• Approve a 4.19 percent rate increase to charges by the City’s franchised hauler, GreenWaste Recovery, for the collection of solid waste, recycling and organics, effective on July 1, 2025, as shown in the attached Exhibit A. • Approve Amendment No. 4 to the Memorandum of Understanding between ReGen and Member Agencies for Fiscal Year 2025/26 regional costs associated with SB 1383.
PASSED AND ADOPTED BY THE CITY COUNCIL OF THE CITY OF CARMEL-BYTHE-SEA this 3rd day of June, 2025, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
APPROVED: ATTEST:
_________________________ _________________________
Dale Byrne Nova Romero, M.M.C.
Mayor City Clerk
Attachment 1
Resolution No. 2025-054
EXHIBIT A
Franchise Agreement
Rates Effective July 1, 2025
(All rates are monthly unless stated otherwise)
Attachment 1
Resolution No. 202
5-054
Attachment 1
HF&H Consultants
590 Ygnacio Valley Rd. Suite 105
Walnut Creek, CA 94596
Phone: (925) 977-6950
Web: hfh-consultants.com
May 28, 2025
Mary Bilse
Environmental Compliance Manager
City of Carmel-by-the-Sea
Sent via email
Subject: Review of GreenWaste Recovery’s 2025-26 Rate Request – Final Report Dear Mary Bilse:
HF&H Consultants, LLC (HF&H) was retained by ReGen Monterey (ReGen), formerly the Monterey Regional Waste Management District, to assist with a review of GreenWaste Recovery’s (GWR) request for an adjustment to customer rates, effective July 1, 2025, submitted to the City of Carmel-by-the-Sea (City) on April 1, 2025. This report presents our findings and recommendations.
Executive Summary
HF&H’s review of GWR’s Rate Period 11 (RP11) rate request to the City resulted in the following outcomes:
• HF&H has determined a 4.19% increase as appropriate as a result of the following components:
• 3.80% inflationary increase in labor-related costs
• 2.60% inflationary increase in vehicle-related costs (excluding fuel) • Fuel rate held flat, as set by ReGen
• 2.60% inflationary increase in other costs
• Depreciation held flat, per the Agreement
• 10.05% net processing costs increase due to an increase in per-ton tip fees and tonnage
• 16.89% increase in disposal costs due to an increase in per-ton disposal rate and tonnage
Refer to Figure 1 below for the impact to sample residential rates.
Attachment 2
Mary Bilse
May 28, 2025
Figure 1 – Example Rate Impact of Adjustment
Background
In 2012, the City, participating with other members of ReGen, issued a competitive request for proposals for collection services and entered into the new Agreement with GWR effective July 1, 2015. The Agreement provides for the following, related to the adjustment of rates:
• Rates are to be adjusted annually throughout the term of the Agreement, using various inflationary indices, actual tonnage, and changes in the tipping fees at ReGen, unless either the City or GWR request a Cost-Based Rate Adjustment (CBRA). • The City and GWR may mutually agree upon alternative approaches to structuring rates without amendment to the Agreement (Section 8.2.D).
• During the CBRA review in RP5, a number of issues surrounding the process for setting rates and the resulting rate relationships amongst sectors and materials were identified.
As such, the City and GWR have negotiated an amendment to the prescribed methodology for the CBRA and index adjustments so as to not alter rate relationships between service sectors and material types.
• Through negotiations of the amendment, and as a result of the desire to maintain current rate relationships between sectors and service levels, the City and GWR have prescribed a uniform rate adjustment to be applied to all sectors.
Rate Calculation Review
HF&H Scope of Work
HF&H performed this review of the rate request in accordance with Exhibit E1 (for the indexbased rate adjustment). These procedures included:
1. Review of the rate request for completeness and compliance with the procedures contained in Exhibit E1 of the Agreement.
2. Review for mathematical accuracy and logical consistency to determine that the rate request is mathematically correct, that the rows and columns of numbers add down and across as intended, and that the stated assumptions were, in fact, used. Also, to determine that the rate request is internally consistent and that any summary schedules agree to the supporting schedules and worksheets.
3. Verification of the inclusion of the franchise fee calculation in the adjustment.
4. Verification of contract compliance, including:
Current Rates
(RP10) RP11
Adjustment 4.19%
Residential 32-gallon rate $53.78 $56.03
Carmel Rate Adjustment
Attachment 2
Mary Bilse
May 28, 2025
A. The indices used in the adjustment.
B. The tip fees reported for the disposal/processing components of the rates.
C. The use of quarterly-reported tonnage data and allocations among agencies. A detailed audit of tonnage and allocations of tonnage reported by GWR was not a part of this scope of work. HF&H discussed GWR’s allocation methodology with them and the methodology appears reasonable and consistent with standard practices within the industry.
D. Any changes in governmental fees on the fee component of the rates; and the accurate application of the resultant percentage changes in the various rate components to the rate schedule approved by the City through the Agreement.
Review of Rate Request
RP11 Application
HF&H reviewed the rate application for RP11. The results of the calculation of RP11 per methodology of Exhibit E1 of the amendment can be seen in Figure 2 on the following page.
Attachment 2
Mary Bilse
May 28, 2025
Figure 2 – City of Carmel Application of Index-Based Adjustments to RP11 Rate Period 11
Annual Cost of Operations
Labor-Related Costs $959,028 1.038 $995,471
Vehicle-Related Costs 135,347 1.026 138,866
Fuel Costs 126,300 1 126,300
Other Costs 263,441 1.026 270,290
Direct Depreciation 151,264 N.A. 151,264
Total Allocated Costs - Labor, Vehicle, Fuel & Other 565,831 1.026 580,543 Total Allocated Costs - Depreciation & Start-Up 25,726 N.A. 25,726 Total Annual Cost of Operations $2,226,938 $2,288,461
Profit $369,771 OR=85.76 $379,987
Pass-Through Costs
Disposal Costs $199,408 Tons*Tip Fee $233,093
Curbside Supplemental (7,152) 1.00 (7,152)
Recycling Processing Costs 69,117 Tons*Tip Fee 73,585
Residue Processing Costs - Tons*Tip Fee -
Yard Trimmings Processing Costs 92,380 Tons*Tip Fee 102,974 Food Waste Processing Costs 26,796 Tons*Tip Fee 30,657
C&D Processing Costs - Tons*Tip Fee -
Interest Expense 44,270 N.A. 44,270
Direct Lease Costs - N.A. -
Total Allocated Costs - Lease 38,993 N.A. 38,993
Total Pass-Through Costs $463,812 $516,420
Total Costs before Agency Fees $3,060,521 $3,184,869
Agency Fees/Payments
Franchise Fee $458,996 13.00% $478,211
ReGen MOU Costs 11,225 Actual 14,213
Other Adjustments (as needed from time to time)
Adjustment from Tip Fee Estimates - N.A. $1,256
Total Calculated Costs $3,530,742 $3,678,549
Rate Increase 4.19%
Rate Period 10
Adjustment
Factor
Attachment 2
Mary Bilse
May 28, 2025
Review of GWR Costs
There are four major components to GWR’s rate application: (1) calculation and application of the inflationary indices as prescribed in the Agreement; (2) the disposal and/or processing component; (3) the Agency Fees; and (4) other one-time adjustments.
There are three indices used in the index adjustment: Consumer Price Index (CPI), fuel index, and labor index. The annual percentage change in each index is used to calculate the coming year’s cost for the line items to which they apply.
HF&H has reviewed, and GWR has confirmed, the accuracy of each of these indices. It is noted that the fuel index remains unchanged, as reported by ReGen management staff.
Review of Disposal/Processing Component
Collected tonnage for Calendar Year 2024 was used for the RP11 review, in accordance with the amendment. The disposal and processing components also consider the tipping fees charged by ReGen to project anticipated disposal and processing costs at ReGen. Figure 3 below outlines the changes in the City’s disposal and processing costs for each material type, based on ReGen’s tip fees, effective July 1, 2025, which have been incorporated into our RP11 review.
Figure 3 - Impact of ReGen Tip Fee Changes
Review of Fee Component
HF&H ensured that the fee component of each rate matches the contractual percentage of 13% for franchise fees, which are remitted to the City by GWR.
