Revised
5 Year Capital Improvement Plan &
Accelerated Street CIP Options
City Council Meeting
April 6, 2026
CITY OF CARMEL-BY-THE-SEA
CITY OF CARMEL-BY-THE-SEA 1
• Review updated Capital Improvement Plan
• Present 2 options for street maintenance prioritization• Seek Council direction to finalize a CIP budget and 5-year plan
CITY OF CARMEL-BY-THE-SEA
Purpose
2 Present the refined CIP based on Councils prior feedback (Option 1). Present options for a Street CIP prioritization:
All Streets > PCI 50 in 5 Years (Option 2) All Streets > PCI 50 in 10 Years (Option 3) Seek Council Direction
CITY OF CARMEL-BY-THE-SEA
Agenda
3 • Sunset Retaining Wall ($450,000): Deferred to FY27-28 • City Shingle Project ($500,000): Deferred to FY28-29• Mission Trail Preserve ($175,000): Deferred to FY27-28• PW/PD Architectural Design: Reduced from $5M to $3.5M• Removed Fires Inspector Vehicle ($75,000)• Micro-seal Paving Project: Increased by $25,000 (new total $600,000)• Picadilly Project ($150,000): Moved to FY26–27• Sand Ramp: Increased from $275,000 to $400,000 for FY26–27 to combine design and permitting. • Added Shore Infrastructure Repairs ($400,000 Carryover)• Contingency: Increased from $549,000 to $600,000
CITY OF CARMEL-BY-THE-SEA
Revisions to the Original
5-Year CIP Plan (Option 1)
4 OPTION 1: Revised 5-Year CIP
CITY OF CARMEL-BY-THE-SEA5
No
Change
to Streets
Category
CITY OF CARMEL-BY-THE-SEA
OPTION 1: Revised 5-Year CIP
continued:
6 CITY OF CARMEL-BY-TH
CITY OF CARMEL-BY-THE-SEA
OPTION 1: Revised 5-Year CIP
continued:
7 CITY OF CARMEL-
CITY OF CARMEL-BY-THE-SEA
OPTION 1: Revised 5-Year CIP
continued:
8 Based on Council’s feedback to prioritize streets
maintenance and an initiative of the Finance Committee:Present 5- and 10-year street program options that raise all streets to a PCI above 50.
CITY OF CARMEL-BY-THE-SEA
OPTIONS 2 & 3
9 CITY OF CARMEL-BY-THE-SEA
OPTIONS: 2 & 3
Side by Side Comparison
10 CITY OF CARMEL B
CITY OF CARMEL-BY-THE-SEA
5 and 10-Year Overall Comparison
11 CITY OF CARMEL-BY
Provide Direction on the following:
• Proceed with the refined 5-year CIP or one of the two Street CIP program options.
• Retain, remove, or postpone projects currently
included in the staff proposed CIP plan.
CITY OF CARMEL-BY-THE-SEA
Conclusion
12 Review of Fiscal Year
2026-2027 Fee Schedule
City Council Meeting
April 6, 2026
CITY OF CARMEL-BY-THE-SEA
Present the 2025 fee study results and seek Council direction and approval of the updated fee schedule
Purpose
Why Fees Are Necessary
• General tax revenues fund broad community services
(public safety, streets, parks, libraries)
• Fees recover cost of services to individuals
(development, permits, inspections)
• Council policy perform cost-of-service study every three years • “Pay for what you use” principle
Users bear the cost of services they benefit from
• Promotes fairness
Avoids subsidizing specific users with general tax dollars Background
Background
● Review of activities
● Calculation of cost of activities
● Updated fees reflect actual time spent x cost of salaries, benefits, overhead
● Findings
● Time to perform unchanged
● Cost to perform increased
Fee Study and Results
● Updated fees have increased over the prior year
● Prior fees missed one year of updates
● CPI different than actual increases
● New fees added to match services being provided
● New fees added for important potential services to be provided Updates to Fee Schedule
Notable changes include:
● Tree permits reset to reflect actual Forester and staff time spent
● Streamlining and Special event permits reset to reflect actual staff time
● Historic fee includes staff time as well as outside costs ● New grading, public improvement and traffic impact fees Updates to Fee Schedule (contin.)
