

Rescind Resolution 2024-094.

Adopt a corrected Resolution with the proper Municipal Code citation (Section 2.52.590(B)). The remainder of the Resolution remains accurate.

Job Descriptions for Supervising Librarian, Library Associate, Library Assistant, and Librarian, are included and labeled as Resolution 2025-09 Exhibits A, B, C, and D respectively.

FISCAL IMPACT:

There are no additional costs associated with this correction.

PRIOR CITY COUNCIL ACTION:

Resolution 2024-094 adopted the new and revised job classes and salary changes for the Library on December 3, 2024.

ATTACHMENTS:

Attachment 1) Resolution 2025-09 with Exhibits A, B, C, and D (CLEAN VERSION FOR ADOPTION) Attachment 2) Resolution 2024-094 – REDLINED
Attachment 3) December 3, 2024, Staff Report

CITY OF CARMEL-BY-THE-SEA

CITY COUNCIL
RESOLUTION NO. 2025-09

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARMEL-BY-THE-SEA RESCINDING AND REPLACING RESOLUTION NO. 2024-094, AUTHORIZING THE CITY ADMINISTRATOR TO

ESTABLISH AND ADOPT THE NEW CLASS SPECIFICATION AND SALARY SCHEDULE OF

LIBRARY ASSOCIATE, ADOPT REVISIONS TO THE CURRENT LIBRARIAN I AND II CLASSES AND NEW SALARY SCHEDULES IN ACCORDANCE WITH MUNICIPAL CODE 2.52.590(B) WHEREAS, Council previously took action on December 3, 2024, to revise existing classes and adopt new classes and salary ranges for certain Library classes through adoption of Resolution No. 2024-094; and
WHEREAS, the section of the Municipal Code section referenced in Resolution No. 2024-094 for salary step placement for affected employees on December 3, 2024 was incorrectly referenced; and
WHEREAS, Municipal Code 2.52.590(B) Salary Determination – Reclassification of Position is the correct Municipal Code section for the previously approved Council actions; and WHEREAS, to remedy the situation, the City Council hereby rescinds and replaces Resolution 2024-094 adopted on December 3, 2024, with Resolution No. 2025-09.

NOW THEREFORE, BE IT RESOLVED THAT THE CITY COUNCIL OF THE CITY OF CARMEL-BY-THE-SEA DOES HEREBY RESCIND RESOLUTION NO. 2024-094 AND REPLACE IT WITH THE FOLLOWING RECITALS:

WHEREAS, there is a Memorandum of Understanding (MOU) between the City and general employees represented by the Laborers’ International Union of North America, United Public Employees of California; and
WHEREAS, in December 2019 the City of Carmel-by-the-Sea approved a new MOU with the Laborers’ International Union of North America, United Public Employees of California (LiUNA/UPEC), and two side letters committing the City to undertake two classification studies including Public Works Maintenance classes and Library classes; and WHEREAS, after pandemic delays the Public Works study was completed in late 2022 and the Library study has been ongoing since 2023; and
WHEREAS, the City has the goal of compensating its employees at a competitive and fair level considering the relevant labor market, while encouraging employees to maintain long-term employment with the City to provide knowledgeable and first-class municipal services to the City’s residents and visitors; and
WHEREAS, the City and LiUNA/UPEC have reached an agreement which is embodied in the attached Memorandum of Understanding for the period of July 1, 2022 through June 30, 2024; and WHEREAS, Municipal Code 2.52.590(B) and amendments thereto provide, among other things that the City Council establish the legal current salary range from the salary schedule for each class of position; and
Attachment 1
Resolution 2025-09

WHEREAS, the salary resolution is adopted annually or periodically by the City Council upon review and recommendation of the City Administrator; and WHEREAS, the California Public Employee’s Retirement Law, at Section 570.5 of the California Code of Regulations Title 2, requires the City to publish pay rates and ranges on the City’s internet site and the City Council to approve the pay rates and range in its entirety each time a modification is made; and
WHEREAS, staff recommends that the City Council adopt the current City pay rates and ranges for General Unit classifications be amended.

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

1. Authorize and approve the City Administrator to establish the new Supervising Librarian and Library Associate job descriptions (Exhibits A & B), and revised job descriptions for Library Assistant and Librarian (Exhibits C & D); and

2. Authorize and approve the City Administrator to establish the salary ranges below:

Library
Assistant (no
change)
G204
Hourly: $28.13 $29.54 $31.01 $32.56 $34.20
Monthly: $4,875.87 $5,120.27 $5,375.07 $5,643.73 $5,928.00 Annual: $58,510.40 $61,443.20 $64,500.80 $67,724.80 $71,136.00 Library
Associate
G234
Hourly: $30.94 $32.49 $34.12 $35.83 $37.62
Monthly: $5,362.93 $5,631.60 $5,914.13 $6,210.53 $6,520.80 Annual: $64,355.20 $67,579.20 $70,969.60 $74,526.40 $78,249.60 Librarian G254
Hourly: $36.67 $38.50 $40.43 $42.45 $44.57
Monthly: $6,356.13 $6,673.33 $7,007.87 $7,358.00 $7,725.47 Annual: $76,273.60 $80,080.00 $84,094.40 $88,296.00 $92,705.60 Supervising
Librarian
G254
Hourly: $40.34 $42.35 $44.47 $46.69 $49.03
Monthly: $6,992.27 $7,340.67 $7,708.13 $8,092.93 $8,498.53 Annual: $83,907.20 $88,088.00 $92,497.60 $97,115.20 $101,982.40

3. Adopt revisions to the current Library Assistant, Librarian I, and Librarian II classes and retitle the Librarian I as Librarian and Librarian II as Supervising Librarian;

4. Reallocate four (4) of the current full-time Library Assistant positions to the newly adopted Library Associate class;

5. Place employees in the new/revised class at salary steps in accordance with Carmel Municipal Code 2.52.590(B) Salary Determination – Reclassification of position;

6. Modify the LiUNA Management Unit to add the class of Supervising Librarian and modify the LiUNA General Unit to delete the class of Librarian II.

Attachment 1
Resolution 2025-09

PASSED AND ADOPTED BY THE CITY COUNCIL OF THE CITY OF CARMEL-BY-THE-SEA this 3rd day of February, 2025 by the following roll call vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

APPROVED: ATTEST:
_____________________________ _________________________________ Dale Byrne, Mayor Nova Romero, MMC, City Clerk
Attachments:

Exhibit A – Supervising Librarian Job Description
Exhibit B – Library Associate Job Description
Exhibit C – Library Assistant Job Description
Exhibit D – Librarian Job Description
Attachment 1
REDLINE VESRION OF RESO 2024-094 TO SHOW CORRECTION

CITY OF CARMEL-BY-THE-SEA

CITY COUNCIL
RESOLUTION NO. 2024-094

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

AUTHORIZING THE CITY ADMINISTRATOR TO ESTABLISH AND ADOPT THE NEW CLASS

SPECIFICATION AND SALARY SCHEDULE OF LIBRARY ASSOCIATE, ADOPT REVISIONS TO

THE CURRENT LIBRARIAN I AND II CLASSES AND NEW SALARY SCHEDULES IN ACCORDANCE WITH MUNICIPAL CODE 2.52.590(B)
WHEREAS, there is a Memorandum of Understanding (MOU) between the City and general employees represented by the Laborers’ International Union of North America, United Public Employees of California; and
WHEREAS, in December 2019 the City of Carmel-by-the-Sea approved a new MOU with the Laborers’ International Union of North America, United Public Employees of California (LiUNA/UPEC), and two side letters committing the City to undertake two classification studies including Public Works Maintenance classes and Library classes; and WHEREAS, after pandemic delays the Public Works study was completed in late 2022 and the Library study has been ongoing since 2023; and
WHEREAS, the City has the goal of compensating its employees at a competitive and fair level considering the relevant labor market, while encouraging employees to maintain long-term employment with the City to provide knowledgeable and first-class municipal services to the City’s residents and visitors; and
WHEREAS, the City and LiUNA/UPEC have reached an agreement which is embodied in the attached Memorandum of Understanding for the period of July 1, 2022 through June 30, 2024; and WHEREAS, Municipal Code 2.52.590(B) and amendments thereto provide, among other things that the City Council establish the legal current salary range from the salary schedule for each class of position; and
WHEREAS, the salary resolution is adopted annually or periodically by the City Council upon review and recommendation of the City Administrator; and WHEREAS, the California Public Employee’s Retirement Law, at Section 570.5 of the California Code of Regulations Title 2, requires the City to publish pay rates and ranges on the City’s internet site and the City Council to approve the pay rates and range in its entirety each time a modification is made; and
WHEREAS, staff recommends that the City Council adopt the current City pay rates and ranges for General Unit classifications be amended.

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

1. Authorize and approve the City Administrator to establish the new Supervising Librarian and Library Associate job descriptions (Exhibits A & B), and revised job descriptions for Library Assistant and Librian (Exhibits C & D)

2. Authorize and approve the City Administrator to establish the salary ranges below:

Attachment 2
Resolution 2024-094

Library
Assistant (no
change)
G204
Hourly: $28.13 $29.54 $31.01 $32.56 $34.20
Monthly: $4,875.87 $5,120.27 $5,375.07 $5,643.73 $5,928.00 Annual: $58,510.40 $61,443.20 $64,500.80 $67,724.80 $71,136.00 Library
Associate
G234
Hourly: $30.94 $32.49 $34.12 $35.83 $37.62
Monthly: $5,362.93 $5,631.60 $5,914.13 $6,210.53 $6,520.80 Annual: $64,355.20 $67,579.20 $70,969.60 $74,526.40 $78,249.60 Librarian G254
Hourly: $36.67 $38.50 $40.43 $42.45 $44.57
Monthly: $6,356.13 $6,673.33 $7,007.87 $7,358.00 $7,725.47 Annual: $76,273.60 $80,080.00 $84,094.40 $88,296.00 $92,705.60 Supervising
Librarian
G254
Hourly: $40.34 $42.35 $44.47 $46.69 $49.03
Monthly: $6,992.27 $7,340.67 $7,708.13 $8,092.93 $8,498.53 Annual: $83,907.20 $88,088.00 $92,497.60 $97,115.20 $101,982.40

3. Adopt revisions to the current Library Assistant, Librarian I, and Librarian II classes and retitle the Librarian I as Librarian and Librarian II as Supervising Librarian.

4. Reallocate four (4) of the current full-time Library Assistant positions to the newly adopted Library Associate class.

5. Place employees in the new/revised class at salary steps in accordance with Carmel Municipal Code 2.52.590(B) Salary Determination – Reclassification of Position;

6. Modify the LiUNA Management Unit to add the class of Supervising Librarian and modify the LiUNA General Unit to delete the class of Librarian II.

PASSED AND ADOPTED BY THE CITY COUNCIL OF THE CITY OF CARMEL-BY-THE-SEA this 3rd day of December, by the following roll call vote:

AYES: Councilmembers Baron, Dramov, Ferlito, Richards, and Mayor Potter NOES: None
ABSENT: None
ABSTAIN: None
APPROVED: ATTEST:
_____________________________ _________________________________ Dave Potter, Mayor Nova Romero, MMC, City Clerk
Attachment 2

CITY OF CARMEL-BY-THE-SEA

CITY COUNCIL
Staff Report
December 3, 2024

CONSENT AGENDA
TO: Honorable Mayor and City Council Members
SUBMITTED BY: Brandon Swanson, Assistant City Administrator APPROVED BY: Chip Rerig, City Administrator
SUBJECT:

Resolution 2024-094 authorizing the City Administrator to establish and adopt the new class specification and salary schedule of Library Associate, adopt revisions to the current Librarian I and II classes and new salary schedules.

RECOMMENDATION:

Adopt Resolution 2024-094 authorizing the City Administrator to establish and adopt the new class specification and salary schedule of Library Associate, adopt revisions to the current Librarian I and II classes and new salary schedules.

BACKGROUND/SUMMARY:

In December 2019, the City approved a new MOU for LiUNA/UPEC and two side letters committing the City to undertake two classification studies including Public Works Maintenance classes and Library classes. The 2019 Library Side Letter is Attachment 4. It was anticipated that the studies would be completed within a year of the MOU approval. Due to the pandemic the studies were delayed. The Public Works study was completed in late 2022. The Library study has been ongoing since 2023.

The Library Classification Study Report (Attachment 5) recommends adopting a new paraprofessional class specification for some of the current Library Assistants and a re-titling and revising of the Librarian I and Librarian II classes. The updated job descriptions for Supervising Librarian and Library Associate are included as Attachments 2 & 3. The compensation study indicated that the Librarian class was more than twelve percent (12%) below the market median of other nearby communities (Attachment 6).

Pay Schedule for General Employees Unit (affiliated unit of LiUNA) Classifications:

Establish the salary of the Library Associate Class at ten percent (10%) above the salary of the current Library Assistant class:

Library
Assistant
(no
change)
G-204
Hourly: $28.13 $29.54 $31.01 $32.56 $34.20
Monthly: $4,875.87 $5,120.27 $5,375.07 $5,643.73 $5,928.00 Annual: $58,510.40 $61,443.20 $64,500.80 $67,724.80 $71,136.00 Library
Associate G-234
Hourly: $30.94 $32.49 $34.12 $35.83 $37.62
Monthly: $5,362.93 $5,631.60 $5,914.13 $6,210.53 $6,520.80 Attachment 3
(pending
approval) Annual: $64,355.20 $67,579.20 $70,969.60 $74,526.40 $78,249.60 Revise the pay schedule for the newly re-titled Librarian class with a top step of $7,726/month which is the market median of the surrounding agencies:

Librarian
(pending
approval)
G-254
Hourly: $36.67 $38.50 $40.43 $42.45 $44.57
Monthly: $6,356.13 $6,673.33 $7,007.87 $7,358.00 $7,725.47 Annual: $76,273.60 $80,080.00 $84,094.40 $88,296.00 $92,705.60 Pay Schedule for Management Employees Unit (affiliated unit of LiUNA) Classifications:

Revise the pay schedule for the newly re-titled class of Supervising Librarian with a top step of $8,498/month which is ten percent (10%) above the Librarian top step:

Supervising
Librarian
(pending
approval)
G-254
Hourly: $40.34 $42.35 $44.47 $46.69 $49.03
Monthly: $6,992.27 $7,340.67 $7,708.13 $8,092.93 $8,498.53 Annual: $83,907.20 $88,088.00 $92,497.60 $97,115.20 $101,982.40 The LiUNA Management Employees Unit is more appropriate to represent the Supervising Librarian class.

A Tentative Agreement between LiUNA General, LiUNA Management, and the City is included as Attachment 7.

The Resolution included as Attachment 1 will adopt the recommendations which align with the City’s goals of compensating its employees at a competitive and fair level considering the relevant labor market, while encouraging employees to maintain long-term employment with the City to provide knowledgeable and first-class municipal services to the City’s residents and visitors.

FISCAL IMPACT:

The cost of these recommendations for the remainder of the fiscal year is estimated to be $63,725. The current budget has sufficient appropriations for the revised salary schedule. The FY 2025/26 budget will be developed to accommodate these increases.

PRIOR CITY COUNCIL ACTION:

Resolution 2019-08 adopted a new MOU for LiUNA on December 3, 2019, which included the side letters for the Library and Public Works studies.

ATTACHMENTS:

Attachment 1) Resolution 2024-094
Attachment 2) Exhibit A Supervising Librarian Job Description Attachment 3) Exhibit B Library Associate Job Description Attachment 4) Library Side Letter
Attachment 5) Carmel Classification Study Report
Attachment 6) Library Salary Survey
Attachment 7) Library Tentative Agreement signed
Attachment 3

CITY OF CARMEL-BY-THE-SEA

CITY COUNCIL
Staff Report
February 3, 2025
CONSENT AGENDA (Estimated time - 5 min)
TO: Honorable Mayor and City Council Members
SUBMITTED BY: Ashlee Wright, Director, Libraries & Community Activities APPROVED BY: Chip Rerig, City Administrator
SUBJECT:

Resolution 2025-010 authorizing the consumption of alcohol at the Farmers' Market Third Thursday events in 2025
RECOMMENDATION:

Adopt Resolution 2025-010 authorizing the consumption of alcohol at the Farmers' Market Third Thursday events in 2025.

BACKGROUND/SUMMARY:

The Farmers’ Market is held every Thursday (holidays and Car Week notwithstanding) from 10:00 a.m. to 2:00 p.m. on Mission Street between Ocean and Sixth Avenues, and Sixth Avenue between Mission and Junipero Streets.

Good Roots Events, Inc. has been managing the market since early 2020 and has done an admirable job making improvements to the Farmers’ Market operation, ensuring that the Village now has a vibrant market at which the community can gather each week. Good Roots, continues to make efforts to provide compostable bags to the vendors and improve sustainability practices at the market; and they also continue to work to enforce the Health Department's regarding dogs being restricted from the market.

Third Thursdays
When the Farmers’ Market was first implemented over 10 years ago, once monthly evening events were proposed that showcased Village chefs, local produce, arts and music. This idea was finally implemented in 2022 with events in September and October. Third Thursday events were subsequently held April through October 2023 and March through October 2024.

Third Thursdays features, Farmers’ Market vendors, artist demonstrations, fun games and activities for children, and music sponsored by Sunset Center. These events are attended by all-ages of locals and visitors and often have a theme reflecting the time of the year.

Early on attendees requested that alcohol be served at the event. Initially, the Carmel Youth Center and Carmel Residents' Association provided alcohol as an opportunity for fundraising. However, this proved to not be sustainable for either group on a regular basis, and in 2024, Good Roots partnered with Vesuvio to provide alcohol at Third Thursdays which has proven successful.

Staff is requesting that Council again approve the serving of alcohol at Third Thursday events for 2025. Per Carmel Municipal Code section 9.20.020, it is unlawful for any person to drink any alcoholic beverage in or upon any public place within the City. The City Council may, however authorize exceptions to the code for specific events of limited duration by adopting a resolution.

The Council adopted Resolutions approving the serving of alcohol for both the 2023 and 2024 seasons of Thirds Thursdays.

FISCAL IMPACT:

There is no fiscal impact to the City to adopt a resolution approving the serving of alcohol at Third Thursday events.

PRIOR CITY COUNCIL ACTION:

At the January 2023 regular meeting Council adopted Resolution 2023-007 authorizing the serving of alcohol at all Third Thursday events in 2023.

ATTACHMENTS:

Attachment 1) Resolution 2025-010

CITY OF CARMEL-BY-THE-SEA

CITY COUNCIL
RESOLUTION NO. 2025-010

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARMEL-BY-THE-SEA AUTHORIZING THE CONSUMPTION OF ALCOHOL AT THE FARMERS’ MARKET THIRD THURSDAY EVENTS TO BE HELD MARCH THROUGH OCTOBER 2025
WHEREAS, the City entered into a contract in 2020 with Good Roots Events, Inc. due to their understanding of the Carmel-by-the-Sea community, their vision for the Market, and their overall experience managing Farmers’ Markets and special events; and WHEREAS, when the Farmers’ Market was created in Carmel-by-the-Sea in 2014 a monthly evening component of the Market was an important component; and WHEREAS, the Third Thursday events extends the Farmers’ Market once monthly through October and will feature, artists, musicians, food, and potentially alcoholic beverages; and WHEREAS, Chapter 9.20 of the Carmel-by-the-Sea Municipal Code states that it is unlawful for any person to drink any alcoholic beverage in or upon any public place, but that the City Council has the right, through adoption of a resolution, to make exceptions to the regulation for specific events of limited duration.

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

Authorize the consumption of alcohol at the Third Thursday events to be held March through October 2025.

PASSED AND ADOPTED BY THE CITY COUNCIL OF THE CITY OF CARMEL-BY-THE-SEA this 3rd day of February, 2025, by the following roll call vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

SIGNED: ATTEST:
______________________________________ _______________________________ Dale Byrne, Mayor Nova Romero, MMC, City Clerk
Attachment 1

CITY OF CARMEL-BY-THE-SEA

CITY COUNCIL
Staff Report
February 3, 2025
CONSENT AGENDA (Estimated time - 5 min)
TO: Honorable Mayor and City Council Members
SUBMITTED BY: Ashlee Wright, Director, Libraries & Community Activities APPROVED BY: Chip Rerig, City Administrator
SUBJECT:

Resolution 2025-011, authorizing the serving of alcohol on public property, and the erection of tents on public property for the Carmel Art Festival RECOMMENDATION:

Adopt Resolution 2025-011, authorizing the serving of alcohol on public property, and the erection of tents on public property for the Carmel Art Festival
BACKGROUND/SUMMARY:

Carmel Art Festival
The 32nd Annual Carmel Art Festival is scheduled to take place from Friday, May 16 through Sunday, May 18, 2025. The event featuring exhibits from Carmel art galleries, a live sculpture demonstration, live music, a kids art program, and a VIP wine reception. The event will take place in Devendorf Park over the course of three days, and in addition to the VIP wine reception will include the erection of a 8 x 20 tents to house the art exhibits.

Because this event proposes to serve alcohol on public property and erect of tents on public property or some combination thereof, further approval is required by City Council as follows:

Per Carmel Municipal Code section 9.20.020, it is unlawful for any person to drink any alcoholic beverage in or upon any public place within the City. The City Council may, however authorize exceptions to the code for specific events of limited duration by adopting a resolution.

Per Carmel Municipal Code section 12.32.060, it is unlawful to construct or erect any tent upon any public property. The City Council may, however authorize exceptions to the code for specific events of limited duration by adopting a resolution.

FISCAL IMPACT:

There is no fiscal impact associated with adopting the resolution.

PRIOR CITY COUNCIL ACTION:

This is an annual event for which the Council routinely provides approval for the serving of alcohol and the erection of tents on public property.

ATTACHMENTS:

Attachment 1) Resolution 2025-011

CITY OF CARMEL-BY-THE-SEA

CITY COUNCIL
RESOLUTION NO. 2025-011

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

AUTHORIZING THE CONSUMPTION OF ALCOHOL ON PUBLIC PROPERTY AND THE

ERECTION OF TENTS ON PUBLIC PROPERTY FOR THE CARMEL ART FESTIVAL TO BE HELD MAY 16-18, 2025
WHEREAS, the 32nd Annual Carmel Art Festival will be held May 16th through May 18th, 2025; and
WHEREAS, the event featuring exhibits from Carmel art galleries, a live sculpture demonstration, live music, a kids art program, and a VIP wine reception; and WHEREAS, the Carmel Art Festival will take place in Devendorf Park over the course of three days, and in addition to the VIP wine reception will include the erection of a 8 x 20 tents to house the art exhibits; and
WHEREAS, Chapter 9.20 of the Carmel-by-the-Sea Municipal Code states that it is unlawful for any person to drink any alcoholic beverage in or upon any public place, but that the City Council has the right, through adoption of a resolution, to make exceptions to the regulation for specific events of limited duration; and
WHEREAS, Chapter and section 12.32.060, it is unlawful to construct or erect any tent upon any public property, but that the City Council may, however, authorize exceptions to the code for specific events of limited duration by adopting a resolution.

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

Authorize the consumption of alcohol and the erection of an 8 x 20 tents to house the art exhibits for the 32nd Annual Carmel Art Festival in Devendorf Park Friday, May 16th through Saturday May 18th, 2024.

PASSED AND ADOPTED BY THE CITY COUNCIL OF THE CITY OF CARMEL-BY-THE-SEA this 3rd day of February 2025, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

APPROVED:
________________________________
Dale Byrne, Mayor
ATTEST:
_____________________________
_ Nova Romero, MMC, City Clerk
Attachment 1

CITY OF CARMEL-BY-THE-SEA

CITY COUNCIL
Staff Report
February 3, 2025
CONSENT AGENDA (Estimated time - 5 min)
TO: Honorable Mayor and City Council Members
SUBMITTED BY: Marnie R. Waffle, AICP, Principal Planner APPROVED BY: Chip Rerig, City Administrator
SUBJECT:

Resolution 2025-012 Authorizing a refund of Design Study application fees, associated with DS 24-331 (Susko), in the amount of $1,869.75 to Holdren Lietzke Architecture
RECOMMENDATION:

Adopt Resolution 2025-012 Authorizing a refund of Design Study application fees, associated with DS 24- 331 (Susko), in the amount of $1,869.75 to Holdren Lietzke Architecture BACKGROUND/SUMMARY:

The project applicant, Sonia Madrigal, submitted a Track One Design Study application on behalf of the property owners, Kristin and Thomas Susko. The associated application fee of $708, and Planning Commission referral fee of $1,785 were paid by the applicant (a total of $2,493). The project was reviewed by staff and a completeness review was completed on November 4, 2024. On January 24, 2025, the applicant formally notified staff of their intent to withdrawal their application and requested a refund of the application fees. This item is on the Council’s agenda to authorize a refund of 75% of the permit fee costs, $1,869.75, in accordance with CMC Section 17.02.120 (Fees) which allows a partial refund of fees in the amount of 75% for applications that are withdrawn before a determination has been made as to whether the application is complete. The applicant submitted an application on October 30, 2024 and withdrew the application on January 24, 2025 prior to staff making a determination as to the completeness of the application.

CMC Section 3.06.060 (Return of Funds) requires refunds of $1,000 or more to be approved by Council.

Specifically, Section 3.06.060 states that “from time to time it becomes necessary to refund certain permit fees, taxes, licenses, etc., in the normal course of City business. Upon recommendation from the Assistant City Administrator, the City Administrator or his/her duly authorized representative is authorized to approve such refunds in an amount not to exceed $1,000. All refunds over $1,000 shall require approval by the City Council.”
FISCAL IMPACT:

Other than the cost of processing the refund, there is no fiscal impact to the City for issuing the permit fee refund.

PRIOR CITY COUNCIL ACTION:

None.

ATTACHMENTS:

Attachment 1) Resolution 2025-012
Dale Byrne, Mayor Nova Romero, MMC, City Clerk

CITY OF CARMEL-BY-THE-SEA

CITY COUNCIL
RESOLUTION NO. 2025-012

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARMEL-BY-THE-SEA AUTHORIZING A REFUND OF A DESIGN STUDY PERMIT FEE IN THE AMOUNT OF $1,869.75 TO HOLDREN

LIETZKE ARCHITECTURE
WHEREAS, the applicant, Sonia Madrigal, submitted a Design Study Track One application, DS 24-331 (Susko), on behalf of property owners Kristin and Thomas Susko on October 30, 2024; and WHEREAS, the applicant was assessed permit fees in the sum of $2,493 for the review of the application and Planning Commission referral; and
WHEREAS, on January 24, 2025 the applicant submitted a request to withdraw the application; and WHEREAS, CMC Section 17.02.120 (Fees) allows a partial refund of permit fees in the amount of 75% for applications that are withdrawn before a determination has been made as to whether the application is complete; and
WHEREAS, the applicant submitted an application on October 30, 2024 and withdrew the application on January 24, 2025 prior to staff making a determination as to the completeness of the application; and
WHEREAS, the applicant is entitled to a 75% refund of the permit fee which amounts to $1,869.75; and
WHEREAS, CMC Section 3.06.060 (Return of Funds) requires refunds of $1,000 or more to be approved by the City Council.

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

Authorize a refund of $1,869.75 which is 75% of the associated permit fees for a Design Study Track One application to Holdren Lietzke Architecture.

PASSED AND ADOPTED BY THE CITY COUNCIL OF THE CITY OF CARMEL-BY-THESEA this 3rd day of February, 2025, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

APPROVED: ATTEST:

Attachment 1

CITY OF CARMEL-BY-THE-SEA

CITY COUNCIL
Staff Report
February 3, 2025

ORDERS OF BUSINESS
TO: Honorable Mayor and City Council Members
SUBMITTED BY: Jayme Fields, Finance Manager
APPROVED BY: Chip Rerig, City Administrator
SUBJECT:

Resolution 2025-013 receiving the Annual Comprehensive Financial Report (ACFR) for the fiscal year ending June 30, 2024 (Estimated time - 60 min) RECOMMENDATION:

Adopt Resolution 2025-013 receiving the Annual Comprehensive Financial Report (ACFR) for the fiscal year ending June 30, 2024
BACKGROUND/SUMMARY:

This item is on the Council's agenda to receive the Annual Comprehensive Financial Report (ACFR) for the fiscal year ending June 30, 2024 (Fiscal Year 2023-2024). The ACFR (Attachment 2) includes the City's audited basic financial statements and the independent auditor's report. It also includes a narrative on the City’s financial activities known as the Management Discussion and Analysis and a statistical section pertaining to financial trends, revenue capacity, debt capacity, demographic and economic information and operating information.

State law requires that the accounts and fiscal affairs of all municipal entities be examined annually by an independent certified public accountant. The City has retained an independent auditor, Chavan and Associates, LLP, to audit the City’s financial statements. The audit was performed in accordance with auditing standards generally accepted in the United States, including financial auditing standards issued by the Comptroller General of the United States, in order to determine if the City’s financial statements were misstated or misrepresented, either due to fraud or error. Chavan and Associates, LLP, has issued an unmodified opinion that the financial statements for the year ended June 30, 2024, are fairly presented in conformity with generally accepted accounting principles (GAAP).

As part of the audit process, Chavan and Associates, LLP, also test the City’s internal controls over financial reporting and compliance and reports on the outcome of these tests (“findings”) as part of the Communication Letter. There are different categories of findings, including a material weakness, meaning that a deficiency, or a combination of deficiencies, in internal controls exists and that there is a reasonable possibility that a material misstatement of the City’s financial statements will not be prevented, detected or corrected on a timely basis. No material weaknesses or other findings were identified as part of the audit. Sheldon Chavan of Chavan and Associates LLP will give a presentation on the Fiscal Year 2023- 2024 audit as part of the Council's February 3,2025 special meeting.

The Fiscal Year 2023-2024 ACFR was prepared using guidelines issued by the Government Finance Officers Association of the United States and Canada (GFOA) as part of its Certificate of Achievement for Excellence in Financial Reporting Program. The intent of this program is to encourage state and local governments to prepare reports that exceed the minimum requirements of generally accepted accounting principles in order to produce a readable and efficiently organized document intended to allow greater public transparency and full disclosure of the City’s financial health. The City received a Certificate of Achievement for its Fiscal Year 2022-2023 and the Fiscal Year 2023-2024 ACFR has been submitted to the GFOA for consideration of a new Certificate of Achievement.

Recommendation
That the City Council adopt the Resolution (Attachment 1) receiving of the Annual Comprehensive Financial Report (ACFR) for the Fiscal Year ending June 30, 2024.

FISCAL IMPACT:

There is no fiscal impact associated with receiving the ACFR. The cost for the audit for fiscal year 2023- 2024 is included within the adopted budget fiscal year 2024-2025 for a not to exceed amount of $40,000.

PRIOR CITY COUNCIL ACTION:

There is no prior action taken on this item.

ATTACHMENTS:

Attachment 1) Resolution 2025-013
Attachment 2) 2023-2024 ACFR Report

CITY OF CARMEL-BY-THE-SEA

CITY COUNCIL
RESOLUTION NO. 2025-013

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

ANNUAL COMPREHENSIVE FINANCIAL REPORT (ACFR) FOR THE FISCAL YEAR ENDING JUNE 30, 2024
WHEREAS, State law requires that all accounts and fiscal affairs of municipal entities be examined annually by an independent certified public accountant; and WHEREAS, the City retained the independent auditing firm of Chavan and Associates, LLP to audit the City’ s financial statements; and
WHEREAS, the audit was performed in accordance with auditing standards generally accepted in the United States, including financial auditing standards issued by the Comptroller General of the United States, in order to determine if the City’s financial statements were misstated or misrepresented, either due to fraud or error; and
WHEREAS, Chavan and Associates, LLP has issued an unmodified opinion that the financial statements for the fiscal year ending June 30, 2024 (“Fiscal Year 2023-2024)” are fairly presented in conformity with generally accepted accounting principles; and WHEREAS, the audited financial statements are a component of the Annual Comprehensive Financial Report (ACFR); and
WHEREAS, the ACFR is a report that goes beyond minimum requirements of generally accepted accounting principles and was prepared using the guidelines developed by the Government Finance Officers Association (GFOA) for its Certificate of Achievement for Excellence in Financial Reporting program in order to produce a readable and efficiently organized document intended to allow greater public transparency and full disclosure of the City’s financial health.

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

Receive the Annual Comprehensive Financial Report (ACFR) for the Fiscal Year Ending June 30, 2024.

PASSED AND ADOPTED BY THE CITY COUNCIL OF THE CITY OF CARMEL-BY-THE-SEA this 3rd day of February, 2025, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

APPROVED: ATTEST:

Dale Byrne, Mayor Nova Romero, MMC, City Clerk
Attachment 1
Annual Comprehensive Financial Report
City of Carmel-by-the-Sea
California
Fiscal Year Ended June 30, 2024
Attachment 2
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Attachment 2
City of Carmel-by-the-Sea
California
Annual Comprehensive Financial Report
For the Fiscal Year Ended June 30, 2024
Prepared by the Finance Department
Attachment 2
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Attachment 2

CITY OF CARMEL-BY-THE-SEA

ANNUAL COMPREHENSIVE FINANCIAL REPORT
FOR THE YEAR ENDED JUNE 30, 2024

TABLE OF CONTENTS

INTRODUCTORY SECTION
Transmittal Letter ............................................................................................................... 1 Principal Officials..............................................................................................................10 Organizational Chart ..........................................................................................................11 GFOA Certificate ...............................................................................................................12

FINANCIAL SECTION
Independent Auditor’s Report.............................................................................................15 Management’s Discussion and Analysis (Required Supplementary Information) .................21 Basic Financial Statements:

Government-Wide Financial Statements:

Statement of Net Position.........................................................................................38 Statement of Activities.............................................................................................39 Fund Financial Statements
Governmental Funds:

Balance Sheet .....................................................................................................42 Reconciliation of the Government Funds Balance Sheet
to the Government-Wide Financial Statement of Net Position.........................43 Statement of Revenues, Expenditures and Changes in Fund Balances ..................44 Reconciliation of the Governmental Funds Statement of Revenues, Expenditures and Changes in Fund Balances to the Government-Wide Statement of Activities ..................................................................................45 Proprietary Funds:

Statement of Net Position ...................................................................................46 Statement of Revenues, Expenses, and Changes in Fund Net Position..................47 Statement of Cash Flows.....................................................................................48 Notes to the Basic Financial Statements ........................................................................49

REQUIRED SUPPLEMENTARY INFORMATION
Schedule of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual (GAAP Basis):

General Fund ...........................................................................................................85 Measure C Sales Tax Fund .......................................................................................86 Harrison Memorial Library Fund..............................................................................87 Schedule of Pension Contributions .....................................................................................88 Schedule of Proportionate Share of Net Pension Liability ...................................................89 Schedule of Total OPEB Liability ......................................................................................90 Attachment 2

CITY OF CARMEL-BY-THE-SEA

ANNUAL COMPREHENSIVE FINANCIAL REPORT
FOR THE YEAR ENDED JUNE 30, 2024

SUPPLEMENTARY INFORMATION
Combining Nonmajor Governmental Funds:

Combining Balance Sheet..............................................................................................94 Combining Statement of Revenues, Expenditures and Changes in Fund Balances...........96 Schedule of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual (GAAP Basis):

Gas Tax Fund ........................................................................................................98 Transportation Safety Fund ...................................................................................99 COPS Grant Fund................................................................................................100 Parking In-Lieu Fun ............................................................................................101 Asset Seizure Fun................................................................................................102 Debt Service Fund...............................................................................................103 Schedule of Revenues, Expenditures and Changes in Fund Balances – Capital Projects - Budget and Actual (GAAP Basis) ...............................................104 Combining Internal Service Funds:

Combining Statement of Net Position ..........................................................................106 Combining Statement of Revenues, Expenses and Changes in Fund Net Position .........107 Combining Statement of Cash Flows ...........................................................................108

STATISTICAL SECTION
Net Position by Component................................................................................................... 113 Changes in Net Position ........................................................................................................ 114 Fund Balances of Governmental Funds.................................................................................. 116 Changes in Fund Balances of Governmental Funds................................................................ 118 General Governmental Tax Revenues by Source .................................................................... 120 General Fund Tax Revenues by Source.................................................................................. 121 Net Assessed Value of Taxable Property ............................................................................... 122 Direct and Overlapping Property Tax Rates........................................................................... 123 Principal Property Tax Owners ............................................................................................. 124 Property Tax Levies and Collections ..................................................................................... 125 Ratios of Outstanding Debt by Type...................................................................................... 126 Ratios of Net General Bonded Debt Outstanding ................................................................... 127 Computation of Direct and Overlapping Debt ........................................................................ 128 Legal Debt Margin Information............................................................................................. 129 Pledged Revenue Coverage ................................................................................................... 130 Demographic and Economic Statistics................................................................................... 131 Principal Employers.............................................................................................................. 132 Number of City Employees by Department............................................................................ 133 Operating Indicators by Function .......................................................................................... 134 Capital Asset Statistics by Function ...................................................................................... 135

OTHER INDEPENDENT AUDITOR REPORTS
Independent Auditor’s Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards........................................................ 137 Attachment 2

TRANSMITTAL LETTER
Attachment 2
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Attachment 2

CITY OF CARMEL-BY-THE-SEA
P.O. BOX CC
CARMEL-BY-THE-SEA, CA 93921
January 24, 2025
Honorable Mayor Dale Byrne
Members of the Carmel-by-the-Sea City Council, and
Citizens of Carmel-by-the-Sea
SUBJECT: Annual Comprehensive Financial Report – June 30, 2024 The Annual Comprehensive Financial Report (ACFR) for the City of Carmel-by-the-Sea for the fiscal year ended June 30, 2024 is hereby submitted.

REPORT PURPOSE AND ORGANIZATION
In accordance with State law, which requires that the accounts and fiscal affairs of all municipal entities be examined annually by an independent certified public accountant, the City of Carmel-by-the-Sea retained an independent auditor, Chavan and Associates, LLP, to audit the City’s financial statements. Chavan and Associates, LLP, has issued an unmodified opinion that the financial statements for the year ended June 30, 2024, are fairly presented in conformity with generally accepted accounting principles (GAAP). This opinion, along with the basic financial statements, are submitted as the Annual Comprehensive Financial Report (ACFR) for the City for the fiscal year ended June 30, 2024. The information included in the financial section of this report fulfills the above requirement.

This report consists of City management’s representations regarding the finances of the City of Carmel-by-theSea. Management assumes full responsibility for the completeness, data accuracy, and fairness of the information presented, including all footnotes and disclosures. Management believes the data presented are accurate in all material respects and presented in a manner designed to fairly set forth the financial position and results of operations of the City.

To provide a reasonable basis for making these representations, City management has established a comprehensive framework of internal controls that is designed to both protect the City’s assets from loss, theft or misuse and to compile sufficiently reliable information for the preparation of the City’s financial statements in conformity with generally accepted accounting principles.

Because the cost of internal controls should not exceed their benefits, the City’s internal controls have been designed to provide reasonable, rather than absolute, assurance that the financial statements are free from material misstatements. The audit is intended to provide users with reasonable assurance that the information presented is free from material misstatements. As management, we assert, that to the best of our knowledge and belief, this financial report is complete and reliable in all material respects.