Additionally, rate application review costs and other identified ReGen costs totaling $14,213 were added as a one-time adjustment. These costs cover the rate review, franchise management, staff time, and public education and outreach.
Review of Other One-Time Adjustments
HF&H reviewed the actual tip fees implemented at ReGen in RP10 and compared them to the projected tip fees included in the RP10 application. The result of this review was an increase of $1,256 to reflect the difference between the estimated tip fees for Food Waste included in the prior rate adjustment and the actual tip fee approved by ReGen.
Material 2024 Tons Projected Per
Ton Tip Fee
Rate Period 11
Costs
A B A x B
Solid Waste 2,878 $81.00 $233,093
Recycling 1,795 41.00 73,585
Yard Trimmings 2,102 49.00 102,974
Food Waste 444 69.00 30,657
Attachment 2
Mary Bilse
May 28, 2025
New Rates
Attached hereto is a table of all new rates recommended for RP11 based on the adjustments described in this memo (Attachment A). The City requested a 32-gallon commercial organics rate be added to the rate sheet to be effective July 1, 2025. The recommended rates for 32- gallon commercial organics service, with frequencies of one to six times per week, are based on the relationship between the 64- and 96-gallon rates, applied to the 64-gallon rate, and are shown in Attachment A. The City and GWR agree with the recommended rates for 32- gallon commercial organics service, with frequencies of one to six times per week. HF&H recommends adopting these rates by resolution to be effective July 1, 2025. * * * * *
We would like to express our appreciation to GWR staff for their assistance and cooperation in this process. Should you have any questions, please call me at (925) 977-6964 or [email protected].
Sincerely,
HF&H CONSULTANTS, LLC
Rob Hilton Dave Hilton
President Senior Project Manager
Attachment 2
Attachment A
Carmel Rates Effective July 1, 2025
Service Level
20 Gal Back/Side
32 Gal Back/Side
64 Gal Back/Side
96 Gal Back/Side
Notes:
See Exhibit B1 for specific service availability
Service Level 1x/week 2x/week 3x/week 4x/week 5x/week 6x/week 32-Gallon Cart $ 56.42 $ 112.88 $ 143.13 $ 173.99 $ 204.67 $ 276.14 64-Gallon Cart $ 108.67 $ 176.87 $ 245.34 $ 313.83 $ 462.70 $ 587.52 96-Gallon Cart $ 134.04 $ 252.06 $ 374.15 $ 471.75 $ 605.78 $ 768.83 1-Cubic Yard Bin $ 309.47 $ 582.07 $ 796.54 $ 1,001.26 $ 1,206.00 $ 1,533.10 2-Cubic Yard Bin $ 454.76 $ 908.87 $ 1,363.66 $ 1,820.31 $ 2,144.24 $ 2,282.62 3-Cubic Yard Bin $ 643.89 $ 1,136.09 $ 1,590.58 $ 1,968.61 $ 2,272.71 $ 2,726.82 4-Cubic Yard Bin $ 856.67 $ 1,409.86 $ 2,272.52 $ 2,831.63 $ 3,082.62 $ 3,333.63 2-Cubic Yard Compactor $ 497.47 $ 994.27 $ 1,491.76 n/a n/a n/a 3-Cubic Yard Compactor $ 707.94 $ 1,264.20 $ 1,782.74 n/a n/a n/a 4-Cubic Yard Compactor $ 942.07 $ 1,580.65 $ 2,528.72 n/a n/a n/a Service Level 1x/week 2x/week 3x/week 4x/week 5x/week 6x/week 64-Gallon Cart $ 16.29 $ 26.53 $ 36.80 $ 47.07 $ 69.40 $ 88.12 96-Gallon Cart $ 20.12 $ 37.81 $ 56.13 $ 70.77 $ 90.88 $ 115.31 1-Cubic Yard Bin $ 46.43 $ 87.32 $ 119.48 $ 150.17 $ 180.90 $ 229.97 2-Cubic Yard Bin $ 68.21 $ 136.33 $ 204.55 $ 273.05 $ 321.64 $ 342.41 3-Cubic Yard Bin $ 96.59 $ 170.41 $ 238.59 $ 295.28 $ 340.92 $ 409.01 2-Cubic Yard Compactor $ 18.43 $ 36.76 $ 55.22 n/a n/a n/a 3-Cubic Yard Compactor $ 21.91 $ 21.08 $ 14.58 n/a n/a n/a Service Level 1x/week 2x/week 3x/week 4x/week 5x/week 6x/week 32-Gallon Cart $ 66.05 $ 93.07 $ 120.65 $ 156.60 $ 265.04 $ 336.74 64-Gallon Cart $ 81.48 $ 132.64 $ 184.00 $ 235.39 $ 347.02 $ 440.65 96-Gallon Cart $ 100.52 $ 189.04 $ 280.62 $ 353.82 $ 454.36 $ 576.62 1-Cubic Yard Bin $ 232.12 $ 436.57 $ 597.39 $ 750.92 $ 904.51 $ 1,149.83 2-Cubic Yard Bin $ 341.07 $ 681.66 $ 1,022.75 $ 1,365.24 $ 1,608.18 $ 1,711.95 Frequency
Commercial/Multi-Family Food Waste Collection Rates
Frequency
Commercial/Multi-Family Recycling Collection Rates
$ 56.03 Included Included
$ 88.56 Included Included
$ 112.25 Included Included
Commercial/Multi-Family Solid Waste Collection Rates
Frequency
$ 50.43 Included Included
Residential Solid Waste Collection Rates
Solid Waste Recycling Organics
Attachment 2
Attachment A
Carmel Rates Effective July 1, 2025
Service Level 1x/week 2x/week 3x/week 4x/week 5x/week 6x/week 32-Gallon Cart $ 66.05 $ 93.07 $ 120.65 $ 156.60 $ 265.04 $ 336.74 64-Gallon Cart $ 81.48 $ 132.64 $ 184.00 $ 235.39 $ 347.02 $ 440.65 96-Gallon Cart $ 100.52 $ 189.04 $ 280.62 $ 353.82 $ 454.36 $ 576.62 1-Cubic Yard Bin $ 232.12 $ 436.57 $ 597.39 $ 750.92 $ 904.51 $ 1,149.83 2-Cubic Yard Bin $ 341.07 $ 681.66 $ 1,022.75 $ 1,365.24 $ 1,608.18 $ 1,711.95 3-Cubic Yard Bin $ 482.92 $ 852.07 $ 1,192.92 $ 1,476.45 $ 1,704.53 $ 2,045.10 Service Level MSW REC FW YT C&D
10 YD $ 792.26 $ 792.26 $ 792.26 $ 792.26 $ 792.26
20 YD $ 870.99 $ 870.99 $ 870.99 $ 870.99 $ 870.99
30 YD $ 1,082.26 $ 1,082.26 $ 1,082.26 $ 1,082.26 $ 1,082.26 40 YD $ 1,293.56 $ 1,293.56 $ 1,293.56 $ 1,293.56 $ 1,293.56 Per Ton $ 93.10 $ 47.13 $ 79.31 $ 56.32 $ 93.10
Service Sector Charge Per Event*
Cart Rental - All Sizes RES
Cart Replacement RES
Re-Delivery or Re-Start RES
Cart Cleaning RES
Non-Scheduled Collection RES
Cardboard Sticker COM
Difficult to Service Cart COM
Difficult to Service Bin COM
Locking Bin COM
Cart Replacement COM
Cart Cleaning COM
Bin Swap - Cleaning or Repainting COM
Bulky - Recyclable RES/COM
Bulky - Non Recyclable RES/COM
Bulky - Event RES/MFD
Covered Box RO
Driver Time per Hour RO
Dry Run or Relocation RO
Extra Days RO
*Note: Application of fees shall be as described in Franchise Agreement Note: All rates are monthly unless stated otherwise
$ 53.64
$ 44.70
$ 134.08
$ 196.65
$ 134.08
$ 44.70
Roll-Off Collection Rates (Per Pull)
Material
$ 44.70
$ 134.08
$ 35.76
Additional Service Rates
$ 5.37
$ 107.27
$ 44.70
$ 44.70
$ 107.27
$ 89.38
Commercial/Multi-Family Yard Trimmings Collection Rates Frequency
$ 5.37
$ 1.79
$ 16.62
$ 33.98
Attachment 2
MEMORANDUM OF UNDERSTANDING
BETWEEN THE MONTEREY REGIONAL WASTE MANAGEMENT DISTRICT DBA
REGEN MONTEREY AND ITS MEMBER AGENCIES REGARDING ASSISTANCE WITH
FRANCHISE AGREEMENT MATTERS
This Memorandum of Understanding (“MOU”) is made and entered into as of the date of the signatures set forth below by and between the MONTEREY REGIONAL WASTE MANAGEMENT DISTRICT DBA REGEN MONTEREY (“ReGen Monterey,” “ReGen”), a California Garbage and Refuse Disposal District, and its member agencies the cities of
CARMEL-BY-THE-SEA, DEL REY OAKS, MARINA, MONTEREY, PACIFIC GROVE, SAND CITY, and SEASIDE; and the PEBBLE BEACH COMMUNITY SERVICES DISTRICT (“Participating Member Agencies”). Collectively these entities shall be known herein as “Parties” or individually as a “Party.”