● Fees = true cost to provide services to individuals
● Proposed fees less than adjoining jurisdictions
● Schedule effective 60 days after adoption, on July 4, 2027, per State of California Government Code Section 66017 (a). ● In the future
• continue to evaluate completeness of fee list
• potential waiver of fees for those unable to pay
Summary
Provide Direct on the following:
● Recommend adoption of FY 26-27 fees as proposed or as amended
Conclusion
Funding Feasibility Assessment
and
Revenue Option Discussion
City Council Meeting
April 6, 2026
CITY OF CARMEL-BY-THE-SEA
● Tonight we are going to receive a presentation regarding options for new revenue
● City Council will be asked to give direction regarding one of those options, a Sales Tax increase
● City Council may also wish to provide guidance for future revenue enhancement
Purpose
● The report, and the presentation we will hear tonight, are from Civitas
● Civitas in a firm of experts who advice municipalities ● They have worked with the County of Monterey and with the Carmel hoteliers to develop revenues
Background
Key Findings from Study
High Feasibility Moderate Feasibility Low Feasibility
• Transient Occupancy Tax
increase ("TOT")
• Charter city conversion
• Landscape & lighting
district
• Transactions and Use Tax
(“Sales Tax”) (0.375%
remaining)
• Mello-Roos community
facilities district
• Service fees optimization
• General Obligation Bonds
(for capital projects)
• Enhanced infrastructure
financing district
•
•
• Property-based business
improvement district
•
• • Paid parking •
±Carmel Hospitality Improvement District (CHID) assessment redirect Key Findings from Study
High Feasibility Moderate Feasibility Low Feasibility
• Transient Occupancy Tax
increase ("TOT")
• Charter city conversion
• Landscape & lighting
district
• Transactions and Use Tax
(“Sales Tax”) (0.375%
remaining)
• Mello-Roos community
facilities district
• Service fees optimization
• General Obligation Bonds
(for capital projects)
• Enhanced infrastructure
financing district
•
•
• Property-based business
improvement district
•
• • Paid parking •
±Carmel Hospitality Improvement District (CHID) assessment redirect √
?
Sales Tax
County Public Safety
(Prop 172)
MST Measure Q
County Realignment
Countywide
Transportation Fund
State General
Fund
City General
Fund (BradleyBurns)
City Measure C
AVAILABLE
Provide Direct on the following:
1. Determine whether the City should proceed with the Sales Tax ballot measure this year.
2. Select which mechanisms to pursue for detailed future feasibility analysis in the coming year(s).
Conclusion
Water Allocation Update
City Council Meeting – April 6, 2026
Agenda Item No. 5
CITY OF CARMEL-BY-THE-SEA
CITY OF CARMEL-BY-THE-SEA
• Water Management Program Update: CMC Chapter 17.50
• Current Water Allocation Balances
• Identified Decision Points
• Provide Direction
CITY OF CARMEL-BY-THE-SEA 2
Purpose
CITY OF CARMEL-BY-THE-SEA 3
Background
• Adoption of Resolution No. 2025-097
Category Prior to
Allocation
2025
Allocation
Total Acre Feet of
Water
Category #1 Low & Very Low-Income Housing 0.616 3 3.616 Category #2 Residential 0.000 6 6.000
Category #3 Commercial 0.000 2 2.000
Category #4 Municipal 0.224 3 3.224
Category #5 Unallocated Reserve 1.690 0 1.690
Category #6 Mallery/Pescadero Transfer 0.106 0 0.106
Total = 2.636 14 16.636
CITY OF CARMEL-BY-THE-SEA 4
Water Allocation to Date
Category Total Acre
Feet of Water Commitment Remaining Acre Feet of Water
Category #1 Low & Very Low-Income Housing 3.616 0 3.616 Category #2 Residential 6.000 1.163 4.837
Category #3 Commercial 2.000 1.8 0.200
Category #4 Municipal 3.224 0 3.224
Category #5 Unallocated Reserve 1.690 0 1.690
Category #6 7 Mallery/Pescadero Transfer 0.106 0 0.106
Total = 16.636 2.963 13.673
CITY OF CARMEL-BY-THE-SEA 5
• Monitoring – How should the City’s water allocation be monitored? • Reallocation – At which point should water be transferred between allocation “buckets”?