Generally accepted accounting principles require management to provide a narrative introduction, overview, and analysis that accompanies the basic financial statements in a format known as the Management’s Discussion and Analysis (MD&A). This letter of transmittal is intended to augment the MD&A and is meant to be read in conjunction with the MD&A. The MD&A can be found in the Financial Section of this document, immediately following the report of the independent auditor.

Attachment 2

CITY OF CARMEL-BY-THE-SEA PROFILE
Located 120 miles south of San Francisco on the Monterey Peninsula, the City of Carmel-by-the-Sea is a coastal village with a population of 3,122 that is renowned for its natural beauty, including a white sand beach, urban forest of over 10,000 public trees comprised of Monterey pines, live oaks, and Monterey cypress and natural parklands all within a one-square-mile, built-out community. In addition to recreational opportunities afforded by such scenery, the City is also known for its architecture and dining and shopping opportunities, which may be found in the walkable downtown area. In addition to many City sponsored events like the City Halloween Parade, Sandcastle Contest and Pumpkin Roll, other special events also occur throughout the year and cultural activities abound, including at such venues as the Sunset Center performing arts center and the Forest Theater, an outdoor amphitheater.

The median age of the City’s residents is 65 years. Nearly 76% of the population age 25 or older have a bachelor’s degree. The City’s median household income is $126,406. The Carmel area offers outstanding educational opportunities through the Carmel Unified School District as well as institutions of higher learning on the Monterey Peninsula including the Monterey Peninsula College, the Middlebury Institute for International Studies, California State University Monterey Bay, and the Hopkins Marine Station operated by Stanford University.

Form of Government
The City of Carmel-by-the-Sea was incorporated on October 31, 1916. As a General Law City, Carmel-by-theSea operates under a Council-City Manager (City Administrator) style of government and derives its power from the California Constitution and laws enacted by the State legislature.

All legislative power is held by the publicly elected, five-member City Council that consists of the Mayor and four Councilmembers. The Mayor serves a two-year term while Council members serve a four-year term, with overlapping terms with municipal elections occurring in November of each even numbered year. City Council is the policy making legislative body of the City and it adopts the annual budget, enacts ordinances, and approves major contracts, acquisitions and leases. The Council appoints the City Administrator to serve as the City’s chief administrative officer.

The City Administrator is responsible for the enforcement of City laws and ordinances; ensuring that the orders of the City Council are executed; for supporting Council, which includes the preparation of agendas and the maintenance of records; and overseeing the City’s day-to-day operations. This includes oversight of the departments of Community Planning and Building, Library, Community Activities, Public Safety and Public Works. The City Administrator also directs the centralized administrative functions of the City Clerk, Finance, Human Resources and Information Technology.

City Services
The City provides a variety of services to the residents, businesses and visitors to the village of Carmel-by-theSea. Administration provides oversight of daily City functions and financial activity. Community Planning and Building provides building safety services, code compliance and planning functions while Community Activities and Library manage new and ongoing special events and provide library services at two branch locations. Public Safety services related to ambulance, law enforcement, and crime prevention are provided by the Ambulance and Police Department, respectively, while fire services are provided through a contract with the City of Monterey.

Public Works is responsible for facility and vehicle maintenance, development and management of capital projects; construction, improvement and repair of streets, sidewalks, pathways and storm drain systems and maintaining the Village forest, parks and shoreline areas.

Attachment 2
The ACFR includes all financial activities of the City. Financial data for all funds through which services are provided by the City have been included in this report using criteria adopted by the Governmental Accounting Standards Board (GASB), which is the authoritative body establishing U.S. Generally Accepted Accounting Principles (GAAP) for local governments.

Budgetary Policy and Control
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 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.

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 uses. 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 15 February 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 1 July.

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.

FACTORS AFFECTING FINANCIAL CONDITION
This brief narrative on the local economy, City financial policies and major initiatives outlined within the annual budget are intended to provide context to the MD&A and financial statements.

Local Economy
The City’s three major sources of General Fund revenue include Property Tax, Sales and Use Tax, and Transient Occupancy Tax. As shown on the chart on the next page entitled “City’s Major Revenues Historical Trend”, property taxes have historically been a strong component to the City’s financial health. Each tax represents about 1/3 of the City’s total General Fund revenues. Property tax revenue exceeded $8.8 million, a 7.4% increase over the prior fiscal year. Revenue generated from sales and use taxes has 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. Sales and use tax revenue for fiscal year 23/24 exceeded $10.1 million, a 7.8% increase over the prior fiscal year. Transient occupancy taxes (“TOT”) have also significantly contributed to the City’s revenues, rising to over $8.6 million in fiscal year 2023-2024 (“23/24”), a

1.5% increase over the prior year.

Attachment 2
The City’s three major revenue sources also illustrate the unique opportunities attributed to the City of Carmelby-the-Sea. Located within one square mile, the City is considered to be built-out, limiting the availability of new housing stock. This limited supply, coupled with a high demand for housing driven by the City’s desirability as a place to live and close proximity to the San Francisco metropolitan area, contributes to a healthy real estate market and thus the stability and strength of property tax revenues.

Many of the features that contribute to residential quality of life, such as a temperate climate, natural beauty, architecture, unique design standards and cultural, dining and shopping opportunities also attract visitors. The variety of restaurants and other dining options located within the City’s boundary as well as art galleries, jewelry and clothing retailers contribute to shopping opportunities for residents and visitors alike. Similarly, visitors have many lodging options to choose from when staying overnight within the City. The lodging establishments charge a 10% TOT for stays of 30 days or less, which is remitted to the City.

On November 6, 2012, the Carmel electorate approved a temporary 1% transaction and use tax (“sales tax”) for ten years to raise revenue for general purposes, known as Measure D. The advent of Measure D increased the viability of sales tax as the City’s top major revenue sources, as shown in the chart “City’s Major Revenues Historical Trend” below. 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 20/21.

Sales tax revenue has been the largest source of revenue for the City over the last three fiscal years.

While fiscal year 2020 was on track to meet revenue projections, the City’s economic forecast for two of its major revenue streams quickly began to change as news regarding the coronavirus (“COVID-19”) emerged. Travel restrictions coupled with decreased consumer spending and demand, particularly in the areas of travel and leisure, resulted in the underperformance of sales tax and TOT in fiscal year 20/21. TOT returned to pre-COVID levels in fiscal year 21/22, a tribute to Carmel’s claim as a unique travel destination. The economy has changed over the past fiscal year, with consumer spending higher across the City’s three major pillars of tax revenue. In fiscal year 23/24, Property tax increased to $8.8 million, TOT reached a high of $8.6 million and Sales and Use tax reached a high of $10.1 million.
$-
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2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Fiscal Year Ended June 30
City's Major Revenues Historical Trend
Property Sales TOT
Attachment 2
Property Taxes
The desirability of Carmel-by-the-Sea as a place to reside, coupled with its limited housing stock, contributes to a strong local real estate market. Property tax revenue totaled $5.1 million in fiscal year 14/15, increasing on average by 6% over the past 9 years, reaching $8.8 million in fiscal year 23/24. Local Property taxes grew at rates of 6.1% and 7.4% in fiscal year 22/23 and fiscal year 23/24, respectively, as the average home price continued to rise.

The median home price in Monterey County peaked in October 2023 at $1.12 million, with an average median price of $852,000 and $949,000 for fiscal years 22/23 and 23/24, respectively. In conjunction with the County’s median home price increase of 11% over the prior fiscal year, the City has enjoyed a 7.4% growth in property taxes in that same period, largely due to the increase in home values and secured property taxes.

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 BradleyBurns tax, as well as revenue from a local sales tax. The Carmel electorate approved a local 1% sales tax measure in November 2012. Sales tax has steadily increased each year since 2013, dropping slightly in 2016 and then rising each year thereafter to reach approximately $5.7 million in 2019. As explained in more detail within the Transient Occupancy Tax narrative below, the City faced a decline in the number of visitors due to COVID-19 for the last quarter of fiscal year 19/20, which also impacted sales tax. Sales tax in 2020 totaled approximately $4.8 million.

On March 3, 2020, the Carmel voters approved Measure C, increasing the sales tax rate to 1.5%. The timing of Measure C helped minimize the effects of reduced sales suffered during the pandemic, allowing the City to survive and recover to pre-pandemic levels by fiscal year 20/21. In fiscal year 2022, the City of Carmel-by-the-Sea experienced a surge in sales and use tax revenue, a reflection of “revenge” consumer spending and relief from the consumer goods shortages and logistic nightmares brought out during COVID-19. After a small dip in fiscal year 22/23 sales and use tax revenue, fiscal year 23/24 finished at an all-time high of $10.1 million, an 8% increase over prior fiscal year.

Spending for general consumer goods were especially strong in fiscal year 23/24, particularly for family apparel, women’s apparel and jewelry. Restaurants also did well, posting consecutive growth throughout the fiscal year.

Measure C’s results were just as impressive and reflected a large increase in the number of new luxury automobiles $-
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2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Fiscal Year Ended June 30
Property Tax Trend
Attachment 2
purchased and registered to local addresses. Sales tax in fiscal year 23/24 generated approximately $10.1 million, a 7.8% increase over the prior fiscal year.

Transient Occupancy Taxes
Transient occupancy taxes (“TOT”) contributed $5.3 million toward citywide revenues in fiscal year 14/15. TOT grew on average by 7% over the next 5 fiscal years until reaching $6.8 million in fiscal year 18/19 with expected strong performance on the horizon. However, with global news emerging in February 2020 regarding the coronavirus, local hotels experienced an immediate decline in occupancy due to international travel restrictions.

Subsequently Monterey County issued a shelter in place (“SIP”) order on March 17, 2020 followed by a statewide SIP issued by Governor Newsom on March 19, 2020. Hotels faced a nearly absolute shut down with little to no guests in February and March 2020 and continued into the early summer, which is one of the City’s busier periods for tourism, with decreased occupancy rates. As a result, TOT generated $5.1 million in fiscal year 19/20, or $1.7 million (25%), less than the fiscal year 19/20. As the pandemic continued for fiscal year 20/21, the City of Carmelby-the-Sea began to see an increase in TOT revenue of 4.4% to $5.3 million as more travelers sought to escape to Carmel. Rebound in revenue came in fiscal year 21/22 when the TOT revenue grew to $7.8 million, a 46% growth over prior fiscal year, surpassing pre-pandemic revenues. Carmel has proved to maintain its allure as a travel destination. TOT revenues for the fiscal year 23/24 are $8.6 million, a modest growth of 1.5% over last fiscal year. $-
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Fiscal Year Ended June 30
Sales & Use Tax Trend
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2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Fiscal Year Ended June 30
Transient Occupancy Tax (TOT) Trend
Attachment 2
Relevant Financial Policies
Financial and Budget Policies
The City Council adopted Council Policy C94-01: Financial and Budget Policies to provide direction to help ensure sound fiscal planning and the management of fiscal integrity. The Policies pertain to the capital and operating budgets, fund balance, debt management and investments.

Highlights of policy guidelines include the following:

Capital
 Total capital improvements were budgeted at $9.8 million at the beginning of the fiscal year. Excluding Streets projects of $2,979,000, capital expenses were budgeted at approximately $6.8 million, or 22% of total budgeted revenue. Actual capital expenditures totaled approximately $2.8 million.  10% of the unrestricted funds designated for capital project expenditures were not set aside for unanticipated expenditures. A capital reserve policy of 20% of estimated five-year CIP expenditures was maintained. The reserve amount is calculated at $5.02 million.  The Five-Year Capital Improvement Program (CIP) was updated. The estimated cost to the City for its Five-Year Capital Improvement plan is $25 million. All fiscal year 23/24 funded projects are consistent with the City’s General Plan.

Operating
 The fiscal year 23/24 Adopted Budget did include a revenue buffer of 5% of projected expenditures.  The fiscal year 23/24 Adopted Budget did not project a balanced budget. Ongoing expenses were not funded with one-time revenues. At fiscal year-end, governmental fund sources were greater than uses by $5.6 million.

Fund Balance
 General Fund and Hostelry Fund reserves were maintained at no less than 15% and 10%, respectively, of their annual projected revenue. The General Fund Balance of $20.3 million, significantly exceeds the statutory required reserve limit.

Major Initiatives
Continued Investment in Protecting Natural Resources and Critical Infrastructure The fiscal year 23/24 Adopted Budget allocated $10.9 million in funding for capital projects and vehicle and equipment purchases intended to rehabilitate City facilities; address sidewalks and street improvements; enhance public safety and protect and preserve the natural environment. The fiscal year 23/24 budget recognizes the importance of investing our “green” infrastructure by including $1 million for projects pertaining to the Urban Forest master plan, Mission Trail Nature Preserve tank and well demo, coastal engineering study, North Dunes restoration including split rail fencing and signage, and shoreline infrastructure repairs. Additional capital funding included the Police building project, drainage design, City Hall roof replacement, Harrison Memorial Library painting, and Sunset Center cottage windows, ongoing implementation of accessibility improvements at various City facilities, an electric sweeper, two forestry electric trucks, and an electric vehicle for Police administration.

Revenue Enhancement and Stability
On November 6, 2012, the Carmel electorate approved a temporary 1% transaction and use tax (“sales and use tax”) known as Measure D. Measure D sunsets in 2023. Recognizing the importance of this revenue to the City’s financial health, the City Council began discussions regarding the renewal of Measure D well ahead of the sunset date. Council drafted a new sales tax initiative to replace the existing Measure D and increase the local sales tax Attachment 2
by 0.50%. On March 3, 2020, Carmel voters approved Measure C, which authorizes a 1.5% tax for 20 years for general City purposes. The criticality of Measure C to both the City’s short and long-term fiscal sustainability immediately became apparent with the emergence of the coronavirus pandemic in the spring of 2020. As the new sales tax rate became effective on July 1, 2020, the additional 0.50% tax rate mitigated projected decreases in visitor-driven sales tax performance. In addition, online purchases are subject to local sales tax and this type of spending greatly increased during the pandemic.

Addressing Pension Liabilities
The California Public Employees’ Retirement System (“CalPERS”) is the largest pension fund in the country, managing investments for nearly 2 million members on behalf of the state, schools and other public agencies. The City is a participating member of CalPERS and has two primary CalPERS plans, one for miscellaneous members and one for safety members.

Annually, the City makes a payment to CalPERS that consists of (1) the annual cost for current employees (“normal cost”) and (2) the unfunded accrued liability (“UAL”). The UAL is the actuarial liability less the actuarial value of the assets. In other words, it is the difference between what CalPERS needs in order to pay for retirement benefits when people retire as compared to the amount that CalPERS currently has on hand to pay for the estimated costs of the retirement benefits. Similar to other public agencies, the City’s pension costs have risen.

The UAL for the City is $29.9 million, based on the valuation date of June 30, 2023, as measured through June 30, 2024.

The City has historically used a combination of strategies to help mitigate the costs associated with pension liability, such as the:
 Issuance of pension obligation bonds;
 Negotiation of employee contributions toward the employer’s cost of pensions; and  Prepaying the annual UAL payment in order to save interest.

In January 2019, Council endorsed the City’s participation in a Pension Rate Stabilization Program to pre-fund pension obligations and authorized staff to issue a request for proposals for a Section 115 Trust Administrator. A Section 115 Trust is a tax-exempt investment vehicle authorized by the Internal Revenue Services to prefund government expenses, such as retirement plan benefits. Funds placed within the trust can remain within the trust until such time that the City chooses to draw on its assets to pay an annual benefit obligation (i.e. make either an annual and/or additional payment to CalPERS) or seek reimbursement for a pension-related expense. Other benefits associated with the establishment of a trust include (1) greater investment flexibility and risk diversification compared to the City’s general investment options and (2) City oversight of investment and control over the risk tolerance of its investment portfolio as compared to investments managed by CalPERS. On August 2, 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 Services (PARS) and authorized the City’s participation within this program. Subsequently, on September 7, 2021, Council authorized City staff to make an initial deposit of $1 million into the Trust. $1 million annual deposits are to be made over the next five years in the Section 115 Trust. The City deposited the third annual $1 million tranche into the Section 115 Trust in fiscal year 23/24.

AWARDS
Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the City of Carmel-by-the-Sea for its comprehensive annual financial report for the fiscal year ended June 30, 2023. In order to be awarded a Certificate of Achievement, a government must publish an easily readable and efficiently organized comprehensive annual financial report. This report must satisfy both generally accepted accounting principles and applicable legal requirements.

Attachment 2
A Certificate of Achievement is valid for a period of one year only. We believe that our current annual comprehensive financial report continues to meet the Certificate of Achievement Program’s requirements and we are submitting it to the GFOA to determine its eligibility for another certificate.

ACKNOWLEDGEMENTS
As a result of the professionalism and dedication of the Finance Division staff, the City continues to make strides in updating and enhancing its financial policies, procedures and systems, and its financial reporting capabilities, as evidenced by the production of this annual comprehensive financial report. The preparation of this report also required the involvement of many City departments in gathering statistics, as well as the guidance and support of the City’s independent auditor, and we extend our appreciation to these individuals for the assistance provided.

The annual comprehensive financial report is a document that strives to achieve transparency and full disclosure in financial reporting. As such, the preparation of this document would not be possible without the support of the City Council. We wish to acknowledge the City Council’s leadership and commitment to organizational excellence, public transparency and sound fiscal management.

Chip Rerig Jayme Fields
City Administrator Finance Manager
Attachment 2

CITY OF CARMEL-BY-THE-SEA PRINCIPAL OFFCIERS
Fiscal Year 2023-2024
City Council
Dave Potter, Mayor, Term: December 2020 – December 2024 Bobby Richards, Mayor Pro Tempore, Term: December 2020 – December 2024 Jeff Baron, Councilmember, Term: December 2018 – December 2026 Karen Ferlito, Councilmember, Term: December 2020 - December 2024 Alissandra Dramov, Councilmember, Term: November 2022 - December 2026 City Administrator
Chip Rerig
Attachment 2

ORGANIZATIONAL CHART
Carmel-by-the-Sea
Electorate
Council
City
Administrator
Community
Planning &
Building Director
Admin
Planning
Building Safety
Code
Compliance
Office of City
Administrator
Admin
City Clerk
Finance
Human
Resources
Information
Technology
Library and
Community
Activities Director
Library
Admin
Circulation
Youth
Reference
Local History
Community
Activities
Public Works
Director
Admin
Project
Management
Environmental
Compliance
Facilities
Streets
Forest, Parks
and Beach
Public Safety
Director
Ambulance
Fire
Police
Assistant City
Administrator
City Attorney
Attachment 2
Government Finance Officers Association
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of Carmel-by-the-Sea
California
For its Annual Comprehensive
Financial Report
For the Fiscal Year Ended
June 30, 2023
Executive Director/CEO
Attachment 2

FINANCIAL SECTION
Attachment 2
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Attachment 2
16450 Monterey Road, Ste. #5, Morgan Hill, CA 95037
Tel: 408-217-8749 • E-Fax: 408-872-4159
[email protected] • www.cnallp.com
INDEPENDENT AUDITOR’S REPORT
To the Honorable Mayor and Members of the
City Council of the City of Carmel-By-The-Sea
Carmel-by-the-Sea, California
Report on the Financial Statements
Opinion
We have audited the accompanying financial statements of the governmental activities, each major fund, and the aggregate remaining fund information of the City of Carmel-By-The-Sea (the “City"), as of and for the year ended June 30, 2024, and the related notes to the financial statements, which collectively comprise City’s basic financial statements as listed in the table of contents.

In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, each major fund, and the aggregate remaining fund information of the City of Carmel-By-The-Sea, as of June 30, 2024, and the respective changes in financial position and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America.

Basis for Opinion
We conducted our audit in accordance with auditing standards generally accepted in the United States of America (GAAS) and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.

Responsibilities of Management for the Financial Statements City management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter.

Attachment 2
16450 Monterey Road, Ste. #5, Morgan Hill, CA 95037
Tel: 408-217-8749 • E-Fax: 408-872-4159
[email protected] • www.cnallp.com
Auditor’s Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.

In performing an audit in accordance with GAAS and GAGAS, we:
 Exercise professional judgment and maintain professional skepticism throughout the audit.  Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.
 Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, no such opinion is expressed.
 Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.
 Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for a reasonable period of time.

We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control–related matters that we identified during the audit.

Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management’s discussion and other required supplementary information, as listed in the table of contents, be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because Attachment 2
16450 Monterey Road, Ste. #5, Morgan Hill, CA 95037
Tel: 408-217-8749 • E-Fax: 408-872-4159
[email protected] • www.cnallp.com
the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.

Supplementary Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City’s basic financial statements. The combining and individual fund financial statements, schedules, and other information listed in the supplementary information section of the table of contents are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with GAAS. In our opinion, the combining and individual fund financial statements and schedules are fairly stated, in all material respects, in relation to the basic financial statements as a whole.

Other Information
Management is responsible for the other information included in the annual comprehensive financial report. The other information comprises the introductory and statistical sections but does not include the basic financial statements and our auditor’s report thereon. Our opinions on the basic financial statements do not cover the other information, and we do not express an opinion or any form of assurance thereon. In connection with our audit of the basic financial statements, our responsibility is to read the other information and consider whether a material inconsistency exists between the other information and the basic financial statements, or the other information otherwise appears to be materially misstated. If, based on the work performed, we conclude that an uncorrected material misstatement of the other information exists, we are required to describe it in our report.

Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated January 24, 2025 on our consideration of the City’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City’s internal control over financial reporting and compliance.

January 24, 2025
Morgan Hill, California
Attachment 2
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Attachment 2
MANAGEMENT’S DISCUSSION

AND ANALYSIS
Attachment 2
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Attachment 2
City of Carmel-by-the-Sea Management’s Discussion and Analysis

INTRODUCTION
As management of the City of Carmel-By-The-Sea, we offer readers of the City’s financial statements this narrative overview and analysis of financial activities of the City of Carmel-By-The-Sea for the fiscal year that ended on June 30, 2024. We encourage readers to consider the information presented here in conjunction with additional information that we have furnished in the other sections of the attached audited financial statements, required supplemental information and other supplemental information. The required components of the report are listed below.

Required Components of the Annual Financial Report
FISCAL YEAR 2023/24 FINANCIAL HIGHLIGHTS
Government-Wide Highlights
 The assets and deferred outflows of resources of the City of Carmel-by-the-Sea exceeded liabilities ad deferred inflows of resources at the close of the fiscal year by $49.58 million (net position). Of this amount, net position included $34.96 million classified as net investment in capital assets; $4.61 million as restricted; and $10.00 million as unrestricted net position.  The City’s pension liability in accordance with GASB 68 as of June 30, 2024 was $29.20 million vs. $28.16 million in the prior fiscal year.
 The City of Carmel-by-the-Sea’s total net position increased by $6.00 million from last fiscal year mostly due to an in current assets of $5.09 million, and an increase in general revenues of $2.20 million.

Management’s
Discussion & Analysis
Government-Wide
Financial Statements
Fund
Financial Statements
Notes to the
Financial Statements
Basic
Financial Statements
Attachment 2
City of Carmel-by-the-Sea Management’s Discussion and Analysis Fund Highlights
 At the close of Fiscal Year 23/24 the City of Carmel-by-the-Sea’s governmental funds reported combined fund balances of $36.02 million, an increase of $4.41 million in comparison with the prior year. Approximately 33% or $11.89 million was classified as unassigned fund balance and was available for spending at the government’s discretion, which is down by $3.65 million over the prior year.
 At the end of the current fiscal year, unrestricted fund balance (the total of the committed, assigned, and unassigned components of fund balance) for the general fund was $17.15 million, or 76% of total general fund expenditures, prior to transfers, versus $20.39 million and 91% in the prior year.  The City’s long-term liabilities increased by $524 thousand primarily as the result of increases to employee benefit liabilities totaling $1.09 million, offset by decreases to long-term debt of $553 thousand.
 The City’s net capital assets increased by 4% or $1.47 million primarily as a result of new construction, offset by depreciation during the year.

OVERVIEW OF THE FINANCIAL STATEMENTS
The discussion and analysis are intended to serve as an introduction to the City of Carmel-by-the-Sea’s financial statements. The City of Carmel-by-the-Sea’s basic financial statements are comprised of (1) Government-wide Financial Statements (2) Fund Financial Statements, and (3) notes to the financial statements. This report also contains other supplementary information in addition to the basic financial statements themselves.

Government-Wide Financial Statements
The government-wide financial statements are designed to provide readers with a broad overview of the City of Carmel-by-the-Sea’s finances, in a manner similar to a private-sector business. Government-wide financial statements are prepared on the accrual basis, which means they measure the flow of all economic resources of the City as a whole. Government-wide financial statements consist of the Statement of Net Position and the Statement of Activities.

The Statement of Net Position presents financial information on all of the City of Carmel-by-the-Sea’s assets, liabilities, and deferred inflows/outflows of resources, with the difference reported as net position. Over time, increases or decreases in net position may serve as a useful indicator of whether the financial position of the City of Carmel-by-the-Sea is improving or deteriorating.

The Statement of Activities presents information showing how the City of Carmel-by-the-Sea’s net position changed during the most recent fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. This is consistent with a full accrual concept, which may result in the reporting of revenues and expenses in the current fiscal year, with cash flows occurring in future fiscal periods (e.g. uncollected revenues and earned but not used vacation leave).

Both of the government-wide financial statements distinguish functions of the City of Carmel-by-the-Sea that are principally support by taxes and intergovernmental revenues (governmental activities) from other functions that are intended to recover all or a significant portion of their costs through user fees and charges (businesstype activities). An overview of the City’s functions associated with each classification is listed below.

Attachment 2
City of Carmel-by-the-Sea Management’s Discussion and Analysis Governmental Activities – All of the City's basic services are considered to be governmental activities. This includes general government, public safety, public works, library, and community planning and building.

These services are supported by general City revenues such as taxes, and by specific program revenues such as development and general government program fees. The City also operates three internal service funds, which are combined with the governmental funds and reported as governmental activities. See the table of contents for reference to the government-wide financial statements pages within this report.

Fund Financial Statements
A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The City, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements.

Fund financial statements provide detailed information about each of the City's most significant funds, called major funds. Major funds are presented individually, with all nonmajor funds summarized and presented only in a single column. Subordinate schedules present the detail of these nonmajor funds. Major funds present the major activities of the City for the fiscal year and may change from year to year as a result of changes in the pattern of the City's activities. The City's funds are segregated into three categories: governmental funds, proprietary funds, and fiduciary funds.

Governmental Funds
Governmental funds are used to account for essentially the same function reported as governmental activities in the government-wide financial statements. However, unlike the government-wide financial statements, governmental funds focus on near-term inflows and outflows of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year. This represents a modified accrual basis of accounting, with capital assets, long-lived assets, and long-term liabilities excluded from the financial statements. Such information may be useful in evaluating the City's near-term financing requirements.

Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is useful to compare the information presented for the governmental funds with similar information presented for governmental activities in the government-wide financial statements. By doing so, readers may better understand the long-term impact of the government’s near-term financing decisions. Both the governmental fund balance sheet and the governmental fund statement of revenues, expenditures, and changes in fund balances provide a reconciliation to facilitate the comparison between governmental funds and governmental activities.

The City maintains eleven governmental funds. Information is presented separately in the governmental fund balance sheet and in the governmental fund statement of revenues, expenditures, and changes in fund balances for the General Fund, the Measure C Sales Tax Fund, the Capital Projects Fund and the Harrison Memorial Library Fund. These funds are considered to be major funds. Data from the other governmental funds are combined into a single aggregated presentation. Individual fund data for each of these nonmajor governmental funds is provided in the form of combining statements in the combining and individual fund statements and schedules section of this report.

The City of Carmel-by-the-Sea adopts an annual budget for its governmental funds. A budgetary comparison statements have been provided to demonstrate compliance with this budget. See the table of contents for where the basic governmental fund financial statements can be found this report.

Attachment 2
City of Carmel-by-the-Sea Management’s Discussion and Analysis Proprietary Funds
Internal service funds are an accounting mechanism used to accumulate and allocate costs internally among the City of Carmel-by-the-Sea’s various functions. The City uses internal service funds to account for the management of its retained risks associated with liability self-insurance, workers compensation and other post-employment benefits (OPEB). The City also uses an internal service fund, the Vehicle & Equipment Replacement Fund, to manage the costs of various equipment purchased, maintained and utilized to operate City services for various departments. Because these internal services predominately benefit governmental rather than business-type functions, they have been included within governmental activities in the Government-Wide Financial Statements.

Proprietary funds provide the same type of information as the government-wide financial statements, only in more detail. The internal service funds are combined into a single aggregated presentation in the proprietary fund financial statements. Individual fund data for the internal service funds are provided in the form of combining statements in the combining and individual fund statements and schedulessection of this report. See the table of contents for where the proprietary fund financial statements can be found this report.

NOTES TO THE FINANCIAL STATEMENTS
Notes to the Financial Statements provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial statements. The notes can be found immediately following the fund financial statements.

OTHER INFORMATION
In addition to the basic financial statements and accompanying notes, this report also presents required supplementary information concerning the City of Carmel-by-the-Sea’s budgetary information for the General Fund and Major Special Revenue Funds, and the City’s funding progress for its employee pension and OPEB benefit obligations. The page numbers for the required supplementary information can be found in the table of contents.

The combining statements referred to earlier in connection with nonmajor governmental funds and internal service funds are presented immediately following the required supplementary information. The page numbers for the combining and individual fund statements and schedules can be found in the table of contents.

An un-audited statistical section provides historical and current data on financial trends, revenue and debt capacity, demographic and economic information, and operating information. The table contents list the page numbers for where this information can be found.

Attachment 2
City of Carmel-by-the-Sea Management’s Discussion and Analysis

GOVERNMENT-WIDE FINANCIAL ANALYSIS
Over time, net position may serve as an indicator of a government’s financial position. In the case of the City of Carmel-by-the-Sea, assets and deferred outflows of resources exceeded liabilities and deferred inflows of resources by $49.58 million at the close of the Fiscal Year. This represents an increase of $6.00 million over the prior year.

The following table summarizes the City’s ending net position:

A significant portion, $34.96 million, of the City's net position reflects its investment in capital assets, (e.g., land, buildings, general government infrastructure, equipment, etc.), less accumulated depreciation and any outstanding debt that was used to acquire or construct those assets. Capital assets represent infrastructure which provide services to citizens and are not available for future spending. Although the City’s investment in capital assets is reported net of related debt, it should be noted that the resources to repay this debt must be provided from other sources, since the capital assets themselves cannot be used to liquidate the liabilities.

An additional $4.61 million of the City of Carmel-by-the-Sea’s net position represents resources that are subject to external restrictions on how they may be used. The remaining balance of $10.00 million is classified as unrestricted. The City participates in the CalPERS Miscellaneous and Safety pension plans. GASB 68 impacted local governments by requiring them to report a proportional share of their pension plan’s net pension liabilities on financial statements. As of June 30, 2024, the City’s proportionate share of the CalPERS pension liability was $29.20 million. See note 7 for detailed information related to the Plans, along with the required supplementary information section of this report.

Increase
2024 2023 (Decrease)
Assets
Current and other assets $ 43,166,255 $ 38,077,120 $ 5,089,135 Capital assets 39,535,950 38,065,618 1,470,332
Total Assets $ 82,702,205 $ 76,142,738 $ 6,559,467
Deferred Outflows of Resources $ 11,802,249 $ 12,288,018 $ (485,769) Liabilities
Current and other liabilities $ 2,553,119 $ 2,510,426 $ 42,693 Noncurrent liabilities 38,319,743 37,795,680 524,063
Total Liabilities $ 40,872,862 $ 40,306,106 $ 566,756
Deferred Inflows of Resources $ 4,053,488 $ 4,546,761 $ (493,273) Net Position
Net investment in capital assets $ 34,957,532 $ 32,930,884 $ 2,026,648 Restricted 4,614,831 5,536,383 (921,552)
Unrestricted 10,005,741 5,110,622 4,895,119
Total Net Position $ 49,578,104 $ 43,577,889 $ 6,000,215 Governmental Activities
Table 1 - Net Position
Attachment 2
City of Carmel-by-the-Sea Management’s Discussion and Analysis At the end of the current fiscal year, the City of Carmel-by-the-Sea is able to report a positive balance for the government as a whole. The reasons for the overall financial changes are discussed in the following sections for governmental activities.

Governmental Activities
As shown in the Statement of Changes in Net Position schedule below, the change in net position for governmental activities decreased by $5.41 million. This decrease is largely due to an increase of $4.90 million in public safety expenses and an increase of $1.89 million in public works expenses. These increases were mostly due to pension expense adjustments and deferrals that create inconsistencies in the expenses from year to year. Total revenues from governmental activities increased by $2.84 million from the prior year. The net change in expenses from the prior year was an increase of $8.26 million.

With total revenues for the fiscal year at $35.29 million and total expenses at $29.29 million, the change in net position for current activity was $6.00 million. An analysis of the changes in revenues and expenses is as follows:

Increase
Functions/Programs 2024 2023 (Decrease)
Program Revenues
Charges for services $ 2,975,335 $ 2,699,548 $ 275,787
Operating grants and contributions 1,064,653 958,933 105,720 Capital grants and contributions 263,557 - 263,557
Total Program Revenues 4,303,545 3,658,481 645,064
General Revenues
Taxes 29,166,647 27,588,978 1,577,669
Intergovernmental 837,891 771,258 66,633
Investment earnings 613,944 155,181 458,763
Other revenues 372,760 278,650 94,110
Total General Revenues 30,991,242 28,794,067 2,197,175
Expenses
General government 7,076,239 6,290,757 785,482
Community Planning and Building 1,888,267 1,618,884 269,383 Public Safety 10,332,228 5,427,362 4,904,866
Public Works 6,462,552 4,572,764 1,889,788
Library 2,145,612 1,677,297 468,315
Community Activities 173,958 201,277 (27,319)
Economic Reviltalization 1,127,937 1,101,644 26,293
Interest on fiscal charges 87,779 148,051 (60,272)
Total Expenses 29,294,572 21,038,036 8,256,536
Increase / (Decrease) in Net Position 6,000,215 11,414,512 (5,414,297) Net Position, Beginning of Year 43,577,889 32,163,377 11,414,512 Net Position, End of Year $ 49,578,104 $ 43,577,889 $ 6,000,215 Governmental Activities
Table 2 - Statement of Changes in Net Position
Attachment 2
City of Carmel-by-the-Sea Management’s Discussion and Analysis Governmental Revenues
The following chart summarizes the changes in revenues by category during the fiscal year:

Significant changes in governmental revenues consisted of the following:
 Property tax increased by $606 thousand, or approximately 7%, over the prior year due to continued strength in the real estate market resulting from the desirability of Carmel-by-the-Sea as a place to reside, coupled with its limited housing stock.
 Travel and tourism continued to be strong. Sales and use taxes increased by $725 thousand, or approximately 8%, from the prior year as tourism activity continued to grow. Transient occupancy taxes increased by $124 thousand, or approximately 1%, over the prior year due to increases in both the number of visitors and the average daily room rates charged by lodging operators..

Attachment 2
City of Carmel-by-the-Sea Management’s Discussion and Analysis Governmental Expenses
The following chart summarizes the changes in expenses by category during the fiscal year:

Significant changes in governmental expenses include increases to public safety and public works expenses of $4.90 million and $1.89 million, respectively. The large increase in public safety and public works expenses was mostly due to a $3.92 million pension credit in the prior year versus a $1.18 million pension expense in 23/24.

FINANCIAL ANALYSIS OF THE CITY’S GOVERNMENTAL FUNDS
As noted earlier, the City of Carmel-by-the-Sea uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements.

The focus of the City’s governmental funds is to provide information on near-term inflows, outflows, and balances of spendable resources. Such information is useful in assessing the City’s financing requirements.

In particular, the unassigned fund balance may serve as a useful measure of a government’s net resources available for discretionary use as they represent the portion of fund balance which has not yet been limited to use for a particular purpose by either an external party, the City itself, or a group or individual that has been delegated authority to assign resources for particular purposes by the City of Carmel-by-the-Sea’s Council.

Attachment 2
City of Carmel-by-the-Sea Management’s Discussion and Analysis The following is a summary of the changes in fund balance of the major and other (nonmajor) governmental funds:

Overall fund balance of increased by $4.41 million mostly due to an increase in total revenues of $2.40 million, driven by an increase in taxes of $1.58 million. The fund balance of the City’s General Fund decreased by $2.09 million mostly due to transfers out to other funds of $3.71 million. The fund balance in the Measure C Sales Tax Fund increased by $241 thousand because an increase in sales tax revenue. The fund balance in the Capital Projects fund increased by $7.42 million mostly from transfers made by the Measure C Sales Tax Fund and General Fund to pay for capital projects. The fund balance in the Library Fund increased by $3 thousand as revenues increased by $67 thousand and expenses decreased by $34 thousand from the prior year.

Combined Funds – Components of Fund Balance
As of June 30, 2024, the City of Carmel-by-the-Sea’s reported combined fund balances of $36.02 million, which represents a $4.41 million increase over the prior year. Approximately 33%, or $11.89 million, was classified as unassigned fund balance, which is available for spending at the government’s discretion. The remainder of the fund balance was either committed, restricted, or assigned. The committed balance of $754 thousand represents funds that are set-aside for specific purposes via resolution of the City Council.

The restricted balance of $7.74 million reflects fund that are legally required to remain intact, $29 thousand was classified as nonspendable for prepaid items, while the remainder of $15.60 million represents funds that were assigned to a particular purpose by the City Council or management given legal authority by the Council.

General Fund – Components of Fund Balance
The general fund is the chief operating fund of the City of Carmel-by-the-Sea. At the end of the current fiscal year, the unassigned fund balance of the general fund was $11.89 million, and the total fund balance increased to $20.31 million. As a measure of the general fund’s liquidity, it may be useful to compare both unassigned fund balance and total fund balance to total general fund expenditures. The total general fund expenditures prior to transfers were $25.74 million. Unassigned fund balance represents approximately 46% of the total general fund expenditures, while total fund balance represents approximately 79% of total general fund expenditures.

Harrison
Measure C Capital Memorial Other
General Sales Tax Projects Library Governmental
Fund Fund Fund Fund Funds Total
Total Revenues $ 27,133,782 $ 6,386,122 $ 88,560 $ 412,355 $ 670,618 $ 34,691,437 Total Expenditures 25,740,423 - 2,750,084 409,336 520,042 29,419,885 Revenues Over (Under) Expenditures 1,393,359 6,386,122 (2,661,524) 3,019 150,576 5,271,552 Other Financing Sources (Uses) 72,964 - - - - 72,964
Transfers in 158,000 - 10,081,107 - 528,044 10,767,151
Transfers out (3,715,820) (6,145,082) - - (1,844,231) (11,705,133) Net change in fund balances (2,091,497) 241,040 7,419,583 3,019 (1,165,611) 4,406,534 Beginning of year 22,398,401 1,911,499 3,676,972 1,450,632 2,174,252 31,611,756 End of year $ 20,306,904 $ 2,152,539 $ 11,096,555 $ 1,453,651 $ 1,008,641 $ 36,018,290 Major Funds
Table 3 - Summary of Changes in Fund Balance - Governmental Funds Attachment 2
City of Carmel-by-the-Sea Management’s Discussion and Analysis The following charts provide an annual comparison of the fund balance components included in the general fund and the other governmental funds.