Recitals
A. The Participating Member Agencies have jurisdiction and authority to make adequate provisions for solid waste collection within their territories. The Participating Member Agencies have certain rights and interests related to administration and management of their existing franchise agreements, planning for future franchise agreements, and other matters within the Participating Member Agencies’ jurisdiction related to solid waste.
B. The Participating Member Agencies have determined that it is in their best interest to coordinate some of these activities. This coordination is being facilitated by ReGen Monterey’s Technical Advisory Committee (TAC) through a subcommittee composed of staff from each Participating Member Agency and ReGen.
C. The Participating Member Agencies have further determined that ReGen Monterey has the expertise and resources necessary to support the Participating Member Agencies in their implementation of these activities and have now requested that ReGen incur costs to provide these activities.
D. The Participating Member Agencies have agreed to reimburse the ReGen Monterey for proportionate shares of certain costs incurred by the ReGen for these activities.
E. The form and content of this MOU have been presented to the TAC subcommittee, and the TAC subcommittee has recommended it for approval by the Parties.
NOW THEREFORE, in consideration of the mutual benefits to be derived by ReGen Monterey and the Participating Member Agencies, and of the promises contained in this MOU, the Parties agree as follows:
Section 1. Recitals: The recitals set forth above are incorporated into this MOU. 1 Attachment 3
Section 2. Purpose: The purpose of this MOU is to provide a structure for the Participating Member Agencies to authorize ReGen Monterey to perform certain activities to support the Participating Member Agencies’ in their administration and management of their existing franchise agreements, plan for future franchise agreements, and implement other matters within the Participating Member Agencies’ jurisdiction related to solid waste (“Coordination Activities”), and reimburse ReGen for such Coordination Activities it performs.
Section 3. Voluntary: This MOU is voluntarily entered into by the Parties for the purpose of coordinating the Coordination Activities.
Section 4. Term: This MOU shall become effective on the date of its full execution by the Parties and shall remain in effect until it is terminated by the Parties.
Section 5. Scope of Work, Costs & Cost Sharing: The scope of work for the Coordination Activities, and associated costs, are set out in Exhibit A, entitled Detailed Activities and Costs, attached hereto and incorporated herein. Allocation of such costs to the Participating Member Agencies is set out in Exhibit B, entitled Participating Member Agencies’ Annual Proportionate Shares and Costs, attached hereto and incorporated herein.
No later than March 1 of each year, and at such other times as directed by the Parties, the TAC subcommittee shall meet to consider and, if deemed necessary, recommend modifications to Exhibits A and B; subject to approval of such modified Exhibits A and B by ReGen Monterey and each Participating Member Agency, this MOU shall be deemed amended to incorporate such modified Exhibits A and B.
Section 6. ReGen Monterey Agrees:
(a) ReGen staff will manage the Coordination Activities as identified in Exhibit A, which activities may include contracting with third party vendors when reasonably necessary and paying those vendors for contracted costs.
(b) Two times per year, on dates to be determined by the TAC subcommittee, ReGen will invoice Participating Member Agencies for each Participating Member Agency’s proportionate share of estimated costs as shown in Exhibit B with each invoice to be fifty percent (50%) of the Participating Member Agency’s estimated share of costs. (c) ReGen Monterey will maintain an accounting of activities and actual incurred costs and provide reconciliation of payments annually. Differences between estimated costs and actual incurred costs will result in either: 1) an adjustment made to the final annual payment for each Participating Member Agency, or 2) such cost difference shall be incorporated into the subsequent year cost allocation.
Section 7. The Participating Member Agencies Agree:
2 Attachment 3
(a) To reimburse ReGen Monterey for all expenses incurred by ReGen under this MOU in accordance with each Participating Member Agency’s proportionate share as shown on Exhibit B.
(b) To make a full-faith effort to cooperate with one another and with ReGen Monterey to achieve the purposes of this MOU by providing information, reviewing information in a timely manner, and informing their respective administration and governing bodies.
Section 8. Termination. Any Party may terminate its participation in this MOU at the conclusion of ReGen Monterey’s fiscal year (June 30) upon giving written notice to the other Parties no later than April 1 of the then-current fiscal year. Within ten (10) days following a Party’s termination date, such party shall pay ReGen all charges then due and payable and shall pay when determined any additional charges that shall later come due under the MOU, as provided in and subject to the limits set out in Exhibits A and B.
Section 9. General Provisions.
(a) This MOU is binding and for the benefit of the respective successors, heirs, and assigns of each Party; provided however, no Participating Member Agency may assign its respective rights or obligations under this MOU without the prior written consent of ReGen Monterey.
(b) This MOU is governed by, interpreted under, and construed and enforced in accordance with the laws of the State of California. The Parties agree that the jurisdiction and venue of any dispute between the Parties will be the Superior Court of California of the County of Monterey.
(c) If any provision of this MOU is determined by any court to be invalid, illegal, or unenforceable to any extent, then the remainder of this MOU will not be affected, and this MOU will be construed as if the invalid, illegal, or unenforceable provision had never been contained in this MOU.
(d) Waiver by any Party to this MOU of any term, condition, or covenant of this MOU will not constitute a waiver of any other term, condition, or covenant. Waiver by any Party of any breach of the provisions of this MOU will not constitute a waiver of any other provision, nor a waiver of any subsequent breach or violation of any provision of this MOU. (e) This MOU may be executed in any number of counterparts, each of which is an original but all of which taken together will constitute one and the same instrument, provided, however, that such counterparts have been delivered to all parties to this MOU. A signature delivered on any counterpart by electronic means will for all purposes be deemed to be an original signature to this MOU. The term “electronic means” means one that is executed by applying an electronic signature using technology mutually acceptable to the Parties. (f) All parties acknowledge they have been represented, or have had the opportunity to be represented, by counsel in the preparation and negotiation of this MOU. Accordingly, this 3 Attachment 3
MOU will be construed according to its fair language. Any ambiguities will be resolved in a collaborative manner by the Parties and must be rectified by amending this MOU. (g) This MOU supersedes and replaces all prior MOUs between the Parties hereto relating to the subject matter of this MOU.
(h) Nothing in this MOU may be construed as giving a Party the right or ability to bind the other Party and nothing in this MOU may be construed to create any joint liability with regard to, or as a result of, the activities undertaken by the other Party or its agents. All officers, directors, employees, representatives, and agents of a Party will remain the officers, directors, employees, representatives, and agents of that Party and will be subject to the laws, procedures, rules, and policies governing such Party.
(i) Nothing herein may be considered as creating any rights and/or obligations by any of the Parties to this MOU to any third parties, beyond those otherwise required and established by law.
(j) Each entity signing below warrants and represents that it has the power, authority and right to act on behalf of its Party and to bind its Party in accordance with this MOU. (k) From time to time, by mutual agreement, the Parties may reopen, in whole or in part, elements of this MOU, including modifying the member agencies participating in the MOU.
Except as provided in Section 5 above, this MOU may not be changed, modified, or amended, in whole or in part, except in a writing signed by an authorized representative of each Party.
