AB 481
Community Meeting
May 4, 2026
Chief Todd Trayer
Introduction
Introduction
The purposes of this meeting are to:
• Provide an overview of the specialized equipment
possessed and used by the Carmel-By-the-Sea Police
Department:
• Continue with our transparency and oversight of
equipment
• Allow Community questions and input
• Update on Departmental needs for related equipment
Background
Background
September 30, 2021: Assembly Bill 481 signed into Law
• The Law Enforcement and State Agencies: Military
equipment, funding, acquisition, and use Act.
• Public’s right to know about any funding, acquisition, or use of military equipment by state or local
government officials.
• Increase Transparency
• Accountability
• Oversight
• Law Enforcement agency must obtain approval from
governing body for use, funding, or purchase of
military equipment
• Policy Development
• Ordinance Adoption
• Regular Public Meetings
GC: 7070,7071, and 7072; adopted to codify requirements of AB481 AB 481 Requirements
AB 481 Requirements
AB 481 Requirements
AB 481 Requirements
Other requirements:
Draft a Military Use Policy- CPD Policy 701
Post proposed policy: 30 days prior to any Public Hearing Submit annual equipment and use reports
Seek Council approval prior to any acquisition of Military Equipment
Post annual report
Disclose any complaints, policy violations
Hold a public meeting w/in 30-days of reports submission Military Equipment
Military Equipment
GC 7070: 16 Categories “Military Equipment”
These items were already in possession and use by CPD
when law was enacted.
• #10; Specialized firearms (AR-15’s) and ammunition of less than .50 caliber, including assault weapons.
• #15; Any other equipment as determined by a
governing body or a state agency to require additional
oversight.
#10- Specialized Firearms
#10- Specialized Firearms
6- Colt M4-AR15 Style Semi-Automatic rifles
#15- Other Equipment
#15- Other Equipment
4- Keltec KSG Shotguns - Converted for Less Lethal
Applications
#15- Other Equipment Requests
#15- Other Equipment Requests
This year, Carmel by the Sea Police Department is requesting City Council consider funding two items:
1) Adding 6-40 mm launchers (less lethal options) for patrol. *Plus training & and sponge rounds
(Approximate cost is $12,000.00)
2) Replace aged/AR-15’s and add 7 additional cited AR-15’s for each patrol officer (total of 13)
(Approximate cost is up to $30,000.00)
2025 Annual Report Summary
2025 Annual Report Summary
Uses:
1) In 2025, we were not required to utilized the Keltec KSG lesslethal shotguns. 2) The Colt M4-AR15 Style Semi-Automatic rifle deployments were for qualification and training purposes only in 2025. 3) Carmel by the Sea PD is requesting approval for:
• 6 – 40 mm less-lethal launchers
• Replacement of 6 AR-15’s (existing) and adding 7 additional so each officer has their own cited AR-15.
Equipment Usage
Equipment Usage
Monterey Peninsula Regional Special Response Unit (MPSRU) • CPD Participates
• MPSRU Uses Military Equipment
• CPD does not own any Military Equipment in use by SRU Equipment Maintenance
Equipment Maintenance
Costs to maintain current items:
• Annual costs for ammunition: $2527.50 for rifle rounds Additional costs:
• This year we are requesting to add the 40 mm launcher tools (6) to patrol.
• Replacement and additional purchase of a total of 13 AR-15’s • We anticipate spending approximately $2,000 in less-lethal rounds for training and use.
Questions?
Questions?
Review the proposed Plan, Timeline, & Scope
of Work to finalize the Residential Design
Guidelines 1.5
CITY OF CARMEL-BY-THE-SEA
City Council Special Meeting
May 4, 2026 Slide 1
Design Traditions 1.5 Update:
• Recent meetings: November 2025 - March 2026
• Recommended “Steering Committee Draft”
• Ad-Hoc formed: Councilmembers Baron & Delves
• Production Team efforts
Background & The Path Forward
Slide 2
• Ad-Hoc Sponsors
• “Contributors”
• Planning Commission Members
• Members of the Public
• Architect(s)
• Staff
Production Team
Slide 3
➢ Goal: Produce a useful, adequate final version of the Residential Design Guidelines 1.5, resulting in
Planning Commission support, Council adoption,
and California Coastal Commission approval.
➢Target Council Adoption Deadline: September 1,
2026.