The assigned fund balance in other governmental funds was from the Capital Projects Fund which had $11.10 million in fund balance assigned for capital projects.

Attachment 2
City of Carmel-by-the-Sea Management’s Discussion and Analysis FINANCIAL ANALYSIS OF CITY’S INTERNAL SERVICE FUNDS
The following is a summary of the changes in fund balance of the City’s internal service funds:

CAPITAL ASSETS
The City of Carmel-by-the-Sea’s investment in capital assets includes land, buildings, systems, improvements, machinery, equipment, facilities, roads, and other similar assets and infrastructure. The following table summarizes the City’s capital assets at the end of the year:

The City reported depreciation expense of $2.16 million for fiscal year 2023-24 as compared to $2.14 million for fiscal year 2022-23.

See Note 5 in the notes to financial statements section for additional information.

Vehicle
Workers OPEB & Equipment
Compensation Reserve Replacement
Fund Fund Fund Total
Total Revenues $ 61,116 $ - $ 242,678 $ 303,794
Total Expenditures 42,062 - 286,400 328,462
Revenues Over (Under) Expenditures 19,054 - (43,722) (24,668) Nonoperating Revenue (Expense) 23,649 48,469 196,968 269,086 Transfers in - - 937,982 937,982
Transfers out - - - -
Net change in fund balances 42,703 48,469 1,091,228 1,182,400 Beginning of year 259,716 1,768,710 2,473,852 4,502,278 End of year $ 302,419 $ 1,817,179 $ 3,565,080 $ 5,684,678 Table 4 - Summary of Changes in Net Position - Internal Service Funds Increase
2024 2023 (Decrease)
Land $ 5,101,641 $ 5,101,641 $ -
Construction in Progress 1,784,310 1,009,751 774,559
Buildings and improvements 13,845,546 14,370,979 (525,433) Infrastructure 17,288,278 16,653,881 634,397
Vehicles 850,671 205,651 645,020
Technology/Hardware and Software 133,183 124,702 8,481
Subscription based assets 263,386 250,580 12,806
Machinery and equipment 268,935 348,433 (79,498)
Total Capital Assets, Net $ 39,535,950 $ 38,065,618 $ 1,470,332 Table 5 - Capital Assets at Year End - Net
Governmental Activities
Attachment 2
City of Carmel-by-the-Sea Management’s Discussion and Analysis

DEBT ADMINISTRATION (LONG-TERM LIABILITIES)
During the year, Long-Term Liabilities from governmental activities increased by $524 thousand primarily due an increase in the net pension liability as shown below and described in the financial highlights section.

The following table summarizes the City’s debt at the end of the year:

See Note 6 in the notes to financial statements section for additional information.

GENERAL FUND BUDGETARY HIGHLIGHTS
Changes from the City's General Fund original budget to the final budget are detailed in the Required Supplementary Information section along with a comparison to actual activity for the year ended. In Fiscal Year 23/24, the City originally estimated a decrease of $9.13 million in fund balance. However, the City ended the year with a surplus of revenues over expenditures of $1.39 million and an overall decrease to fund balance of $3.48 million after transfers out of $3.71 million.

Revenues
The General Fund adopted and final revenue budgets were $23.76 and $24.46 million, with actual revenues recorded at $27.13 million. This $2.67 million difference was primarily from increased transient occupancy tax collections which were $1.18 million over budget and taxes overall which were $1.82 million over budget.

Expenditures
The General Fund adopted expenditure budget was $29.33 million and the final budget was $30.03 million.

The actual expenditures totaled $25.74 million, which resulted in a net difference of $4.29 million. Most of the savings can be attributed to salary and benefit savings.

Increase
2024 2023 (Decrease)
Sunset Center LRB $ 3,540,000 $ 3,895,000 (355,000)
Sunset Center LRB Premium 650,175 809,107 (158,932)
Countywide Radio Project - 15,033 (15,033)
Financed Purchases 132,334 156,440 (24,106)
Subscription Liabilities 255,909 259,154 (3,245)
Compensated Absences 888,842 898,688 (9,846)
Net Pension Liability 29,203,964 28,163,296 1,040,668
Claims Liability 575,000 575,000 -
Total OPEB Liability 3,073,519 3,023,962 49,557
Total Long-Term Liabilities $ 38,319,743 $ 37,795,680 $ 524,063 Table 6 - Outstanding Long-Term Liabilities
Governmental Activities
Attachment 2
City of Carmel-by-the-Sea Management’s Discussion and Analysis

ECONOMIC OUTLOOK
Summary
The City’s primary revenue sources include property taxes, sales and use taxes, and transient occupancy taxes. The desirability of Carmel-by-the-Sea as a place to reside and visit drives the overall increase to the City’s revenue in fiscal year 23/24. Property tax revenue continues to steadily grow year over year as limited stock drives home prices higher. After experiencing a slight decline in fiscal year 19/20, sales taxes and transient occupancy taxes are currently outperforming budget expectations, reaching all-time highs.

These increases are the result of increased travel-related spending and consumer spending shifting back to consumer goods, causing an increase in sales and use tax revenue for the City over last fiscal year.

Restaurants and general consumer goods (retail) are the City’s leading drivers of sales and use tax revenue.

The City has recovered and surpassed pre-pandemic tourism and related spending levels. Projections for the City’s three major revenues total $26.0 million, or 83%, of the $31.49 million in estimated total citywide revenues for fiscal year 24/25. The three major revenues increase $2.5 million over the fiscal year 23/24 Adopted Budget, primarily driven by continued strong performance in transient occupancy taxes as well as increases in property and sales and use taxes. While the approaching fiscal year reflects increased revenue receipts, the economic outlook assumes the leveling off of sales and use taxes, anticipating only a conservative 2% growth over prior year revenues as consumers sort through higher prices in the market.

Similarly, the City is cautiously projecting growth in transient occupancy taxes (TOT). TOT daily occupancy rates are trending 4% higher than this time last fiscal year while the average daily room rate is trending 9% higher over the same period.

Planned expenditures also increase in the fiscal year. City staffing levels rose from 96.23 to 97.25 full-time equivalents (FTE) in fiscal year 24/25. The cost of staffing increased from $15 million to $16 million due to a combination of factors such as negotiated salary and benefit adjustments, personnel advancement (annual merit or salary step adjustments), rising retirement and health insurance costs and additional staff.

Even with static staffing levels, the City faces rising personnel costs primarily attributed to pension-related expenses. In addition to its annual contributions toward retirement costs for existing employees, the City makes an annual required payment to the California Public Employees’ Retirement System (CalPERS) for the City’s unfunded actuarial liability (“UAL”). The UAL payment for the upcoming fiscal year is approximately $2.4 million. To help address its pension obligations, the City established a Section 115 Trust with an initial investment of $1 million in fiscal year 21/22 and has made an additional $1 million contribution each fiscal year thereafter.

The City’s ability to provide ongoing funding into the trust while maintaining an annual balanced budget is contingent on (1) revenues sustaining annual growth over the next several years and (2) controlling increases in Citywide expenses, particularly regarding salary and benefits and capital outlay. Inflation also affects the ability to reduce costs for staffing, services and supplies.

Outlook for Major Revenues
Property Taxes
Located within one square mile, the City’s land capacity for new housing is limited, which curtails the availability of housing stock. This limited supply, coupled with a high demand for housing driven by the City’s desirability as a place to live and close proximity to the San Francisco metropolitan area, contributes to a healthy real estate market and thus the stability and strength of property tax revenues.

Attachment 2
City of Carmel-by-the-Sea Management’s Discussion and Analysis Unlike sales tax and transient occupancy tax, the fiscal year 23/24 budget assumed incremental growth in property tax and continued resiliency. The median home price in Monterey County averaged $949,000 in fiscal year 23/24, a 11% increase from prior year. The City median home sales price for the beginning of fiscal year 24/25 is currently running at $941,000. The recent upward trend in mortgage rates, speaks to the potential slight softening of housing market demand. Carmel has a consistently strong property tax base.

While fiscal year 24/25 property tax revenue outpaces projections, annual growth of 2% is conservatively realistic. Historically, the City’s annual increase in property taxes over the last ten years averages 6.1%.

The financial forecast assumes 2% annual growth over the next several years.

Sales and Use Taxes
Many of the features that contribute to residential quality of life, such as a temperate climate, natural beauty, architecture and unique design standards and cultural, dining and shopping opportunities also attract visitors. The variety of restaurants and other dining options located within the City, as well as art galleries, jewelry and clothing retailers contributes to shopping opportunities for residents and visitors alike.

Restaurants and general consumer goods (retail) are the City’s leading drivers of sales and use tax revenue.

Projections statewide for the restaurant category anticipate growth of 1.7% in fiscal year 24/25 and 3.5% in fiscal year 25/26, as ever-increasing prices statewide have offset a 2.5% decrease in foot traffic to restaurants in response to rising menu prices. General consumer goods are expected to slow with growth at -0.6% in fiscal year 24/25, followed by an increase of 1.3% in fiscal year 25/26 on a statewide basis. Recent trends show inflation has finally cooled after two years of ongoing efforts from the Fed to a moderate 2.5% pace over the last twelve months. Inflation projections put fiscal years 24/25 and 2026 at 2.4% and 2.3% respectively.

Fiscal year 25/26 projects an increase of 2% in the local sales tax (Measure C) and a decrease of 1% in the City’s share of the statewide sales tax when compared to the fiscal year 24/25 Adopted Budget.

Transient Occupancy Taxes
Various lodging options are available to visitors and these lodging establishments charge a 10% transient occupancy tax for stays of 30 days or less. Transient occupancy taxes (TOT) are challenging to predict as they are based upon personal choices regarding travel, be it the decision on whether to travel, where to travel, and how much to spend on travel, such as the amount to pay for a hotel room. In addition to facing competition from other popular US destinations that neighbor the Monterey Peninsula to the north and south, the City also competes with other international destinations. On the other hand, given its proximity to San Francisco and location on the California central coast between San Francisco and Los Angeles the City is accessible to many visitors, including guests from California, other states and other countries. Thus, the City’s TOT is sensitive to changes in consumer spending, economic conditions, and, to some extent, statewide, national and international policies.

The annual TOT average daily percentage occupancy rate for the City remained unchanged from fiscal year 22/23 to fiscal year 23/24. Even though the occupancy percentage was unchanged, the City did see an 26% increase in the average daily room rate for the fiscal year, as well as an increase in the total number of room nights, and that trend appears to continue into the first quarter of fiscal year 25/26 While the City of Carmelby-the-Sea continues to be a world travel destination, if this trend continues, inflated prices may deter visitors. Therefore, the City remains cautious. The City’s financial forecast assumes a conservative growth of 2% for fiscal year 24/25
Attachment 2
City of Carmel-by-the-Sea Management’s Discussion and Analysis Outlook for Major Expenditures
Salaries and Benefits
The City’s largest annual expenditure is the cost of personnel. City staffing levels gained an 1 FTE to 97.25 full-time equivalents (FTE) in fiscal year 24/25. Correspondingly, the cost of staffing increases from $15.1 million to $16 million due to a combination of factors such as negotiated salary and benefit adjustments, step increases, rising retirement and health care costs and additional staff. Personnel costs steadily increase, approaching $16.7 million by fiscal year 25/26, without any increase in FTE beyond fiscal year 24/25 staffing levels.

Pension Costs
The City provides a defined pension plan through the California Public Employees’ Retirement System (CalPERS) for its full-time employees. As such, the City is responsible for contributing toward current employees’ retirement packages an amount determined by CalPERS based upon a percentage of salary (“employer contribution”). The employer contribution is included within the City’s overall budgeted salary and benefit costs. In addition, the City is obligated to make additional pension payments to CalPERS known as the unfunded actuarial liability (“UAL”). The UAL addresses any shortfall between the funding CalPERS needs to pay for retirement benefits when people retire compared to the funding that CalPERS currently has on hand to pay for the estimated costs of these benefits. The total UAL for the City is $29.9 million, based on the valuation date of June 30, 2023, as measured through June 30, 2024.

To help address its pension obligations, the City established a Section 115 Trust with an initial investment of $1 million into the trust. Current City Council wishes to provide funding of $1 million annually into the trust and contributed its third tranche in fiscal year 23/24. The City is on track to contribute another $1 million to the Section 115 Trust in fiscal year 24/25 and the final $1 million tranche in fiscal year 2026.

Other Operating Costs
In order to deliver services to the community, the City procures various types of goods and services. The category of services and supplies assumes 9% annual growth in fiscal year 24/25, as the City adjusts for goods and services overall sensitivity to inflation. Federal interest rates have eased and inflation is expected to remain around the Fed target of 2.5% in fiscal years 24/25 and 25/26. The City contracts for specialized professional services and costs trend upward based upon credentials, certifications and qualifications of the individuals providing the service. Moreover, City currently contracts with another governmental agency for fire prevention and response services are subject to increases based upon salary and benefits, including pension. Overall costs across all sectors are significantly higher compared to prior fiscal years.

Capital Projects
The City’s capital expenditures budget increased to $12.2 million in fiscal year 24/25. In future years, in accordance with the City’s financial policies, capital outlay expenses should represent 3.5% of projected revenue, or approximately $1.1 million annually based upon current revenue assumptions. However, the City’s Five-Year Capital Improvement Plan totals $54 million over the next five fiscal years. Similar to service and supplies, inflation and other market-based conditions drive the availability of contractors and costs to implement public works projects, subject to prevailing wage. In addition, deferring building and infrastructure maintenance drives long-term costs for repair and replacement.

Attachment 2
City of Carmel-by-the-Sea Management’s Discussion and Analysis Debt Service
On September 30, 2020, the City refinanced the 2010 Refunding Lease Revenue Bond related to improvements at the Sunset Center (the Sunset Theater Project). Annual future debt service payment is approximately $516,000 for fiscal year 24/25 through bond maturity on November 1, 2032.

REQUEST FOR FINANCIAL INFORMATION
This Annual Financial Report is intended to provide citizens, taxpayers, investors, and creditors with a general overview of the City’s finances. If you have any questions about this report, need additional financial information, or would like to obtain component unit financial statements, contact the City of Carmel-by-the-Sea-by-the-Sea Finance Department, P O Box CC, Carmel-by-the-Sea, CA 93921, or visit the City’s web page at http://ci.carmel.ca.us/carmel.

Attachment 2

BASIC FINANCIAL STATEMENTS
Attachment 2
City of Carmel-By-The-Sea
Statement of Net Position
June 30, 2024
Governmental
ASSETS Activities
Current Assets:

Cash and investments $ 38,136,701
Receivables:

Accounts 2,842,927
Due from other governments 1,239,856
Other assets 946,771
Total Current Assets 43,166,255
Noncurrent Assets:

Capital Assets:

Nondepreciable 6,885,951
Depreciable, net of accumulated depreciation 32,649,999 Total Capital Assets - Net 39,535,950
Total Assets $ 82,702,205

DEFERRED OUTFLOWS OF RESOURCES
OPEB Adjustments $ 258,112
Pension Adjustments 11,544,137
Total Deferred outlows of Resources $ 11,802,249

LIABILITIES
Current Liabilities:

Accounts payable $ 1,243,299
Payroll related liabilities 764,742
Deposits and other liabilities 521,478
Interest payable 23,600
Claims payable - current portion 57,500
Compensated absences - current portion 204,000
Long-term debt - due within one year 528,215
Total Current Liabilities 3,342,834
Noncurrent Liabilities:

Long-term debt - due in more than one year 4,050,203
Claims payable 517,500
Compensated absences 684,842
Net pension liability 29,203,964
Total OPEB liability 3,073,519
Total Noncurrent Liabilities 37,530,028
Total Liabilities $ 40,872,862

DEFERRED INFLOWS OF RESOURCES
OPEB Adjustments $ 1,613,273
Pension Adjustments 2,440,215
Total Deferred Inflows of Resources $ 4,053,488

NET POSITION
Net investment in capital assets $ 34,957,532
Restricted for:

Transportation 168,923
Public safety 40,465
Debt service 34,807
Library 1,453,651
Public parking 758,830
Measure D 2,152,539
Asset seizure 5,616
Total Restricted 4,614,831
Unrestricted 10,005,741
Total Net Position $ 49,578,104
The accompanying notes are an integral part of these financial statements.

Attachment 2
City of Carmel-By-The-Sea
Statement of Activities
For the Year Ended June 30, 2024
Operating Capital
Charges for Grants and Grants and Governmental
Functions/Programs Expenses Services Contributions Contributions Total Activities Primary Government:

Governmental Activities:

General government $ 7,076,239 $ 189,021 $ 704,750 $ 88,557 $ 982,328 $ (6,093,911) Community Planning and Building 1,888,267 1,490,531 - - 1,490,531 (397,736) Public Safety 10,332,228 845,411 - 175,000 1,020,411 (9,311,817) Public Works 6,462,552 196,965 - - 196,965 (6,265,587)
Library 2,145,612 6,655 359,903 - 366,558 (1,779,054)
Community Activities 173,958 82,238 - - 82,238 (91,720) Economic Revitalization 1,127,937 164,514 - - 164,514 (963,423) Interest and fiscal charges 87,779 - - - - (87,779)
Total Governmental Activities $ 29,294,572 $ 2,975,335 $ 1,064,653 $ 263,557 $ 4,303,545 (24,991,027) General Revenues:

Taxes:

Property taxes 8,770,847
Sales and use taxes 10,078,592
Transient occupancy taxes 8,579,344
Franchise taxes 986,558
Business license tax 751,306
Total taxes 29,166,647
Intergovernmental revenues not restricted to specific programs 837,891 Investment earnings 613,944
Other revenues 372,760
Total General Revenues 30,991,242
Change in Net Position 6,000,215
Net Position - Beginning of Year 43,577,889
Net Position - End of Year $ 49,578,104
The accompanying notes are an integral part of these financial statements.

Net (Expense)
Revenue and
Change in Net
Program Revenues Position
Attachment 2
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Attachment 2

MAJOR GOVERNMENTAL FUNDS
Fund Title Fund Description
General Fund This fund is used to account for all of the general operations and other financial transactions of the City, which are not accounted for by another fund.

Measure C Sales Tax This fund is used to account for the transaction and use tax increase to be used to maintain essential services, including fire, ambulance and police response times; fund capital needs, including streets, beach, parks, forest and trails; increase code compliance; maintain libraries, Sunset Center and other public facilities; address CalPERS pension liabilities and other debt; and provide other general City services.

Capital Projects This fund accounts for resources utilized, committed, assigned or restricted for capital projects.

Harrison Memorial Library This fund is used to account for activities associated with the Harrison Memorial Library.

Attachment 2
City of Carmel-By-The-Sea
Balance Sheet
Governmental Funds
June 30, 2024
Harrison
Measure C Capital Memorial Other Total
General Sales Tax Projects Library Governmental Governmental Fund Fund Fund Fund Funds Funds
ASSETS
Cash and investments $ 19,592,218 $ 1,015,690 $ 11,383,675 $ 1,486,541 $ 970,209 $ 34,448,333 Receivables:

Accounts 2,830,927 - - - - 2,830,927
Due from other governments - 1,136,849 - - 103,007 1,239,856 Due from other funds - - 64,575 - - 64,575
Other assets 28,693 - - - - 28,693
Total assets $ 22,451,838 $ 2,152,539 $ 11,448,250 $ 1,486,541 $ 1,073,216 $ 38,612,384

LIABILITIES AND FUND BALANCES
Liabilities:

Accounts payable $ 931,841 $ - $ 278,568 $ 32,890 $ - $ 1,243,299 Accrued liabilities 691,615 - 73,127 - - 764,742
Deposits 521,478 - - - - 521,478
Due to other funds - - - - 64,575 64,575
Total liabilities 2,144,934 - 351,695 32,890 64,575 2,594,094 Fund Balances:

Nonspendable
Prepaid items 28,693 - - - - 28,693
Restricted:

Transportation - - - - 168,923 168,923
Public safety - - - - 40,465 40,465
Debt service - - - - 34,807 34,807
Library - - - 1,453,651 - 1,453,651
Asset seizure - - - - 5,616 5,616
Public parking - - - - 758,830 758,830
Pensions 3,124,794 - - - - 3,124,794
Measure C - 2,152,539 - - - 2,152,539
Committed:

Holstery tax 754,323 - - - - 754,323
Assigned:

Operational reserves 4,505,124 - - - - 4,505,124
Capital projects - - 11,096,555 - - 11,096,555
Unassigned 11,893,970 - - - - 11,893,970
Total fund balances 20,306,904 2,152,539 11,096,555 1,453,651 1,008,641 36,018,290 Total liabilities and
fund balances $ 22,451,838 $ 2,152,539 $ 11,448,250 $ 1,486,541 $ 1,073,216 $ 38,612,384 The accompanying notes are an integral part of these financial statements.

Major Funds
Attachment 2
City of Carmel-By-The-Sea
Reconciliation of the Government Funds Balance Sheet
to the Government-Wide Statement of Net Position
June 30, 2024
Total Fund Balances - Total Governmental Funds $ 36,018,290 Amounts reported for governmental activities in the statement of net position were different because:

Capital assets used in governmental activities were not current financial resources. Therefore, they were not reported in the Governmental Funds Balance Sheet. The capital assets were adjusted as follows:

Capital assets 67,032,069
Less: accumulated depreciation (29,269,685)
Total Capital Assets 37,762,384
Interest payable on long-term debt did not require current financial resources. Therefore, interest payable was not reported as a liability in Governmental Funds Balance Sheet. (23,600) Internal service funds are used by management to charge the costs of stores, vehicle maintenance and various insurance costs to individual funds. The assets and liabilities of the internal service funds are included in the governmental activities in the statement of net position. 5,684,679
The differences from benefit plan assumptions and estimates versus actuals are not included in the plan's actuarial study until the next fiscal year and are reported as deferred inflows or deferred outflows of resources in the statement of net position. 7,748,760 Long-term obligations were not due and payable in the current period. Therefore, they were not reported in the Governmental Funds Balance Sheet. The long-term liabilities were adjusted as follows:

Long-term debt (4,446,084)
Compensated absences (888,842)
Net pension obligation (29,203,964)
Total OPEB liability (3,073,519)
Total Long-Term Obligations (37,612,409)
Net Position of Governmental Activities $ 49,578,104
The accompanying notes are an integral part of these financial statements.

Attachment 2
City of Carmel-By-The-Sea
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Governmental Funds
For the Year Ended June 30, 2024
Harrison
Measure C Capital Memorial Other Total
General Sales Tax Projects Library Governmental Governmental Fund Fund Fund Fund Funds Funds

REVENUES
Taxes:

Property taxes $ 8,770,847 $ - $ - $ - $ - $ 8,770,847
Sales and use taxes 3,692,470 6,386,122 - - - 10,078,592 Transient occupancy taxes 8,579,344 - - - - 8,579,344
Franchise taxes 986,558 - - - - 986,558
Business license tax 751,306 - - - - 751,306
Intergovernmental revenues 910,428 - 12,768 - 619,445 1,542,641 License and permits 1,359,671 - - - - 1,359,671
Contributions - - - 359,903 - 359,903
Fines and forfeitures 180,843 - - - - 180,843
Charges for services 1,133,640 - - 6,655 - 1,140,295
Interest 444,856 - - 45,797 51,173 541,826
Rents and concessions 164,514 - - - - 164,514
Other revenues 159,305 - 75,792 - - 235,097
Total Revenues 27,133,782 6,386,122 88,560 412,355 670,618 34,691,437

EXPENDITURES
Current:

General government 7,002,824 - - - - 7,002,824
Community Planning and Building 1,845,642 - - - - 1,845,642 Public Safety 9,057,317 - - - - 9,057,317
Public Works 5,192,057 - - - - 5,192,057
Library 1,188,811 - - 409,336 - 1,598,147
Community Activities 163,054 - - - - 163,054
Economic Reviltalization 1,134,030 - - - - 1,134,030
Capital outlay 72,964 - 2,750,084 - - 2,823,048
Debt service
Principal 76,209 - - - 370,033 446,242
Interest and fiscal charges 7,515 - - - 150,009 157,524 Total Expenditures 25,740,423 - 2,750,084 409,336 520,042 29,419,885 Excess (Deficiency) of
Revenues over Expenditures 1,393,359 6,386,122 (2,661,524) 3,019 150,576 5,271,552

OTHER FINANCING SOURCES (USES)
Subscriptions 72,964 - - - - 72,964
Transfers in 158,000 - 10,081,107 - 528,044 10,767,151
Transfers out (3,715,820) (6,145,082) - - (1,844,231) (11,705,133) Total Other Financing Sources (Uses) (3,484,856) (6,145,082) 10,081,107 - (1,316,187) (865,018) Net Change in Fund Balances (2,091,497) 241,040 7,419,583 3,019 (1,165,611) 4,406,534 Fund Balances Beginning 22,398,401 1,911,499 3,676,972 1,450,632 2,174,252 31,611,756 Fund Balances Ending $ 20,306,904 $ 2,152,539 $11,096,555 $ 1,453,651 $ 1,008,641 $ 36,018,290 The accompanying notes are an integral part of these financial statements.

Major Funds
Attachment 2
City of Carmel-By-The-Sea
Reconciliation of the Governmental Funds Statement of Revenues, Expenditures and Changes in Fund Balances to the Government-Wide Statement of Activities
For the Year Ended June 30, 2024
Net Change in Fund Balances - Total Governmental Funds $ 4,406,534 Amounts reported for governmental activities in the Statement of Activities and Changes in net position were different because:

Governmental Funds report capital outlay as expenditures. However, in the Government-Wide Statement of Activities and Changes in net position, the cost of those assets was allocated over their estimated useful lives as depreciation expense.

Capital outlay 2,822,447
Depreciation expense (1,872,901)
Internal service funds are used by management to charge the costs of stores, vehicle maintenance, and various insurance costs to individual funds.

Net revenue (excess expenses) reported with governmental activities 1,182,400 Long-term compensated absences and claims payables were reported in the Government-Wide Statement of Activities, but they did not require the use of current financial resources and were not reported as expenditures in governmental funds.

Compensated absences 9,846
In governmental funds, actual contributions to benefit plans are reported as expenditures in the year incurred. However, in the government-wide statement of activities, only the current year benefit expense as noted in the plans' valuation reports is reported as an expense, as adjusted for deferred inflows and outflows of resources. (1,194,089)
Repayment of long-term debt was an expenditure in governmental funds, but the repayment reduced long-term liabilities in the Government-Wide Statement of net position. 446,242 Long-term debt issed is reported as other financing sources in the governmental funds but is required to be converted to long-term debt in the statement of net position. (72,964) Certain expenses reported in the statement of activities do not require the use of current financial resources and are not reported as expenditures in the fund statements as follows:

Other postemployment benefits 111,368
Amortization of prepaid pension obligation premiums 158,932 Interest expense on long-term debt was reported in the Government-Wide Statement of Activities and Changes in net position, but it did not require the use of current financial resources. Therefore, interest expense was not reported as expenditures in governmental funds. The following amount represented the net change in accrued interest from and accreted interest from prior year. 2,400
Change in Net Position of Governmental Activities $ 6,000,215 The accompanying notes are an integral part of these financial statements.

Attachment 2
City of Carmel-By-The-Sea
Statement of Net Position
Proprietary Funds
June 30, 2024
Governmental
Activities -
Internal
Service Funds
ASSETS
Current assets:

Cash and investments $ 3,688,368
Accounts receivable 12,000
Other assets 918,078
Total current assets 4,618,446
Noncurrent Assets:

Capital assets - net 1,773,566
Total assets $ 6,392,012

LIABILITIES
Current liabilities:

Financed purchases - current $ 24,861
Claims payable - current 57,500
Total current liabilities 82,361
Non-current liabilities:

Financed purchases 107,473
Claims payable 517,500
Total non-current liabilities 624,973
Total liabilities $ 707,334

NET POSITION
Net Investment in capital assets $ 1,641,232
Unrestricted 4,043,446
Total net position $ 5,684,678
The accompanying notes are an integral part of these financial statements.

Attachment 2
City of Carmel-By-The-Sea
Statement of Revenues, Expenses and Changes in Fund Net Position Proprietary Funds
For the Year Ended June 30, 2024
Governmental
Activities -
Internal
Service Funds

OPERATING REVENUES
Charges for services $ 61,116
Other 242,678
Total operating revenues 303,794

OPERATING EXPENSES
Claims 42,062
Depreciation 286,400
Total operating expenses 328,462
Operating income (loss) (24,668)

NONOPERATING REVENUES(EXPENSES)
Gain (loss) on disposal of capital assets 26,865
Grants and contributions 175,000
Interest expense (4,897)
Investment earnings 72,118
Total nonoperating revenues(expenses) 269,086
Income (loss) before transfers 244,418
Transfers in 937,982
Transfers out -
Transfers in and out, net 937,982
Change in net position 1,182,400
Total net position - beginning 4,502,278
Total net position - ending $ 5,684,678
The accompanying notes are an integral part of these financial statements.

Attachment 2
City of Carmel-By-The-Sea
Statement of Cash Flows
Proprietary Funds
For the Year Ended June 30, 2024
Governmental
Activities -
Internal
Service Funds
Cash flows from operating activities:

Receipts from interfund services provided $ 300,982
Payments for claims (46,889)
Net cash provided (used) by operating activities 254,093 Cash flows from noncapital financing activities:

Interfund transactions 937,982
Net cash provided (used) by noncapital financing activities 937,982 Cash flows from capital financing activities:

Principal payments on debt (24,106)
Interest payments on debt (4,897)
Grants and contributions 175,000
Purchases of property and equipment (780,321)
Net cash provided (used) by capital financing activities (634,324) Cash flows from investing activities:

Investment income received 72,118
Net cash provided (used) by investing activities 72,118 Net increase (decrease) in cash and cash equivalents 629,869 Cash and cash equivalents - beginning 3,058,499
Cash and cash equivalents - ending $ 3,688,368
Reconciliation of operating income to net cash provided (used) by operating activities:

Operating income (loss) $ (24,668)
Adjustments to reconcile operating income (loss)
to net cash provided (used) by operating activities:

Depreciation 286,400
Change in operating assets and liabilities:

Accounts receivables (2,812)
Other assets (3,386)
Accounts payable (1,441)
Net cash provided (used) by operating activities $ 254,093 The accompanying notes are an integral part of these financial statements.

Attachment 2
City of Carmel-by-the-Sea
Notes to the Basic Financial Statements
June 30, 2024
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The basic financial statements of the City of Carmel-by-the-Sea, California, (the City) have been prepared in conformity with generally accepted accounting principles (GAAP) as applied to governmental agencies. The Governmental Accounting Standards Boards (GASB) is the accepted standard setting body for establishing governmental accounting and financial reporting principles. The more significant of the City's accounting policies are described below.

A. Financial Reporting Entity
The City of Carmel-by-the-Sea, California was incorporated on October 31, 1916, under the laws and regulations of the State of California (State). The City operates under a City Council/Manager form of government and provides the following services: general government, community planning and building, public safety (fire, police and ambulance), public works, library, economic revitalization and other community activities.

The City operates as a self-governing local government unit within the State. It has limited authority to levy taxes and has the authority to determine user fees for the services that it provides. The City’s main funding sources include sales taxes, other intergovernmental revenue from state and federal sources, user fees, and federal and state financial assistance. All property taxes are paid to Monterey County (County) as part of the revenue neutrality payment obligation. The financial statements do not reflect the amounts received on behalf of the City and retained by the County.

The financial reporting entity consists of (a) the primary government, the City, (b) organizations for which the primary government is financially accountable, and (c) other organizations for which the primary government is not accountable, but for which the nature and significance of their relationship with the primary government are such that exclusion would cause the reporting entity’s financial statements to be misleading or incomplete. Financial accountability is defined as the appointment of a voting majority of the component unit’s board, and either (a) the City has the ability to impose its will on the organization, or (b) there is a potential for the organization to provide a financial benefit to or impose a financial burden on the City.

As required by US GAAP, these financial statements present the government and its component units, entities for which the government is considered to be financially accountable. These component units are reported on a blended basis. Blended component units, although legally separate entities, are, in substance, part of the government’s operations and so data from these units are combined with data of the primary government. The financial statements of the individual component units, if applicable as indicated below, may be obtained by writing to the City of Carmel-by-the-Sea, Finance Department, Post Office Box CC, Carmel-by-the-Sea, CA 93921.

The City’s reporting entity includes the following blended component units:
 Carmel Public Improvement Authority
 Harrison Memorial Library
The above component units are included in the City’s basic financial statements using the blended method since the component unit’s governing body is substantively the same as the governing body of the City and there is a financial benefit and a burden relationship between the City and the component units. There are no component units of the City that meet the criteria for discrete presentation.

Attachment 2
City of Carmel-by-the-Sea
Notes to the Basic Financial Statements
June 30, 2024
The City applies all applicable GASB pronouncements for certain accounting and financial reporting guidance. In December of 2010, GASB issued Statement No. 62, Codification of Accounting and Financial Reporting Guidance Contained in Pre-November 30, 1989 FASB and AICPA Pronouncements.

GASB 62 incorporates pronouncements issued on or before November 30, 1989 into GASB authoritative literature. In June of 2015, GASB issued Statement No. 76, The Hierarchy of Generally Accepted Accounting Principles for State and Local Governments. GASB 76 supersedes Statement No. 55, The Hierarchy of Generally Accepted Accounting Principles for State and Local Governments. GASB 76 also amends GASB 62 and AICPA Pronouncements paragraphs 64, 74, and 82. The GAAP hierarchy sets forth what constitutes GAAP for all state and local governmental entities. It establishes the order of priority of pronouncements and other sources of accounting and financial reporting guidance that a governmental entity should apply. The sources of authoritative GAAP are categorized in descending order of authority as follows:
a. Officially established accounting principles—Governmental Accounting Standards Board (GASB) Statements (Category A)
b. GASB Technical Bulletins; GASB Implementation Guides; and literature of the AICPA cleared by the GASB (Category B).

If the accounting treatment for a transaction or other event is not specified by a pronouncement in Category A, a governmental entity should consider whether the accounting treatment is specified by a source in Category B.

B. Basis of Accounting and Measurement Focus
The accounts of the City are organized on the basis of funds, each of which is considered a separate accounting entity. The operations of each fund are accounted for with a separate set of self-balancing accounts that comprise its assets, liabilities, fund equity, revenues, and expenditures or expenses, as appropriate. Governmental resources are allocated to and accounted for in individual funds based upon the purposes for which they are to be spent and the means by which spending activities are controlled.

Government-Wide Financial Statements
The City's government-wide financial statements include a Statement of Net Position and a Statement of Activities and Changes in Net Position. These statements present summaries of governmental and business-type activities for the City. Fiduciary activities of the City are not included in these statements.

Governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported separately from business-type activities, which rely to a significant extent on fees and charges for support. The City did not report any business-type activities for the year.

These statements are presented on an "economic resources" measurement focus and the accrual basis of accounting. Accordingly, all of the City's assets, deferred outflows of resources, liabilities, deferred inflows of resources (including capital assets, as well as infrastructure assets, and long-term liabilities), are included in the accompanying Statement of Net Position. The Statement of Activities presents changes in net position. Under the accrual basis of accounting, revenues are recognized in the period in which they are earned while expenses are recognized in the period in which the liability is incurred. The Statement of Activities demonstrates the degree to which the direct expenses of a given function or segment is offset by program revenues. Direct expenses are those clearly identifiable with a specific function or segment. In conformity with the City’s indirect cost allocation plan, certain indirect costs are included in the program expense reported for individual functions and activities. Certain types of Attachment 2
City of Carmel-by-the-Sea
Notes to the Basic Financial Statements
June 30, 2024
transactions are reported as program revenues for the City in three categories:
 Charges for services
 Operating grants and contributions
 Capital grants and contributions
Separate financial statements are provided for governmental funds, proprietary funds, and fiduciary funds, even though the fiduciary funds are excluded from the government-wide financial statements. Major individual governmental funds and major individual enterprise funds are reported as separate columns in the fund financial statements.

Certain eliminations have been made as prescribed by GASB Statement No. 34 in-regards-to interfund activities, payables, and receivables. All internal balances in the Statement of Net Position have been eliminated. Interfund services provided and used are not eliminated in the process of consolidation. The following interfund activities have been eliminated:
 Transfers in/Transfers out
 Internal Service Fund charges
Governmental Fund Financial Statements
Governmental fund financial statements include a Balance Sheet and a Statement of Revenues, Expenditures and Changes in Fund Balances for all major governmental funds and non-major funds aggregated. An accompanying schedule is presented to reconcile and explain the differences in net position as presented in these statements to the net position presented in the government-wide financial statements. The City has presented all major funds that met the applicable criteria.

All governmental funds are accounted for on a spending or "current financial resources" measurement focus and the modified accrual basis of accounting. Accordingly, only current assets, deferred outflows of resources, current liabilities, and deferred inflows of resources are included on the balance sheets. The Statement of Revenues, Expenditures and Changes in Fund Balances present increases (revenues and other financing sources) and decreases (expenditures and other financing uses) in net current assets.

Under the modified accrual basis of accounting, revenues are recognized in the accounting period in which they become both measurable and available to finance expenditures of the current period.

Accordingly, revenues are recorded when received in cash, except that revenues subject to accrual (generally up to 60 days after year-end) are recognized when due. The primary revenue sources, which have been treated as susceptible to accrual by the City, are property tax, sales taxes, intergovernmental revenues, other taxes, interest revenue, rental revenue and certain charges for services. Fines, forfeitures, licenses and permits and parking meter revenues are not susceptible to accrual because they are usually not measurable until received in cash. Expenditures are recorded in the accounting period in which the related fund liability is incurred.

Unearned revenues arise when potential revenues do not meet both the "measurable" and "available" criteria for recognition in the current period. Unearned revenues also arise when the government receives resources before it has a legal claim to them, as when grant monies are received prior to incurring qualifying expenditures. In subsequent periods when both revenue recognition criteria are met or when the government has a legal claim to the resources, the unearned revenue is removed from the combined balance sheet and revenue is recognized.

Attachment 2
City of Carmel-by-the-Sea
Notes to the Basic Financial Statements
June 30, 2024
The following funds are major funds:

General Fund
The General Fund is used to account for all of the general operations and other financial transactions of the City, which are not accounted for by another fund.

The Measure C Sales Tax Fund
The Measure C Sales Tax Fund used to account for the transaction and use tax increase to be used to maintain essential services, including fire, ambulance and police response times; fund capital needs, including streets, beach, parks, forest and trails; increase code compliance; maintain libraries, Sunset Center and other public facilities; address CalPERS pension liabilities and other debt; and provide other general City services.

Capital Projects Fund
This fund accounts for resources utilized, committed, assigned or restricted for capital projects.

Harrison Memorial Library Fund
This fund accounts for the contributions, revenues and resources used to operate the operate the Harrison Memorial Library.

Additionally, the City reports the following nonmajor fund types of governmental funds:

Special Revenue Funds
Special revenue funds account for and report the proceeds of specific revenue sources that are restricted, committed or assigned to specific purposes other than debt service or capital projects.

Debt Service Funds
Debt service funds account for the accumulation of resources for, and payment on, long-term obligation debt principal and interest.

Proprietary Funds
In the fund financial statements, proprietary funds are presented using the accrual basis of accounting.