IN WITNESS WHEREOF, the Parties have caused this MOU to be executed by their duly authorized representatives as of the date of their respective signatures.
MONTEREY REGIONAL WASTE MANAGEMENT DISTRICT dba REGEN MONTEREY By: ________________________ DATE: _______________
APPROVED AS TO FORM:
_______________________
4 Attachment 3
CITY OF CARMEL-BY-THE-SEA
By: ________________________ DATE: _______________
APPROVED AS TO FORM:
_______________________
5 Attachment 3
CITY OF DEL REY OAKS
By: ________________________ DATE: _______________
APPROVED AS TO FORM:
_______________________
6 Attachment 3
CITY OF MARINA
By: ________________________ DATE: _______________
APPROVED AS TO FORM:
_______________________
7 Attachment 3
CITY OF MONTEREY
By: ________________________ DATE: _______________
APPROVED AS TO FORM:
_______________________
8 Attachment 3
CITY OF PACIFIC GROVE
By: ________________________ DATE: _______________
APPROVED AS TO FORM:
_______________________
9 Attachment 3
SAND CITY
By: ________________________ DATE: _______________
APPROVED AS TO FORM:
_______________________
10 Attachment 3
CITY OF SEASIDE
By: ________________________ DATE: _______________
APPROVED AS TO FORM:
_______________________
11 Attachment 3
PEBBLE BEACH COMMUNITY SERVICES DISTRICT
By: ________________________ DATE: _______________
APPROVED AS TO FORM:
_______________________
12 Attachment 3
COUNTY OF MONTEREY
By: ________________________ DATE: _______________
APPROVED AS TO FORM:
_______________________
13 Attachment 3
EXHIBIT A
DETAILED ACTIVITIES & COSTS
FY 2025-2026 (July 1-June 30)
Scope of Work
ReGen Monterey, through its own forces or through retention of third-party consultants, will perform the following Coordination Activities:
1. Support Participating Member Agencies’ Administration and Management of Existing Franchise Agreements with GreenWaste Recovery, Inc. The scope generally includes:
A. Review and Analyze Contractor’s Quarterly Reports
B. Review and Analyze Contractor’s Annual Reports
C. Review and Analyze Franchise Fee Payments
D. Review and Analyze Contractor’s Annual Rate Adjustment Application E. Provide Other Support and Technical Assistance Related to Administration and Management of Existing Franchise Agreements
F. Facilitate Monthly Review Meetings with ReGen Monterey’s Technical Advisory Committee (TAC)
G. Develop Reporting Templates under Existing Franchise Agreements H. Monitor Contract Compliance
2. Support Participating Member Agencies’ Development of Next Generation of Franchise Agreements. The scope generally includes:
A. Public and Stakeholder Engagement
B. Solicitation Document Design and Drafting
C. Solicitation Process Support
D. Negotiations Support
3. Other Support Tasks as Assigned by the Participating Member Agencies Except as expressly provided above, all activities related to administration and management of Participating Member Agency franchise agreements and other tasks within the jurisdiction of the Participating Member Agency remain with the Participating Member Agency.
Estimated Costs
[Add appropriate detail here; it should reflect on the FY (or should make clear where the cost spans more than one FY]
14 Attachment 3
The above is an estimate of the costs to provide the Coordination Activities in the specified Fiscal Year; actual costs may vary based on level of effort required, change in assumptions, change in requested scope, significant and unanticipated issues or concerns, and other factors. 15 Attachment 3
EXHIBIT B
PARTICIPATING MEMBER AGENCIES’
ANNUAL PROPORTIONATE SHARES & COSTS*
FY 2025-2026 (July 1-June 30)
Population Per Agency
Estimated
Cost/Year
Per Agency
Estimated
Cost/Year With
Minimums
# % of Total
Carmel-by-the-Sea
Del Rey Oaks
Marina
Monterey City
Pacific Grove
Pebble Beach CSD
Sand City
Seaside
TOTAL 100%
*Participating Member Agencies’ proportionate costs subject to adjustment annually in accordance with any change in scope and total costs. Costs “with minimums” will be utilized. 16 Attachment 3
City of Carmel-by-the-Sea
Annual Report of Solid Waste,
Recycling and Organics Collection Services
2024
Submitted by
GreenWaste Recovery, LLC
Attachment 4
1 Executive Summary – City of Carmel-by-the-Sea
Section I: Summary Assessment
Throughout 2024, GreenWaste continued to build on previous years efforts to reach the City of Carmel-by-the-Sea’s 65% diversion goal, focusing its efforts on reducing the amount of solid waste (MSW) disposed of and finding the best and highest use for materials recovered through our worldclass sorting and processing facilities. Recycling and organics collection remain a crucial part of our strategy, making up 1,794.8 and 2,666.0 tons per year respectively.
As GreenWaste monitors progress in achieving the City’s 65% diversion goal and other waste reduction targets, disposal trends remain a key metric when evaluating success.
Overall, the City of Carmel-by-the-Sea’s diversion percentage decreased by 2% to 60% in 2024.
Throughout 2024, GreenWaste’s Public Education and Outreach Plan (PEOP) focused on four main goals:
1. Increase organics program across residential and commercial sectors. Education and outreach will be essential to creating sustained behavior change.
2. Design a campaign geared towards diverting organics from landfill reducing contamination across all materials. Equipping commercial and residential customers with education on proper disposal including bulky items and e-waste to build a multi-faceted approach to reducing contamination and increasing diversion.
3. Implement education and awareness around best practices, such as reducing the use of plastic bags in the recycle and organic waste streams. Encourage customers to place recycling in containers loose and dry and to keep bags, including BPI-certified or compostable bags out of the residential organic waste stream.
4. Create a safety campaign to ensure customers are aware of common waste-hazards including batteries and e-waste. Provide customers with education on proper disposal of hazardous items that are not accepted in collection containers.
This report focuses on the implementation and success of each of these goals, participation in collection programs, tonnage trends, subscription levels, and outreach and education provided to customers. We will provide an update on program efficiency, economic indicators, and our effectiveness in meeting our shared goals and objectives as set forth by our franchise agreement.
Attachment 4
2 2024 Annual Tonnage Summary
Customer Type Material Total Material Type as a Percentage of the Customer Type Total Tonnage
Single Family
MSW 870.6 24.22%
Recycle 846.8 23.56%
Organics 1,877.1 52.22%
Diversion 76%
MFD
MSW 54.6 45.91%
Recycle 34.9 29.31%
Organics 29.5 24.78%
Diversion 54%
Commercial
MSW 754.6 41.13%
Recycle 636.6 34.70%
Organics 443.3 24.17%
Diversion 59%
Debris Box
MSW 357.5 47.72%
Recycle -
Organics 120.2 16.05%
C&D 271.3 36.22%
Diversion 52%
Agency
MSW 1,198.02 66.44%
Recycle 276.50 10.82%
Organics 260.6 22.75%
C&D 23.0 0.00%
Diversion 29%
Summary of Total
Tonnage for All
Customer Types
MSW 3,235.2 40.49%
Recycle 1,794.8 22.46%
Organics 2,666.0 33.37%
C&D 294.4 3.68%
Diversion 60%
GREENWASTE RECOVERY, LLC
Annual Report - City of Carmel-by-the-Sea
January 1 - December 31, 2024
Section 1 | Tonnage Report
Attachment 4
3 I. Single-Family Residential
The City of Carmel-by-the-Sea’s single-family sector continues to see high participation in recycling and organics programs.
Overall, the City of Carmel-by-the-Sea’s single-family sector diversion percentage remained at 76% in 2024.
Outreach tactics vary significantly due to the number of single-family customers versus all other sectors. Print materials such as newsletters, postcards, or social media posts continue to be the main avenue for educating customers. Print content is developed based on campaign goals designated in the PEOP, as well as information gathered by drivers and outreach coordinators while in the field.
Successes and challenges for 2024 are identified below, followed by specific program recommendations and strategies that will be deployed in 2024.
Successes:
1. 65% Diversion Reached: The diversion goal set forth in the franchise agreement is 65% city-wide. The single-family sector continues to surpass that mark and remains a driving force in reaching the city’s overall diversion goal.