Production Team
Slide 4
➢ Start at Adoption by Council and work backwards
Proposed Plan (Timeline)
Slide 5
➢ Four (4), one-month “work cycles”
Proposed Plan
Slide 6
“Work Cycle” #1 (April)
Slide 7
“Work Cycle” #1 (April)
Slide 8 Slide 8
“Work Cycle” #1 (April)
Slide 8 Slide 9
“Work Cycle” #1 (April)
Slide 8 Slide 10
“Work Cycle” #1 (April)
Slide 8 Slide 11
“Work Cycle” #1 (April)
Slide 8 Slide 12
“Work Cycle” #1 & #2
Slide 8 Slide 13
1. Planning Commission Meeting
2. Suggested edits are made to draft document
3. Staff Reviews and Approves changes
4. Production Team Meets___
Document Editing Process
Slide 14
❏ Consistency Analysis with General Plan, Local Coastal Program, Municipal Code, Strategy Paper & Other Applicable City
Documents
❏ Update for Fire Safety
❏ Planning Process/Flowchart + Description
❏ Add Council & Planning Commission’s Top “Most Wanted” Topics to be Clarified/Addressed
❏ Staff Content Review
❏ Identify Changes to Other City Docs (e.g. Muni Code)
❏ Index, Glossary, Hyperlinks
❏ Redline
❏ Formatting (LCP/California Coastal Act-Compliant)
A Scope of Work (Tasks)
Slide 15
• Do you endorse the proposed Plan, Scope of Work,
and Timeline to finalize the Residential Design
Guidelines 1.5?
• Provide staff a “wish list” of specific items or issues the City Council would like to see addressed or
clarified in the final document.
Council Feedback
Slide 16
Thank you.
Questions?
Slide 17
Council Discretionary Grant
Applications
Fiscal Year 2026-2027
City Council Meeting
May 4, 2026
CITY OF CARMEL-BY-THE-SEA
The purpose of today’s agenda item is to:
• Summarize the discretionary grant policy and
process
• Review grant applications received and staff’s
recommendation for funding
• Provide direction to staff regarding:
o Total grant funding amount for the budget
o Distribution of grant awards
Why we’re here
• Council adopted a Discretionary Grant Policy in 2017
to guide the allocation of discretionary grants.
• Eligibility Criteria:
Located in Carmel or serve Carmel residents.
501(c) nonprofit or Carmel school.
Provide direct community services.
No outstanding City debt.
Not financially dependent on City.
Grant Program Overview
• The grant program is discretionary, and City
Council determines the total amount of
funding to allocate each fiscal year.
• If awarded, each recipient must sign a grant
agreement confirming the funds will be used
only for the approved purpose by June 30,
2027.
• Grant checks would be distributed in July or
August 2026.
Grant Policy No. 2017-01
• The application period ran from February 6 to March
27, 2026.
• Outreach: City website/Instagram, Friday Letter, Pine Cone, and grant email list.
• 18 applications received requesting a total
of $54,000.
• Staff reviewed applications and found all to be
eligible.
FY 26-27 Grant Cycle Summary
Applications Received
Staff is requesting direction from Council to:
1. Confirm the total amount to allocate for FY
26-27 Discretionary Grants; and
2. Provide direction on grant distribution to
each of the eligible applicants.
3. Provide direction on whether to agendize a
future discussion on the current grant
policy and/or direction on the grant
application program for FY 27-28.
Next Steps
Questions?
End of Presentation
Discuss draft Resolution Of The City Council Of The City Of CarmelBy-The-Sea Ordering The Submission To The Qualified Electors Of The City Of Carmel-By-The-Sea At The November 3, 2026, General Municipal Election A Measure To Increase The Transactions And Use Tax Rate By 0.375% To Make The Total Tax Rate 1.875% and Extending the Duration of the Transactions and Use Tax so that it remains in effect until ended by Voters; and provide direction City Council Meeting
May 4, 2026
City of Carmel-by-the-Sea
Background
The City’s current Transaction and Use rate is 1.5%
Pursuant to direction from the City Council on April 7, 2026, Staff requests the City Council discuss and provide direction on the draft Resolution and Ordinance which would submit to the City’s qualified voters a ballot measure that would increase the Transaction and Use Tax rate by .375% if approved by a majority of the voters.