Revenues are recognized when they are earned and expenses are recognized when the related goods or services are delivered. In the fund financial statements, proprietary funds are presented using the “economic resources measurement focus”. This means all assets, deferred outflows of resources, liabilities (whether current or noncurrent) and deferred inflows of resources associated with their activities are included on their balance sheets. Proprietary fund type operating statements present increases (revenues) and decreases (expenses) in total net position.

Proprietary fund operating revenues, such as charges for services, result from exchange transactions associated with principal activity of the fund. Exchange transactions are those in which each party receives and gives up essentially equal value. Non-operating revenues, such as subsidies, taxes, and investment earnings result from nonexchange transactions or ancillary activities. Amounts paid to acquire capital assets are capitalized as assets in the internal service funds financial statements.

The City’s internal service funds are proprietary funds. Internal service funds account for charges to City departments for services provided, on a cost reimbursement basis. The City has the following internal service funds:

Attachment 2
City of Carmel-by-the-Sea
Notes to the Basic Financial Statements
June 30, 2024
Worker's Compensation Fund
This fund accounts for workers compensation insurance provided to departments on a cost reimbursement basis.

OPEB Reserve Fund
This fund accounts for other postemployment benefits provided to departments on a cost reimbursement basis.

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

C. Cash, Cash Equivalents and Investments
The City pools its available cash for investment purposes. The City's cash and cash equivalents are considered to be cash on hand, demand deposits, and short-term investments with original maturity of three months or less from the date of acquisition. Cash and cash equivalents are combined with investments and displayed as Cash and Investments.

Deposit and Investment Risk Disclosures - In accordance with GASB Statement No. 40, Deposit and Investment Disclosures (Amendment of GASB Statement No. 3), certain disclosure requirements, if applicable, for Deposits and Investment Risks in the following areas: Interest Rate Risk, Overall Credit Risk, Custodial Credit Risk, Concentrations of Credit Risk, and Foreign Currency Risk. Other disclosures are specified including use of certain methods to present deposits and investments, highly sensitive investments, credit quality at year-end and other disclosures.

The City participates in an investment pool managed by the State of California titled Local Agency Investment Fund (LAIF), which has invested a portion of the pool funds in Structured Notes and Asset Backed Securities. LAIF's investments are subject to credit risk with the full faith and credit of the State of California collateralizing these investments. In addition, these Structured Notes and Asset-Backed Securities are subject to market risk as to change in interest rates.

Investments are recorded at fair value in accordance with GASB Statement No. 72, Fair Value Measurement and Application. Accordingly, the change in fair value of investments is recognized as an increase or decrease to investment assets and investment income. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction.

In determining this amount, three valuation techniques are available:
 Market approach - This approach uses prices generated for identical or similar assets or liabilities.

The most common example is an investment in a public security traded in an active exchange such as the NYSE.
 Cost approach - This technique determines the amount required to replace the current asset. This approach may be ideal for valuing donations of capital assets or historical treasures.  Income approach - This approach converts future amounts (such as cash flows) into a current discounted amount.

Each of these valuation techniques requires inputs to calculate a fair value. Observable inputs have been maximized in fair value measures, and unobservable inputs have been minimized.

Attachment 2
City of Carmel-by-the-Sea
Notes to the Basic Financial Statements
June 30, 2024
D. Interfund Receivables and Payables
Items classified as interfund receivables/payables are referred to as “advances to/advances from other funds” or as “due to/from other funds”. Due to/from other funds include short-term lending/borrowing transactions between funds. This classification also includes the current portion of an advance to or from another fund. Advances to/advances from other funds represents non-current portions of any long-term lending/borrowing transactions between funds. This amount will be equally offset by a reserve of fund balance which indicates that it does not represent available financial resources and therefore, is not available for appropriation.

E. Receivables
In the fund financial statements, material receivables in governmental funds include revenue accruals such as property tax, sales tax, and intergovernmental subventions since they are usually both measurable and available. Non-exchange transactions collectible but not available, such as property tax, are deferred in the fund financial statements in accordance with the modified accrual basis, but not deferred in the government-wide financial statements in accordance with the accrual basis.

Interest and investment earnings are recorded when earned only if paid within 60 days since they would be considered both measurable and available. The City’s experience is that all accounts receivable are collectible; therefore an allowance for doubtful accounts is unnecessary.

The County of Monterey is responsible for the collection and allocation of property taxes. Under California law, property taxes are assessed and collected by the County up to 1% of the full cash value of taxable property, plus other increases approved by the voters and distributed in accordance with statutory formulas. The City recognizes property taxes when the individual installments are due, provided they are collected within 60 days after year-end.

F. Capital Assets
The City's assets are capitalized at historical cost or estimated historical cost, if actual is unavailable, except for donated capital assets, donated works of art and similar items, and capital assets received in a service concession arrangement that are reported at acquisition value rather than fair value. Policy has set the capitalization threshold for reporting at $5,000 for non-infrastructure capital assets and $25,000 for infrastructure capital assets.

Public domain (infrastructure) capital assets include roads, bridges, curbs and gutters, streets, sidewalks, drainage systems, and lighting systems.

The accounting treatment of property, plant and equipment (capital assets) depends on whether the assets are used in governmental fund operations or proprietary fund operations and whether they are reported in the government-wide or fund financial statements.

Prior to July 1, 2003, governmental funds’ infrastructure assets were not capitalized, since then these assets have been valued at estimated historical cost.

Depreciation of all exhaustible capital assets is recorded as an allocated expense in the Statement of Activities, with accumulated depreciation reflected in the Statement of Net Position. Depreciation is provided over the assets’ estimated useful lives using the straight-line method of depreciation. No Attachment 2
City of Carmel-by-the-Sea
Notes to the Basic Financial Statements
June 30, 2024
depreciation is recorded in the year of acquisition or in the year of disposition. In the fund financial statements, capital assets used in governmental fund operations are accounted for as capital outlay expenditures of the governmental fund upon acquisition. Capital assets used in proprietary fund operations are accounted for the same way as in the government-wide statements.

Intangible right-to-use assets are amortized over the shorter of the lease term or the useful life of the underlying asset, unless the lease contains a purchase option that the City has determined is reasonably certain of being exercised, then the lease asset is amortized over the useful life of the underlying asset. Intangible right-to-use subscription assets are amortized over the shorter of the subscription term or the useful life of the underlying asset.

Depreciation and amortization is recorded on a straight-line basis over the useful lives of the assets as follows:

Buildings and improvements 20-50 Years
Improvements other than buildings 35 Years
Vehicles, machinery and equipment 5-20 Years
Infrastructure 20-50 Years
Technology/Hardware and Software 5-20 Years
G. Deferred Outflows/Deferred Inflows of Resources
Deferred outflows of resources are a consumption of net assets by the City that is applicable to a future reporting period; for example, prepaid items and deferred charges.

Deferred inflows of resources are an acquisition of net assets by the City that is applicable to a future reporting period; for example, unavailable revenue and advance collections.

H. Interest Payable
In the government-wide financial statements, interest payable of long-term debt is recognized as an incurred liability for governmental fund types. The City has not allocated the interest on long-term debt to departments.

In the fund financial statements, governmental fund types do not recognize the interest payable when the liability is incurred. Interest on long-term debt is recorded in the fund statements when payment is made.

I. Claims Payable
The City records a liability for claims, judgments, and litigation when it is probable that an asset has been impaired or a liability has been incurred prior to fiscal year-end and the probable amount of loss (net of any insurance coverage) can be reasonably estimated.

J. Compensated Absences
Employees accrue vacation, sick, holiday, and compensatory time off benefits. City employees have vested interests in the amount of accrued time off, with the exception of sick time, and are paid on termination. Also, annually an employee may elect to be compensated for up to 40 hours of unused annual leave. However, this is contingent upon the employee using at least 40 hours during the previous Attachment 2
City of Carmel-by-the-Sea
Notes to the Basic Financial Statements
June 30, 2024
year and, the employee having a minimum balance of 80 annual leave hours after the payment. All vacation pay is accrued when incurred in the government-wide and proprietary financial statements. A liability for these amounts is reported in the governmental funds only if they have matured, for example, as a result of employee resignations or retirements and is currently payable. The City had no employee resignations or retirements for which compensated absences should be accrued in governmental funds at year-end. The general fund is typically used to liquidate compensated absences.

K. Long-Term Liabilities
In the government-wide financial statements and proprietary fund statements, long-term debt and other long-term obligations are reported as liabilities in the applicable governmental or business-type activities.

Bond premiums and discounts are deferred and amortized over the life of the bonds using the straight-line method. Bonds payable are reported net of the applicable bond premium or discount. Debt issuance costs are expensed in year incurred.

In the fund financial statements, governmental fund types recognize bond premiums and discounts, as well as bond issuance costs, during the current period. The face amount of debt issued is reported as other financial sources. Premiums received on debt issuance are reported as other financing sources while discounts on debt issuance reported as other financing uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures.

L. Subscription Based Information Technology Arrangements (SBITAs) The City recognizes subscription liabilities with an initial, individual value of $10,000 or more annually and $50,000 or more over the subscription contract. The City uses its estimated incremental borrowing rate to measure subscription liabilities unless it can readily determine the interest rate in the arrangement.

The City’s estimated incremental borrowing rate is based on its most recent public debt issuance.

M. Benefit Plans
Pension Expense
For purposes of measuring the net pension liability and deferred outflows/inflows of resources related to pensions, and pension expense, information about the fiduciary net position of the City’s California Public Employees’ Retirement System (CalPERS) plans (the Plans) and additions to/deductions from the Plans’ fiduciary net position have been determined on the same basis as they are reported by CalPERS.

For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value.

Other Postemployment Benefit (OPEB) Expense
For purposes of measuring the total OPEB liability, deferred outflows of resources and deferred inflows of resources related to OPEB, and OPEB expense information about the fiduciary net position of the City’s Retiree Benefits Plan (the OPEB Plan) and additions to/deductions from the OPEB Plan's fiduciary net position have been determined on the same basis as they are reported by the OPEB Plan. For this purpose, the OPEB Plan recognizes benefit payments when due and payable in accordance with the benefit terms.

N. Fund Balances
In accordance with Government Accounting Standards Board 54, Fund Balance Reporting and Governmental Fund Type Definitions, the City classifies governmental fund balances as follows:

Attachment 2
City of Carmel-by-the-Sea
Notes to the Basic Financial Statements
June 30, 2024
Nonspendable
Nonspensable fund balance includes fund balance amounts that cannot be spent either because it is not in spendable form or because of legal or contractual constraints.

Restricted
Restricted fund balance includes fund balance amounts that are constrained for specific purposes which are externally imposed by providers, such as creditors or amounts constrained due to constitutional provisions or enabling legislation.

Committed
Committed fund balance includes fund balance amounts that are constrained for specific purposes that are internally imposed by the government through formal action of the highest level of decision-making authority and does not lapse at year-end. Committed fund balances are imposed by the City Council, the City’s highest level of decision-making authority, for specific purposes pursuant to constraints imposed by formal action taken such as resolution. These committed amounts cannot be used for any other purpose unless the City Council removes or changes the specified use through the same type of formal action taken to establish the commitment. City Council action to commit fund balance needs to occur within the fiscal reporting periods; however the amount can be determined subsequently.

Assigned
Assigned fund balance includes fund balance amounts that are intended to be used for specific purposes that are neither considered restricted or committed. Fund balances may be assigned by the City Council and the City Manager.

Unassigned
The Unassigned Fund Balance category represents fund balance which may be held for specific types of uses or stabilization purposes, but is not yet directed to be used for a specific purpose. The general fund is the only fund that reports a positive unassigned fund balance amount. In other governmental funds it is not appropriate to report a positive unassigned fund balance amount. However, in governmental funds other than the general fund, if expenditures incurred for specific purposes exceed the amounts that are restricted, committed, or assigned to those purposes, it may be necessary to report a negative unassigned fund balance in that fund.

The detail of amounts reported for each of the above defined fund balance categories is reported in the governmental funds balance sheet and in the combining nonmajor fund balance sheets.

Flow Assumption / Spending Order Policy
When expenditures are incurred for purposes for which both restricted and unrestricted fund balance is available, the City considers restricted funds to be spent first. When expenditures are incurred for which committed, assigned, or unassigned fund balances are available, the City considers amounts to be spent first out of committed funds, then assigned funds, and finally unassigned funds, as needed, unless the City Council has directed otherwise.

O. Net Position
In the government-wide financial statements, net position is classified in the following categories:

Net Investment in Capital Assets
This amount consists of capital assets net of accumulated depreciation and reduced by outstanding debt that are attributed to the acquisition, construction, or improvement of the assets. In addition, deferred Attachment 2
City of Carmel-by-the-Sea
Notes to the Basic Financial Statements
June 30, 2024
outflows of resources and deferred inflows of resources that are attributable to the acquisition, construction, or improvement of those assets or related debt also are included in the net investment in capital assets component of net position
Restricted Net Position
This amount is restricted by external creditors, grantors, contributors, or laws or regulations of other governments.

Unrestricted Net Position
This amount is all net position that does not meet the definition of "net investment in capital assets" or "restricted net position."
The detail of amounts reported for each of the above defined net position categories is reported in the government-wide Statement of Net Position.

Use of Restricted/Unrestricted Net Position
When an expense is incurred for purposes for which both restricted and unrestricted net position are available, the City's policy is to apply restricted net position first.

Interfund Transactions
Interfund services provided and used are accounted for as revenue, expenditures or expenses, as appropriate. Transactions that constitute reimbursements to a fund for expenditures/expenses initially made from it that are properly applicable to another fund are recorded as expenditures/expenses in the reimbursed fund. All other interfund transactions, except for interfund services provided and used and reimbursements, are reported as transfers. Nonrecurring or nonroutine permanent transfers of equity are reported as residual equity transfers. All other interfund transfers are reported as transfers.

P. Property Taxes
County tax assessments include secured and unsecured property taxes and special assessments. "Unsecured" refers to taxes on personal property. These tax assessments are secured by liens on the property being taxed.

Secured property taxes are levied on or before the first day of July of each year. They become a lien on real property on January 1 proceeding the fiscal year for which taxes are levied. These taxes are paid in two equal installments; the first is due November 1 and is delinquent with penalties after December 10; the second is due February 1 and delinquent with penalties after April 10. Secured property taxes, which are delinquent and unpaid as of June 30, are declared to be tax defaulted and are subject to redemption penalties, cost, and interest when paid. If the delinquent taxes are not paid at the end of five years, the property is sold at public auction and the proceeds are used to pay the delinquent amounts due. Any excess is remitted, if claimed, to the taxpayer. Additional tax liens are created when there is a change in ownership of property or upon completion of new construction. Tax bills for these new tax liens are issued throughout the fiscal year and contain various payments and delinquent dates, but are generally due within one year. If the new tax liens are lower, the taxpayer receives a tax refund rather than a tax bill. Unsecured personal property taxes are not a lien against real property. These taxes are due on January 1 each year and are delinquent, if unpaid, on August 31.

Attachment 2
City of Carmel-by-the-Sea
Notes to the Basic Financial Statements
June 30, 2024
The County apportions secured property tax revenue in accordance with the alternate methods of distribution, the “Teeter Plan”, as described by Section 4717 of the California Revenue and Taxation code. Therefore, the City receives 100 percent of the secured property tax levies to which it is entitled, whether or not collected. Unsecured delinquent taxes are considered fully collectible.

Q. Budgetary Information
In accordance with applicable sections of the California Government Code and the Carmel-by-the-Sea Municipal Code, the City prepares and legally adopts an annual balanced budget on a basis consistent with accounting principles generally accepted in the United States of America. Annual appropriated budgets are adopted for the General Fund, Special Revenue Funds, Capital Projects Funds and the Debt Service Fund.

Budgetary control is legally maintained at the fund level for these funds. Department heads submit budget requests to the City Administrator. The City Administrator prepares an estimate of revenues and prepares recommendations for the next year’s budget. The preliminary budget may or may not be amended by the City Council and is adopted by resolution by the City Council on or before June 30 in accordance with the municipal code.

The City Council may amend the budget by motion during the fiscal year. Only the Council can authorize transfers between funds and approve inter-fund loans. The City Administrator is authorized to transfer budgeted amounts within a fund without formal council action or approval. The City Administrator is authorized to increase expenditures in relation to revenues in funds receiving assigned revenues without approval by the City Council.

Expenditures may not legally exceed appropriations at the fund level, which is the legal level of control.

Supplemental appropriations, which increase appropriations, may be made during the fiscal year.

Appropriations, except open project appropriations, and unexpended grant appropriations, lapse at the end of each fiscal year.

Under Article XIIIB of the California Constitution (the Gann Spending Limitation Initiative), the City is restricted as to the amount of annual appropriations from proceeds of taxes, and if proceeds of taxes exceed allowed appropriations, the excess must either be refunded to the State Controller or returned to the taxpayers through revised tax rates or revised fee schedules, or an excess in one year may be offset against a deficit in the following year. For the fiscal year ended June 30, 2024, based on calculations by City management, proceeds of taxes did not exceed appropriations.

R. Encumbrances
Under encumbrance accounting, purchase orders, contract and other commitments for expenditures are recorded in order to reserve that portion of the applicable appropriation. Encumbrance accounting is employed as an extension of formal budgetary integration in all funds. All appropriations, except open project appropriations, and unexpended grant appropriations and encumbrances, lapse at year end. Valid outstanding encumbrances (those for which performance under the executory contract is expected in the next year) are re-appropriated and become part of the subsequent year’s budget pursuant to state regulations.

Attachment 2
City of Carmel-by-the-Sea
Notes to the Basic Financial Statements
June 30, 2024
S. Unearned Revenue
Unearned revenue arises when assets are received before revenue recognition criteria have been satisfied.

Grants and entitlements received before eligibility requirements are met are recorded as deferred inflows from unearned revenue. In the governmental fund financial statements, receivables associated with nonexchange transactions that will not be collected within the availability period have been recorded as deferred inflows from unavailable revenue.

T. Use of Estimates
The preparation of basic financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates.

U. Implemented New Accounting Pronouncements
GASB Statement No. 100, Accounting Changes and Error Corrections—an amendment of GASB Statement No. 62
This Statement defines accounting changes as changes in accounting principles, changes in accounting estimates, and changes to or within the financial reporting entity and describes the transactions or other events that constitute those changes. This Statement also prescribes the accounting and financial reporting for (1) each type of accounting change and (2) error corrections in previously issued financial statements.

This Statement did not have a material impact on the financial statements.

V. Upcoming New Accounting Pronouncements
The City is currently analyzing its accounting practices to determine the potential impact on the financial statements of the following recent GASB Statements:

GASB Statement No. 101, Compensated Absences
This Statement requires that liabilities for compensated absences be recognized for (1) leave that has not been used and (2) leave that has been used but not yet paid in cash or settled through noncash means. A liability should be recognized for leave that has not been used if (a) the leave is attributable to services already rendered, (b) the leave accumulates, and (c) the leave is more likely than not to be used for time off or otherwise paid in cash or settled through noncash means. Leave is attributable to services already rendered when an employee has performed the services required to earn the leave. Leave that accumulates is carried forward from the reporting period in which it is earned to a future reporting period during which it may be used for time off or otherwise paid or settled. In estimating the leave that is more likely than not to be used or otherwise paid or settled, a government should consider relevant factors such as employment policies related to compensated absences and historical information about the use or payment of compensated absences. However, leave that is more likely than not to be settled through conversion to defined benefit postemployment benefits should not be included in a liability for compensated absences.

This Statement requires that a liability for certain types of compensated absences - including parental leave, military leave, and jury duty leave—not be recognized until the leave commences. This Statement also requires that a liability for specific types of compensated absences not be recognized until the leave Attachment 2
City of Carmel-by-the-Sea
Notes to the Basic Financial Statements
June 30, 2024
is used. A liability for leave that has been used but not yet paid or settled should be measured at the amount of the cash payment or noncash settlement to be made. Certain salary-related payments that are directly and incrementally associated with payments for leave also should be included in the measurement of the liabilities. The requirements of this Statement are effective for fiscal years beginning after December 15, 2023, and all reporting periods thereafter.

GASB Statement No. 102, Certain Risk Disclosures
This Statement requires a government to assess whether a concentration or constraint makes the primary government reporting unit or other reporting units that report a liability for revenue debt vulnerable to the risk of a substantial impact. Additionally, this Statement requires a government to assess whether an event or events associated with a concentration or constraint that could cause the substantial impact have occurred, have begun to occur, or are more likely than not to begin to occur within 12 months of the date the financial statements are issued.

If a government determines that those criteria for disclosure have been met for a concentration or constraint, it should disclose information in notes to financial statements in sufficient detail to enable users of financial statements to understand the nature of the circumstances disclosed and the government’s vulnerability to the risk of a substantial impact. The disclosure should include descriptions for (1) the concentration or constraint (2) each event associated with the concentration or constraint that could cause a substantial impact if the event had occurred or had begun to occur prior to the issuance of the financial statements (3) actions taken by the government prior to the issuance of the financial statements to mitigate the risk. The requirements of this Statement are effective for fiscal years beginning after June 15, 2024, and all reporting periods thereafter.

GASB Statement No. 103, Financial Reporting Model Improvements This Statement is to improve key components of the financial reporting model to enhance its effectiveness in providing information that is essential for decision making and assessing a government’s accountability.

This Statement establishes new accounting and financial reporting requirements or modifies existing requirements related to (a) Management’s discussion and analysis (MD&A) (b) Unusual or infrequent items (c) Presentation of the proprietary fund statement of revenues, expenses, and changes in fund net position (d) Information about major component units in basic financial statements (5) Budgetary comparison information (6) Financial trend information in the statistical section. The requirements of this Statement are effective for fiscal years beginning after June 15, 2025, and all reporting periods thereafter.

NOTE 2 - CASH AND INVESTMENTS
As of June 30, 2024, cash and investments were reported in the financial statements as follows:

Cash and investments $ 38,136,701
Total cash and investments $ 38,136,701
Attachment 2
City of Carmel-by-the-Sea
Notes to the Basic Financial Statements
June 30, 2024
The following summarized cash and investments by type:

Cash on hand $ 1,545
Demand Deposits 24,611,210
Investments 10,399,152
Restricted cash with fiscal agent 3,124,794
Total cash and investments $ 38,136,701
The City follows the practice of pooling cash and investments of all funds except for funds required to be held by fiscal agents under provisions of bond indentures. Interest income earned on pooled cash and investments is allocated monthly to the various funds based on monthly cash and investment balances. Interest income from cash and investments with fiscal agents is credited directly to the related fund.

A. Cash Deposits
The California Government Code requires California banks and savings and loan associations to secure the City's cash deposits by pledging securities as collateral. This Code states that collateral pledged in this manner shall have the effect of perfecting a security interest, and places the City ahead of general creditors of the institution. The market value of pledged securities must equal at least 110 percent of the City's cash deposits. California law also allows institutions to secure City deposits by pledging first trust deed mortgage notes that have a value of 150 percent of the City's total cash deposits. The City has waived the collateral requirements for cash deposits which are fully insured to $250,000 by the Federal Deposit Insurance Corporation (FDIC). The bank balances before reconciling items totaled $24,920,211 at June 30, 2024 and were different from carrying amounts due to deposits in transit and outstanding checks. The amount uninsured was $24,670,211 which was collateralized by securities held by pledging financial institutions.

B. Fair Value Measurements
GASB 72 established a hierarchy of inputs to the valuation techniques above. This hierarchy has three levels:
 Level 1 inputs are quoted prices in active markets for identical assets or liabilities.  Level 2 inputs are quoted market prices for similar assets or liabilities, quoted prices for identical or similar assets or liabilities in markets that are not active, or other than quoted prices that are not observable.
 Level 3 inputs are unobservable inputs, such as a property valuation or an appraisal.

C. Investment Policies
City Investment Policy
The table below identifies the investment types that are authorized for the City by the California Government Code (or the City’s investment policy, where more restrictive). The table also identifies certain provisions of the California Government Code (or the City’s investment policy, where more restrictive) that address interest rate risk, credit risk, and concentration of credit risk.

Attachment 2
City of Carmel-by-the-Sea
Notes to the Basic Financial Statements
June 30, 2024
This table does not address investments of debt proceeds held by bond trustees that are governed by the provisions of bond indentures of the City, rather than the general provisions of the California Government Code or the City’s investment policy.

Maximum
Maturity
Maximum
Percentage
of Portfolio
Maximum
Investment in
One Issuer
United States (U.S.) Treasury Issues 5 years None None
U.S. Government Agency Securities 5 years 50% 50%
California State and Local Bonds, Notes, & Warrants None None None Bankers Acceptance 180 days 40% 30%
Commercial Paper 270 days 15% 10%
Medium Term Corporate Notes 5 years 30% 30%
Negotiable Certificates of Deposit 5 years 30% 30%
Repurchase Agreements 92 days None None
Passbook Savings/Money Market None 20% 10%
Local Agency Investment Fund (LAIF) N/A None None
Federal Instrumentalities None None None
Authorized Investment Type
Authorized Investments - Debt Agreements
Investments held by bond fiscal agents (trustees) are governed by the provisions of the underlying indenture agreements rather than the general provisions of the City’s investment policy or California Government Code. The indenture agreements identify the following permitted investments:

Maximum
Maturity
Maximum
Percentage
of Portfolio
Maximum
Investment in
One Issuer
United States (U.S.) Treasury Issues None None None
U.S. Government Agency Securities None None None
Banker's Acceptance 360 days None None
Commercial Paper 270 days None None
Money Market Funds None None None
Investment Agreements None None None
Local Agency Bonds None None None
Medium Term Notes None None None
Negotiable Certificate of Deposits None None None
Local Agency Investment Fund (LAIF) N/A None None
Authorized Investment Type
Attachment 2
City of Carmel-by-the-Sea
Notes to the Basic Financial Statements
June 30, 2024
D. External Investment Pool
The City's investments with LAIF at June 30, 2024, include a portion of the pool funds invested in Structured Notes and Asset-Backed Securities. These investments include the following:

Structured Notes
These are debt securities (other than asset-backed securities) whose cash flow characteristics (coupon rate, redemption amount, or stated maturity) depend upon one or more indices and/or that have embedded forwards or options.

Asset-Backed Securities
The bulk of asset-backed securities are mortgage-backed securities, entitle their purchasers to receive a share of the cash flows from a pool of assets such as principal and interest repayments from a pool of mortgages (such as CMO's) or credit card receivables.

LAIF is overseen by the Local Agency Investment Advisory Board, which consists of five members, in accordance with State statute. The approved investments policy is listed on the LAIF website, located at http://www.treasurer.ca.gov/pmia-laif/.

D. Risk Disclosures
Interest Rate Risk
Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an investment. Generally, the longer the term of an investment’s maturity, the greater the sensitivity to changes in market interest rates. It is the City’s practice to manage its exposure to interest rate risk is by purchasing a combination of shorter and longer term investments and by timing cash flows from maturities so that a portion of the portfolio is maturing or coming close to maturity evenly over time as necessary to provide the cash flow and liquidity needed for City’s operations.

Credit Risk
Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of an investment. This is measured by the assignment of a rating by a nationally recognized statistical rating organization, Standards and Poor. As of June 30, 2024, the City’s investments were in compliance with the ratings required by the City’s investment policy, indenture agreements and Government Code.

Concentrations of Credit Risk
The investment policy of the City contains no limitations on the amount that can be invested in any one issuer beyond that stipulated by the California Government Code. As of June 30, 2024, the City had no investments in any one issuer (other than external investment pools which are exempt) that represented 5% or more of the total City investments.

Custodial Credit Risk
For an investment, custodial credit risk is the risk that, in the event of the failure of the counterparty, the City will not be able to recover the value of its investments or collateral securities that are in the Attachment 2
City of Carmel-by-the-Sea
Notes to the Basic Financial Statements
June 30, 2024
possession of an outside party. The California Government Code and the City's investment policy do not contain legal or policy requirements that would limit the exposure to custodial credit risk for investments.

With respect to investments, custodial credit risk generally applies only to direct investments in marketable securities. Custodial credit risk does not apply to a local government's indirect investment in securities through the use of mutual funds or government investment pools (such as LAIF).

As of June 30, 2024, the City’s investments had the following maturities and ratings:
12 Months or
Less
13 to 24
Months
25 to 36
Months
37 to 48
Months Total Rating
Input
Levels
LAIF (state pool) $ 5,523,569 $ - $ - $ - $ 5,523,569 not rated n/a Money market funds 1,256,293 - - - 1,256,293 AAA 1
Bonds 1,187,644 - - - 1,187,644 AAA 1
Certificate of deposits 732,151 973,249 485,148 241,098 2,431,646 not rated 1 Total Investments $ 8,699,657 $ 973,249 $ 485,148 241,098$ $ 10,399,152 Investment Type
NOTE 3 - ACCOUNTS RECEIVABLE
The following summarizes accounts receivable as of June 30, 2024:

Ambulance $ 339,384
Holstery Tax 1,594,813
Measure C 1,136,849
Grabage Franchise Tax 132,666
Sales and Use Tax 307,635
Other Accruals 571,436
Total Accounts Receivable $ 4,082,783
NOTE 4 - INTERFUND TRANSACTIONS
A. Inter-fund Receivables and Payables
Amounts due to or due from other funds reflect inter-fund balances for services rendered or short-term loans expected to be repaid in the next fiscal year. Advances to or from other funds are long-term loans between funds that are to be repaid in their entirety over several years. As of June 30, 2024, the City reported the following interfund balances:

Due from Due to
Fund Other Funds Other Funds
Capital Projects Fund $ 64,575 $ -
Nonmajor Funds - 64,575
Total Due From/To Other Funds $ 64,575 $ 64,575
Transfers In/Out
With Council approval, resources may be transferred from one fund to another. Transfers may be made to pay for capital projects or capital outlays, lease or debt service payments, operating expenses, and to Attachment 2
City of Carmel-by-the-Sea
Notes to the Basic Financial Statements
June 30, 2024
finance various programs accounted for in other funds in accordance with budgetary authorizations. The following summarizes transfers between funds during the fiscal year ended June 30, 2024:

Fund Transfer in Transfer out
General Fund $ 158,000 $ 3,715,820
Measure C Sales Tax Fund - 6,145,082
Capital Projects Fund 10,081,107 -
Internal Service Funds 937,982 -
Nonmajor Funds 528,044 1,844,231
Total Transfers $ 11,705,133 $ 11,705,133
Funds were transferred from the General Fund and the Measure C Sales Tax Fund to the Capital Projects Fund for capital improvements. Internal service funds transfers were cost reimbursements not considered to be charges for services. Transfers to and from nonmajor funds were for debt service and operations.

NOTE 5 - CAPITAL ASSETS
Capital assets for governmental activities consisted of the following as of June 30, 2024:

Balance Transfers/ Balance
Governmental Activities July 01, 2023 Additions Deletions June 30, 2024 Non-depreciable:

Land $ 5,101,641 $ - $ - $ 5,101,641
Construction in Progress 1,009,751 2,850,419 (2,075,860) 1,784,310 Total Non-Depreciable 6,111,392 2,850,419 (2,075,860) 6,885,951 Depreciable/Amortizable:

Buildings and improvements 27,027,146 146,454 - 27,173,600 Infrastructure 27,289,763 1,828,470 - 29,118,233
Vehicles 3,039,940 757,186 (642,101) 3,155,025
Technology/Hardware and Software 763,834 50,000 - 813,834 Subscription based assets 277,414 72,964 - 350,378
Machinery and equipment 3,125,266 - - 3,125,266
Total Depreciable/Amortizable 61,523,363 2,855,074 (642,101) 63,736,336 Less Accumulated Dep/Amort for:

Buildings and improvements (12,656,167) (671,887) - (13,328,054) Infrastructure (10,635,882) (1,194,073) - (11,829,955)
Vehicles (2,834,289) (112,166) 642,101 (2,304,354)
Technology/Hardware and Software (639,132) (41,519) - (680,651) Subscription based assets (26,834) (60,158) - (86,992)
Machinery and equipment (2,776,833) (79,498) - (2,856,331) Total Accumulated Dep/Amort (29,569,137) (2,159,301) 642,101 (31,086,337) Total Depreciable Capital Assets - Net 31,954,226 695,773 - 32,649,999 Total Governmental Capital Assets $ 38,065,618 $ 3,546,192 $ (2,075,860) $ 39,535,950 Attachment 2
City of Carmel-by-the-Sea
Notes to the Basic Financial Statements
June 30, 2024
Capital assets for governmental activities related to internal service funds consisted of the following as of June 30, 2024:

Balance Transfers/ Balance
July 01, 2023 Additions Deletions June 30, 2024
Internal Service Funds (Inlcuded with Governmental Activities) Buildings and improvements $ 754,866 $ - - $ 754,866
Technology/Hardware and Software 660,844 50,000 - 710,844 Vehicle, Machinery and Equipment 1,367,322 757,186 - 2,124,508 Accumulated Depreciation (1,530,252) (286,400) - (1,816,652) Total Internal Service Funds - Net $ 1,252,780 $ 520,786 $ - $ 1,773,566 Depreciation expense was allocated to the following governmental activities:

General Government $ 103,194
Community Planning and Building 47,537
Public Safety 159,632
Public Works 1,286,328
Library 551,229
Community Activities 11,381
Total depreciation expense $ 2,159,301
NOTE 6 - NONCURRENT LIABILITIES
The City's noncurrent liabilities consisted of the following as of June 30, 2024:

Due
Beginning Ending Within One
Noncurrent Liabilities Balance Additions Deletions Balance Year Sunset Center LRB $ 3,895,000 $ - $ 355,000 $ 3,540,000 $ 375,000 Sunset Center LRB Premium 809,107 - 158,932 650,175 72,242 Countywide Radio Project (Direct) 15,033 - 15,033 - -
Financed Purchases 156,440 - 24,106 132,334 24,861
Subscription Liabilities 259,154 72,964 76,209 255,909 56,112 Compensated Absences 898,688 968,948 978,794 888,842 204,000 Net Pension Liability 28,163,296 9,641,769 8,601,101 29,203,964 - Claims Liability 575,000 46,889 46,889 575,000 57,500
Total OPEB Liability 3,023,962 1,882,600 1,833,043 3,073,519 - Total Noncurrent Liabilities $ 37,795,680 $ 12,613,170 $ 12,089,107 $ 38,319,743 $ 789,715 2020 Refunding Lease Revenue Bonds - Sunset Center
On September 23, 2020, the City issued $3,895,000 in 2020 Refunding Lease Revenue Bonds at a $866,901 premium with interest at 4%. The issuance costs were $183,992. The bonds were issued to refund the Sunset Center COPs and the aggregate difference in debt service between the refunding debt and the refunded debt was $1,042,418. The net savings on the defeasance totaled $128,099.

Attachment 2
City of Carmel-by-the-Sea
Notes to the Basic Financial Statements
June 30, 2024
The annual debt service requirements were as follows:

Fiscal Year Ending June 30: Principal Interest Total
2025 375,000 141,600 $ 516,600
2026 380,000 126,600 506,600
2027 405,000 111,400 516,400
2028 425,000 95,200 520,200
2029 440,000 78,200 518,200
2030-2034 1,515,000 130,600 1,645,600
Total $ 3,540,000 $ 683,600 $ 4,223,600
Countywide Radio Project
In 2009, the City entered into a participation agreement with Monterey County to provide funding related to the "Next Generation Radio Project," a Federal Communications Commission mandated alteration of public safety and local government radio systems. Estimated payments will change should individual local jurisdictions elect out of the project. The final payment was made during the fiscal year.

Financed Purchases
The City entered into a finance purchase agreement to buy Motorola radios for $203,021, including interest, at 3.13%, and principal. The payments commenced on July 1, 2022 and end on July 1, 2028. The annual debt service requirements were as follows:

Fiscal Year Ending June 30: Principal Interest Total
2025 $ 24,861 $ 4,142 $ 29,003
2026 25,639 3,364 29,003
2027 26,442 2,561 29,003
2028 27,269 1,734 29,003
2029 28,123 880 29,003
Total $ 132,334 $ 12,681 $ 145,015
Subscription Based Information Technology Agreements
During the year, the City implemented GASB 96, Subscription Based Information Technology Arrangements (SBITAs). The following summarizes the City’s terms and conditions for its SBITAs as of June 30, 2024:

Terms Spring Brook AXON BWP GovInvest
Start 7/1/2022 1/1/2023 9/30/2023
End 7/1/2027 6/30/2032 9/26/2026
Annual Rate 2.52% 3.54% 2.52%
Principal Paid $ 35,189 $ 34,280 $ 25,000
Interest Paid $ 2,243 $ 5,271 $ -
Lease Amortization $ 17,880 $ 17,887 $ 24,391
Attachment 2
City of Carmel-by-the-Sea
Notes to the Basic Financial Statements
June 30, 2024
The following summarizes the City’s right of use assets and subscription liabilities:

Subscription Right of Use Assets Spring Brook AXON BWP GovInvest Total Beginning $ 107,281 $ 170,133 $ - $ 277,414
Additions - - 73,172 73,172
Deletions - (208) - (208)
Ending 107,281 169,925 73,172 350,378
Accumulated Amortization (35,760) (26,841) (24,391) (86,992) Subscription ROA, Net $ 71,521 $ 143,084 $ 48,781 $ 263,386 Subscription Liabilities Spring Brook AXON BWP GovInvest Total Beginning $ 89,021 $ 170,133 $ - $ 259,154
Additions - (208) 73,172 72,964
Principal Paid (16,929) (34,280) (25,000) (76,209)
Ending 72,092 135,645 48,172 255,909
Due Within One Year 17,356 14,970 23,786 56,112
Due in More Than One Year $ 54,736 $ 120,675 $ 24,386 $ 199,797 The annual subscription payments as follows:

Ending June 30, Principal Interest Total
2024 56,112$ 7,837$ $ 63,949
2025 57,679 6,269 63,948
2026 34,291 4,657 38,948
2027 35,319 3,629 38,948
2028 17,207 2,569 19,776
2029-2033 55,301 4,026 59,327
Total Debt Service 255,909$ 28,987$ $ 284,896
Compensated Absences
The City records employee absences, such as vacation, illness, and holidays, for which it is expected that employees will be paid as compensated absences.

Net Pension Liability
In accordance with GASB Statement No. 68, the City has recorded its net pension liability of CalPERS benefits for retirees. Pension benefits and associated liabilities are paid from the General Fund. See Note 7 for further discussion on the net pension liability.

Claims Liability
The City has recorded a liability for potential claims in excess of amounts covered by the insurance pool.

See Note 8 for further discussion on the City’s risk management activities.

Total OPEB Liability
The total OPEB liability is the cumulative differences between annual OPEB cost and an employer’s contributions to a plan. OPEB liabilities are paid from the General Fund. See Note 9 for further discussion on OPEB.

Attachment 2
City of Carmel-by-the-Sea
Notes to the Basic Financial Statements
June 30, 2024
NOTE 7 - RISK MANAGEMENT
The City of Carmel-by-the-Sea (City) is a member of PRISM (Public Risk Innovation, Solutions, and Management) which is a shared risk pool. PRISM covers claims for the City for both Workers Compensation and General Liability. The City’s Liability SIR is pre-funded through PRISM for 8 quarters of payments made on behalf of City. Currently, the SIR fund for the City with PRISM is maintained at $8,183. If the pre-funded SIR balance drops below this amount, the City is billed by PRISM to replenish the fund to the $8,183 level. The City does not make claim payments, they are all issued by the city's third-party administrator from a PRISM account.