2. Sustained Participation in Expanded Curbside Program: GreenWaste has seen sustained participation in the Bulky Item Reuse Event Program within the City.
Curbside Program 2023 2024
Bulky Item Reuse Events 200 199
Attachment 4
4 II. Multi-Family Dwellings (MFD)
All MFD
Customers
NON AB341
Customers
AB341 MFD
Customers
Total Customers 24 4 20
% of the MFD Waste Stream 100% 17% 83%
Customers Participating in
Recycling Programs
24 4 20
*Detailed documentation on all AB341 customer touches is provided in the AB341 annual report. See AB341 annual report for additional information.
Despite GreenWaste’s effectiveness in contacting 100% of the AB341-eligible MFD customers, obstacles continue to impede effective implementation and use of diversion programs.
GreenWaste continues to promote recycling, and diversion programs and highlights potential costsavings associated with their implementation.
It is widely agreed that there are significant challenges in achieving both high and consistent diversion in the multi-family sector, yet every year, GreenWaste looks for innovative solutions to solve these challenges.
Overall, the City of Carmel-by-the-Sea’s multi-family sector diversion percentage remained at 54% in 2024.
Successes:
1. AB 341 Compliance: All Carmel-by-the-Sea's multifamily customers have consistently participated in recycling services, having achieved 100% compliance for several years in a row.
As of the end of 2024, MFD data indicates that approximately 26 cubic yards of recycling are being diverted from the landfill each week from this sector. The Outreach team continues to monitor feedback from our drivers to enhance recycling services and highlight the cost benefits of recycling vs. landfilling to property management.
2. SB1383 Participation: The outreach team has been working to increase the sector’s use of their organics carts. Our team is labeling our inventory of bins and carts with educational decals.
Additionally, our operations team ensures all organic carts that leave our facility have decals as well. This coming year, we are looking to update the design of these decals with industry and design best practice for point-of-disposal signage and to ensure design consistency with other outreach materials. We have also created a new "What Goes Where" guide, which details which stream customers should put over 100 of the most common materials.
3. City Support: The city has been actively monitoring residents who have not yet subscribed to organic services and have been encouraging participation by enforcing municipal codes and Attachment 4
5 imposing potential fines. Additionally, the city has organized events such as Earth Day and Community Day, where the outreach team collaborates with other organizations to educate residents on proper sorting practices. These events also address service-related questions and provide educational materials, fostering open spaces for community involvement and engagement.
Challenges:
1. Incentivizing Participation for Tenants: Multi-family customers usually do not receive or pay their waste bill, which limits our ability to incentivize participation through financial extranalities. Our team has observed high levels of contamination, particularly from film plastic, in both recycling and organic waste streams. Contaminated recycling and organic carts may incur fees for contamination or return service, which sometimes negates the benefits of participating in these programs. This can deter property managers from increasing recycling and organic subscriptions.
Proposed Strategies: With the city's support, there will be increased contamination enforcement to increase pressure on the multi-family sector to closely monitor their waste streams. With our assistance and regular reporting, the city will issue violation notices as a warning, along with fines ranging from $100 for the first offense to $500 for the fourth offense. This more aggressive approach aims to foster a cultural change regarding waste sorting practices and possibly encourage increased participation.
2. Compostable-wear in the Organics Stream: Compostable wear is being marketed as organic and compostable. While our program does not accept them in the organics stream, we are still seeing a significant amount of compostable-wear such as bags, utensils, plates, etc., in the green organics cart.
Proposed Strategies: The outreach team and operations are collaborating closely to monitor organic carts for excessive contamination. The goal is to provide feedback on contamination issues and educate users on proper sorting practices. Additionally, our drivers have been tagging customer carts, notifying them when contaminants are detected in the organic stream. This helps further educate customers and also reminds them that their carts are monitored for contamination. Furthermore, we will notify the City of regular offenders and they will be implementing notices of violation for individuals who contaminate the waste streams.
Attachment 4
6 III. Commercial Businesses (COM)
All COM
Customers
NON AB341 COM
Customers
AB341 COM
Customers
Total Customers 229 203 26
Percent of the Commercial
Waste Stream
100% 89% 11%
Customers Participating in
Recycling Programs
231 199 26
*Detailed documentation on all AB341 customer touches is provided in the annual report.
See AB341 annual report for additional information.
Significant targeted outreach was provided to large commercial generators that are required to comply with AB341 and AB1826. Per the Franchise Agreement, GreenWaste is required to “Offer Recycling opportunity assessments at least one (1) time annually to AB341 Eligible Commercial Customers to promote Recyclable and Organic Materials Collection.”.
GreenWaste continues to remain successful in creating these assessment opportunities, however, while these customers are the largest individual generators, they only make up only 12% of the total commercial customer base in the City of Carmel-by-the-Sea. In 2024, GreenWaste continued its efforts to identify generators outside of the AB341 and AB1826 customer list to provide them with outreach, education, and technical assistance.
Overall, the City of Carmel-by-the-Sea’s commercial sector diversion percentage remained at 59% in 2024.
There are several challenges specific to the commercial sector which make it difficult to achieve high and consistent diversion. Despite those challenges, GreenWaste is seeing large year-overyear increases in diversion.
Successes and challenges for 2024 are identified below, followed by specific program recommendations and strategies that will be deployed in 2024.
Successes:
1. AB341 100% Compliance: GreenWaste has worked closely with Carmel-by-the-Sea's commercial sector to help ensure they have consistently met their AB 341 requirements to subscribe to recycling services. Our outreach team works together with the sector to provide feedback and service recommendations, which have helped expand recycling services for businesses. This initiative has successfully reduced the amount of recyclable material ending up in landfills while also providing education to maximize recycling diversion and cut costs. Additionally, this approach has allowed businesses to increase organic waste services, as the reduction in costs from expanded recycling creates an incentive for those with more recycling services than trash.
Workshops and Training: Our outreach team has been conducting waste assessments with Attachment 4
7 the commercial sector and following up with in-person training on best sorting practices and what is allowed and not allowed in each of the three streams. The outreach team additionally developed step by step worksheets to guide users on setting up sorting stations in their businesses. This resource was designed for a variety of the commercial sector, including retail, restaurants, hospitality, and office spaces. It aims to help businesses track their current waste and tailor services to meet their specific needs.
2. Community Collaboration: The GreenWaste outreach team has established strong relationships with local community leaders and members. This has been invaluable as we implement waste-sorting education and gather feedback on operational concerns. Since April, the team has been meeting monthly with the organization Carmel Cares, which includes business owners from realty offices, restaurant owners, retail shop owners, city staff, and residents. These meetings provide a platform to discuss concerns, address questions, and plan upcoming events. Through these discussions, we have identified areas where further education is needed to enhance participation and increase waste diversion, all with continuous feedback from the community.
Challenges:
1. Limited Spaces: This is an ongoing issue in Carmel by the Sea. Many businesses face difficulty participating in organics collection due to a lack of space for carts or bins. Although some have been granted physical space waivers for SB 1383 compliance, these waivers do not allow businesses to fully engage in organics diversion programs. And customers must choose between having a recycling cart or a trash cart while the majority of their waste comes from those streams.
Proposed Strategies: With support from the city, we have encouraged some businesses to participate in recycling and organics collection. This has involved storing recycling and organics containers inside the businesses rather than in designated areas. While there has been some pushback, city reinforcement has helped us successfully engage businesses in diverting recycling and organics from the landfill.
2. Waste Overflow: During the summer months, Carmel-by-the-Sea experiences a significant influx of tourists and part-time residents. This increase in population leads to a higher amount of waste in the commercial sector, particularly from restaurants. Drivers have indicated that carts are overflowing with excess cardboard, trash bags, and organic waste. Our drivers have been instructed to collect all this waste and bill accordingly. However, this sometimes results in spillage onto sidewalks and streets that attract birds, which can lead to larger messes that our drivers struggle to clean up.
Proposed Strategies: With the help of drivers who provide detailed feedback, we have identified specific customers who tend to generate more waste during the summer months. Our Outreach team will connect with these customers to offer a seasonal service option that is tailored to their specific waste management needs. Additionally, we can increase service frequency during this period to help prevent overflow and spillage onto the streets. These adjustments typically cost Attachment 4
8 less than the overflow fees charged for excess waste, which will help customers. Once the seasonal influx is over, customers can either modify their services back to the previous levels or schedule a change in advance to ensure they don’t forget. For those who have resisted or ignored our efforts to adjust their services, we will forward these accounts to the city for additional support.