CITY OF CARMEL-BY-THE-SEA 2
Ballot Question
Shall the measure funding the City of Carmel-by-the-Sea’s general government purposes, such as, for example, infrastructure improvement, public safety, and other general municipal purposes, increasing the transactions and use tax rate by 0.375% so that the total tax rate is 1.875%, extending the duration of such tax so that it remains in effect until ended by voters, and the 1.875% providing approximately $9,437,087 annually, be adopted?
CITY OF CARMEL-BY-THE-SEA 3
Votes Required
Under Proposition 218, the City may only increase a general tax if:
(a) Two-thirds of the members of the City Council (which would be four affirmative votes) approving placing a tax measure on the ballot for voter consideration, and (b) The ballot measure is approved by a majority vote of the electorate at a general municipal election (for the election of members of Council). The next general election is November 3, 2026
CITY OF CARMEL-BY-THE-SEA 4
Submitting Measure to Voters
In order to submit a transaction and use tax measure to the voters at the November 3, 2026, general municipal election, the City Council must adopt a resolution that:
(1) submits the measure to the voters and includes the ordinance increasing the rate by .375%;
(2) requests the consolidation of such general municipal election with the Statewide General Election on November 3, 2026; and
(3) authorizes the drafting of primary arguments by all or some councilmembers, directs the City Attorney to draft an impartial analysis of the measure, and authorizes rebuttal arguments.
CITY OF CARMEL-BY-THE-SEA 5
After a measure is “certified to appear” on a particular election ballot, the City is prohibited from spending any City resources to support or oppose the ballot measure.
The City is able to provide information to the public in a neutral and unbiased manner and in a format that is not argumentative. This involves utilization of the City’s standard methods of communication with the public.
Informational Activities
Amendment to Section 3.28.170
“A transactions and use tax is hereby imposed as a general tax on the gross receipts of any retailer from the sale of all tangible personal property sold at retail in the City for a period of 20 years, and upon the sales price of tangible personal property stored, used or otherwise consumed in the City as further set forth below.” Amendment to Section 3.28.210
“For the privilege of selling tangible personal property at retail, a tax is hereby imposd upon all retailers in the incorporated area of the City at the rate of one and one-half percent1.875% of the gross receipts of any retailer from the sale of all tangible personal property sold at retail in the City on and after the operative date of the ordinance codified in this article for a period of 20 years following the effective date of the taxand remaining in effect until repealed by the voters of the City of Carmel-bythe-Seaand shall then be terminated.” Amendment to Section 3.28.230
An excise tax is hereby imposed on the storage, use or other consumption in the City of tangible personal property purchased from any retailer on and after the operative date of the ordinance codified in this article for storage, use or other consumption in the City at the rate of 1.875% one and one-half percent of the sales price of the property for a period of 20 years following the effective date of the tax, and remaining in effect until repealed by the voters of the City of Carmel-by-the-Sea and shall then be terminated. The sales price shall include delivery charges when such charges are subject to sales or use tax regardless of the place to which delivery is made.” Amendment to Section 3.28.310
“The authority to levy the taxes imposed by this article shall remain in effect until repealed by the voters of the City of Carmel-by-the-Sea. expire 20 years from the operative date, unless extended by the voters.”
Election Timeline
4 May 2026
Review Draft Resolution
and Ordinance
2 June
2026
If directed by Council,
consider adoption of
Resolution calling for the
general municipal
election and requesting
consolidation.
7 July
2026
Practical deadline to
adopt Resolution to add a
ballot measure
July–Oct.
2026
Public
outreach/engagement
11–16
Aug.
Filing period for primary
ballot arguments.
16–23
Aug.
City Attorney files
impartial analysis,
rebuttal
3 Nov. 2026
Election Day
Recommendation
1. Discuss the attached draft Resolution and Ordinance relating to a potential ballot measure to increase the City’s Transaction and Use Tax by .375 % so the new total tax rate is 1.875%
2. Motion providing direction to staff regarding whether the Draft Resolution and Ordinance should be presented to the City Council for consideration of adoption at the Council meeting on June 2, 2026 and whether to submit the draft Ordinance to the California Department of Tax and Fee Administration for review.
CITY OF CARMEL-BY-THE-SEA 12
End of Presentation
CITY OF CARMEL-BY-THE-SEA 13
Questions?