• Request for Water – At which point should water be requested from MPWMD?
Decision Points
CITY OF CARMEL-BY-THE-SEA 6
Monitoring
• CMC Section 17.50.030.B – Annual Review by Planning Commission • Commission Forwards Recommendation to City Council in December • Water Reserves
• 10% of Available Water for Affordable Housing (Moderately Low, Low, or Very Low) • CoastalRecreation,Access and EssentialPublic ServicesProjects • Changes in Water Availability
• IncreaseFrequency in Reporting?
• Monitor Active Water Categories
• Anticipate Reallocation
CITY OF CARMEL-BY-THE-SEA 7
Reallocation
• CMC Section 17.50.030.C – Water Allocation Process
• Planning CommissionRecommendation
• City Council Adoption by Resolution
• Intent of Unallocated Reserve
• Water Reserves
• Water Commitment &PermitApplications
• Should a Change in Water AvailabilityEffect Our Process? • Is the Process ahindrance or Impediment to Development? • MPWMD’sView of “Buckets”
CITY OF CARMEL-BY-THE-SEA 8
Request for Water
• MPWMD Ordinance No. 197
• 2,175 AF of Water Reserves
• Needs Assessment
• Cease and Desist Order (CDO)
• Economic Development
• State Housing Requirements
• Built-out Condition
MPWMD City of Carmel-by-the-Sea
• Based on the Water Allocation Update
• Current Water Allocation Balances
• Trends in Water Use
• MPWMDReserves
• Identified Decision Points
• Monitoring
• Reallocation
• Request for Water
CITY OF CARMEL-BY-THE-SEA 9
City Council Direction
AVAILABLE WATER (AF)
Residential
Initial: 6 AF
Low-income
Initial: 3.616 AF
Commercial
Initial: 2 AF
Municipal
Initial: 3.224 AF
Unallocated
Initial: 1.690 AF
4.776 3.616 0.200 3.224 1.690
RESIDENTIAL & COMMERCIAL WATER PERMIT TRACKING
Design Study/Review Permit
Identifier Building Permit Identifier Property Location APN Project Scope Application Submittal Requested Water Allotment (AF) Water Permit
Issuance
Building Residential Low-income Commercial Municipal Permit Final N/A BP 250510 (Witt) Carmelo 2 NW of 9th 010-269-005-000 Convert storage room to new full bathroom. Add dishwasher and facet to kitchen 11/4/2025 0.061 WP045584-1 DS Approved Prior to Water Release BP 250302 (Layman) San Carlos 5 SW of 13th 010-165-021-000 Addition of a full bathroom with additional shower head, and new laundry sink 11/5/2025 0.033 WP045535-1 N/A BP 240259 (Levine) Rv03 9th 2 NW of Carmelo 010-269-007-000 Addition of a shower to a previously approved powder room to convert to a full bathroom 11/5/2025 0.018 WP044099-1 N/A BP 250100 (Rieken) Rv03 Santa Fe 4 SE of 2nd 010-028-015-000 Addition of third bathroom to previously
approved two bathroom residence along with
new laundry sink
11/10/2025 0.086 WP045180-1
N/A BP 250522 (Cronin) SW Corner of Mission & 11th 010-153-001-000 Convert parking pad and studio to new ADU, full bathroom and kitchen addition 11/10/2025 0.013