The City has three layers of Liability coverage through PRISM and under the first layer, the Primary General Liability layer, there is an SIR (Self Insured Retention) of $10,000 per claim. Thereafter, the next layer of coverage kicks in (General Liability 1 program) which carries an SIR of $100,000 which is satisfied by exhausting the coverage limit of $100,000 under the Primary Liability program. The maximum limit of coverage under the primary General Liability 1 program is $25 million. The third layer is $25 million limit in the PRISM Optional Excess Liability program. The City’s total Liability insurance limit is $50 million.

For Workers Compensation, the City is a member of both the PRISM Primary Workers Compensation program and then, the PRISM Excess Workers Compensation program. The Primary Workers compensation program provides dollar 1 coverage to the City for Workers Compensation claims. In other words, City has no deductible or SIR. This layer of Workers Compensation coverage carries a maximum limit of $125,000 per occurrence. Thereafter, PRISM's excess coverage steps in and the SIR (Self Insured Retention) is $125,000 which again, is satisfied by exhausting the limits of coverage under the Primary Workers Compensation program. The upper limit of coverage under the Excess Workers Compensation program is "statutory". What this means is that regardless of the total cost of the claim, it is covered under the PRISM Excess Workers Compensation program. There is absolutely no monetary exposure to the City under these two Workers Compensation programs except for the premium costs to purchase this coverage. The City has had no settlements which exceeded insurance coverage in the last three fiscal years and no significant changes or reductions in insurance coverage during the current year.

The following summarizes the change in the estimated workers compensation claims liability over the last two fiscal years:

Year Ended Year Ended
June 30, 2024 June 30, 2023
Beginning of year $ 575,000 $ 575,000
Increase (decrease) in current year claims 45,885 419,883 Changes in estimates 1,004 (175,487)
Claims paid (46,889) (244,396)
Ending balance 575,000 575,000
Current portion (57,500) (57,500)
Non-current portion $ 517,500 $ 517,500
Attachment 2
City of Carmel-by-the-Sea
Notes to the Basic Financial Statements
June 30, 2024
NOTE 8 - RETIREMENT PLANS
General Information about the Pension Plans
Plan Description
All qualified permanent and probationary employees are eligible to participate in the City’s Employee Pension Plan (the Plan) which is a cost-sharing multiple employer defined benefit pension plan administered by the California Public Employees’ Retirement System (CalPERS). The plan includes different tiers for each class of employee under Miscellaneous and Safety provisions. Benefit provisions under the Plan are established by State statute and City resolution. CalPERS issues publicly available reports that include a full description of the pension plan regarding benefit provisions, assumptions and membership information that can be found on the CalPERS website.

Benefits Provided
CalPERS provides service retirement and disability benefits, annual cost of living adjustments and death benefits to plan members, who must be public employees and beneficiaries. Benefits are based on years of credited service, equal to one year of full-time employment. The cost-of-living adjustments for the Plans are applied as specified by the Public Employees’ Retirement Law. The Plans’ provisions and benefits in effect at June 30, 2024, are summarized as follows:

Tier 1 Tier 2 PEPRA
Hire date < 4/15/2012 >= 4/15/2012 >= 1/1/2013
Benefit formula 2% @ 55 2% @ 60 2% @ 62
Benefit vesting schedule 5 Years 5 Years 5 Years
Benefit payments Monthly for Life Monthly for Life Monthly for Life Retirement age 55 60 62
Monthly benefits as a % of eligible compensation2.0% to 2.5% 2.00% 2.00% Required employee contribution rates 7.00% 7.00% 7.75%
Required employer contribution rates 12.47% 10.10% 7.68% Contractual employee contribution rates 10.00% 10.00% 10.75% Contractual employer contribution rates 9.47% 7.10% 4.68% Miscellaneous
Tier 1 Tier 2 PEPRA
Hire date < 4/15/2012 >= 4/15/2012 >= 1/1/2013
Benefit formula 3% @ 50 2% @ 50 2.7% @ 57
Benefit vesting schedule 5 Years 5 Years 5 Years
Benefit payments Monthly for Life Monthly for Life Monthly for Life Retirement age 50 50 57
Monthly benefits as a % of eligible compensation 2.00% 2.00% 2.00% Required employee contribution rates 9.00% 9.00% 13.75% Required employer contribution rates 27.11% 19.95% 13.54% Contractual employee contribution rates 12.00% 12.00% 16.75% Contractual employer contribution rates 24.11% 16.95% 10.54% Safety
Attachment 2
City of Carmel-by-the-Sea
Notes to the Basic Financial Statements
June 30, 2024
Employees Covered
At June 30, 2024, the following employees were covered by the benefit terms for the Plans:

Miscellaneous Safety Total
Active 56 16 72
Transferred 30 20 50
Separated 34 14 48
Retired 123 59 182
Total 243 109 352
Contributions
Section 20814(c) of the California Public Employees’ Retirement Law requires that the employer contribution rates for all public employers be determined on an annual basis by the actuary and shall be effective on the July 1 following notice of a change in the rate. Funding contributions for the Plans are determined annually on an actuarial basis as of June 30 by CalPERS. The actuarially determined rates are the estimated amount necessary to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. The City is required to contribute the difference between the actuarially determined rate and the contribution rate of employees.

For the year ended June 30, 2024, the following contributions were made:

Employer
Contributions
Miscellaneous $ 2,278,639
Safety 415,309
Total Employer Contributions $ 2,693,948
Pension Liabilities, Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions
As of June 30, 2024, the City reported net pension liabilities for its proportionate shares of the net pension liability as follows:

Miscellaneous
Safety
Total
Proportionate Share of
Net Pension
Liability/(Asset)
$ 14,908,532
14,295,432
$ 29,203,964
The City’s net pension liability for the Plans is measured as the proportionate share of the net pension liability. The net pension liability of the Plans are measured as of June 30, 2023, and the total pension liability for the Plans used to calculate the net pension liability was determined by an actuarial valuation as of June 30, 2022 rolled forward to June 30, 2023 using standard update procedures. The City’s proportion of the net pension liability was based on a projection of the City’s long-term share of contributions to the pension plans relative to the projected contributions of all participating employers, actuarially determined.

Attachment 2
City of Carmel-by-the-Sea
Notes to the Basic Financial Statements
June 30, 2024
The City’s proportionate share of the net pension liability for the Plans as of June 30, 2023 and 2023 was as follows:

Miscellaneous Safety Combined Plans
Proportion - June 30, 2023 0.30048% 0.20524% 0.24382%
Proportion - June 30, 2024 0.29815% 0.19124% 0.23409%
Change - Increase/(Decrease) -0.00234% -0.01399% -0.00973% For the year ended June 30, 2024, the City recognized a pension expense of $3,888,037.

At June 30, 2024, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:

Deferred
Outflows of
Resources
Deferred
Inflows of
Resources
Changes of Assumptions $ 900,095 $ -
Differences between Expected and Actual Experience 761,608 118,144 Differences between Projected and Actual Investment Earnings 2,413,826 - Differences between Employer's Contributions and
Proportionate Share of Contributions 740,255 85,469
Change in Employer's Proportion - 382,673
Pension Contributions Made Subsequent to Measurement Date 2,278,639 - Total $ 7,094,424 $ 586,286
Miscellaneous
Deferred
Outflows of
Resources
Deferred
Inflows of
Resources
Changes of Assumptions $ 834,301 $ -
Differences between Expected and Actual Experience 1,049,548 89,852 Differences between Projected and Actual Investment Earnings 1,956,326 - Differences between Employer's Contributions and
Proportionate Share of Contributions - 1,339,897
Change in Employer's Proportion 194,230 424,180
Pension Contributions Made Subsequent to Measurement Date 415,309 - Total $ 4,449,714 $ 1,853,929
Safety
Attachment 2
City of Carmel-by-the-Sea
Notes to the Basic Financial Statements
June 30, 2024
Deferred
Outflows of
Resources
Deferred
Inflows of
Resources
Changes of Assumptions $ 1,734,396 $ -
Differences between Expected and Actual Experience 1,811,157 207,996 Differences between Projected and Actual Investment Earnings 4,370,152 - Differences between Employer's Contributions and
Proportionate Share of Contributions 740,255 1,425,365
Change in Employer's Proportion 194,230 806,853
Pension Contributions Made Subsequent to Measurement Date 2,693,948 - Total $ 11,544,138 $ 2,440,214
Plan Total
The City reported $2,693,948 as deferred outflows of resources related to contributions subsequent to the measurement date that will be recognized as a reduction of the net pension liability in the year ended June 30, 2025.

Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized as pension expense as follows:

Miscellaneous Safety Total
$ 1,217,018 $ 533,887 $ 1,750,905
948,378 298,453 1,246,830
1,994,840 1,293,531 3,288,371
69,263 54,605 123,867
- - -
- - -
$ 4,229,499 $ 2,180,476 $ 6,409,973
2025
Total
2026
2027
2028
Thereafter
2029
Deferred Outflows/(Inflows) of
Fiscal Year Ending Resources
June 30:

Attachment 2
City of Carmel-by-the-Sea
Notes to the Basic Financial Statements
June 30, 2024
Actuarial Assumptions
The total pension liabilities in the June 30, 2022 actuarial valuations were determined using the following actuarial assumptions:

Valuation Date June 30, 2022
Measurement Date June 30, 2023
Actuarial Cost Method Entry-Age
Normal Cost
Method
Actuarial Assumptions:

Discount Rate 6.90%
Inflation 2.30%
Payroll Growth 2.80%
Projected Salary Increase (1)
Investment Rate of Return 6.8% (2)
Mortality (3)
(1) Varies by entry age and service
(2) Net of pension plan investment expenses, including inflation (3) Derived using CalPERS' membership data for all funds Discount Rate
The discount rate used to measure the total pension liability was 6.9%. To determine whether the municipal bond rate should be used in the calculation of a discount rate for the Plan, CalPERS stress tested employer rate plans within the Plan that would most likely result in a discount rate that would be different from the actuarially assumed discount rate. Based on the testing, none of the tested employer rate plans run out of assets. Therefore, the current 6.9% discount rate is adequate and the use of the municipal bond rate calculation is not necessary. The stress test results are presented in a detailed report, GASB Statements 67 and 68 Crossover Testing Report for Measurement Date June 30, 2021 based on June 30, 2020 Valuations, that can be obtained from the CalPERS website.

According to Paragraph 30 of GASB 68, the long-term discount rate should be determined without reduction for pension plan administrative expense. For the CalPERS Plan, the 6.9% investment return assumption used in this accounting valuation is net of administrative expenses. Administrative expenses are assumed to be 15 basis points. An investment return excluding administrative expenses would have been 6.9%. Using this lower discount rate has resulted in a slightly higher total pension liability and net pension liability. CalPERS checked the materiality threshold for the difference in calculation and did not find it to be a material difference.

In determining the long-term expected rate of return, CalPERS took into account both short- term and long-term market return expectations as well as the expected pension fund cash flows. Such cash flows were developed assuming that both members and employers will make their required contributions on time and as scheduled in all future years. Using historical returns of all the Plan’s asset classes, expected compound (geometric) returns were calculated over the short-term (first 11 years) and the long-term (60 years) using a building-block approach. Using the expected nominal returns for both short-term and longterm, the present value of benefits was calculated for the Plan. The expected rate of return was set by calculating the single equivalent expected return that arrived at the same present value of benefits for cash flows as the one calculated using both short-term and long-term returns. The expected rate of return Attachment 2
City of Carmel-by-the-Sea
Notes to the Basic Financial Statements
June 30, 2024
was then set equivalent to the single equivalent rate calculated above and rounded down to the nearest one quarter of one percent.

The rate of return was calculated using the capital market assumptions applied to determine the discount rate and asset allocation. These rates of return are net of administrative expenses.

Assumed Long-Term
Asset Expected Real
Asset Class (a) Allocation Return (1)(2)
Global Equity Cap Weighted 30.00% 4.54%
Global Equity NonCap Weighted 12.00% 3.84%
Private Equity 13.00% 7.28%
Treasury 5.00% 0.27%
Mortgage-backed Securities 5.00% 0.50%
Investment Grade Corporates 10.00% 1.56%
High Yield 5.00% 2.27%
Emerging Market Debt 5.00% 2.48%
Private Debt 5.00% 3.57%
Real Assets 15.00% 3.21%
Leverage -5.00% -0.59%
Total 100.00%
(1) An expected inflation of 2.3% used for this period. (2) Figures are based on the 2021-22 Asset Liability Study.

Sensitivity of the Proportionate Share of the Net Pension Liability to Changes in the Discount Rate The following presents the City’s proportionate share of the net pension liability for the Plans, calculated using the discount rate for the Plans, as well as what the City’s proportionate share of the net pension liability would be if it were calculated using a discount rate that is 1-percentage point lower or 1- percentage point higher than the current rate:

Miscellaneous Safety Total
1% Decrease 5.90% 5.90% 5.90%
Net Pension Liability $ 21,596,850 20,204,295 41,801,146 Current 6.90% 6.90% 6.90%
Net Pension Liability $ 14,908,532 14,295,432 29,203,964 1% Increase 7.90% 7.90% 7.90%
Net Pension Liability $ 9,403,473 9,464,516 18,867,989
Pension Plan Fiduciary Net Position
Detailed information about each pension plan’s fiduciary net position is available in the separately issued CalPERS financial reports.

Attachment 2
City of Carmel-by-the-Sea
Notes to the Basic Financial Statements
June 30, 2024
NOTE 9 - OTHER POSTEMPLOYMENT BENEFITS PLAN
Plan Description and Benefits
The City of Carmel-by-the-Sea Retiree Healthcare Plan (Plan) is a single-employer defined benefit healthcare plan administered by the City. The Plan provides access to lifetime healthcare benefits to eligible retirees and their dependents. The City provides retiree medical benefits through the California Public Employees’ Retirement System healthcare program (PEMHCA). For eligible retirees, the City contributes not less than 5% of the active contribution times years in PEMHCA (max $100/month increase). For purposes of its contract with PEMHCA, the City uses a statutory schedule to determine its monthly contribution on behalf of each active employee. The statutory amount was $133.00 for 2018 and is indexed by the Medical CPI each year thereafter.

The City offers the same medical plans to its retirees and surviving spouses as to its active employees, with the exception that once a retiree becomes eligible for Medicare, he or she must join a Medicare HMO or a Medicare Supplement plan, with Medicare becoming the primary payer. Employees become eligible to retire and receive City-paid healthcare benefits upon attainment of age 50 and 5 years of service (age 52 for Miscellaneous PEPRA employees). The City contribution towards retiree health benefits is determined under the "equal contribution method" under PEMHCA, whereby the contribution is 100% of the City's statutory minimum contribution for active employees. No stand-alone financial are issued for this plan as it is not a trusted plan.

Employees Covered by Benefit Terms
At June 30, 2024, the benefit terms covered the following employees:

Active employees 72
Inactive employees 47
Total employees 119
Contributions
The City makes contributions based on a pay-as-you go basis as approved by the authority of the City’s Board. Total benefit payments included in the measurement period were $134,849. The City’s contributions and benefit payments were 2% of covered payroll during the measurement period June 30, 2024. Employees are not required to contribute to the plan. There have been no assets accumulated in a trust to provide for the benefits of this plan.

Attachment 2
City of Carmel-by-the-Sea
Notes to the Basic Financial Statements
June 30, 2024
Actuarial Assumptions
The following summarized the actuarial assumptions for the OPEB plan included in this fiscal year:

Valuation Date:

Measurement Date:

Actuarial Cost Method:

Amortization Period:

Actuarial Assumptions:

Discount Rate
Inflation
Payroll Increases
Trend Rate
Municipal Bond Rate
Mortality

6.50%
Entry-Age Normal Cost Method
June 30, 2023
June 30, 2024
20 years

2.30%

2.80%

3.97%

3.97%
2021 CalPERS Mortality for Safety Employees
2021 CalPERS Retiree Mortality for All Employees
2021 CalPERS Mortality for Miscellaneous and
Schools Employees
Increased from 3.86%
Decreased from 2.40%
Discount Rate
The discount rate was based on the Bond Buyer 20-bond General Obligation Index.

Total OPEB Liability
The City's total OPEB liability was measured as of June 30, 2024 (measurement date) and was determined by an actuarial valuation as of June 30, 2023 (valuation date) for the fiscal year ended June 30, 2024 (reporting date).

Attachment 2
City of Carmel-by-the-Sea
Notes to the Basic Financial Statements
June 30, 2024
Changes in the Total OPEB Liability
The following summarizes the changes in the Total OPEB liability during the year:

Fiscal Year Ended June 30, 2022
Total OPEB
Liability
Balance at June 30, 2021 $ 3,023,962
Service cost 197,644
Interest in Total OPEB Liability 121,752
Actual and exp experience (1,787)
Changes in assumptions (133,200)
Benefit payments (134,849)
Net changes 49,560
Balance at June 30, 2022 $ 3,073,522
Covered Employee Payroll $ 7,824,016
Total OPEB Liability as a % of Covered Employee Payroll 39.28% Service Cost as a % of Covered Employee Payroll 2.53%
Net OPEB Liability as a % of Covered Employee Payroll 39.28% The City’s plan is nonfunded, meaning there have not been assets placed into an irrevocable trust, therefore the plan fiduciary net position is zero.

Deferred Inflows and Outflows of Resources
At June 30, 2024, the City reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources:

Deferred
Outflows of
Resources
Deferred
Inflows of
Resources
Difference between actual and expected experience $ 165,635 $ 361,002 Change in assumptions 92,477 1,252,271
Totals $ 258,112 $ 1,613,273
Other amounts reported as deferred outflows of resources and deferred inflows of resources related to OPEB will be recognized in OPEB expense as follows:

Year Ended June 30,
2025 $ (305,770)
2026 (305,770)
2027 (331,337)
2028 (246,745)
2029 (144,623)
Thereafter (20,916)
Total $ (1,355,161)
Attachment 2
City of Carmel-by-the-Sea
Notes to the Basic Financial Statements
June 30, 2024
OPEB Expense
The following summarizes the OPEB expense by source during the year ended June 30, 2024:

Service cost $ 197,644
Interest in TOL 121,752
Difference between actual and expected experience (79,057) Change in assumptions (216,858)
OPEB Expense $ 23,481
The following summarizes changes in the net OPEB liability as reconciled to OPEB expense during the year ended June 30, 2024:
$ 3,073,522
(3,023,962)
49,560
Changes in deferred outflows 84,921
Changes in deferred inflows (245,846)
Employer contributions and implicit subsidy 134,846
OPEB Expense $ 23,481
Total OPEB liability ending
Total OPEB liability begining
Change in total OPEB liability
Sensitivity to Changes in the Discount Rate
The total OPEB liability of the City, as well as what the City's total OPEB liability would be if it were calculated using a discount rate that is one percentage point lower or one percentage point higher, is as follows:
1% Decrease 3.86% 1% Increase
Total OPEB Liability $ 3,481,128 $ 3,073,522 $ 2,737,770 Municipal Bond Rate
Sensitivity to Changes in the Healthcare Cost Trend Rates The total OPEB liability of the City, as well as what the City's total OPEB liability would be if it were calculated using healthcare cost trend rates that are one percentage point lower or one percentage point higher than current healthcare cost trend rates, is as follows:
1% Decrease 4.00% 1% Increase
Total OPEB Liability $ 2,680,902 $ 3,073,522 $ 3,561,122 Trend Rate
Attachment 2
City of Carmel-by-the-Sea
Notes to the Basic Financial Statements
June 30, 2024
NOTE 10 - COMMITMENTS AND CONTINGENCIES
A. Lawsuits
The City may be involved in certain matters of litigation that have arisen in the normal course of conducting City business. City management believes, based upon consultation with the City Attorney, that any cases, in the aggregate, are not expected to result in a material adverse financial impact on the City. Additionally, City management believes that the City's insurance programs are sufficient to cover any potential losses should an unfavorable outcome materialize.

B. Federal and State Grant Programs
The City participates in Federal, State and County grant programs. These programs are audited by the City's independent accountants, if required, in accordance with the provisions of the Federal Single Audit Act Amendments of 1996 and applicable State requirements. For Federal programs, the City did not reach the level of qualifying expenditures during the current fiscal year that would require a single audit.

Expenditures which may be disallowed, if any, by the granting agencies, cannot be determined at this time. The City expects such amounts, if any, to be immaterial.

Attachment 2
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Attachment 2

REQUIRED SUPPLEMENTARY

INFORMATION
Attachment 2
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Attachment 2
City of Carmel-By-The-Sea
Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual (GAAP Basis)
General Fund
For the Year Ended June 30, 2024
Variance with
Budgeted Amounts Final Budget
Actual Positive
Original Final Amounts (Negative)

REVENUES
Taxes:

Property taxes $ 8,493,132 $ 8,493,132 $ 8,770,847 $ 277,715 Sales and use taxes 3,679,421 3,679,421 3,692,470 13,049 Transient occupancy taxes 6,801,007 7,395,327 8,579,344 1,184,017 Franchise fees 832,858 832,858 986,558 153,700
Business license tax 557,024 557,024 751,306 194,282
Intergovernmental revenues 600,932 600,932 910,428 309,496 License and permits 1,039,456 1,039,456 1,359,671 320,215 Fines and forfeitures 62,152 62,152 180,843 118,691
Charges for services 1,474,766 1,474,766 1,133,640 (341,126) Interest 28,325 28,325 444,856 416,531
Rents and concessions 116,884 116,884 164,514 47,630
Other revenues 78,300 177,525 159,305 (18,220)
Total Revenues 23,764,257 24,457,802 27,133,782 2,675,980

EXPENDITURES
Current:

General government 8,286,320 8,532,353 7,002,824 1,529,529 Community Planning and Building 2,224,559 2,224,559 1,845,642 378,917 Public Safety 10,684,758 10,780,078 9,057,317 1,722,761 Public Works 5,409,213 5,769,438 5,192,057 577,381
Library 1,289,406 1,289,406 1,188,811 100,595
Community Activities 304,297 304,297 163,054 141,243
Economic Reviltalization 1,134,030 1,134,030 1,134,030 - Capital outlay - - 72,964 (72,964)
Debt service
Principal - - 76,209 (76,209)
Interest and fiscal charges - - 7,515 (7,515)
Total Expenditures 29,332,583 30,034,161 25,740,423 4,293,738 Excess (Deficiency) of Revenues over Expenditures (5,568,326) (5,576,359) 1,393,359 6,969,718

OTHER FINANCING SOURCES (USES)
Subscriptions - - 72,964 72,964
Transfers in 158,000 158,000 158,000 -
Transfers out (3,715,820) (3,715,820) (3,715,820) -
Total Other Financing Sources (Uses) (3,557,820) (3,557,820) (3,484,856) - Net Change in Fund Balance (9,126,146) (9,134,179) (2,091,497) 6,969,718 Fund Balance Beginning 22,398,401 22,398,401 22,398,401 - Fund Balance Ending $ 13,272,255 $ 13,264,222 $ 20,306,904 $ 6,969,718 Attachment 2
City of Carmel-By-The-Sea
Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual (GAAP Basis)
Measure C Sales Tax Fund
For the Year Ended June 30, 2024
Variance with
Budgeted Amounts Final Budget
Actual Positive
Original Final Amounts (Negative)

REVENUES
Sales and use taxes $ 5,926,532 $ 5,926,532 $ 6,386,122 $ 459,590

OTHER FINANCING SOURCES (USES)
Transfers out (6,145,082) (6,145,082) (6,145,082) -
Net Change in Fund Balance (218,550) (218,550) 241,040 459,590 Fund Balance Beginning 1,911,499 1,911,499 1,911,499 -
Fund Balance Ending $ 1,692,949 $ 1,692,949 $ 2,152,539 $ 459,590 Attachment 2
City of Carmel-By-The-Sea
Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual (GAAP Basis)
Harrison Memorial Library Fund
For the Year Ended June 30, 2024
Variance with
Budgeted Amounts Final Budget
Actual Positive
Original Final Amounts (Negative)

REVENUES
Contributions $ 366,000 $ 366,000 $ 359,903 $ (6,097)
Charges for services 9,000 9,000 6,655 (2,345)
Interest 22,900 22,900 45,797 22,897
Total Revenues 397,900 397,900 412,355 14,455

EXPENDITURES
Current:

Library 402,900 402,900 409,336 (6,436)
Total Expenditures 402,900 402,900 409,336 (6,436)
Excess (Deficiency) of Revenues over Expenditures (5,000) (5,000) 3,019 8,019

OTHER FINANCING SOURCES (USES)
Transfers in - - - -
Transfers out - - - -
Total Other Financing Sources (Uses) - - - -
Net Change in Fund Balance (5,000) (5,000) 3,019 8,019
Fund Balance Beginning 1,450,632 1,450,632 1,450,632 -
Fund Balance Ending $ 1,445,632 $ 1,445,632 $ 1,453,651 $ 8,019 Attachment 2
City of Carmel-by-the-Sea
Schedule of Pension Contributions
June 30, 2024
Miscellaneous and Safety Plan
Plan Measurement Date 2014 2015 2016 2017 2018
Fiscal Year Ended 2015 2016 2017 2018 2019
Contractually Required Contributions $ 725,205 $ 1,125,776 $ 1,279,565 $ 1,317,381 $ 1,566,319 Contributions in Relation to
Contractually Required Contributions 725,205 1,125,776 1,279,565 1,317,381 1,566,319 Contribution Deficiency (Excess) $ - $ - $ - $ - $ -
Covered Payroll $ 4,894,966 $ 5,193,071 $ 5,725,559 $ 5,897,326 $ 6,074,246 Contributions as a % of Covered Payroll 14.82% 21.68% 22.35% 22.34% 25.79% Miscellaneous and Safety Plan
Plan Measurement Date 2019 2020 2021 2022 2023
Fiscal Year Ended 2020 2021 2022 2023 2024
Contractually Required Contributions $ 1,864,910 $ 2,183,605 $ 2,378,458 $ 2,666,278 $ 2,693,948 Contributions in Relation to
Contractually Required Contributions 1,864,910 2,183,605 2,378,458 2,666,278 2,693,948 Contribution Deficiency (Excess) $ - $ - $ - $ - $ -
Covered Payroll $ 6,591,573 $ 6,772,841 $ 6,244,060 $ 7,251,994 $ 7,829,262 Contributions as a % of Covered Payroll 28.29% 32.24% 38.09% 36.77% 34.41% Notes to Schedule:

Valuation Date: June 30, 2022
Assumptions Used: Entry Age Method used for Actuarial Cost Method Level Percentage of Payroll and Direct Rate Smoothing
Remaining Amortization Period no more than 29 years
Inflation Assumed at 2.30%
Investment Rate of Returns set at 6.8%
The CalPERS discount rate was increased from 7.50% to 7.65% in FY2016, to 7.15% in FY2018, and then decreased to 6.9% in FY2023.

The CalPERS mortality assumptions was adjusted in fiscal year 2023.

The mortality table was developed based on CalPERS-specific data. The rates incorporate Generational Mortality to capture ongoing morality improvement using 80% of Scale MP 2020 published by the Society of Actuaries. For more details, please refer to the 2021 experience study report that can be found on the CalPERS website.

Attachment 2
City of Carmel-by-the-Sea
Schedule of Proportionate Share of Net Pension Liability June 30, 2024
Miscellaneous and Safety Plan
Plan Measurement Date 2014 2015 2016 2017 2018
Fiscal Year Ended 2015 2016 2017 2018 2019
Proportion of Net Pension
Liability (Safety and Misc) 0.18745% 0.19035% 0.19840% 0.20075% 0.20672% Proportion of Net Pension
Liability (Misc Plan Only) 0.47195% 0.47624% 0.49419% 0.50503% 0.52858% Proportionate Share of
Net Pension Liability $ 11,664,146 $ 13,065,617 $ 17,167,636 $ 19,908,483 $ 19,920,568 Covered Payroll $ 4,748,117 $ 4,894,966 $ 5,193,071 $ 5,725,559 $ 5,897,326 Proportionate Share of NPL
as a % of Covered Payroll 245.66% 266.92% 330.59% 347.71% 337.79% Plan's Fiduciary Net Position
as a % of the TPL 80.11% 77.73% 74.70% 73.44% 74.18%
Miscellaneous and Safety Plan
Plan Measurement Date 2019 2020 2021 2022 2023
Fiscal Year Ended 2020 2021 2022 2023 2024
Proportion of Net Pension
Liability (Safety and Misc) 0.21144% 0.22373% 0.29520% 0.24382% 0.23409% Proportion of Net Pension
Liability (Misc Plan Only) 0.54105% 0.57710% 0.84081% 0.60188% 0.29815% Proportionate Share of
Net Pension Liability $ 21,666,416 $ 24,342,598 $ 15,965,385 $ 28,163,296 $ 29,203,964 Covered Payroll $ 6,074,246 $ 6,591,573 $ 6,772,841 $ 6,244,060 $ 7,251,994 Proportionate Share of NPL
as a % of Covered Payroll 356.69% 369.30% 235.73% 451.04% 402.70% Plan's Fiduciary Net Position
as a % of the TPL 72.78% 71.13% 81.45% 68.49% 68.44%
The CalPERS discount rate was increased from 7.50% to 7.65% in FY2016, to 7.15% in FY2018, and then decreased to 6.90% in FY2023.

The CalPERS mortality assumptions was adjusted in fiscal year 2023.

Attachment 2
City of Carmel-by-the-Sea
Retiree Health Care Plan
Schedule of Total OPEB Liability
June 30, 2024
Fiscal Year Ended 2018 2019 2020 2021 2022 2023 2024
Total OPEB liability
Service cost $ 199,013 $ 193,586 $ 295,059 $ 348,597 $ 261,219 $ 197,644 $ 197,644 Interest 134,202 146,765 143,565 105,930 90,758 133,373 121,752 Diff. bet. expected and actual experience (2,625) (2,524) 59,118 (823,299) - 205,046 (1,787) Changes of assumptions (137,699) 192,779 256,216 21,493 (716,539) (1,013,678) (133,200) Benefit payments (145,196) (159,107) (135,193) (152,834) (138,891) (135,560) (134,849) Net change in Total OPEB Liability 47,695 371,499 618,765 (500,113) (503,453) (613,175) 49,560 Total OPEB Liability - beginning 3,602,744 3,650,439 4,021,938 4,640,703 4,140,590 3,637,137 3,023,962 Total OPEB Liability - ending $ 3,650,439 $ 4,021,938 $ 4,640,703 $ 4,140,590 $ 3,637,137 $ 3,023,962 $ 3,073,522 Covered Employee Payroll $ 6,021,711 $ 6,207,949 $ 6,378,668 $ 6,544,081 $ 6,734,318 $ 7,410,817 $ 7,614,614 TOL as a % of covered emp. payroll 60.62% 64.79% 72.75% 63.27% 54.01% 40.80% 40.36% Other Notes
No assets have been accumulated in a trust for the City's OPEB plan.

GASB 75 requires a schedule of contributions for the last ten fiscal years, or for as many years as are available if less than ten years are available. GASB 75 was adopted as of June 30, 2018.

In FY2023, the discount rate increased from 2.2% to 3.86%, the inflation rate decreased from 2.75% to 2.4%, the payroll rate decreased from 3% to

2.8%, and the trend rate changed from 8% to 4% from 2019 to 2023. In FY2024, the discount rate increased to 3.97%, inflation decreased to 2.3%, and the health trend rate was 6.5%.

Attachment 2

SUPPLEMENTARY INFORMATION
Attachment 2
This page is intentionally blank
Attachment 2

COMBINING NONMAJOR GOVERNMENTAL FUNDS
Fund Title Fund Description
Gast Tax This fund is used to account for revenues collected in accordance with the Streets and Highway Code.

Transportation Safety This fund accounts for the expenditures related to resources provided for transportation safety as required by Measure X.

COPS Grant This fund accounts for the expenditures related to the COP's grant for public safety.

Parking in Lieu This fund is used to account for activities associate with parking in-lieu fees.

Asset Seizure This fund accounts for the expenditures related to asset seizures.

Debt Service This fund is used to account for activities related to the repayment of the Certificate of Participation, Pension Obligation Bond, and capital lease obligations.

Attachment 2
City of Carmel-By-The-Sea
Combining Balance Sheet
Nonmajor Governmental Funds
June 30, 2024
Gas Transportation COPS Parking
Tax Safety Grant In-Lieu
Fund Fund Fund Fund
ASSETS
Cash and investments $ 147,157 $ - $ 23,799 $ 758,830
Receivables:

Due from other governments 21,766 64,575 16,666 -
Total assets $ 168,923 $ 64,575 $ 40,465 $ 758,830

LIABILITIES AND FUND BALANCES
Liabilities:

Due to other funds $ - $ 64,575 $ - $ -
Total liabilities - 64,575 - -
Fund Balances:

Restricted:

Transportation 168,923 - - -
Public safety - - 40,465 -
Debt service - - - -
Asset seizure - - - -
Public parking - - - 758,830
Total fund balances 168,923 - 40,465 758,830
Total liabilities and fund balances $ 168,923 $ 64,575 $ 40,465 $ 758,830 Cont'd
Special Revenue Funds
Attachment 2
City of Carmel-By-The-Sea
Combining Balance Sheet
Nonmajor Governmental Funds
June 30, 2024
ASSETS
Cash and investments
Receivables:

Due from other governments
Total assets

LIABILITIES AND FUND BALANCES
Liabilities:

Due to other funds
Total liabilities
Fund Balances:

Restricted:

Transportation
Public safety
Debt service
Asset seizure
Public parking
Total fund balances
Total liabilities and fund balances
Special Revenue
Funds Debt Service
Total
Asset Debt Nonmajor
Seizure Service Governmental
Fund Fund Funds
$ 5,616 $ 34,807 $ 970,209
- - 103,007
$ 5,616 $ 34,807 $ 1,073,216
$ - $ - $ 64,575
- - 64,575
- - 168,923
- - 40,465
- 34,807 34,807
5,616 - 5,616
- - 758,830
5,616 34,807 1,008,641
$ 5,616 $ 34,807 $ 1,073,216
Concluded
Attachment 2
City of Carmel-By-The-Sea
Combining Statement of Revenues, Expenditures
and Changes in Fund Balances
Nonmajor Governmental Funds
For the Year Ended June 30, 2024
Gas Transportation COPS Parking
Tax Safety Grant In-Lieu
Fund Fund Fund Fund

REVENUES
Intergovernmental revenues $ 169,648 $ 263,638 $ 186,159 $ - Interest 14,361 14,935 1,489 20,238
Total Revenues 184,009 278,573 187,648 20,238

EXPENDITURES
Debt service
Principal - - - -
Interest and fiscal charges - - - -
Total Expenditures - - - -
Excess (Deficiency) of Revenues over Expenditures 184,009 278,573 187,648 20,238

OTHER FINANCING SOURCES (USES)
Transfers in - - - -
Transfers out (551,432) (1,134,799) (158,000) -
Total Other Financing Sources (Uses) (551,432) (1,134,799) (158,000) - Net Change in Fund Balances (367,423) (856,226) 29,648 20,238 Fund Balances Beginning 536,346 856,226 10,817 738,592
Fund Balances Ending $ 168,923 $ - $ 40,465 $ 758,830
Cont'd
Special Revenue Funds
Attachment 2
City of Carmel-By-The-Sea
Combining Statement of Revenues, Expenditures
and Changes in Fund Balances
Nonmajor Governmental Funds
For the Year Ended June 30, 2024

REVENUES
Intergovernmental revenues
Interest
Total Revenues

EXPENDITURES
Debt service
Principal
Interest and fiscal charges
Total Expenditures
Excess (Deficiency) of Revenues over Expenditures

OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out
Total Other Financing Sources (Uses)
Net Change in Fund Balances
Fund Balances Beginning
Fund Balances Ending
Debt Service
Total
Asset Debt Nonmajor
Seizure Service Governmental
Fund Fund Funds
$ - $ - $ 619,445
150 - 51,173
150 - 670,618
- 370,033 370,033
- 150,009 150,009
- 520,042 520,042
150 (520,042) 150,576
- 528,044 528,044
- - (1,844,231)
- 528,044 (1,316,187)
150 8,002 (1,165,611)
5,466 26,805 2,174,252
$ 5,616 $ 34,807 $ 1,008,641
Concluded
Special Revenue
Funds
Attachment 2
City of Carmel-By-The-Sea
Schedule of Revenues, Expenditures, and
Changes in Fund Balances
Budget and Actual (GAAP Basis)
Nonmajor Governmental Funds
For the Year Ended June 30, 2024
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)

REVENUES
Intergovernmental revenues $ 179,934 $ 179,934 $ 169,648 $ (10,286) Contributions - - - -
Charges for services - - - -
Interest - - 14,361 14,361
Total Revenues 179,934 179,934 184,009 4,075

EXPENDITURES
Debt service
Principal - - - -
Interest and fiscal charges - - - -
Total Expenditures - - - -
Excess (Deficiency) of Revenues over Expenditures 179,934 179,934 184,009 4,075

OTHER FINANCING SOURCES (USES)
Transfers in - - - -
Transfers out (179,934) (179,934) (551,432) (371,498)
Total Other Financing Sources (Uses) (179,934) (179,934) (551,432) (371,498) Net Change in Fund Balances - - (367,423) (367,423)
Fund Balances Beginning 536,346 536,346 536,346 -
Fund Balances Ending $ 536,346 $ 536,346 $ 168,923 $ (367,423) Cont'd
Gas Tax Fund
Budgeted Amounts
Attachment 2
City of Carmel-By-The-Sea
Schedule of Revenues, Expenditures, and
Changes in Fund Balances
Budget and Actual (GAAP Basis)
Nonmajor Governmental Funds
For the Year Ended June 30, 2024

REVENUES
Intergovernmental revenues
Contributions
Charges for services
Interest
Total Revenues

EXPENDITURES
Debt service
Principal
Interest and fiscal charges
Total Expenditures
Excess (Deficiency) of Revenues over Expenditures

OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out
Total Other Financing Sources (Uses)
Net Change in Fund Balances
Fund Balances Beginning
Fund Balances Ending
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
$ 231,779 $ 231,779 $ 263,638 $ 31,859
- - - -
- - - -
- - 14,935 14,935
231,779 231,779 278,573 46,794
- - - -
- - - -
- - - -
231,779 231,779 278,573 46,794
- - - -
(802,757) (802,757) (1,134,799) (332,042)
(802,757) (802,757) (1,134,799) (332,042)
(570,978) (570,978) (856,226) (285,248)
856,226 856,226 856,226 -
$ 285,248 $ 285,248 $ - $ (285,248)
Cont'd
Transportation Safety Fund
Budgeted Amounts
Attachment 2
City of Carmel-By-The-Sea
Schedule of Revenues, Expenditures, and
Changes in Fund Balances
Budget and Actual (GAAP Basis)
Nonmajor Governmental Funds
For the Year Ended June 30, 2024

REVENUES
Intergovernmental revenues
Contributions
Charges for services
Interest
Total Revenues

EXPENDITURES
Debt service
Principal
Interest and fiscal charges
Total Expenditures
Excess (Deficiency) of Revenues over Expenditures

OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out
Total Other Financing Sources (Uses)
Net Change in Fund Balances
Fund Balances Beginning
Fund Balances Ending
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
$ 158,000 $ 158,000 $ 186,159 $ 28,159
- - - -
- - - -
- - 1,489 1,489
158,000 158,000 187,648 29,648
- - - -
- - - -
- - - -
158,000 158,000 187,648 29,648
- - - -
(158,000) (158,000) (158,000) -
(158,000) (158,000) (158,000) -
- - 29,648 29,648
10,817 10,817 10,817 -
$ 10,817 $ 10,817 $ 40,465 $ 29,648
Cont'd
COPS Grant Fund
Budgeted Amounts
Attachment 2
City of Carmel-By-The-Sea
Schedule of Revenues, Expenditures, and
Changes in Fund Balances
Budget and Actual (GAAP Basis)
Nonmajor Governmental Funds
For the Year Ended June 30, 2024

REVENUES
Intergovernmental revenues
Contributions
Charges for services
Interest
Total Revenues

EXPENDITURES
Debt service
Principal
Interest and fiscal charges
Total Expenditures
Excess (Deficiency) of Revenues over Expenditures

OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out
Total Other Financing Sources (Uses)
Net Change in Fund Balances
Fund Balances Beginning
Fund Balances Ending
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
$ - $ - $ - $ -
- - - -
- - - -
- - 20,238 20,238
- - 20,238 20,238
- - - -
- - - -
- - - -
- - 20,238 20,238
- - - -
- - - -
- - - -
- - 20,238 20,238
738,592 738,592 738,592 -
$ 738,592 $ 738,592 $ 758,830 $ 20,238
Cont'd
Parking In-Lieu Fund
Budgeted Amounts
Attachment 2
City of Carmel-By-The-Sea
Schedule of Revenues, Expenditures, and
Changes in Fund Balances
Budget and Actual (GAAP Basis)
Nonmajor Governmental Funds
For the Year Ended June 30, 2024

REVENUES
Intergovernmental revenues
Contributions
Charges for services
Interest
Total Revenues

EXPENDITURES
Debt service
Principal
Interest and fiscal charges
Total Expenditures
Excess (Deficiency) of Revenues over Expenditures

OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out
Total Other Financing Sources (Uses)
Net Change in Fund Balances
Fund Balances Beginning
Fund Balances Ending
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
$ - $ - $ - $ -
- - - -
- - - -
- - 150 150
- - 150 150
- - - -
- - - -
- - - -
- - 150 150
- - - -
- - - -
- - - -
- - 150 150
5,466 5,466 5,466 -
$ 5,466 $ 5,466 $ 5,616 $ 150
Cont'd
Asset Seizure Fund
Budgeted Amounts
Attachment 2
City of Carmel-By-The-Sea
Schedule of Revenues, Expenditures, and
Changes in Fund Balances
Budget and Actual (GAAP Basis)
Nonmajor Governmental Funds
For the Year Ended June 30, 2024

REVENUES
Intergovernmental revenues
Contributions
Charges for services
Interest
Total Revenues

EXPENDITURES
Debt service
Principal
Interest and fiscal charges
Total Expenditures
Excess (Deficiency) of Revenues over Expenditures

OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out
Total Other Financing Sources (Uses)
Net Change in Fund Balances
Fund Balances Beginning
Fund Balances Ending
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
$ - $ - $ - $ -
- - - -
- - - -
- - - -
- - - -
369,744 369,744 370,033 (289)
158,300 158,300 150,009 8,291
528,044 528,044 520,042 8,002
(528,044) (528,044) (520,042) 8,002
528,044 528,044 528,044 -
- - - -
528,044 528,044 528,044 -
- - 8,002 8,002
26,805 26,805 26,805 -
$ 26,805 $ 26,805 $ 34,807 $ 8,002
Concluded
Debt Service Fund
Budgeted Amounts
Attachment 2
City of Carmel-By-The-Sea
Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual (GAAP Basis)
Capital Projects Fund
For the Year Ended June 30, 2024
Variance with
Budgeted Amounts Final Budget
Actual Positive
Original Final Amounts (Negative)

REVENUES
Intergovernmental revenues $ - $ 267,000 $ 12,768 $ (254,232) Other revenues 125,000 200,789 75,792 (124,997)
Total Revenues 125,000 467,789 88,560 (379,229)

EXPENDITURES
Capital outlay 9,761,100 9,836,889 2,750,084 7,086,805
Total Expenditures 9,761,100 9,836,889 2,750,084 7,086,805 Excess (Deficiency) of Revenues over Expenditures (9,636,100) (9,369,100) (2,661,524) 6,707,576

OTHER FINANCING SOURCES (USES)
Transfers in 9,377,567 9,377,567 10,081,107 703,540
Transfers out - - - -
Total Other Financing Sources (Uses) 9,377,567 9,377,567 10,081,107 703,540 Net Change in Fund Balance (258,533) 8,467 7,419,583 7,411,116 Fund Balance Beginning 3,676,972 3,676,972 3,676,972 -
Fund Balance Ending $ 3,418,439 $ 3,685,439 $ 11,096,555 $ 7,411,116 Attachment 2

INTERNAL SERVICE FUNDS
Fund Title Fund Description
Worker's Compensation This fund accounts for workers compensation insurance provided to departments on a cost reimbursement basis.