(Mayor Byrne Slide)
Sales Tax:
Shall the measure providing additional funding for City of Carmel-by-theSea general government purposes by increasing the transactions and use tax rate by 0.375% to a combined rate of 1.875%, with the new tax providing approximately $X million in funds annually, and extending the duration of such tax so that it remains in effect until repealed by voters be adopted? Shall the measure providing additional funding for City of Carmel-by-theSea general government purposes by establishing an additional transient occupancy tax of 2%, paid by lodging guests to the operators of hotels and motels, to a combined rate of 12%, with the new tax providing approximately $1.9 million annually, and extending the duration of such tax so that it remains in effect until repealed by voters be adopted? Discussion of Draft Resolution relating to a potential ballot measure establishing a new 2% City’s Transient Occupancy Tax in addition to the existing 10% and Direction regarding the submission of such ballot measure to the City’s voters at the November 3, 2026, general municipal election
City Council Meeting
May 4, 2026
City of Carmel-by-the-Sea
Staff requests the City Council discuss and provide direction on the attached draft Resolution and Ordinance which would submit to the City’s qualified voters a ballot measure that would adopt a new 2% Transient Occupancy Tax (TOT) in addition to the existing 10% TOT rate if approved by a majority of the voters.
CITY OF CARMEL-BY-THE-SEA 2
Background
Ballot Question
Shall the measure providing funding for City of Carmel-by-the-Sea’s general government purposes, such as, for example, infrastructure improvements, public safety, and other general municipal purposes, by establishing a new transient occupancy tax of 2%, paid by lodging guests to the operators of hotels and hostelries, in addition to the existing 10% transient occupancy tax, with the new 2% tax providing approximately $1.9 million annually until ended by voters, be adopted?
CITY OF CARMEL-BY-THE-SEA 3
Votes Required
Under Proposition 218, the City may only increase a general tax if:
(a) Two-thirds of the members of the City Council (which would be four affirmative votes) approving placing a tax measure on the ballot for voter consideration, and
(b) The ballot measure is approved by a majority vote of the electorate at a general municipal election (for the election of members of Council). The next general election is November 3, 2026
CITY OF CARMEL-BY-THE-SEA 4
Submitting Measure to Voters
In order to submit a TOT measure to the voters at the November 3, 2026, general municipal election, the City Council must adopt a resolution that:
(1) submits the measure to the voters and include the TOT ordinance establishing a new TOT of 2% in addition the existing 10% TOT (2) requests the consolidation of such general municipal election with the Statewide General Election on November 3, 2026; and (3) authorizes the drafting of primary arguments by all or some councilmembers, directs the City Attorney to draft an impartial analysis of the measure, and authorizes rebuttal arguments.
CITY OF CARMEL-BY-THE-SEA 5
3.32.020: Tax Imposed
CITY OF CARMEL-BY-THE-SEA 6
A. For the privilege of occupancy in any hostelry, each transient is subject to and shall pay a tax in the amount of 10 percent of the rent charged by the operator, plus a new tax in the amount of 2 percent of the rent charged by the operator, for a total tax in the amount of 12 percent of the rent charged by the operator. The tax constitutes a debt owed by the transient to the City which is extinguished only by payment to the operator or to the City.
Section 3.32.130: Disposition of Proceeds
CITY OF CARMEL-BY-THE-SEA 7
C. The additional two percent added by Ordinance No. 26-003 shall be added to the General Fund for usual and current expenses.
After a measure is “certified to appear” on a particular election ballot, the City is prohibited from spending any City resources to support or oppose the ballot measure.
The City is able to provide information to the public in a neutral and unbiased manner and in a format that is not argumentative. This involves utilization of the City’s standard methods of
communication with the public.
Informational Activities
Election Timeline
4 May 2026
Review draft Resolution
and Ordinance
2 June
2026
Adopt a Resolution
calling for the general
municipal election and
requesting consolidation.
7 July
2026
Practical deadline to
adopt Resolution to add a
ballot measure
July–Oct.
2026
Public
outreach/engagement
11–16
Aug.
Filing period for primary
ballot arguments.
16–23
Aug.
City Attorney files
impartial analysis,
rebuttal
3 Nov. 2026
Election Day
Recommendation
1. Discuss the attached draft Resolution and Ordinance relating to a potential ballot measure to establish a new TOT of 2% in addition to the existing 10%
2. Motion providing direction to staff whether to return to the City Council in June 2026 with the Resolution for the ballot measure to be submitted to the City’s voters at the November 3, 2026 CITY OF CARMEL-BY-THE-SEA 10
End of Presentation
Questions?