Attachment 4
9 IV. Agency
All Agency
Accounts
NON AB341 Accounts AB341 Agency
Accounts
Total Accounts 15 12 3
Accounts Participating in
Recycling Programs
15 12 3
*Detailed documentation on all AB341 customer touches is provided in the annual report.
See AB341 annual report for additional information.
In 2024, the Outreach team continued to work with Agency Facilities to ensure source separation was taking place at each site. All Agency Facilities subscribe to recycling and organics programs, and participation in both continues to be seen.
Overall, the City of Carmel-by-the-Sea’s diversion percentage for agency facilities remained at 29% overall in 2024.
Challenges are identified below, followed by specific program recommendations and strategies that will be deployed in 2024.
Successes:
1. Community Collaboration: GreenWaste has partnered with Carmel Cares, an organization that comes quarterly to clean the agency's containers. During this collaboration, we have consistently received feedback from both the organization and the city regarding various issues, which we have been able to resolve promptly. This partnership has also helped us identify which sites require more frequent service. It also has helped us identify signs of potential illegal dumping and narrow down what businesses may be using the public cans for personal use. This collaboration has been beneficial for all parties.
2. Increase Recycling Opportunities: Many of the city agency containers have been upgraded to the new two-stream ribbon cans. This rollout has provided the community with better access to recycling options, as residents can now dispose of their recyclables through two separate streams. The ribbon cans are clearly labeled at their openings, guiding the public on how to sort their waste correctly. Additionally, the cans located along the beach feature updated acceptance list decals on their lids to educate beachgoers about what items are allowed in each of the two streams.
Challenges:
1. Illegal Dumping: Agency locations that are open to the public, such as parks or downtown areas, struggle with contamination and illegal dumping. Additionally, we suspect some businesses will use the downtown cans for their overflow waste.
Attachment 4
10 2. Proposed Solutions: GreenWaste will continue to reach out to customers who are potentially using city cans for personal use and offer to conduct a waste survey to better understand their needs and provide tailored services. Additionally, we will collaborate with the city to create more visible signs that educate the public about the acceptable materials for agency containers.
Attachment 4
11 V. Events, Workshops, Presentations or Sponsorships
Appendix
{Link Expires on April 30, 2025}
Section II: Vehicle Inventory:
Please see below link to access PC Vehicle List 2024.
Appendix
{Link Expires on April 30, 2025}
Section III: Cost Based Rate Adjustment Data:
This section does not apply to 2024.
Section IV: Collection and Subscription:
Please see the link below to access Collection and Subscription data.
Appendix
{Link Expires on April 30, 2025}
Section V: Public Education and Outreach:
a. Please see below link to access outreach materials provided to Customers, pursuant to Section Exhibit C, Section 1.9 or otherwise used for education and outreach efforts in accordance with Exhibit C of the Agreement.
Appendix
{Link Expires on April 30, 2025}
b. Effective 11/29/21 and forthgoing, record of print material disseminated, or direct contact was made.
Appendix
{Link Expires on April 30, 2025}
c. Please see the link below to access mass distribution and bill insert mailings.
Appendix
{Link Expires on April 30, 2025}
d. Please see the link below view 2024 social media posts, email communication and other electronic messages.
Attachment 4
12 Appendix
{Link Expires on April 30, 2025}
e. Please see below link to access 2024 Public Education and Outreach Plan.
Appendix
{Link Expires on April 30, 2025}
Section VI: Compliance Monitoring and Enforcement:
a. SB1383 Regulatory Non-Compliance Complaints:
Date Customer ID Address Investigation and Response Note None as of 2024
b. SB1383 Non-collection event reviews:
Date Customer ID Address Reason Note
None as of 2024
Attachment 4
Greenwaste Sustainability Report Highlights
Key highlights from the 2025 Sustainability Report include:
• GHG Emissions Decrease: With a 53.4% decrease in Total Scope 1 and 2 GHG emissions versus baseline, GreenWaste surpassed its 2030 emission reduction target of 45% total combined Scope 1 and Scope 2 market-based GHG emissions from its 2022 baseline. This remarkable achievement underscores the company’s commitment to renewable and zero emission energy sources.
• Double Materiality Assessment: In alignment with leading reporting standards, GreenWaste engaged with stakeholders across its value chain, including municipalities, customers, trade associations, non-profits, and employees, to prioritize the most important potential impact and business activity sustainability topics. • Domestic Recycling: GreenWaste sent the majority of its top diverted materials by ton to 100% domestic end-market processing. In doing so, GreenWaste supports the local circular economy and can reduce GHG emissions associated with material transportation.
• Continuous Innovation: GreenWaste continues to drive forward investments in emerging collection and material and resource recovery technology and pilot projects.
In 2024, GreenWaste piloted North America’s first refuse hydrogen-powered fuel cell electric vehicle and added to its fleet of electric collections vehicles. • Employee Culture: GreenWaste prides itself on the commitment its employees share in servicing customers. The company maintains a robust average tenure across its workforce, speaking to GreenWaste’s cultivation of an environment where growth, development, and wellbeing are celebrated at every level. GreenWaste also continues to focus on its safety initiatives, resulting in its low TRIR of 2.07 and LTIR of 0.41.
Attachment 5
CITY OF CARMEL-BY-THE-SEA
CITY COUNCIL
Staff Report
June 3, 2025
ADJOURNMENT
TO: Honorable Mayor and City Council Members
SUBMITTED BY: Chip Rerig, City Administrator
APPROVED BY: Chip Rerig, City Administrator
SUBJECT: Correspondence Received After Agenda Posting
RECOMMENDATION:
BACKGROUND/SUMMARY:
FISCAL IMPACT:
PRIOR CITY COUNCIL ACTION:
ATTACHMENTS:
CITY OF CARMEL-BY-THE-SEA
CITY COUNCIL
Staff Report
June 3, 2025
ADJOURNMENT
TO: Honorable Mayor and City Council Members
SUBMITTED BY: Chip Rerig, City Administrator
APPROVED BY: Chip Rerig, City Administrator
SUBJECT: Presentations received after agenda posting
RECOMMENDATION:
BACKGROUND/SUMMARY:
FISCAL IMPACT:
PRIOR CITY COUNCIL ACTION:
ATTACHMENTS:
AB 2561 - Vacancies Presentation
FY 25-26 Appropriations Limit Presentation
FY 25-26 Budget Adoption Presentation
Fire Hazard Severity Zone Ordinance PPT
Green Waste Rate Adjustment Presentation
Assembly Bill (AB) 2561 Presentation:
City of Carmel-by-the-Sea
Vacancies, Recruitment, and Retention Efforts
City Council Meeting
June 2, 2025
CITY OF CARMEL-BY-THE-SEA
1 • Effective January 1, 2025
• Requires all public employers to disclose the status of vacancies, recruitment, and retention efforts before budget adoption. • AB 2561 intends to foster transparency regarding the number of vacancies in a public agency, how the City conducts recruitments, and retention efforts.
• Additional obligation may apply if the vacancy rate in a bargaining unit exceeds 20%
2 Background – AB 2561
Total Budgeted Full-Time Positions FY 24/25: 96
CITY OF CARMEL-BY-THE-SEA 3
General Workforce Information
Represented 66
At Will 19
Ambulance 6
Council 5
Total 96
CITY OF CARMEL-BY-THE-SEA 4
Vacancy Information by Bargaining Units
• Recruitment for all vacancies will start in the coming weeks/months • Expected completion is summer 2025
Bargaining Unit Budgeted FTEs Vacancies % Vacant
General Unit (LiUNA) 33 3 9.1%
Management Unit (LiUNA) 11 1 9.1%
Police Officers Association 22 2 9.1%
Total 68 6 9.1%
• HR Policy & Process Enhancements:
• Working closely with hiring managers and our external recruiting consultant • Targeted job ads
• Faster application reviews
• Quicker interview scheduling
• Efficient conditional offer & background process
• The City’s salary and benefits alignment with market median in recent years have enhanced our competitiveness and reduced turnover.