OPEB Reserve Fund This fund accounts for other postemployment benefits provided to departments on a cost reimbursement basis.

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

Attachment 2
City of Carmel-By-The-Sea
Combining Statement of Net Position
Internal Service Funds
June 30, 2024
Total
Vehicle Governmental
Workers OPEB & Equipment Activities -
Compensation Reserve Replacement Internal
Fund Fund Fund Service Funds
ASSETS
Current assets:

Cash and investments $ 874,033 $ 1,817,179 $ 997,156 $ 3,688,368 Accounts receivable - - 12,000 12,000
Other assets 3,386 - 914,692 918,078
Total current assets 877,419 1,817,179 1,923,848 4,618,446 Noncurrent assets:

Capital assets - net - - 1,773,566 1,773,566
Total assets $ 877,419 $ 1,817,179 $ 3,697,414 $ 6,392,012

LIABILITIES
Current liabilities:

Financed purchases - current $ - $ - $ 24,861 $ 24,861
Claims payable - current 57,500 - - 57,500
Total current liabilities 57,500 - 24,861 82,361
Noncurrent liabilities:

Financed purchases - - 107,473 107,473
Claims payable 517,500 - - 517,500
Total noncurrent liabilities 517,500 - 107,473 624,973
Total liabilities $ 575,000 $ - $ 132,334 $ 707,334

NET POSITION
Net investment in capital assets $ - $ - $ 1,641,232 $ 1,641,232 Unrestricted 302,419 1,817,179 1,923,848 4,043,446
Total net position $ 302,419 $ 1,817,179 $ 3,565,080 $ 5,684,678 Attachment 2
City of Carmel-By-The-Sea
Combining Statement of Revenues, Expenses and Changes in Fund Net Position Internal Service Funds
For the Year Ended June 30, 2024
Total
Vehicle Governmental
Workers OPEB & Equipment Activities -
Compensation Reserve Replacement Internal
Fund Fund Fund Service Funds

OPERATING REVENUES
Charges for services $ 61,116 $ - $ - $ 61,116
Other - - 242,678 242,678
Total operating revenues 61,116 - 242,678 303,794

OPERATING EXPENSES
Claims 42,062 - - 42,062
Depreciation - - 286,400 286,400
Total operating expenses 42,062 - 286,400 328,462
Operating income (loss) 19,054 - (43,722) (24,668)

NONOPERATING REVENUES(EXPENSES)
Gain (loss) on disposal of capital assets - - 26,865 26,865 Grants and contributions - - 175,000 175,000
Interest expense - - (4,897) (4,897)
Investment income 23,649 48,469 - 72,118
Total nonoperating revenues(expenses) 23,649 48,469 196,968 269,086 Income (loss) before transfers 42,703 48,469 153,246 244,418 Transfers in - - 937,982 937,982
Transfers out - - - -
Transfers in and out, net - - 937,982 937,982
Change in net position 42,703 48,469 1,091,228 1,182,400 Total net position - beginning 259,716 1,768,710 2,473,852 4,502,278 Total net position - ending $ 302,419 $ 1,817,179 $ 3,565,080 $ 5,684,678 Attachment 2
City of Carmel-By-The-Sea
Combining Statement of Cash Flows
Internal Service Funds
For the Year Ended June 30, 2024
Total
Vehicle Governmental
Workers OPEB & Equipment Activities -
Compensation Reserve Replacement Internal
Fund Fund Fund Service Funds
Cash flows from operating activities:

Receipts from interfund services provided $ 61,116 $ - $ 239,866 $ 300,982 Payments for claims (46,889) - - (46,889)
Net cash provided (used) by operating activities 14,227 - 239,866 254,093 Cash flows from noncapital financing activities:

Interfund transactions - - 937,982 937,982
Net cash provided (used) by noncapital financing activities - - 937,982 937,982 Cash flows from capital financing activities:

Principal payments on debt - - (24,106) (24,106)
Interest payments on debt - - (4,897) (4,897)
Grants and contributions - - 175,000 175,000
Purchases of property and equipment - - (780,321) (780,321) Net cash provided (used) by noncapital financing activities - - (634,324) (634,324) Cash flows from investing activities:

Investment income received 23,649 48,469 - 72,118
Net cash provided (used) by investing activities 23,649 48,469 - 72,118 Net increase (decrease) in cash and cash equivalents 37,876 48,469 543,524 629,869 Cash and cash equivalents - beginning 836,157 1,768,710 453,632 3,058,499 Cash and cash equivalents - ending $ 874,033 $ 1,817,179 $ 997,156 $ 3,688,368 Reconciliation of operating income to net cash provided (used) by operating activities:

Operating income (loss) $ 19,054 $ - $ (43,722) $ (24,668) Adjustments to reconcile operating income (loss)
to net cash provided (used) by operating activities:

Depreciation - - 286,400 286,400
Change in operating assets and liabilities:

Accounts receivable - - (2,812) (2,812)
Other assets (3,386) - - (3,386)
Accounts payable (1,441) - - (1,441)
Net cash provided (used) by operating activities $ 14,227 $ - $ 239,866 $ 254,093 Attachment 2

STATISTICAL SECTION
Attachment 2
This page is intentionally blank
Attachment 2
Financial Trends
Revenue Capacity
Debt Capacity
Demographic and Economic Information
Operating Information
Sources: Unless otherwise noted, the information in these tables is derived from the comprehensive annual financial reports for the relevant year.

These tables offer demographic and economic indicators to help the reader understand the environment within which the city's financial activities take place.

These tables contain service and infrastructure data to help the reader understand how the information in the city's financial report relates to the services the city provides and the activities it performs.

These tables present information to help the reader assess the affordability of the city's current levels of outstanding debt and the city's ability to issue additional debt in the future.

STATISTICAL SECTION
(Unaudited)
These tables contain trend information to help the reader understand how the city's financial performance and well-being have changed over time.

This part of the City of Carmel-by-the-Sea's annual comprehensive financial report presents detailed information as a context for understanding what the information in the financial statements, note disclosures, and required supplementary information says about the city's overall financial health.

These tables contain information to help the reader assess the city's most significant local revenue source, the property tax.

Attachment 2
This page is intentionally blank
Attachment 2
City of Carmel-by-the-Sea TABLE 1
Net Position By Component
Last Ten Fiscal Years
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Governmental activities:

Net investment in capital assets $ 32,547,268 $ 36,006,046 $ 36,931,575 $ 35,216,550 $ 37,132,103 $ 36,611,510 $ 34,846,110 $ 33,545,605 $ 32,930,884 $ 34,957,532 Restricted 3,862,473 3,584,687 5,027,082 2,628,238 2,817,741 3,310,294 4,748,736 6,773,624 5,536,383 4,614,831 Unrestricted (12,992,711) (12,666,545) (14,167,354) (12,141,385) (12,645,571) (14,479,015) (11,775,303) (8,155,852) 5,110,622 10,005,741 Total governmental activities net position $ 23,417,030 $ 26,924,188 $ 27,791,303 $ 25,703,403 $ 27,304,273 $ 25,442,789 $ 27,819,543 $ 32,163,377 $ 43,577,889 $ 49,578,104 Notes:
1) In 2015, net position decreased mostly due to the implementation of GASB 68 for pension benefit liabilities and related amounts.

Source: City of Carmel-by-the-Sea Finance Department
$-
$10
$20
$30
$40
$50
$60
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Millions
Total Net Position
City of Carmel-by-the-Sea TABLE 2
Changes in Net Position
Last Ten Fiscal Years
2015 2016 2017 2018 2019
Expenses
Governmental activities:

General government $ 3,724,546 $ 5,162,323 $ 4,981,304 $ 4,896,809 $ 5,906,304 Community planning and building - - 1,146,860 1,206,295 1,191,826 Public safety 6,685,310 6,445,695 7,281,137 7,771,104 8,390,616 Public works 2,003,332 1,454,895 2,605,036 2,950,423 4,162,376 Library - - 1,144,883 1,303,989 1,894,410
Community activities - - 446,445 153,224 283,512
Economic revitalization 326,956 306,505 1,110,857 1,125,261 1,144,022 Building maintenance 1,832,618 1,542,170 - - -
Forest, parks and beach 581,319 558,592 - - -
Culture and recreation 2,605,877 2,082,591 - - -
Interest and fiscal charges on long-term debt 365,043 336,551 322,181 319,974 283,606 Depreciation (Unallocated) - 1,528,260 1,747,960 1,786,021 - Total governmental activities expenses 18,125,001 19,417,582 20,786,663 21,513,100 23,256,672 Program Revenues
Governmental activities:

Charges for services:

General government 66,190 34,040 38,795 318,414 256,645 Community planning and building - - - 1,167,308 1,454,523 Public safety 918,644 684,612 373,716 692,187 790,428
Public works 525,310 534,224 751,844 58,931 44,636
Library - - - 14,794 10,097
Community activities - - - 79,067 146,443
Economic revitalization - - - 97,142 102,366
Forest, parks and beach - - - - -
Culture and recreation 18,953 20,326 31,817 - -
Operating grants and contributions 1,444,296 668,239 675,765 681,240 865,370 Capital grants and contributions 331,719 327,029 166,726 - - Total governmental activities program revenues 3,305,112 2,268,470 2,038,663 3,109,083 3,670,508 Net (expense)/revenue:

Governmental activities (14,819,889) (17,149,112) (18,748,000) (18,404,017) (19,586,164) General Revenues and Other Changes in Net Assets
Governmental activities:

Taxes
Property taxes 5,127,974 5,598,743 5,825,889 6,192,126 6,524,331 Sales and use taxes 5,280,418 4,897,325 5,373,800 5,486,449 5,732,885 Transient occupancy taxes 5,593,689 5,890,538 6,112,347 6,329,074 6,882,015 Franchise taxes 430,430 587,514 672,554 637,136 636,397 Business license tax 606,128 626,625 649,525 544,392 594,941 Unrestricted grants and contributions 382,145 413,334 436,073 462,989 - Unrestricted investment earnings 163,648 160,172 182,366 101,743 205,791 Gain (loss) on sale of assets - - - (2,439,255) (160,794) Miscellaneous or other revenues 249,537 1,963,750 362,561 212,820 12,928 Total governmental activities 17,833,969 20,138,001 19,615,115 17,527,474 20,428,494 Change in Net Position $ 3,014,080 $ 2,988,889 $ 867,115 $ (876,543) $ 842,330 Cont'd
Source: City of Carmel-by-the-Sea Finance Department
Note: In 2012 and 2018, the City changed the
classification of its program expenses and revenues
based on operations at the time.

Attachment 2
City of Carmel-by-the-Sea
Changes in Net Position
Last Ten Fiscal Years
Expenses
Governmental activities:

General government
Community planning and building
Public safety
Public works
Library
Community activities
Economic revitalization
Building maintenance
Forest, parks and beach
Culture and recreation
Interest and fiscal charges on long-term debt
Depreciation (Unallocated)
Total governmental activities expenses
Program Revenues
Governmental activities:

Charges for services:

General government
Community planning and building
Public safety
Public works
Library
Community activities
Economic revitalization
Forest, parks and beach
Culture and recreation
Operating grants and contributions
Capital grants and contributions
Total governmental activities program revenues
Net (expense)/revenue:

Governmental activities
General Revenues and Other Changes in Net Assets
Governmental activities:

Taxes
Property taxes
Sales and use taxes
Transient occupancy taxes
Franchise taxes
Business license tax
Unrestricted grants and contributions
Unrestricted investment earnings
Gain (loss) on sale of assets
Miscellaneous or other revenues
Total governmental activities
Change in Net Position
Source: City of Carmel-by-the-Sea Finance Department
Note: In 2012 and 2018, the City changed the
classification of its program expenses and revenues
based on operations at the time.

TABLE 2
2020 2021 2022 2023 2024
$ 5,356,174 $ 5,423,821 $ 6,494,737 $ 6,290,757 $ 7,076,239 1,214,005 1,280,518 1,789,916 1,618,884 1,888,267
9,166,804 8,968,364 10,511,669 5,427,362 10,332,228
4,410,995 4,162,030 4,961,215 4,572,764 6,462,552
2,011,886 1,539,410 1,644,498 1,677,297 2,145,612
256,698 119,562 205,869 201,277 173,958
1,081,813 819,202 1,034,150 1,101,644 1,127,937
- - - - -
- - - - -
- - - - -
268,721 387,525 168,038 148,051 87,779
- - - - -
23,767,096 22,700,432 26,810,092 21,038,036 29,294,572
211,067 165,541 478,709 177,654 189,021
1,112,512 1,142,277 1,332,086 1,268,455 1,490,531
808,559 796,471 911,902 973,358 845,411
42,395 156,838 53,251 73,206 196,965
11,793 5,544 2,239 8,485 6,655
85,060 33,140 43,922 56,919 82,238
91,528 111,093 119,646 141,471 164,514
- - - - -
- - - - -
695,186 813,139 960,670 958,933 1,064,653
- - - - 263,557
3,058,100 3,224,043 3,902,425 3,658,481 4,303,545
(20,708,996) (19,476,389) (22,907,667) (17,379,555) (24,991,027) 6,690,948 7,389,657 7,694,722 8,164,266 8,770,847
4,766,762 7,028,041 9,596,727 9,353,372 10,078,592
5,115,271 5,339,285 7,787,643 8,455,742 8,579,344
632,833 756,358 851,738 880,958 986,558
592,466 524,220 613,559 734,640 751,306
672,399 704,337 734,550 771,258 837,891
207,153 47,554 (126,009) 155,181 613,944
- - - - -
169,680 63,691 98,571 278,650 372,760
18,847,512 21,853,143 27,251,501 28,794,067 30,991,242
$ (1,861,484) $ 2,376,754 $ 4,343,834 $ 11,414,512 $ 6,000,215 Concluded
Attachment 2
City of Carmel-by-the-Sea TABLE 3
Fund Balances of Governmental Funds
Last Ten Fiscal Years
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
General Fund
Restricted $ - $ - $ - $ - $ - $ - $ - $ 942,628 $ 1,983,781 $ 3,124,794 Nonspendable - - - - - - - - 26,469 28,693
Committed 4,561,070 2,166,165 2,173,138 2,806,045 2,808,138 2,684,665 2,421,958 4,410,254 666,700 754,323 Assigned 1,747,589 3,308,636 2,448,461 1,922,008 1,926,008 1,025,194 1,025,194 2,298,939 4,180,736 4,505,124 Unassigned 1,541,150 1,738,067 4,693,897 3,278,341 4,515,984 5,048,288 9,167,717 10,017,467 15,540,715 11,893,970 Total Fund Balance 7,849,809 7,212,868 9,315,496 8,006,394 9,250,130 8,758,147 12,614,869 17,669,288 22,398,401 20,306,904 Other Governmental Funds
Restricted $ 3,903,533 $ 3,624,383 $ 5,065,310 $ 2,628,238 $ 2,817,741 $ 3,310,294 $ 4,748,736 $ 6,773,624 $ 5,536,383 $ 4,614,831 Committed 1,783,310 - - - - - - - - -
Assigned 90,158 1,146,832 1,627,098 362,034 571,657 539,863 1,596,719 3,676,972 11,096,555 Unassigned (684,400) (706,427) (1,264,197) (483) - - - - - - Total Fund Balance 5,092,601 4,064,788 3,801,113 4,254,853 3,179,775 3,881,951 5,288,599 8,370,343 9,213,355 15,711,386 Total Fund Balance $ 12,942,410 $ 11,277,656 $ 13,116,609 $ 12,261,247 $ 12,429,905 $ 12,640,098 $ 17,903,468 $ 26,039,631 $ 31,611,756 $ 36,018,290 Source: City of Carmel-by-the-Sea Finance Department
This page is intentionally blank
Attachment 2
City of Carmel-by-the-Sea TABLE 4
Last Ten Fiscal Years
2015 2016 2017 2018 2019
Revenues
Taxes $ 17,420,784 $ 18,014,079 $ 19,041,911 $ 19,652,166 $ 20,370,569 Intergovernmental revenues 874,152 294,952 365,304 454,997 1,088,044 License and permits 720,257 788,578 850,547 1,087,953 1,192,242 Contributions 686,025 314,600 323,495 318,398 314,450
Fines and forfeitures 119,152 111,930 87,154 91,813 121,470 Charges for services 905,526 712,321 440,439 1,070,999 1,261,169 Interest - - - 58,055 167,544
Rents and concessions 163,648 163,875 182,367 100,899 185,156 Other revenues 249,537 389,136 1,979,561 211,153 158,029 Total revenues 19,176,042 21,139,081 20,789,471 23,270,778 23,046,433 Expenditures
General government 3,593,094 5,045,332 5,681,103 4,696,923 5,517,516 Community Planning and Building - - - 1,128,977 1,116,689 Public Safety 6,398,876 6,264,950 7,033,862 7,024,092 7,617,310 Public Works 1,284,030 1,301,160 2,554,752 2,769,129 2,902,461 Library - - - 1,217,687 1,258,390
Community Activities - - - 141,378 179,426
Economic Revitalization 315,780 306,505 351,425 1,095,636 1,103,993 Building maintenance 1,637,602 1,525,038 1,138,983 - -
Forest, parks and beach 544,902 547,211 108,764 - -
Culture and recreation 1,999,728 2,054,872 1,448,129 - - Capital Outlay 2,396,667 4,439,279 1,877,053 1,833,014 3,778,271 Debt Service
Principal 1,046,128 898,379 914,105 934,860 950,770
Interest and fiscal charges 360,610 337,915 323,649 302,202 286,606 Total expenditures 19,577,417 22,720,641 21,431,825 21,143,898 24,711,432 Excess of revenues
over (under) expenditures 1,561,664 (1,931,170) 1,838,953 1,902,535 147,241 Other financing sources (uses)
Asset dispositions - - - - -
Long-term debt issued - - - - -
Retirement of PERS side fund - - - - -
Payments to refunded bonds escrow agent - - - - -
Interagency transfers in (out) - - - 31,000 -
Transfers in 4,927,935 6,483,069 3,405,710 13,924,490 4,581,594 Transfers out (4,927,935) (6,483,069) (3,405,710) (16,713,387) (4,681,594) Total other financing sources (uses) - - - (2,757,897) (100,000) Net change in fund balances $ 1,561,664 $ (1,931,170) $ 1,838,953 $ (855,362) $ 47,241 Total Expenditures $ 19,577,417 $ 22,720,641 $ 21,431,825 $ 21,143,898 $ 24,711,432 Capitalized Portion of Capital Outlay 2,396,667 4,311,179 1,870,844 1,900,132 3,533,858 Total Non-Capitalized Expenditures $ 17,038,681 $ 17,180,750 $ 18,409,462 $ 19,560,981 $ 19,243,766 Debt Service: Principal & Interest $ 1,406,738 $ 1,236,294 $ 1,237,754 $ 1,237,062 $ 1,237,376 Debt service as a percentage of noncapital
expenditures 8.3% 7.2% 6.7% 6.3% 6.4%
Source: City of Carmel-by-the-Sea Finance Department Cont'd Changes in Fund Balances of Governmental Funds
Note: In 2012 and 2018, the City changed the classification of its program expenditures and revenues based on operations at the time.

Attachment 2
City of Carmel-by-the-Sea
Last Ten Fiscal Years
Revenues
Taxes
Intergovernmental revenues
License and permits
Contributions
Fines and forfeitures
Charges for services
Interest
Rents and concessions
Other revenues
Total revenues
Expenditures
General government
Community Planning and Building
Public Safety
Public Works
Library
Community Activities
Economic Revitalization
Building maintenance
Forest, parks and beach
Culture and recreation
Capital Outlay
Debt Service
Principal
Interest and fiscal charges
Total expenditures
Excess of revenues
over (under) expenditures
Other financing sources (uses)
Asset dispositions
Long-term debt issued
Retirement of PERS side fund
Payments to refunded bonds escrow agent
Interagency transfers in (out)
Transfers in
Transfers out
Total other financing sources (uses)
Net change in fund balances
Total Expenditures
Capitalized Portion of Capital Outlay
Total Non-Capitalized Expenditures
Debt Service: Principal & Interest
Debt service as a percentage of noncapital
expenditures
Source: City of Carmel-by-the-Sea Finance Department
Changes in Fund Balances of Governmental Funds
Note: In 2012 and 2018, the City changed the classification of its program expenditures and revenues based on operations at the time.

TABLE 4
2020 2021 2022 2023 2024
$ 17,798,280 $ 21,037,561 $ 26,544,389 $ 29,166,646 $ 29,166,646 1,126,260 1,212,506 1,323,845 1,414,091 1,542,641
928,752 889,822 1,276,260 957,429 1,359,671
241,324 304,972 371,377 316,100 359,903
72,152 48,947 55,506 108,144 180,843
1,193,992 1,204,113 1,448,681 1,420,281 1,140,295
178,244 40,033 (115,882) 139,827 541,826
130,792 138,138 132,551 148,896 164,514
206,908 193,575 127,327 200,996 235,097
24,858,673 25,069,667 31,164,054 33,872,410 34,691,436
5,008,054 5,083,467 5,990,601 6,806,933 7,002,824
1,094,736 1,172,337 1,550,702 1,939,088 1,845,642
7,774,916 7,833,156 8,236,353 8,866,616 9,057,317
2,847,091 2,635,206 3,184,957 3,880,769 5,192,057
1,344,340 917,694 929,258 1,356,896 1,598,147
209,554 82,366 136,788 216,366 163,054
1,076,542 808,540 1,033,307 1,130,510 1,134,030
- - - - -
- - - - -
- - - - -
869,596 98,907 149,872 1,199,077 2,823,048
971,460 640,000 660,000 715,013 446,242
272,721 406,525 199,212 178,189 157,524
21,469,010 19,678,198 22,071,050 26,289,457 29,419,885
3,389,663 5,391,469 9,093,004 7,582,953 5,271,551
- - - - -
- 4,761,901 - - 72,964
- - - - -
- (4,890,000) - - -
- - - - -
3,188,456 3,210,000 5,217,994 8,021,643 10,767,151
(3,385,956) (3,210,000) (6,174,835) (8,454,803) (11,705,133) (197,500) (128,099) (956,841) (433,160) (865,018)
$ 3,192,163 $ 5,263,370 $ 8,136,163 $ 7,149,793 $ 4,406,533 $ 21,469,010 $ 19,678,198 $ 22,071,050 $ 26,289,457 $ 29,419,885 918,075 133,875 151,238 1,199,077 2,822,447
$ 21,177,574 $ 19,544,323 $ 21,919,812 $ 25,090,380 $ 26,597,438 $ 1,244,181 $ 1,046,525 $ 859,212 $ 893,202 $ 603,766

5.9% 5.4% 3.9% 3.6% 2.3%
Concluded
Attachment 2
City of Carmel-by-the-Sea TABLE 5
General Governmental Tax Revenues by Source
Last Ten Fiscal Years
Sales Transient Business
Property and Use Franchise Occupancy License Other Tax Total $ 5,127,974 $ 5,280,418 $ 430,430 $ 5,280,418 $ 606,128 $ 382,145 $ 17,107,513 $ 5,598,743 $ 4,897,325 $ 587,514 $ 5,890,538 $ 626,625 $ 413,334 $ 18,014,079 $ 5,825,889 $ 5,373,800 $ 672,554 $ 6,112,347 $ 649,525 $ 436,073 $ 19,070,188 $ 6,192,126 $ 5,486,449 $ 637,136 $ 6,329,074 $ 544,392 $ 462,989 $ 19,652,166 $ 6,524,331 $ 5,732,885 $ 636,397 $ 6,882,015 $ 594,941 $ - $ 20,370,569 $ 6,690,948 $ 4,766,762 $ 632,833 $ 5,115,271 $ 592,466 $ - $ 17,798,280 $ 7,389,657 $ 7,028,041 $ 756,358 $ 5,339,285 $ 524,220 $ - $ 21,037,561 $ 7,694,722 $ 9,596,727 $ 851,738 $ 7,787,643 $ 613,559 $ - $ 26,544,389 $ 8,164,266 $ 9,353,372 $ 880,958 $ 8,455,742 $ 734,640 $ - $ 27,588,978 $ 8,770,847 $ 10,078,591 $ 986,558 $ 8,579,344 $ 751,306 $ - $ 29,166,646 Source: City of Carmel-by-the-Sea Finance Department
Fiscal Year
Ended
June 30
2016
2018
2017
2019
2020
2015
2021
2022
2023
2024
$-
$5
$10
$15
$20
$25
$30
$35
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Millions
Year
General Governmental Tax Revenue by Year
Attachment 2
City of Carmel-by-the-Sea TABLE 6
General Fund Revenues by Source
Last Ten Fiscal Years
Fiscal Year
Ended June 30 Taxes
InterGovernmentalLicenses and
Permits
Fines and
Forfeitures
Charges for
Services
Interest, Rents
and
Concessions
Other
Revenues Total
2015 14,702,528 $ $ - $ 504,419 $ 9,246 $ 256,097 $ 161,620 $ 249,537 $ 15,883,447 2016 $ 15,124,699 $ 74,014 $ 553,602 $ 7,245 $ 57,818 $ 159,632 $ 389,136 $ 16,366,146 2017 $ 16,296,757 $ 136,367 $ 762,257 $ 8,422 $ 66,957 $ 170,631 $ 1,979,561 $ 19,420,952 2018 $ 16,753,721 $ 42,846 $ 1,087,953 $ 91,813 $ 1,056,205 $ 123,382 $ 211,133 $ 19,367,053 2019 $ 17,290,655 $ 583,573 $ 1,192,242 $ 121,470 $ 1,251,072 $ 309,418 $ 132,776 $ 20,881,206 2020 $ 17,798,280 $ 610,960 $ 928,752 $ 72,152 $ 1,177,695 $ 273,176 $ 165,131 $ 21,026,146 2021 $ 17,030,457 $ 693,873 $ 889,822 $ 48,947 $ 1,198,569 $ 164,929 $ 171,329 $ 20,197,926 2022 $ 20,573,925 $ 678,437 $ 1,276,260 $ 55,506 $ 1,446,442 $ 18,014 $ 127,327 $ 24,175,911 2023 $ 21,720,283 $ 832,011 $ 957,429 $ 108,144 $ 1,411,796 $ 259,500 $ 200,990 $ 25,490,153 2024 $ 22,780,525 $ 910,428 $ 1,359,671 $ 180,843 $ 1,133,640 $ 609,370 $ 159,296 $ 27,133,773 Source: City of Carmel-by-the-Sea Finance Department
$-
$5
$10
$15
$20
$25
$30
Millions
Total General Fund Revenues
Attachment 2
City of Carmel-by-the-Sea TABLE 7
Net Assessed Value of Taxable Property
Last Ten Fiscal Years
Total Total
Assessed Direct Tax
Secured Unsecured Value Rate
$ 3,309,856,089 $ 26,813,656 $ 3,336,669,745 1.00%
$ 3,569,065,524 $ 26,719,717 $ 3,595,785,241 1.00%
$ 3,766,258,441 $ 26,280,598 $ 3,792,539,039 1.00%
$ 3,999,182,757 $ 25,708,168 $ 4,024,890,925 1.00%
$ 4,220,683,852 $ 26,668,954 $ 4,247,352,806 1.00%
$ 4,446,041,301 $ 28,251,679 $ 4,474,292,980 1.00%
$ 4,686,463,940 $ 31,785,264 $ 4,718,249,204 1.00%
$ 4,933,554,941 $ 31,058,835 $ 4,964,613,776 1.00%
$ 5,322,503,952 $ 33,821,025 $ 5,356,324,977 1.00%
$ 5,680,286,869 $ 42,938,652 $ 5,723,225,521 1.00%
Notes:

Total Direct Tax Rate is from Table 8. Rates are based on a $100 of taxable value.

Exempt values are not included in Total.

Source: County of Monterey Assessors Office
2015
Fiscal Year
Ended
June 30
2022
2023
With the passage of a constitutional amendment (Proposition 13) and subsequently enacted State legislation, property is assessed according to a base year rather than on a percentage of market value. Accordingly, a reliable estimate of actual value of taxable property within the City is not possible. 2016
2017
2018
2019
2020
2021
2024
$-
$1.0
$2.0
$3.0
$4.0
$5.0
$6.0
$7.0
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Billions
Total Assessed Value
Attachment 2
City of Carmel-by-the-Sea TABLE 8
Direct and Overlapping Property Tax Rates
Last Ten Fiscal Years
(Rate per $100 of Taxable Value)
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Direct Rates: (1) 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 Overlapping Rates: (2)
Carmel Unified 0.014 0.014 0.014 0.014 0.016 0.015 0.010 0.015 0.007 0.022 Monterey Peninsula Community College 0.022 0.022 0.022 0.022 0.021 0.021 0.027 0.032 0.030 0.029 Total Direct and Overlapping Rate 1.036 1.036 1.036 1.036 1.037 1.036 1.037 1.047 1.037 1.051 City Share of 1% Levy per Prop. 13 (3) 0.904 0.918 0.925 0.929 0.919 0.906 0.918 0.929 0.929 0.932 Notes:
1 2
3 Source: County of Monterey Assessors Office
Source: County of Monterey CAFR
The passage of a constitutional amendment (Proposition 13) in June 1978 limits the property tax rate to a base of $1.00 per $100.00. The $1.00 rate is levied by the County and apportioned to local agencies according to a formula prescribed by the California legislature.

Overlapping rates are those of entities that apply to property owners within the City of Pacific Grove. Not all overlapping rates apply to all property owners (e.g., the rates for school districts apply only to the proportion of the city's property owners whose property is located within the geographic boundaries of the school district).