CITY OF CARMEL-BY-THE-SEA 11
Carmel’s low TOT rate is an outlier
Jurisdiction TOT Rate Business Improvement District Assessments Effective TOT Half Moon Bay 15% $1 per night for City; $1-2 per night for County 15+% South Lake Tahoe 14% +2% 16%
Sausalito 14% Not yet adopted 14%
Beverly Hills 14% None 14%
San Francisco 14% ~0.5%-1.5% (varies by district) 14.5-15.5% Marina 14% None 14%
St Helena 13% +2% 15%
Napa 13% +2% 15%
Sonoma 13% +2% 15%
Monterey 12.8-13.6%* None 12.8-13.6%
Laguna Beach 12% +2% 14%
Santa Barbara 12% +2% 14%
Solvang 12% +2% 14%
Yountville 12% +2% 14%
Pacific Grove 12% $1-2 per night ~12.5%**
Monterey County (unincorporated) 10.50% None 10.5%
City of Carmel-by-the-Sea 10% +2% 12%
**Assumes $1.50 per night on a $300 average daily rate
*12% TOT plus Conference Center Facilities District charge of 1.6% for full service hotels and 0.8% for limited service hotels (Councilmember Buder Slide)
Fiscal Year 2025-2026
Second Tri-Annual Budget
Report
City Council Meeting
May 4, 2026
Provide an update on the financial results:
•Take a look at the current status of FY 25-26
• What trends do we see for revenues?
• Are expenditures what we expected?
•Compare current results to the budget
Purpose
Tri-annual means three times per year:
•Enhance financial reporting to the Council and the
citizens
• Sooner
• More frequently (tri-annually)
•Based on internal monthly reporting
•Coming back now as part of budget process in
Spring and again after year-end in Summer
Background
Summary
•Revenues generally consistent with prior year
and budget
•Expenditures likewise consistent with prior
year and budget
•A couple adjustments identified at this time
Summary
FY 25-26 Revenues
Percent
Received
FY 24-25
Jul - Feb
Receipts
FY 24-25
Percent
Received
FY 25-26
Jul - Feb
Receipts
FY 25-26
Adopted
Budget
FY 25-26
Revenue Category
Property Taxes 9,198,405 5,460,059 59% 5,242,995 58%
State Sales & Use Tax 3,828,119 3,035,734 79% 2,695,415 72% 6,595,056 4,992,546 76% 4,632,010 77% Local Sales Tax - Measure C
9,109,116 7,501,368 82% 6,973,139 88% Transient Occupancy Taxes
Charge for Services 2,911,901 1,669,255 57% 1,682,715 75% Other 3,272,484 4,109,368 126% 3,388,240 113%
Total 34,915,081 26,768,330 77% 24,614,514 77%
FY 25-26 Expenditures
Percent
Disb
FY 24-25
Jul - Feb
Disbursements
FY 24-25
Percent
Disb
FY 25-26
Jul - Feb
Disbursements
FY 25-26
Adopted
Budget
FY 25-26
Expense Category
Salaries/Benefits 15,214,176 9,359,678 62% 8,621,046 53% Services/Supplies 11,829,173 7,146,718 60% 5,605,579 53% Non-Departmental * 4,747,943 4,079,618 86% 3,670,787 88% Debt Service 509,100 459,895 90% 467,665 87%
Capital Outlay 8,405,191 2,722,978 32% 1,940,374 16%
Total 40,697,491 23,768,887 58% 20,305,451 46%
FY 25-26 Positions
FY 25/26
Actual
FY 25/26
Department Adopted
City Council 5.0 5.0
Administration 12.0 10.0
Community Activities 1.0 0.5
Library 11.5 11.5
12.0 12.0
Community Planning &
Building
Public Works 25.0 23.0 *
Police 24.0 20.0 *
90.5 82.0
Citywide Total Funded
Positions
* New staff are starting before the end of the fiscal year. •Fire (-$305,000): vehicle maintenance,
overtime reimbursements, incidentals
•City Attorney (-$140,000): extra hours incurred
addressing telecommunication issues as well
as ballot measures and labor negotiations
•Interest Earnings (+$445,000) : result of
maximizing interest earning opportunities
Budget Amendments
•Based on the revenues collected and
planned, revenues appear sufficient to fund
the City’s operations
•Based on expenditures to date, budgeted
expenditures appear to be sufficient, with the
previously noted adjustments
•Recommend continued monitoring of
financial results
Conclusion
Questions?