5 City’s Recruitment & Retention efforts
CITY OF CARMEL-BY-THE-SEA 6
Conclusion
• The City successfully hired 22 new employees over the last 12 months • We will continue to evaluate and refine our policies with the goal of maintaining a high-quality workforce.
Thank you
City Council Meeting
June 3, 2025
CITY OF CARMEL-BY-THE-SEA
Resolution 2025-053
Appropriations (GANN) Limit
Adopting Fiscal Year 2025-2026
• State Constitution to place limit (ceiling) on spending by state, school districts and local governments
• State prescribed formula for calculating spending limit • Applies only to revenues defined as proceeds of taxes • Adjusted annually by change in cost-of-living and population (both factors provided by State Department of Finance)
• Council to select adjustment factors
• Change in local assessment roll or per capita personal income (historic choice)
• Change in City (historic choice) or County population Purpose and Background
Prior FY 24-25 Appropriations Limit of $42,449,301
X
Change factor of 1.0620 (A multiplied by B)
A-Based on City population adjustment (.9977) and
B-Based on State per capita income (1.0620)
FY 25-26 Appropriations Limit of $45,081,158
Spending Limit Calculation
• Confirm selection of annual adjustment factors as provided by State Department of Finance
• Change in City population and State per capita personal income • Adopt FY 25-26 Appropriation Limit (resolution 2025-053) • Appropriation Limit of $45,081,158 Recommendation
Fiscal Year 2025-2026
Budget Adoption
Resolution 2025-052
CITY OF CARMEL-BY-THE-SEA
June 3, 2025
Updates and Timeline
May 21, 2025 Budget workshop
• Remove Library Plan Admin and UV Film CIP projects ( $75K ) • Reduced for Rio & Junipero Medians and Devendorf Improvements ($90K) • CIP Project List Prioritized
• Questions 44 to 51 added to Q & A document
June 2, 2025 Council Approval of Fiscal Year 2025 – 2026 Budget • If approved, additional Budget Adjustments can be approved at the July Regular Meeting • If not approved, City Council will hold a special meeting on June 17 to continue work FY 25-26 Budget at-a-Glance
FY25-26 Proposed Revenues $34,915,081
General Fund Expenditures 28,778,542
Debt Service Expenditures 509,100
Pension Unfunded Liability Mitigation Expenditures 2,708,158 Capital Outlay Expenditures 7,834,000
FY25-26 Proposed Expenditures $39,829,800
Use of Fund Balance for Capital Projects $4,914,719
Funded Full Time Equivalent (FTE) positions 90.50
Staffing at-a-Glance
FY 24/25 FY 25/26
Department and Title Adopted Proposed Change
Administration
Human Resources Manager 0.00 1.00 1.00
Senior Human Resources Analyst 1.00 0.00 -1.00
Community Activities
Community Services Assistant 1.00 0.50 -0.50
Library
Library Associate 0.00 3.00 3.00
Library Assistant (full-time) 4.00 1.00 -3.00
Librarian II 1.00 0.00 -1.00
Hourly Library Assistant 3.25 2.00 -1.25
Community Planning & Building
Senior Planner 0.00 1.00 1.00
Assistant Planner 1.00 0.50 -0.50
Code Compliance Coordinator 2.00 1.50 -0.50
Police
Sergeant 2.00 3.00 1.00
Police Officer 9.00 10.00 1.00
Ambulance
Paramedics 6.00 0.00 -6.00
Citywide Total Funded Positions 97.25 90.50 -6.75
Revenues at-a-Glance
Source Budget % of Budget
Sales Tax $3,828,119 11%
Measure C 6,595,056 19%
Property Taxes 9,198,405 26%
Transient Occupancy Tax 9,109,116 26%
Other 3,272,484 10%
Charges for Services 2,911,901 8%
Building 1,006,537 35%
Ambulance 1,196,238 41%
Planning 259,705 9%
Other Departmental Charges 449,421 15%
Total $ 34,915,081 100%
82%
Expenditures at-a-Glance
Type of Expenditure
FY25-26
Proposed
Budget
% of
Budget
Salaries & Benefits $15,069,084 38%
Outside Services 10,730,711 27%
Other Expenditures 2,978,747 8%
Pension 2,708,158 7%
Capital Outlay 7,834,000 20%
Debt Service 509,100 1%
Total $39,829,800 100%
Expenditures by Function
Total Expenditures Budget %
Administration $3,755,017 9%
Citywide 4,814,943 12%
Council 248,752 1%
Debt 509,100 1%
Legal 517,000 1%
Planning 2,356,051 6%
Ambulance 2,359,760 6%
Fire 3,417,424 9%
Police 5,555,440 14%
Marketing 1,167,981 3%
Library 1,491,904 4%
Community Activities 246,400 1%
Public Works 5,556,028 14%
Operating Budget $31,995,800 80%
Capital 7,834,000 20%
Total $39,829,800 100%
Budgetary Guideline – Operating Expenses
Policy states that:
Total Expenditures, excluding CIP, shall
not exceed 90% of Budgeted Revenue.
8 Budgeted Revenue $ 34,915,081
Budgeted Expenditures, excluding CIP 31,995,800
Expenditures as a % of Revenue 91.64%
Excess expenditures 572,227
Policy states that:
A balanced budget is a budget in which total funding sources meet or exceed uses.
Projected Fund Balances – June 30, 2026
Audited Fund Estimated Fund
Fund Description
Balance June
2025
Revenue &
(Expenses)
Transfers In
& (Out)
Balance June
2026
Unspendible Prepaid Items $28,693 $0 $0 $28,693
Restricted funds -
101 General Fund 115 Trust 4,124,794 - 1,000,000 5,124,794 201 Gas Tax - 170,993 (170,993) -
202 Transportation Safety - 244,137 (244,137) -
203 COPS - 161,792 (161,792) -
204 Parking in Lieu 758,830 - - 758,830
205 Asset Seizure 5,616 - - 5,616
206 Local Measure Sales Tax - 6,595,056 (6,595,056) -
401 Debt Service 34,807 (509,100) 509,100 34,807
501 Worker's Comp - (127,000) 127,000 -
502 OPEB Reserve - - - -
503 Veh & Eq Replacement 462,820 (1,210,000) 1,210,000 462,820 LIB Library 1,453,651 - - 1,453,651
Committed funds
102 Hostelry Reserve - 9,109,116 (9,109,116) -
Assigned funds
101 General Fund Reserve 15,654,022 343,878 15,997,900
301 Capital Projects 3,893,235 (6,624,000) 6,624,000 3,893,235 Unassigned funds
101 General Fund 14,153,262 (12,725,713) 6,467,116 7,894,665 $40,569,730 ($4,914,719) $0 $35,655,011
Projected Fund Balances June 30, 2026
Projected Fund Balance Summary
10 Projected Fund Balances June 30, 2026
Estimated Fund
Fund Balance June 2026
Unspendible Prepaid Items $28,693
Restricted funds 7,840,518
Committed funds -
Assigned funds 19,891,135
Unassigned funds 7,894,665
$35,655,011
Capital Projects at-a-Glance
Category Amount % of Budget
Streets $1,120,000 14%
Drainage $350,000 4%
Facilities $1,715,000 22%
Forest/Park/Beach $2,374,000 30%
Planning $270,000 3%
Contingency $500,000 6%
Project Management $295,000 4%
IT $90,000 1%
Fleet $1,120,000 14%
Total $7,834,000 100%
Budgetary Guideline – CIP Expenditures
Policy states that:
Expenditures for CIP shall be a
minimum of 10% of Budgeted Revenue.