This is the percentage of $1 countywide tax levy
Attachment 2
City of Carmel-by-the-Sea TABLE 9
Principal Property Tax Owners
Current Year and Nine Years Ago
Percentage Percentage
of Total of Total
Assessed Assessed Assessed Assessed
Tax Owner Valuation Rank Valuation Valuation Rank Valuation OWRF CARMEL LLC $ 62,658,000 1 1.09% $ 53,178,337 1 1.59% ESPERANZA CARMEL COMMERCIAL LLC $ 58,085,168 2 1.01% na na HINES JEFFREY C $ 40,035,970 3 0.70% na na
PAUL ANDREW M $ 31,508,098 4 0.55% na na
ESPERANZA CARMEL LLC $ 29,456,893 5 0.51% na na
GUNNER RICHARD V & MARGARET S GUNNER TRS $ 23,050,752 6 0.40% $ 19,371,712 3 0.58% LA PLAYA CARMEL HOTEL LLC $ 18,828,219 7 0.33% $ 16,600,697 2 0.50% LPP OCEAN PROP LLC $ 22,165,348 8 0.39% na na
LPP JUNIPERO PROP LLC $ 17,632,095 9 0.31% na na
HOSEIT MANAGEMENT LLC ET AL $ 14,970,464 10 0.26% na na LEVETT FAMILY PROPERTIES $ 11,727,210 4 0.35%
CYPRESS INN INVESTORS $ 11,665,774 5 0.35%
PANATTONI CARL D TR $ 8,122,932 6 0.24%
SCHOTT STEPHEN C & PATRICIA A TRS $ 8,395,300 7 0.25%
MARINA SQUARE PARTNERS LP $ 9,334,432 8 0.28%
HOSEIT MAX H ET AL $ 8,435,814 9 0.25%
DRAPER MICHAEL R ET AL $ 8,539,247 10 0.26%
Totals $ 318,391,007 5.56% 155,371,455 $ 4.66%
Total assessed value $ 5,723,225,521 $ 3,336,669,745
Source: County of Monterey Assessors Office
na= not available
2024 2015
Attachment 2
City of Carmel-by-the-Sea Table 10
Property Tax Levies and Collections
Last Ten Fiscal Years
Percent Supplemental Delinquent
Total Tax Current Tax of Levy Tax Tax Total
Levy Collections 1 Collected Collections Collections Collections $ 5,127,974 $ 4,994,647 97.4% $ 117,309 $ 74,547 $ 5,186,503 $ 5,598,743 $ 5,453,176 97.4% $ 106,567 $ 80,397 $ 5,640,140 $ 5,825,889 $ 5,691,894 97.7% $ 124,505 $ 76,128 $ 5,892,528 $ 6,192,126 $ 6,049,707 97.7% $ 131,185 $ 80,213 $ 6,261,105 $ 6,524,331 $ 6,242,449 95.7% $ 107,412 $ 64,523 $ 6,414,384 $ 6,690,948 $ 7,219,695 107.9% $ 118,629 $ 71,261 $ 7,409,584 $ 7,389,657 $ 6,712,274 90.8% $ 144,856 $ 85,217 $ 6,942,347 $ 7,694,722 $ 7,612,601 98.9% $ 174,951 $ 83,468 $ 7,871,020 $ 8,164,266 $ 7,603,636 93.1% $ 198,307 $ 53,537 $ 7,855,480 $ 8,770,847 $ 8,169,333 93.1% $ 188,880 $ 128,327 $ 8,486,540 Source: County of Monterey Auditor-Controller's Office
City of Carmel-by-the-Sea Finance Department
2024
Fiscal
Year
Ended
June 30
2018
2015
2016
2017
2020
2021
2022
2023
2019
$-
$1
$2
$3
$4
$5
$6
$7
$8
$9
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Millions
Total Tax Collections
Attachment 2
City of Carmel-by-the-Sea Table 11
Ratios of Outstanding Debt By Type
Last Ten Fiscal Years
Pension Lease NGEN Total Median Percentage Debt
Obligation Revenue Public Safety Financed Outstanding Household of Household per Bonds Bonds Joint Agree Purchases SBITAs Debt Income Income Population Capita $ 5,005,000 $ 6,435,000 $ 264,625 $ - $ - $ 11,704,625 $ 74,758 0.58% 3,886 2,780 $ 4,420,000 $ 6,140,000 $ 246,246 $ - $ - $ 10,806,246 $ 81,607 0.64% 3,903 3,012 $ 3,825,000 $ 5,840,000 $ 227,141 $ - $ - $ 9,892,141 $ 87,532 0.76% 3,897 2,769 $ 3,220,000 $ 5,530,000 $ 207,281 $ - $ - $ 8,957,281 $ 87,532 0.88% 3,897 2,538 $ 2,605,000 $ 5,215,000 $ 186,511 $ - $ - $ 8,006,511 $ 87,532 0.98% 3,987 2,299 $ 1,980,000 $ 4,890,000 $ 157,741 $ - $ - $ 7,027,741 $ 98,638 1.09% 3,949 2,008 $ 1,340,000 $ 4,761,901 $ 165,051 $ - $ - $ 6,266,952 $ 98,188 1.40% 4,023 1,780 $ 680,000 $ 4,733,004 $ 165,051 $ - $ - $ 5,578,055 $ 101,696 1.82% 3,041 1,834 $ - $ 4,704,107 $ 15,033 $ 156,440 $ 159,154 $ 5,034,734 $ 100,365 1.82% 3,105 1,621 $ - $ 4,190,175 $ - $ 132,334 $ 255,909 $ 4,578,418 $ 126,406 1.82% 3,122 1,467

Source: City of Carmel-by-the-Sea Finance Department
Demographics from Table 16
2018
2019
2020
2021
2022
2023
2016
2017
Governmental Activities
2024
Fiscal Year
June 30
Ending
2015
Attachment 2
City of Carmel-by-the-Sea TABLE 12
Ratios of Net General Bonded Debt Outstanding
Last Ten Fiscal Years
Fiscal Less: Amount
Year General Lease Available Net Percentage Debt
Ended Obligation Revenue in Debt Obligation of Assessed Per Assessed June 30 Bonds Bonds Service Fund Total Value Capita Value Population 2015 $ 5,005,000 $ 6,435,000 $ 400,015 $ 11,039,985 0.33% 2,841 $ $ 3,336,669,745 3,886 2016 $ 4,420,000 $ 6,140,000 $ 400,381 $ 10,159,619 0.28% 2,603 $ $ 3,595,785,241 3,903 2017 $ 3,825,000 $ 5,840,000 $ 400,582 $ 9,264,418 0.24% 2,377 $ $ 3,792,539,039 3,897 2018 $ 3,220,000 $ 5,530,000 $ 405,742 $ 8,344,258 0.21% 2,141 $ $ 4,024,890,925 3,897 2019 $ 2,605,000 $ 5,215,000 $ 402,335 $ 7,417,665 0.17% 1,860 $ $ 4,247,352,806 3,987 2020 $ 1,980,000 $ 4,890,000 $ 400,381 $ 6,469,619 0.14% 1,638 $ $ 4,474,292,980 3,949 2021 $ 1,340,000 $ 4,761,901 $ 393,132 $ 5,708,769 0.12% 1,419 $ $ 4,718,249,204 4,023 2022 $ 680,000 $ 4,733,004 $ 416,577 $ 4,996,427 0.10% 1,643 $ $ 4,964,613,776 3,041 2023 $ - $ 4,704,107 $ 26,805 $ 4,677,302 0.09% 1,506 $ $ 5,356,324,977 3,105 2024 $ - $ 4,190,175 $ 34,807 $ 4,155,368 0.07% 1,331 $ $ 5,723,225,521 3,122 Source: California Department of Finance
City of Carmel-by-the-Sea Finance Department
$-
$2,000,000
$4,000,000
$6,000,000
$8,000,000
$10,000,000
$12,000,000
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
General Bonded Debt Outstanding
Attachment 2
City of Carmel-by-the-Sea TABLE 13
Computation of Direct and Overlapping Debt
2023-2024 Assessed Value $ 5,723,225,521
Total Percentage Amount
Debt Applicable Applicable
Outstanding to City (1) to City
DIRECT AND OVERLAPPING TAX AND ASSESSMENT DEBT:

Monterey Peninsula Community College District $ 105,055,022 11.671% $ 12,260,972 Carmel Unified School District 13,402,093 24.220% 3,245,987 - -
-
Total Direct and Overlapping Tax and Assessment Debt $ 118,457,115 $ 15,506,959 DIRECT AND OVERLAPPING GENERAL FUND DEBT:

Monterey County General Fund Obligations 109,814,997 6.436% 7,067,693 Monterey County Judgment Obligations 4,423,190 6.436% 284,677 Monterey County Water Resources Agency Gen Fund Debt 17,895,000 6.436% 1,151,722 City of Carmel-by-the-Sea General Fund Obligations 4,446,084 100.000% 4,446,084 Total Gross Direct and Overlapping General Fund Debt 12,950,176 TOTAL NET DIRECT AND OVERALAPPING GENERAL FUND DEBT $ 12,950,176 TOTAL DIRECT DEBT $ 4,446,084
TOTAL GROSS OVERLAPPING DEBT $ 24,011,051
TOTAL NET OVERLAPPING DEBT $ 24,011,051
GROSS COMBINED TOTAL DEBT 2
$ 28,457,135
NET COMBINED TOTAL DEBT $ 28,457,135
Notes:
(1)
(2)
Ratios to 2021-22 Assessed Valuation:

Direct Debt
Total Direct and Overlapping Tax and Assessment Debt 0.27% Total Direct Debt 0.08%
Gross Combined Total Debt 0.50%
Net Combined Total Debt 0.50%
Source: MuniServices, LLC
Excludes tax and revenue anticipation notes, enterprise revenue, mortgage revenue, and tax allocation bonds and non-bonded capital lease obligations.

June 30, 2024
The percentage of overlapping debt applicable to the City is estimated using taxable assessed property value. Applicable percentages were estimated by determining the portion of the overlapping district's assessed value that is within the boundaries of the City divided by the district's total taxable assessed value.

Attachment 2
City of Carmel-by-the-Sea TABLE 14
Legal Debt Margin Information
Last Ten Fiscal Years
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Debt limit $ 125,125,115 $ 134,841,947 $ 142,220,214 $ 150,933,410 $ 159,275,730 $ 167,785,987 $ 176,934,345 $ 186,173,017 200,862,187 214,620,957 Total net debt applicable to limit - - - - - - - - - -
Legal debt margin $ 125,125,115 $ 134,841,947 $ 142,220,214 $ 150,933,410 $ 159,275,730 $ 167,785,987 $ 176,934,345 $ 186,173,017 $ 200,862,187 $ 214,620,957 Total net debt applicable to the limit
as a percentage of debt limit 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% Notes: Legal Debt Margin Calculation:

Total assessed value $ 5,723,225,521
Debt limit (3.75% of total assessed value) 214,620,957
Debt applicable to limit:

General obligation bonds -
Less: Amount available in debt service fund
Source: City of Carmel by the Sea Finance Department for repayment of bonds - Total net debt applicable to limit -
Legal debt margin $ 214,620,957
California Government Code, Section 43605, sets the debt limit at 15% of the total assessed valuation of all real personal property within the city, when assessed values were at 25% of full market value. This has changed to 100% of full market value, with the rate adjusting to 1/4 of 15%.

City of Carmel-by-the-Sea TABLE 15
Pledged-Revenue Coverage
Last Ten Fiscal Years
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Sunset Center Certificates of Participation
General City Revenues $ 21,139,081 $ 22,406,471 $ 21,653,778 $ 23,167,967 $ 24,061,114 $ 21,424,311 $ 26,120,715 $ 27,251,501 $ 28,794,067 $ 30,991,242 Less: operating expenses (16,332,293) (17,552,771) (18,716,522) (19,407,105) (20,069,662) (20,883,375) (18,148,230) (22,576,272) (20,889,985) (29,206,793) Net available revenue 4,806,788 4,853,700 2,937,256 3,760,862 3,991,452 540,936 7,972,485 4,675,229 7,904,082 1,784,449 Debt service:

Principal 290,000 295,000 300,000 310,000 315,000 325,000 - - - 355,000 Interest 213,963 208,063 202,063 198,188 190,375 173,320 106,957 155,798 155,800 147,975 Total 503,963 503,063 502,063 508,188 505,375 498,320 106,957 155,798 155,800 502,975 Coverage 9.54 9.65 5.85 7.40 7.90 1.09 74.54 30.01 50.73 3.55 Pension Obligation Bonds
General City Revenues $ 21,139,081 $ 22,406,471 $ 21,653,778 $ 23,167,967 $ 24,061,114 $ 21,424,311 $ 26,120,715 $ 27,251,501 $ 28,794,067 $ 30,991,242 Less: operating expenses (16,332,293) -17,552,771 (18,716,522) (19,407,105) (20,069,662) (20,883,375) (18,148,230) (22,576,272) (20,889,985) (29,206,793) Net available revenue 4,806,788 4,853,700 2,937,256 3,760,862 3,991,452 540,936 7,972,485 4,675,229 7,904,082 1,784,449 Debt service:

Principal 580,000 585,000 595,000 605,000 615,000 625,000 640,000 660,000 680,000 - Interest 118,243 112,443 105,131 96,206 85,120 71,892 57,666 40,414 21,080 - Total 698,243 697,443 700,131 701,206 700,120 696,892 697,666 700,414 701,080 - Coverage 6.88 6.96 4.20 5.36 4.91 0.78 11.43 6.67 11.27 - Combined coverage 4.00 4.04 2.44 3.11 2.85 3.31 3.31 5.46 9.22 3.55 Source: City of Carmel-by-the-Sea Finance Department
Details regarding the city's outstanding debt can be found in the notes to the financial statements. Operating expenses do not include interest or depreciation.

City of Carmel-by-the-Sea TABLE 16
Demographic and Economic Statistics
Last Ten Fiscal Years
Median Per Capita % of Population % of Population
Unemployment Household Family Median 25+ with High 25+ with Population1 Rate2
Income Income3Age School Diploma Bachelor's Degree
3,886 1.40% $ 74,758 $ 49,425 54.3 97.30% 58.60%
3,903 1.30% $ 81,607 $ 51,778 53.1 97.30% 63.70%
3,897 1.20% $ 87,532 $ 57,307 55.8 96.90% 64.70%
3,897 1.10% $ 87,532 $ 57,307 55.8 96.90% 64.70%
3,987 1.10% $ 87,532 $ 57,307 55.8 96.90% # 64.80%
3,949 2.80% $ 81,607 $ 51,778 61.3 97.30% 63.70%
4,023 1.80% $ 98,188 $ 53,961 59.6 82.72% 55.03%
3,041 1.00% $ 101,696 $ 55,889 65.0 95.80% 74.70%
3,105 1.20% $ 100,365 $ 76,590 63.6 95.80% 74.70%
3,122 1.30% $ 126,406 $ 84,508 65.0 95.50% 76.00%
Notes:

A For calendar year ending during the fiscal year.

B Total Personal Income is presented in thousands.

Source: 1
California Department of Finance
2 California Employment Development Department
3 U.S. Department of Commerce, Bureau of Economic Analysis 2024
2023
2017
2018
2019
2020
2021
2022
2016
Fiscal Year
Ended
June 30
2015
$10,000
$20,000
$30,000
$40,000
$50,000
$60,000
$70,000
$80,000
$90,000
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024

0.00%

0.50%

1.00%

1.50%

2.00%

2.50%

3.00%
Per Capita Personal Income
Unemployment Rate
Per Capita Personal Income and Unemployment Rate
Unemployment Rate2 Per Capita Family Income3
Attachment 2
City of Carmel-by-the-Sea TABLE 17
Principal Employers
Current Year and Nine Years Ago (1)
Percentage Percentage
Number of of Total Number of of Total
Employees Rank Employment Employees Rank Employment
Employer: .

Cypress Inn 89 1 4.68% Unavailable 1 n/a
City of Carmel 80 2 4.21% Unavailable 2 n/a
La Playa Hotel 71 3 3.74% Unavailable 3 n/a
La Bicyclette 68 4 3.58% Unavailable 4 n/a
Grasings 56 5 2.95% Unavailable 5 n/a
Casanova 52 6 2.74% Unavailable 6 n/a
Il Fornaio 49 7 2.58% Unavailable 7 n/a
Alvarado Street Brewery & Bistro 48 8 2.53% Unavailable 8 n/a Terry's Lounge 48 8 2.53% Unavailable 9 n/a
Dametra 45 9 2.37% Unavailable 10 n/a
Carmel Beach Hotel & Spa 45 9 2.37%
Totals 651 34.26% - -
Total employment 1,900 na
Notes: This is the second year that the City is including a statistical section. Due to the small size of the City, employee counts for prior years were not available through a database or third party. Prior year information will be included as the City reports this information in forthcoming years.

Source: City of Carmel-by-the-Sea Finance Department
2024 2015
Fiscal Year Ended June 30
Attachment 2
City of Carmel-by-the-Sea TABLE 18
Number of City Employees by Department
Last Ten Fiscal Years
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Departments:

General Government 18.20 17.60 18.60 16.20 15.70 15.66 15.00 15.00 15.00 15.00 Public Safety 28.80 30.70 30.70 31.70 32.00 32.00 25.00 24.00 24.00 24.00 Public Works 14.00 18.00 21.00 21.00 21.00 21.00 15.00 18.00 20.00 21.00 Community Activities 1.70 1.70 1.50 1.40 1.50 1.50 0.50 1.00 0.50 0.50 Library 11.60 12.40 12.40 12.80 14.00 13.98 5.50 11.00 10.50 10.50 Community Plng. and Bldg. 6.97 7.00 7.00 9.00 9.00 9.00 7.00 11.00 10.00 9.00 Totals 81.27 87.40 91.20 92.10 93.20 93.14 68.00 80.00 80.00 80.00 Source: City of Carmel-by-the-Sea Finance Department
0 10
20 30
40 50
60 70
80 90
100
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Fiscal Year
Total Number of City Employees
Attachment 2
City of Carmel-by-the-Sea TABLE 19
Operating Indicators By Function
Last Ten Fiscal Years
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Function:

Police
Calls for service 14,813 14,360 13,701 12,674 13,252 11,385 8,778 8,959 9,709 10,587 Fire
Calls for service 851 925 856 843 1,006 803 754 794 951 821 Inspections 822 636 346 504 112 184 107 88 135 93
Public Works
Potholes patched 18 52 25 20 25 50 35 40
Tree permits Issued 166 90 177 216 183 305 242
Calls for service 300 250 500 750 433 1,455 6,935 7,834 Road asphalt used 48 34 28 32 44 28 43
Trees planted 32 82 82 59 57 139 254 216
Library
Circulation of library materials 140,848 114,137 106,976 99,802 104,456 104,456 84,810 55,414 127,777 164,719 Reference questions 24,318 20,233 19,252 16,276 15,789 15,789 13,579 9,062 14,199 16,074 Community Activities
Special Event permits 45 30 81 75 42 35 5 31 55 24
Community Development
Building Permits 500 422 416 580 590 677 446 411 458 502 Architectural Approvals 466 524 468 440 452 402 280 171 163 181 Administration
Business Licenses (All businesses) 1350 1472 1615 1836 2187 2276 1,984 1,884 1,834 1,849 Public Records Requests (Calendar Yr) 147 127 160 184 187 199 248 101 215 125 Source: City of Carmel-by-the-Sea Departments
Attachment 2
City of Carmel-by-the-Sea TABLE 20
Capital Asset Statistics By Function
Last Ten Fiscal Years
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Function:

General Government
Number of buildings 1 1 1 1 1 1 1 1 1 1
Public Safety
Police
Stations 1 1 1 1 1 1 1 1 1 1
Parking meters 1 1 1 1 1 1 1 1 1 1
Fire stations 1 1 1 1 1 1 1 1 1 1
Public Works
Miles of paved streets 27 27 27 27 27 27 27 27 27 27
Parking lots 3 3 3 3 3 3 3 3 3 3
Fleet Vehicles (City-wide) 43 43 43 43 45 41 42 44 44 48 Recreation
Parks 10 10 10 10 10 10 10 10 10 10
Playgrounds 1 1 1 1 1 1 1 1 1 1
Tennis courts 2 2 2 2 2 2 2 2 2 2
Library
Library facilities 2 2 2 2 2 2 2 2 2 2
Source: City of Carmel-by-the-Sea Departments
Attachment 2

OTHER INDEPENDENT
AUDITOR’S REPORTS
Attachment 2
16450 Monterey Road, Ste. #5, Morgan Hill, CA 95037
Tel: 408-217-8749 • E-Fax: 408-872-4159
[email protected] • www.cnallp.com
INDEPENDENT AUDITOR’S REPORT ON INTERNAL CONTROL OVER FINANCIAL

REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF

FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH

GOVERNMENT AUDITING STANDARDS
To the Honorable Mayor and Members of the
City Council of the City of Carmel-By-The-Sea
Carmel-by-the-Sea, California
We have audited, in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the City of Carmel-By-The-Sea (the “City”) as of and for the year ended June 30, 2024, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements, and have issued our report thereon dated January 24, 2025.

Internal Control over Financial Reporting
In planning and performing our audit of the financial statements, we considered the City’s internal control over financial reporting (internal control) as a basis for designing the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, we do not express an opinion on the effectiveness of the City’s internal control.

A deficiency in internal control exists when the design or operation of a control does not allow management or employees in the normal course of performing their assigned functions, to prevent, or detect and correct misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance.

Our consideration of internal control over financial reporting was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over financial reporting that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control over financial reporting that we consider to be material weaknesses. However, material weaknesses and significant deficiencies may exist that were not identified.

Compliance and Other Matters
As part of obtaining reasonable assurance about whether the City’s financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statements. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not Attachment 2
16450 Monterey Road, Ste. #5, Morgan Hill, CA 95037
Tel: 408-217-8749 • E-Fax: 408-872-4159
[email protected] • www.cnallp.com
express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards.

Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the entity’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose.

January 24, 2025
Morgan Hill, California
Attachment 2

CITY OF CARMEL-BY-THE-SEA

CITY COUNCIL
Staff Report
February 3, 2025

ORDERS OF BUSINESS
TO: Honorable Mayor and City Council Members
SUBMITTED BY: Brandon Swanson, Assistant City Administrator APPROVED BY: Chip Rerig, City Administrator
SUBJECT:

Resolution 2025-014 for a Professional Services Agreement with Conti, LLC, with a not to exceed value of $110,543, to complete Audio/Visual upgrades to the Council Chambers (Estimated time - 10 min)
RECOMMENDATION:

Adopt Resolution 2025-014 (Attachment 1) authorizing the City Administrator to execute the following:

1. A Professional Services Agreement with Conti LLC for the proposed upgrades to the Council Chambers AV systems, in the amount of $103,333.

2. A Purchase Order with OuttaTheWoods Custom Woodworking for the installation of flush-mount monitors and construction of a new Clerk’s station, in the amount of $7,210.

BACKGROUND/SUMMARY:

EXECUTIVE SUMMARY
City Council is being asked to approve a contract with Conti LLC for upgrades to the Council Chambers' audiovisual (AV) systems. The proposed upgrades are detailed in Conti's scope of work and cost proposal, which includes modernizing the AV technology to enhance the functionality, accessibility, and overall experience of the Council Chambers during public meetings. Additionally, the project includes supplemental upgrades to install flush-mount monitors retrofitted into the dais and construction of a new Clerk’s station off of the dias.

BACKGROUND/SUMMARY
The Council Chambers AV systems are integral to facilitating public meetings, ensuring accessibility, and enhancing transparency. Over time, the existing AV equipment has become outdated and insufficient to meet the needs of Council meetings and public expectations.

In addition, the COVID-19 pandemic has highlighted the need for modern, robust technology to support virtual meetings (e.g., Zoom) and hybrid formats, which have become the norm for public engagement. The upgrades will ensure the Council Chambers can accommodate these virtual and hybrid meetings seamlessly, improving accessibility for the public and staff.

Conti LLC has provided a proposal (Attachment 2) to upgrade the AV systems. The scope includes:

1. Enhanced sound processing and audio quality in the chambers.

2. Installation of overhead microphone arrays to allow for discussion from the “floor” of the chambers.

3. Upgraded assistive listening systems.

4. New monitors.

5. Replace podium mic to allow for various height speakers.

6. Allow for two-way communication between chambers and production desk in City Hall basement

7. Replacement of outdated cameras with higher-quality units.

8. Integration of high definition laser projector for presentations.

9. Improved video and audio transmission, including to the City Hall lobby.

10. Upgraded touch panels, monitors, and presentation capabilities.

To further enhance functionality, staff proposes adding flush-mount monitors to the dais and constructing a new Clerk’s station, located off the dias, also with a flush-mount monitor. A phased approach will be used for installing the flush-mount monitors, beginning with the new Clerk’s station to ensure the system operates as expected before modifying the dais.

The total cost for these additional upgrades, as outlined in a proposal from OuttaTheWoods Custom Woodworking, is $7,210 (Attachment 3). It should be noted that given the cost of this work, a Professional Services Agreement does not need to be approved by Council. Typically, this would only require a purchase order be approved under the City Administrator’s purchasing authority. However, this part of the project has been included for the Council to consider as a whole.

The proposed upgrades align with the City’s goals of improving public engagement and operational efficiency during meetings.

STAFF ANALYSIS
The proposed upgrades will modernize the Council Chambers to meet current technological standards, address accessibility requirements, and improve the overall experience for Council members, staff, and the public. The addition of flush-mount monitors and a custom Clerk’s station will further enhance the usability and aesthetics of the chambers. The phased approach for flush-mount monitors ensures that functionality is verified with the Clerk’s station before expanding the installations to the dais, minimizing potential issues and disruptions.

SOLE-SOURCE RECOMMENDATION
Staff recommends adopting the attached Resolution (Attachment 1) awarding this contract to Conti LLC as a sole-source provider based on Carmel Municipal Code Section 3.12.180(C), which allows sole-source procurement when “there is only one vendor who can supply the requirements of a purchase.” Conti LLC was the original installer of the Council Chambers AV system, giving them unique knowledge of the existing infrastructure and requirements.

In addition, the Municipal Code also states that sole-source procurement may be justified when “it is in the City’s best interest to negotiate with and select a vendor that is best qualified and that offers the best value to the City.” Conti’s familiarity with the existing system and their detailed, cost-effective proposal makes them the best qualified vendor to perform the upgrades. This ensures the project is completed efficiently, minimizes disruptions, and avoids potential complications associated with hiring a different vendor unfamiliar with the current setup.

FISCAL IMPACT:

The total cost of the project, including Conti’s AV upgrades ($103,333) and OuttaTheWoods’ work on the Clerk’s station and dais monitors ($7,210), is $110,543. The approved budget for this project had an allocation of $80,000; however, a budget transfer within the IT budget will be executed to cover the full cost. This ensures no additional funding outside of the approved fiscal year budget will be required.

PRIOR CITY COUNCIL ACTION:

None.

ATTACHMENTS:

Attachment 1) Resolution 2025-014
Attachment 2) PSA with Exhibits for Conti, LLC
Attachment 3) Outtathewoods Proposal

CITY OF CARMEL-BY-THE-SEA

CITY COUNCIL
RESOLUTION NO. 2025-014

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

AUTHORIZING THE CITY ADMINISTRATOR TO EXECUTE PROFESSIONAL SERVICES

AGREEMENTS WITH CONTI LLC AND A PURCHASE ORDER WITH OUTTA THE WOODS

CUSTOM WOODWORKING TO COMPLETE UPGRADES TO THE COUNCIL CHAMBERS WITH A TOTAL NOT TO EXCEED AMOUNT OF $110,543
WHEREAS, the City Council Chambers serve as the hub for public meetings, fostering transparency, accessibility, and engagement with the community; and WHEREAS, the existing audio-visual (AV) systems in the Council Chambers have become outdated and insufficient to meet modern technological needs, including virtual and hybrid meeting capabilities; and
WHEREAS, Conti LLC, the original installer of the Council Chambers AV system, possesses the specialized knowledge of the existing infrastructure and requirements, making them uniquely qualified to perform the proposed upgrades; and
WHEREAS, pursuant to section 3.12.180(C) of the City’s Purchasing Ordinance, a solesource procurement is justified when there is only one vendor qualified to supply the required services, and when the selection of that vendor provides the best value to the City.

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

1. Authorize the City Administrator to execute a professional services agreement with Conti LLC for a not-to-exceed amount of $103,333 to complete upgrades to the Council Chambers A/V systems.

2. Authorize the City Administrator to execute a Purchase Order with OuttaTheWoods Custom Woodworking for a not-to-exceed amount of $7,210 to install flush-mount monitors and construct a new Clerk’s station.

PASSED AND ADOPTED BY THE CITY COUNCIL OF THE CITY OF CARMEL-BY-THE-SEA this 3rd day of February, 2025, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

APPROVED: ATTEST:
______________________________ _________________________________ Dale Byrne, Mayor Nova Romero, MMC, City Clerk
Attachment 1
1 PROFESSIONAL SERVICES AGREEMENT
for the
Council Chambers 2025 Audio/Visual Upgrade Project
Agreement # IT-CONTI-49-24-25
THIS AGREEMENT is executed this ____ day of _____________, 20___, by and between the City of Carmel-By-The-Sea, a municipal corporation, (hereinafter "City"), and Conti, LLC, (hereinafter "Consultant"), collectively referred to herein as the “parties”.

WHEREAS, the City wishes to engage Consultant to perform the services required by this Agreement; and
WHEREAS, Consultant is willing to render such professional services, as hereinafter defined, on the following terms and conditions; and
WHEREAS, Consultant represents that it is trained, experienced and competent and holds all necessary licenses and certifications to perform the services required by this Agreement.

NOW, THEREFORE, in consideration of the terms and conditions herein contained, the parties hereby covenant and agree as follows:

1. SERVICES
A. Scope of Services. Consultant agrees to provide to the City, as the scope of services (“Scope of Services”) under this Agreement, the following: for upgrades to the Council Chambers' audiovisual (AV) systems. The Scope of Services is attached hereto as Exhibit “A.” The Scope of Services under this Agreement should include, but is not limited to, a project description, project phases, task descriptions, identification of key personnel, identification of subconsultants, their key personnel and general description of services that will be performed, as further set forth in this Agreement and attachments hereto. Consultant agrees to all of the following:
i. Consultant will furnish all of the labor, technical, administrative, professional and other personnel, all supplies and materials, equipment, printing, vehicles, transportation, office space and facilities, and all tests, testing and analyses, calculations, and all other means whatsoever, except as otherwise expressly specified in this Agreement, necessary to perform the services required of Consultant under this Agreement. ii. Consultant’s designated representative(s) who are authorized to act on its behalf and to make all decisions in connection with the performance of services under this Agreement are listed in Exhibit “A,“ which is made a part of this Agreement. iii. Consultant must make every reasonable effort to maintain the stability and continuity of Consultant’s key personnel and subcontractors, if any, listed in Exhibit B to perform the services required under this Agreement. Consultant must notify City and obtain City’s written approval with respect of any changes in key personnel prior to the performance of any services by replacement personnel.

Attachment 2
2 iv. Consultant must obtain City’s prior written approval before utilizing any subcontractors to perform any services under this Agreement. This written approval must include the identity of the subcontractor and the terms of compensation. v. Consultant represents that it has the qualifications, experience and facilities necessary to properly perform the services required under this Agreement in a thorough, competent and professional manner. Consultant will at all times faithfully, competently and to the best of its ability, experience and talent, perform all services described in this Agreement.

In meeting its obligations under this Agreement, Consultant must employ, at a minimum, generally accepted standards and practices utilized by persons engaged in providing services similar to those required of Consultant under this Agreement. vi. City may inspect and accept or reject any of Consultant’s work under this Agreement, either during performance or when completed. Acceptance of any of Consultant’s work by City will not constitute a waiver of any of the provisions of this Agreement. vii. The Consultant must maintain any work site in the City in a safe condition, free of hazards to persons and property resulting from its operations.

B. Change Orders.
i. Agreements and Change Orders exceeding Fifty-Nine Thousand Nine Hundred and Ninety-Nine Dollars ($59,999.00) require City Council approval to be valid. ii. The City may order changes to the Scope of Services, consisting of additions, deletions, or other revisions, and the compensation to be paid Consultant will be adjusted accordingly.

All such changes must be authorized in writing, and executed by Consultant and City. The cost or credit to City resulting from changes in the services will be determined by the written agreement between the parties. However, any increase in compensation beyond the compensation limit amount approved by the City Council must be authorized in advance by the City Council and any service provided by Consultant in the absence of such approval are at Consultant’s sole risk.
iii. Consultant will not be compensated for any services rendered in connection with its performance of this Agreement that are in addition to or outside of those set forth in the Scope of Services or otherwise required by this Agreement, unless such additional services are authorized in advance and in writing by City. iv. If Consultant believes that additional services are needed to complete the Scope of Services, Consultant will provide the City Administrator with written notification describing the proposed additional services, the reasons for such services, and a detailed proposal regarding cost.

C. Familiarity with Services and Site.
i. By executing this Agreement, Consultant represents that Consultant:
a. has thoroughly investigated and considered the Scope of Services to be performed; Attachment 2
3 b. has carefully considered how the services should be performed; c. understands the facilities, difficulties, and restrictions attending performance of the services under this Agreement; and
d. possesses all licenses required under local, state or federal law to perform the services contemplated by this Agreement, and will maintain all required licenses during the performance of this Agreement.
ii. If services involve work upon any site, Consultant has or will investigate the site and is or will be fully acquainted with the conditions there existing, before commencing its services.

Should Consultant discover any latent or unknown conditions that may materially affect the performance of services, Consultant will immediately inform City of such fact and will not proceed except at Consultant’s own risk until written instructions are received from City.

2. COMPENSATION
A. Total Fee. Subject to any limitations set forth in this Agreement, the City agrees to pay and Consultant agreesto accept as full and fair consideration for the performance of this Agreement, fees as set forth in Exhibit “A”, in a base amount not-to-exceed One Hundred and Three Thousand Three Hundred and Thirty Three Dollars and zero cents ($103,333.00). Such compensation is the “Maximum Authorized Expenditure” under this Agreement. Fees include, but is not limited to, fees for each phase and task, not-to-exceed total fee, hourly rates, reimbursable rates and subconsultant mark-up rates. The use of subconsultants will not be considered a reimbursable expense, and such costs must be applied towards the approved budgeted amount. Payment of any compensation to Consultant is contingent upon performance of the terms and conditions of this Agreement to the satisfaction of the City. If the City determines that the Services set forth in the written invoice have not performed in accordance with the terms of this Agreement, the City is not responsible for payment until the Services have been satisfactorily performed.

B. Invoicing. Consultant must submit to the City monthly written invoices to the City’s Project Representative, identified in Section 5 below. Invoices must be prepared in a form satisfactory to the City, describing the services rendered and associated costs for the period covered by the invoice. The City will provide invoicing format upon request. Consultant may not bill the City for duplicate services performed by more than one person. Consultant’s invoices must include, but are not limited to, the following information:
i. Project Title,the City’s Purchase Order number and City’s Project Code(s) for each project; ii. Invoice number and date;
iii. A brief description of services performed for each project phase and/or task; iv. The budgeted amount for each phase, task and item, including the total amount, with the same for approved Change Orders, if any;
Attachment 2
4 v. Amount invoiced to date divided by the agreed total compensation, expressed as a percentage, with the same for approved Change Orders, if any; vi. The amount earned and invoiced to date for each phase, task and/or item, including the total amount, with the same for approved Change Orders, if any; vii. The amount previously invoiced for each phase, task and/or item, including the total amount, with the same for approved Change Orders, if any; viii. The amount due for the period covered by this invoice for each phase, task, and/or item, including the total amount, with the same for approved Change Orders, if any; ix. For time and materials authorizations, the number of hours spent, by whom and their hourly rate for each phase, task and/or item, including the total amount; x. The costs incurred, including reimbursables, for each phase, task, and/or item for the agreed total compensation and approved Change Orders, if any, along with a brief description of those costs;
xi. The total amount due for the period covered by this invoice, including subconsultants and vendors of services or goods;
xii. Copies of subconsultant, vendor, and reimbursable invoices including hourly breakdowns when requested by City.
xiii. Copies of subconsultant and vendor lien releases.

Any such invoices must be in full accord with any and all applicable provisions of this Agreement.

Consultant must submit invoices to the City on or before the sixteenth (16th) day of each month for services performed in the preceding month.

The City will review each invoice submitted by Consultant to determine whether the work performed and expenses incurred are in compliance with this Agreement. In the event that no charges or expenses are disputed, the invoice will be approved and paid.

Except as to any charges for work performed or expenses incurred by Consultant that are disputed by City, the City will pay on each such invoice within thirty (30) days of receipt; provided, however, that Consultant submits an invoice which is not incorrect, incomplete, or not in accord with the provisions of this Agreement. If any charges or expenses are disputed by City, the invoice will be returned by City to Consultant for correction and resubmission, and the City will not be obligated to process any payment to Consultant until thirty (30) days after a correct and complying invoice has been submitted by Consultant. Payment to Consultant for services performed under this Agreement may not be deemed to waive any defects in the services performed by Consultant, even if such defects were known to City at the time of payment. City reserves the right to withhold future payment to Consultant if any aspect of the Consultant’s work is found to be non-conforming to the terms of this Agreement.

Attachment 2
5 The City is not obligated to pay Consultant a greater percentage of the Maximum Authorized Expenditure than the actual percentage of services completed as of the invoice date.

Consultant agrees to remit and is responsible for all withholding taxes, income taxes, unemployment insurance deductions, and any other deductions required by applicable federal, state or local laws and regulations for Consultant, its employees, subconsultants and vendors of services or goods.

C. Adjustment of Maximum Authorized Expenditure. The City may increase or decrease the Maximum Authorized Expenditure by issuing a Change Order to the Agreement in accordance with Section 1.B “Change Orders” above. Should Consultant consider that any request or instruction from the City’s Project Representative constitutes a change in the scope of services, Consultant will advise the City’s Project Representative, in writing, within fourteen (14) calendar days of such request or instruction. Without said written advice within the time period specified, the City is not obligated to make any payment of additional compensation to Consultant.

D. Hourly Rates. Payment for all authorized services, including payment for authorized on-call, asneeded services, will be made by the City to Consultant in accordance with the various hourly rates as set forth in Exhibit “A”.

E. Subconsultants and Vendors. Invoices for subconsultants and vendors of services or goods will be paid by the City to Consultant in accordance with the various rates as set forth in Exhibit “A”. All reimbursable expenses will be considered as included within the Maximum Authorized Expenditure. Consultant is solely responsible for payment to subconsultants and vendors of services or goods, and the City is not responsible or liable for any payments to subconsultants and vendors, either directly or indirectly.

F. Audit and Examination of Accounts:
i. Consultant must keep and will cause any assignee or subconsultant under this Agreement to keep accurate books of records and accounts, in accordance with sound accounting principles, which pertain to services to be performed under this Agreement. ii. Any audit conducted of books of records and accounts must be kept in accordance with generally accepted professional standards and guidelines for auditing. iii. Consultant must disclose and make available any and all information, reports, books of records or accounts pertaining to this Agreement to the City and any city of the County of Monterey, or other federal, state, regional or governmental agency which provides funding for these Services.
iv. Consultant must include the requirements of Section 2F, “Audit and Examination of Accounts,” in all contracts with assignees or subconsultants under this Agreement.

Attachment 2
6 v. All records provided for in this Section are to be maintained and made available throughout the performance of this Agreement and for a period of not less than four (4) years after full completion of the Services. All records, which pertain to actual disputes, litigation, appeals or claims, must be maintained and made available for a period of not less than four (4) years after final resolution of such disputes, litigation, appeals or claims.

3. AGREEMENT TERM
A. Term. The work under this Agreement will commence by February 5th, 2025 and must be completed by June 30th, 2025 unless sooner terminated or the City grants an extension of time in writing pursuant to the terms of this Agreement, except for provisions in this Agreement that will survive the termination or completion of this Agreement. Consultant will perform Change Order services as set out in Section 1.B, “Amendment of Services (Change Orders),” in a timely manner or in accordance with the agreed upon Change Order Project Schedule.

B. Timely Work. Consultant will perform all Services in a timely fashion. Failure to perform is deemed a material breach of this Agreement, and the City may terminate this Agreement with no further liability hereunder, or may authorize, in writing, an extension of time to the Agreement.

Attachment 2
7 C. Notice to Proceed. Upon execution of this Agreement by both parties and the receipt of all documentation required by this Agreement to be provided by Consultant to the City, including proof of insurance and tax identification numbers, the City will issue a written Notice to Proceed to the Consultant. The City may, in its sole discretion, issue subsequent notices from time to time regarding further portions or phases of the work. Upon receipt of such notices, Consultant will diligently proceed with the Services authorized and complete those Services within the agreed time specified in said notice. Consultant will not proceed with any of the Services unless they have received a Notice to Proceed from the City.

4. CONSULTANT’S EMPLOYEES AND SUBCONSULTANTS
A. Listed Employees and Subconsultants. Consultant will perform the Services using the individuals listed in the Key Employees and Subconsultants List attached hereto in Exhibit “A.” B. Substitution of Employees or Subconsultants:
i. Consultant may not substitute any key employee or subconsultant listed in Exhibit “A” without the prior written approval of the City, and such approval will not be unreasonably withheld. The City will not approve removal or substitution of employees orsubconsultants for the reason that Consultant or its affiliates has called on such individuals to perform services for another client of the Consultant.
ii. If, at any time, the City reasonably objects to the performance, experience, qualifications or suitability of any of Consultant’s employees or subconsultants, then Consultant may, upon written request from the City, replace such employee or subconsultant. Consultant must,subject to scheduling and staffing considerations, make reasonable efforts to replace the individual with an individual of similar competency and experience. iii. Whether or not the City consents to, or requests a substitution of any employee or subconsultant of Consultant, the City will not be liable to pay additional compensation to Consultant for any replacement or substitution.

C. Sub-agreements with Subconsultants. Consultant will incorporate the terms and conditions of this Agreement into all sub-agreements with subconsultants in respect of the Services necessary to preserve all rights of the City under this Agreement. Consultant is fully responsible to the City of all acts and omissions of subconsultants and of persons employed by any subconsultant.

D. Not an Agent of the City. Nothing in this Agreement will be interpreted to render the City the agent, employer, or partner of Consultant, or the employer of anyone working for or subcontracted by Consultant, and Consultant must not do anything that would result in anyone working for or subcontracted by Consultant being considered an employee of the City.

Consultant is not, and must not claim to be, an agent of the City.

Attachment 2
8 E. Independent Contractor:
i. Consultant is an independent contractor. This Agreement does not create the relationship of employer and employee, a partnership, or a joint venture. The City may not control or direct the details, means, methods or processes by which Consultant performs the Services.

Consultant is responsible for performance of the Services and may not delegate or assign any Services to any other person except as provided for in this Agreement. Consultant is solely liable for the work quality and conditions of any partners, employees and subconsultants.
ii. No offer or obligation of permanent employment with the City or particular City department or agency is intended in any manner, and Consultant may not become entitled by virtue of this Agreement to receive from the City any form of employee benefits including but not limited to sick leave, vacation, retirement benefits, workers’ compensation coverage, insurance or disability benefits. Consultant will be solely liable for and obligated to pay directly all applicable taxes, including federal and state income taxes and social security, arising out of Consultant’s performance of Services under this Agreement. Consultant will defend, indemnify and hold the City harmless from any and all liability, which the City may incur because of Consultant’s failure to pay such taxes.

5. REPRESENTATIVES AND COMMUNICATIONS
A. City’s Project Representative. The City appoints the individual named below as the City’s Project Representative for the purposes of this Agreement (“City’s Project Representative”). The City may unilaterally change its project representative upon notice to Consultant.