UP 25303 (Mama's Boy) Dolores 2 NE of 5th 010-136-011-000 Retail to restaurant 11/12/2025 0.068 0.1622 N/A BP 250539 (Childress) Casanova 4 NE of 8th 010-195-011-000 Conversion of existing garage to create new ADU, full bathroom and kitchen 11/18/2025 0.023 WP045617-1 DR 25269 (Carl Cherry Center) NWC Guadalupe & 4th 010-024-013-000 Addition of 2 sinks 11/21/2025 0.02905 N/A BP 250026 (Mandernach) Rv01 Guadalupe 2 NE of 1st 009-145-011-000 Addition of one sink and toilet for powder room 11/26/2025 0.076 WP044663-1 N/A BP 250287 (Salkeld) Rv01 Lopez 5 SE of 2nd 010-231-023-000 Reinstallation of half bathroom removed for ADU 12/1/2025 0.043 WP044447-1 N/A BP 250157 (P&T 2024 LLC) Santa Rita 5 SW of 3rd 010-029-005-000 Addition of half bathroom in main residence 12/1/2025 0.066 WP045077-1 N/A BP 250560 (Shwaiki) NW Corner of Carpenter & 2nd 010-021-016-000 Addition of a full bathroom to the main residence 12/2/2025 0.02
UP 25369 & UP 25370 (Scandia Lopez) Dolores 4NE 7th 010-146-010-000 Retail to restaurant 12/3/2025 0.992 [1] UP 25379 (Profeta) Junipero 3 NW 6th 010-098-006-000 Increase in restaurant seats 12/8/2025 0.539 N/A BP 240532 (Kim) Rv01 Casanova 2 NW of 9th 010-263-007-000 Addition of powder room 12/18/2025 0.066 WP043144-1 N/A BP 250600 (Sherer) Forest 2 NW of 7th 010-041-007-000 Creation of new 548sf ADU within floor area limitations 12/23/2025 0.101 WP045677-1
UP 25316 (Haifa Coffeehouse) Dolores St between 5th and 6th 010-135-012-000 New coffee shop 1/9/2026 0.078 N/A BP 19-173 (Evensen) Lincoln 3 NE of 5th 010-137-010-000 Credit for restroom toilets 1/12/2026 0.016 WP043796-1 N/A BP 260075 (Allen) Carpenter 2 NW of 4th 010-023-007-000 Addition of half bathroom in main residence 2/11/2026 0.076 N/A BP 250071 (1540 Mescal St LLC) Rv01 Junipero 3 NE of 12th 010-073-005-000 Convert closet to half bathroom 3/3/2026 0.061 N/A BP 260113 (McCallister) NW Corner of San Antonio & 8th 010-311-013-000 Addition of two and a half bathrooms to SFR 3/5/2026 0.069 DS 24209 (Hermle-Collins) BP 250484 (Hermle-Collins "Ahana") Mission 2 NE of 1st 010-112-007-000 Demo and rebuild of SFR with expansion 3/19/2026 0.046 WP045777-1 DS 24207 (Hermle-Collins) BP 250594 (Hermle-Collins "Hapuna") Mission 4 NE of 1st 010-112-012-000 Demo and rebuild of SFR with expansion 3/20/2026 0.008 WP045774-1 N/A PP 260126 (Murray) Camino Real 3 SE of 2nd 010-232-049-000 Legalization of previously installed fixtures 3/23/2026 0.038 DS 26040 (Smith & Chi) Monte Verde 2 NW of 12th 010-184-004-000 Remodel to include addition, garage, & ADU 2/9/2026 0.152 N/A BP 260165 (Ikeda) NE Corner of Guadalupe & 6th 010-032-009-000 Convert closet to powder room 3/30/2026 0.023 N/A BP 23-283 (Banjanin) Rv02 Santa Rita 5 NW of 4th 010-029-006-000 Addition of half bathroom 4/1/2026 0.061 No water shall be allocated to an existing property or proposed project in which the floor area exceeds the maximum allowable limits pusuant to CMC Section 17.10.030.D [1] 0.993 requested - 0.001 balance per WP044318