12 Budgeted Revenue $34,915,081
Budgeted CIP Expenditures 7,834,000
Expenditures as a % of Revenue 22.44%
Excess expenditures 4,342,492
Five-Year CIP Roll-Forward
13 (in thousands)
Category
Year 1
(Budget) Year 2 Year 3 Year 4 Year 5
Total Identified Projects $ 7,834 $ 8,800 $ 5,710 $ 2,815 $ 250 Estimated Additional Infrastructure
Needs $33M - $60M 4,600 4,600 4,600 4,600
Total Potential Need $ 7,834 $ 13,400 $ 10,310 $ 7,415 $ 4,850 Estimated Annual
Revenue $ 3,400 $ 3,400 $ 3,400 $ 3,400
Ending Fund Balance $ 7,895 $ (2,105) $ (9,015) (13,030) $ (14,480) CIP
Expenditure
Analysis
14 Streets Resurface Parking (CL, SC) $300,000 $0 $300,000 Streets Road Project (10 segments) $300,000 $0 $300,000 Streets Scenic/Santa Lucia ADA Pkg $20,000 $20,000 $0
Streets Sidewalks $500,000 $500,000 $0
Streets SS Retaining Walls $450,000 $450,000 $0
Drainage Junipero Bypass Pipe Design $175,000 $175,000 $0 Drainage MTNP Stream Projects 5-6 $175,000 $175,000 $0
Facilities ADA Upgrade Year 8 $20,000 $20,000 $0
Facilities City Hall Exterior Shingles $70,000 $70,000 $0 Facilities Design Repairs CH, FS $150,000 $150,000 $0
Facilities Fire Backflows (3 Bldgs) $200,000 $200,000 $0 Facilities Fire Station Upgrades $175,000 $175,000 $0
Facilities Forest Theatre Stage $60,000 $60,000 $0
Facilities Park Library Window Repairs $50,000 $0 $50,000 Facilities Picadilly Restroom Design $70,000 $70,000 $0 Facilities PD/PW project $50,000 $50,000 $0
Facilities SS Elevator Power Unit $120,000 $120,000 $0
Facilities SS Painting Phase 2 $250,000 $250,000 $0
Facilities Yoga Center reroof $50,000 $0 $50,000
FPB Rio/Junipero Median $25,000 $25,000 $0
FPB 4th Ave Outfall $900,000 $900,000 $0
FPB Shorelins Stairs Repair $300,000 $300,000 $0
FPB Forest Plan Year 2 $739,000 $739,000 $0
FPB Devendorf Park Improvements $35,000 $35,000 $0
FBP San Ramp at 8th $275,000 $275,000 $0
FPB Scenic Pathway $100,000 $0 $100,000
Planning Objective Design Guidelines $200,000 $100,000 $100,000 Planning CEQA MTNP CFMP $70,000 $70,000 $0
Contingency & Project Management $795,000 $795,000 $0
Current Budget $6,624,000
Potential Budget $5,724,000
Potential Savings $900,000
Adopt Resolution 2025-052
Approving the FY 2025-26 Annual Operating
and Capital Budget
Recommendation
Fire Hazard Zone Severity Map
Ordinance
City Council Meeting
June 3, 2025
Agenda Item No. 3
CITY OF CARMEL-BY-THE-SEA
CITY OF CARMEL-BY-THE-SEA
CITY OF CARMEL-BY-THE-SEA 2
Fire Hazard Severity Zone (FHSZ) Maps
2007-2011 FHSZ Map 2025 FHSZ Map
110 Ac
221 Ac 278 Ac
100 Ac
• Requires Adoption of Updated Fire Hazard Severity Zone Map by Ordinance 120 Days of Receiving Recommendations from the State Fire Marshal (July 8, 2025)
• Transmit Ordinance to the State Board of Forestry and Fire Protection within 30 Days of Adoption
• Regulations Apply After Ordinance Adoption
CITY OF CARMEL-BY-THE-SEA 3
Government Code Section 51179
CITY OF CARMEL-BY-THE-SEA 4
Chapter 49 Requirements
• California Fire Code Chapter 49
• Vegetation Management – New Landscaping
• Fire Resistant Vegetation
• Proper Spacing
• Shrubs – 6 feet or Less in Height
• Shrub Grouping – Maximum Aggregate Diameter of 10 feet and 30 feet from Structures • Trees – 10 feet from Combustible Structure
• Non-Fire-Resistant Tree Exception – 30 feet from Combustible Structure • Defensible Space – Existing Landscaping
• Maintenance and Fuel Reduction
• Tree limbs/branches Must Be 10 feet from a Chimney or Stovepipe Outlet • Vegetation Adjacent to or Overhanging a Building Must Be Free of Dead or Dying Wood • Roofs Must Be Free of Leaves, Needles, or Other Vegetation • New Structures Require Hardening
• Property Transfer Disclosure
CITY OF CARMEL-BY-THE-SEA 5
Chapter 7A Requirements
• Construction of New Buildings
• Class A Roof Assembly
• Wildfire Flame & Ember Resistant Vents
• Exterior Wall Assembly Requirements
• Exterior Coverings
• Open Roof Eaves
• Enclosed Roof Eaves and Roof Soffits
• Exterior Porch Ceilings
• Floor Projections
• Windows, Skylights and Doors
• Decking
• Accessory Building
• Vegetation Management (Chapter 49)
CITY OF CARMEL-BY-THE-SEA 6
Existing City-Wide Requirements
• Class A Roofing Assembly
• Spark Arresters
• Fire Sprinkler Systems
• Vegetation Maintenance
CITY OF CARMEL-BY-THE-SEA 7
Staff Recommendation
• Find the Action Statutorily Exempt from CEQA
• Request the City Attorney to Read the Draft Ordinance Title • Motion to Introduce and Waive Reading
• Direct Staff to Return July 1, 2025 for Adoption
Resolution 2025-054 approving a 4.19% Rate Increase
for Solid Waste, Recycling and Organics Collection by
GreenWaste Recovery, and approving an Amendment to
the Memorandum of Understanding with ReGen
Monterey effective July 1, 2025
City Council Regular Meeting
June 3, 2025
CITY OF CARMEL-BY-THE-SEA
CITY OF CARMEL-BY-THE-SEA 1
CITY OF CARMEL-BY-THE-SEA 2
Background
• GreenWaste Recovery selected June 19, 2014 for a 15-year term (July 1, 2015 – June 30, 2030)
• Franchise Agreement allows for an annual rate adjustment • Index-based Rate Adjustment includes:
• Cost of disposal and processing (“tipping fee”) at the ReGen Monterey facility in Marina
• Inflationary adjustments to GWR labor and operating costs • The City’s Franchise Fee of 13% for FY 2024/2025 was estimated at $458,996, and for next FY 2025/2026, the franchise fee is estimated at $478,211
CITY OF CARMEL-BY-THE-SEA 3
2025 Rate Adjustment
• 4.19% Collection Rate Increase
• Due primarily to increases to labor,
vehicle-related costs, and material
inflationary indices
• GWR initially estimated the City’s rate
increase to be 2.74%
• Final rate increase after third party
review by HF&H is 4.19%
• Prior Year (June 4, 2024), Council
approved a 3.59% rate increase
(monthly)
Carmel Rate Adjustment
Current Rates
(FY 2024/25)
FY 2025/26
Adjustment 3.59% 4.19%
Residential 32-
gallon rate
$53.78 $56.03
CITY OF CARMEL-BY-THE-SEA 4
SB 1383 Implementation
2025
• 75% Reduction in Organics
Disposal by January 1, 2025
• 20% Increase in Edible Food
Recovery by 2025
CITY OF CARMEL-BY-THE-SEA 5
SB 1383 Implementation
• MOU update for 2025/26 regional implementation costs. Regional implementation cost for Carmel in FY 2025/26 is $14,213 (included in GWR rates). This amount is covered in Public Works budget.
• City staff is coordinating w/ GWR to support local implementation efforts, including outreach to non-compliant residential and commercial accounts and management of a waiver system.
• A new 32-gallon organics bin service has been added to the Commercial/Multi- Family collection to boost organics recycling rates. • 23 waivers have been approved and 10 have been denied/added service. City staff and GWR are working with 4 outstanding sites that have not yet added organics or have applied for a waiver.
CITY OF CARMEL-BY-THE-SEA 6
Recommendation
Adopt Resolution 2025-54 to approve:
• A 4.19% rate increase to charges by the City’s franchised hauler, GreenWaste Recovery, for the collection of solid waste, recycling and organics, effective July 1, 2025, and
• Amendment #4 to the Memorandum of Understanding between ReGen Monterey and Member Agencies for Fiscal Year 2025/26 regional cost allocation
Questions?