Name:

Title:

Address:

Telephone:

Email:

B. Consultant’s Project Manager. Consultant appoints the person named below as its Project Manager for the purposes of this Agreement (“Consultant’s Project Manager”).

Name:

Title:

Company:

Address:

Telephone:

Email:

C. Meet and Confer. Consultant agrees to meet and confer with the City’s Project Representative, its agents or employees with regard to Services as may be required by the City to insure timely and adequate performance of this Agreement.

D. Communications and Notices. All communications between the City and Consultant regarding this Agreement, including performance of Services, will be between the City’s Project Brandon Swanson
Assistant City Administrator
PO Box CC, Carmel-by-the-Sea, CA 93921
831-402-1381
[email protected]
Bill Famini
Technology Division Manager
Conti, LLC
920 Stillwater Rd, Suite 180, West Sacramento, 95605
702-561-8163
[email protected]
Attachment 2
9 Representative and Consultant’s Project Manager. Any notice, report, or other document that either party may be required or may wish to give to the other must be in writing and will be validly given to and received by the addressee, if delivered personally, on the date of such personal delivery, if delivered by email, on the date of transmission, or if by mail, seven (7) calendar days after posting.

6. INDEMNIFICATION
Consultant hereby agrees to the following indemnification clause:

To the fullest extent permitted by law (including, without limitation, California Civil Code Sections 2782 and 2782.6), Consultant will defend (with legal counsel reasonably acceptable to the City), indemnify and hold harmless the City and its officers, designated agents, departments, officials, representatives and employees (collectively "Indemnitees") from and against claims, loss, cost, damage, injury expense and liability (including incidental and consequential damages, Court costs, reasonable attorneys' fees as may be determined by the Court, litigation expenses and fees of expert consultants or expert witnesses incurred in connection therewith and costs of investigation) to the extent they arise out of, pertain to, or relate to, the negligence, recklessness, or willful misconduct of Consultant, any subconsultant or subcontractor, anyone directly or indirectly employed by them, or anyone that they control (collectively "Liabilities"). Such obligations to defend, hold harmless and indemnify any Indemnitee will not apply to the extent that such Liabilities are caused in part by the active negligence or willful misconduct of such Indemnitee.

Notwithstanding the provisions of the above paragraph, Consultant agrees to indemnify and hold harmless the City from and against all claims, demands, defense costs, liability, expense, or damages arising out of or in connection with damage to or loss of any property belonging to Consultant or Consultant's employees, subconsultants, representatives, patrons, guests or invitees.

In no event will the obligation of the Consultant exceed the limitations on the duty to defend and indemnify as set forth in Civil Code Sections 2782, 2782.6, and 2782.8.

7. INSURANCE
Consultant must submit and maintain in full force all insurance as described herein. Without altering or limiting Consultant's duty to indemnify, Consultant must maintain in effect throughout the term of this Agreement a policy or policies of insurance with the following minimum limits of liability:

A. Commercial General Liability Insurance including but not limited to premises, personal injuries, bodily injuries, property damage, products, and completed operations, with a combined single limit of not less than $1,000,000 per occurrence and $2,000,000 in the aggregate.

B. Professional Liability Insurance with limits of not less than $1,000,000 per occurrence or claim and $2,000,000 in the aggregate. Consultant will have a policy for professional liability coverage that provides coverage on an occurrence basis or obtain extended reporting (tail) coverage (with the same liability limits) for at least three years following the City's acceptance of the work.

Attachment 2
10 C. Automobile Liability Insurance covering all automobiles, including owned, leased, non-owned, and hired automobiles, used in providing Services under this Agreement, with a combined single limit of not less than $1,000,000 per occurrence.

D. Workers' Compensation Insurance. If Consultant employs others in the performance of this Agreement, Consultant must maintain Workers' Compensation insurance in accordance with California Labor Code section 3700 and with a minimum of $1,000,000 per occurrence.

E. Other Insurance Requirements:
i. All insurance required under this Agreement must be written by an insurance company either:
a. admitted to do business in California with a current A.M. Best rating of no less than A:VI; or
b. an insurance company with a current A.M. Best rating of no less than A:VII.

Exception may be made for the State Compensation Insurance Fund when not specifically rated.
ii. Each insurance policy required by this Agreement may not be canceled, except with prior written notice to the City.
iii. All liability and auto policies must:
a. Provide an endorsement naming the City of Carmel-by-the-Sea, its officers, officials, employees, and volunteers as additional insureds. General liability coverage can be provided in the form of an endorsement to the Consultant’s insurance (at least as broad as ISO Form CG 20 10 11 85 or both CG 20 10 and CG 23 37 forms if later revisions used).
b. Provide that such Consultant’s insurance is primary as respects the City, its officers, officials, employees, and volunteers. Any insurance or self-insurance maintained by the City is excess to the Consultant’s insurance and will not contribute with it.
c. Contain a “Separation of Insureds” provision substantially equivalent to that used in the ISO form CG 00 01 10 01 or their equivalent.
d. Provide for a waiver of any subrogation rights against the City via an ISO CG 24 01 10 93 or its equivalent.
iv. Prior to the start of work under this Agreement, Consultant will file certificates of insurance and endorsements evidencing the coverage required by this Agreement with the City. Consultant will file a new or amended certificate of insurance promptly after any change is made in any insurance policy which would alter the information on the certificate then on file.

Attachment 2
11 v. Neither the insurance requirements hereunder, nor acceptance or approval of Consultant’s insurance, nor whether any claims are covered under any insurance, may in any way modify or change Consultant’s obligations under the indemnification clause in this Agreement, which will continue in full force and effect. All coverage available to the Consultant as named insured will also be available and applicable to the additional insured. Notwithstanding these insurance requirements, Consultant is financially liable for its indemnity obligations under this Agreement.
vi. All policies must be written on a first dollar coverage basis or contain a deductible provision. Any deductibles or self-insured retentions (“SIR”) must be declared to and approved by the City. At the option of the City, either: the insured will reduce or eliminate such deductibles or SIR as respects the City, its officers, officials, employees and volunteers; or Consultant will provide a financial guarantee satisfactory to the City guaranteeing payment of losses and related investigations, claim administration, and defense expenses. In no event will any SIR or insurance policy contain language, whether added by endorsement or contained in the policy conditions, that prohibits satisfaction of any self-insured provision or requirement by anyone other than the named insured, or by any means including other insurance, or which is intended to defeat the intent or protection of an additional insured.
vii. City reserves the right to modify these requirements, including limits, based on the nature of the risk, prior experience, insurer, coverage, or other special circumstances. viii. Consultant must require and verify that all subconsultants and subcontractors maintain insurance meeting all the requirements in this Agreement. ix. If Consultant, for any reason, fails to have in place at all times during the term of this Agreement all of the required insurance coverage, the City may, but is not obligated to, obtain such coverage at Consultant’s expense and deduct the cost from the sums due Consultant. Alternatively, City may terminate the Agreement. x. The existence of the required insurance coverage under this Agreement will not be deemed to satisfy or limit Consultant’s indemnity obligations under this Agreement.

Consultant acknowledges that the insurance coverage and policy limits set forth in this Agreement constitute the minimum coverage and policy limits required. Should any coverage carried by the Consultant or any subcontractor of any tier have limits of liability that exceed the limits or have broader coverage than required in this Agreement, those higher limits and that broader coverage are deemed to apply for the benefit of any person or organization included as an additional insured and those limits and broader coverage will become the required minimum limits and insurance coverage in all sections of this Agreement. Any insurance proceeds available to City in excess of the limits and coverages required by this Agreement, and which is applicable to a given loss, must be made available to City to compensate it for such losses.
xi. Consultant must give City prompt notice of claims made of lawsuits initiated that arise out of or result from Consultant’s performance under this Agreement, and that involve or may involve coverage under any of the required liability insurance policies.

Attachment 2
12 xii. The Consultant hereby waives any right of subrogation that any of its insurers may have or that they may accrue out of the payment of any claim related to the Consultant’s performance of this Agreement, regardless of whether any endorsements required by this section are obtained.

8. PERFORMANCE STANDARDS
A. Consultant warrants that Consultant and Consultant’s agents, employees, and subconsultants performing Services under this Agreement are specially trained, experienced, and competent and have the degree of specialized expertise contemplated within California Government Code Section 37103, and further, are appropriately licensed to perform the work and deliver the Services required under this Agreement.

B. Consultant, its agents, employees, and subconsultants must perform all Services in a safe and skillful manner consistent with the usual and customary standards of care, diligence and skill ordinarily exercised by professional consultants in similar fields in accordance with sound professional practices. All work product of Consultant must comply with all applicable laws, rules, regulations, ordinances and codes. Consultant also warrants that it is familiar with all laws that may affect its performance of this Agreement and will advise City of any changes in any laws that may affect Consultant’s performance of this Agreement. All Services performed under this Agreement that are required by law to be performed or supervised by licensed personnel must be performed in accordance with such licensing requirements.

C. Consultant must furnish, at its own expense, all materials, equipment and personnel necessary to carry out the terms of this Agreement. Consultant may not use the City premises, property (including equipment, instruments, or supplies) or personnel for any purpose other than in the performance of its obligations under this Agreement.

D. Consultant agrees to perform all work under this Agreement to the satisfaction of City and as specified herein. The City’s Project Representative or his or her designee will evaluate the work.

If the quality of work is not satisfactory, City in its discretion may meet with Consultant to review the quality of work and resolve the matters of concern, and may require Consultant to repeat the work at no additional fee until it is satisfactory.

9. CITY INFORMATION AND RESOURCES
A. Available Information. The City will make available to Consultant all relevant information, plans, maps, reports, specifications, standards and pertinent data which is in the hands of the City and is required by Consultant to perform the Services. Consultant may rely upon the accuracy and completeness of such information and data furnished by the City, except where it is stated otherwise or unreasonable.

B. City Resources. The City acknowledges that Consultant’s ability to provide the Services in accordance with this Agreement may be dependent on the City providing available information and resources in a prompt and timely manner as reasonably required by Consultant. To the extent that the City fails to provide City resources, Consultant will not be liable for any resulting delay in the Services or failure to meet the Project Schedule, but in no event will such delay or failure to provide City resources constitute a breach of this Agreement by the City, nor will Attachment 2
13 Consultant be entitled to extra compensation for same. Consultant’s sole remedy shall be an extension of time to complete the Scope of Services.

C. Obligations of Consultant. No reviews, approvals, or inspections carried out or supplied by the City will derogate from the duties and obligations of Consultant, and all responsibility related to performance of the Services will be and remain with Consultant.

10. OWNERSHIP AND USE OF MATERIALS
A. Ownership of the Materials. All data, studies, reports, calculations, field notes, sketches, designs, drawings, plans, specifications, cost estimates, manuals, correspondence, agendas, minutes, notes, audio-visual materials, photographs, models, software data, computer software (if purchased on the City’s behalf) and other documents or products produced by Consultant under this Agreement (collectively, “the Materials”) are and will remain the property of the City even though Consultant or another party may have physical possession of them or a portion thereof. Consultant hereby waives, in favor of the City, any moral rights Consultant, its employees, subconsultants, vendors, successors or assignees may have in the Materials.

B. No Patent or Copyright Infringement. Consultant guarantees that in its creation of the Materials produced under this Agreement, no federal or state patent or copyright laws were violated.

Consultant agrees that all copyrights, which arise from creation of the work or Services pursuant to this Agreement, will be vested in the City and waives and relinquishes all claims to copyright or intellectual property rights in favor of the City. Consultant covenants that it will defend, indemnify and hold City harmless from any claim or legal action brought against the City for alleged infringement of any patent or copyright related to City’s use of Materials produced by Consultant and its employees, agents and subconsultants under this Agreement.

C. Delivery and Use of the Materials. All Materials will be transferred and delivered by Consultant to the City without further compensation following the expiration or sooner termination of this Agreement, provided that the City may, at any time prior to the expiration or earlier termination of this Agreement, give written notice to Consultant requesting delivery by Consultant to the City of all or any part of the Materials in which event Consultant must forthwith comply with such request. The Materials created electronically must be submitted in a format and medium acceptable to the City. The Materials may be used by the City in any manner for the intended purpose or as part of its operations associated with the Materials.

D. Survival of Ownership and Use Provisions. The provisions contained in Section 10, Ownership and Use of Materials survives the expiration or earlier termination of this Agreement, and that this Section is severable for such purpose.

E. Additional Copies. If the City requires additional copies of reports, or any other material that Consultant is required to furnish as part of the Services under this Agreement, Consultant must provide such additional copies, and the City will compensate Consultant for the actual costs related to the production of such copies by Consultant.

11. CONFIDENTIALITY
Attachment 2
14 A. No Disclosure. Consultant must keep confidential and may not disclose, publish or release any information, data, or confidential information of the City to any person other than representatives of the City duly designated for that purpose in writing by the City. Consultant may not use for Consultant’s own purposes, or for any purpose other than those of the City, any information, data, or confidential information Consultant may acquire as a result of the performance of the Services under this Agreement. Consultant must promptly transmit to the City any and all requests for disclosure of any such confidential information or records. The obligations under this Section will survive the expiration or earlier termination of this Agreement.

B. California Public Records Act. Consultant acknowledges that the City is subject to the California Public Records Act (Government Code Section 6250 et seq.), known as the “PRA,” and agrees to any disclosure of information by the City as required by law. Consultant further acknowledges that it may have access to personal information as defined under the PRA, and Consultant will not use any such personal information for any purposes other than for the performance of Services under this Agreement without the advance written approval of the City.

All Scopes of Services and related documents received will be public records, with the exception of those elements, identified by the Consultant as business trade secrets and are plainly marked “Trade Secret,” “Confidential,” or “Proprietary.” If disclosure is required under the PRA or otherwise by law, the City will not be liable or responsible for the disclosure of any such records and the Consultant will indemnify, defend, and hold the City harmless for any such disclosure.

12. CONFLICT OF INTEREST
Consultant covenants that neither Consultant, nor any officer, principal or employee of its firm, has or will acquire any interest, directly or indirectly, that would conflict in any manner with the interests of City relating to this Agreement or that would in any way hinder Consultant’s performance of services under this Agreement. Consultant’s attention is directed to the conflict of interest rules applicable to governmental decision-making contained in the Political Reform Act (California Government Code Section 87100 and following) and its implementing regulations (California Code of Regulations, Title 2, Section 18700 et seq.), and California Government Code section 1090.

Consultant is required to file a Form 700 in compliance with the City’s Conflict of Interest Code unless a written determination by the City Administrator is made modifying or eliminating said requirement, or unless otherwise exempted by law.

In addition, Consultant, Consultant’s employees, and subconsultants agree as follows:

A. That they will conduct their duties related to this Agreement with impartiality, and must, if they exercise discretionary authority over others in the course of those duties, disqualify themselves from dealing with anyone with whom a relationship between them could bring the impartiality of Consultant or its employees into question;
B. May not influence, seek to influence, or otherwise take part in a decision of the City knowing that the decision may further their private interests;
Attachment 2
15 C. May not accept any commission, discount, allowance, payment, gift, or other benefit connected, directly or indirectly, with the performance of Services related to this Agreement, that causes, or would appear to cause, a conflict of interest;
D. May have no financial interest in the business of a third party that causes, or would appear to cause, a conflict of interest in connection with the performance of the Services related to this Agreement, and if such financial interest is acquired during the term of this Agreement, Consultant must promptly declare it to the City, and;
E. May not, during the term of this Agreement, perform a service for, or provide advice to, any person, firm, or corporation, which gives rise to a conflict of interest between the obligations of Consultant under this Agreement and the obligations of Consultant to such other person, firm or corporation.

13. DISPUTE RESOLUTION
A. Dispute Resolution Procedures. The parties will make reasonable efforts to promptly resolve any dispute, claim, or controversy arising out of or related to this Agreement (“Dispute”) using the Dispute Resolution Procedures set forth in this Section.

B. Negotiations. First, the City’s Project Representative and Consultant’s Project Manager will make reasonable efforts to resolve any Dispute by amicable negotiations and will provide frank, candid, and timely disclosure of all relevant facts, information, and documents to facilitate negotiations. Should these negotiations be unsuccessful in resolving the Dispute, the matter will be promptly referred to the City Administrator or designee, and the Consultant’s Principal, who will meet and confer, in good faith, to resolve the Dispute to mutual satisfaction of the parties.

C. Mediation. If all or any portion of a Dispute cannot be resolved by good faith negotiations as set forth above within thirty (30) days of the date that the matter was referred to the City Administrator pursuant to subsection B above, either party may, by notice to the other party, submit the Dispute for formal mediation to a mediator selected mutually by the parties from the Monterey Superior Court’s Court-Directed Mediator Panel list. The duration of any such mediation may not exceed 2 hours unless otherwise agreed to by the parties. The cost of the mediation (including fees of mediators) will be borne equally by the parties, and each party will bear its own costs of participating in mediation. The mediation will take place within or in close proximity to the City of Carmel-by-the-Sea.

In any mediation conducted pursuant to this section, the provisions of California Evidence Code section 1152 will be applicable to limit the admissibility of evidence disclosed by the parties in the course of the mediation. In the event the parties are unsuccessful in resolving the dispute through the mediation process, then the parties agree that the dispute will be submitted to Binding Arbitration to a single Arbitrator in accordance with the existing Rules of Practice and Procedure of the Judicial Arbitration and Mediation Services, Inc. (JAMS) within thirty (30) days of the close of mediation as declared by the mediator.

D. Arbitration. The submission to Mediation and Arbitration in accordance with the requirements of this section of any and all agreements, differences, or controversies that may arise hereunder is made a condition precedent to the institution of any action or appeal at law or in equity with Attachment 2
16 respect to the controversy involved. The award by the arbitrator will have the same force and effect and may be filed and entered, as a judgment of the Superior Court of the State of California and is subject to appellate review upon the same terms and conditions as the law permits for judgments of Superior Courts. A “Prevailing Party” will be determined in the Arbitration, and the prevailing party will be entitled to reasonable attorney’s fees and costs incurred, and accrued interest on any unpaid balance that may be due. Costs will include the cost of any expert employed in the preparation or presentation of any evidence. All costs incurred and reasonable attorney fees will be considered costs recoverable in that proceeding, and be included in any award.

14. TERMINATION OF AGREEMENT
A. Termination for Cause or Default. The City reserves the right to immediately terminate this Agreement, in whole or in part, if Consultant or any subconsultant defaults or fails to deliver the Services in accordance with the terms and conditions of this Agreement. Such termination must be in writing, setting forth the effective date of termination, and will not result in any penalty or other charges to the City, and may be issued without any prior notice. Without limitation, Consultant is in default of its obligations contained in this Agreement if Consultant, or any subconsultant:
i. Fails to perform the required Services within the term and/or in the manner provided under this Agreement;
ii. Fails to supply sufficient, properly skilled workers or proper workmanship, products, material, tools and equipment to perform the Services;
iii. Fails to observe or comply with all laws, ordinances, including all requirements of governmental or quasi-governmental authorities, including federal, state, and local government enactments, bylaws, and other regulations now or, following the date of this Agreement, in force that pertain to;
iv. Fails to observe or comply with the City’s reasonable instructions; v. Breaches the Conflict of Interest provisions of this Agreement; or vi. Otherwise violates any provision of this Agreement.

B. Termination for Convenience. The City may, at its option and sole discretion, terminate this Agreement, in whole or in part, with or without cause, at any time during the Agreement Term for the convenience of the City, upon ten (10) days written notice to the Consultant.

C. Steps after Termination:
i. Upon termination of this Agreement by the City for any reason, the City will pay Consultant for satisfactorily performed Services and disbursements incurred by Consultant to the date of termination pursuant to this Agreement, less any amounts necessary to compensate the City for damages or costs incurred by the City arising from Attachment 2
17 Consultant’s default. Termination will be without prejudice to any other rights or remedies the City may have.
ii. Upon receipt of written notice of termination of this Agreement by the City for any reason, Consultant must:
a. Promptly cease all Services, including Services provided by any subconsultant, unless otherwise directed by the City; and
b. Deliver to the City all the Materials provided to Consultant or prepared by or for Consultant or the City in connection with this Agreement. Such Materials are to be delivered to the City in completed form; however, notwithstanding the provisions of Section 10, Ownership and Use of Materials, herein, the City may condition payment for services rendered to the date of termination upon Consultant’s delivery to the City of such Materials.
iii. If this Agreement is terminated by the City for any reason, the City is hereby expressly permitted to assume the projects and Services, and to complete them by any means including, but not limited to, an agreement with another party.

15. LEGAL ACTION / VENUE
A. Should either party to this Agreement bring legal action against the other, the validity, interpretation and performance of this Agreement will be controlled by and construed under the laws of the State of California, excluding California’s choice of law rules.

B. Venue for any such action relating to this Agreement will be in Monterey County.

C. If any legal action or proceeding, including action for declaratory relief, is brought for the enforcement of this Agreement or because of an alleged dispute, breach, default or misrepresentation in connection with this Agreement, the prevailing party may recover reasonable attorneys’ fees as may be determined by the Arbitrator, experts’ fees, and other costs, in addition to any other relief to which the party may be entitled.

16. MISCELLANEOUS PROVISIONS
A. Non-discrimination. During the performance of this Agreement, Consultant, and its subconsultants, may not unlawfully discriminate against any person because of race, religious creed, color, sex, national origin, ancestry, physical disability, mental disability, medical condition, marital status, age, or sexual orientation, either in Consultant’s employment practices or in the furnishing of services to recipients. Consultant further acknowledges that harassment in the workplace is not permitted in any form, and will take all necessary actions to prevent such conduct.

B. Acceptance of Services Not a Release. Acceptance by the City of the Services to be performed under this Agreement does not operate as a release of Consultant from professional responsibility for the Services performed.

Attachment 2
18 C. Force Majeure. Either party is absolved from its obligation under this Agreement when and to the extent that performance is delayed or prevented, and in the City’s case, when and to the extent that its need for vehicles, materials, or Services to be supplied hereunder are reduced or eliminated by any course, except financial, for reasons beyond its control. Such reasons include, but are not limited to: earthquake, flood, epidemic, fire, explosion, war, civil disorder, act of God or of the public enemy, act of federal, state or local government, or delay in transportation to the extent that they are not caused by the party’s willful or negligent acts or omissions, and to the extent that they are beyond the party’s reasonable control.

D. Headings. The headings do not govern, limit, modify, or in any manner affect the scope, meaning or intent of the provisions of this Agreement. The headings are for convenience only.

E. Entire Agreement. This Agreement, including the Exhibits attached hereto, constitutes the entire agreement between the parties hereto with respect to the terms, conditions, and Services and supersedes any and all prior proposals, understandings, communications, representations and agreements, whether oral or written, relating to the subject matter thereof pursuant to Section 1B, “Change Order of Services.” Any Change Order to this Agreement will be effective only if it is in writing signed by both parties hereto and will prevail over any other provision of this Agreement in the event of inconsistency between them.

F. Conflict between Agreement and Exhibits. In the event of a conflict between a provision in this Agreement and a provision in an Exhibit attached to this Agreement, the provisions in this Agreement will take precedence.

G. Counterparts. This Agreement may be executed in one or more counterparts, each of which will be deemed an original, and may be signed in counterparts, but all of which together will constitute one and the same Agreement.

H. Multiple Copies of Agreement. Multiple copies of this Agreement may be executed, but the parties agree that the Agreement on file in the office of the City’s City Clerk is the version of the Agreement that governs should any difference exist among counterparts of this Agreement.

I. Authority. Any individual executing this Agreement on behalf of the City or Consultant represents and warrants hereby that he or she has the requisite authority to enter into this Agreement on behalf of such party and bind the party to the terms and conditions of this Agreement.

J. Severability. If any of the provisions contained in this Agreement are held illegal, invalid or unenforceable, the enforceability of the remaining provisions will not be impaired thereby.

Limitations of liability and indemnities will survive termination of the Agreement for any cause.

If a part of the Agreement is valid, all valid parts that are severable from the invalid part remain in effect. If a part of this Agreement is invalid in one or more of its applications, the part remains in effect in all valid applications that are severable from the invalid applications.

K. Non-exclusive Agreement. This Agreement is non-exclusive and both the City and Consultant expressly reserve the right to enter into agreements with other Consultants for the same or similar services, or may have its own employees perform the same or similar services.

Attachment 2
19 L. Assignment of Interest. The duties under this Agreement are not assignable, delegable, or transferable without the prior written consent of the City. Any such purported assignment, delegation, or transfer constitutes a material breach of this Agreement upon which the City may terminate this Agreement and be entitled to damages.

M. City Business License. Prior to receiving a Notice to Proceed from the City, Consultant will obtain and maintain a valid City of Carmel-by-the-Sea Business License for the duration of the Agreement. Costs associated with the license are the responsibility of Consultant.

N. Laws. Consultant agrees that in the performance of this Agreement it will comply with all applicable federal, state and local laws and regulations. This Agreement will be governed by and construed in accordance with the laws of the State of California and the City of Carmel-by-theSea.

IN WITNESS WHEREOF, the parties enter into this Agreement hereto on the day and year first above written in Carmel-by-the-Sea, California.

CITY OF CARMEL-BY-THE-SEA CONSULTANT
City Administrator Consultant Signature
Printed Name Date Printed Name Date
Title
Consultant Legal Company Name
APPROVED AS TO FORM:

By: _______________________________ Date: ______________________ Brian Pierik, Esq., City Attorney
ATTEST:

By:
_________________________________
Date: ______________________
Nova Romero, MMC, City Clerk
Exhibit “A” Scope, Fees, and Personnel
Attachment 2

EXHIBIT A
Attachment 2
Tel:(916) 900-8111
January 28, 2025
To:

Re:

Description:

Conti Job #:

Attention:

Total Charge
$ 74,458.00
$ 28,875.00
Total $ 103,333.00
Regards,
Bill Famini

TECHNOLOGY DIVISION MANAGER- NORTHERN CALIFORNIA
cc:
920 Stillwater Road Suite 180
West Sacramento, CA 95605
Carmel Council Chambers Upgrade
Joel Staker
IT Manager
City of Carmel-by-the-Sea
Phone: 831-620-2025
Please feel free to contact us if you have any questions or concerns.

Thank you for the opportunity to submit this pricing for the work as outlined below.

Item Number
Lift Rental
Material/Tax
Labor
Attachment 2
Job Name / Description :

Customer :

Address :

Description :

A) Labor
147.00 Labor Rate $125.00 Tech 18,375.00 $

70.00 Labor Rate $150.00 Programming 10,500.00 $
TOTAL JOB PREPARATION 28,875.00 $

C) MATERIAL
Material 65,171.12 $
Shipping 3,258.56 $
Incidental labor
Labor Factoring/Lost Time
Sales Tax @9.25 6,028.33 $
TOTAL MATERIAL COST 74,458.00 $
$ 103,333.00

D) SUBCONTRACTORS
Lift rental
TOTAL SUBCONTRACTORS $ -
Units Total On Site cost $ 103,333.00
Sub-Contractors - $ @ $ -
0 Unit Prices - Each Delivery @ -$ Delivery - $
TOTAL AMOUNT OF THIS CHARGE $ 103,333.00
Total On Site Opening Cost
Attachment 2

CONTI LLC
Materials
Date
Matl Matl Labor Labor
Unit U Ext Unit U Ext
AUDIO
QSC QSYS Core110f 1 3031.200 3,031.20 $ 2.00 2.0
QSC QIO-ML4i Network Mic/Line Input 2 525.600 1,051.20 $ 2.00 4.0 QSC QIO-GP8x8 Q-SYS Network I/O Expander 2 327.600 655.20 $ 2.00 4.0 QSC MP-A40V Multi-Channel Amplifier 1 1375.200 1,375.20 $ 1.00 1.0 Listen EVERYWHERE 2 Channel Wi-Fi Audio Server
Item:LW-160-02-01-D 1 1148.400 1,148.40 $ 2.00 2.0
Vaddio AV Bridge Mini Audio/Video Encoder 999-8240-000 1 2005.164 2,005.16 $ 2.00 2.0 Shure MXA920 Ceiling Array Microphone 2 3781.200 7,562.40 $ 2.00 4.0 Shure MX418D 1 225.600 225.60 $ 2.00 2.0
Barco/R9861622USB2
CX-50 GEN2 Set, ClickShare Base + 2 Buttons, TAA Compliant - Black 1 3105.600 3,105.60 $ 3.00 3.0
Demo/Rewire new to old system 1 1800.000 1,800.00 $ 32.00 32.0 VIDEO 6876.000
PTZ Optics Move 4K 30x-4K-XX-G3 PT30X4KWHG3 4 2112.000 8,448.00 $ 2.00 8.0 PTZ Optics PT-WM-3-xx wall mount 4 105.600 422.40 $ 1.00 4.0 PTZOptics SuperJoy, a PTZ camera joystick controller 1 864.000 864.00 $ 2.00 2.0 Blacmagic Design ATEM Television Studio 4K8
SWATEMTVSTC/K4K8 1 5013.600 5,013.60 $ 2.00 2.0
Panasonic/PT-MZ880WU7
WUXGA 8000 4K Lmns LCD Laser Projector - White 1 8011.200 8,011.20 $ 4.00 4.0 Dalite Projection Screen 50x80 34456L 1 1267.920 1,267.92 $ 16.00 16.0 Extron SMP 401 12G-SDI 4K/60 Multi-Recording and Streaming w/12G-SDI 60-1825-02 1 8262.000 8,262.00 $ 2.00 0 2.0
Crestron DM-PSU-16-PLUS
16-Port PoDM+ Power Supply for DM 8G+® I/O Cards 1 1155.600 1,155.60 $ 2.00 2.0 Crestron DMC-SDI
3G-SDI Input Card for DM® Switchers 1 792.000 792.00 $ 1.00 1.0 Crestron USB-EXT-2-LOCAL-1G-W
USB over Category Cable Extender Wall Plate, Local, White 1 396.000 396.00 $ 2.00 2.0 Crestron USB-EXT-2-REMOTE
USB over Category Cable Extender, Remote 1 330.000 330.00 $ 2.00 2.0 Demo/Rewire new to old system 1 1839.450 1,839.45 $ 32.00 32.0 APC by Schneider Electric Smart-UPS 3000VA LCD RM 2U 120V with SmartConnect SMT3000RM2UC 2 2055.492 4,110.98 $ 2.00 4.0 QSC Q-SYS NM-T1 Network tabletop microphone for Q-SYS 1 835.200 835.20 $ 1.00 1.0 QSC AC-C4T 4" commercial in-ceiling speakers 2 84.600 169.20 $ 1.00 2.0 ASUS ZenScreen 16” (15.6 inch viewable) 1080P USB-C Portable Monitor (MB16AHV) 7 184.800 1,293.60 $ 1.00 7.0
Material Sub Total 0 E 65,171.12 $ 0.00 0.0
Miscellaneous Materials 3% 0 E - $ 0.00
Totals $ 65,171.12 147.00
January 28, 2025
Attachment 2
DIR #1000659639
Lic# 1067502
Conti LLC
920 Stillwater Rd, Suite 180
West Sacramento, CA 95605
P 916 900 8111
C 702-561-8163
F 916 256 3661
[email protected]
Proposal #SAC 24-050 - 1 -
920 STILLWATER Suite 180
Sacramento CA, 95835
California Contractors License # 1067502
916.900.8111
916.900.8111
P
F
January 28,2025
To: Joel Staker
IT Manager
City of Carmel-by-the-Sea
Phone: 831-620-2025

Re: Carmel Council Chambers AV Upgrade
Dear Joel,
Conti LLC is pleased to submit a proposal for the Carmel Council Chambers AV Upgrade Total Base Bid……………………………………………………………………………………………………………. $103,333.00
Scope Of Work:

1. Move the Clerk’s position Move the clerk to the floor, near where the Police Chief sits

2. Delete the Presentation Limit Timer control unit and integrate its functions into the Clerk’s touch panel/monitor.

3. Replace the sound processor with a more capable unit with Digital Signal Processing (DSP) features to allow better control of dais mic gain, feedback suppression and automatic muting of mics not directly being addressed.

4. Redirect or remount overhead speakers so they are aimed down at audience members for better sound control.

5. Replace the Assistive Listening System with the latest technology allowing the use of both small receivers and/or personal smart phones for audience members who would benefit from this assistance, as required by code.

6. Replace the existing PTZ cameras with higher quality units with improved light sensitivity to present higher quality images of dais members and presenters to the streaming encoders and locate new cameras at ~84” above finished floor for a more pleasing image angle.

7. Installation of beamforming microphone arrays (2 ea.) on bottom of ceiling beams. These will be connected to the new audio DSP processor via the new Ethernet switch installed with the built-in Acoustic Echo Cancellation (AEC).

8. Replace the existing 4000 lumen DLP projector with a 8000 lumen laser light source projector offering higher brightness and contrast and longer life with no bulb changes required.

9. Replace the existing manually operated projection screen with a motorized screen allowing its deployment automatically whenever the projector is turned on for presentations.

10. Replace the podium mic to more easily allow for people of varying heights Attachment 2
DIR #1000659639
Lic# 1067502
Conti LLC
920 Stillwater Rd, Suite 180
West Sacramento, CA 95605
P 916 900 8111
C 702-561-8163
F 916 256 3661
[email protected]
Proposal #SAC 24-050 - 2 -
920 STILLWATER Suite 180
Sacramento CA, 95835
California Contractors License # 1067502
916.900.8111
916.900.8111
P
F

11. New encoder for downstairs

12. "Voice of god" feature added to downstairs

13. Audio and Video in the lobby when meetings are in process

14. Dedicated power management for production desk

15. A/V Bridge in the chambers is wireless capable

16. New monitors (note: meeting with cabinet maker on Wednesday to see how feasible it will be to flush mount monitors under dias desktop)
Replace the existing wireless presentation unit with one that fully supports iOS as well as Windows laptop/tablet presentation sources.

Clarifications:

1. This quote shall comply with the following standards: Applicable TIA/EIA standards; national, state, and local codes; as well as BICSI standards for installation and workmanship.

2. Bid bonds and performance/payment bonds, if required, are not included.

3. Any owner-provided material and equipment will be onsite and accessible prior to the sequence of work being performed.

4. Working hours are based on Normal working shift, 6:00am to 5:00pm.

5. This pricing shall remain in effect for a period of 60 days.

Exclusions:

1. Any other Low Voltage Systems not specifically listed in the above scope of work.

2. Grounding riser including conduit, and connection to main building ground bus.

3. All conduits and backboxes, demo and install.

4. Procurement and installation of active network hardware.

5. Premium time and shift work (no weekends/holidays).

6. Pricing does not include patching and painting of walls.

7. Parking fees.

Sincerely,
Bill Famini
Attachment 2
1 OuttaTheWoods
25777 Tierra Grande Drive
Carmel, CA 93923
831.402.1584
Business Proposal and Quote
Date: 1/21/2025
To: City of Carmel-by-the-Sea
Attn: City Administrator
From: OuttaTheWoods Custom Woodworking
Department of Industrial Relations Number: PW-LR-1001172172 Subject: Proposal for Installation of Seven City Hall Dais Room Downview Monitor Mount Retrofit Kits and A Custom Recorder Desk With a Single Downview Monitor Mount Retrofit Kit Scope of Work

1. Workstation Downview Monitor Mount Retrofit Kit installation. o Mount seven (7) downview monitor glass covers without keyboard trays on top of existing Formica on the City Hall dais.

2. Custom L-Shaped Recorder Desk Construction:
o Build a custom portable L-shaped desk for the recorder’s station - just the top, no drawers.
o Integrate repurposed oak material from existing City Hall recorder desk with best effort.
o Mount one (1) downview monitor mount retrofit kit to the top of the recorder desk. o Design will prioritize functionality and ergonomic accessibility while incorporating the repurposed oak materials.

Materials and Labor
Dais Downview Monitor Glass Covers:
• Materials: High-quality tempered glass with polished edges, custom-fitted to the dais dimensions.

Attachment 3
2 Source: http://www.harborcitysupply.com || part SKU FPA-0-1818-NK-22 || Picture below. Note picture shows keyboard holder but we will order without keyboard holder. Choosing size 21x21” (FPA-0-2121) for now but an adjust as necessary and update quote. There is a 16x21” option (FPA0-1621) and a 21x24” (FPA-0-2124) option as well if desired.

FPA-0-2121
• Labor: Installation by our skilled woodworkers to ensure precise alignment and secure mounting.

Recorder Desk:
• Materials:
o Repurposed oak from existing City Hall recorder desk. o Supplemental oak as needed to maintain structural integrity and aesthetic consistency.
o Durable hardware and finishings to enhance longevity. • Labor:
o Skilled craftsmanship for woodworking and assembly.
o Final sanding and finishing.

Estimated Costs

1. Dais Downview Monitor Glass Covers (qty 7):
• Materials: $560 x 7 = $3,920 less 10% volume discount = $3,528 • Labor (installation): ~12 hours at $76/hourly prevailing wage rate = $912 • Subtotal: $4,494
Attachment 3
3 2. Custom Moveable Recorder Desk:
• Materials (repurposed City owned oak + supplemental materials): $300 • Downview monitor kit: $560 x 1 = $560 less 10% = $504 • Labor (construction, finishing): ~12 hours at $76/hourly prevailing wage rate = $912 • Subtotal: $1,716

3. General & Administrative Costs:
• Documentation, reporting, and project coordination: $1,000

4. Total Project Cost:
• Grand Total: $7,210 (not to exceed without prior approval) Timeline
• Project Start Date: To be determined following approval • Downview Monitor Mount Retrofit Kit: 2 weeks after project start • Recorder Desk Completion: 4 weeks after project start • Project Completion Date: To be determined following approval.

Deliverables

1. Eight (8) mounted downview monitor glass covers installed.

2. Completed and installed custom moveable L-shaped recorder desk.

3. Weekly progress reports.

4. Documentation of hours logged and materials used.

Terms and Conditions

1. A 50% deposit is required upon acceptance of this proposal.

2. Remaining balance is due upon project completion and final inspection.

3. Any changes to the scope of work may result in additional costs, which will require prior written approval.

4. OuttaTheWoods is committed to maintaining clean and safe workspaces throughout the project duration.

Attachment 3
4 Authorization
To accept this proposal, please sign and return a copy. Thank you for the opportunity to contribute to the enhancement of City Hall’s facilities.

Authorized Representative:
___________________________
Brandon Swanson
City Administrator
Date: __________
OuttaTheWoods Custom Woodworking
Brian Steckler
[email protected]
831.402.1584
Attachment 3

CITY OF CARMEL-BY-THE-SEA

CITY COUNCIL
Staff Report
February 3, 2025

ORDERS OF BUSINESS
TO: Honorable Mayor and City Council Members
SUBMITTED BY: Brandon Swanson, Assistant City Administrator APPROVED BY: Chip Rerig, City Administrator
SUBJECT:

Discussion on establishing a Financial Stewardship Workgroup and an Emergency Preparedness Workgroup (Estimated time - 20 min)
RECOMMENDATION:

This discussion item was requested to be added by a majority of the City Council. Staff will be prepared to discuss options for establishing a Financial Stewardship Workgroup and/or an Emergency Preparedness Workgroup at the meeting.

BACKGROUND/SUMMARY:

FISCAL IMPACT:

PRIOR CITY COUNCIL ACTION:

ATTACHMENTS: